TERM PAPER

OF

MARKETING MANAGEMENT

Topic:

You are a mobile phone manufacturer. Now your

competitors have developed a similar offering could be
repositioned in an attempt to improve its profitability.
What information is required and how would you use it to
decide what is to be done.

1
Submitted To: Submitted By:

MR. KRISHAN GOPAL RAHUL

TARGOTRA

ROLL NO – A17

REG NO - 11000047

ACKNOWLEDGEMENT

The satisfaction and euphoria that accompany the successful

completion of our Term paper would be incomplete without the
mention of the people who made it possible and whose constant
guidance & encouragement crowned our efforts with success. We
express our sincere gratitude and thanks to Mr. KRISHAN GOPAL
for his support, guidance and valuable suggestions without which we
would not have been able to complete this project. We are also
thankful to all the persons for their contribution who helped us in this
study.

YOURS SINCERELY

Rahul Targotra

2
INTRODUCTION:

Mobile phones have a huge market in the world and especially in India. With the inset of
multi- nationals the want for a better lifestyle has turned into a need and more precisely the
mobile has become a necessity rather than a luxury commodity. Wireless and cellular phones
are soon picking up the market in India as the demands of the consumers are growing. The
mobile phone market comprises of corporate giants playing in a cutting edge competitive
environment. The market in the system namely MOTOROLA, NOKIA, SAMSUNG, SONY
ERRICRSON, LG, VODAPHONE, ETC. Introduce latest mobile phone models at regular
intervals in order to keep the smaller fishes aware of their superiority in the business. The
range of accessories available for each handset caters to the demands of all kinds of users.
With the resign living standards many mobile phone store have come up in India that offer
the entire range available along with special offers and free gifts. The mobile phone sales
have touched a new high ever since the introduction of technologies like camera, game,
polyphonic ringtones, extendable memories in the form of memory card, video recording,
Bluetooth, WI-FI, GPRS, etc.

Carrying a camera or a camcorder is no longer liability as you can capture any image in your
mobile phone and then transfer it to a computer with the help of a USB connector or a card
reader of the mobile phone memory card or use the Bluetooth, WI-FI, GPRS, operating for
data transfer. Mobile phones game have captured the interests of youngsters and adults alike
many people actually addicted to them.

The large and bulky gaming devices have reduced to either handhold video games that are
certainly passé or the play stations that are way to expensive. The mobile phones offering
various gaming software’s duly fill up the void. Introduction of polyphonic ringtones have

3
been in literal sense music to the ears of the users. Music players supporting the entire
popular downloadable music format available and FM radio have reduced the role of music
systems in the lives of amateur music lovers. In built and extendable memory has enabled
storage of more data, music, video etc.

Mobile to Mobile and Mobile to computer transfer of data is possible via Bluetooth, infrared,
WI-FI, GPRS.USB Connector, WAP provided interactive data services such as Email, music
downloads, news etc. With all these available techniques, the Indian mobile users have a vast
choice served to them.

Mobile stores in India offer competitive prices to suit all the pocket needs along with
farfetched facilities like finance schemes foe mobile phones and best buy deals. Online
purchases can also be made on websites like eBay and Indian housing. We can find web
portals developed into a mobile phone gallery, while some having a special segment
dedicated to the reviews of the latest models and handsets available in the Indian market.

The consumption of mobile phones in India is touching new heights with the boom in the IT
industry. The centre places of the IT revolution in India, Bangalore, Chennai, Delhi,
Hyderabad and Mumbai boast of numerous mobile phone connections. Consequential to the
arrival of newer and higher varieties in the market, comparison among handsets as well as
companies is inevitable.

As a promotional tool, the leaders in the field like MOTOROLA, NOKIA, SAMSUNG, LG,
SONY ERICSSON, VODAPHONE, have ‘special mobile phones coming soon’ sections.
They also make regular market surveys to keep the mobile phone prices in India affordable to
the mass consumers and luring to the luxury consumers.

The mobile revolution is finally here in the form of m-learning, which is a natural extension of
e-learning. In a span of five years, Mobile learning or m-learning has made an exponential
leap from theory explored by academicians to a real contribution to learning. Globally
speaking, the kind of penetration that mobile phones have reached is astounding and no other
device can come any closer, not even computers. No demography is immune from the mobile
phone and it has slowly become associated with the youth in a bigger way. The mobile
revolution is finally here in the form of m-learning, which is a natural extension of e-learning.
In a span of five years, Mobile learning or m-learning has made an exponential leap from
theory explored by academicians to a real contribution to learning. Globally speaking, the

4
kind of penetration that mobile phones have reached is astounding and no other device can
come any closer, not even computers. No demography is immune from the mobile phone and
it has slowly become associated with the youth in a bigger way. This kind of digital
communication was unthinkable almost a decade back. M-learning has the potential of taking
learning and knowledge across geographical boundaries and generations due to the fact that it
can be accessed with ease. This brings us to the question what is m-learning and how effective
it really is. In the basic sense of the term, it means learning through the use of mobile devices
and is targeted at people who are always on the move. This kind of training can be given
through mobile phones, PDA’s and digital audio players and even digital cameras. Now let’s
take a step back into the past and ponder over its origin. M-learning actually took roots during
a Pan-European research and development program aimed at a target audience of 16-24 age
groups. This was the group that was at a risk of social exclusion in Europe. There are five
basic parameters for production and development of m-learning and they are:

1:Portable:

If you are using a mobile phone or a PDA, then it’s easier to carry it along with you
everywhere including the restroom. This makes information access through this platform easy
and fast.

2: Social Interaction:

This kind of data can be sent to your friends, colleagues and others via short messages. You
can exchange data with other people and gain considerable knowledge.

3: Sensitive to the Context:

This has a capability of gathering data unique to the current location, environment, and time.
This includes both types of data - real and simulated.

4: Connectivity:

Connectivity plays an extremely important role and is the backbone of the m-learning project.
With the help of a strong connectivity network, one can connect to data collection devices,
other mobile phones, and to a common network.

5
5:Customized:

The most unique capability is to be able to offer customized learning information.

These were the advantages to start with and the first m-learning project was started amidst
much apprehension and anticipation in October 2001. The m-learning project used subjects of
interest for this particular target audience or age group and ranged from football to driving
lessons. This project was estimated at a staggering €4.5m and was supported by the European
Commission's Information Society Technologies (IST) program within the 5th framework. It
was well coordinated and orchestrated program by The Learning and Skills Development
Agency (LSDA) and participating organizations included universities and corporate from the
three EU countries - Britain, Italy and Sweden. This was the first giant step towards that made
m-learning possible. If you are wondering what kind of an infrastructure does m-learning
involve, then it’s not totally cost driven. A basic M-learning infrastructure includes a Learning
Management System, which when put together with a micro-portal interface layer will
facilitate access to m-learning services through a variety of mobile devices and also enhance
it’s reach through web and TV access. Also in case of interfacing with devices having
minimum multimedia functionalities, and for the benefit of learners facing sensory
difficulties, m-learning has developed speech-to –text and vice-versa and SMS facilities. In its
more advanced phase, m-learning development includes support for collaborative learning and
peer-to-peer interaction.

Let’s look at why anyone should gear up for m-learning or why m-learning? First thing first,
most mobile devices have been proven useful in education by being a facilitator of
administration, and teaching aids for practitioners, and also for being able to utilize it as a
learning support tool for learners. Let us take walk through some of the benefits offered by m-
learning.

1. Its offers and interactive learning experience where learners can interact with each
other.
2. It's easier to accommodate several mobile devices in a classroom than several desktop
computers.
3. It is not always easy to work on a computer sitting in a far off village or town in
wilderness, but mobile can be accessed anywhere.

6
 4. Mobile phones, PDAs or tablets holding notes and e-books are lighter and can
facilitate the entire m-learning process with ease unlike bags full of files, paper and
textbooks, or even laptops.
5. Writing with the stylus pen is more effective than using keyboard and mouse.
6. A range of possibilities arise out of this like sharing assignments and working as a
group; learners and practitioners can e-mail, copy and paste text, or even `beam´ the
work to each other using the infrared function of a PDA or a wireless network such as
Bluetooth.
7. Mobile devices can be used anywhere, and anytime, including at offices, home, or
when in transit.
8. These devices engage learners - through mobile phones, gadgets and games devices
such as Game Boys. This makes the device invaluable.
9. This technology may contribute to combating the digital divide, as mobile devices are
generally cheaper than desktop computers.
10. The size, shape, weight and portability of mobile devices have made them extremely
effective for users with permanent or temporary disabilities.

On the flip side of it, every technology has its curse or disadvantages and m-learning through
mobile devices is no different. Some of the disadvantages of m-learning through mobile
devices are:

1. The small screens of a mobile or PDA limits the amount and type of information that
can be displayed at a given time.
2. The memory or the storage capacity is limited vis-à-vis a computer or laptop.
3. It is important to have fully functional devices and batteries have to be charged
regularly. At times, a discharged battery can result in loss of important data.
4. It's difficult to work on moving graphics, especially on mobile phones, although 3G
and 4G will eventually facilitate this.
5. Bandwidth may degrade with increasing users when using wireless networks.

But then every new technology or technology driven platform or development will find
obstacles on the way. Mobile learning is currently the most useful as a supplement to ICT,
online learning and other traditional learning methods, and is playing a central role in
enriching the learning experience. It is now widely believed and has been proven in various

7
countries that mobile learning could and has been a huge factor in getting disaffected young
adults to engage in learning, where traditional methods have failed. This is the new world and
everything is changing – the market, the need, the people. M-learning is the future.

Market share of Mobile companies:

Quantity Market Shares by Gartner

(New Sales)

BRAND Percent
Nokia 2009    36.4%
Nokia 2010    28.9%
Samsung 2009    19.5%
Samsung 2010    17.6%
LG Electronics 2009    10.1%
LG Electronics 2010    7.1%
Research In Motion 2009    2.8%
Research In Motion 2010    3.0%
Apple 2009    2.1%
Apple 2010    2.9%
Others-1 2009    12.6%
Others-1 2010    9.8%
Others-2 2009    16.5%
Others-2 2010    30.6%

8
Mobile phone subscribers per 100 inhabitants 1997–2007.

NOTE: The world's largest individual mobile operator by subscribers is China Mobile with
over 500 million mobile phone subscribers. Over 50 mobile operators have over 10 million
subscribers each, and over 150 mobile operators have at least one million subscribers by the
end of 2009 (source wireless intelligence).

Nokia facing competition in India’s rural market:

Mobile giant Nokia has been a dominant player in the handset market, both in urban as well as
in rural India. It has roughly 60% of the market share in India and rural market contributes
25% of Nokia’s total sale in the country. The main mantra for success in rural areas is the
pricing strategies of firms. The populations in Indian villages have low per capita income and
they have less money to spend on a cell phone. Many booming small business owners in
Indian villages are the main target of cell phone companies as they require a cell phone for
communicating with clients. Nokia is currently the biggest player in the Indian handset market
but now its position is threatened by other local and multinational players in the industry who
are coming up with even cheaper cell phones. However, do not consider Nokia to be a sitting
duck as it has learned important lessons that will be crucial for the company’s survival in the
rural hinterland. Currently Nokia is focusing on the customer service on which it is much
stronger than its competitors. This strategy will help Nokia to maintain dominance in the rural
market in India and stay ahead of its competitors.
Marketing Strategies adopted by my mobile manufacturing company:

1. Customer satisfaction: Market research must be used to find out whether

Customers' expectations are being met by current products or services.

2. Customer perception: this is based on the images consumers have of the

organization and its products, this can be based on; value for money, product
quality, fashion and product reliability.

3. Customer needs and expectations: This is anticipating future trends and

forecasting for future sales. This is vital to any organization if they wish to keep
their entire current market share and develop more.

4. Generating income or profit: This principle clearly states that the need of the

9
organization is to be profitable enough to generate income for growth and to
satisfy stakeholders in the business. Although satisfying the customer is a big
part of a company’s plans they also need to take into account their own needs,
such as:

5. Making satisfactory progress: Organizations need to make sure that their

product is developing along with the market, if a product is developing well, then
income should increase, if not then the marketing strategy should be revised.

6. Be aware of the environment : An organization should always know what is

happening within their designated market, if it is changing, saturation, technological advances,
slowing down or rapidly growing, being up to date on this is essential for
companies to survive.

Pricing strategies:

Cost based pricing:

This involves calculating the cost of production for the product and then adding a mark-up for
profit, usually 10% so a company can make enough profit to re-invest into the business so
they can grow.

Marginal cost pricing:

This is the addition to total cost resulting from the production of and additional unit of output.
If a decision is made to expand by one or more units it will be based on an assumption that the
price of each unit will be least sufficient to cover marginal costs, so that the profit earned on
all previous units is not lower then it previously was.

10
Demand based pricing:

This is usually pricing products based around the customer demand for a product, if the
demand is high, the prices will rise. This is usually used when the product is unique, for
example, a football match or concert. To use this strategy companies must carry out detailed
market research to find out what prices the consumers are willing to pay so they don't over
price their product.

Penetration pricing:

Firms who are trying to establish themselves in a new market and gain instant market share
usually use this strategy. It is a high-risk, high cost strategy that is only an available option to
the bigger companies (like Nokia) who supply to mass markets. Penetration pricing
is based around the idea that a company will set their prices low to encourage customers to
buy their products instead of higher priced, more established brands. The organization may
also boost sales by lowering prices if demand is price elastic. One problem with this strategy
in the mobile communications market (or any other highly competitive markets) is
that price wars will often develop with rival companies and this can limit to the amount of
profit that can be made, and also generate losses due to under-pricing in an attempt to hold
onto market share.

Price discrimination:

This is where companies can charge different prices in different markets, because of the
consumers they are aiming at, for example, rail companies charge different prices for peak
and off-peak travel cards and fares. This strategy is only available for use when the
consumers are unable to undercut higher prices by reselling their products from low priced
markets to high priced markets.
Branding:
Our Phones are seen as being of the highest quality and this is reflected in their massive sales
figures. The fact that they are seen to be such high quality products is partly down to
successful branding, they have a highly recognisable packaging style and the
style of their handsets is similar in every line of production with the company name printed
just above the screen and just below the earpiece. The fact that our company operate such an

11
aggressive marketing strategy has elevated them above the competition as consumers are
fooled into believing that branded products are "better" then un-branded products or products
produced by lesser-known brands such as One Tel and other lesser-known phone producers in
the market.

CONCLUSION:

My revised strategy has a lot of advantages over competitors previous strategy, and I have
listed them below: My target market is one that has never been entered before, so my company will
instantly gain 100% market share, whereas the current target market is saturated and competition for
market share is very strong.

· The products that are being released do not need to be as technically advanced as the ones in
the current market, because my market research showed that the 40+ market do not want
phones that are too complicated and hard to use.

· If product research and development is not needed as much anymore then my company can
afford to decrease its employment numbers and this would save my company a lot of money
every year.

· When entering a new market with no competition a company can charge whatever prices
they want, my company prices can be higher than they currently are and this will increase
income and profitability.

12
 

13