A DISSERTATION PROJECT REPORT ON

BRAND PREFERENCE OF MOBILE PHONE AMONG COLLEGE STUDENTS

A report submitted in partial fulfillment of the requirement for MBA Program of IISWBM CHETAN GUPTA
ROLL No. : 107/MBA/111021 REGISTRATION No. : 004686 of 2006-2007 MAJOR: MARKETING MINOR: FINANCE SESSION: 2011-2013 MBA (D) 4TH SEMESTER

Indian Institute of Social Welfare and Business Management

1|Page

Acknowledgement

I take this opportunity to express my gratitude to the people who have been instrumental in the successful completion of this project. It was the continuous guidance and useful suggestions of Dr. A. Sharma, which helped me in successfully completing the project work. I wish to express my deep sense of gratitude to her. I would also like to thank Dr. Tanima Ray for their advice, encouragement and cooperation.

I also take immense pleasure in thanking my respective faculty members from IISWBM (Indian Institute of Social Welfare & Business Management) for their timely guidance in the conduct of this project work. I am grateful for their constant support and help. Without their encouragement and guidance this project would not have materialized. Also, my special gratitude to friends and family, without whose support and motivation this work could not have been completed successfully.

2|Page

PREFACE

The project gives an insight of the telecom sector. It basically helps understanding the brand preference of students with regard to mobile phones. It helps us to know on what basis a student chooses a particular brand when he/she purchases a new handset.

The project will help to learn about the growing telecom sector in India. The research will also bring to light what all factors a student considers at the time of purchase of a new mobile phone.

3|Page

Table of Contents
1. INTRODUCTION .................................................................................................... 5 a. Definition of Cellular/Mobile phone ............................................................ 5 b. Telecom Industry in India ............................................................................... 6 c. The Key players in the Telecom Market in India....................................... 7 d. Objectives of the Study ....................................................................................... 8 2. RESEARCH METHODOLOGY .......................................................................... 9 a. SAMPLING METHODOLOGY: .......................................................................... 9 b. RESEARCH DESIGN: - ....................................................................................... 9 c. DATA COLLECTION:.......................................................................................... 9 3. 4. 5. 6. 7. 8. DATA ANALYSIS AND INTERPRETATION ......................................................... 10 FINDINGS ............................................................................................................ 21 RECOMMENDATIONS ..................................................................................... 22 LIMITATIONS ....................................................................................................... 23 BIBLIOGRAPHY ................................................................................................... 23 ANNEXURE .......................................................................................................... 24

4|Page

1. INTRODUCTION
a. Definition of Cellular/Mobile phone
The Cellular telephone (commonly "mobile phone" or "cell phone") is a long-range, portable electronic device used for mobile communication. In addition to the standard voice function of a telephone, current mobile phones can support many additional services such as SMS for text messaging, email, packet switching for access to the Internet, and MMS for sending and receiving photos and video. Most current mobile phones connect to a cellular network of base stations (cell sites), which is in turn interconnected to the public switched telephone network (PSTN) (the exception is satellite phones. Cellular telephone is also defined as a type of short-wave analog or 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, the telephone is effectively passed on to the local cell transmitter. A cellular telephone is not to be confused with a cordless telephone (which is simply a phone with a very short wireless connection to a local phone outlet). A newer service similar to cellular is personal communications services (PCS).

5|Page

b. Telecom Industry in India

The telecom industry is one of the fastest growing industries in India. India has nearly 200 million telephone lines making it the third largest network in the world after China and USA. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world. Much of the growth in Asia Pacific Wireless Telecommunication Market is and China. Indias mobile phone subscriber base is growing at a rate of 82.2%. China is the biggest market in Asia Pacific with a subscriber base of 48% of the total subscribers in Asia Pacific. Compared to that Indias share in Asia Pacific Mobile phone market is 6.4%. Considering the fact that India and China have almost comparable populations, Indias low mobile penetration offers huge scope for growth. spurred by the growth in demand in countries like India

6|Page

c. The Key players in the Telecom Market in India

1. Nokia 2. Samsung 3. LG 4. Apple 5. Sony 6. Motorola 7.Blackberry 8. Micromax

Figure 1: Market share of phones under student segment.

7|Page

d. OBJECTIVES OF THE STUDY

The Primary Objective was to study the perception & buying behavior of students towards various mobile brands. The Secondary Objectives of this study were to identify: To know about the student preference level associated with different mobile phones. To find out the students satisfaction towards the various mobile phones. Major features, which a customer looks for in a mobile before making a purchase. Factors that influence decision-making in purchasing a mobile phone. To know which advertisement media puts more impact on the buying decision of students. Factors, which help in increasing the sale of mobile phones.

8|Page

2. RESEARCH METHODOLOGY
a. SAMPLING METHODOLOGY:
Sample Size 160 respondents Sample Unit- Students of Graduation and the Post Graduation have been taken as sample unit. Sampling Area Kolkata Sampling Technique convenient Sampling technique

b. RESEARCH DESIGN: Visited the students across Kolkata (College Street) & gathered information required as per the questionnaire. The research design is probability research design and is descriptive research.

c. DATA COLLECTION:
Primary data has been used by me in the form of Questionnaire & Observation, which are the two basic methods of collecting primary data, which suffices all research objectives. Secondary data sources like catalogue of the company, product range book of the company & various internet sites such as google & shopping sites have been used.

9|Page

3. DATA ANALYSIS AND INTERPRETATION

Occupation of the Respondents Father

Occupation %

1 2 3 4

Service Professional Business Others Total

45% 12% 28% 15% 100%

Figure2 Occupation of the Respondents Father

Interpretation
The graphical representation of the table shows that out of the 160 respondents, 45 % respondents belong to the service family, 28 % were from business, 12 % were from the professional and 15 % were from the others family.

10 | P a g e

Income level of the respondents family

Figure 3 Income level of the respondents family

Interpretation
The graphical representation of the table shows that out of the 200 respondents, 3 % respondents were from the family whose income is less than 15,000(below middle class), 17% respondents were from the family whose income is between the 15,001 25,000(lower middle class), 25 % respondents were from the family whose income is between 25,00145,000 (mid middle class) and 56 % rest were from the family whose income is above 45,001 (High middle class

11 | P a g e

Market share

Figure 4 Market share of respondent

Response %

1 2 3 4 5 6 7 9 8

Samsung Nokia Blackberry Apple LG Sony Micromax HTC Others (Local / chinese handset) Total

60 66 6 2 8 8 4 4 3 160

37% 41% 4% 1% 5% 5% 2% 2% 2% 100%

Figure 5 Market share of respondent (Tabular form)

12 | P a g e

Interpretation
Out of the 160 respondents, Major handset used by students are Nokia & Samsung. Samsung has emerged as a new market leader. Nokia has gradually lost its market share over the years. New players had joined the league naming Chinese handsets. Blackberry has entered Indian market with big swings. Though Blackberry portrays itself as YOUTH brand but it is being used by few respondents and rest of all share a more or less equitable share among students.

How long consumers use their mobile phones

16 14 12

10
8 6 4 2 0 Less than a year Blackberry LG Nokia Samsung 1 - 2 year 2 - 3 year HTC Micromax Others (Local / chinese handset) Sony Erricson above 3 year

Figure 6 Consumer durability

13 | P a g e

Interpretation
Out of the 160 respondents Nokia & LG users predominantly uses there handset for 1-2 years but strikingly a huge respondent are there who use it for more than 3 years in both cases. Samsung have almost the same repurchase in Less than a year & 1-2 years and people do not prefer using their handset for long period as noticed for Nokia. Blackberry & HTC users are almost same in every year category i.e. , unpredictable buying behavior

How often consumer change your mobile phone?

40% 35% 30% 25% 20% 15% 10% 5% 0% 1 - 2 years 2-3 years 3 - 4 years Depends on other factors

Less than a Year

Figure 7 Consumer- changes mobile phone

14 | P a g e

Interpretation
Out of the 160 respondents around 35 % consumers change their phone within 1-2 years and so on but there is other factors on which consumer change their phone which is about 30 % i.e., new technology , service facilities. Online support for gaming and applications availability

Repurchase intention for existing brand (Brand loyalty)

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Apple Samsung Nokia 0 Sony Micromax LG HTC 43 42 50 25 100 100

Repurchase Intentions

Not Interested

Figure 8 Consumer- Repurchase Intensions

Interpretation:
The graphical representation shows that there is high repurchase intentions among existing APPLE & HTC users rest followed by Micromax which is among every two users with 42 % & 43% respectively. 15 | P a g e one person have the affinity for repurchase, whereas market leaders like NOKIA & SAMSUNG are lagging

Likability among Smartphones users

HTC, 4.5

Micromax, 10

LG, 0.16 Sony, 0.03

Blackberry, 13.75

Nokia, 11.25

Apple, 23.75

Samsung, 31.25

Figure 9 Consumer- Likability for smartphones

Interpretation:
SAMSUNG still leads the smartphone segment with 31.25% followed by apple in consumers mind , space. Blackberry which first came up with the smartphone device is laaging very behind in the consumers perceptual

16 | P a g e

How much consumer (students) want to spend on mobile phone

Figure 10 Spendometer

Interpretation:
It is very much evident from above spendometer consumers are willing to pay around 10,000 20,000 on phones & there are also consumers who are very much price sensitive which are around 35 % who dont want to exceed 10,000 rupees. Pricing is very important criteria among students according to this sample

17 | P a g e

Preference over consumer

weight , breadth

& size of phone among

Figure 11 Consumer- preferences

Interpretation:
Preference among size ,weight & breadth of mobiles phone is a big factor for consideration while buying as its a portable device , here consumers prefer having midsized phone which should be light weighted and when comes people have a mix opinion over slim and thick breadth phones

18 | P a g e

What is the factor that influence the buyer most

Min Value Advertisement Appearance Price Functions Quality Brand Image Service Recommended by Friends Others 1 1 1 2 2 2 2 1 1

Max Value

Average Standard Responses Value Deviation 5 2.96 1.27 75 5 5 5 5 5 5 5 5 4.12 4.19 4.59 4.65 4.06 4.39 3.01 2.7 0.95 0.91 0.75 0.64 0.9 0.76 1.18 1.28 78 78 78 80 78 77 74 60

140% 120% 100% 80% 60% 40% 20% 0%

Figure 11 Buying influencers

19 | P a g e

Interpretation:
Out of the 160 respondents, consumers are mostly influenced by TV Advertisement & recommendation by friends, word of mouth. Other factors like Brand Image, Appearances, and Price are sensitive issue while influencing the buyers.

Effective Media in terms of communicating values

80 60 40 20 0 24 58

48 20 4

47

74

Figure 12 Message Media

Interpretation:
The most effective media for communicating message is Television and social networking sites for student segment, online shopping sites & newspaper also used for the same but is not so effective and rest of the media vehicle is big flop in communicating the message like radio, billboards, magazine and like. 20 | P a g e

4. FINDINGS
Samsung and apple is the most favorite brand of the college student. 39% student change their mobile phones within 1 to 2 years & 33 % changes within a year. 43% students are ready to pay for a mobile phone in the range of Rs. 10,000 to 20,000. This amount is proportional to their family income. Mostly students use the mobile phones for SMS, Android gaming & application, GPS navigation and to access social networking sites. Students prefer buying phones which provides free handsfree, Memory card and USB data cable. Almost all students are aware about the voice recognition, retina scrolling, air waves charging, etc. Most favorite brand among the college students is samsung and the least favorite brand is HTC. Appearance, Price, Brand Image, recommendation by friend and advertisement are the important factors for the students while purchasing mobile phones. Mostly students prefer slim, low/medium in weight and medium in size handset Mostly students see advertisement on television Mostly students prefer cellphones which supports WASSUP application. 21 | P a g e

5. RECOMMENDATIONS
Nokia should provide better service and try to solve the hanging Problem Samsung being one of the market leader in student segment should focus on customer retention since consumers repurchase intension for its envy, Apple is 100% as compared to Samsung. Company should focus on customer retention since loyalty among student segment is very low. They should focus on converting customer to more brand loyal by building a strong brand. Cellular companies should increase the awareness about the 3G4G & other advances internet connectivity services. Consumer preference for free accessories drives consumer buying behavior sentiments. Focus should persist on Android gaming and other advance next generation applications like play store. A new feature like waterproofing is becoming a fad amongst buyers after release of new Sony Xperia smart phone. Companies should offer more range of Rs. 20,000 - 5000 to cater student mass. All companies should adept to innovative technologies to add more features like voice recognition, retina scrolling, air waves charging, etc. Companies should focus on promotional activities through different media as consumers are more influenced by word of mouth only.

22 | P a g e

6. LIMITATIONS
A small sample size of 160 students is taken, so we cannot draw inferences about the population from this sample size. Time period is short and resource constraints. The scope of the project is limited to the city of Kolkata So, we cannot say that the same response will exist throughout India. This study is based on the prevailing students satisfaction. But the students satisfaction may change according to time, fashion, technology, development, etc.

7. BIBLIOGRAPHY
BOOKS: MARKETING MANAGEMENT RESEARCH METHODOLOGY Web Resources: www.trai.gov.in http ://www.nokia.com/t-aboutus-ttsl-organization. aspx http://www.samsung.co .in/webapp/Aboutus/aboutushome.js http ://www.LG.com/LG.portal? nfpb=true&pageLabel=LG Page AboutLG www.google.com
23 | P a g e

P. Kotler C.R.Kothari, Malhotra & Dash

8. ANNEXURE Questionnaire
Section A: Personal Information
1. Name: 2. (a) Age: (b) Gender

Male

Female

3. Occupation of Father

Service Professional Business Others

Specify 4. Income Level (per month)family income

Less than 15,000 15,001 25,000 25,001 35,000 35,001 & abov
Section B: About mobile phones
Which mobile phone you are using. Samsung Nokia Blackberry Apple LG Please write the model of your phone Sony Micromax HTC Others (Local / Chinese handset)

24 | P a g e

How long you are using the mobile phone Less than a year 1 - 2 year 2 - 3 year above 3 year

What are the reasons for using the above mentioned model (Can tick multiple boxes of the facilities you considered at the time of purchase) Just to Talk Receive Email & SMS Clicking Photographs& Videos Gaming (Android & Java games) Video calling GPS Navigation

Social Networking (FB, TWITTER, etc) Internet Browsing (GPRS& WAP) How often do you change your mobile phone Less than a Year 1 - 2 years 2-3 years

3 - 4 years Depends on other factors

What phone Accessories do you have (Can tick multiple boxes of the facilities you have) Hands free Card(SD) Other (Please specify) Latest Mobile facilities which you are aware of Retina Scan for scrolling Waterproof Voice recognition Motion sensor None of the above USB Data cable Bluetooth Headset Memory

Charging by air waves

What is your favorite brand in Mobiles? (Give our preference in numerical order for next purchase) This question has the forced ranking feature applied. If you apply the same ranking to a different row choice, the previous choice with that rank will be deselected. 1 Samsung Nokia Blackberry Apple LG Sony Micromax HTC 25 | P a g e 2 3 4 5 6 7 8

Why you like the brands you chose above? (Please indicate the important of below factors when you choose the brands. 5-very important, 4-somewhat important, 3-neither important nor unimportant, 2-less important, - 1 - unimportant.)
Advertisement Appearance Price Functions Quality Brand Image Service

Recommended by Friends Others

Weight Size

Do you prefer phones to be? Light Small Slim

Medium Medium Medium

Heavy Large Thick

Breadth

What would you be willing to pay for a mobile phone Less than 10,000 30,001 & Above Where did you often see the mobile advertisement? Television social networking sites Newspaper outdoor Magazine online shopping sites Radio Are there any general comments you would make about what you like/dislike about mobile phones? (This could be pricing, location of sales, reception, colour, memory, or anything else.) 10.001- 20,000 20.001- 30,000

26 | P a g e