1. EAstern Institute for Integrated
Learning in Management
Project Report on “Why Nokia
Handsets are preferred over other
Handsets?”
Prepared by Kaizer
:
1
3. Acknowledgement:
It is indeed our great privilege 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 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
4. 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
6. 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 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 facing 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 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
7. 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 –
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.
7
8. Introduction:
Nokia was founded in 1865 by Fredrik Idestam 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 current GSM phones - was 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 non-
core 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
9. entered India, the telecom policies were not conducive to the growth 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 players
like Motorola, Samsung, LG and Sony Ericsson ,they could not snatch Nokia’s
customers. So we wanted to find out the reason “Why Nokia is preferred over
other Brands.”
Handset Market Share:
9
10. 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 residents and
we divided it into clusters accordingly.
Regarding the information relating to the company profile we took the help of
internet.
10
11. QUESTIONNAIRE
“PREFERENCE OF NOKIA HANDSETS OVER OTHER HANDSETS”
1. Do you think Nokia handsets are updated with the latest features?
a)YES
b) NO
2. Are Nokia mobiles readily available in the markets?
a) YES
b) NO
1. Do you think Nokia mobiles are user friendly?
a) YES
b) NO
1. Do Nokia provide good after sales service compared to other mobile
phones?
a) YES
b) NO
1. Nokia is costlier as compared to other mobile handsets that provides same
features as Nokia, but still why do you prefer Nokia?
a) NOKIA BRAND NAME
b) BETTER FEATURES
c) USER FRIENDLY
d) ALL THE ABOVE
1. Does a Nokia phone come with reasonable price?
a) YES
b) NO
1. If a mobile company offers same features, quality and price as Nokia, will u
still go Nokia?
a) YES
11
12. b) NO
1. Except Nokia your other preferred mobile phone brands?
a) SAMSUNG (b) LG (c) MOTOROLLA (d) OTHERS
1. Will you go for other mobile phone brand with less price and more features?
a) YES
b) NO
1. How do you rate the after sale service of Nokia?
a) VERY GOOD (b) GOOD (c)NEITHER GOOD NOR BAD (d) 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
YES or NO are below,
Question No. Yes % No %
1 87.5 12.5
2 87.5 12.5
3 100 0
4 62.5 37.5
6 75 25
7 50 50
9 37.5 62.5
12
13. 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 that it is because of the NOKIA Brand Name.
Where 14% people told that it is because of better features.
In question number 8 we asked that Except Nokia what are your other preferred
mobile phone brands?
25% people told that they prefer Samsung, 12.5% told LG, 37.5% told Mot25%told
Motorola and remaining 25% told they prefer other brands.
Limitations:
➢ 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 .
13
14. ➢ 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 –
14
15. 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 co-
ordination 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.
15
16. Reference and Bibliography:
1) Uma Sekharan, “Research methods for Business “ page no.218-
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
16
17. 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 handsets.
We also found that Nokia has to improve its after sales service. Many respondents
were not satisfied with Nokia’s after sales service.
17
