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DEMAND ANALYSIS OF SAMSUNG & NOKIA CELLPHONES IN INDIAN MARKETS

CHAPTER 1

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1.1 EXECUTIVE SUMMARY


Though mobiles have become an integral part of the society for various reasons
including safety, connectivity, fun, etc a lot of people still use it as a sign of status.
Therefore mobiles could be marketed and sold for various segments meaning
thereby that even though the telecom industry is on a high there is still a lot of
scope.
Any mobile manufacturer on studying a report of this kind should be able to relate
to his ideas of targeting the right population for the right handset. There is a good
scope for new entrants in this circle as the service provided by the existing players
are not up to the mark and subscribers want to try out new ones provided they
stand up to the customers expectations. MMS and Bluetooth functions are fast
becoming popular with the mobile users. In fact these are becoming a criterion for
choosing a mobile handset.
Nokia's history starts in year 1865, it is a company that manufacture paper. Until
year 1960, Nokia starts its journey into mobile industry. In year 1992, Nokia made
the strategic decision to divest its non-core operations and focus on
telecommunication. The company's 2100 series phone was an incredible success as
many people had deep love for it. Nokia focuses on the mobile phone industry and
achieve good results and reputation. On the other hands, Samsung, a small export
business in Taegu, Korea has grown to become one of the worlds leading
electronics companies. The Samsungs beginning starts on March 1, 1938,
founding chairman Byung-Chull Lee started a business in Taegu, Korea, with
30,000 won. In the 1970s, Samsung invested in the heavy, chemical, and
petrochemical industries as a strategic foundation for its future growth. Samsung
diversified and expanded its core technology business globally during 1970s and
manufacture mobile phone in early 1980s. Samsung dedicates to make world-class

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products, provide total customer satisfaction. Given these points, Nokia starts
mobile business earlier than Samsung for 10years.
Nokias mission is connecting people by enabling consumers to easily connect and
communicate using their favorite internet communities.
Nokias vision is to let all people experience the full power of being connected
everywhere, anytime. It makes the life becomes more flexible. Have in common,
for Samsung, its mission and vision for the new decade are Inspire the World,
Create the Future.
Samsungs three key strengths: New technology, Innovative Products, and
Creative Solutions, reflect into its new vision of Samsung Electronics. As for the
types of products, Nokia manufactures its own mobile phones and its product line
is only in mobile phones and other mobile phones accessories whereas Samsung
manufactures and provides consumer electronic products like TV, refrigerator, air
conditioner, MP3 player, printer, camera, mobile phone and more.
Furthermore, for the name of Nokia is a name of a town where the founder of
Nokia, Idestam built a mill near it and was named in 1871 when the manufacture
paper company had transformed into a share company. Meanwhile, the meaning of
the word Samsung is three starts or tristar in Korean Hanja. The three
represents big, many and powerful, and the stars mean eternity. In addition,
Nokias tag line is connecting people which Nokia wants consumers can easily
connect and communicate with each and another. In the same manner, the tag-lines
that Samsung used before were Samsung Digital: Everyones invited in 1990.
And now, new spunky tagline, Next is What? which is being used in all of
Samsung Mobile communication material.
Nowadays, not only that Nokia and Samsung are competing with each other to be
better in mobile phones industry, but also other brands of mobile phones in the
market such as Sony Ericsson, Motorola and HTC. Nokia is the leading company
that owns the majority market share in mobile phones industry, followed by

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Samsung and others. This project of mine focuses on the two major mobile brands
in India and tries to being the factors that are in line or against those brands, as it
says Nokia VS Samsung.

1.2 INTRODUCTION
The cellular telephone is a long range portable electronic device used for mobile
communication. In addition to the standard voice function of a telephone, current
mobile phones can support many additional services such assessor text messaging,
email, switching for access to the Internet, &MMS for sending and receiving photos
and video. Most current mobile phones connect to a Cellular network of base
stations, which is in turn interconnected to the phones. No doubt, India is one of the
largest and fastest growing mobile handset markets in the world. At least five mobile
handset companies have announced plans to set up manufacturing bases herein India.
The gray market in India is huge. But, it is fast declining with much of the gray
market catering to the lower income group of the population such as taxi drivers and
plumbers. Gray market accounts for over 60% of the handset market in India.
In India to buy a standard duplicate nokia phone charger it cost around Rs.30, which isquite
common.

Mobile Handset Replacement cycles average between 24 to 36 months.


Definitely, the margins would come down for handset resellers as these handsets are
locally manufactured here in India. But, a vast untapped market of nearly 70 % of
India's population (India's rural sector) coupled with one of the world's cheapest
mobile call charge rates here in India which, is still expected to further go down,
mobile handset resellers will not have much to lose.
Industry sources, though, view the market to be at its nascent stage, many large
Electronics Manufacturing Services (EMS), companies are seriously considering setting

up their handset facilities in India. Not surprisingly, phone vendors would prefer to
source the lowest-cost phones available and these come from contract manufacturers

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elsewhere in Asia. Opportunities are largely threatening for mobile bigwigs like
Micromax, BenQ, Elcoteq, and Alcatel quibbled over licenses; now, they are fighting
over spectrum.
The market research report "Indian Mobile Handset Market (2012)" published by
RNCOS examines ongoing market trends responsible for the escalating demand for
mobile handsets and value-added services in India. The report investigates and
assesses the growth factors contributing to mobile handset market and includes wide
coverage of important issues and policies concerning development of Indian mobile
telecommunication industry. With statistics including current market share data,
leading players and manufacturers profiles, and mobile subscriber predictions for
2013, and the report covers the key aspects of the scenario in the Indian market for the
mobile industry. Special emphasis is given to emerging trends in the market. This
market research report also gives a complete analysis of Indias mobile market for indepth insights into mobile subscribers base, mobile tariffs, usage patterns, and
potential for value added services.

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CHAPTER 2

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2.1 ABOUT NOKIA

Nokia Corporation is a Finnish multinational communications corporation that is


headquartered in Keilaniemi, Espoo, a city neighboring Finland's capital Helsinki.
Nokia manufactures mobile electronic devices, mostly mobile telephones and other
devices related to communications, and in converging Internet and communications
industries, with 130,000 employees in 120 countries, sales in more than 150 countries
and global annual revenue of over 38 billion and operating loss of 1 billion as of
2012. It was the world's largest manufacturer of mobile phones in 2012, with global
device market share of 23% in the second quarter. Nokia produces mobile devices for
every major market segment and protocol, including GSM, CDMA, and W-CDMA
(UMTS). Nokia offers Internet services such as applications, games, music, maps,
media and messaging through its Ovi platform. Nokia's joint venture with Siemens,
Nokia Siemens Networks produces telecommunications network equipment, solutions
and services. Nokia also provides free-of-charge digital map information and
navigation services through its wholly owned subsidiary.
The Nokia brand, valued at $25 billion, is listed as the 14th most valuable global
brand in the Interbrand/Business Week Best Global Brands list of 2012. It is the 14th
ranked brand corporation in Europe, the 8th most admirable Network and Other

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Communications Equipment company worldwide in Fortune's World's Most Admired


Companies list of 2012, and the world's 143th largest company as measured by
revenue in Fortune Global 500 list of 2012. In July 2012, Nokia reported a drop in
profits by 40%, which turned into an operating loss of 487 million in Q2 2012. In the
global Smartphone rivalry, Nokia held the 3rd place in 2Q2012, trailing behind
Samsung and Apple.
On 11 February 2012 Nokia announced a partnership with Microsoft; all Nokia smart
phones introduced since then were to run under Microsoft's Windows Phone (WP)
operating system. On 26 October 2012 Nokia unveiled its first Windows Phone
handsets, the WP7.5 Lumia 710 and 800.

The Nokia House, Nokia's head office located by the Gulf of Finland in Keilaniemi,
Espoo, was constructed between 1995 and 1997. It is the workplace of more than
1,000 Nokia employees.

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2.2 ABOUT SAMSUNG

Samsung Group

is a South Korean multinational conglomerate company

headquartered in Samsung Town, Seoul. It comprises numerous subsidiaries and


affiliated businesses, most of them united under the Samsung brand, and are the
largest South Korean chaebol.
Samsung industrial subsidiaries include Samsung Electronics, Samsung Heavy
Industries, and Samsung Engineering and Samsung C&T. Other subsidiaries include
Samsung Life Insurance, Samsung Everland and Cheil Worldwide.
In 2012, it would have been the world's 35th-largest economy and in 1938 the
Samsung's founder Byung-Chull Lee set up a trade export company in Korea, selling
fish, vegetables, and fruit to China. Within a decade Samsung had flour mills and
confectionary machines and became a co-operation in 1951. Humble beginnings.
From 1958 onwards Samsung began to expand into other industries such as financial,
media, chemicals and ship building throughout the 1970's. In 1969, Samsung
Electronics was established producing what Samsung is most famous for, Televisions,

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Mobile Phones (throughout 90's), Radio's, Computer components and other


electronics devices.
1987 founder and chairman, Byung-Chull Lee passed away and Kun-Hee Lee took
over as chairman. In the 1990's Samsung began to expand globally building factories
in the US, Britain, Germany, Thailand, Mexico, Spain and China until 1997.
In 1997 nearly all Korean businesses shrunk in size and Samsung was no exception.
They sold businesses to relieve debt and cut employees down lowering personnel by
50,000. But thanks to the electronic industry they managed to curb this and continue
to grow

2.3 VISION
NOKIA:
Our vision is a world where everyone can be connected. Our vision is to ensure that
5 billion people are always connected at any given point and to achieve 100 fold more
network traffic.

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SAMSUNG:
As stated in its new motto, Samsung Electronics' vision for the new decade is,
"Inspire the World, Create the Future."
This new vision reflects Samsung Electronics commitment to inspiring its
communities by leveraging Samsung's three key strengths: New Technology,
Innovative Products, and Creative Solutions. And to promoting new value for
Samsung's core networks -- Industry, Partners, and Employees. Through these efforts,
Samsung hopes to contribute to a better world and a richer experience for all.

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Samsung India's Vision entails helping people improve the quality of their lives by
providing them with superior quality, state-of-the-art technology products at the right
time and the right price.

CHAPTER 3

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3.1 NOKIA MARKETING MIX

Marketing strategy of a company in a new country plays a vital role in determining its
future in that country. Knowing that Indian market is very different from other
markets it was already operating in, Nokia came up with an Indiaspecific strategy or
a think global act local strategy.
To capture the widespread Indian market, it developed an extensive distribution
network which also helped it take its products to rural markets in India. Here, to
discuss the strategy, we consider the simple concept of 4 Ps, namely; product
(customization), price, place (distribution) and production.
PRODUCT
1998 was 51st year of Indian independence, hence Nokia provided the ring tone of
National song Saare Jahan se Achha ye Hindustan Hamara in 5110 model.

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The introductory offer for this model also had inter-changeable covers. The success
of 5110 initiated Nokia to focus on feature-specific localization.
In1999, Hindi (national language, and mother tongue of 43% Indians) user
interface was provided in Nokia 3210.

Also, Nokia also tied up with Sony music for top 20 hit songs as ring tones. Nokia
3210, became an instant hit.
The model 3610 was launched with an enhancing Hindi text messaging facility in
2001.

The most successful customization came in 2003 when Nokia came with 1100 and
1108 specifically designed for Indian market. It had features of anti-slip grip, dust
resistance and torchlight. Since, in India people dont know English in villages;

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Nokia came up with Saral Mobile Sandesh (SMS in Hindi). Nokia sales
increased from 58.2% in July 2003 to 59.6% in July 2004

. Nokia was also the first handset manufacturer to launch games download in India
in 2003. It had spearheaded the industry in online distribution of tones, graphics
and game downloads.In 2005, Nokia also launched games based on Indian
mythology namely Makhan chor and Swayamvar.
Another feature that Nokia came up with attract youth was one which enabled the
customer to slide in his or her photograph or for that matter the loved ones,' in the
picture frame behind the phone. This was a part of Nokia 2112 model (CDMA),

Wherein the message is clear-personalize your phone. Earlier they had a similar

feature in GSM handset Nokia 2100. Nokia also tied up with Bharti cellular in
2005 to customize its handsets through which its users could access multimedia
services by using an additional key on the mobile phone. Also since many FM
channels were introduced in India in early 2000s, Nokia banked on the
opportunity by coming with FM phones attracting a lot of youth. Later on in 2005,

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Nokia came with SMS services in other Indian languages including Marathi,
Tamil, Bengali and Kannada.
In November 2007, Nokia came with Bollywood classic movie Sholay preloaded

in N95 8GB and N81. This gave opportunity to cinema buffs to now watch the
movie Sholay on the go. The N series is a multimedia sub-brand of Nokia. As part
of its strategy to connect with the young population in India, Nokia has been
associating with youth passions like Cool Sports, Music, and Fashion.

In another attempt to give India handsets which will enable them to use more features,
Nokia is in process of making cheap GPRS enabled handset. In this handset, the users
can surf the net at a very reasonable price. Again targeting the low and middle income
class, who are interested in using the new facilities available.
PRICING
Pricing of the phones was of prime importance for success in India. Being a
developing country, the purchasing power of the people was not high as
compared to other developed countries.
Research unveiled that phones of lower price range (below Rs8000 or $200
approx.) amounted for 65% of the total sales in India. Nokia depended majorly on
rural market; therefore, pricing was a major success factor for the company.
Nokia 1100, which was specially launched for India, was priced at Rs. 4000. This
price, although was at a premium as compared to entry level phones, but was
enhanced with several special features which were not available in other phones
of the same price.

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The phone is a combination of product benefits and pricing. This model further
became the best selling model ever in India. It also increased the brand preference
of Nokia from 66% to 77% within 9 months of its launch. This show how nature
of Indian consumer is value sensitive
PLACE
Mobile phones in India are considered as to be consumer durable, hence they are

not just sold through exclusive telecom retailers but also through general retailers.
Nokia designed modelled its distribution strategy on lines of FMCG business.
An important reason for the success of mobile phones in India was limited reach of
the landline phones in several parts of the country.
By mid 2011 the mobile phone sales in smaller towns and cities was higher than

those of the metropolitans. The sales in these urban markets were beginning to
saturate. The distribution in these small towns called for non-traditional channels.
Nokia strengthened their distribution network, and selected distributors from
FMCG line or experience holders for durables or automobiles. In fact, about a fifth
of the mobile phone sales in India were consumer durables or service providers
shops.
Nokia tied up with HCL Infinet for sales and distribution of its phones and

appointed them as Nokia distributor for GSM handsets in India.HCL also came
with Nokia Care Centers (NCCs) for providing solutions to mobile related
problems. These were spread all over the country and provided phone repairing
software up-gradation services. They also displayed complete range mobile
phones, data products and complete mobile phones accessories.
Nokia kept its promise of enhancing the mobile experience of its customers. In
October 2012, they launched the first 'global format' Nokia Concept Store in
Western India at Indore. Nokias vast distribution network covered almost every
city or town where mobile network was available.
PROMOTION
Nokia entered India with one for mobile services to start, and had to establish its nonpopular brand. To build credentials the company used both print and television
campaigns. In the early days, print media concentrated on Nokias status, global R&D

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and international awards won to establish brand awareness. Even after the market
grew, Nokias advertisements concentrated on product attributes.
Gaining acceptance of Indian consumer is not as simple as other countries. India is a
multicultural country, where people have strong believe in their mythology,
nationality and cultures and to add to it, their purchasing power was not as high as
other countries where Nokia was operating. Hence, to achieve approval of the mobile
consumers in India, Nokia decided to localize its products heavily. For the purpose of
developing the products specifically for markets with high population and low
penetration, Nokia developed a team called Mobile Entry Business Unit.

Nokia India marked its special presence in advertisement world with Made for India
ad campaign on the launch of Nokia 1100. This was the fourth advertisement created
in India but created maximum stir in the industry. The advertisement showed that the
Nokia 1100 was launched first in India and addressed all the concerns of Indian
consumers. The advertisement made a clear deviation from hitherto hip urban-focused
advertisements that Nokia are known for. It aimed at highlighting the broad appeal of
mobile phones across all socio-economic segments of India. The aim was to highlight
Nokias Indian image.

One advertisement that Nokia made in 2000 was a public interest advertisement,
urging users to switch off their cell phones while watching movies. It showed a clip
where hero picks up an argument with person sitting in front row in a movie theatre.
One of the advertisements was for Nokia 2280 which was offered in bundle with
reliance mobile connection. This was a simple one which educated the audience of
availability of cheap handset with bundled airtime.
Cricket is considered a religion in India. Nokia has had a strong association with the
sport through its advertisements. The enthusiast fan is frantically trying to find the

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score. The boy gets a message of latest score update on his Nokia mobile phone,
impressing the father. The advertisement targeted the middle class youth of India.
Nokia was not the market leader in colored handsets. To regain its share, it came up
with advertisement Har Jeb mei Rang for Nokia 2600. It was a very colorful
advertisement, showing colors spreading out of Nokia phone. It showed the idea of
color spreading happiness in every life.

Nokia followed model-specific advertising for most part. Different advertisements


were made for each model of Nokia, making it easy to target the specific audience,
which will demand that model. Even different media was used according to the
audience. Nokia even faced the problem of brand identification in the early stages as
there were no specific signs suggesting that it was an advertisement from Nokia.
Since 2012, Nokia has embarked a new advertising plan to consolidate its ad
campaigns and strengthen its brand identity.

3.2 MERKETING MIX OF SAMSUNG

Today, the mobile hanset of Samsung has presented all over the world, from the large
market like US, Europe and Japan to the small market like Vietnam. At anywhere,
Samsung always get the large market share. To achieve that success, they have used
the marketing mix effectively.

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PRODUCT
Samsung provide wide range of handset. In 1993 Samsung developed the 'lightest'

mobile phone of its era.

The SCH-800 and it was available on CDMA networks.


Samsung has made steady growth in the mobile industry and are currently second but
competitor Nokia is ahead with more than 100% increase in shares.
Samsungs other handset are like other.

PRICE
Samsung has offer many products with different prices, from high to low, to attract
any kind of customer, from high income to average income.
PLACE
The major channels that Samsung uses are agents, the places can display and sell
product directly. With Todays developing, e-commerce has becoming popular, so
retailers have used a lot of websites to sell their product.

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PROMOTION
Promotion tools that Samsung often uses are catalogs, samples, film, slide film, fairs
and trade shows and other documents, instruments at point of sale.
The Target of catalog that must be achieved:

Samsungs catalogs always create interest and attract readers such as beautiful
colors, good printing, and easy to understand.

Besides the catalogs, Samples also create the chance for customers understand
and avoid the confusion about color or sizes of products.

For the small and low value sample, Samsung gifts to the customers through
post offices, sales agents and sale personal.

Magazine issued by Samsung


Self-magazines by its editor published information about the activities of Samsung for
internal company and customers to know the success of dealers, distributors,
marketing ideas, news of Samsung and the result of the contests with prizes.
Exhibitions
The Samsung brands provide their handset for customer to take a demo of it
and have a convenient use for the same. These are provided to customers at the
mobile shops, like hot spot, the mobile store, croma, etc.
Public Relations:
Samsung has always regarded that this is an opportunity to create a good image of the
entire operations of Samsung through newspaper and other activities that in theory,
Samsung does not have to pay ads.

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Advertising:
When conducting an advertising program, Samsung has always set up the five
requirements for the marketing staff
Samsungs advertising content is always based on the principles of AIDA
A: get ATTENTION (attract attention)
I: hold INTEREST (make fun)
D: create DESIRE (create the desire)
A: lead to ACTION (action leading to a purchase)
Personal Selling
Samsung offered the effective marketing through people. The success or failure
depends on the preparation of personnel. To Samsung, the method is based on many
documents and data that the sales representatives always bring to answer quickly the
questions from customers. These staff has trained very carefully.

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3.3 SWOT ANALYSIS OF NOKIA


There are various tools which can be employed to understand the effectiveness of a
companys strategies. SWOT Analysis outlines the Strengths, Weaknesses,
Opportunities and Threats facing the operating strategy of a company. Analyzing the
effectiveness of strategies, strength and weaknesses can be defined as internal to an
organisation. The businesses do not necessarily have to correct all its weaknesses
however; it should be able to retain its strengths. The key success factor for operating
in the targeted market depends on the external factor. I.e. Opportunity. Nokia has
numerable opportunities to enlarge its market share, however, they could be faced
with a threat which could be challenge posed by an unfavourable trend or
development that may lead into absence of defensive marketing action and thus
diminish sales and profit.
STRENGTHS

Global Products and Image Nokia is a global company. It not only sells its
products to 130 countries but also sets up research and development departments
in fifteen countries to produce its products in different culture and language
needs,e.g English, Dutch, German and Chinese.

High Quality Products Nokia concerns about product quality which is the
most important factor to satisfy customers needs. Nokia adds more values by
superior quality or differentiated features to the market. Meanwhile, it also
continuously improves upon the existent markets.

Serving new designs and trends Nokia launched a wireless game which by
use of SMS, TV, print media, radio and internet provides clues to help players to
solve a mystery. This helps Nokia to attract customers to use its products.

Wide range of products Nokia has the highest number of product line (more
than 10 models) compared to its competitors Samsung, Ericsson, Motorola etc.
Product Warrantee Worldwide No matter where Nokias customers are, if they
got a problem with their mobile phones, they can approach any of the Nokias
centres. Thus, ensuring a good customer service

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WEAKNESSES
High Price Nokia offers a good range of high quality products at high prices

Though the high prices may be justified in terms of the costs to the company but
this can act as a weakness in certain sections of the market e.g the middle-low
income group people. Demand is skyrocketing but the price pressure is high.
New product developing problems Although Nokia provided dual sim mobile

phones in September 2011, this was late as compared with its competitors such as
Samsung and Sony Ericsson. This acted as a weakness as the people had already
accepted the range introduced in the market and didnt want to switch.

OPPORTUNITIES
Joint venture in Technology Nokia has joined with Hewlett Packard (HP)

Company in technology which has a very good reputation for many years. Nokia
thus, has a considerable opportunity to enlarge their market size into PC users who
prefer mobile phones compatible with PC device.
Product launch continuously - Nokia uses Total Quality Management (TQM)

which mentions more about training worker program, and makes product of high
quality.

All employees are well-trained and motivated and consecutively

production processes are also developed as well. Nokia has established Research
and Development department which develops its product line into modern
modification as well quality as the existing products.
New Software Market It can use the O.S of Android version. As known, the

amount of data traffic in mobile networks is growing at a tremendous rate. People


around the world are using new mobile services, which are directly relevant to
personal needs. Nokia has already added value through MMS for Messaging and
E-mail, Java for download any applications and HTML especially for content
search. So it may attract those businessmen and teenagers who are interested in
the new software market.

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Easy Availability - Many mobile phone retail stores have spread across India in

every street. And, of course, every store have not missed the opportunity to
choose Nokia as their product line. Consequently, all the customers can be
guaranteed that any damage or loss of Mobile phone will be serviced through
these retail shops.
THREATS

Threats in Mobile Phone Markets nokia any way not using the android as
operating system as compared to other competitor.

Threats in PC Markets - Due to fierce competition in mobile phone market it


has caused new technology compatible with PC computer. Sony Ericsson
specializes on PC computer now. Sony applied their computer system into mobile
phone as well as PC computer on hand at the same time. Furthermore, nowadays
people are interested in advance of computer as similar as mobile phone market.
In this sharp competition, it is going to be harder for Nokia to grasp customers
attention and they will have to focus on outstanding imagination and creativity in
their marketing plans.

Fluctuations in Euro exchange rates Most of the European countries have


joined the European Union and thus because of the varied economic conditions,
the currency will fluctuate a lot finally effecting the profits of the company.

Blurring of product boundaries This implies new entrants in the same


industry like Samsung, Sony, Motorola etc. who are producing almost the same
product range as Nokia and thus, there is a need to change their models.

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3.4 SWOT ANALYSIS SAMSUNG


STRENGTHS

New products concept to roll out

Catching the pulse of customer, offering good design and understanding


emotion.

Heavy investment in technology, product design and human resources.

Focus on innovative products for the high-end market.

Steady growth in core semiconductor, mobile phone, LCD panel and TV


businesses

WEAKNESS

Lack of product differentiation

Focus on mass market instead of niche market

Not very user friendly design

OPPORTUNITIES

Strong demand in 2012 due to economic recovery, emerging market and


sporting events

Upgrade enterprise wide risk management system to enhance ability to


monitor and address risk in a timely manner

Leverage cost leadership to be the top of global name in every segment of


consumer electronics from TV to mobile phones.

Extend market leadership in components such as semiconductor and LCD


panels with cutting-edge technology and solutions.

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Laying foundation for success key growth field such as printers, notebook
PCs, and system air conditioners, bolstering our global capabilities by extending
our B2B distribution channels, differentiating products through design.

THREATS
Aggressive competitors including Apple, Nokia, Sony, Motorola eating Samsung

market share.
Not keeping track of the new trends in the market.
Samsung faced intense competition in the color TV market
Chinese product competition in Vietnam is raising bigger.

3.5 ANALYSIS OF BUSINESS STRATEGY OF SAMSUNG


AND NOKIA
Nokias business is in manufacturing and retailing for mobile phones. It produces
the mobile phones by using the companys technology. After manufacturing, the
product will be distributed and ready to be sold in the market regardless to other
retailers or its own Nokia stores.
Unlike Samsung, Samsungs business initially was focused on trade export. Then
after a decade, it has its own manufacture and sales operations, now has evolved to
become the modern global corporation. Until currently, Samsung has different
component business such as semiconductor, LCD panel, telecommunication and
storage.
While, Samsung has advantage of diversified products compared to Nokia only
capitalized its resources in mobile phone industry by positioning itself to produce
durable and user-friendly products.
Business strategy is aggregate strategies of a firm where firm formulates and
incorporates in order to achieve sustainable competitive advantages and long-term
success.
Nokia and Samsung compete in using very different strategies where Nokia stress

on creating solution with strong focus on social location while Samsung focus in
gathering brightest talent for better innovative products. Nokias strategy is to

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DEMAND ANALYSIS OF SAMSUNG & NOKIA CELLPHONES IN INDIAN MARKETS

create various types of outstanding devices, with geographic advantage. It couples


the devices with smart services, integrated via an intuitive and seamless user
experience.
On the other hand, strategy business of Samsung is to follow a simple business
philosophy: to devote our talent and technology to create superior products and
services that contribute to a better global society. As result of those products
from memory chips that store vital knowledge and memories to mobile phones that
connect people. Samsung also has a rigorous code of conduct: People, Excellence,
Change, Integrity, Co-prosperity, that guides every decision they make.
For the term of investor relation, is a strategic management responsibility that enable
effective two-way communication by integrates finance, communicate, marketing and
securities law compliance between a company, the financial community, and other
constituencies, which help company to achieve fair valuation.
Performances of a company show the capacity to earn profit, which will attract
investors to invest and pump the company funds and capital inflow.
Performances for first quarter 2012, Nokia had sold 110million units of mobile
phones which were 35% of the market share whereas Samsung had sold 64million
units of mobile phones which were 20% of the market share. From these strong
market shares result, Nokia is better able to attract more investor for what they had
done compared to Samsung.
For the matter of facts that Nokia and Samsung make a great public relations as they
make contribution to save the environment by providing eco-friendly products.
Nokia adopts environmental strategy which aims to minimize the environmental
impact of its products throughout the operations, beginning with the extraction of
raw materials and ending with recycling, treatment of waste, and recovery of used
materials. Nokia achieves this by better product design, close control of the
production process, and greater material reuse.

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Comparatively, Samsungs Planet First is a commitment and mindset that mean


to consider its impact on environment at the first place while Samsung is working
and developing its innovative products as Samsung believes it has the
responsibility to do business in a way that enriches earth planets.
Furthermore, Nokias employees are giving practices to meet recognized
internationals standards. Nokia Company also provides safety and healthy
working conditions for the employees and promotes wellbeing at work.

Similarly, as part of Samsungs employees, will be given training to develop


their talent and enrich their career path. These show both company are
responsible and caring to society irrespective of environment or worker.

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3.6 SAMSUNG STRATEGIC SUCCESS


One can analyze the secrets behind how a Korean Company got an edge over the US
and Asian giants to triumph as the global leader in mobile communications.
Bold Strategic Intent
While others debate and worry over first mover strategies, Samsung rushes for new
opportunities and products. Growing up as a small Korean Company with few
resources and no incumbent privileges, Samsung is accustomed to moving swiftly and
decisively to claim its share of worldwide markets- from infrastructure to handsets
and software applications.
Innovation through Value Chain
Through technology, innovation and segmentation, branding and design, Samsung
makes innovation a top priority. Like Proctor & Gamble, it has shrewdly filled the
shelves with innovative new products to dominate categories. Like Sony, it has used
its umbrella brand to sell new products and services and to create footholds in new
markets. Unlike its direct rivals (Nokia, Ericsson), Samsung innovation extends from
technology innovation to marketing activities.
Flat Organization
Prior to its worldwide expansion, Samsung extended the use of IT throughout the
company. As it became a process organization, it has shunned hierarchies and
bureaucracy. Even the senior executives have been rotated from one work task to
another. The organization chart looks hierarchic but teams and networking reigns.
Entrepreneurial Spirit
Like the best startups, Samsung encourages entrepreneurialism throughout the ranks
and views failure as a learning experience. Incentives, rewards and lifelong learning
permeate the entire company. Humility is taken seriously at Samsung as in the
technology sector; the arrogant of today are considered losers of tomorrow.

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ollective leadership
Samsung relies on its executive board, with each member bringing something unique
Global R & D Networks
Samsung R&D efforts reflect extensive collaboration with vital research institutions
worldwide. The company invests less in technology development than its rivals, but
often exploits new knowledge more efficiently. Through technology coalitions it has
managed to internalize new know-how while neutralizing competitive threats.
Competition and Co-operation
By managing its corporate and government relations with diplomacy and
consideration, Samsung has been able to avoid high profile and costly anti-trust
actions and competition policy struggles. Instead of trying to buy or crush potential
rivals, Nokia works to cooperate with suppliers, partners, clients, even direct
competitors.
Customer Focus
The most enduring factor is Samsung ability and willingness to listen to the customer
a fact apparent in its strategy, structure and resource allocation and also in its
products and services. Due to its foresight, Nokia can not only finger at the pulse of
the market it often knows what the customer wants even if the customer is not yet
aware of this.

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CHAPTER 4

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4.1 RESEARCH OBJECTIVE


RESEARCH OBJECTIVE:

Is to find out which company has a greater market share in India.

To know the mobile market leader in india.

To know the business strategy of the Samsung.

To know the strength of Samsung and weakness of nokia.

To know why the market share of nokia comes down.

And market share of the Samsung goes up rapidly.

DEVELOPING THE RESEARCH PLAN


The second step of marketing research process calls for developing the most efficient
plan for gathering the need information. While designing a research plan we have to
take decisions regarding data sources, search approached, search instruments,
sampling etc. there are two plan contact which are as follows:PRIMARY DATA:
Personal interviews are conducted which enable collection of oral verbal response.
This is fact to face contracted with structured or sometime even unstructured patterns.
This helps in obtaining indent information.
SECONDARY DATA:
Secondary data can be obtained from different magazines and annual reports,
financial documents referred.

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RESEARCH APPROACH
SURVEY METHOD:Survey are best suited for descriptive research companies which undertake surveys to
learn about peoples knowledge, preferences, satisfaction etc. to measure these
magnitude in general population. While observation and tours are best suited for
exploratory research which is not the case of our study
RESEARCH INSTRUMENT
Questionnaire: A Questionnaire is prepared and use to collect the information. The
majority of questions are close ended. Questionnaire is distributed to people to know
about their preferences, quality, demand etc. this is one of the easiest method of
collecting information.
SAMPLING PLAN
After deciding on the research approach and instrument, we must design a sampling
plan. This plan calls for three decisions.

Sampling unit: - Here we define what is to be surveyed i.e. the target


population that will be sampled. In our case the journal public in cities & towns
come under the sampling unit.

Sample size: - Large sample give more reliable results. In our study 100
customers were surveyed in Mumbai.

Sampling Procedure:- area sampling is using because it is not practically


possible to visit all places of India therefore Mumbai chosen for survey.

CONTACT METHOD
In this decision is taken that how the object should be contacted i.e. whether by mail
questionnaires, telephone, interviews. In our research personal interview is the most
convenient and reliable method.
COLLECTION OF THE INFORMATION
The data collection phase of the marketing research is most expensive and most error
prone process. There can be error some respondent can give biased or dishonest
answer from collection of information. The researcher personally goes to customer to
collect the reliable data. Here all knowledge of the researcher about that field comes

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DEMAND ANALYSIS OF SAMSUNG & NOKIA CELLPHONES IN INDIAN MARKETS

to test the ingenuity of the research. Here we got the experience of working
professionally and independently on the road which gives some taste of practical
marketing. We also got a lot exposure about the market. The present study undertake
is descriptive in nature and in this study questioning people with regular expertise in
that are being used.
LIMITATIONS OF RESEARCH:Every study, no matter how well it is conducted, has some limitations. This is why it
does not seem reasonable to use the words "prove" and "disprove" with respect to
research findings. It is always possible that future research may cast doubt on the
validity of any hypothesis or the conclusions from a study.
The research was subjected to following limitations:

The survey cannot be termed 100% accurate due to lack of time.

The lack of candidates of respondent towards answering the Questionnaire in


few cases may have reduced the accuracy of survey to some extent.

There is more measure to check out whether the information provided by the
consumer is correct or not.

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4.2 ANALYSIS & INTERPRETATION


WHICH MODEL IS BEST?
Answer
Nokia
Samsung

No: of people
60
40

Out of 100 respondents 60 says Nokia mobile phones are best while 40 were says
Samsung.

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WHY DO YOU PREFER NOKIA OR SAMSUNG?


Answer
Feature
Look
Quality

No : of people
36
12
37

Price

15

Out of 100 respondent 36 prefer their mobiles for features, 12 prefer look , 37 prefer
their mobile quality & 15 prefer their price in the market.

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WHICH PROVIDE YOU BETTER TOUCH?


Answer
Nokia
Samsung

No: of people
53
47

Out of 100 respondent 53 says Nokia touch is better while 47 says Samsung.

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WHICH AMONG HAS MORE FEATURES?


Answer
Nokia
Samsung

No: of people
61
39

Out of 100 respondent 61 says Nokia has more features rather than Samsung.

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ARE YOU SATISFIED WITH PRICE OF NOKIA OR SAMSUNG?


Answer
Yes
No

No: of people
78
22

Out of 100 respondent 78 respondents are satisfied with their particular mobile while
only 22 were not satisfied.

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DEMAND ANALYSIS OF SAMSUNG & NOKIA CELLPHONES IN INDIAN MARKETS

WHICH AMONG THESE PROVIDE YOU BETTER AFTER SALE?


Answer
Nokia
Samsung

No: of people
74
26

Out of 100 respondents 74 says Nokia provides better service after sale while only 26
says Samsung.

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WHAT WILL MORE PREFER IN NOKIA LUMIA 800 OR SAMAUNG


NOTE?
Answer
Lumia price less than Samsung NOTE 34
Look
54
Weight
12

No: of people

Out of 100 respondent 34 prefer Nokia Lumia 800 because their price less than
Samsung Note, while 54 prefer their models because of their Look, & 12 respondents
prefer their models for weight.

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WHICH PROVIDE GOOD BATTERY BACK-UP?


Answer
Nokia
Samsung

No: of people
69
31

Out of 100 respondent 69 says Nokia provides better battery back-up while 31 says
Samsung.

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DEMAND ANALYSIS OF SAMSUNG & NOKIA CELLPHONES IN INDIAN MARKETS

WHICH PROVIDE MORE ACCESSORIES WITH IT?


Answer
Nokia
Samsung

No: of people
55
45

Out of 100 respondent 55 says Nokia provide more accessories with it while only 45
says Samsung provide more accessories with it.

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WHICH WOULD YOU PREFER BUSINESS POINT OF VIEW?

Answer
Nokia
Samsung

No: of people
55
45

Out of 100 respondent 55 says Nokia handsets best business point of view while only
45 says Samsung mobiles business point of view.

WHICH AMONG THESE HAVE MORE MODELS AND DESIGN?

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DEMAND ANALYSIS OF SAMSUNG & NOKIA CELLPHONES IN INDIAN MARKETS

Answer
Nokia
Samsung

No: of people
55
45

Out of 100 respondents 55 says Nokia gives more models & designs while other 45
respondents in favors of Samsung.

WHICH GIVES BETTER CAMERA CELERITY?


Answer
Nokia

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No: of people
62

DEMAND ANALYSIS OF SAMSUNG & NOKIA CELLPHONES IN INDIAN MARKETS

Samsung

38

Out of 100 respondents 62 says Nokia gives better camera celerity while only 38
respondents Samsung gives better camera celerity.

WHICH GIVE MORE GPRS SPEED?


Answer
Nokia
Samsung

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No: of people
58
42

DEMAND ANALYSIS OF SAMSUNG & NOKIA CELLPHONES IN INDIAN MARKETS

Out of 100 respondents 58 says Nokia give more GPRS speed while other 42 in
favors of Samsung.

WHICH CELL COMPANIES HAVE BETTER SOUND QUALITY?


Answer
Nokia
Samsung

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No: of people
69
31

DEMAND ANALYSIS OF SAMSUNG & NOKIA CELLPHONES IN INDIAN MARKETS

Out of 100 respondents 69 say Nokia have better sound quality & other 31 says
Samsung provide better sound.

WHICH COMPANY PROVIDES BEST DUAL SIM PHONES?


Answer
Nokia
Samsung
Others

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No: of people
15
79
6

DEMAND ANALYSIS OF SAMSUNG & NOKIA CELLPHONES IN INDIAN MARKETS

Out of 100 respondent 79 in favors of Samsung & 15 say Nokia provides better dual
sim phones & only 6 in their favors of other companies.

WHICH COMPANY PROVIDES BETTER 3G/WI-FI SERVICES?


Answer
Nokia
Samsung

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No: of people
60
40

DEMAND ANALYSIS OF SAMSUNG & NOKIA CELLPHONES IN INDIAN MARKETS

Out of 100 respondents 60 says Nokia provides better 3G/Wi-Fi services while only
40 in the favors of Samsung.

WHICH MODEL IS COMFORT CARING?


Answer
Nokia
Samsung

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No: of people
67
33

DEMAND ANALYSIS OF SAMSUNG & NOKIA CELLPHONES IN INDIAN MARKETS

Out of 100 respondents 67 says Nokia mobiles are comfort caring while only 33 says
Samsung mobiles are comfort caring.

WHICH COMPANIES PROVIDE MORE MODELS WITH TOUCH &


KEYPAD?
Answer
Nokia
Samsung

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No: of people
45
55

DEMAND ANALYSIS OF SAMSUNG & NOKIA CELLPHONES IN INDIAN MARKETS

Out of 100 respondents 55 says Samsung provide more models with touch & keypad
while 45 says Nokia provide more models with touch & keypad.

WHICH COMPANY PROVIDES BETTER FLAP PHONES?


Answer
Nokia
Samsung

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No: people
70
30

DEMAND ANALYSIS OF SAMSUNG & NOKIA CELLPHONES IN INDIAN MARKETS

Out of 100 respondent 70 says Nokia provide better Flap phones while 30 says
Samsung provide better flap phones.

WHICH COMPANIES PROVIDE MORE SERVICE SALE COUNTER


NEARBY?
Answer
Nokia
Samsung

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No; of people
69
31

DEMAND ANALYSIS OF SAMSUNG & NOKIA CELLPHONES IN INDIAN MARKETS

Out of 100 respondent 69 says Nokia provide more service sale counter nearby while
only 31 in the favors of Samsung.

WHICH COMPANY HAS MORE CELL MEMORY STORAGE?


Answer
Nokia
Samsung
Other

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No: of people
68
29
3

DEMAND ANALYSIS OF SAMSUNG & NOKIA CELLPHONES IN INDIAN MARKETS

Out of 100 respondents 68 says Nokia mobiles has more memory storage & 29
respondents says Samsung mobiles while only 3 respondents in favors of others.

WHICH COMPANY HAVE TECHNICAL MAINTAIN & ADDITIONAL (LIKE


LONG LIFE)?
Answer
Nokia
Samsung

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No: of people
65
35

DEMAND ANALYSIS OF SAMSUNG & NOKIA CELLPHONES IN INDIAN MARKETS

Out of 100 respondents 65 in the favors of Nokia & only


Samsung

35 in favors of

WHICH ARE REASONS FOR USING LUMIA 800 OR SAMSUNG NOTE?


Answer
Wap
Just to talk it
Download files
GPRS function
Receive mails
Others

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No: of people
21
18
13
12
20
16

DEMAND ANALYSIS OF SAMSUNG & NOKIA CELLPHONES IN INDIAN MARKETS

Out of 100 respondents 21 says they using their mobile models reason because of
good wap service , 18 using just to talk it , 13 using for download files , 12 in the
favor of GPRS function , 20 says they using their mobile models because their
handsets have receiving the mails , 16 respondents in the favors of Others.

WHY DO YOU LIKE BRAND YOU CHOOSE?


Answer
Function
Advertisement
Brand name
Quality
Price
Appearance

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No: of people
26
20
19
19
14
02

DEMAND ANALYSIS OF SAMSUNG & NOKIA CELLPHONES IN INDIAN MARKETS

Out of 100 respondents 26 like their brand because of their functions, 20 respondents
choose their brand because of Advertisement, 19 in the favors of Brand name, 19 in
the favors of quality, 14 in the favors of Price, & only 2 like respondents like their
brand because of Appearances.

WHAT KIND OF MODEL DO YOU PREFER?


Answer
Slim
Thick
Light
Medium
Large
Heavy

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No: of people
33
25
14
11
11
06

DEMAND ANALYSIS OF SAMSUNG & NOKIA CELLPHONES IN INDIAN MARKETS

Out of 100 respondents 33 says they prefer Slim models, 25 prefer thick handsets, 14
respondents prefer light mobiles, 11 prefer medium, 11 prefer large handsets & only 6
respondents says they prefer Heavy mobiles.

4.3 FINDINGS OF STUDY


Few years back mobile phones were not common among the consumer. But with
the mobile revolution now we can find almost every consumer with mobile
phone.
Most of the consumer prefers NOKIA then SAMSUNG and least prefer other.
Mostly the consumers are satisfied with the services provided by the different
mobile companies.

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Maximum numbers of respondents were attracted towards the price & battery and
the least like the style and memory.
Maximum number of consumer are loyal to their particular service providers and
they were using there mobile since 1 to2 years.

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CHAPTER 5

5.1 CONCULSION

In order to achieve objectives and resolve crises, Nokia and Samsung must be
carefully in their decision making for the recent development and future plan. Nokia
and Samsung both are facing Apple, Android and emerging threats from new smart
phone platforms like Windows Phone 7, so in order to make the product be
competitive in the market, they must upgrade their products level. Recent
development for Nokia, it decides to boost the application development. This action is

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to ensure that applications will continue to be compatible with future evolutions of


Symbian. Meanwhile for the recent development of Samsung is the official launch of
Theme support services in Samsung Mobile Innovator on 13 th Oct, 2012. Besides that,
Samsung Mobile Innovator also terminates the support for Symbian. Samsung also
develop online store-Samsung Apps website, where consumer can download musics,
games or applications for free or a price.
Furthermore, Nokias future plans will still focus on the research and development of
mobile phone. The company future outcomes are not smart phones, not converged
devices, but devices that intended to replace both PCs and mobile phones. On the
other hand, Samsungs mobile future plan is to focus in developing its own OS for
mobile phone which is Samsung Bada. As for they focus in developing in its own
Bada OS and Samsung apps, its showing Samsung will make itself independent from
others. In contrast, Nokia stress in provide full-on mobile computers in future while
Samsung focus in provide better mobile, OS and variety of applications in future.
In conclusion, Samsung has more variety mobile phones as compared to Nokia; it
gains advantages in marketing the products to greater area of consumer market to
meet their needs.

BIBLIOGRAPHY
BOOKS
Research Methodology
Marketing Management
REFERENCES

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By C.R Kothari
By Philip Kotler

DEMAND ANALYSIS OF SAMSUNG & NOKIA CELLPHONES IN INDIAN MARKETS

http://developer.bada.com/apis/index.do
http://www.samsung.com/my/business/index.html
ttp://www.samsung.com/my/aboutsamsung/citizenship/environment.html
http://www.gartner.com/it/page.jsp?id=1466313
http://www.samsung.com/my/consumer/mobile-phone/mobile-ex.idx?

pagetype=type_p2&
http://www.nokia.com/about-nokia/company/vision-and-strategy
http://www.nokia.com/environment/recycling/why-recycle
http://my.samsungmobile.com/news-events/promotion-list.do
http://innovator.samsungmobile.com/bbs/tech/view.do?

boardName=technology&messageId=99534
http://www.samsung.com/my/aboutsamsung/corporateprofile/vision.html

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