Micro Max

ROYAL INSTITUTE OF MANAGEMENT AND

TECHNOLOGY

A

SEMINAR REPORT

ON

A COMPARATIVE STUDY ON CONSUMER BUYING BEHAVIOUR REGARDING VARIOUS BRAND NAMES;

A Case Study on

(SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE DEGREE OF MBA.)

(Session 2010-11)

Submitted To Submitted bu

Ms Isha kalra roohi sikka

lecturer MBA 1st year

Dept. of MBA university roll no

RIMTCollege

CERTIFICATE

Certified that the project report on “A Comparative Study on Consumer

Buying Behaviour Regarding Various Brand Names; A CASE STUDY

ON MICROMAX” has been completed by roohi sikka under by guidance.

She has submitted the report in partial fulfillment of the requirement for the

Degree MBA from Maharishi dayanad university It is her on original

research and I recommended that this should be sent for evaluation.

Dr.BHUTANI MS ISHA KALRA Principal Project Incharge RIMT College Lecturer in MBAPanipat RIMT College Panipat

ACKNOWLEDGEMENT

The researcher feels obliged to express his grateful thanks to all those

persons who rendered him all possible help in completion of this research

project.

y gratitude to the staff members of MBA. for the valuable guidance,

suggestions and continued encouragement in condition of the study and

preparation of the report.

I am thankful to MS ISHA KALRA, PROJECT INCHARGE for

providing signification help for completion of project report. I am also

thankful to Dept. of Micromax for their valuable help.

ROOHI SIKKA

PREFACE

I, ROOHI SIKKA have made this project in order to show technique’s of

“MICROMAX”. This report contains all the necessary information

regarding the history & evolution Mobile company, convey of brand

personality, methodology. There is cut throat competition and markets have

now realized the value of customers. Customer orientation is the key word of

the present times. Consumer buying preferences, tastes, choice have changed

and they have become much more quality conscious. It led to a boom in the

consumer market people was on the spending spree.

This project contains all the information about “MICROMAX”.

STUDENT DECLARATION

I, ROOHI SIKKA student of MBA RIMT College, Panipat here by declare

that this project report on “A Comparative Study on Consumer

Buying Behaviour Regarding Various Brand Names; A

CASE STUDY ON MICROMAX” is submitted in the partial

fulfillment for the requirement of degree MBA. It is of my own efforts &

not for the award of any other title or prize.

Submitted To: Submitted By: MS ISHA KALRA ROOHI SIKKA

Project Incharge MBA Department Of MBA. RIMT.College RIMT.College Panipat Panipat

CONTENTS

1. EXECUTIVE SUMMARY

2. INTRODUCTION TO INDUSTRY

3. INTRODUCTION TO MICROMAX COMPANY

Company Introduction

Micromax in India

Board of Director’s

Product & Services

Corporate Responsibility

Office Locations

Company Financial Reports

4. INTRODUCTION TO STUDY UNDERTAKEN

5. OBJECTIVES OF THE STUDY

6. LIMITATIONS

7. RESEARCH METHODOLOGY

8. ANALYSIS & INTERPRETATION

9. CONCLUSION AND FINDINGS

10.SUGGESTIONS/RECOMMENDATIONS

11. ANNEXTURE

12. BIBILOGRAPHY

EXECUTIVE SUMMARY

The project is a study of Consumer buying behaviour about mobile handsets

offered by different companies like NOKIA, MICROMAX, MOTOROLA and

others. In this Project NOKIA is being taken as benchmarking to study especially

customers buying behavior so as to know;

Why people prefer NOKIA first while they are going to purchase any

Mobile Handset?

In spite of all Marketing efforts done by Micromax Why people aren’t ready

to purchase its Handsets?

What personal and organizational factors influence customers buying

behaviour?

To understand the degree of influence of product factors and service

factors on the customer buying behaviour.

Although all my research study is based on primary data that is collected through

questionnaire but few information is collected through secondary data like

company profile and results. The sample size is 200 and the research design

chosen is exploratory research design.

The conclusions drawn from this study are that in most of the customers are now

quality sensitive rather than price. A number of personal, psychological,

demographic and other factors influence customers buying behaviour. Most of

the customers get informations to get awareness from their friends and their

evaluations are based on that informations. Advertising and Word of mouth play

important role to create brand awareness and lead sales of mobile handsets.

After having a comparative overview it is known that Nokia as a market leader is

enjoying 63% market share where Micromax is having only 4% in Indian Mobile

Industry.

INTRODUCTION

TO

INDUSTRY

INTRODUCTION TO INDUSTRY

India to become 3rd largest mobile population in world by 2009 as middle classes

'go mobile' Data from the "Indian Mobile Market 2008" statistical handbook

reveals that mobile ownership will pass 100 million in 2009 as 'the largest

middleclass in the World’ takes up ownership. With 115.3 million forecasted ile

owners in 2009.

India ranks 3rd in the world behind only China and the USA.

Indian mobile owners are becoming younger as a result of cheaper calls;

subsidized handsets and widespread availability of prepay lowering the barriers

to ownership.

Relatively low GDP combined with the popularity of prepay still exerts downward

pressure on ARPU in India. Average revenues stand at under $8 per month in

2008, lower than the global average at $21.30. 25 – 29 year olds spend the most,

with ARPU at over $8pcm. The rising use of data services, particularly SMS, has

stemmed ARPU decline in this age group.

India has ranked next only to China in registering high GDP growth. The Indian

manufacturing output has been increasing year over year and the composites

industry has been growing at about 20% in the last couple of years. The need for

composites is increasing day by day and it is predicted that the composites

market will grow by 4 times the current consumption by the year 2012. This

report discusses in detail the large need for composites and the many new

applications that will emerge. The presence of many multinationals together with

a growing need for applications will ensure a steady market growth for the

composites in India.

India is one of the fastest growing markets for wireless technology. The country’s

mobile operators are currently providing services based on predominantly on

GSM, but also on CDMA. Whilst India has been moving into advanced forms of

mobile technology, including GPRS and EDGE, the country has stopped short of

extensive adoption of 3G, although trial services are being set up. Prepaid

services have been an important driver of growth in subscriber numbers and

represent around 75% of the total mobile subscriber base. The first mobile

services were introduced in 1996, but did not take off until 1998. Mobile data

services are expected to grow strongly on the back of rising mobile subscriptions.

THE INDIAN MOBILE HANDSET MARKET

The size of Indian mobile handset market in FY 2008-09 was Rs 8,805 crores.

Share of GSM handsets was 84% (7,384 crores) even higher than the GSM

connections (75%) for the same period. It was also much higher than that for

CDMA handsets, which accounted for Rs 1,421 crores (16% market share).

MOBILE GROWTH AND TRAI INITIATIVES

MOBILES CAN ADD VALUE TO GDP

Source –economic times/17 feb.09/p5

Mobile phones are not just about getting connected; they can prove to be a great

money-spinner for the country’s economic health by the virtue of productivity

gains achieved by its users, especially in a developing market like India.

According to a new study of three developing markets- china, India and

Philippines – conducted by the global consultancy giant McKinsey, the economic

impact of all wireless activities on the economy of these countries is upto four

times of the combined value of mobile operators.

The overall wireless activities in India contributed about 2 % to the country’s GDP

in 2008, the study says, adding that this could rise considerably going ahead as

the mobile penetration was a mere 7% in the year. Even a 2% contribution to the

GDP amounts to a whopping $14 billion, taking into a account a GDP of $700

billion in 2008.

In markets like china and Philippines, where wireless penetration is higher, the

wireless activities contributed 5% and 7.5%, respectively, in 2008. Wireless

penetration in china stood at 28% in china and 41% in the Philippines in 2008.

Much of the value created by wireless activities appears to come from the

productivity gains and economic surplus that wireless customers receive simply

by using their mobile phones, the study shows. According to the report, these

results should encourage regulators and operators to get mobile phones into

more hands more quickly.

“By promoting the use of mobile phones, regulatory and industry players can

amplify such gains, as well as the contributions that wireless industries make to

GDP. India has 2% contribution while having the lowest penetration,” Mckinsey

analyst Luis Enriquez said. A 10% increase in penetration would add $2.3 billion

to the end-user surplus and a further $6.2 billion in operator revenues in the

country, he added.

India, the world’s largest growing telecom market, is expected to grow to 500

million mobile users by 2011 and 250 million by 2010 from 150 million at present.

Mobile phones come with a price tag of less than Rs. 2000 and both affordable

STD and ISD call charges, the number of users would increase as the

decreasing average age of cell-phones users are likely to translate to additional

subscribers.

INTRODUCTION

TO

MICROMAX

COMPANY INTRODUCTION

Back in 1991, Micromax made a humble beginning and today prides itself in

being the leader in Wireless Telecommunication in the country.

With a futuristic vision and on exhaustive R&D, Micromax has successfully

generated innovative technologies that revolutionized the telecom sector.

Micromax, is a pioneer in creating life-enhancing mobile phone solutions and

wireless technologies that cater to the increasingly sophisticated needs of mobile

users around the world.

Driven by aspirations and passion for the telecom world, Micromax is geared up

to bring paradigm and groundbreaking mobile solutions incorporating the latest in

cutting edge technology.

Infused and equipped from nearly two decades of expertise and continuous

research, we steadfastly strive to remain at the forefront in terms of both design

and technological advancement.

Micromax dedicated to deliver the latest in breath taking technologies to you in

the most quickest and Xtreme forms.

MICROMAX IN INDIA

Micromax Informatics Ltd is a India based Telecom manufacturer and

distribution partner to Nokia, Samsung, LG etc for their IT / Telecom products in

India. With an annual turnover of INR 5000 million, Micromax has offices in all

major India cities and global offices in Dubai and USA.

Micromax has been making supplies to the Indian GSM operators for their

different telecom requirements and is now expanding their product range to the

global markets. Micromax's products comes with a qualty seal meaning product

satisfaction, high relieability resulting in repeated business. Micromax has their

own 24 hour operational customer service centre just in case you need that small

bit of information albeit at the wrong hour.

Micromax  is headquartered at Gurgaon, Haryana, with offices at USA,

HongKong. It has research and development centers at USA and HongKong.

Motorola's operations in India are divided into three businesses: Enterprise

Mobility Solutions, Home & Network Mobility and Mobile Devices. The

Company’s focus areas include, Mobile handsets, Wireless Infrastructure,

Managed and Hosted Services, Broadband Equipment (wired as well as

wireless), Trunking & Two Way Radios, Software Development, bar code

scanners, RFID systems, and enterprise voice and data mobility solutions.

Micromax already a leader in wireless and broadband communication is picking

up the market in cell phones. It is basically a US based company that because of

the potential of Indian market and buyers has established its branch here in

1991. Started at small scale at that time. it has almost 700 employees in

Gurgaon.

BOARD OF DIRECTOR

Mr. Vikas JainDirector of the Board, Micromax Informatics Ltd.

Mr. Vikas Jain , Business Director Micromax, said, “Delivering best of the

technology and path breaking innovation has always been our priority. We work

towards bringing exclusive technology in the hands of the masses. A 3G Mobile

is stillconsidered an expensive piece of technology, but H360 is here to breakall

the rules. The journey of 3G in India has just begun and there is aneed for mass

awareness of 3G. We are thankful to MTNL for having worked with us to enable

us to bring forth arevolutionary product for the Indian 3G subscribers. We are

confident that thishandset will redefine the 3G experience in India and with

increasing awarenessand availability, 3G mobiles will gain mass popularity.”

PRODUCTS AND SERVICES

Micromax believe it’s possible to have everything. That’s why Micromax offers a

wide range of products and services – from consumer devices to solutions for

businesses, governments, and service providers. Ready to do more? So are we.

Micromax is a global leader in providing integrated communications

solutions and embedded electronic solutions. These include:

Software-enhanced wireless telephone, and messaging products and

systems, as well as networking and Internet-access products for

consumers, network operators, and commercial, government and

industrial customers.

Embedded semiconductor solutions for customers in networking,

transportation, wireless communications and imaging and entertainment

markets.

Embedded electronic systems for automotive, communications, imaging,

manufacturing systems, computer and industrial markets.

Digital and analog systems and set-top terminals for broadband cable

television operators.

Micromax products are distributed through the main channels and shops for

(mobile) communication. We advise you to contact your local communications

specialist with regards to availability and prices of Micromax products.

PRODUCT INFORMATION

Some Micromax products designs allow you to change the shape and colour of

your phone. Your Micromax product may support 'convertible covers', offering a

variety of different looks that constitute the housing of the phone. We recommend

the use of Micromax 'convertible covers', since they have been tested for

compliance with applicable mobile phone standards and regulations, including

Specific Absorption Rate (SAR).

Micromax does not warrant that the usage of non-Micormax convertible covers or

housings will meet such applicable standards and may invalidate your Micromax

warranty.

MICROMAX MOBILES

MICROMAX X500

Feature Highlights

2.8" 262K Full Touch Lens with Sense Flow

5MP Camera with LED Flash

Face Tracking

Sports Mode

Anti Shake

Direct TV Out

Preloaded Opera Mini Web Browser

Expandable Memory (upto 8GB)

MICROMAX GC 700

Feature Highlights

 Dual Reception Mode (CDMA/GSM) using Gravity Sensor

262K Color Touch Lens with Sense-Flo

Motion Sensor

2MP Camera

Multi Format Music Player

Video Recorder/Player

Stereo FM Radio

Large PHB/SMS Memory with PhotoCall

Preloaded Opera MINI Web Browser

MICROMAX X115

Feature Highlights

 Dual SIM - Dual Standby

Marathon Battery *

Stereo FM Radio

Music Player

Expandable Memory(upto

2GB)

Speaker Phone

Voice Recorder

Dust Resistant Keys

MICROMAX X2i

Feature Highlights

 Dual SIM-Dual Standby

Marathon Battery

Standby Time - 30 Days*

Talk Time - 14 hours*

Stereo FM Radio

MP3 Player

Digital Camera

GPRS/WAP/MMS

Expandable Memory (upto 4GB)

MICROMAX Q3

Feature Highlights

Dual GSM-Dual Standby

Qwerty Keypad(ezpad)

Preloaded mobile social messenger (Nimbuzz)

1.3MP Camera

Multi Format Music Player

Stereo FM radio

Bluetooth(A2DP)

Large SMS & PHB using Photocall

Expandable Memory (upto 2GB)

MICROMAX H360

Feature Highlights

 LIVE TV

Video Calling on 3G

High speed mobile broadband HSDPA (3.6Mbps)

2.4" QVGA Touch Screen

3MP CMOS Camera

Video Recording/Playback (4X Zoom)

Expandable Memory (upto 8GB)

MICROMAX DATA CARDS

MMX200C Data Card

Features:

High-Speed Connectivity with speed of upto 153.6 Kbps

T-Flash compatible upto 4GB

Supports Plug and Play Installation

Large Capacity Phonebook

MMX611U Data Card

General Features:Quad Band(850/900/1800/1900 MHz)Supports EDGE (MS Class 10)Auto-Intsall SoftwareInternal AntennaUSB 2.0 Form FactorSupports USB Storage (upto 2GB)  Operating System Support:Windows 2000, XP, Vista  Additionals:DATA/SMS SupportGlobal Roaming

Operator Independant

MMX610 P Data Card

General Features:

Quad Band(850/900/1800/1900 MHz)

Supports EDGE (MS Class 10)

Robust Metal Antenna

PCMCIA slot compatibility

Operating System Support:

Windows 2000, XP, Vista

Additionals:

DATA/SMS Support

Global Roaming

CORPORATE RESPONSIBILITY

Accessibility

Life is a challenge. We know that. But communicating doesn't have to be. At

Motorola, we recognize that customers have different needs and capabilities. We

are committed to creating products that meet the needs of everyone possible —

regardless of abilities.

We provide a wide range of products for people with diverse communications

needs — with hearing, speech, vision, dexterity, mobility or cognitive needs at

varying levels.

Business Conduct

The Micromax Code of Business Conduct reaffirms what each Micromax

employee stands for: Doing the right thing.  Every day.  No excuses.

Micromax's "Key Beliefs" have been in existence for decades, and Micromax

continues to have a strong culture of corporate ethics and citizenship.

Our Key Beliefs: The Way We Will Always Act

Uncompromising Integrity

Constant Respect for People

The Micormax Code of Business Conduct sets the standards for Micromax

commitment to uncompromising integrity. Since its original establishment in the

1991s, the Code has provided Micromax employees guidance for their business

activities, placing a priority on establishing trust with our stakeholders. However,

it is not enough to declare our good values. Micromax is committed to acting on

them — through the potential of our technology and the way we conduct our

business.

Environment, Health & Safety

Recycling

Micromax is a strong proponent and supporter of global environmental sustainability and recycling programs. In partnership with our carriers, customers, retailers and recyclers and on our own, we operate takeback programs across the globe.

Mobile phones

The success of our mobile phone reuse and recycling program depends on consumer participation. We work to increase the number of people who recycle their mobile phones and accessories by:

Enclosing prepaid return envelopes in packaging boxes

Encouraging recycling through charity take-back programs

Holding electronics collection events at our facilities for employees and

local communities

Offering incentives periodically

Participating with governments and other companies in take-back events

and promotions

Locating highly visible collection containers in our service centers

We accept any mobile phone or accessory — not just Micromax products.

OFFICE LOCATIONS

Corporate Office

Micromax House, 697, Udyog Vihar, Phase-V,

Gurgaon, Haryana, INDIA

Ph. : 0124-4009601/2

Fax: 0124-4009603

USA

Micromax Convergence Inc, 1668 S Lewis Street,

Anaheim, CA 92805, USA

HongKongRoom A, 15/F, Hillier Comm. Bldg65-67 Bonham Strand EastSheung Wan, Hong Kong

Factory

Micromax Informatics Ltd, Plot No.234,

HPSIDC Industrial Area, Tehsil Nalagarh, Distt Solan (HO)-173205

BRANCH OFFICES

JAMMU HIMACHAL PRADESH HIMACHAL PRADESH House no 45,Deshmesh Nagar, Digiana , Jammu – 180010

Khasra no.42, Swaraj Building, VillageAmbota, Sector-4, Parwanoo,Himachal Pradesh – 173220

Plot 234, HPSIDC Industrial Area Baddi ,Tehsil Nalagarh,Distt Solan, Himachal Pradesh – 173205

PUNJAB HARYANA UTTARPRADESH Plot no- 297F, Phase 8B,Industrial Area, Mohali,Punjab. – 160059

34- B, Udyog Vihar,Phase- 5, Gurgaon, HARYANA – 122016

E- 7, Madhuban palace, 1st floor, Sanjay Nagar Sector- 23, Ghaziabad,Uttar Pradesh – 201001

UTTARAKHAND DELHI, RAJASTHAN E 410/1/A, Rajendra Nagar,Roorki, Uttarkhand – 247667

9/52/1, Kirti Nagar Industiral Area, Kirti Nagar, Delhi – 110015

H- 410, Ramesh Marg, C- Scheme, Jaipur, Rajasthan – 302001

GUJRAT, MUMBAI, MADHYA PRADESH 116/1384, Laxmi Kripa Flat, New AEC Cross Road,Narayanpura, Ahmedabad,Gujrat – 380013

Plot no- 26, Sector 19E,Vashi, (Off to Palm Beach Road) Near Adlabs,New Mumbai – 400705

188, Rambali Nagar,Kila Maidan, Indore,Madhya Pradesh – 45006

CHATTISGARH ORISSA KOLKATA Near Shivnath Hyundai, Beside Union Bank of India, G.E.Road, Tatibandh Chowk, Raipur,Chattishgarh

Plot no. 750, At- Vimpur Mauza,Near Airport Gate,Bhubaneswar, Dist- Khurda, Orissa - 751020,

Netaji Nagar, "E" Block, P.O.- Ganganagar, Madhyamgram, Kolkata – 700132

BIHAR RANCHI ASSAM A/11, Sachivalaya Coloney, Kankarbagh, Patna, Bihar Sant Vihar, Booty Road , Bariatu, P.S.- SadarRanchi - 834009

Dulal Tea Ware House,NH- 37, Bel- tola, Guwahati,Assam – 781018

ANDHRA PRADESH TAMIL NADU BANGALORE Bunglow # 179, Old Bowenpally, Behind HP Petroll Pump, Near Old Bowenpally Bus Stop, Secunderabad , Andhra Pradesh – 500011

No- 17, 1st Noble Street , Near to Engine Values Ltd, Alandur , Chennai, Tamil Nadu - 600056.

28, 20th 'I' Cross, Ejipura, Viveknagar Post, Bangalore - 560047KERALA        

COMPANY FINANCIAL REPORTS

PERIOD ENDING 09/2009 06/2009 03/2009 12/2008

Balance Sheet - Assets

Cash and Equivalents 3,064,000 2,974,000 2,757,000 2,693,000

Marketable Securities * 735,000 595,000 465,000

Accounts Receivable 225,000 4,330,000 5,820,000 6,035,000

Other Receivable * * 1,119,000 954,000

Receivables 225,000 4,330,000 6,939,000 6,989,000

Work in Progress * 1,724,000 1,565,000 1,532,000

Finished Goods * 1,634,000 1,609,000 1,799,000

Inventories Adjustments & Allowances

* (709,000) (416,000) (390,000)

Inventories 2,659,000 2,649,000 2,758,000 2,941,000

Current Deferred Income Taxes

* 1,954,000 1,882,000 1,951,000

Other Current Assets * 7,226,000 5,288,000 5,444,000

Total Current Assets 17,363,000 19,868,000 20,219,000 20,483,000

Land & Improvements * 150,000 158,000 158,000

Building & Improvements * 1,934,000 2,042,000 2,045,000

Machinery, Furniture & Equipment

* 5,811,000 5,812,000 5,821,000

Total Fixed Assets * 7,895,000 8,012,000 8,024,000

Gross Fixed Assets (Plant, Prop. & Equip.)

2,442,000 7,895,000 8,012,000 8,024,000

Accumulated Depreciation & Depletion

* 5,390,000 5,437,000 5,447,000

Net Fixed Assets (Net PP&E)

2,442,000 2,505,000 2,575,000 2,577,000

Intangibles * 1,298,000 1,522,000 1,201,000

Cost in Excess 2,837,000 4,351,000 4,358,000 4,517,000

Non-Current Deferred Income Taxes

* 3,060,000 3,074,000 2,679,000

Other Non-Current Assets * 2,037,000 1,991,000 2,676,000

Total Non-Current Assets 5,279,000 13,251,000 13,520,000 13,650,000

Total Assets 27,887,000 33,119,000 33,739,000 34,133,000

 Balance Sheet - Liabilities, Stockholders Equity

Accounts Payable 3,188,000 3,834,000 3,806,000 3,660,000

Notes Payable 92,000 189,000 145,000 174,000

Accrued Liabilities * 6,229,000 6,116,000 6,445,000

Deferred Revenues * 1,621,000 1,507,000 1,497,000

Total Current Liabilities 10,620,000 11,873,000 11,574,000 11,776,000

Long Term Debt 4,092,000 3,988,000 3,971,000 4,074,000

Other Non-Current Liabilities

3,650,000 2,599,000 2,990,000 3,103,000

Total Non-Current Liabilities 7,742,000 6,587,000 6,961,000 7,177,000

Total Liabilities 11,022,000 18,460,000 18,535,000 18,953,000

Common Stock Equity 9,525,000 14,659,000 15,204,000 15,180,000

Common Par * 6,800,000 6,797,000 6,767,000

Additional Paid In Capital * 926,000 882,000 749,000

Retained Earnings * 7,649,000 8,159,000 8,269,000

Other Equity Adjustments * (716,000) (634,000) (605,000)

Total Capitalization 13,617,000 18,647,000 19,175,000 19,254,000

Total Equity 9,525,000 14,659,000 15,204,000 15,180,000

Total Liabilities & Stock Equity

20,547,000 33,119,000 33,739,000 34,133,000

Cash Flow * 358,000 843,000 826,000

Working Capital 14,083,000 7,995,000 8,645,000 8,707,000

Free Cash Flow * (866,000) (771,000) (708,000)

Invested Capital 13,617,000 18,647,000 19,175,000 19,254,000

* = Data not available

INTRODUCTION TO STUDY UNDERTAKEN

SOME HIGHLIGHTS OF NOKIA & MICROMAX, MOTOROLA STRATEGIES

IN MAR.09

Last September, Pitodia ponied up $56 for his first handset, a simple but sturdy

Nokia N86. Now he sits under a colorful beach umbrella, earning as much as $10

a day taking orders by phone for both himself and nearby vendors. "I tried many

phones, but Nokia is the most user-friendly," says Pitodia. "I am the only one in

the footpath with a mobile," he says proudly. More than any other handset maker,

Nokia Corp. has connected with the likes of Wang and Pitodia and their billions of

countrymen. In both China and India, the Finnish company is the top brand.

In China last year, it had nearly 31% of a crowded market, well ahead of the 10%

controlled by No. 2 Motorola Inc. Nokia's sales in Greater China (the mainland,

Hong Kong, and Taiwan) jumped by 28%, to $4.5 billion. The region today is the

company's biggest market, accounting for 11% of global revenues, compared

with 8% in the U.S. In India, Nokia has a 60% share, with sales last year of about

$1 billion. By 2010 the company expects India to be its No. 2 market.

Nokia isn't letting up: On Mar. 11 it opened its first Indian factory, a $150 million

facility near the southern city of Madras (Chennai) that will turn out as many as

20 million inexpensive phones annually both for the local market and for export.

And the company is doubling the size of its plant in the Chinese city of

Dongguan, near Hong Kong.

The two Asian giants are of fundamental importance for Nokia. The Finnish

company has played catch-up in the U.S., where Motorola has beaten it with hot-

selling models such as the ultra-thin RAZR. But the U.S. market is nearly

saturated.

The company that can control Asia's Big Two will have a lead in the global

handset wars. Today, China is the world's No. 1 cellular market, with some 400

million users and growth last year of 20%. While India is far smaller, with just 81

million users in February, handset sales are expected to double this year and

total users could hit 500 million by 2010.

"China and India are critical to Nokia's overall strategy and they can only get

more important," says Neil Mawston, associate director of consultancy Strategy

Analytics.

Caught off guard

Just a few years ago, Nokia faced big troubles in both countries. In India, growth

was sluggish. Nokia was an early mover -- the country's first cell-phone call was

made on one of its handsets -- but regulation hindered expansion.

In China, Nokia not only trailed Motorola, Micromax but was threatened by

ascendant domestic players such as TCL and Ningbo Bird, newcomers to the

business that had quickly gobbled up almost half of the market with their

inexpensive but well-designed handsets.

The Finns "were caught off guard by the rise of the domestic vendors," says Ted

Dean, managing director at BDA China Ltd., a Beijing consulting firm. "Suddenly,

Nokia was struggling."

Where the Money Is in Wireless

Nokia Realigns for the Future

The local upstarts flooded stores nationwide with armies of sales assistants

flogging their brands. "Our people would put up posters, and within 30 minutes

they would be torn down," recalls Colin Giles, manager of Nokia's China handset

business. Visiting a shop in the western city of Chengdu, Giles says, "You could

hardly move in the store because of the number of salespeople."

To fight back, Giles pushed through big changes. Nokia decentralized, going

from three Chinese sales offices in 2003 to 70 today. Instead of eight national

distributors, Nokia now has 50 provincial ones.

And since rivals were having great success with handsets designed for mainland

users, Nokia introduced its own China-specific models. For instance, since many

rural Chinese aren't familiar with the romanized transliteration system that most

cell phones use to input Chinese for text messages, Nokia developed two

phones with software that lets them write characters with a stylus.

And Nokia invested in new computer systems that provide detailed sales data.

"Tomorrow, I will be able to tell you what happened today in the top 4,500

outlets," Giles boasts. "In a week's time, I will be able to tell you about 30,000

outlets." The result: Nokia sold 27.5 million handsets in China last year, triple

what it sold in 2003. Now, the company is planning for the launch of 3G in China,

expected this year.

Since 2002, when India's cellular market took off, Nokia has drawn on its China

experience to consolidate its lead. In 2004 the company launched two India-

specific models, which included a flashlight, dust cover, and slip-free grip (handy

during India's scorching, sweaty summers).

Nokia introduced software in seven regional languages for non-Hindi speakers

and added ringtones of patriotic songs such as the nationalist hymn India Is the

Best. And the company's marketers pitched the phones through ads tailored to

India, with one early campaign showing burly truck drivers calling home on Nokia

handsets.

"We invested when the market was nothing," says Robert Andersson, who

oversees manufacturing, sales, and marketing at Nokia. "We have been able to

harvest the fruits of that commitment in the last four years."

Fierce rivals

Nokia has also reaped the fruits of rivals' missteps. Motorola, Micromax was

slower in reacting to the threat from the Chinese locals and has had a tougher

time bouncing back. "Motorola, Micromax didn't change its strategy for a long

time," says Chris Han, an analyst in Beijing at Norson Telecom Consulting.

The Chinese upstarts, meanwhile, have suffered sharp reversals due to

disappointing quality. In India, Micromax, Motorola didn't focus on the market

early enough, says Pankaj Mohindroo, president of the Indian Cellular Assn., a

trade group. Today its share there is just 5% or so.

Rivals say the time is right to eat into Nokia's lead. Samsung in the past focused

solely on the middle to high end of the market in India but began selling lower-

cost phones last year. And on Mar. 7 the Korean company opened a new factory

in Gurgaon, near Delhi.

Motorola and Micromax has revamped its structure in China, expanding its

sales force and strengthening its distribution network to cover 300 cities. By

February, Motorola had boosted its market share by several percentage points.

"We've done a lot of the blocking and tackling," says Michael Tatelman,

Motorola's China chief. And in India, Motorola is planning to market phones

costing as little as $35. Motorola Vice-President Allen Burnes calls India "pivotal"

and says the company will open its first factory there in 18 months. Of course,

that's 18 months behind Nokia, giving the Finns another opportunity to solidify

their lead in Asia's Big Two.

FACTORS AFFECTING CONSUMER CHOICE ABOUT MOBILE PHONES;

Mobile phone choice and use has also been found to be related to prior

consumption styles. According to a fresh survey of Finnish young people aged

16-20, it was found that mobile phone choice and especially usage is consistent

with respondents’ general consumption styles (India, 2006). The research

showed that addictive use was common among females and was related to

trendy and impulsive consumption styles. Instead, males were found to have

more technology enthusiasm and trend-consciousness. These attributes were

then linked to impulsive consumption. The study concluded that genders are

becoming more alike in mobile phone choice. Because individual differences in

consumption patterns are obviously identifiable, we hypothesize that background

variables especially have an influence on mobile phone choice.

H1:

Demographic factors have an influence on the evaluations of different attributes

related to mobile phone choice. Specifically, gender and social class will impact

on the evaluations of the attributes as men belonging to higher social class seem

to be more technology savvy. Consumers value in smart phones features that

enhance their personal time planning (e.g., Jones, 2006). These high-rated

features include calendar and e-mail services. It is interesting to note that

according to Jones the so-called killer services such as gaming, gambling

and music downloads are not seen that important in the diffusion of smart

phones. However, there is little support to this argument. However, while

synchronization of calendar and e-mail services to PCs has become easy and

fast, the importance of time planning in mobile phones becomes more and more

important. Thus, the following hypothesis is proposed:

H2:

Consumer’s value personal time planning properties in the choice of new

mobile phones. Another important aspect that has risen from different studies is

that consumers purchase new phones due to the fact that their existing one’s

capacity is not appropriate referring to the idea that new technology features

such as built-in cameras, better memory, radio, more developed messaging

services, and color displays are influencing consumer decisions to acquire new

models. Thus it can be expected that new features will influence the intention to

acquire new mobile phones, and therefore the following hypothesis was

developed:

H3:

New technical properties increase consumer willingness to acquire new phone

models. In addition, it seems that size and brand play to some extent an

important role in decision making. Haryana (2006) for instance surveyed Indian

mobile phone users and found that size of the phone had no impact on mobile

phone choice, but this finding might be due to the fact that all competing brands

have quite similar sized phones that are small enough. Researcher continues

that the trend will actually be not towards smaller phones but towards phones

with better capability and larger screens. While companies are advertising new

models and services that do not yet exist, it according to the paper signals to the

market that the company is at the cutting edge of technology and shows what will

be available in the very near future. The sales of new phones will then be driven

by replacement rather than adoption. Thus, it is hypothesized that size and brand

are related to mobile phone choice at some extent:

H4a:

When choosing between different mobile phone models, consumers value larger

screen size but the whole phone should be small enough and light to carry in

pocket.

H4b:

When choosing between different mobile phone models, consumers value

familiar brands. Price of the phone has been identified as a critical factor in the

choice of the mobile phone model, especially among younger people. By the use

of a survey (n = 200), they found that besides new technological advances price

was the most influential factor affecting the choice of a new mobile phone model.

In India consumers pay relatively low prices for their phones. In India, that kind of

linked transactions are regulated by law and currently illegal. In India, this kind of

regulation has resulted in a situation where people change their operator quite

often, and mostly on the basis of price. On this basis, it should be noted that

price of the phone plays an important role in India and thus, we hypothesize that:

H5:

When choosing between different mobile phone models, especially lower

income consumers have a price limit that restricts the choice to fewer models.

To summarize, consumer choice behavior can be studied through various

frameworks such as the problem-solving paradigm and through consumer choice

from product class through brand choice.

FACTORS AFFECTING CONSUMER’S CHANGE IN CHOICE AND

CONSUMER BEHAVIOUR

INTERPRETATION;

Although consumer motives underlying mobile phone acquisition are something

one could call general knowledge, relatively little is known on the buying decision

making process in relation to new mobile phone models packet with different

properties (i.e., smart phones) allowing users to communicate in fresh ways.

OBJECTIVES

OF

THE STUDY

OBJECTIVES OF THE STUDY

MAIN OBJECTIVES;

The primary objective of this project is to examine the importance of

different factors affecting consumer’s motives related to mobile

phone purchasing and to investigate the main reasons for Brand

switching.

The main objective of the study is to consider each and every

aspect of Micromax in terms of its offerings and Marketing activities

done by it to get the competitive Market share.

OTHER OBJECTIVES;

In India where Micromax is lacking to get better Market share in spite of

making vital efforts to compete Nokia and how can be the better image

developed in front of potential and existing customers.

Which factors strongly matters for customers while they think to purchase

any mobile handset?

Perceptions of the existing and potential customers towards different

brands of Mobile Handsets.

What tangible and intangible features should be added or improved in

Micromax offerings to provide better satisfaction in terms of value or

benefits.

LIMITATIONS

OF

THE STUDY

LIMITATIONS OF THE STUDY

While conducting a Marketing Research, the researcher faces a lot of

limitations. The present study is not an exception. A few errors have been

expected despite of best efforts to avoid them but this is expected that still the

study is much relevant, in spite of following;

As the study is based mainly on primary data and some instances of

secondary data is used in this study, the possibilities of personal bias

can’t be ruled out.

The researcher had an intention to reach a large sample size but due

to lack of much time and financial resources the intention could not be

accomplished upon the desired level.

Some respondents were reluctant to reveal the informations on the

pretext that they didn’t have sufficient time.

Despite all of the limitations efforts are being made so as best to

minimize the errors caused in the results.

RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY

RESEARCH DESIGN- EXPLORATORY R.D

Exploratory research design is used to find out the cause of less

market share captured by Micromax rather than Nokia. After problem

identification researcher to solve the above problem has tried to sort out ideas.

SAMPLING DESIGN- RANDOM SAMPLING

Random sampling has been used to select the samples to collect

informations, which could provide better solutions to solve the problem.

UNIVERSE OF STUDY- INDIA

India has been selected by the researcher to draw inferences on the

based of sample study.

SURVEY POPULATION- HARYANA

Haryana has been taken as total population of the survey, on the

bases of which inferences can be drawn about India.

SAMPLING UNIT- ALL USERS AND NON-USERS

Researcher also want to check out total brand image of Micromax

in India, which can be better understood by perceptions and buying behaviour of

users and non-users of Micromax.

SAMPLE SIZE- 200 RESPONDENTS

Researcher had the greater intention to survey out a large sample

but due to lack of much time and financial resources it couldn’t be possible and

only 200 respondents have been taken as sample size.

DATA COLLECTION- PRIMARY & SECONDARY DATA

Primary data- Primary data has been collected through the

structured questionnaire with the help of cooperation made by respondents,

which helped to draw solutions to the problems.

Secondary data- Secondary data has been collected through

Internet and broachers of company offerings.

ANALYSIS

AND

INTERPRETATION

TABLE-1

RESPONSES NO. OF RESPONDENTS %AGE

YES 176 88

NO 24 12

INETRPRETATION-

The above graph is interpretated as 88% respondents having Mobile Handsets

and 12% having not.

TABLE-2

REASONS NO. OF RESPONDENTS %AGE

COST EFFECTIVENESS 9 37.5

ALREADY HAVING LANDLINE 11 45.8

HEALTH CONSIOUSNESS 1 4.16

ANY OTHER 3 12.5

TOTAL 24 100

REASONS FOR NOT BUYING ANY HANDSET

19%

23%

2%6%

50%

COSTEFFECTIVENESS

ALREADY HAVINGLANDLINE

HEALTHCONSIOUSNESS

ANY OTHER

TOTAL

INTERPRETATION

This graph is showing the reasons that 19% respondents are not ready to buy

any Mobile handset for Cost effectiveness, 50% are satisfied with their landline

phones, 2% for Health consciousness and 6% for any other reason.

TABLE-3

BRAND NAME NO. OF RESPONDENTS %AGE

NOKIA 111 63

MOTOROLA 25 14

MICROMAX 7 4

ANY OTHER 33 19

TOTAL 176 100

INTERPRETATION

This graph is interpretated as 63% respondents having NOKIA Mobile handsets,

14% having MOTOROLA Mobile handsets, 4% having MICROMAX Mobile

handsets and 19% having any other Mobile handsets.

TABLE-4

TYPE OF HANDSET NO. OF RESPONDENTS %AGE

GSM 158 89.77

CDMA 18 10.23

INTERPRETATION

This graph is showing that 90% respondents having GSM handsets and 10%

having CDMA handsets. Most of respondents having CDMA handsets are using

TATA’s services.

TABLE-5

FACTORS RANKING SUM RANKS

COST 284 3

RESALE VALUE 321 5

DESIGN/LOOK 271 2

FUNCTIONS 254 1

WEB BROWSERS 344 6

BATTERY BACKUP 296 4

MEMORY CHIP CAPACITY 376 7

COUNTRY OF ORIGIN 382 8

FACTORS RATED BY CUSTOMERS WHICH INFLUENCED THEIR BUYING DECISIONS FOR

CURRENT HANDSETS

11%13%

11%10%14%

12%

14%

15%

COST RESALE VALUE

DESIGN/LOOK FUNCTIONS

WEB BROWSERS BATTERY BACKUP

MEMORY CHIP CAPACITY COUNTRY OF ORIGIN

INTERPRETATION

This graph is showing that factors having least percentage have least ranks

given by respondents, which influenced their buying decisions for their current

Mobile handsets.

TABLE-6

TYPE OF HANDSET NO. OF RESPONDENTS %AGE

FIRST HAND 104 59.09

SECOND HAND 72 40.91

TOTAL 176 100

SAMPLE SIZE WITH RESPECT TO TYPE OF HANDSETS

59%

41%FIRST HAND

SECOND HAND

INTERPRETATION

This graph is showing that 59% respondents having First Hand Mobile handsets

and 41% having Second Hand Mobile handsets.

TABLE-7

COST NO. OF RESPONDENTS %AGE

<5000 94 53.4

5000-10000 64 36.36

10000 & Above 18 10.22

TOTAL 176 100

COST OF THEIR MOBILE HANDSETS

54%36%

10%

<5000

5000-10000

10000 & Above

INTERPRETATION

The above graph is representing that 54% respondents having their Mobile

handsets with cost <5000, 36% having Handsets with cost between 5,000-10,000

and rest of 10% having Handsets with cost 10,000 & above.

TABLE-8

N0. NO. OF RESPONDENTS %AGE

ONE 152 86.36

TWO 24 13.63

>TWO 0 0

TOTAL 176 100

RESPONDENTS HAVING NO. OF MOBILE HANDSETS

86%

14% 0%

ONE

TWO

>TWO

INTERPRETATION

The above graph is showing that 86% respondents having single Mobile handset,

14 % having two Mobile handsets and none of the respondent having more than

two handsets.

TABLE-9

RESPONSE NO. OF RESPONDENTS %AGE

YES 134 76.13

NO 42 23.86

TOTAL 176 100

RESPONDENTS WHO HAVE PURCHASED MOBILE SETS WITH BILL OR NOT

76%

24%

YES

NO

INTERPRETATION

This graph is showing that 76% respondents have purchased their Mobile

handsets with bill and rest of 24% respondents have purchased their Mobile

handsets without bill.

TABLE-10

RESPONSE NO. OF RESPONDENTS %AGE

YES 74 42.04

NO 102 57.95

TOTAL 176 100

STATUS OF RESPONDENTS WHO CHANGE MOBILE HANSETS FREQUENTLY OR NOT

42%

58%

YES

NO

INTERPRETATION

The graph is showing that 58% respondents change Mobile handsets frequently

and 42% don’t change Mobile handsets frequently.

TABLE-11

RESPONSE NO. OF RESPONDENTS %AGE

NEW TECHNOLOGY 36 48.64

STATUS 22 29.72

BOREDOM 16 21.62

TOTAL 74 100

REASONS FOR CHANGING OF MOBILE HANDSETS BY THEM

48%

30%

22%

NEW TECHNOLOGY

STATUS

BOREDOM

INTERPRETATION

The above graph is showing who frequently change their mobile handsets, 48%

respondents change their Mobile handsets because of new technology, 30%

change because of improvement in their Status and 22% change because of

Boredom with their current Mobile handsets.

TABLE-12

SOURCES NO. OF RESPONDENTS %AGE

TV 42 23.86

PRINTED MATERIALS 16 13.06

FRIENDS 86 48.86

DEALERS 20 11.36

ANY OTHER 12 6.81

TOTAL 176 100

SOURCES OF INFORMATION FOR THEIR BUYING OF MOBILE HANSETS

24%

9%

49%

11% 7% TV

PRINTED MATERIALS

FRIENDS

DEALERS

ANY OTHER

INTERPRETATION

This graph represents that 24% respondents have got informations about their

current handset through TV, 9% through printed materials (like newspaper,

magazines etc.), 49% through Friends, 11% through Dealers and rest of 9%

through any other sources.

TABLE-13

PARAMETERS NO. OF RESPONDENTS %AGE

TO A GOOD EXTENT 24 13.63

MODERATE 51 28.97

NOT VERY 101 57.38

TOTAL 176 100

EXTENT WITH WHICH THE DECISIONS OF RESPONDENTS ARE INFLUENCED BY THE

CELEBRITIES

14%

29%57%

TO A GOOD EXTENT

MODERATE

NOT VERY

INTERPRETATION

This graph represents that 14% respondents are influenced by Celebrities to a

good extent, 29% are influenced Moderately and 14% are not much influenced

by Celebrities.

TABLE-14

FACTORS RANKING SUM RANKS

RESALE VALUE 122 5

FUNCTIONS 52 1

PRICE 88 3

BATTERY BACKUP 102 4

TECHNOLOGY 72 2

CUSTOMER SERVICES 144 6

ANY OTHER 152 7

INTERPRETATION

This graph is showing that factors having least percentage have least ranks

given by respondents, which influenced their buying decisions for their

MICROMAX Mobile handsets.

TABLE-15

FACTORS RANKING SUM RANKS

BATTERY BACKUP 70 1

RESALE VALUE 94 3

BRAND NAME 112 5

TECHNOLOGY 114 6

COUNTRY OF ORIGIN 98 4

CUSTOMER SERVICES 82 2

ALL ABOVE 136 7

INTERPRETATION

This graph is showing that factors having least percentage have least ranks

given by respondents, which resist them for purchasing of any MICROMAX

Mobile handsets.

CONCLUSION

AND

FINDINGS

CONCLUSION AND FINDINGS

After analyzing the data, we can conclude that the users of cell phones

have been increasing day by day. This is not because for the status

symbol but it has become a necessity.

Customers are now becoming quality sensitive but not much price

sensitive.

If we study that which company dominant in the handsets market, we find

that Nokia is the company that covers about 70% market captured. It has

been proved by the survey that Nokia is the leader of the handsets

market.

Most of the respondents are satisfied with their present handset. They

don’t want to go to another handset because they are fully satisfied with

the performance of their handsets.

Due to technological change and extra features respondents said that they

were attracted towards the new cell phones/handsets.

After analyzing the data or with the help of response given by the users,

we can say that there is lot of opportunities in the cellular phone industry.

SUGGESTIONS

SUGGESTIONS

As we know, there is lot of opportunities in this industry so the company

should concentrate on the requirements of the customers.

Company should more emphasize on the state-or-art. (New

Technology/Advanced Technology) and better quality solutions.

Company should provide more features based handset with less

increasing the price.

Company should open their more outlets, customer care & repair

centres because the people of the remote areas don’t know about the

schemes or the facilities regarding cell phones which have been providing

by the company.

Company should focus on humorous & Emotional appeals in its

advertisement because sentiments play important role in Indian market-

culture. For eg. - ADVERTISEMENT OF X500 handset.

ANNEXURE

Annexure

QUESTIONNAIRE: -

Dear Sir/Madam,

I am a Management student doing B.I.M. in I.B. College,Panipat. I am doing a

research project on a case study on Micormax Informatics Ltd.. I have prepared a

structured questionnaire, which has contained some Close ended questions.

Therefore I kindly request to you to fill this questionnaire as per required

information’s, which may enable me to do analysis and complete the project.

PERSONAL PROFILE

Name- ___________________________________________

Sex- Male Female

Age- 15-30 30 & above

Profession- ___________________________________________

State ______________ City ____________________

Q.1 Do you have a Mobile Handset?

Yes No

“If no then go to Q.2 otherwise Q.3.”

Q.2 Reasons for not Buying One?

Cost Effectiveness

Already having landline which is sufficient

Health Consciousness

Any Other

Q.3 Which Mobile Handset do you have?

Nokia Micromax

Motorola Any Other

Q.4 Which model of mobile handset do you have?

-------------------------------------------------------------

Q.5 Rank the factors influenced your buying decisions for your current

Handset?

Cost Functions

Resale Value Country of Origin

Design/Look Web Browsers

Battery Backup Memory Chip Capacity

Q.6 What is the cost of your present Handset?

<5000

5000-10000

10000 & above

Q.7 Is it your first Mobile Handset?

Yes No

Q.8 How many Mobile Handsets do you have?

One

Two

More than two

Q.9 Have you purchased the Mobile set with bill?

Yes No

Q.10 Do you Change your Mobile Handset frequently?

Yes No

“If yes then why?”

New Technology

Status

Boredom Feeling with current Mobile

Q.11 Which Brand name comes to your mind first?

Nokia Micromax

Motorola Any Other

Q.12 Where did you come to know about your present Mobile Handset?

TV Dealers

Printed Material Any Other

Friends

Q.13 To which extent your purchasing decision is influenced by celebrities?

To a good extent

Moderate

Not very

Q.14 Have you ever purchased/Used Micromax Handset?

Yes No

“If yes then go to Q.14 otherwise answer Q.15.

Q.15 Rank the factors influenced you to purchase Motorola Handset?

Resale Value Technology

Functions Customer Services

Price Any Other

Battery Backup

Q.16 What factor resists you to purchase Micromax Handset?

Battery Backup Country of Origin

Resale Value All of above

Brand Name Technology

Q.17 Give your suggestions about Micromax to get better image than Nokia:

__________________________________________________________________

__________________________________________________________________

BIBLIOGRAPHY

BIBILOGRAPHY

www.micromaxinfo.com

www.nokia.com

www.google.com

www.motorola.com

www.indiacellular.com