ECO701: Data Analysis for Managers

Action Learning Project

TEAM 5:
Jhivyasshiny Thamil Selvan
Lim Jun Hoh
Mak Yan Keai
Mohammad Budruddin
Tan Wei Shen
Yeong Zhi Sheng
Table of Contents
INTRODUCTION............................................................................................................................................ 3
WHAT ARE THE CHARACTERISTICS OF SINGAPORE'S MOBILE RETAIL?............................................................4
WHAT ARE THE CONSUMERS' USAGE AND BUYING HABITS, AND PREFERENCES OF MOBILE PHONES AND
ACCESSORIES?.............................................................................................................................................. 5
WHAT ARE BEST PRACTICES IN RETAIL SALES AND MARKETING?...................................................................6
WHAT RECOMMENDATIONS CAN BE PROVIDED TO A COMPANY TO SUCCESSFULLY COMPETE IN THE MOBILE
PHONE RETAIL BUSINESS IN SINGAPORE?..................................................................................................... 8
CONCLUSION.............................................................................................................................................. 10
REFERENCES............................................................................................................................................... 11
APPENDICES............................................................................................................................................... 13
Introduction

In this paper, we are going to analyze the mobile phone retail industry in the Singapore in
terms of the mobile phone usage, preferred method of purchasing and general
demographics background of participants. In this report, we will also suggest on the best
practices in retail sales and marketing in order in remain competitiveness in the industry.

In the data given, it has 24 questions covered from demographics and preferences to
understand more on the consumers’ behaviors in terms of mobile phone. After analyzing
the data, we can provide the right strategies for the mobile phone retailers in Singapore on
operation, merchandising, marketing, and supply chain.
What are the characteristics of Singapore's mobile retail?

We have identified a few characteristics of Singapore's mobile retail. On the gender and age
group, the majority high spender for mobile retail would be female, aged between 26 to 33
years old (Appendix 1). Besides, the ethnic group of responses we have collected has given
essential information on the characteristics. Chinese is most of the population, which has
about 2.9 million in Singapore, amounted to 85% out of 400 responses. According to
Appendix 2, the primary household income group in this survey would be more than
S$6,500, which is 113 participants. Appendix 3 has given another view in the relationship of
age group and household income which age group of 18 to 25 would be the least earner.
Appendix 4 has shown that the Sales/Marketing and Advertising industry has contributed
13.75% in the 400 responses while Banking Industry has become the second. This would
indicate that the majority of the participants are professionals and would rely heavily on
mobile phone use.

From the socio-economic perspective, we can conclude that iPhone has become the most
profitable mobile phone brand for all income groups. Samsung is the second most favorable
(Appendix 5) regardless of income group. According to Globalstats (n.d.), Apple has
generated 25.17% while Samsung has gained 17.98% of mobile market share in Singapore.
Additionally, we identified that, although there are several budget ranges for mobile phone
selection, most income groups will not go for the highest budget range, which is S$2,000
and above. They would go for a more affordable option of S$201 – S$500 (37.5%) out of
100% (Appendix 6). Central of Singapore has become the most favorable purchasing
location on the mobile purchasing location, which is 26.75%, while the least good place
would be West of Singapore (6.25%). Lastly, Appendix 7 has shown that the most preferred
frequency of changing mobile phones in two years would be once every two years, which
has 75.5%, while only one percent for more than four times in two years.
What are the consumers' usage and buying habits, and
preferences of mobile phones and accessories?

A set of data has been collected to determine the sensory marketing factors towards sales
of mobile phones in Singapore. According to Statista (2017), 79% of people would purchase
a protective casing for their smartphones. With the advancement of mobile technologies,
mobile phones are more fragile to reach a higher level of revolution and cause the need for
protective cases (Kunst, 2019). Hence, on the data set that we have, protective casing and
screen protector for mobile phones is the highest in response which is 116 participants and
followed by 82 participants with additional one accessory (Appendix 8). From the
perspective of color selection of mobile phones, 281 of 400 participants chose black,
contributing up to 70.25% of the entire data set (Appendix 9). A wide selection of colors for
a mobile phone would not be a significant factor for consideration. Evergreen colors such as
black would generate more sales for the retail.

Additionally, it shows that the preferred mobile phone system of iOS & Android amounted
to 40%, whereby Android user is 32% and iOS is 28% (Appendix 10). It shows that most
participants are not particular with iOS or Android, and the distribution is even. Most of the
participants have either selected Apple or Samsung as their preference, but we noticed that
those who use iPhone have a higher rate of changing a new phone in 2 years than Samsung,
which 56.82% and 18.47% (Appendix 11).

Furthermore, on the preferred purchasing channel of participants, most of them would

prefer to purchase the products solely in store which amounted to 60% and followed by
online and in store of 29.25% (Appendix 12). From here, we can conclude that, majority of
the participants would prefer to “feel” the products and opt for offline purchasing channel.
On the other hand, participants would opt for purchasing online or in-store for their mobile
phone accessories which amounted to 39% while in-store only would have 32.5% (Appendix
13). In short, if it is expensive buying such as mobile phone, participants would opt for in-
store purchase while they are comfortable to purchase online or in-store when it comes to
mobile phone accessories.
What are best practices in retail sales and marketing?

Based on the customer satisfaction level pie chart, most participants are satisfied with the
overall services. There are a few core service expectations that participants will expect
during their visit to the store, such as service with a smile, efficient service, good product
knowledge, patient staff, and faster waiting time. Therefore, we can summarize that all
these aspects are related to a fast-paced buyer journey. This is mainly because Singapore is
a fast-paced society, and consumers expect things to be delivered in the shortest time frame
possible during the buying process and the transportation and logistics (Wong, 2003).

Besides, service with a smile and good product knowledge are also expected when the retail
staff service the consumer. Participants expect the store and workers to be ready and well
equipped during the buying process. In research from Pugh (2001), workers' good emotions
are linked to customers' pleasant feelings after service encounters and their ratings of
service quality.

Product training sessions should be introduced and implemented once a month to ensure
that staff is equipped with the latest knowledge to project a more convincing appearance to
the customers. Having sufficient product knowledge helps the staff quickly identify
customers' needs and push the appropriate products. It would assist the staff to better and
faster sealing the deals when one is equipped with the knowledge. If workers' are well
equipped with product knowledge, its authenticity also increases. Personal authenticity will
boost buyers' purchase intentions (Matthews et al., 2020).

According to the pie chart problems encountered when purchasing a mobile phone, long
waiting time is the most significant issue faced by almost all participants. The store can look
into alternatives like portable counters and hand-held devices to slash the waiting time
whenever the store is crowded. Workers can be armed with handheld barcode readers and
approach customers when ready for billing. With such initiatives, the long waiting time can
be slashed, and the overall buyers' journey will improve (Johri & Oswal, 2019).
To conclude this part, developing trust in the customer relationship is essential in the retail
industry. Frontline workers will need to develop their own best practice from time to time
so that they can quickly understand their customer's needs and tends (Ruff, R., & Spirer,
J. ,2011).
What recommendations can be provided to a company to
successfully compete in the mobile phone retail business in
Singapore?

Singapore is one of the destinations for mobile phone developers to release their latest
models and attract buyers from Southeast Asia who would chase after the trend of mobile
phones (Müller, 2021). Mobile phone retailers need to develop the right strategies to
remain competitive from the competition. We have a series of recommendations to share
with the mobile phone retail business in Singapore after analyzing data.

Firstly, we would suggest that the company can develop corporate partnerships with
Sales/Marketing/Advertising and Banking Industry to provide company mobile phones to
their employees. A corporate rate can be introduced to increase the sales volume by
dominating the market shares in the mobile phone industry. Assuming that the sample
represents the whole mobile retail market, the two industries mentioned would have
covered more than ¼ of the entire market. Both industries are heavy users of mobile
phones.

Secondly, introducing an easy payment or installment plan method would boost the sales
volume. As we conclude, most income groups will not go for the highest range of mobile
phone selection as it creates a burden to their financial status. Introducing an installment
plan with attractive schemes would encourage customers to spend and enjoy the perks of
having the highest range of mobile phones, which eventually improves company profit.

Furthermore, mobile phone retailers can segment product range by location as Central of
Singapore (26.75%) has higher sales than the outskirt location such as West Singapore
(6.25%). Mobile phone retailers can allocate more products in Central compared to West. It
causes a pull marketing effect to Central as the marketing budget can be utilized efficiently
by targeting Central Singapore to maximize the sales.

Additionally, mobile phone retailers can focus on selecting colors and reduce the order of
less-popular colors. It helps reduce the cost of purchasing less demanded colors and
maximize the popular color stock, allowing the business to sell more. A more focused
campaign can be developed to tackle the sales better, effectively, and efficiently by having
fewer choices. It applies to mobile phone accessories as well. For instance, less-demand
mobile phone accessories can be omitted as customers can opt for purchasing online.

Lastly, mobile phone retailers can create more marketing campaigns, such as a mobile
phone bundle with accessories. Mobile phone accessories would help the company increase
the average order value and boost the profit margins. The company would need to gather
market insights and have sufficient stocks to ensure that your products increase sales
(Khwaja, 2018). Cross-selling can increase revenue for the business and increase customer
satisfaction at the same time. A successful deal on cross-selling can develop better customer
relations as they know the service provided by the company is up to their expectations.
Conclusion

To conclude, the smartphone is a common gadget among the local population in Singapore
and has also become a common accessory as seen by the penetration rate of 150% as at Jun
2016 (Infocomm Media Development Authority, 2016). Most Singaporeans now have a
smartphone (87% in 2021), so replacement purchases are the main driver of demand. Local
consumers typically buy a new smartphone every 18 months (Euromonitor
International,2021).

When manufacturers and marketers are able to design a product that satiates the
customer’s hedonistic dimensions as well as market the product effectively, the brand
would have augmented its brand equity (Tan, 2017). Given the scope of this questionnaire,
the sales of phone pattern in Singapore suggests that consumer’s economic background also
plays are part in the retail sector.

Innovative measures in the current measure to digitalize the world ecosystem specifically in
the mobile market would greatly advantage the sales and market of phone manufacturers.
It would also enhance the lifestyle of a consumer, given the wide scope of options and
services that a mobile phone provides.
References

GlobalStats. (n.d.). Mobile Vendor Market Share Singapore | Statcounter Global Stats.
StatCounter Global Stats.
https://gs.statcounter.com/vendor-market-share/mobile/singapore

Johri, S., & Oswal, A. (2019). Retail Shoppers' Buying Behavior and Experience Evaluation:A
study of Reliance Store. Jaipuria International Journal of Management Research,
5(1), 47. https://doi.org/10.22552/jijmr/2019/v5/i1/182298

Khwaja, A. (2018, January 30). Reasons Why Mobile Phone Accessories Market is on a
Growth Trajectory. Entrepreneur. https://www.entrepreneur.com/article/308254

Matthews, L., Eilert, M., Carlson, L., & Gentry, J. (2020). When and how frontline service
employee authenticity influences purchase intentions. Journal of Business Research,
114, 111–123. https://doi.org/10.1016/j.jbusres.2020.04.002

Mobile Phones in Singapore. (n.d.). Euromonitor. https://www.euromonitor.com/mobile-

phones-in-singapore/report

Müller, J. (2021, April 7). Smartphone market in Singapore - Statistics and facts. Statista.
https://www.statista.com/topics/5842/smartphones-in-singapore/

Statistics on Telecom Services for 2016 Jan. (n.d.). Infocomm Media Development Authority.
https://www.imda.gov.sg/infocomm-media-landscape/research-and-statistics/
telecommunications/statistics-on-telecom-services/statistics-on-telecom-services-
for-2016-jan

Tan, D. (2017, March). Consumer Choice Criteria for Smart Phones in Singapore. Research
Gate.
 https://www.researchgate.net/publication/331477630_Consumer_Choice_Criteria_f
or_Smart_Phones_in_Singapore

Appendices
Appendix 1: Age Group vs Gender

Appendix 2: Household Income per month

Appendix 3: Household Income vs Gender

Appendix 4: Work Industry

Appendix 5: Household Income vs Mobile Phone Brand

Appendix 6: Percentage of Mobile Purchasing Budget

Appendix 7: Frequency of Changing Mobile Phone in 2 years

Appendix 8: Mobile phone accessories

Appendix 9: Color selection

Appendix 10: Mobile phones window system

Appendix 11: Percentage of changing mobile phones in terms of iOS and Android

Appendix 12: Percentage of mobile phone purchasing channel

Appendix 13: Percentage of mobile phone accessories purchasing channel