Analysis of retailers buying behaviour for mobile phones in ranchi district

PRESENTED BY :-

RAHUL KUMAR

CUJ/I/2012/MBA/27

IMBA VTH SEM

• Gionee Communication Equipment Co. Ltd was founded on September 2002 by Liu

Li Rong. It is a high tech enterprise that focuses on the R&D, production and sales

of cellular mobile devices. In 2005, Gionee obtained the GSM and CDMA mobile

phone production license.

• Since 2011, Gionee moved rapidly to expand its presence into India, Nigeria,

Vietnam, Taiwan, Myanmar, Thailand, Philippines and so on. Gionee products are

currently selling in India, Bangladesh, Pakistan, Indonesia, Vietnam, Thailand,

Philippines, Malaysia, Russia, Middle East and Africa, with exports reaching 1

million phones per month for overseas markets.

• ''To make complicated mobile technology User Friendly and Unique to consumers''

Gionee believes that products should be as unique as the people who use

them. We define ourselves as a global provider of mobile and internet technology that is

user friendly, stylish, and wallet friendly. In short, a brand that makes their life better.

• Gionee adheres to the motto "integrity, teamwork, innovation"

• To understand the perception of the dealers of Ranchi District with reference to

mobile handset brands.

• To study the preference level & buying behaviour of retailers for various mobile

handset Brands.

• To obtain/observe the market share of various brands in comparison to GIONEE

• To evaluate the decision making process of retailers for selecting a particular

brand.

• To observe the level of satisfaction among the Retailers towards Brand Gionee.

• To understand the attributes a consumer looks for while purchasing a Handset.

RESEARCH METHODOLOGY

a. SAMPLING METHODOLOGY:

• Sample Size —60 Retailers of Ranchi District

• Sample Unit - Handset Retailers of Ranchi District.

• Sampling Area – Ranchi

• Sampling Technique - Convience Sampling technique

b. RESEARCH DESIGN: - Exploratory and Descriptive Research Design.

c. DATA COLLECTION: - Primary Data and Secondary Data

Primary data has been taken in the form of Structured Questionnaire &

Observation, are the two basic methods used for collecting primary data,

which suffices the research objectives.

Secondary data sources like catalogue of the company, product range

book of the company & various internet sites such as google, Gionee’s

official website, research books, and available related materials have been

used.

BRANDS Number of

retailers

% of retailers keep

these brands in their

shop

Samsung 57 95

Nokia 52 86

Blackberry 16 27

Micromax 53 89

Spice 26 45

Which companies Handsets are offered in your outlet?

Numbe

r

Percentag

e

Yes 27 46

No 33 54

Do you Sell Gionee Handsets in your retail shop?

46%54%Yes

No

% of retailers

Range of

handsets

Number

of

retailer

s

%

Less than 10,000 8 13

Less than 20,000 18 30

Less than 30,000 14 23

More than 30,000 20 34

What Range of handsets you keep in your retail store?

Less than

10,000

13%

Less than

20,000

30%

Less than

30,000

23%

More than

30,000

34%

Handsets sales in a

month

% of retailers

Less than 150 38%

150-300 26%

300-450 20%

More than 450 16%

Total number of handsets sales in a month.

38%

26%

20%

16%

less than 150 150-300 300-450 more than 450

%

Average sales of GIONEE

Mobiles in a month

No . of

retailers

%

Less than 25 12 44

25-50 4 15

50-75 4 15

More than 75 7 26

Number of Gionee handsets sales in a month.

Less than 25

44%25-50 15%

50-7515%

More than 75

26%

%

5752

16

53

26 27

0

10

20

30

40

50

60

Samsung Nokia Blackberry Micromax Spice gionee

Number of retailers

What are the factors you consider for placing the order (on scale between 1-5 where 1 is

minimum and 5 is maximum)

a) Margin 4.7

b) Branding 3.8

c) After sale service 3

d) Regular visit of distributor 4.5

e) Scheme 4

4.7

3.8

3

4.5

4

MARGIN BRANDINGAFTER SALE SERVICEREGULAR VISIT OF DISTRIBUTORSCHEME

Ranking on the scale of 1-5

Brand 4

Schemes 3

Price 4.5

Features 4.5

After sales

service

3.5

What is the primary motivating factor of consumers?

4

3

4.5 4.5

3.5

Brand Schemes Price Features After salesservice

ranking on scale of 1-5

NUMBER %

YES 25 93

No 2 7

Are you attracted towards promotional schemes that Gionee is offering?

Yes91%

No9%

NUMBER %

Yes 27 100

No 00 0

Are you satisfied with the product of Gionee?

27

0

Yes No

No. of retailers satisfied with the

product

Reason Number of

retailers

%

Distributor not

visited

10 31

Payment

policy/mode

4 12

Less margin 8 24

Less in demand 5 15

Other 6 18

What is the reason for not selling the Gionee handsets?

Distributor not

visited 31%

Payment policy/ mode 12%

Less margin

24%

Less in demand

15%

Other 18%

Ye

s

26 79 %

No 7 21 %

Would you like to keep GIONEE Handsets in your Retail shop in future?

Yes79%

No21%

• Most of the retailers reported that the distributors did not visit the outlets

regularly. There are regular instances of stock being received very late after the

order.

• Gionee can improve or lengthen its product line in the range of Rs 5000 to

Rs10,000 because this is the segment which company lags behind.

• Gionee phone is performing good in the smart phone category which is preferred

due to its quality and innovation. But its presence in the feature phone category

is minimal. The company can venture into the feature phone category with more

products specially designed for the rural consumers.

• Also, the most remarkable implication for mobile phone manufactures, sellers

and other value chain members is that advertising of the new mobile phone

brands should go beyond highlighting its properties to assured the quality and

the user-friendliness of the mobile phone.

• Since Gionee has a low market share so it is recommended to the company to

deeply penetrate its product in the market of Ranchi and nearby districts of

Jharkhand state.

LIMITATIONS OF THE STUDY:-

• This study has been undergone with a Sample size of 60 Retailers of Ranchi

District only. Hence, the interpretations cannot be extended for the whole.

• The scope of the project is limited to the city of Ranchi. So, we cannot say that

the same response will exist throughout India.

• It also have been observed that the handset business is a very dynamic industry.

Any major move by the new company or the existing Companies can change the

course of business. Hence, this study is limited to the time frame for which this

has been conducted.

• This study need to be interpreted carefully. They can provide clues to the

company’s performance. But on their own, they cannot show whether

performance is good or bad. It requires some quantitative information for an

informed analysis to be made.