Chapter 1

INTRODUCTION
1.1ABOUT THE TOPIC
Perception plays an important role in every organizational growth. if perception of the customers
towards a company or brand is favorable, only then they would go for it . perception is defined as the
process by which an individual selects organizes and interprets stimuli into a meaningful and coherent
picture of the world, or it can be described as how we see the world around us people usually see
what they expect to see, is usually based on familiarity, previous experience, or precondition set
(expectations).in a marketing context, people tend to perceive products and products attributes.
According to their own expectations.
The customer perception is influenced by various factors, which may result in change in service quality
as well. Various such factors could be like: Age, gender, Occupation, Global competition &
Technological changes. The perception of younger generation of service quality could be different from
the older one. Similarly a working corporate professional perception could be different from a
businessperson or from a housemaid. That is why the perception should be taken into consideration by
service providers to meet the customer requirements.
This study attempts to finds customer perception in various dimension. The focus is on understanding
the quality/performance, product attributes, image and price of micromax mobile handset.

1.2

Industry profile
The mobile phone market in India is worth 130 million handsets annually. Market opportunities

in the Indian mobile handset market is expected to grow from a total of 151 million handsets for the
twelve month period ended December 31, 2009 to 402 million handsets for the twelve month period
ended December 31, 2014. The growth in the Indian mobile handset market is likely to be driven by the
replacement handset market rather than new user additions. Within the replacement handset market, the
medium ASP device market is likely to grow the fastest. Replacement cycle: The growth in the Indian
mobile handset market is likely to be driven by the replacement handset market rather than new user
additions. The replacement market is expected to grow from 118 million handsets for the twelve month
period ended December 31, 2010, constituting 62.77% of overall Indian mobile handset market, to 359
million handsets for the twelve month period ended December 31, 2014, constituting 89.30% of overall
Indian mobile handset market.
Some major companies:
NOKIA
SAMSAMSUNG
APPLE
SONY ERICSSION
KARBON
SPICE
LAVA
NOKIA Nokia is the leader in the mobile phone industry in India (38% market share). It is
dominating the Indian market from years. Recently it is facing problems to retain its growth and sales.
But the pioneer is working hard to get out of this. For the same reason Nokia is going to use operating
system of software biggie Microsoft. So it is expected that Nokia will try to regain its lost market share.
SAMSUNG Samsung has emerged as a very healthy and prominent competitor in the market.
Samsung is backed with the high quality and professional team in the R&D area. Innovative products
specially smart phones and Galaxy series from Samsung are ruling in the market. So it is expected that
with the increasing demand of mobile phones Samsung will try to retain and increase its market share.
APPLE Apple is one of the most major competitors in this industry. Slick, stylish and innovative
phones of Apple are driving crazy to its users. Apple is aggressively entering Indian market with its

amazing iPhone series. Other domestic players Other players like Karbon, Spice, Lava etc have more
or less the same market strategy. Chinese manufacturers Some of the Chinese manufacturers have
already entered the Indian market. These manufacturers have priced their mobiles very low. So these
manufacturers are expected to grow as with the demand.
While the big companies like Nokia, Samsung, L.G. Motorola and Sony Ericsson make up for 70%
share, the market has of late seen a slew of domestic firms such as Micromax, Karbon and Intex
making large in roads and new established brands like Videocon and Onida entering the field. Among
the domestic firms, one of the most promising brand is Micromax. Micromax, started operations in
1991 as an embedded software design firm, but was incorporated as a company in 1998, when it
branched out as a distributor of computer peripherals such as printers, monitors, scanners from
manufacturers such as L.G., Sony Inc., Dell Corp. Today, Micromax is one of the leading Indian
Telecom Companies with 23 domestic offices across the country and international offices in Hong
Kong, USA, Dubai and now in Nepal.

1.3 Company Profile:

Micromax Informatics Limited (company profile)

Micromax was incorporated as Micromax Informatics Ltd. on 29 March 2000. They started rebranding
Chinese imported mobile phones in 2008with a focus on low pricing, in order to compete with
international brands. Because of the issues of power in Dewas, Rahul Sharma saw a PCO being
powered by a truck battery and decided to launch a feature phone with longer battery life. Micromax
launched its first phone with a month long battery back-up known as X1i.In 2014, Micromax
surpassed Samsung to become the mobile phone manufacturer shipping the most number of phones in a
single quarter in India. On 24 January 2014, Micromax became the first Indian mobile company to start
sales in Russia. The launched their first phone in rural areas with unique features of 30days battery
life(micromax x1i).It is present in 560 districts through 12,5000 retail outlets in India. It spreads across
SAARC market including Bangladesh, Srilanka, Nepal on january 2014 introduced in Russia.
Micromax is the highest handset seller brand in second quarter of 2014 having market share around
16.6% and Samsung 14.4%.Samsung maintained its leadership with more then 4.4 millions units
shipped and micromax 3.1 millions. Micromax is the second largest company and it can surpass
Samsung only if the customer holds high perception of its mobile handsets. Micromax Informatics
Limited is one of the leading consumer electronics company in India and the 10th largest mobile phone
player in the world. With sales presence across India and global presence in Russia and SAARC
markets, the Indian brand is reaching out to the global frontier with innovative products that challenge
the status quo that Innovation comes with a price.
The history of Micromax (2013-14 revenue: Rs 1,978 crore or Rs 19.78 billion), which ventured into
the mobile phone market in 2008, is one of the most fascinating success stories in the Indian consumer
electronics industry. In barely years, the company has come to occupy the third position (by volume)
in the mobile handset market in India and is at No. 12 globally. It leads the Indian tablet market with a
share of 18.4 per cent, ahead of veterans Samsung and Apple. Over the past decade, Micromax has
pioneered the democratization of technology in India by offering affordable innovations through their
product offerings and removing barriers for large scale adoption of advanced technologies. Micromax is
currently the 2nd largest smart phone company in India. Micromax is a brand which is close to the heart
of the youth and celebrates the vibrancies of life and empowerment.

Products:
Micromax products have become an extension of the Indian youths lifestyle and dynamism. The
company has many firsts to its credit when it comes to the mobile handset market including the 30-day
battery backup, Dual SIM Dual Standby phones, QWERTY keypads, universal remote control mobile
phones, first quad-core budget smart phone etc. The brands product portfolio embraces more than 60
models today, ranging from feature rich, dual SIM phones, 3G Android smart phones, tablets, LED
televisions and data cards. Micromax sells around 2.3 million Mobility Devices every month, with a
presence in more than 560 districts through 1, 25,000 retail outlets in India.

SWOT Analysis:
Strengths:
Innovative products and features: Marathon battery mobile phones with a 30-day battery life,
phone which is programmable as a universal remote control, gravity phones are some of the
features which have increased the popularity of the product.
Low cost of production : With its plants located in China, Micromax bears a low cost in
production due to availability of labour at cheaper rates.
Effective promotion campaigns: Micromax has been promoting its products through famous
celebrities and has also had tie ups with MTV.
Weaknesses:
Weak brand image in urban areas: Micromax has still not been able to establish itself well in
the urban market as its main concentration had been on the rural population.
Perception of low-quality Chinese brand: Micromax has a manufacturing unit set up in china
which has strengthened this perception among people.
Opportunities:
Increase penetration in urban market: Since Micromax has not yet entered this market; it has
a very huge opportunity to establish itself in this market.

 Entry into international markets- Micromax has the potential to make its presence felt on
global scale eventually as it establishes itself in the domestic market.
Threats:
Increasing competition from local and international players- With well established players
like Nokia, Samsung, etc Micromax faces a tough competition from these players.

1.3. Literature Review.

Schiffman and Kanuk (2003) defined Perception as the process by which an individual selects,
organizes and interprets stimuli into a meaningful and coherent picture of world. it can described how
we see the world around us. They emphasized that Individual act and react on the basis of their
perceptions not on the basis of objective reality. For each individual reality is totally personal

phenomenon based on that persons needs, wants, value and personal experiences. Individual make
decision based on what they perceive to be reality. Two individual may be exposed to the same stimuli
under the same conditions but how each person recognize, selects ,organize and interprets these stimuli
under the same apparent condition but how each person recognize, selects , organize and interprets
these stimuli is highly individual process based on each persons need, value and expectations.
Parasuraman, Zeithaml And Berry (1994)have tried to integrate the concepts of product quality and
service quality into an overall transaction satisfaction index, on the basis that all product purchases
contain some element of service beyond the core tangible offering. Their research model suggests that
the consumers overall satisfaction with the transaction is based on the evaluation of three components:
service quality, product and price

1.4 Scope of the Study

This study help Micromax mobile to work on the weakness of it and areas or improvements, so

that they can get the rid of market which will help to be of first position.
The study covers students of post graduation (21-25yrs)
The Geographical Area covered was Greater Noida region.
The study of the customer perception is extensive and covers respondents across all categories.
This project helped me in knowing the market practically.

The study also covers the areas which are important for th improving their performance.

1.5 Objective of the study

To find out the proportion of customer holding favorable and unfavorable perception of
micromax mobile handset.

To find out perception of product attributes of micromax mobile handset.

To find out perception of customer services of micromax mobile handset.
To find out perceived risk associated with micromax mobile handset.
To find out perception of price of micromax mobile handset.

1.6. RESEARCH METODOLOGY

Research always starts with a question or a problem. Its purpose is to question through the application
of the scientific method. It is a systematic and intensive study directed towards a more complete
knowledge of the subject studied.
Marketing research (MR) is the function which links the consumer, customer and public to the marketer
through information- information used to identify and define marketing opportunities and problems
generate, refine, and evaluate marketing actions, monitor marketing actions, monitor marketing
performance and improve understanding of market as a process.
Marketing research specifies the information required to address these issues, designs, and the method
for collecting information, manage and implemented the data collection process, analyses the results
and communicate the findings and their implication
Thus, three key ideas regarding marketing research are:Marketing research is concerned with studying any of the manifold problems in marketing.
Its purpose is to aid decision-making in the marketing field. Systematic gathering and analysis of
information is its route in achieving Its purpose.
Sample design: Sample size: 40
Sample unit: Students of post graduate students of Greater Noida.
DATA COLLECTION
Primary data:
It is original data, first hand and for the specific purpose of the research project. For this project, I have
used the following common research instrument:Primary Data Collection:
Primary data is generated by the students or the researcher for the preparation of the project and used
by the student immediately for collecting data .
1) Observation

10

2) Survey
3) Personal Interview
4) Questionnaire
Questionnaire:
Questionnaire development is the critical part of primary data collection job. For this I have prepared a
questionnaire in such a way that it is able to collect all relevant information regarding the project.
In this questionnaire, I have used mostly close-ended questions that are easier to be answered by
respondents (consumers) and also easier for interpretation and tabulation & one open-ended question to
take the opinion of the respondents in their own words. The questions were asked to the consumers
covering perception towards their purchase, price of the product, purpose for using the product,
characteristic of the product, brand image, effectiveness of the advertisements, sales promotional
activities, overall opinion about the product, etc.
For collecting the answers from the above questionnaire, I have used the following common method:Interview:
It is the most common method for contacting consumers & collecting primary data. For this project I
have used following type of interview:Personal interview:
It is the most extensively used method. It enables better control of the sample and ensures answers from
the respondents. It also provides for a tactful approach to the respondent since it is based on a personto-person talk. But this method is generally more expensive and time consuming. For this project each
interview was taking 15 to 20 minutes to complete
Secondary data:
Secondary data means data that are already available i.e. they refer to the data which have already have
been collected and analyzed by someone else.
Both primary and secondary data has been collected for this study . Primary data has been collected
through questionnaire. Secondary data has been data has been collected through journals, company
websites, books, reports etc.

11

1.7 Limitations

Financial limitation

The study is limited to Greater Noida region

Because of time constraint sample size was the scope of this project is limited to areas.

Some of the respondents did not respond whole-heartedly due to lack of time.

The questionnaire was not taken seriously by many surveyed respondents due to which they
filled in improper responses or might have just filled the questionnaire without properly
analyzing the questions or purpose it is meant for.

It is difficult to know whether the sample is truly representative of the population or not.

Chapter -2

12

DATA ANALYSIS AND INTERPRETATION

2.1 Demographic profile of respondents
Age
The age of respondents was in the range of 21-25 yrs.
Gender
Table 2.1: Gender
Gender
Male
Female

%of respondents
62.5
37.5

25
15
Fig.2.1.

Gender of respondents
70
60
50
40

gender of respondents
62.5

30

37.5

20
10
0
Male

Female

2.2 Users of mobile phone handset

Types of phone
Conventional phone
Smart phone

Table:-2.2 Users of mobile phone handset

No of users
%users
8
20
32
80

Types of mobile phone handset used:

13

%users
80
70
60

%users

50
40
30
20
10
0
conventional phone

smart phone

Interpretation:
Only 20% of respondents were having conventional phone and 80% of them were having smart phone.
2.3: Duration of Usage
Table -2.3:Duration of Usage
Duration of Usage
%of respondents
>3 Years
6
15
3 Years
8
20
2Years
10
25
1Years
16
40
Fig.2.3.

14

Duration of Usages
40
40
35

25

30
25
20

20

Duration of Usages

15

15
10
5
0
>3 Yrs

3 Yrs

2 Yrs

1 Yrs

Interpretation:
Most of the respondents(40%) were using micromax mobile set for the last one year. Only 15% were
using their mobile for more than three years.
2.4 Customer Perception Of Micromax Mobile Set
2.4.1 Perception of image
Table-2.4 : Perception of image
Perception of image
Neutral
4
10
Agree
26
65
Strongly Agree
10
25

%of respondents

Fig.2.4

15

perception of image
65
70
60
50

perception of image

40

25

30
10

20
10
0
Agree

strongly Agree

Neutral

Interpretation:
65% of the respondents agreed and 25% strongly agreed that micromax mobile handset has a good
image among mobile users. None of the respondents found to be held negative image of micromax
mobile set. It means that higher proportion of respondents held favorable perception of image.
2.4.2 perception of micromax mobile set in comparison with other company mobile set
Table-2.5perception of comparative image of micromax
Not inferior
%of respondents
Strongly Disagree
4
5
Disagree
5
12.5
neutral
12
30
Agree
9
22.5
Strongly Agree
10
25
Fig.2.5.

16

comperative analysis
30

30
25

22.5

25

20
12.5

15
10

not inferior

5
0

Interpretation:
25% of the respondents strongly agreed and 23% of them agreed that micromax mobile handset was not
inferior in comparison to other reputed companys mobile sets. But 18% of the respondents perceived
that micromax mobile handset was inferior in comparison to other reputed companys mobile sets . it
means less than half of the respondents perceived that micromax mobile set was inferior to other
reputated company mobile set.
2.4.3 : perception of features
Appealing Feature
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree

Table-2.6: perception of Feature

No. of respondents
0
0
0
0
12
30
20
50
8
20

%of respondents

Fig.2.6.

17

appe aling fe ature

50

50
45
40
35
30
25
20
15
10
5
0

30
20

appealing feature

Interpretation:
50% respondents agreed that micromax mobile set has appealing features and a 20% respondents
perceived it. 30% of the respondents perceived neutral about features of micromax mobile set. it means
high proportion(70%) of respondents perceived the features of micromax mobile set to be appealing.
2.4.4 perception of quality/performance
Table-2.7: Perception about quality
Perception about quality
Strongly Disagree
Disagree
neutral
Agree
Strongly Agree

%of respondents
4
6
4
12
14

10
15
10
30
35
Fig-2.7

18

perception about quality

35

35

30

30
25
20
15
10

10

15
10

perception about quality

5
0

Interpretation:
35% of the respondents strongly and 30% are agreed that micromax mobile is providing good quality .it
means that higher proportion (65%) of respondents perceived the performance of micromax mobile set
meeting their expectation .
2.4.5 perception of recognition due to owing micromax mobile set
Table-2.8:Perception about Social recognition
Perception about Social Risk
%of respondents
Strongly Disagree
0
0
Disagree
2
5
neutral
14
35
Agree
18
45
Strongly Agree
6
15
Fig.2.8.

19

pe rce ption about risk

45

45
40
35
30
25
20
15
10
5
0

35

15

perception about risk

5
0

Interpretation:
45% and 15% respondents agreed that micromax mobile handset provides social recognition and only
few respondents were having risk. It means that higher proportion(60%) of respondents perceived that
micromax mobile set gave recognition to a person in the society.
2.4.6 perception of service
Perception about after sale
service
Strongly Disagree
Disagree
neutral
Agree
Strongly Agree

Table-2.9:Perception about after sale service

No of respondents
%of respondents
4
8
14
14
0

10
20
35
35
0
Fig.2.9.

20

perception about after sale service

35

35

35

30
25

20

20
15

10

perception about after sale

service

10
5
0
0

Interpretation:
35% of the respondents agreed that they got after sale service but most of the respondents did not get
after sale service. it means just over 1/3 rd (35%) of the respondents perceived after sale service of
micromax to be good.
2.4.7 :Perception of price
Strongly disagree
Disagree
Neutral
Agree
Strongly agree

2.10: Perception of price

No of respondent
3
5
20
12

% of respondent
7.5
12.5
50
30

Fig.2.10.

21

attractive price
50
45
40
35
30
25
20
15
10
5
0

attractive price

Interpretation:50% of the respondents agreed , 30% strongly agreed ,12.5% of the them were neutral and 7.5%
of them disagreed that price of micromax mobile set was attractive. It means that a high
proportion of respondents (80%) perceived that price of micromax mobile set was attractive.
2.5 Overall Satisfaction Level
Table-10 Overall Satisfaction Level

Respondent Satisfaction Level

Satisfied
highly satisfied
dissatisfied
highly dissatisfied

Number of
Respondents
14
16
6
4
Fig.10.

% of respondents
35
40
15
10

22

respondents
40

35

40

30
respondents

20
10

15

10

satisfied
highly satisfied
Dissatisfied

Highly Dissatisfied

Interpretation:
35% of respondents satisfied and 40% of respondents are highly satisfied about micromax overall
performance and 15% and10% are dissatisfied and highly dissatisfied. it means that 3/4th were
satisfied with their micromax mobile set.

Chapter-3
FINDINGS.
The facts that we have found from the research on the consumer perception about micromax mobile are
as follows:

It is found that a very high proportion (80%) of respondents held favorable perception of image.
None of the respondents was found to be held negative image of micromax mobile set.

23

It is found that less than half of (48%) the respondents perceived that micromax mobile set was
not inferior to other reputated company mobile set.

It is found that high proportion (70%) of respondents perceived the features of micromax
mobile set to be appealing.

It is found that higher proportion (65%) of respondents perceived the performance of micromax
mobile set meeting their expectation. However 25% of respondents did not perceive the
performance of micromax mobile not match with their exactation.
It means that higher proportion (60%) of respondents perceived that micromax mobile set gave
recognition to a person in the society.
It is found that just over 1/3 rd (35%) of the respondents perceived after sale service of
micromax to be good
It means that a high proportion of respondents (80%) perceived that price of micromax mobile
set was attractive
It is found that 3/4th were satisfied with their micromax mobile set.

Chapter-4
SUGGESTION
The few of the suggestions which we could give to the company based on the research to
improve its sale and market share are as follows:

The company should work on celebrity endorsements .Ex: they brought in Hugh
Jackman to promote the brand instead they should have brought in Indian stars with
whom the customer could relate.

The company should work on improving the quality of the mobile phones..

The company should work on improving the after sales services by opening up more
service centers at accessible places and improve the promptness of services.

24

Chapter-5
CONCLUSION.
With the advent of Technology world around us, its really hard to penetrate the market for any
brand especially when companies like Apple and Samsung have flooded the entire market with their
innovative products. Amidst this An Indian Company Micromax has come out with some radiance and
seem to be a mass scale product for mid income group, enhancing the brand and its value.
Apple, Samsung are likely to give away their products charging 50,000 and micromax would
give away the same features in say around 25,000. Its just the cost of brand that other companies charge
for their product which is not charged by micromax and compromised by the customers when they buy
MICROMAX.
People have become prone to change and it has almost become a fashion keeping cell phones
with latest sleek slim body and newer version of operating system. Its because of this reason that people
do take up MICOMAX and use it for sometime and then switch over again. The survey conveys the
fact as the number of users using the phones for more than 3 years is much less than people using it for
1 year or so.
Its sales in terms of volume is more in comparison to the other companies but its sales in value is
not very much at par with the other companies. It made its mark among big shot companies like apple
and Samsung
But there are few faults in the marketing, distribution and other fields which the company
needs to deal with to gain a stronger market position and become at par with the companies like
Samsung and apple.

25

Bibliography
1.

Kothari, R. C. Research Methodology(1990)Revised edition. New Age International

Limited publishers.
2. Kotler. P, (2004) Marketing Management. pearson Education.
3. Parasuraman, A., Zeithaml, V.A., and Berry, L. (1994). Reassement of Expectations as a
comparison Standard in Measuring service Quality for further Research. Journal of
Marketing,58, January 1994.
4. Schiffman, L.G. and Kanuk, L.L. (2003) Consumer Behavavior PHI.
WEBSITES:

www.google.com
www.wikipedia.com
www.micromax.com
www.slideshare.com
www.micromaxindia.com

26

QUESTIONNAIRE
Name

Age

: .Yrs

Gender

a) Male

Occupation : (a) Salaried

Email

b) Female
(b) Business man

(c) Student

(d) Others

-----------------------------------------xxxxxxxxxxxxx---------------------------------------------------1. Which type of Micromax mobile handset do you have?

(a) Conventional Phone

(b) Smart phone

2. I have been using Micromax mobile handset for:

(a) 1 yr

(b) 2 yrs

(c) 3 yrs

(d) > 3 yrs

3. Indicate your response to the following statements in 1 to 5 scale as mentioned below.

(1-

Strongly disagree, 2-Disagree, 3-Neutral, 4-Agree, 5-Strongly agree)

SD

SA

3.1. Micromax mobile set has a good image among

mobile users.

27

3.2. Micromax mobile is not inferior to any other reputed

companys mobile set.
3.3. Micromax mobile set has appealing features.
3.4. The quality/performance of Micromax mobile set
matches my expectation.
3.5. Owning Micromax gives recognition to a person.
3.6. Customer service related to the Micromax mobile is
good
3.7 The price of micromax mobile handset is attractive

4. what is your Overall level of satisfaction with your mobile set?

Highly
dissatisfied

Dissatisfied

Neutral

Satisfied

Highly
satisfied

28