micromax mobile

INSTITUTE OF

MANAGEMENT STUDIES

GHAZIABAD

DISSERTATION REPORT ON

“CUSTOMER SATISFACTION TOWARDS

MICROMAX MOBILE”

SUBMITTED TOWARDS PARTIAL

FULFILLMENT OF

POST GRADUATE DIPLOMA IN MANAGEMENT

Approved by AICTE, Govt. of

India Academic Session

2013 – 2015

SUBMITTED TO- SUBMITTED BY-

DR. YOGITA SHARMA KUNAL KUMARFACULTY-MARKETING (BM:013113)

DECLARATION

I hereby declare that the Synopsis of the Dissertation project entitled ‟A Study of Consumer’s Satisfaction towards micromax Mobile” submitted to the Institute of Management Studies, Ghaziabad, is a record of an original work done by me under the guidance of Dr.Yogita Sharma and this project work is submitted in the partial fulfilment of the requirements for the award of the degree of Post-Graduation diploma in Management

KUNAL KUMAR

ACKNOWLEDGEMENT

It is my immense pleasure to present the Dissertation report on " A Study of Consumer’s Satisfaction towards micromax Mobile”

I would like to thank my mentor and a faculty member Dr. YOGITA SHARMA for her timely guidance, valuable support and encouragement at every step of preparing this report.

I would also like to thank our lecturers, faculty members and all those persons who have directly or indirectly helped me in providing the books and amenities which have helped in development of this report, without such help this report would not have been possible.

Table of Contents

CHAPTER NO.

TOPICS PAGE NO.

1 Executive Synopsis 82 Introduction/Company Profile 93 Objective of Project 184 Literature Review 195 Research Methodology 216 Findings and Analysis 227 Conclusions and Recommendations 328 Limitations 339 Bibliography 3410 Questionnaire 35

List of Table and Graph

Serial Number Table & Chart Page No.1 Micromax- Overview 102 Table 1 223 Table 2 234 Table 3 245 Table 4 256 Table 5 267 Table 6 278 Table 7,8 289 Table 9,10 2910 Table 11,12 3011 Table 13.14 31

EXECUTIVE SUMMARY

“A Study of Consumer’s Satisfaction towards micromax Mobile” to understand Delhi market for Micromax Mobile.

Under this firstly, it was important to know how Micromax Mobile reach to the customers and which are the closest competitors of Micromax Mobile and strategies adopted by them to increase their sales and what Micromax is doing at Retailer point of view so, for all this it was important to visit the Retailer from where the customers buy the Mobile phone.55 shops are visited by me in which i founded that:-Retailer and customers are facing following problems:-

The study of how individuals, groups, or organizations select, buy, use, and dispose of products, services, experiences, or ideas to satisfy needs and wants is called as Consumer behaviour.

Increase of disposable income, continuous growth and the desire for a better standard of living are the reasons that demographics of Indian society are changing rapidly.Some key factors that affect consumer behaviour are cultural, social, personal and psychological. A person’s self-image and learning are also found to have an effect on consumer behaviour.

In particular, this project sought to explore consumer behaviour relating to the purchasing of Mobile Phones. Consumer buying behaviour is very uncertain and difficult to predict which makes the task complex for the companies as to what features they need to incorporate in order to impress the customers.

Company Profile

JOURNEY HOME GROUND BRAND

Micromax started as an IT software company in the year 2000 working on embedded platforms. By 2008, it entered mobile handset business and by 2010 became the largest Indian domestic mobile handsets company. This transformation was steered by four friends who divided responsibilities on functional lines, which haven’t changed since: Rajesh Agarwal, 47, Managing Director, Rahul Sharma, 37, Executive Director, Vikas Jain, 37, Business Director.

Through its emphasis on adapting to the changing market dynamics, introducing feature-rich phones and smartphones that are innovative and unique, Micromax has today become a brand to reckon with.

Today, Micromax has presence across India and global presence in Bangladesh, Nepal, Sri-Lanka.

Corporate Profile

Micromax Mobiles is one of the leading mobile companies in the World today. According to Strategy Analytics’ Global Handset vendor market share report, it is the 12 th largest mobile brand in the World with a global market share of 1% and close to 8% market share in India. With in-depth understanding of rapidly changing consumer preferences coupled with the use of advanced technologies, Micromax has been able to differentiate itself from the competitors through innovation and design.

It took some 6 years for this new company Indian company to enter the domestic Smartphone market and win this area with its great-selling devices. The company, Micromax has been occupying the second position in the top Smartphone sellers in India since last year and is all set to make a rocking start into the next year, 2014.

In less than a decade of existence in the Indian markets this company was able to take the battle

on with the tech biggies. Samsung, Nokia, Apple and others with tons of experience and loads of

smart gadgets have been for a run for their market share.

These companies also introduced buyback schemes on their premium and budget products this

year. But due to its cheaper products Micromax had no worries as far as its products were

concerned.

The brand took on the leaders in the category with specific products that addressed different

customer needs. The company has focused their efforts towards creating life-enhancing mobile

phone solutions and wireless technologies that cater to the increasingly evolving needs of mobile

users in India. Micromax aims to be a billion dollar company with a significant double digit

market share by 2015.

Change in Company Logo

Micromax unveiled its new punch logo. The new logo was selected from list of logos submitted by the participants in creative hunt to revamp logo contest, in association with Talent house India. The new logo was revealed at the Micromax Asia Cup 2012, during the India vs. Pakistan match on Sunday, March 18, 2012.

The contest targeted the design community across the virtual world and students from over 150

colleges and design schools. The contest ran for a span of 2 months registered over 2500 entries

by more than 1500 participants from across the globe. Out of the entries received, Eric Atkins of

USA was announced as the winner of the contest.

The winner of the online contest was rewarded with a MacBook Pro and recognition on the Company’s website. The entire Micromax branding was revamped

Old Logo New Logo

MARKET SHARE OF MICROMAX

Counterpoint, a technology market research firm, finds that Micromax with a 20.4 percentmarket share has overtaken Samsung (25.1 percent) as the largest mobile phone supplier in Q2 2014. Micromax and Samsung were closely followed by Nokia (10.9 percent), Karbonn (9.5 percent), and Lava (5.6 percent).Aug 5, 2014

MICROMAX ACHIEVEMENT

Micromax Replaces Samsung as Largest Mobile Phone Vendor in India: ReportAccording to a recent report by a market research firm, Micromax has replaced Samsung to become the leading mobile phone vendor in the country in terms of market share. It has also become the second largest smartphone vendor in India behind Samsung.Counterpoint, a technology market research firm, finds that Micromax with a 16.6 percent market share has overtaken Samsung (14.4 percent) as the largest mobile phone supplier in Q2 2014. Micromax and Samsung were closely followed by Nokia (10.9 percent), Karbonn (9.5 percent), and Lava (5.6 percent).The research also revealed that Micromax replaced Nokia for the first time to become the leading feature phone supplier. According to the feature phone shipment data published, Micromax topped the charts with a 15.2 percent share followed by Nokia (now operated by Microsoft) with 14.7 percent. Other handset manufacturers following Micromax and Nokia in the feature phone segment were Karbonn (11.4 percent), Samsung (8.5 percent), and Lava (7.3 percent).Counterpoint also reports that Micromax with a 19.1 percent share is now the second largest smartphone brand in terms of shipments, closely following Samsung (25.3 percent). Meanwhile, Lava (5.9 percent), Motorola (4.3 percent), and Nokia (4 percent) are other top smartphone brands of the country.Neil Shah of Counterpoint notes, "Micromax has widened the gap with the third largest smartphone player as the race for the third place is up for grabs with fierce competition between Karbonn, Motorola, Celkon, Nokia, Apple and Sony.""This is the vendor which mobile industry will have to keep an eye on as it expands beyond domestic markets. Globally, Micromax also jumped up the rankings becoming the tenth largest handset brand in terms of mobile phone shipment volumes," added Shah.Some of the other findings of the market research revealed that Indian mobile phone market grew by 2 percent annually. The smartphone segment, on the other hand, grew an impressive 68 percent annually, while the demand for feature phones dropped to 16 percent annually in Q2, noted Counterpoint.Shah also said, "The surprise performance was from Motorola thanks to its attractive but leaner portfolio of Moto X, Moto G, Moto E and go-to-market strategy. The brand which could soon be part of Lenovo has built a strong base in the high volume India smartphone market, entering the top five rankings surpassing Nokia, Apple, Sony and others."

Market research companyCanalys last week reported that Motorola overtook Nokia to become the fourth-largest smartphone vendor in India in terms of units shipped in the quarter-ended June.The market research firm also speculated that the Indian market will see intense competition thanks to the entry of some popular Asian smartphone brands in the country.Xiaomi is already seeing an impressive response to launch of its first Mi 3 smartphone in the country. Asus, on the other hand, created a buzz in the market last month with its all new ZenFone smartphone series being launched in India at aggressive pricing."However, these brands will have to work hard on their brand awareness, distribution and service network to continue the growth beyond the early spike in demand in this very important mobile phone market," further Shah added.

The Core Team

Rajesh Agarwal(Co-Founder & Managing Director)

Rajesh Agarwal, Co Founder, Micromax Informatics is a key force behind one of the largest mobile brand in India in terms of volumes. With an enriching experience of 22 years, Rajesh has orchestrated strategic accomplishments that, together with ground-up development, allowed Micromax to assemble a portfolio amongst the top-tier handset manufacturers that serve consumers across the Globe.

Inspired by Warren Buffett, Rajesh an electrical engineer encompasses from him the rich virtues of will strength, determination and risk-taking ability and applies them across all diversification and growth to emerge as a victor. An ardent outdoor sports lover, Rajesh shows keen interest in volley ball, cricket and table tennis. He is fond of travelling to new places and exploring different cultures. In his leisure he reads about successful leaders and draws inspiration through their ideologies.

Rahul Sharma ( Co-Founder & Executive Director)

Mr. Rahul Sharma, Co Founder, Micromax Informatics Limited, is the driving force behind Micromax’s commendable position in the Indian mobile handset market. Leading the Product and Sales strategies in Micromax, Rahul encompasses an enriching work experience of 13 years. The phenomenal growth of Micromax can be attributed to the dynamic leadership of Mr. Sharma. An unparalleled increase in revenue inflow further substantiates the Midas touch that Rahul has brought to the company and an equally impressive growth of the company highlights the consistency of his leadership

For the successful person he is today, Rahul considers his father to be his true inspiration in life, his real hero. It was his father who instilled in Rahul a strong work ethic, honesty, sincerity and humility. Besidesbeing an entrepreneur, Rahul is a sports enthusiast with a passion for fast cars and Formula 1 racing.

Vikas Jain (Co-Founder & Business Director)

Vikas Jain is the Co-Founder Micromax Informatics Limited. With over 14 years of experience in international business & planning and the information technology sector, Vikas has played a crucial role in garnering and accelerating the business dynamics of Micromax. With his unique set of expertise in the 3G business dynamics, coupled with a great sense of innovative world successfully contributed in taking the company to newer markets and helping in global expansion.

Vikas upholds diligence and perceptiveness in all his endeavors and understands the fact that Micromax being a homegrown market has an edge over the rest when it comes to its international counterparts interms of the understanding of the Indian consumer.Prior to his entrepreneurial journey, Vikas was associated with renowned companies like TELCO, GE and Daewoo. An aggressive winning trait coupled with undying efforts of a like assumes to be the thrust behind Micromax’s step to a successful pedestal.

Brand Ambassadors

(Hugh Jackman)

Hollywood superstar Hugh Jackman has been chosen over a Bollywood star as the brand ambassador of Indian mobile handset brand Micromax. He says he is a "huge lover" of India.

Jackman is known for films like "Les Miserable’s", "The Wolverine" and "Prisoners".

His association with Micromax will start with its new Smartphone Canvas Turbo, which will be launched in India soon.

(Akshay Kumar)

Interestingly, while the Hugh Jackman is being signed, we’re seeing parallel ads by Akshay Kumar promoting the recently launched Bolt A67 and Bolt.

These ads are running in conjunction with his movie Boss, so that these devices are rightly targeted at that kind of audience. But, this is not the first time,Micromax has roped Akshay Kumar for its ads. Back in 2010, Micromax launched a campaign with

Akshay Kumar to showcase not just its products, but its mantra of ‘Nothing like Anything’. The setting of the ad showed how various Devices from the company can be helpful in any kind of situation.

(Kalki Koechlin)

The new TVC of Micromax Mobiles’ M2 music handset featuring Koechlin shows her using her phone to get together with her boyfriend in a movie theatre. The ad’s catch line is "Micromax M2: looks like a music player, works like a phone." Prior to this, Koechlin has also featured in the Coke ad with Imran Khan.

Mircromax Mobiles already has Akshay Kumar and Twinkle Khanna as its brand ambassadors

(Twinkle Khanna)

Twinkle Khanna, who had taken a sabbatical from the tinsel town, was back. This time round, she was seen in a commercial for Micromax Bling Mobile. It is the same brand of cell phones endorsed by Twinkle's hubby dearest Akshay Kumar.

Innovations

First Long Battery Life Phone with 30 days battery backupo X1i Marathon Battery phone with 30 days standby time & 17 days Talk time

First Dual SIM Dual mode active Phone (GSM+CDMA)of Micromax GC700 is the first GSM + CDMA Mobile phone

First Women’s Line of Devices

of Q55 Bling phone- First women’s phone

First phone with built-in blue tootho Micromax X450 Van Gogh – A stylish phone that integrates a detachable Bluetooth headset in its sleek design

First Superphone with Gesture Control o Created a new category called ‘Superfone’ with Gesture Control, powered with 1GHz dual core NVIDIA Tegra 2 Processor

Recent Achievements

The success of any Smartphone maker is a direct proportional to the number of brands it has created for its products. Micromax is planning to launch an IPO of 2.15 crore shares to raise around Rs 2270 million.

Micromax, according to IDC, has a 4.1 percent market share in India and is now valued at over $1 billion. M Financial, Citigroup, Edelweiss and Nomura are the book running lead managers to the issue.

For the year ended March 2013, Micromax had sales of 2,400 crore on selling over 85 lakh handsets, with a net profit of 200 crore, as against revenue and profit of 350 crore and 35 crore respectively for the previous year.

Products

Data Cards Mobile

Tablet LED TV

Competitors

Micromax mobile manufacturer is putting up some tough competition for big brands like Samsung, Nokia and Sony as the latest numbers from the International Data Corporation (IDC) show.

The Q2 numbers for 2013 are out and what is noticeable is that Samsung, which in Q1 of 2013 had a market share of 32 percent, is facing some serious competition from home grown vendors such as Micromax. Samsung is still number one in the Indian smartphone market but its share has fallen to 26 percent.

Samsung is the biggest challenger to Micromax with nearly 22 percent market share. (the company had 19 percent market share in Q1) Micromax also shipped 2 million devices this quarter and its Canvas range has done well to boost the company’s volume share.

Samsung

Samsung was formed in 1938 by Lee Byung-chull as a trading company based in Su-dong. The

small company started as a grocery, trading goods produced in and around the city as well as its

own noodles. The company grew and soon expanded to Seoul in 1947 but left once the Korean

War broke out. After the war, Lee expanded in to textiles and built the largest woolen mill in

Korea.

The successful diversification became a growth strategy for Samsung, which rapidly expanded in

to the insurance, securities, and retail business

LAVA

LAVA International Ltd is one of the fastest growing mobile handset companies in India.

Established in 2009, Lava has emerged as a dominant player in the market; having consolidated

its position amongst the top 3 Indian brands in slightly more than 3 years of its market presence.

With "Create Possibilities" as its guiding principle, LAVA has embarked on an ambitious

journey of empowering every human with quality innovative products.

LAVA has a wide product portfolio that encompasses tablets, feature phones and smart phones

having various models in bar and touch form factor at multiple price points to suit all categories

of consumers. LAVA's basket of brands includes ETAB series of tablets, IRIS series of Android

based smartphones, Discover series of Internet experience touch phones, Spark series of

premium bar phones and ARC & KKT series of feature rich budget phones.

KARBONN

Karbonn Mobiles is a telecommunication firm in India which was founded in March 2009. It is

a joint venture mobile manufacturing company between the Bangalore based United Telelinks

Limited (a group of Telecom Major and United Telecoms Limited) and Noida based Jaina

Marketing & Associates. Karbonn Mobiles India pvt ltd has a strategic tie-up with Sistema

Shyam TeleServices Limited.

The firm's total investment in Indian consumer market was over US$5 million in the fiscal year

2011. The firm has contracted with semiconductor companies worldwide for their handsets and

targets mainly the Indian market. The firm has over 85,000 retailers and 870 service centres

(around 150 dedicated exclusively for Karbonn) across India. Karbonn Mobiles is aiming at

registering a turnover of Rs 4,000 crore during the 2013-14 financial year.[1]

http://en.wikipedia.org/wiki/Karbonn_Mobiles#cite_note-Business_Standard-1

http://en.wikipedia.org/wiki/Noida

http://en.wikipedia.org/wiki/Bangalore

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Telecommunication

Karbonn has a presence in other countries such as Bangladesh, Nepal, Sri Lanka, Middle East

and Europe as well.[2]

The company has struck a deal with Eros International Media Ltd., the makers

of Rajinikanth starrer film Kochadaiyaan(2013) that will involve five lakh Kochadaiyaan

merchandise with screen savers and images from the film along with the trailer, behind the

scenes shots, signature tune of the film and lead actor's signature on back cover of phones.

Products in-built with these additions will be available in the market around September 2012 to

October 2012

Objectives

http://en.wikipedia.org/wiki/Kochadaiyaan

http://en.wikipedia.org/wiki/Rajinikanth

http://en.wikipedia.org/wiki/Eros_International

http://en.wikipedia.org/wiki/Karbonn_Mobiles#cite_note-2

The following are the objectives of the study of consumer satisfaction towards Micromax Mobile:

To analyse the factors that are important for the customers while choosing towards Micromax Mobiles.

To study the level of customer satisfaction towards the products of micromax mobiles.

Research Methodology

The data was collected through both the primary as well as secondary sources. Theprimary source of the data is the users of various mobile handset users. The sources of secondary data are the websites and company catalogues

Method of data collection

Sources of data:

a) Primary data:

Primary data was collected through direct communication with the respondents. The survey was performed through a structured questionnaire with the help of micromax mobile’s users.

b) Secondary data:

The sources of secondary data were the websites of micromax and various mobile providers, catalouges of various mobiles, newspapers, magazines etc.

DATA ANALYSIS

Reliability

Scale: all

Case Processing Summary

N %

Cases

Valid 69 100.0

Excludeda 0 .0

Total 69 100.0

a. Listwise deletion based on all variables in the

procedure.

Reliability Statistics

Cronbach's

Alpha

N of Items

.941 25

Item Statistics

Mean Std. Deviation N

Age 3.54 1.232 69

Rate the following factors

[Price]3.58 .497 69


[Display]3.04 .674 69


[Audio]3.54 1.232 69


[Camera]3.20 1.301 69


[Design]3.06 1.305 69


[Battery Backup]3.36 1.317 69


[Operating System]3.39 1.239 69


[After Sales Service]3.35 1.474 69


[Buying Convenience]3.28 1.305 69


[Durability]3.22 1.349 69


[overall Experience]3.04 1.377 69

Gender 1.13 .339 69

Currently owned Handset

Company3.80 1.183 69

Would you reccomend

Micromax to others3.88 1.266 69


[Availability]3.42 1.253 69


[Memory]3.20 1.378 69


[Platform]3.23 1.319 69

Item Statistics

Mean Std. Deviation N

Monthly Income 3.22 1.349 69

Have you seen the

advertisement of Micromax?

If yes which media?

3.04 1.377 69

Thank you for your Kind and

Honest response3.25 1.594 69

How much time taken for

final decision to buy

Micromax products by you?

3.54 1.232 69

Thank you for your Kind and

Honest response3.39 1.309 69


[PLATFORM]3.33 1.256 69

You like micromax because

of its3.35 1.474 69

Frequencies

Statistics


[overall Experience]

NValid 69

Missing 0

Mean 3.04

Rate the following factors [overall Experience]

Frequency Percent Valid Percent Cumulative

Percent

Valid

1 14 20.3 20.3 20.3

2 10 14.5 14.5 34.8

3 15 21.7 21.7 56.5

4 19 27.5 27.5 84.1

5 11 15.9 15.9 100.0

Total 69 100.0 100.0

Frequencies

Statistics

Rate the following factors [Price]

NValid 69

Missing 0

Mean 3.58

Rate the following factors [Price]


Percent

Valid

3 29 42.0 42.0 42.0

4 40 58.0 58.0 100.0

Total 69 100.0 100.0

Frequencies

Statistics

Have you seen the

advertisement of Micromax? If

yes which media?

NValid 69

Missing 0

Mean 3.04

Have you seen the advertisement of Micromax? If yes which media?


Percent

Valid

1 14 20.3 20.3 20.3

2 10 14.5 14.5 34.8

3 15 21.7 21.7 56.5

4 19 27.5 27.5 84.1

5 11 15.9 15.9 100.0

Total 69 100.0 100.0

T-Test

HO = Is there any relation between price and quality for purchasing of micromax moibile.

H1 = trere is no relationship between price and quality for purchasing of micromax moibile.

Paired Samples Statistics

Mean N Std. Deviation Std. Error Mean

Pair 1


[Price]3.58 69 .497 .060


[PLATFORM]3.33 69 1.256 .151

Paired Samples Correlations

N Correlation Sig.

Pair 1


[Price] & Rate the following

factors [PLATFORM]

69 -.078 .522

Paired Samples Test

Paired Differences

Mean Std. Deviation Std. Error Mean 95% Confidence

Interval of the

Difference

Lower

Pair 1


[Price] - Rate the following

factors [PLATFORM]

.246 1.387 .167 -.087

Paired Samples Test

Paired Differences t df Sig. (2-tailed)

95% Confidence

Interval of the

Difference

Upper

Pair 1

Rate the following factors [Price] -


[PLATFORM]

.580 1.476 68 .145

Since the significance level is greater than 0.05 so there is relation between purchasing of goods

depend on price and quality.

T-Test

HO = Is there any relation between gender and purchasing of micromax moibile.

H1 = There is no relation between gender and purchasing of micromax moibile.

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

Gender 69 1.13 .339 .041

One-Sample Test

Test Value = 95

t df Sig. (2-tailed) Mean Difference 95% Confidence Interval of the

Difference

Lower Upper

Gender -2298.431 68 .000 -93.870 -93.95 -93.79

Since the sig level is less than 0.05 so there is no difference between male and female perception

Toward purchasing of micromax mobile.

CONCLUSION

In the light of above study the following conclusion can be made:

The analysis result showed that the costumer have a satisfaction level on the basis of variables considered into study whereas we found that majority of customer purchasing decision depends upon the quality and price of the product.

QUALITY- On considering the result we found that customer ranks the quality of Micromax Mobile on neutral scale ,where they have issues with the durability of the product

IMPACT OF PROMOTION- Results shows that internet and world of mouth had influenced the customer to buy Micromax product which helped the organization to gain satisfaction of customer some where and turning Micromax into big brand.

PRICE-The low price strategy had impacted the higher end customer as it had focused majorly on low end customer.

FEATURES- The features of Micromax product had played keen role in satisfaying its customer as its competitor had failed to provide such features in such low cost.

SUGGESTIONS

The MICROMAX can do a customer research study, yearly or half yearly to get more information about the customer’s likes, dislikes and can change the attitudes and policies to provide satisfaction to the customers.

The company should try to increase the durability of the product as customer expectations are higher in terms of durability.

The company major focus is on low end customer which has some where effected the satisfaction level of upper middle class customer for that Micromax should come up with more options for upper middle class.

Research wing should focus more on designs competitors have advantage over them in

terms of designing.

BIBILOGRAPHY

http://newforesticecreamltd.co.uk/point-of-sale http://www.entrepreneur.com/article/230890 http://articles.economictimes.indiatimes.com/2010-04-02/news/27609087_1_ice-

cream-business-india-gate-vadilal-industries http://www.indiaretailing.com/FoodGrocer/7/42/46/9718/Icecream-Market-in-

India http://bmvyas.blogspot.in/2012/02/v-behaviorurldefaultvmlo.htmL

http://www.gsmarena.com/micromax-phones-66.php

http://bmvyas.blogspot.in/2012/02/v-behaviorurldefaultvmlo.htmL

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