WINTER PROJECT REPORT

ROYAL INSTITUTE OF MANAGEMENT AND TECHNOLOGYA

SEMINAR REPORT

ON

A COMPARATIVE STUDY ON CONSUMER BUYING BEHAVIOUR REGARDING VARIOUS BRAND NAMES;

A

Case Study on

(SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE DEGREE OF MBA.)

(Session 2010-11)

Submitted To Submitted bu

Ms Isha kalra roohi sikka

lecturer MBA 1st yearDept. of MBA university roll noRIMTCollege

CERTIFICATE

Certified that the project report on A Comparative Study on Consumer Buying Behaviour Regarding Various Brand Names; A CASE STUDY ON MICROMAX has been completed by roohi sikka under by guidance. She has submitted the report in partial fulfillment of the requirement for the Degree MBA from Maharishi dayanad university It is her on original research and I recommended that this should be sent for evaluation.

Dr.BHUTANI

MS ISHA KALRA

Principal

Project Incharge

RIMT College

Lecturer in MBAPanipat

RIMT College

Panipat ACKNOWLEDGEMENT

The researcher feels obliged to express his grateful thanks to all those persons who rendered him all possible help in completion of this research project.

y gratitude to the staff members of MBA. for the valuable guidance, suggestions and continued encouragement in condition of the study and preparation of the report.

I am thankful to MS ISHA KALRA, PROJECT INCHARGE for providing signification help for completion of project report. I am also thankful to Dept. of Micromax for their valuable help.

ROOHI SIKKA PREFACE

I, ROOHI SIKKA have made this project in order to show techniques of MICROMAX. This report contains all the necessary information regarding the history & evolution Mobile company, convey of brand personality, methodology. There is cut throat competition and markets have now realized the value of customers. Customer orientation is the key word of the present times. Consumer buying preferences, tastes, choice have changed and they have become much more quality conscious. It led to a boom in the consumer market people was on the spending spree.

This project contains all the information about MICROMAX.STUDENT DECLARATION

I, ROOHI SIKKA student of MBA RIMT College, Panipat here by declare that this project report on A Comparative Study on Consumer Buying Behaviour Regarding Various Brand Names; A CASE STUDY ON MICROMAX is submitted in the partial fulfillment for the requirement of degree MBA. It is of my own efforts & not for the award of any other title or prize.

Submitted To:

Submitted By:

MS ISHA KALRA ROOHI SIKKA

Project Incharge

MBA

Department Of MBA.

RIMT.College

RIMT.College

Panipat

Panipat

CONTENTS

1. EXECUTIVE SUMMARY2. INTRODUCTION TO INDUSTRY3. INTRODUCTION TO MICROMAX COMPANY

Company Introduction

Micromax in India

Board of Directors

Product & Services

Corporate Responsibility

Office Locations

Company Financial Reports

4. INTRODUCTION TO STUDY UNDERTAKEN

5. OBJECTIVES OF THE STUDY

6. LIMITATIONS

7. RESEARCH METHODOLOGY

8. ANALYSIS & INTERPRETATION

9. CONCLUSION AND FINDINGS

10. SUGGESTIONS/RECOMMENDATIONS

11. ANNEXTURE

12. BIBILOGRAPHY

EXECUTIVE SUMMARY

The project is a study of Consumer buying behaviour about mobile handsets offered by different companies like NOKIA, MICROMAX, MOTOROLA and others. In this Project NOKIA is being taken as benchmarking to study especially customers buying behavior so as to know;

Why people prefer NOKIA first while they are going to purchase any Mobile Handset?

In spite of all Marketing efforts done by Micromax Why people arent ready to purchase its Handsets?

What personal and organizational factors influence customers buying behaviour?

To understand the degree of influence of product factors and service factors on the customer buying behaviour.

Although all my research study is based on primary data that is collected through questionnaire but few information is collected through secondary data like company profile and results. The sample size is 200 and the research design chosen is exploratory research design.

The conclusions drawn from this study are that in most of the customers are now quality sensitive rather than price. A number of personal, psychological, demographic and other factors influence customers buying behaviour. Most of the customers get informations to get awareness from their friends and their evaluations are based on that informations. Advertising and Word of mouth play important role to create brand awareness and lead sales of mobile handsets. After having a comparative overview it is known that Nokia as a market leader is enjoying 63% market share where Micromax is having only 4% in Indian Mobile Industry.

INTRODUCTION

TO

INDUSTRY

INTRODUCTION TO INDUSTRY

India to become 3rd largest mobile population in world by 2009 as middle classes 'go mobile' Data from the "Indian Mobile Market 2008" statistical handbook reveals that mobile ownership will pass 100 million in 2009 as 'the largest middleclass in the World takes up ownership. With 115.3 million forecasted ile owners in 2009.

India ranks 3rd in the world behind only China and the USA.

Indian mobile owners are becoming younger as a result of cheaper calls; subsidized handsets and widespread availability of prepay lowering the barriers to ownership.

Relatively low GDP combined with the popularity of prepay still exerts downward pressure on ARPU in India. Average revenues stand at under $8 per month in 2008, lower than the global average at $21.30. 25 29 year olds spend the most, with ARPU at over $8pcm. The rising use of data services, particularly SMS, has stemmed ARPU decline in this age group.

India has ranked next only to China in registering high GDP growth. The Indian manufacturing output has been increasing year over year and the composites industry has been growing at about 20% in the last couple of years. The need for composites is increasing day by day and it is predicted that the composites market will grow by 4 times the current consumption by the year 2012. This report discusses in detail the large need for composites and the many new applications that will emerge. The presence of many multinationals together with a growing need for applications will ensure a steady market growth for the composites in India.

India is one of the fastest growing markets for wireless technology. The countrys mobile operators are currently providing services based on predominantly on GSM, but also on CDMA. Whilst India has been moving into advanced forms of mobile technology, including GPRS and EDGE, the country has stopped short of extensive adoption of 3G, although trial services are being set up. Prepaid services have been an important driver of growth in subscriber numbers and represent around 75% of the total mobile subscriber base. The first mobile services were introduced in 1996, but did not take off until 1998. Mobile data services are expected to grow strongly on the back of rising mobile subscriptions.

THE INDIAN MOBILE HANDSET MARKET

The size of Indian mobile handset market in FY 2008-09 was Rs 8,805 crores. Share of GSM handsets was 84% (7,384 crores) even higher than the GSM connections (75%) for the same period. It was also much higher than that for CDMA handsets, which accounted for Rs 1,421 crores (16% market share).MOBILE GROWTH AND TRAI INITIATIVES

MOBILES CAN ADD VALUE TO GDP

Source economic times/17 feb.09/p5Mobile phones are not just about getting connected; they can prove to be a great money-spinner for the countrys economic health by the virtue of productivity gains achieved by its users, especially in a developing market like India.

According to a new study of three developing markets- china, India and Philippines conducted by the global consultancy giant McKinsey, the economic impact of all wireless activities on the economy of these countries is upto four times of the combined value of mobile operators.

The overall wireless activities in India contributed about 2 % to the countrys GDP in 2008, the study says, adding that this could rise considerably going ahead as the mobile penetration was a mere 7% in the year. Even a 2% contribution to the GDP amounts to a whopping $14 billion, taking into a account a GDP of $700 billion in 2008.

In markets like china and Philippines, where wireless penetration is higher, the wireless activities contributed 5% and 7.5%, respectively, in 2008. Wireless penetration in china stood at 28% in china and 41% in the Philippines in 2008.

Much of the value created by wireless activities appears to come from the productivity gains and economic surplus that wireless customers receive simply by using their mobile phones, the study shows. According to the report, these results should encourage regulators and operators to get mobile phones into more hands more quickly.

By promoting the use of mobile phones, regulatory and industry players can amplify such gains, as well as the contributions that wireless industries make to GDP. India has 2% contribution while having the lowest penetration, Mckinsey analyst Luis Enriquez said. A 10% increase in penetration would add $2.3 billion to the end-user surplus and a further $6.2 billion in operator revenues in the country, he added.

India, the worlds largest growing telecom market, is expected to grow to 500 million mobile users by 2011 and 250 million by 2010 from 150 million at present. Mobile phones come with a price tag of less than Rs. 2000 and both affordable STD and ISD call charges, the number of users would increase as the decreasing average age of cell-phones users are likely to translate to additional subscribers.

INTRODUCTION

TO

MICROMAX

COMPANY INTRODUCTION

Back in 1991, Micromax made a humble beginning and today prides itself in being the leader in Wireless Telecommunication in the country.With a futuristic vision and on exhaustive R&D, Micromax has successfully generated innovative technologies that revolutionized the telecom sector.Micromax, is a pioneer in creating life-enhancing mobile phone solutions and wireless technologies that cater to the increasingly sophisticated needs of mobile users around the world.Driven by aspirations and passion for the telecom world, Micromax is geared up to bring paradigm and groundbreaking mobile solutions incorporating the latest in cutting edge technology.

Infused and equipped from nearly two decades of expertise and continuous research, we steadfastly strive to remain at the forefront in terms of both design and technological advancement.

Micromax dedicated to deliver the latest in breath taking technologies to you in the most quickest and Xtreme forms.

MICROMAX IN INDIA

Micromax Informatics Ltd is a India based Telecom manufacturer and distribution partner to Nokia, Samsung, LG etc for their IT / Telecom products in India. With an annual turnover of INR 5000 million, Micromax has offices in all major India cities and global offices in Dubai and USA. Micromax has been making supplies to the Indian GSM operators for their different telecom requirements and is now expanding their product range to the global markets. Micromax's products comes with a qualty seal meaning product satisfaction, high relieability resulting in repeated business. Micromax has their own 24 hour operational customer service centre just in case you need that small bit of information albeit at the wrong hour.

Micromax is headquartered at Gurgaon, Haryana, with offices at USA, HongKong. It has research and development centers at USA and HongKong. Motorola's operations in India are divided into three businesses: Enterprise Mobility Solutions, Home & Network Mobility and Mobile Devices. The Companys focus areas include, Mobile handsets, Wireless Infrastructure, Managed and Hosted Services, Broadband Equipment (wired as well as wireless), Trunking & Two Way Radios, Software Development, bar code scanners, RFID systems, and enterprise voice and data mobility solutions.Micromax already a leader in wireless and broadband communication is picking up the market in cell phones. It is basically a US based company that because of the potential of Indian market and buyers has established its branch here in 1991. Started at small scale at that time. it has almost 700 employees in Gurgaon.

BOARD OF DIRECTOR

Mr. Vikas JainDirector of the Board, Micromax Informatics Ltd.

Mr. Vikas Jain , Business Director Micromax, said, Delivering best of the technology and path breaking innovation has always been our priority. We work towards bringing exclusive technology in the hands of the masses. A 3G Mobile is stillconsidered an expensive piece of technology, but H360 is here to breakall the rules. The journey of 3G in India has just begun and there is aneed for mass awareness of 3G. We are thankful to MTNL for having worked with us to enable us to bring forth arevolutionary product for the Indian 3G subscribers. We are confident that thishandset will redefine the 3G experience in India and with increasing awarenessand availability, 3G mobiles will gain mass popularity.

PRODUCTS AND SERVICESMicromax believe its possible to have everything. Thats why Micromax offers a wide range of products and services from consumer devices to solutions for businesses, governments, and service providers. Ready to do more? So are we.

Micromax is a global leader in providing integrated communications solutions and embedded electronic solutions. These include:

Software-enhanced wireless telephone, and messaging products and systems, as well as networking and Internet-access products for consumers, network operators, and commercial, government and industrial customers.

Embedded semiconductor solutions for customers in networking, transportation, wireless communications and imaging and entertainment markets.

Embedded electronic systems for automotive, communications, imaging, manufacturing systems, computer and industrial markets.

Digital and analog systems and set-top terminals for broadband cable television operators.

Micromax products are distributed through the main channels and shops for (mobile) communication. We advise you to contact your local communications specialist with regards to availability and prices of Micromax products.

PRODUCT INFORMATION

Some Micromax products designs allow you to change the shape and colour of your phone. Your Micromax product may support 'convertible covers', offering a variety of different looks that constitute the housing of the phone. We recommend the use of Micromax 'convertible covers', since they have been tested for compliance with applicable mobile phone standards and regulations, including Specific Absorption Rate (SAR).

Micromax does not warrant that the usage of non-Micormax convertible covers or housings will meet such applicable standards and may invalidate your Micromax warranty.

MICROMAX MOBILESMICROMAX X500

Feature Highlights

2.8" 262K Full Touch Lens with Sense Flow5MP Camera with LED FlashFace TrackingSports ModeAnti ShakeDirect TV OutPreloaded Opera Mini Web BrowserExpandable Memory (upto 8GB)

MICROMAX GC 700

Feature HighlightsDual Reception Mode (CDMA/GSM) using Gravity Sensor262K Color Touch Lens with Sense-FloMotion Sensor2MP CameraMulti Format Music PlayerVideo Recorder/PlayerStereo FM RadioLarge PHB/SMS Memory with PhotoCallPreloaded Opera MINI Web BrowserMICROMAX X115

Feature HighlightsDual SIM - Dual Standby

Marathon Battery *

Stereo FM Radio

Music Player

Expandable Memory(upto 2GB)

Speaker Phone

Voice Recorder

Dust Resistant Keys

MICROMAX X2i

Feature HighlightsDual SIM-Dual StandbyMarathon BatteryStandby Time - 30 Days*Talk Time - 14 hours*Stereo FM RadioMP3 PlayerDigital CameraGPRS/WAP/MMSExpandable Memory (upto 4GB)MICROMAX Q3

Feature HighlightsDual GSM-Dual StandbyQwerty Keypad(ezpad)Preloaded mobile social messenger (Nimbuzz)1.3MP CameraMulti Format Music PlayerStereo FM radioBluetooth(A2DP)Large SMS & PHB using PhotocallExpandable Memory (upto 2GB)MICROMAX H360

Feature HighlightsLIVE TV

Video Calling on 3G

High speed mobile broadband HSDPA (3.6Mbps)

2.4" QVGA Touch Screen

3MP CMOS Camera

Video Recording/Playback (4X Zoom)

Expandable Memory (upto 8GB)

MICROMAX DATA CARDS

MMX200C Data Card

Features:High-Speed Connectivity with speed of upto 153.6 KbpsT-Flash compatible upto 4GBSupports Plug and Play InstallationLarge Capacity Phonebook

MMX611U Data Card

General Features:Quad Band(850/900/1800/1900 MHz)

Supports EDGE (MS Class 10)

Auto-Intsall Software

Internal Antenna

USB 2.0 Form Factor

Supports USB Storage (upto 2GB)

Operating System Support:Windows 2000, XP, Vista

Additionals:DATA/SMS Support

Global Roaming

Operator Independant

MMX610 P Data Card

General Features:Quad Band(850/900/1800/1900 MHz)

Supports EDGE (MS Class 10)

Robust MetalAntenna

PCMCIA slot compatibility

Operating System Support:Windows 2000, XP, Vista

Additionals:DATA/SMS Support

Global Roaming

CORPORATE RESPONSIBILITY

Accessibility

Life is a challenge. We know that. But communicating doesn't have to be. At Motorola, we recognize that customers have different needs and capabilities. We are committed to creating products that meet the needs of everyone possible regardless of abilities.

We provide a wide range of products for people with diverse communications needs with hearing, speech, vision, dexterity, mobility or cognitive needs at varying levels.

Business Conduct

The Micromax Code of Business Conduct reaffirms what each Micromax employee stands for: Doing the right thing. Every day. No excuses.Micromax's "Key Beliefs" have been in existence for decades, and Micromax continues to have a strong culture of corporate ethics and citizenship.

Our Key Beliefs:The Way We Will Always Act Uncompromising Integrity

Constant Respect for People

The Micormax Code of Business Conduct sets the standards for Micromax commitment to uncompromising integrity. Since its original establishment in the 1991s, the Code has provided Micromax employees guidance for their business activities, placing a priority on establishing trust with our stakeholders.However, it is not enough to declare our good values.Micromax is committed to acting on them through the potential of our technology and the way we conduct our business.

Environment, Health & Safety

Recycling

Micromax is astrong proponent and supporter of global environmental sustainability and recycling programs. In partnership with our carriers, customers, retailers and recyclers and on our own, we operatetakeback programs across the globe.

Mobile phones

The success of our mobile phone reuse and recycling program depends on consumer participation. We work to increase the number of people who recycle their mobile phones and accessories by:

Enclosing prepaid return envelopes in packaging boxes

Encouraging recycling through charity take-back programs

Holding electronics collection events at our facilities for employees and local communities

Offering incentives periodically

Participating with governments and other companies in take-back events and promotions

Locating highly visible collection containers in our service centers

We accept any mobile phone or accessorynot just Micromax products.

OFFICE LOCATIONS

Corporate Office

Micromax House, 697, Udyog Vihar, Phase-V,

Gurgaon, Haryana, INDIA

Ph. : 0124-4009601/2

Fax: 0124-4009603

USA

Micromax Convergence Inc, 1668 S Lewis Street,

Anaheim, CA 92805, USA

HongKong

Room A, 15/F, Hillier Comm. Bldg

65-67 Bonham Strand East

Sheung Wan, Hong Kong

Factory

Micromax Informatics Ltd, Plot No.234,

HPSIDC Industrial Area, Tehsil Nalagarh, Distt Solan (HO)-173205BRANCH OFFICESJAMMU HIMACHAL PRADESH HIMACHAL PRADESH

House no 45,

Deshmesh Nagar, Digiana ,

Jammu 180010

Khasra no.42,

Swaraj Building, VillageAmbota,

Sector-4, Parwanoo,

Himachal Pradesh 173220

Plot 234,

HPSIDC Industrial Area Baddi ,Tehsil Nalagarh,

Distt Solan,

Himachal Pradesh 173205PUNJAB HARYANA UTTARPRADESH

Plot no- 297F, Phase 8B,

Industrial Area, Mohali,

Punjab. 16005934- B, Udyog Vihar,

Phase- 5, Gurgaon,

HARYANA 122016E- 7, Madhuban palace,

1st floor, Sanjay Nagar Sector- 23, Ghaziabad,

Uttar Pradesh 201001UTTARAKHAND DELHI, RAJASTHAN

E 410/1/A, Rajendra Nagar,

Roorki, Uttarkhand 2476679/52/1,

Kirti Nagar Industiral Area,

Kirti Nagar, Delhi 110015H- 410, Ramesh Marg,

C- Scheme, Jaipur,

Rajasthan 302001GUJRAT, MUMBAI, MADHYA PRADESH

116/1384, Laxmi Kripa Flat, New AEC Cross Road,

Narayanpura, Ahmedabad,

Gujrat 380013Plot no- 26, Sector 19E,

Vashi, (Off to Palm Beach Road) Near Adlabs,

New Mumbai 400705188, Rambali Nagar,

Kila Maidan, Indore,

Madhya Pradesh 45006CHATTISGARH ORISSA KOLKATA

Near Shivnath Hyundai, Beside Union Bank of India, G.E.Road, Tatibandh Chowk, Raipur,

ChattishgarhPlot no. 750, At- Vimpur Mauza,Near Airport Gate,

Bhubaneswar, Dist- Khurda, Orissa - 751020, Netaji Nagar, "E" Block, P.O.- Ganganagar, Madhyamgram,

Kolkata 700132BIHAR RANCHI ASSAM

A/11, Sachivalaya Coloney, Kankarbagh, Patna,

Bihar

Sant Vihar, Booty Road , Bariatu, P.S.- Sadar

Ranchi - 834009

Dulal Tea Ware House,NH- 37, Bel- tola, Guwahati,

Assam 781018ANDHRA PRADESH TAMIL NADU BANGALORE

Bunglow # 179, Old Bowenpally, Behind HP Petroll Pump, Near Old Bowenpally Bus Stop, Secunderabad , Andhra Pradesh 500011No- 17, 1st Noble Street , Near to Engine Values Ltd, Alandur , Chennai,

Tamil Nadu - 600056.

28, 20th 'I' Cross, Ejipura, Viveknagar Post,

Bangalore - 560047

KERALA

COMPANY FINANCIAL REPORTS

PERIOD ENDING09/2009 06/2009 03/2009 12/2008

Balance Sheet - Assets

Cash and Equivalents3,064,0002,974,0002,757,0002,693,000

Marketable Securities*735,000595,000465,000

Accounts Receivable225,0004,330,0005,820,0006,035,000

Other Receivable**1,119,000954,000

Receivables225,0004,330,0006,939,0006,989,000

Work in Progress*1,724,0001,565,0001,532,000

Finished Goods*1,634,0001,609,0001,799,000

Inventories Adjustments & Allowances*(709,000)(416,000)(390,000)

Inventories2,659,0002,649,0002,758,0002,941,000

Current Deferred Income Taxes*1,954,0001,882,0001,951,000

Other Current Assets*7,226,0005,288,0005,444,000

Total Current Assets17,363,00019,868,00020,219,00020,483,000

Land & Improvements*150,000158,000158,000

Building & Improvements*1,934,0002,042,0002,045,000

Machinery, Furniture & Equipment*5,811,0005,812,0005,821,000

Total Fixed Assets*7,895,0008,012,0008,024,000

Gross Fixed Assets (Plant, Prop. & Equip.)2,442,0007,895,0008,012,0008,024,000

Accumulated Depreciation & Depletion*5,390,0005,437,0005,447,000

Net Fixed Assets (Net PP&E)2,442,0002,505,0002,575,0002,577,000

Intangibles*1,298,0001,522,0001,201,000

Cost in Excess2,837,0004,351,0004,358,0004,517,000

Non-Current Deferred Income Taxes*3,060,0003,074,0002,679,000

Other Non-Current Assets*2,037,0001,991,0002,676,000

Total Non-Current Assets5,279,00013,251,00013,520,00013,650,000

Total Assets27,887,00033,119,00033,739,00034,133,000

Balance Sheet - Liabilities, Stockholders Equity

Accounts Payable3,188,0003,834,0003,806,0003,660,000

Notes Payable92,000189,000145,000174,000

Accrued Liabilities*6,229,0006,116,0006,445,000

Deferred Revenues*1,621,0001,507,0001,497,000

Total Current Liabilities10,620,00011,873,00011,574,00011,776,000

Long Term Debt4,092,0003,988,0003,971,0004,074,000

Other Non-Current Liabilities3,650,0002,599,0002,990,0003,103,000

Total Non-Current Liabilities7,742,0006,587,0006,961,0007,177,000

Total Liabilities11,022,00018,460,00018,535,00018,953,000

Common Stock Equity9,525,00014,659,00015,204,00015,180,000

Common Par*6,800,0006,797,0006,767,000

Additional Paid In Capital*926,000882,000749,000

Retained Earnings*7,649,0008,159,0008,269,000

Other Equity Adjustments*(716,000)(634,000)(605,000)

Total Capitalization13,617,00018,647,00019,175,00019,254,000

Total Equity9,525,00014,659,00015,204,00015,180,000

Total Liabilities & Stock Equity20,547,00033,119,00033,739,00034,133,000

Cash Flow*358,000843,000826,000

Working Capital14,083,0007,995,0008,645,0008,707,000

Free Cash Flow*(866,000)(771,000)(708,000)

Invested Capital13,617,00018,647,00019,175,00019,254,000

* = Data not availableINTRODUCTION TO STUDY UNDERTAKEN

SOME HIGHLIGHTS OF NOKIA & MICROMAX, MOTOROLA STRATEGIES IN MAR.09

Last September, Pitodia ponied up $56 for his first handset, a simple but sturdy Nokia N86. Now he sits under a colorful beach umbrella, earning as much as $10 a day taking orders by phone for both himself and nearby vendors. "I tried many phones, but Nokia is the most user-friendly," says Pitodia. "I am the only one in the footpath with a mobile," he says proudly. More than any other handset maker, Nokia Corp. has connected with the likes of Wang and Pitodia and their billions of countrymen. In both China and India, the Finnish company is the top brand.

In China last year, it had nearly 31% of a crowded market, well ahead of the 10% controlled by No. 2 Motorola Inc. Nokia's sales in Greater China (the mainland, Hong Kong, and Taiwan) jumped by 28%, to $4.5 billion. The region today is the company's biggest market, accounting for 11% of global revenues, compared with 8% in the U.S. In India, Nokia has a 60% share, with sales last year of about $1 billion. By 2010 the company expects India to be its No. 2 market.

Nokia isn't letting up: On Mar. 11 it opened its first Indian factory, a $150 million facility near the southern city of Madras (Chennai) that will turn out as many as 20 million inexpensive phones annually both for the local market and for export. And the company is doubling the size of its plant in the Chinese city of Dongguan, near Hong Kong.

The two Asian giants are of fundamental importance for Nokia. The Finnish company has played catch-up in the U.S., where Motorola has beaten it with hot-selling models such as the ultra-thin RAZR. But the U.S. market is nearly saturated.

The company that can control Asia's Big Two will have a lead in the global handset wars. Today, China is the world's No. 1 cellular market, with some 400 million users and growth last year of 20%. While India is far smaller, with just 81 million users in February, handset sales are expected to double this year and total users could hit 500 million by 2010.

"China and India are critical to Nokia's overall strategy and they can only get more important," says Neil Mawston, associate director of consultancy Strategy Analytics.

Caught off guard

Just a few years ago, Nokia faced big troubles in both countries. In India, growth was sluggish. Nokia was an early mover -- the country's first cell-phone call was made on one of its handsets -- but regulation hindered expansion.

In China, Nokia not only trailed Motorola, Micromax but was threatened by ascendant domestic players such as TCL and Ningbo Bird, newcomers to the business that had quickly gobbled up almost half of the market with their inexpensive but well-designed handsets.

The Finns "were caught off guard by the rise of the domestic vendors," says Ted Dean, managing director at BDA China Ltd., a Beijing consulting firm. "Suddenly, Nokia was struggling."

Where the Money Is in Wireless Nokia Realigns for the Future The local upstarts flooded stores nationwide with armies of sales assistants flogging their brands. "Our people would put up posters, and within 30 minutes they would be torn down," recalls Colin Giles, manager of Nokia's China handset business. Visiting a shop in the western city of Chengdu, Giles says, "You could hardly move in the store because of the number of salespeople."

To fight back, Giles pushed through big changes. Nokia decentralized, going from three Chinese sales offices in 2003 to 70 today. Instead of eight national distributors, Nokia now has 50 provincial ones.

And since rivals were having great success with handsets designed for mainland users, Nokia introduced its own China-specific models. For instance, since many rural Chinese aren't familiar with the romanized transliteration system that most cell phones use to input Chinese for text messages, Nokia developed two phones with software that lets them write characters with a stylus.

And Nokia invested in new computer systems that provide detailed sales data. "Tomorrow, I will be able to tell you what happened today in the top 4,500 outlets," Giles boasts. "In a week's time, I will be able to tell you about 30,000 outlets." The result: Nokia sold 27.5 million handsets in China last year, triple what it sold in 2003. Now, the company is planning for the launch of 3G in China, expected this year.

Since 2002, when India's cellular market took off, Nokia has drawn on its China experience to consolidate its lead. In 2004 the company launched two India-specific models, which included a flashlight, dust cover, and slip-free grip (handy during India's scorching, sweaty summers).

Nokia introduced software in seven regional languages for non-Hindi speakers and added ringtones of patriotic songs such as the nationalist hymn India Is the Best. And the company's marketers pitched the phones through ads tailored to India, with one early campaign showing burly truck drivers calling home on Nokia handsets.

"We invested when the market was nothing," says Robert Andersson, who oversees manufacturing, sales, and marketing at Nokia. "We have been able to harvest the fruits of that commitment in the last four years."

Fierce rivals

Nokia has also reaped the fruits of rivals' missteps. Motorola, Micromax was slower in reacting to the threat from the Chinese locals and has had a tougher time bouncing back. "Motorola, Micromax didn't change its strategy for a long time," says Chris Han, an analyst in Beijing at Norson Telecom Consulting.

The Chinese upstarts, meanwhile, have suffered sharp reversals due to disappointing quality. In India, Micromax, Motorola didn't focus on the market early enough, says Pankaj Mohindroo, president of the Indian Cellular Assn., a trade group. Today its share there is just 5% or so.

Rivals say the time is right to eat into Nokia's lead. Samsung in the past focused solely on the middle to high end of the market in India but began selling lower-cost phones last year. And on Mar. 7 the Korean company opened a new factory in Gurgaon, near Delhi.

Motorola and Micromax has revamped its structure in China, expanding its sales force and strengthening its distribution network to cover 300 cities. By February, Motorola had boosted its market share by several percentage points.

"We've done a lot of the blocking and tackling," says Michael Tatelman, Motorola's China chief. And in India, Motorola is planning to market phones costing as little as $35. Motorola Vice-President Allen Burnes calls India "pivotal" and says the company will open its first factory there in 18 months. Of course, that's 18 months behind Nokia, giving the Finns another opportunity to solidify their lead in Asia's Big Two.

FACTORS AFFECTING CONSUMER CHOICE ABOUT MOBILE PHONES;

Mobile phone choice and use has also been found to be related to prior consumption styles. According to a fresh survey of Finnish young people aged 16-20, it was found that mobile phone choice and especially usage is consistent with respondents general consumption styles (India, 2006). The research showed that addictive use was common among females and was related to trendy and impulsive consumption styles. Instead, males were found to have more technology enthusiasm and trend-consciousness. These attributes were then linked to impulsive consumption. The study concluded that genders are becoming more alike in mobile phone choice. Because individual differences in consumption patterns are obviously identifiable, we hypothesize that background

variables especially have an influence on mobile phone choice.

H1:

Demographic factors have an influence on the evaluations of different attributes related to mobile phone choice. Specifically, gender and social class will impact on the evaluations of the attributes as men belonging to higher social class seem to be more technology savvy. Consumers value in smart phones features that enhance their personal time planning (e.g., Jones, 2006). These high-rated features include calendar and e-mail services. It is interesting to note that according to Jones the so-called killer services such as gaming, gambling

and music downloads are not seen that important in the diffusion of smart phones. However, there is little support to this argument. However, while synchronization of calendar and e-mail services to PCs has become easy and fast, the importance of time planning in mobile phones becomes more and more important. Thus, the following hypothesis is proposed:

H2:

Consumers value personal time planning properties in the choice of new mobile phones. Another important aspect that has risen from different studies is that consumers purchase new phones due to the fact that their existing ones capacity is not appropriate referring to the idea that new technology features such as built-in cameras, better memory, radio, more developed messaging services, and color displays are influencing consumer decisions to acquire new models. Thus it can be expected that new features will influence the intention to acquire new mobile phones, and therefore the following hypothesis was developed:

H3:

New technical properties increase consumer willingness to acquire new phone models. In addition, it seems that size and brand play to some extent an important role in decision making. Haryana (2006) for instance surveyed Indian mobile phone users and found that size of the phone had no impact on mobile phone choice, but this finding might be due to the fact that all competing brands have quite similar sized phones that are small enough. Researcher continues that the trend will actually be not towards smaller phones but towards phones with better capability and larger screens. While companies are advertising new models and services that do not yet exist, it according to the paper signals to the market that the company is at the cutting edge of technology and shows what will be available in the very near future. The sales of new phones will then be driven by replacement rather than adoption. Thus, it is hypothesized that size and brand are related to mobile phone choice at some extent:

H4a:

When choosing between different mobile phone models, consumers value larger screen size but the whole phone should be small enough and light to carry in pocket.

H4b:

When choosing between different mobile phone models, consumers value familiar brands. Price of the phone has been identified as a critical factor in the choice of the mobile phone model, especially among younger people. By the use of a survey (n = 200), they found that besides new technological advances price was the most influential factor affecting the choice of a new mobile phone model. In India consumers pay relatively low prices for their phones. In India, that kind of linked transactions are regulated by law and currently illegal. In India, this kind of regulation has resulted in a situation where people change their operator quite often, and mostly on the basis of price. On this basis, it should be noted that price of the phone plays an important role in India and thus, we hypothesize that:

H5:

When choosing between different mobile phone models, especially lower income consumers have a price limit that restricts the choice to fewer models.

To summarize, consumer choice behavior can be studied through various frameworks such as the problem-solving paradigm and through consumer choice from product class through brand choice.

FACTORS AFFECTING CONSUMERS CHANGE IN CHOICE AND CONSUMER BEHAVIOUR

INTERPRETATION;

Although consumer motives underlying mobile phone acquisition are something one could call general knowledge, relatively little is known on the buying decision making process in relation to new mobile phone models packet with different properties (i.e., smart phones) allowing users to communicate in fresh ways.OBJECTIVES

OF

THE STUDY

OBJECTIVES OF THE STUDY

MAIN OBJECTIVES;

The primary objective of this project is to examine the importance of different factors affecting consumers motives related to mobile phone purchasing and to investigate the main reasons for Brand switching.

The main objective of the study is to consider each and every aspect of Micromax in terms of its offerings and Marketing activities done by it to get the competitive Market share.

OTHER OBJECTIVES; In India where Micromax is lacking to get better Market share in spite of making vital efforts to compete Nokia and how can be the better image developed in front of potential and existing customers.

Which factors strongly matters for customers while they think to purchase any mobile handset?

Perceptions of the existing and potential customers towards different brands of Mobile Handsets.

What tangible and intangible features should be added or improved in Micromax offerings to provide better satisfaction in terms of value or benefits.

LIMITATIONS

OF

THE STUDY

LIMITATIONS OF THE STUDY

While conducting a Marketing Research, the researcher faces a lot of limitations. The present study is not an exception. A few errors have been expected despite of best efforts to avoid them but this is expected that still the study is much relevant, in spite of following;

As the study is based mainly on primary data and some instances of secondary data is used in this study, the possibilities of personal bias cant be ruled out.

The researcher had an intention to reach a large sample size but due to lack of much time and financial resources the intention could not be accomplished upon the desired level.

Some respondents were reluctant to reveal the informations on the pretext that they didnt have sufficient time.

Despite all of the limitations efforts are being made so as best to minimize the errors caused in the results.

RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY

RESEARCH DESIGN- EXPLORATORY R.D Exploratory research design is used to find out the cause of less market share captured by Micromax rather than Nokia. After problem identification researcher to solve the above problem has tried to sort out ideas.

SAMPLING DESIGN- RANDOM SAMPLING

Random sampling has been used to select the samples to collect informations, which could provide better solutions to solve the problem.

UNIVERSE OF STUDY-

INDIA

India has been selected by the researcher to draw inferences on the based of sample study.

SURVEY POPULATION-

HARYANA

Haryana has been taken as total population of the survey, on the bases of which inferences can be drawn about India.

SAMPLING UNIT-

ALL USERS AND NON-USERS

Researcher also want to check out total brand image of Micromax in India, which can be better understood by perceptions and buying behaviour of users and non-users of Micromax.

SAMPLE SIZE-

200 RESPONDENTS

Researcher had the greater intention to survey out a large sample but due to lack of much time and financial resources it couldnt be possible and only 200 respondents have been taken as sample size.

DATA COLLECTION-

PRIMARY & SECONDARY DATA

Primary data- Primary data has been collected through the structured questionnaire with the help of cooperation made by respondents, which helped to draw solutions to the problems.

Secondary data- Secondary data has been collected through Internet and broachers of company offerings.

ANALYSIS

AND

INTERPRETATION

TABLE-1 RESPONSESNO. OF RESPONDENTS%AGE

YES17688

NO2412

INETRPRETATION-

The above graph is interpretated as 88% respondents having Mobile Handsets and 12% having not.

TABLE-2

REASONSNO. OF RESPONDENTS%AGE

COST EFFECTIVENESS937.5

ALREADY HAVING LANDLINE1145.8

HEALTH CONSIOUSNESS14.16

ANY OTHER312.5

TOTAL24100

INTERPRETATION

This graph is showing the reasons that 19% respondents are not ready to buy any Mobile handset for Cost effectiveness, 50% are satisfied with their landline phones, 2% for Health consciousness and 6% for any other reason.

TABLE-3

BRAND NAMENO. OF RESPONDENTS%AGE

NOKIA11163

MOTOROLA2514

MICROMAX74

ANY OTHER3319

TOTAL176100

INTERPRETATION

This graph is interpretated as 63% respondents having NOKIA Mobile handsets, 14% having MOTOROLA Mobile handsets, 4% having MICROMAX Mobile handsets and 19% having any other Mobile handsets.

TABLE-4

TYPE OF HANDSETNO. OF RESPONDENTS%AGE

GSM15889.77

CDMA1810.23

INTERPRETATION

This graph is showing that 90% respondents having GSM handsets and 10% having CDMA handsets. Most of respondents having CDMA handsets are using TATAs services.

TABLE-5FACTORSRANKING SUMRANKS

COST2843

RESALE VALUE3215

DESIGN/LOOK2712

FUNCTIONS2541

WEB BROWSERS3446

BATTERY BACKUP2964

MEMORY CHIP CAPACITY3767

COUNTRY OF ORIGIN3828

INTERPRETATION

This graph is showing that factors having least percentage have least ranks given by respondents, which influenced their buying decisions for their current Mobile handsets.

TABLE-6TYPE OF HANDSETNO. OF RESPONDENTS%AGE

FIRST HAND10459.09

SECOND HAND7240.91

TOTAL176100

INTERPRETATION

This graph is showing that 59% respondents having First Hand Mobile handsets and 41% having Second Hand Mobile handsets.

TABLE-7

COSTNO. OF RESPONDENTS%AGE