Download - Shiv Rural
-
8/6/2019 Shiv Rural
1/26
INTERNATIONAL INSTITUTE FOR SPECIAL EDUCATION LUCKNOW
Research Report Taste and preferences of Rural Consumer in
mobile segment(As part of completing Post Graduate Diploma In Management)
SUBMITTED BY:
SHIV PRATAP SINGHENROLL. NO. -1088
IISE LUCNOW
UNDER GUIDANCE OF: MRS. SHILPI SAXENA HOD,FACULTY
IISE BUSINESS SCHOOL, LUCKNOW
SUBMITTED TO: DEPT. OF MANAGEMENTI.I.S.E. BUSINESS SCHOOL LUCKNOW
-
8/6/2019 Shiv Rural
2/26
ACKNOWLEDGEMENT
No academic endeavor can be single handedly accomplished. This work is no exception.
At the outset, I would like to express our gratitude to Mrs. Shilpi Saxena, Faculty
IISE Business School for initiating us into this project (rural marketing). We sincerely
acknowledge our thanks for her valuable suggestions and time to time consultation.
Last, but not least, I would like to thank all the people who helped me in completion of
this project and for their kind cooperation and assistance during my project work.
-
8/6/2019 Shiv Rural
3/26
PREFACE
My project is about studying the rural market-the taste and preferences of the rural
customers when purchasing mobile phones and availing after sales services and that which GSM
or CDMA Service they prefer or use. Rural Areas visited were Rahimabad, Amousi, Gauri, 3 No.
bagiya falling under Sarojini Nagar Police circle. Before making this Project I was not aware
about the varied taste and preference pattern in RURAL AREAS. After doing this project, my
knowledge has increased with respect to need, taste, preferences and ever growing demand of
mobile phones. During this project I met with many people of varied background and
occupation. Moreover, I learnt the complexity coming into RURAL MOBILE Segment and
companies are fighting hard for their share of pie by introducing mobile phones with affordable
price.
-
8/6/2019 Shiv Rural
4/26
TABLE OF CONTENT
OBJECTIVES
RESEARCH METHODOLOGY
INTRODUCTION
What Rural Mobile Phone Users Want?
THE INDIAN MOBILE MARKET
ABOUT LOCAL CHINESE BRANDS
TABULATION OF DATA
GRAPHICAL REPRESENTATION
MAJOR FINDINGS
SUGESSIONS
CONCLUSION
REFERENCES
http://www.nampblog.com/2010/04/what-rural-mobile-phone-users-want.htmlhttp://www.nampblog.com/2010/04/what-rural-mobile-phone-users-want.html -
8/6/2019 Shiv Rural
5/26
OBJECTIVES:
Major Objectives:
To study taste and preferences of Rural Consumer in Mobile segment.
Minor Objectives:
1. Factor important in purchasing a mobile phone.
2. To know the percentage of rural area people knowing
about after sales-service.
3. To know mobile services they are using. How many of
them are switchers?
4. Ideal refill (top-up/recharge) voucher for you?
-
8/6/2019 Shiv Rural
6/26
RESEARCH METHODOLOGY:
Primary Data : From Amausi, Rahimabad, Gauri, Naven Gauri (Sarojini Nagar), Ali
Nagar Sunehra, Kesari Kheda.
Tool : Questionnaire
Sample Size = 50 People
Analysis Mean: Graphical representation
-
8/6/2019 Shiv Rural
7/26
INTRODUCTION:
Defining the Indian rural market
The definition of the word rural in a market like India is very amorphous. There aremultiple versions of the same idea, which are followed by different entities. Even in the ruralmarketing space, there is not one concrete definition. Different brands define rural according totheir product and service offerings. In a diverse market like India, which has a population ofmore than1.17 billion people (estimate till July 2009), the urban-rural divide is quite significant.According to various studies, around 12.2per cent of the worlds population lives in rural India,which also indicates that 29 per cent of the worlds rural population lives here. As per the 2001census, 72.2 per cent of the population lives in about 6, 38,000 villages scattered throughout thecountry. The number of people living in each of the Indian villages also varies considerably. It isfound that most of the Indian villages have a population of less than1, 000, while there are only afew villages where more than 10,000people live.
-
8/6/2019 Shiv Rural
8/26
What Rural Mobile Phone Users Want?
Indian has always been a very lucrative market for all the mobile phone companies.
Though these days mobile phones have reached in every nook and corner of Indian metros and
other big cities, the rural market still remains largely untapped and the penetration is very low if
you compare it to the penetration of mobile phones in some big Indian cities. The heavily
untapped rural market still attracts mobile phone companies from Nokia to the unbranded ones.
Like mobile phone OEMs, mobile service providers are also very much interested in tapping this
market and the biggest question they face today is the kind of services they need to offer for rural
customers. When it comes to mobile services, the preferences of the urban mobile users are
entirely different from what their rural counter parts prefer. Its a no brainer that, rural mobile
users are looking for ultra cheap mobile services whereas urban customers look for high internetspeeds and rich mobile experience. Rural customers prefer features like camera, dust proof
phones with torch lights. Operators also need to make sure that they devise special and cheap
plans for customers in rural India as money is the main factor for these people and as far as
mobile phone companies are concerned, products which are easy to use and handle are rugged
and have good after sales service support will do well in this market
http://www.nampblog.com/2010/04/what-rural-mobile-phone-users-want.htmlhttp://4.bp.blogspot.com/_R_sbWukBfwI/SCEkQqzv5VI/AAAAAAAACBU/DHAXF3QrWAo/s1600/India_mobile.jpghttp://www.nampblog.com/2010/04/what-rural-mobile-phone-users-want.html -
8/6/2019 Shiv Rural
9/26
THE INDIAN MOBILE MARKET:
Voice and Data recently released a survey report on mobile handset market share in India
which says a lot of things on where India is heading to. In the financial year 2009 10, the
market share ofNokia in India stood at 52.2%. Thats a good 11.8% falls from 64% in the last
financial year. Samsung with its wide range ofCorby and Star branded mobiles has caught
the attention of young Indians that played its part in raising its Market share from 10% to 17.4%.
LG stands third at 5.9% share. On the other hand, the Indian handset makers, whose combined
market share was just lurking between 3 to 4% in the previous financial year has grown up to14%. Micromax mobiles topped the chart (of Indian makers) with 4.1% share followed by Spice
(3.9%) and Karbonn mobiles (3%). Recent entrants such as Lava mobile, Lemon mobiles and
Max mobile too are hovering around that 1% market share. Its not rocket science that why these
Indian handset makers saw that instant success. Its all thanks to the falling telecom calling
prices and hence the need for Dual sim mobiles. These handset makers made huge money in very
little time and were sponsoring events like crazy, including the BCCI cricketing events, which
isnt a small boys thing. For some reasons, Big players such as Nokia were reluctant to produce
Dual Sim mobiles. Realizing this about to get worse situation, Nokia recently announced its
first round ofDual Sim phonesthat will soon be introduced in India. When it does, it is sure to
receive a warm response. Some call the Indian handsets as Made in China and sold under Indianbrands seeing their awful UIs and cheap plastics. Yet, they are cheap and offer Dual Sim
capability and hence people go crazy and buy them. Nokia, on the other hand is known for its
Quality and longevity (which seriously lacks in the other category handsets) and hence should
receive good, if not great response to its Dual sim mobiles. However, the Dual sim craze might
not last longer as consolidation is expected in the Indian market when maintaining 2-3 Sim cards
would prove to be heavy.
http://voicendata.ciol.com/http://www.sriraj.org/gadgets/samsung-corby-speed-price-review-india-cdma/http://www.sriraj.org/gadgets/samsung-corby-speed-price-review-india-cdma/http://www.sriraj.org/gadgets/nokia-c1-c2-dual-sim-phones-price/http://www.sriraj.org/gadgets/nokia-c1-c2-dual-sim-phones-price/http://voicendata.ciol.com/http://www.sriraj.org/gadgets/samsung-corby-speed-price-review-india-cdma/http://www.sriraj.org/gadgets/nokia-c1-c2-dual-sim-phones-price/ -
8/6/2019 Shiv Rural
10/26
Nokia's launch of mobile phones for rural India can boost mobile
government applications for grassroots
The rural phone in integration with the CSC centers to be launched by government of
India may provide a major boost to mobile government services in India especially to the
grassroots and unreached.
Nokia chose Delhi for Thursday's launch of seven mobile phones for emerging markets,
including two intended for shared use by families or entire villages. The launch of these GSM
(Global System for Mobile Communications) phones in India comes in the wake of attempts by
the Indian government and mobile services operators in the country to introduce low-cost mobile
telephony to India's rural masses. Like the traditional public call office, the shared mobile phone
offered through a local village entrepreneur is seen by many nongovernmental organizations
(NGOs) as the best way to increase mobile penetration in rural markets, where users may not be
able to afford a personal phone. In many villages, local entrepreneurs have already emerged to
offer this service.Nokia's 1200 and 1208 models offer call-time tracking and multiple phonebooks, the
company said. To help manage airtime costs, the call-time tracking feature allows consumers and
village phone entrepreneurs to preset a time or cost limit on individual calls, automatically
ending the call after the limit has been reached, it said. India had 166 million mobile subscribers
at the end of March, up 68 percent over a year earlier, according to the Telecom Regulatory
Authority of India (TRAI). Most of these subscribers are in urban areas. Large mobile service
providers have identified the rural market as the next big opportunity. The government is also
subsidizing roll-outs of mobile services in rural markets, and has proposed that operators share
infrastructure to reduce costs. A number of multinational mobile phone vendors, including
Nokia, have started manufacturing phones in India. Nokia also has other operations in the
country including a research and development center and a network operations center.
The Nokia 1200, with a monochrome screen, will be available this quarter with an
estimated retail price of about $48 before subsidies or taxes. The Nokia 1208, with a color VGA-
resolution screen, will be available in the third quarter of this year with an estimated retail price
of $65, Nokia said.Nokia also launched four other low-cost GSM phones, including the entry-
level Nokia 1650 and Nokia 2660, and the Nokia 2630 and 2760 with features such as a built-in
camera, an e-mail client, an FM radio and Bluetooth connectivity. The Nokia 1650 and 2660 will
be available this quarter, with the 1650 priced at about $75, and the 2660 at about $115. The
Nokia 2630 and Nokia 2760 will be available in the third quarter of this year. The estimatedprice for the Nokia 2630 will be around $115 and for the Nokia 2760 around $122.The company
also launched Nokia 2505, an entry-level phone based on the CDMA (code division multiple
access) standard for markets in Asia-Pacific, the Middle East, Africa, China and Latin America.
The phone will be available in select markets in this quarter. Nokia did not disclose the pricing of
this product. Its Nokia Life Tools (Jeevan Saadhan), an ambitious programme which bundles
the handset with a services, all aimed to hook the rural customers.
-
8/6/2019 Shiv Rural
11/26
This is a long term initiative which focuses on empowering rural India
The thrust on rural markets in India comes even as the mobile density is around 40% with
450 million users thus providing ample scope for full throttle growth. However, most of the
growth witnessed so far has taken place in urban areas, particularly major metros with tele-
density going through the roof. Rural in the next big opportunity. Everyone knows that. But the
question is how to tap it. All the operators are aggressive. Bundling helps any handset player to
create extra value to lure the entry level consumers. But how does one create brand leadership
for oneself in such a scenario without depending on others?
NLT says the approach goes back to the development level which kicked off when Nokia
launched the 1100 series keeping in mind the rigours of the hinterland. But lowering handset
prices or reducing charges is only half the attempt, he says. And Nokia knows that if it needs to
make money from rural markets, it has to play a role in augmenting the incomes of the target
audience. And for that one cant merely rely on a transactional relationship but one that createsrelevant value for them. The relevant value creation of NLT stands on four pillars or rather the
four Es empathy, entertainment, evidence and education. The services on offer at various
price points range from market prices, weather to music and entertainment to even simple
courses on English on the mobile phone. Rural community, its about stature and not just status.
At the end even economic progress is more a means to achieve stature than statuses in the
community. Therefore progress achieved through more knowledge is a definitive way acquires
social stature . Even as this will be a first for a handset manufacturer, the strategy of
empowerment isnt entirely new. The industry is watching with interest on how exactly it pans
out for Nokia. Competing with operators is an altogether different story. Unless the value adds
is something very unique, it will just be another fad which will fade away in sometime, he says,adding that mobile connectivity has ensured that farmers have access to information like mandi
prices. Further if one gets a plan with a close user group from operators, then why pay
extra. Nokia officials however counter that NLT becomes a retention platform by offering more
and more services in the time to come. The key is to create a base through constant engagement.
Once it is achieved, the services can be bundled on all handsets sold in rural market,
-
8/6/2019 Shiv Rural
12/26
ABOUT LOCAL CHINESE BRANDS:
Chinese handsets in India account to 15 % of India's Mobile Market and increasing. The Market
is valued at 75,000 Crores a year. Over 2 million mobile phones in India have lost connectivity
due to fake imei. Being a part of this telecom revolution & sell genuine IMEI china mobiles with
full replacement warranty & tech support. China Mobiles Stores HK Limited, company
established in India & China , and one of the leading genuine IMEI mobile phone importers for
brands such as Gfive , GILD, Sigmatel , Forme , Crucell, G-Tide, LC Mobiles and over 60
brands.We sell mobiles with complete replacement warranty & tech support. We are setting up a
genuine IMEI mobile phone store network in India, as the China Mobile sales is presently to
75,000 crores annually in South East Asia with majority in Indian market specially the sub-urban
and rural market.
-
8/6/2019 Shiv Rural
13/26
TABULATION OF DATA
Cost ofmobile
1 to 5 35
5 to 10 10
10 to 15
15 to 20
CompanyName
Nokia 15
Samsung 5
LG 15
Onida
Spice
Lawa
G Five
Others 10
Important Factors InPurchasing a Mobile Set
Cost 140
messaging 25
Voice Quality 115Battery
backup 145Media Player 55
Speaker 120
Style 40
Durability 135
Internet 55
Hindi 45
-
8/6/2019 Shiv Rural
14/26
F M Radio 90
More than One
Change yourSet
In one year 5
In two year 25
In three year
in five year 15Purchasedfrom
AuthorisedDealer 10
Vendor 35
after SalesService
Yes No
40 10
MobileService
Airtel 20
BSNL 5
Voda Phone
DOCOMO 5
TATA
Reliance 15
Idea 5Change MobileService
RefillVoucher
Rs 10 5
-
8/6/2019 Shiv Rural
15/26
Rs 20 10
Rs 30 15
Rs 50 20
Rs 100 10
Rs 500 5
GRAPHICAL REPRESENTATION:
As it is visible in the graph that the mean age of mobile user is 15 to 25 year.
-
8/6/2019 Shiv Rural
16/26
As it is visible in the graph that the most of the population has yearly income is Rs. 50,000/-
to 1, 00,000/- so they cannot use mobile of very high cost.
Around 90 % of the rural population surveyed of sample size 50 is using mobile phone
-
8/6/2019 Shiv Rural
17/26
As it is shown in the graph that the mean cost of mobile is majorly is 5 thousand appx.
As it is shown in the graph that the Nokia and L.G. has around equal market share
and others also has good share of other local brands.
-
8/6/2019 Shiv Rural
18/26
As it is shown in the graph that usually people change their set in two years.
As it is shown in the graph that very few people purchase mobile from authorized dealer
they purchase phone from local vender just because of easy installment.
-
8/6/2019 Shiv Rural
19/26
As it is shown in the graph that people are aware of after sale service but they very often
use the service.
As it is shown in the pie chart that Nokia and Samsung has maximum market share.
-
8/6/2019 Shiv Rural
20/26
As it is shown in the graph that people think about battery backup, Durability and speaker
phone and Voice quality before purchasing a mobile phone the mean cost of mobile is
majorly is 5 thousand apx.
As it is shown in the pie chart that Airtel leads the rural market and reliance comes
next to it in terms of market share in rural india.
-
8/6/2019 Shiv Rural
21/26
This pie chart depicts that the ideal recharge refill voucher used by rural consumer
ranges between Rs 30 to Rs 50.
MAJOR FINDINGS:
The mean age of mobile user is 15 to 25 year the people above 45 yrs. do not use mobilejust because low literacy.
The population has yearly income is Rs. 50,000/- to Rs 1, 00,000/- so they cannot usemobile of very high cost.
Around 90 % of the rural population surveyed of sample size 50 is using mobile phone
Nokia and L.G. have around equal market share and others also has good share of otherlocal brands.
In the rural usually people change their set in two years.
-
8/6/2019 Shiv Rural
22/26
Very few people purchase mobile from authorized dealer they purchase phone from localvender just because of easy installment and less paper work.
People are aware of after sale service but they do not use the service often.
While purchasing mobile phone rural people look for Durability and speaker phone andVoice quality before purchasing a mobile phone the mean cost of mobile is majorly is 5thousand apx.
In mobile network Airtel leads the rural market and reliance comes next to it in terms ofmarket share in rural India.
The ideal recharge refill voucher used by rural consumer ranges between Rs 30 to Rs 50.
SUGGESSIONS
I would like to suggest to the mobile companies that they should try to target young
customers because old persons are not so much user friendly.
Mobile companies should try to launch some phone who has some picture facility
instead of written language because old people are not educated.
As the income of rural people is so low so the coast of mobile should be ideally
between 1 to 5 thousand so that people of less income can afford phone.
The people are purchasing phone from local venders not from authorized dealerjust because of finance facility so companies should give finance facility to people so
that they can purchase phone.
The companies should give some feature like speaker phone, voice quality, battery
back up to attract rural people.
-
8/6/2019 Shiv Rural
23/26
LG and Nokia has equal market share in rural people but others also have very
good share in rural India because they give so many features with less price but
branded companies are not given so much competitive price so companies should
try to give products with competitive prices.
Rural people are much considering about the agriculture and companies should givesome call center who give help in agriculture business to rural people.
The companies should keep in mind the taste and preferences of rural people like
Hindi language.
CONCLUSION:
After doing this extensive Project Research in rural area -Amausi,Rahimabad,Gauri,Naveen Gauri(Sarojini Nagar) & Ali
nagar sunehra,kesri khera(Krishna Nagar) we found that theincome-level,literacy of people residing in rural area is low because of that they are not able to purchase the highcost(branded mobiles) and more switching towards the Chinesemobiles (local mobile-handsets).
-
8/6/2019 Shiv Rural
24/26
The preference of rural people with respect to mobilephones is mainly durability, lowcost, long battery-backup, loudspeaker phone, operating language Hindi should be present in
mobile phones.There is a large unorganized mobile handset market in therural area and their lies huge opportunity in front of the brandedcompanies to tap the Rural consumer according to his/her taste& preferences.
REFERENCE- Questionnaire
Taste and preferences of Rural Consumer in mobilesegment
Name:
..
Address
Phone no: Land line:
Age Group: 15-25 25-35 35-45 45 & above( ) ( ) ( ) ( )
-
8/6/2019 Shiv Rural
25/26
Question 1: Yearly Income More than 50,000More than 100,000More than 500,000More than 10,00,000
Question 2: Occupation:
Question 3: LandholdingQuestion 4: Currently using Mobile: Yes.
No..Question 5:If no than whyQuestion 6: Cost of mobile1 to 5 thousand5 to 10 thousand10 to 15 thousand15 to 20 thousandQuestion 7: If yes then of which company are you using the mobile:
Nokia., Samsung..,L. G., OnidaLAWA, Spice.,G FIVE., Others
Question 8: Which Factor is more important in purchasing a mobile phone?( Please ratebetween 1 to 5)
Cost., Messaging., Voice Quality,Battery Back upMedia player., Speaker., Style,
DurabilytyInternet.., Hindi, F M
Radio, More than one.Question 9: How often do you change your set?In one year.., In two years., In five year Question 10: From where have you purchased your set?
1) Authorized dealer 2) Local vendor
Question 11: Do you know about after sale service? If yes than ever you have use it?Ans:Question 12: Which mobile service you are using?Airtel, BSNL,Vodaphone.DOCOMO.., TATA.,Reliance..Question 13: How often you change your mobile network and why?Ans
-
8/6/2019 Shiv Rural
26/26
Question 14 :Why you have purchased a mobile?Ans..Question 15: What feature you want in a mobile set?Ans:
..Question 16: what is the ideal refill voucher for you?Ans: