Project On Consumer Behaviour Towards Spice Telecom

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. Sony’s 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.

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Mobile phone giant Nokia’s market share in India has increased to 62.5 % 2007-08 from 53.6 % in the previous year.Nokia’s 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 company’s 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. India’s 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.

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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 don’t 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.

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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.

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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

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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

Percent 1.0

Valid Percent 1.0

Cumulative Percent 1.0

9

9.0

9.0

10.0

6

6.0

6.0

16.0

83

83.0

83.0

99.0 100.0

1

1.0

1.0

100

100.0

100.0

-7-

100

80

t n u o C

60

40

20

0 Nokia,samsung Nokia,Spice,Fly Nokia,Fly Nokia,samsung,Spice Nokia,Samsung,Spice,Fly

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

INTERPRETATION: From the data & table, it is interpreted that • •

83% of the dealers have all the 4 mobile phones i.e. Nokia, Samsung, Spice & Fly. There is only one dealer who does not have Samsung & Spice in his shop.

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Q.2 TABLE FOR IInd VARIABLE: 2. Which price range of mobiles have the maximum sales on your shop?

Frequency Valid

Less than Rs. 3,000 between R.3,000 & Rs. 8,000 Between Rs. 8,000 & Rs. 13,000 More than Rs. 13,000 Total

Percent

Valid Percent

Cumulative Percent

22

22.0

22.0

22.0

60

60.0

60.0

82.0

15

15.0

15.0

97.0

3

3.0

3.0

100.0

100

100.0

100.0

-9-

60

50

t n u o C

40

30

20

10

0 Less than Rs. 3,000 betwen R.3,000 & Between Rs. 8,000 Rs. 8,000 & Rs. 13,000

More than Rs. 13,000

2.Which price range of mobiles have the maximum sales on your shop?

INTERPRETATION: •

60% of dealers have maximum sales of the mobiles ranging between Rs. 3,000 & 8,000 on their shop which shows that customers in East Delhi don’t like to spend too high on mobiles.

•

sales for the mobile with price less than Rs. 3,000 is not too high , being 22% indicating that people though not spending too much on premium mobiles, buy mobiles with features like FM, MP3 that cost higher than Rs. 3,000.

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3. TABLE FOR 3rd VARIABLE:

3. Do you have Spice mobile on your shop?

Valid

Yes No Total

Frequency 98 2

Percent 98.0 2.0

Valid Percent 98.0 2.0

100

100.0

100.0

Cumulative Percent 98.0 100.0

100

80

t n u o C

60

40

20

0 Yes

No

3.Do you have Spice mobile on your shop?

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INTERPRETATION: •

98% 0f the dealers have Spice mobile in their shops. as it has been 4-5 years since its presence in Delhi and now, people do recognize them.

•

Rest 2% have not placed Spice mobile in their shop and these dealers are the one who deal on very small scale in the regions of Mansarovar Park near Shahdra.

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4. TABLE FOR 4th VARIABLE 4.How long has it been since you placed spice mobile on your shop?

Frequency Valid

Missing Total

Less than 6 months Between 6-12 months Betwen 12-18 months More than 18 months Total System

Percent

Valid Percent

Cumulative Percent

7

7.0

7.1

7.1

32

32.0

32.7

39.8

33

33.0

33.7

73.5

26

26.0

26.5

100.0

98

98.0

100.0

2

2.0

100

100.0

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40

t n u o C

30

20

10

0 Less than 6 months

Between 6-12 months

Betwen 12-18 months

More than 18 months

4.How long has it been since you placed spice mobile on your shop?

INTERPRETATION: •

32.7% of the shopkeepers are selling Spice mobiles since last 1year while 33.7% dealers are selling it for last 1.5 years.

•

While only 26% shopkeepers have placed it more than 1.5 years ago. This is also the main reason for low brand awareness and low sales for the Spice phones.

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5. TABLE FOR 5th VARIABLE

5.Which model of Spice has the maximum sales on your shop?

Valid

Missing

Cumulative Percent 18.4 52.0

D-88n C-810

Frequency 18 33

Percent 18.0 33.0

Valid Percent 18.4 33.7

S-545

13

13.0

13.3

65.3

variable

34

34.0

34.7

100.0

Total

98

98.0

100.0

System

Total

2

2.0

100

100.0

40

t n u o C

30

20

10

0 D-88n

C-810

S-545

variable

5.Which model of Spice has the maximum sales on your shop?

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INTERPRETATION: •

C-810 has the maximum sales in the East Delhi region with sales of about 33.7% which could have even a lot better results had the production of these mobiles would not have stopped.

•

D-88n also has 18.7% sales showing the people’s attitude towards the new features like dual sim as in this mobile. These mobiles have their main sales in the regions like Laxmi Nagar, Krishna Nagar, and Preet Vihar.

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6. TABLE FOR 6th VARIABLE:

6. According to you, which mobile company has the maximum Brand awareness?

Valid

Nokia

Frequency 100

Percent 100.0

Valid Percent 100.0

Cumulative Percent 100.0

INTERPRETATION: •

As expected, there is no competitor for Nokia when it comes to the Brand awareness. People buy the handsets and accessories on its name. They have a huge faith in it.

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7. TABLE FOR 7th VARIABLE:

7. Which mobile company has the best looks?

Valid

Nokia Samsun g Total

Frequency 19

Percent 19.0

Valid Percent 19.0

Cumulative Percent 19.0

81

81.0

81.0

100.0

100

100.0

100.0

100

80

t n u o C

60

40

20

0 Nokia

Samsung

7.which mobile company has the best looks?

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INTERPRETATION: •

81% dealers believe that Samsung mobile has the best looks and that is the reason for its popularity among the females.

•

Surprisingly, Nokia is chosen by only 19% dealers while none feel that Spice and Fly mobile do have the good looks.

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8. TABLE FOR 8th VARIABLE:

8.which mobile company has the best sound?

Valid

Nokia Samsun g Spice

Frequency 21

Percent 21.0

Valid Percent 21.0

Cumulative Percent 21.0

1

1.0

1.0

22.0

77

77.0

77.0

99.0 100.0

Fly Total

1

1.0

1.0

100

100.0

100.0

80

t n u o C

60

40

20

0 Nokia

Samsung

Spice

Fly

8.which mobile company has the best sound?

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INTERPRETATION: •

Spice mobile emerged as the leader for being the company with the best sound against the competitors like Nokia and Samsung for the same price segment.

•

Spice has been rated no. one in this category by 77% dealers.

- 21 -

9. TABLE FOR 9th VARIABLE: 9. which mobile company has the best battery backup?

Valid

Nokia Spice Total

Frequency 98 2

Percent 98.0 2.0

Valid Percent 98.0 2.0

100

100.0

100.0

Cumulative Percent 98.0 100.0

100

80

t n u o C

60

40

20

0 Nokia

Spice

9.which mobile company has the best battery backup?

- 22 -

INTERPRETATION: •

As expected, almost everyone favoured Nokia to be the mobile with best battery backup as 98 out of 100 favoured it.

•

While Spice got 2 favours and Samsung & Fly got none.

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10. TABLE FOR 10th VARIABLE

10.which mobile company has the lowest price?

Valid

Spice Fly

Frequency 71 29

Percent 71.0 29.0

Valid Percent 71.0 29.0

100

100.0

100.0

Total

Cumulative Percent 71.0 100.0

80

t n u o C

60

40

20

0 Spice

Fly

10..which mobile company has the lowest price?

- 24 -

INTERPRETATION: •

The data shows that dealers feel the Spice mobile and Fly mobiles have been offering the best price to the customers and that too without making relaxation in the features.

•

The Spice mobile has got 71 favours while the Fly mobile got the rest 21. And the Nokia and Samsung got none. which shows that the strategies that Spice and Fly are opting going well.

- 25 -

11. TABLE FOR 11th VARIABLE:

11. in case of low sales, what is the main reason for low sales of Spice?

Valid

Looks sound

Frequency 26 1

Percent 26.0 1.0

Valid Percent 26.0 1.0

Cumulative Percent 26.0 27.0 100.0

Brand

73

73.0

73.0

Total

100

100.0

100.0

80

t n u o C

60

40

20

0 Looks

sound

Brand

11.in case of low sales, what is the main reason for low sales of Spice?

- 26 -

INTERPRETATION: •

The data here interprets that the main reason for the low sales of Spice mobiles as compared to its rivals Nokia and Samsung is the less brand awareness among the people. People do not easily recognize and hence show favour to Spice mobile as they show towards Nokia & Samsung.

•

73% dealers think that brand unawareness is the main cause for its low sales while 26% believe its looks to be responsible for low sales.

- 27 -

12. TABLE FOR 12th VARIABLE:

12. according to you, what should the Spice company do to increase their sales?

Frequency Valid

Increase the features Promotions own service centers Others Total

Percent

Valid Percent

Cumulative Percent

25

25.0

25.0

25.0

56

56.0

56.0

81.0

6

6.0

6.0

87.0

13

13.0

13.0

100.0

100

100.0

100.0

60

50

t n u o C

40

30

20

10

0 Increase the features

Promotions

own service centers

Others

12..According to you, what should the Spice company do to increase their sales?

- 28 -

INTERPRETATION:

•

56% dealer feel that by promoting the Spice mobile on a large scale through press , media , programs, Spice mobile can increase its market share.

•

25% think that by increasing the features as in Nokia’s mobiles, Spice will be able to snatch some customers from its competitors.

•

While 6% dealers also believe that by having their own service centers they can nserve its customers better which otherwise suffer due to dependence on hotspots and dealers for any default piece.

- 29 -

13.TABLE FOR 13th VARIABLE: 13.If you did not place Spice mobile on your shop, give reason:

Frequency Valid

company executive did not approach Brand name Total

Missing Total

System

Percent

1

1.0

1 2

Valid Percent

Cumulative Percent

50.0

50.0

1.0

50.0

100.0

2.0

100.0

98

98.0

100

100.0

1.0

0.8

t n u o C

0.6

0.4

0.2

0.0 company executive did not approach

Brand name

13.If you did not place Spice mobile on your shop, give reason:

- 30 -

INTERPRETATION: •

Out of 100, there were only 2 dealers who had not Spice mobile on their counter.

•

1 of them told that company executive did not approach them that’s why they did not place Spice mobile on their shop. While the other told that it does not have much brand value and thus there are less sales and hence they do not place them on the shop.

- 31 -

14. TABLE FOR 14th VARIABLE:

14. according to you, how long will it take for spice mobile to give tough competition to

Nokia & Samsung in the metro cities?

Frequency Valid

less than 10 years 10-20 years can't say Total

69

Percent 69.0

Valid Percent 69.0

Cumulative Percent 69.0

7

7.0

7.0

76.0

24

24.0

24.0

100.0

100

100.0

100.0

70

60

50

t n u o C

40

30

20

10

0 less than 10 years

10-20 years

can't say

14.According to you, how long will it take for spice mobile to give tough competition to Nokia & Samsung in the metro cities?

- 32 -

INTERPRETATION: •

69% dealers say that within 10 years, Spice mobile can surpass Samsung and may come closer to Nokia.

•

While there were also 26% dealers who did not have a say and said that they can’t say.

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INTERRELATIONS BETWEEN DIFFERENT VARIABLES

BETWEEN Out of the following, which company’s

Which price range of mobiles has the

mobiles have you placed in your shop?

maximum sales on your shop?

Count

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

Nokia,samsung Nokia,samsung,Spice

2.Which price range of mobiles have the maximum sales on your shop? between Between Rs. Less than R.3,000 & 8,000 & Rs. More than Rs. 3,000 Rs. 8,000 13,000 Rs. 13,000 0 1 0 0 2 5 1 1

Nokia,Spice,Fly Nokia,Samsung,Spice,Fly

1 9

1

4

1

0

6

19

49

13

2

83

0

1

0

0

1

22

60

15

3

100

Nokia,Fly Total

Total

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Bar Chart 2.Which price range of mobiles have the maximum sales on your shop?

50

Less than Rs. 3,000

40

betwen R.3,000 & Rs. 8,000 Between Rs. 8,000 & Rs. 13,000

30

t n u o C

More than Rs. 13,000 20

10

0 Nokia,samsung Nokia,Spice,Fly Nokia,Fly Nokia,samsung,Spice Nokia,Samsung,Spice,Fly

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

INTERPRETATION: •

Out of the 83 dealers who place all the 4 mobiles Nokia, Samsung, Spice and Fly on their shops, 68 dealers have the maximum sales of the mobile ranging below Rs. 8,000.

•

While only 2 out of these 83 dealers have the maximum sales of the mobiles costing above Rs. 13,000.

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.

BETWEEN

Out of the following, which company’s

Do you have Spice mobile on your shop?

mobiles have you placed in your shop?

Count 3. Do you have Spice mobile on your shop? Yes

Total

No

1. Out of the following, which company's

Nokia,samsung

0

1

1

Nokia,samsung,Spice

mobiles have you placed in your shop?

9

0

9

Nokia,Spice,Fly

6

0

6

83

0

83

0

1

1

98

2

100

Nokia,Samsung,Spice,Fly Nokia,Fly

Total

- 36 -

Bar Chart 3.Do you have Spice mobile on your shop?

100

Yes No

80

t n u o C

60

40

20

0 Nokia,samsung Nokia,Spice,Fly Nokia,Fly Nokia,samsung,Spice Nokia,Samsung,Spice,Fly

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

INTERPRETATION: •

There were dealers who had placed only Nokia and Samsung and even Nokia and Fly on their counter and not a single Spice mobile. But they were only 2 in number.

- 37 -

BETWEEN Which price range of mobiles has the

Which model of Spice has the maximum

maximum sales on your shop?

sales on your shop?

Count 5. Which model of Spice has the maximum sales on your shop? D-88n 2. Which price range of mobiles have the maximum sales on your shop?

0

8

3

0

25

10

23

58

Between Rs. 8,000 & Rs. 13,000

15

0

0

0

15

More than Rs. 13,000

3

0

0

0

3

18

33

13

34

98

Total

- 38 -

S-545

Total

variable 11

Less than Rs. 3,000 between R.3,000 & Rs. 8,000

C-810

22

Bar Chart 5.Which model of Spice has the maximum sales on your shop?

25

D-88n

20

C-810 S-545 variable

t n u o C

15

10

5

0 Less than Rs. 3,000 Between Rs. 8,000 & Rs. 13,000 betwen R.3,000 & Rs. 8,000 More than Rs. 13,000

2.Which price range of mobiles have the maximum sales on your shop?

INTERPRETATION: •

The dealers with the maximum sales of the mobiles ranging below 3,000 had no sales of D-88n.

•

The dealers with the sales of above Rs. 8,000 mobiles have the sales of the D-88n mobiles while dealers with sales of mobiles ranging in between Rs. 3,000 and Rs. 8,000 have maximum sales of C-810 model of Spice.

- 39 -

BETWEEN How long has it been since you placed

Which model of Spice has the maximum

Spice mobile on your shop?

sales on your shop?

Count 5. Which model of Spice has the maximum sales on your shop? D-88n 4. How long has it been since you placed spice mobile on your shop?

C-810

S-545

Total

variable

Less than 6 months Between 6-12 months

2 7

2 10

1 6

2 9

7 32

Between 12-18 months

5

15

3

10

33

4

6

3

13

26

18

33

13

34

98

More than 18 months Total

- 40 -

Bar Chart 5.Which model of Spice has the maximum sales on your shop?

15

D-88n

12

C-810 S-545 variable

t n u o C

9

6

3

0 Less than 6 months

Between 6-12 months

Betwen 12-18 months

More than 18 months

4.How long has it been since you placed spice mobile on your shop?

INTERPRETATION: •

The dealers who are keeping Spice mobile for more than a year are having more sales of the mobiles ranging above 5,000 i.e. C-810 & D-88n.

- 41 -

.

BETWEEN

How long has it been since you placed

In case of low sales, what is the main

Spice mobile on your shop?

reason for low sales o Spice?

Count 11. in case of low sales, what is the main reason for low sales of Spice? Looks 4.How long has it been since you placed spice mobile on your shop?

sound

Total

Brand

Less than 6 months Between 6-12 months

3 11

0 1

4 20

7 32

Between 12-18 months

6

0

27

33

6

0

20

26

26

1

71

98

More than 18 months Total

- 42 -

Bar Chart 11.in case of low sales, what is the main reason for low sales of Spice?

30

25

Looks sound Brand

t n u o C

20

15

10

5

0 Less than 6 months

Between 6-12 months

Betwen 12-18 months

More than 18 months

4.How long has it been since you placed spice mobile on your shop?

INTERPRETATION:

•

The shopkeepers who were keeping Spice mobile since last 6 months feel that brand unawareness is the main cause for its low sales as they had a better vision of the customers towards Spice mobile.

- 43 -

.

BETWEEN

How long has it been since you placed

According to you, what should the Spice

Spice mobile on your shop?

company do to increase their sales?

12..According to you, what should the Spice company do to increase their sales?

4.How long has it been since you placed spice mobile on your shop?

Less than 6 months Between 6-12 months

Increase the features 0 8

Promotions 2 20

own service centers 2 0

Betwen 12-18 months

9

21

6 23

More than 18 months Total Count

- 44 -

Total Others 3 4

7 32

1

2

33

13

3

4

26

56

6

13

98

Bar Chart 12..According to you, what should the Spice company do to increase their sales?

25

20

Increase the features Promotions own service centers

15

t n u o C

Others 10

5

0 Less than 6 months

Between 6-12 months

Betwen 12-18 months

More than 18 months

4.How long has it been since you placed spice mobile on your shop?

INTERPRETATION: •

The dealers keeping mobiles from more than 6 months feel that by marketing its product better, the company may overcome its low sales.

•

While the dealers who are new to spice mobile gave the reasons like by having own service centers and other reasons for low sales of Spice .

- 45 -

.

BETWEEN

In case of low sales, what is the main

According to you, what should the Spice

reason for low sales o Spice?

company do to increase their sales?

Count 12..According to you, what should the Spice company do to increase their sales?

11.in case of low sales, what is the main reason for low sales of Spice? Total

Looks sound

Increase the features 9 0

Promotions 8 0

own service centers 2 0

16

48

25

56

Total Others 7 1

26 1

4

5

73

6

13

100

Brand

- 46 -

Bar Chart 12..According to you, what should the Spice company do to increase their sales?

50

40

Increase the features Promotions own service centers

30

t n u o C

Others

20

10

0 Looks

sound

Brand

11.in case of low sales, what is the main reason for low sales of Spice?

INTERPRETATION: •

Out of the 73 dealers who said that Brand unawareness among the public to be the main reason for the low sales of Spice mobile, 48 dealers believe that by accelerating the promotions, the company can increase its mkt. share.

•

While out of the 26 who think that looks are responsible for low sales,9 dealers said that company should increase the features in the mobile and 8 said that Spice should promote on a large scale.

•

It concludes that by promoting the mobile through different ways, company may come over its low sales.

- 47 -

BETWEEN How long has it been since you placed

According to you, what should the Spice

Spice mobile in your shop?

company do to increase their sales?

Count 14. According to you, how long will it take for spice mobile to give tough competition to Nokia & Samsung in the metro cities?

4. How long has it been since you placed spice mobile on your shop?

Less than 6 months Between 6-12 months

less than 10 years 5 22

10-20 years 1 1

can't say 1 9

7 32

22

2

9

33

20

3

3

26

69

7

22

98

Between 12-18 months More than 18 months

Total

- 48 -

Total

Bar Chart 14.According to you, how long will it take for spice mobile to give tough competition to Nokia & Samsung in the metro cities?

25

20

less than 10 years 10-20 years

15

t n u o C

can't say

10

5

0 Less than 6 months

Between 6-12 months

Betwen 12-18 months

More than 18 months

4.How long has it been since you placed spice mobile on your shop?

INTERPRETATION: •

There are 20 dealers who have Spice mobile on their shop since last 1.5 years and feel that within 10 years Spice mobile will be able to overtake Samsung and will give competition to Nokia.

•

Infact the dealers who are keeping Spice mobiles since 6 months to 18 months are 44 in no. and have an opinion that Spice will Strengthen its position

- 49 -

VOLUME OF SALES OF THE MOBILE COMPANIES (IN %) COMPANY NOKIA SAMSUNG SPICE FLY

SALES(BY VOLUME) 67% 16% 11% 6%

Volume of sales for Mobile Phones In East Delhi

6% 11%

Nokia Samsung

16%

Spice Fly

67%

- 50 -

INTERPRETATION: From the total sales of the 100 dealers surveyed that if it is assumed that they have only these 4 mobiles on their shops, then, it is found that Nokia has the 67% market share in East Delhi, Samsung 16%, Spice 11% and Fly 6%.

- 51 -

4.2 SECONDARY DATA:

4.2.1 ANALYSIS OF THE CURRENT MARKET SHARES OF MOBILE COMPANIES:

COMPANY WISE MARKET SHARE IN INDIA:

COMPANY NOKIA SONY SAMSUNG MOTOROLA LG SPICE OTHERS

MARKET SHARE 62.5 12.8 7 5.9 3.41 1.7 6.69

- 52 -

Market Share for Mobile Companies In India

1.70%

6.69%

3.41% 5.90% Nokia Sony Samsung Motorola

7%

12.80%

62.50%

LG Spice Others

INTERPRETATION: This pie chart shows that Nokia still maintaining its top position in India with 62.50% market share though it is also losing some of its customers due to a large no. of new entrants in the Indian booming telecom industry. But it is still far ahead of its closest rival Sony Ericsson by 39.70% market shares.while Spice has only 1.70% market share, being a rather new player. The biggest contribution is from the Karnataka and Punjab region where it holds the 5th and 2nd positions respectively.

- 53 -

4.2.2: NO. OF FUTURE MOBILE SUBSCRIBERS IN INDIA:

1000

No.of mobile subscribers(in million)

900 800 700 600 500

Series1

400 300 200 100 0 2000-01 2005-06 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Source: United Nations Population division publication

INTERPRETATION: •

On the basis of this ,it is projected that almost 350 million new mobile subscribers will e added between 2005-06 and 2010-11 and more than 450 million will be added between 2010-11 and 2015-16.

- 54 -

4.2.3: TREND ANALYSIS TO FORECAST ANNUAL NET SALES FOR SPICE MOBILE: SPICE MOBILE:

YEAR 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

ANNUAL NET SALES(in million) 1031 1395 1647 2044 2913

TREND VALUE(in million) 923.4 1364.7 1806 2247.3 2688.6 3129.9 3571.2 4012.5 4453.8 4895.1

6000

5000

4000 ANNUAL

3000

TREND VALUE

2000

1000

0 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 201103 04 05 06 07 08 09 10 11 12

- 55 -

INTERPRETATION: On the basis of this trend analysis done to forecast the future net sales for the Spice mobile indicates that the net sales of Spice mobile which was just above Rs. 1,000 million in 2002-03, will reach Rs.3,000 million in the current year and will touch the Rs 5,000 million in the year 2011-12.

- 56 -

4.2.4: SWOT ANALYSIS STRENGTHS: •

Telecommunication sector is one of the major sectors to contribute maximum to the nation’s economy.

•

India because of market oriented stable economy, availability of skilled and cheap manpower and raw material truly becomes one of the favorite destinations of mobile sector.

•

Telecom sector growing at a rapid pace. - India has the highest growth rate in the world. - India set to become IInd largest wireless network in the world after China.

•

Strong telecom regulations in TRAI and several experienced players like Nokia, Samsung Sony offer the best product to consumers with the latest technology and competitive price.

WEAKNESSES: •

Indian teledensity (24.63%in January 2008) has still a fair way to go before it catches up with the developed nations (60%-80%).

•

Lack of Infrastructure in semi-rural areas which makes it difficult to make inroads into this mkt. segment.

•

Sluggish way of reform process.

- 57 -

OPPORTUNITIES: •

On an average, 7 to 8 million subscribers added every month. India has crossed the 250 million mark with the addition of 8.53 million mobile subscribers in February, 2008.

•

INDIA has the largest proportion of population below 35 years,70% potential buyers which means that 130 million people will get added to the working population between 2003 and 2009

•

Already 20% of the mobile users in India access Internet through mobiles. So, mobiles with the technologies like this along with others like mobile navigation and trekking will more than double its subscribers in next 3-4 years.

- 58 -

CHAPTER 5: CONCLUSIONS & RECOMMENDATIONS: 5.1: CONCLUSION: FROM PRIMARY DATA: •

60% dealers have the maximum sales for the mobiles ranging between Rs. 3,000 and 8,000 i.e. Spice mobile has a good market potential in East Delhi since they have maximum offerings in this price segment only.

•

C-810 has good sales of about 33.7% and in fact D-88n which is a new offering got a good response with 18.4% from the survey done on 100 respondents as Spice is the Ist to offer dual sim concept.

•

Nokia tops the table in Brand awareness with all 100% dealers support and in infact Battery backup with 98%.

•

Samsung was chosen to be the mobile with the best looks and Spice being the cheapest mobile without compromising on features.

•

The Spice mobile lacks in the brand awareness with 73% dealers thinking it to be the reason for its low sales.23% also feel that it hasn’t got lucrative looks which is a must to attract youth customers.Thus, they must work on promotions by PAN India movement and should offer some stylish mobiles.

•

Moreover, the company should send their company executives to every dealer in order to offer Spice mobile in each and every corner to all customers. As there are still many shops which don’t have a Spice mobile because executives did not approach them.

•

It is concluded that within 10 years, the Spice mobile should overtake the likes of Samsung and Motorola and will occupy the same position as in Karnataka.

•

From the survey done for the 4 mobilesNokia had the maximum of 67% sales, Samsung 16% while Spice and fly 11% and 6% respectively. shows that people have a huge faith in Nokia mobile but their mindset is changing with some good

- 59 -

offerings from Spice and other mobiles in terms of Dual sim mobiles and low cost.

FROM SECONDARY DATA: •

The trend analysis for the forecasted sales for Spice mobile shows that it will double its sales in 2011-12 and will reach Rs. 5,000million.

•

The forecast for the no. of mobile subscribers in India interprets that it will reach over 200 till 2008-09 and will surpass 300 mark by 2011-12.

•

According to the current market share for mobile companies in India, Nokia is the uninterrupted leader with 62.50% share. Sony Ericsson holds the second position with 12.80% share while Spice mobile has 1.70% market share having their presence in limited areas.

- 60 -

5.2: RECOMMENDATIONS:

I recommend Spice mobiles Ltd. To go through my these findings: •

Spice mobile should not stop the production of mobiles at a time when they are having the maximum sales for them like they did with C-810 model. There was a good demand for the model and thus, Spice should provide the stock to the distributors.

•

The company should work on its brand building if it really want to match the likes of Nokia and infact should work on its models looks to catch the attention of youths.

•

The company’s distribution network is also the weak link since there are only two distributors in the big city like Delhi. And no distributor in the attached NCR regions likes Gurgaon and Ghaziabad which have a good market potential.

•

The company should open their own service centers as the customers face problems to get their phones serviced in Hotspot which already offers service for a large no. of players like Samsung , Nokia LG , Sony, and Fly.

•

The company may offer some attractive offers with their mobiles like a Lucky Draw winner to have a date with Spice’s brand Ambassador Katrina Kaif or the winner’s photo to be displayed on one of its model’s box. That may cause a sudden rise in sales.

- 61 -

APPENDICES Questionnaire for dealers

Dear Respondent, This questionnaire is meant for the purpose of research on “To check the mkt. potential of mobile phones in different price segments.

”meant for the continuous evaluation,

marketing research & Report Preparation for Spice Companies Ltd.

1. Out of the following which company’s mobiles have you placed in your shop?s a) Nokia, Samsung b) Nokia, Samsung, Spice c) Nokia, Spice, Fly d) Nokia, Samsung, Spice, Fly 2. What are the average monthly sales (by volume) for these mobiles on your shop? a) Nokia

………

b) Samsung

………

c) Spice

………

d) Fly

……….

3. Which price range of mobiles has the maximum sales on your shop? a) Less than Rs. 3,000 b) Rs. 3,000-8,000 c) Rs. 8,000-13,000 d) More than Rs.13, 000

- 62 -

4. Do you have Spice mobile on your shop? a) Yes

b) No

If yes, 5. How long has it been since you placed spice mobile on your shop? a) Less than 6 months b) 6-12 months c) 12-18 months d) More than 18 months

6. Which model of spice has the maximum sales on your counter? a) D-88n

b) C-810

c) S-545 d) variable

7. According to you, which company’s mobiles have the maximum brand awareness: a) Nokia

………

b) Samsung

………

c) Spice

………

d) Fly

……….

8. Which company’s mobiles have the best looks: a) Nokia

………

b) Samsung

………

c) Spice

………

d) Fly

……….

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9. Which company’s mobiles have the best sound: a) Nokia

………

b) Samsung

………

c) Spice

………

d) Fly

……….

10. Which company’s mobiles have the best Battery backup? a) Nokia

………

b) Samsung

………

c) Spice

………

d) Fly

……….

11. Which company’s mobiles have the lowest price? a) Nokia

12.

………

b) Samsung

………

c) Spice

………

d) Fly

……….

In case of low sales, which is the main reason for low sales of Spice? a) looks

13.

b) sound

c) brand

d) after sales service

According to you, what should the spice company do to increase their market share? a) Increase features

b) promotions

c) own service centre

- 64 -

d) others

14.

If you did not place Spice mobile on your shop, give reason: a) Company executive did not approached b) Brand name c) No demand d) Can’t say

15.

According to you, how long will it take for spice to give tough competition to Nokia & Samsung in the metro cities? a) Less than 10 years b) 10- 20 years c) More than 20 years d) Can’t say

- 65 -

MONTHLY SALES (BY VOLUME) OF MOBILE PHONES FOR THE DEALERS: Nokia Arora mobile phone Adarsh Telecom Aggarwal Communication Star communications Gulati communications Shivam Teleshop India mobile Studio New Galaxy(India) Bakshi Electronics Setia stores Gori Communications Prince communications Grah Adhaar Modern communications Sai communications Shagun mobile Shop Raj mobile shop Tirupati communications Murti communications Rakesh Enterprises Voice Stream Sherya communications Atik communications Honey Telecom Harit's sparkle Enterprises Jai Balaji Enterprises Balaji colour lab and communications Amit mobile and Repair Nagpal Telecom Sai Telecom Service Paris cellular point Lovely mobile centre Video Hut Jain Telecom centre Dev Telecom Real mobile point Golden mobile hut Choice communications - 66 -

Samsung 80 100 80 180 120 125 150 250 150 230 150 70 60 90 125 100 100 200 150 125 100 100 100 150 150 125 125

40 30 35 25 20 30 60 100 80 60 40 3 2

100 150 125 100 100 150 125 100 100 150

10 60 25 30 15 30 40 10 20 25

30 25 10 60 20 25 30 15 10

10 25

Spice

Fly 7 2 15 45 25 20 20 55 35 30 30 3 2 10 25 5 5 40 20 10 20 10 5

5 2 8 25 20 10 15 25 25 10 15

10 2 3 15 6

2

25 15 15

20 5 10 10

8 25 20 20

20 5 8

15 35 10 10 25

10 15 10 8 15

Arora Telecom D.K.G. Electronics Sahni Electronics Gupta Telecom Capital Telecom Centre Dhamija Electronics Vicky Telecom Khanduja communications Sanva Telecom Jyoti electronics Shri ram traders Monika Telecom centre City Gift Gallery Khan Mobile point R.G. Enterprises True value shoppe R.C. communications Mobile Plaza Lamba Watch companies Gayatri mobile world Cell mart Choudhary communications Bhatia Telecom Gun Gun communications radhika Telecom V.P. communications Lucky communications Shri ram communications Anmol communications Lucky corner Maan telecom jai Ambey communications Aashirwaad communications Sanjay Telecom Right communications Vishal Telecom Arun telecom Golden Mobile Hut No. 1 Telecom Raja communications Gurukel De Hi-Tech S.K. communications ACCI Bobby Electronics & Telecom Mobile Home Muskaan communications

75 100 125 150 100 150 125 100 100 25 100 100 80 100 100 175 125 100 100 125 150 125 150 125 125 100 150 125 100 100 100 125 150 100 150 100 125 150 100 125 125 125 80 75 100 100

- 67 -

30 15 40 35 10 60 40 30 8 25 20 25 10 20 40 70 45 25 30 25 40 15 45 30 30 20 30 20 20 25 20 30 35 25 40 20 20 30 20 30 30 15 20 40 30

15 10 25 30 10 35 15 10 10 25 10 15

10 10 15 20

20 30 25 30 25 20 25 20 25 35 25 20 15 30 15 10 20 20 30 30 10 30 10 15 45 15 25 20 10 6 20 15 20

10 15

20 10 5 15 10 10

10 8 5 15 20 15 20 10 20 10 20 5 5 10 10 10 20 5 20 5 10 20 8 15 10 5 3 8 5 10

Uncleji telecom GTB Telecom Ganpati communications Manbhavan Hello Point Bhardwaj Telecom centre Chhabra communications Goyal Telecom Panwar communications New -Nice communications Kamal Telecom centre Bharat Telecom Aneja communications Kanika communications Ahuja communications Lakshmi communications Mahak communications Nagpal Telecom

150 100 125 100 100 125 125 70 100 100 80 150 100 100 75 80 150 11750

BIBLIOGRAPHY – •

www.marketresearch.com/product/

- 68 -

25 30 20 40 50 25 25 15 45 20 30 10 20 20 2708

30 20 15 15 20 25 25 10 10 15 5 40 10 25 10 15 1873

5 10 10 5 10 15 10 5 6 5 5 15 5 10 5 5 15 962