Promotional strategies adopted by TABLET manufacturer in India

RESEARCH PROJECT REPORT

Submitted to

Veer Bahadur Singh Purvanchal University, Jaunpur

In partial fulfillment of the requirement of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

Submitted By- Under the Supervision of:

Piyush Kumar Mr. Vijay Kumar Pandey
BBA 6th Semester Assistant Professor
Roll No. 8031 Department of Business Administration
Enrollment No- PU011/078

2014

Technical Education & Research Institute

Post-Graduate College, Ravindrapuri
Ghazipur - 233001
 Certificate

This is to certify that Suryansha Narayan Singh, pursuing BBA 6th Semester

from this Institute, has prepared the Research project report entitled A study on

growth of Smartphone and tablets marketing in India in partial fulfillment of

the requirements of the degree of Bachelor of Business Administration from

V.B.S. Purvanchal University, Jaunpur, for the session of 2013-2014.

This report is based on bonafied research undertaken by Suryansha Narayan

Singh, under my supervision during the course of sixth semester and fulfills the

requirements of regulations relating to the nature and standard of BBA course of

V.B.S. Purvanchal University.

I recommend that this research project report may be sent for evaluation.

Rahul Anand Singh Mr. Vijay Kumar Pandey

Associate Professor & Head, Assistant Professor,
Dept. of Business Administration Dept. of Business Administration
 Declaration

I, Suryansha Narayan Singh, hereby declare that this research project

report entitled A study on growth of Smartphone and tablets marketing in

Indian has been prepared by me on the basis of research done the course of my

sixth semester of BBA proramme under the supervision of Mr. Vijay Kumar

Pandey, Assistant Professor Department of Business Administration T.E.R.I.

Ghazipur.

This research project report is my bonafide work and has not been submitted

in any farm any university or Institute for the award of any degree or diploma prior

to the under mentioned date. I bear the entire responsibility of submission of this

project report.

30th April 2014

Suryansha Narayan Singh

BBA IV Semester
Department of Business Administration
Technical Education & Research Institute
P.G. College Ghazipur
 INDEX OF CONTENTS

Preface

Acknowledgement

CHAPTER -1

Introduction to the topic

Objective

Importance

Scope

CHAPTER-2

Research Methodology

CHAPTER-3

Data Analysis & Interpretation

CHAPTER-4

Finding & Recommendations

CHAPTER-5

Conclusion

Limitation

Annexure ( Questionnaires )

Bibliography
 Preface

The first real insight of an organization for management student comes only during his

preparation of project work because student first interacts with real practical work. This is first

introduction to industry and its working. This project work synthesize the theoretical concept

learn in the class room and its practical orientation in organization.

In my project I have studied the A study on growth of Smartphone and tablets

marketing in Indian.

The First chapter deals with the introduction of the topic, It also describes the profile and

history of Smartphone and tablets marketing in Indian.

In first chapter I have mentioned institute. This chapter also describes the organizational

structure of both the organization. The objective and need of research is also mentioned in

section of project work.

The Second chapter deals with research methodology. The process of carrying out the

whole research problem is defined in it. It contains information about the objectives of the

research, methods of data collection, sampling and sample design.

Third chapter is data analysis and interpretation. This is the most important section of the

project work. This section contains the analysis of all the data collected so far and they are

interpreted to produce the final conclusion. It contains all the tables and charts which depicts the

result.
 Chapter four contains the finding and recommendation of the research. This is based on

the data analyzed and interpreted in the previous chapter. This is the most important section of

the research report for a report is evaluated on the validity ad correctness of findings.

Chapter five depicted conclusion which concludes the whole report, that is, gives a brief

description of the process employed so far. And later chapters contain bibliography. Which

describes the list of sources from where the matter and information is collected? It contains the

list of books, authors, web sites use etc.

Suryansha Narayan Singh

B.B.A. VI Sem.
 Acknowledgement

Many thanks to the God, who has sent me on this earth and by mercy of him, I would be able to

accomplish this research.

A person who has always encouraged me towards positive and used to say Nothing can be

impossible if you are working hard with heart and soul. The Word regard is very small for

him and I dont know what word will be appropriate for him, that person is my elder Brother

Praveen Rai.

I express my deep sense of gratitude and regards to Mr. Vijay Kumar Pandey (Lecturer, Dept.

of Management Studies, T.E.R.I., P.G. College affiliated to Veer Bahadur Singh

Purvanchal University) under whose guidance, I completed this project, I am thankful to his

valuable guidance, gentle encouragement and pains he took in guiding me throughout the study.

Some of my Friend, Vishal Singh and Avnish Kumar Rai whose suggestion for what is Right

or Wrong has shown my aim and objectives of life.

Again, I heartily express my regard to all the above person mentioned and pray to the God May

live them long.

Suryansha Narayan Singh

BBA 6th Sem.
CHAPTER - 1

INTRODUCTION
 INTRODUCTION
A lot of people think that the new economy is all about the internet. I think that it's being

fuelled by the internet - as well as by cell phones, digital assistants, and the like - but that

it's really about customers.

Patricia Seybold

Today mobile & Tablet phones have moved beyond their primary role of voice communications

and have graduated to become an essential entertaining device for mobile & Tablet users. We are

in an era where users buy mobile & Tablet phones not just to be in touch, todays youth use it to

express their thoughts, for social networking, to show their interests, play games, read news, surf

on the internet, listen to music, chat instantly with friends & families and even check their bank

balances. There are various phone manufacturers providing handsets.

The Indian mobile & Tablet industry is the fastest growing in the world and India continues to

add more mobile & Tablet connections every month than any other country in the world. The

telecom boom in the country provides great opportunity to handset manufacturers and the hottest

segment for these manufacturers is the entry level segment. Among the fastest growing sectors in

the country, telecom has been zooming up the growth curve at a fiery pace. The last few years

saw India adding many firsts to its list of achievements. Some of these are-the world's lowest call

rates (1 paisa/sec), fastest growth in the number of subscribers (15-20 million per month), fastest

sale of a million mobile & Tablet phones (1 week), the world's cheapest mobile & Tablet handset

(`777), and the world's most affordable 3G phone (`4,999).

The market in India is dominated by mobile & Tablet. For mobile & Tablet we have 840 million-

plus users, unlike many other markets, mobile & Tablet is becoming the dominant device for

voice, for value-added services, and increasingly for mobile & Tablet Internet also. Its

somewhat similar to what we saw in Japan in 1999 where, because of the limitation of broadband

and computing. Theres a whole host of services being created around mobile & Tablet. An

effective management of mobile & Tablet services requires an understanding of the factors that

underlie the evolution of the market. Factors such as market potential and timing and speed of

adoption are of great importance for telecom operators for capacity planning. Understanding the

evolution of mobile & Tablet phone market and its likely future trend is equally important for

policy makers.

India is currently facing the onslaught of cheap sub-standard Chinese phones, which occupy as

much as 25 per cent of the market, thanks to the liberal import policies of India. The boost to

exports to mobile & Tablet phones and their parts will encourage local manufacturing, which is

the best answer to compete with the cheap sub-standard Chinese phones imports. Mobile &

Tablet phone exports from India could double as a result of Commerce Ministry granting 2 per

cent Focus Product Scheme (FPS) on mobile & Tablet phone exports in the Foreign Trade

President of Indian Cellular Association said that the special incentive accorded to mobile &

Tablet phone exports could result in the doubling of exports in the next 3-5 years from the annual

level of `13,000 crore to `14,000 crore if other enabling policies are put in place. India is already

a base for worldwide quality manufacturing of mobile & Tablet phones.

MOBILE & TABLET HANDSETS V/S FDI-
 Mobile & Tablet & Tablet Internet goes Mainstream

The ubiquitous nature of mobile & Tablet phones has created a massive

opportunity for mobile & Tablet Internet businesses. Consider the

following:

There are over 2.4 billion Internet users in the world, of which 1.5

billion access the Internet through their mobile & Tablet devices either

as a primary or a supplementary device.

In less than 7 years, the number of smartphone users has already crossed

1 billion as against 1.5 billion PC users; Worldwide PC shipments

declined by 10.9% in Q2 2013, the sharpest decline since 2001

Shipments of Android-powered Internet devices exceeds that of

Windows-powered devices average time spent on mobile & Tablet (non-

voice) globally has already grown to 82 minutes per day.

Facebook has crossed a billion monthly active users, of which over 819

million access it through a mobile & Tablet device; 41% of Facebooks

revenues came from mobile & Tablet in 2013.

iTunes is the largest music vendor in the world by some distance and

Pandora is the largest radio station in the world Google generated around

$1 billion out of its $13.9 billion revenues from mobile & Tablet in Q1

2013.

38% of Internet users in China and 70% of Internet users in Egypt use

Internet only on their mobile & Tablet devices while the numbers

themselves are significant, what is more astounding is the

growth/acceleration which is being witnessed on all things mobile

devices, connections, traffic, advertising, subscriptions, travel and

physical goods. Mobiles themselves are a twenty year old phenomenon

and now they are creating the platform for another revolution.

Smartphones are expected to grow at a CAGR of 20% to reach 2.2

billion by 2015.

Tablet sales are expected to grow at a CAGR of 33% from 118 million

units in 2012 to 369 million units by 2016

Android is expected to overtake Windows to be the most used platform

on computing devices by 2016, with 2.3 billion devices.

Mobile advertising has nearly doubled (95% growth in first half of 2012)

in the US over the last year and is expected to continue with the same

momentum M-tailing (purchase of products through mobile devices) has

grown rapidly over the last two years to reach 11% of total e-tailing in

the US in 2012, and is projected to reach 24% of overall e-tailing by

2016.

The Internet demonstrated the ability of businesses to scale rapidly. The

mobile ecosystem is demonstrating that it can improve the reach of

Internet by a few multiples. The growth of social media and the ability

of mobile devices to add location to the product mix are providing

opportunities for businesses to fundamentally alter the way users engage

socially or the manner in which they purchase goods and services. This

is leading to the reimagination of several business models.

 SoLoMo at the heart of mobile businesses

As highlighted in our previous report, SoLoMo models are

providing the next battleground for digital businesses. At the same time,

they are providing opportunities for newer players to dream big and

challenge the status quo. It is easier to think of SoLoMo models in

categories like music, where delivering locally relevant music on mobile

and encouraging social engagement is relatively easy. However, even in

other segments like travel and ecommerce, SoLoMo models are

challenging the manner in which service providers engage with target

consumers. We see SoLoMo as a theme which runs through all things

mobile, and we discuss its impact at several places in this report.

The money continues to flow

Despite the dull global investment climate, the mobile has seen high

levels of investment activity over the last year. Facebook set the tone

1 early with its headline grabbing acquisition of Instagram , a 13-person

mobile start-up valued then at a billion dollars, barely a week after its

VCs invested $50 million at a valuation of $500 million.

In a further sign of the times, Microsoft recently announced the

acquisition of Nokia's devices and services business. 4 out of the 5

largest VC fundings were for non-US companies, indicating the global

nature of mobile business models.

India goes Mobile

The revolutionary success of Indias mobile industry is well known.

What is not as well articulated is how the mobile ecosystem is driving

Internet penetration in India. The following facts present a glimpse of

that phenomenon:

India has more than 160 million Internet users, of which 86 million

access Internet using their mobile devices In the last 3-4 years, the

number of users who access the Internet through a 3G connection has

grown to round 22 million, To put things in perspective, compare this

with the 15 million fixed line broadband connections accrued over the

last 17 years There are over 36 million smart phone users as against c.

60 million PC users 9% of overall Internet page views in India come

from mobile devices Over 40% of searches on Google originate from

mobile device 30% of Facebook users in India are mobile-only Internet

users and 30% of new registrations are coming through mobile

LinkedIn ranks India among its top 4 growth markets for mobile usage

While e-commerce and digital advertising are acknowledged to have

attained a certain critical mass in India, mobile Internet is yet to break

into public consciousness.

Mobile Internet based businesses have not scaled to levels where belief

in the ability to monetize through the channel is established. Several

models are still in the trial stage, but there are enough leading indicators

to prove we may be on the cusp of a very exciting phenomenon. Some of

these include: Within a year of Book my show launching its mobile app,

bookings through the app

increased to 25% of its overall bookings 20% of overall searches and

12% of bookings for Cleartrip come from its mobile appng Pay has built
a mobile mall with considerable revenue traction Indians seem to be

more open to paying for content on mobile - the paid app market

estimated at INR 300 Cr, is far higher than what Indian consumers have

ever been paid for digital content consumption.

In addition to the above, mobile specific models which utilize location

information, such as Olacabs, TaxiForSure, Adnear and DelightCircle

are beginning to see significant traction.

While it is essential to look at current monetization opportunities, it is

also necessary to look at the potential which may be unlocked as the

ecosystem falls in place. Looking back at the evolution of the digital

media market, there have been a few critical elements of the

ecosystem that need to achieve critical mass for the potential of the

medium to be fully realized (Exhibit)

Devices
Penetration of Internet capable mobile devices in India

is way more than expected.

What really is a smart phone?

The key device categories which enable a person to access mobile

Internet include feature phones, smart phones and tablets. There are

other devices like gaming consoles which could access mobile Internet,

but those add up to a very small number in India at this point in time.

There has been no clear distinction between a feature phone and a

smartphone for very long even though multiple definitions exist. The

line seems to have got even more blurred with the introduction of richer

feature phones such as the Nokia series 40 phones.

For this analysis, we borrow the definition of a smart phone from IDC:

The penetration of Internet capable mobile devices (feature phones and

smartphones) in India is way higher than most people imagine. There

were 431 million Internet capable mobile devices in use in India as of

December 2012. This established base of devices creates a robust

platform for widespread use of mobile Internet.

Smartphone is a mobile phone which runs on a high-level mobile

operating system such as Android, iOS, Blackberry, Symbian or

Windows Phone, which enables the device to run third party applications

(in addition to basic voice telephony services).