PROJECT REPORT ON

Market segmentation
(MOBILE PHONES CONSUMER PREFERENCE AND SATISFACTION)

by
Mr.POONACHA.I.B
ENROLLMENT NO:-AA9041
For partial fulfilment of the requirements of final year MBA curriculum of
Two years Full time MBA (Industry Integrated) Programme.

Submitted to:

Through
 STUDENT’S DECLARATION

I hereby solemnly affirm, declare and state that report titled

“Market segmentation(On mobile phones according to the
consumer preference and satisfaction)” was done by me with
due diligence and sincerity and this report based on that study
is a bonafied work by me and submitted to ANNAMALAI
UNIVERSITY through RAMAIAH INSTITUTE OF
MANAGEMENT SCIENCES under the guidance and
supervision of Prof. Siloyam.D, Faculty RIMS is my original
work and not submitted for the award of any other degree,
diploma, fellowship or other similar title or prizes.

PLACE: BANGALORE Signature:

DATE: ENROLLMENT NO.AA9041

 CERTIFICATE FROM THE GUIDE

This is to certify that the project report titled “ Market

segmentation(On mobile phones according to consumer

preference and satisfaction)” by Mr.POONACHA.I.B,

Enrollment no:AA9041 carried out in partial fulfilment for the

award of degree of MBA (Industry Integrated) programme of

Annamalai University at RIMS, Bangalore under my guidance

and direction. This study report is an original work and not

submitted earlier to any University/Institute.

PLACE: BANGALORE Signature:

DATE: Guide’s Name

 Executive Summary

This Project deals with Various Market Segmentation done in Mobile Industries. This Project
mainly focuses on Various Market Segmentation of mobile phone according to the consumer
preference and satisfaction in the Market.
Nokia is a world leader in mobile communications, followed by Samsung, Sony Ericson, LG
and other small competitors 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.
Marketing is one of the most important functions in business. It is the discipline required to
understand customers' needs and the benefits they seek. Academics does not have one
commonly agreed upon definition. Even after a better part of a century the debate continues.
In a nutshell it consists of the social and managerial processes by which products (goods or
services) and value are exchanged in order to fulfil the needs and wants of individuals or
groups.

Market segmentation is the process of identifying key groups or segments within the general
market that share specific characteristics and consumer habits. Once the market is broken into
segments, companies can develop advertising programs for each segment, focus advertising
on one or two segments or niches, or develop new products to appeal to one or more of the
segments. Companies often favor this method of marketing to the one-size fits-all mass
marketing approach, because it allows them to target specific groups that might not be
reached by mass marketing programs

The market can be divided into segments by using four "segmentation basis": Psychographic,
behaviorist, geographic, and demographic basis The basic criteria for segmenting a market is
are customer needs. To find the needs of the customers in the market it is important to
undergo a Market research. Psychographic and behaviorist bases are used to determine
preferences and demand for a product and advertising content, while geographic and
demographic criteria are used to determine product design and regional focus.
This literature review will analyze the project on ‘Market Segmentation of mobile phones
according to the consumer preference and satisfaction and on past and current research that
has been done which relates to the market segmentation. This critical analysis of literature
contains data about marketing and segmentation strategies collected from various sources.
It is important to understand why people and market needs to be divided into different
segments. A segmented market is seen as an opportunity to effectively focus on particular
customers. This appeal to potential customers and also marketers, as they know that this is
what they will have to do.
This study also shows how mobile companies, segments its market and focuses its products
efficiently towards the customers of a particular segment. This gives a competitive advantage
to the company by serving its customers well.

Objective of the study

The objective of the current study is:-

1. To know about the mobile industry

2. To know about the interest towards mobiles regarding the
functionality.
3. To know about the current data of the market.
4. To know about the market segment on the basis of consumers
preference.
5. To know the satisfaction of the consumers on selecting the brand.
Research methodology

Research always starts with a question or a problem. Its purpose is to question through the
application of the scientific method. It is a systematic and intensive study directed towards a
more complete knowledge of the subject studied. Marketing research is the function which
links the consumer, customer and public to the marketer through information- information
used to identify and define marketing opportunities and problems generate, refine, and
evaluate marketing actions, monitor marketing actions, monitor marketing performance and
improve understanding of market as a process

There are two types of data collection method use in my project report.
– Primary data
– Secondary data.

For my project, I decided on primary data collection method by approaching customers

directly and through references to know their views about the company.

Sampling- it was done on the systematic sampling method and a sample of 100 has been
taken and questionnaire was distributed and a few interviews were taken through telephonic
method.

Secondary data collection method was used by referring to various websites, for collecting
information regarding project under study
 REVIEW OF RELATED LITERATURE

Market Segmentation

Market segmentation is the identification of portions of the market that are different from one
another. Segmentation allows the firm to better satisfy the needs of its potential customers.

The Need for Market Segmentation

The marketing concept calls for understanding customers and satisfying their needs better
than the competition. But different customers have different needs, and it rarely is possible to
satisfy all customers by treating them alike.

Mass marketing refers to treatment of the market as a homogenous group and offering the
same marketing mix to all customers. Mass marketing allows economies of scale to be
realized through mass production, mass distribution, and mass communication. The drawback
of mass marketing is that customer needs and preferences differ and the same offering is
unlikely to be viewed as optimal by all customers. If firms ignored the differing customer
needs, another firm likely would enter the market with a product that serves a specific group,
and the incumbent firms would lose those customers.

Target marketing on the other hand recognizes the diversity of customers and does not try to
please all of them with the same offering. The first step in target marketing is to identify
different market segments and their needs.

Requirements of Market Segments

In addition to having different needs, for segments to be practical they should be evaluated
against the following criteria:

 Identifiable: the differentiating attributes of the segments must be measurable so that

they can be identified.
  Accessible: the segments must be reachable through communication and distribution
channels.

 Substantial: the segments should be sufficiently large to justify the resources required
to target them.

 Unique needs: to justify separate offerings, the segments must respond differently to
the different marketing mixes.

 Durable: the segments should be relatively stable to minimize the cost of frequent
changes.

Bases for Segmentation in Consumer Markets

Consumer markets can be segmented on the following customer characteristics.

 Geographic
 Demographic
 Psychographic
 Behavioural

Geographic Segmentation:

Geographic basis focus on preferences contingent on regional factors, such as region (e.g.,
North or South), county, population density, urban or rural location, and climate. Collecting
and analyzing information according to the physical location of the customer or other data
source .Geographic segmentation is often used in marketing, since companies selling
products and services would like to know where their products are being sold in order to
increase advertising and sales efforts there.

Geographic segmentation calls for dividing the market into different geographical units such
as nation, states, regions, countries, cities, or neighbourhoods. The company can operate in
one or a few geographic areas, or operate in all but pay attention to local variations.

The following are some examples of geographic variables often used in segmentation.

 Region: by continent, country, state, or even neighbourhood

 Size of metropolitan area: segmented according to size of population

 Population density: often classified as urban, suburban, or rural

  Climate: according to weather patterns common to certain geographic regions

Demographic Segmentation:

Market segment based on difference in demographic factors (which normally match

consumer wants and needs) of different groups of consumers. It is one of the five common
segmentation strategies, and aims to define specific niches that require custom-tailored
promotion.

Demographics include personal characteristics such as gender, age, marital status, social
attributes (such as ethnicity and religion), and income level.

In demographic segmentation , the market is divided into groups on the basis of variables
such as age , family life cycle , gender , income , occupation , education , religion , race ,
generation , nationality , and social class. Demographic variables are the most popular bases
for distinguishing customer groups. One reason is that consumer wants, preferences, and
usage rates are often associated with demographic variables. Another is that demographic
variables are easier to measure.

Some demographic segmentation variables include:

 Age
 Gender
 Family size
 Family lifecycle
 Generation: baby-boomers, Generation X, etc.
 Income
 Occupation
 Education
 Ethnicity
 Nationality
 Religion
 Social class
Many of these variables have standard categories for their values. For example, family
lifecycle often is expressed as bachelor, married with no children (DINKS: Double Income,
No Kids), full-nest, empty-nest, or solitary survivor. Some of these categories have several
stages, for example, full-nest I, II, or III depending on the age of the children.

Psychographic Segmentation:

The division of a heterogeneous market into relatively homogeneous groups on the basis of
their attitudes, beliefs, opinions, personalities and lifestyles; sometimes called "State-of-Mind
“Segmentation.
Personality the distinctive character of an individual; used as a basis for the psychographic
segmentation of a market in which individuals of relatively similar personality, with similar
needs or wants, are grouped into one segment.
In psychographic segmentation, buyers are divided into different groups on the basis of
lifestyle or personality or values. People within the same demographic group can exhibit very
different psychographic profiles.

Psychographic segmentation groups customers according to their lifestyle. Activities,

interests, and opinions (AIO) surveys are one tool for measuring lifestyle. Some
psychographic variables include:

 Activities
 Interests
 Opinions
 Attitudes
 Values

Behavioural Segmentation:

Market segment based on difference on consumer behavior of different groups of consumers

—their life-styles, patterns of buying and using, patterns of spending money and time, etc.
One of the five common segmentation strategies, its objective is to define specific niches that
require custom-tailored promotion. In behavioral segmentation, buyers are divided into
groups on the basis of their knowledge of, attitude toward, use of, or response to a product.
Many marketers believe that behavioral variables- occasions, benefits, user status, usage rate,
loyalty status, buyer-readiness stage, and attitude—are the best starting points for
constructing market segments.

Behavioural segmentation is based on actual customer behaviour toward products. Some

behavioural variables include:

 Benefits sought
 Usage rate
 Brand loyalty
 User status: potential, first-time, regular, etc.
 Readiness to buy
 Occasions: holidays and events that stimulate purchases

Behavioural segmentation has the advantage of using variables that are closely related to the
product itself. It is a fairly direct starting point for market segmentation.

Bases for Segmentation in Industrial Markets

In contrast to consumers, industrial customers tend to be fewer in number and purchase larger
quantities. They evaluate offerings in more detail, and the decision process usually involves
more than one person. These characteristics apply to organizations such as manufacturers and
service providers, as well as resellers, governments, and institutions.

Many of the consumer market segmentation variables can be applied to industrial markets.
Industrial markets might be segmented on characteristics such as:

 Location
 Company type
 Behavioral characteristics

Location:

In industrial markets, customer location may be important in some cases. Shipping costs may
be a purchase factor for vendor selection for products having a high bulk to value ratio, so
distance from the vendor may be critical. In some industries firms tend to cluster together
geographically and therefore may have similar needs within a region.

Company Type:
Business customers can be classified according to type as follows:

 Company size
 Industry
 Decision making unit
 Purchase Criteria

Behavioural Characteristics:

In industrial markets, patterns of purchase behaviour can be a basis for segmentation. Such
behavioural characteristics may include:

 Usage rate
 Buying status: potential, first-time, regular, etc.
 Purchase procedure: sealed bids, negotiations, etc.

Advantages :
 Identifies needs and wants of consumers
 Determines demand for product
 Aids in design of products that fulfill consumers needs
 Outlines measures for generating the cash for daily operation, to repay
Debts and to turn a profit

 Identifies competitors and analyzes your product's or firm's

competitive advantage
 Identifies new product areas
 Identifies new and/or potential customers
 Allows for test to see if strategies are giving the desired results.

Disadvantages:

• Identifies weaknesses in your business skills

• Leads to faulty marketing decisions based on improperly analyzed data
• Creates unrealistic financial projections if information is interpreted incorrectly
• Identifies weaknesses in your overall business plan

Considerations for Market Segmentation

To identify segments, marketers examine consumers' interests, tastes, preferences,
and socioeconomic characteristics in order to determine their patterns of consumption and
how they will respond to various marketing strategies. The primary information marketers
seek is why consumers purchase specific products or services but not others. Catalog retailers
and direct-marketing firms make up some of the key users of market segmentation, although
many other kinds of companies and organizations use this technique.

Representation of Market Segment

Market Demand:

Aggregate of the demands of all potential customers (market participants) for a specific
product over a specific period in a specific market.

Market segment:
Identifiable group of individuals, families, firms, or organizations, sharing one or more
characteristics or needs in an otherwise homogenous market. Market segments generally
respond in a predictable manner to a marketing or promotion offer.
1. Set of potential customers: •
 Who have similar needs
 Who reference each other when buying

2. Are alike in the way they:

 Perceive value
 View products and services
 Purchase products and services

Why Define A Market Segment?

 Easier to understand customer needs

 Focus “whole solution” to a narrower set of customer needs
 Easier to become a leader in a smaller market (Big fish in small pond)
 More effective use of marketing dollars
 Generally more profitable

Why market segmentation?

 A major key to a company’s success is its ability to select the most
appropriate market segmentation because a company cannot target whole market. There are
general guidelines for selection of target markets

 Target market should be compatible with the organization goals

and image.

 The target market should match the marketing opportunity with

The company’s resources.

 An organization should consciously seek markets that will generate a

sufficient sales volume at a low cost to result in a profit.
 A company should select a market wherein the number of

The total markets for many products is to varied-too heterogeneous. This variation Is due to
the differences in buying habits ways to use the products motives for buying etc. Market
segmentation takes these difficulties into account

Benefits of Market Segmentation :

• Better marketing job and efficient use of marketing resources.
• Small firm with limited resources can compete effectively in one or
two market segments.
• A company can design products that really match the market
demands.
• Advertising media can be used more effectively toward each segment

Drawbacks of Market Segmentation up to some extent:

• It is an expensive proposition in both the production and marketing
of products.
• Segmentation increases marketing expenses in several ways i.e.
Inventory cost goes up, advertising cost goes up, administrative
expense goes u

History of mobile phone

The history of mobile phones begins with early efforts to develop mobile telephony concepts
using two-way radios and continues through emergence of modern mobile phones and
associated services.

Radiophones have a long and varied history going back to Reginald Fessenden's invention
and shore-to-ship demonstration of radio telephony, through the Second World War with
military use of radio telephony links and civil services in the 1950s, while hand-held mobile
radio devices have been available since 1973. Mobile phone history is often divided into
generations (first, second, third and so on) to mark significant step changes in capabilities as
the technology improved over the years.

Beginning of mobile phone era

In Europe, radio telephony was first used on the first-class passenger trains between Berlin
and Hamburg in 1926. At the same time, radio telephony was introduced on passenger
airplanes for air traffic security. Later radio telephony was introduced on a large scale in
German tanks during the Second World War. After the war German police in the British zone
of occupation first used surplus tank telephony equipment to run radio patrol cars. In all of
these cases the service was confined to specialists that were trained to use the equipment. In
the early 1950s ships on the Rhine were among the first to use radio telephony with an
untrained end customer as a user.

However it was the 1940s onwards that saw the seeds of technological development which
would eventually produce the mobile phone that we know today. Motorola developed a
backpacked two-way radio, the Walkie-Talkie and a large hand-held two-way radio for the
US military. This battery powered "Handie-Talkie" (HT) was about the size of a man's
forearm. In 1946 in St. Louis, the Mobile Telephone Service was introduced. Only three radio
channels were available, and call set-up required manual operation by a mobile operator.
Also that year, Soviet engineers G. Shapiro and I. Zaharchenko successfully tested their
version of a radio mobile phone mounted inside a car. This device could connect to local
telephone network with a range of up to 20 kilometers.
During the 1950s the experiments of the pioneers started to appear as usable services across
society, both commercially and culturally. In the 1954 movie Sabrina, the businessman Linus
Larrabee (played by Humphrey Bogart) makes a call from the phone in the back of his
limousine. In 1957 a young Soviet radio engineer Leonid Kupriyanovich from Moscow
created a portable mobile phone, and named it the LK-1 after himself. This mobile phone
consisted of a relatively small handset equipped with an antenna and rotary dial, and
communicated with a base station. The LK-1 weighed 3 kilograms and could operate in a
range of up to 20 or 30 kilometers. The battery lasted 20 to 30 hours. The LK-1 was depicted
in popular Soviet magazines as Nauka i zhizn. Kupriyanovich patented his mobile phone in
the same year. The base station serving the LK-1 (called ATR, or Automated Telephone
Radiostation) could connect to local telephone network and serve several customers. During
1958, Kupriyanovich produced a "pocket" version. The weight of improved lighter handset
was about 500 grams.

In 1964 Improved Mobile Telephone Service was introduced with additional channels and
more automatic handling of calls to the public switched telephone network. Even the addition
of radio channels in three bands was insufficient to meet demand for vehicle-mounted mobile
radio systems.

In 1969, a patent for a wireless phone using an acoustic coupler for incoming calls was issued
in US Patent Number 3,449,750 to George Sweigert of Euclid, Ohio on June 10, 1969, but
did not include dialing a number for outgoing calls.

The beginning history of cell phones is based upon radio technology that was developed from
the 1940's onward. For instance the beginning of cell phones can be traced to the innovation
in taxi cabs, police cars and other service vehicles where two way radios were used to
communicate with one another or with a central base. Early cell phone communication
technology could be even traced back to individuals with special radios that can patch into a
phone line via live operator to make a phone call.

The first official mobile phone was used in Sweden by the Swedish police in 1946. The
technology was connected to the telephone network and was distinctive of two way radio
technology. The phone was not very practical; it was only able to make 6 phone calls before
the car's battery was drained.
The technology of modern cell phones started with the creation of hexagonal cells for mobile
phones by D.H. Ring from Bell Labs in 1947, later on another engineer from Bell Labs
conceived of cell towers that would transmit and receive signals in three directions instead of
normal bi directional antennas. However, although some technologies have been developed,
electronics and other technologies would take decades to mature and to be developed. For
instance, the electronics that were used in the first cell phones were first developed in the
1960's

By 1967, mobile phone technology was available; however, the user had to stay within one
cell area. Cell areas which were serviced by a base station were unable to hand off cellular
phone calls from one base station to another. While you could make a phone, call, you
weren't able to continue the call after you reached a set range. In 1970, Amos Edward Joel,
who also was an engineer at Bell Labs, developed the call handoff system. This technology
facilitated continuity of a phone call from one area to another without dropping the phone
call.

While the technology had been developed, it wasn't until 1971 that AT&T submitted a
request to the FCC for cellular service. It took more than 10 years for an approval and in
1982; the FCC allocated the frequencies of 824-894 MHZ Band to Advanced Mobile Phone
Service (AMPS). From 1982 to 1990, AMPS was an analog service, Digital AMPS came
online as of 1990.

Throughout the decades, there have been many technologies that existed that made mobile
phones available. Most of the time, these phones were installed in vehicles due to the large
battery requirements. For instance, the MTA (Mobile Telephone System A) developed by
Eriksson was available in Sweden in 1950's. Unfortunately, it weighed over 80 pounds, later
versions however weighed around the 20 pound range, still making it ineffective for truly
portable devices that are used today.

ANALYSIS OF MOBILE COMMUNICATION SPREAD AND ITS

IMPLICATIONS IN INDIA

History of Cellular Telephony in India:

Initially Department of Telecommunications (DoT) was the only monopoly operator in
the country. Telecommunication sector was recognized by the Government of India as one of
the few basic infrastructure sectors for the country. Under the Government policy of
economic liberalization, privatization and competition in India, private sectors have been
allowed to enter the public telecommunication field (where Government was a monopoly). In
1992 telecommunication sector in India was liberalized to bridge the gap through government
spending and to provide additional resources for the nation’s telecom target. The objective of
the reform was making the telecommunications within the reach of all, thereby achieving
universal service, covering all villages and bringing the telecommunication services to the
world standard, while protecting the defense and security needs of the country

In 1993 the telecom industry got an annual foreign investment of Rs 20.6 million. In
1994 license for providing cellular mobile services was granted by the Government of India
for the Metropolitan cites of Delhi, Mumbai, Kolkata and Chennai. Initially Cellular mobile
services were duopoly (i.e. not more than two cellular mobile operators could be licensed in
each telecom circle), under a fixed license fee. In 1995, government opened up 19 more
telecom circles and issued mobile licenses.
To regulate and settle disputes Telecom Regulatory Authority of India was set up in
1997 and in 1999 National Telecom Policy was announced by the Government of India. In
order to speed up the development of the telecom sector, all telecom services were opened up
for private sector participation

Unrestricted entry is allowed in the basic services, national and international long distance
service, in global mobile personal communication by satellite (GMPCS) service, VSAT and
Public Mobile Radio Trunked Service (PMRTS). All telecom sectors under DoT was handed
over to new public Sector Undertaking viz, Bharat Sanchar Nigam Limited (BSNL) which
was registered under Company’s Act in 1st October 2005.BSNL covers the entire country
except Delhi and Mumbai Metros which are under Mahanagar Telephone Nigam Limited
(MTNL).

Major Service providers in India

Two different technologies are deployed by the mobile operators in India namely GSM
and CDMA.The GSM service providers are Bharthi, BSNL, Hutch, IDEA, Aircel, Reliance,
Spice, MTNL and BPL, whereas the CDMA service providers are TATA, HFCl, Shyam, and
Reliance. Figure 1 shows the market share of each service provider in India. India’s mobile
market is dominated by foreign companies for high end telecom equipments, handsets,
transmission equipments etc., Nokia, Samsung, and Motorola are the three important vendors
for handsets. Other vendors who have their share in this market are L.G, Alcatel, Sony
Ericsson, Siemens, National Panasonic, Philips, Mitsubishi, and Sagem.

Mobile subscribers statistics

During the month of September, Indian mobile industry adds 10 million subscribers
maintaining its rapid march northwards. GSM flying the rating chart with the additions of
7.69 million subscribers, the CDMA sector managed to add 2.34 million new subscribers. At
the end of September, India totals its subscriber base close to 310 million in which 233
million subscribers are in its GSM kitty at a market share of 75%.

First Generation Cell Phones

In 1983, Motorola unveiled to the world, the first truly portable cellular phone. It was called
the Motorola DynaTAC 8000X. It was approved for use in the United States by the FCC.
Motorola developed the technology for cellular phones for decades and this particular phone
took 15 years to come to market at an expense of over 100 million dollars in research costs.
The DynaTAC800X was extremely lightweight for its time and only weighed about 28
ounces. It was 13 inches x 1.75 inches x 3.5 inches and was known as the Brick for its shape.
It was largely developed with the help of Dr. Martin Cooper of Motorola.

From 1983 to the end of the 1980's cell phones grew in popularity due to the innovations in
cellular networks that were able to handle phone calls in either one area or hand them off to
other areas. While most cell phones weren't made to be carried in your hand, all phones were
made for permanent installation in the car. For a while the term "car phone" was extremely
popular. Besides car phones, there were a few models that came in tote bag type
configurations that can easily hook up to a car's battery, via the DC outlet to make calls.
There were also a few models that came as briefcases, to hold large batteries necessary to
make phone calls.
1G - First Generation networks

1G - First Generation mobile phone networks were the earliest cellular systems to develop,
and they relied on a network of distributed transceivers to communicate with the mobile
phones. First Generation phones were also analogue, used for voice calls only, and their
signals were transmitted by the method of frequency modulation. These systems typically
allocated one 25 MHz frequency band for the signals to be sent from the cell base station to
the handset, and a second different 25 MHz band for signals being returned from the handset
to the base station. These bands were then split into a number of communications channels,
each of which would be used by a particular caller.

In the case of AMPS, the first 1G system to start operating in the USA (in July 1978), each
channel was separated from the adjacent channels by a spacing of 30 kHz, which was not
particularly efficient in terms of the available radio spectrum, and this placed a limitation on
the number of calls that could be made at any one time. However, the system was a multiple
access one, because a second caller could use the same channel, once the first caller had hung
up. Such a system is called "frequency division multiple access" (FDMA).

In addition, because the cell transmitter's power output is restricted and designed to cover a
specific area, it is possible to use the same frequencies in other cells that are far enough away
for there to be no interference - this system is called frequency re-use, and enables the
network capacity to be increased. The cellular structure of the network is also responsible for
another feature of cell phone communications, i.e. that it is necessary for some sort of
handover to take place when the mobile phone passes from one cell area to another, and this
requires that the pair of frequencies used by the phone are changed at the time of handover.

NMT 450, the Nordic Mobile Telephone System using the 450 MHz band, was the first cell
phone network to start operating in Europe (i.e. Scandinavia) in 1981. Later, in 1985, the
United Kingdom began operations with its TACS (Total Access Communications System).
With the introduction of 2G networks, the 1G phones were destined to become obsolete, as
they were not adaptable to the new 2G standards and also had other drawbacks, such as their
poor security due to the lack of encryption, and the fact that anyone with a receiver tuned to
the right frequency could overhear the conversation.
Second Generation Cellular Phones

Cellular phones from the early 1990's are considered being second generation (2G) and they
were able to work on mobile phone systems such as GSM, IS-136 (TDMA) and IS-95
(CDMA). Digital mobile phone networks were in use in the United States in 1990 and in
Europe by 1991. 2G mobile phones use digital circuit switched transmissions. This ultimately
enabled quicker network signaling, lowering the amount of dropped calls and increasing call
quality. As 2G digital networks were online, most of the time, they replaced analog network
frequencies, effectively making them obsolete.

Phones based on 2G technology were much smaller than the brick telephones of the mid to
late 80's. Most 2G cellular phones were usually in the range of 100 to 200 grams, plus they
were hand held devices that were truly portable without the need for a large battery.
Advances in battery technology, as well as computer chip technology also helped to make 2G
cell phones much smaller than their predecessors. With these innovations, cell phone usage
soared.

2G - Second Generation networks

2G - Second Generation mobile telephone networks were the logical next stage in the
development of wireless systems after 1G, and they introduced for the first time a mobile
phone system that used purely digital technology. The demands placed on the networks,
particularly in the densely populated areas within cities, meant that increasingly sophisticated
methods had to be employed to handle the large number of calls, and so avoid the risks of
interference and dropped calls at handoffs. Although many of the principles involved in a 1G
system also apply to 2G - they both use the same cell structure - there are also differences in
the way that the signals are handled, and the 1G networks are not capable of providing the
more advanced features of the 2G systems, such as caller identity and text messaging.
One of the successful 2G digital systems is GSM, a mobile phone standard that was
developed during the 1980s, and is currently under the control of the ETSI. With the benefit
of a well-specified system, commercial GSM services were able to start operating in Europe
in mid-1991. The GSM system is able to utilise any of the three frequency bands at 900, 1800
and 1900 MHz, and many GSM phones can operate as dual-band or tri-band phones, whereby
they are adaptable to the local frequency system in the region the user travels through.

In GSM 900, for example, two frequency bands of 25 MHz bandwidth are used. The band
890-915 MHz is dedicated to uplink communications from the mobile station to the base
station, and the band 935-960 MHz is used for the downlink communications from the base
station to the mobile station. Each band is divided into 124 carrier frequencies, spaced 200
kHz apart, in a similar fashion to the FDMA method used in 1G systems. Then, each carrier
frequency is further divided using TDMA into eight 577 uS long "time slots", every one of
which represents one communication channel - the total number of possible channels
available is therefore 124 x 8, producing a theoretical maximum of 992 simultaneous
conversations. In the USA, a different form of TDMA is used in the system known as IS-136
D-AMPS, and there is another US system called IS-95 (CDMAone), which is a spread
spectrum code division multiple access (CDMA) system. CDMA is the technique used in 3G
systems.

Third Generation Cellular Phones

Third Generation cellular phones is the technology that is currently available today and it is
commonly referred to as 3G. While 3G came only a few years after 2G, mainly due to many
innovations in technology and services, standards for 3G are usually different depending on
the network.

It is usually stated that 3G is not necessarily a rigid standard, but is a set of requirements that
most networks and cell phone providers follow. There are two main requirements; they
include 2 Megabits of maximum data rate indoors and 384 kbits for outdoor use. 3G mobile
phones usually include innovations to receive much more than phone calls, for instance, SMS
text is available and some 3G phones also offer email and Internet access. Currently
technologies are continuing to improve and new innovations such as streaming radio and TV,
as well as Wi-Fi are currently breaking into the market.

3G - Third Generation networks

3G - Third Generation mobile telephone networks are the latest stage in the development of
wireless communications technology. Significant features of 3G systems are that they support
much higher data transmission rates and offer increased capacity, which makes them suitable
for high-speed data applications as well as for the traditional voice calls. In fact, 3G systems
are designed to process data, and since voice signals are converted to digital data, this results
in speech being dealt with in much the same way as any other form of data. Third Generation
systems use packet-switching technology, which is more efficient and faster than the
traditional circuit-switched systems, but they do require a somewhat different infrastructure
to the 2G systems.

The benefits of higher data rates and greater bandwidth mean that 3G mobile phones can
offer subscribers a wide range of data services, such as mobile Internet access and
multimedia applications. Compared to earlier mobile phones a 3G handset provides many
new features, and the possibilities for new services are almost limitless, including many
popular applications such as TV streaming, multimedia, videoconferencing, Web browsing,
e-mail, paging, fax, and navigational maps.

The Third Generation mobile communication standard was a programme led originally by the
ITU (International Telecommunications Union) under the IMT-2000 project, which generated
a family of standards for use in 3G devices and networks, and they are generally defined
under the title of Universal Mobile Telecommunication Service (UMTS).
Japan was the first country to introduce a 3G system, which was largely because the Japanese
PDC networks were under severe pressure from the vast appetite in Japan for digital mobile
phones. Unlike the GSM systems, which developed various ways to deal with demand for
improved services, Japan had no 2.5G enhancement stage to bridge the gap between 2G and
3G, and so the move into the new standard was seen as a solution to their capacity problems.

Despite all the good intentions, that the IMT-2000 specification would become a single,
global and standardised 3G system, this has not worked out in practice, and three different
versions of 3G systems have developed, each one evolved from an existing 2G system. This
is an understandable evolutionary route, as leading telecommunications companies have
invested vast amounts of resources into their network infrastructure and spectrum allocations,
and it was not practical to simply change from one system to another.

The main 3G technologies include UMTS and cdma2000™, with Europe settling on the
UMTS with wideband CDMA (W-CDMA) as its chosen approach, whilst in the USA the
cdmaOne networks will be upgraded to CDMA2000, a multi-carrier CDMA (MC-CDMA).

It is generally accepted that CDMA is a superior transmission technology, when it is

compared to the old techniques used in GSM/TDMA. WCDMA systems make more efficient
use of the available spectrum, because the CDMA technique enables all base stations to use
the same frequency. In the WCDMA system, the data is split into separate packets, which are
then transmitted using packet switching technology, and the packets are reassembled in the
correct sequence at the receiver end by using the code that is sent with each packet. WCDMA
has a potential problem, caused by the fact that, as more users simultaneously communicate
with a base station, then a phenomenon known as “cell breathing” can occur. This effect
means that the users will compete for the finite power of the base station’s transmitter, which
can reduce the cell’s range – W-CDMA and cdma2000 have been designed to alleviate this
problem.

The Third Generation of mobile phones is also designed for global roaming throughout
Europe, North America and Japan, and will be widely available in many countries during
2004. However there are problems due to the different standards, and so it is still necessary
for phones to be multi-band or multi-mode for widespread roaming. A 3G phone may have to
make use of existing 2G and 2.5G networks where the 3G service is unavailable.
The operating frequencies of many 3G systems will typically use parts of the radio spectrum
in the region of approximately 2GHz (the IMT-2000 core band), which were not available to
operators of 2G systems, and so are away from the crowded frequency bands currently being
used for 2G and 2.5G networks. UMTS systems are designed to provide a range of data rates,
depending on the user’s circumstances, providing up to 144 kbps for moving vehicles (macro
cellular environments), up to 384 kbps for pedestrians (microcellular environments) and up to
2 Mbps for indoor or stationary users (picocellular environments). In contrast, the data rates
supported by the basic 2G networks were only 9.6 kbps, such as in GSM, which was
inadequate to provide any sophisticated digital services.

Mobile Phones in India

The Mobile Phones in India industry profile is an essential resource for top-level data
and analysis covering the Mobile Phones industry. It includes data on market size and
segmentation, plus textual and graphical analysis of the key trends and competitive
landscape, leading companies and demographic information.

Scope:

 Contains an executive summary and data on value, volume and/or segmentation

 Provides textual analysis of Mobile Phones in India’s recent performance and future
prospects
 Incorporates in-depth five forces competitive environment analysis and scorecards
 Includes a five-year forecast of Mobile Phones in India
 The leading companies are profiled with supporting key financial metrics
 Supported by the key macroeconomic and demographic data affecting the market

Highlights:

 Detailed information is included on market size, measured by value and/or volume

 Five forces scorecards provide an accessible yet in depth view of the market’s
competitive landscape

Market Definition

The mobile phone market consists of all analog and digital handsets used for mobile
telephony. Market volumes for a given year are defined as the number of shipments to
end-users, including both new uptake and renewal purchases. Market values are given at
 retail selling price (RSP). Any currency conversions used in the creation of this report
have been calculated using constant 2009 annual average exchange rates

Emerging Rural Mobile Market in India

The Indian mobile market has been continued to witness rapid increase in its subscriber base
over the past few years, largely due to the declining mobile tariffs and availability of low cost
handsets in the country. The country saw addition of an average of around 10 Million
subscribers per month in its mobile subscriber base during 2008 with penetration approaching
saturation in urban India. With this, mobile operators in the country are now vying rural India
as their next area for growth in the near future. Meanwhile, a number of mobile handset
manufacturers have been working to cover the untapped rural mobile market, which will be
the major driver for Indian mobile market in coming years

According to our latest study on sector called, “Emerging Rural Mobile Market in India”, the
mobile market in rural India has significant potential with number of subscribers anticipated
to grow at a CAGR of around 32% during 2009 to 2012. The report thoroughly discusses
about the factor which will drive the growth of rural mobile market over the forecasted
period.

Our research highlights that the success mantra for rural mobile market in India lies in the
operators’ service pricing models coupled with the availability of low cost handsets that
support affordable access for rural areas. It is forecasted that sales of mobile handsets in rural
India will grow at CAGR of around 17% from 2009 to 2012. Availability of low-cost battery
efficient handsets will drive the future sales in this segment.

This report covers various aspects of the Indian rural mobile market. It gives detailed analysis
of the rural mobile market in terms of total subscribers, subscribers by technology and service
providers. Each section sufficiently explains the current and future market trends, and
developments in the Indian rural mobile market. Our research foresees immense opportunities
for various industry players including mobile operators and handset manufacturers.

Besides this, we have also comprehensively analyzed the mobile market in metros and in
various circles, rural mobile penetration in different states helping the clients to understand
the mobile market trends and developments across the country. The study also evaluates
various strategies that will boost the rural mobile market in India.

Economic benefits of mobile services in India

According to a study conducted by the reputed international agency, Ovum on “The

economic benefits of mobile services in India” the Indian mobile industry is a major
contributor to the social and economic growth of the country, in terms of employment
generation, revenues to the Government, GDP growth and rural development.

Employment
Because of the mobile industry about 3.6 million jobs could be generated directly or
indirectly. Ovum has also estimated that employment dependent on the industry is expected
to rise by at least 30% over the next 12 months.

Government Revenues
The Government can generate Rs.145 billion per annum through License Fees, Spectrum
Fees, Import Duties, Taxes, etc. from Mobile industry.

GDP Growth

Let us first examine the evidence that the use of mobile phones boosts overall GDP.
Vodafone (2005) reported that, in a typical developing country, an increase of 10 mobile
phones per 100 people boosts GDP growth by 6%. Ovum (2006) reported that the mobile
services industry contributed Rs 313 ($7.8 billion) towards GDP in India.

Year Telephones - mobile cellular per capita

2008 14.46869281

This entry gives the estimated number of mobile phone lines per 100 people. It is also known
as the mobile phone penetration rate.

Rural Development
Research shows that having access to telecommunications would substantially
improve the social and economic conditions of people living in rural areas by improving
access to family, education, health and financial services and by enabling the development
of non-agricultural economic activity. Government has set a target of 20% for rural mobile
coverage by the end of 2004 and 75% by the end of 2006. Taking the OVUM findings as
the base, COAI has tried to estimate the benefits from mobile communications for the
future years. The benefits listed by OVUM are for a subs base of 48 million in January
2005. Pro-rating the data on a simplistic estimate at a mobile subscriber base of 200 million
in 2007, the industry would contribute 10 million jobs and Rs.500 billion annual revenue to
the Government

Industry Analysis: 
Industry Analysis Number of mobile subscribers in INDIA has crossed the 250 million mark.
Mobile phone production in India was expected to grow from 51 million units to 110 million
units by 2011.

Handset Market Share

 Nokia: 49.5%
 Sony: 10.1%
 Samsung: 12%
 Motorola: 9.9%
 Others: remaining

Consumer behaviour towards mobile phones:

In fewer than twenty years, mobile phones have gone from being rare and expensive pieces of
equipment used by businesses to a pervasive low-cost personal item. In many countries,
mobile phones now outnumber land-line telephones, with most adults and many children now
owning mobile phones the mobile phone itself has also become a totemic and fashion object,
with users decorating, customizing, and accessorizing their mobile phones to reflect their
personality. This has emerged as its own industry. The researcher feels that the present study
helps to know the perceptions of the customers and the service providers between the two
major segments. i.e. rural and urban. It gives a proper idea on the customer’s expectations
which in turn helps in designing the various business plans to suit the customers in different
segments
The financial crisis has affected every economy during the last decade thus under this
changing environment that effect the marketing strategies and these strategies began to
change according to the buying behaviour of the people. In this research the consumer
perspective is examined with the change in mobile phone technology. This is an industry of
constant change and innovation in which manufacturers are continually developing new
technologies for consumers. As the buying behaviour of the consumer is changing but how
these changes in mobile phone technologies are affecting the consumer is analyzed in this
research. The technologies used in the mobile phone are upgrading quickly that effect the
prices and technology of every new version of mobile phone. This made the consumer
confused to make a buying decision of mobile phone. We examined the problem with
consumer buying behaviour, in which the consumers purchase decision and post purchase
decision were analyzed under the impact of financial crisis. Furthermore, the buying process
of consumer helped us examining the attributes and satisfaction of purchase decision. For this
purpose, we formulated four propositions which were based on research problem and these
propositions were analyzed through different variables. We conducted questionnaire survey
from the consumers and collected data from 150 respondents. To analyze and draw
conclusion from the collected data, we ran different univariate and bivariate analysis. The
marketing strategies were analyzed through the buying behaviour which involved usage
situation and source of information for making the decision. The impact of financial crisis
was examined through the change in spending of consumer. The change in technology of
mobile phone was examined through the features and performance of mobile phone used by
the consumer.  Thus, we concluded that the buying behaviour of people changed due to
change in income, but this change showed more effect on the sales of the mobile phone than
on its technology. We analyzed that consumer want to retain their mobile phone for a long
period, but the technologies used by the mobile phone manufacturers are attracting them by
showing different benefits. As a result, the effect of different marketing strategies attracted
the consumer to purchase mobile phone with advanced technologies. On the other hand,
financial crisis didn’t show a major impact on the mobile phone market. The spending of the
consumer in crisis did not increase the demand for new technology but the change was due to
the nature of the mobile phone because it was considered as a commodity by the consumer.
Mobile phone performance and technology has built satisfaction in the people mind because
mobile phone manufacturers are providing advance technologies to the people.
The changing role of mobile communications is reflected in the increasing use of mobile
devices for e-commerce purposes. Supported by the penetration of mobile devices and the
evolution of mobile technologies, mobile commerce promises to change the way certain
business-to-consumer (B2C) activities are conducted. Focusing on B2C markets, this paper
underlines the critical role of consumer behaviour research in mobile commerce and
investigates, through an exploratory research approach, the critical success factors towards
mobile commerce diffusion. To that end, an online consumer survey ran in three European
countries (Finland, Germany and Greece). The results showed that mobile commerce (m-
commerce) penetration in Europe is in its infancy. In addition, significant differences
regarding consumer attitudes towards mobile commerce were observed among the countries
investigated. Lower prices, improved security, improved devices and effective customer
support, proved to be the critical success factors towards accelerating m-commerce consumer
adoption. It is concluded that the customisation of the marketing mix to the specific
characteristics of each target market is a key success factor for mobile operators in Europe.

Major Player in mobile industry in India

Nokia India:

 By 2010 number of mobile subscribers globally will increase to 4 billion.

 Worldwide 1 billion people use a Nokia device daily.
 India is the fastest growing market in terms of subscriber growth - over 8
million new subscribers per month.
 6 devices sold every second (worldwide), 2 per second out of them in India;
India is the second largest market for Nokia.
 Organized Trade - the Indian retail market, is the fifth largest retail destination
globally, it's estimated to grow to US$ 427 billion by 2010

Samsung India:

 Samsung India which commenced its operations in India in December 1995

enjoys a sales turnover of over US$ 1Bn in just a decade of operations in the
country
 Mobile handsets contributed 35 per cent of Samsung India’s turnover of over Rs
9,000 crore in 2009; consumer electronics was around 60 per cent, information
technology hardware made up the rest. In 2008, mobile handsets were 26 per
cent of turnover (Rs 7,600 crore).
 Samsung launched its mobile handsets way back in 1999. The first few years
were indifferent. The business began to pick up some two years ago. The last
one year, in fact, has been a dream run for Samsung. In November 2008, its
 share of the GSM mobile handset market was 7.8 per cent — no great shakes.
Exactly a year later, it stood at 16.3 per cent. This has catapulted Samsung to the
second spot after Nokia (70.1 per cent in November 2009)

Sony Ericson India:

 Sony Ericsson's market share in the Indian market has declined over the past
few years to be overtaken by the likes of Samsun and LG

 Sony Ericsson, having 6% of market share in India, is looking forward to revive

its fate with feature rich multimedia phones. Sony Ericsson had a negative growth
of 49 per cent YoY by the end of FY 2008-09, as the company did not have any
attractive product, after the Walkman series.
 Sony Ericsson is facing similar market situations globally as well. It is number
five when it comes to market share
 Sony Ericsson's market share dropped 2.8 percentage points YoY in the second
quarter of 2009 but its volume dropped 41 per cent.

LG India:
 Mobile handset maker LG India is looking to double its market share in the cell
phone segment to 10 per cent this year and achieve Rs 3,000 crore revenue
 LG India is targeting the youth in a big way and for this it has for the first time
appointed brand ambassadors
 LG India, which is in fierce competition with Nokia and Samsung, is looking to
up its position in the Indian market, currently of 100 million units in size.

Other local player:

 Local players have grabbed 17.5% market share [from 0.9%, a year back] These
include Micromax, Karbonn Mobiles, Spice Mobiles Ltd, Videocon Industries Ltd
and Lava International Ltd
 Only 5 local manufacturers in 2008 and the number stands at 28.
 Micromax has been one of the major winners, from nothing to 4.1% [drive by huge
advertising during IPL].
 Karbonn’s market share too increased to 3%
 There were more than 28 new handset brands which started selling handsets in 2009
and these new players account for over 12.3%  of handset sales which is quite
significant 
Low cost Mobile Phones in India
Nobody ever knew that the device that was termed as a luxury gadget for business class will
develop a strong hold over Indian mobile phones market within a decade time. Yes, cell
phones have become a dominant means of communication in the country because of the
flexibility and convenience they offer. You can now connect with your family members,
colleagues or even clients instantly. Initially tagged as a lifestyle product, the mobile phone
has now become a necessity. As far as Indian market is concerned, you will find ample range
of latest mobile phones to meet your feature specifics and individual requirements. Youths
are the most targeted and potential buyers in this vast industry. Mobile companies know that
the gadget is more of a style statement t o them, therefore launch sleek, touch screen mobiles
in trendy designs and colours. Introduced merely as a voice transmitting device, the mobile
phone has now transformed into communication device comprising of MP3 player, high pixel
camera, Bluetooth, 3D gaming, GPRS and many other high-tech features. The rapidly
increasing space for mobiles in the mobile market of India has made the competition tougher
for the cell phones companies. If we study the market share, Nokia is still ahead of other
companies like Sony Ericsson, LG or Motorola. The brands like HTC and Apple have
targeted a niche market segment only. Because the mobile phones users are increasing at an
impressive rate, the competition between mobile phones stores has also become tough. Cheap
mobile phones call rates and excellent CDMA services are also twisting the market a bit.
Whatever the reason be, there is a cut throat competition and the numbers of competitors is
increasing rapidly. The growth rate of 8.12% in the mobile phones sector between the year
2000-2007 boasts of the impressive hold of cell phones. It is expected that more than 6
hundred million people will have mobile phones in India by 2011. If we see the global trends,
there is still a lot of scope for development and innovations in the Indian mobile phones
market. The network coverage is becoming better and innovation is still being done, which is
paving way for more advanced, latest, appealing, improved and of course cheap mobile
phones in the coming years 2011.

Mobile India – Future of the mobile industry in India

As per the latest reports, number of mobile subscribers in India has crossed the 250 million
mark. By April 2008, India is projected to become the second largest wireless market in the
world. Because as the graph below shows, even though we are well on way to become the
world’s second largest mobile market, our average ARPU remains one of the lowest in the
world.
As per the latest performance reports from TRAI, all India blended ARPU for GSM at the
end of the latest quarter was Rs 261 while that for CDMA was Rs. 176 .

If you look at the stats over the past 9 months, they appear even more bleak. Over the past 9
months, ARPU has dropped 17.41% for GSM while it has dropped 10.20% for CDMA.
Minutes of Use (MOU) per subscriber has increased by a measly 2.2% over the past 9 months
for GSM players while it dropped by 11.56% for CDMA players.
Of this ARPU, what is the revenue breakup for various services / applications?

Here’s a chart highlighting the revenue breakup for GSM:

Here’s a chart indicating the revenue breakup for CDMA players in India

This 9 month trend is more than likely to continue. Fierce competition to add new subscribers
will continue to drive down the ARPU further. Number portability will only exacerbate the
problem – operators will need to drop prices to keep the churn rate at a minimum and stay
competitive. Voice and rental revenues – the two biggest contributors to the current ARPU,
will continue to dwindle due to market pressures and as the market matures  Operators will
soon need to start looking for additional means to offset the ARPU deficit. And most likely,
it’s going to come from data services.

So, will 3G be the saving grace?

Globally, operators have yielded huge revenue gains from 3G rollout. Almost all have seen
an uptick in data usage and in several cases (KDDI, DoCoMo, 3 UK, O2 UK etc.), data
services are contributing more than 30% to the overall ARPU.

Will a 3G rollout in India exhibit similar behavior ? I’d definitely like to believe so.

But there are a number of challenges for 3G to be successful in India:

 Clear revenue sharing guidelines between operator and content producers. Currently,
operators get a 60% chunk of the revenue, while the content owners get about 25%
and 15% goes to the copyright owner. This breakup seems to unfairly skewed in favor
of the operators. Seems like some progress is already happening on this front.

 High percentage of prepaid customers. About 90% of all GSM & CDMA subscribers
in India are prepaid customers. Prepaid customers are low usage customers and
contribute only 25-30% ARPU’s as compared to the post-paid segment (for GSM,
post-paid customers contributed Rs 628 in ARPU while pre-paid customers
contributed only Rs 219. for CDMA, post-paid customers contributed Rs 499 in
ARPU while pre-paid customers contributed only Rs. 140). As mentioned earlier, the
introduction of number portability will further worsen the attrition scenario, since it’ll
make easy for users to change operators and keep their same number. Operators will
have to devise means and offer plans to retain subscribers and also convert some of
the pre-paid customers to post-paid ones.

 More choices for affordable, 3G capable handsets. While there exists a subset of
subscribers who would pay more for a premium phone, affordability would be an
issue for quite large section of the subscriber base. Currently, only 5% of all handsets
in India are 3G capable.
  Copyright and piracy issues need to be addressed. The proposed amendments to the
Indian IT Act, will most likely take care of this point.

 Getting users out of the vice like grip of SMS will be a challenging task

In spite of all the hurdles, the challenges seem puny as compared to the benefits that India
stands to gain from the 3G deployment. Rollout of 3G will give the much needed bandwidth
that all stakeholders are hoping for. Without 3G (read high speed network), the cliched term
“Mobile will be the Internet platform in India” will never become a reality.

Operators like Bharti Airtel seem to be raring to go – they’ve successfully tested 3G services
in Delhi, Mumbai and Bangalore and are waiting for the spectrum to be allocated. Mobile
users, of course, can hardly wait for 3G to go live in India.

Camera phones (or camphones)

Camera phone (or camphone) is the name given to a mobile phone that has an integrated
camera included in its design, and this feature means that the device can not only take
photographs, but it can also be used to transfer these images to other phones. The Sharp
Corporation launched the world’s first camera phone in Japan in November 2000 - the J-
SH04 model - and this used a relatively modest CMOS image sensor offering a resolution of
110,000 pixels. The subsequent demand for camera phones grew quickly, and since 2000
they have come to represent a distinct niche in the mobile phone market, which has added to
the culture change that the mobile phone has introduced into modern life.

The success of camera phones can be partly attributed to the significant amount of advertising
that has been used to promote them, although it is also clear that, as they became more
commonplace, then peer pressure and the desire to use the latest gadget has encouraged many
to join that growing number who wish to own a camera phone. Today, all the major phone
manufacturers have at least one camera phone in their ranges, and some even offer a camera
as an optional accessory, which can be plugged into a connector on the phone when needed.
However, the principles set out below should apply to all cameras used with mobile phones.

The popularity of camera phones must partly exist because they have proved to be such
useful devices, providing their owners with the means to record still pictures and even video
in almost any situation. Since mobile phone users tend to carry their handsets around with
them wherever they go, it is quite likely - when an important event needs to be photographed
- that a camera phone will be near to hand rather than a purpose made camera. Also, with the
growth of MMS messaging, it is now a simple matter to exchange photographs between
MMS compatible phones, and to share photographs between friends and contacts.

Despite all the advantages presented by camera phones, their growing use has created some
problems, which has inevitably led to calls for them to be used responsibly in situations
where they could endanger privacy or security. There are places where the use of a camera
phone, or any camera, will be prohibited for many reasons. For example, there has been a
case in the UK of a man being prosecuted for using a camera phone in a courtroom, where
the use of cameras is illegal.

In practice, adding a camera to a phone is not as difficult a task as it might seem, because
most of the components that make up a digital camera - a battery, display, memory,
microprocessor, keypad controls - are already present in the phone, and the only additional
parts needed are a lens and a light-sensitive device to complete the camera.

Several technical issues, concerning the design and use of camera phones, should be
considered by those who are contemplating the purchase of a particular model. Some of these
points are discussed on the following pages, and they should raise the questions necessary if a
camera phone is one of those features important to the user.

Specific Absorption Rate (SAR)

An article is currently in preparation to explain Specific Absorption Rate (SAR)

measurements.

SAR values for the mobile phones from various manufacturers are listed in this section.
Select a manufacturer from the left hand column of this page to see the SAR values for their
models. Where there are more than 20 models listed we have arranged the phones into two
lists: one in model number order, and one in order of increasing SAR value. More
manufacturers and models will be added over time.
These SAR figures are the maximum values measured at the ear, in accordance with the
international guidelines recommended by the International Commission on Non-Ionizing
Radiation Protection (ICNIRP). The SAR exposure limit set by these guidelines is 2.0 W/kg
averaged over 10 grams of body tissue. This standard is considered to be the safe exposure
limit to radio waves for all persons regardless of age or health, and it is the standard adopted
in Europe, Central America (except Mexico), South and North Africa, Israel, and Pacific
Asia (except Taiwan, Korea and Australia).

Patterns of Market Segmentation

Market segments can be building up in many ways, one way is to identify preference
segments. For example cookies buyers are asked how much they value sweetness and
saltiness in biscuits as two product attributes. Three different patterns can emerge.

1. Homogeneous Preferences: Shows a market where all the consumers have roughly the
same preferences. The market shows no natural segments. We would predict that existing
brands would be similar and cluster around the middle of the scale in both sweetness &
saltiness.

2. Diffused Preferences: At the other extreme, consumer preferences maybe scattered

throughout the space, indicating that customers vary greatly in their preferences. The first
brand to enter the market is likely to position in the center to appeal to the most people

3. Clustered Preferences: The market might reveal distinct preference clusters, called natural
market segments. The first firm in this market has three options. It might position in the
center, hoping to appeal to all groups. It might position in the largest market segment
(concentrated marketing).It might develop several brands, each positioned in a different
segment. If the first firm developed only one brand, competitors would enter and introduce
brands in the other segments

The Segmentation Process

Once a company has gathered information from these segmentation bases, it must decide how
to divide the market, bearing in mind that market segmentation seeks to minimize the
differences within a segment and maximize the differences among segments. Consequently,
depending on the product or service to be marketed, simple divisions along age, gender, or
geographic lines alone may yield segments that are too vague to be of use. Instead, marketers
may have to consider several characteristics or clusters of characteristics in order to divide
the market into useful segments.
For example, when considering beer consumption, marketers must look at both age and
gender: the majority of beer drinkers are both young and male.
• To begin segmenting the market, marketing managers must select the segmentation
bases they will use to develop the segments, depending on the products or services to be
marketed. Marketers may select a few segmentation bases they believe are the most relevant
at the outset and develop market segments using them. On the other hand, they may compile
a large array of information using all the segmentation bases and use this information to
group consumers in various segments.
• Next, marketers conduct any primary market analysis they may need,by preparing
questionnaires and samples and by assessing the response to them. Using this information,
marketers try to determine the most fruitful segments—the ones with greatest similarities
within them. Because this process can be labor-intensive and require advanced knowledge of
statistics, companies often rely on outside firms or artificial intelligence technology to
produce meaningful market segments.

• Once relevant, stable, reachable, profitable market segments are established, marketers can
target the segments they believe will offer the best opportunities for growth given their
products and resources and the ones they believe that correspond to the products being
marketed the best. Finally, marketers can develop and launch advertising campaigns that
appeal to the various segments.

Companies tend to choose the largest segments, although the segments with the most
consumers are not always the most profitable and usually have the most competition.
Consequently, marketers might benefit from considering targeting smaller segments or
segments ignored by competitors, such as low- income consumers, which is frequently
referred to as “niche marketing.”

Method of Segmentation
A company also may opt to target just one segment of the market, employing the
market segmentation method of concentration. After considering various segmentation bases
and conducting research, a company might find that its competitors are not reaching specific
segments and decide to target this segment or niche exclusively. A computer maker, for
instance, could concentrate solely on the home-user segment of the market and ignore the
needs of the other segments. To do so, the computer maker would have to offer products that
meet home-user needs at prices these consumers could afford. Since concentrated marketing
costs less than differentiated marketing, it may appeal to small businesses in particular

After choosing a method of market segmentation, marketers must integrate the method into
an overall marketing strategy. The marketing strategy will try to make the target product or
service appeal to the target segment through an advertising campaign developed based on
segmentation information such as age, gender, or location. Marketers also consider what a
company's strategic position in a market is—e.g., if it is a computer supplier to home users or
businesses—and creates a marketing program that will help a company achieves or maintain
this position. If the segment is properly defined for a specific product or service, then
developing promotional strategies and reaching the target segment should be relatively easy.
The information used to help create the market segments should help marketers choose
among promotional techniques (e.g., direct marketing, advertising, publicity, and sales
promotion), pricing strategies, and distribution strategies. This information also should help
marketers choose among various advertising media.

After collecting a large amount of information about their customers, marketers can plan
promotions and products that will appeal to various segments over a long time by
determining what products a segment wants in the future and offering them at the appropriate
time

Target costing
Is a disciplined process that uses data and information in a logical series of steps to determine
and achieve a target cost for the product? In addition, the price and cost are for specified
product functionality, which is determined from understanding the needs of the customer and
the willingness of the customer to pay for each function.

The Basic Process: the basic stages in the Target-Costing process:

1. Define the product
2. Set the target
3. Achieve the target
4. Maintain competitive cost

The stages are market-driven:

• Define the Product answers the fundamental questions of “What are
you selling?” “To whom?” “What do they want it to do?”
• Set the Target addresses the issue of “What will they pay for it?”
“What should it cost to produce?”
• Achieve the Target is concerned with “How can we get there?” “Are
we getting there?”
• Maintain Competitive Cost deals with “How can we stay ahead?”

Entrepreneurial Strategy:

•Define market segment small enough to allow you to capture 25% to 30% share

• Be a “Big fish in small pond”

• Ideal: Be the only supplier in a very narrowly defined

Effective Segmentation
Not all segmentation is useful. For example, table salt buyers could be divided into blond and
brunette customers, but hair color is not relevant to the purchase of salt. Furthermore, if all
salt buyers buy the same amount of salt each month, believe all salt is the same, and would
pay only one price for salt, this market would be minimally segmentable from a marketing
point of view.

To be useful, market segment must be:

Measurable: The size, purchasing power, and characteristics of the segment
can be measured.
Substantial: The segments are large and profitable enough to serve. A segment should be the
largest possible homogeneous group worth going after with a tailored marketing program. It
would not pay, for example, for an automobile manufacturer to develop cars for people who
are under four feet tall
Accessible: The segments can be effectively reached and served.

Differentiable: The segments are conceptually distinguishable and respond differently to

different marketing-mix elements and programs. If married and unmarried women respond
similarly to a sale on perfume, they do not constitute separate segments.

Actionable: Effective programs can be formulated for attracting and serving

the segments.
Market segmentation of mobile phones

The decibel levels in the cellular market are increasing with service providers stepping on the
gas. Not to be left behind, handset manufacturers are using precise segmentation to carve up
their share. Divide and rule seems to be working!

According to a report published in May 2001, the all-India cellular subscriber figures stand at
38,71,514. With aggressive marketing by service providers, this figure is expected to increase
at a very rapid rate. If current decibel levels in the market are anything to go by, these
expectations are well on the way to being met. However, amidst this entire melee one cannot
ignore the efforts of the handset manufacturers. Both service providers and handset
manufacturers have been complementing each other well with each fuelling the demand for
the other.

Industry observers attribute the success of handset manufacturers to shrewd market

segmentation. The big three of the mobile handset market - Nokia, Ericsson and Motorola,
have studied the market and segmented it precisely

Segmentation of Nokia

Connecting people!
Nokia, arguably the biggest player in the world, has divided the market into
four segments:

• Hi-fliers: The biggest segment as far as Nokia is concerned consists of 'Hi-Fliers', corporate
executives who use a mobile phone to increase productivity at work. Aged between 25-45,
the segment looks for data transmission and other business-related features. In most cases, the
company sponsors the handset, hence price is not a major consideration.

• Trendsetters: In any technology adoption cycle, the first segment to adopt an emerging
technology is dubbed as 'the early adopters'. For Nokia, these early adopters are 'Trendsetters'
who are most receptive to advanced models. This was the segment at which WAP-enabled
models were aimed

Social contact: The third segment for Nokia is the upwardly mobile, socially-conscious
segment that uses a mobile to stay in touch. Today's youth and affluent housewives constitute
two major chunks of the segment

Assured: The fourth and last segment as defined by Nokia comprises of CEOs, high-profile
celebrities, industrialists and other high "net worth" individuals. The fact that the segment
cannot do without a mobile phone makes it the 'assured' segments.

Geographic

 World region – Asia

 Country – India

 Cities – Reach out maximum places

Demographic

 Age – All age group

 Gender – Male, Female

 Income – All income groups

 Occupation – Every sector

 Religion – Irrespective of religion

Psychographic

 Social class – All class of people

  Lifestyles – Urban, rural, and even far villages

Behavioral
 Benefits – Quality
 Loyalty status – Strong

Analysis and interpretation

Introduction

This is the analysis and interpretation of data. The analysis of consumer’s preference on using
mobile phone, done by percentage analysis.

Consumer preference towards mobile phone

 S no Name of the mobile Number of respondents Percentage of
phone respondents
1 Nokia 49 49
2 Samsung 23 23
3 Sony Ericson 13 13
4 LG 11 11
5 others 4 4
Total 100 100

INFERENCE:
Most of the respondents are using Nokia (49%) and 23% of respondents are
using samsung. Others are used different cell phone brands.

60

50

40

30 Number of repondents
percentage of respondents

20

10

0
Nokia Samsung Sony ericsson LG Others

1.
Number of respondents on the basis of gender

Gender Number of respondents

Male 73
 Female 27

80

70

60

50

40 Number ofrespondents
on basis of gender
30

20

10

0
male female

2. Age group of the respondents

Name (12-18) (19-30) (31-40) (41-64) (65+)

of
Tota
mobile
l
phones
resp
onde
nts

No of % of No % of No % of No % of No % of
respo resp of resp of resp of resp of resp
ndent onde resp onde resp onde resp onde resp onde
s nts onde nts onde nts onde nts onde nts
nts nts nts nts

Nokia 5 41.6 20 47.6 12 48 8 57.1 4 57.1 49

Samsu 2 16.7 12 28.5 6 24 3 21.4 0 0 23

ng

Sony 3 25 5 11.9 2 8 2 14.2 1 14.2 13

ecricss
on
 LG 2 16.7 3 7.2 3 12 1 7.1 2 28.5 11

Other 0 0 2 4.7 2 8 0 0 0 0 4

Total 12 100 42 100 25 100 14 100 7 100

Inference:

 Among respondents between age group31-40 and 41-64 majority of them use Nokia
 Consumers prefer Nokia in the age group between 19-30
 In the age group between 19-30 there are respondents using other mobiles also.

Above 65

Upto 41-64

other
Upto 31-40 LG
sony ericsson
samsung
nokia
Upto19-30

Upto 12-18

0 5 10 15 20 25

3. Number of respondents on the basis of marital status.

S.no Marital No of Percentage of

status respondents respondents
1 Married 26 26%
2 Unmarried 74 74%
Total 100 100

Inference:
 The married respondents are using cell phones in26%, but the unmarried respondents
are using cell phones in 74%

No of respondents
80
70
60
50 No of respondents
40
30
20
10
0
Married Unmarried

4. Type of phone the respondent would like to have.

S.N Type of phone No of Percentage

o respondents of
respondents
1 Slide phone 11 11%
2 Touch phone 37 37%
3 Flip phone 19 19%
4 Luxury fashion 9 9%
phone
5 Smart phone 24 24%
TOTAL 100 100

Inference:

 In the segment of touch phone around 37% of the respondents would like to use.
 Great interest also towards smart phones which is around 24%
 No of respondents
40
35
30
25
20
15 No of respondents
10
5
0

e
e

e
on

on

on

on
on
ph

ph

ph

ph
ph
de

t
p

n
h

ar
uc

Fli

io
Sli

sm
sh
To

fa
ry
xu
lu

5. Parts of the "look and feel" of a mobile phone are important to you when choosing
one.

s.no Parts of the No of Total no of Average Rating

mobile respondents respondent 1(lowest)
s 5(highest)
1 Screen size 85 100 4.5
2 Buttons 73 100 3
3 Colours 47 100 4
4 Weight 55 100 2.5
5 Key pad 56 100 2.5
6 Touch screen 92 100 4.5

Inference:

 Around a average of 4.5 rating in the segment of screen size

 Even touch screen is most rated part in a mobile phone from 92 respondents
 Average rating 1(lowest) 5(highest)
5
4.5
4
3.5
3 Average rating 1(lowest)
5(highest)
2.5
2
1.5
1
0.5
0
Screen size Buttons Colours Weight key pad Touch screeen

6. How important is the design or style (Look and Feel) of a mobile phone to you as
opposed to functionality?

s.no Design or Style No of Percentage

respondents of
respondents
1 Not important 17 17%
2 Fairly important 22 22%
3 Very important 38 38%
4 Extremely 23 23%
important
Total 100 100

Inference:

 The design and style is very important to the respondents

 Around 38% feels its very important to them
 Design or Style
40
35
30
25
20
15
10 Design or Style
5
0
nt nt nt nt
r ta r ta r ta r ta
po po po po
t im y im im i m
No irl ry ely
Fa Ve em
tr
Ex

7. What size of the handset would you prefer?

s.no Size of the No of Percentage

handset respondents of
respondents
1 Small 17 17%
2 Medium 38 38%
3 large 45 45%
Total 100 100

Inference:

 Most of the respondents prefer large phone

 45% of them prefer large phone and 17% prefer small phone
 size of handset
50
45
40
35
30 size of handset
25
20
15
10
5
0
small lmedium large

8. What size would you prefer your screen to be?

s.no Preferred screen No of Percentage

size respondents of
respondents
1 Small(1.0 to 2.4) 8 8%
2 Medium(2.5 to 27 27%
3.5)
3 Large(3.6 to 4.4) 65 65%
Total 100 100

Inference

 Most of the respondents prefer larger screen size about 65%

 Only 8% of the respondents prefer small screen.
 screen size
70
60
50
40
30
20 screen size
10
0
40 5) 4)
2. 3. 4.
to to to
0 .5 .6
1. (2 (3
la l ( m ge
iu lar
sm ed
m

9. What method of interaction do you prefer when using mobile phones?

S.no Preferred No of Total no of Average rating

method of respondents respondents 1(lowest)
interaction 5(highest)
1 Touch screen 95 100 4.5
2 Key pad 83 100 4
3 Physical button 79 100 3

Inference

 Most of the users like to have touch screen

 At a average of 4.5 rating for touch screen
 prefered method of interaction
5
4.5
4
3.5
3 prefered method of
interaction
2.5
2
1.5
1
0.5
0
touch screen key pad physical button

10. Should the button used to disconnect a call be labelled as “End,” “Stop,” or should it
be labelled with an icon? 11. Should the button used to connect a call be labelled as “Send,”
“Call,” or should it be labelled with an icon?

s.no Labelling No of Percentage

the button respondents of
respondents
1 End 45 45%
2 Stop 34 34%
3 Icon 21 21%
Total 100 100

Inference:

 Most of the respondents prefer end button

 High percentage of respondents about 45% would prefer end button
 labelling the button
50
45
40
35
30
labelling the button
25
20
15
10
5
0
end stop icon

11. Should the button used to connect a call be labelled as “Send,” “Call,” or should it be
labelled with an icon?

s.no ‘Send and call’ No of Percentage

icon label respondent of
s respondents
1 Send 31 31%
2 Call 53 53%
3 Icon 16 16%
Total 100 100

Inference

 This is commonly preferred by 53% of the respondents

 Its make the people life much more easier with the call button labelled
 call and send icons label
60

50

40

30
call and send icons
label
20

10

0
send call icon

12. Would you prefer a single button that will start and end a call, or would you prefer two
distinct buttons for starting and stopping a call?

s.n Two distinct buttons to No of Percentage

o start and end respondents of
respondents
1. Single button to do both 67 67%

2. Two separate button: one 33 33%

to start a call and one to
end it
Total 100 100

Inference:

 Common in all mobile phone where single button is used

 Around 67% prefer single button to do both.
 Two dintinct button to star and end
80
60
40
20
0 two dintinct button to
star and end

13. Would you prefer having all of your incoming, outgoing, and missed calls listed together
in your call log or would you prefer them to be grouped accordingly?

S.no Call list No of Percentage

respondents of
respondents
1 Listed 37 37%
together
2 Listed in 63 63%
groups
Total 100 100

Inference:
 Most of them prefer listed in groups
 63% want call list to be separate
 call list
70
60
50
40 call list

30
20
10
0
listed together listed in groups

14. What functionality would you prefer to have on your Mobile Phone?

s.no Functionality No of Total no of Average

respondent respondents rating
s 1(lowest)
5(highest)
1 Send/receive 100 100 5
call and SMS
2 Camera 95 100 4.5
3 MP3 player 95 100 4.5
4 Video 89 100 4.5
5 Bluetooth 95 100 4
6 Social 63 100 3.5
application
7 Email 55 100 3.5
application
8 Games 39 100 2
9 Calendar 79 100 4
10 Organizer 73 100 4

Inference:

 Certain expected answers from the respondents where they use mobile to call and
send SMS
 Camera, mp3 player and video are most preferred functionality at a average of 4.5%
 And all the other functionality also has average rating
 functionality
6
5
4
3
2
functionality
1
0
S ra yer deo oth n n a er izer
SM me la vi to a tio atio ame nd n
nd ca p e lic lic G cale ga
3 l u p p r
la l a m
p b ap il ap o
ec cial a
eiv so Em
r ec
/
nd
se

15. . What do you consider important when choosing a mobile phone?

s.no Importance while No of Total no of Average

choosing a mobile respondents respondents rating
1(lowest)
5(highest)
1 Functionality 93 100 4.5
2 Name of the brand 78 100 3.5
3 Look and feel 69 100 3
4 Application 75 100 3
5 Interoperation 83 100 3.5
ability
6 Connectivity 78 100 3.5
7 Pricing 93 100 4.5

Inference:

 Both functionality and pricing are the most important factors to the respondents
 4.5%rating for functionality and pricing
 And other are also equally important for the respondents in choosing a mobile phone.
 Importance while choosing oa mobile
5
4.5
4
3.5
3
2.5
2 Importance while choosing
1.5 oa mobile
1
0.5
0

ng
d

el

on
y

ity
lit

ilit
an

fe

ici
tiv
ati
na

ab
br

Pr
ec
lic
tio

an
he

nn
p

tio
nc

ok

ap
ft

Co
fu

ra
Lo
eo

pe
m

ro
na

te
in

16. How much are you willing to spend on a mobile phone?

S,no Willing to No of Percentage

spend respondent of
s respondents
1 1000-5000 36 36%
2 6000-10000 23 23%
3 11000-18000 21 21%
4 19000-25000 13 13%
5 26000+ 7 7%
Total 100 100

Inference:
 Around 36% of the respondents would prefer spending about 1000-5000
 Only 7% of respondents who would spend above 26000
 Willing to spend
40
35
30
25
20
No of respondents
15
10
5
0
0 0 0 0 +
5 00 0 00 00 00 0 00
0- -1 18 25 26
0 00 0- 0-
10 60 00 00
11 19

Findings, suggestions and conclusion

Introduction:

The findings and conclusions in this study. Statistical tools are applied to analyze the
data. It includes the result of each and every tables, and charts

FINDINGS FROM PERCENTAGE ANALYSIS

 On the basis of consumer preference, majority of the peoples

are preferred Nokia

 On the basis of age group, most of the respondents (47.6%), are

using Nokia, who are between the category of 19-30 years

 On the basis of marital status mostly unmarried respondents

are using cell phones than married respondents

 On the basis of type of cell phone ,37% of the respondents like to

use touch phone.
 On the basis of look of the cell phone, at a average of 4.5% rating of 5
like touch screen or large screen size phones
 On the basis of spending money for purchasing a mobile most of the
respondents would like to spend between 1000-5000 Rs.
 On the basis of functionality, 4.5% at a average rating of 1-5, they like to
use the phone for send/receive call and SMS.
  On the basis of choosing one phone, most of the respondents look at the
functionality, pricing and interoperation ability.
 3.8% of respondents are only influenced by advertisement.
 Majority of the respondents use mobile phones for personal use.
 Majority of the respondents are seeking brand image for their cell phones.
 Most of the respondents are not satisfied with other cell phone than
Nokia.
 On the basis of after sales service , majority of the respondents are highly
satisfied with Nokia.
 Most of the respondents are not satisfied with Sony ericsson’s after sales
service sales.

Suggestion

 Sony ericsson and LG should try to expand their customer’s network.

 Sony ericsson should try to attract all segments in the age group.
 Advertisements were less shown on TV where Sony ericsson was to influence
the people.
 Most of the people don’t know the function in the mobile phone which must be
made clear.
 Mobile network providers should reduce the prices of the CDMA phone like the
foreign market.
 Performance of the LG mobile phones are dissatisfied with the performance .
 After sale services of LG and Sony Ericson should improve like the Nokia
mobile phones

Conclusion:

This is an information era significance of information cannot be over

emphasized. This study attempts to find out the market segments of various mobile
companies in India and satisfaction of consumer regarding cell phone.
This decade, most of the peoples using cell phones. So, mobile phone companies are
increasing in more innovative features. So they should over come another one’s competition.
So, it leads to adding new features, schemes, periodical offers to their products. So, the
consumers get maximum benefit from their cell phone.
 Now-a-days, cell phones are very necessity to all. Because, it is give safety to the men
and women also. And no person are feel cell phones are luxury one. So most of the persons
are also should preferred these cell phones to their children

Companies like Nokia has implemented various segmentation strategies for its
products on a large scale & becoming no.1 leader in the world of mobile phones. Nokia
segments its market according to various variables. The main segmentation is done on the
basis of price. As per my opinion Nokia had introduced various schemes to attract people &
gain more goodwill into market

Various segmentation strategies are being enrolled into the market to increase the
sales of the products. New models & their strategies are being well utilized to enhance the
product.

Bibliography

Website visited:

 www.google.com
 www.scribd.com
 www.nokia .co. in
 www.samsung .com
 Questionnaire

“Market segmentation of mobile phones according to the consumer preference and

satisfaction in India”

1. Please select your gender group?

o Male
o Female

2. Please select your marital status

o Single
o Married

3. Please select an age group

o 12-18
o 19 -30
o 31-40
o 41-64
o 65+

4. What type of phone would you like to have?

o Slide phone
o Touch phone
o Flip phone
o Luxury fashion phone
o Smart phone

5. What parts of the "look and feel" of a mobile phone are important to you when choosing one?
"Feel free to rate more than one option" *

Rate-1 (lowest)-5 (highest)

1. Screen size
2. Buttons
3. Colours
4. Weight
5. Key pad
6. Touch screen

6. How important is the design or style (Look and Feel) of a mobile phone to you as opposed to
functionality?
 o Not important
o Fairly important
o Very important
o Extremely important

7. What size of the handset would you prefer?

o Small
o Medium
o Large

8. What size would you prefer your screen to be?

o Small (1.0 to 2.4) inches

o Medium (2.5 to3.5) inches
o Large ( 3.6 to4.4) inches

9. What method of interaction do you prefer when using mobile phones? "Feel free to rate more
than one option"

Rate 1(lowest) 5(highest)

1. Touch screen

2. Keypad

3. Physical button

10. Should the button used to disconnect a call be labelled as “End,” “Stop,” or should it be
labelled with an icon? 11. Should the button used to connect a call be labelled as “Send,” “Call,” or
should it be labelled with an icon?

o End
o Stop
o Icon

11. Should the button used to connect a call be labelled as “Send,” “Call,” or should it be labelled
with an icon?

o Send
o Call
o Icon

12. Would you prefer a single button that will start and end a call, or would you prefer two distinct
buttons for starting and stopping a call?

o Single button to do both

o Two separate button: one to start a call and one to end it
13. Would you prefer having all of your incoming, outgoing, and missed calls listed together in your
call log or would you prefer them to be grouped accordingly?

o Listed together
o Listed in groups

14. What functionality would you prefer to have on your Mobile Phone ? "Feel free to rate more
than one option"

Rate 1(lowest) 5(highest)

1. Send/receive calls and SMS

2. Camera

3. Mp3 player

4. Video

5. Bluetooth

6. Social media application

7. Email application

8. Games

9. Calendar

10. Organizer

15. What do you consider important when choosing a mobile phone? "Feel free to rate more than
one option"

Rate 1(lowest) 5(highest)

1. Functionality

2. Name of brand

3. Look and feel

4. Application

5. Interoperability

6. Connectivity

7. Pricing
16. How much are you willing to spend on a mobile phone?

o 1000- 5000
o 6000-10000
o 11000-18000
o 19000-25000
o 26000+