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PROJECT REPORT
Submitted to the University of Petroleum and Energy Studies in partial fulfillment of the
By
Mrs.T Anupama
200-200
DEPARTMENT OF MANAGEMENT
Dehradun – 248007
CERTIFICATE
and Energy Studies, Dehradun in partial fulfillment of the requirements for the award of the
Degree of MBA in Port & Shipping Management is a record of original research work done
Agarwal, during the period of their study (2010-2012) in the Department of Management at
University of Petroleum and Energy Studies, Dehradun, under my supervision and guidance
and the dissertation has not formed the basis for the award of any Degree / Diploma /
Associate ship / Fellowship or other similar title to any candidate of any university.
__________________________________
_______________________ _______________________________
Dean Course Coordinator/HOD
DECLARATION
Place:
1.
2.
3.
4.
ACKNOWLEDGEMENT
We also express our gratitude and sincere thanks to all our family and friends and their
encouragement and valuable support throughout our study.
TABLE OF CONTENTS
2 Gender of buyers
4 Occupation
6 Choice of brands
7 Satisfaction level
10 Price Range
EXECUTIVE SUMMARY
The research is conducted to know the brand preference of Mobile handset amongst the
working executives in Dehradun city, Uttarkhand. For the purpose of study, primary data was
collected through questionnaires and direct interaction with the customers. The questionnaire
mainly focused on analysis of various factors that affect the buying decision of a particular
mobile handset brand. A sample size of 113 respondent living in diverse backgrounds with
different income segments and different occupation category was selected and data was
collected from them. Researchers employed Chi Square testing method to analyze the data and
arrived at a conclusion regarding the preference of a particular brand.
CHAPTER 1
INTRODUCTION
Indian Telecommunications system Started in 1851 when the first operational land lines were
laid by the government near Calcutta (seat of British power). Telephone services were
introduced in India in 1881. In 1883 telephone services were merged with the postal system.
Indian Radio Telegraph Company (IRT) was formed in 1923. After independence in 1947, all
the foreign telecommunication companies were nationalized to form the Posts, Telephone and
Telegraph (PTT), a monopoly run by the government's Ministry of Communications. Telecom
sector was considered as a strategic service and the government considered it best to bring
under state's control. The first wind of reforms in telecommunications sector began to flow in
1980s when the private sector was allowed in telecommunications equipment manufacturing.
In 1985, Department of Telecommunications (DOT) was established.
It was an exclusive provider of domestic and long distance service that would be its own
regulator (separate from the postal system). In 1986, two wholly government-owned
companies were created: the Videsh Sanchar Nigam Limited (VSNL) for international
telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in
metropolitan areas. In 1990s, telecommunications sector benefited from the general opening
up of the economy. Also, examples of telecom revolution in many other countries, which
resulted in better quality of service and lower tariffs, led Indian policy makers to initiate a
change process finally resulting in opening up of telecom services sector for the private sector.
National Telecom Policy (NTP) 1994 was the first attempt to give a comprehensive roadmap
for the Indian telecommunications sector. In 1997, Telecom Regulatory Authority of India
(TRAI) was created. TRAI was formed to act as a regulator to facilitate the growth of the
telecom sector. New National Telecom Policy was adopted in 1999 and cellular services were
also launched in the same year.
Telecommunication sector in India can be divided into two segments: Fixed Service
Provider (FSPs), and Cellular Services. Fixed line services consist of basic services, national or
domestic long distance and international long distance services. The state operators (BSNL and
MTNL), account for almost 90 per cent of revenues from basic services. Private sector services
are presently available in selective urban areas, and collectively account for less than 5 per
cent of subscriptions. However, private services focus on the business/corporate sector, and
offer reliable, high- end services, such as leased lines, ISDN, closed user group and
videoconferencing. Cellular services can be further divided into two categories: Global System
for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sector
is dominated by Airtel, Vodfone-Essar, and Idea Cellular, while the CDMA sector is dominated
by Reliance and Tata Indicom.
Opening up of international and domestic long distance telephony services are the major
growth drivers for cellular industry. Cellular operators get substantial revenue from these
services, and compensate them for reduction in tariffs on airtime, which along with rental was
the main source of revenue. The reduction in tariffs for airtime, national long distance,
international long distance, and handset prices has driven demand.
Brand preference is defined as a measure of brand loyalty in which a consumer will choose a
particular brand in presence of competing brands, but will accept substitutes if that brand is
not available. Measures of Brand Preference attempt to quantify the impact of marketing
activities in the hearts and minds of customers and potential customers. Higher Brand
Preference usually indicates more revenues (sales) and profit, also making it an indicator of
company financial performance.
As per the Barron’s Marketing Dictionary Brand preference is the Selective demand for a
company's brand rather than a product; the degree to which consumers prefer one brand over
another. In an attempt to build brand preference advertising, the advertising must persuade a
target audience to consider the advantages of a brand, often by building its reputation as a
long-established and trusted name in the industry. If the advertising is successful, the target
customer will choose the brand over other brands in any category.
A mobile phone (also called mobile, cellular telephone, cell phone, or hand phone) is an
electronic device used to make mobile telephone calls across a wide geographic area. Mobile
phones are different from cordless telephones, which only offer telephone service within a
limited range of a fixed land line, for example within a home or an office.
A mobile phone can make and receive telephone calls to and from the public telephone
network which includes other mobiles and fixed-line phones across the world. It does this by
connecting to a cellular network owned by a mobile network operator.
The first handheld mobile phone was demonstrated by Dr. Martin Cooper of Motorola in 1973,
using a handset weighing 2 kg. In 1983, the DynaTAC 8000x was the first to be commercially
available. In the twenty years from 1990 to 2010, worldwide mobile phone subscriptions grew
from 12.4 million to over 4.6 billion, penetrating the developing economies and reaching the
bottom of the economic pyramid
The telecom industry is one of the fastest growing industries in India. India has nearly
200 million telephone lines making it the third largest network in the world after China
and USA.
With a growth rate of 45%, Indian telecom industry has the highest growth rate in the
world.
Much of the growth in Asia Pacific Wireless Telecommunication Market is spurred by
the growth in demand in countries like India and China.
India‘s mobile phone subscriber base is growing at a rate of 82.2%.
China is the biggest market in Asia Pacific with a subscriber base of 48% of the total
subscribers in Asia Pacific.
Compared to that India’s share in Asia Pacific Mobile phone market is 6.4%. Considering
the fact that India and China have almost comparable populations, India’s low mobile
penetration offers huge scope for growth.
1.5.1Nokia
1.5.4 LG
LG Electronics Korean Consumer Electronics & Home Appliance Manufacturer has started
mobile appliance business since 1996. Formerly known as LG Information & Communication
Co. (LGIC), which former GoldStar Telecommunication Company successor, build the first
Korean made CDMA phones for Korean consumer market, and later it merged to Mother
Company as department and start GSM division for export based mobile phone business. In
2002, LG UMTS Mobile division demonstrates the World first WCDMA Video Telephony at
Korean-Japan World Cup Game Opening Ceremony, the nominal growth of Mobile
Communication has been started. Currently LG MC Company produce CDMA, GSM, WCDMA
products and recent success of design based phone concept series Black Label Series boosted
its revenue since 2005.
1.5.5 Micromax
Micromax is a telecommunications company based in Gurgaon, Haryana, India. It is a
manufacturer of wireless telephone handsets. Micromax has 23 domestic offices across the
country and international offices in Hong Kong, USA, Dubai and now in Nepal. Micromax is the
largest Indian domestic mobile handsets company in terms of units shipped during the quarter
ended March 31, 2010 and the third largest mobile handset seller in India as at March 31, 2010.
Micromax Inc. has recently seen a rise in market share. Micromax is the largest Indian domestic
mobile handsets company in terms of units shipped during the quarter ended March 31, 2010
and the third largest mobile handset seller in India as at March 31, 2010. On March 31, 2010
the company registered the market share of 6.24% for that quarter, which grew from 0.59% in
September, 2008. Micromax became the fastest growing mobile brand in India for the fiscal
year 2009-10. Handset sales have grown by 123.48% from 1.15 million units in the quarter
ended June 30, 2009 to 2.57 million units in the quarter ended March 31, 2010. Micromax also
sells data cards to service providers in India which includes India's leading operators like
Airtel and BSNL.
LITERATURE REVIEW
“Brand Preference of Mobile Phones among Ghaziabad’s College Students” – Mr Bulbul Sharma,
PGDM, Ajay Kumar Garg Institute of Management Ghaziabad, U.P. The research is about the
brand preference of mobile phones among Ghaziabad’s College students. The researcher
focuses only on the factor affecting the purchasing decision of mobile handset among the
college students.
The author has used a descriptive method for obtaining data from the respondents
(owners), by asking variet y of questions. The data related to brand preference was
collected through questionnaire method .
Among the large student population of college students, a random 250 respondents
were selected. Students of graduation and post graduation were taken as sample
unit. Sampling area was Ghaziabad. Random sampling technique was used in the
research.
METHODOLOGY
The type of research design selected for this study is Descriptive in nature. A
descriptive research uses a set of scientific methods and procedure to collect
raw data structures that describe the existing characteristics of a defined
target population of a market structure. The data and information generated
through this descriptive design can provide the decision makers with evidence
that can leave to course of action.
The study was conducted to understand the brand preference of mobile handset
within a population. It was basically a primary collection of data with the help
of a questionnaire. It is a simple and easily categorized way to gather
information directly from customers. For optimal success, the questionnaire
was distributed to a stratified random sampling of your target audience, as
opposed to a general audience .
For the analysis of the data a chi -square test was conducted. A chi-
square test (also chi squared test or χ 2 test) is any statistical hypothesis test in
which the sampling distribution of the test statistic is a chi-square
distribution when the null hypothesis is true, or any in which this
is asymptotically true, meaning that the sampling distribution (if the null
hypothesis is true) can be made to approximate a chi -square distribution as
closely as desired by making the sample size large enough.
The area selected under study was Dehra dun city and neighboring areas like
Bidholi, Ballapur Chowk, Clock Tower, ISBT etc
The sources of data are primary in nature. For the purpose of collection of data,
a questionnaire is prepared.
The method used for collecting data is through a structured questionnaire that
is personally administered. The researchers have personally met the
population. By personally administering the questionnaire the researcher could
collect all responses within a short period of time and the doubts of the
respondents are clarified on the spot.
Sample size refers to the numbe r of items to be selected from the respondents
to constitute a sample. This acts as a representative to the whole respondents
where the results and suggestions are derived from analyzing representative
samples.
On the basis of reliability and accessibility , sample size was arrived at 120 for
the study. The sampling unit was concentrated on customers who are
consuming edible oil.
3.6 STATISTICAL TOOL USED
The following statistical tools are used in the study for the analysis and
interpretation of data.
Pie chart
Bar chart
The first step in the chi -square test is to calculate the chi -square statistic. In
order to avoid ambiguity, the value of the test -statistic is denoted by Χ 2 rather
than χ 2 (i.e. uppercase chi instead of lowercase); this also serves as a reminder
that the distribution of the test statistic is not exactly that of a chi -square
random variable. However some authors do use the χ 2 notation for the test
statistic. An exact test which does not rely on using the approximate χ 2
distribution is Fisher's exact test : this is significantly more accurate in
evaluating the significance level of the test, especi ally with small numbers of
observation.
Where
Based on the chi – square concept, researcher has done the following
testing
Testing for the independency between brands and brand factors
Testing for the independency between income level and
expenditure on oil
Testing for the independency between brand and sources from
where customers know about the brand
Testing for the independency between education level and brand
preference
The term analysis refers the examination and evaluation of the relevant
information to select the best course of action from among various alternatives .
It also means an investigation of the component parts of a whole and their
relations in making up the whole. In the process of analysis, relationships or
differences supporting or conflicting with original with what validity data can
be said to indicate a ny conclusions. Analysis of data in general way involves a
number of closely related operations which are performed with the purpose of
summarizing the collected data and organizing there in such a manner that they
answer the research questions.
TABLE – I
The above table shows that the age group of the buyers, 69% of them was
between 20-30 years, 22% of them were between 30 – 40 years, 5% of them
were between age group of 40 – 50 and 4 % was more than 50 years. The
majority of the respondents are belonged to the age group between 20-30
years.
Age Group
Series1
Above 50 4
40-50 6
30-40 25
20-30 78
TABLE – II
GENDER OF CONSUMERS
From the above table referred to gender of the buyers, 52% of them were,
male and 48% were female. The majority of the respondents are male (52%).
Gender
Female
48%
Male
52%
TABLE – III
The above table shows the awareness level of the consumer regarding the
brands, 16% of them came to knew about their brand through Newspapers and
Magazines, 46% of them heard it from their f riends & Colleagues, 33% of them
saw it on tele media and 5% were into other’s category which included, window
shopping, hoardings etc.
MARKET AWARENESS
52
37
18
The above table showed the occupation, of the buyers, 18 % of them were
government employees, 49% of them were in private sector, 19% of them were
self employed and 15% were into other’s category which involves professional
and house wives. The majority of the respondents are private employees (49%).
Employment Status
Others 17
Self 21
Pvt 55
Govt 20
TABLE –V
The table shows that the income of the buyers, 15% of the buyer’s falls in
between the income of less than 10,000 and same was the percentage for
income 10000 – 15000 that is 15%. 70% of buyers were in category of more
than 15000. The majority of the respondents fall in between More than 15000.
INCOME LEVEL
>60000
40000-60000 <20,000
20000-40000
TABLE – VI
This table shows the buyers preferences for the different brands of mobile
Handset. Maximum buyers go for Nokia (48%). Samsung (26%) follows it
with little difference. LG (12%), Sony Ericson (8%) and Micromax (3%). Only
4% go for the other brands other than the specified brands. So any brand
does not have maximum share, it is mix kind of market.
Others 4
Micromax 3
Sony 9
LG 14
Samsung 29
Nokia 54
TABLE – VII
This table shows the level of satisfaction with the current mobile handset
they are using at that point of time. Majority of the customers are
satisfied with their current mobiles (72%). There is also highly satisfied
customer with 21%. Among the entire re spondent 7 % are not satisfied
with their current handset model and they plan to change their mobiles.
Satisfaction Level
Not Satisfied
Satisfied 7%
72%
Highly Satisfied
21%
TABLE – VIII
This table shows the factor which influences consumer preference in choosing
their mobile handset is Battery Life with 19%. The next important constrain in
Design and style of the handset (14%). It is followed by price, camera and
internet connectivity wit h 13%, 12% and 11% respectively. After sale service,
3G and Music player are considered with 9% and people are least concerned in
Dual SIM facility (4%).
INFLUENCING FACTORS
Price Design
Aftersale 13% / Style
Service Music Player
14% 9%
9%
3G Camera
9% 12%
BL
Internet 19% Dual SIM
Connectivity 4%
11%
TABLE – IX
This table shows the frequency of Handset change per period. 35% of the
respondent changes their handset between 1 -2 years. 23% of the people
changes their mobile less than an year and same percentage change their
mobile only after 3 years of time.
> 3 year
23%
2 - 3 Year < 1 Year
19% 23%
1 -2 year
35%
TABLE – X
PRICE RANGE WITHIN WHICH THE CUSTOMER BUY THEIR MOBILE HANDSET
This table shows that 42% of respondent choose their mobile handset within a
price range of Rs. 5000 – 10,000. People also go for mobiles that are in a range
of Rs.10,000- 15000. 15% of people chose mobiles that are less than Rs. 5000.
The least opted is the mobiles coming above the range of 15,000.
4.2 CHI SQUARE TEST RESULTS
X2 = Σ (O-E)2 / E = 15.20
Conclusion: There is significant relationship between the gender and brand preference of the
consumer.
4.2.2 Chi Square analysis for the d etermination of Brand preference and
Employment Status
X2 = Σ (O-E)2 / E = 17.56
X2 = Σ (O-E) 2 / E = 19.31
5.1 FINDINGS
Mobile phones have become an important part in our daily lives. People often think very
carefully about choosing their mobile handset. Brand preference of a mobile handset may
depend upon various criterions and choosing the best brand from the multiple available
brands in the market is the most difficult decision.
So through this report we are trying to find out how people take various
decisions regarding the preference of brands and what factors directly affect
their purchase decision.
1. Gary Armstrong, Michael Harker, Philip Kotler & Ross Brennan (2009), Marketing: An
Introduction, 9th Edition, Financial Times Prentice Hall, pages 80-90
2. Michael Becker & John Arnold (2010), Mobile Marketing for Dummies, 2 n d
Edition, For Dummies, Pages 31-57
3. Donald R. Cooper and Pamela S. Schindler (2009), Business Research
Methods, 9 t h edition, Tata McGraw Hill Education Pvt. Ltd., New Delhi.
Pages 532 – 552
4. Key Pousttchi & Dietmar G. Wiedemann (2009), Handbook of Research on Mobile
Marketing Management, 4th Edition, IGI Global snippet, pages 40-66
WEBSITES
http://www.skylinecollege.com/blog/dissertation/brand -
preference -of-mobile-phones-among-gurgaon -s-college-students
http://www.answers.com/topic/brand -preference#ixzz1MiXEjQ4M
http://books.google.co .in/books?id=gvHy2GAtAL0C&dq=mobile%20
preference&source=gbs_similarbooks
http://www.slideshare.net/hemanthc rpatna/project-report-on-
brand-preference -of-mobile-phones-with-special-reference-to-
motorola -phones
http://www.mbanetbook.co.in/2010/05/project -on-brand-
preference-of-mobile.html
www.wikipedia.org/
www.lg.com/in/index.jsp
www.nokia.co.in
www.micromaxinfo.com/
ANNEXURE
Questionnaire
UNIVERSITY OF PETROLREUM AND ENERGY STUDIES
DEHRADUN
_____________________________________________________________________________________________________________
1. Name: __________________________________
2. Mobile No: _____________________________
3. Gender: Male Female
4. Age group:
Nokia Samsung
Sony Ericson LG
__________________________________
9. From where have you heard about the above mobile Handset?
News paper/Magazines Friends / Colleagues
10. What features would you like to have in your mobile handset? Tick appropriate
12. What is the satisfaction level with your current mobile Handset?
14. Given a chance to purchase a mobile now, which brand would you prefer to buy?
___________________________________________________________________________________________________