CHAPTER 1: INTRODUCTION

1.1 INTRODUCTION –
. Today, mobile handsets have not only metamorphosed from the huge briefcase size
devices of the 1980s to the ultra slim phones, but have also moved beyond being mere
devices to make and receive calls. with more & more features and technologies being
added, mobile handsets are on the way to be a single device serving the purpose of a
phone, camera, MP3 player,GPRS ,games, television and a lot more.
India has been the largest emerging mobile handset market in the last one year, surpassing
China and these super gadgets have already made inroads in the Indian market.
In India, there are already 250 million mobile customers, with 7 million more people
every month becoming mobile users. In 2007 itself, the mobile market in India grew to
120 million and this growth is expected to cross 180 million units this year. with such an
astonishing no. of mobile users in India, and just a little over 31 million PCs,mobile
handsets will soon replace the personal computer.

In India, Nokia, Sony Ericsson, and Motorola are the frontrunners, along with a plethora
of players like Samsung, LG, Spice and Fly with other small players looking to grab
place for them.

Nokia, over the years, has been tasting success with its focused product range,
competitive pricing and good Distribution Network. Sony’s brand identity of high
memory phones & phones with unique imaging solutions has been built with aggressive
advertising and marketing strategy, while Motorola has focused on building an Indian
appeal and strong Indian connection with products targeting the youths. Right from
opening up experience stores to branded retail shops, handsets makers are leaving no
stones unturned. While Spice mobiles and fly mobiles are aiming mainly at bottom of the
pyramid. Though, Spice is also attracting customers through its dual mobiles like D-88n.

-1-
Mobile phone giant Nokia’s market share in India has increased to 62.5 % 2007-08 from
53.6 % in the previous year.Nokia’s revenue from the mobile segment stood at Rs. 15,000
crore, up by 30.6 %, compared to Rs. 11,486 crore in 2006-07.the company’s increased
market share seems to have come from the LG, Motorola and other players who have lost
significant shares.

The market leader is followed by Sony Ericsson and Samsung at second and third place
with 12.8 % and 7% market share respectively.

Motorola which is planning to sell the handset business also saw its share erode to just
5.9%, losing revenue by almost 50%.while LG is the biggest loser with a market share of
just 3.41% and the comers like Spice have only 1.7% stake,thanks to its good position in
Karnataka and Punjab, being the second and fifth largest handsets provider there.

India’s telecom equipment revenue touched Rs. 95407 crore in 2007-08 driven by the
rising demand for mobile handsets and wireless infrastructure expansion by service
providers.

In telecom equipment, Ericsson had revenue of Rs. 8,000 crore. Nokia Siemens network,
the merged entity between Nokia and Siemens had revenues of Rs.7779 crore and Alcatel
Lucent posted revenues of Rs.7,000 crore.

“While Nokia and Ericsson retained their positions as top players, Nokia Siemens
Network, struck major deals in the wireless segment. Expansion of mobile networks And
broadband infrastructure and the introduction of 3G technology will sustain the growth in
the current year.”

Out of the total revenue of Rs. 95,407 crore, handsets business was Rs. 24,000 crore.the
phone segment contributed nearly one fourth to the total telecom equipment industry, Rs.
25,203 crore recording a growth of 7 per cent.

-2-
In the handset segment, revenues of mobile handsets manufacturer grew 12% to
Rs.24,003 crore, while the fixed handsets sales decreased by 41% to Rs. 12,00 crore, over
the same period last year.

The Indian handset market recorded a 33% growth by volume with 95.6 million pieces
sold during the year against 71.8 million in the same period in the previous year.

Of the total handsets sold, 68.3 million were GSM phones and 27.3 million phones are
based on CDMA technology

Youths have been the main target for the converged mobile phones. Handset makers have
been redefining the ways to crack the youth segment which is also the primary target for
the replacement market as young people have a tendency to change their handsets often.
This has seen companies launching new set of products every six months.

1.2: PROBLEM IDENTIFICATION

The objective of our research is “to check the market potential for mobile phones in
different price segments”. Wherein, I compared the sales of different mobile phones and
tried to find out the models of Spice having maximum sales and reasons for the low sales
of Spice compared to Samsung and Nokia.

-3-
CHAPTER 2: RESEARCH METHODOLOGY

2.1 INTRODUCTION
This chapter aims to understand the research methodology establishing a framework of
evaluation and revaluation of primary and secondary research. The techniques and
concepts used during primary research in order to arrive at findings; which are also dealt
with and lead to a logical deduction towards the analysis and results

2.2 RESEARCH DESIGN

The research design applied here was exploratory research and descriptive research.
Exploratory Research is one in we don’t know about the problem, we have to find about
the problem and then work on solving the problem. Whereas in case of descriptive
research, we know the problem, we just have to find the solution to the problem.
Generally descriptive research design is applied after exploratory research design.
Here, through primary research we came to know bout the sales for different mobiles ,
customer likings, problems faced y dealers and reasons for low sales of Spice mobiles.
While through secondary research, I got the valuable data that I used for the trend and
swot analysis.

2.3 SAMPLE SIZE

To complete the research, the questionnaire was filled by 100 respondents, which were
randomly selected. The respondents were the mobile dealers from the East Delhi
region.

-4-
Research tool

The purpose is to first conduct a intensive secondary research to understand the major
players in the market, their sales, studying their handsets and their features, & full impact
and implication of this on their market and the customers. This helped us in the primary
research to ask the questions which are still unanswered & we can get only through
primary study.

SPSS & EXCEL has been used to fill in and to analyze the data collected.

-5-
CHAPTER 3: DATA COLLECTION

3.1 DATA COLLECTION:

Both primary and secondary data have been collected very vigorously
Primary data: it is basically collected by getting the questionnaire filled by the
respondents, randomly selected for the research.
Secondary data: it is collected by the study of enormous material available on the
company websites and the previous researches related to mobile industry. The data was
also collected from the magazines and newspapers.

3.2 QUESTIONNAIRE METHOD

The questionnaire method has come to the more widely used and economical means of
data collection. The common factor in all varieties of the questionnaire method is this
reliance on verbal responses to questions, written or oral. We tried to make sure the
questionnaire was easy to read and understand to all spectrums of people in the sample. It
was also important to respect the samples time and energy hence the questionnaire was
designed in such a way, that its administration would not exceed 4-5 mins. These
questionnaires were personal administered.
Sample size: 100 respondents
Basis of selection: randomly selected
No. of questions: 15
Area: East Delhi

-6-
CHAPTER 4 : DATA ANALYZATION AND FACT FINDINGS –

4.1 PRIMARY DATA:

Q1. TABLE FOR Ist VARIABLE:

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

Cumulative
Frequency Percent Valid Percent Percent
Valid Nokia,samsung 1 1.0 1.0 1.0
Nokia,samsung,
9 9.0 9.0 10.0
Spice
Nokia,Spice,Fly 6 6.0 6.0 16.0
Nokia,Samsung,
83 83.0 83.0 99.0
Spice,Fly
Nokia,Fly 1 1.0 1.0 100.0
Total 100 100.0 100.0

-7-
 100

80

60
C
n
u
o
t

40

20

0
Nokia,samsung Nokia,Spice,Fly Nokia,Fly
Nokia,samsung,Spice Nokia,Samsung,Spice,Fly
1.Out of the following,which company's mobiles have you
placed in your shop?

INTERPRETATION:

From the data & table, it is interpreted that

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

-8-
Q.2 TABLE FOR IInd VARIABLE:

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

Cumulative
Frequency Percent Valid Percent Percent
Valid Less than Rs.
22 22.0 22.0 22.0
3,000
between
R.3,000 & Rs. 60 60.0 60.0 82.0
8,000
Between Rs.
8,000 & Rs. 15 15.0 15.0 97.0
13,000
More than Rs.
3 3.0 3.0 100.0
13,000
Total 100 100.0 100.0

-9-
 60

50

40

30
C
n
u
o
t

20

10

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

INTERPRETATION:

• 60% of dealers have maximum sales of the mobiles ranging between Rs. 3,000 &
8,000 on their shop which shows that customers in East Delhi don’t like to spend
too high on mobiles.
• sales for the mobile with price less than Rs. 3,000 is not too high , being 22%
indicating that people though not spending too much on premium mobiles, buy
mobiles with features like FM, MP3 that cost higher than Rs. 3,000.

- 10 -
3. TABLE FOR 3rd VARIABLE:

3. Do you have Spice mobile on your shop?

Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 98 98.0 98.0 98.0
No 2 2.0 2.0 100.0
Total 100 100.0 100.0

100

80

60
C
n
u
o
t

40

20

0
Yes No
3.Do you have Spice mobile on your shop?

- 11 -
INTERPRETATION:

• 98% 0f the dealers have Spice mobile in their shops. as it has been 4-5 years since
its presence in Delhi and now, people do recognize them.
• Rest 2% have not placed Spice mobile in their shop and these dealers are the one
who deal on very small scale in the regions of Mansarovar Park near Shahdra.

- 12 -
4. TABLE FOR 4th VARIABLE

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

Cumulative
Frequency Percent Valid Percent Percent
Valid Less than 6
7 7.0 7.1 7.1
months
Between 6-12
32 32.0 32.7 39.8
months
Betwen 12-18
33 33.0 33.7 73.5
months
More than 18
26 26.0 26.5 100.0
months
Total 98 98.0 100.0
Missing System 2 2.0
Total 100 100.0

- 13 -
 40

30

20
C
n
u
o
t

10

0
Less than 6 months Between 6-12 Betwen 12-18 More than 18
months months months
4.How long has it been since you placed spice mobile on your
shop?

INTERPRETATION:

• 32.7% of the shopkeepers are selling Spice mobiles since last 1year while 33.7%
dealers are selling it for last 1.5 years.
• While only 26% shopkeepers have placed it more than 1.5 years ago. This is also
the main reason for low brand awareness and low sales for the Spice phones.

- 14 -
5. TABLE FOR 5th VARIABLE

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

Cumulative
Frequency Percent Valid Percent Percent
Valid D-88n 18 18.0 18.4 18.4
C-810 33 33.0 33.7 52.0
S-545 13 13.0 13.3 65.3
variable 34 34.0 34.7 100.0
Total 98 98.0 100.0
Missing System 2 2.0
Total 100 100.0

40

30

20
C
n
u
o
t

10

0
D-88n C-810 S-545 variable
5.Which model of Spice has the maximum sales on your shop?

- 15 -
INTERPRETATION:

• C-810 has the maximum sales in the East Delhi region with sales of about 33.7%
which could have even a lot better results had the production of these mobiles
would not have stopped.
• D-88n also has 18.7% sales showing the people’s attitude towards the new
features like dual sim as in this mobile. These mobiles have their main sales in the
regions like Laxmi Nagar, Krishna Nagar, and Preet Vihar.

- 16 -
6. TABLE FOR 6th VARIABLE:

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

Cumulative
Frequency Percent Valid Percent Percent
Valid Nokia 100 100.0 100.0 100.0

INTERPRETATION:

• As expected, there is no competitor for Nokia when it comes to the Brand

awareness. People buy the handsets and accessories on its name. They have a
huge faith in it.

- 17 -
7. TABLE FOR 7th VARIABLE:

7. Which mobile company has the best looks?

Cumulative
Frequency Percent Valid Percent Percent
Valid Nokia 19 19.0 19.0 19.0
Samsun
81 81.0 81.0 100.0
g
Total 100 100.0 100.0

100

80

60
C
n
u
o
t

40

20

0
Nokia Samsung
7.which mobile company has the best looks?

- 18 -
INTERPRETATION:

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

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

- 19 -
8. TABLE FOR 8th VARIABLE:

8.which mobile company has the best sound?

Cumulative
Frequency Percent Valid Percent Percent
Valid Nokia 21 21.0 21.0 21.0
Samsun
1 1.0 1.0 22.0
g
Spice 77 77.0 77.0 99.0
Fly 1 1.0 1.0 100.0
Total 100 100.0 100.0

80

60

40
C
n
u
o
t

20

0
Nokia Samsung Spice Fly
8.which mobile company has the best sound?

- 20 -
INTERPRETATION:

• Spice mobile emerged as the leader for being the company with the best sound
against the competitors like Nokia and Samsung for the same price segment.
• Spice has been rated no. one in this category by 77% dealers.

- 21 -
9. TABLE FOR 9th VARIABLE:

9. which mobile company has the best battery backup?

Cumulative
Frequency Percent Valid Percent Percent
Valid Nokia 98 98.0 98.0 98.0
Spice 2 2.0 2.0 100.0
Total 100 100.0 100.0

100

80

60
C
n
u
o
t

40

20

0
Nokia Spice
9.which mobile company has the best battery backup?

- 22 -
INTERPRETATION:

• As expected, almost everyone favoured Nokia to be the mobile with best battery
backup as 98 out of 100 favoured it.
• While Spice got 2 favours and Samsung & Fly got none.

- 23 -
10. TABLE FOR 10th VARIABLE

10.which mobile company has the lowest price?

Cumulative
Frequency Percent Valid Percent Percent
Valid Spice 71 71.0 71.0 71.0
Fly 29 29.0 29.0 100.0
Total 100 100.0 100.0

80

60

40
C
n
u
o
t

20

0
Spice Fly
10..which mobile company has the lowest price?

- 24 -
INTERPRETATION:

• The data shows that dealers feel the Spice mobile and Fly mobiles have been
offering the best price to the customers and that too without making relaxation in
the features.
• The Spice mobile has got 71 favours while the Fly mobile got the rest 21. And the
Nokia and Samsung got none. which shows that the strategies that Spice and Fly
are opting going well.

- 25 -
11. TABLE FOR 11th VARIABLE:

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

Cumulative
Frequency Percent Valid Percent Percent
Valid Looks 26 26.0 26.0 26.0
sound 1 1.0 1.0 27.0
Brand 73 73.0 73.0 100.0
Total 100 100.0 100.0

80

60

40
C
n
u
o
t

20

0
Looks sound Brand
11.in case of low sales, what is the main reason for low sales
of Spice?

- 26 -
INTERPRETATION:

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

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

- 27 -
12. TABLE FOR 12th VARIABLE:

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

Cumulative
Frequency Percent Valid Percent Percent
Valid Increase the
25 25.0 25.0 25.0
features
Promotions 56 56.0 56.0 81.0
own service
6 6.0 6.0 87.0
centers
Others 13 13.0 13.0 100.0
Total 100 100.0 100.0

60

50

40

30
C
n
u
o
t

20

10

0
Increase the Promotions own service Others
features centers
12..According to you, what should the Spice company do to
increase their sales?

- 28 -
INTERPRETATION:

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

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

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

- 29 -
13.TABLE FOR 13th VARIABLE:

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

Cumulative
Frequency Percent Valid Percent Percent
Valid company
executive did 1 1.0 50.0 50.0
not approach
Brand name 1 1.0 50.0 100.0
Total 2 2.0 100.0
Missing System 98 98.0
Total 100 100.0

1.0

0.8

0.6
C
n
u
o
t

0.4

0.2

0.0
company executive did not approach Brand name
13.If you did not place Spice mobile on your shop, give
reason:

- 30 -
INTERPRETATION:

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

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

- 31 -
14. TABLE FOR 14th VARIABLE:

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

Cumulative
Frequency Percent Valid Percent Percent
Valid less than 10
69 69.0 69.0 69.0
years
10-20 years 7 7.0 7.0 76.0
can't say 24 24.0 24.0 100.0
Total 100 100.0 100.0

70

60

50

40
C
n
u
o
t

30

20

10

0
less than 10 years 10-20 years can't say
14.According to you, how long will it take for spice mobile to
give tough competition to Nokia & Samsung in the metro
cities?

- 32 -
INTERPRETATION:

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

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

- 33 -
 INTERRELATIONS BETWEEN DIFFERENT VARIABLES

BETWEEN
Out of the following, which company’s Which price range of mobiles has the
mobiles have you placed in your shop? maximum sales on your shop?

Count

2.Which price range of mobiles have the maximum sales

on your shop?
between Between Rs.
Less than R.3,000 & 8,000 & Rs. More than Total
Rs. 3,000 Rs. 8,000 13,000 Rs. 13,000
1.Out of the following, Nokia,samsung 0 1 0 0 1
which company's mobiles Nokia,samsung,Spice 2 5 1 1 9
have you placed in your
Nokia,Spice,Fly 1 4 1 0 6
shop?
Nokia,Samsung,Spice,Fly 19 49 13 2 83
Nokia,Fly
0 1 0 0 1

Total 22 60 15 3 100

- 34 -
 Bar Chart

50 2.Which price range

of mobiles have the
maximum sales on
your shop?
40 Less than Rs.
3,000
betwen R.3,000 &
Rs. 8,000
Between Rs.
30 8,000 & Rs.
13,000
More than Rs.
C
n
u
o
t

13,000
20

10

0
Nokia,samsung Nokia,Spice,Fly Nokia,Fly
Nokia,samsung,Spice Nokia,Samsung,Spice,Fly
1.Out of the following,which company's
mobiles have you placed in your shop?

INTERPRETATION:

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

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

- 35 -
. BETWEEN
Out of the following, which company’s Do you have Spice mobile on your shop?
mobiles have you placed in your shop?

Count
3. Do you have Spice
mobile on your shop?
Total
Yes No
1. Out of the following, Nokia,samsung 0 1 1
which company's Nokia,samsung,Spice 9 0 9
mobiles have you Nokia,Spice,Fly 6 0 6
placed in your shop? Nokia,Samsung,Spice,Fly 83 0 83
Nokia,Fly

0 1 1

Total 98 2 100

- 36 -
 Bar Chart

100 3.Do you have

Spice mobile on
your shop?
Yes
80 No

60
C
n
u
o
t

40

20

0
Nokia,samsung Nokia,Spice,Fly Nokia,Fly
Nokia,samsung,Spice Nokia,Samsung,Spice,Fly
1.Out of the following,which company's
mobiles have you placed in your shop?

INTERPRETATION:

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

- 37 -
 BETWEEN
Which price range of mobiles has the Which model of Spice has the maximum
maximum sales on your shop? sales on your shop?

Count
5. Which model of Spice has the maximum sales on
your shop?
Total
D-88n C-810 S-545 variable
2. Which price range Less than Rs. 3,000 0 8 3 11 22
of mobiles have the between R.3,000 &
maximum sales on Rs. 8,000 0 25 10 23 58
your shop?
Between Rs. 8,000 &
Rs. 13,000 15 0 0 0 15
More than Rs. 13,000 3 0 0 0 3
Total 18 33 13 34 98

- 38 -
 Bar Chart

25 5.Which model of
Spice has the
maximum sales on
your shop?
20 D-88n
C-810
S-545
variable
15
C
n
u
o
t

10

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

INTERPRETATION:

• The dealers with the maximum sales of the mobiles ranging below 3,000 had no
sales of D-88n.
• The dealers with the sales of above Rs. 8,000 mobiles have the sales of the D-88n
mobiles while dealers with sales of mobiles ranging in between Rs. 3,000 and Rs.
8,000 have maximum sales of C-810 model of Spice.

- 39 -
 BETWEEN
How long has it been since you placed Which model of Spice has the maximum
Spice mobile on your shop? sales on your shop?

Count
5. Which model of Spice has the maximum sales on
your shop?
Total
D-88n C-810 S-545 variable
4. How long has it been Less than 6 months 2 2 1 2 7
since you placed spice Between 6-12 months 7 10 6 9 32
mobile on your shop?
Between 12-18 months 5 15 3 10 33
More than 18 months
4 6 3 13 26

Total 18 33 13 34 98

- 40 -
 Bar Chart

15 5.Which model of
Spice has the
maximum sales on
your shop?
12 D-88n
C-810
S-545
variable
9
C
n
u
o
t

0
Less than 6 Between 6-12 Betwen 12-18 More than 18
months months months months
4.How long has it been since you placed
spice mobile on your shop?

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

- 41 -
. BETWEEN

How long has it been since you placed In case of low sales, what is the main
Spice mobile on your shop? reason for low sales o Spice?

Count
11. in case of low sales, what is the
main reason for low sales of Spice?
Total
Looks sound Brand
4.How long has it been Less than 6 months 3 0 4 7
since you placed spice Between 6-12 months 11 1 20 32
mobile on your shop?
Between 12-18 months 6 0 27 33
More than 18 months
6 0 20 26

Total 26 1 71 98

- 42 -
 Bar Chart

30 11.in case of low

sales, what is the
main reason for low
sales of Spice?
25
Looks
sound
Brand
20

15
C
n
u
o
t

10

0
Less than 6 Between 6-12 Betwen 12-18 More than 18
months months months months
4.How long has it been since you placed
spice mobile on your shop?

INTERPRETATION:

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

- 43 -
 . BETWEEN

How long has it been since you placed According to you, what should the Spice
Spice mobile on your shop? company do to increase their sales?

12..According to you, what should the Spice company do to

increase their sales?
Increase the own service Total
features Promotions centers Others
4.How long has it been Less than 6 months 0 2 2 3 7
since you placed spice Between 6-12 months 8 20 0 4 32
mobile on your shop?
Betwen 12-18 months 9 21 1 2 33
More than 18 months
6 13 3 4 26
Total 23 56 6 13 98
Count

- 44 -
 Bar Chart

25 12..According to
you, what should
the Spice company
do to increase their
20 sales?
Increase the
features
Promotions
15 own service
centers
Others
C
n
u
o
t

10

0
Less than 6 Between 6-12 Betwen 12-18 More than 18
months months months months
4.How long has it been since you placed
spice mobile on your shop?

INTERPRETATION:

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

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

- 45 -
. BETWEEN
In case of low sales, what is the main According to you, what should the Spice
reason for low sales o Spice? company do to increase their sales?

Count
12..According to you, what should the Spice company do to
increase their sales?
Increase the own service Total
features Promotions centers Others
11.in case of low Looks 9 8 2 7 26
sales, what is the sound 0 0 0 1 1
main reason for
Brand
low sales of
Spice? 16 48 4 5 73

Total 25 56 6 13 100

- 46 -
 Bar Chart

50 12..According to
you, what should
the Spice company
do to increase their
sales?
40
Increase the
features
Promotions
own service
30 centers
Others
C
n
u
o
t

20

10

0
Looks sound Brand
11.in case of low sales, what is the main
reason for low sales of Spice?

INTERPRETATION:

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

• While out of the 26 who think that looks are responsible for low sales,9 dealers
said that company should increase the features in the mobile and 8 said that Spice
should promote on a large scale.
• It concludes that by promoting the mobile through different ways, company may
come over its low sales.

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 BETWEEN
How long has it been since you placed According to you, what should the Spice
Spice mobile in your shop? company do to increase their sales?

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

less than Total

10 years 10-20 years can't say
4. How long has it been Less than 6 months 5 1 1 7
since you placed spice Between 6-12 months 22 1 9 32
mobile on your shop?
Between 12-18 months 22 2 9 33
More than 18 months
20 3 3 26
Total 69 7 22 98

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 Bar Chart

25 14.According to
you, how long will it
take for spice
mobile to give tough
20 competition to
Nokia & Samsung
in the metro cities?
less than 10 years
15 10-20 years
can't say
C
n
u
o
t

10

0
Less than 6 Between 6-12 Betwen 12-18 More than 18
months months months months
4.How long has it been since you placed
spice mobile on your shop?

INTERPRETATION:

• There are 20 dealers who have Spice mobile on their shop since last 1.5 years and
feel that within 10 years Spice mobile will be able to overtake Samsung and will
give competition to Nokia.
• Infact the dealers who are keeping Spice mobiles since 6 months to 18 months are
44 in no. and have an opinion that Spice will Strengthen its position

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VOLUME OF SALES OF THE MOBILE COMPANIES (IN %)

COMPANY SALES(BY VOLUME)

NOKIA 67%
SAMSUNG 16%
SPICE 11%
FLY 6%

Volume of sales for Mobile Phones In East Delhi

6%

11%

Nokia
16% Samsung
Spice
Fly

67%

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INTERPRETATION:

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

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4.2 SECONDARY DATA:

4.2.1 ANALYSIS OF THE CURRENT MARKET SHARES OF MOBILE

COMPANIES:

COMPANY WISE MARKET SHARE IN INDIA:

COMPANY MARKET SHARE

NOKIA 62.5
SONY 12.8
SAMSUNG 7
MOTOROLA 5.9
LG 3.41
SPICE 1.7
OTHERS 6.69

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 Market Share for Mobile Companies In India

6.69%
1.70%
3.41%

5.90%

Nokia
7% Sony
Samsung
Motorola
LG
Spice
12.80% 62.50% Others

INTERPRETATION:

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

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 4.2.2: NO. OF FUTURE MOBILE SUBSCRIBERS IN INDIA:

1000

900
No.of mobile subscribers(in million)

800

700

600

500 Series1

400

300

200

100

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

Source: United Nations Population division publication

INTERPRETATION:

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

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

SPICE MOBILE:

ANNUAL TREND
NET SALES(in VALUE(in
YEAR million) million)
2002-03 1031 923.4
2003-04 1395 1364.7
2004-05 1647 1806
2005-06 2044 2247.3
2006-07 2913 2688.6
2007-08 3129.9
2008-09 3571.2
2009-10 4012.5
2010-11 4453.8
2011-12 4895.1

6000

5000

4000

ANNUAL
3000
TREND VALUE

2000

1000

0
2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011-
03 04 05 06 07 08 09 10 11 12

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INTERPRETATION:

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

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 4.2.4: SWOT ANALYSIS

STRENGTHS:

• Telecommunication sector is one of the major sectors to contribute maximum to

the nation’s economy.

• India because of market oriented stable economy, availability of skilled and cheap
manpower and raw material truly becomes one of the favorite destinations of
mobile sector.
• Telecom sector growing at a rapid pace.
- India has the highest growth rate in the world.
- India set to become IInd largest wireless network in the world after China.
• Strong telecom regulations in TRAI and several experienced players like Nokia,
Samsung Sony offer the best product to consumers with the latest technology and
competitive price.

WEAKNESSES:

• Indian teledensity (24.63%in January 2008) has still a fair way to go before it
catches up with the developed nations (60%-80%).
• Lack of Infrastructure in semi-rural areas which makes it difficult to make inroads
into this mkt. segment.
• Sluggish way of reform process.

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OPPORTUNITIES:

• On an average, 7 to 8 million subscribers added every month. India has crossed

the 250 million mark with the addition of 8.53 million mobile subscribers in
February, 2008.
• INDIA has the largest proportion of population below 35 years,70% potential
buyers which means that 130 million people will get added to the working
population between 2003 and 2009
• Already 20% of the mobile users in India access Internet through mobiles. So,
mobiles with the technologies like this along with others like mobile navigation
and trekking will more than double its subscribers in next 3-4 years.

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CHAPTER 5: CONCLUSIONS & RECOMMENDATIONS:

5.1: CONCLUSION:

FROM PRIMARY DATA:

• 60% dealers have the maximum sales for the mobiles ranging between Rs. 3,000
and 8,000 i.e. Spice mobile has a good market potential in East Delhi since they
have maximum offerings in this price segment only.
• C-810 has good sales of about 33.7% and in fact D-88n which is a new offering
got a good response with 18.4% from the survey done on 100 respondents as
Spice is the Ist to offer dual sim concept.
• Nokia tops the table in Brand awareness with all 100% dealers support and in
infact Battery backup with 98%.
• Samsung was chosen to be the mobile with the best looks and Spice being the
cheapest mobile without compromising on features.
• The Spice mobile lacks in the brand awareness with 73% dealers thinking it to be
the reason for its low sales.23% also feel that it hasn’t got lucrative looks which is
a must to attract youth customers.Thus, they must work on promotions by PAN
India movement and should offer some stylish mobiles.
• Moreover, the company should send their company executives to every dealer in
order to offer Spice mobile in each and every corner to all customers. As there are
still many shops which don’t have a Spice mobile because executives did not
approach them.
• It is concluded that within 10 years, the Spice mobile should overtake the likes of
Samsung and Motorola and will occupy the same position as in Karnataka.
• From the survey done for the 4 mobilesNokia had the maximum of 67% sales,
Samsung 16% while Spice and fly 11% and 6% respectively. shows that people
have a huge faith in Nokia mobile but their mindset is changing with some good

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

FROM SECONDARY DATA:

• The trend analysis for the forecasted sales for Spice mobile shows that it will
double its sales in 2011-12 and will reach Rs. 5,000million.
• The forecast for the no. of mobile subscribers in India interprets that it will reach
over 200 till 2008-09 and will surpass 300 mark by 2011-12.
• According to the current market share for mobile companies in India, Nokia is the
uninterrupted leader with 62.50% share. Sony Ericsson holds the second position
with 12.80% share while Spice mobile has 1.70% market share having their
presence in limited areas.

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5.2: RECOMMENDATIONS:

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

• Spice mobile should not stop the production of mobiles at a time when they
are having the maximum sales for them like they did with C-810 model. There
was a good demand for the model and thus, Spice should provide the stock to
the distributors.
• The company should work on its brand building if it really want to match the
likes of Nokia and infact should work on its models looks to catch the
attention of youths.
• The company’s distribution network is also the weak link since there are only
two distributors in the big city like Delhi. And no distributor in the attached
NCR regions likes Gurgaon and Ghaziabad which have a good market
potential.
• The company should open their own service centers as the customers face
problems to get their phones serviced in Hotspot which already offers service
for a large no. of players like Samsung , Nokia LG , Sony, and Fly.
• The company may offer some attractive offers with their mobiles like a Lucky
Draw winner to have a date with Spice’s brand Ambassador Katrina Kaif or
the winner’s photo to be displayed on one of its model’s box. That may cause
a sudden rise in sales.

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APPENDICES

Questionnaire for dealers

Dear Respondent,
This questionnaire is meant for the purpose of research on “To check the mkt. potential of
mobile phones in different price segments. ”meant for the continuous evaluation,
marketing research & Report Preparation for Spice Companies Ltd.

1. Out of the following which company’s mobiles have you placed in your shop?s
a) Nokia, Samsung
b) Nokia, Samsung, Spice
c) Nokia, Spice, Fly
d) Nokia, Samsung, Spice, Fly

2. What are the average monthly sales (by volume) for these mobiles on your shop?
a) Nokia ………
b) Samsung ………
c) Spice ………
d) Fly ……….

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

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4. Do you have Spice mobile on your shop?
a) Yes b) No

If yes,

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

6. Which model of spice has the maximum sales on your counter?

a) D-88n b) C-810 c) S-545 d) variable

7. According to you, which company’s mobiles have the maximum brand

awareness:
a) Nokia ………
b) Samsung ………
c) Spice ………
d) Fly ……….

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

a) Nokia ………
b) Samsung ………
c) Spice ………
d) Fly ……….

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 9. Which company’s mobiles have the best sound:
a) Nokia ………
b) Samsung ………
c) Spice ………
d) Fly ……….

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

a) Nokia ………
b) Samsung ………
c) Spice ………
d) Fly ……….

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

a) Nokia ………
b) Samsung ………
c) Spice ………
d) Fly ……….

12. In case of low sales, which is the main reason for low sales
of Spice?
a) looks b) sound c) brand d) after sales service

13. According to you, what should the spice company do to

increase their market share?
a) Increase features b) promotions c) own service centre d) others

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

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

a) Less than 10 years

b) 10- 20 years
c) More than 20 years
d) Can’t say

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MONTHLY SALES (BY VOLUME) OF MOBILE PHONES FOR THE DEALERS:

Nokia Samsung Spice Fly

Arora mobile phone 80 40 7 5
Adarsh Telecom 100 30 2 2
Aggarwal Communication 80 35 15 8
Star communications 180 25 45 25
Gulati communications 120 20 25 20
Shivam Teleshop 125 30 20 10
India mobile Studio 150 60 20 15
New Galaxy(India) 250 100 55 25
Bakshi Electronics 150 80 35 25
Setia stores 230 60 30 10
Gori Communications 150 40 30 15
Prince communications 70 3 3
Grah Adhaar 60 2 2
Modern communications 90 10
Sai communications 125 30 25 10
Shagun mobile Shop 100 25 5 2
Raj mobile shop 100 10 5 3
Tirupati communications 200 60 40 15
Murti communications 150 20 20 6
Rakesh Enterprises 125 25 10
Voice Stream 100 30 20
Sherya communications 100 15 10 2
Atik communications 100 10 5
Honey Telecom 150 20
Harit's sparkle Enterprises 150 25 5
Jai Balaji Enterprises 125 10 15 10
Balaji colour lab and communications 125 25 15 10
Amit mobile and Repair Nagpal
Telecom 100 10 8
Sai Telecom Service 150 60 25 20
Paris cellular point 125 25 20 5
Lovely mobile centre 100 30 20 8
Video Hut 100 15
Jain Telecom centre 150 30 15 10
Dev Telecom 125 40 35 15
Real mobile point 100 10 10 10
Golden mobile hut 100 20 10 8
Choice communications 150 25 25 15

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Arora Telecom 75 30 15 10
D.K.G. Electronics 100 15 10 10
Sahni Electronics 125 40 25 15
Gupta Telecom 150 35 30 20
Capital Telecom Centre 100 10 10
Dhamija Electronics 150 60 35 20
Vicky Telecom 125 40 15 10
Khanduja communications 100 30 10 5
Sanva Telecom 100 8 10
Jyoti electronics 25 25 25 15
Shri ram traders 100 20 10 10
Monika Telecom centre 100 25 15 10
City Gift Gallery 80 10
Khan Mobile point 100 20 20 10
R.G. Enterprises 100 40 30 15
True value shoppe 175 70 25
R.C. communications 125 45 30 10
Mobile Plaza 100 25 25 8
Lamba Watch companies 100 30 20 5
Gayatri mobile world 125 25 25 15
Cell mart 150 40 20 20
Choudhary communications 125 15 25 15
Bhatia Telecom 150 45 35 20
Gun Gun communications 125 30 25 10
radhika Telecom 125 30 20 20
V.P. communications 100 20 15 10
Lucky communications 150 30 30 20
Shri ram communications 125 20 15 5
Anmol communications 100 20 10 5
Lucky corner 100 25 20 10
Maan telecom 100 20 20 10
jai Ambey communications 125 30 30 10
Aashirwaad communications 150 35 30 20
Sanjay Telecom 100 25 10 5
Right communications 150 40 30 20
Vishal Telecom 100 20 10 5
Arun telecom 125 20 15 10
Golden Mobile Hut 150 30 45 20
No. 1 Telecom 100 20 15 8
Raja communications 125 30 25 15
Gurukel De Hi-Tech 125 30 20 10
S.K. communications 125 15 10 5
ACCI 80 6 3
Bobby Electronics & Telecom 75 20 20 8
Mobile Home 100 40 15 5
Muskaan communications 100 30 20 10

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Uncleji telecom 150 25 30 5
GTB Telecom 100 20 10
Ganpati communications 125 30 15 10
Manbhavan Hello Point 100 15 5
Bhardwaj Telecom centre 100 20 20 10
Chhabra communications 125 40 25 15
Goyal Telecom 125 50 25 10
Panwar communications 70 10 5
New -Nice communications 100 25 10 6
Kamal Telecom centre 100 25 15 5
Bharat Telecom 80 15 5 5
Aneja communications 150 45 40 15
Kanika communications 100 20 10 5
Ahuja communications 100 30 25 10
Lakshmi communications 75 10 10 5
Mahak communications 80 20 15 5
Nagpal Telecom 150 20 15
11750 2708 1873 962

BIBLIOGRAPHY –

• www.marketresearch.com/product/

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