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History of obile phones

!n urope, radio telephony was first used on the first-class passenger trains between

#erlin and 3amburg in 4 5. At the same time, radio telephony was introduced on

passenger airplanes for air traffic security. 6ater radio telephony was introduced on a

large scale in &erman tanks during the "econd 7orld 7ar.

!irst "eneration

8nApril %, 49%, otorola employee :r. artin ;ooper placed a call to :r. second generation> ( &) mobile phone systems such as &" , !"- %5

(@': A@), i: and !"-4 (@;: A@) began to be introduced. !n 44 the first &"

network (BadiolinCa) opened in Dinland. & phone systems were characterized by digitalcircuit switched transmission and the introduction of advanced and fast phone-to-

network signaling.

Thir% "eneration

'he first pre-commercial trial network with %& was launched by '' :o;o o in

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#e&en ele ents of ser&i$e ar'etin" i(

'hese seven elements are often referred to as the marketing mix, which a marketer can

use to craft a marketing plan. 'he seven $Fs model is most useful when marketing low

value consumer products. !ndustrial products, services, high value consumer products

reGuire adCustments to this model. "ervices marketing must account for the uniGue

nature of services. !ndustrial or # # marketing must account for the long term

contractual agreements that are typical in supply chain transactions

'he service marketing mix comprises off the 9FpFs. 'hese includeH

)ro%u$t

)ri$e

)la$e

)ro otion

)eople

)ro$ess)hysi$al e&i%en$e.

I )ro%u$t:

'he product aspects of marketing deal with the specifications of the actual goods or

services, and how it relates to the end-user>s needs and wants. 'he scope of a product

generally includes supporting elements such as warranties, guarantees, and support.

)ri$in":

'his refers to the process of setting a price for a product, including discounts. 'he price

need not be monetary - it can simply be what is exchanged for the product or services,

e.g. time, energy, psychology or attention.

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)ro otion:

'his includes advertising, sales promotion, publicity, and personal selling, branding and

refers to the various methods of promoting the product, brand, or company.

)la$e

Befers to how the product gets to the customerJ for example, point of sale placement or

retailing. 'his fourth $ has also sometimes been called Place , referring to the channel

by which a product or services is sold (e.g. online vs. retail), which geographic region or

industry, to which segment (young adults, families, business people), etc.

)eople

An essential ingredient to any service provision is the use of appropriate staff and

people. Becruiting the right staff and training them appropriately in the delivery of their

service is essential if the organization wants to obtain a form of competitive advantage.

;onsumers make Cudgments and deliver perceptions of the service based on the

employees they interact with. "taff should have the appropriate interpersonal skills,aptititude, and service knowledge to provide the service that consumers are paying for.

any #ritish organisations aim to apply for the !nvestors !n $eople accreditation, which

tells consumers that staff are taken care off by the company and they are trained to

certain standards.

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)ro$ess

Befers to the systems used to assist the organization in delivering the service. !magine

you walk into #urger King and you order a 7hopper eal and you get it delivered within

minutes. 7hat was the process that allowed you to obtain an efficient servicedeliveryL #anks that send out ;redit ;ards automatically when their customerFs old one

has expired again reGuire an efficient process to identify expiry dates and renewal. An

efficient service that replaces old credit cards will foster consumer loyalty and

confidence in the company.

)hysi$al *&i%en$e

7here is the service being deliveredL $hysical vidence is the element of the service

mix which allows the consumer again to make Cudgments on the organization. !f you

walk into a restaurant your expectations are of a clean, friendly environment. 8n an

aircraft if you travel first class you expect enough room to be able to lay downM

$hysical evidence is an essential ingredient of the service mix, consumers will make

perceptions based on their sight of the service provision which will have an impact on

the organisations perceptual plan of the service.

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No'ia

+bout the Co pany

okia ;orporation ( ?" H 8K) is one of the world>s largest telecommunications eGuipment

manufacturers. 7ith headGuarters in Keilaniemi of spoo, Dinland, this Dinnish

telecommunications company is best known today for its leading range of mobile phones.

okia also produces mobile phone infrastructure and other telecommunications eGuipmentfor applications such as traditional voice telephony, !": , broadband access, professional

mobile radio, voice over !$, wireless 6A and a line of satellite receivers.

okia provides mobile communication eGuipment for every maCor market and protocol,

including &" , ;: A, and 7;: A.

okia was established in 05 as a wood-pulp mill by Dredrik !destam on the banks of okia

rapids. Dinnish Bubber 7orks established its factories in the beginning of /th century

nearby and began using okia as its brand. "hortly after 7orld 7ar ! Dinnish Bubber 7orks

acGuired okia wood mills as well as Dinnish ;able 7orks, a producer of telephone and

telegraph cables. All three companies were merged as okia ;orporation in 459. 'he name

okia originated from the river which flowed through the town of the same name ( okia).

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voice calls or sen# te't &essages 0epen#ing on the &o#els chosen, users

can

* share &usic "les bet$een the user)s C an# their phone

* pla% that &usic easil% on stereo luetooth TM hea#phones

* !n the car as $ell as being able to use the phone $ith a han#s free car *it,

pla%

&usic through the car stereo

* .t ho&e, pla% the &usic through %our stereo s%ste&

o In 1986, Motorola came in India. I n India, M otorola has 2 nd rank in mobile

market. The market share of Motorola is n ear about 18%. The target audience of

Motorola is youth of India. In India, Motorola offers world class mobile phones to

satisfy the needs of all segments of the market. In India they are offering the

smallest and the lightest GSM handset in market.

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#+M#UN

+bout the $o pany

#a sun" Tele$o uni$ations is one of five business units within "amsung

lectronics, belonging to the "amsung &roup, and consists of the obile

;ommunications :ivision, 'elecommunication "ystems :ivision, ;omputer :ivision,

$% #usiness 'eam, obile "olution ;entre and 'elecommunication B=: ;entre.

'elecommunication #usiness produces a full spectrum of products from mobiles and

other mobile devices such as $% players and laptop computers to telecommunication

network infrastructure. 3eadGuarters is located in "uwon, "outh Korea.

!n //9 "amsung 'elecommunication #usiness reported over /E growth and became

the second largest mobile device manufacturer in the world. !ts market share was E

in N //9, growing up form .%E in N //5.!n N //0 "amsung strengthened its

second position on the market and achieved .5E world handset market share.

#ta"es of Tele$o uni$ation usiness

Initial sta"e 01 22-1 34

!n 499 "amsung lectronics launched the 'elecommunication etwork business, and

in 40% it initiated its mobile telecommunications business with the hope that this would

become the company>s future growth engine. !n 405, "amsung was able to release its

first built-in car phone, the ";- //, but it was a failure due to the poor Guality. !n spite of

unsuccessful result Ki 'ae 6ee, the then-head of the 7ireless :evelopment 'eam,

decided to stay in the mobile business. 3e asked the company to buy ten otorolamobile phones for benchmarking. After years of B=: "amsung developed its first

mobile phone (or @hand phone@ in Korea), the "3- // in 400. !t was the first mobile

phone to be designed and manufactured in Korea. #ut the perception of mobile devices

was very low and although "amsung introduced new models every year, each model

sold only one or two thousand units.

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Ti e of $han"es 01 3-1 54

!n 44% it was decided that the development team should focus on improving

connectivity due to specific mountain topography of Korea. 'hey found the optimal

length of a mobile phone antenna and developed a method of using gold to connect the

point between the antenna and the communication circuits, thus significantly reducing

resistance and enabling steadier wave conductivity. 'hey also developed the wave-

searching software that was specially designed for Korea>s topography.

CDM+ *ra 01 5-1 64

"amsung developed its first ;: A mobile phone in arch 445, to coincide with the

launch of ;: A service. 'he first digital handset, the ";3- //, was extra light and

slim, and enabled clear voice communication. #efore long, "amsung became the leader

in the $ersonal ;ommunications "ervice ($;") market. !t partnered with K'Dreetel and

3ansel $;" to provide $;" phones. !ts first $;" phone, the ";3- //, entered the

market with innovative features, including a lightweight body, enhanced battery life, and

the ability to capture delicate sounds. Dor the $;" market, the company coined a new

slogan, @"trong in small sounds,@ to emphasize the mobile phone>s capability to capture

delicate sounds.

#y the end of 449, one year after the ;: A service was first launchedJ "amsung had

achieved a 9E market share in the ;: A cellular market and 0E in the $;" market.

Also, in April 449, it achieved sales of one million ;: A phone units.

lobal ar'et an% #M *ra 01 6-no74

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'o achieve further growth, "amsung had to penetrate the &" market. 'he first &"

model was the "&3- //, which was made for uropean customers. #ut it was not as

good as the company>s ;: A phone. !t was difficult to hurdle the high entry barrier,

which the then @#ig %@ okia, otorola, and ricsson had built for years. 'he company>s

next few models didn>t attract uropeans, either. 'he development team realized that a

simple change in the circuit system wouldn>t work in the uropean market. 'hus, it

decided to look more closely at the customer>s point of view. 'hey found that uropeans

preferred geometric, balanced, and simple designs. +sing this information, "amsung

adopted >simple> as the design concept, then developed

+N+,8#I# O! COM)+N8 0IN T*RM O! 2 )9#4

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No'ia: )ro%u$t

3istorically, the thinking wasH a good product will sell itself. 3owever there are no bad products

anymore in today>s highly competitive markets. $lus there are many laws giving customers the

right to send back products that he perceives as bad. 'herefore the Guestion on product has

becomeH does the organization create what its intended customers wantL :efine the

characteristics of your product or service that meets the needs of your customers.

!un$tionality:

uality

+ppearan$e

)a$'a"in"

ran%

#er&i$e

#upport

;arranty

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Some of the Products that Nokia o ers to

Customers are:

okia 4/

okia 4%//

okia 00//

okia 99 /

okia 9 0/ okia 9 9/ okia 50 okia 550

okia 550/ okia 559/ okia 55%/ okia 5 5/

okia 5 %/i

16

http://www.nokia.co.in/nokia/0,,74107,00.htmlhttp://www.nokia.co.in/nokia/0,,67684,00.htmlhttp://www.nokia.co.in/nokia/0,,72862,00.htmlhttp://www.nokia.co.in/nokia/0,,66118,00.htmlhttp://www.nokia.co.in/nokia/0,,62952,00.htmlhttp://www.nokia.co.in/nokia/0,,62940,00.htmlhttp://www.nokia.co.in/nokia/0,,71601,00.htmlhttp://www.nokia.co.in/nokia/0,,70665,00.htmlhttp://www.nokia.co.in/nokia/0,,70590,00.htmlhttp://www.nokia.co.in/nokia/0,,63895,00.htmlhttp://www.nokia.co.in/nokia/0,,59031,00.htmlhttp://www.nokia.co.in/nokia/0,,59030,00.htmlhttp://www.nokia.co.in/nokia/0,,71397,00.htmlhttp://www.nokia.co.in/nokia/0,,74107,00.htmlhttp://www.nokia.co.in/nokia/0,,67684,00.htmlhttp://www.nokia.co.in/nokia/0,,72862,00.htmlhttp://www.nokia.co.in/nokia/0,,66118,00.htmlhttp://www.nokia.co.in/nokia/0,,62952,00.htmlhttp://www.nokia.co.in/nokia/0,,62940,00.htmlhttp://www.nokia.co.in/nokia/0,,71601,00.htmlhttp://www.nokia.co.in/nokia/0,,70665,00.htmlhttp://www.nokia.co.in/nokia/0,,70590,00.htmlhttp://www.nokia.co.in/nokia/0,,63895,00.htmlhttp://www.nokia.co.in/nokia/0,,59031,00.htmlhttp://www.nokia.co.in/nokia/0,,59030,00.htmlhttp://www.nokia.co.in/nokia/0,,71397,00.html

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okia 5 okia 5 % No'ia 3

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!un$tionality:

O Attractive design

O xcellent call-GualityO ase of use

O Palue-added features including music player, games, camera, and video features

O 3igh Guality, reliable products.

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#+M #UN :

)ro%u$t

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2(

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No'ia : - )ri$e

3ow much are the intended customers willing to payL 3ere we decide on a pricing strategy - donot let it Cust happenM ven if you decide not to ask (enough) money for a product or service, you

must realize that this is a conscious decision and forms part of the pricing strategy. Although

competing on price is as old as mankind, the consumer is often still sensitive for price discounts

and special offers. $rice has also an irrational sideH something that is expensive must be good.

$ermanently competing on price is for many companies not a very sensible approach.

,ist )ri$e:

Dis$ounts

!inan$in"

,easin" Options

+llo7an$es.

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Motorola :- )ri$e

!t is important to set prices at the correct level if customers are to be persuaded to buy.

$rices will be linked to the product life cycle - in the earliest >launch> phase, prices will be

high to account for development costs. 6ater, as sales are increasing, costs are reduced

so prices can come down. $roducts that are technologically advanced may be sold at

premium, high, prices to reflect the initial research and development that has gone into

them.

$rice is the one element of the marketing mix which creates sales revenue - all the

others are costs. Dor companies like otorola, price is a key element in the marketingmix. !t is a critical selling point. >&etting the price right> is a vital part of building

relationships with customers. As with other companies, prices charged by otorola are

linked to the product life cycle. 7hen a new product is launched prices will typically be

Guite high. 'his is because a lot of product and marketer search has gone into

producing the product. !t usually takes time for large numbers of consumers to purchase

new products. Dor example, %& phones are only Cust beginning to sell in large

Guantities. As a product matures and sales increase, it is possible to reduce costs.

conomies of scale are important. 'hese come in when a firm is able to produce on a

large scale.

7ith high outputs of production, costs of research and development, software

engineering and investment in plant (manufacturing machinery and tooling) can be

spread. "tate-of-the art products are sold at premium prices reflecting the high Guality of

the items and their innovative nature. 'he costs to the users of otorola mobile phones

are kept down because they are subsidized by the network providers such as Podafone.etwork providers want as many people as possible to subscribe to their network. 'hey

therefore like to link with the producers of the best designed phones which feature the

most exciting and effective technologies. $hone retailers will often supply free.

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#+M#UN :- )RIC*

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No'ia:- )la$e

Available at the right place, at the right time, in the right GuantitiesL "ome of the recent maCor changes in business have come about by changing $lace. 'hink of the !nternet and mobile

telephones

,o$ations:

,o"isti$s

Channel e bers Channel Moti&ation

Mar'et Co&era"e

#er&i$e ,e&els

Internet

+$$essibility

24

http://www.12manage.com/methods_constantinides_4s_web_marketing_mix.htmlhttp://www.12manage.com/methods_constantinides_4s_web_marketing_mix.html

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Motorola:-)la$e

'his means how the product actually gets to the customer and refers both to the place

where it is sold, and how it gets to that place. :istribution is the process of moving

goods from manufacturer to retailer or customer. otorola distributes through

independent retailers such as $hones +, network providers such as 8 and 'hree

and online, via the web site. "ometimes >place> is closely linked to product. %& phones,

for example, are mainly sold through %& network providers.

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#a sun":-)la$e

$lace or the distribution network in case of telecommunication is another very importantfactor as the mobile service market is very large and especially in !ndia, it varies to

small towns and even villages, so the availability of recharge coupons, connections,

infrastructure etc are very important at each and every place.

:elhi% , :; arket,outercircle,;annaught

place,:elhi

:; arket

:elhi#& /, otia Khan Q

&anC $aharR

8pp -

$aharganC

$olic "tation

:elhi

* , Boop agar

arket,Kamla agar,

:elhi.

Boop agar

:elhi

6 , ahavir

nclave,palam dabri

road,opp shiv vani school.

mahvir

nclave

:elhi# 9, oti agar ,&round

Dloor , ew :elhi

ear etro

"tation

:elhi;c- 0, KalkaCi, ehru

nclave, ew :elhi

ear ehru

$lace #us

:epot

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No'ia:-)ro otion

3ow are the chosen target groups informed or educated about the organization and its

productsL 'his includes all the weapons in the marketing armory - advertising, selling, sales

promotions, $ublic Belations, etc. 7hile the other three $>s have lost much of their meanings in

today>s markets, $romotion has become the most important $ to focus on.

+%&ertisin":

!ront ,ine #er&i$e

)ubli$ Relations

Messa"e

Dire$t #ales

#ales

Me%ia

u%"et

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Motorola:-)ro otion

$romotion refers to the ways that a business communicates the existence and nature of its products to its market. !t includes paid for >above-the-line> promotion such as media

advertising and >below-the-line> promotion such as special offers and discounts. 'he

type of promotion is linked to product life cycle. Dor a new product, for example, it is

important to inform customers of its features.

8ther types of promotion such as special offers and discounts are referred to as being

>below the line>. 'he type of promotion that is used depends on the stage in the productlife cycle. Dor example, when a new product is launched, such as the BASB, it makes

sense to make people aware. Advertising will communicate the desirability, emotional

benefits and exclusive features of the product. otorola works in close partnership to

promote its phones with retailers. $romotion costs are shared with retailers. 'he more

retailers sell - the more otorola is able to help them.

Motorola Case Study page 5

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#a sun":-)ro otion

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A!A ANA"#S$S AN $N!%&P&%!A!$'N

() : +e' ratio of the respon#ents

!able )

S+N'

Particulars Number Percenta,e

1 e&ale 15 1((

2 Male 15 1((

e&ale Male(

5

1(

15

2(

25

3(

35

Total u&ber fespon#entu&ber fespon#ent

ercentage fespon#ent

$nterpretation

The graphical representation of the table sho$s that out of 3( respon#ents15 are e&ale an# 15 are Male

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Q#2: Have you purchased any mobile during the past year?

Table#2

S+N'Purchased anyMobile urin,

Past #ear

Number of the&espondents

Percenta,e of &espondents

-emale

Male -emale Male

1 :es 11 12 73 33 8(

2 o 4 3 26 67 2(

!otal ./ //

:es o(

2

4

6

8

1(

12

14

16

Totale&ale

Male

$nterpretation

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ut of the 3( respon#ents, 11 fe&ale an# 12 &ale sa% %es the% are using&obile phone in past %ear an# 4 fe&ale an# 3 &ale are those $ho are ne$&obile users

().: ;hich Mobile phone %ou are using

!able).

S+N'

Name of the MobilePhones

Number of the&espondents

Percenta,e of &espondents

-emale Male -emale Male

1 o*ia 11 14 73 3393 33

2 +a&sung 2 ( 13 33 (

3 +pecif%? ( ( ( (

!otal ./ //

o*ia +a&sung

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$nterpretation

ut of the 3( respon#ents, 11 fe&ale an# 14 &ale are using o*ia hone, 2fe&ale are using +a&sung, 2 fe&ale are using

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>+pecif%?!otal ./ //1

(2468

1(1214

16

Totale&ale

Male

Interpretation

&he graphical representation shows that out of the 30 respondents, 9 female and !! male respondentswere willing to spend less than !0,000, ' female and 3 male were willing to spend between !0,00! to20,000, ! male was willing to pay between 20,00! to #0,000 and nobody ready to pay any amount$

Q#14: (onsider the &) advertisement you li*e + what brand is it promoting

Table#14

S+N'Name of the

MobilePhones

Number of the

&espondents

Percenta,eof

&espondents

-emale

Male-emal

eMale

1 o*ia 12 12 8( 8(

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2 +a&sung ( 1 ( 6 67

3 +pecif%?( ( ( (

Total 3( 1((

o*ia +a&sung

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phones-emal

eMale

-emale

Male

1 @an#s free 1( 1166 67

73 33

2 luetooth @ea# +et 4 426 67

26 673 + 0ata Cable 6 6 4( 4(

4Me&or% Car# >+0 Car#?

12 6 8( 4(

5 thers>+pecif%? ( ( ( (

(

2

4

6

8

1(

1214

16

Total 3(e&ale 15

Male 15

Interpretation

Out of 30 respondents !0 female an !! male have the accessory of hands free, # female and #

male have the accessory luetooth head set, ' female and ' male having the - data cable, !2

female and ' male having the memory card $

Q#8: .atest 4obile facilities which you are aware of5"

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!able)9

S+N'"atest mobile phonesfacilities awareness

Number 'f &espondents

Percenta,e of &espondents

-emale Male

-emale Male

1 G + 1( 1(66 67

66 67

2 3G 3 1 2( 6 673 MM+ 12 12 8( 8(

4 luetooth 13 1186 67

73 33

5 !nfrare# 1( 966 67

6(

6 Di#eo Call 3 4 2( 26 67

7 ther acilities ( 2 ( 13 33

(2

468

1(121416

Total 3(e&ale 15

Male 15

Interpretation

Out of 30 respondents !0 female and !0 male are aware about the facility of /67-, 3 female and! male are aware about 3/, !2 female and !2 male are aware about 44-, !3 female and !!male are aware about luetooth, !0 female and 9 male are aware about the nfrared,3 female and# male are aware about )ideo (all and2 male are aware about other facilities Ma*ing otes,Multi pla%ers ga&es

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R*COMM*ND+TION#

No'ia

xpend mobile voice

:rive consumer multimedia

#ring extend mobility to enterprises

Bight time of decision

:etermination and risk taking

Doreseeing and using rising market opportunity

;reating the future

#a sun"

Aggressively hawking fill tops and clamshell with polyphonic ring tones and

colour screen

ationwide distributor and retail presence in the domestic consumer durable

market

"et up handset manufacturing facility in india

Motorola

'he ;ommunication 8bCective of otorola is to improve brand image and

awareness. Also creating brand recall in customers mind through ;olor, 6ogo,

and its promotional program. "o the person enhances to buy the product. Dor

achieving this obCective otorola using some tools of marketing

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'he target market of otorola is +rban and Bural area. 'he target audience of

otorola is ?outh. otorola attract its target audience through

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I ,IO R+)H8

1. 777."oo"le.$o