NOKIA

 –  Dire  Need  for  a  Focused  Approach  

 

Khushi  Rawat  –  M00289080  

Tausif  Patel  –  M00246730  
Satish  Sarma  –  M00247930  

M i d d l e s e x   U n i v e r s i t y  
Executive Summary
The purpose of the study will be a lifestyle study to ascertain the need for
Nokia to have large product variants in the market. Study shall aim to prove
the hypothesis that a smaller number of product variants will be enough to
satiate the demand in the marketplace. Market share can be enhanced as a
byproduct of this study by centralizing their focus to cater to the major target
segments in the market. It shall be carried out as a qualitative and a
quantitative study in which the respondents chosen will majorly consist of the
decision makers for the purchase of mobile phone. A cluster analysis shall be
followed for the purpose of data analysis after compilation of the data using
the SPSS solution software.

Background
Nokia originally entered the Dubai market in the mid nineties where in product
were imported from international wholesalers. Nokia planned to operate in the
region with subcontinent distribution center but the high demand created a
requirement of having a regional distribution center. Nokia dominates the
mobile phone market but observers and analysts believe that this dominance
will be short-lived. In the ever-changing dynamic marketplace, the extreme
competition is resulting in the decline of Nokia’s market share. Many
questions need to be ascertained to justify this dwindling revenues and net
profits. A look at the end of quarter financials showcases the rising operational
costs coupled with the decline in profits (Nokia, 2009). The reason for this
scenario can be owed to the large number of products coming out in the
marketplace, which is causing the rise on R&D expenditure. Nokia faces the
innovation dilemma, in the inability of creating innovative new products they
are cannibalizing their existing product line-up (Gartenberg, 2009). This rise in
operational costs is forcing Nokia to increase their average sales price (ASP)
which is not a favorable alternative to choose in the economically downturn
market where the competition is selling similar products at reduced prices.
Cutting down on the number of product variants can be achieved by analyzing
consumer preferences in-depth and targeting only the major segments of the
market, rather than all.
Market Research Objective
Analysis into the falling market share will provide us reasons for
understanding as to how mighty companies succumb to the pressure of the
competition. This report shall provide us with a brief overview of the mobile
phone market and analyzes Nokia’s market position in developing market of
that of Dubai. This report shall aim to prove the hypothesis that Nokia should
consider cutting down on their product variants and the resulting number of
product variants will be enough for sustainable growth and increased profits.

Research Design
The research will reveal possible answers that satiate the need factor for the
consumer. The research will be carried out and a questionnaire shall be
prepared encapsulating a qualitative and quantitative data collection methods.
This will help in providing a higher credibility for the data collected, as one will
back the other. The chosen procedure of data collection is important as the
purchase decision for a mobile phone is stimulated by both the generic need
for the purchase as well as the perceptions and emotions of the buyer. The
target respondents shall be in the age limits of 16 years – 45 year olds as
Nokia’s marketing mix is primarily aimed towards these age group segments.
For the purpose of the study and due to the time constraints the number of
respondents chosen will be for 200 users. The primary research will be
carried out in two parts, one that will have a larger group of respondents than
the other. In-depth face-to-face interviews shall be performed so as to
minimize discrepancy in findings as well as to capture the true emotions,
which shall help in qualitative analysis. The second part of primary research
will be to distribute online questionnaires via E-mail, Social Networking sites,
etc. The aim for the second part will target and the questionnaire will be
reached to a minimum 200-300 mobile phone users, which will help in
providing data from a relaxed mindset of respondents, as they will have no
time pressure of any sort. An equal number of male and female respondents
shall be chosen with an effort to maintain a mix of different cultures.
Data Analysis
The primary data collected from the respondents shall be analyzed using the
SPSS (Statistical Package for the Social Sciences) statistical tool. SPSS is a
predictive analysis software solution to help in mapping data for further
studies.
Factor Analysis
The study will aim its focus towards the different needs (variables) that
creates a purchase. There are more than 15 variables under study, which will
be reduced to a smaller number concentrating on major variables.
Cluster Analysis
Under this study, the respondents will be aggregated in to groups of few that
make-up the major lifestyle segments. Additional tools such as K-Mean can
be applied to achieve a better segmentation. It will be presented in chart
forms in the final report for clarity.
Time Scale
Owing to the time constraints with the deadlines to be met in one week, the
research work will be distributed over the course of seven days. The first day
will be required in planning and building a database of potential respondents
to be chosen. It will also include other minor activities such as printing of
questionnaires, distributing work among the team member according to the
area of Dubai under study, distribution of electronic form of questionnaire
through social networking websites, etc. The rest of the days followed will
predominate interviews with the potential respondents. Each team member
will be allotted 10 respondent interviews to be carried out which by the end of
the duration of 5 working days will compile to 150 interviews. The last day
shall be allotted towards data compilation, sorting and merging this data in
with the SPSS package for data analysis. The final report shall be prepared
keeping in light the results derived from the analysis.
Works Cited
Gartenberg, M. (2009, December 1). Entelligence: Whats's the future of
Nokia? Retrieved January 18, 2010, from Engadget: www.engadget.com

Interbrand. (2009). Best Global Brands. Business Week.

Nokia. (2009). Nokia Conference Call. Third Quarter 2009 Financial Results.