COMPARATIVE ANALYSIS OF APPLE VS.

SAMSUNG

Semester Project / Dissertation Topic submitted in partial fulfillment for the award of Master in Business Administration 2012-13 BY MOHAMMAD IRFAN MBA, IIND SEM Roll No-1200122044 Under the guidance of Dr. YASHIR ARAFAT ILAHI (Sr. PROF.)

DEPARTMENT OF BUSINESS MANAGEMENT INTEGRAL UNIVERSITY Integral University, Lucknow Dasauli, P.O. Bas-ha Kursi Road Lucknow - 226026

DECLARATION

I declare that the project entitled COMPARATIVE ANALYSIS OF APPLE VS. SAMSUNG under the guidance of Dr. YASHIR ARAFAT ILAHI (DEAN), Integral University submitted in partial fulfillment of the requirement for the award of the degree of Master of Business Administration to Integral University, Lucknow is my original work carried out and not submitted for the award of any other degree, diploma, fellowship or other similar or prize to any other institute, organization or university by any other person.

MOHAMMAD IRFAN MBA, IIND SEM Roll No-1200122044

ACKNOWLEDGEMENT

I am thankful to Dr. YASHIR ARAFAT ILAHI (Sr. PROF.), Integral University for his valuable inspiration and guidance provided me throughout the course of this project. She has patience and critically gone through the subject matter.

I would like to take opportunity to express my gratitude towards all of them who have contributed directly or indirectly in my project work.

At last I would like to extend my deep sense of gratitude to my friends, colleagues and each individual who directly or indirectly help me during the project work.

EXECUTIVE SUMMARY
The problem staring at the face of Apple today is its loss of focus. It failed to innovate with the technology curve and understand the changing consumer needs. Apple seemed to successfully do what marketing experts say you cant do: serve all segments in a market. Apple sold very high -end, technologically advanced phones and simple, inexpensive phones, all under the Apple brand. The branding structure was very simple: the Apple brand with a product number, the companys newest smartphone ofcourse, many branding problems only surface over time. And that is certainly the case for Apple . By playing in all segments of the market, Apple watered down its brand, eroding its meaning. The company stands on a double edged sword of surviving and reviving. Apple 's new Apple phones are considered to be its last shot at success by analysts, who believe that if the new devices fail, the company will not be able to rise from the ashes. The Finnish manufacturer has lost ground to Apple iPhone and Samsung Galaxy phones. In addition to this, Apple needs to develop a long term strategy to stay competitive and profitable in the industry. This study primarily targets the strategy of Apple and its upcoming products. All the major sectors of product management are studied. SWOT Analysis & PESTLE Analysis were carried out and PORTERs 5 Forces Model w as applied on Apple during this study while doing competitor analysis at each step. Promotion and Pricing strategy was studied and distribution channels were analysed to find the best suitable strategy for the future using current resources and competencies. Apple has lost its crown and the acceptability in the market especially like India. Following a short term strategy to increase brand equity is the first and most important task at hand. It has to be efficiently promoted and aggressively sold to generate survival resources. Finally, Apple needs a long term strategy to sustain the ever increasing competition in the otherwise very profitable industry.

TABLE OF CONTENT

Cover Page Acknowledgement Executive Summary Index Chapter - I : Conceptual Description of topic Chapter - II : Brief Profile of the Company Chapter - III : Research Methodology In Case of Primary data Collection and Secondary Data Analysis i. Objective ii. Research Design Chapter - IV : Analysis and Interpretation of Data Chapter - V : Findings, Conclusion and Suggestions Bibliography Annexures Questionnaire

Chapter - I Conceptual Description of topic

INTRODUCTION

The cellular telephone (commonly mobile phone or cell phone or hand phone) is a long range portable electronic device used for mobile communication. In addition to the standard voice function of a telephone, current m o b i l e i - p h o n e s c a n s u p p o r t m a n y a d d i t i o n a l services such a s sessor text messaging, email, switching for a c c e s s t o t h e Internet, & MMS for sending and receiving photos and video. Most current mobile i-phones connect to a Cellular network of base stations, which is in turn interconnected to the public switched telephone networks i-phones. Cellular telephone is also defined as a type of short-waveanalogor digital telecommunication in which a subscriber has a wireless connection from a mobile telephone to a relatively nearby transmitter. The transmitter's span of coverage is called a cell. Generally, cellular telephone service is available in urban areas and along major highways. As the cellular telephone user moves from one cell or area of coverage to another telephone is effectively passed on to the local cell transmitter. A cellular telephone is not be confused with a codeless telei-phones.

INTRODUCTION OF SAMNSUNG 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. Notable Samsung industrial subsidiaries include Samsung Electronics (the world's largest information technology company measured by 2011 revenues), Samsung Heavy Industries (the world's second-largest shipbuilder measured by 2010 revenues), and Samsung Engineering and Samsung C&T (respectively the world's 35th- and 72ndlargest construction companies). Other notable subsidiaries include Samsung Life Insurance (the world's 14th-largest insurance company), Samsung Everland (the oldest theme park in South Korea) and Cheil Worldwide (the world's 19th-largest advertising agency measured by 2010 revenues). Samsung produces around a fifth of South Korea's total exports and its revenues are larger than many countries' GDP; in 2006, it would have been the world's 35th-largest economy. The company has a powerful influence on South Korea's economic development, politics, media and culture, and has been a major driving force behind the "Miracle on the Han River".

INTRODUCTION OF APPLE 2) Overview of company:Apple Inc. is an American corporation that designs and manufactures computer hardware, software and other consumer electronics devices. The company is best known for their Macintosh personal computer line, Mac OS X, extremely loyal user-base, iTunes media application,
the iPod personal music player and i I-phones. The company headquarters is in Cupertino, California, CEO and co-founder is Steve Jobs and the company boasts 284 retail locations spanning 106 different countries. (apple, 2011)

Apple was established on April 1st, 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne to sell
the Apple I personal computer kit. Steve Jobs was said to own 45% of the company, Steve Wozniak with 45% and Wayne with the remaining 10%. While Jobs and Wozniak were young with little to no assets, Ronald Wayne was older with personal assets and was scared to put these at risk. This resulted in Wayne selling his share of the company back to Jobs and Wozniak for a reported 800$. Today Waynes share of the company would be worth over 3 billion dollars. (Michael Dougherty, 2010)

In December 1980, Apple went public. Its offering of 4.6 million shares at $22 each sold lot within minutes. Second offerings of 2.6 million shares quickly sold out in May 1981. As of September 25, 2010, the Company had opened a total of 317 retail stores, including 233 stores in the United States and 84 stores internationally.(apple b,2011) 3) Product portfolio:Apple has different segment in its product portfolio: - (apple, 2011) 1) Macintosh computers 2) I I-phones (I Phone 3g, I Phone 3gs, I Phone 4) 3) I Pad 4) I Pod 5) Software (I Tunes and other application software)

Source: .(ismashphone, 2009)

Chapter - II Brief Profile of the Company

4) Overview of Smartphone industry:-

A Smartphone is a mobile phone that offers more advanced computing ability and connectivity then ordinary feature phone. Smartphone may refer to handheld computer integration with a mobile. Smartphone are completely built with operating system software which allows user to use phone instead of their laptop or computers. In 2011 Smartphone are experiencing accelerating rates of adoption: 22% of consumers already have a Smartphone, with this percentage rising to 31% amongst 24-35 year olds. (ismashphone, 2009)

List of companies involved in manufacturing Smartphone are as follows :- (ismashphone, 2009) 1) Apple 2) Nokia 3) Blackberry (RIM) 4) HTC 5) Fujitsu 6) Others (includes Motorola, Sony, and everyone else) Apple's Smartphone market share growth over 1 year has been 10 times that of any other of its competitors. However, Apple is still only third in line when counting the number of units sold by each major Smartphone manufacturer. Nokia is first, selling a whopping 18,441,000 in the 2nd quarter of 2009, and RIM (Blackberry) is 2nd with 7,678,900 units sold.

5) Product overview:Apple i Phone 4 is the latest i phone series phone launched by apple inc. For this report i have chosen this product and further marketing analysis is done in following report.

Source: (apple, 2011)

6) Audit of marketing environment:1) Macro Environment

Source(learning marketing, 2005)

1) Political factor:In 2010 Emergency Budget the Chancellor announced an increase in the standard rate of VAT from 17.5 per cent to 20 per cent effective from 4 January 2011. This would affect the total selling price of i phone 4. (apple store, 2011) GATT laws can interfere selling of i phone 4 in global context. (duke law,2004) As most apple iphone is sold in terms of contract with other telecommunication companies, sometimes customer finds problem to finish this contract and thus laws of such contract affect the consumer buying decision.

2) Economic factor:-

Average Weekly Earnings Regular pay growth decreases

Source (national statistics, 2011) As shown in graph average weekly income of people in UK is going slightly down from February 2011, this may affect the purchasing power of consumer in future. Unemployment rate of UK is 7.8% which is quite high and can affect the sells of company. Inflation CPI 4.0%, RPI 5.3%

Source(national statastics b,2011) Inflation rate was 4.0 per cent in March 2009, down from 4.4 per cent in February 2011. As inflation is decreasing but still is quite high which can affect consumer purchasing decision. 3) Socio-cultural factor:-

Population Estimates UK population grows to 61.8 million

Population: by gender and age, mid-2009

Source(national statastics c,2011) The estimated resident population of the UK was 61,792,000 in mid-2009, and Children aged
under 16 represented approximately one in five of the total population and youth population between 20-40 is also high, thus apple has larger scope as it target the customer between this group.

GDP per head in Britain was 23,500 in 2008 which means standard of living in Britain was high. As apple group is targeting the customer with high income earning group, can get larger customer group in Britain. (David smith, 2007) As per capita income and economy is growing after the great recession most people want to achieve higher slandered of living by purchasing premium product. Hence, it widened the market for apple iphone. As compared to Asian countries the culture of UK is independent that means individual are
free to take their own decision after 18 years. Which also influenes the buying decision of consumer.

4) Technological factor: Apple iphone 4 is loaded with latest technology going in market. But Innovation in technology takes place very fast thus companies has to keep updating their product with new technology. Soon apple is going to launch apple iphone 5, hence apple iphone 4 would be out of market.

2) Micro environment:-

Michel Porter identified five forces for analysing the micro environment (Elizabeth, H. and Terry O, 1996)

SWOT ANALYSIS Strength: Innovative The i Phone has an innovative touch screen that is patented and unmatched by any other mobile product today. It also has many functions of other mobile products all in one device. Compatibility The phone will work with iTunes and with other Mac/Apple products like the new Apple TV, allowing for wireless connectivity to the big screen. The i Phone is also compatible with many Mac OS software tools. Mac OS compatibility means that the i Phone has limitless potential for upgradeability. Ease-of-Use The all-new touch screen interface making operations extremely intuitive. It is radically different from those of other i-phones or PDAs that recognizes multi finger gestures, just as the human hand normally behaves. The Mac OS X application imbedded into the i Phone assures users will easily recognize what they can do Brand awareness Apple is well known for cool essential gadgets like the iPods, ipad, macbook and Smartphone along great technological innovations like the original Macintosh. Price At 418, the i Phone would be sold at a reasonable price for its value. It outperforms any other PDA or smart phone on the market and the convenience of having multiple features combined into one-device increases its overall value. Quality The i Phone has one of the brightest and most scratch resistant screens in the market. It also has a fine metallic finish that is durable and light. The software suite included is also unsurpassed with their ease of use and resistance to computer viruses.

Weakness: Image The Apple brand is not targeted towards business people, which most smart i-phones have targeted. Does not have a reputation as being compatible with the corporate world. Price Apple does not yet offer lower priced models for more cost conscious consumers. User Interface Touch screen interfaces suffer from the problem of gorilla arm, in which long-term use of a flat, solid surface for input becomes uncomfortable. Opportunity: Increasing demand and expansion to a new target segment Apple will continue to target the business productivity market who wants an all in one computing solution. But as technology advances and smart i-phones get cheaper companies also have a great opportunity to target people who want entertainment. Apple will attract these consumers and get iPod users to upgrade to i I-phones. Upgradeable Since software on the i Phone can be updated, it allows new exciting features to be brought in which take advantage of the touch screen ability. Future versions will also be hardware upgradeable. Partnerships Apple can collaborate with many powerful global mobile phone companies to flood the market with iI-phones, which reduces costs in marketing and increases revenue through long-term agreement deals. Threats: -

Increased competition Smart i-phones are easier to make now more than ever. More companies may enter the market, given that there are few barriers to entry other than patents. Competitors or even Apple contractors can maneuver around patents to create similar devices. Downward pricing pressure The i Phone is marketed as a high-end phone, but phone prices are almost certainly going to fall when other companies undercut the price of i I-phones. 8) Marketing mix:Product According to philip Kotler a product is anything that can be offered to a market for attention,
acquisition, or use, or something that can satisfy a need or want. Therefore, a product can be a physical good, a service, a retail store, a person, an organisation, a place or even an idea. Products are the means to an end wherein the end is the satisfaction of customer needs or wants.

Kotler states five product levels, the core benefit, the basic product, the expected product, the augmented product and the potential product.

Source (Philip k 1969) Each level adds more customer value, and the five constitute a customer value hierarchy. The most fundamental level is the core benefit: the fundamental service or benefit that the customer is really buying. A i phone purchaser is buying entertainments and telecommunication. At the second level the marketer has to turn the core benefit into a basic product. Thus a i phone manufacturer will include touch screen, camera, other application, speakers etc. At the third level, the marketer prepares an expected product, a set of attributes and conditions buyers normally expect when they purchase this product. I Phone buyers expect internet facility, good sound system, user friendly instrument, good camera, good touch screen system. At the fourth level, the marketer prepares an augmented product that exceeds customer expectation. I phone manufacturer can include a good Wi-Fi internet system, 10 mega pixel camera, and other advanced application.

At the fifth level stands the potential product, which encompasses all the possible augmentations and transformations the product might undergo in the future. Successful companies add benefits to their offering that not only satisfy customers, but also surprise and delight them. Delighting is a matter of exceeding expectations. Product name :- Apple iPhone 4 Brand: Apple INC

Product specification:- (apple 2011) Launch date:- 27 june 2010 Size and weight Height:4.5 inches (115.2 mm) Depth:0.37 inches (9.3 mm) Location Assisted GPD Digital compass Wi-Fi Cellular Power and battery Built-in rechargeable lithium-ion battery Charging via USB to computer system or power adapter Talk time: Up to 7 hours on 3G Up to 14 hours on 2G Standyby time: Up to 300 hours Capacity 16GB or 32GB flash drive Colour Black Display Retina display 3.5-inch (diagonal) widescreen Multi-Touch display 960-by-640-pixel resolution at 326 ppi Width:2.31 inches (58.6 mm) Weight:4.8 ounces (137 grams)

800:1 contract ratio (typical) 500 cd/m2 max brightness (typical) Fingerprint-resistant oleophobic coating on front and back Support for display of multiple languages and characters simultaneously Price: As Apple iphone is well known brand in domestic as well international market and has covered maximum market share in Smartphone industry. Apple iphone 3 and iphone 3gs were successful in market thus, apple at launching of iphone 4 decided to set their prices on basis of market skimming pricing rather than premium pricing strategy. Market skimming pricing is setting a high price for a new product to skim maximum layer from the segment willing to pay the high price; the company fewer but more profit. (Philip k.and gary.a, 2006,pp.353)

Whereas premium pricing is use a high price where there is uniqueness about the product or service. This approach is used where a substantial competitive advantage exists. (Philip k.and gary.a, 2006,pp.353)

Apple can use any 1 of the pricing strategy as their brand value and product were in demand in market. Because of their new technology customer were willing to pay higher price for the iphone 4. But as product goes old and other competitors enter the market with same technology apple has to reduce their price to be in market. Thus, apple used market skimming pricing strategy to cover maximum market share and revenue in beginning and then to lower their price according to competition.

Current price of apple iphone 4 is 16GB is 510 and for 32GB 612.(apple store 2011) Place

Channels of distribution are set of interdependent organisations involved in the process of making a product or service available for use or consumption (Kotler P., thr1999. pp. 489-496). There are two types of distribution network 1) direct distribution channel 2) indirect distribution channel. Indirect Channel The indirect channel is used by companies who do not sell their goods directly to consumers. Suppliers and manufacturers typically use indirect channels because they exist early in the supply chain. Depending on the industry and product, direct distribution channels have become more prevalent because of the Internet.(Osmond Vitez, 2011) Direct Channel A direct distribution channel is where a company sells its products direct to consumers. While direct channels were not popular many years ago, the Internet has greatly increased the use of direct channels. Additionally, companies needing to cut costs may use direct channels to avoid middlemen markups on their products. .(Osmond Vitez, 2011) Indirect Channel Methods Distributors, wholesalers and retailers are the primary indirect channels a company may use when selling its products in the marketplace. Companies choose the indirect channel best suited for their product to obtain the best market share; it also allows them to focus on producing their goods. .(Osmond Vitez, 2011) Direct Channel Methods Selling agents and Internet sales are two types of direct distribution channels. Selling agents work for the company and market their products directly to consumers through mail order, storefronts or other means. The Internet is an easy distribution channel because of the global availability to consumers. .(Osmond Vitez, 2011)

Apple uses both types of distribution channel to sell their product in UK. As apple doesnt have any manufacturing plant in UK they have to import from USA. Apple has

their own online stores thus customer those who want to purchase iphone can order there. Thus apple uses direct channel for such customer. Apple also has almost 30 retail store in UK, hence they follow indirect distribution channel to sell their final product to their customer.(apple store,2011) As shown in the distribution Chart, Company uses both one level and two level distribution channels to make available their product to end user.

Distribution channel of apple INC

Promotion Promotion is all about companies communicating with customers. A business' total marketing communications programme is called the "promotional mix" and consists of a blend of advertising, personal selling, sales promotion and public relations tools.(tutor2u, 2004) 1) Advertising Any paid form of non-personal communication of ideas or products in the "prime

media": i.e. television, newspapers, magazines, billboard posters, radio, cinema etc. Advertising is intended to persuade and to inform. The two basic aspects of advertising are the message (what you want your communication to say) and the medium (how you get your message across) (tutor2u, 2004) (2) Personal Selling Oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale".(tutor2u, 2004)

(3) Sales Promotion Providing incentives to customers or to the distribution channel to stimulate demand for a product. (tutor2u, 2004) (4) Publicity The communication of a product, brand or business by placing information about it in the media without paying for the time or media space directly. otherwise known as public relations. (tutor2u, 2004) Apple has its own online store so they advertised their product there and costumer easily get all information about the product from there. Mostly advertisement of apple in UK is done by other telecommunication company such as Vodafone, o2, virgin, and orange. These companies in order to sell their telecommunication services gives i phone with their services on basis of contract. This is the advertising approach used by apple in UK. This saves lots of money for apple and ultimate aim to communicate the message to customer is done by this telecommunication companies. Apple also have TV ads to promote their product. Apple also use magazine advertisement to promote their product. Apple also uses hoardings where image of product is displayed and detailed information is written there. By putting such hoardings people who are walking roadside can see the information and message can be conveyed to customer.
Apple uses promotional methods using special short-term techniques to persuade members of a

target market to respond or undertake their products. Apple uses for sales promotions are money back guarantees, lower purchase price and rebates etc. The Apples stores are very distinct and captivating from many other electronic stores because they display all of their products for consumers to experience hands-on. Consumers are allowed to surf the web on any of their computers, listen to the latest ipods, and experience the iPhone and its features. This lets consumers get comfortable with the products and familiarize themselves with it. This is a major consumer sales promotion that Apple has developed.(apple INC, 2009)

As most of the user of iphone are college student age group from 17 to 22, company should promote their product mostly to this group but we not found out any such activities carried by apple group. As apple iphone are loaded with latest technology and its has covered most of the market, thats why they are always there in media or news. This promote apple product to graeter context.

9) Marketing approaches:Segmentation, targeting, and positioning together comprise a three stage process. We first (1) determine which kinds of customers exist, then (2) select which ones we are best off trying to serve and, finally, (3) implement our segmentation by optimizing our products/services for that segment and
communicating that we have made the choice to distinguish ourselves that way.

(Sources: USC marshall ,2009) Segmentation :Type of segment Demographic Geographic Psychographic Behavioural Source: Dibb and et al, (2001) Apple i Phone 4 come under Smartphone segment and classified under unsought goods. Thus, it requires lots of things to consider while purchasing it though it requires more attention of Apple INC. Apples target segments consist of professionals, students, corporate users, entrepreneurs, and health care workers. Demographic: Age: - Apple i Phone 4 targets younger customer and with high income earning group. Sex: - As it is a Smartphone it can be used by both male and female. Thus apple group concentrate on both group. Variable Age, Gender, Occupation, Income Region, Population density, climate Social class, Life style, personality Degree of loyalty, Type of User

Religion: - As UK is a demographic country generally companies do not segment their product according to religion. Occupation: - as i Phone 4 is a Smartphone it targets the corporate people. Geographic: Country: - As apple INC is an American company but still it sales their product in almost 106 countries in world. And for Europe it covers 36 countries. Region: - In UK there 4 key markets (England, northern Ireland, Wales, Scotland ) and apple group covers all 4 markets in UK. Psychographic: Social class: - As in UK there is basically three group low earning income, medium earning income, high earning income group. Apple INC concentrates on high income earning group. Life style: - As i Phone 4 is a highly technological phone, company targets the customer which are interested in using new technology. Occasion:Its a human psychology that to buy some new thing on some occasion thus considering this apple group try to attract such customer and to have maximum sell at this time. Benefits: - as i Phone 4 is a latest Smartphone customer do not buy just to use it but it also shows image and status in society. Targeting :The decision about which market segment(s) a business decides to prioritise for its sales and marketing efforts.(Dibb and et al, 2001) I Phones marketing strategy is to differentiate the i Phone from other PDAs on the market. I phones primary customer targets is the middle-upper income professional that need one portable device to coordinate their busy schedules and communicate with colleagues, friends and family. I phones secondary consumer targets are high school, college and graduate students who need one portable multifunction device. Mainly this market will be replacing their iPod and cell phone with the iPhone.

Apple group uses concentrated marketing strategy for targeting their customer. Concentrated marketing is a market coverage strategy in which firm goes after a large share of one or few segment or niches(Philip k. And gary a. b, 2006, pp 231). Apple group uses this strategy to attract the customer who are interested in store information and communicate or people who want entertainment on the go. By using such strategy apple targets Segments consist of professionals, students, corporate users, entrepreneurs, and health care workers with age group between 16 to 40. Positioning :Positioning is the process of creating an image for a product in the mind of target customer.

Source: USC marshall (2009) Using product differentiation, Apple group positioned the iPhone 4 as the versatile, convenient, value-added device for personal and professional use. The marketing strategy will focus on the convenience of having one device for communication, but also music, pictures, and video, and full Internet access. The iPhone will be promoted as both professional and hip. Currently Apple i Phone 4 is in maturity stage generating maximum profit for company. But soon apple i Phone 4 is going to decline stage because apple group is going to launch i Phone 5 in July 2011.

Current position of apple i Phone 4 in product life cycle:-

Perpetual mapping ( kotler, p., 1999)

As apple i Phone 4 is made up of latest technology, it is positioned in high price and high technology group.

COMPANY PROFILE

Type Industry Founded Headquarters Area served Key people Products

Business unit Telecommunication Seoul, South Korea 1977 Suwon, Shout Korea Worldwide Geesung choi, President Mobile i-phones Smart i-phones Telecommunication system MP3 Player, Laptop computers

Revenue Net income Employees Website

US$ 21.1 billion (2007) US$ 2.3 billion (2007) 344,000 (2010) Samsung consumers

HISTORY Unlike other electronic companies Samsung origins were not involving electronics but other products. 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, Mobile Iphones (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. The history of Samsung and mobile i-phones stretches back to over 10 years. 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 APPLE is ahead with more than 100% increase in shares.

Samsung Telecommunications Samsung Telecommunications is one of five business units within Samsung Electronics, belonging to the Samsung Group, and consists of the Mobile Communications Division, Telecommunication Systems Division, Computer Division, MP3 Business Team, Mobile Solution Centre and Telecommunication R&D Centre. Telecommunication Business produces a full spectrum of products from mobiles and other mobile devices such as MP3 players and laptop computers to telecommunication network infrastructure. Headquarters is located in Suwon, South Korea. In 2007 Samsung Telecommunication Business reported over 40% growth and became the second largest mobile device manufacturer in the world. Its market share was 14% in Q4 2007, growing up form 11.3% in Q4 2006. At the end of November 2011, Samsung sold more than 300 million mobile devices and set still in second after APPLE with 300.6 million mobile devices sold in the first three quarter of 2011. Subsidiaries and affiliates As of April 2011, Samsung Group was comprised of 59 unlisted companies and 19 listed companies, all of which had their primary listing on the Korea Exchange stock exchange. Company Samsung Corporation Samsung Securities Samsung SDI Samsung Electro-Mechanics Samsung Engineering Samsung Techwin Cheil Industries Samsung Heavy Industries Market Korea Ace Digitech Samsung Vision Symbol 000830 016360 006400 009150 028050 012450 001300 010140 122900 036550 Company Shilla Hotels and Resorts Samsung Fine Chemicals SI Corporation Samsung Fire & Marine Insurance Samsung Electronics Samsung Life Insurance Samsung Card Cheil Worldwide Credu Symbol 008770 004000 012750 000810 005930 032830 029780 030000 067280

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. But b e y o n d i t s r o l e a s a p u r v e y o r o f q u a l i t y p r o d u c t s i n I n d i a , Samsung seeks to contribute to the economic growth of the country though its export commitments and large scale production facilities generating secured employment for hundreds of Indian people. At Samsung, we strive to contribute to the development of the electronics a n d c o m p o n e n t s i n d u s t r y i n I n d i a b y e n h a n c i n g t h e k n o w l e d g e l e v e l s o f o u r w o r k f o r c e through the introduction of our advanced management systems and production know-how in our m a n u f a c t u r i n g facilities by introducing our Indian vendors to our world class quality systems and helping them in improving them in their own quality systems and production processes and setting benchmarks for the industry both in terms of after sales service for our products, quality systems and management techniques at our facilities or our products themselves. At Samsung, we believe in returning to the community some of the profits we earn from it, through the social causes we espouse. We view ourselves not as an MNC operating in India, but as an 'Indian Company' operating here, conforming to the laws of the country and committed to working for the Indian community. We want and to be seen as the 'Most Respected' Indian Company.

CHAPTER - III RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Research is the systematic and objective search for the analysis of the information relevant to the identification and solution of any problem in the field of channel development. The objective behind this project was to get a deep insight into the answers To the questions what are the general problem faced by the subscribers and what they expect from mobile handsets providers and study of current mobile market. The object of the survey was the mobile users of various mobile companies. The essence of research conducted by us is to analyze the present market position of APPLE & Samsung mobiles among its competitors and the problem which are being faced by customer, wholesaler, and retailers. The eventual objectives are to suggest some recommendation to the company so as to enable them to increase their market share. Only in analyzing my sample follows no conventional method. The total analyze is based on the internees the question put on before our sample size. A research of this cant be done all once through large area in limited time so NABHA has been selected for research.

STEPS IN MARKETING RESEACH PROCESS

DEFINE PROBLEM AND RESEARCH OBJECTIVES

DEVELOPING THE RESEARCH PLAN

COLLECTION OF DATA

 PRESENTATIONS OF THE FINDINGS

RESEARCH OBJECTIVES Get knowledge about APPLE mobiles and Samsung mobiles. Customer satisfaction about using their handset. Sale of products. Know about sale pattern.

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:-

1. DATA SOURCE There are two type of data source: Primary data Secondary data

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.

2. 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.

3. 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.

4. SAMPLING PLAN

After deciding on the research approach and instrument, we must design a sampling plan. This plan calls for three decisions. a) 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. b) Sample size:- Large sample give more reliable results. In our study 50 customers were surveyed in LUCKNOW. c) Sampling Procedure:- area sampling is using because it is not practically possible to visit all places of India therefore LUCKNOW chosen for survey.

5. 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.

6. 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 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:The research was subjected to following limitations: The survey can not 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.

OBJECTIVES OF THE STUDY

The subject matter for this research Project is to study the consumer behavior towards the APPLE & SAMSUNG mobiles. This project consists of different objectives. They are as follows:: To know about the consumer preference level associated with APPLE & SAMSUNG mobiles.

To find out the customer satisfaction towards APPLE & SAMSUNG To know which advertisement media puts more impact on the buying decision of customer.

Chapter - VI Analysis and Interpretation of Data

ANALYSIS & INTERPERATION

1. Which model is best? Answer Apple Samsung Percentage(%) 60 40

INTERPRETATION Out of 100 respondents 60 says APPLE mobile i-phones are best while 40 were says Samsung.

2. Why do you prefer APPLE or Samsung? Answer Feature Look Quality Price Percentage(%) 36 12 37 15

INTERPRETATION 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.

3. Which provide you better touch? Answer Apple Samsung Percentage(%) 53 47

INTERPRETATION

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

4. Which among has more features?

Answer Apple Samsung

Percentage(%) 61 39

INTERPRETATION

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

5. Are you satisfied with price of APPLE or Samsung?

Answer Yes No

Percentage(%) 78 22

INTERPRETATION

Out of 100 respondent 78 respondents are satisfied with their particular mobile

while only 22 were not satisfied.

6.

Which among these provide you better after sale?

Answer Apple Samsung

Percentage(%) 74 26

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

7. What will more prefer in APPLE or SAMAUNG NOTE?

Answer Apple price less than Samsung Look Weight

Percentage(%) 34 54 12

INTERPRETATION

Out of 100 respondent 34 prefer APPLE 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.

8. Which provide good battery back-up?

Answer Apple Samsung

Percentage(%) 69 31

INTERPRETATION

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

9. Which provide more accessories with it?

Answer Apple Samsung

Percentage(%) 55 45

INTERPRETATION

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

10. Which would you prefer business point of view?

Answer Apple Samsung

Percentage(%) 55 45

INTERPRETATION

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

11. Which among these have more models and design?

Answer Apple Samsung

Percentage(%) 55 45

INTERPRETATION

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

12. Which gives better camera celerity?

Answer Apple Samsung

Percentage(%) 62 38

INTERPRETATION

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

13. Which give more GPRS speed?

Answer Apple Samsung

Percentage(%) 58 42

INTERPRETATION

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

14. Which cell companies have better sound quality?

Answer Apple Samsung

Percentage(%) 69 31

INTERPRETATION

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

15. Which company provides best dual sim i-phones?

Answer Apple Samsung Others

Percentage(%) 15 79 6

INTERPRETATION

Out of 100 respondent 79 in favors of Samsung & 15 say APPLE provides better dual sim i-phones & only 6 in ther favors of other companies.

16. Which company provides better 3G/WI-Fi services?

Answer Apple Samsung

Percentage(%) 60 40

INTERPRETATION

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

17. Which model is comfort caring?

Answer Apple Samsung

Percentage(%) 67 33

INTERPRETATION

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

18. Which companies provide more models with touch & keypad?

Answer Apple Samsung

Percentage(%) 45 55

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

19. Which company provides better flap i-phones?

Answer Apple Samsung

No: people 70 30

INTERPRETATION

Out of 100 respondent 70 says APPLE provide better Flap i-phones while 30 says Samsung provide better flap i-phones.

20. Which companies provide more service sale counter nearby?

Answer Apple Samsung

No; of people 69 31

INTERPRETATION

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

21. Which company has more cell memory storage?

Answer Apple Samsung Other

Percentage(%) 68 29 3

INTERPRETATION

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

22. Which company have technical maintain & additional (like long life)?

Answer Apple Samsung

Percentage(%) 65 35

INTERPRETATION

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

35 in favors of Samsung.

23. Which are reasons for using LUMIA 800 or SAMSUNG NOTE?

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

Percentage(%) 21 18 13 12 20 16

INTERPRETATION 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.

24. Why do you like brand you choose?

Answer Function Advertisement Brand name Quality Price Appearance

Percentage(%) 26 20 19 19 14 02

INTERPRETATION

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.

25. What kind of model do you prefer?

Answer Slim Thick Light Medium Large Heavy

Percentage(%) 33 25 14 11 11 06

INTERPRETATION

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.

Chapter - V : Findings, Conclusion and Suggestions

FINDINGS AND SUGGESTIONS

Few years back mobile i-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 APPLE then SAMSUNG and least prefer other.

Mostly the consumers are satisfied with the services

Provided by the different mobile companies.

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 there particular service providers and they were using there mobile since 1 to2 years.

CONCLUSION

Working on APPLE & Samsung project gave me a opportunity to apply my skills and knowledge, which We had gained previously.

It gave us a opportunity to see working an organization. It was an amazing experience with learning all the way, which help us to brush up our knowledge.

Bibliography

BIBLOGRAPHY

BOOKS:-

Marketing research G.C.Beri Research Methodology C.R.Kothari Principal of Marketing Philip Kotler.

WEB RESOURCES:-

www.Apple .com www.samsung.com www.google.com www.yahoo.com www.scribd.com www.thestalwart.com

ANNEXURE

ANNEXURE
SECTION A PERSONAL INFORMATION

1. Name ______________________ 2. Gender Male 3. Age 10-20 20-30 4. Marital Status Single 5. Educational Status Matric Graduation 6. Occupation Self Employee Student 7. Income Level < 10000 < 40000 8. Residence < 20000 > 40000 Professional Others 10+2 Post-Graduation Married 30-50 50 & Above Female

 Urban

Rural

9. Contact No: ________________ 10. E mail id: SECTION B ABOUT MOBILE

1. Which model is best ? APPLE Samsung 2. Why do you prefer APPLE or Samsung ? Best features Best Quality Best look Price

3. Which provide you better touch? Apple Samsung 4. Which among has more features? Apple Samsung 5. Are you satisfied with price of APPLE or Samsung? Yes No

6. Which among these provide you better after sale service?

 Apple

Samsung

7. What will be more preferred in APPLE LUMIA 800 or Samsung NOTE? Lumia price less then Samsung Note Look Weight

8. Which provide good battery back-up? Apple Samsung

9. Which provide more accessories with it? Apple Samsung

10. Which would you prefer for business point of view? APPLE Samsung

11. Which among these have more models & designs? Apple 12. Which gives better camera clarity? Apple 13 Which gives more GPRS speed ? Apple Samsung Samsung Samsung

14 Which cell companies have better sound quality? Apple Samsung

15 Which company provides best Dual sim cell i-phones? APPLE Samsung

16 Which companies provide better 3G/WI-Fi services?

 Apple 17 Which mobile is comfort carriying? Apple

Samsung

Samsung

18 Which company provides a more models with touch screen & keypad? Apple Samsung

19 Which company provides better flap cell i-phones? Apple Samsung 20 Which company provides more Service sale counter nearby? APPLE Samsung

21 Which companies have a more cell memory storage? Apple Samsung

22 Which companies have technical maintaince & additional (like long life)? Apple Samsung

23 Which are the reasons for using the APPLE LUMIA 800 or SAMSUNG NOTE? Wap Just to talk on it Download files GPRS functions Receive email & Mms others

24 Why you like brand you choose above? Advertisement Functions Brand Name Appearance Price Quality

25 What kind of model you prefer? Slim Medium

 Thick Large

Light Heavy