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Brand dossier - Nokia Document Transcript

  • 1. Brand Dossier Group Members: Richa Daruka Asish Ghosh Shubhankar Sengupta Zeeshan Mohammad
  • 2. AGENDA2|Page
  • 3. The Evolution of NOKIA1865: Fedrick Idestam a mining engineer by trade built a wood pulp mill on thebanks of the Tammerkoski rapids, in southern Finland. A few years later, he built asecond mill by the Nokianvirta River – the place that gave Nokia its name. Idestam isconsidered to be the father of Finland‟s paper industry. Trivia: The Nokianvirta River is named after a dark, furry animal that was locally known as the Nokia – a type of marten.1871: Idestam named his company Nokia Ab.1902: Nokia Ab added electricity generation to its business activities in 1902.1967: Three companies, Nokia Ab, Finnish Cable Works& Finnish Rubber Works,which had been jointly owned since 1922, officially merged in 1967.1979: Radio telephone company Mobira Oy begins life as a joint venture betweenNokia and leading Finnish television maker Salora.1981: The launch of Nordiac Mobile Telephony (NMT) service. The service was theworld‟s first international cellular network. It was also the first company to introduceInternational Roaming.1982: With the introduction of NMT the mobile industry began to expand rapidly. Inthis year Nokia made its first digital telephone switch, the Nokia DX200. Nokia soonintroduced the first car phones (The Mobira 450 car phone).1984: Nokia introduced its first portable phone, theMobira Talkman portable phone. By this time thecompany was also providing base stations andswitches for NMT network.1987: The birth of a classic. Then the originalmobile phones were heavy, bulky and usuallypermanently installed in cars. Nokia launches theMobira Cityman, the first handheld NMT phone.The Mobira Cityman 900 weighed 800 grams andhad a price tag of 24,000 Finnish Marks(approximately EUR 4,560).1991: GSM- A new mobile standard opens up. OnJuly 1, 1991, Finnish Prime Minister Harri Holkerimade the world‟s first GSM call, using Nokiaequipment.1992: Nokia launched its first digital handheld GSM phone, the Nokia 1011. In thisyear Jorma ollila became president & CEO of Nokia and made a crucial decision: tofocus on telecommunications and move out of its other businesses.3|Page
  • 4. 1998: Nokia becomes the worldwide leader in Mobile phones. The world‟s biggestmobile phone manufacturer.1999: Nokia launches the world‟s first WAP handset, the Nokia 7110.2002: First 3G phone. Nokia launches its first 3G phone, the Nokia 66502003: Mobile gaming goes multiplayer with the N-Gage2005: The Nokia N series is born, the next generation of multimedia devices. And inthis year Nokia sells its billionth phone, a Nokia 1100 in Nigeria.2010: The Nokia brand, valued at $29.5 billion, is listed as the eight most valuableglobal brands in the BusinessWeek Best Global Brands list of 2010.In July 2010, Nokia reported a drop in profits by 40%. In global Smartphone rivalryNokia held the 3rd place trailing behind Samsung & Apple.2011: On 11 February 2011, Nokia announced a partnership with Microsoft. Nowmost future Nokia smart phones will be powered by the windows 7 (phone operatingsystem). N73 - The best Mobile Handset in the world.4|Page
  • 5. Vision of Nokia“Our promise is to help people feel close to what is important to them. “ - Nokia5|Page
  • 6. Initial positioning and subsequent repositioning ofNokiaPositioningPositioning is the act of designing the company‟s offerings and image to occupy adistinctive place in the minds of the target market. When Nokia positions its brand inthe crowded mobile phone marketplace, its message must clearly bring together thetechnology and human side of its offer in a powerful way. The specific message thatis conveyed to consumers in every advertisement and market communication(though not necessarily in these words) is “Only Nokia Human Technology enablesyou to get more out of life"In many cases, this is represented by the tag line, "We call this human technology".This gives consumers a sense of trust and consideration by the company, as thoughto say that Nokia understand what they want in life, and how it can help. And itknows that technology is really only an enabler so that the customer can enjoy abetter life. Nokia thus uses a combination of aspiration, benefit-based, emotionalfeatures, and competition-driven positioning strategies. It owns the "human"dimension of mobile communications, leaving its competitors wondering what to own(or how to position themselves), having taken the best position for itself. Nokia has succeeded in lending personality to its products, without even giving themspecific names. In other words, it has not created any sub-brands but hasconcentrated on the corporate brand, giving individual products a generic brandpersonality. Only numeric descriptors are used for the products, which do not evenappear on the product. Such is the strength of the corporate brand.RepositioningNokia is best known in the first instance for producing cheap S40 handsets andsecondly for S60 handsets with great cameras but otherwise clunky operatingsystem. The repositioning comes as Nokia battles to retain market share in the faceof competition from rivals such as Apple, RIM, and HTC. The big growth opportunity for Nokia is to go beyond bringing affordable voice tobringing affordable web and applications to the next billion consumers. It will do thisby innovating within current device, software and services assets as well as investingin new capabilities. The goal is delivering the best low-cost devices that deliver therichest experiences and applications that the consumers will love. Having thepotential to reach that many customers is enticing to operators and developers.It explored a number of options and believes the planned long term strategicpartnership with Microsoft would enable us to innovate and differentiate, and build anew global ecosystem that creates opportunities beyond anything that currentlyexists today, offering a serious alternative to the existing choices for operators,developers and consumers.6|Page
  • 7. Nokia is due to replace their Symbian operating system with Windows 7 Mobile.We believe that this could be a good move by the company as an exit from the U.S.could help the company save operating expenses for the business that was limpingalong. According to Comscore, the U.S. Smartphone subscriber share for NokiaSymbian declined from 2.3% in March this year to 2% in June this year.Hence supporting the operations in the U.S. for a declining business that it plans toreplace with its Microsoft OS doesn‟t make much sense. Another thing to note is thatthe main motive behind its decision to adopt Microsoft OS was to cut its operatingexpenses by 1 billion Euros by 2013.Hence this move could just be the beginning of Nokia‟s bigger plans to achieve itscost savings target.Nokia is laying the ground work for the release of their first Windows Phone 7handset by launching a £80 million global campaign to reposition their brand.While the £80 million Nokia will be investing in changing this perception may appearsmall, it is likely it will be accompanied by co-marketing dollars from Microsoft, as ithas been doing with other partners and carriers.The campaign will run over 6 months and is being developed by several agenciesfrom its worldwide repositioning.7|Page
  • 8. Advertising Strategy of NokiaMost forms of promotion are based around the idea of having an image to go withthe product. Brand imaging plays a dominant part in an organizations marketingstrategy. This is because people make a purchase they arent just buying a product,they are buying a lifestyle or an image. If branding can make people believe that thebranded product is better than an un-branded product, more people will buy it andthey will also be willing to pay higher prices for the "extra quality" and lifestyle theyare receiving with the product.Because a lot of rival products are more or less the same (Pepsi and Coke) the mainway of making your product stand out is through aggressive branding, this is usuallyachieved by companies usingslogans, logos and distinctive packaging.Nokia tend to promote the new technologies and mobile devices they create usingone big advertising campaign that focuses on a singular technology instead of eachindividual handset so they can appeal to a lot of different markets with onecampaign. Nokia 1600 and 1110i Advertisement was made for targeting rural India, with a tag line - “Apke jeevan ke dor”. Nokia 1100 advertisement was made to target at the entry-level phone user, with a tag line - “Made for India”. Nokia 3110 Classic, Nokia 5700 advertisements were made to target young generation with camera zoom & music system features with tag lines “Ab jo hoga zoom karke dekha jayega” & “Do the Music” respectively. Nokia 7610 Supernova Advertisement aimed at city based young crowd with a tag – “Its not just a phone, its who we are” Nokia -6300, 5310, and 2630 Advertisement gives you a feel of Indian culture and that Nokia is very much within us with a tag line - “Har khushi shami”Nokias current marketing strategy has helped them become the biggest sellingbrand in the communications market to date, but now sales are starting to decreasewith the saturation of the current market segment so Nokia will need to do one of thefollowing; Re-launch their products with an aggressive promotional scheme; Target adifferent segment of the market that has not been entered so Nokia can instantlygain 100% of the market share (although this is risky as the marketmight not take to their products and the demand might be low, so sales will also below and prices will have to be high and this will further stop people from purchasingNokias products).8|Page
  • 9. During the first season of IPL (Indian Premier League), Kolkata Knight Riders tied-upwith Nokia in its marketing campaign. Nokia had the second highest recall (afterDLF) despite a poor performance of KKR. The sound strategy of KKR made it thebest financially performing team in the first season of IPL.9|Page
  • 10. Sales Promotion of NokiaSales Promotion includes several communication activities that attempt to provideadded value or incentives to consumers, wholesalers, retailers or sales-force tostimulate the initial sales.Companies use sales promotion tools – coupons, contests, premiums, and the like –to draw a stronger and quicker buyer response, including short-run effects such ashighlighting product offers and boosting sagging sales. Sales promotion tools offerthree distinctive benefits: Communication, Incentives and Invitation. Historically, the thinking of Nokia was: a good product will sell itself. However there are no bad products anymore in today‟s highly competitive markets. Nokia provides sales promotion by Communicating to the masses.Its tag line itself says, “Connecting people”, which gives an indication that it‟s ageneric product for people and it helps in providing mobile phones to all the differentclasses of demography.Target Market for the Nokia Mobile Phone is between 20-40 years, mainly teenagersand Business Class People.India is among the worlds fastest-growing markets for mobile phones. The countryhas some 170 million subscribers and adds 6 million to 7 million more each month.(China, in contrast, adds 5 million subscribers, and the U.S. 2 million subscribers amonth.) Recognizing this potential, several global telecom giants jumped into the fraywhen the Indian government first opened up the countrys telecom market to privateenterprise in 1994. Among them, one company -- Finland-based Nokia -- forgedahead of rivals and today commands a lead position in market share for mobilephones (also called "handsets"). In specific segments, such as GSM telephony,Nokias market share in India is as high as 70%.Nokia have managed to be quite environmentally friendly and have not doneanything that the consuming public have taken huge offence to, they have been verycareful about this and this is one of the reasons they are such a popular brand ofmobile phones.Nokia is one company that uses “push” selling strategy. Nokia promote theirproducts via retailers such as Car phone Warehouse. Personal selling and tradepromotions are often the most effective promotional tools for companies such asNokia - for example offering subsidies on the handsets to encourage retailers to sellhigher volumes.10 | P a g e
  • 11. A "push" strategy tries to sell directly to the consumer, bypassing other distributionchannels (e.g. selling insurance or holidays directly). With this type of strategy,consumer promotions and advertising are the most likely promotional tools.Nokia is the market leader in Mobile Phones in India. It holds a market shareof around 70%. But Nokia was not the only company to enter India, when this mobilerevolution was about to happen. I remember that my first cell phone was a SiemensC100; a few of my friends had a Samsung with them, what happened to thesecompanies. What are they not in picture anymore?The few reasons for the same are: The Power of Focus: Focusing on one and the only business and i.e. mobile phones or handsets and infrastructure related to it. The Distribution Edge: When it comes to distribution, Nokias lead is clear. Today, India has some 95,000 outlets that sell mobile phones. "In 50,000 of them -- and thats a conservative estimate -- only one brand is available, Nokia. Investment in Manufacturing: The other big investment area that has set Nokia apart from other telecom firms is manufacturing facilities and R&D. Nokia has several R&D centres and labs in India. Building the Brand: Here Nokia faced a problem because Nokia range available in India extends from Rs 1,499 ($37) at the lower end to Rs 45,000 ($1,125) at the high end, but now with years of being in operation they have created a brand for themselves. This they have done by the concept of One Model replacing the other as per need and desire.Products for India: The Nokia story in India has not been about grafting a model thathas worked abroad. In fact some of the models - are unique to India. For example amobile set having a flashlight, or torch.11 | P a g e
  • 12. Segmentation strategy followed by the NokiaNokia India had a 74% market share in the GSM mobile handset market at the endof the year 2006. And the company has found a new way of connecting with itsconsumers. The company has embarked upon a brand new retail strategy that isbased on the classification of its consumers into four major groups that segmentconsumers in terms of product usage, income level and lifestyle.The classification is based on an extensive survey - the Nokia Segmentation Study -involving 42,000 consumers from 16 countries. The survey studied the impact thatlifestyle choices and attitudes have on the mobile devices purchased by consumersand how they use them. The company is following separate marketing strategies forthe four different segments that emerged from this survey. The advertisingcampaigns for the segments are also different.Nokia‟s entire product portfolio has Nokia‟s entire product portfolio has now been re-aligned towards these four groups to address the specific needs of each.The first of these segments is „Live‟. This segment comprises first time users whosebasic need is to stay in touch, with voice as the main driver. This segment would beserved basic handsets which would be low on features and price. These will befunctional phones and the target group for these phones range from SEC C (lowsocio-economic class) to SEC A1+ (very high socioeconomic class) markets.The second segment „Connect‟ comprises more evolved users who look formore functionality, features and connectivity. Accordingly, phones in thissegment would have GPRS, camera and music capabilities.The next two segments, „Achieve‟ and „Explore‟, consist of high-end users whowould be offered Nokia‟s top-end handsets. For example, „Achieve‟ segmentcomprises company executives who need to have business functionalities in theirphones. Nokia‟s E-series (Enterprise series) is aimed at this segment with handsetshaving QWERTY keyboards and full Internet capabilities.„Explore‟ would be the most prominent segment for the company in the comingyears. This segment comprises high lifestyle users. This segment would see themost vibrant growth in the coming years. The phones aimed at this segment willfocus on five different functionalities: applications, imaging, mobile TV.12 | P a g e
  • 13. Analysis of product and generic competition to thebrand NOKIANokia engages in the following levels of marketing:Segment MarketingNokia offers designs, features and functionality that cater to the demands of themarket segment. E.g. Nokia Ngage (gamers).Niche MarketingNokia also has products for customer groups seeking a distinctive mix of benefitsand are ready to pay a premium price for it. E.g. Nokia N96, E71.Psychographic Segmentation(Lifestyle)Live Customers - Looking for design and style, followers of trends and fashion andhave active lifestyle - Nokia 8800SapphireConnect Customers - Combination of ease of use and elegant looks.Want seamlessly connected and in best possible way - Nokia 6110 NavigatorAchieve Customers - Smart business people wanting smartest tools for balancingwork and life. E90 models -use of e-mail, calendar, Contacts, web browsing.Explore Customers - Want cutting edge technology for their stylish Life-styles -Nokia N-95 with 8 GB chip with multimedia devices, that snap, record, browses andshare contents all via internet.There exists another segment of consumers who rank price and functionality ofthe phone above the aesthetics and enhanced features.For these segments we have products like Ngage (gamers), Xpressmusic (music lovers), etc and 1100, 2100, 2300, etc.Demographic Segmentation (Income)Nokia has managed to stay ahead of its competitors by targeting consumers at theBottom of Pyramid (BOP) along with other segments.High Income Group - Caters to the upper segment of the society with highpurchasing power. E.g. Nokia 8800Sapphire, N96, E71 etcMedium Income Group - Caters to that segment which gives more importance tovalue for money e.g. N72, N73, Nokia 6300, and Nokia 5300 (Xpress Music)Low Income Group - Caters to the consumers in BOP segment Nokia 1100, Nokia2100, Nokia 3310, Nokia 3315, Nokia 230013 | P a g e
  • 14. Since we are dealing with a global industry, it is worth looking at popularity by region.Perhaps it will shed some light on the industry. The following charts illustrate thepopularity of Nokia, Blackberry, and iPhone.Consistent with my understanding of Nokia, it is way more popular in developingcountries (Eastern Europe, Middle East, India, and Pacific Rim) than developedcountries. RIMs Blackberry appears to be concentrated in a few countries, while theiPhone has high popularity throughout the world, with a tilt towards the developedworld.14 | P a g e
  • 15. It appears that Nokias popularity has been declining in the last few years but it isntquite that bad. Apples iPhone has been skyrocketing on the popularity scale but Idont believe its as big of a threat to Nokia as it seems.Nokia which is the undisputed king of the Indian market is facing not only increasedcompetition in the high end space from Smartphone by Apple, RIM, Google andothers but also in the low priced end. A number of Indian companies like Olive,Micromax etc have made inroads with cheaper and feature rich handsets. Nokia hasa much smaller market share in the Chinese market because of competition fromsuper cheap local Chinese competitors.Nokia is a company getting squeezed both at the top and bottom segments fromdifferent breed of competitors. In the mindshare, brand appeal and pricing power toGoogle and Apple while on the lower segment it is losing out to local no name cheapcompetitors. Nokia‟s Indian Fortress was crumbling in the face Samsung and LocalPlayers Competition last year and has now taken alarming proportions with awhopping 18% market share loss in the last 6 months. The competition is onlyintensifying with Local Indian companies introducing low cost Smartphone poweredby Google‟s Free and very popular Android O/S. Nokia has been trying to turnaround its fortunes with the help ofN8,Meego and a new CEO. Nokia‟s recent quarterhas shown improvement with cost cutting efforts leading to improved profits.However the mid and long term future remains bleak required a drastic change instrategy.15 | P a g e
  • 16. Strategies adopted over time by the brand to tacklecompetition or prime market expansionWith all of these competitors in the market Nokia must keep ahead of the game byrunning successful marketing strategies, to do this Nokia must focus on theprinciples of marketing. At the moment Nokia are the worlds best selling phonecompany.Nokia was the clear market leader in the mobile phone industry in terms of sales andprofitability. It was ahead of giant companies like Motorola, Ericsson, APPLE,Siemens, Samsung, and other worthy competitors. Since the early 1990s, NokiasStrategic Intent was to build distinctive competency in product innovation, rapid response, and global brand management. Its strategic intent required rapid growth in the core businesses of mobile phones and telecommunications networks. This goal was achieved by Nokias development of new products and expansion into new markets. In order to become the global leader as it is today, the company had overcome numerous challenges and obstacles over the last decade. Nokia focused on building and sustaining its current competency in the early 1990s. NMP created valuablealliances across the industry and made key acquisitions to increase economies ofscale, market share, and access to R&D resources. The management believed inthe growing acceptance of digital technology as the uniform communication standardin the future. Nokia formed partnerships with AT&T, Alcatel, and AEG to further thedevelopment of a digital telephone and network. The GSM digital standard was amajor success for NPM on the global scale. Nokia also realized the need to createrapid response to market changes. The production and distribution processes werestandardized and simplified in order to satisfy the changing markets demand. At thesame time, Nokia also focused in building brand management. The managementrealized that mobile phones would be a commodity in the near future. The companyincreased spending in advertising, reallocating resources, and building brand imageacross the globe. This strategy was successful and placed Nokia among the worldsmost admired brands.During the 1990s, customer and consumer expectations for mobile phonetechnology were notably different. The markets largest customers, the phoneservices providers, expected discounted custom-made phones and the rollout of 3Gfor their subscribers. Meanwhile, the everyday consumers wanted much more thanjust voice function in mobile phones. Multiple functions such as entertainment,personal expression, and extended communication were required. Moreover, manyconsumers expected their mobile phones to have the ability to access the Internetand connect with other electronic devices, like digital TV.In order to sustain influence as the dominant player in the mobile phone industry forthe next 5 years, Nokias strategic intent should be "focused, global, and value-added" (Oliff,5). Traditionally, the main products of Nokia were mobile phones andnetworks. The company had extensive expertise in the production process anddistribution channels, and should be able to capitalize on these assets in the nearfutures competitive environment. The ability to overcome the technical difficulties ofthe 3G phone with GSM standard may provide a much needed boost for Nokia.16 | P a g e
  • 17. NMPs products had a worldwide recognition, especially among young consumers.However, there are many potential markets, especially in Asia-pacific and LatinAmerica, that could help increase Nokias sales volume. This would require thecompany to reallocate resources and produce entry-level products. Finally, Nokiashould be able to consistently exceed customer and consumer expectations byproducing value-added products and services, such as user-friendly phones andeasy-to-use phone services.17 | P a g e
  • 18. Distribution Channel of Nokia in IndiaDistribution Channel is a way of selling a companys product either directly or viadistributors; "possible distribution channels are wholesalers or small retailers or retailchains or direct mailers or own stores"Chennai was selected as the location for the Nokia Telecom Industry Park due to theavailability of skilled labour, support from the state government and the presence ofgood logistics connections. The mission of the Nokia Telecom Industry Park is tocreate a network of co-located and co-dependent partners that operate at world-class standards and manufacture high quality products.Franchisees:Nokia franchised its brand exclusivity in the name of NokiaPriority Dealers. All the outlets which are under thefranchiser should follow certain footfalls of the franchiser‟scompany. This would include converting a normal outletinto Nokia Priority Dealer outlet. But the franchiser willhelp in visual merchandising and loan for deposits whichare refundable.Rural Market Distribution:Nokia did not concentrate more on rural markets as theproducts are widely used in urban cities but due tocompetition in the market, Nokia planned to leverage the distribution network in orderto expand to rural sectors and to serve untapped market. The company planned toeducate the benefits of its mobile toward the villagers.Other Distributions in India:Apart from its Nokia concept stores, the company distributes its product to manymulti-brand mobile stores which are well known in India for their service and pricediscounts. They are:Hotspot: it is ranked as the number one outlet for its wide collection of mobile of allrange and also for good after sales service. Apart from handsets, it also sells mobileaccessories, mobile network connections, recharge vouchers and gaming device.Univercell: it is considered as the highest selling outlets among the other mobileretailers in India. This is because of their service flexibilities like online shopping,door delivery, and after sales service.The mobile store: it is a recently emerged mobile outlet which is also well known forthe wide range of mobiles and its enhancement product along with the well knownrepair centre insides it‟s each outlet. The store had won awards as „Most WantedMobile Retailer.18 | P a g e
  • 19. Nokia owns the distribution centres in west and south of India but, in northern andeastern part of the country Nokia distributes its products through HCL. HCL hasserved customers as a partner of Nokia for more than 10 years. HCL consists a largepart of Nokia services, it has its centres in more than180 cities, and these carecentres are owned and are operated efficiently by HCL, the operations of HCL islimited only to north and east India only.The mother depot of Nokia is in North India in Gurgaon, all the high end sets whichare imported and all the sets which are manufactured in Chennai are transferredhere first.Nokia has an innovative supply chain approach to support the business in India.India has a very high mobile phone usage, due to having some of the cheapesttariffs in the world. Whilst teledensity in the cities is 30-35%, it drops to 2-3% in thecountry. This was Nokia‟s target market. Nokia makes handsets specificallydesigned for the Indian market with low functionality cheaper handsets for the ruralareas.Given the opportunity in the rural markets and the fact that in India mobile phonesare sold through over 100,000 retail outlets a specific supply chain strategy wasrequired. This includes „marketing vans‟ supporting sales in the rural areas and apartnership with HCL as distribution partner, who already had a well establishednetwork.19 | P a g e
  • 20. Summary regarding the future direction of thebrand The cell phone has become the only basic telephone link of a household or an enterprise in India rather than a land line phone. It is turning out to be more economical and efficient than fix line telephones, so there is a great scope for further expansion with reduction in cost. According to industry analyst the mobile phone industry in India will be driven by voice, multimedia and mobile services for organizations.Nokia outlined its new platform strategy for smartphones, with windows phones as its primary smartphone platform in the proposed partnership withMicrosoft. Microsoft tools would be used for NokiaWindows‟s phone application development.According to research if things are not going wellwith Microsoft then they might turn to android. Nokiais developing highly relevant solutions that willconnect the consumer to wherever they want to be,whenever they want to be there. This innovativesolution will provide the institution and power toshare their feelings and experiences as they happen.20 | P a g e
  • 21. List of Hypothesis: 1. Nokia is losing its market share due to its Operating system. 2. Nokia‟s phones are more durable compared to its competitors. 3. Nokia‟s phones have a longer battery backup compared to its competitorsJustification for the first Hypothesis:Gone are the days when Mobile phone was just used for voice call, SMS and taking pictures.The requirements from a mobile phone has increased, people now want phones which aremultitasking, support various applications, games and perform faster.Nokia operating with Symbian operating system has been popular with users, but lately thatpopularity has been declining. Among the other devices in the market, phones operating onAndroid are probably the most prominent competitor for Nokia‟s Symbian operating system.Android phones contain more applications and also support more 3rd party softwarecompared to a Nokia phone. Android‟s bunch of features includes Application Frameworkthat allows users to customize the components, optimize the graphics interface. Itsmultimedia performance is also very high. Further core applications like SMS program,maps, calendar, email client, contacts, Java programming, etc. are highly optimized inAndroid. The Symbian developers have included more applications in the Symbian OS overthe time but it failed to succeed in the market. It is also believed that the Symbian Softwarehas a higher response time and can‟t handle multiple applications at a single time.Justification for the second Hypothesis:As per our observation of Nokia handsets we found that the brand has occupied a distinctiveplace in peoples‟ mind due to its durability and battery backup. Businessmen and workingprofessionals who have a high usage of mobile phones for voice calling purpose givesturdiness and battery backup as their first priority while purchasing phones. So we wantedto check whether Nokia is able to position its phones as per their demand. More over as perthe positioning part of our literature review we inferred that Nokia gives a sense of trust andconsideration to its customers and is somehow related to the durability and battery backup ofNokia‟s Phones.Justification for the third Hypothesis:As per our observation Nokia as a brand is known for its long battery backup and battery lifeis one of the most important factors to consider when buying a cell phone. No matter howflashy a handset may be and how many cool features it offers, it wont be satisfactory forcustomers if the battery runs out too quickly. This is what we intend to prove through ourhypothesis.21 | P a g e
  • 22. The list of information requirements to be collated from the research Investigation about the durability and battery backup of the product – the importance attached by the users and the perception of performance of various brands on this parameter. Importance of applications in present generation (networking. Gaming, business) Alternatives available to consumer Analyzing the consumer buying behaviour to understand what instigate to buy the productINSTRUMENT OF DATA COLLECTION:The information will be collected through the designed questionnaires, in the following twoways:  INTERVIEW METHODDefinition: Interview is verbal questioning. Interview is defined as “a two-personconversation, initiated by the interviewer for the specific purpose of obtaining research-relevant information and focused by him on the content specified by the research objectivesof description and explanation”.We have used standardized type of interview, in standardized interviews; answer to eachquestion is standardized as it is determined by a set of response categories given for thispurpose. The respondents are expected to choose one of the given options as the answer.We chose this particular instrument because it will give us a higher response rate and areuseful for untangling complex topics. The interview question basically allows us to obtain allthe initial data as well as professional details that we would want to know about everyapplicant.  MAIL QUESTIONNAIRES (Design attached)A questionnaire is a research instrument consisting of a series of questions and otherprompts for the purpose of gathering information from respondentsList of a research or survey questions asked to respondents, and designedto extract specific information. It will serve four basic purposes to us(1) collect the appropriate data.(2) Make data comparable and amenable to analysis.(3) Minimize bias in formulating and asking question.(4) To make questions engaging and varied.22 | P a g e
  • 23. Sampling Plan and Sample Size (with justification)SAMPLING PLAN: Sampling is the act, process, or technique of selecting a suitablesample, or a representative part of a population for the purpose of determining parametersor characteristics of the whole population. Sampling is one of the components of a researchdesign. It is the only feasible way to collect marketing research data in our project.The target population are:  People between 13 years to 60 years of age.  People from different income group.This sample includes users of Nokia and as well as non-users of Nokia.For this purpose we have used convenience sampling, a statistical method of drawingrepresentative data by selecting data by selecting people because of the ease of theirvolunteering or selecting units because of their availability or easy access. The advantagesof this type of sampling are the availability and the quickness with which data can begathered.The number of respondents:100-120METHODS OF DATA ANALYSISThe following are the data analysis tools to be used:Graphical RepresentationPie charts: Pie charts show the size of items in one data series, proportional to the sum ofthe items. The data points in a pie chart are displayed as a percentage of the whole pie. Thistool can be used to determine the number of users of different mobile brands as per oursurvey. We would be using this to represent question numbers 1, 2, 3, 4 and 5.Rank co relation (Kendall‟s co efficient of concordance): A coefficient of agreement(concordance) between different sets of rank orderings of the same set of things. This wewould be using to represent question number 6.Bar Graph: A bar graph is chart that uses the lengths of parallel bars to represent therelationship between various data or values. A diagram that has rectangles of variouslengths that corresponds to numbers is an example of bar graph. We would be representingquestion number7, 8, 10 and 11.Likert Scale: Ordinal scale of responses to a question or statement, ordered in hierarchicalsequence from strongly negative to strongly positive. We would be using this to representquestion number 9.23 | P a g e
  • 24. Apart from the above mentioned tools we will also use „Z-test‟ to get the desired result of oursurvey i.e. to see whether the findings from our questionnaire is applicable to the entirepopulation (mobile users) or not.24 | P a g e
  • 25. Net Take AwayThe three hypotheses that we had taken in our second phase are as follows 1. Nokia is losing its market share due to its Operating system. 2. Nokia‟s phones are more durable compared to its competitors. 3. Nokia‟s phones have a longer battery backup compared to its competitors.The question number 4, 5, 6 and 7 in our questionnaire is based on the first hypothesisrelating to the operating system. As per our findings from question number 4, we see that88% of our total respondents (105) are aware of the operating system in their mobile phone.From question number 5 we infer that operating system in a most critical parameter for 17%of the total respondents and it an important but not a critical parameter for 72% of the totalrespondents. Question number 6 shows that Android (Operating System) is the mostpreferred operating system for majority of respondents who are aware about the operatingsystem. From question number 7 we observe that all the people who are aware about theoperating system are not exactly aware about which operating system is being used bydifferent brands of mobile phones.These inferences when taken all together proves that operating system is a reason for Nokialosing its market share, since people are concerned about the operating systemThe question number 8 and 10 of our questionnaire are based on the second hypothesisrelating to durability of Nokia phones. As per our findings from question number 8 we seethat the weighted average of the respondents who consider durability as a parameter whilepurchasing a mobile phone is high. From question number 11 we infer that Nokia has beenrated high on the parameter of durability as compared to other competing brands of mobilephones.So, taking into account these two questions we can clearly infer that Nokia phones areconsidered more durable as compared to its competitor.The question number 9 and 11 of the questionnaire are based on the third hypothesisrelating to the battery backup of Nokia phones. From our findings we see that out of 54Nokia users 15 strongly agree and 17 agree with the battery backup of their mobile phone,which constitute of 59.25% of the total users who uses Nokia. As per question number 11 wefind that 60 respondents have given highest rank to Nokia and 19 respondents have givensecond highest rank to Nokia, which shows that 75.2% of the total respondents are satisfiedwith the battery backup that Nokia phone provides compared to its competing brands.So the third hypothesis which says that Nokia has longer battery backup is being proved byour survey.Hence we conclude that the clunky operating system of Nokia phones is a major concern forthe company, as it is losing market share due to it and we also see that Nokia phones areconsidered to be durable with long battery backup.25 | P a g e