Retail Sector Study on Mobile Phones
Content
[Year]
MOBILE SO
dilip singh
Hewlett-Packard
[Pick the date]
Retail Sector Study On Mobile Phones
As a part of the curriculum we were assigned a task to go for a market survey of the different
mobile brands to gain an idea on the prices and services offered by different retailers. The task was
provided so that we can have an idea on the marketing strategies adopted by these retailers and to
compare and understand their marketing objectives.
Smartphones are the buzz of today’s world where we need to cope up with the fast pace of life and
retailers are trying their best to meet up with people’s demands and also enhance their profitability.
To understand the marketing skills we set out for an exploration to the retail stores Sangeetha,
Mobile Stores and Airconnect and Univercell.
Task given – Identify 5 different products in the mobile phone
industry and make a comparative analysis in 3 different outlets.
5 products taken into consideration for the study were:1.
2.
3.
4.
5.
Apple I Phone 5 s
Samsung Galaxy S5
Sony Xperia Z2
Nokia Lumia 720
Micromax Canvas Turbo
The different outlets visited were:
Sangeetha mobiles
Mobile store
Univercell
Air connect
Comparative analysis of the prices that they offer
PRICES
Models/stores
Sangeetha
Mobile Store
Univercell
Air Connect
I Phone 5 s
41890
43000
Not available
43800
Samsung Galaxy 35000
S5
37000
36899
34900
Sony Xperia Z2
40000
39499
40000
44000
Nokia Lumia
15000
720
Micromax
17000
Canvas Turbo
Sangeetha Offers
17000
18000
17000
14658
15698
Not available
1) Happiness price index – 1000 Rs off on mobile phones above
20000 and Rs 500 below 20000
2) Sangeetha swift – Insurance provided to phone owners at a
nominal premium and delivery of new phone within 7 days of
complaint registration and 50% of the amount has to be paid due
to depreciation
3) Sangeetha Delight – There will be door step service that is
provided to the customer in case of any repairs for one year
comes with a premium of Rs 99 for a year
4) Sangeetha Secure – An extended warranty of 1 year will be
provided other than the manufacturer warranty but it also comes
at a price
5) Surprise Gift – Sangeetha is giving away their own in house
production phone i.e. wham mobile for free of cost to the
customer who purchases above Rs 30000. They are using it as a
marketing strategy to popularise their phone as well as sell
existing phones.
Offers at the Mobile Store:
1) 10% cash back for purchase through Axis bank and Citi bank credit
cards.
2) Repair service provided by the store
3) Gives a cash discount of Rs 1000 for phones above Rs 15000
4) Provides an extended warranty for 1 year apart from the
manufacturers warranty for phones above Rs 15000 at a premium
5) Has in house recharge services and also sells sim cards and mobile
connection’s
Offers at Univercell
1) Provision of EMI option for people without credit cards by tying
up with Bajaj finance.
2) Provision of mobile repair services
3) Insurance of 1 year provided at a premium
COSTPLUS MARGIN could be the cost model followed here.
Find out how sangeetha can give phones at low prices
Pricing factors apart from overheads
1. What factors account for price variation of mobile products in
the stores that were visited?
2. What was the biggest surprise you found in the stores?
3. What are the specific pricing strategies or policies in the
mobile stores that were visited?
4. Could you identify any specific marketing strategies or
policies in the mobile stores that were visited?
Sangeetha Offers
6) Happiness price index – 1000 Rs off on mobile phones above
20000 and Rs 500 below 20000
7) Sangeetha swift – Insurance provided to phone owners at a
nominal premium and delivery of new phone within 7 days of
complaint registration and 50% of the amount has to be paid due
to depreciation
8) Sangeetha Delight – There will be door step service that is
provided to the customer in case of any repairs for one year
comes with a premium of Rs 99 for a year
9) Sangeetha Secure – An extended warranty of 1 year will be
provided other than the manufacturer warranty but it also comes
at a price
10)
Surprise Gift – Sangeetha is giving away their own in
house production phone i.e. wham mobile for free of cost to the
customer who purchases above Rs 30000. They are using it as a
marketing strategy to popularise their phone as well as sell
existing phones.
Offers at the Mobile Store:
1) 10% cash back for purchase through Axis bank and Citi bank credit
cards.
2) Repair service provided by the store
3) Gives a cash discount of Rs 1000 for phones above Rs 15000
4) Provides an extended warranty for 1 year apart from the
manufacturers warranty for phones above Rs 15000 at a premium
5) Has in house recharge services and also sells sim cards and mobile
connections.
Offers at Univercell
4) Loyalty program – Customer credit points
5) Provision of EMI option for people without credit cards by tying
up with Bajaj finance.
6) Provision of mobile repair services
7) Insurance of 1 year provided at a premium
5. Did the location play a significant role in the prices of the
products?
6. What othere services are the mobile stores offering to
customers? Do these services account for any price
difference in price comparison?
7. Did the location play a significant role in the prices of the
products?
The location doesn’t play a role in this case because they
have the same prices across all the stores of same retailer
(Eg. Sangeetha) and as they have a chain of stores across all
areas they are able to distribute the cost and come up with
low prices even in malls. If they did not have such chain of
stores they would have incurred higher cost and then the
location would have an impact on the price of the products.
8. Is it worth the time and effort for customers to visit several
stores to check prices of mobile phones and accessories?
In Today’s world, Internet plays a big role in product
discovery and the subsequent research process, and is
gaining on brick and mortar stores when it comes to
closing the sale.
With the boom of ecommerce in India, its a common
practice to verify the prices in online retail stores of
specific brands or other popular ecommerce sites like
Flipkart, Snapdeal etc and then proceed to their trusted
shops to acquire the product if there are not much price
discrepancies.
With the diverse range of smartphones available in the
mobile market, it is beneficial even for the customers
who are not accustomed to do online product research,
to conduct some prior price research before buying the
product. This can help in identifying the best discounts
and other services offered by the specific stores and
can choose a plan that would maximize the benefit for
the customer.
MOBILE SO
dilip singh
Hewlett-Packard
[Pick the date]
Retail Sector Study On Mobile Phones
As a part of the curriculum we were assigned a task to go for a market survey of the different
mobile brands to gain an idea on the prices and services offered by different retailers. The task was
provided so that we can have an idea on the marketing strategies adopted by these retailers and to
compare and understand their marketing objectives.
Smartphones are the buzz of today’s world where we need to cope up with the fast pace of life and
retailers are trying their best to meet up with people’s demands and also enhance their profitability.
To understand the marketing skills we set out for an exploration to the retail stores Sangeetha,
Mobile Stores and Airconnect and Univercell.
Task given – Identify 5 different products in the mobile phone
industry and make a comparative analysis in 3 different outlets.
5 products taken into consideration for the study were:1.
2.
3.
4.
5.
Apple I Phone 5 s
Samsung Galaxy S5
Sony Xperia Z2
Nokia Lumia 720
Micromax Canvas Turbo
The different outlets visited were:
Sangeetha mobiles
Mobile store
Univercell
Air connect
Comparative analysis of the prices that they offer
PRICES
Models/stores
Sangeetha
Mobile Store
Univercell
Air Connect
I Phone 5 s
41890
43000
Not available
43800
Samsung Galaxy 35000
S5
37000
36899
34900
Sony Xperia Z2
40000
39499
40000
44000
Nokia Lumia
15000
720
Micromax
17000
Canvas Turbo
Sangeetha Offers
17000
18000
17000
14658
15698
Not available
1) Happiness price index – 1000 Rs off on mobile phones above
20000 and Rs 500 below 20000
2) Sangeetha swift – Insurance provided to phone owners at a
nominal premium and delivery of new phone within 7 days of
complaint registration and 50% of the amount has to be paid due
to depreciation
3) Sangeetha Delight – There will be door step service that is
provided to the customer in case of any repairs for one year
comes with a premium of Rs 99 for a year
4) Sangeetha Secure – An extended warranty of 1 year will be
provided other than the manufacturer warranty but it also comes
at a price
5) Surprise Gift – Sangeetha is giving away their own in house
production phone i.e. wham mobile for free of cost to the
customer who purchases above Rs 30000. They are using it as a
marketing strategy to popularise their phone as well as sell
existing phones.
Offers at the Mobile Store:
1) 10% cash back for purchase through Axis bank and Citi bank credit
cards.
2) Repair service provided by the store
3) Gives a cash discount of Rs 1000 for phones above Rs 15000
4) Provides an extended warranty for 1 year apart from the
manufacturers warranty for phones above Rs 15000 at a premium
5) Has in house recharge services and also sells sim cards and mobile
connection’s
Offers at Univercell
1) Provision of EMI option for people without credit cards by tying
up with Bajaj finance.
2) Provision of mobile repair services
3) Insurance of 1 year provided at a premium
COSTPLUS MARGIN could be the cost model followed here.
Find out how sangeetha can give phones at low prices
Pricing factors apart from overheads
1. What factors account for price variation of mobile products in
the stores that were visited?
2. What was the biggest surprise you found in the stores?
3. What are the specific pricing strategies or policies in the
mobile stores that were visited?
4. Could you identify any specific marketing strategies or
policies in the mobile stores that were visited?
Sangeetha Offers
6) Happiness price index – 1000 Rs off on mobile phones above
20000 and Rs 500 below 20000
7) Sangeetha swift – Insurance provided to phone owners at a
nominal premium and delivery of new phone within 7 days of
complaint registration and 50% of the amount has to be paid due
to depreciation
8) Sangeetha Delight – There will be door step service that is
provided to the customer in case of any repairs for one year
comes with a premium of Rs 99 for a year
9) Sangeetha Secure – An extended warranty of 1 year will be
provided other than the manufacturer warranty but it also comes
at a price
10)
Surprise Gift – Sangeetha is giving away their own in
house production phone i.e. wham mobile for free of cost to the
customer who purchases above Rs 30000. They are using it as a
marketing strategy to popularise their phone as well as sell
existing phones.
Offers at the Mobile Store:
1) 10% cash back for purchase through Axis bank and Citi bank credit
cards.
2) Repair service provided by the store
3) Gives a cash discount of Rs 1000 for phones above Rs 15000
4) Provides an extended warranty for 1 year apart from the
manufacturers warranty for phones above Rs 15000 at a premium
5) Has in house recharge services and also sells sim cards and mobile
connections.
Offers at Univercell
4) Loyalty program – Customer credit points
5) Provision of EMI option for people without credit cards by tying
up with Bajaj finance.
6) Provision of mobile repair services
7) Insurance of 1 year provided at a premium
5. Did the location play a significant role in the prices of the
products?
6. What othere services are the mobile stores offering to
customers? Do these services account for any price
difference in price comparison?
7. Did the location play a significant role in the prices of the
products?
The location doesn’t play a role in this case because they
have the same prices across all the stores of same retailer
(Eg. Sangeetha) and as they have a chain of stores across all
areas they are able to distribute the cost and come up with
low prices even in malls. If they did not have such chain of
stores they would have incurred higher cost and then the
location would have an impact on the price of the products.
8. Is it worth the time and effort for customers to visit several
stores to check prices of mobile phones and accessories?
In Today’s world, Internet plays a big role in product
discovery and the subsequent research process, and is
gaining on brick and mortar stores when it comes to
closing the sale.
With the boom of ecommerce in India, its a common
practice to verify the prices in online retail stores of
specific brands or other popular ecommerce sites like
Flipkart, Snapdeal etc and then proceed to their trusted
shops to acquire the product if there are not much price
discrepancies.
With the diverse range of smartphones available in the
mobile market, it is beneficial even for the customers
who are not accustomed to do online product research,
to conduct some prior price research before buying the
product. This can help in identifying the best discounts
and other services offered by the specific stores and
can choose a plan that would maximize the benefit for
the customer.
