MAJOR PROJECT

ON

A STUDY ON CUSTOMER PREFERENCE FOR CHINESE

MOBILE PHONES
Submitted in partial fulfillment of the requirements
for the award of the degree of

Bachelor of Business Administration (BBA)

To

Guru Gobind Singh Indraprastha University, Delhi

Guide: Submitted by:

Mrs. Jyoti Bhambhani Abhimanyu

Roll No.: 00321101715

Institute of Information in Technology & Management,

New Delhi – 110058
Batch (2015-2018)

1
 Certificate

I, Mr. Abhimanyu Vaish Roll No. 00321101715 certify that the Major Project

Dissertation (BBA-311) entitled “A STUDY ON CUSTOMER PREFERENCE FOR

CHINESSE MOBILE PHONES “ is done by me and it is an authentic work

carried out by me. The matter embodied in this project work has not been

submitted earlier for the award of any degree or diploma to the best of my

knowledge and belief.

Signature of the Student

Date:

Certified that the Major Project Report/Dissertation (BBA-311) entitled “A STUDY ON

CUSTOMER PREFERENCE FOR CHINESSE MOBILE PHONES “done by Mr.

Abhimanyu Vaish, Roll No. 00321101715, is completed under my guidance.

Signature of the Guide

Date:
Name of the Guide: Mrs. Jyoti Bhambhani
Designation:

Countersigned
Director / Project Coordinator

2
 ACKNOWLEDGEMENT

It is pleasure to acknowledge many people who knowingly and unwittingly helped me, to
complete my project. First of all let me praise God for all the blessings, which carried me
through all those years?

First & foremost , I would like to express my regards to Mrs. Jyoti Bhambhani for her constant
encouragement and support. I would also like to express my immense gratitude towards all the
lecturers of our college for providing the invaluable knowledge, guidance , encouragement
extended during the completion of this project.

I extend my sincere gratitude to all my teachers and guide who made unforgettable contribution.
Due to their sincere efforts I was able to excel in the work entrusted upon me.

Signature of the student.

CONTENTS
3
S No Topic Page No
1 Certificate (s)
2 Acknowledgements
3 List of Tables
4 List of Figures
5 CHAPTER-1: INTRODUCTION 7
 Organization Profile
 Theoretical Framework

6 CHAPTER-2: LITERATURE REVIEW 19

7 CHAPTER 3 METHODOLOGY 25

 Objectives of the Study

 Scope of the Study

 Sources of Data Collection

 Universe/Population

 Sampling Unit & Sample Size

 Sampling Techniques

 Tools Used for Data Analysis

8 CHAPTER 4: Data Analysis & Interpretation 28

 Data Analysis & Interpretation

9 CHAPTER 5 FINDINGS & CONCLUSION 40

 Findings of the Study

 Limitations

 Conclusion

 Scope for further study

10 References/Bibliography

4
11 Appendices

List of Tables

5
S. No. Name of Table Page No.
1 Table 1 29
2 Table 2 30
3 Table 3 31
4 Table 4 32
5 Table 5 33
6 Table 6 35
7 Table 7 36
8 Table 8 37
9 Table 9 38
10 Table 10 39

List of Figures
S. No. Name Page No.
1 Figure 1 29
2 Figure 2 30
3 Figure 3 31
4 Figure 4 32
5 Figure 5 34
6 Figure 6 35
7 Figure 7 36
8 Figure 8 37
9 Figure 9 38
10 Figure 10 39

6
 CHAPTER-1

INTRODUCTION OF THE TOPIC

 Introduction

 Conceptual Framework

 Top 5 Chinese mobile brand in Indian market

7
1.1 TELECOM INDUSTRY IN INDIA

India is currently the world’s second-largest telecommunications market with a subscriber base

of 1.19 billion and has registered strong growth in the past decade and half. The Indian mobile

economy is growing rapidly and will contribute substantially to India’s Gross Domestic Product

(GDP), according to report prepared by GSM Association (GSMA) in collaboration with the

Boston Consulting Group (BCG). The country is the fourth largest app economy in the world.

The liberal and reformist policies of the Government of India have been instrumental along with

strong consumer demand in the rapid growth in the Indian telecom sector. The government has

enabled easy market access to telecom equipment and a fair and proactive regulatory framework

that has ensured availability of telecom services to consumer at affordable prices. The

deregulation of Foreign Direct Investment (FDI) norms has made the sector one of the fastest

growing and a top five employment opportunity generator in the country.

The Indian telecom sector is expected to generate four million direct and indirect jobs over the

next five years according to estimates by Randstad India. The employment opportunities are

expected to be created due to combination of government’s efforts to increase penetration in

rural areas and the rapid increase in smartphone sales and rising internet usage.

Market Size

The mobile industry is expected to create a total economic value of Rs 14 trillion (US$ 217.37

billion) by the year 2020. It would generate around 3 million direct job opportunities and 2

million indirect jobs during this period. India’s smartphone market grew 14 per cent year-on-year

to a total of 124 million shipments in 2017.

Rise in mobile-phone penetration and decline in data costs will add 500 million new internet

users in India over the next five years, creating opportunities for new businesses. The monthly

8
data usage per smartphone in India is expected to increase from 3.9 GB in 2017 to 18 GB by

2023.

Data usage on Indian telecom operators' networks (excluding Reliance Jio), doubled in six

months to 359 petabytes or 3.7 million gigabytes per month as 4G data usage share increased to

34 per cent by the end of June 2017$. According to a report by leading research firm Market

Research Store, the Indian telecommunication services market will likely grow by 10.3 per cent

year-on-year to reach US$ 103.9 billion by 2020.

Investment/Major development

With daily increasing subscriber base, there have been a lot of investments and developments in

the sector. The industry has attracted FDI worth US$ 30.08 billion during the period April 2000

to December 2017, according to the data released by Department of Industrial Policy and

Promotion (DIPP).

Some of the developments in the recent past are:

 Finnish telecommunication company Nokia, is going to collaborate with Indian telecom

companies Bharti Airtel and BSNL to work on the roadmap for development of 5G technology

and creating a conducive ecosystem for 5G in India.

 The Government of India is working to digitally connect the rural and remote regions in

the country and has decided a new affordable tariff structure with the principle of more you use,

less you pay. The changes will soon be reflected in tariff changes by service providers in the

country.

 India telecommunication companies will be investing US$ 20 billion over the next two

years for expansion of network and operations, stated Mr Akhil Gupta, Vice Chairman, Bharti

Enterprise.

9
Government Initiatives

The government has fast-tracked reforms in the telecom sector and continues to be proactive in

providing room for growth for telecom companies. Some of the other major initiatives taken by

the government are as follows:

 The Government of India is soon going to come out with a new National Telecom Policy

2018 in lieu of rapid technological advancement in the sector over the past few years.

 The Government of India is working to digitally connect the rural and remote regions in

the country and has decided a new affordable tariff structure with the principle of more you use,

less you pay. The changes will soon be reflected in tariff changes by service providers in the

country.

 Mr Manoj Sinha, Union Minister of Communications, Government of India, stated that

the government will provide the required support for achieving the dream of a fully connected

and truly empowered India soon, while inaugurating a national conference on 'BharatNet and its

utilisation with states'.

Road Ahead

India will emerge as a leading player in the virtual world by having 700 million internet users of

the 4.7 billion global users by 2025, as per a Microsoft report. Internet economy expected to

touch Rs 10 trillion (US$ 155 billion) by 2018, contributing around 5 per cent to the country’s

GDP. With the government’s favourable regulation policies and 4G services hitting the market,

the Indian telecommunication sector is expected to witness fast growth in the next few years. The

Government of India also plans to auction the 5G spectrum in bands like 3,300 MHz and 3,400

MHz to promote initiatives like Internet of Things (IoT), machine-to-machine communications,

10
instant high definition video transfer as well as its Smart Cities initiative. The Indian mobile

phone industry expects that the Government of India's boost to production of battery chargers

will result in setting up of 365 factories, thereby generating 800,000 jobs by 2025.

1.2 TELECOM INDUSTRY IN CHINA

The telecommunications industry in China is dominated by three state-run businesses: China

Telecom, China Unicom and China Mobile. The three companies were formed by restructuring

launched in May 2008, directed by Ministry of Information Industry (MII), Nationals

Development and Reform Commissions (NDRC) and Minister of Finance. Since then, all the

three companies gained 3G licenses and engaged fixed-line and mobile business in China.

As a result of China’s entry to the World Trade Organization (WTO) in 2001, a new regulatory

regime is being established and foreign operators are being allowed to access the market.

China’s second generation of mobile communications equipment market is dominated by

European and North American companies. Because of the unique characteristics of mobile

communications, most of China’s mobile communications equipment demands are filled by

imports. The quickly rising Chinese manufacturers, however, led by Huawei

Technologies and ZTE are turning to South American, Southeast Asian and African countries for

business opportunities and are increasingly raising their market share in China.

As of 2009, Huawei Technologies is expected to surpass Nokia-Siemens Networks and Alcatel-

Lucent to become the second largest manufacturer of telecommunications equipment.

In March 2012, there were 284.3 million fixed-line telephone subscribers and 1.01 billion mobile

phone subscribers in China.

Chinese mobile brands in Indian Market

11
While India and China might not see eye to eye in the Doklam standoff, Indians’ preference for

Chinese smartphones is on the rise. According to various reports, today Chinese brands have

captured over 50 per cent share of India’s smartphone market. Even as Apple and Samsung have

been able to hold their own, other brands have had to make way for the onslaught by Chinese

brands such as Lenovo, Oppo, Vivo, Gionee and Xiaomi, which together garnering over 50 per

cent share of the market. On the other hand, market leader Samsung’s market share stood at 24

per cent as of December 2016.

Why there is rising demand for Chinese mobile brands in India?

Till a few years back, all of us were advised to stay away from Chinese mobile phones. But that

would be a bad idea to blindly ignore them now. Chinese mobile phones popularity is reaching

its new heights. It may be because of changing economic conditions or customer preference or

their own quality, but Chinese mobile brands are covering a large part of the market and some of

them are even giving tough competition to huge brands like Samsung, Apple, HTC

There are few reasons why Indian customers are purchasing Chinese mobile band and are

attracted towards them.

1. Quality

Until few years back, we were advised to avoid Chinese brand due to their cheap quality. But

that was all in the past. These days, with the quality Chinese brands are offering they can

easily compete with and non Chinese brand and can satisfy the customers with no sweat. Not

purchasing Chinese mobiles due to the quality they offered in past would not be great idea.

2. Affordability

12
 The majority of Indian population belongs to the middle class group. Almost everyone in

India looks for the price while purchasing a mobile phone. Chinese brands can offer a great

deal within a affordable price.

3. Features

Chinese mobiles these days are packed with so many features that they can easily go toe to

toe with and non Chinese brand in Indian market (Samsung, Apple, HTC). When it comes to

features, chinese brands has evolved very fast. There are vast number of things packed in

these handsets. There is not a thing that Chinese brands cannot do with the given level of

technology and features. When it comes to features, Chinese brands can easily compete with

other brands.

4. Brand Name

These days Chinese mobile brands are using promotion and advertisement to their fullest.

Customers are giving the same value to the Chinese brands that they give to the other

[Link] companies are really good at using promotion and advertisement activities to

gain goodwill in the Indian market. Indian customers are getting attracted to the brand names.

For example, what could have been a better platform that IPL for Vivo to enter the Indian

market and create such a big name and expand their future activities in India.

The marketing might

Vivo couldn’t have found a bigger platform that IPL to herald its entry in India. This strategic

association as well as the brand’s innovative campaigns has resulted in Vivo claiming the No. 3

position with a 14.25 per cent market share in India today. Meanwhile, Oppo Mobile held 11.7

per cent market share in the offline Indian market as of January 2017, compared to 1.5 per cent

share in the corresponding period last year.

13
India is a peculiar and diverse market with over 100 local and international smartphone brands,

and hence, creating a differentiator in the market is an uphill task. Both, Vivo and Oppo Mobile

have invested in market research to better understand the trends, consumer demands, and

behaviour. The real challenge is to continue to find the consumers’ actual need and find that one

demand which fulfils all the needs of users.

“Chinese brands have figured out that if you win the salience and top-of-mind battle, all else can

wait,” said Ambi Parameswaran, adding that their effort for now has been to build brand

salience, the bottom most part of the brand building pyramid. “Except for Apple and Samsung,

none of the other brands have been able to build a visible image aura, although Lenovo tried, but

not sure how much they have succeeded,” he further said.

According to Sandip Tarkas, Chinese brands have developed layers to their brands, which give

the brands some depth and have stopped highlighting just the price and are now even able to start

raising the prices as a result in certain segments. “Overall, this has ensured that they offer you a

complete package – a great product sans compromise at a price that is very competitive,” he

added.

All the right moves

So, what are Chinese brands doing right that other mobile brands are not doing or are doing less

of?

Vivo has been active in marketing and has invested heavily in brand building and the association

with IPL has not only helped in brand recall but also reach the hearts of Indians. Along with its

360-degree marketing strategy, Vivo has built a strong retail network to ensure hassle free

service for customers. According to Vivek Zhang, CMO, Vivo India, “There is a strong

14
requirement for good after sales service in India and we are striving to offer the best after sales

services to our customers, while our robust offline distribution channel differentiates us in the

dynamic Indian smartphone market.”

Stating that India is one of the biggest markets for Oppo, Will Yang, Brand Director, Oppo

India, informed that the company takes a lot of effort in localisation to find out the real demands

of the consumers and follow a “simple and focused approach” that works with the youth by

connecting with platforms that the youth loves – Bollywood and Cricket.

The purpose of this research is to evaluate the factors affecting the purchase intention of

consumers towards mobile phones of China brand, in context of country of origin. The mobile

usage in Malaysia had exceeded 140% of the population, which meant that 47% of Malaysia

owned more than one mobile phone. The mobile phones market is getting demanding. Therefore,

the marketers and phone retailers of China brand’s phones are keen to find out the factors that

affect the purchase intentions toward mobile phones of China brand.

Besides this, this research study how the independent variables which are price, perceived

quality, brand awareness and perceived features will impact on the dependent variable which is

the buying intention of the China brand’s mobile phones. Hence, this research will able to

provide a better overview and understanding of the factors affecting the purchase intention of

consumers to the phones retailers and marketers of mobile phones.

Nevertheless, I hope that this research project can give an clearer insight and knowledge of the

purchase intention of consumers towards mobile phones of China brand to the readers.

15
1.3 Top 5 Chinese mobile Brand in Indian Market

1. Vivo

Vivo Communication Technology Co is a Chinese technology company owned by BBK

Electronics that designs, develops, and manufactures smartphones, smartphone accessories,

software, and online services. It was founded in 2009 in Dongguan, Guangdong, China. The

brand uses Hi-Fi chips in its smartphones. Software developed by the company includes the Vivo

App Store, iManager, and a proprietary Android-based operating system called Funtouch OS.

In 2012 Vivo released the X1. The X1 was also the first Vivo phone to use a Hi-Fi chip,

developed by American semiconductor company Cirrus Logic. Vivo followed this up in 2013 by

releasing the world’s first 2k-resolution screen phone, the Xplay3s. Other popular phones in the

Vivo lineup include the X5Pro, the X5Max, and the Xshot.

16
Vivo joined the ranks of the top 10 smartphone makers in the first quarter of 2015 with a global

market share of 2.7%. With research and development centers in Shenzhen and Nanjing, the

company employed 1,600 R&D personnel as of January 2016.

A young global smartphone brand focusing on introducing perfect sound quality and ultimate

photography with cutting-edge technology, Vivo develops dynamic and stylish products for

passionate young people. It develops and manufactures smartphones, smartphone accessories,

software, and online services. Founded in 2009, Vivo has quickly expanded into markets in India

and South East Asia.

2. Oppo

Oppo Electronics Corp. (commonly referred to as Oppo) is a Chinese consumer electronics and

mobile communication company. They are well known for their smartphones, Blu-ray players

and other electronic devices. Oppo is a leading manufacturer of smartphones. They were the top

smartphone brand in China in 2016 and was ranked 4 worldwide in 2016.

17
Their brand name Oppo was registered in China in 2001 and launched in 2004. Since then, they

have expanded to all parts of the world.

In June 2016, Oppo became the biggest Smartphone maker in China, selling its phones at more

than 200,000 retail outlets.

In 2017, Oppo successfully won the bid to sponsor the Indian national cricket team and has

achieved the rights to display their logo on the team’s kits from 2017 to 2022. Between this

period the Indian national cricket team will play 259 International matches consisting of 62

Tests, 152 ODIs and 45 T20 Internationals. This number also includes the 2019 World cup in

England and 2020 T20 World cup in Australia. The current base price for bilateral matches

involving India has been set at Rs 4.1 crore (approx.) and for Asian Cricket Council (ACC) and

International Cricket Council (ICC) matches, it is Rs 1.56 crore (approx) - almost a four-fold

increase from its earlier rate.

3. Xiaomi

18
Xiaomi Inc. is a Chinese electronics and software company headquartered in Beijing. Xiaomi

designs, develops, and sells smartphones, mobile apps, laptops and related consumer electronics.

Xiaomi released its first smartphone in August 2011 and has rapidly gained market share

in China to become China's largest smartphone company in 2014. As of 2017 Xiaomi is the

world's 5th largest smartphone company. Xiaomi has expanded into developing a wider range

of consumer electronics, including a smart home device ecosystem.

Xiaomi has 15,000 employees in China, India, Malaysia, Singapore and is expanding to other

countries such as Indonesia, the Philippines and South Africa. Lei Jun, the founder and CEO, has

an estimated net worth of US$6.8 billion. He is China's 24th richest person in 2017. Xiaomi is

the world's 4th most valuable technology start-up after it received US$1.1 billion funding from

investors, making Xiaomi's valuation more than US$46 billion.

4. Lenovo

19
Lenovo was founded in Beijing in November 1984 as Legend and was incorporated in Hong

Kong in 1988. Lenovo acquired IBM's personal computer business in 2005 and agreed to acquire

its Intel-based server business in 2014. Lenovo entered the smartphone market in 2012 and as of

2014 was the largest vendor of smartphones in Mainland China. In 2014 Lenovo acquired the

mobile phone handset maker Motorola Mobility from Google.

Lenovo is listed on the Hong Kong Stock Exchange and is a constituent of the Hang Seng China-

Affiliated Corporations Index, often referred to as "Red Chips".

5. OnePlus

OnePlus was founded on 16 December 2013 by former Oppo vice-president Pete Lau and Carl

Pei. According to the Chinese government's documentation, the only institutional stockholder in

OnePlus is Oppo. Although Lau initially denied that OnePlus was a wholly owned subsidiary of

20
Oppo, upon release of the regulatory filings they admitted that they are owned by Oppo and are

"in talks with other investors" (although nothing has been announced to date). The company's

main goal was to design a smartphone that would balance high-end quality with a lower price

than other phones in its class, believing that users would "Never Settle" for the lower-quality

devices produced by other companies. Lau explained that "we will never be different just for the

sake of being different. Everything done has to improve the actual user experience in day-to-day

use." He also showed aspirations of being the "Muji of the tech industry", emphasizing its focus

on high-quality products with simplistic, user-friendly designs. Continuing Lau's association

with the platform from the Oppo N1, OnePlus entered into an exclusive licensing agreement

with Cyanogen Inc. to base its products' Android distribution upon a variant of the popular

custom ROM CyanogenMod and use its trademarks outside of China.

The company unveiled its first device, the OnePlus One, on 23 April 2014. In December 2014,

alongside the release of the OnePlus One in India exclusively through Amazon, OnePlus also

announced plans to establish a presence in the country, with plans to open 25 official walk-in

service centers across India.

21
 CHAPTER-2:

LITERATURE REVIEW

In 2010, China and India were named the first and second largest mobile phone markets in the

world based on their number of subscribers. India and China have focused on extending their

22
telecommunication services into rural areas for socio-economic benefits. Both countries

liberalized and privatized the industry under different political regimes utilizing different

strategies. The aim of this thesis is to examine the collaborative efforts of public and private

agencies in India and the role they do in disseminating information to farmers through mobile

phones when compared to the government agencies in China that have been created to share that

information in order to determine which program is more effective. To answer this question, the

thesis compares Indian and Chinese policies and programs enacted to encourage sales and use of

mobile phones in the agricultural sector to increase efficiency and encourage growth. As free

market principles and private for-profit corporations are generally more efficient than

government agencies, this thesis hypothesizes that the policies and development initiatives taken

by the Indian government are more successful in disseminating information than the government

agency approach followed by China. In response to the above research question, the thesis

reveals that while the mobile phone agricultural information service programs have been

successful in their respective countries, the programs in India are more reliable and faster in

disseminating information to farmers. This is determined because the number of subscribers in

India’s mobile phone agricultural information service programs grew 37.47% in 4 years, from

2008-2012, versus subscribers to China’s agricultural information service programs that grew

21.1% from 2007-2010.

As Harish Bijoor, Brand-Guru &Founder of Harish Bijoor Consults Inc, pointed out,

Chinese mobile brands have been successful for not one, but many reasons, the primary reason

being the fact that these are robust brands made for a robust environment. They are priced

sensibly, have just the right kind of cosmetics and their price point is irresistible.

23
Ambi Parameswaran, Founder of [Link], noted that Chinese brands are

tantalising Indian mobile customers as they upgrade their old instruments. “Just as the Korean

brands in the last decade, the Chinese brands are trying to offer more features at a lower price.

They have also learnt the need to build brand salience and Oppo and Vivo are everywhere today

since they are owned by the same parent company,” he added.

“Indian brands missed a trick in not developing layers to the brand and stayed in the low margin

price warrior end of the market,” Sandip Tarkas, Independent Management Consultant

at Songdew. On the other hand, Chinese manufacturers saw an opportunity here and zeroed in.

He added, “They copied the same strategy as the Indian brands to begin with. So, they too

manufacture in China – with perhaps a bit of advantage on pricing over Indian brands since they

also retained the manufacturing margins.”

Previous studies showed that mobile phones have improved the economic welfare of rural

citizens. Other studies look at the impact of mobile phones on social welfare (Wei & Zhang,

2008; Yang 2008). Wei and Zhang’s (2008) case study based on Diffusion of Innovation and

Perceived Need theories analyzed the psychological and behavioral factors as well as the

demographics associated with the adoption and use of mobile phones in Hubei, a rural region in

China. The three psychological factors considered are the Perceived Characteristics of Mobile

Phones (PCM), the Perceived Popularity of Mobile Phone (PPM), and the Perceived Need for

Mobile Phone (PNM). The behavioral factors considered are mass media use, interpersonal

communication, and adoption of similar new media technologies. The two dimensions of mass

media use are time and content. Interpersonal communication means the frequency of

communicating with family and friends. Adoption of similar new media technologies is a new

media technology that perceived needs such as immediate access, instrumentality, fashion and

24
statues, affection and sociability, and relaxation (Wei & Zhang, 2008). The demographic

variables included in the study are age, gender, education, family income, marriage status, and

occupation; in combination, these factors help to explain people’s attitudes about mobile phones

as well as their adoption patterns (Wei & Zhang, 2008,).

Several of the cross-national studies include India and China in their comparisons. Harwit (1998)

took a comparative developmental approach by comparing China’s policy process and telecom

investment to other nations. Petrazzini and Krishnaswamy (1998) compare the restructuring of

the telecom industries in Latin America with the restructuring efforts in Asian countries.

Individual case studies of India and China conclude that the adoption of neoliberal policies have

helped to reform the telecom sectors in both countries and have contributed to the overall

economic growth of each country over the past decade. Both countries promoted competition and

fostered foreign investment in telecom networks and basic services after reforms. However, India

is the only country that allowed foreign investment in basic telephone services and private firm

entry. In addition, the governments gave foreign investors preferential state loans, decreased

service charges, and decreased handset prices. Such actions resulted in an increase in the growth

of product sales and services in the telecommunications sectors. The overall telecom and cell

phone penetration (access to mobile phones) rates also increased (Harwit, 1998; Kathuria, Singh,

& Soni, 2000; OECD, 2003; Petrazzini & Krishnaswamy, 1998).

25
 CHAPTER 3

METHODOLOGY

 Objectives of the Study

 Scope of the Study

 Sources of Data Collection

 Universe/Population

 Sampling Unit & Sample Size

 Sampling Techniques

 Tools Used for Data Analysis

Objectives

 To compare Chinese mobile brands with Indian brands.

 To find out causes for preference of Chinese mobile phones.

26
Scope

 To know about the telecom industries of both China & India

 What are the causes for increasing demand of Chinese mobile phones

 What Chinese mobile brands are doing in India for creating brand name

 Top Chinese mobile brands in India market

RESEARCH METHODOLOGY

Research Design

The research design for the study is descriptive in nature. The respondents belonged to New

Delhi. The questionnaire constructed for the study included several questions which were

continuous and categorical in nature.

Sample Size: 50 respondents

Sample Area: New Delhi

Sampling Techniques: Sampling techniques can be broadly classified in to two types:

 Probability Sampling

 Non Probability Sampling

This project has been based on the non-probability, purposive, quota sampling. As in the given

project the sample has been considered specific to predetermined in New Dehi.

Judgmental sampling: Sample was taken on judgmental basis. The advantage of sampling are

that it is much less costly, quicker and analyse will become easier.

METHODOLOGY USED FOR DATA COLLECTION

Primary Data

27
Looking into the objectives and information needed, I have chosen following two methods as per

the response of the subject:-

 Schedules

 Personal Interview.

Scheduler Method

Schedules have been filled in by the respondents.

Personal Interview Method

To take personal interview wherever it has been essential. The strategy has been adopted to avoid

the biased information and to spill out the required data from the respondent.

b) Secondary Data

The Secondary data has been mainly collected from different books, magazines, Journals,

Newspapers, Internet etc.

Methodology used for data analysis

 Bar chart (Bar charts has been used for comparing two or more values that will be taken

over time or on different conditions, usually on small data set )

 Pie-chart (Circular chart divided into sectors, illustrating relative magnitudes or

frequencies)

28
 CHAPTER 4:

DATA ANALYSIS & INTERPRETATION

DATA ANALYSIS & INTERPRETATION

29
1. What is your gender?

Table 1

Particulars No. of Respondent Percentage

Male 31 62%

Female 19 38%

TOTAL 50 100%

Figure 1

38%

Male

62% Female

Interpretation: Most of respondents were male.

2. Do you use smart phone?

30
 Table 2

Particulars No. of respondents Percentage

YES 50 90.5%

NO 5 9.5%

TOTAL 55 100%

Interpretation: 50 out of 55 respondents use smart phones, while only 5 out of 55 respondents

do not use smart phones.

31
3. What size of smart phone would you prefer?

Table 3

Particulars No. of Respondent Percentage

Small 5 10%

Medium 20 40%

Large 25 50%

TOTAL 50 100%

Figure 2

35

30
30

25

20
20

Sales
15

10

5
5

0
Small Medium Large

Interpretation: 60 % customer prefer medium smart phone . 30 % customer prefer large smart

phone .

4. What factors convince you the most while buying a smart phone?

32
Table 4

Particulars No. of Respondent Percentage

Features 15 30%

Price 16 32%

Offers & Deals 5 10%

Brand name 10 20%

Design & style 4 8%

TOTAL 50 100%

Figure 3

18
16
16 15
14

12
10
10
Sales
8

6 5 5
4

0
Features Price Offers & Deals Brand name Design & style

Interpretation: 16% customer convince on mobile price while buying a smart phone. 15%

customer convince on mobile features while buying a smart phone. 10% customer convince on

mobile brand name while buying a smart phones.

5. How much are you willing to spend on a good Chinese brand?

33
Table 5

Particulars No. of Respondent Percentage

0 – 5000 4 8%

5000 – 10000 20 40%

10000 – 20000 15 30%

More than 20000 11 22%

TOTAL 50 100%

Figure 4

25

20
20

15
15

11 Sales
10

5 4

0
0 – 5000 5000 – 10000 10000 – 20000 More than 20000

Interpretation: 40% customer willing to spend 5000 – 10000 on a good Chinese brand. 8%

customers are willing to spend 0 – 5000 on a good Chinese brand. 30% customers are willing to

spend 10000 – 20000 on a good Chinese brand.

6. Which Chinese mobile phone company’s mobile would you prefer to your friend to buy?

34
Table 6

Particulars No. of Respondent Percentage

Xiaomi 6 12%

Lenovo 5 10%

Oppo 6 12%

Vivo 9 18%

Huawei 5 10%

Oneplus 9 18%

Coolpad 3 6%

Gionee 6 12%

Zopo 1 2%

ZTE 0 0%

TOTAL 50 100%

Figure 5

35
 10
9 9
9

7
6 6 6
6
5 5
5
Sales
4
3
3

2
1
1
0
0
Xiaomi Lenovo Oppo Vivo Huawei Oneplus Coolpad Gionee Zopo ZTE

Interpretation: Most of customers want to purchase Chinese mobile of Xiaomi, Lenovo, Oppo,

Vivo and OnePlus.

7. Which media tool is the most influential for the customer.

36
a) TV Commercial b) Newspaper

c) Radio d) Word of Mouth

Table 7

Particulars No. of Respondents Percentage

TV Commercial 32 64%

Newspaper 9 18%

Radio 7 14%

Word of Mouth 2 4%

Totals 50 100%

Figure 6

Result
35
32
30

25

20

15

10 9
7
5
2
0
TV Commercial Newspaper Radio Word of Mouth
:

Interpretation: From the data given above we came to know that Advertisement is the tool that

effects the buying decision of the customers the most.

37
8. Do you thing Celebrity Endorsment effect the Customer purchase decision.

a) Yes b) No

c) May be d) Don’t know

Table 8

Particulars No. of Respondents Percentage

Yes 13 26%

No 17 34%

May be 15 30%

Don’t know 5 10%

Totals 50 100%

Figure 7

Report

10%

26%
Yes
No
May be
Cant say
30%

34%

38
Interpretation: Most of customer think that Celebrity Endorsement do not effect the Customer

purchase decesion..

9. Do you think that the Chinese mobile brand that you like can compete with the other

non Chinese brand like Samsung, Apple, HTC?

Table 9

Particulars No. of Respondents Percentage

Completely Agree 14 28%

Somewhat Agree 15 30%

Neutral 6 12%

Somewhat Disagree 2 4%

Completely Disagree 13 26%

TOTAL 50 100%

Interpretation: 13 out of 50 respondents completely disagreed on the statement given above,

while 14 completely agreed that Chinese brands can go toe to toe with brands like Samsung,

HTC, Apple etc.

10. Do you think Chinese Phones is now targeting the lower segment group.

a) Yes b) No

c) May be d) Can’t say

Table 10

Particulars No. of Respondents Percentage

Yes 22 44%

No 13 26%

May be 11 22%

Cant say 4 8%

39
 Totals 50 100%

Figure 8

Report
25
22

20

15
13 Sales
11
10

5 4

0
Yes No May be Cant say

Interpretation: From the graph given above we came to know that 22 out of 50 respondents

think that Chinese mobile companies are targeting the lower segment group.

11. Do you think Chinese Phones lagging behind in this generation of new Smart phones.

Table 11

Particulars No. of Respondents Percentage

Yes 33 66%

No 7 14%

May be 2 4%

Cant say 8 16%

40
 Totals 50 100%

Figure 9

Report

16

4 Yes
No
May be
Cant say
14

66

Interpretation: From what the above chart shows most respondents says that Chinese Phones

are not lagging behind in this generation of new Smart phones.

Ques 10-) Do you think Chinese Phones should plan a revive Marketing strategy focusing

on its durability.

Table 12

Particulars No. of Respondents Percentage

Yes 16 32%

No 7 14%

May be 17 34%

41
 Cant say 10 20%

Totals 50 100%

Figure 10

Report

20

32
Yes
No
May be
Cant say

34
14

Interpretation: From the chart given above we came to know that most respondents were not

sure if Chinese phones should plan a revive marketing strategy focusing on its durability.

42
 CHAPTER 5

FINDINGS & CONCLUSION

• FINDINGS OF THE STUDY

• LIMITATIONS

• CONCLUSION

• SCOPE FOR FURTHER STUDY

43
FINDINGS OF THE STUDY

O Most of our respondent are male.

o 60 % customer prefer medium smart phone . 30 % customer prefer large smart phone .

o 40 % customer convince on mobile price while buying a smart phone. 25 % customer

convince on mobile features while buying a smart phone. 20 % customer convince on

mobile brand name while buying a smart phone

o 55 % customer willing to spend 5000 – 10000 on a good Chinese brand. 20 % customer

willing to spend 0 – 5000 on a good Chinese brand. 15 % customer willing to spend

10000 – 20000 on a good Chinese brand.

o most of customer want to purchase Chinese mobile of Xiaomi, Lenovo, Oppo and Vivo.

o From the above graph shows mostly customer’s used TV Commercial for influential

for the customer.

o Most of customer think that Celebrity Endorsment effect the Customer purchase

decesion..

o From the above graph shows mostly customer says that Chinese Phones is now targeting

the lower segment group.

o From the above graph shows mostly customer says that Chinese Phones Lagging behind

in this generation of new Smart phones.

44
 o From the above graph shows mostly customer says that Chinese Phones should plan a

revive Marketing strategy focusing on its durability.

• LIMITATIONS

 The sample size is very small compared to the total population of the region.

 The study was conducted with the basic assumption that the information given by the

respondent is factual and represents their true feelings and behavior.

 The method lacks flexibility. In case of inadequate or incomplete information the result

may deviate.

 It is very difficult to check the accuracy of the information provided.

 Since all the products and services are not widely used by all the customers it is difficult

to draw realistic conclusions based on the survey.

• CONCLUSION

The Smartphone era started with the phase purely meant for enterprises. During this phase all the

companies were designed the Smartphone as per the corporate requirements and targeting to the

corporations. In 1993 the era began with the advent of smartphone ‘Simon’ which was the first

smartphone. Blackberry as the revolutionary device of this era had introduced many features like

email, internet, fax, web browsing, camera etc. This phase was mostly focused on targeting

enterprises. The second phase was the IPhone Smartphone era started with a major breakthrough

Smartphone market in 2007 which was first time ever industry introduced the Smartphone for

45
general consumers. Google introduced Android Operating System smartphone with the intention

to approach the consumer market at the end of 2007. Google emphasised more on features like

email, social website, audio, video and internet access that mostly liked by general consumers at

a very low cost. Third phase of Smartphone was mainly targeted to reduce the gap between

enterprise customer and general consumer requirements by improving the display quality,

technology, stable the mobile operating system, more powerful batteries and enhance the user

friendly operating system etc. The smartphone market today is very much challenging as very

few manufacturers experiment with new technologies and are giving importance to packing

phones with ever-impressive specifications and trying to improve the individual components to

make a unique one. Smartphone displays are enhanced to 1080p resolution, digital cameras on

higher megapixel density, higher storage capacity and higher processing power is approaching

towards the technology of personal computers.

During the initial years of wireless telephony in India, customers had a limited choice in terms of

handsets. The majority of handsets were imported by a handful of global handset players present

in the market. The cost of both the handsets and wireless services were beyond the reach of low–

income users. Handsets then were fairly basic, which enabled users to primarily access voice

services and limited data services such as short messaging service (SMS). Over the years, this

scenario has changed dramatically with a wide variety of handset choices for customers. The

growth in the number of handset players accorded mainly due to a rapidly expanding telecom

market combined with low production and marketing costs. Customized low-cost, feature-rich

smartphone has become more mobility and useful than ever before. Smartphone works together

with the application software of social networking tools hence, new technology tethering is the

process of connecting secondary devices to the internet via a shared connection of a smart phone,

46
either by setting up a personal Wi-Fi hotspot or by using a USB cable to connect (or tether) the

devices. Tethering has been a complex and pressing issue for many operators not in India but

globally due to an inherent lack of understanding of its impact on usage behavior and the

undetermined potential impact on the profitability. Clearly, the ability to connect multiple

devices to a single cellular plan could significantly raise the ceiling of the potential usage

demand of any given customer. During the period 2010-2015, the number of wireless subscribers

in India is expected to increase at a CAGR of 11.2% to reach 1.2 billion subscribers by 2015. A

majority of the new subscriber additions is expected to be from the semi-urban and rural areas,

driving down the average selling price (ASP) of handsets [2].

• SCOPE FOR FURTHER STUDY

•The company should try to reach maximum consumers in India by making distribution channel

more effective.

•The company should continue to work on the Strategy of T.Q.M (Total Quality Management).

•The Chinese is brand in itself and none of the other brands are in a position to compare with it

in Quality, Reliability and Brand Image. Even then a number of other brands are entering the

market and are acquiring a good market share. The main reason behind it is that the distributors

of the company are not able to provide regular supply to the retailers in all the areas.

•Consumers do not get satisfied with the promotional policies of the company. New techniques

of promotion are required to create awareness about the entire range of Chinese products.

47
ANNEXURE

PART A

1. What is your name?

2. How old are you?

3. What is your gender?

o Male

o Female

4. Do you use smart phone?

o Yes

o No

5. What size of smart phone would you prefer?

o Small

o Medium

o Large

6. What factors convince you the most while buying a smart phone?

48
 o Features

o Price

o Offers & Deals

o Brand name

o Design & style

7. Which brand of mobile phone are you using right now?

8. What is the likelihood of purchasing a Chinese brand as your next mobile phone?

o Not at all likely

o Slightly likely

o Moderately likely

o Very likely

o Completely likely

9. How much are you willing to spend on a good Chinese brand?

o 0 – 5000

o 5000 – 10000

o 10000 – 20000

o More than 20000

10. Which Chinese mobile phone company’s mobile would you prefer to your friend to

buy?

o Xiaomi

o Lenovo

49
 o Oppo

o Vivo

o Huawei

o Oneplus

o Coolpad

o Gionee

o Zopo

o ZTE

11. Which media tool is the most influential for the customer.

A) TV Commercial B) Newspaper

C) Radio D) Word of Mouth

12. Do you thing Celebrity Endorsment effect the Customer purchase decesion.

a)Yes b)No

c)May be d)Cant say

13. Do you think that the Chinese mobile brand that you like can compete with the other

non Chinese brand like Samsung, Apple, HTC?

o Completely Agree

o Somewhat Agree

o Neither agree nor Disagree

o Somewhat Disagree

o Completely Disagree

14. Do you think Chinese Phones is now targeting the lower segment group.
50
a)Yes b)No

c)May be d)Cant say

15. Do you think Chinese Phones Lagging behind in this generation of new Smart phones.

a)Yes b)No

c)May be d)Cant say

16. Do you think Chinese Phones should plan a revive Marketing strategy focusing on its

durability.

a)Yes b)No

c)May be d)Cant say

51
Bibliography

 [Link]

 [Link]

Bonthu_ku_0099M_13245_DATA_1.pdf

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