Term Paper

Term Paper-Research Methodology Topic: Why Nokia losing Its Market Share In India? Under the Guidance of Faculty Member: Mrs. Kuldeep Kaur Lecturer LPU

Submitted by: Divyansh Negi Registration No.: 7470070046 Section: A17B1 Roll No.: RAI7B1A23 Program: B.Tech (IT)-MBA (Integrated)

Department of Management Lovely Professional University, Phagwara

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Acknowledgement First of all I would like to thank ALMIGHTY for giving me power to pen down the assignment. I thank the entire teaching staff especially Mrs. Kuldeep Kaur for sharing her valuable knowledge with us & for providing her abler guidance and support. I also thank to my classmate who every time helped me out and encouraged me for carrying out the task.

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CHAPTER 1 INTRODUCTION

In the financial year 2009 10, the market share of Nokia in India stood at 52.2%. Thats a good 11.8% fall from 64% in the last financial year. Samsung with its wide range of Corby and Star branded mobiles has caught the attention of young Indians that played its part in raising its Market share from 10% to 17.4%. LG stands third at 5.9% share. On the other hand, the Indian handset makers, whose combined market share was just lurking between 3 to 4% in the previous financial year has grown up to 14%. Micromax mobiles topped the chart (of Indian makers) with 4.1% share followed by Spice (3.9%) and Karbon mobiles (3%). Recent entrants such as Lava mobile, Lemon mobiles and Max mobile too are hovering around that 1% market share. Its not rocket science that why these Indian handset makers saw that instant success. Its all thanks to the falling telecom calling prices and hence the need for Dual sim mobiles. These handset makers made huge money in very little time and were sponsoring events like crazy, including the BCCI cricketing events, which isnt a small boys thing. For some reasons, Big players such as Nokia were reluctant to produce Dual Sim mobiles. Realizing this about to get worse situation, Nokia recently announced its first round of Dual Sim phones that will soon be introduced in India. When it does, it is sure to receive a warm response. Some call the Indian handsets as Made in China and sold under Indian brands seeing their awful UIs and cheap plastics. Yet, they are cheap and offer Dual Sim capability and hence people go crazy and buy them. Nokia, on the other hand is known for its Quality and longevity (which seriously lacks in the other category handsets) and hence should receive good, if not great response to its Dual sim mobiles. However, the Dual sim craze might not last longer as consolidation is expected in the Indian market when maintaining 2-3 Sim cards would prove to be heavy. And not to forget the 3G entrance to India in or around October this year when people would certainly look for 3G handsets.

http://www.sriraj.org/technology/mobile-market-share-india-nokia/

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The following trends of Indian Mobile Market come before us:

The growth has more or less flat [owing to low sales figure in Q1] in total, 101.54 million units of sales were registered. Local manufacturers* have grabbed 17.5% market share [from 0.9%, a year back] Only 5 local manufacturers in 2008 and the number stands at 28 now! Nokia market share in India fell from 56.2% share in 2008 to 54.1% in 2009. Samsung Electronics Co. Ltds share rose marginally to 9.7% from 9.5%. LGs share dropped from 7.2% to 6.4%, Of the local manufacturers, Micromax leads the race and holds a market share stands of 4.8%. G- Five also show good growth in Indian Mobile Market acquire more than 5% market share. G- Five attract Indian poor and middle level mobile consumers due to its dual Sim facility at very low cost. Micromax also give a great competition with 80% growth in rural areas. Micro-Max acquire 4.1% market share just in few months and its increasing continuously. Samsung also overtake Motorola in India, now its share increases more than 12% which is big concern for Nokia marketing share. Indian other desi mobile companies like Lava, Karbonn, Lemon, Max etc. comes in the marketing ready to give competition to Nokia. Above four companies have more than 5% of Indian Mobile Market. Although Nokia still has 52% share in Indian market but its total revenue dropping to Rs. 14100 crore this year from Rs. 16567 crore in last year. Nokia lost its 12 %market share in the last year.

http://www.pluggd.in/mobile-sales-market-share-in-india-297/

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OBJECTIVE OF STUDY: The main object of my study is: 1) What are the main reasons behind Nokia losing its market share in Indian mobile market? 2) Why Nokia lacking behind in market share from other companies. 3) Is it serious matter for Nokia that its market share going downfall.

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CHAPTER 2 REVIEW OF LITERATURE

1) International President of G- five GEFF ZHANG tells that G- Five have more than 5%
share in Indian market and contributes the 50% of company global revenue. G- Five attracts customers due its low price with rich features like Dual Sim, MP3 Player etc. He also say that they open fully operational 500 service centre in India. Company also offering 500 days warranty against the normal industry practice of 365 days. They are also introducing range of smart phones and 3G phones to cater to more evolved consumers. They also have big team to distribute its models in all over India.

2) The phones known as china phones chinco mobiles which are coming from china have
unique selling points, cheap price tag and same plate-form. When the original mobiles are selling their mobiles at $400 to $500 where their fakes are selling for less than $100 which contain two sim cards so, people preferring cheap mobile phones against the original products. Millions of china phones are flooding in India and other Asia countries on daily basis and so being about. The fact is that china hones are cheap, it does not
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means they are inferior. These phones are giving high quality features at low price which is an upto attract consumers

3) Indian mobile market expert ASSEN RASTOGI that Nokia ruled the Mobile hand set
market till a couple of years back like the colossus. Before last two years Nokia have over70% market share but the slide happened in last year. When Nokia lost its 5% market share in q2 and its declining remains continue during the year. The problems with Nokia are in its ability to develop a good smart phone or once which have Dual or trip sim other such unique facility, although Nokia tried its N8 Model but its does not gets report in Indian market. The likes of Micro-max, Karbonn and G- Five have literally change mobile play in India with their value for money products.

4) Indian home made Micro-Max is now beating Nokia in all aspects. Micro-Max is on top
position in Indian Mobile Market with 80% growth in rural areas while Nokia market share is going down. Micro- Max has 4.1% market share just in few months. Micro-Max is leading mobile firm in India is going a head to healthy competition with other mobile competitors. Micro-Max is getting popularity as cheap, long battery back up and quality mobile manufacture that was Nokia in India. The Micro-Max understands the real market and provides the best quality with latest technology mobile Phones at affordable prices with easy availability. Company launched 37 mobile handsets with in a one and a half year and company sell approximate 1 million handsets.

5) Nokia of course leads the market but surprise comes from samasung. Samasung has
overtaken Motorola in Indian handset market as the latest figures; Samasung comes to the second position with the 7% market share. Nokia success is mainly attributed to the distribution deals they linked estimated 79000 retail outlets in India. Nokia market share has gone down in past few months as the other mobile manufactures are building a strong retail presence in country. All other manufactures also adopting same strategy like Nokia to their in every corner.
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6)Nokia launches N8 mobile model on 12 oct,2010, this set has amazing features include
12.1 mega-pixel camera, FM transmitter, easy USB support and many more and N8 is an attempt by Nokia to regain its market share by proving the relevance of its products to its fast changing consumer needs but its seems a bit to late because they are competitor products already in the market with the great technology mobiles like Micro-Max. Through N8 Nokia want to gain its market share it means Nokia already concern about their downfall and heavy competition in market.

7) Nokia market share is fallen to 31.5% market share according to IDC report. Reports
suggest that domestic manufactures such as Micro-max, Spice and Lava are edging their into the bottom end of Indian mobile market while apple, blackberry and Rim are realising the cream on the top. The Chinese handset maker called G- five is said to eating the Nokia market share. G-Five gained its popularity due to low price. Now days consumers are getting attract to those company that offer quality features at lucrative prices rather than going for a brand name. This has resulted downfall in Nokia market.

8) KAN SHARMA states that it is look like the golden era of our Desi mobile headsets
brands has just began. According to the survey Indain manufacture grabbed a 14% of market share in year 2009-10 which was just 4% during the last year. Although, Nokia is giant with 52 % market share but its market share is fall by 12% in last year even the Nokia launching 22 new devices and making the handsets available across 2 lakh retail outlets but its total revenue dropped to 14100 crore, in this year from rupees 16567 crore in last year.

9) After 2003 when Chinese mobile entered in Indian market, it attracts the low level
consumer with low price strategy and highly facilitated mobile. Now, small and Indian
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manufactures are producing mobile phone models just in several weeks like Nokia. India mobile manufactures already plan to set their new plant with big investment. The price range Rs 2000 to Rs 6000 is growing as a fastest ranges that at about 30% annual growth rate. As most Indian consumer belong to middle level the are attracted towards the Micromax and G5 mobiles which are providing feature like dual sim, extended battery life and many other attractive features.

10) Nokia has traditionally support on innovation not in price games. Price was never lead
to the market growth that said by the Nokia India sales director Vipal Sabharrwal. But ion real condition Nokia is failing in both price game and innovation. Nokia also failed in capturing the mood of the market like heavy prices, mobile with two sim cards whereas small companies like Zen and Karbonn manufacturing dual sim mobile. Nokia is legging behind in this technique. G5 is also threat for Nokia because people preferred to buy multimedia phone with dual sim in Rs1500 then to buy Nokia new black and white screen phones.

Nokia and other established hand set makers are quickly losing market share to push why a Chinese no brand vendors into the domestic market. Top selling Nokia Q3 market share shrank to 28.2% from 36.7% a year ago, to its lowest level since 1999. Mostly Chinese films using cheapest equipment mobiles and flooding them to India Africa and Latin America. It is an big issue for Nokia then other brands because Chinese phones just eating Nokia market share by a low price strategy.

11) Nokia is facing stiffed competition from local plays in India mobile phone market.
India is the second largest mobile phone market after china and accounts for around 20% of mobiles phone in emerging market. Nokia loses its market share to its rivals like Samsung, Micromax and Karbonn because it neglected emerging trends in Indian mobile phone market. Nokia has been slow to bring out the popular features like dual sim card

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and social networking applications. At the same time its competitors have invested in heavily in advertising that have help red them to grow them rapidly.

12) Nokia launches 22 devises in financial year in 2009-10 and increase its retail outlets by
45% in rural areas. In India betting big on life tool products even though the company seems to losing the smart phone work. Company is lagging behind to launch the dual sim phone and other innovative ideas not just market share, Nokia is losing mind share too. Now company is looking for a model-l 100 phone magic.

13) Micromax is a Gurgaon based company has introduced 37 phones just over a year
designing them in India and manufacturing them with the help of partners in china. The company has kept their prise affordable they start at $ 40 and provide latest facility mobile like WI-Fi, 3G and GPS capability. Company also huge benefit from advertisement in IPL. It attracts Nokia consumers Micromax beats Nokia in both price strategy and in advertisement strategy. Micromax also designed all its phone to hold two sims where as Nokia does not launch its own dual sim phones.

14) At high price range Nokia is losing its market share to Apple I phone and Blace Berry
and in low range mobile market Chinas and Indian domestic phone companies eating the market share of the Nokia. Nokia suffered a 14% year on year profit decline and it waits for gripped the market. Nokia is pinning its hopes on N8. Nokia claims that this new phone will have user experience superior than any other Nokia phone. Nokia has lagged behind when it comes to smart phones, people preferred buying popular I phones or android equipped smart phone then Nokia Simbian OS model.

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CHAPTER 3 NOKIA INDUSTRY

Nokia Corporation is a Finnish multinational communications corporation that is headquartered in Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki. Nokia is engaged in the manufacturing of mobile devices and in converging Internet and communications industries, with over 132,000 employees in 120 countries, sales in more than
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150 countries and global annual revenue of over 42 billion and operating profit of 2 billion as of 2010. It is the world's largest manufacturer of mobile phones: its global device market share was 31% in the fourth quarter 2010, up from an estimated 30% in third quarter of 2010 but down from an estimated 35% in the fourth quarter of 2009. Nokia's estimated share of the converged mobile device market was 31% in the fourth quarter, compared with 38% in the third quarter 2010. Nokia produces mobile devices for every major market segment and protocol, including GSM, CDMA, and W-CDMA (UMTS). Nokia offers Internet services such as applications, games, music, maps, media and messaging through its Ovi platform. Nokia's subsidiary Nokia Siemens Networks produces telecommunications network equipment, solutions and services. Nokia is also engaged in providing free digital map information and navigation services through its wholly owned subsidiary Navteq. Nokia also has greater dependency on England based company duo namely Symbian Corporation for its mobile operating systems and OVI for its mobile based application software development and distribution, which has made Nokia as highest selling mobile phone vendor within the last few years. Nokia has sites for research and development, manufacture and sales in many countries throughout the world. As of December 2010, Nokia had R&D presence in 16 countries and employed 35,870 people in research and development, representing approximately 27% of the group's total workforce. The Nokia Research Centre, founded in 1986, is Nokia's industrial research unit consisting of about 500 researchers, engineers and scientists. It has sites in seven countries: Finland, China, India, Kenya, Switzerland, the United Kingdom and the United States. Besides its research centres, in 2001 Nokia founded (and owns) INdT Nokia Institute of Technology, a R&D institute located in Brazil.[8] Nokia operates a total of 9 manufacturing facilities located at Salo, Finland; Manaus, Brazil; Cluj, Romania; Beijing and Dongguan , China; Komrom, Hungary; Chennai, India; Reynosa, Mexico; and Masan, South Korea. Nokia's industrial design department is headquartered in Soho in London, UK with significant satellite offices in Helsinki, Finland and Calabasas, California in the USA. Nokia is a public limited liability company listed on the Helsinki, Frankfurt, and New York stock exchanges. Nokia plays a very large role in the economy of Finland; it is by far the largest Finnish company, accounting for about a third of the market capitalization of the Helsinki Stock Exchange as of 2007, a unique situation for an industrialized country. It is an important employer in Finland and several small companies have grown into large ones as its partners and subcontractors. Nokia increased Finland's GDP by more than 1.5% in 1999 alone. In 2004 Nokia's share of the Finnish GDP was 3.5% and accounted for almost a quarter of Finland's exports in 2003. In recent years, Finns have consistently ranked Nokia as one of the best Finnish brands. In 2008, it was the 27th most respected brand among Finns, down from sixth place in 2007. The Nokia brand, valued at $29.5 billion, is listed as the eight most valuable global brands in the Interbrand/Business Week Best Global Brands list of 2010 (first non-US company). It is the number one brand in Asia and Europe , the 41st most admirable company worldwide in Fortune's World's Most Admired Companies list of 2010 (third in Network and Other
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Communications Equipment, seventh non-US company), and the world's 120th largest company as measured by revenue in Fortune Global 500 list of 2010. As of 2010, AMR Research ranks Nokia's global supply chain number nineteen in the world. In July 2010, Nokia announced that their profits had dropped 40%. In the global Smartphone rivalry, Nokia dominates the worldwide mobile markets, but remains fragile in the United States. On 11 February 2011, Nokia announced a partnership with Microsoft which will mean most future Nokia smart phones will be powered by the Windows Phone 7 operating system

ONLINE SERVICE .mobi and the Mobile Web Nokia was the first proponent of a Top Level Domain (TLD) specifically for the Mobile Web and, as a result, was instrumental in the launch of the .mobi domain name extension in September 2006 as an official backer. Since then, Nokia has launched the largest mobile portal, Nokia.mobi, which receives over 100 million visits a month. It followed that with the launch of a mobile Ad Service to cater to the growing demand for mobile advertisement. Ovi Ovi, announced on August 29, 2007, is the name for Nokia's "umbrella concept" Internet services. Cantered on Ovi.com, it is marketed as a "personal dashboard" where users can share photos with friends, download music, maps and games directly to their phones and access third-party services like Yahoo's Flickr photo site. It has some significance in that Nokia is moving deeper into the world of Internet services, where head-on competition with Microsoft, Google and Apple is inevitable. The services offered through Ovi include the Ovi Store (Nokia's application store), the Nokia Music Store, Nokia Maps, and Ovi Mail, the N-Gage mobile gaming platform available for several S60 smartphones, Ovi Share, Ovi Files, and Contacts and Calendar. The Ovi Store, the Ovi application store was launched in May 2009. Prior to opening the Ovi Store, Nokia integrated its software Download! store, the stripped-down MOSH repository and the widget service WidSets into it. On March 23, 2010, Nokia announced launch of its online magazine called the Nokia Ovi. The 44-page magazine contains articles on products by Nokia, what Ovi stands for , tips and tricks on the usage of Nokia mini laptop Booklet 3G, latest reviews of mobile applications, news about the mobile maker's services and apps such as Ovi maps, files and mail. Users can download the magazine as a PDF or view it online from the Nokia website. My Nokia Nokia offers a free personalised service to its subscribers called My Nokia (located at my.nokia.com). Registered My Nokia users can get free services as follows:

Tips & tricks alerts through web, e-mail and also mobile text message.
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My Nokia Backup: A free online backup service for mobile contacts, calendar logs and also various other files. This service needs GPRS connection. Numerous ringtones, wallpapers, screensavers, games and other things can be downloaded free of cost.

Comes With Music On December 4, 2007, Nokia unveiled their plans for the "Nokia Comes With Music" initiative, a program that would partner with Universal Music Group International, Sony BMG, Warner Music Group, and EMI as well as hundreds of Independent labels and music aggregators to bundle 12, 18, or 24 months worth of unlimited free music downloads with the purchase of a Nokia Comes With Music edition phone. Following the termination of the year of free downloads; tracks can be kept without having to renew the subscription. Downloads are both PC and mobile-based. On January 18, 2011, Nokia decided to withdrew its "Comes with Music" program in 27 countries, due to its failure to gain traction with customers or mobile network operators. The service will still be offered in China, India, Indonesia, Brazil, Turkey and South Africa where take-up has been better. Nokia Messaging On August 13, 2008, Nokia launched a beta release of "Nokia Email service", a new push email service, since graduated as part of Nokia Messaging. Nokia Messaging operates as a centralised, hosted service that acts as a proxy between the Nokia Messaging client and the user's e-mail server. It does not allow for a direct connection between the phone and the e-mail server, and is therefore required to send e-mail credentials to Nokia's servers. IMAP is used as the protocol to transfer emails between the client and the server.

CHAPTER 4 RESEARCH METHODOLOGY

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The chapter of research methodology will indicate the objective of the study, its universe, sampling design used, collection of data, statistical tools employed for analysis of data and the limitation of the study. Title of the project Why Nokia Losing Its Market Share? Industry - A Comparative Study between Nokia mobiles and different Brands

Objective of the Study Research without any objective is misleading. For any research work, however small it may be, it has to be meaningful and it needs to have some objective. The present study has been undertaken with the sole objective of analyzing the down market of Nokia due to the market have more choices of mobile phones, following have been the objectives of the study.

The main object of my study is: 1) What are the main reasons behind Nokia losing its market share in Indian mobile market? 2) Why Nokia lacking behind in market share from other companies. 3) Is it serious matter for Nokia that its market share going downfall.

PLAN ADOPTED FOR RESEARCH STUDY The research methodology adopted for the study is summarized in a flow chart on next page. First part of research was exploratory. Secondary data was collected through various sources such as various journals, magazines, company websites and internet. Data gathered in this stage was used as input for development of questionnaire.

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After exploratory research, descriptive research was conducted using survey method. Primary data has been collected by using a questionnaire. The questionnaire was designed on the basis of certain pre-determined parameters of Mobile market derived from exploratory research. The questionnaire was of structured type. The questionnaire contained questions relating to
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different mobile phones rate, people preferences on different companies mobile and their ability to pay for the mobile phones.

SAMPLING PLAN Sample Size The total sample size is based on 100 respondents. The respondents of present study belong to different age groups, educational qualifications, sex and different spans of experience. Data collection The selection of sample for the collection of primary data was based on convenient sampling technique. Respondents: All mobile users are focused for this survey. The number of people are selected on the basis of using mobile phones by user, any type of mobile user are focused.
A.

B. Tools: Separate pre-tested questionnaires were designed for employees. The questionnaires were pre-tested for clarity on two respondents. Improved questionnaires were used for final collection of data. C. Administration: The investigator (student) personally administered the questionnaire. In the next stage the questionnaire was administered. The population/universe for the survey consisted only mobile user of any age. The primary data received through questionnaires from people who filled the survey was classified and tabulated. Quantitative and qualitative analysis was done and inferences were drawn in line with the objective of the study.

STATISTICAL TOOLS USED FOR DATA ANALYSIS Data collected has been analyzed on the basis of weighted average score. The score ranged from 5 to 1. The weights were assigned as 5 for highly satisfied or strongly agree, 4 for satisfied or agree, 3 for neither satisfied nor dissatisfied or neither agree nor disagree, 2 for dissatisfied or disagree and 1 for highly dissatisfied or strongly disagree. Tables and Bar graphs used for this purpose.

LIMITATIONS OF STUDY
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The limitations encountered during the course of present study are detailed as under:1. Since the study is based on a pre-designed questionnaire there is possibility of error due to gap between the truth and the observation. 2. The selection of respondents was based on convenience sampling and it might not be truly representative of the universe. 3. Although utmost care has been taken to get accurate results, yet because of the risk of ambiguities and misinterpretation on the part of respondents, some element of inaccuracy could have been there. 4. Since a small sample size has been taken, the possibility of sampling errors cannot be ruled out in the study. The constraint of time also prevented an in- depth research of the subject under study.

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CHAPTER 5 DATA ANALYSIS AND INTERPRETATION

Frequency Table

Q1 Cumulative Percent 72.0 100.0

Frequency Valid male female Total Missing Total System 72 28 100 1 101

Percent 71.3 27.7 99.0 1.0 100.0

Valid Percent 72.0 28.0 100.0

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Interpretation: this graph shows the gender who respond the most are male. Q2 Cumulative Percent 82.0 91.0 100.0

Frequency Valid 6-25 26-40 above 40 Total Missing Total System 82 9 9 100 1 101

Percent 81.2 8.9 8.9 99.0 1.0 100.0

Valid Percent 82.0 9.0 9.0 100.0

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Interpretation: this graph shows that people who use phone generally youngsters and comes in the category of 6 years to 25 years.

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Q3 Cumulative Percent 2.0 34.0 71.0 99.0 100.0

Frequency Valid matriculation higher secondary Graduation post graduation Any other Total Missing Total System 2 32 37 28 1 100 1 101

Percent 2.0 31.7 36.6 27.7 1.0 99.0 1.0 100.0

Valid Percent 2.0 32.0 37.0 28.0 1.0 100.0

Interpretation: As we can see that the respondents who response to the questions is very educated because all are graduates and postgraduates.

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Q4 Cumulative Percent 9.0 18.0 25.0 100.0

Frequency Valid Serviceman Businessman Govt. Service Any Other Total Missing Total System 9 9 7 75 100 1 101

Percent 8.9 8.9 6.9 74.3 99.0 1.0 100.0

Valid Percent 9.0 9.0 7.0 75.0 100.0

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Interpretation: In this charts user who are students or under 18 is the respondent. This shows that the students are the aggressive users and they are not working for any organization. Q5 Cumulative Percent 26.0 100.0

Frequency Valid below 50000 Student/other Total Missing Total System 26 74 100 1 101

Percent 25.7 73.3 99.0 1.0 100.0

Valid Percent 26.0 74.0 100.0

Interpretation: This graph shows that respondent are student manly who are not earning the money.

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Q6a Cumulative Percent 52.6 100.0

Frequency Valid Ticked unticked Total Missing Total System 51 46 97 4 101

Percent 50.5 45.5 96.0 4.0 100.0

Valid Percent 52.6 47.4 100.0

Interpretation:

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Q6b Cumulative Percent 100.0

Frequency Valid Missing Total unticked System 98 3 101

Percent 97.0 3.0 100.0

Valid Percent 100.0

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Q6c Cumulative Percent 32.7 100.0

Frequency Valid Ticked unticked Total Missing Total System 32 66 98 3 101

Percent 31.7 65.3 97.0 3.0 100.0

Valid Percent 32.7 67.3 100.0

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Q6d Cumulative Percent 100.0

Frequency Valid Missing Total unticked System 99 2 101

Percent 98.0 2.0 100.0

Valid Percent 100.0

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Q6e Cumulative Percent 8.2 100.0

Frequency Valid Ticked unticked Total Missing Total System 8 90 98 3 101

Percent 7.9 89.1 97.0 3.0 100.0

Valid Percent 8.2 91.8 100.0

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Q6f Cumulative Percent 8.0 100.0

Frequency Valid Ticked unticked Total Missing Total System 8 92 100 1 101

Percent 7.9 91.1 99.0 1.0 100.0

Valid Percent 8.0 92.0 100.0

Interpretation: Above all six graphs shows that the most of the user are Nokia or Samsung users or both.

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Q7 Cumulative Percent 50.0 81.0 94.0 100.0

Frequency Valid below 5000 5000-10000 10000-20000 above 20000 Total Missing Total System 50 31 13 6 100 1 101

Percent 49.5 30.7 12.9 5.9 99.0 1.0 100.0

Valid Percent 50.0 31.0 13.0 6.0 100.0

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Interpretation: This graph shows that the people or students who use mobile are not willing to pay more than 5000 for mobile phones, which shows that people look for cheap mobile and high technology.

Q8 Cumulative Percent 17.0 29.0 59.0 100.0

Frequency Valid Physical appearance Size Price Function and features Total Missing Total System 17 12 30 41 100 1 101

Percent 16.8 11.9 29.7 40.6 99.0 1.0 100.0

Valid Percent 17.0 12.0 30.0 41.0 100.0

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Interpretation: as we can see above graphs that most of the public is young or students so they generally look for the functions and features in a mobile rather than physical appearance etc.

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Q9 Cumulative Percent 87.9 100.0

Frequency Valid yes No Total Missing Total System 87 12 99 2 101

Percent 86.1 11.9 98.0 2.0 100.0

Valid Percent 87.9 12.1 100.0

Interpretation: this graph shows that almost all users are brand conscious when purchasing the mobile phones.

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Q10 Cumulative Percent 5.1 18.2 44.4 100.0

Frequency Valid 0-6 months 6 months-1 year 1 - 2 years above 2 years Total Missing Total System 5 13 26 55 99 2 101

Percent 5.0 12.9 25.7 54.5 98.0 2.0 100.0

Valid Percent 5.1 13.1 26.3 55.6 100.0

Interpretation: In this graph, we interpreted that users are not willing to change their mobile phone for long time, it shows their purchasing power.

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Q11 Cumulative Percent 17.2 59.6 100.0

Frequency Valid yes No can't say Total Missing Total System 17 42 40 99 2 101

Percent 16.8 41.6 39.6 98.0 2.0 100.0

Valid Percent 17.2 42.4 40.4 100.0

Interpretation: for launching of a new product in market or mobile phone people are not interested in that, it shows the loyalty towards the brand.

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Q12a Cumulative Percent 65.7 89.9 93.9 100.0

Frequency Valid Rank-1 rank-2 rank-3 Rank-5 Total Missing Total System 65 24 4 6 99 2 101

Percent 64.4 23.8 4.0 5.9 98.0 2.0 100.0

Valid Percent 65.7 24.2 4.0 6.1 100.0

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Q12b Cumulative Percent 48.0 73.0 92.0 96.0 100.0

Frequency Valid Rank-1 rank-2 rank-3 Rank-4 Rank-5 Total Missing Total System 48 25 19 4 4 100 1 101

Percent 47.5 24.8 18.8 4.0 4.0 99.0 1.0 100.0

Valid Percent 48.0 25.0 19.0 4.0 4.0 100.0

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Q12c Cumulative Percent 43.0 67.0 87.0 94.0 100.0

Frequency Valid Rank-1 rank-2 rank-3 Rank-4 Rank-5 Total Missing Total System 43 24 20 7 6 100 1 101

Percent 42.6 23.8 19.8 6.9 5.9 99.0 1.0 100.0

Valid Percent 43.0 24.0 20.0 7.0 6.0 100.0

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Q12d Cumulative Percent 46.5 75.8 91.9 96.0 100.0

Frequency Valid Rank-1 rank-2 rank-3 Rank-4 Rank-5 Total Missing Total System 46 29 16 4 4 99 2 101

Percent 45.5 28.7 15.8 4.0 4.0 98.0 2.0 100.0

Valid Percent 46.5 29.3 16.2 4.0 4.0 100.0

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Q12e Cumulative Percent 44.0 63.0 74.0 90.0 100.0

Frequency Valid Rank-1 rank-2 rank-3 Rank-4 Rank-5 Total Missing Total System 44 19 11 16 10 100 1 101

Percent 43.6 18.8 10.9 15.8 9.9 99.0 1.0 100.0

Valid Percent 44.0 19.0 11.0 16.0 10.0 100.0

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Q12f Cumulative Percent 49.0 64.3 75.5 89.8 100.0

Frequency Valid Rank-1 rank-2 rank-3 Rank-4 Rank-5 Total Missing Total System 48 15 11 14 10 98 3 101

Percent 47.5 14.9 10.9 13.9 9.9 97.0 3.0 100.0

Valid Percent 49.0 15.3 11.2 14.3 10.2 100.0

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Interpretation: all these six graph shows that the users affected by the mobile phones attribute which are affected whole selling of any branded mobile phone.

Q13a Cumulative Percent 40.4 100.0

Frequency Valid Ticked unticked Total Missing Total System 40 59 99 2 101

Percent 39.6 58.4 98.0 2.0 100.0

Valid Percent 40.4 59.6 100.0

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Q13b Cumulative Percent 28.6 100.0

Frequency Valid Ticked unticked Total Missing Total System 28 70 98 3 101

Percent 27.7 69.3 97.0 3.0 100.0

Valid Percent 28.6 71.4 100.0

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Q13c Cumulative Percent 36.1 100.0

Frequency Valid Ticked unticked Total Missing Total System 35 62 97 4 101

Percent 34.7 61.4 96.0 4.0 100.0

Valid Percent 36.1 63.9 100.0

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Q13d Cumulative Percent 7.1 100.0

Frequency Valid Ticked unticked Total Missing Total System 7 92 99 2 101

Percent 6.9 91.1 98.0 2.0 100.0

Valid Percent 7.1 92.9 100.0

Interpretation: This shows that the people buying behavior is affected by the persons who surrounded them or their ideals in their life or role models.

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Q14 Cumulative Percent 58.0 100.0

Frequency Valid yes no Total Missing Total System 58 42 100 1 101

Percent 57.4 41.6 99.0 1.0 100.0

Valid Percent 58.0 42.0 100.0

Interpretation: this graph shows that the user or most of the young users are attracted towards the advanced technology which is keen to buy the dual sim mobile.

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Q15 Cumulative Percent 58.8 100.0

Frequency Valid yes no Total Missing Total System 57 40 97 4 101

Percent 56.4 39.6 96.0 4.0 100.0

Valid Percent 58.8 41.2 100.0

Interpretation: this graph shows that the Nokia sells its technology at a very high rate which really affects its market and also the way for other mobile market competency to enter in this filed.

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Q16 Cumulative Percent 47.0 71.0 100.0

Frequency Valid yes no not sure Total Missing Total System 47 24 29 100 1 101

Percent 46.5 23.8 28.7 99.0 1.0 100.0

Valid Percent 47.0 24.0 29.0 100.0

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Interpretation: Most of the people are agree with the point that the Chinese mobile really down the Nokia market, in terms of selling.

Q17 Cumulative Percent 6.1 52.0 82.7 100.0

Frequency Valid FAIR GOOD EXCELLENT SUPERB Total Missing Total System 6 45 30 17 98 3 101

Percent 5.9 44.6 29.7 16.8 97.0 3.0 100.0

Valid Percent 6.1 45.9 30.6 17.3 100.0

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Interpretation: This graph show that Nokia mobile are good and heavy duties mobiles even Nokia sells its product at a very high price.

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Q18 Cumulative Percent 35.4 76.8 89.9 100.0

Frequency Valid <5000 5000-10000 10000-15000 15000-20000 Total Missing Total System 35 41 13 10 99 2 101

Percent 34.7 40.6 12.9 9.9 98.0 2.0 100.0

Valid Percent 35.4 41.4 13.1 10.1 100.0

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Q19 Cumulative Percent 54.0 98.0 100.0

Frequency Valid Good fair Poor Total Missing Total System 54 44 2 100 1 101

Percent 53.5 43.6 2.0 99.0 1.0 100.0

Valid Percent 54.0 44.0 2.0 100.0

Interpretation: this graph shows that the Nokia services are best and fair in terms of timings and loyality.

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Q20 Cumulative Percent 2.0

Frequency Valid almost satisfied battery backup, shock resistance, water resistance and many other issuse that are not yet removed battery baqckup, shoke resistance, water resistance and maintain issue that arenot yet correct. fair good it is necessity of todays life, we can't avoid it. it is ver good it is very good it's a necesity for todays lif, we can't avoid it it's easy mode of communication it's easy mode of communication. lower down the rate of windows phone lowrer down price rate of windows mobile phone mobile phone are necessity in todays scenario
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Percent 2 2.0

Valid Percent 2.0

1.0

1.0

3.0

1.0

1.0

4.0

3 2 1 1 1 1

3.0 2.0 1.0 1.0 1.0 1.0

3.0 2.0 1.0 1.0 1.0 1.0

6.9 8.9 9.9 10.9 11.9 12.9

1.0

1.0

13.9

1.0

1.0

14.9

1.0

1.0

15.8

1.0

1.0

16.8

1.0

1.0

17.8

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Factor analysis

KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig. .603 104.072 15 .000

The above table shows that the value is greater than the 0.5 so we can move ahead with our research.

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Communalities Initial Q12a Q12b Q12c Q12d Q12e Q12f 1.000 1.000 1.000 1.000 1.000 1.000 Extraction .399 .756 .682 .652 .565 .543

This able shows that what are the main points according to the user. Physical appearance is the most critical factor for busing a mobile because its extraction value is highest and rest are size, function, hardware, inbuilt software and at last price. Total Variance Explained Initial Eigen values Compo nent 1 2 3 4 5 6 Total 2.133 1.463 .884 .626 .559 .335 % of Variance Cumulative % 35.551 24.384 14.739 10.433 9.309 5.584 35.551 59.935 74.674 85.107 94.416 100.000 Extraction Sums of Squared Loadings Total 2.133 1.463 % of Variance Cumulative % 35.551 24.384 35.551 59.935

Extraction Method: Principal Component Analysis.

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As we can see that there are two Eigen values which are greater than the one which shows that two groups can be made i.e we can classify our whole search in two big topics.

Rotated Component Matrixa Component 1 Q12a Q12b Q12c Q12d Q12e Q12f -.620 .851 .796 .122 -.157 .366 2 -.120 -.178 .219 .798 .735 .640

So the two groups are models and specification.

Discriminant Analysis Q7 dependency on Q12 Wilks' Lambda Test of Function(s) 1 through 3 2 through 3 3

Wilks' Lambda Chi-square .584 .836 .928 49.236 16.412 6.878

df 15 8 3

Sig. .000 .037 .076

As we can see that the significant value is very much less than the Wikis Lambda, which shows that the questionnaire is very much affective.

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Cluster Analysis Ward Linkage

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Agglomeration Schedule Cluster Combined Stage 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Cluster 1 48 46 43 38 37 33 30 26 25 21 20 19 16 31 11 9 5 41 36 32 27 Cluster 2 98 97 95 90 89 85 83 79 78 74 73 72 69 66 63 61 57 93 88 84 80 Coefficients .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .500 1.000 1.500 2.000
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Stage Cluster First Appears Cluster 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Cluster 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Next Stage 46 65 62 50 47 40 52 59 54 52 55 38 45 59 34 43 62 53 67 41 68

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Cluster 2: 31, 46, 70, 78, 80

Cluster3: 26, 37, 49, 60,

Cluster9: 16, 43, 50, 63

Cluster17: 30, 44, 51, 71, 75, 79

CHAPTER 6 CONCLUSION AND RECOMMENDATIONS

NOKIA, the market leader facing profit erosion like never before and company is banking on new models and entering in to different segments like laptops in order to remain in the no.1 position . The main reason of the erosion of market share is the indroction of new entrants in the market like Maxx, Lava, Micromax . They launched their cell phones at a very cheaper price than that of Nokia and a set of features which are very much similar to Nokia phone. There are a few recommendations from my side to Nokia inorder to regain the lost market share.

Nokia should produce new models of mobiles at affordable cost. It should reduce the manufacturing cost to increase the profits. Nokia being a market leader, the fundamental challenge is to grow their market share. At one level, it is important to grow penetration in fast-growing rural segment and also to work with all the players of the ecosystem. Ensure their partners, distributors and retailers make a fair return on Nokia and continue to be associated. As this industry is continually competitive as this is about rapid innovation, Nokia should concentrate on new application. In case of retail strategy-moving from devices to solutions they need to move from physical business model to a combination of physical & virtual ones.

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References
1. http://economictimes.indiatimes.com/opinion/interviews/gfive-customers-are-itsambassadors-jeff-zhang/articleshow/7226621.cms 2. http://www.vanguardngr.com/2011/01/the-rise-and-fall-of-counterfeit-phones/ 3. http://trak.in/tags/business/2010/12/31/indian-mobile-handset-market-growth/ 4. http://www.prlog.org/10886380-made-in-india-micromax-now-beatingnokiawwwmicromax-mobileinfo.html\ 5. http://www.pluggd.in/mobile/mobile-handset-market-share-india-nokia-leads-whilesamsung-beats-motorola-1684/ 6. http://www.watblog.com/2010/10/13/nokia-launches-n8-will-it-gain-market-share-fornokia/ 7. . http://www.dancewithshadows.com/tech/nokia-market-share-in-india-drops-samsungloses-2nd-spot-to-the-chinese-gfive/
8. http://www.cellpassion.com/2010/06/24/homegrown-brands-eat-away-nokia-market-

share-in-india/. 9. http://www.indiabandwidth.com/db/article/654 10. http://business.outlookindia.com/article.aspx?267676 http://www.reuters.com/article/idUSTRE6A91BD20101110 11. . https://www.trefis.com/company?article=17966# 12. http://www.pluggd.in/nokia-market-share-india-297/

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13. http://www.intomobile.com/2007/02/18/nokia-lost-8-10-market-share-in-india-overthe-course-of-a-year/ 14. http://www.businessweek.com/magazine/content/10_34/b4192036523358.htm 15. . http://www.watblog.com/2010/07/23/nokia-profit-goes-down-look-for-a-revival/

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