EAst ster ern n Ins Insti titu tute te fo forr Int Integ egra rate ted d Learning in Management
Project Report on “Why Nokia Handsets are preferred over other Handsets?”
Prepared by Kaizer :
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KAIZER Team Members:
NAME ROLL NO.
1. 2.
Abhijit Sarkar Arindam Chakrobourty
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Arindam Dey(
[email protected]) 4. Ashutosh Kr. Tiwary 5. Biswajyoti Nath 6. Chandan Dhekial 7. Diganta Deori 8. Hemant Kumar Upadhyaya 9. Mausam Mrinmay Sharma 10.Nashid - Ul – Ameen 11.Shreya Ghosh 3.
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17 23 25 31 35 51 57 98
Acknowledgement:
It is indeed our great privilege pr ivilege and opportunity to have an outstanding professional as the project guide: Dr.Avijit Brahmachary, who in spite of his busy schedule managed to squeeze some quality time to guide us in our project. we extend our profound gratitude for his guidance, constant encouragement encouragement and enthusiasm throughout the project. We would also like to thank the respondents for providing us all the required information which helped us a lot in our project. Finally, we thank Eastern Institute For Integrated Learning in Management for giving us the opportunity to undergo such a project.
Group - Kaizer 3
2ndsemester, PGPM, Section - H1 Eastern institute for integrated learning in Management, Kolkata
Contents: 1)
Title page……………………………………………………………..01
2 ) Acknowledgement………………………………………………… 03 3) List of Tables & Figures………………………………………………..04 4 ) Executive Summary (a)objectives…………………………………………………………… 05 4
(b)Results………………………………………………………………… 05 (c)Conclusion…………………………………………………………… 05 (d)Recommendations……………………………………………… ….06 5) Body (a)Introduction………………………………………………………….0 7-08 (b)Methodology………………………………………………………….. 09 (c)Results……………………………………………………………… 11-12 (d)Limitations…………………………………………………………… 13. 6) Conclusion and Recommendations……………………………… 13-14 7) Reference/Bibliography…………………………………………………. 15 8) Appendix…………………………………………………………………… 16
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Executive Summary : Objectives: Our objectives behind doing this project was to know, 1. Why customers prefer Nokia over other Brands? 2. The areas in which Nokia performs better? 3. How the Brand Nokia effect the consumers Psychology? 4. Strategies to be adapted by Nokia to be the to keep their market mar ket base? 5. To analyze the brand NOKIA acceptability by the customers.
Results: we came to know that people prefer Nokia because of mainly it’s range of products, Availability, durability and user friendliness. It is f acing close competition from other players like Motorola, Samsung, LG etc.we also came to know the strategies adapted by Nokia to maintain it’s market m arket position as number one. We also came to know that NOKIA Brand name matters when a person purchase nokia mobile handsets. Other findings are discussed in details in the main body.
Conclusion: During the course of research on this project (Preference of Nokia mobiles over other cell-phones) we have come to know a lot of interesting facts and Information regarding Nokia. Nokia is undoubtedly the market leader in the cell-phone market. Nokia still dominates the world cell-phone market share. Nokia leads the market with 38.6% stake, beating its nearest rival Samsung which has 16.2% stake. Motorola and LG are tied with 8.3% each. Nokia enjoys this status of being no. 1 because of its qualities, features, price range it provides to its customers compared to its competitors. 6
Recommendation: Through our collaborative research, we have found out some areas where Nokia should emphasize more so that it continues to be the market leader and have an edge over its competitors. These include further focus on
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1. Product competitiveness: - The products of Nokia should be superior or at least at par with the competitors’ regarding technology, designing and features etc.
2. Customer satisfaction: - Nokia should come up with more value added products and effective after-sales services.
3. Research and Development: - In order to retain the position of a market leader Nokia should incorporate the latest technological innovations into their handsets and should put stress on further development.
4. Demand and Supply: - A strong demand and supply network should be established for smooth availability of products to the customers. 5. End to End capability: - Stress should be given on end to end capability by integrating mobile devices applications and infrastructure.
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Introduction: Nokia was founded in 1865 by Fredrik Idestam I destam in Finland as a paper manufacturing company. In 1920, Finnish Rubber Works became a part of the company, and later on in 1922, Finnish Cable Works joined them. All the three companies were merged in 1967 to form the Nokia Group. In the late 1970s, Nokia started taking an active interest in the power and electronics businesses and by 1987, consumer electronics became Nokia's major business. Nokia created the NMT mobile phone standard in 1981 and launched the first NMT phone, Mobira Cityman, in 1987. The company delivered the first GSM network to Radkilinia, a Finnish company in 1991, and in 1992, Nokia 1011 - a precursor for all Nokia's Nokia's current GSM phones phones - was introduced. introduced. In the 1990s, Nokia provided GSM services to 90 operators across the world. Another significant move of the company during this period was the divestment of its noncore operations like IT. The company focused on two core businesses - mobile phones and telecommunications networks. Nokia in India
Nokia entered the Indian market in 1994. The first ever GSM call in India was made on a Nokia 2110 mobile phone on its own network in 1995. When Nokia 8
entered India, the telecom policies were not conducive to the growth gr owth of the mobile phone industry. The tariffs levied on importing mobile phones were as high as 27%, usage charges were at Rs.16 per minute and, at these high rates, consumers did not take to mobile phones. . It started capturing the market with it’s quality products and services. Nokia’s success is mainly attributed to distribution deals they inked - of the estimated 79,000 retail outlets in India selling mobile phones, Nokia had a presence in 72,000 of them. Though Nokia had to face tough competition from other powerful global global players like Motorola, Samsung, LG and Sony Ericsson ,they could could not snatch Nokia’s customers. So we wanted to find out the reason “ Why Nokia is preferred over other Brands.”
Handset Hand set Market Ma rket Share Shar e:
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Methodology: We used different methodology while doing our survey. Firstly we collected PRIMARY DATA. Our sample size was 32. We collected the data’s through a Questionnaire we designed. The questionnaire was structured and non- disguised. We also prepared interview schedule and mailed some questionnaire. We collected all the datas from the field directly. The sample size of our survey was a heterogonous mix which comprised of different age group, occupations, income level etc. We used cluster sampling and also random sampling. Since the population is large we went for cluster sampling. Moreover it saves time and cost. To minimize the chances of biasness we used random sampling technique. We divided the population into different clusters according to different characteristics like age group, income etc. The benefit of cluster sampling is that we can get heterogeneous mix of population. The sample we selected belonged to our hostels, institute, and local r esidents and we divided it into clusters accordingly. Regarding the information relating to the company profile we took the help of internet.
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QUESTIONNAIRE “PREFERENCE OF NOKIA HANDSETS OVER OTHER HANDSETS”
1. Do you think think Nokia Nokia handsets handsets are updated updated with with the latest latest features features?? a)YES b) NO 2. Are Nokia Nokia mobiles mobiles readi readily ly availabl availablee in the the markets? markets? a) YES b) NO 1. Do you you think think Nokia mobiles mobiles are user friend friendly? ly? a) YES b) NO 1. Do Nokia Nokia provide provide good after after sales sales service compare compared d to other other mobile phones? a) YES b) NO 1. Nokia Nokia is costlier costlier as compared compared to other other mobile handset handsetss that provides provides same same features as Nokia, but still why do you prefer Nokia? a) NOKIA NOKIA BRAN BRAND D NAM NAME E b) b) BETT BETTER ER FEA FEATU TURE RES S c) USER USER FRIE FRIEND NDLY LY d) ALL ALL THE THE ABO ABOVE VE 1. Does a Nokia Nokia phone phone come with reasonable reasonable price? a) YES b) NO 1. If a mobile company company offers offers same features features,, quality quality and price price as Nokia, Nokia, will u still go Nokia? a) YES 11
b) NO 1. Except Except Nokia Nokia your other other preferred preferred mobile mobile phone phone brands? brands? a) SAMSUNG SAMSUNG (b) LG (c) MOTOROLLA MOTOROLLA (d) OTHERS OTHERS 1. Will you you go for other other mobile mobile phone brand brand with with less price price and more features features?? a) YES b) NO 1. How do do you rate the the after after sale service service of Nokia? Nokia? a) VERY GOOD GOOD (b) (b) GOOD (c)NEIT (c)NEITHER HER GOOD GOOD NOR BAD (d) BAD BAD (e) VERY BAD
Results: We asked total 10 questions, which were mainly close ended questions. out of 10 ,8 were answerable in either YES or NO. And the remaining 2 questions had 5 options for each. The results of the question Number 1,2,3,4,6,7 and 8 which are answerable in Either Either YES or NO are below,
Question No. Yes %
No %
1
8 7 .5
1 2 .5
2
8 7 .5
1 2 .5
3
10 0
0
4
6 2 .5
3 7 .5
6
75
25
7
50
50
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3 7 .5
6 2 .5
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In question number 5 we asked that Nokia is costlier as compared to other mobile handsets that provides same features as Nokia, but still why do you prefer Nokia?
57% people told that because it is user friendly. 29% people told told that it is because of the NOKIA Brand Name. Where 14% people people told that it is because of better features.
In question number 8 we asked that Except Nokia Nokia what are your other preferred mobile phone brands? 25% people told that they they prefer Samsung, 12.5% 12.5% told LG, 37.5% told told Mot25%told Motorola and remaining 25% told they they prefer prefer other other brands. brands.
Limitations: ➢
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During interview we found out that the customers have a blind faith regarding NOKIA which we could not explain in quantitative terms. The respondents were biased to some extent with the respective brands .
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➢
➢ ➢
Our research was limited to only 32 respondents whereas in reality the universe is too big. Hence statistical datas might change if we further increase the sample size. The accuracy of the datas are doubtful as the respondents were ignorant and hesitant towards their response. Time and money was another constraint in our project.
Conclusion and Recommendations: During the course of research on this project (Preference of Nokia mobiles over other cell-phones) we have come to know a lot of interesting facts and Information regarding Nokia. Nokia is undoubtedly the market leader in the cell-phone market. Nokia still dominates the world cell-phone market share. Nokia leads the market with 38.6% stake, beating its nearest rival Samsung which has 16.2% stake. Motorola and LG are tied with 8.3% each. Nokia enjoys this status of being no. 1 because of its qualities, features, price range it provides to its customers compared to its competitors. However, Nokia is facing certain challenges that have affected its sales at present. Nokia has predicted low sales for 2009 and that is due to the global economic slowdown which has resulted in sharp pull back in global consumer spending. The sales of Nokia have also been affected quite badly by the recent launch of some duty-free cheap cell phones. Moreover, there are some areas where its competitors are giving a run for their money like product designing, modifications etc. Through our collaborative research, we have found out some areas where Nokia should emphasise more so that it continues to be the market leader and have an edge over its competitors. These include further focus on –
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1. Product competitiveness: - The products of Nokia should be superior or at least at par with the competitors’ regarding technology, designing and features etc.
2. Customer satisfaction: - Nokia should come up with more value added products and effective after-sales services i.e., service centres should be well-equipped to handle customer concerns and there should be proper coordination between them. It should focus on customization to gain greater customer satisfaction .
3. Research and Development: - In order to retain the position of a market leader Nokia should incorporate the latest technological innovations into their handsets and should put stress on further development.
4. Demand and Supply: - A strong demand and supply network should be established for smooth availability of products to the customers. So that the customers get the product as and when they require it.
5. End to End capability: - Stress should be given on end to end capability by integrating mobile devices applications and infrastructure. 6. Efficient, manufacturing, logistics and high quality products and services should be maintained.
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Reference and Bibliography: 1) Uma Sekharan, “Research methods for Business “
298 2) Nag and Chanda, “Business Statistics”, Page no. 03-30
Web Sites 1)www.nokia.com 2)www.mobileburn.com 3)www.iwire.com 4)www.wikipedia.com 5)www.scribd.com
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page no.218-
Appendix:
We also came to know how the duty free cheap mobile handsets are affecting the growth of branded mobile sets such as NOKIA, SAMSUNG, and MOTOROLA etc. These cheap handsets are offering very low priced handsets and thus are attracting many customers who were inclined towards NOKIA and other branded br anded handsets. We also found that Nokia has to improve its after sales service. Many respondents were not satisfied with Nokia’s after sales service.
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