project on consumer behaviour towards spice telecom

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?

Frequency Percent Valid PercentCumulative

PercentValid Nokia,samsung 1 1.0 1.0 1.0

Nokia,samsung,Spice

9 9.0 9.0 10.0

Nokia,Spice,Fly 6 6.0 6.0 16.0

Nokia,Samsung,Spice,Fly

83 83.0 83.0 99.0

Nokia,Fly 1 1.0 1.0 100.0

Total 100 100.0 100.0

- 7 -

Nokia,samsungNokia,samsung,Spice

Nokia,Spice,FlyNokia,Samsung,Spice,Fly

Nokia,Fly

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

0

20

40

60

80

100

Co

un

t

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?


PercentValid Less than Rs.

3,00022 22.0 22.0 22.0

between R.3,000 & Rs. 8,000

60 60.0 60.0 82.0

Between Rs. 8,000 & Rs. 13,000

15 15.0 15.0 97.0

More than Rs. 13,000

3 3.0 3.0 100.0

Total 100 100.0 100.0

- 9 -

Less than Rs. 3,000 betwen R.3,000 & Rs. 8,000

Between Rs. 8,000 & Rs. 13,000


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

0

10

20

30

40

50

60C

ou

nt

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 3 rd VARIABLE:

3. Do you have Spice mobile on your shop?


PercentValid Yes 98 98.0 98.0 98.0

No 2 2.0 2.0 100.0

Total 100 100.0 100.0

Yes No

3.Do you have Spice mobile on your shop?

0

20

40

60

80

100

Co

un

t

- 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?


PercentValid Less than 6

months7 7.0 7.1 7.1

Between 6-12 months

32 32.0 32.7 39.8

Betwen 12-18 months

33 33.0 33.7 73.5

More than 18 months

26 26.0 26.5 100.0

Total 98 98.0 100.0Missing System 2 2.0Total 100 100.0

- 13 -

Less than 6 months Between 6-12 months

Betwen 12-18 months

More than 18 months


0

10

20

30

40C

ou

nt

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


PercentValid 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


D-88n C-810 S-545 variable

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

0

10

20

30

40

Co

un

t

- 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?


PercentValid 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. Which mobile company has the best looks?



Samsung

81 81.0 81.0 100.0

Total 100 100.0 100.0

Nokia Samsung

7.which mobile company has the best looks?

0

20

40

60

80

100

Co

un

t

- 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.which mobile company has the best sound?



Samsung

1 1.0 1.0 22.0

Spice 77 77.0 77.0 99.0

Fly 1 1.0 1.0 100.0

Total 100 100.0 100.0

Nokia Samsung Spice Fly

8.which mobile company has the best sound?

0

20

40

60

80

Co

un

t

- 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. which mobile company has the best battery backup?



Spice 2 2.0 2.0 100.0

Total 100 100.0 100.0

Nokia Spice

9.which mobile company has the best battery backup?

0

20

40

60

80

100

Co

un

t

INTERPRETATION:

- 22 -

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.which mobile company has the lowest price?


PercentValid Spice 71 71.0 71.0 71.0

Fly 29 29.0 29.0 100.0

Total 100 100.0 100.0

Spice Fly

10..which mobile company has the lowest price?

0

20

40

60

80

Co

un

t

INTERPRETATION:

- 24 -

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.

11. TABLE FOR 11 th VARIABLE :

- 25 -

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


PercentValid 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

Looks sound Brand

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

0

20

40

60

80

Co

un

t

INTERPRETATION:

- 26 -

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.

12. TABLE FOR 12 th VARIABLE:

- 27 -

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


PercentValid Increase the

features25 25.0 25.0 25.0

Promotions 56 56.0 56.0 81.0

own service centers

6 6.0 6.0 87.0

Others 13 13.0 13.0 100.0

Total 100 100.0 100.0

Increase the features

Promotions own service centers

Others

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

0

10

20

30

40

50

60

Co

un

t

INTERPRETATION:

- 28 -

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.

13.TABLE FOR 13 th VARIABLE:

- 29 -

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


PercentValid company

executive did not approach

1 1.0 50.0 50.0

Brand name 1 1.0 50.0 100.0


company executive did not approach Brand name

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

0.0

0.2

0.4

0.6

0.8

1.0

Co

un

t

INTERPRETATION:

- 30 -

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 14 th VARIABLE :

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


PercentValid less than 10

years69 69.0 69.0 69.0

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

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?

0

10

20

30

40

50

60

70

Co

un

t

- 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

mobiles have you placed in your shop?

Which price range of mobiles has the

maximum sales on your shop?

Count


TotalLess than Rs. 3,000

between R.3,000 & Rs. 8,000

Between Rs. 8,000 & Rs.

13,000More than Rs. 13,000

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

Nokia,samsung 0 1 0 0 1

Nokia,samsung,Spice 2 5 1 1 9

Nokia,Spice,Fly 1 4 1 0 6

Nokia,Samsung,Spice,Fly 19 49 13 2 83

Nokia,Fly 0 1 0 0 1Total 22 60 15 3 100

- 34 -



Nokia,Fly


0

10

20

30

40

50

Co

un

t

2.Which price range

of mobiles have the

maximum sales on

your shop?

Less than Rs. 3,000

betwen R.3,000 & Rs. 8,000

Between Rs. 8,000 & Rs. 13,000


Bar Chart

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

mobiles have you placed in your shop?

Do you have Spice mobile on your shop?

Count


TotalYes No1. Out of the following, which company's mobiles have you placed in your shop?

Nokia,samsung 0 1 1

Nokia,samsung,Spice 9 0 9

Nokia,Spice,Fly 6 0 6

Nokia,Samsung,Spice,Fly 83 0 83

Nokia,Fly 0 1 1Total 98 2 100

- 36 -



Nokia,Fly


0

20

40

60

80

100

Co

un

t

3.Do you have

Spice mobile on

your shop?

Yes

No

Bar Chart

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

maximum sales on your shop?

Which model of Spice has the maximum

sales on your shop?

Count

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

TotalD-88n C-810 S-545 variable2. Which price range of mobiles have the maximum sales on your shop?

Less than Rs. 3,000 0 8 3 11 22

between R.3,000 & Rs. 8,000 0 25 10 23 58

Between Rs. 8,000 & Rs. 13,000 15 0 0 0 15

More than Rs. 13,000 3 0 0 0 3Total 18 33 13 34 98

- 38 -

Less than Rs. 3,000betwen R.3,000 & Rs. 8,000

Between Rs. 8,000 & Rs. 13,000More than Rs. 13,000


0

5

10

15

20

25

Co

un

t

5.Which model of

Spice has the

maximum sales on

your shop?

D-88n

C-810

S-545

variable

Bar Chart

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

Spice mobile on your shop?

Which model of Spice has the maximum

sales on your shop?

Count

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

TotalD-88n C-810 S-545 variable4. How long has it been since you placed spice mobile on your shop?

Less than 6 months 2 2 1 2 7

Between 6-12 months 7 10 6 9 32

Between 12-18 months 5 15 3 10 33

More than 18 months 4 6 3 13 26Total 18 33 13 34 98

- 40 -

Less than 6 months

Between 6-12 months

Betwen 12-18 months

More than 18 months


0

3

6

9

12

15

Co

un

t

5.Which model of

Spice has the

maximum sales on

your shop?

D-88n

C-810

S-545

variable

Bar Chart

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



In case of low sales, what is the main

reason for low sales o Spice?

Count

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

TotalLooks sound Brand4.How long has it been since you placed spice mobile on your shop?

Less than 6 months 3 0 4 7

Between 6-12 months 11 1 20 32


More than 18 months 6 0 20 26Total 26 1 71 98

- 42 -

Less than 6 months

Between 6-12 months

Betwen 12-18 months

More than 18 months


0

5

10

15

20

25

30

Co

un

t

11.in case of low

sales, what is the

main reason for low

sales of Spice?

Looks

sound

Brand

Bar Chart

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



According to you, what should the Spice

company do to increase their sales?


TotalIncrease the

features Promotionsown service

centers Others4.How long has it been since you placed spice mobile on your shop?

Less than 6 months 0 2 2 3 7

Between 6-12 months 8 20 0 4 32

Betwen 12-18 months 9 21 1 2 33

More than 18 months 6 13 3 4 26Total 23 56 6 13 98

Count

- 44 -

Less than 6 months

Between 6-12 months

Betwen 12-18 months

More than 18 months


0

5

10

15

20

25

Co

un

t

12..According to

you, what should

the Spice company

do to increase their

sales?


Promotions

own service centers

Others

Bar Chart

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

reason for low sales o Spice?



Count


TotalIncrease the

features Promotionsown service

centers Others11.in case of low sales, what is the main reason for low sales of Spice?

Looks 9 8 2 7 26

sound 0 0 0 1 1

Brand16 48 4 5 73

Total 25 56 6 13 100

- 46 -

Looks sound Brand

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

0

10

20

30

40

50

Co

un

t

12..According to

you, what should

the Spice company

do to increase their

sales?


Promotions

own service centers

Others

Bar Chart

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.

- 47 -

BETWEEN


Spice mobile in your shop?



Count

14. According to you, how long will it take for spice mobile to give tough

competition to Nokia & Samsung in the metro cities?

Totalless than 10 years 10-20 years can't say

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

Less than 6 months 5 1 1 7



More than 18 months 20 3 3 26Total 69 7 22 98

- 48 -

Less than 6 months

Between 6-12 months

Betwen 12-18 months

More than 18 months


0

5

10

15

20

25

Co

un

t

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 10 years

10-20 years

can't say

Bar Chart

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

- 49 -

VOLUME OF SALES OF THE MOBILE COMPANIES (IN %)

- 50 -

COMPANY SALES(BY VOLUME)NOKIA 67%SAMSUNG 16%SPICE 11%FLY 6%

Volume of sales for Mobile Phones In East Delhi

67%

16%

11%

6%

Nokia

Samsung

Spice

Fly

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%.

- 51 -

4.2 SECONDARY DATA:

4.2.1 ANALYSIS OF THE CURRENT MARKET SHARES OF MOBILE

COMPANIES:

COMPANY WISE MARKET SHARE IN INDIA:

- 52 -

COMPANY MARKET SHARENOKIA 62.5SONY 12.8SAMSUNG 7MOTOROLA 5.9LG 3.41SPICE 1.7OTHERS 6.69

Market Share for Mobile Companies In India

62.50%12.80%

7%

5.90%

3.41%

1.70%6.69%

Nokia

Sony

Samsung

Motorola

LG

Spice

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.

- 53 -

4.2.2: NO. OF FUTURE MOBILE SUBSCRIBERS IN INDIA:

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:

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YEAR

ANNUAL NET SALES(in million)

TREND VALUE(in million)

2002-03 1031 923.42003-04 1395 1364.72004-05 1647 18062005-06 2044 2247.32006-07 2913 2688.62007-08 3129.92008-09 3571.22009-10 4012.52010-11 4453.82011-12 4895.1

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

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

cost.

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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


a) Yes b) No

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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 ………


c) Spice ………

d) Fly ……….

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

a) Nokia ………


c) Spice ………

d) Fly ……….

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9. Which company’s mobiles have the best sound:

a) Nokia ………


c) Spice ………

d) Fly ……….

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

a) Nokia ………


c) Spice ………

d) Fly ……….

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

a) Nokia ………


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 FlyArora mobile phone 80 40 7 5Adarsh Telecom 100 30 2 2Aggarwal Communication 80 35 15 8Star communications 180 25 45 25Gulati communications 120 20 25 20Shivam Teleshop 125 30 20 10India mobile Studio 150 60 20 15New Galaxy(India) 250 100 55 25Bakshi Electronics 150 80 35 25Setia stores 230 60 30 10Gori Communications 150 40 30 15Prince communications 70 3 3Grah Adhaar 60 2 2Modern communications 90 10Sai communications 125 30 25 10Shagun mobile Shop 100 25 5 2Raj mobile shop 100 10 5 3Tirupati communications 200 60 40 15Murti communications 150 20 20 6Rakesh Enterprises 125 25 10Voice Stream 100 30 20Sherya communications 100 15 10 2Atik communications 100 10 5Honey Telecom 150 20Harit's sparkle Enterprises 150 25 5Jai Balaji Enterprises 125 10 15 10Balaji colour lab and communications 125 25 15 10Amit mobile and Repair Nagpal Telecom 100 10 8Sai Telecom Service 150 60 25 20Paris cellular point 125 25 20 5Lovely mobile centre 100 30 20 8Video Hut 100 15Jain Telecom centre 150 30 15 10Dev Telecom 125 40 35 15Real mobile point 100 10 10 10Golden mobile hut 100 20 10 8Choice communications 150 25 25 15Arora Telecom 75 30 15 10

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

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

11750 2708 1873 962

BIBLIOGRAPHY –

www.marketresearch.com/product/

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http://www.marketresearch.com/product/

project on consumer behaviour towards spice telecom

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Transcript of project on consumer behaviour towards spice telecom