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Product and Brand Management Project
A STUDY ON SMARTPHONE & AMAZON
GROUP MEMBERS
Avishek
Majumdar
030105035
Mainak Ghosh 030105034
Shubhadeep
Bhaumik
030105079
Tanmoy Roy 030105007
Submitted to: Dr.Debraj Dutta
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Smartphone
A smartphone is a mobile phone (also known as cell phones) with an advanced mobile operating
system which combines features of a personal computer operating system with other features
useful for mobile or handheld use. Smartphone’s, which are usually pocket-sized, typically
combine the features of a mobile phone, such as the abilities to place and receive voice calls and
create and receive text messages, with those of other popular digital mobile devices like personal
digital assistants (PDAs), such as an event calendar, media player, video games, GPS navigation,
digital camera and digital video camera. Most smart phones can access the Internet and can run a
variety of third-party software components ("apps"). They typically have a colour display with a
graphical user interface that covers 70% or more of the front surface. The display is often a touch
screen, which enables the user to use a virtual keyboard to type words and numbers and press
onscreen icons to activate "app" features.
Smartphone’s became widespread in the late 2000s. Most of those produced from 2012 onward
have high-speed mobile broadband 4G LTE, motion sensors, and mobile payment features. In the
third quarter of 2012, one billion smart phones were in use worldwide. Global Smartphone sales
surpassed the sales figures for regular cell phones in early 2013.As of 2013, 65% of mobile
consumers in the United States owned smart phones. By January 2016, Smartphone held over
79% of the U.S. mobile market.
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Topic 1: Category attractiveness analysis
Porter’s Five Forces Theory
• Porter’s 5 Forces is one of the most recognized frameworks, used to assess the
competitiveness and attractiveness of a particular company and its industry.
• Named after Harvard professor, Michael E. Porter, this framework identifies five forces
that can help investors identify opportunities and threats within an industry.
• The 5 forces are: threat of new entry, supplier power, buyer power, threat of substitution
and competitive rivalry.
• While Porter’s is good at examining a company’s strengths and weaknesses, it’s only
meant as a starting point and may not be predictive of the long-term.
Competitive Rivalry
1. Intense competition is forcing many vendors and operators to drastically change their business
models out of the market as economies of scale, segment leadership, brand power and
distribution become key determinants of success.
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2. There is also very little differentiation between the competitors and the loss of market share of
Nokia during recent years means that any new smart phones in the market will find it difficult to
tempt existing competitor device consumers to switch.
3. The smartphone segment offers the largest returns for many in the mobile value chain, and it
has therefore become the most competitive – attracting all the major vendors competing across
various operating systems and price tiers.
4. Brand identity is vital for long term success in mobile phones market. But there is still
growing competition e.g. from Chinese 'micro brands' and grey market (mainly in the emerging
regions like India).
5. Over 2011 Nokia’s sales were down 18% in China, 27% in Europe and 61% in North
America. Nokia has faced increased competition from low-cost phone manufacturers such as
Huawei (mostly in China and Europe).
Price wars
Large industries allow multiple firms and produces to prosper without having to steal market
share from each other. Large industry size is a positive for Smart Phone Industry This
statements will have a short-term positive impact on this entity, which adds to its value.
When industries are growing revenue quickly, they are less likely to compete, because the total
industry size is also growing. The only way to grow in slow growth industries is to steal market-
share from competitors. Fast industry growth positively affects Smart Phone Industry.
When exit barriers are low, weak firms are more likely to leave the market, which will increase
the profits for the remaining firms.
Supplier’s power
1. Consumers volume is continuously increasing globally despite recession in recent
years in some regions and saturation in some. The Asia-Pacific market (developing
countries) present users are 1139.8 million and it will be 1483.4 by 2019. The continued
fall in handset prices in most segments, notably smartphones, with devices with greater
capabilities now available at a lower price point have also lead to increase in consumer
volumes.
2. Price differentiation is getting lower and lower as device manufacturers are facing fast
changes in designs, technical and data capabilities leading the buyers to price sensitive in
their buying decision. With lot of competitors offering similar packages, the buyers are
seeking out best value for their money.
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3. Some mobile operators have started building their own mobile phones under their
brand (e.g. Videocon in India) but still have not been hugely popular. So the threat is still
low. Most of the mobile phone manufacturers have their own stores to directly sell to
consumers.
4. In the cut-throat mobile industry, the product differentiation factors are getting lower.
If when player comes up with a new feature or technology improvement, it is taken by
competitive player very soon e.g. dual-core processors, wide-screen, LTE, etc.
5. When produces have low dependence, distributors have less bargaining power. Low
dependency positively affects Smart Phone Industry.
Buyer power
Large number of substitute inputs
When there are a large number of substitute inputs, suppliers have less bargaining
leverage over producers. This is due to competition among substitutes that is the
equipment manufacturers. Greater competition positively affects Smart Phone Industry.
There is competition among suppliers to cope up with the demand for fast growing
requirements of device manufacturers
High competition among suppliers -High levels of competition among suppliers acts to
reduce prices to producers. This is a positive for Smart Phone Industry.
Volume is critical to suppliers - When suppliers are reliant on high volumes, they have
less bargaining power, because a producer can threaten to cut volumes and hurt the
supplier’s profits. This can positively affect Smart Phone Industry.
Thereat of new entrants
1. Weak distribution networks mean goods are more expensive to move around and some
goods don’t get to the end customer. The expense of building a strong distribution
network positively affects Smart Phone Industry.
2. High sunk costs make it difficult for a competitor to enter a new market, because they
have to commit money up front with no guarantee of returns in the end. High sunk costs
positively affect Smart Phone Industry
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3. If strong brands are critical to compete, then new competitors will have to improve their
brand value in order to effectively compete. Strong brands positively affect Smart Phone
Industry.
4. Advanced technologies make it difficult for new competitors to enter the market because
they have to develop those technologies before effectively competing. The requirement
for advanced technologies positively affects Smart Phone Industry.
5. Economies of scale help producers to lower their cost by producing the next unit of
output at lower costs. When new competitors enter the market, they will have a higher
cost of production, because they have smaller economies of scale. Economies of scale
positively affect Smart Phone Industry.
6. When barriers are high, it is more difficult for new competitors to enter the market. High
entry barriers positively affect profits for Smart Phone Industry.
7. High switching costs make it difficult for customers to change which products they
normally purchase, due to costs. High switching costs positively affect Smart Phone
Industry.
8. Patents that cover vital technologies make it difficult for new competitors, because the
best methods are patented. Patents positively affect Smart Phone Industry.
Threat of substitutes
1. Mobile phones have become necessity for everyday lives of people and its hard to replace
with any substitute products especially when they are away from home.
2. There exist multiple substitute products e.g. for contacting people, usage of social media,
emails are substitutes, digital cameras for photography, TV/radio/iPod/iPad for listening
music, tablets for internet browsing, reading books, emailing& video calling etc. But
potentially all the value from substitute products could be derived from a single
smartphone, needless to say each substitute product might cost more than the mobile
phone and need to be carried all the time.
3. No other substitute product has the ability to make phone calls, send messages, surf the
web, reading a book, listening to music, use GPS services, communicating via social
media and many more in one device. The idea of being in constant communication with
someone at anytime and anywhere makes the mobile phone a very important device to
people and the perceived value is very high.
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Topic 2 CompetitionAnalysis:
Smartphone industry is going through a radical change. The Chinese brands are
collectively concerned with 32% of the smartphone market from 27% share in the
previous quarter.
"Healthy growth in the offline channel, online-focused vendors expanding their footprint into
retail channel followed by stringent norms to restrain excessive discounting on online platform
are some of the reasons that could be attributed for online share decline this quarter", said
Karthik J, Senior Market Analyst, Client Devices, IDC, India in a statement.
Apple's iPhone SE failed to make any significant impact in the premium segment while its
previous generation iPhone 5S continued to contribute majority volume.
Lenovo Group (including Motorola) with 10.3 % growth over the last quarter regained the third
position in smartphone market.
Intex slipped to fifth position as its shipments dropped 9.8 % sequentially and 30.1 %over last
year.
India’s market leaders Samsung & Micromax suffered huge losses the biggest blows both market
share because both companies dropped market share by 4%. Chinese firms like Vivo, Oppo,
Xiaomi moved up the rankings.
Lava has lost 6% market share to Chinese brands.
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Topic 3 Customer Analysis:
Buying decision process
Stage 1- Need Recognition-The need recognition is the first and most important step in
the buying process. If there is no need, there is no purchase. This recognition happens
when there is a lag between the consumer’s actual situation and the ideal and desired one.
Stage2- Information Search- the customers have wide variety of information’s
available about the different smartphones and their respective brands both offline and
online sources. Offline sources include official brand stores like Smartphone Store,
Samsung store & many online shopping sites like (amazon.com, flipkart.com) etc.
Gadget websites like gsmarena.com, magazines and newspapers also.
Stage 3- Evaluation of the alternatives-A large number of alternatives of smartphones
of different brands are available to the customers through different mediums. Products
are categorized on the basis of features, price system, screen size, memory availability
etc. Allowing customers with better choice availabilities.
Stage 4- Buying Decision- after evaluation of the all the products the best products are
bought by the consumers as per their respective requirements.
Stage-5 post-purchase behavior- This is the most important stage of buying decision
process because if the customers are not satisfied then repeat purchase and brand loyalty
will not be available to the smartphone companies. Availability of service centers& back
office to help the customers are a major part of after sale service which a consumer also
takes into consideration while purchasing a product.
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Topic 4: Product Strategy
There are three types of phones 1. Landline 2. Mobile phones 3. VOIP phones.
Mobile phone there are two types first is Symbian phones and another is smart phones.
The different types of mobile companies are:
Samsung.
Apple.
Microsoft.
Nokia.
Sony.
LG.
HTC.
Lenevo
Xiomi
LYf
Intex
From Intel 24MHz i386 CPU and just 8MB of memory to today’s many cores GHZ processor
like dual core,quad core.
As hardware improves smartphones are becoming increasingly more powerful..
As the older phones has rams in mb just below the 100 mb and now the rams is available in Gbs.
Now we have 1gb...2gb...3gb..ram available in a tiny smartphone.
Similarly the ROM ie Read only memory or in mobile terms we can say it internal memory has
been keeping on increasing as from 5mb Rom to 64 Gb Rom as we see in the case of model mi3
of xiaomi brand.
1. 64-Bit Processors
64-bit chips manages RAM more effectively than 32-bit processors, so the smartphones of the
future will be even faster. This will translate to improved graphics performance, improved HD-
video playback, and faster speeds all around. Users can expect processes such as encryption to be
also sped up in a 64-bit phone.
Models such as HTC’s Desire 510 and Lenovo’s Vibe Z2 are fitted with the 64-bit-enabled
Snapdragon 410 by Qualcomm. Another HTC phone, the Desire 820, also uses a 64-bit capable
chip, the Snapdragon 615.
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In addition to Intel and Qualcomm, manufacturers such as Nvidia and MediaTek are working on
64-bit processors. But it was Smartphone that first pushed for the trend to incorporating 64-bit
processors in smartphones, by building the iPhone 5s with the 64-bit A7 chip in 2013.
While the HTC and Lenovo phones mentioned above are already 64-bit enabled, they won’t be
able to maximise performance from these processors until the Android L operating system – a
64-bit OS – is released by Google this year.
LTE-Advanced Technology
In addition to faster speeds, the smartphones of the next few years will have faster networking
speeds. The Snapdragon 805 chip, for example, supports the LTE-Advanced technology, which
means any phone using that chip will be able to realise network speeds of up to 300Mbps. The
LTE-Advanced technology offers faster speeds by delivering data over multiple frequency bands
simultaneously.
However, the faster speeds will only be available if the user’s mobile operator has a compatible
network that’s optimised for these faster speeds. According to research by ABI Research, this is
gradually coming true in many geographic regions. Smartphones with LTE-Advanced or similar
technology include the Samsung Galaxy Note 4 and Huawei’s Ascend Mate7.
Quad HD Screens
It seems that smartphones can’t get any bigger without turning into tablets, so users looking for
more phablet models might be disappointed. However, there’s another trend in smartphone
screens that bodes well for consumers.
Resolution is the other area that’s seeing massive improvements, and with LG’s G3 – which
comes with a 5.5-inch, 2560-by-1440 pixel resolution screen – the future of smartphone screens
appears to be in the direction of better quad HD screens with very high resolutions.
‘Quad HD’ refers to the fact that these are screens with four times the resolution of 720p HD
displays. While it’s only been just over a year since 1080p displays entered the market,
manufacturers are already looking to quad HD and beyond to differentiate their devices on the
market.
Theodore Levitt’s Product Level Hierarchy
Product Level Hierarchy
Theodore Levitt proposes that in planning its market offering, the marketer needs to think
through 5 levels of the product. Each level adds more customer value and taken together
forms Customer Value Hierarchy.
In this case we are considering only Smartphone
Core Benefit or Product: - The core benefit of any smartphone is to serve the purpose of
telecalling.
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Basic or Generic Product: - The basic purpose is calling but it may also includecamera,
operating systems, sms (sending messages) & internet facilities, Bluetooth& Wi-Fi connectivity,
sound system, good accessories.
Expected Product: - After the basic the next features of any smartphone is that good megapixel
camera, front camera, internet facilities like email, social networking applications, bigger screen
size.
Augmented product: 3G &4G enabled handsets, front camera with flash, video calling, good
battery backup, expandable memory, full HD screen, and latest operating system versions& free
up gradation, dust & water proof.
Potential product: Irish scanner, finger print scanner, Currency scanner, 5G service, cloud
backup, image processing software, LED screens, voice recognized lock system, shock proof.
PRODUCT LIFE CYSCLE STRATEGY OF A SMARTPHONE:
First Generation:
First generation of phones basically analogue mobile phones have declined rapidly with the
development of digital phones. (Stage 1)
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Second Generation
Second generation phones GSM digital mobile phones and the symbian phones are in a stage of
maturity everyone knows that what they offer on their phones. More player is coming on the market
and technologically they are going to upgraded themselves time to time (Stage 2)
Third Generation
3G/4G digital phones with much greater bandwidth and variety and more player available in the
market but life span of a phone became less because of them technological up gradation happening
too fast .If we are taken a example of android version ,its updated their version interval of 6 to 7
months so previous version of mobile phone became obsolete .so life span of a mobile phone
became less but according to markets size its increasing day by day(Stage 3)
PRODUCT-MIX STRATEGY
Product: -
The product is the centre of the marketing mix and the other three P's are based around it.
Consumers purchase goods and services for a variety of individual reasons and a company must
be aware of all of these when selling a product (that is why they conduct market research). Nokia
does exactly the same and comes up with innovative phones almost every six months. The new
phones that Nokia launches have some new feature or price difference, thus appealing to the
consumer. Sometimes, Nokia launches special and limited editions of its mobile phones, on
special occasions such as the Olympics. In short they offer various phones of various designs and
various varieties with high quality.
Price: -
Price is a key factor in the selling of a product, and is usually the one that is open to most change
based on different pricing strategies, for example, competitor based, penetration or
skimming. The three main factors affecting the amount charged for a product or service are cost
of production, customer demand and competition. We have to have different mobiles available of
different class of peoples at different prices, like sets should vary from Rs 1000-Rs 35,000.
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Place: -
It refers to chosen outlets for a product or service, for a product to be successful it must be easy
to access. Now a day’s mobile phones are easy to access as they are available in supermarkets,
company outlets (Nokia Priority, Samsung Smart Phone shops), specialized outlets (Mobile
Store).
Promotion: -
This involves providing information regarding the product to the customers through various
media platforms like Print Advertising, Outdoor Advertising, Covert Advertising, Surrogate
Advertising, Celebrity Advertising and Broadcasting Advertising. The Promotion also informs
the customer about various offers and discount which is offered. Advertisement should be made
in such a way that it appeals to the psychology of the customer and help them to recall the
product brand while the purchasing is done.
Product packaging strategy
A good packaging is always needed for a good smart phone because not only its feel a good it’s
also safe our phone from damage.
Simplicity: Smartphone’s look is always simple and clean and the packaging for the i-Pad,
Samsung, redmi and other is true to the brand. The art on the cover of the box is a life-size photo
of the product inside. No words, no sell copy. Since this is exactly what the customer can’t wait
to get their hands on, it’s the perfect marketing message, building anticipation and making the
product the star. The only other art on the package is the Smartphone logo and the product name
on the sides of the box. The product specs (16GB, 3G, etc.) and copyright are hidden on the back
at the bottom. Nothing gets in the way of the brand.
Consistency: The packaging and the product are as beautiful, clean, and easy to access as every
other Smartphone product. Opening this box felt just like opening the package for my iPhone and
my iPod, and this trademark simplicity and consistency are exactly what Smartphone buyers
want and expect from the company. Even the accessories in the box are familiar. The Samsung,
i-Pad, Samsung, redmi uses the same USB cable as other Smartphone products.
Ease of Use: Smartphone products, they’re right. The product’s controls and user interface are so
intuitive that you can quickly get up to speed and start using the product. There’s no thick
owner’s manual in multiple languages, just a simple, two-sided card that leads you to product
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instructions on the web and in the product, itself, though you really don’t need them unless this is
the first time you’ve purchased from Smartphone.
Quality: The silk paper stock for the box and “how to use” card are extremely high quality, with
a soft, rich finish, a dull varnish, a slightly creamy color, and a silver metallic foil stamp on the
Smartphone logo. Even the box feels great to the touch. Instead of looking for ways to save
money with a cheap box and an inexpensive paper stock, Smartphone made the package an
extension of the product itself.
Main strategiesof smartphone companies:
1. Know what your customers expect from your brand and deliver it in all aspects of
your product, from the product design to the package you ship it in.
2. Your brand is much more than your logo: it’s everything the customer experiences
when they interact with you. Evaluate all your customer touchpoints to be sure they
truly reflect your brand.
3. Simplify your message and communicate it as directly as possible. Edit copy to its
essence and wherever you can, use visuals to make your points.
4. Be you, all the time. Great brands convey a company’s persona and they do it so
consistently that the company feels like something more than a commercial
enterprise. Your brand persona should be a reflection of who you are and what makes
you different from every other company in your marketplace. Keep it consistent and
keep it real.
Topic 5: Pricing Strategy
The smartphone market is today becoming increasingly polarized between high-end devices
from Samsung and Apple, and low-end smartphones being rolled out by Chinese OEMs such as
Huawei and ZTE. As Apple’s dominance declines, new players emerge and middle ground
players struggle to find their niche the industry is undergoing a next wave.
Ultimately, many companies have realised that it makes sense (at least in India) to adopt a
‘skimming’ price strategy – a name derived from the action of skimming layers of cream off the
top of milk.
Since the class divide is so wide and people with deeper pockets tend to (and want to) pay more
for exclusivity, the skimming makes sense – it grants the exclusivity to those who desire it and
maximises profits for the company.
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Here’s how skimming works – you start by artificially inflating the price of a new, much-hyped
phone. You can generate hype by announcing the release of the phone way before it’s actually
available. You can generate hype by starting pre-orders for the device (without a declared final
price). The pre-order supposedly ensures that you get preference over others for delivery. You
engineer ‘leaks’ in the press and social media, where a pricing is given out so that you can gauge
reactions. All this is step 1.
Step 2: Launch the phone at the artificially inflated price but at the same time, tie up with leading
banks to offer cash back schemes – as much as 20% (a maximum of Rs 5,000 off) – for anyone
who purchases with a credit card. This works in two ways – people with tons of black money
don’t care anyway – they’ll just spend the extra cash. The early adopters with deep pockets full
of white money will get Rs 5,000 off on launch date.
Step 3: Keep a close watch on sales – as soon as they start dipping, it means that the first couple
of layers of customers have been successfully ‘skimmed’. Then, announce a buyback scheme
wherein you get an absurdly high buyback amount for your ratty old phone – a price that you
never thought possible and in some cases, higher even that the price you originally paid for it.
This step also involved trying to convince everyone that there are limited stocks and that this is a
limited time offer. This layer has to be skimmed fast, you see? Wait too long and the other
genuinely interested people who want to pay a lower price will get put off and more attracted by
another new phone model. It’s been about 2 to 3 months since launch at this stage.
Step 4: Reduce the sticker price by a substantial amount – this is when the phone starts looking
like a good deal. This price reduction applies without any cash back or buy back scheme. At the
same time, interest free EMIs can also be announced – interested buyers can split up the total
cost into 3, 6 to 9 EMIs without any added interest charges.
Topic 6: Promotion strategies
When we say promotion, we have image of advertisement in our mind. Although there are plenty
of other methods to promote your products or company but advertisement is key focused element
of promotion. Advertising is art of promoting yourself through different media. In the complex
environment where everything is getting changed and being systematic, advertisement is also
being converted into a whole subject.
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5 m of advertising -
1. Mission -Mission statement of any Smartphone, advertisement a component of
promotion is also having a clear mission that what they want to achieve through
advertisement. In this head, they set their mission, goals and objectives to analyse that
what we are going to do and what we will get through this act.
2. Money – They are always showing their advertisement product price with an
attractivemanner through value, price,value methods .so target audience more attract with
the value and what benefits they are going to get after buys Smartphones.
3. Message - The message is that idea, information, literature and theme you want to
communicate to your target customer. The message will be decided according to the
target customer because you will definitely only transfer important information to your
target audience but a trash.
4. Media – Online, offline, TVC,newspaper etc.
5. Measure -Same like marketing strategy, evaluation and measurement is an essential step
to end advertisement strategy. Without evaluation, how you can identify that you achieve
your objectives? Sam in case of advertisement, you have to measure your advertising
strategy that either you get the same return or not. Again, measurement depends on media
selection. Every media has its own measurement techniques.
BTL strategy –
ATL- Promotions of Smartphone are known to be fantastic and might range from a full
front page ad on the launch of the product, promotions in the radio, the television and
what not. Whenever a new phone is being launched, be sure to see
Smartphoneeverywhere, on each and every ATL platform. Because they are targeting a
premium segment, the presence of SmartphoneSmartphoneis higher in the ATL segment
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than in the BTL segment. The interesting thing here is the taglines in newspaper ads
because many of the Smartphoneads are known to come up with the most interesting
taglines for the new phone.
BTL – BTL marketing, Smartphone uses out of home advertising with hoardings and
point of sale advertising in major retail outlets. It also uses various forms of sales
promotions and exchange offers to lure in the customer via BTL marketing.
Topic 7: Channel Strategies :
Present across the globe with a fantastic service backup – Smartphone factory is
present across many countries and nations and is known to provide an excellent service
backup in all these countries. The target of Smart phonemarket is mainly consists of
different kinds of customers.
Smartphones stores are found in premium places and malls –phonehas named its
retail counter as the store keeping in line with the complete product line of Smartphone
which starts with I resulting in an immediate personal connect with the customer. These I
stores of Smartphone are found in malls and premium areas in premium cities across the
complete country wide network.
Distribution happens through CNF >> Modern retail or Distributor >> Retails – All
modern retail outlets are distributed the Smartphonethrough a carrying and forwarding
agent. On the other hand, individual retailers are given the product through distributors.
Finally, the I stores which are the exclusive showrooms, are given the product directly
from the company at best discounts.
Corporate tie up – Smartphonecompanies also have a corporate sales department for the
Smartphonewhich does corporate tie ups for the company. When Blackberry announced
its exit from the handsetmarket, newsmartphones came into the picture and did many
corporate tie ups to replace itself as the handset with all top CEO’s and managers who
were previously using Blackberry. Thus, it could take over a major market share left over
by Blackberry.
E-Commerce –Smartphone product is also available on Flipkart, Amazon, Snapdeal and
others online platforms.
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Section 2: Brand Management
Topic 1 -
Brand: A brand is a name, term, sign, symbol, design, slogan or a combination of them, intended
toidentify the goods or services of one seller and to differentiate them from those ofcompetitors.
The brand is Amazon.
The arrow which looks like a smiling face in Amazons logo has a strong meaning behind it .It is
a representation of wide range of items available for retail by amazon, from A to Z.
"Earth's Most Customer- Centric Company" the slogan of Amazon. Where customers want
to find and discover anything they want online, and at the most lowest possible prices that it will
endeavour.
Topic 2-
Attributes- product-focus, customer-centricity, a focus on value creation rather than revenue, and
a willingness to head off disruption by disrupting themselves.
Benefits- Amazon.com has the ability to offer shopping convenience, ease of purchase, speed,
decision-enabling information, a wide selection, discounted pricing, and reliability of order
fulfilment. These are tied directly to the company’s logistical competencies.
Values- The core values are:
 Customer Obsession
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 Ownership
 Invent and Simplify
 Are Right, A Lot
 Hire and Develop the Best
 Insist on the Highest Standards
 Think Big
 Bias for Action
 Frugality
 Vocally Self Critical
 Earn Trust of Others
 Dive Deep
 Have Backbone; Disagree and Commit
 Deliver Results.
Culture-Amazon.com Inc. has an organizational culture that enables business capacity to respond
to the demands of the e-commerce market. A company’s organizational or corporate culture sets
the traditions and values that influence employees’ behaviours. For example, Amazon’s
corporate culture pushes employees to go beyond traditional limits and conventions to develop
bright ideas and solutions. As the world’s top-performing online retailer, the company continues
to seek fresh talent.
The main characteristics of amazon’s culture are :
1. Boldness
2. Customer-centricity
3. Peculiarity
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Personality-
Value- Amazon keeps some things consistent. Its value proposition remains price and
convenience no matter the product or service, and low prices can be sustained by ensuring
its customer relationships continue to be mostly automated and self-service.
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Topic 3
The branding components of Amazon:
Added features: When we are remembering about the brand name Amazon that means for us
various collection of products, price is low, a good return policy, now they are also gives
one day to two day delivery so this is a added feature of their brand reliability.
Brand Name: Brand represents that A to Z that means you will be getting every kinds of product
through their websites.
Corporate branding: The brand valueof amazon is very high because of his brand awareness,and
they are using their name on other resources because corporate branding is very much
required as a brand.
Packaging and Design: As a brand logo, they have to be very simple and packaging oriented
which may be easy to recall their brand name place of others competitors name. When
amazon created their brand logo they put an arrow from a to z that shows that they have a
to z products which you requited I your daily life.
Fulfilment: This is a very important phase for a brand they have to fulfilment theirpromises and
they have to focus on their customers and to the brand image.
Image and reputation: A brand like amazon which is already created their name the market they
always very concern about their image and reputation because if they are taken any
wrong decision that will be an advantage to the competitor for like in case of amazon
the advantage taker will be snapdea land flipkart because they are the major player of
online e commerce sector.
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Topic 4
POP: Point of parity means this is the difference that competitor has over you and
it’s have to do counterattack. It’s different with his two contributes
1. Competitive 2. Category.
Competitive -Compete with the other brands, which brands are belonging to
the same market or different sectors.
Category –A category point of parity means that the brand offers necessary category
features. Amazon provides a large number of category features like apparels for men &
women, electronics, households, e-books, stationary, sports & fitness products etc.
POD: Point-of-difference is attributes or benefitsconsumers strongly associate with a brand,
positively evaluate, and believe that theycould not find to the same extent with a
competitive brand.
Amazon is known toeveryone is best for is delivery policy and their kindle and others services
that is very unique. They are also very well known for their collection new range of new
accessories which is always launched first on their website platform like redmi3 and others xiomi
mobile , Lenovo products also they are the only exclusive partner.
Page | 23
Topic 5
Amazon create their positioning strategies in the way where theyposition their self for the every
type of customer, they does not want to restrict themselves to a limited extent andthey are
explaining through their logo in their logo they use anarrow to A to Z that clearly shows
that that have that kind of variation and they not only for the premium class. The arrow
represents also a big smile to the customer after buying the product from their websites.
They position themselves in this manner wherepeople visit and buy through different
medium and also avail their exclusive offer and feel their window shopping, and their
shopping experience became a real experience to the customer. Theypositioned
themselves that the customers are becoming more brand royal to the amazon and they not
shifted to the other e commerce websites, for that they are always give sudden discounts
& offers like:
 Subsidised Item Cost: Amazon, Flipkart or for that matter any other e-commerce
company subsidise the cost of certain trending items to increase their consumer base.
Once you have got a good discount, liked their service, you are bound to come back. That
is the mantra on which such discounts are offered. These kinds of discounts help us save
some money.
 Coupons: Again, this is one kind of promotional measure to increase their consumer base
or in some cases retain their customers; they would send us exclusive discount coupons
which can be availed by applying on final check out. Again, it saves us some money.
 Promotional festivals: During such festivals, they sell products cheaper than almost
everywhere. Discounts might seem illogical but they are REAL. Such festivals are a huge
PR campaign for all these sites. They attract new customers, advertisers, merchants and
investors. Taking example of Big App Shopping Days, lot of people have bashed Flipkart
for not being able to pull it off the way it was advertised. But at a personal level I got a
few things very cheap, which I wanted to buy since a long time.
 Bank offers: Has to be real. Still, be careful about the product you are buying. Your bank
has nothing to do with the listing of that particular item.
 Delivery Offers: Sometimes Amazon provides delivery discounts like no COD (cash on
delivery) charges from the customers to special customers who regularly buys products
from the online portal.
Page | 24
 Effective Aftersales service: good return and refund and easy exchange policies
followed a good customer hep care support service enables customers to rely on Amazon
for making their purchase decisions.
Page | 25
Topic 6:
Five steps of brand strategies-
1. Conduct effective market research: When a company just started their journey then they
became only name but when they are in the middle journey of their businesslife then they
organized effective market research for a brand research is the main part because then
they looking for huge investment and brand extension is also happen so for that they have
to need a great strategies for established their name as a brand in the market.
2. Focus on a unique value proposition:Amazons USP includes: -
 Low price
 Guarantee & warranty
 Wide choice of products
 Good quality
 After sale service
 Convenience & speed of service
 Customization possible and knowledge about products of wide variety
3.Choose a brand name that delivers your message clearly-
In case of amazon that clearly shows that A to Z.
4. Emotional connection
Amazon has a strong emotional appeal with their customer. The ad campaigns are both
verbal as well as non-verbal in nature. The famous tagline “khusioki delivery” has a lot of
emotional connect with it. The ad features about festive season’s family bonding love and
care for people at the same time showing the variety of products available in their website
giving customers a wide variety of choice. The ad campaigns during Christmas, New
year, Indian festivals, Halloween etc. amazon makes ad campaigns on the basis of each
festivals to not only highlight the festival but also brings about togetherness of the
customers.
5. Deliver constant communications
Amazon is constantly researching and coming up with new and interesting
communications so that their message is heard to the entire world about what amazon
does.
Page | 26

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product and brand management project on smartphone & Amazon

  • 1. Page | 1 Product and Brand Management Project A STUDY ON SMARTPHONE & AMAZON GROUP MEMBERS Avishek Majumdar 030105035 Mainak Ghosh 030105034 Shubhadeep Bhaumik 030105079 Tanmoy Roy 030105007 Submitted to: Dr.Debraj Dutta
  • 2. Page | 2 Smartphone A smartphone is a mobile phone (also known as cell phones) with an advanced mobile operating system which combines features of a personal computer operating system with other features useful for mobile or handheld use. Smartphone’s, which are usually pocket-sized, typically combine the features of a mobile phone, such as the abilities to place and receive voice calls and create and receive text messages, with those of other popular digital mobile devices like personal digital assistants (PDAs), such as an event calendar, media player, video games, GPS navigation, digital camera and digital video camera. Most smart phones can access the Internet and can run a variety of third-party software components ("apps"). They typically have a colour display with a graphical user interface that covers 70% or more of the front surface. The display is often a touch screen, which enables the user to use a virtual keyboard to type words and numbers and press onscreen icons to activate "app" features. Smartphone’s became widespread in the late 2000s. Most of those produced from 2012 onward have high-speed mobile broadband 4G LTE, motion sensors, and mobile payment features. In the third quarter of 2012, one billion smart phones were in use worldwide. Global Smartphone sales surpassed the sales figures for regular cell phones in early 2013.As of 2013, 65% of mobile consumers in the United States owned smart phones. By January 2016, Smartphone held over 79% of the U.S. mobile market.
  • 3. Page | 3 Topic 1: Category attractiveness analysis Porter’s Five Forces Theory • Porter’s 5 Forces is one of the most recognized frameworks, used to assess the competitiveness and attractiveness of a particular company and its industry. • Named after Harvard professor, Michael E. Porter, this framework identifies five forces that can help investors identify opportunities and threats within an industry. • The 5 forces are: threat of new entry, supplier power, buyer power, threat of substitution and competitive rivalry. • While Porter’s is good at examining a company’s strengths and weaknesses, it’s only meant as a starting point and may not be predictive of the long-term. Competitive Rivalry 1. Intense competition is forcing many vendors and operators to drastically change their business models out of the market as economies of scale, segment leadership, brand power and distribution become key determinants of success.
  • 4. Page | 4 2. There is also very little differentiation between the competitors and the loss of market share of Nokia during recent years means that any new smart phones in the market will find it difficult to tempt existing competitor device consumers to switch. 3. The smartphone segment offers the largest returns for many in the mobile value chain, and it has therefore become the most competitive – attracting all the major vendors competing across various operating systems and price tiers. 4. Brand identity is vital for long term success in mobile phones market. But there is still growing competition e.g. from Chinese 'micro brands' and grey market (mainly in the emerging regions like India). 5. Over 2011 Nokia’s sales were down 18% in China, 27% in Europe and 61% in North America. Nokia has faced increased competition from low-cost phone manufacturers such as Huawei (mostly in China and Europe). Price wars Large industries allow multiple firms and produces to prosper without having to steal market share from each other. Large industry size is a positive for Smart Phone Industry This statements will have a short-term positive impact on this entity, which adds to its value. When industries are growing revenue quickly, they are less likely to compete, because the total industry size is also growing. The only way to grow in slow growth industries is to steal market- share from competitors. Fast industry growth positively affects Smart Phone Industry. When exit barriers are low, weak firms are more likely to leave the market, which will increase the profits for the remaining firms. Supplier’s power 1. Consumers volume is continuously increasing globally despite recession in recent years in some regions and saturation in some. The Asia-Pacific market (developing countries) present users are 1139.8 million and it will be 1483.4 by 2019. The continued fall in handset prices in most segments, notably smartphones, with devices with greater capabilities now available at a lower price point have also lead to increase in consumer volumes. 2. Price differentiation is getting lower and lower as device manufacturers are facing fast changes in designs, technical and data capabilities leading the buyers to price sensitive in their buying decision. With lot of competitors offering similar packages, the buyers are seeking out best value for their money.
  • 5. Page | 5 3. Some mobile operators have started building their own mobile phones under their brand (e.g. Videocon in India) but still have not been hugely popular. So the threat is still low. Most of the mobile phone manufacturers have their own stores to directly sell to consumers. 4. In the cut-throat mobile industry, the product differentiation factors are getting lower. If when player comes up with a new feature or technology improvement, it is taken by competitive player very soon e.g. dual-core processors, wide-screen, LTE, etc. 5. When produces have low dependence, distributors have less bargaining power. Low dependency positively affects Smart Phone Industry. Buyer power Large number of substitute inputs When there are a large number of substitute inputs, suppliers have less bargaining leverage over producers. This is due to competition among substitutes that is the equipment manufacturers. Greater competition positively affects Smart Phone Industry. There is competition among suppliers to cope up with the demand for fast growing requirements of device manufacturers High competition among suppliers -High levels of competition among suppliers acts to reduce prices to producers. This is a positive for Smart Phone Industry. Volume is critical to suppliers - When suppliers are reliant on high volumes, they have less bargaining power, because a producer can threaten to cut volumes and hurt the supplier’s profits. This can positively affect Smart Phone Industry. Thereat of new entrants 1. Weak distribution networks mean goods are more expensive to move around and some goods don’t get to the end customer. The expense of building a strong distribution network positively affects Smart Phone Industry. 2. High sunk costs make it difficult for a competitor to enter a new market, because they have to commit money up front with no guarantee of returns in the end. High sunk costs positively affect Smart Phone Industry
  • 6. Page | 6 3. If strong brands are critical to compete, then new competitors will have to improve their brand value in order to effectively compete. Strong brands positively affect Smart Phone Industry. 4. Advanced technologies make it difficult for new competitors to enter the market because they have to develop those technologies before effectively competing. The requirement for advanced technologies positively affects Smart Phone Industry. 5. Economies of scale help producers to lower their cost by producing the next unit of output at lower costs. When new competitors enter the market, they will have a higher cost of production, because they have smaller economies of scale. Economies of scale positively affect Smart Phone Industry. 6. When barriers are high, it is more difficult for new competitors to enter the market. High entry barriers positively affect profits for Smart Phone Industry. 7. High switching costs make it difficult for customers to change which products they normally purchase, due to costs. High switching costs positively affect Smart Phone Industry. 8. Patents that cover vital technologies make it difficult for new competitors, because the best methods are patented. Patents positively affect Smart Phone Industry. Threat of substitutes 1. Mobile phones have become necessity for everyday lives of people and its hard to replace with any substitute products especially when they are away from home. 2. There exist multiple substitute products e.g. for contacting people, usage of social media, emails are substitutes, digital cameras for photography, TV/radio/iPod/iPad for listening music, tablets for internet browsing, reading books, emailing& video calling etc. But potentially all the value from substitute products could be derived from a single smartphone, needless to say each substitute product might cost more than the mobile phone and need to be carried all the time. 3. No other substitute product has the ability to make phone calls, send messages, surf the web, reading a book, listening to music, use GPS services, communicating via social media and many more in one device. The idea of being in constant communication with someone at anytime and anywhere makes the mobile phone a very important device to people and the perceived value is very high.
  • 7. Page | 7 Topic 2 CompetitionAnalysis: Smartphone industry is going through a radical change. The Chinese brands are collectively concerned with 32% of the smartphone market from 27% share in the previous quarter. "Healthy growth in the offline channel, online-focused vendors expanding their footprint into retail channel followed by stringent norms to restrain excessive discounting on online platform are some of the reasons that could be attributed for online share decline this quarter", said Karthik J, Senior Market Analyst, Client Devices, IDC, India in a statement. Apple's iPhone SE failed to make any significant impact in the premium segment while its previous generation iPhone 5S continued to contribute majority volume. Lenovo Group (including Motorola) with 10.3 % growth over the last quarter regained the third position in smartphone market. Intex slipped to fifth position as its shipments dropped 9.8 % sequentially and 30.1 %over last year. India’s market leaders Samsung & Micromax suffered huge losses the biggest blows both market share because both companies dropped market share by 4%. Chinese firms like Vivo, Oppo, Xiaomi moved up the rankings. Lava has lost 6% market share to Chinese brands.
  • 8. Page | 8 Topic 3 Customer Analysis: Buying decision process Stage 1- Need Recognition-The need recognition is the first and most important step in the buying process. If there is no need, there is no purchase. This recognition happens when there is a lag between the consumer’s actual situation and the ideal and desired one. Stage2- Information Search- the customers have wide variety of information’s available about the different smartphones and their respective brands both offline and online sources. Offline sources include official brand stores like Smartphone Store, Samsung store & many online shopping sites like (amazon.com, flipkart.com) etc. Gadget websites like gsmarena.com, magazines and newspapers also. Stage 3- Evaluation of the alternatives-A large number of alternatives of smartphones of different brands are available to the customers through different mediums. Products are categorized on the basis of features, price system, screen size, memory availability etc. Allowing customers with better choice availabilities. Stage 4- Buying Decision- after evaluation of the all the products the best products are bought by the consumers as per their respective requirements. Stage-5 post-purchase behavior- This is the most important stage of buying decision process because if the customers are not satisfied then repeat purchase and brand loyalty will not be available to the smartphone companies. Availability of service centers& back office to help the customers are a major part of after sale service which a consumer also takes into consideration while purchasing a product.
  • 9. Page | 9 Topic 4: Product Strategy There are three types of phones 1. Landline 2. Mobile phones 3. VOIP phones. Mobile phone there are two types first is Symbian phones and another is smart phones. The different types of mobile companies are: Samsung. Apple. Microsoft. Nokia. Sony. LG. HTC. Lenevo Xiomi LYf Intex From Intel 24MHz i386 CPU and just 8MB of memory to today’s many cores GHZ processor like dual core,quad core. As hardware improves smartphones are becoming increasingly more powerful.. As the older phones has rams in mb just below the 100 mb and now the rams is available in Gbs. Now we have 1gb...2gb...3gb..ram available in a tiny smartphone. Similarly the ROM ie Read only memory or in mobile terms we can say it internal memory has been keeping on increasing as from 5mb Rom to 64 Gb Rom as we see in the case of model mi3 of xiaomi brand. 1. 64-Bit Processors 64-bit chips manages RAM more effectively than 32-bit processors, so the smartphones of the future will be even faster. This will translate to improved graphics performance, improved HD- video playback, and faster speeds all around. Users can expect processes such as encryption to be also sped up in a 64-bit phone. Models such as HTC’s Desire 510 and Lenovo’s Vibe Z2 are fitted with the 64-bit-enabled Snapdragon 410 by Qualcomm. Another HTC phone, the Desire 820, also uses a 64-bit capable chip, the Snapdragon 615.
  • 10. Page | 10 In addition to Intel and Qualcomm, manufacturers such as Nvidia and MediaTek are working on 64-bit processors. But it was Smartphone that first pushed for the trend to incorporating 64-bit processors in smartphones, by building the iPhone 5s with the 64-bit A7 chip in 2013. While the HTC and Lenovo phones mentioned above are already 64-bit enabled, they won’t be able to maximise performance from these processors until the Android L operating system – a 64-bit OS – is released by Google this year. LTE-Advanced Technology In addition to faster speeds, the smartphones of the next few years will have faster networking speeds. The Snapdragon 805 chip, for example, supports the LTE-Advanced technology, which means any phone using that chip will be able to realise network speeds of up to 300Mbps. The LTE-Advanced technology offers faster speeds by delivering data over multiple frequency bands simultaneously. However, the faster speeds will only be available if the user’s mobile operator has a compatible network that’s optimised for these faster speeds. According to research by ABI Research, this is gradually coming true in many geographic regions. Smartphones with LTE-Advanced or similar technology include the Samsung Galaxy Note 4 and Huawei’s Ascend Mate7. Quad HD Screens It seems that smartphones can’t get any bigger without turning into tablets, so users looking for more phablet models might be disappointed. However, there’s another trend in smartphone screens that bodes well for consumers. Resolution is the other area that’s seeing massive improvements, and with LG’s G3 – which comes with a 5.5-inch, 2560-by-1440 pixel resolution screen – the future of smartphone screens appears to be in the direction of better quad HD screens with very high resolutions. ‘Quad HD’ refers to the fact that these are screens with four times the resolution of 720p HD displays. While it’s only been just over a year since 1080p displays entered the market, manufacturers are already looking to quad HD and beyond to differentiate their devices on the market. Theodore Levitt’s Product Level Hierarchy Product Level Hierarchy Theodore Levitt proposes that in planning its market offering, the marketer needs to think through 5 levels of the product. Each level adds more customer value and taken together forms Customer Value Hierarchy. In this case we are considering only Smartphone Core Benefit or Product: - The core benefit of any smartphone is to serve the purpose of telecalling.
  • 11. Page | 11 Basic or Generic Product: - The basic purpose is calling but it may also includecamera, operating systems, sms (sending messages) & internet facilities, Bluetooth& Wi-Fi connectivity, sound system, good accessories. Expected Product: - After the basic the next features of any smartphone is that good megapixel camera, front camera, internet facilities like email, social networking applications, bigger screen size. Augmented product: 3G &4G enabled handsets, front camera with flash, video calling, good battery backup, expandable memory, full HD screen, and latest operating system versions& free up gradation, dust & water proof. Potential product: Irish scanner, finger print scanner, Currency scanner, 5G service, cloud backup, image processing software, LED screens, voice recognized lock system, shock proof. PRODUCT LIFE CYSCLE STRATEGY OF A SMARTPHONE: First Generation: First generation of phones basically analogue mobile phones have declined rapidly with the development of digital phones. (Stage 1)
  • 12. Page | 12 Second Generation Second generation phones GSM digital mobile phones and the symbian phones are in a stage of maturity everyone knows that what they offer on their phones. More player is coming on the market and technologically they are going to upgraded themselves time to time (Stage 2) Third Generation 3G/4G digital phones with much greater bandwidth and variety and more player available in the market but life span of a phone became less because of them technological up gradation happening too fast .If we are taken a example of android version ,its updated their version interval of 6 to 7 months so previous version of mobile phone became obsolete .so life span of a mobile phone became less but according to markets size its increasing day by day(Stage 3) PRODUCT-MIX STRATEGY Product: - The product is the centre of the marketing mix and the other three P's are based around it. Consumers purchase goods and services for a variety of individual reasons and a company must be aware of all of these when selling a product (that is why they conduct market research). Nokia does exactly the same and comes up with innovative phones almost every six months. The new phones that Nokia launches have some new feature or price difference, thus appealing to the consumer. Sometimes, Nokia launches special and limited editions of its mobile phones, on special occasions such as the Olympics. In short they offer various phones of various designs and various varieties with high quality. Price: - Price is a key factor in the selling of a product, and is usually the one that is open to most change based on different pricing strategies, for example, competitor based, penetration or skimming. The three main factors affecting the amount charged for a product or service are cost of production, customer demand and competition. We have to have different mobiles available of different class of peoples at different prices, like sets should vary from Rs 1000-Rs 35,000.
  • 13. Page | 13 Place: - It refers to chosen outlets for a product or service, for a product to be successful it must be easy to access. Now a day’s mobile phones are easy to access as they are available in supermarkets, company outlets (Nokia Priority, Samsung Smart Phone shops), specialized outlets (Mobile Store). Promotion: - This involves providing information regarding the product to the customers through various media platforms like Print Advertising, Outdoor Advertising, Covert Advertising, Surrogate Advertising, Celebrity Advertising and Broadcasting Advertising. The Promotion also informs the customer about various offers and discount which is offered. Advertisement should be made in such a way that it appeals to the psychology of the customer and help them to recall the product brand while the purchasing is done. Product packaging strategy A good packaging is always needed for a good smart phone because not only its feel a good it’s also safe our phone from damage. Simplicity: Smartphone’s look is always simple and clean and the packaging for the i-Pad, Samsung, redmi and other is true to the brand. The art on the cover of the box is a life-size photo of the product inside. No words, no sell copy. Since this is exactly what the customer can’t wait to get their hands on, it’s the perfect marketing message, building anticipation and making the product the star. The only other art on the package is the Smartphone logo and the product name on the sides of the box. The product specs (16GB, 3G, etc.) and copyright are hidden on the back at the bottom. Nothing gets in the way of the brand. Consistency: The packaging and the product are as beautiful, clean, and easy to access as every other Smartphone product. Opening this box felt just like opening the package for my iPhone and my iPod, and this trademark simplicity and consistency are exactly what Smartphone buyers want and expect from the company. Even the accessories in the box are familiar. The Samsung, i-Pad, Samsung, redmi uses the same USB cable as other Smartphone products. Ease of Use: Smartphone products, they’re right. The product’s controls and user interface are so intuitive that you can quickly get up to speed and start using the product. There’s no thick owner’s manual in multiple languages, just a simple, two-sided card that leads you to product
  • 14. Page | 14 instructions on the web and in the product, itself, though you really don’t need them unless this is the first time you’ve purchased from Smartphone. Quality: The silk paper stock for the box and “how to use” card are extremely high quality, with a soft, rich finish, a dull varnish, a slightly creamy color, and a silver metallic foil stamp on the Smartphone logo. Even the box feels great to the touch. Instead of looking for ways to save money with a cheap box and an inexpensive paper stock, Smartphone made the package an extension of the product itself. Main strategiesof smartphone companies: 1. Know what your customers expect from your brand and deliver it in all aspects of your product, from the product design to the package you ship it in. 2. Your brand is much more than your logo: it’s everything the customer experiences when they interact with you. Evaluate all your customer touchpoints to be sure they truly reflect your brand. 3. Simplify your message and communicate it as directly as possible. Edit copy to its essence and wherever you can, use visuals to make your points. 4. Be you, all the time. Great brands convey a company’s persona and they do it so consistently that the company feels like something more than a commercial enterprise. Your brand persona should be a reflection of who you are and what makes you different from every other company in your marketplace. Keep it consistent and keep it real. Topic 5: Pricing Strategy The smartphone market is today becoming increasingly polarized between high-end devices from Samsung and Apple, and low-end smartphones being rolled out by Chinese OEMs such as Huawei and ZTE. As Apple’s dominance declines, new players emerge and middle ground players struggle to find their niche the industry is undergoing a next wave. Ultimately, many companies have realised that it makes sense (at least in India) to adopt a ‘skimming’ price strategy – a name derived from the action of skimming layers of cream off the top of milk. Since the class divide is so wide and people with deeper pockets tend to (and want to) pay more for exclusivity, the skimming makes sense – it grants the exclusivity to those who desire it and maximises profits for the company.
  • 15. Page | 15 Here’s how skimming works – you start by artificially inflating the price of a new, much-hyped phone. You can generate hype by announcing the release of the phone way before it’s actually available. You can generate hype by starting pre-orders for the device (without a declared final price). The pre-order supposedly ensures that you get preference over others for delivery. You engineer ‘leaks’ in the press and social media, where a pricing is given out so that you can gauge reactions. All this is step 1. Step 2: Launch the phone at the artificially inflated price but at the same time, tie up with leading banks to offer cash back schemes – as much as 20% (a maximum of Rs 5,000 off) – for anyone who purchases with a credit card. This works in two ways – people with tons of black money don’t care anyway – they’ll just spend the extra cash. The early adopters with deep pockets full of white money will get Rs 5,000 off on launch date. Step 3: Keep a close watch on sales – as soon as they start dipping, it means that the first couple of layers of customers have been successfully ‘skimmed’. Then, announce a buyback scheme wherein you get an absurdly high buyback amount for your ratty old phone – a price that you never thought possible and in some cases, higher even that the price you originally paid for it. This step also involved trying to convince everyone that there are limited stocks and that this is a limited time offer. This layer has to be skimmed fast, you see? Wait too long and the other genuinely interested people who want to pay a lower price will get put off and more attracted by another new phone model. It’s been about 2 to 3 months since launch at this stage. Step 4: Reduce the sticker price by a substantial amount – this is when the phone starts looking like a good deal. This price reduction applies without any cash back or buy back scheme. At the same time, interest free EMIs can also be announced – interested buyers can split up the total cost into 3, 6 to 9 EMIs without any added interest charges. Topic 6: Promotion strategies When we say promotion, we have image of advertisement in our mind. Although there are plenty of other methods to promote your products or company but advertisement is key focused element of promotion. Advertising is art of promoting yourself through different media. In the complex environment where everything is getting changed and being systematic, advertisement is also being converted into a whole subject.
  • 16. Page | 16 5 m of advertising - 1. Mission -Mission statement of any Smartphone, advertisement a component of promotion is also having a clear mission that what they want to achieve through advertisement. In this head, they set their mission, goals and objectives to analyse that what we are going to do and what we will get through this act. 2. Money – They are always showing their advertisement product price with an attractivemanner through value, price,value methods .so target audience more attract with the value and what benefits they are going to get after buys Smartphones. 3. Message - The message is that idea, information, literature and theme you want to communicate to your target customer. The message will be decided according to the target customer because you will definitely only transfer important information to your target audience but a trash. 4. Media – Online, offline, TVC,newspaper etc. 5. Measure -Same like marketing strategy, evaluation and measurement is an essential step to end advertisement strategy. Without evaluation, how you can identify that you achieve your objectives? Sam in case of advertisement, you have to measure your advertising strategy that either you get the same return or not. Again, measurement depends on media selection. Every media has its own measurement techniques. BTL strategy – ATL- Promotions of Smartphone are known to be fantastic and might range from a full front page ad on the launch of the product, promotions in the radio, the television and what not. Whenever a new phone is being launched, be sure to see Smartphoneeverywhere, on each and every ATL platform. Because they are targeting a premium segment, the presence of SmartphoneSmartphoneis higher in the ATL segment
  • 17. Page | 17 than in the BTL segment. The interesting thing here is the taglines in newspaper ads because many of the Smartphoneads are known to come up with the most interesting taglines for the new phone. BTL – BTL marketing, Smartphone uses out of home advertising with hoardings and point of sale advertising in major retail outlets. It also uses various forms of sales promotions and exchange offers to lure in the customer via BTL marketing. Topic 7: Channel Strategies : Present across the globe with a fantastic service backup – Smartphone factory is present across many countries and nations and is known to provide an excellent service backup in all these countries. The target of Smart phonemarket is mainly consists of different kinds of customers. Smartphones stores are found in premium places and malls –phonehas named its retail counter as the store keeping in line with the complete product line of Smartphone which starts with I resulting in an immediate personal connect with the customer. These I stores of Smartphone are found in malls and premium areas in premium cities across the complete country wide network. Distribution happens through CNF >> Modern retail or Distributor >> Retails – All modern retail outlets are distributed the Smartphonethrough a carrying and forwarding agent. On the other hand, individual retailers are given the product through distributors. Finally, the I stores which are the exclusive showrooms, are given the product directly from the company at best discounts. Corporate tie up – Smartphonecompanies also have a corporate sales department for the Smartphonewhich does corporate tie ups for the company. When Blackberry announced its exit from the handsetmarket, newsmartphones came into the picture and did many corporate tie ups to replace itself as the handset with all top CEO’s and managers who were previously using Blackberry. Thus, it could take over a major market share left over by Blackberry. E-Commerce –Smartphone product is also available on Flipkart, Amazon, Snapdeal and others online platforms.
  • 18. Page | 18 Section 2: Brand Management Topic 1 - Brand: A brand is a name, term, sign, symbol, design, slogan or a combination of them, intended toidentify the goods or services of one seller and to differentiate them from those ofcompetitors. The brand is Amazon. The arrow which looks like a smiling face in Amazons logo has a strong meaning behind it .It is a representation of wide range of items available for retail by amazon, from A to Z. "Earth's Most Customer- Centric Company" the slogan of Amazon. Where customers want to find and discover anything they want online, and at the most lowest possible prices that it will endeavour. Topic 2- Attributes- product-focus, customer-centricity, a focus on value creation rather than revenue, and a willingness to head off disruption by disrupting themselves. Benefits- Amazon.com has the ability to offer shopping convenience, ease of purchase, speed, decision-enabling information, a wide selection, discounted pricing, and reliability of order fulfilment. These are tied directly to the company’s logistical competencies. Values- The core values are:  Customer Obsession
  • 19. Page | 19  Ownership  Invent and Simplify  Are Right, A Lot  Hire and Develop the Best  Insist on the Highest Standards  Think Big  Bias for Action  Frugality  Vocally Self Critical  Earn Trust of Others  Dive Deep  Have Backbone; Disagree and Commit  Deliver Results. Culture-Amazon.com Inc. has an organizational culture that enables business capacity to respond to the demands of the e-commerce market. A company’s organizational or corporate culture sets the traditions and values that influence employees’ behaviours. For example, Amazon’s corporate culture pushes employees to go beyond traditional limits and conventions to develop bright ideas and solutions. As the world’s top-performing online retailer, the company continues to seek fresh talent. The main characteristics of amazon’s culture are : 1. Boldness 2. Customer-centricity 3. Peculiarity
  • 20. Page | 20 Personality- Value- Amazon keeps some things consistent. Its value proposition remains price and convenience no matter the product or service, and low prices can be sustained by ensuring its customer relationships continue to be mostly automated and self-service.
  • 21. Page | 21 Topic 3 The branding components of Amazon: Added features: When we are remembering about the brand name Amazon that means for us various collection of products, price is low, a good return policy, now they are also gives one day to two day delivery so this is a added feature of their brand reliability. Brand Name: Brand represents that A to Z that means you will be getting every kinds of product through their websites. Corporate branding: The brand valueof amazon is very high because of his brand awareness,and they are using their name on other resources because corporate branding is very much required as a brand. Packaging and Design: As a brand logo, they have to be very simple and packaging oriented which may be easy to recall their brand name place of others competitors name. When amazon created their brand logo they put an arrow from a to z that shows that they have a to z products which you requited I your daily life. Fulfilment: This is a very important phase for a brand they have to fulfilment theirpromises and they have to focus on their customers and to the brand image. Image and reputation: A brand like amazon which is already created their name the market they always very concern about their image and reputation because if they are taken any wrong decision that will be an advantage to the competitor for like in case of amazon the advantage taker will be snapdea land flipkart because they are the major player of online e commerce sector.
  • 22. Page | 22 Topic 4 POP: Point of parity means this is the difference that competitor has over you and it’s have to do counterattack. It’s different with his two contributes 1. Competitive 2. Category. Competitive -Compete with the other brands, which brands are belonging to the same market or different sectors. Category –A category point of parity means that the brand offers necessary category features. Amazon provides a large number of category features like apparels for men & women, electronics, households, e-books, stationary, sports & fitness products etc. POD: Point-of-difference is attributes or benefitsconsumers strongly associate with a brand, positively evaluate, and believe that theycould not find to the same extent with a competitive brand. Amazon is known toeveryone is best for is delivery policy and their kindle and others services that is very unique. They are also very well known for their collection new range of new accessories which is always launched first on their website platform like redmi3 and others xiomi mobile , Lenovo products also they are the only exclusive partner.
  • 23. Page | 23 Topic 5 Amazon create their positioning strategies in the way where theyposition their self for the every type of customer, they does not want to restrict themselves to a limited extent andthey are explaining through their logo in their logo they use anarrow to A to Z that clearly shows that that have that kind of variation and they not only for the premium class. The arrow represents also a big smile to the customer after buying the product from their websites. They position themselves in this manner wherepeople visit and buy through different medium and also avail their exclusive offer and feel their window shopping, and their shopping experience became a real experience to the customer. Theypositioned themselves that the customers are becoming more brand royal to the amazon and they not shifted to the other e commerce websites, for that they are always give sudden discounts & offers like:  Subsidised Item Cost: Amazon, Flipkart or for that matter any other e-commerce company subsidise the cost of certain trending items to increase their consumer base. Once you have got a good discount, liked their service, you are bound to come back. That is the mantra on which such discounts are offered. These kinds of discounts help us save some money.  Coupons: Again, this is one kind of promotional measure to increase their consumer base or in some cases retain their customers; they would send us exclusive discount coupons which can be availed by applying on final check out. Again, it saves us some money.  Promotional festivals: During such festivals, they sell products cheaper than almost everywhere. Discounts might seem illogical but they are REAL. Such festivals are a huge PR campaign for all these sites. They attract new customers, advertisers, merchants and investors. Taking example of Big App Shopping Days, lot of people have bashed Flipkart for not being able to pull it off the way it was advertised. But at a personal level I got a few things very cheap, which I wanted to buy since a long time.  Bank offers: Has to be real. Still, be careful about the product you are buying. Your bank has nothing to do with the listing of that particular item.  Delivery Offers: Sometimes Amazon provides delivery discounts like no COD (cash on delivery) charges from the customers to special customers who regularly buys products from the online portal.
  • 24. Page | 24  Effective Aftersales service: good return and refund and easy exchange policies followed a good customer hep care support service enables customers to rely on Amazon for making their purchase decisions.
  • 25. Page | 25 Topic 6: Five steps of brand strategies- 1. Conduct effective market research: When a company just started their journey then they became only name but when they are in the middle journey of their businesslife then they organized effective market research for a brand research is the main part because then they looking for huge investment and brand extension is also happen so for that they have to need a great strategies for established their name as a brand in the market. 2. Focus on a unique value proposition:Amazons USP includes: -  Low price  Guarantee & warranty  Wide choice of products  Good quality  After sale service  Convenience & speed of service  Customization possible and knowledge about products of wide variety 3.Choose a brand name that delivers your message clearly- In case of amazon that clearly shows that A to Z. 4. Emotional connection Amazon has a strong emotional appeal with their customer. The ad campaigns are both verbal as well as non-verbal in nature. The famous tagline “khusioki delivery” has a lot of emotional connect with it. The ad features about festive season’s family bonding love and care for people at the same time showing the variety of products available in their website giving customers a wide variety of choice. The ad campaigns during Christmas, New year, Indian festivals, Halloween etc. amazon makes ad campaigns on the basis of each festivals to not only highlight the festival but also brings about togetherness of the customers. 5. Deliver constant communications Amazon is constantly researching and coming up with new and interesting communications so that their message is heard to the entire world about what amazon does.