A PROJECT REPORT

ON

CONSUME R BEH AVIOUR WHILE PURCHASI NG MOB ILE S

CASE STUDY OF NOKIA AND MOT OROLA FACTOR

AFFEC TING CO NSUME R BEH AVIOUR WHILE
PURCHAS ING MOBIL E

Submitted to:Punjab
Technical University Jalandhar

In Partial fulfillment of the requirement for the award of the

Degree of

Master of Business Administration (2008-09)

Under the supervision of:- Presented by:-
Mr. H.S.Sidhu, Vivek Kumar,
Lect. In Mgt, MBA 2nd Sem,
DBIMCS. MB/08/83.
Desh Bh agat Ins titute o f Ma nagement & C omputer

Scie nce s,
Mandi Gob ingarh

DECLARATION

Hereby declare that the project report entitled STUDY OF CONSUMER

BEHAVIOUR TOWARDS NOKIA & MOTOROLA MOBILE
SERVICE PROVIDERS submitted for the degree of Master of Business
Administration, is my original work and the project report has not formed the ba
sis
for the award of any diploma, degree, associate ship, fellowship or similar othe
r
titles. It has not been submitted to any other university or institution for the
award
of any degree or diploma.
Place: VIVEK KUMAR,
Date: MBA 2nd SEM.,
 MB/08/83.

ACKNOWLEDGEMENT
Survey is an excellent tool for learning and exploration. No classroom routine c
an
substitute which is possible while working in real situations. Application of
theoretical knowledge to practical situations is the bonanzas of this survey.
Without a proper combination of inspection and perspiration, it s not easy to
achieve anything. There is always a sense of gratitude, which we express to othe
rs
for the help and the needy services they render during the different phases of o
ur
lives. I too would like to do it as I really wish to express my gratitude toward
all
those who have been helpful to me directly or indirectly during the development
of
this project.
First of all I wish to express my profound gratitude and sincere thanks to my
esteemed learned Director PROF.SHALINI GUPTA, Director DBIMCS, Mandi
Gobindgarh, who allowed me to conduct the survey.
I would like to thank my professor Mr. H.S SHIDU who was always there to help
and guide me when I needed help. His perceptive criticism kept me working to
make this project more full proof. I am thankful to him for his encouraging and
valuable support. Working under him was an extremely knowledgeable and
enriching experience for me. I am very thankful to him for all the value additio
n
and enhancement done to me.
No words can adequately express my overriding debt of gratitude to my parents
whose support helps me in all the way. Above all I shall thank my friends who
constantly encouraged and blessed me so as to enable me to do this work
successfully.
VIVEK KUMAR,
2ND
MBA SEM,
MB/08/83.
CERTIFICATE

This is to certify that Mr. VIVEK KUMAR of MBA second semester of DBIMCS
Mandi Gobindgarh has completed his project report on the topic of STUDY OF
CONSUMER BEHAVIOUR TOWARDS NOKIA & MOTOROLA MOBILE ,S
under the supervision of Mr. HS SHIDU faculty member of DBIMCS MANDI
GOVINDGARH
To best of my knowledge the report is original and has not been copied or
submitted anywhere else. It is an independent work done by him.
Mr. H.S.SIDHU,
DBIMCS,
Mandi Gobindgarh.
CONTENT

A. Declaration
B. Acknowledgement
C. Certificate of completion
D. Contents
CHAPTERS TITLE
CHAPTERS 1 INTRODUCTION
CHAPTERS 2 REVIEW OF LITRATURE
CHAPTERS 3 RESEARCH METHODOLOGY
CHAPTERS 4 DATA ANALYSIS &
INTERPRETATION
CHAPTERS 5 CONCLUSION & SUGGETIONS
BIBLIOGRAPHY

APPENDIX

CHAPTER I
INTRODUCTION
1.1 Definition of Cellular/Mobile phone:The
Cellular telephone (commonly "mobile phone" or "cell phone" or "hand
phone") is a long-range, portable electronic device used for mobile
communication. In addition to the standard voice function of a telephone, curren
t
mobile phones can support many additional services such as SMS for text
messaging, email, packet switching for access to the Internet, and MMS for
sending and receiving photos and video. Most current mobile phones connect to a
cellular network of base stations (cell sites), which is in turn interconnected
to the
public switched telephone network (PSTN) (the exception is satellite
phones.Cellular telephone is also define as a type of short-wave analog or digit
al
telecommunication in which a subscriber has a wireless connection from a mobile
telephone to a relatively nearby transmitter. The transmitter's span of coverage
is
called a cell. Generally, cellular telephone service is available in urban areas
and
along major highways. As the cellular telephone user moves from one cell or area
of coverage to another, the telephone is effectively passed on to the local cell
transmitter. A cellular telephone is not to be confused with a cordless telephon
e
(which is simply a phone with a very short wireless connection to a local phone
outlet). A newer service similar to cellular is personal communications services
(PCS).
1.2 Meaning of Consumer Behaviour:Consumer
behaviour is the study of how people buy, what they buy, when they
buy and why they buy. It blends elements
from psychology, sociology, sociopsychology, anthropology and economics. It
attempts to understand the buyer decision making process, both individually and
in
groups. It studies characteristics of individual consumers such
as demographics, psychographics, and behavioural variables in an attempt to
understand people's wants. It also tries to assess influences on the consumer fr
om
groups such as family, friends, reference groups, and society in general.
1.3 Factors affecting Consumer Behaviour:Black
box model
ENVIRONMENTAL FACTORS BUYER'S BLACK BOX
BUYER'S
RESPONSEMarketing
Stimuli
Environmental
Stimuli
Buyer
Characteristics
Decision
Process
Product
Price
Place
Promotion
Economic
Technical
Political
Cultural
Attitudes
Motivation
Perceptions
Personality
Lifestyle
Problem
recognition
Information
search
Alternative
evaluation
Purchase
decision
Post-purchase
behavior
Product choice
Brand choice
Dealer choice
Purchase timing
Purchase amount
The black box model shows the interaction of stimuli, consumer characteristics,
decision process and consumer responses. It can be distinguished between
interpersonal stimuli (between people) or intrapersonal stimuli (within people).
The
black box model is related to the black box theory of behaviorism, where the foc
us
is not set on the processes inside a consumer, but the relation between the stim
uli
and the response of the consumer. The marketing stimuli are planned and
processed by the companies, whereas the environmental stimulus are given by
social factors, based on the economical, political and cultural circumstances of
a
society. The buyer s black box contains the buyer characteristics and the decision
process, which determines the buyer s response.
The black box model considers the buyers response as a result of a conscious,
rational decision process, in which it is assumed that the buyer has recognized
the
problem. However, in reality many decisions are not made in awareness of a
determined problem by the consumer.
1.4 Stages of the Consumer Buying Process:Six
Stages to the Consumer Buying Decision Process (For complex decisions).
Actual purchasing is only one stage of the process. Not all decision processes l
ead
to a purchase. All consumer decisions do not always include all 6 stages,
determined by the degree of complexity...discussed next.
The 6 stages are:
1.
Problem Recognition (awareness of need)--difference between the
desired state and the actual condition. Deficit in assortment of products.
Hunger--Food. Hunger stimulates your need to eat.
Can be stimulated by the marketer through product information--did not
know you were deficient? I.E., see a commercial for a new pair of shoes,
stimulates your recognition that you need a new pair of shoes.
2.
Information search
o
Internal search, memory.
o
External search if you need more information. Friends and relatives
(word of mouth). Marketer dominated sources; comparison shopping;
public sources etc.
A successful information search leaves a buyer with possible alternatives,
the evoked set.
Hungry, want to go out and eat, evoked set is
o
Chinese food
o
Indian food
o
burger king
o
Klondike kates etc
o
3.
Evaluation of Alternatives--need to establish criteria for evaluation,
features the buyer wants or does not want. Rank/weight alternatives or
resume search. May decide that you want to eat something spicy, Indian gets
highest rank etc.
If not satisfied with your choice then return to the search phase. Can you
think of another restaurant? Look in the yellow pages etc. Information from
different sources may be treated differently. Marketers try to influence by
"framing" alternatives.
4.
Purchase decision--Choose buying alternative, includes product,
package, store, method of purchase etc
5.
Purchase--May differ from decision, time lapse between 4 & 5, product
availability.
6.
Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction.
Cognitive Dissonance, have you made the right decision. This can be
reduced by warranties, after sales communication etc.
After eating an Indian meal, may think that really you wanted a Chinese
meal instead.
1.5
NOKIA:

Contact Information
Address: Keilalahdentie 2-4
Fl-02150 Espoo, Finland
Phone: +358-7-1800-8000
Fax: +358-7-1803-8503
Financial Highlights
Fiscal Year End: December
Revenue (2008): 71485.90 M
Revenue Growth (1 yr): (-4.90%)
Employees (2007): 100,534
Employee Growth (1 yr): 46.80%
Key People
Chairman: Jorma Ollila
President, CEO, and Director: Olli-Pekka
Kallasvuo
EVP and CFO: Richard A. (Rick) Simonson
Industry Information
Sector: Technology
Industry: Communication Equipment
Top Competitors
Telefonaktiebolaget LM Ericsson (eric)
Motorola, Inc. (mot)
Samsung Electronics Co., Ltd.
1.5(i) History of NOKIA:
Established in 1865 as a wood-pulp mill by Knut Fredrik Idestam on the
banks of Nokianvirta River in Finland.
Finnish Rubber Works acquired Nokia Wood Mills, Telephone and
Telegraph Cables.
Nokia Corporation created -1967 -paper products-car tires-personal
computers-cables.
Nokia began developing the digital switch (Nokia DX 200) which became a
success.
1991 Nokia - agreements to supply GSM networks - nine European
countries.
August 1997 Nokia - GSM systems to 59 operators in 31 countries.
1.5(ii) The Vision of Nokia:

Our vision is a world where everyone can be connected. Our vision is to ensure
that 5 billion people are always connected at any given point and to achieve 100
fold more network traffic.
1.5(iii) Nokia Today:

Head office in Finland; R&D, production, sales, marketing activities around

the world.
World s #1 manufacturer of mobile devices, with 38% share in 2007 112 262
employees.
Sales in more than 150 countries.
1.5(iv) NOKIA FIRST IN TELECOMMUNICATIONS:
The world s first international cellular mobile telephone network NMT was opened
in Scandinavia in 1981 with Nokia introducing the first car phones for the netwo
rk.
The world s first NMT hand portable, the Nokia cityman was launched in 1987.
Year 2003:
Nokia announce that the world s first CDMA 2000® 1xEV-DV high speed packet
data phone call was completed at Nokia s CDMA Product Creation Centre in San
Diego. The call, achieving a peak data rate of 3.09 Mbps, was made between a tes
t
set based on a commercially available Nokia 2285 handset upgraded with a Nokia
1xEV-DV chipset and a Racal Instruments, Wireless Solutions Group, 1xEV-DV
base station emulator. This chipset is the world s first to support complete 1xEVD
V
Release C functionality.
Year 2004:
Using Nokia s CDMA Dual -Stack handset, Nokia demonstrated the Industry s first
Mobile IPv6 call at the 3G World Congress Convention and Exhibition in
November. The demonstration highlighted real-time streaming video with seamless
hand off between two CDMA access networks using Mobile IPv6.
Nokia announced the Nokia NFC (Near Field Communication) shell, the latest step
in the development of innovative products for mobile communications, in
November. With the Nokia NFC shell on their phone, consumers will be able to
easily access a variety of services and conveniently exchange information with a
sample touch gesture utilizing NFC technology.
In October Nokia and Telia Sonera Finland successfully conducted the world s first
EDGE-WCDMA 3G packet data handover in a commercial network. Achieving a
first for the Asia-Pacific region, Nokia, Media Corp Technologies, M1 and the
Media Development Authority of Singapore jointly showcased a live end-to-end
mobile phone TV broadcast over a DVB-H (Digital Video Broadcast Handheld)
network at the Nokia Connection event in Singapore.
Nokia and Texas Instruments Incorporated introduced the first pre-integrated and
validated series 60 Reference Implementation based on TI s OMAP (TM)
processor -powered reference design in February. The reference implementation is
available immediately to series 60 licenses.
Year 2005:
The Nokia 6630 imaging smart phone has as the first device in the world achieved
global GCF 3G WDCMA certification. The certification was achieved based on the
requirements defined by Global Certification Forum (GCF), an independent
industry body which provides network compliancy requirements and testing for
GSM / WCDMA mobile devices.
SBS Finland s Kiss FM became the first radio station in the world to begin Visual
Radio Broadcasts. The unique new concept developed by Nokia offers the listeners
the possibility to give feedback and to participate in programs easier than ever
before. Nokia introduced a new product for secure mobile contactless payments
and ticketing. The world s first Near Field Communications (NFC) product for
payment and ticketing will be an enhanced version of the already announced Nokia
NFC shell for Nokia 3220 phone
SBS Finland s Kiss FM became the first radio station in the world to begin Visual
Radio Broadcasts. The unique new concept developed by Nokia offers the listeners
the possibility to give feedback and to participate in programs easier than ever
before. Nokia introduced a new product for secure mobile contactless payments
and ticketing. The world s first Near Field Communications (NFC) product for
payment and ticketing will be an enhanced version of the already announced Nokia
NFC shell for Nokia 3220 phone

A type of wireless communication that is most familiar to mobile phones users. I

t s
called Cellular because the system uses many base stations to divide a service
area into multiple Cells . Cellular cells are transferred from base station to base
station as a user travels from cell to cell.
The basic concept of cellular phones began in 1947, when researchers looked at
crude mobile (Car) phones and realized that by using small cells (range of servi
ce
area) with frequency reuse they could increase the traffic capacity of mobile
phones substantially. However at that time, the technology to do so was
nonexistent.
Anything to do with broadcasting and sending a radio or television message out
over the airwaves comes under Federal Communications Commission (FCC)
regulation. A cell phone is a type of two-way radio. In 1947, AT & T proposed th
at
the FCC allocate a large number of radio spectrum frequencies so that widespread
mobile telephone service would become feasible and AT & T would have an
incentive to research the new technology. We can partially blame the FCC for the
gap between the initial concept of Cellular Service and its availability to the
public.
The FCC decided to limit the amount of frequencies available in 1947, the limits
made only twenty-three phones conversations possible simultaneously in the same
service area not a market incentive for research. The FCC reconsidered its
position in 1968, stating if the technology to build a better mobile service work
s,
we will increase the frequencies allocation, freeing the airwaves for more mobil
e
phones. AT & T and BELL labs proposed a cellular system to the FCC of many
small, low-powered, broadcast towers, each covering a Cell a few miles in radius
and collectively covering a larger area. Each tower would use only a few of the
total frequencies allocated to the system. As the phones traveled across the are
a,
cells would be passed from tower to tower.
WIRELESS STANDARDS ANALOG SERVICE:

A method of modulating radio signals so that they can carry information such as
voice or data. Analog cellular phones work like a FM radio. The receiver and
transmitter are tuned to the same frequency, and the voice transmitted is varied
within a small band to create a pattern that the receiver reconstructs, amplifie
s and
sends to a speaker. The drawback of analog is the limitation on the number of
channels that can be used.
sends to a speaker. The drawback of analog is the limitation on the number of
channels that can be used.

A method of encoding information using a binary code of 0 s and 1 s. Most newer

wireless phones and networks use digital technology. In digital, the analog voic
e
signal is converted into binary code and transmitted as a series of on and off
transmissions. One of digitals drawbacks is that there are three digital wireles
s
technologies, CDMA, TDMA, and GSM. Phones that work with one technology
may not work on another.
TDMA IS-136 (TIME DIVISION MULTIPLE ACCESS):

It is an update to TDMA IS-54, also called Digital AMPS or D-AMPS. Released in

1994, TDMA IS-136 uses the frequency bands available to the wireless network
and divides them into time slots with each phone user having access to one time
slot at regular intervals. TDMA IS-136 exists in North America at both the 800
MHz and 1900 MHz bands. Major US carriers using TDMA and AT & T wireless
services, BELL SOUTH and SOUTH WESTERN BELL.
CDMA IS-95 (CODE DIVISION MULTIPLE ACCESS):

It is based on a form of spread spectrum technology that separates voice signals

by
assigning them digital codes within the same broad spectrum. CDMA type
technology was used in military communication systems because it was resistant t
o
interface from enemy signals.
The Qualcomm Corporation began developing a CDMA wireless system in the late
1980 s that was accepted as a s tandard in 1993 and went into a operation by 1996.
CDMA also exists at both the 800 MHz and 1900 MHz bands. The major US
carriers using CDMA are AIR TOUCH, BELL ATLANTIC / NYNEX, GTE,
PRIMECO and SPRINT PCS.
GSM (GLOBAL SYSTEM FOR MOBILE COMMUNICATIONS):

It is based on an improved version of TDMA technology. In 1982, the conference

of European posts and Telecommunications (CEPT) began the process of creating
a digital cellular standard that would allow users to roam from country to count
ry
in Europe. By 1987, the GSM standard was created based on a hybrid of FDMA
(Analog) and TDMA (Digital) technologies. GSM engineers decided to use wider
200 KHz channels instead of the 30 KHz channels that TDMA used, and instead of
having only 3 slots like TDMA, SM channels had 8 slots. This allowed for fast bi
t
rates and more natural-sounding voice-compression algorithms. GSM is currently
the only one of the three technologies that provides data services such as email
,
fax, internet browsing, and intranet / LAN wireless access, and it s also the only
service that permits users to place a call from either North America or Europe.
The
GSM standard was accepted in the US in 1995. GSM-1900 cellular systems have
been operating in the US since 1996, with the first network being in the
Washington D.C. area. Major carriers of GSM 1900 include omni point, Pacific
Bell, Bell South, Sprint Spectrum, Microcell, Western Wireless, Powertel and
Aerial.
DIFFERENT TECHNOLOGY:

(a.)BLUETOOTH TECHNOLOGY:

It is a technology for wireless communication between devices. It s based on a

lowcost short-range radio link. Every decorator knows that cables and wires are
unsightly and confusing. Bluetooth connections allow wireless communication
between devices within a range of about 30 feet (10 metres). Unlike infrared, yo
u
don t have to point devices directly at each other, or even have both devices in t
he
same room. Blue tooth can initiate connections automatically with paired devices
,
so you don t even have to think about it. And no, you don t have to pay for a
Bluetooth connection, no matter how much data you transfer.
When two devices share information, there are a few things that have to be worke
d
out: firstly, how they will physically connect through how many wires? Or none a
t
all? And then what are the agreed commands that will make sense to both
devices? Bluetooth is an industry standard that solves both of these issues chea
ply,
and using very little battery power.
(b.)GPRS TECHNOLOGY:

General Packet Radio Service is a technology that allows your phone to transfer
data at moderate speeds. GPRS lets you send data faster than over a GSM data
network, and it s also a lot more efficient. But data sounds pretty vague.
To use GPRS, you need a phone that supports it, a subscription from your network
operator that supports GPRS, and the proper settings. GPRS does what it says: it
sends packets of data over a radio wave (on GSM network). Packet switching
works like a jigsaw puzzle: your data is split into many pieces, then sent over
the
network and reassembled at the other end. GPRS is just one of the ways to
transport these jigsaw puzzles.
(c.)EDGE TECHNOLOGY:

Enhanced Data rates for Global Evolution (EDGE) enables data connections three
times faster than GPRS within the same multi slot class. Like GPRS, you re billed
for the data you transfer, not for the time you spend connected.
EDGE opens up a lot of possibilities for connecting to data networks on your
mobile phone, making it far less frustrating to stream video and download larger
files. To use EDGE, you need a phone that supports it, a subscription from your
network operator that supports EDGE, and the proper settings. EDGE is based on
General Packet Radio Service, which sends packets of data over a radio wave.
Packet Switching works like a jigsaw puzzle: your data is split into many pieces
,
then sent over the network and reassembled at the other end. GPRS is just one of
the ways to transport these jigsaw puzzles.
(d.)JAVA TECHNOLOGY:

JAVA is both a programming language and a software platform, and its used to
create and run applications for Nokia phones. With JAVA applications, your phone
can do more of the things you d like it to do. Downloading and installing
applications is a relatively simple process (as is uninstalling them), and there
is a
wide range of applications available.
JAVA was originally developed by Sun Microsystems. Enhancements and
standardization of the JAVA platforms are conducted by the JAVA Community
Process (JCP), in which Nokia takes on active role together with sun and other
members. There are two parts to JAVA technology: a programming language, and
an environment in which those commands can be executed. You need an
environment where the language means something, so JAVA brings its own
environment along. JAVA enabled Nokia phones most Nokia models on the
market now-contain a JAVA Virtual Machine, which is ready to run applications
written in JAVA. This makes using new applications easy, because you usually
don t have to configure, load, or install anything else.
(e.)MMS TECHNOLOGY:

MMS stands for Multimedia Messaging Service, a technology that allows you to
create, send and receive text messages that also include an image, audio, and /
or
video clips. MMS messages are sent from one mobile phone to another, or to an
email address. Multimedia Messaging enriches your mobile messages in much the
same way as inserting photos or changing fonts and colours does in email it s
both useful and expressive.
MMS messages are sometimes considered equivalent to so called Picture
Messaging , popularized by the recent imaging phones boom, but other uses of the
technology do exist.
You don t need to have an imaging phone to send and receive MMS messages, just
an MMS-enabled mobile phone, an operator management that supports the service,
and the correct settings on your handset. Of course, an imaging phone gives you
the option of creating and passing on your original images.
An MMS message is a multimedia presentation in a single entry, unlike an email
with attachments, making it easier to create and simpler to deliver than an emai
l
with attachments. MMS is a scalable technology, which means it s suitable for
most types of mobile phones. And MMS is compatible with fixed email addresses,
so it is possible to criss-cross back and forth over the mobile-PC border.
(f.)MOBILE BROWSING TECHNOLOGY:
A mobile browser is simply any program that lets you access and read content on
a
network from a mobile device usually the Internet or some other mobile network
service. As more phones on the market boast high network connection speeds and
colour screens, mobile browsing is becoming more common (and a lot better
looking).
Many new Nokia models come with an integrated XHTML or even HTML mobile
browser, giving you the chance to surf without being chained to a desktop
computer. Today s mobile browsers give you richer colours and faster browsing
than the original mobile browsers, and most importantly, a way to access the web
at your finger tips. Considering the no-frills WAP sites that started off mobile
browsing, the technology has come a long way.
In order to browse with a mobile phone, you need to have a phone with a browser
(either one that s built in or downloaded), a subscription from your network
operator to a data service (GSM data, GPRS, EDGE, WCDMA, etc) and the
correct settings on your phone. Then its up to other companies and individuals t
o
build the sites and services you can browse.
1.5(v) FUTURE OF NOKIA:

By the year 2012 a quarter of all content will be user-generated and passed
between friends, rather than being created and distributed by today's media bran
ds,
according to interviews with "trend-setting consumers".
The Future Laboratory spoke to 9000 consumers on behalf of Nokia, all of whom
are described as "active users of technology" and thus can be trusted to tell us
what
the world's going to look like.
As Nokia's Vice President, Multimedia, Mark Selby describes it thus:
"We think it will work something like this; someone shares video footage they sh
ot
on their mobile device from a night out with a friend, that friend takes that fo
otage
and adds an MP3 file -the soundtrack of the evening -then passes it to another
friend. That friend edits the footage by adding some photographs and passes it o
n
to another friend and so on."
All of which will be done on their mobile phone, obviously.
Driving users to prefer content mashed up by friends, as opposed to professional
ly-
produced, are four trends which The Future Laboratory and Nokia have identified
through their research.
Immersive Living reflects the way people are always on-line, while Geek Culture
is a reflection of how everyone wants high-tech toys these days -at least, all t
he
people interviewed for this study. G Tech is technology for girls -apparently no
t
just technology for boys painted pink -and Localism sees users taking pride in
content produced by their locality.
All in all it's remarkable how closely this research matches Nokia's ideal visio
n of
the future. Consumers using mobile phones to create and mash up content, taking
power away from the media brands and placing it in the hands of those running th
e
portals and controlling the mobile user experience.
Now if they can just get rid of those power-hungry network operators then Nokia'
s
plan for world domination will be complete, at least until the pills wear off.
1.5(vi) Nokia mobiles with price:-

Rs: 52000 Rs: 51100 Rs: 34500 Rs: 27810

NokiaNokia-
8800Nokia-
E90
8800-Arte Sapphire-
Rs: 26106 Rs: 23500 Rs: 20850

Nokia-N93i
Rs: 16630

Nokia-8600LUNA

Rs: 15577

Nokia-N95
Rs: 15200
Rs: 34442

Nokia-8800
Rs: 19500

NokiaN82

Rs: 14300

NokiaN95-
8GB

Rs: 17350

Nokia7900Prism

Rs: 13440

Nokia9300i
Rs: 13400

Nokia-3250
Nokia-N818GB

Rs: 13249

Nokia-6500Slide

Nokia-E61
Rs: 13120

Nokia-N76
Nokia-N812GB

Rs: 13120
Nokia-6110

Nokia-N80
Rs: 13000

Nokia-N91
1.5(vi) Nokia Increases Profit and Market Share:

BERLIN Nokia said Thursday that it had extended its dominant share of the
global mobile phone market to a record 40 percent in the fourth quarter as profi
t
surged 44 percent on rising sales to China, Africa and the Middle East.
The company, based in Espoo, Finland, said profit rose to 1.84 billion euros, or
$2.7
billion, from 1.27 billion euros a year earlier as sales climbed 34 percent to 1
5.7
billion euros from 11.7 billion euros.
Nokia said it sold 77.8 million cellphones in Asia, the Middle East and Africa i
n the
quarter, nearly double the 42.3 million sold in Europe and North America. In Chi
na,
Nokia s fastest-growing, high-volume market, the company sold 20.2 million
phones, an increase of 38.4 percent over a year earlier.
Nokia has pushed its global market share to 40.2 percent from 38.9 percent in th
e
third quarter, according to Strategy Analytics, a research firm in Milton Keynes
,
England. Nokia s market share exceeded the combined shares of its next three
biggest competitors Samsung, Motorola and Sony Ericsson.
Psychologically, this is an impressive milestone to reach in a mostly open and fr
ee
global market, said Neil Mawston, director of wireless research at Strategy
Analytics. They have become more dominant over the past decade and this only
strengthens their position.
Olli-Pekka Kallasvuo, the Nokia chief executive, said the company was well
positioned to raise its market share further this year following its push to dev
elop a
wireless services business around Navteq, an American maker of digital maps,
which Nokia is buying for $8.1 billion, as well as its wireless networks joint v
enture
with Siemens, which broke even after losing money in its first six months of
operation.
It was a year of important strategic initiatives by Nokia, Mr. Kallasvuo said in a
statement. Facing a market that remains intensely competitive, we are continuing
to
improve our leading device portfolio as well as execution at Nokia Siemens
Networks.
1.6
MOTOROLA :-
1.6(i) Company Profile:-
Motorola Inc.
Type Public (NYSE: MOT)
Founded 1928
Headquarters Schaumburg, Illinois, United States
Key people
[1] Greg Brown, President and Co-CEO
Sanjay Jha, Co-CEO
Industry Telecommunications
Products
Embedded systems
Microprocessors
Mobile phones
Two-Way radios
Networking Systems
Market cap $15 billion USD (2008)
Revenue .$36.622 billion USD (2007)
Operating
income
. $553.0 million USD (2007)
Net income . $49.0 million USD (2007)
Employees 66,000 (2008)
Website www.motorola.com
1.6(ii) MOTOROLA Electronics:

A wholly owned subsidiary of MOTOROLA Electronics was established in

January, 2003 after clearance from the Foreign Investment Promotion Board
(FIPB). The trend of beating industry norms started with the fastest ever-
nationwide launch by MOTOROLA in a period of 4 and 5 months with the
commencement of operations in May 2003.MOTOROLA set up a state-of-the art
manufacturing facility at Greater Noida, near Delhi, in 2004, with an investment
of
Rs 500 Crores. During the year 2001, MOTOROLA also commenced the home
production for its eco-friendly Refrigerators and established its assembly line
for
its PC Monitors at its Greater Noida manufacturing unit.
. The Greater Noida manufacturing unit line has been designed with the latest
technologies at par with international standards at Korea and is one of the most
Eco-friendly units amongst all MOTOROLA manufacturing plants in the world.
. The year 2001 witnessed MOTOROLA becoming the fastest growing
company in the consumer electronics, home appliances and computer peripherals
industry. The company had till the month of October 2001 achieved a cumulative
turnover of Rs 5000 Crores in India since its inception in 2003 , making it the
fastest ever Rs 5000 Crores clocked by any
company in the Indian consumer electronics and home appliances industry. Having
achieved this milestone, MOTOROLA achieved another benchmark with the first
ever sales of One Lakh ACs (Windows and Splits) in a calendar year.
MOTOROLA is poised to surpass its turnover target of Rs. 2700 Crores this year
and clock a turnover of Rs. 3000 Crores.
. This year, MOTOROLA has emerged as the leader in Colour Televisions,
Semi Automatic Washing Machines, Air Conditioners, Frost-Free Refrigerators and
Microwaves Ovens. In Colour Televisions having set the sales target of one milli
on
units of Color Televisions for 2002, MOTOROLA has already achieved the one
million mark in the month ahead of its target.
. MOTOROLA Electronics India is the fastest growing company in the
consumer electronics, home appliances and computer peripherals industry today.
. MOTOROLA Electronics is continually providing superior technology
products & value for money to over 50 lac households in India.
. Mr. K.R. Kim , Managing Director, MOTOROLA Electronics said, "I am
extremely pleased with our performance in 2006 as we have been able to
sustain growth during a year of slowdown in the consumer electronics and
home appliances industry." He added, "Our growth record has led us to expand
manufacturing presence in India. We have accordingly reinforced our sales and
distribution network through the concept of area offices to reach out more India
n
consumers in semi urban and rural India.
1.6(iii) History of MOTOROLA:

The foundation for Motorola was laid by an resident of Illinois, state in

north-central United States. Paul V. Galvin& Edward Stewart starting with a
storage battery in 1921.
Galvin, then began working on a new car radio receiver in 1929 &
introduced the world's first commercially feasiblecar radio. The product was
named Motorola, a combination of the words of "motor" and "victrola."
Later, the company created a hand-held, two-way radio, known as the
"handie-talkie," for the U.S. military
They made the equipment that carried the first words from the moon in
1969.
They led the communications revolution with the first commercial handheld
cellular phone in 1983 and the first all-digital high-definition television
(HDTV) in 1990.
Motorola invented the Six Sigma quality improvement process in 1986. Six
Sigma provided a common world wide language for measuring quality and
became a global standard
1.6(iv) About MOTOROLA:

Motorola is known around the world for innovation in communications. The

company develops technologies, products and services that make mobile
experiences possible. Our portfolio includes communications infrastructure,
enterprise mobility solutions, digital set-tops, cable modems, mobile devices an
d
Bluetooth accessories. Motorola is committed to delivering next generation
communication solutions to people, businesses and governments. A Fortune 100
company with global presence and impact, Motorola had sales of US $36.6 billion
in 2007. For more information about our company, our people and our innovations,
please visit http://www.motorola.com.
1.6(v) MOBILE DEVICES:
. Winner: CNET People s Voice Award, ROKR E8, Consumer Electronics Show
(CES), 2008
. Winner: CNET Best of CES, Cell phones and Smartphones category, ROKR
E8, Consumer Electronics Show, 2008
. Winner: Top 20 Products of CES Editor's Choice Award, ROKR E8,
Popular Mechanics magazine, 2008
.
Winner: Best of CES 2008: Best Cell Phone, ROKR E8, LAPTOP magazine,
2008
. Winner: 2008 CES Best of Innovations Design and Engineering Award,
headphones category, MOTOROKR S9, Consumer Electronics Show, 2008
. Winner: Best of CES, Bluetooth.
transfer category, Motorola T815,
Smartphone-based navigation system featuring MOTONAV, Bluetooth Special
Interest Group (SIG), 2008
.
Best Ultra Low Cost Handset, 3GSM Global Mobile Awards, 2006
. Winners: MOTORIZR and MOTOKRZR K1m, International CES Design and
EngineeringAwards, 2006
.
Winners: Motorola/Burton Audex jacket and Motorola/Oakley RAZRWIRE,
International CES Design and Engineering Awards, 2006
. Best of What's New: MOTO Q, Popular Science Magazine, 2006
. Unique Product Winner: Motorola Audex Protective Gear, Bluetooth SIG Best
of CES Awards,2006
. First Place Hardware/Mobile Phone: SLVR L7, CTIA Wireless E-tech Awards,
2006
. Editor's Choice, Mobile Phone: RAZR V3 Black/Pink, CNET, 2005
. Best in Class: RAZR V3 Silver, PC News Weekly, 2005
. Mobile Innovations Award: RAZR v3 Silver, Mobile News Awards, 2005
1.6(vi) Motorola s Changing Marketing Strategy:

Motorola is changing its marketing practices for its next set of handsets, accor
ding
to this Ad Age interview with Casey Keller, chief marketing officer of the hands
et
manufacturer. Motorola will keep its Hello Moto tagline as well as promote sub-
brands like the Rokr and Razr. Perhaps the biggest change is behind the scenes,
where Keller is unraveling the marketing model established by his predecessor.
That model involved having a lot of agencies around the world Keller has
 returned to a more traditional agency relationship with more focus and more
longer-term partners two to three agencies on a worldwide base who understand
us .
Considering the Motorola management team just survived a shareholder revolt I m
expecting all of them to be doing everything they can to pick up the sales of th
e
handset giant. I quite liked the ad for the original Rokr, it s a pity the music s
ervice
was crippled on it.
Job Cuts: Analysts claim Motorola is also planning more job cuts, reports RCR
News. Motorola CFO Thomas Meredith indicated the company would announce
additional downsizing and restructuring , most likely on May 30 or 31, ...
Motorola would target cost savings at least as large as the $400 million the
company cited when it announced 3,500 layoffs in Januar.
1.6(vii) Motorola s product:

It includes;

Software-enhanced wireless telephone, Two-way radio, messaging and

Satellite communications products and systems, Networking and Internet-
access products for consumers, Network operators and commercial,
Government and Industrial customers.
Embedded semiconductor solutions for customers in the consumer,
Networking and Computing, Transportation, and Wireless communications
markets.
Electronic systems for Automotive communications, Manufacturing
systems, Computer & consumer markets.
1.6(viii) Mobiles of Motorola:

Motorola R2V9 Motorola RAZR2V8

Price:Rs.23,500/

Price:Rs.22,800/

Motorola R2V9 Motorola RAZR2V8

Motorola RAZRV3 Motorola RAZRV3I
Price:Rs.8,100/

Price:Rs.10,000/

Motorola RAZRV3 Motorola RAZRV3I

Motorola RAZRV3X Motorola RAZRV3XX
Price:Rs.16,500/

Price:Rs.12,500/

Motorola RAZRV3X Motorola RAZRV3XX

1.7 Objectives of the Study:The
subject matter for this research Project is to study the consumer behaviour
towards the NOKIA &MOTOROLA mobiles. This project consists of different
objectives. They are as follows:
. To know about the consumer preference level associated with NOKIA &
MOTOROLA mobiles.
. To find out the customer satisfaction towards NOKIA & MOTOROLA.
. To know which advertisement media puts more impact on the buying
decision of customer.
. Determining the consumer behaviour towards NOKIA & MOTOROLA.
CHAPTER II
REVIEW OF
LITERATURE

Motorola Vs. Nokia

Link: Smartmoney.com: Techsmart: The Bizarro World of Cellphone Makers.
Motorola (NYSE:MOT) verus Nokia (NYSE:NOK).
While the Finnish phone maker has updated its handset portfolio at the high end
to
compete better with Motorola's super-successful Razr phone, the refresh has been
less than inspired. ...
"[Nokia's] high-end phones are small, but they're boxy. Motorola's high-end
[models] are thin and slick." ...
Motorola went for the wow effect, creating gotta-have-it phones. Now, Nokia is
playing catch-up. "It all comes down to innovation and product development," say
s
Hoffman. "Right now, Motorola is head and shoulders above Nokia in creating
products that consumers desire. Nokia has maintained their market share, but
they're using price and marketing dollars as the weapon." ...
Surely the the RAZR was a brilliant move...
Something as simple as naming a phone Razr has created enormous buzz for the
company, says Kelleher. Granted, the Razr is a sleek little piece of telephonic
technology, but the branding has given the phone cache. Kelleher makes a good
point. When you mention Razr, people know what you're talking about. Just try
and picture what the Nokia 6170 looks like.
Great point. But just a piece of anecdotal evidence-the Nokia brand is still qui
te
strong in Asia. And according to The Motley Fool, Nokia's pushing hard into
emerging markets with low-cost phones, which while hitting margins, are building
presence for the long term. 34% increase in handset volumes versus a 25% sales
increase. ... To find growth, Nokia is venturing into emerging markets, such as
China and Russia. ...
Nokia is looking out for the long term by penetrating emerging markets. But it w
ill
take some time for the margins to improve as these consumers upgrade to premium
handsets. Nokia appears to have positioned itself well because gaining recogniti
on
in these markets while they're still developing will give it an important market
presence moving forward
Nokia's strategy may be more sustainable than Motorola's "Wow!" strategy if it
succeeds in building deep moats in emerging markets. Popularity of fashion and
design can be fleeting, a fact which Nokia now knows well.
Also, one weakness I've noticed in the RAZR currently is that it lacks many
advanced functions which new smart phones have. And smart phones are no longer
huge and boxy-and no longer for techies. While the RAZR had enough features
for its time (and perhaps less-technologically-advancd US mobile phone market),
Motorola shareholders should hope that Motorola features enough advanced
features in its upcoming, well named SLVR and PEBL.
This is because for fashionable technology, especially in emerging markets I fee
l,
the prestige and allure of a product is built upon both its look and its array o
f the
"newest" features, even if most functions are never used. Yours may look shiny,
but
if mine can send everyone last nights photos, then you've been one-upped.
It would also be interesting to see Motorola's share of sales inside and outside
the
US, versus Nokia. Motorola could be overly US-dependent... perhaps for another
post. For reference, each company's one year chart below.

Conclusion
Moto is gaining great grounds in emerging market like India, China and South
America. Though Nokia has a well-established market here; Motorola is making
great in-roads into Nokia's shares by an array of products like SLVR, PEBL, SLIM
and RAZR strongly backed by an aggressive marketing strategy and competitive
pricing.
CHAPTER III

RESEARCH
METHODOLOGY

3.1 Scope of the Study:As

learning is a human activity and is as natural, as breathing. Despite of the fac
t
that learning is all pervasive in our lives, psychologists do not agree on how
learning takes place. How individuals learn is a matter of interest to marketers
.
They want to teach consumers in their roles as their roles as consumers. They wa
nt
consumers to learn about their products, product attributes, potential consumers
benefit, how to use, maintain or even dispose of the product and new ways of
behaving that will satisfy not only the consumer s needs, but the marketer s
objectives.
The scope of my study restricts itself to the analysis of CONSUMER
BEHAVIOUR, perception of NOKIA & MOTOROLA. The scope of my study is
also restricts itself to DBIMCS only.
3.2 Time period of the Study:The
present study was undertaken during the month of March 2009.
3.3 Research Design :The
study is a cross sectional study because the data were collected at a single
point of time. For the purpose of present study a related sample of population w
as
selected on the basis of convenience.
3.4 Data Collection :The
data, which is collected for the purpose of study, is divided into 2 bases:
. Primary Source: The primary data comprises information survey of
Comparative study of consumer behavior towards Nokia and Motorola .
The data has been collected directly from respondent with the help of
structured questionnaires.
. Secondary Source: The secondary data was collected from internet and
references from Library.
3.5 Sample Size & Design:A
sample of 50 people was taken on the basis of convenience. The actual
consumers were contacted on the basis of random sampling.
3.6 Tools and Techniques of Analysis:Percentage
methods have been used for analysis the data.
3.7 Limitations of the Study:
The findings of the study will be based on opinion of the respondents, which
may be based.
The study is confined to Mandi Gobindgarh.
Lack of time and finance may prevent from carrying out in depth study.
CHAPTER IV
RESEARCH AND
DISCUSSION

4.1 ANALYSIS OF NOKIA & MOTOROLA:

200 MILLION
75 MILLION
Vs
ONE ON ONE COMPARISON

KEY
SUCCESS
NOKIA MOTOROL
A
EDGE
Technolog
y strategy
5 3 Nokia
3G 4 5 Motorola
Applicatio
n
5 3 Nokia
software 5 4 Nokia
Total 19 15 NOKIA
Main Division: Mobiles

Sales 60.2% 66.2%

Operating
income
70.4% 65.7%
VS
Continuous as focused on
iconic
innovation and new change products to
trends
features. On the
market.
Moves faster than
rivals in introducing
new features
Year No of
new
2002 34
2004 36
2006 39
Nokia s approach is Motorola's
More flexible to diversify approach is more
Its product line risky as they
depend
on sing le big hits
PRODUCT
R&D
FINANCIALS: Stock VARIATIONS
DATA ANALYSIS AND INTERPRETATION
.
1. Do you have any mobile phone?
PARTICULARS NUMBER %AGE
Yes 50 100%
No 0 0%
NUMBER
%AGE
Yes
No
0
0%
50
100% 0
5
10
15
20
25
30
35
40
45
50
Yes
No
INTERPRETATION:
All the respondents had mobile phone
2. How many mobile phones do you have?
particulars No. of respondents
1 37
2 13
3 0
3 + 0
1 2 3 3 +
No. of respondents
37
13
0 0
0
5
10
15
20
25
30
35
40
No. of respondents
No. of respondents
INTERPRETATION:
Out of 50 respondents 37 says that they had 1 connection while 13 were having 2
connections.
3. Which mobile are you using?
Particulars No. of respondents
Nokia 27
Motorola 16
Other 7
Nokia Motorola Other
No. of respondents
27
16
7
0
5
10
15
20
25
30
No. of respondents
No. of respondents
INTERPRETATION:
Out of 50 respondents 27 were using NOKIA while 16 respondents were using MOTORO
LA
and 7 were using other.
4. Are you satisfied with the services?
PARTICULARS NUMBER
Yes 41
No 9
Yes
No NUMBER
41
9
0
10
20
30
40
50 NUMBER
NUMBER
INTERPRETATION:
Out of 50 respondents 41 respondents were satisfied with the services of there p
articular mobile
while only 9 were not satisfied.
5. Which facility attracts you most?
Particulars Nokia Motorola Other
Price 29 12 9
Style 14 15 21
Battery back up 36 7 7
Memory 24 16 10
Other 17 15 18
PriceStyleBattery backupMemoryOther
Nokia
Motorola
Other
9
21
7 10
18
12 15
7
16 15
29
14
36
24
17
0
5
10
15
20
25
30
35
40
Nokia
Motorola
Other
INTERPRETATION
Out 50 respondents most of the respondents prefer Nokia then Motorola and others
.
6. Which advertisement media puts more impact on your buying
decision?
PARTICULARS NO. OF RESPONDENTS
T.V. 28
MAGAZINES 04
NEWSPAPERS 10
INTERNET 05
OTHERS 03
T.V.
MAGAZINESNEWSPAPERSINTERNETOTHERS
NO. OF
RESPONDENTS
28
4
10
5
30
5
10
15
20
25
30
NO. OF RESPONDENTS
NO. OF RESPONDENTS
INTERPRETATION:
Out of 50 respondents 28 gets aware of mobiles T.V, 5 by internet,10 by news pap
ers, 03 by
others while 04 by magazines.
7. From how long you are using this particular service mobile?
PARTICULARS NO. OF RESPONDENTS
1 year 10
2 years 25
3 years 11
More than 3 years 4
1 year 2 years 3 years More than
3 years
NO. OF
RESPONDENTS
10
25
11
40
5
10
15
20
25
NO. OF RESPONDENTS
NO. OF RESPONDENTS
INTERPRETATION:
Out of 50 respondents 10 were using there particular mobile since 1 years, 25 si
nce 2 year, 11
since 3 years while only 4 were using there mobile from more than 3 years.
8. Would you like to change your current mobile in future?
PARTICULARS No. OF RESPONDENTS
Yes 18
No 32
Yes No
No. OF
RESPONDENTS
18
32
0
5
10
15
20
25
30
35
No. OF RESPONDENTS
No. OF RESPONDENTS
Yes No
No. OF
RESPONDENTS
18
32
0
5
10
15
20
25
30
35
No. OF RESPONDENTS
No. OF RESPONDENTS
INTERPRETATION:
Out of 50 respondents 32 did not want to change there current while only 18 resp
ondents want to
change there mobile.
ANALYSIS OF SALES PATTERN
CHAPTER V
5.1 CONCLUSSION:NOKIA:

Price Rs. 1200 to 30,000

For Distinctive, value for money

Against Uninspiring style, no fun to use.

Conclusion:
At its price, the NOKIA gives more luxury per mobile than others.
The distinctive styling. Well- equipped body give it an up market. However, a
week sound quality and an unimpressive video experience are serious drawbacks.
MOTOROLA:
Price Rs.1700 to 25,000
For price, battery, memory,
Against Bland styling.
Conclusion:
The MOTOROLA has to Sets the performance bench mark. With increase the out
look of the brand. it combines a strong design, superb bettery,with low prices.
5.2 important finding of the study:
Few years back mobile phones were not common among the consumer. But
with the mobile revolution now we can find almost every consumer with
mobile phone.
Most of the consumer prefers NOKIA then MOTOROLA and least prefer
other.
Most preferred mobile company amongst the consumer is NOKIA and the
least preferred company is MOTOROLA.
Mostly the consumers are satisfied with the services provided by the
different mobile companies.
Maximum numbers of respondents were attracted towards the price &
battery and the least like the style and memory.
T.V. and newspapers are the best media advertisements that put more impact
on the consumer buying decisions.
Maximum number of consumer are loyal to there particular service
providers and they were using there mobile since 1 to2 years.
5.3 Suggestions:5.3(
A) NOKIA:It
harsh low sound & video quality that some could find it unexciting. And high
price is also a drawback for it .its price should be in reach of a middle men. A
nd
style will be increased.
5.3(B) MOTOROLA:

Its low memory and low battery back are its drawbacks .at its price it has
distinctive style well, increase the memory status and the quality of the batter
y.
BIBLIOGRAPHY
BOOKS:
· Marketing Research G. C. Beri
· Research Methodology C.R Kothari
· Principles of Marketing Philip Kotler
Web Resources:
· www.nokia.com
· www.google.com
· www.scribd.com
· www.managementparadise.com
· www.motorola.com
· www.yahoo.com
· www.thestalwart.com
QUESTIONNAIRE
For
Study of consumer behaviour towards NOKIA and MOTOROLA
Name
Contact no.Sex-

male

female
1. Do you have any mobile?
Yes
2. How many mobile do you have?
1
2
3
3+
3. Which mobile are you using?
Nokia
Motorola
4. Are you satisfied with the services?
Yes
5. Which facility attracts you most?
Price
Style
Battery
Memory
 Others
6. Which advertisement media puts more impact on your buying
decision?
T.V
Newspapers
Internet
Others

7. From how long you are using this particular mobile?

1 year
2 years
3 years

More than 3 years

8. Would you like to change your current mobile in future?
Yes
If yes
then why
Hi friend s if u want more information related this project u send me mail at my
my mail id bindaasvivek4u@gmail.com
And in u want to be my friend my on orkut then u can join me my id is
bindaasvivek4u@yahoo.com
And for more queries in detail u can call me my no is 9779468688.
And u call also contact my friend n the id is kan143def@gmail.com
And his mobile no is 9915970321