MARKETING RESEARCH PROPOSAL ON DECLINING MARKET SHARE OF NOKIA SINCE 2007

SHRINKING MARKET SHARE NOKIA HAS LOST OVER 20 PER CENT SHARE IN THE HANDSET MARKET IN INDIA SINCE 2007

BACKGROUND TO THE STUDY

Nokia grew into an enormous size, making four out of

every 10 cell phones on the planet. But that size became as much its weakness as it was its strength.Like a charging elephant that takes time to turn around,Nokia is today a competent manufacturer ,a dexterous marketer and a nimble distributor,but it is not the most innovative.

Its global market share has shrunk from 38.6 percent in 2008 to 36.5 percent in the first half of 2009 Its share in the domestic market shrunk from 72.2 per cent in 2007 to49.7 per cent in Q1 of 2009.Nokia has traditionally been a strong player in the below Rs 4,000 segment that accounts for 77 percent of the market. But in the past couple of years over 20 China made local brands such as Fly, Spice, Micromax and Samsungs Guru have cornered about 15 percent of the market due to their low price points. At the top end, the Rs 10,000 plus segment is barely 6 percent of the market where rivals such as Blackberry, iPhone and HTC are gaining around. In the middle segment, Nokia is no more the customers only choice. Previously people were only looking for Nokia phones .But now customers also want to see Samsung, LG, and Sony Ericsson

Market Share of Nokia in 2007

8.1 2.3 7.3 Nokia Samsung LG

6.4

72.2

MOTOROLA

SONY ERICSSSON

Market Share in India in 2009

Nokia Samsung

30.9% 49.7%
2.1%
1.6% 0.9%

LG Motorola Sony Ericsson Huawei

6.9%

7.6%

Others

Business Objective
To determine the features of

competitive brand due to which the market share has decreased.

To determine peoples perception about the

brand.

To solve the main key issues of the

distributors.

Research Objective
Research objective is to determine:
The main factors playing a crucial role in the

minds of customer while selecting mobile handset.

The changed tastes and preferences of the people . Features which make people think of buying other

companies handsets.

Research Question
RQ 1.What is the demographic,psychographic and usage profile of the customers of Nokia?
Hypothesis :
H01:People who are initiator in buying nokia products are of age group between 18 to 28. H02:A typical nokia customer is technology oriented and innovator. H03 :People purchase nokia handsets with an intension of long term usage.

RQ 2:Is price elasticity of demand of Nokia handset is low ?

H01: Nokia handsets user are not price sensitive. H02: Price elasticity of handsets below Rs 4000 segment is very high.

RQ 3 : What are the features that influence customers to switch over to other brands quickly ?
H01:Consumers are more concerned about the price rather than the quality of handsets. H02:Consumers switch on to other brands due to their stylish looks and other new add on features.

RQ 4: What perception is there in the consumers mind about Nokia?

H01 :Nokia is perceived as most trustworthy company in mobile handsets market.

Research Design Methodology

Descriptive Conclusive Research Design Casual Exploratory

Sampling

Target Group
We have chosen a target group of people with age group of between 18 to 25 as people of this age group are active users and innovative in using technologies inbuilt in the mobile.

Sample Size and Coverage

The sample size will be above 100.We will be covering colleges and senior secondary schools.