RESEARCH PROJECT REPORT

(BBA-2603)
On

COMPARATIVE ANALYSIS OF SMART PHONES WITH

SPECIAL REFERENCE TO APPLE AND SAMSUNG

Towards partial fulfillment of

Bachelor of Business Administration (BBA)

(BBD University, Lucknow)

Guided by Submitted by

Ms. JANVI AGARWAL Dhiraj Gupta

Assitant Professor 1160671089

Session 2018-2019

School of Management

Babu Banarasi Das University

Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India

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CERTIFICATE

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 DECLARATION

I declare that the project entitled “COMPARATIVE ANALYSIS OF SMART

PHONES WITH SPECIAL REFERENCE TO APPLE AND SAMSUNG” under the

guidance of Ms. Janvi Agarwal, BBDU submitted in partial fulfillment of the requirement

for the award of the degree of Master of Business Administration to BBDU, Lucknow is

my original work – carried out and not submitted for the award of any other degree,

diploma, fellowship or other similar or prize to any other institute, organization or

university by any other person.

DHIRAJ GUPTA

Roll No-1160671089

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 ACKNOWLEDGEMENT

I am thankful to Ms. Janvi Agarwal for his valuable inspiration and guidance provided me

throughout the course of this project. She has patience and critically gone through the subject

matter.

I would like to take opportunity to express my gratitude towards all of them who have contributed

directly or indirectly in my project work.

At last I would like to extend my deep sense of gratitude to my friends, colleagues and each

individual who directly or indirectly help me during the project work.

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 EXECUTIVE SUMMARY

The problem staring at the face of Apple today is its loss of focus. It failed to innovate with the

technology curve and understand the changing consumer needs. Apple seemed to successfully do

what marketing experts say you can’t do: serve all segments in a market. Apple sold very high

-end, technologically advanced phones and simple, inexpensive phones, all under the Apple

brand. The branding structure was very simple: the Apple brand with a product number, the

company’s newest smartphone ofcourse, many branding problems only surface over time.

And that is certainly the case for Apple . By playing in all segments of the market, Apple watered

down its brand, eroding its meaning. The company stands on a double edged sword of surviving

and reviving. Apple 's new Apple phones are considered to be its last shot at success by analysts,

who believe that if the new devices fail, the company will not be able to rise from the ashes. The

Finnish manufacturer has lost ground to Apple iPhone and Samsung Galaxy phones. In addition

to this, Apple needs to develop a long term strategy to stay competitive and profitable in the

industry.

This study primarily targets the strategy of Apple and its upcoming products. All the major

sectors of product management are studied. SWOT Analysis & PESTLE Analysis were carried

out and PORTER’s 5 Forces Model w as applied on Apple during this study while doing

competitor analysis at each step. Promotion and Pricing strategy was studied and distribution

channels were analysed to find the best suitable strategy for the future using current resources and

competencies. Apple has lost its crown and the acceptability in the market especially like India.

Following a short term strategy to increase brand equity is the first and most important task at

hand. It has to be efficiently promoted and aggressively sold to generate survival resources.

Finally, Apple needs a long term strategy to sustain the ever increasing competition in the

otherwise very profitable industry.

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 TABLE OF CONTENT

Cover Page

Acknowledgement

Executive Summary

Index

Chapter - I : Conceptual Description of topic

Chapter - II : Brief Profile of the Company

Chapter - III : Research Methodology

In Case of Primary data Collection and Secondary Data Analysis

i. Objective

ii. Research Design

Chapter - IV : Analysis and Interpretation of Data

Chapter - V : Findings, Conclusion and Suggestions

Bibliography

Annexure

Questionnaire

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 Chapter - I

Conceptual Description of Topic

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 INTRODUCTION

The cellular telephone (commonly “mobile phone” or “cell phone” or “hand phone’) is a

long range portable electronic device used for mobile communication. In addition to the

standard voice function of a telephone, current m o b i l e i - p h o n e s c a n s u p p o r t

m a n y a d d i t i o n a l services such a s sessor text messaging, email, switching for

a c c e s s t o t h e Internet, & MMS for sending and receiving photos and video. Most

current mobile i-phones connect to a Cellular network of base stations, which is in turn

interconnected to the public switched telephone networks i-phones. Cellular telephone is

also defined as a type of short-waveanalogor digital telecommunication in which a

subscriber has a wireless connection from a mobile telephone to a relatively nearby

transmitter. The transmitter's span of coverage is called a cell. Generally, cellular

telephone service is available in urban areas and along major highways. As the cellular

telephone user moves from one cell or area of coverage to another telephone is

effectively passed on to the local cell transmitter. A cellular telephone is not be confused

with a codeless telei-phones.

Samsung Group is a South Korean multinational conglomerate company headquartered

in Samsung Town, Seoul. It comprises numerous subsidiaries and affiliated businesses,

most of them united under the Samsung brand, and are the largest South Korean chaebol.

Notable Samsung industrial subsidiaries include Samsung Electronics (the world's largest

information technology company measured by 2011 revenues), Samsung Heavy

Industries (the world's second-largest shipbuilder measured by 2010 revenues), and

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Samsung Engineering and Samsung C&T (respectively the world's 35th- and 72nd-

largest construction companies). Other notable subsidiaries include Samsung Life

Insurance (the world's 14th-largest insurance company), Samsung Everland (the oldest

theme park in South Korea) and Cheil Worldwide (the world's 19th-largest advertising

agency measured by 2010 revenues).

Samsung produces around a fifth of South Korea's total exports and its revenues are

larger than many countries' GDP; in 2006, it would have been the world's 35th-largest

economy. The company has a powerful influence on South Korea's economic

development, politics, media and culture, and has been a major driving force behind the

"Miracle on the Han River".

Apple Inc. is an American corporation that designs and manufactures computer hardware,

software and other consumer electronics devices. The company is best known for their

Macintosh personal computer line, Mac OS X, extremely loyal user-base, iTunes media

application, the iPod personal music player and i I-phones. The company headquarters is

in Cupertino, California, CEO and co-founder is Steve Jobs and the company boasts 284

retail locations spanning 106 different countries. (apple, 2011)

Apple was established on April 1 st, 1976 by Steve Jobs, Steve Wozniak and Ronald

Wayne to sell the Apple I personal computer kit. Steve Jobs was said to own 45% of the

company, Steve Wozniak with 45% and Wayne with the remaining 10%. While Jobs and

Wozniak were young with little to no assets, Ronald Wayne was older with personal

assets and was scared to put these at risk. This resulted in Wayne selling his share of the

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company back to Jobs and Wozniak for a reported 800$. Today Wayne’s share of the

company would be worth over 3 billion dollars. (Michael Dougherty, 2010)

In December 1980, Apple went public. Its offering of 4.6 million shares at $22 each sold

lot within minutes. Second offerings of 2.6 million shares quickly sold out in May 1981.

As of September 25, 2010, the Company had opened a total of 317 retail stores, including

233 stores in the United States and 84 stores internationally.(apple b,2011)

3) Product portfolio:-

Apple has different segment in its product portfolio: - (apple, 2011)

1) Macintosh computers

2) I I-phones (I Phone 3g, I Phone 3gs, I Phone 4)

3) I Pad

4) I Pod

5) Software (I Tunes and other application software)

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 COMPANY PROFILE

4) Overview of Smartphone industry:-

A Smartphone is a mobile phone that offers more advanced computing ability and

connectivity then ordinary feature phone. Smartphone may refer to handheld computer

integration with a mobile. Smartphone are completely built with operating system

software which allows user to use phone instead of their laptop or computers. In 2011

Smartphone are experiencing accelerating rates of adoption: 22% of consumers already

have a Smartphone, with this percentage rising to 31% amongst 24-35 year olds.

(ismashphone, 2009)

List of companies involved in manufacturing Smartphone are as follows :- (ismashphone,

2009)

1) Apple

2) Nokia

3) Blackberry (RIM)

4) HTC

5) Fujitsu

6) Others (includes Motorola, Sony, and everyone else)

Apple's Smartphone market share growth over 1 year has been 10 times that of any other

of its competitors. However, Apple is still only third in line when counting the number of

units sold by each major Smartphone manufacturer. Nokia is first, selling a whopping

18,441,000 in the 2nd quarter of 2009, and RIM (Blackberry) is 2nd with 7,678,900 units

sold.

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5) Product overview:-

Apple i Phone 4 is the latest i phone series phone launched by apple inc. For this report i

have chosen this product and further marketing analysis is done in following report.

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Source: (apple, 2011)
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6) Audit of marketing environment:-

1) Macro Environment

Source(learning marketing, 2005)

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1) Political factor:-

In 2010 Emergency Budget the Chancellor announced an increase in the standard

rate of VAT from 17.5 per cent to 20 per cent effective from 4 January 2011. This

would affect the total selling price of i phone 4. (apple store, 2011)

GATT laws can interfere selling of i phone 4 in global context. (duke law,2004)

As most apple iphone is sold in terms of contract with other telecommunication

companies, sometimes customer finds problem to finish this contract and thus

laws of such contract affect the consumer buying decision.

2) Economic factor:-

Average Weekly Earnings

Regular pay growth decreases

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 Source (national statistics, 2011)

As shown in graph average weekly income of people in UK is going

slightly down from February 2011, this may affect the purchasing power

of consumer in future.

Unemployment rate of UK is 7.8% which is quite high and can affect the

sells of company.

Inflation

CPI 4.0%, RPI 5.3%

Source(national statastics b,2011)

Inflation rate was 4.0 per cent in March 2009, down from 4.4 per cent in

February 2011. As inflation is decreasing but still is quite high which can

affect consumer purchasing decision.

3) Socio-cultural factor:-
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Population Estimates

UK population grows to 61.8 million

Population: by gender and age, mid-2009

Source(national statastics c,2011)

The estimated resident population of the UK was 61,792,000 in mid-2009,

and Children aged under 16 represented approximately one in five of the total

population and youth population between 20-40 is also high, thus apple has

larger scope as it target the customer between this group.

GDP per head in Britain was £23,500 in 2008 which means standard of living

in Britain was high. As apple group is targeting the customer with high

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 income earning group, can get larger customer group in Britain. (David

smith, 2007)

As per capita income and economy is growing after the great recession most

people want to achieve higher slandered of living by purchasing premium

product. Hence, it widened the market for apple iphone.

As compared to Asian countries the culture of UK is independent that means

individual are free to take their own decision after 18 years. Which also

influenes the buying decision of consumer.

4) Technological factor:

 Apple iphone 4 is loaded with latest technology going in market. But

Innovation in technology takes place very fast thus companies has to keep

updating their product with new technology. Soon apple is going to launch

apple iphone 5, hence apple iphone 4 would be out of market.

2) Micro environment:-

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Michel Porter identified five forces for analysing the micro environment (Elizabeth,

H. and Terry O, 1996)

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 SWOT ANALYSIS

Strength: -

Innovative – The i Phone has an innovative touch screen that is patented and

unmatched by any other mobile product today. It also has many functions of other

mobile products all in one device.

Compatibility –The phone will work with iTunes and with other Mac/Apple products

like the new Apple TV, allowing for wireless connectivity to the big screen. The i

Phone is also compatible with many Mac OS software tools. Mac OS compatibility

means that the i Phone has limitless potential for upgradeability.

Ease-of-Use – The all-new touch screen interface making operations extremely

intuitive. It is radically different from those of other i-phones or PDAs that

recognizes multi finger gestures, just as the human hand normally behaves. The Mac

OS X application imbedded into the i Phone assures users will easily recognize what

they can do

Brand awareness – Apple is well known for cool essential gadgets like the iPods,

ipad, macbook and Smartphone along great technological innovations like the

original Macintosh.

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Price – At £418, the i Phone would be sold at a reasonable price for its value. It

outperforms any other PDA or smart phone on the market and the convenience of

having multiple features combined into one-device increases its overall value.

Quality – The i Phone has one of the brightest and most scratch resistant screens in

the market. It also has a fine metallic finish that is durable and light. The software

suite included is also unsurpassed with their ease of use and resistance to computer

viruses.

Weakness: -

Image – The Apple brand is not targeted towards business people, which most smart

i-phones have targeted. Does not have a reputation as being compatible with the

corporate world.

Price – Apple does not yet offer lower priced models for more cost conscious

consumers.

User Interface – Touch screen interfaces suffer from the problem of “gorilla arm,” in

which long-term use of a flat, solid surface for input becomes uncomfortable.

Opportunity: -

Increasing demand and expansion to a new target segment – Apple will continue to

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target the business productivity market who wants an all in one computing solution.

But as technology advances and smart i-phones get cheaper companies also have a

great opportunity to target people who want entertainment. Apple will attract these

consumers and get iPod users to upgrade to i I-phones.

Upgradeable – Since software on the i Phone can be updated, it allows new exciting

features to be brought in which take advantage of the touch screen ability. Future

versions will also be hardware upgradeable.

Partnerships – Apple can collaborate with many powerful global mobile phone

companies to flood the market with iI-phones, which reduces costs in marketing and

increases revenue through long-term agreement deals.

Threats: -

Increased competition – Smart i-phones are easier to make now more than ever.

More companies may enter the market, given that there are few barriers to entry

other than patents. Competitors or even Apple contractors can maneuver around

patents to create similar devices.

Downward pricing pressure – The i Phone is marketed as a high-end phone, but

phone prices are almost certainly going to fall when other companies undercut the

price of i I-phones.

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8) Marketing mix:-

Product

According to philip Kotler a product is anything that can be offered to a market

for attention, acquisition, or use, or something that can satisfy a need or want.

Therefore, a product can be a physical good, a service, a retail store, a person, an

organisation, a place or even an idea. Products are the means to an end wherein

the end is the satisfaction of customer needs or wants.

Kotler states five product levels, the core benefit, the basic product, the expected

product, the augmented product and the potential product.

Source (Philip k 1969)

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Each level adds more customer value, and the five constitute a customer

value hierarchy. The most fundamental level is the core benefit: the

fundamental service or benefit that the customer is really buying. A i phone

purchaser is buying “entertainments and telecommunication”.

At the second level the marketer has to turn the core benefit into a basic

product. Thus a i phone manufacturer will include touch screen, camera,

other application, speakers etc.

At the third level, the marketer prepares an expected product, a set of

attributes and conditions buyers normally expect when they purchase this

product. I Phone buyers expect internet facility, good sound system, user

friendly instrument, good camera, good touch screen system.

At the fourth level, the marketer prepares an augmented product that exceeds

customer expectation. I phone manufacturer can include a good Wi-Fi

internet system, 10 mega pixel camera, and other advanced application.

At the fifth level stands the potential product, which encompasses all the

possible augmentations and transformations the product might undergo in the

future. Successful companies add benefits to their offering that not only

satisfy customers, but also surprise and delight them. Delighting is a matter of

exceeding expectations.

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Product name :- Apple iPhone 4

Brand:- Apple INC

Product specification:- (apple 2011)

Launch date:- 27 june 2010

Size and weight

Height:4.5 inches (115.2 mm) Width:2.31 inches (58.6 mm)

Depth:0.37 inches (9.3 mm) Weight:4.8 ounces (137 grams)

Location

Assisted GPD

Digital compass

Wi-Fi

Cellular

Power and battery

Built-in rechargeable lithium-ion battery

Charging via USB to computer system or power adapter

Talk time:

Up to 7 hours on 3G

Up to 14 hours on 2G

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 Standyby time: Up to 300 hours

Capacity

16GB or 32GB flash drive

Colour

Black

Display

Retina display

3.5-inch (diagonal) widescreen Multi-Touch display

960-by-640-pixel resolution at 326 ppi

800:1 contract ratio (typical)

500 cd/m2 max brightness (typical)

Fingerprint-resistant oleophobic coating on front and back

Support for display of multiple languages and characters simultaneously

Price:-

As Apple iphone is well known brand in domestic as well international market and has

covered maximum market share in Smartphone industry. Apple iphone 3 and iphone 3gs

were successful in market thus, apple at launching of iphone 4 decided to set their prices

on basis of market skimming pricing rather than premium pricing strategy.

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 Market skimming pricing is setting a high price for a new product to skim maximum

layer from the segment willing to pay the high price; the company fewer but more profit.

(Philip k.and gary.a, 2006,pp.353)

Whereas premium pricing is use a high price where there is uniqueness about the product

or service. This approach is used where a substantial competitive advantage exists.

(Philip k.and gary.a, 2006,pp.353)

Apple can use any 1 of the pricing strategy as their brand value and product were in

demand in market. Because of their new technology customer were willing to pay higher

price for the iphone 4. But as product goes old and other competitors enter the market

with same technology apple has to reduce their price to be in market. Thus, apple used

market skimming pricing strategy to cover maximum market share and revenue in

beginning and then to lower their price according to competition.

Current price of apple iphone 4 is 16GB is £510 and for 32GB £612.(apple store 2011)

Place

“Channels of distribution are set of interdependent organisations involved in the process

of making a product or service available for use or consumption” (Kotler P., thr1999. pp.

489-496). There are two types of distribution network 1) direct distribution channel 2)

indirect distribution channel.

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 Indirect Channel

The indirect channel is used by companies who do not sell their goods directly to

consumers. Suppliers and manufacturers typically use indirect channels because they

exist early in the supply chain. Depending on the industry and product, direct distribution

channels have become more prevalent because of the Internet.(Osmond Vitez, 2011)

Direct Channel

A direct distribution channel is where a company sells its products direct to consumers.

While direct channels were not popular many years ago, the Internet has greatly increased

the use of direct channels. Additionally, companies needing to cut costs may use direct

channels to avoid middlemen markups on their products. .(Osmond Vitez, 2011)

Indirect Channel Methods

Distributors, wholesalers and retailers are the primary indirect channels a company may

use when selling its products in the marketplace. Companies choose the indirect channel

best suited for their product to obtain the best market share; it also allows them to focus

on producing their goods. .(Osmond Vitez, 2011)

Direct Channel Methods

Selling agents and Internet sales are two types of direct distribution channels. Selling

agents work for the company and market their products directly to consumers through

mail order, storefronts or other means. The Internet is an easy distribution channel

because of the global availability to consumers. .(Osmond Vitez, 2011)

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Apple uses both types of distribution channel to sell their product in UK. As apple

doesn’t have any manufacturing plant in UK they have to import from USA. Apple has

their own online stores thus customer those who want to purchase iphone can order there.

Thus apple uses direct channel for such customer.

Apple also has almost 30 retail store in UK, hence they follow indirect distribution

channel to sell their final product to their customer.(apple store,2011)

As shown in the distribution Chart, Company uses both one level and two level

distribution channels to make available their product to end user.

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30
 Distribution channel of apple INC

Promotion

Promotion is all about companies communicating with customers. A business'

total marketing communications programme is called the "promotional mix" and

consists of a blend of advertising, personal selling, sales promotion and public

relations tools.(tutor2u, 2004)

1) Advertising

Any paid form of non-personal communication of ideas or products in the "prime

media": i.e. television, newspapers, magazines, billboard posters, radio, cinema

etc. Advertising is intended to persuade and to inform. The two basic aspects of

advertising are the message (what you want your communication to say) and the

medium (how you get your message across) (tutor2u, 2004)

(2) Personal Selling

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Oral communication with potential buyers of a product with the intention of

making a sale. The personal selling may focus initially on developing a

relationship with the potential buyer, but will always ultimately end with an

attempt to "close the sale".(tutor2u, 2004)

(3) Sales Promotion

Providing incentives to customers or to the distribution channel to stimulate

demand for a product. (tutor2u, 2004)

(4) Publicity

The communication of a product, brand or business by placing information

about it in the media without paying for the time or media space directly.

otherwise known as public relations. (tutor2u, 2004)

Apple has its own online store so they advertised their product there and

costumer easily get all information about the product from there. Mostly

advertisement of apple in UK is done by other telecommunication company such

as Vodafone, o2, virgin, and orange. These companies in order to sell their

telecommunication services gives i phone with their services on basis of

contract. This is the advertising approach used by apple in UK. This saves lots of

money for apple and ultimate aim to communicate the message to customer is

done by this telecommunication companies. Apple also have TV ads to promote

their product. Apple also use magazine advertisement to promote their product.

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 Apple also uses hoardings where image of product is displayed and detailed

information is written there. By putting such hoardings people who are walking

roadside can see the information and message can be conveyed to customer.

Apple uses promotional methods using special short-term techniques to

persuade members of a target market to respond or undertake their products.

Apple uses for sales promotions are money back guarantees, lower purchase

price and rebates etc. The Apples stores are very distinct and captivating from

many other electronic stores because they display all of their products for

consumers to experience hands-on. Consumers are allowed to surf the web on

any of their computers, listen to the latest ipods, and experience the iPhone and

its features. This lets consumers get comfortable with the products and

familiarize themselves with it. This is a major consumer sales promotion that

Apple has developed.(apple INC, 2009)

As most of the user of iphone are college student age group from 17 to 22,

company should promote their product mostly to this group but we not found out

any such activities carried by apple group.

As apple iphone are loaded with latest technology and its has covered most of

the market, that’s why they are always there in media or news. This promote

apple product to graeter context.

9) Marketing approaches:-

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 Segmentation, targeting, and positioning together comprise a three stage

process. We first (1) determine which kinds of customers exist, then (2) select

which ones we are best off trying to serve and, finally, (3) implement our

segmentation by optimizing our products/services for that segment and

communicating that we have made the choice to distinguish ourselves that way.

(Sources: USC marshall ,2009)

Segmentation :-

Type of segment Variable

Demographic Age, Gender, Occupation, Income

Geographic Region, Population density, climate

Psychographic Social class, Life style, personality

Behavioural Degree of loyalty, Type of User

Source: Dibb and et al, (2001)

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 Apple i Phone 4 come under Smartphone segment and classified under unsought

goods. Thus, it requires lots of things to consider while purchasing it though it

requires more attention of Apple INC. Apples target segments consist of

professionals, students, corporate users, entrepreneurs, and health care workers.

Demographic:-

Age: - Apple i Phone 4 targets younger customer and with high income earning

group.

Sex: - As it is a Smartphone it can be used by both male and female. Thus apple

group concentrate on both group.

Religion: - As UK is a demographic country generally companies do not segment

their product according to religion.

Occupation: - as i Phone 4 is a Smartphone it targets the corporate people.

Geographic: -

Country: - As apple INC is an American company but still it sales their product in

almost 106 countries in world. And for Europe it covers 36 countries.

Region: - In UK there 4 key markets (England, northern Ireland, Wales,

Scotland ) and apple group covers all 4 markets in UK.

Psychographic: -

Social class: - As in UK there is basically three group low earning income,

medium earning income, high earning income group. Apple INC concentrates on

high income earning group.

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 Life style: - As i Phone 4 is a highly technological phone, company targets the

customer which are interested in using new technology.

Occasion:- It’s a human psychology that to buy some new thing on some

occasion thus considering this apple group try to attract such customer and to have

maximum sell at this time.

Benefits: - as i Phone 4 is a latest Smartphone customer do not buy just to use it

but it also shows image and status in society.

Targeting :-

‘’The decision about which market segment(s) a business decides to prioritise for

its sales and marketing efforts.’’(Dibb and et al, 2001)

I Phone’s marketing strategy is to differentiate the i Phone from other PDA’s on

the market. I phone’s primary customer targets is the middle-upper income

professional that need one portable device to coordinate their busy schedules and

communicate with colleagues, friends and family. I phone’s secondary consumer

targets are high school, college and graduate students who need one portable

multifunction device. Mainly this market will be replacing their iPod and cell

phone with the iPhone.

Apple group uses concentrated marketing strategy for targeting their customer.

“Concentrated marketing is a market coverage strategy in which firm goes after a

large share of one or few segment or niches”(Philip k. And gary a. b, 2006, pp

231). Apple group uses this strategy to attract the customer who are interested in

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 store information and communicate or people who want entertainment on the go.

By using such strategy apple targets

Segments consist of professionals, students, corporate users, entrepreneurs, and

health care workers with age group between 16 to 40.

Positioning :-

Positioning is the process of creating an image for a product in the mind of target

customer.

Source: USC marshall (2009)

Using product differentiation, Apple group positioned the iPhone 4 as the

versatile, convenient, value-added device for personal and professional use. The

marketing strategy will focus on the convenience of having one device for

communication, but also music, pictures, and video, and full Internet access. The

iPhone will be promoted as both professional and hip.

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Currently Apple i Phone 4 is in maturity stage generating maximum profit for

company. But soon apple i Phone 4 is going to decline stage because apple group

is going to launch i Phone 5 in July 2011.

Current position of apple i Phone 4 in product life cycle:-

Perpetual mapping ( kotler, p., 1999)

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As apple i Phone 4 is made up of latest technology, it is positioned in high price and high

technology group.

COMPANY PROFILE

Type Business unit

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Industry Telecommunication

Founded Seoul, South Korea 1977

Headquarters Suwon, Shout Korea

Area served Worldwide

Key people Geesung choi, President

Products Mobile i-phones

Smart i-phones

Telecommunication system

MP3 Player, Laptop computers

Revenue US$ 21.1 billion (2007)

Net income US$ 2.3 billion (2007)

Employees 344,000 (2010)

Website Samsung consumers

HISTORY

Unlike other electronic companies Samsung origins were not involving electronics but

other products.

In 1938 the Samsung's founder Byung-Chull Lee set up a trade export company in Korea,

selling fish, vegetables, and fruit to China. Within a decade Samsung had flour mills and

confectionary machines and became a co-operation in 1951. Humble beginnings.

From 1958 onwards Samsung began to expand into other industries such as financial,

media, chemicals and ship building throughout the 1970's. In 1969, Samsung Electronics

was established producing what Samsung is most famous for, Televisions, Mobile I-

phones (throughout 90's), Radio's, Computer components and other electronics devices.

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1987 founder and chairman, Byung-Chull Lee passed away and Kun-Hee Lee took over

as chairman. In the 1990's Samsung began to expand globally building factories in the

US, Britain, Germany, Thailand, Mexico, Spain and China until 1997.

In 1997 nearly all Korean businesses shrunk in size and Samsung was no exception. They

sold businesses to relieve debt and cut employees down lowering personnel by 50,000.

But thanks to the electronic industry they managed to curb this and continue to grow.

The history of Samsung and mobile i-phones stretches back to over 10 years. In 1993

Samsung developed the 'lightest' mobile phone of its era. The SCH-800 and it was

available on CDMA networks.

Samsung has made steady growth in the mobile industry and are currently second but

competitor APPLE is ahead with more than 100% increase in shares.

41
Samsung Telecommunications

Samsung Telecommunications is one of five business units within Samsung Electronics,

belonging to the Samsung Group, and consists of the Mobile Communications Division,

Telecommunication Systems Division, Computer Division, MP3 Business Team, Mobile

Solution Centre and Telecommunication R&D Centre. Telecommunication Business

produces a full spectrum of products from mobiles and other mobile devices such as MP3

players and laptop computers to telecommunication network infrastructure. Headquarters

is located in Suwon, South Korea.

In 2007 Samsung Telecommunication Business reported over 40% growth and became

the second largest mobile device manufacturer in the world. Its market share was 14% in

Q4 2007, growing up form 11.3% in Q4 2006. At the end of November 2011, Samsung

sold more than 300 million mobile devices and set still in second after APPLE with 300.6

million mobile devices sold in the first three quarter of 2011.

Subsidiaries and affiliates

As of April 2011, Samsung Group was comprised of 59 unlisted companies and 19 listed

companies, all of which had their primary listing on the Korea Exchange stock exchange.

Company Symbol Company Symbol

Samsung Corporation 000830 Shilla Hotels and Resorts 008770
Samsung Securities 016360 Samsung Fine Chemicals 004000
Samsung SDI 006400 SI Corporation 012750
Samsung Electro-Mechanics 009150 Samsung Fire & Marine Insurance 000810
Samsung Engineering 028050 Samsung Electronics 005930
Samsung Techwin 012450 Samsung Life Insurance 032830
Cheil Industries 001300 Samsung Card 029780
42
Samsung Heavy Industries 010140 Cheil Worldwide 030000
Market Korea 122900 Credu 067280
Ace Digitech 036550

Samsung Vision

Samsung India's Vision entails helping people improve the quality of their lives by

providing them with superior quality, state-of-the- art technology products at the

right time and the right price. But b e y o n d i t s r o l e a s a p u r v e y o r o f q u a l i t y

p r o d u c t s i n I n d i a , Samsung seeks to contribute to the economic growth of the

country though its export commitments and large scale production facilities generating

secured employment for hundreds of Indian people. At Samsung, we strive to contribute

to the development of the electronics a n d c o m p o n e n t s i n d u s t r y i n I n d i a b y

e n h a n c i n g t h e k n o w l e d g e l e v e l s o f o u r w o r k f o r c e through the introduction

of our advanced management systems and production know-how in our

m a n u f a c t u r i n g facilities by introducing our Indian vendors to our world class

quality systems and helping them in improving them in their own quality

systems and production processes and setting benchmarks for the industry both in terms

of after sales service for our products, quality systems and management techniques at our

facilities or our products themselves. At Samsung, we believe in returning to the

community some of the profits we earn from it, through the social causes we espouse. We

view ourselves not as an MNC operating in India, but as an 'Indian Company'

operating here, conforming to the laws of the country and committed to working

for the Indian community. We want and to be seen as the 'Most Respected' Indian

Company.

43
44
 CHAPTER - III

RESEARCH METHODOLOGY

45
 RESEARCH METHODOLOGY

Research is the systematic and objective search for the analysis of the information

relevant to the identification and solution of any problem in the field of channel

development. The objective behind this project was to get a deep insight into the answers

To the questions “what are the general problem faced by the subscribers and

what they expect from mobile handsets providers and study of current mobile market”.

The object of the survey was the mobile users of various mobile companies.

The essence of research conducted by us is to analyze the present market position of

APPLE & Samsung mobiles among its competitors and the problem which are being

faced by customer, wholesaler, and retailers. The eventual objectives are to suggest some

recommendation to the company so as to enable them to increase their market share.

Only in analyzing my sample follows no conventional method. The total analyze is based

on the internees the question put on before our sample size. A research of this can’t be

done all once through large area in limited time so NABHA has been selected for

research.

STEPS IN MARKETING RESEACH PROCESS

 DEFINE PROBLEM AND RESEARCH OBJECTIVES

 DEVELOPING THE RESEARCH PLAN

 COLLECTION OF DATA
46
  PRESENTATIONS OF THE FINDINGS

RESEARCH OBJECTIVES

 Get knowledge about APPLE mobiles and Samsung mobiles.

 Customer satisfaction about using their handset.
 Sale of products.
 Know about sale pattern.

DEVELOPING THE RESEARCH PLAN

The second step of marketing research process calls for developing the most efficient

plan for gathering the need information. While designing a research plan we have to take

decisions regarding data sources, search approached, search instruments, sampling etc.

there are two plan contact which are as follows:-

1. DATA SOURCE

There are two type of data source:

 Primary data
 Secondary data

Primary data :
Personal interviews are conducted which enable collection of oral verbal

response. This is fact to face contracted with structured or sometime even unstructured

patterns. This helps in obtaining indent information.

Secondary data:
Secondary data can be obtained from different magazines and annual

reports, financial documents referred.

2. RESEARCH APPROACH
47
 SURVEY METHOD:-
Survey are best suited for descriptive research companies which undertake surveys to

learn about people’s knowledge, preferences, satisfaction etc. to measure these

magnitude in general population. While observation and tours are best suited for

exploratory research which is not the case of our study.

3. RESEARCH INSTRUMENT
Questionnaire: A Questionnaire is prepared and use to collect the information. The

majority of questions are close ended. Questionnaire is distributed to people to know

about their preferences, quality, demand etc. this is one of the easiest method of

collecting information.
4. SAMPLING PLAN

After deciding on the research approach and instrument, we must design a

sampling plan. This plan calls for three decisions.

a) Sampling unit:- Here we define what is to be surveyed i.e. the target

population that will be sampled. In our case the journal public in cities

& towns come under the sampling unit.

b) Sample size:- Large sample give more reliable results. In our study 50

customers were surveyed in LUCKNOW.

c) Sampling Procedure:- area sampling is using because it is not

practically possible to visit all places of India therefore LUCKNOW

chosen for survey.

5. CONTACT METHOD

In this decision is taken that how the object should be contacted i.e. whether

by mail questionnaires, telephone, interviews. In our research personal

interview is the most convenient and reliable method.

6. COLLECTION OF THE INFORMATION

48
 The data collection phase of the marketing research is most expensive and

most error prone process. There can be error some respondent can give biased

or dishonest answer from collection of information. The researcher personally

goes to customer to collect the reliable data. Here all knowledge of the

researcher about that field comes to test the ingenuity of the research.

Here we got the experience of working professionally and independently on

the road which gives some taste of practical marketing. We also got a lot

exposure about the market. The present study undertake is descriptive in

nature and in this study questioning people with regular expertise in that are

being used.

Limitations of Research:-
The research was subjected to following limitations:-
 The survey can not be termed 100% accurate due to lack of time.
 The lack of candidates of respondent towards answering the

Questionnaire in few cases may have reduced the accuracy of survey

to some extent.
 There is more measure to check out whether the information provided

by the consumer is correct or not.

OBJECTIVES OF THE STUDY

The subject matter for this research Project is to study the consumer behavior towards the

APPLE & SAMSUNG mobiles. This project consists of different objectives. They are as

follows::-

49
 To know about the consumer preference level associated with APPLE &

SAMSUNG mobiles.
 To find out the customer satisfaction towards APPLE & SAMSUNG
 To know which advertisement media puts more impact on the buying decision of

customer.

50
 Chapter - VI

Analysis and Interpretation of Data

51
 ANALYSIS & INTERPERATION

1. Which model is best?

Answer Percentage(%)

Apple 60

Samsung 40

INTERPRETATION

Out of 100 respondents 60 says APPLE mobile i-phones are best while 40 were says

Samsung.

2. Why do you prefer APPLE or Samsung?

52
 Answer Percentage(%)

Feature 36

Look 12

Quality 37

Price 15

INTERPRETATION

Out of 100 respondent 36 prefer their mobiles for features, 12 prefer look , 37 prefer their

mobile quality & 15 prefer their price in the market.

3. Which provide you better touch?

Answer Percentage(%)

53
Apple 53

Samsung 47

INTERPRETATION

Out of 100 respondent 53 says APPLE touch is better while 47 says Samsung.

54
4. Which among has more features?

Answer Percentage(%)
Apple 61
Samsung 39

INTERPRETATION

Out of 100 respondent 61 says APPLE has more features rather than Samsung.

55
5. Are you satisfied with price of APPLE or Samsung?

Answer Percentage(%)
Yes 78
No 22

INTERPRETATION

Out of 100 respondent 78 respondents are satisfied with their particular mobile

while only 22 were not satisfied.

6. Which among these provide you better after sale?

Answer Percentage(%)
Apple 74
Samsung 26

56
 INTERPRETATION

Out of 100 respondents 74 says APPLE provides better service after sale while only 26

says Samsung.

7. What will more prefer in APPLE or SAMAUNG NOTE?

Answer Percentage(%)
Apple price less than Samsung 34
Look 54
Weight 12

57
INTERPRETATION

Out of 100 respondent 34 prefer APPLE Lumia 800 because their price less than

Samsung Note, while 54 prefer their models because of their Look, & 12

respondents prefer their models for weight.

58
8. Which provide good battery back-up?

Answer Percentage(%)
Apple 69
Samsung 31

INTERPRETATION

Out of 100 respondent 69 says APPLE provides better battery back-up while 31

says Samsung.

9. Which provide more accessories with it?

Answer Percentage(%)
Apple 55
Samsung 45

59
INTERPRETATION

Out of 100 respondent 55 says APPLE provide more accessories with it while

only 45 says Samsung provide more accessories with it.

60
10. Which would you prefer business point of view?

Answer Percentage(%)
Apple 55
Samsung 45

INTERPRETATION

Out of 100 respondent 55 says APPLE handsets best business point of view while

only 45 says Samsung mobiles business point of view.

11. Which among these have more models and design?

Answer Percentage(%)
Apple 55
Samsung 45

61
INTERPRETATION

Out of 100 respondents 55 says APPLE gives more models & designs while other

45 respondents in favors of Samsung.

12. Which gives better camera celerity?

Answer Percentage(%)
Apple 62
Samsung 38

62
INTERPRETATION

Out of 100 respondents 62 says APPLE gives better camera celerity while only 38

respondents Samsung gives better camera celerity.

63
13. Which give more GPRS speed?

Answer Percentage(%)
Apple 58
Samsung 42

INTERPRETATION

Out of 100 respondents 58 says APPLE give more GPRS speed while other 42 in

favors of Samsung.

14. Which cell companies have better sound quality?

Answer Percentage(%)
Apple 69
Samsung 31

64
INTERPRETATION

Out of 100 respondents 69 say APPLE have better sound quality & other 31 says

Samsung provide better sound.

65
15. Which company provides best dual sim i-phones?

Answer Percentage(%)
Apple 15
Samsung 79
Others 6

INTERPRETATION

Out of 100 respondent 79 in favors of Samsung &

15 say APPLE provides better dual sim i-phones & only 6 in ther favors of other

companies.
16. Which company provides better 3G/WI-Fi services?

Answer Percentage(%)
Apple 60
Samsung 40

66
INTERPRETATION

Out of 100 respondents 60 says APPLE provides better 3G/Wi-Fi services while

only 40 in the favors of Samsung.

67
17. Which model is comfort caring?

Answer Percentage(%)
Apple 67
Samsung 33

INTERPRETATION

Out of 100 respondents 67 says APPLE mobiles are comfort caring while only 33

says Samsung mobiles are comfort caring.

68
 18. Which companies provide more models with touch & keypad?

Answer Percentage(%)
Apple 45
Samsung 55

INTERPRETATION

Out of 100 respondents 55 says Samsung provide more models with touch & keypad

while 45 says APPLE provide more models with touch & keypad.

69
19. Which company provides better flap i-phones?

Answer No: people

Apple 70
Samsung 30

INTERPRETATION

Out of 100 respondent 70 says APPLE provide better Flap i-phones while 30 says

Samsung provide better flap i-phones.

70
20. Which companies provide more service sale counter nearby?

Answer No; of people

Apple 69
Samsung 31

INTERPRETATION

Out of 100 respondent 69 says APPLE provide more service sale counter nearby

while only 31 in the favors of Samsung.

21. Which company has more cell memory storage?

Answer Percentage(%)
Apple 68
Samsung 29

Other 3

71
 INTERPRETATION

Out of 100 respondents 68 says APPLE mobiles has more memory storage & 29

respondents says Samsung mobiles while only 3 respondents in favors of others.

22. Which company have technical maintain & additional (like long life)?

Answer Percentage(%)
Apple 65
Samsung 35

72
 INTERPRETATION

Out of 100 respondents 65 in the favors of APPLE & only 35 in favors of Samsung.

23. Which are reasons for using LUMIA 800 or SAMSUNG NOTE?

Answer Percentage(%)
Wap 21
Just to talk it 18
Download files 13
GPRS function 12
Receive mails 20
Others 16

73
INTERPRETATION
Out of 100 respondents 21 says they using their mobile models reason because of

good wap service , 18 using just to talk it , 13 using for download files , 12 in the

favor of GPRS function , 20 says they using their mobile models because their

handsets have receiving the mails , 16 respondents in the favors of Others.

24. Why do you like brand you choose?
Answer Percentage(%)
Function 26
Advertisement 20
Brand name 19
Quality 19
Price 14
Appearance 02

74
INTERPRETATION

Out of 100 respondents 26 like their brand because of their functions , 20

respondents choose their brand because of Advertisement , 19 in the favors of
Brand name , 19 in the favors of quality , 14 in the favors of Price , & only 2
like respondents like their brand because of Appearances.

75
25. What kind of model do you prefer?

Answer Percentage(%)
Slim 33
Thick 25
Light 14
Medium 11
Large 11
Heavy 06

INTERPRETATION
Out of 100 respondents 33 says they prefer Slim models , 25 prefer thick

handsets , 14 respondents prefer light mobiles , 11 prefer medium , 11 prefer

large handsets & only 6 respondents says they prefer Heavy mobiles.

76
 Chapter - V :

Findings, Conclusion and Suggestions

77
 FINDINGS AND SUGGESTIONS

Few years back mobile phones were not common among the consumer.

But with the mobile revolution now we can find almost every consumer

with mobile phone.

Most of the consumer prefers APPLE then SAMSUNG because brand value of

APPLE is more than SAMSUNG.

Mostly the consumers are satisfied with the services provided by the

different mobile companies.

Maximum numbers of respondents were attracted towards the price

& battery and the least like the style and memory.

Maximum number of consumer are loyal to their particular

service providers and they were using there mobile since 1 to2 years.

78
 CONCLUSION

 Working on APPLE & Samsung project gave me an opportunity to

apply my skills and knowledge, which I had gained previously.

 It gave us an opportunity to see working an organization.

 It was an amazing experience with learning all the way, which help us

to brush up our knowledge.

79
BIBLIOGRAPHY

80
 BIBLOGRAPHY
BOOKS:-

Marketing research – G.C.Beri

Research Methodology – C.R.Kothari
Principal of Marketing – Philip Kotler.

WEB RESOURCES:-

www.Apple .com
www.samsung.com
www.google.com
www.yahoo.com
www.scribd.com
www.thestalwart.com

ANNEXURE

81
 ANNEXURE

SECTION A PERSONAL INFORMATION

1. Name ______________________

2. Gender

○ Male ○ Female

3. Age

□ 10-20 □ 30-50

□ 20-30 □ 50 & Above

4. Marital Status

◊ Single ◊ Married

5. Educational Status

□ Matric □ 10+2

□ Graduation □ Post-Graduation

6. Occupation

◊ Self Employee ◊ Professional

◊ Student ◊ Others

7. Income Level

82
 ◌ < 10000 ◌ < 20000

◌ < 40000 ◌ > 40000

8. Residence

□ Urban □ Rural

9. Contact No: ________________

10. E mail id:

SECTION B ABOUT MOBILE

1. Which model is best ?

□ APPLE

□ Samsung

2. Why do you prefer APPLE or Samsung ?

∆ Best features ∆ Best look

∆ Best Quality ∆ Price

3. Which provide you better touch?

‫ ﬦ‬Apple

‫ ﬦ‬Samsung

83
 4. Which among has more features?

Ὸ Apple

Ὸ Samsung

5. Are you satisfied with price of APPLE or Samsung?

⌂ Yes

⌂ No

6. Which among these provide you better after sale service?

∆ Apple ∆ Samsung

7. What will be more preferred in APPLE LUMIA 800 or Samsung NOTE?

⌂ Lumia price less then Samsung Note

⌂ Look

⌂ Weight

8. Which provide good battery back-up?

⌂ Apple ⌂ Samsung

9. Which provide more accessories with it?

○ Apple ○ Samsung

10. Which would you prefer for business point of view?

◊ APPLE ◊ Samsung

11. Which among these have more models & designs?

□ Apple □ Samsung

84
12. Which gives better camera clarity?

‫ ﬦ‬Apple ‫ ﬦ‬Samsung

13 Which gives more GPRS speed ?

∆ Apple ∆ Samsung

14 Which cell companies have better sound quality?

⌂ Apple ⌂ Samsung

15 Which company provides best Dual sim cell i-phones?

⌂ APPLE ⌂ Samsung

16 Which companies provide better 3G/WI-Fi services?

◊ Apple ◊ Samsung

17 Which mobile is comfort carriying?

◊ Apple ◊ Samsung

18 Which company provides a more models with touch screen & keypad?

⌂ Apple ⌂ Samsung

19 Which company provides better flap cell i-phones?

⌂ Apple

⌂ Samsung

20 Which company provides more Service sale counter nearby?

○ APPLE ○ Samsung

21 Which companies have a more cell memory storage?

85
○ Apple ○ Samsung

22 Which companies have technical maintaince & additional (like long life)?

□ Apple □ Samsung

23 Which are the reasons for using the APPLE LUMIA 800 or SAMSUNG NOTE?

◊ Wap ◊ GPRS functions

◊ Just to talk on it ◊ Receive email & Mms

◊ Download files ◊ others

24 Why you like brand you choose above?

∆ Advertisement ∆ Appearance

∆ Functions ∆ Price

∆ Brand Name ∆ Quality

25 What kind of model you prefer?

⌂ Slim ⌂ Medium

⌂ Thick ⌂ Light

⌂ Large ⌂ Heavy

86