Motorola

PROJECT REPORT

PROJECT REPORT

ON

ON

ANALYSIS OF CUSTOMER

ANALYSIS OF CUSTOMER

SATISFACTION WITH RESPECT TO

SATISFACTION WITH RESPECT TO

MOTOROLA MOBILE PHONES

MOTOROLA MOBILE PHONES

SUBMITTED BY:

ACKNOWLEDGEMENT

A Research study can’t be completed without the guidance, assistance, inspiration and cooperation from various quarters. This study also bears the inspiration of many persons. This project required hard work, sincerity and devotion which I tried my best to put in this project and in turn gained a lot of knowledge and confidence from this project.

I am deeply grateful to I am also thankful to all the respondents who spared their valuable time for filling up the questionnaire and helped me out with this project.

my project guide who has helped me in completion of this project. He has been a constant guiding force and source of illumination for me. It entirely goes to his credit that this project has attained its final shape. I would like to thank him for his valuable advice and guidance.

Finally, I would like to thank my parents and all my friends, who provided me with their constant support and took the pain to help me in completing the project.

TABLE OF CONTENTS

TABLE OF CONTENTS

Ch.1: Executive Summary Ch.2 Industry Overview Ch.3. Motorola Profile • History • Product Profile • Market Share • SWOT Analysis Ch.4. Research Methodology

• Objective of the Study

• Type of Data

• Data Representation Tools

• Sample Size

• Area Covered

• Limitations of the Study

Ch.5. Marketing Strategy of Motorola – An effort to Bring high levels of customer satisfaction Ch.6. Findings and Analysis

• General Findings

Ch.7. Conclusion and Suggestions Ch.8. Bibliography

EXECUTIVE SUMMARY

The Company: Motorola Electronics India Ltd.

Research objective: to study the mobile market

condition in context to position of mobile sales, brands, purchasing factors, features & after sale service of various brands a survey of 100 customers 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 after analyzing the data. The report gives a detailed account of such facts.

Suggestions: 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 various facts & information were collected or gathered.

INDUSTRY OVERVIEW

Various cell phones from the past 10–15 years. Legend:

1. NEC Cellstar 500 series (1992) 2. Nokia 2110 series (1994)

3. Nokia 5120 (1998) 4. Kyocera 2135 (2002)

5. Audiovox CDM8300 (2002) 6. Samsung SCH-A650 (2004)

There is one U.S. patent, Patent Number 887357 for a wireless telephone, issued 1908 to Nathan B.

Stubblefield of Murray, Kentucky. He applied this to "cave radio" telephones and not directly to cellular telephony as we know it today.However, the

introduction of cells for mobile phone base stations, invented in 1947 by Bell Labs engineers at AT&T, was further developed by Bell Labs during the 1960s.

Radiophones have a long and varied history going back to Reginald Fessenden's invention and shore-to-ship demonstration of radio telephony, through the Second World War with military use of radio telephony links and civil services in the 1950s, while hand-held cellular radio devices have been available since 1983. Due to their low establishment costs and rapid deployment, mobile phone networks have since spread rapidly

throughout the world, outstripping the growth of fixed telephony.

In 1945, the zero generation (0G) of mobile telephones was introduced. 0G mobile telephones, such as Mobile Telephone Service, were not officially categorized as

change of channel frequency during calls, which allows the user to move from one cell (the base station

coverage area) to another cell, a feature called "handover".

Dr. Martin Cooper of Motorola, made the first US analogue mobile phone call on a larger prototype model in 1973.

In 1984, Bell Labs invented such a "call handoff" feature, which allowed mobile-phone users to travel through several cells during the same conversation. Motorola is widely considered to be the inventor of the first practical mobile phone for handheld use in a non-vehicle setting. Using a modern, if somewhat heavy portable handset, Motorola manager Martin Cooper made the first call on a handheld mobile phone on April 3, 1973.

The first commercial cellular network was launched in Japan by NTT in 1979. Fully automatic cellular

networks were first introduced in the early to mid 1980s (the 1G generation) with the Nordic Mobile Telephone (NMT) system in 1981. This was followed by a boom in mobile telephone usage, particularly in Northern

Europe.

The first "modern" network technology on digital 2G (second generation) cellular technology was launched by Radiolinja (now part of Elisa Group) in 1991 in Finland on the GSM standard which also marked the

introduction of competition in mobile telecoms when Radiolinja challenged incumbent Telecom Finland (now part of TeliaSonera) who ran a 1G NMT network. A decade later, the first commercial launch of 3G (Third Generation) was again in Japan by NTT DoCoMo on the WCDMA standard. Until the early 1990s, most mobile phones were too large to be carried in a jacket pocket, so they were typically installed in vehicles as car phones. With the miniaturization of digital

components, mobile phones have become increasingly handy over the years.

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 employment 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

The Government of India recognizes that the provision of a world-class telecommunications infrastructure and information is the key to rapid economic and 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 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.

The first metro cellular network started operating in August 1995 in Kolkatta.

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.

HISTORY

Motorola Inc. (NYSE: MOT) is an American multinational communications company based in Schaumburg, Illinois, a Chicago suburb.

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. Founders Paul Galvin and Joe Galvin came up with the name Motorola when their 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. Many 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.

Motorola creates several different products for use of the government, public safety officials, business

installments, and the general public. These products include cell phones, laptops, and radios.

SPINOFFS

Motorola developed the first truly global

communication network using a set of 66 satellites. The business ambitions behind this project and the need for raising venture capital to fund the project led to the creation of the Iridium company in the late 1990s. While the technology was proven to work, Iridium failed to attract sufficient customers and they filed for bankruptcy in 1999. Obligations to Motorola and loss of expected revenue caused Motorola to spin off the ON Semiconductor (ONNN) business August 4, 1999, raising for Motorola of about $1.1 Billion.

Further declines in business during 2000 and 2001, caused Motorola to spin off its government and defense business to General Dynamics. The business deal closed September 2001. Thus GD Decision Systems was

formed (and later merged with General Dynamics C4 Systems) from Motorola's Integrated Information Systems Group.

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.

RATINGS FROM INTEREST GROUPS

Motorola received a 100% rating on the Corporate

Equality Index released by the Human Rights Campaign in 2004[1] , 2005 [2] and 2006[3] , starting in the third year of the report

MOTOROLA INDIA

• Motorola, a US$ 40 billion company is global leader in providing integrated communications solutions and embedded electronic solutions.

• Motorola India first entered India through a joint venture with Blue Star to manufacture modems.It then went on to become a wholly owned

subsidiary.

• In 1991, Motorola set up its first software centre in Bangalore.In 1994, it set up a pager manufacturing unit in Bangalore.With the ppager market not

taking off in the country, the company has since shifted strategy and the unit is changed into a cellular phone manufacturing unit.

• In 1999, Motorola set two chip designing units around Delhi, and a third one in Hyderabad.All of these units including the software centre are 100 percent export units meeting the company's global requirements.

• India is now well-established as a source of software and chip design, and as a source of excellent capital for Motorola globally. The number of software engineers appointed by Motorola in India has gone up from 100 to a current level of 2000 engineers.

PRODUCT PROFILE

1.MOTOROLA RAZR2 V8 • GENERAL : 1. NETWORK – GSM 850/GSM900/GSM 1800/GSM 1900 2. ANNOUNCED – MAY, 2007 • SIZE: 1. DIMENSIONS – 103*53* 11.9mm 2. WEIGHT – 117g • DISPLAY : 1. TYPE –TFT, 256K COLORS • DATA : 1.BLUETOOTH – YES • FEATURES: 1.MESSAGING-SMS,EMS,MMS,INSTANT MESSAGING

2.COLORS – DARK PEARL GRAY 3. CAMERA – 2 MP

ALSO KNOWN AS MOTOROLA MING • GENERAL: 1. NETWORK – GSM 850/GSM 900/GSM 1800/GSM 1900 2. ANNOUNCED – DECEMBER, 2005 • SIZE: 1. DIMENSION – 95.7*51.7*21.5 mm 2. WEIGHT – 122g • DISPLAY:

1. TYPE – TFT TOUCHSCREEN, 256K COLORS

• DATA:

1. BLUETOOTH – YES

• FEATURES:

1. MESSAGING – SMS, EMS, MMS, INSTANT MESSAGING

2. COLORS – BLACK, RED, SILVER 3. CAMERA – 2 MP

• GENERAL: 1. NETWORK – GSM 850/GSM 900/ GSM 1800/GSM 1900 2. ANNOUNCED – JULY, 2006 • SIZE: 1. DIMENSION – 103*42*16mm 2. WEIGHT – 102g • DISPLAY : 1. TYPE – TFT, 256K COLORS • DATA: 1. BLUETOOH – YES • FEATURES: 1.MESSAGING -SMS,EMS,MMS,E-MAIL 2. COLORS – COSMIC BLUE, SILVER SAIL

3.CAMERA-2MP 4.MOTOROLA ROKR E6 • GENERAL: 1. NETWORK - GSM 900/GSM 1800/GSM 1900

2. ANNOUNCED – DECEMBER, 2006

• SIZE:

1. DIMENSION – 111*51.5*14.5 mm 2. WEIGHT – 121 g

• DISPLAY:

1. TYPE – TFT TOUCHSCREEN, 256K COLOR

• DATA :

1.BLUETOOTH – YES

• FEATURES :

1. MESSAGING – SMS, EMS, MMS, E-MAIL, INSTANT MESSAGING.

2. COLORS – BLACK 3. CAMERA – 2 MP

5.MOTOROLA RIZR Z3 • GENERAL : 1.NETWORK – GSM 850/GSM 900/GSM 1800/GSM1900 2.ANNOUNCED – JULY, 2006 • SIZE : 1. DIMENSION-106*46*16mm 2. WEIGHT-115g • DISPLAY : 1. TYPE- TFT, 256K COLORS • DATA: 1. BLUETOOTH- YES • FEATURES:

1. MESSAGING- SMS, EMS, MMS, E- MAIL, INSTANT MESSAGING

2. COLORS- RED, BLUE, BLACK 3. CAMERA- 2MP

6. MOTOROLA RAZR V3i • GENERAL : 1.NETWORK- GSM 850/GSM 900/ GSM 1800/GSM 1900 2.ANNOUNCED- NOVEMBER, 2005 • SIZE: 1.DIMENSION- 98*53*13.9mm 2.WEIGHT- 100g • DISPLAY : 1.TYPE- TFT, 256K COLORS • DATA : 1.BLUETOOTH- YES • FEATURES:

1.MESSAGING- SMS, EMS, MMS, E-MAIL, INSTANT MESSAGING

2.COLORS- SILVER QUARTZ 3.CAMERA- 1.23MP

7.MOTOROLA SLVR L9 • GENERAL : 1.NETWORK-GSM 850/GSM 900/GSM 1800/GSM 1900 2.ANNOUNCED- FEBRUARY, 2007 • SIZE: 1.DIMENSION- 113*49*11.5mm 2.WEIGHT- 96g • DISPLAY: 1.TYPE- TFT, 256K COLORS • DATA: 1.BLUETOOTH- YES • FEATURES: 1.MESSAGING- SMS, EMS,MMS,E-MAIL,INSTANT MESSAGING 2.COLORS- BLACK 3.CAMERA- 2MP

8.MOTOROLA SLVR L7i • GENERAL: 1. NETWORK- GSM 850/GSM 900/GSM 1800/GSM1900 2. ANNOUNCED- OCTOBER, 2006 • SIZE: 1. DIMENSIONS-113*49*11.5mm 2. WEIGHT- 96g • DISPLAY: 1. TYPE- TFT, 256K COLORS • DATA: 1. BLUETOOTH-YES • FEATURES: 1. MESSAGING- SMS,EMS,MMS,E-MAIL,INSTANT MESSAGING 2. COLOR- BLUE 3. CAMERA- 1.3MP

9. MOTOROLA L6

ALSO KNOWN AS MOTOROLA V 280

• GENERAL: 1.NETWORK- GSM 900/GSM1800/GSM 1900 2.ANNOUNCED- 2005 • SIZE: 1.DIMENSIONS- 113*49*10.5mm 2.WEIGHT- 86g • DISPLAY: 1.TYPE- CTN,65K COLORS • DATA: 1.BLUETOOTH- YES • FEATURES: 1.MESSAGING- SMS,EMS,MMS.INSTANT MESSAGING 2.COLORS- SILVER 3.CAMERA- VGA

10.MOTOROLA W220 • GENERAL: 1. NETWORK- GSM 900/GSM 1800 2. ANNOUNCED- FEBRUARY, 2006 • SIZE: 1. DIMENSIONS- 95*46*16.7mm 2. WEIGHT- 93g • DATA: 1. BLUETOOTH- NO • DISPLAY : 1. TYPE- CSTN, 65K COLORS • FEATURES: 1. MESSAGING- SMS,EMS,MMS 2. COLORS- SILVER BLACLK 3. CAMERA- NO

11. MOTOROLA W375 • GENERAL : 1. NETWORK- GSM 900/GSM 1800/GSM1900 2. ANNOUNCED- JUNE, 2006 • SIZE: 1. DIMENSIONS- 99*45*18.6mm 2. WEIGHT- 88g • DISPLAY: 1. TYPE- TFT, 65K COLORS • DATA : 1. BLUETOOTH- NO • FEATURES: 1. MESSAGING- SMS,EMS,MMS

2. COLORS- CANNON GRAY,LUSTROUS SILVER,MANDARIN ORANGE CAMERA- VGA

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 talk time 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.

MARKET SHARE OF MOTOROLA

MOTOROLA HAS 14% MARKET SHARE IN INDIA

Motorola has become the No. 2 in handset sales in India with a market share of 14%. Market leader Nokia has a market share upwards of 60%.

The ET story says Motorola had a 2% market share in December 2005. I think thats incorrect.

According to this post — Motorola was already No. 3 in March 2006, behind Nokia and Samsung. There are

three stories on Mobile Pundit from 2005 which put Motorola’s market share between 5 to 10 per cent around a year back.

Nokia’s market share rises to 74% (May 2005) Motorola’s market share = 4.5%

Edward Zander of Motorola in India (August 2005) Motorola’s market share = 10%

Indian Mobile Handset Market (September 2005) Motorola’s market share = 7%

Allen Burnes, speaking on the sidelines of the global launch of its entry-level Motofone handset, added its initial sales would be primarily driven in India by bundling.

Our bundled offers are mainly with first-time buyers,” said Lloyd Mathias, marketing director for India. “We

are getting a lot of traction in the low-end market. One of our focus areas for 2007 is building a retail

presence.”

Motorola has tied up with top five Indian carriers such as Airtel, BSNL and Hutch to offer handsets to

customers.

Over the past two years Motorola has launched a slew of trendy handsets at many price levels. It is also setting up a handset-making unit in Chennai.

Motorola is planning to extend its interest-free financing tie-up with GE Finance Ltd to the country’s top 35 cities — which account for 60 per cent of new handsets sales — from 10 cities now.

Motorola rejigged its Indian operations last year and renewed focus on this high-growth market under the supervisions of its emerging marketing expert Allen Burnes. Former Tata Tele chairman Firdose Vandrevala joined the company as head of Indian operations a year back.

SWOT ANALYSIS

STRENGTH

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.

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

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

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

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

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

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

OPPORTUNITIES

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.

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.

Globalisation 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.

STATEMENT OF OBJECTIVES

The Primary Objective was to study the consumer preference & perception for Motorola mobile phones. 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.

• Factors which help in increasing the sale of mobile phones.

RESEARCH INSTRUMENT

 Visited the customers 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 consumers were with them if they were already using them.

TYPE OF DATA

• PRIMARY DATA

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

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.

DATA REPRESENTATION TOOL

• Graphs and pie charts have been used to show the opinions of customers for Motorola mobile phones by way of questionnaire.

SAMPLE SIZE

• For the purpose of the survey a sample size of 100 customers was taken. The extent of this survey was limited to the city of New Delhi only.

AREA OF STUDY

• The study was conducted in South Delhi Market in the following areas.

▪ Lajpat Nagar ▪ Kailash Colony ▪ Nehru Place ▪ Kalkaji ▪ CR Park ▪ Alaknanda

LIMITATIONS

• A small sample size of 100 customers 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 consumers were not co-operative in giving correct information even if they were using various mobile brands.

• Human error during recording, tabulation & printing error could be present.

MARKETING STRATEGIES OF

MOTOROLA – AN EFFORT TO

BRING HIGH LEVEL OF

CUSTOMER SATISFACTION

The Marketing Mix - (The 4 P's of Marketing)

Marketing decisions generally fall into the following four controllable categories:

• PRODUCT

• PRICE

• PLACE (DISTRIBUTION)

• PROMOTION

The term "marketing mix" became popularized after Neil H. Borden published his 1964 article, The Concept of the Marketing Mix. Borden began using the term in his teaching in the late 1940's after James Culliton had described the marketing manager as a "mixer of

ingredients". The ingredients in Borden's marketing mix included product planning, pricing, branding,

distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding and analysis. E. Jerome McCarthy later grouped these ingredients into the four categories that today are known as the 4 P's of

THE MARKETING MIX

These four P's are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment. The goal is to make decisions that center the four P's on the customers in the target market in order to create perceived value and generate a positive response.

PRODUCT DECISIONS

The term "product" refers to tangible, physical products as well as services. Here are some examples of the

product decisions to be made:

• Quality

PRICE DECISIONS

Some examples of pricing decisions to be made include:

• Pricing strategy (skim, penetration, etc.)

• Cash and early payment discounts

• Price flexibility

• Price discrimination

DISTRIBUTION (PLACE) DECISIONS

Distribution is about getting the products to the customer. Some examples of distribution decisions include:

• Distribution channels

• Market coverage (inclusive, selective, or exclusive distribution)

• Warehousing

• Transportation

PROMOTION DECISIONS

In the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of

generating a positive customer response. Marketing communication decisions include:

• Promotional strategy (push, pull, etc.)

• Advertising

• Personal selling & sales force

• Sales promotions

The firm attempts to generate a positive response in the target market by blending these four marketing mix variables in an optimal manner.

Product

Motorola is known around the world as an innovator and leader in wireless and broadband communications. They are committed to help us get and stay connected simply and seamlessly to the people, information and entertainment you want and need. They do this by designing and delivering "must have" products, "must do" experiences and powerful networks — with a full complement of support services as well.

A Fortune 100 company with global presence and impact, Motorola had sales of US$42.8 billion in 2006. Learn more about our three primary business units in the links below:

As a pioneer in wireless communications, Motorola has transformed the cell phone into an icon of personal technology — an integral part of daily communications, data management and mobile entertainment.

Motorola not only designs,manufactures, sells and services wireless handsets, but also licenses its vast portfolio of intellectual property. Our collection spans all cellular and wireless systems and includes integrated software applications as well as one a large complement of Bluetooth®-enabled accessories.We offer customers innovative product designs that deliver "must have" experiences, such as mobile music and video — enabling seamless connectivity at work or at play.

Price

These are various prices of the various products of Motorola phones :

Motorola RAZR maxx V6 Rs.23099 Motorola RAZR2 V8 Rs.18699 Motorola ROKR E6 Rs.13874 Motorola ROKR Z6 Rs.12649 Motorola A1200 Rs.12224 Motorola RAZR V3i GOLD Rs.11299 Motorola KRZR K1 Rs.8724 Motorola RIZR Z3 Rs.8474 Motorola SLVR L9 Rs.8414 Motorola RAZR V3i MAROON Rs.8319 Motorola RAZR-V3i Rs.7979 Motorola L7i Rs.7199 Motorola SLVR-L7 Rs.5969 Motorola RAZR V3 BLACK Rs.5644 Motorola L6 Rs.4889 Motorola L6i Rs.4524 Motorola W375 black Rs.4349 Motorola W375 Rs.4299 Motorola W215 Rs.3649 Motorola W220 BLACK Rs.2974 Motorola W220 Rs.2964 Motorola W220 SILVER Rs.2849 Motorola C168 Rs.2649 Motorola W209 Rs.2649 Motorola C139 Rs.1999 Motorola W205 Rs.1824 Motorola MOTOFONE F3 Rs.1600

Place

Motorola has joined forces with Bharti Teletech Ltd. to establish a strategic relationship that extends Motorola’s reach across metros, cities and to the smallest towns in India.

Bharti Teletech’s access to the burgeoning rural market is a perfect match for Motorola’s efforts to ‘connect the unconnected’ by providing handsets like the new C113a suited to mass-market users. Their broad distribution to urban cities also allows Motorola to reach the growing population of professionals eager for the latest high-end handsets including the award winning RAZR V3.

Motorola’s agreement to extend the availability of its products for consumers in the market through Bharti Teletech’s national distribution presence* underscores Motorola’s continued commitment and focus in India. Combining, ‘Beetel’, one of the strongest brands of Bharti Teletech in India, with Motorola’s internationally recognised brand, opens a world of new opportunity for mobile consumers.

Alliance with Hariyali Kissan Bazaar

Motorola has announced an alliance with DCM Shriram Consolidated Ltd. (DSCL)’s Hariyali Kisaan Bazaar chain of rural/semi-urban utility marts for sales and distribution of handsets. With this, Motorola will acquire unparalleled penetration for its handsets sales in India. The alliance is a perfect match of Hariyali Kisaan Bazaar’s expertise in rural retail, and Motorola’s new BharatMoto initiative, aimed at connecting the next billion through India’s mass market consumers in rural/semi-urban areas.

This is a boon for a segment which has traditionally suffered from grey market and/or refurbished units. In

keeping with its focus on service, sale of all handsets will be covered by Motorola’s robust after-sales support.

Hariyali Kisaan Bazaar’s 24 operational centres have a presence across belts in Madhya Pradesh, Rajasthan, Uttranchal, Uttar Pradesh, Punjab and Haryana, with additional plans to rapidly scale-up presence in the next few years.

The Hariyali Kisaan Bazaar’s model seeks to empower the Indian farmer by setting-up retail centres and providing all encompassing retail solutions from utilities to banking, under one roof. Through the tie-up with Motorola, it fulfills the burgeoning rural demand for handsets as well.

Motorola opens global flagship store in India

The opening of the latest Motorola "Global Flagship Store" in one of the busiest market areas of New Delhi's National Capital Region (NCR) adds to the existing Motorola Flagship stores already open in Shanghai and Moscow. The opening was further supported by the simultaneous launch of a concept MOTOSTORE in the country's capital and adds to the over 350 Motorola branded locations spread throughout Asia Pacific, Europe, India and Latin America.

Each flagship MOTOSTORE features a unique, interactive layout, highly trained staff, phone customization and experience pods. These elements are intended to create a deeply experiential environment that incorporates Motorola's full product range and brings to life Motorola's vision of seamless mobility -- anytime,

Motorola's Flagship Stores are designed with one mission: to help people understand and realize the full potential of Motorola products. And we have seen that when they do that, they are more likely to buy our products and more likely to be happy customers.

MOTOSTORE is truly reinventing the mobile retail culture and is the ideal vehicle for bringing the mobile experience to life for consumers in a way that is interactive, human and fun.

NO DOUBT THAT the products from the Finnish company, Nokia, are some of the very best in the world, but the company still hasn’t found a profitable way to market its goods. The very reason that other mobile phone companies are fast eating up Nokia’s market share is their superior (yet simple) marketing practices.

Motorola now be in the FUW (frequently used words) list in Nokia’s board meetings. The company have made Nokia pay dearly for its rudimentary approach in marketing its phones. The aggressive marketing practices followed by Motorola have hit Nokia very hard and it is losing very crucial global market share every month to its American competitor.

While Motorola (quite intelligently) gives a dashy-flashy name to every phone it brings into the market, Nokia tends to do the exact opposite. Nokia from the very start has relied on numbers rather than names. This strategy worked very well in the past, but only because there wasn’t much competition back then. But times have changed. Every month the market sees at least a dozen new handsets from an equal number of manufacturers. Consumers now have more than they can choose.

Consumers are more attracted by names because they can thus easily relate to the features of the phone. This is evident from the success of the MotoRazr, MotoSlvr, MotoRizr and MotoKrzr. These phones are not packed with heavy

are selling like hot cakes. Just by reading the name of the handset, one gets a broad idea what the phone looks like or what its features are.

Nokia advertises more than Motorola. Still its market share is dropping. Motorola does not need to spend much money for the promotion of its products and it doesn’t have to worry about the marketing of these phones; it just simplifies its job by naming its products right.

Motorola signs Abhishek Bachchan as

'Motostar'

Abhishek Bachchan has become the first Indian brand ambassador of Motorola on 5th _{june, 2006.}

As Motorola’s brand ambassador, Abhishek will support marketing and branding efforts for the entire Mobile Device product range. Motorola’s brand quotient of youthful spirit, daring to be different, being bold and smart is in sync with Abhishek’s bold and daring attitude, enigmatic looks and unconventional style.

Abhishek fits in as the iconic “MOTOSTAR” who now joins tennis top seed, Maria Sharapova as a brand

ambassador for Motorola globally.

Announcing the deal in New Delhi, Allen Burnes, Corporate Vice President, High Growth Markets,

Mobile Devices, Motorola Inc. said, “India is a significant and exciting market for Motorola where our relentless attention to our customers and razor sharp focus is enabling us to bring customers and consumers not only high quality products but also innovative and unique services and brand collaborations. Abhishek is a stylish and sophisticated actor who appeals to all segments of the Indian society - young and old, urban and rural, fashion conscious and the intelligentsia. With this collaboration, I am absolutely confident that our partnership will be mutually beneficial in ensuring our continued success while keeping our customer interests centre-stage.”

Addressing the gathering, Abhishek said, “I am honoured to be an ambassador for a truly global brand synonymous with quality, innovation and style. Helping India get more and more connected with Motorola phones is my mission for the next 24 months. It is amazing to see how we as a nation have adopted this technology and today it is pervading every sphere of our lives. Speaking for myself, I am a complete techno-geek and rely on these gadgets to keep myself organized. I absolutely love the Motorola products. They are really cool and stylish while offering the best applications. I am excited about making the difference, Right here! Right now!!”

Findings Based on Questionnaire

1. Graph showing consumption of mobile phones.

YES 96

NO 4

From the above graph it is clear that 96 out of 100 people have mobile phones while only 4 people do not use mobile phones.This proves that the use of mobile phones are increasing day by day.

96 4 0 20 40 60 80 100 120 YES NO Series1

2. Bar graph showing the consumption of different brands of mobile phones.

The above graph displays that Nokia phones are

consumed by more than 60% people i.e., 63%.Followed by Motorola which is 17%,Samsung is consumed by 10 people out of 100 , 3 people uses Sony Ericsson and the rest consumes other brands of mobile phones.

NOKIA 63 MOTOROLA 17 SAMSUNG 10 SONY ERICSSON 7 OTHERS 3 63 17 10 7 3 0 10 20 30 40 50 60 70

NOKIA MOTOROLA SAMSUNG SONY

ERICSSON

OTHERS

3. Graph showing awareness of Motorola mobile phones

YES 100

NO 0

4.

The above graph shows that all most everyone knows about Motorola mobile phones.

100 0 0 20 40 60 80 100 120 YES NO Series1

4.Graph showing purchase of Motorola mobile phones

YES 37

NO 63

The above graph shows that out of 100 people 37 has Motorola mobile phones while 63 does not have it.

5.

Graph showing different factors affecting purchase behaviour of Motorola mobile phones

37 63 0 10 20 30 40 50 60 70 YES NO Series1

PRICE 37%

FEATURES 15%

LOOKS 41%

AVAILABILITY 7%

The above graph shows that 37% people purchase Motorola mobile phones because of its price, 15% because of its features, 41% because of its looks and 7%

because of its availability.

6.Graph showing factors de-affecting the purchase behaviour of Motorola mobile phones

PRICE 17% 37% 15% 41% 7% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

PRICE FEATURES LOOKS AVAILABILITY

FEATURES 32%

RE-SALE VALUE 39%

CAN'T SAY 12%

From the above graph it is clear that 17% people do not purchase Motorola mobile phones because of its price, 32% because of its features, 39% because of its low resale value and 12% said can't say.

7.Bar graph showing brands of mobile consumers like the most.

NOKIA 60 MOTOROLA 20 SAMSUNG 9 SONY ERICSSON 8 17% 32% 39% 12% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

PRICE FEATURES RE-SALE VALUE CAN'T SAY

From the above graph it is clear that Nokia is being

liked by the majority people i.e., 60 out of 100, while 20 people like Motorola, 9 likes Samsung, 8 likes Sony Ericsson and 3 people like other brands of mobile phones.

8.Graph showing extra features demanded in Motorola mobile phones

60 20 9 ₈ 3 0 10 20 30 40 50 60 70

NOKIA MOTOROLA SAMSUNG SONY

ERICSSON

OTHERS

FM RADIO 23%

GPS 37%

DUAL SIM SYSTEM 29%

CAN'T SAY 11%

It has been observed that 23% people demand fm radio in the cell phones of Motorola while 37% are in favor of

GPS, 29% are in favor of dual sim card system.

9. Graph showing the satisfaction level of customers with regard to after sales service

YES 63% NO 37% 23% 37% 29% 11% 0% 5% 10% 15% 20% 25% 30% 35% 40%

FM RADIO GPS DUAL SIM CARD CAN'T SAY

From the above graph it is clear that 63% people are satisfied with the after sales services provided by

Motorola while 37% are not satisfied with the services provided by Motorola.

10. Graph showing satisfaction level with respect to price HIGH 18% REASONABLE 47% 63% 37% 0% 10% 20% 30% 40% 50% 60% 70% YES NO Series1

LOW 35%

From the above evaluation it is clear that 47% people consider the prices of Motorola handsets to be

reasonable while 35% believes them to be low and the rest considers the prices to be high

11. Graph showing the role of advertisements in increasing the sales of different brands of mobile

phones YES 85% NO 15% 18% 47% 35% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

HIGH REASONABLE LOW

85% people believes that advertisements affect their buying behaviour while 15% believes that

advertisements do not affect the buying behaviour of customers.

12. Graph showing the number of suggestions regarding the products

YES 34% NO 21% NOT CERTAIN 45% 85% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% YES NO Series1 34% 21% 45% 15% 20% 25% 30% 35% 40% 45% 50% Series1

From the above graph it is clear that 34% people have suggestions for the company while 21% does not have any suggestion towards the company.

GENERAL FINDINGS

 Nokia, Samsung, Motorola and Sony Ericsson are the favourite as brands among the consumers in South Delhi Market.

 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 60 percent market share followed by Motorola (14percent), Samsung (11 percent),Sony Ericsson (9percent) and other (6 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 favourites among the customers.

CONCLUSIONS &

SUGGESTIONS

CONCLUSION

After carrying out the project "Analysis of Customer Satisfaction with respect to Motorola Mobile Phones", I found that Nokia is still the market leader, but Motorola has great potential to be a strong competitor of Nokia in market.

Motorola enjoys a good position in the market by way of its innovative and stylish handsets. On the whole, Motorola has great way to go and succeed in the market.

On the basis of customer survey, it is clearly visible that Motorola stands strong among other mobile brands.

SUGGESTIONS

 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 purchase 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:

a. Philips Kotler, Marketing Management, Published by Prentice Hall of India Pvt. Ltd. , Ed. 10,2003

b. Hawkins and Tull, Marketing Research, Published by Prentice Hall of India Pvt. Ltd. ,Ed.8,2003 WEBSITES: • http://www.gsmarena.com • http://www.motorola.com • http://www.google.com • http://www.trai.com