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1.
CERTIFICATE
ACKNOWLEDGEMNT
PREFACE
INTRODUCTION
RESEARCH METHODOLOGY
16
16
16
16
3.
17
4.
Recommendations
37
Limitations
Conclusions
38
39
BIBLIOGRAPHY
40
9.
1.1
2
12
13
15
Company Profile
Motorola Inc.
Type
Founded
1928
Headquarters
Key people
Industry
Greg
Brown,
President
and
Co-CEO
systems
Microprocessors
Products
Mobile
phones
Two-Way
radios
Networking Systems
Market cap
Revenue
Operating
income
Net income
Employees
66,000 (2008)
Website
www.motorola.com
for its eco-friendly Refrigerators and established its assembly line for its PC Monitors at
its Greater Noida manufacturing unit.
The Greater Noida manufacturing unit line has been designed with the latest technologies at par
with international standards at Korea and is one of the Eco-friendliest units amongst all
MOTOROLA manufacturing plants in the world.
The year 2001 witnessed MOTOROLA becoming the fastest growing company in the consumer
electronics, home appliances and computer peripherals industry. The company had till the month of
October 2001 achieved a cumulative turnover of Rs 5000 Crores in India since its inception in 2003,
making it the fastest ever Rs 5000 Crores clocked by any company in the Indian consumer
electronics and home appliances industry. Having achieved this milestone, MOTOROLA achieved
another benchmark with the first ever sales of One Lakh ACs (Windows and Splits) in a calendar
year. MOTOROLA is poised to surpass its turnover target of Rs. 2700 Crores this year and clock a
turnover of Rs. 3000 Crores.
This year, MOTOROLA has emerged as the leader in Colour Televisions, Semi Automatic Washing
Machines, Air Conditioners, Frost-Free Refrigerators and Microwaves Ovens. In Colour Televisions
having set the sales target of one million units of Color Televisions for 2002, MOTOROLA has
already achieved the one million mark in the month ahead of its target.
MOTOROLA Electronics India is the fastest growing company in the consumer electronics, home
appliances and computer peripherals industry today.
MOTOROLA Electronics is continually providing superior technology products & value for money
to over 50 lac households in India.
Mr. K.R. Kim, Managing Director, MOTOROLA Electronics said, "I am extremely pleased
with our performance in 2006 as we have been able to sustain growth during a year of
slowdown in the consumer electronics and home appliances industry." He added, "Our
growth record has led us to expand manufacturing presence in India. We have accordingly
reinforced our sales and distribution network through the concept of area offices to reach out
more Indian consumers in semi urban and rural India."
History
Motorola started as Galvin Manufacturing Corporation in 1928. The name Motorola was
adopted in 1947, but the word had been used as a trademark since the 1930s. Founders
Paul Galvin and Joe Galvin came up with the name Motorola when their company
started manufacturing car radios. A number of early companies making phonographs,
radios, and other audio equipment in the early 20th century used the suffix "-ola," the
most famous being Victrola; RCA made a "radiola"; there was also a company that made
jukeboxes called Rock-Ola, and a film editing device called a Moviola. The Motorola
prefix "motor-" was chosen because the company's initial focus was in automotive
electronics. Many of Motorola's products have been radio-related, starting with a battery
eliminator for radios, through the first walkie-talkie in the world, defense electronics,
cellular infrastructure equipment, and mobile phone manufacturing. The company was
also strong in semiconductor technology, including integrated circuits used in computers.
Motorola has been the main supplier for the microprocessors used in Commodore
Amiga, Apple Macintosh and Power Macintosh personal computers. The chip used in the
latter computers, the PowerPC family, was developed with IBM and in a partnership with
Apple (known as the AIM alliance). Motorola also has a diverse line of communication
products, including satellite systems, digital cable boxes and modems
Products
Motorola creates several different products for use of the government, public safety
officials, business installments, and the general public. These products include cell
phones, laptops, and radios.
Spinoffs
Motorola developed the first truly global communication network using a set of 66
satellites. The business ambitions behind this project and the need for raising venture
capital to fund the project led to the creation of the Iridium Company in the late 1990s.
While the technology was proven to work, Iridium failed to attract sufficient customers
and they filed for bankruptcy in 1999. Obligations to Motorola and loss of expected
revenue caused Motorola to spin off the ON Semiconductor (ONNN) business August 4,
1999, raising for Motorola of about $1.1 Billion.
Further declines in business during 2000 and 2001, caused Motorola to spin off its
government and defense business to General Dynamics. The business deal closed
September 2001. Thus GD Decision Systems was formed (and later merged with General
Dynamics C4 Systems) from Motorola's Integrated Information Systems Group
On October 6, 2003, Motorola announced that it would spin off its semiconductor
product sector into a separate company called Free scale Semiconductor, Inc.. The new
company began trading on the New York Stock Exchange on July 16th of the following
year.
Quality systems
The Six Sigma quality system was developed at Motorola even though it became best
known through its use by General Electric. It was created by engineer Bill Smith, under
the direction of Bob Galvin (son of founder Paul Galvin) when he was running the
company. Motorola University is one of many places that provide Six Sigma training.
need. Motorola do this by designing and delivering "must have" products, "must do"
experiences and powerful networks with a full complement of support services as
well. A Fortune 100 company with global presence and impact, Motorola had sales of
US$42.8 billion in 2006.
Mobile Devices:
As a pioneer in wireless communications, Motorola has transformed the cell phone
into an icon of personal technology an integral part of daily communications,
data management
and
mobile
entertainment.
Motorola
not
only designs,
manufactures sells and services wireless handsets, but also licenses its vast portfolio
of intellectual property. Our collection spans all cellular and wireless systems and
includes integrated software applications as well as one a large complement
of Bluetooth-enabled accessories. We offer customers innovative product designs
that deliver "must have" experiences, such as mobile music and video enabling
seamless connectivity at work or at play.
COMPANY SUCCESS
Yitzhak Rabin Israeli National Quality Award, Israel Society for Quality, Israel, 2007
Deal of Distinction Award: Patent generation and robust licensing program, Licensing
Executives Society, USA and Canada, 2005
Winner: WiMAX Flexible Point Access System, Best of WiMAX World Europe Awards, 2007
Industry Innovation Award: WiMAX Distributed Network Architecture, exchange Magazine, Best
of WiMAX World Awards, USA, 2006
Home-Networking Winners: Mot SVG2500 Wireless VoIP Cable Modem Gateway and Mot
SBV5400 VoIP Cable Modem/ Cordless Phone System, International CES Design and
Engineering Awards, 2006
Winner: Best Home Wireless Product, CES Mark of Excellence Awards, 2006
Product of the Year: VoIP Open-Application Enabling Platform, Internet Telephony, USA, 2005
100 Most Technologically Significant Products of the Year: Printed Active Displays, R&D 100
Awards, 2007
Malaysia Leadership in ICT R&D Award: Motorola Software Center, Multimedia Development
Corporation, 2006
Best of ITS Research & Innovation Winner: MOTODRIVE, ITS America Awards, 2006
Innovation Excellence Award, Mobile Devices: Motorola China Research Center, Excellent
Innovation Team Awards, 2005
CORPORATE RESPONSIBILITY
Corporate responsibility means harnessing the power of our global business to
benefit people. It also means doing the right thing in all aspects of our business,
including how we treat the environment, our employees, our customers, our partners
and our communities.
10
Top 100 Corporate Citizens: No. 4, Corporate Responsibility Officer Magazine, USA, 2007
Top 10 Most Socially Responsible Businesses, National Business Social Responsibility Survey,
Israel, 2006
MOBILE DEVICES
Winner: CNET Peoples Voice Award, ROKR E8, Consumer Electronics Show (CES), 2008
Winner: CNET Best of CES, Cell phones and Smartphones category, ROKR E8, Consumer
Electronics Show, 2008
Winner: Top 20 Products of CES Editor's Choice Award, ROKR E8, Popular Mechanics
magazine, 2008
Winner: Best of CES 2008: Best Cell Phone, ROKR E8, LAPTOP magazine, 2008
Winner: 2008 CES Best of Innovations Design and Engineering Award, headphones category,
MOTOROKR S9, Consumer Electronics Show, 2008
Winner: Best of CES, Bluetooth transfer category, Motorola T815, Smartphone-based navigation
system featuring MOTONAV, Bluetooth Special Interest Group (SIG), 2008
11
Best Ultra Low Cost Handset, 3GSM Global Mobile Awards, 2006
Winners: MOTORIZR and MOTOKRZR K1m, International CES Design and Engineering Awards,
2006
Unique Product Winner: Motorola Audex Protective Gear, Bluetooth SIG Best of CES Awards, 2006
First Place Hardware/Mobile Phone: SLVR L7, CTIA Wireless E-tech Awards, 2006
1.2 INTRODUCTION
HISTORY OF CELLULAR TELEPHONY IN INDIA
Cellular Telephony
The technology that gives a person the power to communicate anytime, anywhere - has
spawned an entire industry in mobile telecommunication. Mobile telephones have
become an integral part of the growth, success and efficiency of any business / economy.
The most prevalent wireless standard in the world today, is GSM. The GSM Association
(Global System for Mobile Communications) was instituted in 1987 to promote and
12
expedite the adoption, development and deployment and evolution of the GSM standard
for digital wireless communications.
The GSM Association was formed as a result of a European Community agreement on
the need to adopt common standards suitable for cross border European mobile
communications. Starting off primarily as a European standard, the Group Special
Mobile as it was then called, soon came to represent the Global System for Mobile
Communications as it achieved the status of a world-wide standard. GSM is today, the
world's leading digital standard accounting for 68.5% of the global digital wireless
market.
The Indian Government when considering the introduction of cellular services into the
country, made a landmark decision to introduce the GSM standard, leapfrogging
obsolescent technologies / standards.
Although cellular licenses were made technology neutral in September 2005, all the
private operators are presently offering only GSM based mobile services. The new
licensees for the 4th cellular licenses that were awarded in July 2001 too, have opted for
GSM technology to offer their mobile services.
13
INDUSTRY PROFILE
In the early 1990s, the Indian government adopted a new economic policy aimed at
improving India's competitiveness in the global markets and the rapid growth of exports.
Key to achieving these goals was a world-class telecom infrastructure.
In India, the telecom service areas are divided into four metros (New Delhi, Mumbai, Chennai and
Kolkata) and 20 circles, which roughly correspond to the states in India. The circles are further
classified under "A," "B" and "C," with the "A" circle being the most attractive and "C" being the
least attractive. The regulatory body at that time the Department of Telecommunications (DOT)
allocated two cellular licenses for each metro and circle. Thirty-four licenses for GSM900
cellular services were auctioned to 22 firms in 1995. The first cellular service was provided by,
Modi Telstra in Kolkata in August 1995. For the auction, it was stipulated that no firm can win in
more than one metro, three circles or both. The circles of Jammu and Kashmir and Andaman and
Nicobar had no bidders, while West Bengal and Assam had only one bidder each.
14
In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the Lok Sabha,
and the president officially announced the TRAI ordinance on 25 January 2003. The government
decided to set up TRAI to separate regulatory functions from policy formulation, licensing and
telecom operations. Prior to the creation of TRAI, these functions were the sole responsibility of the
DOT.
High license fees and excessive bids for the cellular licenses put tremendous financial burden on the
operators, diverting funds away from network development and enhancements. As a result, by 2005
many operators failed to pay their license fees and were in danger of having their licenses
withdrawn. In March 2005, a new telecom policy was put in place (New Telecom Policy 2005).
Under this new policy, the old fixed-licensing regime was to be replaced by a revenue-sharing
scheme whereby between 8-12 percent of cellular revenue were to be paid to the government.
1.4 OBJECTIVES
The Primary Objective was to study the perception & buying behavior of customers
towards various mobile brands with special reference to MOTOROLA.
The Secondary Objectives of this study were to identify:
Major features, which a customer looks for in a mobile before making a purchase.
15
SAMPLING METHODOLOGY:
16
Visited the customers across Delhi and NCR & gathered information required as per the
questionnaire.
Primary data has been used by me in the form of Questionnaire & Observation, which are the two
basic methods of collecting primary data, which suffices all research objectives.
Secondary data sources like catalogue of the company, product range book of the company &
various internet sites such as motorola.com & google.com have been used.
FINDINGS
Nokia, Samsung, Motorola and Sony Ericsson are the favorite as brands among the customers in
Delhi Market, closely followed by others.
The general opinion about MOTOROLA mobile phones is that it is either good or satisfactory.
17
18
1.)
NO
3rd Qtr
4th Qtr
100%
Figure 1
Interpretation: It was found out that all the 50 respondents were using mobile phones.
19
2.)
samsung
sony ericsson
others
motorola
10%
12%
44%
22%
12%
Figure 2
Interpretation: The above chart (Figure2) shows the percentage of various handsets used by the
respondents.
20
3.)
Satisfaction
yes
no
16%
84%
Figure 3
Interpretation: The chart (Figure3) shows maximum number of respondents who were satisfied with
their handsets.
21
4.)
AWARENESS
NOT AWARE
AWARE
2%
98%
Figure 4
Interpretation: The pie chart(Figure4) shows the percentage of respondents who were aware of the
brand Motorola.
22
a month
20%
six months
a year
18%
22%
40%
5.)
In what time
you are thinking to change your handset or buying a new one?
Figure 5
Interpretation: The above chart (Figure 5) depicts the respondents buying behavior with reference to
time.
23
samsung
sony ericsson
others
motorola
12%
36%
28%
14%
10%
6.)
To
Interpretation: This chart (Figure 6) depicts the respondents next preference for mobile phones.
24
grey market
others
12%
16%
72%
Figure 7
Interpretation: This shows (Figure 7) the source of purchase of handset of the respondents.
8.) Do you think Motorola mobile phones are value for money?
25
no
20%
80%
Figure 8
Interpretation: This shows (Figure 8) that maximum respondents consider Motorola mobile phones
value for their money.
26
Features Preferred
camera
bluetooth
mp3
8%
mms
others
24%
12%
12%
44%
9.)
What according to you is the most important additional feature that
should be present in a mobile phone?
Figure 9
Interpretation: This shows (Figure 9) the various additional features which customer takes into account
while purchasing handset.
27
Figure 10
imp
average
6%
32%
62%
Interpretation: This shows (Figure 10) that the after sales service is considered to be of prime
importance to the respondents.
28
30
31
1. Color Screen Color Screen phones are the latest and the most wanted trend in the
market these days as these phones boast of a High Color Resolution Display so that the
customer can enjoy in his/her phone an exhilarating melange of colors. Most of the color
phones boast of 65000-color display, which makes not only the resolution but also the
picture quality treat to the eyes. Color screen phones are in major demand by the public,
which accounts for at least 50% in the survey conducted.
2. MMS (Multimedia Messaging Service) - With MMS, it is not only possible to send
your multimedia messages from one phone to another, but also from phone to e-mail, and
vice versa. This feature dramatically increases the possibilities of mobile communication,
both for private and corporate use.
32
3. Integrated Camera The latest in-thing, mobile phones with in-built camera.
These phones serve the twin service of mobile and a camera. One can not only click but
also store photos and even send it to their near and dear ones. Camera phones accounted
for at least 10% respondents in the survey conducted.
4. Tri-Band A tri-band facility is useful for people who are constantly going abroad
as a tri-band enabled handset lets one access the network of another country also and
also keeps you connected with people back home.
5. Size/Weight These days mobile handsets come in various shapes and sizes with
different weights. The needs and requirements of a customer differ from person-toPerson as some like bigger sets with minimum weight whereas there are some who prefer
lighter sets with lighter weights.
Of 4-6 hrs on various handsets, but ultimately its the customer who has to decide and
make the best choice for him.
7. WAP (Wireless Application Protocol) WAP lets one access the Internet-based
services supported by your network, such as news, weather reports and flight timings etc,
even when you are mobile.
8. Battery Every customer wants his/her battery to last the longest and all mobile
companies fight out promising that their battery backup is the best. A mobile function on
a battery and a cheap and sub-standard battery always makes the customer vary of the
companies products and services.
9. Mp3 Ring Tones An mp3 ring tone is the next generation of ring tones that has
better sound quality than traditional monotone or a polyphonic ring tones. Mp3 ring
34
tones sound great and truly make your phone unique. Mp3 ring tones phones are in major
demand by the customers.
SWOT ANALYSIS
35
STRENGTH: A well established brand name helps in promoting a new range of products.
MOTOROLA is a Multinational Company based in South Korea, which is considered to
be a technically advanced country with advanced products to meet the requirement of
target customers internationally.
The company has a wide range of products to suite the purse & the taste of various
segments of customers.
The company has a huge advertisement budget which helps in brand positioning &
recall.
It has a well established sales network of more than 4000 dealers & branch offices
around the globe & the company makes such of its products available as are in demand
in each particular area.
WEAKNESS:
The company needs to evolve a comprehensive plan & strategy to make inroads into a part of
middle class & upper middle class.
Lack of production centers in India makes the product costlier as most of the parts have to be
imported.
Lack of R & D centers also makes it difficult to launch new products over here.
OPPORTUNITIES: 36
The present rate of growth of the Entertainment & Telecommunication Industry & a large potential
available in these areas provides excellent opportunity for the company to widen its market.
With the fast growing economy, the pricing strategy needs to be tackled with care as it can decide
upon long term decisions of the company.
THREATS: It is natural that threats from the existing as well as new entrants will affect the present
turnover & Market share. The nearest competitors having the identical product range are
the greatest threat to the company.
37
CHAPTER 4- RECOMENDATIONS
The company should try to reach maximum Consumers in INDIA by making distribution
channel more effective.
The company should continue to work on the Strategy of T.Q.M (Total Quality
Management)
The MOTOROLA is a brand in itself and non-of the other brands are in a position to
compare with it in Quality, Reliability, Brand Image. Even then a number of other
brands are entering the market and are acquiring a good market share. The main
reason behind it is that the distributors of the company are not able to provide regular
supply to the retailers in all the areas.
Consumers do not get satisfied with the promotional policies of the company. New
techniques of promotion are required to create awareness about the entire range of
MOTOROLA products
LIMITATIONS
A small sample size of 50 customers was considered due to lack of time & resource constraints.
38
The scope of the project is limited to the city of Delhi and N.C.R. So, we cannot say that the same
response will exist throughout India.
With regard to uneducated customers it was difficult to get across to them all the features of their
respective mobile phones.
CONCLUSION
39
Hereby I can conclude from this research that Nokia has the maximum brand preference
as compared to other brands.
Most of the dealers are selling more than one brand. They sell different brands to gain
more volume & more availability to the customers. So dealers preference to push a
particular brand to the customer plays a major role in the mobile market.
According to the dealers advertising & promotional schemes along with other schemes
also affect the consumers willingness. Aggressive advertising put into effect for a long
time in the customers mind, which influence the people, are T.V, Newspapers &
magazines.
Consumers prefer a MNC brand due to the quality & technological superior features.
Consumers also judge the after sale service availability of the company before
purchasing a mobile.
BIBLIOGRAPHY
40
WEBSITES:
Http://en.wikipedia.org/wiki/Motorola
http://www.google.co.in/search?hl=en&q=motorola&meta=
Http://www.motorola.com/content.jsp?globalObjectId=8592-11929
http://www.fonearena.com/motorola-phones.html
41