Executive Summary

Project name: Marketing Mobile Handsets to poor people

In the context of the rapid growth of mobile phone penetration in developing
countries, mobile telephony is currently considered to be particularly
important for development. Yet, until recently, very little systematic evidence
was available that shed light on the developmental impacts of mobile
telecommunication. The objective of this paper is to evaluate the case of
marketing mobile hand set for skilled /unskilled workers, petty shopkeepers,
petty Traders etc.
The situation has changed over the past few years with the entry of more
global brands and the emergence of home-grown manufacturers in the
handset market. Wider availability of more affordable handsets, including
smartphones, and significantly lower call rates has catalysed growth in the
market, most notably in rural areas. Competition within the crowded market
is intense with more than 50 device manufacturers now selling their
products. Most of these companies focus on low cost feature phones.
The projects will be analysed by theme in order to provide a thematic
overview as well as a comparative analysis of the development role of mobile
phones in lower middle class group. In exploring the evidence from
completed projects as well as the foci of new projects, the paper summarizes
and critically assesses the key findings and suggests possible avenues for
future research.

Table of Content

1. Introduction
2. Methodology..
3. Finding..................................
4. Conclusion.
5. Appendix..

Introduction

India's handset market, one of the largest in the world, continues to grow
strongly every year. Back in the early 2000s, mobile phones were typically
only found in key urban centres and primary cities due to the low number of
models in the market, high handset costs, expensive tariffs and limited
network coverage.
The situation has changed over the past few years with the entry of more
global brands and the emergence of home-grown manufacturers in the
handset market. Wider availability of more affordable handsets, including
smartphones, and significantly lower call rates has catalysed growth in the
market, most notably in rural areas.
Competition within the crowded market is intense with more than 50 device
manufacturers now selling their products. Most of these companies focus on
low cost feature phones. While feature phones have dominated the market
for some time, their position is being eroded by the emergence of better
value smartphones, a trend which is seeing a greater number of
manufacturers focus on producing more sophisticated devices.
In 2013, only 38% of the population in the lower income group owned a
smartphone. This number has seen a strong growth and today 60% of this
population owns a smartphone.
Consumers in smaller cities and towns are rapidly adopting smartphones and
accessing mobile internet.This is because today India is seeing a flux of low
cost smartphones that are available for as low as Rs. 1900. This means that
even those within the lower income groups are able to get past the entry
barrier of device cost and access mobile internet.
Smartphones are bridging this gap, connecting the population in urban and
rural areas, bringing them affordable access to entertainment and other
recreational activities. Also, for the population that migrates from these
areas to larger cities, smartphones are helping them stay connected both at
work and with their loved ones back at home.

Objectives

Launch of mobile hand set for skilled /unskilled workers, petty

shopkeepers, petty Traders etc.

Feasibility study: Viability for entering this segment.

Role or significance of a mobile in a consumers life.

Major competitors in this segment.

Methodology
Among all the attribute which motivate the consumer of these segment
we have found out two compelling variable i.e

Affordability
Flexibility.

(a)

Affordability (Demand-Side):

The many pricing models offer affordability and choice, even for
very low-income customers (cheap handsets, micro prepayments,
top-up cards).
Innovative ways of mobile phone access, which allow sharing of
phones through SIM
cards and payments for air time through micro-prepayment,
promote even more rapid adoption by the poor.
Affordability (Supply-Side):
Establishing mobile masts is a relatively inexpensive way of serving
large & remote rural areas, compared to last mile cable for fixed line
telephony.

(b) Flexibility: It is not pricing models that are flexible: usages are
also. Mobiles can be used for text and voice and are two-way
communications (i.e., more flexible than radio/TV).

Primary Research:
1) Survey: A sample size of 30 was recorded and studied to gather
information about the mentality of semi-skilled and un-skilled laborers
towards mobile phone and its usage.

2) In Depth Interviews: Open-ended interviews of some of the subjects

were conducted to gather deep insights and understand the features, which
attract them the most in a mobile phone.
Secondary data:
Secondary data is collected from various Internet websites, newspapers and
other electronic sources on different aspects of mobile phone utilization
among semi-skilled and un-skilled laborers.
Quantitative Interview schedule

Interview subjects: skilled, unskilled workers, petty shopkeepers and

petty traders.

Interview Location: Public areas of Sector 21, 22, 23 and residential

apartments near golf course road.

FINDING

a)Features

Row Labels

Count of features

Calling

Camera

Radio

WhatsApp

Grand Total

29

Features
Whatsapp; 7

Calling; 9

Radio; 7
Camera; 6

The study show that the most prefer feature in the mobile phone is
telephonic communication.
It has been observed that other feature like music, camera quality and social
networking are also preferred.
With reference to the in-depth interview conducted it was noted that mobile
users of this particular segment were using mobiles for commercial purpose.

b)Affordability

Row Labels
0-1000

Count of affordability
9

1000-2000
2000-3000
more than 3000
Grand Total

12
6
2
29

Affordability
14
12
10
8
Axis Title

6
4
2
0

0-1000

1000-2000

2000-3000

more than 3000

By conducting survey of 29 people, we found out that they mostly are from
low income group prefer a mobile phone within a price range of 2000.
Durability is also a consideration when a mobile phone is purchased as
subjects would not like to spend an extra amount on the maintenance and
breakage of the device
The phone should also be easily repairable by unauthorised dealers.

c) In depth Interview(face to face)

Name Akash
Gender male
Age 26
Profession domestic worker
Mobile Handset Micromax X900

Conversation
Me: do you own a phone?
Respondent: yes
Me: what is the price of the phone when u bought?
Respondent: 1000-1500
me: since how long you are using a phone?
Respondent: 2 year
Me: what do you do the most with the phone?
Respondent: calling, Internet and radio/songs
Me: how much do you spend Time using phone each day?
Respondent: 3 - 4 hours
Me: how much money do you spend on your phone monthly?
Respondent: 250-500
Me: how often you listen songs on radio?
Respondent: daily
Me: what do you do the most on the Internet?
Respondent: I watch videos for food recipes
Me: how many member in your family use mobile?
Respondent: 3 (father, brother, me)
Me: why you buy Micromax , why not Samsung or any other brand?
Respondent: Each and every phone have same features , micromax is
offering same features with reasonable price as compare to samsung,
my brother suggest me to buy this.

Me: Are you thinking to buy a new phone in future?

Respondent: yes in 2 3 months
Me: in which range?
Respondent: 1000 - 2000
Me: If Samsung or any other brand offer you phone between 10002000 range with good quality camera and other features like inbuilt
radio applications or YouTube app for your videos. Will you buy it?
Respondent: Yes, why not

By conducting interview we found that affordability is the main factor

which skilled/unskilled worker mainly consider before buying the
handset. As Micromax is offering same feature in mobile within 1500
on the other side Samsung is charging more than 1500. Due to
affordability factor they easily switch their brand as they are more
price sensitive.

Conclusion

Appendix

Name
Age
Gender
o Male
o Female
Q1) Do you have your own mobile?
o Yes
o No
Q2) which brand is it?
o Nokia
o Samsung
o Lava
o Micromax
o Others
Q3) what is the primary purpose for the use of mobile phones?

o
o
o
o
o

Call
Sms
Mobile internet
FM radio
Others

Q4) which mobile operator do you use?

o Vodafone
o Airtel
o Aircel
o Idea
o Others
Q5) what is the price of your handset?
o 0-1000
o 1000-2000
o 2000-3000
o more then 3000

Q6) How much money do you spend on your mobile services monthly?
o Up to 100
o Rs 100-200
o 200-500
o Rs 500 and above
Q7) how many members in your family use your mobile phone?
o 1
o 2
o 3
o More than 3
Q8) how much time do you spend on your mobile phone on average in a day?
o Less than 30 minutes
o From 1 -2 hour
o From 2-3 hour
o More than 3 hour
Q9) how much you are ready to spend if you got your preference features?
o 0 2000
o 2000 -3000
o 3000 5000
o More than 5000

Q10) would you classify internet as an important part of your mobile phone?
o Yes
o No