A PROJECT REPORT

ON

CASE STUDY OF NOKIA & SAMSUNG

COMPARATIVE ANALYSIS BETWEEN NOKIA & SAMSUNG

Submitted to:-

JAGANNATH INSTITUTE OF MANAGEMENT SCIENCES

Under the supervision:- Presented by:-

Mrs. Smriti Dua Mohita shukla

Pooja mittal

Ankita Badula

Mehak Arora

Gauri Kansal

Ankit Biyani

Tanuj Jain

Divyanshu Arora

Nikhil Dua

Rohit Sharma

BBA 2nd Semester

SESSION 2009-2012
JaganNath Institute of Management Sciences, Rohini
Delhi-110085

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 ACKNOWLEDGEMENT

Survey is an excellent tool for learning an exploration no classroom routine can

substitute which is possible while working in real situations application of the article
knowledge to practical situations is the bonanzas of this survey.
Without a proper combination of inspection and perspiration, it’s not easy to achieve
anything. There is always a sense of gratitude, which we express to other for the help
and the needy sevice they render during the development of this project.
First of all we wish to express my profound gratitude & sincere thanks to my
esteemed learned Director who allowed me to conduct the survey.
We would like to thank my lect. Mrs. Smriti Dua who has always there to help and
guide me when we needed help. His perceptive criticism kept me working to make the
project more full proof. We thankful to her for her encouraging & enriching
experience for me. We very thankful to him for all the addition & enhancement done
to us.
No words can adequately express our overriding debt of gratitude to my parents
whose support help me in all the way above all I shall thank all my friends….!

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1.1. TABLE OF CONTENTS

CONTENTS PAGE NO.

CHAPTER 1 – INTRODUCTION 3-22
1.1. Overview of Industry as a whole 3
1.2. Profile of the Organization 8
1.3. Problems of the Organization 16
1.4. Competition Information 17
1.5. S.W.O.T Analysis of the Organization 22

CHAPTER 2 - OBJECTIVES & METHODOLOGY 23-28

2.1. Significance 24
2.2. Managerial usefulness of the study 25
2.3. Objectives 26
2.4. Scope of the Study 26
2.5. Research Methodology 27

CHAPTER-3 CONCEPTUAL DISCUSSION 29-60

CHAPTER-4 DATA ANALYSIS 61-73

CHAPTER-5 FINDINGS & RECOMMENDATIONS 74-82

ANNEXURE

APPENDIX

BIBLIOGRAPHY

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 CHAPTER-1-

INTRODUCTION

OVERVIEW OF INDUSTRY AS A WHOLE

In today's world, most people communicate through the use cellular phones. It's hard
to believe that fifteen years ago cell phones were a rarity. Below is a history
chronicling the dawn of the cell phone to its current state. 1843-Faraday exposed his
great advances of nineteenth-century science and technology and his discoveries have
had an incalculable effect on technical development toward cellular phone
development.

1865 - Dr. Mahlon Loomis of Virginia, a dentist, may have been the first person to
communicate through wireless via the atmosphere. Between 1866 and 1873 he
transmitted telegraphic messages at a distance of 18 miles between the tops of
Coshocton and Beorse Deer Mountains, Virginia.
1973 - Dr Martin Cooper is considered the inventor of the first portable handset. Dr.
Cooper, former general manager for the systems division at Motorola, and the first
person to make a call on a portable cellular phone.

1973 - Dr. Cooper set up a base station in New York with the first working prototype
of a cellular telephone, the Motorola Dynastic. Mr. Cooper and Motorola took the
phone technology to New York to show the public.

1977 - Cell phones go public. Public cell phone testing began. The city of Chicago
was here the first trials began with 2000 customers and eventually other cell phone
trials appeared in the Washington D.C. and Baltimore area. Japan began testing
cellular phone service in 1979.

1988 - This year changed many of the technologies that had become typical in the
past. The Cellular Technology Industry Association (CTIA) was developed to lay
down practical goals for cellular phone providers. According to the Cellular
Telecommunications Industry Association, today there are more than 60 million

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customers with cellular phones, even though wireless service was just invented nearly
50 years ago. The cellular business was a $3 million market 25 years ago and has
grown increasingly to close to a $30 billion per year industry

About the Industry

The cell phone industry has evolved greatly in the past 10 years. 10 years ago only the
rich could afford cell phones, and they looked like boxes more than some thing that
could fit in your pocket. “Today, more people have cell phones than fixed telephone
lines, both in the United States and internationally. There are more than one billion
cell phone users worldwide." Cell phones have now become a part of every day life.
Without cell phones we would be lost in our high tech world. Americans spend 7
hours a month on cell phones. The effects of new technology have had positive effects
in school, too. Cell phone use is getting more and popular. "Some 85 million U.S.
residents—30 percent of the population—have joined the mobile-phone revolution.”
There are already 1 billion cell phone users world wide. Between 2010 and 2020 it
will be hard to find a person with out a cell phone.

They are now bought for the fact that they are used in emergency situations. “Nearly
156,000 wireless emergency service calls were made every day—about 108 calls per
minute.” Parents are now buying them for their children so they know where they are
all the time. Every company has their different Marketing Strategies. Now I am going
to discuss the Marketing strategies of Nokia.

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India’s Tele-density in January 2008 neared 12% with the subscriber base nearing the
130mn mark. During January 2008, record 5mn subscribers were added as against
4.92mn subscribers in December 2007. This strong growth could be attributed to
lifetime validity cards launched by almost all operators. During the first 10 months of
FY06, 31.41mn subscribers have been added. In the fixed segment, a total of 0.28mn
subscribers were added during January 2008, taking the subscriber base of fixed line
services to 49.21mn. In the mobile segment, total additions during the month summed
up to 4.69mn with highest ever GSM additions of 3.52mn and CDMA additions of
1.17mn. During the first 10 months of FY08, 28.39mn subscribers have been added
Telecom Industry in India

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Nokia 60%
Motorola 10%
Siemens 02%
Sony Ericsson 03%
Samsung 10%
Philips 10%
Others 05%

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 60%
60%

50% Nokia
Motorola
40%
Siemens
30% Sony Ericsson
Samsung
20%
Philips
10% 10% 10%
10% Others
5%
2% 3%
0%

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9
1.2. PROFILE OF THE ORGANIZATION
Company Profile
Nokia's history starts in 1865, Due to the European industrialization and the growing
consumption of paper and cardboard Nokia soon became successful. Nokia’s Cable
Work's Electronics department started to conduct research into semiconductor
technology in the 1960´s. This was the beginning of Nokia’s journey into
telecommunications.

Nokia today is a world leader in mobile communications, driving the growth and
sustainability of the broader mobility industry. Nokia connects people to each other
and the information that matters to them with easy-to-use and innovative products like
mobile phones, devices and solutions for imaging, games, media and businesses.
Nokia provides equipment, solutions and services for network operators and
corporations. The company includes four business groups; Mobile Phones;
Multimedia; Networks and Enterprise Solutions. In this project I will be focusing only
on the mobile Phone business of Nokia in India.

Nokia Corporation engages in the manufacture of mobile devices and mobile

networks. It also provides equipment, solutions, and services for network operators,
service providers, and corporations. The company operates in four segments: Mobile
Phones, Multimedia, Enterprise Solutions, and Networks. The Mobile Phones
segment offers mobile phones and devices based on GSM/EDGE, 3G/WCDMA, and
CDMA cellular technologies. The Multimedia segment enables to create, access, and
share multimedia in the form of advanced mobile multimedia computers and
applications with connectivity over multiple technology standards. The Enterprise
Solutions segment offers various products and solutions, including enterprise-grade
mobile devices, underlying security infrastructure, software, and services for
businesses and institutions. The Networks segment provides network infrastructure,
communications, and networks service platforms, as well as professional services to
operators and service providers. It focuses on the GSM family of radio technologies;
networks with Internet Protocol and multi access capabilities; and professional
services. The company also develops mobile WiMAX solutions. Nokia sells its

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products to operators, distributors, independent retailers, and corporate customers. It
has its operations in Europe, the Middle East, Africa, China, the Asia-Pacific, North
America, and Latin America. The company was founded in 1865 and is based in
Espoo, Finland.

Vision: Life Goes Mobile

 Ten years ago, Nokia had a vision that seemed revolutionary for the times: Voice
Goes Mobile! As history shows, this vision became reality in an incredibly short
amount of time. With more than 1.6 billion mobile phone subscriptions globally –
and more mobile phones than fixed-line phones in use – shows that mobility has
transformed the way people live their lives

Business Mission: Connecting People

 By connecting people, they help fulfill a fundamental human need for social
connections and contact. Nokia builds bridges between people – both when they
are far apart and face-to-face – and also bridges the gap between people and the
information they need.

As a market leader, the best contribution we can make to the global community is to
conduct our business in a responsible way. This belief drives our commitment to
creating ethically sound policies and principles that guide us in our work. Our
Corporate Responsibility (CR) agenda is framed around the Nokia Values and is
carried out in all aspects of our work to ensure customer satisfaction and respect, and
also to assist us in embracing renewal and striving for achievement. By striving to
include all members of Nokia's community in this process, we are demonstrating our
overall commitment to the belief that responsibility is everybody's business. In this
section you will find information about our strategy and approach, navigating the

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links above will give you more concrete information on our Corporate Responsibility
activities.

Our vision is a world where everyone is connected. With mobile subscriptions about
to reach four billion, we are closer to our vision than anyone could have imagined just
a few years ago. Our business benefits people, communities and the environment in
new and exciting ways. As our business expands, so do our responsibilities. This
sense of corporate responsibility (CR) is a fundamental part of who we are.
Considering the wider impact of our actions is embedded in the Nokia Values, which
guide our behavior, and in the Nokia Code of Conduct, which gives guidance to our
everyday work. Global challenges such as climate change and poverty concern us all.
As a business that affects the lives of billions around the world, Nokia is in a key
position to offer solutions to these challenges. We bring the benefits of mobile
technology to more people in ways that reflect our values and our responsibilities.

Our impacts
Nokia is the world's number one manufacturer of mobile devices by market share and
a leader in the converging Internet and communications industries.
We make a wide range of devices for all major consumer segments and offer Internet
services that enable people to experience music, maps, media, messaging and games.
We also provide comprehensive digital map information through NAVTEQ and
equipment, solutions and services for communications networks through Nokia
Siemens Networks. In 2008, Nokia's net sales were EUR 50.7 billion and operating
profit was EUR 5.0 billion. At the end of 2008, we employed more than 128,445
people; had production facilities for mobile devices and network infrastructure around
the world; sales in more than 150 countries; and a global network of sales, customer
service and other operational units.

Corporate responsibility
Corporate responsibility is a fundamental element in Nokia’s business, brand and
culture. Nokia aims to set the standards for the industry through initiatives that not
only make a positive impact, but also make good business sense. The Nokia Code of

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Conduct commits us to uphold high ethical principles in everything we do. We respect
the principles set in Universal Declaration of Human Rights and by the International
Labor Organization and the United Nations Global Compact. Communications is a
relatively "clean’ industry. It is not a high energy user, does not generate substantial
pollution, and does not endanger people or communities. But a responsible business
needs to address its impacts and aim to make a positive contribution wherever
possible. Environmental issues are our main priority. Climate change is a serious
threat which requires everyone to contribute to building a low carbon economy. We
believe that strong, early action is necessary and that we have an opportunity to make
a contribution to tackling climate change beyond the impact of our operations and our
products. Our environmental strategy sees Nokia among the world’s leading
companies for all aspects of environmental performance. We have three priorities:
energy efficiency, managing substances in our products, and take-back and recycling.
We are also focusing on developing mobile services to promote more sustainable
lifestyles. Reflecting this prioritisiation, our environmental data can be found in its
own section here. We have also set high ethical standards for our supply chain and
our own factories. We seek to provide consumers with accessible high quality
products that meet their needs and to trade with our customers responsibly. Above all,
we aim to make a positive contribution to society at the local and global level. Please
refer to our key Issues for information on how we identify our most important
impacts.

Our values
The Nokia Way and Values: A flat, networked organization and speed and
flexibility in decision-making characterize the Nokia Way of working. Equal
opportunities and openness towards people and new ideas are also key elements we
want to nourish. Nokia is straightforward when dealing with customers and suppliers,
and we always looks for innovative ways of creating and introducing products and
solutions to the market. We provide individuals with a platform for personal growth in
a challenging environment with a clear vision, goals and shared management
principles - the Nokia Way. The Nokia Way brings together talented individuals who
share these principles, and therefore share success. The values of our company make
us different. They provide a sense of direction for consistent behaviour as employees

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and citizens of the world, and in our quest to become more of an internet company.
Through extensive employee engagement, we have renewed our values to reflect our
business and changing environment. They act as a foundation for our evolving culture
and are the basis of our operational mode. Living up to our values every day is our
shared philosophy.

Engaging you: For us, ‘engaging you’ incorporates the ‘customer satisfaction’ value
and deals with engaging all our stakeholders, including employees, in what Nokia
stands for in the world.

Achieving together: ‘Achieving together’ is more than collaboration and partnership.

As well as trust, it involves sharing, having the right mind-set and working in formal
and informal networks.

Passion for innovation: ‘Passion for innovation’ is based on a desire we have to live
our dreams, to find courage and make the leap into the future through innovation in
technology, ways of working and through understanding the world around us.

Very human: Being ‘very human’ encompasses what we offer customers, how we do
business and the impact of our actions and behavior on people and the environment. It
is about being very human in the world - making things simple, respecting and caring.
In short, our desire is to be a very human company. For more information on the
Nokia Way and Nokia Values, go to Nokia as an employer within careers.

As approximately one in three phones in use is a Nokia phone, it’s safe to say our
products influence the lives of hundreds of millions of people.

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Maximizing the benefits of mobile communication and minimizing potentially
negative effects requires commitment from governments, civil society, and the
business sector. However, we recognize that as a market leader with global
operations, our potential impact, and therefore our responsibility, is great. From a
social growth and economic development perspective, we acknowledge our impact
and responsibilities throughout our value chain: in our sourcing, product design,
manufacturing, employee well-being, business partnerships, recycling, community
involvement, and communications. Through our product lifecycle we respond to
various environmental needs. Through employee relations, supply-chain management,
and consumer offerings we aim to have a positive social influence. Our overall
response to our stakeholders is to produce high-quality, safe products while upholding
the law, protecting the environment, and following sound best practices. It is an
expectation we strive to meet.

Nokia India

Nokia has played a pioneering role in the growth of cellular technology in India,
starting with the first-ever cellular call a decade ago, made on a Nokia mobile phone
over a Nokia-deployed network. Nokia started its India operations in 1995, and
presently operates out of offices in New Delhi, Mumbai, Kolkata, Jaipur, Lucknow,
Chennai, Bangalore, Hyderabad, Pune and Ahmedabad. The Indian operations
comprise of the handsets business; R&D facilities in Bangalore, Hyderabad and
Mumbai; a manufacturing plant in Chennai and a Design Studio in Bangalore.

Over the years, the company has grown manifold with its manpower strength
increasing from 450 people in the year 2004 to over 15000 employees in March 2008
(including Nokia Siemens Networks). Today, India holds the distinction of being the
second largest market for the company globally.

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R & D centers
Nokia has three Research & Development centers in India, based in Hyderabad,
Bangalore and Mumbai. These R&D hubs are staffed by engineers who are working
on next-generation packet-switched mobile technologies and communications
solutions to enhance corporate productivity. The Center in Bangalore, the biggest
R&D site in the country comprises S60 Software Organization, Common
Technologies, Next Generation now called Maemo Software, Productization and
Software & Services.

NOKIA’S MARKET SHARE:

Today, Nokia is the leader in mobile phone technology, although they have other
subsidiaries, namely ‘Nokia Networks’ and ‘Nokia Ventures Organization’, which,
together with Nokia Mobile Phones, form ‘Nokia Group’. Nokia also launched ‘Vertu
Ltd.’ in 2009, the world’s first luxury mobile phone company, selling gold and
platinum phones at exorbitant prices.

Last year, Nokia has once again retained its top position in the market. It enjoys a
market share of 32.6%, followed by Samsung (because of their CDMA phones) with
29.6% and LG with 22.8% (due to their tie-ups with Reliance). Motorola has 5.5%
market share, with Panasonic at 3.8%, Sony Ericsson with 2.6% and Siemens with
1.4%; they are the fourth, fifth, sixth and seventh largest players in the domestic
handset market. In the GSM handset segment, Nokia has 58% market share, with
Samsung at 14.7%, Motorola at 14.1%, and Sony Ericsson at 7.1%. Thus, Nokia has a
larger presence in the GSM market than the CDMA market.

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 Pie chart showing the market share in the GSM mobile phone market

Sony Ericsson
7.1%
Motorola
14.1%

Samsung Nokia
14.7% 58.4%

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1.3. PROBLEMS OF THE ORGANIZATION
The prominent brands in the Indian cellular phone industry are Nokia, Sony Ericsson,
Motorola, and Samsung. Nokia has the single largest market share in India of 60%. I
have focused my research on Nokia and also on one of its major competitor; Sony
Ericsson since these are very prominent players in the Indian market. Nokia has
saturated the urban market including the B and C class cities and is now targeting
potentially untapped markets. Sony Ericsson on the other hand has chosen to focus its
energies on the B and C class cities since which it had not ventured into so far.

The following are the major problems faced by Nokia in the Indian cellular market:-
• Identify cause of problems faced Nokia to enable the management to train the
employees in handling the problems as well as solving the problem in a
satisfactory manner.

• Segregate identified problems of Nokia into problems requiring staff development

action such as training and into problems requiring other management actions, so
that these problems are accurately addressed.

• Prioritize training actions in accordance to where the training need is more urgent.

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1.4 COMPETITION INFORMATION

Sony Ericsson: - Ericsson in one of the largest supplier of mobile systems in the
world and support all major standards for wireless communication. They drive the
telecoms industry and are shaping the future. The world’s 10 largest mobile operators
are among Ericsson's customers and some 40% of all mobile calls are made through
its systems. Ericsson has been active worldwide since 1876 and is present in more
than 140 countries. Headquarters are located in Stockholm, Sweden. Various Ericsson
phones available in market example are given below.
Ericsson R520 EricssonT39

Ericsson T60D / T60LX

Samsung: - In 1996, Samsung Electronics' Telecommunication Network Division

became the first in the world to utilize commercialized
CDMA services. By year 2002, Samsung Electronics has
grown into a world's telecommunications network leader,
ranking third in the world's wireless communications
market share and 55% in the domestic market. Various
Samsung’s phones available in market example are given
below.

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 Motorola: - Motorola is a global leader in wireless, automotive and broadband
communications. Motorola's Intelligence Everywhere. Motorola,
Inc. (NYSE: MOT) today announced it was selected by Microsoft
Corp. as the recipient of the North American Windows Embedded
CE Partner Excellence award in the original equipment
manufacturer (OEM) category. . Various Motorola’s phones available in market
example are given below.

Panasonic: - Panasonic, a creator of numerous electronic devices including

wireless handsets, have a corporate attitude that puts the consumer first. Panasonic
continues to produce creative devices that "resolve the challenges in business and
personal life".

LG:- Headquartered in San Diego, California, LG is the North American wireless

division of LGE, a business unit of LG Electronics (LGE) and global manufacturer of
electronics products based in Seoul, Korea. LG entered the cellular phone market in
1998 and has expanded its market share to nearly 19% of CDMA wireless handsets
sold, and placed third in the U.S. at the end of 2002, according to analysts at Strategy
Analytics. Various Motorola’s phones available in market example are given below.

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21
Marketing Strategy For Nokia
Marketing Strategy for Nokia

For this project I have been instructed to come up with a marketing strategy for an
existing company/product I have chosen to do Nokia communications, particularly the
mobile phone sector of Nokia's business. To do this properly I will need to:

* Appropriately identify, collect and use primary and secondary data that is relevant
to the marketing strategy of Nokia.

* Produce a clear analysis of the external influences affecting the development of a

marketing strategy.

* Complete a realistic rationale for the development of a coherent marketing mix for
Nokia communications.

* Show a full understanding of a marketing strategy for Nokia with a clear

understanding of marketing principles.

* Produce a full, well-balanced marketing strategy that reflects appropriate use of

marketing models and tools.

Introducing the product

Nokia is a communications based company, which focuses on mobile telephone

technology. When mobile phones first became available on the market the models
were very basic with the best technology being SMS messaging (sending written "text
messages" from one phone to another).
Then the next advance in technology was being able to put different faces on your
phone (different style covers for the front and back of your mobile device) and after
that the technological advances have come thick and fast, with advances such as:

* MMS

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* WAP (internet)
* Polyphonic ringtones
* Predictive SMS (where the phone will finish off a word for you if it can guess what
you are typing)
* Camera phones and
* Video recorders

Competition in the market

-------------------------

With all this technology available in the communications market it is obvious that
Nokia will have lots of competition, they include:
* Sony Ericsson
* Samsung
* Motorola
* Siemens
* Panasonic
* NEG
* Sagem and
* Toplux

With all of these competitors in the market Nokia must keep ahead of the game...

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1.5 S.W.O.T ANALYSIS OF NOKIA

Strengths
⇒ Is a dominant player in the smart phone market via its majority ownership of
Symbian and its proprietary Series 60 user interface which are projected to
represent majority of the 100M smart phones sold in the next 4 years.
⇒ 33% market share still the largest cell phone vendor by far, with double the
market share of nearest competitor
⇒ Size should enable Nokia to amortize R&D costs and to get cost advantages
Brand position: probably one of the top 20 brands in the world

Weaknesses
⇒ The N-gage is considered a flop.
⇒ Being the market leader and its increase role in Symbian is giving Nokia a bad
image, much like Microsoft in the PC industry.
⇒ Slow to adopt new ways of thinking: good examples are clamshell phones which
are preferred by many customers. Nokia was reluctant to produce a clamshell until
this year, when it launched its first model.

Opportunities
⇒ Increase their presence in the CDMA market, which they are just entering, as well
as 3G and Edge
⇒ New growth markets where cell phone adoption still has room to go, including
India and other countries.
⇒ Leverage its infrastructure business to get preference and a stronger position with
carriers

Threats
⇒ Late in the game in 3G creates a risk to be displaced by leaders like Motorola, LG,
NEC and others.
⇒ Asian OEMs who are entering the market very aggressively (TCL, nGo Bird)

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⇒ ODMs (HTC and others) enabling carriers to leverage their customer power
bypassing the handset vendor. Operators want to lessen their dependency on
handset vendors and the dominance of Nokia. Orange, O2, and many other
operators globally are selling their own brand of phones.

1.2. PROFILE OF THE ORGANIZATION

Company Profile
In 1938 the Samsung’s fonder byung –chull lee ser 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 become a co-operation in 1951. humble
beginnings.

From 1958onwards Samsung began to expand into other industries such as financial,
media, chemical and ship building throughout the 1970’s .in 1969, Samsung
electronics was established producing what Samsung is most famous for television,
mobile phones (througout90’s),radios, computer components and other electronics
devices .

1987 founder and chairman,byung-chull lee passed away and kun-hee lee took over as
chairman. In the1990’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 business shrunk in size and Samsung was no exception.
They sold business to relieve debt and cut employees down lowering personnel by
50,000. but thanks to the electronic industry they manage to curb this and continue to
grow.

The history of Samsung and mobile 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.then they developed smart phone and a phone
combined mp3 player towards the end of the 20th century .to this date Samsung are
dedicated to the 3g industry . making video, camera phones at a speed to keep up with
consumer demand .Samsung has made steady growth in the mobile industry and are

25
currently second but competitor Nokia is ahead with more than 100%increase in
shares.

VISION OF THE COMPANY

Leading the digital convergence revolution
“GROWING TO BE THE BEST”
As a part of vision Samsung has mapped out a specific plan of reaching $400 billion
in revenue & becoming one of the world’s top 5 brands by 2020

MISSION OF THE COMPANY

“DIGITAL –E COMPANY” excited about future to serve better services to the

people in the market of telecommunications

THE SAMSUNG PHILOSOPHY

At Samsung we follow a simple business philosophy to devote our talent and
technology to creating superior products and services that contribute to a better global
society. Every day our people bring this philosophy to life . our leaders search for the
brightest talent from around the world ,and give them the resources they need to be
the best at what they do . the result is that all of our products from memory chips
that help business store vital knowledge to mobile phones that connect people across
continents have the power to enrich lives and that’s what making a better global
society is all about.

OUR VALUES
We believe that by living by strong values is the key to business.
At Samsung a rigorous code of conduct and these core values are at the heart of every
decision we make .

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 PEOPLE
Quite simply, a company its people.
At Samsung ,we are dedicated to giving our people a wealth of opportunities to reach
their full potential

EXCELLENCE
Everything we do at Samsung is driven by an unyielding passion
for excellence and an unfaltering commitment to develop the best products and
services on the market.

CHANGE
In today’s fast paced global economy, change is constant and
innovation is critical to a company’s survival. As we have done for 70 years, we set
our sights on the future ,anticipating market needs and demands so we can steer our
company towards long term success .

INTIGRITY

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 Operating in an ethical way is the foundation of our business
.everything we do is guided by a moral compass that ensures fairness respect for
all stakeholders and complete transparency .

CO-PROSPERITY
A business cannot be successful unless it creates prosperity and
opportunity for others .Samsung is dedicated to being a socially and environmentally
responsible corporate citizen in every community where we operate around the globe.

PRINCIPLES OF THE COMPANY

• We comply with laws and ethical standards.

• We respect customers, shareholders and employees.
• We are socially responsible corporate citizen.
• We care for the environment health and safety.
• We maintain a clean environmental culture.

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 SAMSUNG COMPETITORS

PRODUCTS Samsung’s competitors M/S year source

global m/s
DRAM 34.3% Hynix 21.6 2009 26
%
NAND flash 40.4% Toshiba 28.1 2008 27
%
Large size 26.2% LG display 25.8 2009 28
LCD panel %
Active matrix 90.0% LG display 2008 29
OLED
Lithium iron battery 19% Sanyo 20% 2009 30
LCD monitor 16.1% Dell 14.6 2008 31
%
Hard disk drive 9.5% Seagate 34.9 2007 32
technology %
Multifunction printer 16.4% HP 19.2 2009 33
%
Television 23% LG 13.7 2009 34
sets(LCD,PDP,CRT) electronics %
Mobile phones 21% Nokia 37.8 2009 35
%
PDP panel 30.5% LG display 34.8 2008 37
%

MARKETING STRATEGY OF SAMSUNG

• Aggressively hawking flips tops and clamshells with polyphonic ring tones
and color screen.
• Nationwide distributer and retail presence in the consumer durable market.
• Samsung has been associated with the Lakme India fashion week for its
mobile phones the company used the LIFW 2005 as a platform to launch D-
500,world’s best mobile phone in the Indian market.
• Set up a hand set manufacturing facility in India

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S.W.O.T ANALYSIS OF THE COMPANY

STRENGTH
• New product concept to rollout in five month.
• Catching the pulse of the consumer offering design & understanding emotions.
• Heavy investments in technology.
• Focus on innovative products.

WEAKNESS
• Not proactively coming out with newer mobiles.
• Lack in product differentiation.
• Different models at different price points.
• Focus on mass market.
• not very user friendly designs

OPPORTUNITIES
Distinguish its service from competitors offer product variation.
• Demand for cell phones driven by the servers providers or carriers.
• Tie up with service providers lowering the price of the phone just by $20.

THREATS
• Motorola’s dominance in the US the European market controlling more than
world market.
• Aggressive competitors including Sony Erikson, Siemens eating into its share.
• Not keeping track of the new trends in the market.
• Not an accessory and fashion statement.

30
 CHAPTER-2
OBJECTIVES AND METHODOLOGY

31
SIGNFICANCE OF THE STUDY

The present study is quite significant because it discusses values cultures vision,
mission and strategies of two companies .Nokia and Samsung to make comparative
analysis between these two companies it identifies the current positions of the
company .
The report finds that high quality and advanced technologies are important factor
for Nokia’s success moreover they are concentrating on ne area that is
telecommunication while Samsung is indulging in many areas
Moreover the other finding is that Nokia’s financial position is surpassing its
competitors in the telecommunications report concludes that Nokia has established its
leadership in telecom companies Samsung is gaining its area in style point of view or
advanced features in their products.

MANAERIAL USEFULLNESS OF THE STUDY

Managerial usefulness of the study is to analyse the comparative study between Nokia
and Samsung. compare between there market strategies and to know about there
vision mission and there future plans the respondents were discussing the questions
prior to reply thus there could be biasness different promotional schemes were not
known by the respondents.
The customer analysis of this coursework highlighted that the upper segment of the
population are the major consumers of mobile phones extensive research was
conducted into yhe strategies being implemented for the rural market .the prominent
brands in Indian cellular phones are Nokia and the Samsung .

32
Nokia has the single largest market share in India of 60%and the we have noticed that
Nokia is the only competitor of Samsung but Nokia’s major competitor is Sony
Ericson since these are very prominent players in the market

OJECTIVES OF THE STUDY

• To know about the cellular industries.

• To help consumers to know about the companies their products and the future
over comings
• To know about the brand Nokia and the Samsung their products, market
strategies, values mission adopted in the cellular companies.
• To know consumer behavior towards Nokia and Samsung.

SCOPE OF THE STUDY

As learning is the human activity and is as natural ,as breathing despite of the fact the
learning is all pervasive in our lives, psychologists do not agree on how learning takes
place .how individuals learn s a matter of interest to marketers they want to teach
consumers in their roles as their roles as consumers. They want consumers to learn
about their products product attributes, potential consumers benefit, how to use,
maintain or even dispose of the product and the new ways of behaving that will
satisfy not only the consumer needs, but the marketer’s objectives.

The scope our study restricts itself to the analysis of CONSUMER BEHAVIOR,
perception of Nokia and Samsung.

33
LIMITATIONS OF THE STUDY

• The findings of the study will be based on opinion of the respondents, which
may be based.
• The study is confined to rohini residential areas
• Lack of time and finance may prevent from carrying out in depth study.

RESEARCH METHDOLOGY
Research comprise defining and redefining problems, formulating hypothesis or
suggested solutions; collecting, organizing and evaluating data; making deductions
and reaching conclusions; and at last carefully testing the conclusions to determine
whether they fit the formulating Hypothesis. In short, the search for Knowledge
through Objective and Systematic method of finding solutions to a problem is
Research.

Research Design
Type of Research: - Descriptive research
Descriptive research includes Surveys and fact-finding enquiries of different kinds.
The main characteristic of this method is that the researcher has no control over the
variables; he can only report what has happened or what is happening.

Data Source:
 There are two types of data.

Primary Data:

34
 The data was mainly obtained from the people feedback on the questionnaire
which was distributed by the group members at various places

Secondary Data:
 The secondary data was obtained from various journals, internet, magazines etc.

Research Instruments
Selected instrument for Data Collection for Survey is Questionnaire.

Sample Design
Who is to be surveyed? The marketing researcher must define the target population
that will be sampled.

The sample Unit taken by me; General public of different age group, different gender
and different professions.

Extent:-
Where the survey should be carried out?
I have covered entire residential area of Delhi city for the survey

Time Frame:-
When the survey should be conducted?
I conducted my survey for 1week

Sampling Frame:-
The source from which the sample is drawn

Sampling Technique: -
How should the respondent be chosen?
In the Project sampling is done on basis of Probability sampling. Among the
probability sampling design the sampling design chosen is stratified random sampling.
Because in this survey I had stratified the sample in different age group, different
gender and different profession

Sample Size/ Population Size: - How many people should be surveyed?

My sample size is 50

35
 CHAPTER-3
CONCEPTUAL DISCUSSION

36
CUSTOMER SATISFACTION

Customer satisfaction, a business term, is a measure of how products and services

supplied by a company meet or surpass customer expectation. It is seen as a key
performance indicator within business and is part of the four of a Balanced Scorecard.

In a competitive marketplace where businesses compete for customers, customer

satisfaction is seen as a key differentiator and increasingly has become a key element
of business strategy.

There is a substantial body of empirical literature that establishes the benefits of

customer satisfaction for firms.

• MEASURING CUSTOMER SATISFACTION

Organizations need to retain existing customers while targeting non-customers;
Measuring customer satisfaction provides an indication of how successful the
organization is at providing products and/or services to the marketplace.

Customer satisfaction is an abstract concept and the actual manifestation of the state
of satisfaction will vary from person to person and product/service to product/service.
The state of satisfaction depends on a number of both psychological and physical
variables which correlate with satisfaction behaviors such as return and recommend
rate. The level of satisfaction can also vary depending on other factors the customer,
such as other products against which the customer can compare the organization's
products.

Work done by Paraguayan, Zenithal and Berry (Leonard L) between 1985 and 1988
delivered SERVQUAL which provides the basis for the measurement of customer
satisfaction with a service by using the gap between the customer's expectation of
performance and their perceived experience of performance. This provides the
researcher with a satisfaction "gap" which is semi-quantitative in nature. Cronin and
Taylor extended the disconfirmation theory by combining the "gap" described by
Paraguayan, Zenithal and Berry as two different measures (perception and
expectation) into a single measurement of performance relative to expectation.

The usual measures of customer satisfaction involve a survey with a set of statements
using a Likert Technique or scale. The customer is asked to evaluate each statement in
terms of their perception and expectation of performance of the service being
measured.

37
METHODOLOGIES

American Customer Satisfaction Index (ACSI) is a scientific standard of customer

satisfaction. Academic research has shown that the national ACSI score is a strong
predictor of Gross Domestic Product (GDP) growth, and an even stronger predictor of
Personal Consumption Expenditure (PCE) growth. On the microeconomic level,
research has shown that ACSI data predicts stock market performance, both for
market indices and for individually traded companies. Increasing ACSI scores has
been shown to predict loyalty, word-of-mouth recommendations, and purchase
behavior. The ACSI measures customer satisfaction annually for more than 200
companies in 43 industries and 10 economic sectors. In addition to quarterly reports,
the ACSI methodology can be applied to private sector companies and government
agencies in order to improve loyalty and purchase intent. Two companies have been
licensed to apply the methodology of the ACSI for both the private and public sector:
CFI Group, Inc. applies the methodology of the ACSI offline, and Foresee Results
applies the ACSI to websites and other online initiatives. ASCI scores have also been
calculated by independent researchers, for example, for the mobile phones sector[5],
higher education and electronic mail

The Kano model is a theory of product development and customer satisfaction

developed in the 1980s by Professor Noriaki Kano that classifies customer
preferences into five categories: Attractive, One-Dimensional, Must-Be, Indifferent,
Reverse. The Kano model offers some insight into the product attributes which are
perceived to be important to customers. Kano also produced a methodology for
mapping consumer responses to questionnaires onto his model.

SERVQUAL or RATER is a service-quality framework that has been incorporated

into customer-satisfaction surveys (e.g., the revised Norwegian Customer Satisfaction
Barometer to indicate the gap between customer expectations and experience.

J.D. Power and Associates provides another measure of customer satisfaction, known
for its top-box approach and automotive industry rankings. J.D. Power and
Associates' marketing research consists primarily of consumer surveys and is publicly
known for the value of its product awards.

Other research and consulting firms have customer satisfaction solutions as well.
These include A.T. Kearney's Customer Satisfaction Audit process, which
incorporates the Stages of Excellence framework and which helps define a company’s
status against eight critically identified dimensions.

For Business to Business (B2B) surveys there is the Info Quest box This has been
used internationally since 1989 on more than 110,000 surveys (Nov '09) with an
average response rate of 72.74%. The box is targeted at "the most important"
customers and avoids the need for a blanket survey.

38
IMPROVING CUSTOMER SATISFACTION

Published standards exist to help organizations develop their current levels of

customer satisfaction. The International Customer Service Institute (TICSI) has
released The International Customer Service Standard (TICSS). TICSS enables
organizations to focus their attention on delivering excellence in the management of
customer service, whilst at the same time providing recognition of success through a
3rd Party registration scheme. TICSS focuses an organization’s attention on
delivering increased customer satisfaction by helping the organization through a
Service Quality Model.

TICSS Service Quality Model uses the 5 P's - Policy, Processes, People, Premises,
Product/Services, as well as performance measurement. The implementation of a
customer service standard should lead to higher levels of customer satisfaction, which
in turn influences customer retention

CURRENT STRATEGIES
• In my view, product development and market penetration are the strategies
being currently used by Nokia. Since Nokia operates in an extremely dynamic
industry where technology becomes obsolete in the span of six months or even
less, Nokia has taken to making forecasts every three months and revising
their strategies accordingly. The markets on which they are focusing for
penetration include markets with low mobile subscription rates relative to the
size of the population, geographic areas where it is more cost-effective to
build wireless infrastructure than fixed-line networks, and heavily populated
areas. One of the ways they have implemented this is the use of vernacular
rendition of communication in their promotion campaigns to appeal more
closely to possible consumers. So if you are in Tamil Nadu, you would hear
the advertisements and other promotion campaigns in Tamil, and if in
Karnataka you would hear them in Karnataka. Nokia does not believe in
restricting itself to just basics. They intend to enter new product and service
niches, which they expect will emerge as technologies from diverse industries
start to converge, especially in the area of consumer multimedia. Their
strategy is to explore, identify and extract revenue from the most profitable
and fastest growing segments of the consumer multimedia business and its
value chain by anticipating consumer needs in this area, and developing
innovative products and services. In the near term, they intend to focus on

39
 imaging and games, where they have already introduced a number of products.
Their strategies to drive consumer multimedia will also consolidate their
strong position in the consumer voice market. While Samsung is focusing on
only the quality and the features of there products while Samsung
introducing them as aNationwide distributer and retail presence in the
consumer durable market.

Graph showing the number of mobile phone users at the year end for the
last four years

30,000,000
No. of users (in millions)

25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
2006 2007 2008 2009
Year

There are no domestic players in the mobile phone industry at the moment. There is a
larger presence of international brands in the market. Therefore, competition in the
Indian market is primarily from the foreign companies. There is no indigenous
competition as such. However, as I will be discussing in the later sections, I have
noticed that there is high brand loyalty to these companies.
The various companies operating in the Indian market are:
Nokia
Sony Ericsson
Samsung
Motorola
Panasonic
.The major player is Nokia, on whom I will carry out intensive research, to help in
determining its relative strengths and weaknesses as well as its strategic approaches.
Nokia has a full range of mobile phones. They focus on the lower segment as well as
the higher-end segment of the market. They offer a variety of products in each range,

40
with prices varying according to how much the consumer is able to spend on a mobile
phone. However, they have phones which are targeted at the bulk of the population in
general. For example, the Nokia 1110i phone is in the lower price range, but its
features and appearance are appealing to the lower class as well as the middle class.
In the full range in India, Nokia has 29 models (out of which 2 are CDMA), whereas
comparatively Sony Ericsson has 18 models (all GSM), Motorola has 16 models and
Samsung has 10 GSM phones and 4 CDMA models.

Pest Analysis
The PEST analysis is a Macro analysis which analyses the environment of a market.
PEST is an Acronym for Political, Environmental, Socio-cultural, and Technological.
With these four parameters, a marketer can get a very good idea about the market
conditions, and if found suitable the marketer can analyze the feasibility of venturing
into the market.

41
 CHAPTER-4
DATA ANALYSIS

1. Do you have any mobile phone

PARTICULARS NUMBER %AGE

42
 YES 50 100%
NO 0 0%

INTERPRETATION:
All the respondents had mobile phone

43
 2. How many mobile phones do you have :
PARTICULAR NO. OF RESPONDENTS
1 37
2 13
3 0
3+ 0

INTERPRETATION
Out of 50 respondents 37 says that they had 1 connection while 13 were having 2 connections

44
 3. Which mobile are you using ?

PARTICULAR NO. OF RESPONDENTS

NOKIA 27
SAMSUNG 16
OTHER 7

INTERPRETATION:
Out of 50 respondents 27 were using NOKIA while 16 respondents were using
MOTOROLA and 7 were using others.

45
 4. Are you satisfied with the services

PARTICULARS NUMBERS
Yes 41
No 9

INTERPRETATION:
Out of 50 respondents 41 respondents were satisfied with the services of there
particular mobile while only 9 were not satisfied

46
 5. Which facility attracts you most ?

PARTICULARS NOKIA MOTOROLA OTHERS

PRICE 29 12 9
STYLE 14 15 21
BATTERY BACK UP 36 36 7
MEMORY 24 16 10
OTHER 17 15 18

INTERPRETATION
Out 50 respondents most of the respondents prefer Nokia then Motorola and others

47
 6. Which advertisement media puts more impact on your buying decision ?

PARTICULARS NO. OF RESPONDENTS

TV 28
MAGAZINES 04
NEWPAPER 10
INTERNET 05
OTHERS 03

INTERPRETATION:
Out of 50 respondents 28 gets aware of mobiles T.V, 5 by internet,10 by news papers,
03 by others while 04 by magazines.

48
 7. From how long you are using this particular service mobile

PARTICULARS NO. OF RESPONDENTS

1 10
2 25
3 11
More than 3 years 4

INTERPRETATION:
Out of 50 respondents 10 were using there particular mobile since 1 years, 25 since 2
year, 11 since 3 years while only 4 were using there mobile from more than 3 years.

49
 8. Would you like to change your current mobile in future ?
PARTICULARS No. of RESPONDENTS
YES 18
NO 32

INTERPRETATION:
Out of 50 respondents 32 did not want to change there current while only 18
respondents want to change there mobile.

Q.9What qualities of mobiles are important to you while buying mobiles? Rank
them in order of 1 to 9, where 1 being the most important and 9 being the least
important.

Criteria RANK IN( %)

Most preferred prefer No effect

Maintenance

50
Durability

Style/ Design
Price
uniqueness
Comfort (edges)

FM
Table of figure no. 4.5

100
90
80
70
60
50
40
30
20
10
0
M ost preferred prefer No effect

M ost preferred M aintenance Durability Style/ Design Price uniqness Comfort (edges) FM

Interpretation The following are important criteria as suggested by the

respondents, Maintenance 80%, 15%, 5%, Durability 64%, 24%, 12%, Style/ Design
72%, 26%, 2%, Price 30%, 60%, 10%, Uniqueness 14%, 12%, 74%, Comfort (edges)
92%, 08%, 0% and FM 94%, 4% and 2%.
Q.10 Rate the following brands based on your perception on the mentioned
criteria on a scale of 1-6 where,
1= Below Average 2=Average 3= Satisfactory
4= Good 5= Very good 6= Excellent
Criteria Nokia Sony Ericsson BenQ Panasonic Samsung
Maintenance 5 4 2 1 3
Durability 6 5 2 1 3
Style/ Design 4 4 3 2 5
Color 5 4 3 3 4
Size 4 4 3 4 5
Price 4 2 2 3 5
Availability 4 4 1 1 3
Lightweight 4 3 3 4 5
Comfort 5 5 3 3 4

51
 Table of figure no. 4.6

0
Nokia Sony Ericsson BenQ Panasonic Samsung

Maintenance Durability Style/ Design Color Size

Price Availability Lightweight Comfort

Interpretation
Nokia is the clear leader in this question of preference asked to the respondents.

Q.11 Are you currently using Nokia? What is your opinion about it?

Effect No. of people (%)

Yes 64
No 36

Table of figure no. 4.13

52
 36%

64%

Yes No

Interpretation
64 % are using Nokia mobile phones whereas rest of the people are using other
mobile phones.

Suggestions given by the people ……..

During our survey we asked the people to give some suggestions to the
compananies there is similar suggestion for both the companies given by 25
peoples that they should not increase their prices. And 1 suggestions given by
only 1 person out of 50 that is cellular companies that there should be some
function to indicate the person is driving this will not avoid accidents during
driving.

53
54
 CHPATER-5
FINDINGS AND RECOMMENDATIONS

FINDINGS
• Nokia introduces a new phone into the market every two or three months.
• In Nokia's human resource management, the features are to improve
employee's techniques by regularly training and developing effective

55
 teamwork. While Samsung always improving model of their product with
different features
• Nokia's financial position is surpassing its competitors in telecommunication.
While Samsung in indulging itself in more than telecom it has more products
more than mobiles.
• Nokia has established its leadership in mobile phone market according to its
successful marketing strategies and internal management. while Samsung is
always trying to indulge with media .
• Nokia's philosophy is to learn continuously, to satisfy consumers, and to
respect individual and pursue professionalism.

RECOMMENDATION
After analyzing all the data we have some recommendations such as:-

Advertisements: -

56
Nokia use advertisement mode of promotion after launching a new cell phone in the
market. So people don’t have much knowledge about their latest models. While
Samsung have lots of ads in market before launching it

EXAMPLE: -
⇒ Giving advertisement on television or cable
⇒ Giving print media add which explain all the features of cell phone

SPECIAL SCHEMES: -
Nokia always launch high range products. So to increase the sales it has to give
advertisement or special discount or special schemes with every purchase of new cell
phone. Samsung have color variety in their cell phones as Nokia don’t have this
much.

CONCLUSION

57
The customer analysis of this coursework highlighted that the upper segment of the
population are the major consumers of mobile phones. Extensive research was
conducted into the strategies being implemented for the rural market.

Nokia and Sony Ericsson segment the market on a similar basis. However, they have
different interpretations Nokia has saturated the urban market including the B and C
class cities and is now targeting potentially untapped markets. Sony Ericsson on the
other hand has chosen to focus its energies on the B and C class cities since which it
had not ventured into so far.

The prominent brands in the Indian cellular phone industry are Nokia, Sony Ericsson,
Motorola, and Samsung. Nokia has the single largest market share in India of 60%.
We have analysed that Nokia is better than Samsung . Nokia and also on one of its
major competitors; Sony Ericsson since these are very prominent players in the Indian
market.

ANNEXURE

58
For “Study of consumer behavior towards NOKIA and SAMSUNG”
Name –
Contact no.-
Sex- male female

1. Do you have any mobile?

Yes No

2. How many mobile do you have?

1 2

3 3+

3. Which mobile are you using?

Nokia Samsung

4. Are you satisfied with the services?

Yes No

5. Which facility attracts you most?

Price Call Style

Battery Memory

Others

6. Which advertisement media puts more impact on your buying

decision?

T.V Magazines

Newspapers Internet

59
Others

7. From how long you are using this particular mobile?

1 year 2 years

3 years More than 3 years

8. Would you like to change your current mobile in future?

Yes No

If yes
then why………………………………

Q9. What qualities of mobiles are important to you while buying mobiles?
Rank them in order of 1 to 9, where 1 being the most important and 9
being the least important.
Criteria RANK (From1-9)
Most preferred preferred No effect

Maintenance

Durability

Style/ Design
Price
uniqueness
Comfort (edges)

FM

Q10. Rate the following brands based on your perception on the mentioned
criteria on a scale of 1-6 where,

60
Criteria Nokia Sony Ericsson BenQ Panasonic Samsung
Maintenance
Durability
Style/ Design
Color
Size
Price
Availability
Lightweight
Comfort

Q11. Have you ever used Nokia? What is your opinion about it?
 Yes
 No

Q12. ARE THERE ANY GENERAL COMMENTS YOU WOULD MAKE

ABOUT
WHAT YOU LIKE / DISLIKE ABOUT MOBILE PHONES?

APPENDIX

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 BIBLIOGRAPHY
BOOKS

 Kothari, C.R.(2007), Research Methodology Methods and Techniques,

INTERNET:
1. www.wikipedia.com
2. www.projectsmonitor.com
3. http://www.nokia.com
4. www.samsung .com

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68
69
70
71
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 CHPATER-5
FINDINGS AND RECOMMENDATIONS

73
74
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