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PROJECT ON

CONSUMER BEHAVIOUR OF ³SPICE MOBILE´

SUBMEATED

TO

PRO.DANANJAY TALELE

SUBMEATED

BY

L.NARAYAN SONI

ROL .NO (M4910)

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. Today, mobile handsets have not only metamorphosed from the huge briefcase size devices of
the 1980s to the ultra slim phones, but have also moved beyond being mere devices to make and
receive calls. with more & more features and technologies being added, mobile handsets are on
the way to be a single device serving the purpose of a phone, camera, MP3 player,GPRS ,games,
television and a lot more.India has been the largest emerging mobile handset market in the last
one year, surpassing China and these super gadgets have already made inroads in the Indian
market.
In India, there are already 250 million mobile customers, with 7 million more people every
month becoming mobile users. In 2007 itself, the mobile market in India grew to 120 million and
this growth is expected to cross 180 million units this year. with such an astonishing no. of
mobile users in India, and just a little over 31 million PCs,mobile handsets will soon replace the
personal computer.
In India, Nokia, Sony Ericsson, and Motorola are the frontrunners, along with a plethora of
players like Samsung, LG, Spice and Fly with other small players looking to grab place for them.
Nokia, over the years, has been tasting success with its focused product range, competitive
pricing and good Distribution Network. Sony¶s brand identity of high memory phones & phones
with unique imaging solutions has been built with aggressive advertising and marketing strategy,
while Motorola has focused on building an Indian appeal and strong Indian connection with
products targeting the youths. Right from opening up experience stores to branded retail shops,
handsets makers are leaving no stones unturned. While Spice mobiles and fly mobiles are aiming
mainly at bottom of the pyramid. Though, Spice is also attracting customers through its dual
mobiles like D-88n. Mobile phone giant Nokia¶s market share in India has increased to 62.5 %
2007-08 from 53.6 % in the previous year.Nokia¶s revenue from the mobile segment stood at Rs.
15,000 crore, up by 30.6 %, compared to Rs. 11,486 crore in 2006-07.the company¶s increased
market share seems to have come from the LG, Motorola and other players who have lost
significant shares. The market leader is followed by Sony Ericsson and Samsung at second and
third place with 12.8 % and 7% market share respectively. Motorola which is planning to sell the
handset business also saw its share erode to just 5.9%, losing revenue by almost 50%.while LG
is the biggest loser with a market share of just 3.41% and the comers like Spice have only 1.7%
stake,thanks to its good position in
•arnataka and Punjab, being the second and fifth largest handsets provider there. India¶s telecom
equipment revenue touched Rs. 95407 crore in 2007-08 driven by the rising demand for mobile
handsets and wireless infrastructure expansion by service providers.
In telecom equipment, Ericsson had revenue of Rs. 8,000 crore. Nokia Siemens network, the
merged entity between Nokia and Siemens had revenues of Rs.7779 crore and Alcatel Lucent
posted revenues of Rs.7,000 crore. ³While Nokia and Ericsson retained their positions as top
players, Nokia Siemens Network, struck major deals in the wireless segment. Expansion of
mobile networks And broadband infrastructure and the introduction of 3G technology will
sustain the growth in the current year.´ Out of the total revenue of Rs. 95,407 crore, handsets
business was Rs. 24,000 crore.the phone segment contributed nearly one fourth to the total
telecom equipment industry, Rs. 25,203 crore recording a growth of 7 per cent.c In the handset
segment, revenues of mobile handsets manufacturer grew 12% to Rs.24,003 crore, while the fixed
handsets sales decreased by 41% to Rs. 12,00 crore, over the same period last year. The Indian handset
market recorded a 33% growth by volume with 95.6 million pieces sold during the year against 71.8
million in the same period in the previous year. Of the total handsets sold, 68.3 million were GSM phones
and 27.3 million phones are based on CDMA technology Youths have been the main target for the
converged mobile phones. Handset makers have been redefining the ways to crack the youth segment
which is also the primary target for the replacement market as young people have a tendency to change
their handsets often. This has seen companies launching new set of products every six months.


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The objective of our research is ³to check the consumer behavior and market potential for mobile
phones in different price segments´. Wherein, I compared the sales of different mobile phones
and tried to find out the models of Spice having maximum sales and reasons for the low sales of
Spice compared to Samsung and Nokia.
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c Telecommunication sector is one of the major sectors to contribute maximum to
c the nation¶s economy.
c India because of market oriented stable economy, availability of skilled and cheap
c manpower and raw material truly becomes one of the favorite destinations of
c mobile sector.
c Telecom sector growing at a rapid pace.
ëc India has the highest growth rate in the world.
ëc India set to become IInd largest wireless network in the world after China.
c Strong telecom regulations in TRAI and several experienced players like Nokia,
c Samsung Sony offer the best product to consumers with the latest technology and
c competitive price.

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c Indian teledensity (24.63%in January 2008) has still a fair way to go before it
c catches up with the developed nations (60%-80%).
c Lack of Infrastructure in semi-rural areas which makes it difficult to make inroads
c into this mkt. segment.
c Sluggish way of reform process.
 


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c On an average, 7 to 8 million subscribers added every month. India has crossed
c the 250 million mark with the addition of 8.53 million mobile subscribers in
c February, 2008.
c INDIA has the largest proportion of population below 35 years,70% potential
c buyers which means that 130 million people will get added to the working
c population between 2003 and 2009
c Already 20% of the mobile users in India access Internet through mobiles. So,
c mobiles with the technologies like this along with others like mobile navigation
c and trekking will more than double its subscribers in next 3-4 years.
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This chapter aims to understand the research methodology establishing a framework of
evaluation and revaluation of primary and secondary research. The techniques and concepts used
during primary research in order to arrive at findings; which are also dealt with and lead to a
logical deduction towards the analysis and results.

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The research design applied here was ¢
 ¢¢
and d¢ 
¢ ¢¢
.
Exploratory Research is one in we don¶t know about the problem, we have to find about the
problem and then work on solving the problem. Whereas in case of descriptive research, we
know the problem, we just have to find the solution to the problem. Generally descriptive
research design is applied after exploratory research design.
Here, through primary research we came to know bout the sales for different mobiles , customer
likings, problems faced y dealers and reasons for low sales of Spice mobiles. While through
secondary research, I got the valuable data that I used for the trend and swot analysis.

SAMPLE SIZE
To complete the research, the questionnaire was filled by 100 ¢
 d¢  which were
 d ¢¢ ¢d. The respondents were the ¢ d¢¢ from the E D¢
 region.

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The purpose is to first conduct a intensive ¢  d ¢¢
to understand the major players
in the market, their sales, studying their handsets and their features, & full impact and
implication of this on their market and the customers. This helped us in the primary research to
ask the questions which are still unanswered & we can get only through primary study. SPSS &
EXCEL has been used to fill in and to analyze the data collected.

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àoth primary and secondary data have been collected very vigorously
P d it is basically collected by getting the questionnaire filled by the respondents,
randomly selected for the research.
S¢  d d: it is collected by the study of enormous material available on the company
websites and the previous researches related to mobile industry. The data was also collected from
the magazines and newspapers.

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The questionnaire method has come to the more widely used and economical means of data
collection. The common factor in all varieties of the questionnaire method is this reliance on
verbal responses to questions, written or oral. We tried to make sure the questionnaire was easy
to read and understand to all spectrums of people in the sample. It was also important to respect
the samples time and energy hence the questionnaire was designed in such a way, that its
administration would not exceed 4-5 mins. These questionnaires were personal administered.
S
¢ ¢ 100 respondents
B  ¢¢   randomly selected
N.  qu¢  10
A¢ àadlapur

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Frequency Percent
."%&#$ 1 1.0
."%m'"%( 9 9.0
."%m&# 6 6.0
m'"%( 83 83.0
m'"%(m'"%( 1 1.0
T 100 100

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From the data & table, it is interpreted that 83% of the dealers have all the 4 mobile phones i.e.
Nokia, Samsung, Spice & Fly. There is only one dealer who does not have Samsung & Spice in
his shop.
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Between 13000-above

Between 8000-13000

Series1
Between r.3000-8000

less the 3000

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· 60% of dealers have maximum sales of the mobiles ranging between Rs. 3,000 & 8,000 on their
shop which shows that customers in East Delhi don¶t like to spend too high on mobiles. · sales
for the mobile with price less than Rs. 3,000 is not too high , being 22% indicating that people
though not spending too much on premium mobiles, buy mobiles with features like FM, MP3
that cost higher than Rs. 3,000.
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Yes No

2%

98%

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· 98% 0f the dealers have Spice mobile in their shops. as it has been 4-5 years since its presence
in Delhi and now, people do recognize them. Rest 2% have not placed Spice mobile in their shop
and these dealers are the one who deal on very small scale in the regions of Mansarovar Park
near Shahdra.
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· 32.7% of the shopkeepers are selling Spice mobiles since last 1year while 33.7% dealers are
selling it for last 1.5 years. While only 26% shopkeepers have placed it more than 1.5 years ago.
This is also the main reason for low brand awareness and low sales for the Spice phones.
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missing

Variable

S-545
Series1

C-810

D-88n

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· C-810 has the maximum sales in the East Delhi region with sales of about 33.7% which could
have even a lot better results had the production of these mobiles would not have stopped. D-
88n also has 18.7% sales showing the people¶s attitude towards the new features like dual sim as
in this mobile. These mobiles have their main sales in the regions like Laxmi Nagar, •rishna
Nagar, and Preet Vihar.

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· As expected, there is no competitor for Nokia when it comes to the àrand awareness. People
buy the handsets and accessories on its name. They have a huge faith in it.
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Nokia
sumsung

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81% dealers believe that Samsung mobile has the best looks and that is the reason for its
popularity among the females. Surprisingly, Nokia is chosen by only 19% dealers while none
feel that Spice and Fly mobile do have the good looks.
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120
100
80
60
Series1
40
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Nokia Spice

INTERPRETATION
As expected, almost everyone favored Nokia to be the mobile with best battery backup as 98 out
of 100 favored it. While Spice got 2 favors¶ and Samsung & Fly got none.
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Spice
Fly

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The data shows that dealers feel the Spice mobile and Fly mobiles have been offering the best
price to the customers and that too without making relaxation in the features. The Spice mobile
has got 71 favours while the Fly mobile got the rest 21. And the Nokia and Samsung got none.
which shows that the strategies that Spice and Fly are opting going well.
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Other

Service

Promotion Series1

Feature

0 10 20 30 40 50 60

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56% dealer feel that by promoting the Spice mobile on a large scale through press , media ,
programs, Spice mobile can increase its market share. 25% think that by increasing the features
as in Nokia¶s mobiles, Spice will be able to snatch some customers from its competitors. While
6% dealers also believe that by having their own service centers they canserve its customers
better which otherwise suffer due to dependence on hotspots and dealers for any default piece.
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60% dealers have the maximum sales for the mobiles ranging between Rs. 3,000cand 8,000 i.e.
Spice mobile has a good market potential in East Delhi since they maximum offerings in this
price segment only.c C-810 has good sales of about 33.7% and in fact D-88n which is a new
offeringcgot a good response with 18.4% from the survey done on 100 respondents ascSpice is
the •its to offer dual sim concept.c

Nokia tops the table in àrand awareness with all 100% dealers support and in infect àattery
backup with 98%.
Samsung was chosen to be the mobile with the best looks and Spice being the cheapest mobile
without compromising on features.
The Spice mobile lacks in the brand awareness with 73% dealers thinking it to be the reason for
its low sales.23% also feel that it hasn¶t got lucrative looks which is a must to attract youth
customers. Thus, they must work on promotions by PAN India movement and should offer some
stylish mobiles.
Moreover, the company should send their company executives to every dealer in
order to offer Spice mobile in each and every corner to all customers. As there are still many
shops which don¶t have a Spice mobile because executives did not approach them.
It is concluded that within 10 years, the Spice mobile should overtake the likes of Samsung and
Motorola and will occupy the same position as in •arnataka. From the survey done for the 4
mobiles Nokia had the maximum of 67% sales, Samsung 16% while Spice and fly 11% and 6%
respectively. Shows that people have a huge faith in Nokia mobile but their mindset is changing
with some good offerings from Spice and other mobiles in terms of Dual sim mobiles and low
cost.
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This questionnaire is meant for the purpose of research on ³To check the mkt. potential of
mobile phones in different price segments. ´meant for the continuous evaluation,
marketing research & Report Preparation for Spice Companies Ltd.
1. Out of the following which company¶s mobiles have you placed in your shop?s
a) Nokia, Samsung
b) Nokia, Samsung, Spice
c) Nokia, Spice, Fly
d) Nokia, Samsung, Spice, Fly
2. What are the average monthly sales (by volume) for these mobiles on your shop?
a) Nokia «««
b) Samsung «««
c) Spice «««
d) Fly «««.
3. Which price range of mobiles has the maximum sales on your shop?
a) Less than Rs. 3,000
b) Rs. 3,000-8,000
c) Rs. 8,000-13,000
d) More than Rs.13, 000
4. Do you have Spice mobile on your shop?
a) Yes b) No
If yes,
5. How long has it been since you placed spice mobile on your shop?
a) Less than 6 months
b) 6-12 months
c) 12-18 months
d) More than 18 months
6. Which model of spice has the maximum sales on your counter?
a) D-88n b) C-810 c) S-545 d) variable
7. According to you, which company¶s mobiles have the maximum brand
awareness:
a) Nokia «««
b) Samsung «««
c) Spice «««
d) Fly «««.
8. Which company¶s mobiles have the best looks:
a) Nokia «««
b) Samsung «««
c) Spice «««
d) Fly «««.
b) Samsung «««
c) Spice «««
d) Fly «««.
10. Which company¶s mobiles have the best àattery backup?
a) Nokia «««
b) Samsung «««
c) Spice «««
d) Fly «««.
11. Which company¶s mobiles have the lowest price?
a) Nokia «««
b) Samsung «««
c) Spice «««
d) Fly «««.
12. In case of low sales, which is the main reason for low sales
of Spice?
a) looks b) sound c) brand d) after sales service
13. According to you, what should the spice company do to
Increase their market share?
a) Increase features b) promotions c) own service centre d)