Motorola

SUMMARY

THE COMPANY: MOTOROLA ELECTRONICS INDIA LTD.

RESEARCH OBJECTIVE: TO STUDY THE MOBILE MARKET CONDITION

IN CONTEXT TO POSITIN OF MOBILE SALES, BRANDS, PURCHASING FACTORS, FEATURES & AFTER SALE SERVICE OF VARIOUS BRANDS.A SURVEY OF 200 DEALERS ACROSS DELHI IN THE FORM OF QUESTIONNAIRE WAS DONE.

COMPETITORS: THE MAIN COMPETITORS OF MOTOROLA WITH

REFERENCE TO MOBILES ARE NOKIA, SAMSUNG, SONY ERICSSON, LG & PANASONIC ALONG WITH CERTAIN NEW ENTRANTS.

CONCLUSIONS: WERE DERIVED FROM RESULTS OF THE SURVEY.THERE ARE CERTAIN FACTS, WHICH ARE ARRIVED AT AFTER ANALYSING THE DATA.THE REPORT GIVES A DETAILED ACCOUNT OF SUCH FACTS.

RECOMMENDATIONS: OFFER SOME SUGGESTIONS THAT ARE BASED

ON THE SHORTCOMINGS OF THE COMPANY, WHICH THE COMPANY CAN LOOK UPON AT.

BIBLIOGRAPHY: PROVIDES A LIST OF SOURCES FROM WHERE THE

HISTORY OF CELLULAR TELEPHONY IN INDIA

Cellular Telephony

The technology that gives a person the power to communicate anytime, anywhere - has spawned an entire industry in mobile telecommunication. Mobile telephones have become an integral part of the growth, success and efficiency of any business / economy.

The most prevalent wireless standard in the world today, is GSM. The GSM Association (Global System for Mobile Communications) was instituted in 1987 to promote and expedite the adoption, development and deployment and evolution of the GSM standard for digital wireless communications.

The GSM Association was formed as a result of a European Community agreement on the need to adopt common standards suitable for cross border European mobile communications. Starting off primarily as a European standard, the Group Special Mobile as it was then called, soon came to represent the Global System for Mobile Communications as it achieved the status of a world-wide standard. GSM is today, the world's leading digital standard accounting for 68.5% of the global digital wireless market.

The Indian Government when considering the introduction of cellular services into the country, made a landmark decision to introduce the GSM standard, leapfrogging obsolescent technologies / standards.

Although cellular licenses were made technology neutral in September 2005, all the private operators are presently offering only GSM based mobile services. The new licensees for the 4th cellular licenses that were awarded in July 2001 too, have opted for GSM technology to offer their mobile services.

Cellular Industry in India

social development of the country. It is critical not only for the development of the Information Technology industry, but also has widespread ramifications on the entire economy of the country. It is also anticipated that going forward, a major part of the GDP of the country would be contributed by this sector. Accordingly, it is of vital importance to the country that there be a comprehensive and forward looking telecommunications policy which creates an enabling framework for development of this industry.

New Telecom Policy 2005

Telecommunications is now universally recognized as one of the prime movers of the modern economy; hence it's vital importance for a developing country like India. The availability of adequate infrastructure facilities is critical for acceleration of the economic development of any country. In fact international studies have established that for every 1% increase in tele-density, there is a 3% increase in the growth of GDP.

Accordingly, the Government of India has accorded the highest priority to investment and development of the telecommunications sector.

Telecom requires very heavy investment and it was not possible for the Indian Government to organize public funding of this sector on such a massive scale. In fact the national telecom Policy 1994, estimated a resource gap of Rs. 23,000 crores to meet the telecom targets of the eighth five-year plan of the Government of India (1992-97).

It was for this reason to bridge the resource gap between government funding and the total projected funds requirement and to provide the additional resources to achieve the nation's telecom targets that the telecommunications sector was

liberalized in 1992 and the Government invited private sector participation in telecommunications.

Cellular mobile services were one of the first areas to be opened up to private competition. The whole country was divided into the 4 metropolitan cities of and 19 telecom circles, which were roughly analogous with the States of India.

Cellular Licenses were awarded to the private sector - first in the metropolitan cities of Delhi, Mumbai, Kolkata and Chennai in 1994 and then in the 19-telecom circles in 1995.

HISTORY OF MOTOROLA

Motorola started as Galvin Manufacturing Corporation in 1928. The name Motorola was adopted in 1947, but the word had been used as a trademark since the 1930s. Founder Paul Galvin came up with the name Motorola when his company started manufacturing car radios. A number of early companies making phonographs, radios, and other audio equipment in the early 20th century used the suffix "-ola," the most famous being Victrola; RCA made a "radiola"; there was also a company that made jukeboxes called Rock-Ola, and a film editing device called a Moviola. The Motorola prefix "motor-" was chosen because the company's initial focus was in automotive electronics.

Most of Motorola's products have been radio-related, starting with a battery eliminator for radios, through the first walkie-talkie in the world, defense

electronics, cellular infrastructure equipment, and mobile phone manufacturing. The company was also strong in semiconductor technology, including integrated circuits used in computers. Motorola has been the main supplier for the microprocessors used in Commodore Amiga, Apple Macintosh and Power Macintosh personal computers. The chip used in the latter computers, the PowerPC family, was

developed with IBM and in a partnership with Apple (known as the AIM alliance). Motorola also has a diverse line of communication products, including satellite systems, digital cable boxes and modems.

On October 6, 2003, Motorola announced that it would spin off its semiconductor product sector into a separate company called Freescale Semiconductor, Inc.. The new company began trading on the New York Stock Exchange on July 16th of the following year.

See also: List of Motorola products (including Freescale's semiconductors) The Six Sigma quality system was developed at Motorola even though it became best known through its use by General Electric. It was created by engineer Bill Smith, under the direction of Bob Galvin (son of founder Paul Galvin) when he was

running the company. Motorola University is one of many places that provides Six Sigma training.

Recently, a massive turnaround plan has been executed successfully by CEO

Edward Zander, although many credit former CEO Chris Galvin with taking the first comprehensive steps. Due to recent layoffs and the spinoff of Freescale

Semiconductor, the number of employees working for Motorola has gone from just over 150,000 to approximately 66,000. Motorola has recently been regaining market share in the cellular-phone business from Nokia, Samsung and others due to stylish new cellular phone designs like the Motorola RAZR V3. The company also unveiled the first ever iTunes phone, the Motorola ROKR E1, in September 2005, and the Motorola SLVR in January 2006. Motorola has recently announced its new iRadio music service as a potential substitute for iTunes compatibility.

Motorola sold its Automotive division to Continental in April 2006 and is proceeding with a policy of streamlining its cell phone business, with regard to taking over the number one spot from Nokia.

BUSINESS SUMMARY

Motorola, Inc. engages in the design, manufacture, marketing, and sale of mobility products worldwide. It operates in four segments: Mobile Devices, Government and Enterprise Mobility Solutions, Networks, and Connected Home Solutions. The Mobile Devices segment offers wireless handsets with related software and

accessory products. This segment develops its products using GSM, CDMA, iDEN and 3G technologies. The Government and Enterprise Mobility Solutions segment provides wireless communications systems for government and public safety markets; business wireless devices, networks, and applications for enterprise

organizations; and electronics and telematics systems for automobile manufacturers. The Networks segment provides cellular infrastructure systems; fiber-to-the-premise and fiber-to-the-node transmission systems; wireless broadband systems; and

embedded communications computing platforms. This segment also offers cellular networks, including radio base stations, base site controllers, associated software and services, mobility soft switching, application platforms and third-party switching for CDMA, GSM, iDEN, and UMTS technologies. In addition, it provides optical line terminals and optical network terminals for passive optical networks; access points, subscriber modules, and backhaul modules for wireless broadband systems; and advanced TCA and micro TCA communications servers. The Connected Home Solutions segment offers various broadband products, high speed data products, hybrid fiber coaxial network transmission systems, digital satellite program distribution systems, direct-to-home satellite networks and private networks for business communications, and video communication products. The company offers its products through direct sale, distributors, dealers, and retailers. Motorola was founded in 1928 and is headquartered in Schaumburg, Illinois

STATEMENT OF OBJECTIVES

The Primary Objective was to study the dealer perception & buying behavior of customers towards various mobile brands with special reference to “MOTOROLA ”. The Secondary Objectives of this study were to

identify:-• Various Sources from which mobiles are purchased.

• Factors that influence decision making in purchasing a mobile phone.

• Major features which a customer looks for in a mobile before making a purchase.

• Brand awareness of MOTOROLA mobile phones in the market.

• Efficiency of after sale service of various brands.

RESEARCH METHODOLOGY

:- Visited the dealers across Delhi & gathered information required as per the questionnaire.

 For employing a strong base to the research I tried to enquire the positions of various Mobile brands & how satisfied the dealers were with them if they were already selling them.

 Final ranks were obtained by giving weightage to individual ranks possessed by the dealers to make the research more reliable.

2. 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 objective.

• Secondary data sources like catalogue of the company, product range book of the company & various internet sites such as Motorola ezbuy.com & google.com have been used.

3. SAMPLING TECHNIQUE:

• For the purpose of the survey a sample size of 200 dealers was taken. The extent of this survey was limited to the city of New Delhi only.

4. AREA OF STUDY:

• The study was conducted in South Delhi Market in the following areas. ▪ Lajpat Nagar ▪ Safdarjung

▪ Defence Colony ▪ Green Park ▪ South Extension ▪ Hauz Khaz

▪ Amar Colony ▪ Yusuf Sarai

▪ East of Kailash ▪ Gulmohar Park

▪ Greater Kailash ▪ Panchsheel

▪ Kailash Colony ▪ Malva Nagar

▪ Nehru Place ▪ Shivalik

▪ Kalkaji ▪ Saket

▪ CR Park ▪ Vasant Kunj

▪ Alaknanda ▪ Vasant Vihar

▪ Govindpuri ▪ Moti Bagh

▪ New Friends Colony ▪ Nanakpura

▪ Maharani Bagh ▪ Khanpur

▪ Ashram ▪ Sheikh Sarai

▪ Jangpura ▪ Madangir

▪ Bhogal ▪ Tughlakabad

▪ Chanakyapuri ▪ Sarita Vihar

▪ Bhikaji Cama Place ▪ Mahipalpur

INDUSTRY PROFILE

In the early 1990s, the Indian government adopted a new economic policy aimed at improving India's competitiveness in the global markets and the rapid growth of exports. Key to achieving these goals was a world-class telecom infrastructure. In India, the telecom service areas are divided into four metros (New Delhi, Mumbai, Chennai and Kolkatta) and 20 circles, which roughly correspond to the states in India. The circles are further classified under "A," "B" and "C," with the "A" circle being the most attractive and "C" being the least attractive. The regulatory body at that time — the Department of Telecommunications (DOT) — allocated two cellular licenses for each metro and circle. Thirty-four licenses for GSM900 cellular services were auctioned to 22 firms in 1995. The first cellular service was provided by, Modi Telstra in Kolkatta in August 1995. For the auction, it was stipulated that no firm can win in more than one metro, three circles or both. The circles of Jammu and Kashmir and Andaman and Nicobar had no bidders, while West Bengal and Assam had only one bidder each.

In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the Lok Sabha, and the president officially announced the TRAI ordinance on 25 January 2003. The government decided to set up TRAI to separate regulatory functions from policy formulation, licensing and telecom operations. Prior to the creation of TRAI, these functions were the sole responsibility of the DOT.

High license fees and excessive bids for the cellular licenses put tremendous financial burden on the operators, diverting funds away from network development and enhancements. As a result, by 2005 many operators failed to pay their license fees and were in danger of having their licenses withdrawn. In March 2005, a new telecom policy was put in place (New Telecom Policy 2005). Under this new policy, the old fixed-licensing regime was to be replaced by a revenue-sharing scheme whereby between 8-12 percent of cellular revenue were to be paid to the government.

COMPANY PROFILE

MOTOROLA Electronics a wholly owned subsidiary of MOTOROLA Electronics, was established in January, 2003 after clearance from the Foreign Investment Promotion Board (FIPB). The trend of beating industry norms started with the fastest ever-nationwide launch by MOTOROLA in a period of 4 and ýý months with the commencement of operations in May 2003. MOTOROLA set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 2004, with an investment of Rs 500 Crores. During the year 2001, MOTOROLA also commenced the home production for its eco-friendly Refrigerators and established its assembly line for its PC Monitors at its Greater Noida manufacturing unit.

The Greater Noida manufacturing unit line has been designed with the latest technologies at par with international standards at Korea and is one of the most Eco-friendly units amongst all MOTOROLA manufacturing plants in the world.

The year 2001 witnessed MOTOROLA becoming the fastest growing company in the consumer electronics, home appliances and computer peripherals industry. The company had till the month of October 2001 achieved a cumulative turnover of Rs 5000 Crores in India since its inception in 2003 , making it the fastest ever Rs 5000 Crores clocked by any company in the Indian consumer electronics and home appliances industry. Having achieved this milestone, MOTOROLA achieved another benchmark with the first ever sales of One Lakh ACs (Windows and Splits) in a calendar year. MOTOROLA is poised to surpass its turnover target of Rs. 2700 Crores this year and clock a turnover of Rs. 3000 Crores.

This year, MOTOROLA has emerged as the leader in Colour Televisions, Semi Automatic Washing Machines, Air Conditioners, Frost-Free Refrigerators and Microwaves Ovens. In Colour Televisions having set the sales target of one million units of Color Televisions for 2002, MOTOROLA has already achieved the one million mark in the month ahead of its target.

MOTOROLA Electronics India is the fastest growing company in the consumer electronics, home appliances and computer peripherals industry today. MOTOROLA Electronics is continually providing superior technology products & value for money to over 50 lakh households in India.

Mr. K.R. Kim, Managing Director, MOTOROLA Electronics said, "I am extremely pleased with our performance in 2001 as we have been able to sustain growth during a year of slowdown in the consumer electronics and home appliances industry." He added, "Our growth record has led us to expand manufacturing presence in India. We have accordingly reinforced our sales and distribution network through the concept of area offices to reach out more Indian consumers in semi urban and rural India. "

SALES & MARKET SHARE:

Market Share Market Ranking CTVs 27% No. 3 FF Ref 19% No.2 (No1 in 300Ltr) DC Ref 9% No 5 Air Conditioners 26% No 1 Fully-Automatic

Washing machines 11% No1 Semi-Automatic

Washing machines 23% No 1 in 6 kg and above Microwave Ovens 32% No1

COLOUR TELEVISIONS:

MOTOROLA Electronics has targeted to become India’s single largest value CTV brand in India in the year 2002. Having achieved a milestone of selling 6.5 lakh

CTV units in the year 2001, MOTOROLA has chalked out a strategy to achieve this vision of becoming the single largest CTV brand in 2002,. It is targeting to sell 8.5 lakh CTV Units in the current year, thereby increasing its market share from 12% in 2001 to 15% in 2002.

AIR CONDITIONERS

MOTOROLA Electronics has achieved a record sale of 1,00,000 Air Conditioners (Windows and Splits) in the year 2001. This is first ever one lakh mark in a calendar year in the Air conditioner (Windows and Splits) category in the Indian home appliances industry. The company is also looking at 2002 very ambitiously with target sales of 1.5 lakh units this year. MOTOROLA also trying to increase its market share from the current 26% in 2001 to 31% in 2002.

According to the stages of the product life cycle, MOTOROLA is in the growth stage considering the company’s success over the past 3 years. Marketing objectives and strategies for the introductory and the growth stage are summarized.

Introduction Growth Marketing

objectives

To offer technological superior products in the market

Preparing for “Digitally yours” image for the now millennium

Strategies

Product Offering about in total 23 products to the premium end of the market

Launching digitally superior products for all its product ranges

Price Initially prices high to cater the premium end

Catering to the mass market via its diverse prized

Distribution Selective Intensive

Promotion Heavy advertising to create awareness about its products

More into corporate advertising i.e. promotion the brand

INCOME STATEMENT

View: Annual Data | Quarterly Data All numbers in thousands

PERIOD ENDING 31-Dec-05 31-Dec-04 31-Dec-03

Total Revenue 36,843,000 31,323,000 27,058,000

Cost of Revenue 25,066,000 20,826,000 18,101,000

Gross Profit 11,777,000 10,497,000 8,957,000

Operating Expenses

Research Development 3,680,000 3,060,000 3,771,000 Selling General and Administrative 3,859,000 4,320,000 4,073,000

Others - - (57,000)

Total Operating Expenses - - 7,873,000

Operating Income or Loss 4,696,000 3,132,000 1,084,000

Income from Continuing Operations

Total Other Income/Expenses Net 2,149,000 319,000 856,000 Earnings Before Interest And Taxes 6,845,000 3,451,000 1,940,000

Interest Expense 325,000 199,000 647,000

Income Before Tax 6,520,000 3,252,000 1,293,000 Income Tax Expense 1,921,000 1,061,000 400,000

Minority Interest - - -

Net Income From Continuing Ops 4,599,000 2,191,000 893,000 Non-recurring Events

Discontinued Operations (21,000) (659,000) -

Extraordinary Items - - -

Effect Of Accounting Changes - - -

Other Items - - -

Net Income 4,578,000 1,532,000 893,000

Preferred Stock And Other Adjustments - - -

Net Income Applicable To Common

BALANCE SHEET

Short Term Investments 11,011,000 152,000 139,000

Net Receivables 9,768,000 6,033,000 6,114,000

Inventory 2,522,000 2,546,000 2,792,000

Other Current Assets 794,000 1,795,000 985,000

17,907,000 Total Current Assets

Long Term

Investments27,869,000 21,082,000 1,736,000 3,331,000 3,746,000

Property Plant and Equipment 2,271,000 2,332,000 5,164,000

Goodwill 1,349,000 1,283,000 1,416,000

Intangible Assets 704,000 212,000 184,000

Accumulated Amortization - - -

Other Assets 475,000 296,000 332,000

Deferred Long Term Asset Charges 1,245,000 2,353,000 3,349,000

32,098,000 Total Assets 35,649,000 30,889,000 Liabilities Current Liabilities 9,856,000 8,537,000 Acco unts Paya

ble11 ,653, 000

Other Current Liabilities 387,000 - -

9,433,000 Total Current Liabilities

Long Term Debt12,488,000 10,573,000 3,806,000 4,578,000 7,161,000

Other Liabilities 2,682,000 2,407,000 2,815,000

Deferred Long Term Liability Charges - - -

Minority Interest - - -

Negative Goodwill - - -

19,409,000 Total Liabilities

18,976,000 17,558,000

Stockholders' Equity

- Misc Stocks Options Warrants

Redeemable Preferred Stock- - - - -

Preferred Stock - - -

Common Stock 7,508,000 7,343,000 7,017,000

Retained Earnings 5,897,000 1,722,000 3,103,000

Treasury Stock - - -

Capital Surplus 4,691,000 4,321,000 2,362,000

Other Stockholder Equity (1,423,000) (55,000) 207,000

12,689,000 Total Stockholder Equity

16,673,000 13,331,000

$11,089,000 Net Tangible Assets

MOTOROLA GSM HANDSET PROFILE

SMS (SHORT MESSAGING SERVICE) VOICE DIALING

BLUE COLOR DISPLAY 3 GAMES

GPRS (GENERAL PACKET RADIO

WAP ( WIRELESS APPLICATION PROTOCOL) POLYPHONIC RINGTONES VOICE DIALING 65000 COLOR LCD POLYPHONIC RINGTONE

MMS (MULTIMIDIA MESSAGING SERVICE) LMS (LONG MESSAGING SERVICE)

STYLISH DESIGN VOICE DIAL

MELODY COMPOSER CONFERENCE CALLS

EMBEDDED JAVA TECH., GPRS CLASS 10,WAP 1.2.1 ENABLED

EXTERNAL CAPSULE DISPLAY 65000 COLOR LCD DISPLAY POLYPHONIC RINGTONES

MMS (MULTIMIDIA MESSAGING SERVICE) MULTI PARITY CALL FACILITY

GPRS (GENERAL PACKET RADIO SERVICE) WAP (WIRELESS APPLICATION PROTOCOL) EMBEDDED JAVA

IRDA (INFRARED DATA ASSOCIATION) VOICE DIAL

65000 COLOR LCD DISPLAY POLYPHONIC RINGTONES

MMS (MULTIMEDIA MESSAGING SERVICE) GPRS (GENERAL PACKET RADIO SERVICE) WAP (WIRELESS APPLICATION PROTOCOL) IR IRDA IRDA (INFRARED DATA

ASSOCIATION)

65000 COLOR LCD DISPLAY POLYPHONIC RINGTONES

MMS (MULTIMEDIA MESSAGING SERVICE) GPRS (GENERAL PACKET RADIO SERVICE) WAP (WIRELESS APPLICATION PROTOCOL) IR IRDA (INFRARED DATA ASSOCIATION) SWIVEL CLAMSHELL(270 DEGREES)

SLIDE MOUNTED VGA CAMERA WITH WITH IN BUILT FLASH

LIMITATIONS

• A small sample size of 200 dealers was considered due to time & resource constraints.

• The scope of the project is limited to the city of Delhi only. So we cannot say that the same response will exist throughout India.

• Some of the dealers were not co-operative in giving correct information even if they were selling various mobile brands.

DATA ANALYSIS AND

INTERPRETATION

SOURCES FROM WHICH MATERIAL IS PURCHASED

Most of the dealers who were surveyed said that they preferred to purchase their material from a distributor. Distribution of products constitutes an important element of marketing –mix of a firm. After development of a product, the marketing manager has to decide channels or routes through which the product will flow.

In my survey I found that almost 85% of the dealers purchased their material from local distributors and only 15% of them purchased from the company.

In the Telecom Industry there are usually National & City distributors. a three tier system is followed whereby:

Tier 1 – Company - - - National Distributor

Tier 2 - National distributor --- Local Distributor Tier 3 – Local Distributor --- Dealer

In case of MOTOROLA the Company has been following a very systematic channel approach whereby only the first two Tiers are involved.i.e

Tier 1 – Company --- National Distributor

Tier 2 – National Distributor --- Local Distributor

MOTOROLA’s billing of goods are directly billed to the Local Distributor which not only helps in better interaction with them but also gives the company a more Microscopic focus of all the happenings along with the Accountability of goods sold. The company through this practice of its is not only able to increase its revenue but is also able to increase its margins better.

MAJOR BRANDS THAT ARE DEALT BY DEALERS

Most of the dealers who were surveyed had almost all the Brands of Mobile Handsets with them and the final analysis upon which I arrived at was that Nokia is the No.1 selling Handset in South Delhi followed by Samsung, Motorola and Sony Ericsson.

Nokia no doubt has carved a niche for itself over the past 4-5 years with its superior technology and its loyalty towards the Indian customer which certainly makes it the most superior brand. The biggest advantage that has worked in Nokia’s favour is its marketing strategy, which focuses more on their state of the art Handsets. They were the first company to come with a mobile with an in-built camera in it and they surely knew how to sell their product. Today almost all mobile companies have followed suit and come out with their own in-built camera mobiles.

Nokia is certainly a value for money mobile as more than 90% of the dealers interviewed agreed on this statement, not only is the after sale service excellent but also the quality and pricing of products is excellent. In such a scenario not only the existing companies but also the new entrants such as MOTOROLA ,BenQ,Alcatel etc will have to justify their launch in the long run.

RANKING ATTRIBUTES IN A MOBILE

BRAND NAME AFTER SALE SERVICE

FEATURES

THE GRAPH ABOVE DEPICTS THAT THE FIRST RANK HAS BEEN OBTAINED BY BRAND NAME WHICH GOES ON TO PROVE THAT MANY PEOPLE IN SOUTH DELHI ARE ‘BRAND CONSCIOUS’, WHICH IS FOLLOWED BY A CONSIDERABLE PERCENTAGE OF PEOPLE WHO ARE ‘PRICE CONSCIOUS’ WHILE PURCHASING A MOBILE PHONE.

MAJOR FEATURES THAT A CUSTOMER LOOKS

FOR IN A MOBILE

The Market is flooded with all sorts of mobile brands, each trying to showcase and push forward its own particular brand with umpteen number of features. The customer these days is quite educated and knows about the products quite well and therefore likes to keep himself abreast with the latest technology available in the market, suiting his pocket need and requirement. Mobile these days are being added with new features every second day to lure the customer, and it is due to these very features only that becomes the purchasing factor for the customer. Some of the most common features that a customer demands these days are:

1.Color Screen – Color Screen phones are the latest and the most wanted trend in the market these days as these phones boast of a High Color Resolution Display so that the customer can enjoy in his/her phone an exhilarating melange of colors. Most of the color phones boast of 65000 color display which makes not only the resolution but also the picture quality treat to the eyes. Color screen phones are in major demand by the public which accounts for at least 50% in the survey conducted.

2.MMS(Multimedia Messaging Service)- With MMS,it is not only possible to send your multimedia messages from one phone to another, but also from phone to e-mail, and vice versa. This feature dramatically increases the possibilities of mobile communication, both for private and corporate use.

3.Integrated Camera – The latest in-thing, mobile phones with in-built camera. These phones serve the twin service of mobile and a camera. One can not only click but also store photos and even send it to their near and dear ones. Camera phones accounted for at least 10% respondents in the survey conducted.

4.Tri-Band – A tri-band facility is useful for people who are constantly going abroad as a tri-band enabled handset let’s one access the network of another country also and also keeps you connected with people back home.

5.Size/Weight – These days mobile handsets come in various shapes and sizes with different weights. The needs and requirements of a customer differ fro person to person as some like bigger sets with minimum weight whereas there are some who prefer lighter sets with lighter weights.

6.Talk/Stand by Time – Customers do pay a lot of attention on talk/stand by time as they want a mobile which can last the longest. Companies often promise of talktime of 4-6 hrs on various handsets, but ultimately it’s the customer who has to decide and make the best choice for himself.

7.WAP(Wireless Application Protocol) – WAP let’s one access the Internet-based services supported by your network, such as news, weather reports and flight timings etc,even when you are mobile.

8.Battery – Every customer wants his/her battery to last the longest and all mobile companies fight out promising that their battery backup is the best. A mobile functions on a battery and a cheap and sub-standard battery always makes the customer vary of the companies products and services.

9.Polyphonic Ring Tones – A polyphonic ring tone is the next generation of ringtones that has better sound quality than traditional monotone ringtones.Polyphonic ring tones sound great and truly make your phone unique. Polyphonic ring tones phones are in major demand by the customers and accounted to nearly 20% respondents according to the survey conducted.

IT IS QUITE CLEAR FROM THE ABOVE GRAPH THAT NOKIA HAS THE LARGEST MARKET SHARE IN SOUTH DELHI AT 65%,FOLLOWED BY SAMSUNG AT 15%,MOTOROLA AT 10%,SONY ERICSSON AT 5%, MOTOROLA AT 1% AND OTHERS (PANASONIC, BIRD, ALCATEL, BENQ, KYOCERA ) ETC AT 4%.

MARKET SIZE OF NUMBER OF HANDSETS SOLD 0 10 20 30 40 50 60 70 1 BRANDS M A R K E T S IZ E

FACTORS WHICH HELP IN INCREASING SALES 0 20 40 60 P E R C E N T A G E _POP DUMMIES GLOWSIGN DISPLAY STANDS

AFTER SALE SERVICE OF MOBILE BRANDS

0 20 40 60 80 100 120

NOKIA SAMSUNG SONY

ERICSSON LG MOTOROLA PANASONIC PE R C EN TA G E

EXCELLENT GOOD BAD

FROM THE DATA ABOVE IT CAN BE CLEARLY OBSERVED THAT NOKIA LEADS THE PATH AS FAR AS AFTER SALES SERVICE IS CONCERNED FOLLOWE CLOSELY BY SAMSUNG AND MOTOROLA.

TIME AND AGAIN COMPANIES HAVE REALISE THAT THEIR SERVICE COULD PROVIDE THE IMPETUS TOWARDS RETAINING CUSTOMER LOYALTY,GENERATING POSITIVE WORD OF MOUTH AND PROVIDING VALUABLE INFORMATION TO SUPPORT PRODUCT DEVELOPMENT AND QUALITY ASSURANCE.

PROFIT FROM SERVICE=

+(long term profits from loyal customer) +(word-of-mouth)

+(regulatory cost or preventive service cost avoided) +(cost of handling)

EFFECT OF GREY MARKET 0 20 40 60 80 100 120 YES NO AWARNESS P E R C E N T A G E O F R E S P O N D E N T S Series1

MOST OF THE DEALERS AGREED ON THE FACT THAT POP’S PLAYED A MAJOR ROLE IN INCREASING THE SALE OF THEIR PRODUCT FOLLOWED BY DUMMIES,GLOWSIGN AND DISPLAY STANDS.

POP’S NOT ONLY MAKES THE CUSTOMER GET TO KNOW MORE ABOUT THE PRODUCT BUT ALSO EXPLAINS BASIC FEATURES ABOUT THAT PRODUCT.

DUMMIES ARE ALMOST A DUPLICATE OF THE ORIGINAL MODEL I.E THEY RESEMBLE THE SAME MODEL BUT DO NOT FUNCTION WHICH HELPS A CUSTOMER GET A FEEL OF THE IDENTICAL MODEL.G LOWSIGNS HELP IN ATTRACTING THE ATTENTION OF THE PEOPLE TO QUITE AN EXTENT AS THE GLOWSIGN NOT ONLY REFLECTS THE NAME OF THE COMPANY BUT ALSO ITS PRODUCT RANGE.

DISPLAY STANDS ARE USED BY DEALERS TO SHOWCASE THE VARIED SET OF THE RANGE OF MOBILES POSSESSED BY THEM AND ATTRACT CUSTOMER ATTENTION.

LEGAL AND GREY MARKET STANDINGS SINCE 2002-TILL DATE.1 ST

Aw areness about Motorola m obile phones 0 20 40 60 80 100 120 YES NO Aw areness P er ce n ta g e o f re sp o n d en ts Series1

ALMOST 100% DEALERS AGREED TO THE FACT THAT THEY ARE NOT AFRAID OF THE GREY MARKET SCENARIO WHICH USED TO HAMPER THEIR BUSINESS A FEW YEARS AGO.FOR THE PAST COUPLE OF YEARS, COMPANIES HAVE BEEN RAPIDLY REDUCING THE PRICE OF MOBILE SETS.AND GREY MARKET CUSTOMERS ARE MOVING TO COMPANY AUTHORISED SHOWROOMS.THE RECENT ANNOUNCE MENT BY THE FINANCE MINISTER ON EXCISE AND CUSTOM DUTY CUTS HAVE PUSHED THIS TREND FURTHER.

THE INCENTIVE TO BUY SOMETHING FROM A REGULAR SHOWROOM IS HIGHER NOW THAN EVER BEFORE.COMPANIES AND SOMETIMES DEALERS ON THEIR OWN,OFFER ATTRACTIVE SCHEMES LIKE ZERO PERCENT FINANCE SPREAD OVER 12-24 MONTHS,BUYBACK OPTIONS ON OLD GOODS AND THEFT INSURANCE ON MOBILE HANDSETS,BESIDES THE USUAL GUARANTEE AND WARANTEE.

ALMOST 100% DEALERS AGREED TO THE FACT THAT THEY HAD HEARD OF MOTOROLA MOBILE PHONES, IRRESPECTIVE OF THE FACT WHETHER THEY DEALT IN THEM OR NOT.

RANKS OBTAINED TO MAKE MOTOROLA MOBILE A SUCCESS

POP AVAILABILITY DUMMIES STOCK AVAILABILITY AGGRESSIVE PRICING QUALITY PRODUCTS SCHEMES SERVICE

FINDINGS

 Nokia, Samsung, Motorola and Sony Ericsson are the favourite as brands among the dealers in South Delhi Market, closely followed by MOTOROLA, Panasonic, Bird, BenQ and Alcatel.

 The average monthly sales of mobile phones was around 300-350 handsets.  The brand awareness of MOTOROLA mobile phones seems to be almost 100%.  The general opinion about MOTOROLA mobile phones is that it is either Good

or Satisfactory.

 The Market Leader Nokia appeared to hold 65 percent market share followed by Samsung (15 percent),Motorola (10 percent),Sony Ericsson (5 percent) and MOTOROLA (1 percent).

 Brand name and Brand Recommendation seem to be the major influence in the purchase decision of a mobile phone.

 Color Screen, Polyphonic Ring Tones and Integrated Camera seem to be the favorites among the customers.

REFLECTIONS

STRENGTH:

-1. A well established brand name helps in promoting a new range of products. MOTOROLA is a Multinational Company based in South Korea, which is considered to be a technically advanced country with advanced products to meet the requirement of target customers internationally.

2.The company has a wide range of products to suite the purse & the taste of various segments of customers.

3.The company has a huge advertisement budget which helps in brand positioning & recall.

4.It has a well established sales network of more than 4000 dealers & branch offices around the globe & the company makes such of its products available as are in demand in each particular area.

WEAKNESS:

-1. The company needs to evolve a comprehensive plan & strategy to make inroads into a part of middle class & upper middle class.

2. Lack of production centers in India makes the product costlier as most of the parts have to be imported.

3. Lack of R & D centers also makes it difficult to launch new products over here.

OPPORTUNITIES:

-1. The present rate of growth of the Entertainment & Telecommunication Industry & a large potential available in these areas provides excellent opportunity for the company to widen its market.

2. With the fast growing economy the pricing strategy needs to be tackled with care as it can decide upon long term decisions of the company.

3. Globalization is yet another opportunity, if failed effectively & promptly.

THREATS: -

It is natural that threats from the existing as well as new entrants will effect the present turnover & Market share. The nearest competitors having the identical product range are the greatest threat to the company.

Introduction

Marketing involves finding out what your customers want and then meeting their requirements. To satisfy its customers, a business must create a successful mix of:

• the right product or service • sold in the right place

• at the right priceusing the most effective forms of promotion. This is sometimes referred to as the 4Ps:

This Case Study shows how Motorola has created an effective marketing mix for its mobile phones in a highly competitive market place.

Motorola began life as The Galvin Manufacturing Corporation in Chicago in 1928. Its first product was a battery eliminator, enabling radios to operate from mains electricity rather than expensive batteries. In the 1930s it produced car radios using the brand name 'Motorola'. The company later adopted Motorola as its name. The company is now known around the world for innovation and leadership in wireless and broadband communications. Motorola's vision is of Seamless Mobility, which the company defines as helping users get and stay connected easily to the people, information, and entertainment that they want and need. The company does this by designing and delivering "must have" products, "must do" experiences and powerful networks.

users can:

• share music files between the user's PC and their phone • play that music easily on stereo BluetoothTM headphones

• in the car - as well as being able to use the phone with a hands-free car kit, play music through the car stereo

CREATING THE RIGHT MARKETING MIX

Product

The first element in the marketing mix is the product itself. If you create products that customers want, the other parts of the mix can be designed to meet customer needs.

Motorola is a global leader in wireless and broadband communications technologies and related electronic products. It has significant operations in the UK employing approximately 2,400 people.

Motorola's principal businesses are:

Mobile phones are among the most familiar products to consumers and the mobile phone is seen by many as an essential item. It can perform a number of functions, including being:

• an essential means of communication • a fashion statement

• a source of entertainment such as music and video games • a safety precaution (e.g. to tell people where you are).

The mobile phone market has risen dramatically in size. In April 2005, the market research company Mintel produced figures which showed that 80% of the youth

market in the UK has a mobile phone, and that over 61 million people subscribed to an airtime contract. The market is a very competitive one with a range of companies competing to provide mobile phone services.

With a 3G or WAP-enabled phone, customers can browse special Internet sites, which means they can look at football scores, search cinema movie times, or live-chat with friends. Motorola has partners such as MTV, with high quality sites providing diverse and entertaining content. 3G (third generation) phones offer much more effective access to music and video downloads, because the networks they work on provide faster connections for downloading content than previous generations of phones.

Text, Picture and Video messaging is phenomenally popular and is likely to become more so. Motorola mobile phones are increasingly being used to capture and share experiences, in addition to making arrangements, tell jokes, and flirt without the personal nature of a face-to-face or voice-to-voice contact.

In creating products, Motorola concentrates on: • attractive design

• excellent call-quality • ease of use

• value-added features including music player, games, camera, and video features

• high quality, reliable products.

In order to remain competitive, the company continually seeks to innovate - for example by building phones that are slim and well designed. This is particularly important for one group or segment of the mobile market. An example of this is the Motorola RAZR phone.

The Motorola RAZR V3i is the thinnest clam-shell phone currently available (as at January 2006), just 13.9mm thin. The casing is made from aircraftgrade alloy, and

the outer screen from glass, as no conventional plastic materials were strong enough. It has a built-in camera with 4X zoom and quick exposure controls. This also lets you watch and record video clips in full colour. You can also enjoy your favourite ring tones, music clips and games with a state-of-the-art polyphonic speaker sound and an integrated 3D graphics engine.

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Price

Price is the one element of the marketing mix which creates sales revenue - all the others are costs. For companies like Motorola, price is a key element in the

building relationships with customers.

As with other companies, prices charged by Motorola are linked to the product life cycle. When a new product is launched prices will typically be quite high. This is because a lot of product and market research has gone into producing the product. It usually takes time for large numbers of consumers to purchase new products. For example, 3G phones are only just beginning to sell in large quantities. As a product matures and sales increase, it is possible to reduce costs.

Economies of scale are important. These come in when a firm is able to produce on a large scale. With high outputs of production, costs of research and development, software engineering and investment in plant (manufacturing machinery and tooling) can be spread. State-of-the art products are sold at premium prices reflecting the high quality of the items and their innovative nature.

The costs to the users of Motorola mobile phones are kept down because they are subsidised by the network providers such as Vodafone. Network providers want as many people as possible to subscribe to their network. They therefore like to link with the producers of the best designed phones which feature the most exciting and effective technologies.

Phone retailers will often supply free accessories with a mobile phone to make it more useful to phone users and to encourage them to buy.

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Place

Though figures vary widely from product to product, roughly a fifth of the

production cost of an item goes on getting it to the customer. The term 'place' deals with various methods of transporting and storing goods and then making them available to the customer.

Getting the right product to the right place at the right time involves the distribution system. Distribution is the process of moving goods and services to the places where they are wanted.

If you want to buy a Motorola mobile phone there are a number of distribution channels that you can use.

Many people like to buy phones from independent retailers such as Carphone Warehouse. These can offer advice about a variety of different phones and suggest the one best suited to your needs. A second source is a retail outlet belonging to a network provider such as Vodafone.

Nowadays, increasing numbers of people buy through the Internet. This is an example of e-commerce. The great thing about buying online is that you can spend as long as you like and examine a lot of information. You can buy a Motorola phone from the Motorola website. It will tell you about different models of phones, their prices and features etc. An advantage of buying online is that prices are typically cheaper because you are cutting out the middle person. The site is managed for the company by a third party who processes the orders and delivers the mobile

phones/accessories to customers.

The place where you are able to buy sometimes depends on the product. Some companies like Motorola often give exclusive offers to certain retailers. For example, when Motorola first introduced the pink RAZR in the UK, it was exclusively available through Carphone Warehouse. In contrast, 3G phones ,are mainly sold through retail outlets of 3G networks. The reason for this is that the product fits closely with the distribution channel.

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Functional areas Marketing

Marketing

Promotion

Promotion includes all of the techniques that a company uses to communicate with other individuals and organisations. Companies like Motorola send communications and consumers receive them.

An important avenue for communication is advertising. Advertising is referred to as 'above the line' promotion. Other types of promotion such as special offers and discounts are referred to as being 'below the line'.

The type of promotion that is used depends on the stage in the product life cycle. For example, when a new product is launched, such as the RAZR, it makes sense to make people aware. Advertising will communicate the desirability, emotional benefits and exclusive features of the product.

help them.

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Conclusion

Motorola is an exciting high-tech company. Its vision is to provide seamless mobility. In the modern age, communication and the sharing of information is a major goal of consumers. They want to be able to share a joke with friends, access important information on the move, listen to music of their choice. In short, to make best use of their time and the communications available to them. Motorola has invested heavily in providing a range of products that enable people to communicate on the move. These products are supported by other elements of the marketing mix - the right price, in the right place, with appropriate promotion. In a highly

competitive market Motorola needs to regularly adjust this marketing mix in line with the changing requirements of millions of customers.

CONCLUSION

Most of the dealers are selling more than one brand. They sell different brands to gain more volume & more availability to the customers. So dealers’ preference to push a particular brand to the customer plays a major role in the mobile market. Dealer preference to sell that brand in which he gains more profit & whose schemes are more beneficial & best suited to him. A dealer also prefers the company which provides better after sale service. Along with these he will keep in mind the product quality & technology while selling a mobile brand.

According to the dealers advertising & promotional schemes along with other Dhamaka like schemes also effect the consumers willingness. Aggressive advertising put into effect for a long time in the customers mind which influence the people are T.V, Newspapers & magazines.

Consumers prefer a MNC brand due to the quality & technological superior features. Consumers also judge the after sale service availability of the company before purchasing a mobile.

RECOMMENDATIONS

 The dealer recommendations influence the buyer’s decision to purchase a particular brand. So there is need for good relationship with the dealer in terms of incentives provided by the competitors, so that they might recommend MOTOROLA brand to the customer.

 The promotional schemes attract the customer to buy a particular brand. Therefore the company should come out with new & innovative schemes so that volume can be increased.

 In South Delhi Market “Brand Name” plays a crucial role in the sale of a mobile phone. So MOTOROLA Electronics India Ltd. should stress on “RELATIONSHIP MARKETING” to attain credibility in the market.

 To create brand image, to build good relations with the customers & to retain customer loyalty, MOTOROLA Electronics India Ltd. Should ensure that their mobiles are delivered on time & place.

BIBLIOGRAPHY

BOOKS

 KOTLER PHILIPS, MARKETING MANAGEMENT, PUBLISHED BY PRENTICE. HALL OF INDIA PVT.LTD., Ed. 10, 2003.

 HAWKINS & PRENTICE TULL, MARKETING RESEARCH, PUBLISHED

BY HALL OF INDIA PVT.LTD. Ed. 8, 2003

WEBSITES:

• HTTP:// WWW.COAI.COM

• HTTP:// WWW.MOTOROLA EZBUY.COM • HTTP:// WWW.GOOGLE.COM

• HTTP:// WWW.TRAI.COM

ANNEXURE

1. BIBLIOGRAPHY. 2. QUESTIONNAIRE.

QUESTIONNAIRE

Yes No. (if no go to question 7)

Q2. If yes which one & when did you purchase it?

Q3. Are you satisfied

Yes No.

Q4. If yes then reason & if no then reason?

Q5. In what time you are thinking to change your handset or buying a new one

Q6. To which handset will you move and what’s your budget

Q8. What extra features or suggestion would you like to give for mobile phone companies.

Q9. Do you think after sales network is important in mobile industry?

Very Important Average Least Important

Q10. How would you rate the positioning of LCC mobile phones in the market.  Excellent  Good  Satisfactory Poor