consumer behaviour on micromax

7/21/2019 consumer behaviour on micromax

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Chapter 1

INTRODUCTION

1.1ABOUT THE TOPIC

Perception plays an important role in every organizational growth. if perception of the customers

towards a company or brand is favorable, only then they would go for it . perception is defined as the

process by which an individual selects organizes and interprets stimuli into a meaningful and coherent

picture of the world, or it can be described as” how we see the world around us” people usually see

what they expect to see, is usually based on familiarity, previous experience, or precondition set

(expectations).in a marketing context, people tend to perceive products and products attributes.

ccording to their own expectations.

!he customer perception is influenced by various factors, which may result in change in service "uality

as well. #arious such factors could be like$ ge, gender, %ccupation, &lobal competition '

!echnological changes. !he perception of younger generation of service "uality could be different from

the older one. imilarly a working corporate professional perception could be different from a

businessperson or from a housemaid. !hat is why the perception should be taken into consideration by

service providers to meet the customer re"uirements.

!his study attempts to finds customer perception in various dimension. !he focus is on understanding

the "ualityperformance, product attributes, image and price of micromax mobile handset.

*



1.2 Industry profie

!he mobile phone market in +ndia is worth *- million handsets annually. arket opportunities

in the +ndian mobile handset market is expected to grow from a total of */* million handsets for the

twelve month period ended 0ecember *, 1--2 to 3-1 million handsets for the twelve month period

ended 0ecember *, 1-*3. !he growth in the +ndian mobile handset market is likely to be driven by the

replacement handset market rather than new user additions. 4ithin the replacement handset market, the

medium P device market is likely to grow the fastest. 5eplacement cycle$ !he growth in the +ndian

mobile handset market is likely to be driven by the replacement handset market rather than new user

additions. !he replacement market is expected to grow from **6 million handsets for the twelve month

period ended 0ecember *, 1-*-, constituting 71.889 of overall +ndian mobile handset market, to /2

million handsets for the twelve month period ended 0ecember *, 1-*3, constituting 62.-9 of overall

+ndian mobile handset market.

ome ma:or companies$

;%<+

=;&

PP>?

%;@ ?5+A+%;

<5B%;

P+A?

>#

;%<+ C ;okia is the leader in the mobile phone industry in +ndia (69 market share). +t is

dominating the +ndian market from years. 5ecently it is facing problems to retain its growth and sales.

But the pioneer is working hard to get out of this. Dor the same reason ;okia is going to use operating

system of software biggie icrosoft. o it is expected that ;okia will try to regain its lost market share.

=;& C amsung has emerged as a very healthy and prominent competitor in the market.

amsung is backed with the high "uality and professional team in the 5'0 area. +nnovative products

specially smart phones and &alaxy series from amsung are ruling in the market. o it is expected that

with the increasing demand of mobile phones amsung will try to retain and increase its market share.

PP>? C pple is one of the most ma:or competitors in this industry. lick, stylish and innovative

phones of pple are driving crazy to its users. pple is aggressively entering +ndian market with its

1



amazing iPhone series. %ther domestic players C %ther players like <arbon, pice, >ava etc have more

or less the same market strategy. Ahinese manufacturers C ome of the Ahinese manufacturers have

already entered the +ndian market. !hese manufacturers have priced their mobiles very low. o these

manufacturers are expected to grow as with the demand.

4hile the big companies like ;okia, amsung, >.&. otorola and ony ?ricsson make up for 8-9

share, the market has of late seen a slew of domestic firms such as icromax, <arbon and +ntex

making large in roads and new established brands like #ideocon and %nida entering the field. mong

the domestic firms, one of the most promising brand is icromax. icromax, started operations in

*22* as an embedded software design firm, but was incorporated as a company in *226, when it

branched out as a distributor of computer peripherals such as printers, monitors, scanners from

manufacturers such as >.&., ony +nc., 0ell Aorp. !oday, icromax is one of the leading +ndian

!elecom Aompanies with 1 domestic offices across the country and international offices in Eong

<ong, =, 0ubai and now in ;epal.

1.! Co"pany Profie#



$i%ro"a& Infor"ati%s 'i"ited (%o"pany profie)

icromax was incorporated as icromax +nformatics >td. on 12 arch 1---. !hey started rebranding

Ahinese imported mobile phones in 1--6with a focus on low pricing, in order to compete with

international brands. Because of the issues of power in 0ewas, 5ahul harma saw a PA% being

powered by a truck battery and decided to launch a feature phone with longer battery life. icromax

launched its first phone with a month long battery backFup known as G*i.+n 1-*3, icromax

surpassed amsung to become the mobile phone manufacturer shipping the most number of phones in a

single "uarter in +ndia. %n 13 Hanuary 1-*3, icromax became the first +ndian mobile company to start

sales in 5ussia. !he launched their first phone in rural areas with uni"ue features of -days battery

life(micromax x*i).+t is present in /7- districts through *1,/--- retail outlets in +ndia. +t spreads across

5A market including Bangladesh, rilanka, ;epal on :anuary 1-*3 introduced in 5ussia.

icromax is the highest handset seller brand in second "uarter of 1-*3 having market share around

*7.79 and amsung *3.39.amsung maintained its leadership with more then 3.3 millions units

shipped and micromax .* millions. icromax is the second largest company and it can surpass

amsung only if the customer holds high perception of its mobile handsets. icromax +nformatics

>imited is one of the leading consumer electronics company in +ndia and the *-th largest mobile phone

player in the world. 4ith sales presence across +ndia and global presence in 5ussia and 5A

markets, the +ndian brand is reaching out to the global frontier with innovative products that challenge

the status "uo that +nnovation comes with a price.

!he history of icromax (1-*F*3 revenue$ 5s *,286 crore or 5s *2.86 billion), which ventured into

the mobile phone market in 1--6, is one of the most fascinating success stories in the +ndian consumer

electronics industry. +n barely years, the company has come to occupy the third position (by volume)

in the mobile handset market in +ndia and is at ;o. *1 globally. +t leads the +ndian tablet market with a

share of *6.3 per cent, ahead of veterans amsung and pple. %ver the past decade, icromax has

pioneered the democratization of technology in +ndia by offering affordable innovations through their

product offerings and removing barriers for large scale adoption of advanced technologies. icromax is

currently the 1nd largest smart phone company in +ndia. icromax is a brand which is close to the heart

of the youth and celebrates the vibrancies of life and empowerment.

3



Produ%ts#

icromax products have become an extension of the +ndian youthIs lifestyle and dynamism. !he

company has many firsts to its credit when it comes to the mobile handset market including the -Fday

battery backup, 0ual + 0ual tandby phones, J4?5!@ keypads, universal remote control mobile

phones, first "uadFcore budget smart phone etc. !he brandIs product portfolio embraces more than 7-

models today, ranging from feature rich, dual C + phones, & ndroid smart phones, tablets, >?0

televisions and data cards. icromax sells around 1. million obility 0evices every month, with a

presence in more than /7- districts through *, 1/,--- retail outlets in +ndia.

*+OT Anaysis#

*tren,ths$

Inno-ati-e produ%ts and features$ arathon battery mobile phones with a -Fday battery life,

phone which is programmable as a universal remote control, gravity phones are some of the

features which have increased the popularity of the product. 'o %ost of produ%tion $ 4ith its plants located in Ahina, icromax bears a low cost in

production due to availability of labour at cheaper rates. Effe%ti-e pro"otion %a"pai,ns$ icromax has been promoting its products through famous

celebrities and has also had tie ups with !#.

+ea/nesses#

+ea/ 0rand i"a,e in ur0an areas# icromax has still not been able to establish itself well in

the urban market as its main concentration had been on the rural population. Per%eption of ouaity Chinese 0rand$ icromax has a manufacturing unit set up in china

which has strengthened this perception among people.

Opportunities#

In%rease penetration in ur0an "ar/et# ince icromax has not yet entered this marketK it has

a very huge opportunity to establish itself in this market.

/



Entry into internationa "ar/etsF icromax has the potential to make its presence felt on

global scale eventually as it establishes itself in the domestic market.

Threats$

In%reasin, %o"petition fro" o%a and internationa payers 4ith well established players

like ;okia, amsung, etc icromax faces a tough competition from these players.

1.!. 'iterature Re-ie.

chiffman and <anuk (1--) defined Perception as the process by which an individual selects,organizes and interprets stimuli into a meaningful and coherent picture of world. it can described Lhow

we see the world around usI. !hey emphasized that +ndividual act and react on the basis of their

perceptions not on the basis of ob:ective reality. Dor each individual reality is totally personal

7



phenomenon based on that personIs needs, wants, value and personal experiences. +ndividual make

decision based on what they perceive to be reality. !wo individual may be exposed to the same stimuli

under the same conditions but how each person recognize, selects ,organize and interprets these stimuli

under the same apparent condition but how each person recognize, selects , organize and interprets

these stimuli is highly individual process based on each persons need, value and expectations.

Parasuraman, Meithaml nd Berry (*223)have tried to integrate the concepts of product "uality and

service "uality into an overall transaction satisfaction index, on the basis that all product purchases

contain some element of service beyond the core tangible offering. !heir research model suggests that

the consumerIs overall satisfaction with the transaction is based on the evaluation of three components$

service "uality, product and price

1.3 *%ope of the *tudy

• !his study help icromax mobile to work on the weakness of it and areas or improvements, so

that they can get the rid of market which will help to be of first position.• !he study covers students of post graduation (1*F1/yrs)

• !he &eographical rea covered was &reater ;oida region.

• !he study of the customer perception is extensive and covers respondents across all categories.

• !his pro:ect helped me in knowing the market practically.

8



• !he study also covers the areas which are important for th improving their performance.

6



1.4 O05e%ti-e of the study

• !o find out the proportion of customer holding favorable and unfavorable perception of

micromax mobile handset.• !o find out perception of product attributes of micromax mobile handset.

• !o find out perception of customer services of micromax mobile handset.

• !o find out perceived risk associated with micromax mobile handset.

• !o find out perception of price of micromax mobile handset.

2



1.6. RE*EARCH $ETODO'O78

5esearch always starts with a "uestion or a problem. +ts purpose is to "uestion through the application

of the scientific method. +t is a systematic and intensive study directed towards a more complete

knowledge of the sub:ect studied.

arketing research (5) is the function which links the consumer, customer and public to the marketer

through informationF information used to identify and define marketing opportunities and problems

generate, refine, and evaluate marketing actions, monitor marketing actions, monitor marketing

performance and improve understanding of market as a process.

arketing research specifies the information re"uired to address these issues, designs, and the method

for collecting information, manage and implemented the data collection process, analyses the results

and communicate the findings and their implication

!hus, three key ideas regarding marketing research are$F

arketing research is concerned with studying any of the manifold problems in marketing.

+ts purpose is to aid decisionFmaking in the marketing field. ystematic gathering and analysis of

information is its route in achieving +ts purpose.

*a"pe desi,n$F

*ample size$ 3-

ample unit$ tudents of post graduate students of &reater ;oida.

DATA CO''ECTION

Primary data$

+t is original data, first hand and for the specific purpose of the research pro:ect. Dor this pro:ect, + have

used the following common research instrument$F

Primary 0ata Aollection$

Primary data is generated by the students or the researcher for the preparation of the pro:ect and used

by the student immediately for collecting data .

*) %bservation

*-



1) urvey

) Personal +nterview

3) Juestionnaire

Juestionnaire$

Juestionnaire development is the critical part of primary data collection :ob. Dor this + have prepared a

"uestionnaire in such a way that it is able to collect all relevant information regarding the pro:ect.

+n this "uestionnaire, + have used mostly closeFended "uestions that are easier to be answered by

respondents (consumers) and also easier for interpretation and tabulation ' one openFended "uestion to

take the opinion of the respondents in their own words. !he "uestions were asked to the consumers

covering perception towards their purchase, price of the product, purpose for using the product,

characteristic of the product, brand image, effectiveness of the advertisements, sales promotional

activities, overall opinion about the product, etc.

Dor collecting the answers from the above "uestionnaire, + have used the following common method$F

+nterview$

+t is the most common method for contacting consumers ' collecting primary data. Dor this pro:ect +

have used following type of interview$F

Personal interview$

+t is the most extensively used method. +t enables better control of the sample and ensures answers from

the respondents. +t also provides for a tactful approach to the respondent since it is based on a personF

toFperson talk. But this method is generally more expensive and time consuming. Dor this pro:ect each

interview was taking */ to 1- minutes to complete

econdary data$

econdary data means data that are already available i.e. they refer to the data which have already have

been collected and analyzed by someone else.

Both primary and secondary data has been collected for this study . Primary data has been collected

through "uestionnaire. econdary data has been data has been collected through :ournals, company

websites, books, reports etc.

**



1.9 'i"itations

• Dinancial limitation

• !he study is limited to &reater ;oida region

• Because of time constraint sample size was the scope of this pro:ect is limited to areas.

• ome of the respondents did not respond wholeFheartedly due to lack of time.

• !he "uestionnaire was not taken seriously by many surveyed respondents due to which they

filled in improper responses or might have :ust filled the "uestionnaire without properly

analyzing the "uestions or purpose it is meant for.

• +t is difficult to know whether the sample is truly representative of the population or not.

Chapter 2

*1



DATA ANA'8*I* AND INTERPRETATION

2.1 De"o,raphi% profie of respondents

A,e

!he age of respondents was in the range of 1*F1/ yrs.

7ender

Ta0e 2.1# 7ender

:i,.2.1.

Male Female

0

10

20

30

40

50

60

70

62.5

37.5

Gender of respondents

gender of respondents

2.2 Users of "o0ie phone handset

!able$F1.1 =sers of mobile phone handset

!ypes of phone ;o of users 9users

Aonventional phone 6 1-

mart phone 1 6-

!ypes of mobile phone handset used$

*

&ender 9of respondents

ale 1/ 71./

Demale */ 8./



conventional phone smart phone0

10

20

30

40

50

60

70

80

%users

%sers

+nterpretation$

%nly 1-9 of respondents were having conventional phone and 6-9 of them were having smart phone.

2.!# Duration of Usa,e

Ta0e 2.!#0uration of =sage

0uration of =sage 9of respondents

N @ears 7 */

@ears 6 1-

1@ears *- 1/

*@ears *7 3-

:i,.2.!.

*3



!3 "rs 3 "rs 2 "rs 1 "rs

0

5

10

15

20

25

30

35

40

15

20

25

40

Duration of Usages

#ration of $sages

Interpretation#

ost of the respondents(3-9) were using micromax mobile set for the last one year. %nly */9 were

using their mobile for more than three years.

2.3 Custo"er Per%eption Of $i%ro"a& $o0ie *et

2.3.1 Per%eption of i"a,e

Ta0e2.3 # Per%eption of i"a,e

Perception of image 9of respondents

;eutral 3 *-

gree 17 7/

trongly gree *- 1/

:i,.2.3

*/



gree strongl& gree 'etral0

10

20

30

40

50

60

70

65

25

10

perception of image

perception of image

+nterpretation$7/9 of the respondents agreed and 1/9 strongly agreed that micromax mobile handset has a good

image among mobile users. ;one of the respondents found to be held negative image of micromax

mobile set. +t means that higher proportion of respondents held favorable perception of image.

2.3.2 per%eption of "i%ro"a& "o0ie set in %o"parison ith other %o"pany "o0ie set

!ableF1./perception of comparative image of micromax ;ot inferior 9of respondents

trongly 0isagree 3 /

0isagree / *1./

neutral *1 -

gree 2 11./

trongly gree *- 1/

:i,.2.4.

*7



0

5

10

15

2025

30

5

12.5

30

22.5 25

comperative analysis

not inferior

Interpretation#

1/9 of the respondents strongly agreed and 19 of them agreed that micromax mobile handset was not

inferior in comparison to other reputed companyIs mobile sets. But *69 of the respondents perceived

that micromax mobile handset was inferior in comparison to other reputed companyIs mobile sets . it

means less than half of the respondents perceived that micromax mobile set was inferior to otherreputated company mobile set.

2.3.! # per%eption of features!ableF1.7# perception of Deature

ppealing Deature ;o. of respondents 9of respondents

trongly 0isagree - -

0isagree - -

;eutral *1 -

gree 1- /-

trongly gree 6 1-

:i,.2.6.

*8



0

5

10

15

20

25

30

35

40

45

50

00

30

50

20

appeain, feature

appealing featre

Interpretation#

/-9 respondents agreed that micromax mobile set has appealing features and a 1-9 respondents

perceived it. -9 of the respondents perceived neutral about features of micromax mobile set. it means

high proportion(8-9) of respondents perceived the features of micromax mobile set to be appealing.

2.3.3 per%eption of uaity;perfor"an%e

!ableF1.8# Perception about "uality

Perception about "uality 9of respondents

trongly 0isagree 3 *-

0isagree 7 */

neutral 3 *-

gree *1 -

trongly gree *3 /

:i,2.9

*6



0

5

10

15

20

25

30

35

1015

10

30

35

perception about quality

perception a(ot )alit&

+nterpretation$

/9 of the respondents strongly and -9 are agreed that micromax mobile is providing good "uality .itmeans that higher proportion (7/9) of respondents perceived the performance of micromax mobile set

meeting their expectation .

2.3.4 per%eption of re%o,nition due to oin, "i%ro"a& "o0ie set

!ableF1.6#Perception about ocial recognitionPerception about ocial 5isk 9of respondents

trongly 0isagree - -

0isagree 1 /

neutral *3 /

gree *6 3/

trongly gree 7 */

:i,.2.<.

*2



0

5

10

15

20

25

30

35

40

45

0

5

35

45

15

per%eption a0out ris/

perception a(ot ris*

Interpretation#

3/9 and */9 respondents agreed that micromax mobile handset provides social recognition and onlyfew respondents were having risk. +t means that higher proportion(7-9) of respondents perceived that

micromax mobile set gave recognition to a person in the society.

2.3.6 per%eption of ser-i%e

!ableF1.2$Perception about after sale service

Perception about after saleservice

;o of respondents 9of respondents

trongly 0isagree 3 *-

0isagree 6 1-

neutral *3 /

gree *3 /

trongly gree - -

:i,.2.=.

1-



0

5

10

15

20

25

30

35

10

20

35 35

0

perception about after sale service

perception a(ot after sale

service

Interpretation#

/9 of the respondents agreed that they got after sale service but most of the respondents did not getafter sale service. it means :ust over * rd (/9) of the respondents perceived after sale service of

micromax to be good.

2.3.9 #Per%eption of pri%e

1.*-$ Perception of price

;o of respondent 9 of respondenttrongly disagree F F

0isagree 8./

;eutral / *1./

gree 1- /-

trongly agree *1 -

Dig.1.*-.

1*



05

1015202530354045

50

attractive price

attractive price

Interpretation#

/-9 of the respondents agreed , -9 strongly agreed ,*1./9 of the them were neutral and 8./9

of them disagreed that price of micromax mobile set was attractive. +t means that a high

proportion of respondents (6-9) perceived that price of micromax mobile set was attractive.

2.4 %verall atisfaction >evel

Ta0e1> %verall atisfaction >evel

:i,.1>.

11

5espondent atisfaction >evel

;umber of

5espondents

9 of respondents

atisfied *3 /

highly satisfied *7 3-

dissatisfied 7 */

highly dissatisfied 3 *-



satis+ed

highl& satis+ed

#issatis+ed

,ighl& #issatis+ed

0

10

20

30

4035

40

15

10

respondents

respondents

Interpretation#

/9 of respondents satisfied and 3-9 of respondents are highly satisfied about micromax overall

performance and */9 and*-9 are dissatisfied and highly dissatisfied. it means that 3th were

satisfied with their micromax mobile set.

Chapter!

:INDIN7*.

!he facts that we have found from the research on the consumer perception about micromax mobile are

as follows$

• +t is found that a very high proportion (6-9) of respondents held favorable perception of image.

;one of the respondents was found to be held negative image of micromax mobile set.

1



• +t is found that less than half of (369) the respondents perceived that micromax mobile set was

not inferior to other reputated company mobile set.

• +t is found that high proportion (8-9) of respondents perceived the features of micromax

mobile set to be appealing.

• +t is found that higher proportion (7/9) of respondents perceived the performance of micromax

mobile set meeting their expectation. Eowever 249 of respondents did not perceive the

performance of micromax mobile not match with their exactation.

• +t means that higher proportion (7-9) of respondents perceived that micromax mobile set gave

recognition to a person in the society.

• +t is found that :ust over * rd (!49) of the respondents perceived after sale service of

micromax to be good

• +t means that a high proportion of respondents (6-9) perceived that price of micromax mobile

set was attractive

• +t is found that 3th were satisfied with their micromax mobile set.

Chapter3*U77E*TION

!he few of the suggestions which we could give to the company based on the research to

improve its sale and market share are as follows$

• !he company should work on celebrity endorsements .?x$ they brought in Eugh

Hackman to promote the brand instead they should have brought in +ndian stars with

whom the customer could relate.

• !he company should work on improving the "uality of the mobile phones..

• !he company should work on improving the after sales services by opening up more

service centers at accessible places and improve the promptness of services.

13



Chapter4

CONC'U*ION.

4ith the advent of !echnology world around us, its really hard to penetrate the market for any

brand especially when companies like pple and amsung have flooded the entire market with their

innovative products. midst this n +ndian Aompany icromax has come out with some radiance and

seem to be a mass scale product for mid income group, enhancing the brand and its value. pple, amsung are likely to give away their products charging /-,--- and micromax would

give away the same features in say around 1/,---. +ts :ust the cost of brand that other companies chargefor their product which is not charged by micromax and compromised by the customers when they buy+A5%G.

People have become prone to change and it has almost become a fashion keeping cell phones

with latest sleek slim body and newer version of operating system. +ts because of this reason that peopledo take up +A%G and use it for sometime and then switch over again. !he survey conveys the

fact as the number of users using the phones for more than years is much less than people using it for

* year or so. +ts sales in terms of volume is more in comparison to the other companies but its sales in value is

not very much at par with the other companies. +t made its mark among big shot companies like apple

and amsung

But there are few faults in the marketing, distribution and other fields which the companyneeds to deal with to gain a stronger market position and become at par with the companies like

amsung and apple.

1/



Bi0io,raphy

*. <othari, 5. A. 5esearch ethodology(*22-)5evised edition. ;ew ge +nternational

>imited publishers.1. <otler. P, (1--3) arketing anagement. pearson ?ducation.

. Parasuraman, ., Meithaml, #.., and Berry, >. (*223). 5eassement of ?xpectations as a

comparison tandard in easuring service Juality for further 5esearch. Hournal of

arketing,/6, Hanuary *223.

3. chiffman, >.&. and <anuk, >.>. (1--) Aonsumer Behavavior PE+.

4?B+!?$

• www.google.com

• www.wikipedia.com

• www.micromax.com• www.slideshare.com

• www.micromaxindia.com

17

http://www.google.com/

http://www.wikipedia.com/

http://www.micromax.com/

http://www.slideshare.com/

http://www.micromaxindia.com/

http://www.wikipedia.com/

http://www.micromax.com/

http://www.slideshare.com/

http://www.micromaxindia.com/

http://www.google.com/



?UE*TIONNAIRE

Na"e # @@@@@@@@@@@@@@@

A,e $ O.@rs

7ender # a) ale b) Demale

O%%upation # (a) alaried (b) Business man (c) tudent (d) %thers

E"ai # @@@@@@@@@@@@@

FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFxxxxxxxxxxxxxFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF

1. +hi%h type of $i%ro"a& "o0ie handset do you ha-e

(a) Aonventional Phone (b) mart phone

2. I ha-e 0een usin, $i%ro"a& "o0ie handset for#

(a) * yr (b) 1 yrs (c) yrs (d) N yrs

!. Indi%ate your response to the fooin, state"ents in 1 to 4 s%ae as "entioned 0eo. (*F

trongly disagree, 1F0isagree, F;eutral, 3Fgree, /Ftrongly agree)

*D D N A *A

.*. icromax mobile set has a good image among

mobile users.

18



.1. icromax mobile is not inferior to any other reputed

companyLs mobile set.

.. icromax mobile set has appealing features.

.3. !he "ualityperformance of icromax mobile set

matches my expectation.

./. %wning icromax gives recognition to a person.

.7. Austomer service related to the icromax mobile is

good

.8 !he price of micromax mobile handset is attractive

3. hat is your O-era e-e of satisfa%tion ith your "o0ie set

Eighly

dissatisfied

0issatisfied ;eutral atisfied Eighly

satisfied

consumer behaviour on micromax

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