ANALYSIS OF MARKETING STRATEGY OF MOTOROLA HANDSETS

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION 2011-2014

Submitted By: AMIT KUMAR JAIN BBA (General 2nd shift) 3rd semester Enrollment No. 03121201711

Submitted TO: Mrs Arti Malik

FACULTY CERTIFICATE This is to certify that the project titled ANALYSIS OF MARKETING STRATEGY OF MOTOROLA HANDSETS is an original work of AMIT KUMAR JAIN, roll no. 03121201711 and is being in partial fulfillment for the award of the BBA Maharaja Surajmal Institute, GGSIPU He was working under my supervision and successfully completed his project work.

Mrs. Arti Malik (Department of Business Administration)

ACKNOWLEDGEMENT
I Take this opportunity to express my profound gratitude and deep regards to my guide and supporter Mrs arti malik for her exemplary guidance, monitoring and constant encouragement throughout the course of thesis. The blessing , help and guidance given by her time to time shall carry me a long way in the journey of life on which I am about to embark I am obliged to the faculty members of maharaja surajmal institute, for the valuable information provided by them in their respective fields. I am grateful for their cooperation during the period of my assignment. Lastly, I thank almighty , my parents , brother , sisters and friends for their constant encouragement without which this assignment would not be possible AMIT KUMAR JAIN

TABLE OF CONTENTS
EXECUTIVE 6-7

CHAPTER 1
Overview of industry as a whole Profile of the organization Competitive Environment SWOT analysis of the organization

INTRODUCTION

8-9
10-27 28-32 33-43 44

CHAPTER 2
Research Design

RESEARCH METHODOLOGY

45
46

o Secondary Data-------------------------------------------------------------o Consumer Survey------------------------------------------------------------o Retailer Survey-------------------------------------------------------------o Primary Data----------------------------------------------------------------Objectives 47

CHAPTER 3
History

CONCEPTUAL DISCUSSIONS

48
49-54

CHAPTER 4
Brands used by different consumers User satisfaction level from different levels Price to performance ratio Level of brand loyalty Most preferred brand Most price competitive brand Most quality competitive brand Most effective media of advertising

DATA ANALYSIS

55
56 57 58 59 60 61 62 63-64

Visibility of the Brand Consumer Analysis on the basis of Gender Buying Preference (Males) Reasons To Buy Handset (For Males) Buying Preference (Females) Reasons To Buy Handset (For Females)

65 66-69

CHAPTER 5

CONCLUSION & SUGGESTIONS

70
71-74

o Recommendation & Conclusion

APPENDIX AND ANNEXURE

o Customer Survey Questionnaire 75-78

BIBLIOGRAPHY & REFFERENCES

79

EXECUTIVE SUMMARY

The main aim of our research project is to study and analyze the Market Strategy of the Motorola Handsets. The whole project concludes the objective to determine the reasons of failure of Motorola to become a leading brand in the cell phone market, in spite of its being the leading brand in countries like UK and US. We will focus on the problems in its marketing strategy, we will analyze all those parameters which hinder the chances of Motorola being a dominant player in the Indian Market. The features of all the mobiles are good but in Nokia there are more features than other mobiles. In low price mobiles Nokia and Samsung have more feature than Motorola. In high range the features are more over similar but, due to one or two extra features have in Nokia mobiles makes the difference in the Indian Market. Motorola is planning to have other phones using the iTunes software. In the future, Motorola phones eventually using removable flash memory to store different content such as music. The portable memory drives will be increasingly important to wireless devices. On the cost side, Motorola continues to cut expenses by streamlining its distribution chain. It is working with fewer suppliers, stressing lower overall costs and higher quality, which was a factor in lower gross margins in the past. The marketing strategy provides information on what the market will be (retail, wholesale) and what specific customer groups will be targeted, what will be sold, where it will be sold, and how wide the area of distribution will be.

Analysis of marketing strategy of Motorola handsets are also done under the project which includes all the aspects of marketing mix i.e PRICE, PLACE, PROMOTION, PRODUCT. On the basis of the research and the data we have gathered from the primary and secondary sources, we can say that Motorola has the capability to make a mark in the Indian Mobile Handset Market, although it will take a considerable time for it to be at par with the market leader (Nokia). While comparing the handsets of Motorola and Nokia, we came to know that Motorola handsets are considered to be bulky as was the case with the earlier models. So Motorola needs to change this perception of consumers. As far is pricing is concerned, Motorola cannot do much on this aspect as they are already competitively priced. But along with bringing new models in the market, they should follow a pricing strategy which give the consumers at least two three variety of models to choose from in a particular price change. Also, for a little period of time (6 months), Motorola, if possible should go work Break Even Profits by providing a greater profit percentage to the dealers by lowering down their margins. This will help the company as shopkeepers would have an incentive in selling these handsets. Our research project initially gives a general overview of the Motorola Handset scenario. A brief differentiation has been made between the Motorola/Nokia & other Handset Companies. The purpose of this section is to briefly encapsulate all major events along with explaining the Marketing implication of it on the Motorola Handset . These have been researched both primarily & secondary data sources. The final section of the report gives out the probable strategies that we would recommend to the Motorola Handset so that they could put a lot of effort regarding its products,

prices, promotions, distribution techniques, consumer selection and total marketing strategy improve their overall performance so as to compete with other good brands.

INTRODUCTION
A BRIEF OVERVIEW ABOUT THE INDUSTRY:
During the late 1980s and into the 1990s large firms such as Motorola, Ericsson, Nokia and Siemens pushed the frontiers of mobile handset performance, and the industry was considered to be a classic case for a vertically integrated industry. These vertical integrators not only controlled the design, production and marketing of mobile phones, but also the mobile communications infrastructure business. Evolving their products from a suitcase-sized device with limited appeal beyond a very narrow niche of business and professional users, these vertically integrated firms invested huge sums in research and development to improve the performance and reduce the size of mobile phones. As was the case with the earliest PCs, software components, hardware components and operating systems were produced in-house, and assembled together in interdependent product architectures. The resources required to enter the fledgling mobile phone industry were beyond the means of most small and medium sized players. But the world has changed. As was the case in the PC industry in the 1980s and 1990s, the mobile phone handset industry is today unbundling with increasingly specialized firms entering the market with components and software that are assembled by branded manufacturers and ODMs into finished devices. Now, as then, there seem to be several motivating factors at the heart of this process: evolving technological standardization, gains from specialization driven by differences in the evolving knowledge bases across

the industry, and gains from trade emerging from the emerging differences between specific firms. But powerful buyers the mobile network operators are also exerting an important influence on the break-up of the mobile handset value-chain by demanding manufacturers to integrate certain standards-based technologies, software operating systems and/or applications. RECENT TRENDS IN MOBILES Like PCs, mobile phones are becoming increasingly sophisticated and most advanced devices now incorporate microprocessors, memory, operating systems, applications and core components such as LCD screens and keypads. End-users and operators are demanding applications and functions from the PC industry. Given this complexity, it is virtually impossible for any single handset manufacturer to retain industry leading expertise across the rapidly evolving spectrum of hardware and software technologies. In the past few years the industry has seen the evolution of application providers who offer their applications directly to original device manufacturers (ODMs) and original equipment manufacturers (OEMs), and the commercial models used in this case are generally license or certification. Applications are handled by the handsets application engine, and can be either proprietary developed or 3rd party developed using a modular environment. Example of application developers include Teleca, Openwave, Sasken, Convergelabs and Access. A more recent development in response to the rollout of higher bandwidth 3rd Generation (3G) networks has been the move by vendors such as Nokia to integrate Internet search engine software such as Yahoo! into their devices. Examples of complementary assets in the mobile phone industry include capabilities such as consumer branding, industrial design capabilities, manufacturing and supply chain efficiency, hardware and software customization, time to market and service provision. These dimensions of performance are likely to become increasingly important, especially in the mid and high-end segments. Newer industry entrants such as Samsung have already demonstrated the power of marketing, brand management and excellence in

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industrial design; even in the absence of core expertise in mobile technology such as radio platforms.

Indias Mobile Handsets Market

A number of mobile handsets manufacturers share this very competitive market in India. Most prominent among them are Nokia, Samsung, LG, Sony Ericsson and Motorola.

Nokia
This market is ruled by Nokia. Introduced on Indian shores in 1994, Nokia offers all kinds of Mobile Handsets, ranging from the most basic ones, which support only calling and text messaging to the most advanced ones which support features like MMS, Camera, Bluetooth, GPRS, Touch Screen, Top end games, Net Surfing etc. Its major models are 2100, 1100, 9500, 7610, 6600, 5800,6300 etc.

Samsung
Samsung also came into the market around the same time as Nokia. Although, they have introduced good quality and elegant handsets, they have not been able to capture much of the Indian market. Its major models are SGH-C110, SGH-C100, SGH-X430, SGH-E810, etc. But now with the Innovation of Corby series of Samsung, they are trying to compete Nokia & hence capture the market.

LG
LG introduced its products in India around 4-5 years back. Although LG has not able to make a mark in the mobile handset market, it is progressing well specially after its collaboration with Reliance. Major models introduced are C2000, VX8100, VX4700, VX3300, VX7000, Cookie, Mate etc. 11

Sony Ericsson
This Company also does not have a major market share in the Indian market. Its major models are Z500a, S710a, E-550, E-750 etc.

And Motorola
Motorola is a leading player in Mobile Handsets market in USA, UK, etc. But it has not been able to make a mark in the Indian market. More prominent models are C131, C155, C200, V303, A768i, A760, V3-Razr etc.

DEFINITION
Market strategy is defined as an action plan for influencing customer choices and obtaining a market share. Market strategy should entice customers to buy the product or service. Market strategy encompasses customer perception of the relationship between price and quality. Market strategy also includes the distribution channels for the product, pricing and terms of sale, promotion and advertising plan, marketing budgets, inventory selection and management, visual merchandising, customer relations and an evaluation of the marketing strategy

WHY IS IT USED?
The marketing strategy provides information on what the market will be (retail, wholesale) and what specific customer groups will be targeted, what will be sold, where it will be sold, and how wide the area of distribution will be.

TOOLS

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Since a marketing strategy is the heart of any business entity, there are some tools or concepts in this regard developed by the marketing experts and followed by hundreds of companies the world over. The major tools of studying the marketing strategies are:

1) Perceptual Map 2) The BCG Matrix

Now let us see how a perceptual map is useful

THE PERCEPTUAL MAP

Perceptual Mapping is a useful statistical technique that provides an overview of how customers perceive the different products in a market including each product's relative strengths and weaknesses. A perceptual map summarizes the image of several products on many different attributes in one graph, providing a very useful overview of customer's perceptions of the market. Whilst it has been criticized for oversimplifying what can be sometimes be complex commercial problems, the two-dimensional Perceptual Map has become a particularly useful vehicle for management to draw attention to an emerging market opportunity, a new strategic direction, or a changing market condition.

THE CUSTOMER MATRIX

The 'Customer Matrix' example illustrated below was developed by Cliff Bowman, Professor of Business Strategy at Cranfield School of Management. A proactive supplier will always consider how to maintain initiative within the market. A useful starting point is to consider competitive position as a perceptual map in which 'Perceived Price' is plotted against 'Perceived Use Value'. If the supplier determines that his solution is 'average' when compared to the competition, the alternative courses of action are:

To achieve the status of lowest cost producer and offer lower prices than the competition - i.e. move West. Here Bowman sites the work of Porter, and

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emphasizes the need for all organizations to become low cost (if not lowest cost) producers so that at the very least market fluctuations can be accommodated.

To move North by adding Perceived Use Value. Here Bowman is at pains to point out that market segmentation plays a critical role in determining what customers do actually value and that any advantage must be sustainable.

Bowman then goes on to explore the interactive nature of these axes. For example an increased share obtained by adding value can result (through economies of scale) in lowest cost producer status. The move North West - sequentially adding Perceived Use Value and cutting price - may offer the company the best strategy to tackle the market and offer global potential, but the company must be nimble in order to maintain its competitive position.

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MOTOROLA V/S COMPETITORS: A PERPECTUAL MAP

15

HANDSETS MOTOROLA: V3 Razr A780 C138 C650

PRICE

QUALITY

Moderate High Low Moderate

High High Low Low

COMPETITORS: Nokia 6600 Nokia 1100 Samsung C230 Moderate Low Moderate High High High

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And now let us represent the perceptions of Motorola Handsets using the customer matrix, by taking perceived price and perceived value as the two axes:

The Boston Consulting Group (BCG) matrix

It is a simple tool for assessing a company's position relative to others in terms of its product range. It is a 2x2 matrix plotting market share against market growth.

History of the BCG Matrix

1960s diversification of businesses Need for universal management tool First implementation in 1969 by Boston Consulting Group

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Why use it?

The BCG matrix helps a company think about the portfolio of products and services which it offers and make decisions about which it should keep, which it should let go and which it should invest further in.

When is it used?
It is used in initial audit discussions to identify product development opportunities. The company then plots its products on the matrix for example a product in a fast growing market in which it has a low share would appear in the top left hand area, while one in which it had a high market share but where the market was growing slowly would appear in the bottom right

How to use a BCG matrix? Key Assumptions of BCG Matrix

Stable cost/price relationship (Not valid if the firm is pricing on projected lower average unit costs in the future) Market leader influences the average costs Profit margin is a function of market share (This ignores profitable niches)

BCG Matrix Format

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 Vertical Axis = Relative Market Growth Split at 10% by a horizontal line Horizontal Axis = Relative Market Share Split at 1x by a vertical line

Mobile market BCG Matrix

With the study of the BCG Matrix, we have tried to apply this concept to this project of ours. We have analyzed the Mobile handsets market and then placed the various models available in the market in the relevant quadrants.

Analysis:
The reasons for placing the product portfolio in the above manner are as follows: QUESTION MARKS: C138, V3Razr, C115, C200, V171, MPX200, A768i, C201 Here we have taken model numbers C138, C115, C200, C201 because these handsets are fairly priced, low-income consumers can also purchase them with ease. But the share of Motorola in this category is in single digit. The market for this category is on the rise and Motorola can take huge advantages in this category. Although Nokia is the market leader in this segment with models like 1100, 2100, 1108, 2300, etc., Motorola can compete with them but their models are complex and does not contain any extra features provided by Nokia like a torch in 1100 and FM Radio on 2300.

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DOGS: A780, E398 Here we have taken these two models as their market share is very less and also the market growth rate for this category of handsets is also not very big. A780 is priced at Rs. 23000 while E398 is priced at Rs. 8500. Market growth rate of models similar to A780 is low because it is highly priced. Consumers generally go for a handset priced upto15-20 thousand as these handsets generally cover most of the features customers look in for while purchasing a handset. Market for sets similar to E398 is also low as it lies in the middle of the various products offered by all the companies. From our consumer survey, we found out that consumers generally go for mobile handsets either priced very low or they go in for advanced mobile handsets, which are generally priced around 15000 rupees.

Evaluation of BCG Matrix: Pros

Simple and rapid Solid basis for decision-making Good measurability of market share and growth Provides information about efficient resource allocation within the organization Generator for strategic options

Evaluation of BCG Matrix: Cons

Oversimplifies complex decisions Only 2 factors considered = creates risk Uncertainty in market and SBU definition

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 Only considers current businesses no dynamics Does not recognize possible synergies between SBUs Can fall prey to the GIGO syndrome

Conclusion
As long as management understands that the BCG Growth/Share Matrix generates options which require further analysis and validation, this tool can greatly enhance strategic decision making

MARKET SEGMENTATION DEFINITION

Market segmentation is dividing a larger market into submarkets based upon different needs or product preferences. These common characteristics allow developing a standardized marketing mix for all customers in a particular segment

NEED FOR SEGMENTATION

Segmentation needs to be undertaken for the following reasons:

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Better serving customers needs and wants Higher Profits Opportunities for Growth Sustainable customer relationships in all phases of customer life cycle Targeted communication Stimulating Innovation Higher Market Shares

For segmentation to be effective, the following criteria should be kept in mind:

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 Feasibility: Having in place a marketing program for each segment and drawing

advantages from that.

Distinguishing ability: market segments have to be diverse enough to show

different reactions to different marketing mixes.

Accessibility: The segment has to be accessible and servable for the organization.

Relevance: The size and profit potential of a market segment have to be large enough to economically justify separate marketing activities for this segment.

Measurability: It has to be possible to determine the values of the variables used

for segmentation with justifiable efforts.

The traditional variables for segmentation are as follows:

Geographic:

Land or region Rural or metropolitan area

Demographic:

Age, sex, marital status Income, occupation, education Religion, nationality, ethnical group

Psychographic:

Social status Lifestyle-type Personal type

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Behavioral:

Intensity of product use Brand loyalty User behaviors

Marketers have to choose those variables that are relevant for segmenting the market for a particular product. The basic rule is to focus on a limited number of important variables.

THE MARKETING MIX

The term was coined by Neil H. Borden in his article 'The Concept of the Marketing Mix' in 1965. The 'Marketing Mix' is probably the most famous phrase in marketing. The elements are the marketing 'tactics'. Also known as the 'Four Ps', the marketing mix elements are Price, Place, Product, Promotion and Increase the mix to 'Seven Ps', to include Physical evidence (such as uniforms, facilities, or livery) and Process (i.e. the whole customer experience e.g. a visit the Disney World). The concept is simple. Think about another common mix - a cake mix. All cakes contain eggs, butter, flour, and sugar. However, you can alter the final cake by altering the amounts of mix elements contained in it. So for a sweet cake add more sugar! It is the same with the marketing mix. The offer you make to you customer can be altered by varying the mix elements. So for a high profile brand increase the focus on promotion and desensitize the weight given to price.

Essentials of marketing mix: Product:

Defines the characteristics of your product or service that meets the 24

needs of your customers.

Price:

Decide on a pricing strategy - do not let it just happen! Even if you decide not to charge for a service (a loss leader), you must realize that this is a conscious decision and forms part of the pricing strategy.

Promotion: Place route

This includes all the weapons in the marketing armory - advertising, selling, sales promotions, Public Relations, etc.

(or Some of the revolutions in marketing have come about by changing of this P. Think of telephone insurance and the internet! A bit of lateral

distribution): thinking here might reap rewards for your business.

ANALYSIS OF MARKETING STRATEGY (4 Ps) PRODUCT

History
Motorola launched their mobile phones in India in 1991. There were not many competitors in the market due to high prices and less demand. The mobile handset market saw a change from the year 1995, when Nokia reduced the prices of their products by a considerable amount. This brought a change in the mindset of the consumers, which

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enabled the demand to grow. This also facilitated the introduction of other brands like Panasonic, Samsung, etc.

Current Offerings
Some of the Motorola handset models currently being sold in India can be categorized into three parts: Low End Models: - C138, C116, C131, C155, C200, V131, V155. Mid Range Models: - MP*200, E398, C650, C375. Top End Models: - A768i and A760 (Linux Based), A780, V600, RazrV3, V303. Its low end models contain most basic features and meant for consumers with low incomes. Top end models contain the latest features and are meant for consumers who want new technologies and high end quality. The main problem that lies with the product line of Motorola handsets is the variety of handsets being sold in India. Users do not have many options to choose from. As compared to U.S., Motorola has introduced only a third of the handsets in India. In U.S., it sells other models like: - A630, A840, E310, E815, ROKR E1, and many other. So people there have a choice to choose from. So, on the Product front, Motorola should introduce more Handsets with high features in India so that the consumers have a choice to choose from.

Product variety:In India, Motorola offers approximately 32 models as compared to more than 70 models offered by Nokia. This gives an opportunity to the customers to choose from a number of products as per their requirements. They have the freedom of choosing the product from a variety of different handsets (with different customer friendly features) within the specific price range. 26

Quality Aspect:Quality aspects of Motorola can be very well determined from the fact that Motorola is the number one brand for Mobile Handsets in U.S. and U.K. Nokia is considered to be a good quality brand in India. So, we need to look at why Motorola is taking up a backseat in Indian mobile handset market. What are the various ways through which a customer can be informed about the quality of handset?

Design:Nokia handsets are designed to be very user friendly. The various features pertinent in a mobile handset can be used with ease and comfort whereas Motorola handsets are considered complex, heavy and non-durable. This gives an edge to Nokia as Indian consumers prefer simple and easy to use interface.

Brand Name:Nokia has a monopoly in brand name in mobile handset market over other companies instead of the fact that Nokia and Motorola have both introduced their phones almost at the same time. If you look at the brand name value of Motorola, you will find that it is doing well.

Services:During our survey we found out two major things:Firstly, people hardly require any after sales services and secondly, ifr equired the services provided by Nokia are satisfactory to people. We also found some customers dissatisfied regarding Motorola after sales services problems. That leads to major dissatisfaction among the consumers, which at the end affects the brand image of the company.

PRICE
The mobile handsets market is considered to be quite price sensitive. As a number of companies with a number of products exist in the market, a minor change in the prices of handsets has a reflection on the demand for that product.

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List price:
Nokia offers a number of handsets ranging from Rs. 2600 to 38500, which covers varieties of phones. In contrast to it, Motorola offers handsets ranging from Rs. 1900 to 29000, which covers comparatively less varieties of phones then covered by Nokia.

Resalable value:
During the survey we found that there are some people who like to keep changing their cell phones just because they feel like doing it. And as we looked at second hand mobile handsets market, we found that again Nokia is a prominent leader in this market also. This is also a reason that people like to prefer to go for Nokia. On the other hand Motorola does not have a very good resale value.

PLACE (DISTRIBUTION)
One of the major factors that contribute to the single digit market share of Motorola is their distribution network. From the data we have gathered, it seems that Motorola hasnt given importance to this very relevant aspect. Motorola representatives rarely visit the shops to introduce their products. Also, the shops they generally visit are those that are centrally located and shops which generally have the cell phones of all the companies. There are limited exclusive showrooms of Motorola, which hinders the any relevant information to be passed on to the consumers, that might have been possible in an exclusive outlet as the employees in an exclusive outlet are more aware of the product and the specifications of all the models.

PROMOTION
Advertising in India This is the major problem area for Motorola. Motorola spends only a meager amount of money on Advertisements, as compared to other brands like Nokia and Samsung in India. Most of the consumers are not aware of the products on offer. As there is very less

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visibility of promotional campaigns, there is a feeling in the minds of the consumers that their products are not of high quality. Although, this trend is changing with the introduction of Moto Razr V3, but it is restricted to only one model and consumers are not aware of other models.

Mobile phones advertisement handled by Ogilvy & Mather

Ogilvy & Mather Worldwide is the agency created by British-born advertising legend David Ogilvy in 1948, virtually from scratch. It now has 10 US offices and a further 359 worldwide in over 90 countries. It was the first agency into China, Korea and Vietnam and is now Asia's largest integrated network; also one of the first into Eastern Europe. Advertising Age ranked O&M as the #10 agency network worldwide in 2004 with revenues of $753m.

COMPANY PROFILE
Companys Vision

Seamless Mobility

Companys Mission
The purpose of Motorola is to honorably serve the needs of the community by providing products and services of superior quality at a fair price to our customers; to do this so as to earn an adequate profit which is required for the total 29

enterprise to grow, and by so doing provide the opportunity for our employees and shareholders to achieve their reasonable personal objectives.

About Motorola
Motorola is a Fortune 100 global communications leader that provides seamless mobility products and solutions across broadband, embedded systems and wireless networks. Seamless mobility means you can reach the people, things and information you need in your home, auto, workplace and all spaces in between. Seamless mobility harnesses the power of technology convergence and enables smarter, faster, cost-effective and flexible communication. Motorola had sales of US $31.3 billion in 2009.

ANALYSIS OF THE CONSUMER FEEDBACK

Demographic Profiles Consumer buying Behavior Comparative Analysis Motorola in Focus

To get an insight into the consumers requirements and demands while purchasing a mobile handset, a survey was conducted in East, West and North Delhi, Greater Noida and Ghaziabad.

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The total sample size for our survey was 100.

1. 2. 3. 4. 5. 6.

Areas covered under survey Ghaziabad Rohini Shakarpur R.K.Puram Greater Noida BVU Campus

Sample Size 5 40 25 15 5 10

Segmentation of the sample 1. On the basis of gender: Male/Female 2. On the basis of age groups: 0 - 15 / 15 - 25 / 25-40 / 40 & above 3. On the basis of levels of Income: <5000 / 5000-20000 / >20000

The questionnaire covered different aspects of the consumers preferences, their requirements, and the factors responsible for low sale of Motorola handsets. A copy of the questionnaire is provided in Appendix.

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Demographic Profile

15 25: The respondents in this age group belong to the high school and college going crowd. This set comprises of dependent young adults who are brand conscious and values money as they belong to the salaried and business upper middle class. This age group also belongs to the young enthusiast who is not afraid of trying something new. 25 40: This age group comprises either career oriented students who are pursuing higher studies or of people who are into the early stages of their work life. A majority of these respondents have started their family lives and have one or two young kids. In such households there are usually two earning members with the working mother being highly conscious of quality as well as price.

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 Above 40: The people in this category are parents with adolescent kids and have reached their middle ages. An individual in this age group is financially sound and professionally well settled. This individual in all likelihood is not going to be very open to the idea of trying something new or different.

Consumer Buying Behavior

Most and Least Important Factors affecting Purchase Decision
Age Groups
15 -25 25- 40 40 and above

Most Imp.
Look, Style, Features Need, VAS, Price Need, Must have

Least Imp.
Others suggestions Others suggestions Others suggestions

The important factors for the age group 15 25 are Look, Style and features. A majority of this age group as per the demographic profile consists of dependents, school and college students, who get to exercise their choice in most of household purchases. Their other expenses include like entertainment, clothes, and accessories etc. that also have to be met from this limited amount of money that their parents get from earnings. There is also a subgroup that earns its own money and has absolute say in whatever they spend. So they value money more than the rest and thus, consider price to be of great importance before making a final decision.

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 The age group of 25-40 gives equal importance to Need, Price and Value Added Services in the handset. They try to strike a balance between these three factors and opt for that which maximizes value proposition. The 40 & above group also gives equal importance to Need and to the fact that being an older member they must carry a handset.

COMPETITIVE ENVIRONMENT

Indias Mobile Handsets Market

A number of mobile handsets manufacturers share this very competitive market in India. Most prominent among them are Nokia, Samsung, LG, Sony Ericsson and Motorola.

Nokia
This market is ruled by Nokia. Introduced on Indian shores in 1994, Nokia offers all kinds of Mobile Handsets, ranging from the most basic ones, which support only calling and text messaging to the most advanced ones which support features like MMS, Camera, Bluetooth, GPRS, Touch Screen, Top end games, Net Surfing etc. Its major models are 2100, 1100, 9500, 7610, 6600, 5800,6300 etc.

Samsung

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Samsung also came into the market around the same time as Nokia. Although, they have introduced good quality and elegant handsets, they have not been able to capture much of the Indian market. Its major models are SGH-C110, SGH-C100, SGH-X430, SGH-E810, etc. But now with the Innovation of Corby series of Samsung, they are trying to compete Nokia & hence capture the market.

LG
LG introduced its products in India around 4-5 years back. Although LG has not able to make a mark in the mobile handset market, it is progressing well specially after its collaboration with Reliance. Major models introduced are C2000, VX8100, VX4700, VX3300, VX7000, Cookie, Mate etc.

Sony Ericsson
This Company also does not have a major market share in the Indian market. Its major models are Z500a, S710a, E-550, E-750 etc.

and Motorola
Motorola is a leading player in Mobile Handsets market in USA, UK, etc. But it has not been able to make a mark in the Indian market. More prominent models are C131, C155, C200, V303, A768i, A760, V3-Razr etc.

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74% in March 09 from 61.5% in October 08. In the color segment too, Nokia has increased its market share to 55% in March 09 from 33.7% in October 08. In terms of value, Nokias overall market share has jumped to 70.5% in March 09 from 57.7% in October 08. In the color phone category, its market share (in terms of value) has increased to 59.3% in March 09 from 40.9% in October 08, according to ORG GFK estimates.

Major Players in the Handset Market

We select two companies which have a very large market share, these are Nokia and Samsung. In this we compare the Prices, Features, Service Messaging, Display type, Types of ring tones, and Downloadable contents from Motorola hand sets, to see what are the reasons of lacking in the sight of Indian customers. This follows as:

MOTOROLA HANDSETS

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C 115

C138

V600

V30

NOKIA HANDSETS

1108

1100

7610

6600

SAMSUNG HANDSETS

R 220

N191

N700

E810

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TABLE SHOWING COMPARISON OF DIFFERENT MOBILES

Brand Name Motorola
Low price

Price (Rs.)

Service Messaging

Display Type

Polyphonic Type

Downloadable contents

Special Features

C 115

1200

SMS

Black & White Black & White

No

None

Long Battery life. Downloadable RingTones.

C 138

1600

SMS/EMS

No

Ring tones

High price

V 600

8400

MMS/EMS /SMS

Color

Yes

Ring tones/ Themes/ Wallpaper/ Screensavers/ Application Ring tones/ Themes/ Wallpaper/ Screensavers/ Application

Video Downloads

V303

9800

MMS/EMS /E-Mail

Color

Yes

Video Downloads Integrated Digital Camera.

Nokia
Low price

38

1100

1800

Picture Message/ SMS

Black & White Black & White

No

None

Torch, Screen Saver.

1108

1550

Picture Message/ SMS

MonoPhonic Tones.

None

Torch, Screen saver, white screen

High price

7610

7600

MMS/SMS / E-Mail/

65,536 Color display

Yes

Ring tones/ Themes/ Wallpaper/ Screensavers/ Application/G ames/

Mega pixel Camera/ Digital zoom/ Video recording/ Real player

39

Bluetooth/ USB/64 6600 6500 MMS/SMS/ E-Mail/ 65,536 Color Display Yes Ring tones/ Themes/ Wallpaper/ Screensave rs/ Application /Games/ Graphics/ MB MMC. Camera/ Digital zoom/ Video recording/ real player/ Bluetooth/ Infra Red/ USB/32 MB MMC. Samsung
Low price

R 220

2250

Picture Message/ SMS SMS SMS/EMS SMS/EMS/ MMS/ EMail.

Black & No White Black & Yes White Color Color Yes Yes

No

Long Battery life.

N 191 N 700 E 810

1450 4500 9500

No Ring tones Ring tones/ Themes/ Wallpapers /Screen saver Graphics.

Long Battery life. Camera

Market Share of Nokia and Motorola

40

Nokia vs. Others...

Others 38% Nokia 62%

Nokia Others

M otorola vs. O thers

8% Motorola Others 92%

Why the market share of Motorola is less?

41

We know that the demand of a product is dependent on prices. But in this case the demand for Nokia mobiles is higher than other mobiles. Because in our survey we found that performance of Motorola mobiles are not good from the consumer as well as dealers point of view. Motorola handsets are lacking in the features as well as battery back up, which is an essential part of consumer preference. We study that the after sale service of Motorola is not good as compared to Nokia and Samsung. Customers as well as dealers are not satisfied with the after sale services, these kinds of things are the main areas in which they are lacking. Customers responses towards the looks of Motorola Mobiles are mostly positive in case of high priced mobiles, but in case of low price mobiles they do not feel satisfactory. In case of Nokia the mobiles are very beautiful in looks. These kinds of things are very important for capturing the overall market share. From the above table we assume that the features of all the mobiles are good but in Nokia there are more features than other mobiles. In low price mobiles Nokia and Samsung have more feature than Motorola. In high range the features are more over similar but, due to one or two extra features have in Nokia mobiles makes the difference in the Indian Market.

Motorola wants to increase market share in India

42

CEO Ed. Zander There are phenomenal growth opportunities in emerging markets for Motorola Inc. (MOT), but one country the telecom-equipment maker needs to work on is India, Chief Executive Ed Zander said Wednesday.

Motorola's market share in India is in the single digits, which Zander considers unacceptable.

"I'm still not happy with India," Zander said during an investor conference hosted by Citigroup in New York. His speech was broadcast over the Internet. He noted the top player in the region has a market position of 60% to 65%. He noted there was a lot of wealth in India, and noted that "5% of 1 billion people in India is a lot of people. A lot of people with money there." Other markets such as China and Brazil present opportunities. Zander said Motorola holds the top position in Russia, which could potentially spread to Eastern Europe. The company has also made inroads in Africa, mainly in South Africa and Nigeria. "We're picking our spots on how we go there," he said. Also at the conference, Zander demonstrated the new ROKR phone, which uses Apple Computer Inc.'s (AAPL) iTunes music software. The device, which has been highly anticipated and speculated upon for months, acts as both phone and music player.

43

SWOT ANALYSIS
The demonstration included one of Zander's favorite artists - Neil Diamond - and a clip from Diamond's "Sweet Caroline" blasted on the phone's speakers. "I've got 50 Neil Diamond songs in here," he said. Motorola plans to have other phones using the iTunes software, he added. Zander said that given the competitive environment, working with other companies to bring out new devices is key for lasting growth. Along with its partnership with Apple, Motorola previously worked with Oakley Inc. (OO) for a sunglass with a bluetoothenabled cell phone.

In the future, Zander said he sees phones eventually using removable flash memory to store different content such as music. The portable memory drives will be increasingly important to wireless devices. On the cost side, Motorola continues to cut expenses by streamlining its distribution chain. It is working with fewer suppliers, stressing lower overall costs and higher quality, which Zander admitted was a factor in lower gross margins in the past.

44

If we conduct a SWOT analysis on Motorola, we come up with the following -

Strengths
Fairly Priced Good Quality Most selling brand in U.S. and U.K.

Weaknesses
Very less visibility Not a very good brand image Service quality issues Less number of models Low advertising Less visits by the company to dealers

Opportunity
Image building by introducing new models Price conscious consumers

Threats
Monopoly of Nokia Brand image of Nokia Number of Models of Nokia

45

RESEARCH METHODOLOGY

46

Research Design and Methodology

This research is a combination of the secondary data, analysis of the consumer survey and the primary data.

Secondary Data - We collected secondary data from sources like business magazines, online magazines and journals on the Internet, portions of which have been reproduced in this report.

Consumer Survey - We conducted a Consumer Survey to gain an insight into the average consumers preferences as far as purchasing of Mobile Handsets is concerned. Sampling for the survey was convenience sampling with a mix of people from all age groups, both sexes and people with different income groups. The sample size was approx 100 people.

Primary Data Once we had the findings of our consumer surveys, we contacted the Marketing Executive of Motorola to gather all the information that was unavailable on the Internet.

OBJECTIVE OF THE STUDY

47

Will Motorola be able to dominate Indian Mobile Handsets Market?

To determine the reasons of failure of Motorola to become a leading brand in the cell phone market, in spite of its being the leading brand in countries like UK and US. We will focus on the problems in its marketing strategy. We will analyze all those parameters which hinder the chances of Motorola being a dominant player in the Indian Market.

Sub Objectives of the Study: 1. Is Motorola providing good product and services in India? 2. Why is Nokia, despite being a latecomer, a leader? 3. How can Motorola promote itself to be a leading brand?

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CONCEPTUAL DISCUSSIONS (THEORETICAL BACKDROP AND LITERATURE REVIEW)

49

ABOUT HANDSETS
For 50 years there has been a specialized type of media research which measures audience reaction to films and other programming on a continuous second-by-second basis through use of electronic handsets. Results are charted during the viewing. Patterns of response constitute an X-ray of the program as experienced by the audience, a record of cognitive processing. Such research data are unique and unavailable using other research methods. This paper traces the history of the development of handsets, from the 1940s to the 1990s, and describes their characteristics. By the 1950s various response scales were being used, principally3-point, 4-point, and 5-point, as well as different configurations of handset, with push buttons, or dial, or 4-way joy stick. Now in the 1990s there is an extraordinary variety of sophisticated hardware and software available. Hardware developed for continuous response measurement was early adapted by educators for administering classroom tests, and more recently for two-way interaction in Distance Learning. Industry now uses handsets in group meetings for feedback and to facilitate joint decisions. Teleconferencing uses hardware which permits groups assembled in different cities to respond to a presentation made from a central point, and interact with speakers. From its first years, continuous audience response research has remained the tool of a relatively small group of sophisticated users. Most but not all creative people tend to reject use of an electronic device for evaluating their work. Thus, paradoxically, those who can benefit the most have been most reluctant to use it. But as competition for audiences becomes stiffer, demand for research based on handset use appears to be growing.

ABOUT MOTOROLA

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Motorolas role as pioneer, innovator and visionary in mobile communications is wellknown. Originally founded as the Galvin Manufacturing Corporation in 1928, Motorola has come a long way since introducing its first product, the battery eliminator. For more than 75 years, Motorola has proven itself a global leader in wireless, broadband and automotive communications technologies and embedded electronic products, and has become a company recognized for its dedication to ethical business practices and pioneering role in important innovations. Motorola has kept moving at the pace people are living. Its products have grown and changed over the years, and its drive for excellence has strengthened and intensified. From the five pound Handie-Talkie radio to the lightweight models of today, Motorola has been the leading provider of two-way radio services to public safety, government, transportation, utility and manufacturing enterprises. Its digital cable set-top terminals and cable modems deliver the promise of a connected home just as the original home radios and televisions did in the 1930s and 40s. The leader in embedded processor production, Motorola has developed a broad array of microprocessors for a wide range of products, from some of the first video games to todays advanced digital cameras. In personal communications, Motorola changed the way the world communicates, from the introduction of the DynaTAC cell phone in 1983 to todays sleek handsets and innovative technology for mobile telephone service. It is also a key supplier of integrated systems for automobiles, portable electronic devices and industrial equipment. Throughout its history, Motorola has transformed innovative ideas into products that connect people to each other and the world around them. Moving forward, the company strives to keep its commitment of making things better and life easier.

Today, Motorola is comprised of four businesses: Mobile Devices Solutions,

Connected Home Solutions, Government & Enterprise Mobility Solutions and Networks.

Networks

51

Delivers proven capabilities in cellular, wireless broadband and wireline access technologies, with recognized leadership in integrating core networks through wireless IP, wireless softswitch and IP multimedia subsystems. The Networks group is advancing seamless mobility with innovative technology solutions, as well as a billion dollar services business with an expanded portfolio delivering support, integration, applications and management.

About Motorola India

Motorola in India is Headquartered at Gurgaon, Haryana, with sales offices at Delhi, Mumbai and Bangalore. It has research and development centers at Bangalore and Hyderabad. Motorola India's operations in India are divided into four businesses: Mobile Devices, Networks, Connected Home Solutions, and Government & Enterprises Mobility Solutions. The Companys focus areas include, Mobile Handsets, Wireless Infrastructure, Managed and Hosted Services, Broadband Equipment (wired as well as wireless), Trunking & Two Way Radios, Software Development and Research and Development on cutting edge future communication technologies.

Wireless Infrastructure
Motorola India enjoys a key position in the wireless infrastructure segment and offers cutting edge end-to-end solutions across GSM and CDMA technologies. It is a dominant player in GSM technologies; the only one to have set-up networks in all metros and India's first GPRS and CDMA network. All major carriers (GSM and CDMA) are Motorola India's customers. Motorola is bringing the latest wireless technologies into India and promoting India as a development base for next generation technologies and solutions. It has added Managed Services and Hosted Services to its portfolio

Mobile Devices
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Motorola India is a leading player in this space. It has a very versatile product portfolio which includes the world's first Linux based PDA phones such as the A760; A768i and the A780. It also sells iconic products like the Razr V3 which has set a new benchmark in the world for mobile phone design. Its portfolio also includes very attractive high-mid tier and mid tier products like the MPx 200 and the trendy E398. Its low tier products are known for their reliability and economy, and include the C 115, C 116, C 138, V131 and V155.

Connected Home, Wireless Broadband and Two-way Radios

Motorola India has leading multi service operators as its customers for Voice and Data solutions. The Company is also the leading provider of integrated communications and information solutions, trusted to meet missioncritical requirements and improve the operations of public safety, government and enterprise customers worldwide.

Global Software Group

Motorola Global Software Group (GSG)'s India center is the oldest and largest GSG center for research and development of software. It was the first commercial software organization in the world to achieve SEI Level 5 in 1993 and also the first organization in the world to be assessed at SEI CMMI Level 5 on a continuous model. GSG India develops custom software and solutions for Motorola's existing, and next generation wireless systems and technologies.

Embedded Software
Motorola India is leading the innovation of intelligent building blocks for standards based embedded computing. These building blocks include openarchitecture hardware, rich software and application-ready platforms that enable equipment manufacturers to quickly and cost-effectively embed leading-edge functionality into their next-generation systems.

Motorola Labs

53

Motorola has added to its already strong R&D strength in India the 15th centre of excellence of Motorola Labs, in Bangalore. The mandate of Motorola Labs in India will be to engage in research, driven by Motorolas vision of Seamless Mobility and will include converged networks, autonomic networking, enterprise design and physical sciences.

Motorola has opened new research lab in Bangalore

The lab--the 11th such center opened by telecommunications giant Motorola, and its first in India--will work on diverse applied areas such as converged networks, autonomic networking, enterprise applications, embedded systems and physical sciences. Schaumberg, Ill.-based Motorola already has an India-based R&D infrastructure, which employs 1,700 engineers, but it works mostly on software. Motorola's research investment in India has grown this year, to $85 million from the approximately $50 million spent in 2002. The company plans to increase this investment by 10 percent to 20 percent per year. "With access to India's proven best-in-class scientific and engineering talent and the ability to collaborate with world-class universities and institutes, Motorola believes India is the ideal market for applied research and software development," Padmasree Warrior, executive vice president and chief technology officer of Motorola, said in a statement.

54

New Delhi, March 15th 2004

Motorola Inc. has announced the appointment of Mr. Amit Sharma, Vice President, Motorola Inc. as Country President, Motorola India Private Limited. He already serves as Cluster President, Thailand, Indonesia, Philippines and Vietnam.

This new appointment will be in addition to his existing responsibilities. Mr. Sharma has been a member of Motorolas Asia-Pacific Management Board since 1998 and has played a key role in development of Motorolas Asia-Pac strategy.

55

DATA ANALYSIS
56

Brands Used By Different Consumers:

Market Share
Nokia 3% 1% 8% 7% 3% 16% 62% Samsung LG Motorola Sony Panasonic Others

Inference:
Nokia is the market leader in the Indian Mobile handsets market. Although, other brands do exist in the market, but they have not been able to make a mark in the industry.

57

User Satisfaction Level From Different Handsets:

Satisfaction Level
100 80 60 40 20 0 95 80 73 80 85 70 Brands 85

Satisfied Users(%)

Samsung

Motorola

Panasonic

Inference: Nokia is again a leader in this category as 95 percent of Nokia users are satisfied with the handset they are using. Sony and Benq consumers are also satisfied with their handset.

Nokia

58

Benq

LG

Sony

Price To Performance Ratio (Average Ratio on a Scale of 1 to 5):

Price to Performance
5 4 3 2 1 0 Samsung Motorola Panasonic Nokia Benq LG Sony

Series1

Inference:
Here also, we can seen that Nokia users are the most Happy customers as they are satisfied with the service in respect of the price they have paid.

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COMPARISON BETWEEN NOKIA & MOTOROLA

Level Of Brand Loyalty

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 15 - 25 25 - 40 Above 40

Nokia

Motorola

The level of brand loyalty as depicted by the above diagram is very high towards a well established brand named Nokia. For a good majority of respondents across all age groups the answer to the above mentioned question was Nokia. Consumers are very brand loyal and will not switch to another one though sets with same features are there in market. They refrain from trying another brand since handsets have grown to become a durable commodity. That clearly is not good news for all prospective and new entrants in this segment, but once a market share has been grabbed the company can be sure of brand loyalty. However, it should it be noted that the level of loyalty towards a brand decreases as we move to the respondents in the higher age categories. This is true because given their demographic profiles elderly people are more likely to try something different or new as that may give them a good product at economical rates. This accounts for their decreased loyalty towards a particular brand.

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Most Preferred Brand

70% 60% 50% 40% 30% 20% 10% 0% 15 - 25 Nokia 25 - 40 Above 40 Motorola

Nokia emerges as the most preferred brand of mobile handsets for a majority of the respondents. The fact that Nokia was amongst the first major players to enter the market lends credibility to this response. Over the years it has become more popular in the younger section of the urban society owing to its aggressive marketing through large scale advertising and promotional schemes that it comes out with on a regular basis. The trend however, changes in case of the Second category of respondents, where their preference changes to Motorola products. About 60% of the respondents in this

61

age group share the common view that Motorola handsets are reasonably priced without a compromise on quality, which makes it a preferred handset.

Most Price Competitive Brand

80% 70% 60% 50% 40% 30% 20% 10% 0% 15 - 25

Nokia

25 - 40
Motorola

Above 40

Nokia has emerged out as the undisputed price leader across the board. Cost savings on account of cheaper inputs and already in - place distribution network has assisted the Nokia handsets to become more affordable. It is a common observation across all the age groups that Motorola is perceived to be more costly as compared to the other brands in the market. This can be attributed to

62

its efforts directed towards establishing itself as a premium quality brand for higher income groups and upper upper and middle upper class. Though the Motorola handsets are also highly price competitive in some segments, lack of awareness about its presence and offerings amongst the respondents could have accounted for the unfavorable response that it has received from them.

Most Quality Competitive Brand

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 15 - 25 Nokia 25 - 40 Motorola Above 40

Nokia scores well above others when it comes to quality. The perception of a majority of respondents across all age groups behold that Nokia is the most quality competitive brand when compared with others in the market. It scores well above others because according to a majority of respondents it has always met its promise of good quality. This observation further validates the general premise that Good Quality of the product really helps the brand in gaining the Confidence of the Buyers.

63

 Motorola has managed to get a favorable response from a majority of respondents in the last age group where according to about 68% of the respondents say it is of tremendous quality.

Most Effective Media Of Advertising

Television comes across as the most effective media of advertising, which is not a new fact, but what is worth considering is, that is does not really come across as being the most effective, given the high cost of booking time slots at prime time. Ads on radio, although cheaper than television, have similar levels of awareness and recall. Ads in newspapers and magazines are most cost efficient and also very effective for short bursts of Shot Gun marketing where a temporary scheme or offer needs to be advertised. All companies covered in our research have focused and invested heavily for grabbing the attention of the impressionable minds of young people and office executives. This is mainly because of the fact that these 2 categories make up for a hug chunk of the total sales of handsets. 15 25

64

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% T.V. Radio Newspaper Magazine Bill Boards Nokia Motorola

The 15-25 segment is the largest consumer of handsets. Hence it becomes

even more important for marketers undertaking brand building exercises. Nokia scores big time when it comes to influencing young impressionable

minds. Motorola too does well with some of its ads coming out with innovatively. 25 40

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% T.V. Radio Newspaper Magazine Bill Boards Nokia Motorola

65

As we move up the ages ladder the awareness across media does not

decline as much. The people of this age group make as much planned purchases of handsets as it is not impulse purchase for them. Nokia has retained its high level of brand recognition in this age group

too. Above 40

40% 35% 30% 25% 20% 15% 10% 5% 0% T.V. Radio Newspaper Magazine Bill Boards Nokia Motorola

Nokia and Motorola have similar levels of awareness in this age group.

Visibility Of The Brand

66

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 15 - 25 No 25 - 40 Yes Above 40

The visibility of the brand is considerably low in the first two age categories. This shows that a majority of respondents are not aware about the presence of Motorola in the market. In the last category the high degree of awareness about the brand can be observed. This is not a very bad news for the company as it is a given fact that the receptiveness of this group for such products is fairly low. So all in all it will be safe to comment that Motorola at the moment enjoys a moderate visibility in the Delhi region.

CONSUMER ANALYSIS ON THE BASIS OF GENDER

67

MALES:Buying Preference For Motorola, Nokia or Other Handsets

41%

14%

Motorola

45%

Nokia Other handset

Inference: Amongst our respondents, males have a slight preference for Nokia over
Motorola. They attributed this to various factors including need, quality, price etc.

Reasons To Buy Handset (For Males)

68

14% 11%

4% Need Status Symbol Convenience Product Appeal Forced to Buy

51%

20%

Inference: For male respondents, Need was the dominant factor for buying a handset,
followed by Status Symbol.

FEMALES:69

Buying Preference For Motorola, Nokia or Other Handsets

13%

Nokia Motorola Others

28%

59%

Inference: Majority of the female respondents preferred Nokia to Motorola. The

reasons were mostly that Nokia looks better, and was more price competitive.

Reasons To Buy Handset (For Females)

70

20%

2% 41% Need Status Symbol Convenience Product Appeal Forced to Buy 21%

16%

Inference: For female respondents, Need was again the most important factor for
purchase followed by Status symbol. A large number of them i.e. 20% also cited that they bought handsets because of product appeal they provide.

71

RECOMMENDATIONS & CONCLUSION

On the basis of the research and the data we have gathered from the primary and secondary sources, we can say that Motorola has the capability to make a mark in the

72

Indian Mobile Handset Market, although it will take a considerable time for it to be at par with the market leader (Nokia). To achieve its goals, Motorola has to do a lot of effort regarding its products, prices, promotions, distribution techniques, consumer selection and total marketing strategy.

WITH RESPECT TO PRODUCT STRATEGY:Motorola needs to focus on which all models to continue with and the models that you should withdraw from the market. It should continue only with that models which have the capability to compete with other good brands. Also, it needs to see which other new models it can introduce in the market. As it is selling 38 models in the US and only 16 models in India, it needs to check which other models can be introduced in the market keeping in mind the interests and the purchasing power of the Indian consumers. This will give the consumers an ample choice to choose from which is not the case at the moment. As consumers only have a limited choice to choose from in a particular price range, they look for other brands even if they are interested in Motorola. While comparing the handsets of Motorola and Nokia, we came to know that Motorola handsets are considered to be bulky as was the case with the earlier models. So Motorola needs to change this perception of consumers. Also we found that Motorola handsets are not that much appealing for the female customers. So, they should introduce those

products that can Attract The Female Customers as this is a category of the consumers which is growing at a fast pace now after the improvement in the life style and purchasing power of women in India. Another edge that Nokia has over Motorola is that their handsets are very user friendly. They are built as such as a new user can also use it with ease. So, Motorola also needs to think into this aspect if they can also introduce such mobile handsets.

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INTRODUCTION OF LATEST TECHNOLOGY AND FEATURES UNAVAILABLE WITH THE COMPETITOR: Motorola has tied up with Apple Computer to launch a mobile phone that will incorporate Apples iTunes software. The development marks a melding of two of the digital eras most popular devices, the cell phone and the iPod, which will help in downloading songs from the Internet or transferring from CDs. This phone would be marketed by Cingular Wireless. It would include iTunes software, which helps power the iPod. The software will allow people to transfer songs from a PC to mobile phone, and then listen to songs, via headphone. So, the crux of the matter is that Motorola should bring Product differentiation if it wants to complete with other brands. As Nokia has firmly rooted in the minds of the consumers, Motorola has to find ways like this which gives the consumers some incentives to switch over from the brand which is the largest selling brand in the world which offers a very good quality.

WITH RESPECT TO PRICE STRATEGY:As far is pricing is concerned, Motorola cannot do much on this aspect as they are already competitively priced. But along with bringing new models in the market, they should follow a pricing strategy which give the consumers at least two three variety of models to choose from in a particular price change. Also, for a little period of time (6 months), Motorola, if possible should go work Break Even Profits by providing a greater profit percentage to the dealers by lowering down their margins. This will help the company as shopkeepers would have an incentive in selling these handsets.

WITH RESPECT TO PLACE (DISTRIBUTION) STRATEGY:

74

As we have found out in our survey of various dealers and shops located in various parts of the city and NCR, the distribution strategy needs to be completely remodeled. Motorola seriously needs to think on this aspect it is one of the major reasons for the meager number of sales of Motorola. They need to make a systematic model by which they should assign different representatives to visit all the shops and dealers located all over the city and NCR region to make a presentation of the various models available and their respective features. They should make clear about the discounts available for a consumer and the profit percentage to the shopkeeper.

SOME PROMOTION STRATEGIES: Motorola can promote by placing the Big Size Dummy Designs of their sets on

various public places. So that more people can come to know about various models available in the market. Awareness among consumers about the tie up with HUTCH and its various schemes

through various promotions. Most of the consumers are aware of tie up between Airtel and Nokia but not with the tie up of Motorola. More tie ups with Reliance and Tata Indicom. E.g. SAMSUNG is existing in the

market due to its major participation with such CDMA companies to make its brand popular. And the company should advertise as much as possible about these offers as they will be of no use otherwise. Company should adopt the methods of advertising that are suitable and acceptable to

Indian Consumers like NOKIA people did in case of 1100 set [Made for India]. They presented the above set with the help of a truck driver. Motorola should also focus on building and promoting handsets specifically made for Rural Markets. As it is a fast growing market which is increasing year by year, 75

Motorola should promote all its low price handsets, as these people are not much concerned with the features and look of the handsets.

OTHER POSSIBLE STRATEGIES: The company should improve its service quality because as per our survey, some

consumers have faced trouble resolving their issues and if resolved, the time taken was more than expected. All over the world if we look at Motorola as a brand its a good brand. And it is

earning huge revenue through its various businesses running across the globe. So to increase its market share in India, company should plan long term strategy without looking at the short term profits. This can be supported by the fact stated by CEO Ed. Zander in his speech in

India. He noted there is a lot of wealth in India. A lot of people with money. India has a huge potential market.

APPENDIX AND ANEXURES

The Consumer Survey Questionnaire
Dear Sir/ Madam, I, Ijesh Kasi, a student of BBA, 3rd Semester, Maharaja Surajmal Institute is conducting a survey on consumer dynamics relating to Mobile Handsets. Kindly spare a moment or two for us. We assure you that this survey is for purely

76

academic purposes and that all information provided will be kept strictly confidential. Thank you.
Name Age ........................... ........................... Occupation ............................... Gender .............................. Area of Residence .....................

Income ...

Your information will be kept confidential and will not be submitted anywhere else.

1. Which Mobile Handset Do You Use?

Nokia Samsung LG Motorola Sony Panasonic Others

.................... .................... .................... . .................... .................... ....................

2. How Do You Rate The Satisfaction Level From Different Handsets?

Nokia Samsung LG Motorola Sony Panasonic Others

.................... .................... .................... . .................... .................... ....................

3. Rank On The Basis Of Price To Performance Ratio ?

Nokia Motorola Samsung LG

.................... .................... .................... ....................

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Sony

....................

4. Whom Do People Buy Handset For?

Self Kids Friends

COMPARISON BETWEEN NOKIA & MOTOROLA:Q5. Which Brand Youll Buy Given Same Features In All Major Handset Models Available?
Nokia Motorola

Q6. Which Is The Most Preferred Brand Amongst The Two?

Nokia Motorola

Q7. Which Is The Most Price Competitive Brand?

Nokia Motorola

Q8. Which Is The Most Quality Competitive Brand?

Nokia Motorola

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Q9. Which Brand Has The Optimum Product Variety?

Nokia Motorola

Q10. Which Brand Has The Best Distribution Network?

Nokia Motorola

Q11. Which Brand Is Having The Most Effective Media of Advertising?

Nokia Motorola

Q12. Is The Brand Visible In The Market?

Yes No

CONSUMER ANALYSIS ON THE BASIS OF GENDER:MALES:Q13. Which Brand You Choose While Buying A New Handset?

Nokia

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Motorola Others

Q14. Why Do Males Buy Handset?

Need Status Symbol Convenience Product Appeal Forced To Buy

FEMALES:Q15. Which Brand You Choose while Buying A New Handset?

Nokia Motorola Others

Q16. Why Do Females Buy Handset?

Need Status Symbol Convenience

BIBLIOGRAPHY AND REFERENCES

BOOKS 1. Kotler, P.(2003) Marketing Management 11th ed. New Jersey:Prentice Hall.

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2. Etzel Michael J., Walker Bruce J., Stanton Willianm J., (1977)Marketing, 11th ed. (McGraw Hill) WEBSITES 3. www.motorola.com 4. www.motorola.com/in 5. www.timesofindia.com 6. www.economictimes.com 7. www.agencyfaqs.com 8. www.indiagsm.com 9. www.nokia.com MAGAZINES 10. Business world REFERENCES 11. ARC (2004), Worldwide Market Analysis & Strategic Outlook 2004 2009, Future Mobile Handsets, 6th Edition

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