"Is Nokia Market Leadership Is in Danger?": Survey Report
"Is Nokia Market Leadership Is in Danger?": Survey Report
"Is Nokia Market Leadership Is in Danger?": Survey Report
SUBMITTED UNDER PARTIAL FULLFILMENT OF THE REQUIREMENT FOR THE AWARD DEGREE OF THREE YEAR (FULL TIME) BBA.
(SESSION-2010-13)
SUBMITTED TO :Ms. INDRANI SEN GUPTA LECTURE SMS VARANASI VINEET KUMAR PANDEY Roll No- B/14/104 SUBMITTED BY :-
SUBMITTED UNDER PARTIAL FULLFILMENT OF THE REQUIREMENT FOR THE AWARD DEGREE OF THREE YEAR (FULL TIME) BBA.
(SESSION-2010-13)
SUBMITTED BY :-
DECLERATION
I hereby declare that the project entitled Metal works, Brass Industry in U.P. Submitted by Punit Singh to Manyawar kashiram Institute of Tourism Management, Lucknow for the state level Guide Training Programme 2012-2013 is a record of original work carried out by me.
PREFACE
This survey has been conducted to check the fact that NOKIAS MARKET LEADERSHIP IS IN DANGER . The basic objective of this survey is to see the market standing of Nokia mobile phones in comparison to its rivals like Samsung, Blackberry, Micromax etc. This project is carried out to translate the theoretical knowledge of the subject into the field work. This project is carried out in the partial fulfillment of the BBA course of School of Management Sciences, Varanasi.
ACKNOWLEDGEMENT
It is my pleasure to thank all who helped me directly or indirectly in preparation of this project. It is a great privilege to record my deepest sense of gratitude to all the people who stood by me throughout the making of this project. The first person I want to thank to the director of kashiram Institute of Tourism Management, Lucknow Dr. Manoj Dixit for providing us with an excellent environment for developing this project. I also reserve my special thanks to Dr. Manoj Dixit for his benevolent guidance, heart felt encouragement and constructive criticism for that helped me immensely in the development of this project. Finally my gratitude goes to all the teacher of Institute of Tourism Management, my friends, my family members for their perseverance and cooperation with all their blessings. Without their support my project would not have taken its present shape. Hope you will appreciate my effort.
TABLE OF CONTENTS
INTRODUCTION SWOT ANALYSIS
RESEARCH OBJECTIVE
FINDINGS CONCLUSION
LIMITATIONS BIBLIOGRAPHY
ANNEXURE
Nokia Introduction
Nokia is the world leader in mobility. They make a wide range of mobile devices, services and software that enable people to go beyond communications to navigation, music, video and more. Nokia is not only the world leader in mobile phones. They are also the worlds largest camera manufacturer and a leader in digital music.
Mobility has the power to help economies grow and societies develop. It is changing the world, in developed and developing countries alike. Their vision is to release this potential by extending mobile access and allowing people to do more on their mobile devices. Nokia is a truly global company, headquartered in Finland. They have sales in more than 150 countries. Nokia has worked in partnership with WWF since 2003 to raise environmental awareness among our employees and on othis environmental activities.
Nokia joined several othis major mobile manufacturers in 2007 to sign a voluntary agreement based on the results of the European Commissions Integrated Product Policy pilot project on mobile phones. The project focused on finding how the mobile phone industry can reduce the environmental impact of its products throughout their lifecycle.
Produce an index of environmental facts for each mobile product to enable consumers to compare products easily. Increase consumer communications about unplugging the chargers and safe disposal of phones. Include a default on-screen message on all new products to unplug chargers once the phone is fully charged.
Nokia is the innovation of long term plans in mobile industry in Pakistan as well as in international mobile industry . Introduction of Nokia is the basic need of that time and having the biggest mobile exposure in information technologys world. Nokia is come up with the name of inventions and realities behind the ITs world.
Fredrik Idestam established a wood- pulp mill and started manufacturing paper in southisn in 1865 in southisn Finland near the banks of a river. Those were the days when thise was a strong demand for paper in the industry, the companys sales achieved its high-stakes and nokia grew faster. Afterwards Nokia decided to enter in the mobile phone industry. No one had the idea that this company would become the most dominant company in the mobile phone industry. Nokia is now the largest mobile phones selling company and people admire Nokia a lot. Nokia has came a long way and now people have faith and trust in Nokia. On an average every third mobile phone is a Nokia mobile phone in the whole world. Nokia mobile phones have become a must have gadget in the latest era.
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Nokia-Connecting People: this slogan is known all over the world. Nokia employs 50, 000 people in 120 countries. Currently every third mobile phone sold in the world is a Nokia. The Nokia Company is today one of the worlds leading high tech companies. Its rapidly growth in the 1990s coincided with a basal structural change of the Finnish economy and industry. In this restructuring process Nokia played an important role. Despite the fact that Nokia is a leading multinational company, a major part of its business is located in Finland. Nokia plays a significantly role in the economic growth of Finland, which has been one of the fastest in whole Europe. A lot of brands selling and manufacturing cell phones and mobiles are in the market but Nokia cell phones are the leaders in the race. With over a dozen varieties and models lining up every day the customer is left in confusion as to what to buy. With the market gearing up with new companies in the foray Nokia manufactures have accepted the challenge. They are coming up with latest technologies being put to test. The company believes in customer satisfaction and that is the success of their being the leaders in cell phones. Nokia has a number of models to offer like the Nokia 1000series, Nokia 2000series, Nokia 3000series, Nokia 5000series, Nokia6000series, Nokia 7000series, Nokia8000series, Nokia9000series, Nokia E series, Nokia N series, and othiss.
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These cells come in slides, flips, smart phone and standard models. The brand boasts of varied features like Bluetooth, color screen, 3G, GPRS, GPS, IRDA, Infrared, Java enabled, MMS enabled, MP3 player, Polyphonic ring tones, Radio, Snap on cover, USB, Streaming video, Vibration, etc along with cameras with VGA camera, 1-1.9 mega pixels, 2-3.5 mega pixels, 3.5mega pixels and more. The Nokia cell phones has something in terms of design and its user-friendly features are unremarkable. The Nokia Company also provides a host of accessories which come along with the hand sets like chargers, batteries, ear phones /headset and the manual which describes how to use the piece. Thise are othis accessories like cases and pouches, chargers, data cables, enhancements, faceplates, Hands free headsets. You can also buy othis accessories which enhance your set. The othis fancy accessories are chains, flashiss, holders, LCD screens, Scratch guard, stylus, memory card readers, etc. Nokia mobile phones have a wide price range. Depending on the price are the different features installed. But the basic purpose is served whatever be the price. Nokia phones are a must own gadget these days.
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While buying a product consumers are prone to various demographic changes. These changes affect their buying behaviour.
YOUNGSTERS- their buying decision is influenced mainly by the fashion or trend, latest model, prestigious brand etc., basically for them its the need of fashion , style. their buying decision is influenced by their peer group , friends and relatives. 30 TO 45 YEARS- their buying decision is always affected by the need. Their buying is someway affected by the going on trend but in the boundary of their purchasing power. Their buying decision is influenced by the price , quality etc. SENIOR CITIZENS- their buying decision is affected by the need of being connected with othiss. It is the need of their age. They generally buy simple and cheap phones so that they can use it easily.
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AREA/LOCATION
METROPOLITAN CITIES-as life is very fast in metropolitan cities their buying decision is influenced by their high lifestyle, wealth, their status in the society and moreover the fashion or trend. In most cases they are least bothis about the price for them fashion ,trend, quality comes first. RURAL SECTOR- their buying decision is influenced by the income. Nokia offers product range of varying prices from low to high helps the consumer in their buying decision according to their purchasing power. Their buying decision is influenced by the price , affordability, ease of use, services providing good value etc. URBAN SECTOR- their buying decision is influenced by the need of the hour, their purchasing power, available model. Their buying decision is influenced by the fashion, trend also as some of the population in urban sector is influenced by the fashion.
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MARKETING CONCEPT
Nokia is a consumer led company. Thise is a progressive and continuous increase in consumer involvement with technology and communications globally. People are broadening their modes of communication to include the web and, social networks are becoming central to how people communicate. People want to be truly connected, independent of time and place, in a way that is very personal to them. And, Nokias promise is to connect people in new and better ways. Nokias strategy is to build trusted consumer relationships by offering compelling and valued consumer solutions that combine beautiful devices with context enriched services. Trusted consumer relationship Maximize nokias lifetime value to consumer Best mobile devices everywhise Take share and drive value across price bands and geographies Enhance and capture market growth in emerging markets Context enriched services Take share of the internet services market by delivering winning solutions. Take share of business mobility market.
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Complex buying behaviour The buyer develops a believe about the product. He develops attitude about the product. Lastly, he makes a thoughtful choice. Dissonancy Reducing buying behaviour. Sometimes the consumer is highly involve in purchase because it is risky, expensive, and infrequent. But sees little different in brand. Variety seeking buying behaviour Some buying situations have low involvement but significant brand differences- consumer do a lot of brand switching.
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DISSONANCY
MARKET POSITION
Nokia is the world leader in mobility. Nokia have been a pioneer since the industrys infancy in the 1980s and are now leading the convergence of mobility and the Internet. They make a wide range of mobile devices, services and software that enable people to go beyond communications to navigation, music, video and more. Nokia is not only the world leader in mobile phones. They are also the worlds largest camera manufacturer and a leader in digital music. Mobility has the power to help economies grow and societies develop. It is changing the world, in developed and developing countries alike. Their vision is to release this potential by extending mobile access and allowing people to do more on their mobile devices. Nokia is a truly global company, headquartered in Finland. They have sales in more than 150 countries. They are focused on continuing to lead the mobile devices market, and growing consumer Internet and business services. They have made several strategic acquisitions to help them achieve this, including Loudeye, a leader in digital music platforms, the media sharing company Twango and the mobile advertising company Enpocket.
Nokias biggest competitors are Ericsson Blackberry Motorola, Inc. Samsung Electronics
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MARKETS
39%
This graph shows the market percentage contributed by different regions of the world. According to this graph out of the total market of Nokia 39% is contributed by Europe only, 22% by Asia pacific, 14% by Middle east and Africa, 12% by China and finally 13% by the America continent which includes both North America and Latin America.
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Nokia company target all age groups people (youngsters, housewives, working men and women, old people). They are operating globally . Nokia produces mobile phones for every major market segment and protocol, including GSM, CDMA, and W-CDMA. Nokia company plans to focus on rural cities also and creating products keeping in mind their needs ,income groups etc.(products offered like nokia1100,1110 and so on.)
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NEED CHART
PRICE RANGE Rs. 7000 to 12000- Physiological needs Rs. 13000 to 20000- Social needs Rs.21000 to 40000-Esteem needs
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Nokia is currently the world's largest manufacturer of mobile telephones, with a global device market share . Nokia commits high quality products and excellent backup batteries to their customers. It adds status to the customers lifestyle as its featured products are very expensive. It offers some products which add status and style to customer lifestyle. PRICE RANGE
Rs.7000 TO 12000 PHYSIOLOGICAL NEEDS When the people is in the need of the phone because of his/his nature of work and his /his requirements of life and with the feeling of remain connected with his/his family, close relatives and colleagues. Due to his low income he will prefer low range products which are affordable, reliable and he/she was not able to think about luxury, extra features in the mobile products.
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Rs.13000 TO 20000 SOCIAL NEEDS When the basic needs of people are already fulfilled then he/she thinks about the connectivity, relationship, contacting people etc. in this range he/she thinks over and above the necessity of life.
Rs.21000 TO 40000 ESTEEM NEEDS When all needs are already fulfilled and he/she has remained with extra purchasing power which implies him/his to think about the status in the society, luxury (extra features in the mobile products like high megapixels camera, high sound system etc) and reputation.
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PROBLEM RECOGNITIONThe buying process starts when a buyer recognize a problem or a need.
INFORMATION RESEARCH Through personal source (family, friends etc) Commercial source (advertising, dealers, salesperson) Public source (mass media, consumer rating organizations) Experimental source (handling, examining, using i.e testing the product)
EVALUATION OF ALTERNATIVESThis is done by comparing the characteristics of the alternatives available to satisfy the need.
PURCHASE DECISIONThe consumer forms preferences among the brand in the choice set. The consumer may also form an intention to buy a particular brand but thise are two things that influence them 1). Attitude of othiss 2). Unanticipated situation factors
POST PURCHASE BEHAVIOURIf a product performance falls short off expectations the consumer is dissatisfied. If the performance is as expected , the consumer is satisfied and if the performance is more than expectation the consumer is delighted.
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Need for a mobile to be truly connected, independent of time and place, in a way that is very personal to us.
From friends, relatives, Neighbors, advertisement, newspapers Television, magazines ,internet, radios etc Compare the product of one company with the other company and/or with the past used product. Search for the latest model available in the market and their price. Collect information regarding the features like battery backup, voice clearance, fm radio etc After evaluating all the alternatives available the consumer decides to buy the nokia mobile with all the features the particular customer want and the price that suits to his income.
After making the final purchase the consumer compares the satisfaction he/she derived from the nokia phone with the earlier one and share their experience with the others.
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PRICING STRATEGY
Keeping in mind the need and preferences of the consumers the nokia company provide various products of different price range which complements the income, lifestyle, status, required features of the concerned consumer. Some products that complements the need of different classes
Phone :Nokia 2330 classic Manufacturer: Nokia Price (Indian Rupees): Expected Price:Rs.3100 Description: Affordable handset which supports ovi mail and life tools. It got Radio and a web browser. Has an inbuilt VGA camera offer support for applications.
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Phone: Nokia 5300 Manufacturer: Nokia Type: Slide Price:Rs.5500 Features: Bluetooth, Colour Screen, GPRS, MMS enabled, MP3 Player, Polyphonic ringtones, Radio, Snap on cover, Streaming video, USB, Vibration. Camera: 1 - 1.9 Megapixels Bundled Items: Data Cable, Headset, Memory, Charger. N72 Phone: Nokia Manufacturer: Nokia Price: Rs.7500 Features: In pearl pink or gloss black, the new nokia N72 has high-perfomance multimedia at its core, wrapped in a beautiful design. It offers the benefits of versatile photography, entertainment and personal productivity to people who value style as much as high performance. A powerful yet stylish multimedia device, the Nokia N72 is equipped with a 2megapixel camera and integrated digital music player, with dedicated capture and music player keys, an integrated browser, FM radio and support for Visual Radio. 28
Nokia: 7610 Supernova Manufacturer: Nokia Price: Rs. 11000 Description: The Nokia 7610 Supernova is a slide quad-band phone with a 3.2 Mega Pixel Camera, VGA Video recording , TV out and more.
Model: Nokia E Series E61i Type: Smartphone Manufacturer: Nokia Price: Rs. 14,300.00 Description: Colour Screen, 3G, Vibration, Streaming video, Polyphonic ringtones, MMS enabled, Bluetooth, Java enabled, IRDA, Infrared, MP3 Player, GPRS. Bundled Items: Data Cable, Headset, Charger, Software, Memory, Battery
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Phone: Nokia N81 Manufacturer: Nokia Price (Indian Rupees) Price: Rs.25000 Description: A music phone pack with multimedia features.
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SWOT ANALYSIS
Strengths
Experience 142 year of history Strong financial support for R & D (1.4 billion USD) Largest network of selling & distribution Strong customer relation Wide range of products for all class High Resale value compared to othis competitors Durability Long battery life User friendly Global Expansion
Weakness
N Gage is a flop. Low voice quality Less stylish in low priced products Heavy sets Market skimming prices of high sets Unlike I phone apple, Nokia N97 is complex, tough and not user friendly
Opportunities
New growth markets Othis hand held devices Well designed and styled sets Increase their presence in 3G & edge market Improvise on quality of camera Mini notebooks
Threats
China mobiles It has made exact copy of Nokia N96 Cheap & wide range models from Motorola Sales may decline due to global economic downturn I phone apple A fierce competitor for Nokia N97
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RESEARCH OBJECTIVES
To find out Is Nokia market leadership is in danger? To find out the reason if Nokias market leadership is in danger? To get an overview of mobile phones sector industry.
To know about the rivals of Nokia mobile phones. To know about the different consumer preferences regarding mobile phones.
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RESEARCH METHODOLOGY
Universe of the study :- Varanasi, Uttar Pradesh. Sampling unit :- Students of different institutes and colleges.
Statistical tools :- Analysis and interpretation of data will be done using simple statistical tools like coefficient of correlation in order to derive conclusion. Data will be presented with the help of graphs like Bar graphs, Area graphs, Line graph, Pie chart etc.
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37
4%
Yes No
96%
Interpretation When the respondents were asked if they are mobile phone users, out of 100 respondents 96% of the respondents are using mobile phones. On the othis hand the rest 4% of the respondents are not using any mobile phones.
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42% 38%
12% 8%
Nokia
Samsung
Blackberry
others
Interpretation
This Bar diagram shows that out of the 96 respondent(since 4% of the respondents are not using any mobile phones), 42% of the respondents are using Nokia mobile phones, 38% are using Samsung, 12% are using Blackberry and 8% are using othis brand of mobile phones. Samsung mobile phones seem to be a very close competitor of Nokia mobile phones.
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37%
30%
25% 20% 15% 10% 5% 0%
21%
12%
Nokia
Samsung
Blackberry
Others
Interpretation When the respondents were asked that which brand of mobile phones would you like to use. 37% of the respondents wanted to use Samsung mobile phones, 30% wanted to use Nokia mobile phones, 21% wanted to use Blackberry and 12% wanted to go for some othis brand. This Area chart also shows that Samsung mobile phones are getting more and more popular among the mobile phone customers.
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20%
34%
14%
Bar phone Slider Touch screen
32%
QWERTY Keypad
Interpretation
When the respondents were asked that which type of mobile phones they use, 20% respondents said they are using Bar phones. 14% are using Slider phones, 34% are using Touch screen and 32% are using QWERTY keypad phones. This Line diagram also shows that Touch screen and QWERTY keypad phones constitute almost around 66% of the total mobile phone being used by the customers.
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Q.5. Which type of mobile phone would you like to use in future?
40%
35%
35% 30% 25% 20% 15% 10% 5% 0%
33%
21%
11%
Bar phone
Tablet Phone
Touch screen
QWERTY Keypad
Interpretation
When the respondents were asked which type of mobile phones would they like to use in future, 35% of the respondents were interested in using a Tablet phone in future while 11% wanted to use Bar phones, 33% wanted to use Touch screen phones and 21% wanted to use QWERTY keypad. This bar diagram also depicts the consumer behavior that the consumers always want to have something new and they embrace innovations.
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41%
29%
18% 12%
Bar Phone
Slider
Touch screen
QWERTY keypad
Interpretation
When the respondents were asked that which type of Nokia mobile phones they admire the most. 41% of the respondents replied in favor of Touch screen phones, 29% were in favor of Bar phones. 12% said Slider phones and 18% in favor of QWERTY keypad. This line graph also shows that Nokia has a very good image in the minds of customers regarding Touch screen phones.
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Q.7. Which brand provides the best after sales services in mobile phones sector?
9%
23%
38%
30%
Interpretation
When the respondents were asked that which brand provide the best after sales services. 38% respondents favors Nokia, while 30% of the respondents favors Samsung, 23% favors Blackberry and the rest 9% of the respondents favors othis brands. This doughnut chart also shows that customers are satisfied with the after sales services provided by Nokia.
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Q.8. What feature attracts you the most in case of mobile phones?
17% 43%
Durability
24%
16%
Price
Interpretation
When the respondents were asked that which feature attracts you the most in case of mobile phones. 17% of the respondents opted for durability, 24% opted for style, 16% opted for user friendly interface and the rest 43% of the respondents said price is the factor which attracts the customers most. This pie chart also shows that price plays a very crucial role in attracting the customers.
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54%
100% 0%
Interpretation
When the respondents were asked that why Nokia mobile phones are famous among mobile phone users, 54% of the respondents said that it is because of the durability of the Nokia products, 9% said that it is because of the style, 11% opted for user friendly interface of the Nokia products and 26% said Nokia is famous among mobile phone customers due to its reasonable pricing strategy. This column chart also shows that Nokia products are considered as value for money as they last long than the products of othis companies.
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Q.10. Are you satisfied with the cell phone you are using?
61%
39%
No
20% 0%
Yes
Interpretation
When the respondents were asked if they are satisfied with the mobile phone they are using, 39% of the respondents seemed to be satisfied with the mobile phones they are using. On the othis hand 61% of the respondents were clearly dis-satisfied with the mobile phone they are using.
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73%
80% 60% 40% 20% 0%
27%
Yes
No
Interpretation When the respondents were asked if they think Nokia has a good goodwill then 73% of the respondents said that YES Nokia has a good goodwill in the minds of the mobile phone customers. On the othis hand 27% of the respondents doesnt agree that Nokia has a good goodwill.
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45%
55%
Yes No
Interpretation When the respondents were asked to give their opinion on weathis they think that Nokias market leadership is in danger, 55% of the respondents said YES. On the othis hand the rest 45% said NO they dont feel that the Nokias market leadership in mobile phone sector is not in danger.
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44%
45 40 35 30 25 20 15 10 5 0
36%
14% 6%
Any other
Interpretation
When the respondents were asked Why do they think that Nokias market leadership is in danger,36% of the respondents said it is due to competitors low model price, 44% told that it is due to the competitors model features, 14% favored competitors model designs and the rest 6% told othis reasons.
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FINDINGS
After conducting the survey I found that out of 100, 4 people are still not using any mobile phones. Out of all the mobile phone users most of the respondents are using eithis Nokia or Samsung mobile phones.
Samsung is turning out to be the strongest competitor for Nokia. People want to use Samsung mobile phones more than they want to use Nokia mobile phones in future though at this point of time majority of the people are using Nokia mobile phones. People admire Nokia phones because of its good after sales services and the durability of the cell phones made by Nokia. Most of the people are not satisfied by the cell phones they are using currently. Goodwill of Nokia mobile phones in the eyes of the customer is very good. Thise is a mixed response of the people regarding Nokias market leadership will continue or not.
Thise is a scope of growth of mobile phones industry as some people are still not using mobile phones.
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Majority of the people are using eithis touch screen phones or QWERTY keypad mobile phones.
Most of the people are willing to use tablet phones in the future if it comes within their budget. People admire the touch screen phones made by Nokia more than the othis type of phones made by Nokia.
People are now more concerned about the applications and facilities provided in the mobile phones rathis than the durability of the mobile phone.
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CONCLUSION
After conducting the research I found out that YES Nokias market leadership is in danger. The biggest threat to Nokia is Samsung.
Nokia being the pioneer in mobile phone industry has a very good goodwill among the customers but Samsung is also getting very popular at a rapid pace. Samsung is providing more features to the mobile phones and keeping the cost of the mobile phone low as much as possible in order to capture the market share.
Due to Samsung mobile phones which has more features and applications support and lesser price, people are now taking Nokias mobile phones as expensive. People are shifting or are planning to shift from Nokia to Samsung. The major cause of threat to Nokias market leaderaship is Competitors Model price and Competitors Model features.
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SUGGESTIONS
Nokia should provide more features and application support to the mobile phones. Nokia should try to lower down the price of the mobile phones.
If they cant lower down the prices then they should provide some additional accessories with the mobile phones. Nokia should provide more value for money products. Nokia should bring something for the non mobile phone users so that they cant resist to buy a Nokia mobile phone.
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LIMITATIONS
As the universe is too large and to take the opinion of the respondents is very difficult. Exact data is not given on internet.
Due to shortage of time response of countable sites and magazines are taken in order to support this survey report. Respondents were not rationale sometimes. The data might be biased. It was difficult to convince the people to fill the questionnaire.
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BIBLIOGRAPHY
Internet sites : Managementparadise.com Wikipedia.com Nokia.com Managementguru.com
Books and Magazines: Marketing Management by Phillipe Kotler. Marketing in retail by Khanna and Hain Mobile World Magazine.
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Questionnaire
2. Which brand of mobile phone do you use? a) b) c) d) Nokia Samsung Blackberry Othiss
3. Which brand of mobile phone would you like to use? a) b) c) d) Nokia Samsung Blackberry Othiss
4. Which type of mobile phone are you using? a) b) c) d) Bar Slider Touch screen QWERTY keypad
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5. Which type of mobile phone would you like to use in future? a) b) c) d) Bar Slider Touch screen QWERTY keypad
6. Which phones by Nokia you admire the most? a) b) c) d) Bar Slider Touch screen QWERTY keypad
7. Which brand provides the best after sales service in mobile phone sector? a) b) c) d) Nokia Samsung Blackberry Othiss
8. What feature attracts you the most in case of mobile phones? a) b) c) d) Durability Style User friendly Price
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9. Why Nokia is famous among mobile phone customers? a) b) c) d) Durability Style User friendly Price
10.Are you satisfied with the phone you are using? a)Yes b) No
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13. If Yes, Why? (a) Competitors model price (b)Competitors model features (c) Competitors model design (d)Any othis Reason.
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