Why Nokia Sales Are Declining?

Over the years the technology has been advancing and this has allowed us to send text messages by the use of our mobile phones. We can now access internet on out mobile phones, send emails receive pictures, play games and so much more. The first mobile phone device was introduced in 1973 by Motorola and by 1983 it was available all over. Cell phones have immensely advanced not only in function but also design and size. The telecommunication device market over the years has largely grown with the various types of brands coming into the market.

Today the top mobile phone vendors include Samsung, Nokia Apple LG and Sony Ericsson. As compared to a few years back when the mobile phones were introduced there were just a few limited brands mainly Motorola, Nokia, Sony which merged which Ericsson and is now called Sony Ericsson. Nokia was founded in the year 1865 in the town of Nokia in central Finland it was originally a manufacturer of pulp and paper. During the 1960s Nokia began to make its way in the telecommunication market and by the end of the 1980s the company diversified to the electrical sector which improved the revenue sales by 60% from the year 1980-1988.

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In 1994 Nokia introduced the 2100 series mobile phone, the company’s target was to sell 500,000 units but surprisingly the company sold 20 million. Nokia now is one of the major shareholders market competing side by side with apple and Samsung one of the biggest shareholders in this market too Nokia is responsible for the following things: • The promotion and marketing of its product all over the world making sure its product reaches the potential market and makes the required sales. Engaging with the consumers and making them feel like part of the “Nokia family” by sending out emails on special offers or invitations for events they may host in that country. • Basing their branches in different locations in the world. 1. 2 Statement of the problem Early this year Nokia has suffered a major blow with the declining sales. One of the reasons as to the declining sales was due to the operating system Nokia has adopted Symbian, which is a mobile operating system designed for Smartphone’s. Consumers today prefer Apple, windows mobile, Blackberry O. S and android.

Over the years Nokia has faced some new and tough competitors which mainly include IPhone and Samsung. This has not only been the main threat, there have been counterfeits that have been made that look exactly as the original and operate as the original and some consumers have switched over to this since they are cheaper. Another reason is Nokia has been in the market for very many years but did not move as fast as it should have and its competitors took advantage of this by bringing totally new products for example the iPhone which was introduced with a full touchscreen function.

This research is therefore conducted to determine the factors affecting promotion and sales strategies adopted by Nokia. 1. 3 Objectives of the study The main objective of the study is to investigate the factors that affect promotional and sales strategies in Nokia The following are the specific objectives of the study: – i. To investigate how costs affect promotional and sales strategies used by Nokia. ii. To find out how technology affects promotional strategies and sales used by Nokia. iii. To examine how external influences affects promotional and sales strategies used by Nokia. iv.

To investigate how consumer perception affects promotional and sales strategies used by Nokia. 1. 4 Hypothesis I. H0 Null hypothesis: there is no significant relationship between cost and promotional strategies of Nokia. II. Ha   Alternative hypothesis: there is a significant relationship between cost and promotional strategies of Nokia. III. H0 Null hypothesis: there is no significant relationship between consumer perception and promotional strategies of Nokia. IV. Ha Alternative hypothesis: there is a significant relationship between consumer perception and promotional strategies of Nokia. V.

H0 Null hypothesis: there is no significant relationship between external influences and promotional strategies of Nokia. VI. Ha Alternative hypothesis: there is a significant relationship between external influences and promotional strategies of Nokia. VII. H0 Null hypothesis: there is no significant relationship between technology and promotional strategies of Nokia. VIII. Ha Alternative hypothesis: there is a significant relationship between technology and promotional strategies of Nokia. 1. 5 Significance of the study The significance of this study determines the importance promotional and sales strategies that are adapted by Nokia.

This study will be beneficial to Nokia that seeks to strengthen their promotional and sales strategies to overcome their downwards spiral in sales. This study will also help Nokia to ensure they achieve maximum profitability despite being subject to a number of negative factors. This study will also benefit others who research on the same field in the future. Other researchers may also choose this study as a secondary source of information on Nokia or factors affecting promotional and sales strategies of Nokia. 1. 6 Scope of the study This study will be based on factors affecting Nokia’s promotional and ales strategies. It will therefore focus on obtaining information from various stake holders such as employees, shareholders, dealers and end users. 1. 7 Limitations The company has attributed poor performance due to the following reasons: Competitive industry dynamics, which negatively affected net sales in the Mobile Phones and Smart Devices business units, particularly in India, the Middle East and Africa and China. Competitive industry dynamics continuing to negatively affect the Smart Devices and Mobile Phones business units and consumer demand related to new products.

While writing this research proposal we are due to encounter several challenges, which will include: Limited availability of information, lack of cooperation from respondents, inaccurate data, and difficulties in interpretation of   background research. The problem of inadequate information will be overcome by conducting comprehensive and extensive research from various journals, company magazines and websites. Respondents will be assured of confidentiality and their names will not be revealed. This will encouraged them to disclose information without fear and cooperate in filling questionnaires.

Data accuracy will be overcome by using a pre-testing data. 1. 8 Assumptions of the study i. Perception affects consumers in the way they behave when purchasing services. ii. The information used and presented in this study is accurate, collected from a trustworthy source and up to date. iii. We assume that gathering of information will not be easy as Nokia may not give us all the information we need as some of their strategies are secrets of the company. iv. Promotion is the key driver of any industries success v. Nokia. Remember them?

They are the world’s largest seller of cell phone. But then came the iPhone and Android The industry changed and now it’s time for Nokia to change faster vi. The conclusion is that Nokia must embrace either Android or Windows Phone 7. I find this argument distinctly uncompelling, not to say misinformed and out of touch with reality. 2. 0 RESEARCH AND ITS METHODOLOGY Research is undertaken in order to increase the stock of knowledge, including knowledge of humanity, culture and society, and the use of this stock of knowledge to devise new applications.

It is used to establish or confirm facts, reaffirm the results of previous work, solve new or existing problems, support theories and develop new ones. It could also be an expansion of past work in the field, to test the validity of instruments, procedures, or experiments, research may replicate elements the project as a whole. Research methodology is the procedures used in making systematic observations or otherwise obtaining data, evidence, or information as part of research project or design.

The research method will consist of recognition of the research design that will be used in the study, the target population will be established and recognized, based upon this the sampling size, technique and design shall be found and looked at. 2. 1 RESEARCH DESIGN Descriptive research design is a scientific method which involves observing and describing the behavior of a subject without influencing it in any way, Involves gathering data that describe events and then organizes, tabulates, depicts, and describes the data. (Creswell, J. 2009).

Descriptive research surveys were used to ask customers and distributers why sales of Nokia are declining. Why customers are choosing other phone brands to Nokia? The main reason for people shifting from Nokia to other brands? Which Market still buys Nokia? In this study, Interviews, questionnaires and telephone surveys shall be carried out. 2. 2 TARGET POPULATION The target population for us would be Town, Westlands and the Parklands area, because it is not such a high class market and research will determine in which area Nokia sales are highly used. . 3 SAMPLING A process used in statistical analysis in which a predetermined number of observations will be taken from a larger population. The methodology used to sample from a larger population will depend on the type of analysis being performed, but will include simple random sampling, systematic sampling and observational sampling (Babin Zikmund, 2010). 2. 4 SAMPLE SIZE DETERMINANT There are five main sample determinants as follows:- Type of analysis to be employed

The level of precision needed Population homogeneity/heterogeneity Available resources Sampling technique used 5. SAMPLING METHOD AND SIZE Questionnaires are the best method to be used for this kind of problem, what the general public thinks about such a phone in the market is important. Questionnaires are useful because they cut costs and time involvement. They produce repetitive and therefore reliable data because of the uniform application of questions and the regular presentation of the data.

They are useful for multivariate testing – especially with large samples that can be broken down for new questions of respondents to specific questions. They claim to represent the relevant population. The size of the population targeted for this research for this will be 40 to 50 people. RESEARCH PROCEDURE We as a team are going to approach various malls and door to door homes, asking people to fill in our questionnaires and any other feedback necessary. We will approach up to 50 people. We will approach students, working employees and house wives. 2. 5 MEASUREMENT INSTRUMENT DATA ANALYSIS Research objectives |Research questions |Measurement level |Statistical analysis | |how costs affect promotional and |Question 10 |Nominal |Frequency | |sales strategies | | | | |how technology affects promotional |Question 5 and 6 |Ordinal | | |strategies and sales | | | | | | | | | | | | | | | | | | | 2. 6 BUDGET • Cost of printing the questionnaire • Fuel expenses incurred during the interviews • Time 3. 0 TIME FRAME Week 1 |Introduction, background study | |Week 2 |Statement of the problem | | |Objectives of the study | | |Hypothesis | |Week 3 |Significance of the study | | |Scope of the study | | |Limitations | |Week 4 |Assumptions of the study | | |Research and methodology and design | | |Target population | |Week 6 |Sample size | |WEEK 7 |Questionnaire | | |Budget | 4. 0 QUESTIONNAIRE SECTION A | |What is your gender? | |Male |Female | |What age group do you fit into (yrs)? | |Under 18 |19 – 25 |26 – 32 | |33 – 40 |40 – 50 |Over 50 | |SECTION B: | |Which Mobile brand would you prefer? |IPHONE |BLACKBERRY |ANDROID |NOKIA | | | | | | |OTHER | | | | | | | | | |What features do you look for in a phone? | |CHEAP LOOKS AND COLOR | |CAMERA PORTABILITY | |BBM | |TOUCH | |INTERNET | SYSTEM | | | | | |SECTION C: | |How would you rate the following for Nokia on a scale of 1-10? | |Battery life |Touch |Cost |SIMPLICITY | |Strength and quality |Parts available easily | | | 1. Which operational system do you think is the best? AndroidAppleIOSSymbian 2. What was your first phone? NokiaHTCIPHONESamsung 3. Why do you think people don’t purchase Nokia anymore? Better phones in the market Better quality and software for the same cost Touch quality not that good It is considered a low class phone 4.

What external factors influence the sale of Nokia? The economy going down The economy going up The theft rate, if high cheaper phones of nokia will be bought 5. How much would you spend on a phone? 5000-1000015000-2500030000-4000040000+ 6. How many people in your family use Nokia? 1234+ 4. 0 REFRENCES About us – Nokia. (n. d. ). Cell Phones and Smartphones – Nokia – USA. Retrieved August 22, 2012, from http://www. nokia. com/global/about-nokia/ Cooper, D. (n. d. ). Nokia’s Q1 2012 financials: $9 billion in sales can’t stop a $1. 7 billion loss –Engadget. Engadget. Retrieved August 22, 2012, from http://www. engadget. com/2012/04/19/nokia-q1-2012/ GRUNDBERG, S. (n. d. ).

Microsoft Poses Problems for Nokia – WSJ. com. Business News & Financial News – The Wall Street Journal – Wsj. com. Retrieved August 22, 2012, from http://online. wsj. com/article/SB10001424052702304898704577480340752531300. html Nokia Lumia Sales – Business Insider. (n. d. ). Business Insider. Retrieved August 22, 2012, from http://www. businessinsider. com/nokia-lumia-sales-2012-7 Nokia Sales Estimates Cut by Nomura on Microsoft Plans – Bloomberg. (n. d. ). Bloomberg – Business, Financial & Economic News, Stock Quotes. Retrieved August 22, 2012, from http://www. bloomberg. com/news/2012-06-22/nokia-sales-estimates-cut-by-nomura-on-microsoft-plans. html

Nokia Sales Slump Puts Pressure on Elop to Consider Split – Bloomberg. (n. d. ). Bloomberg – Business, Financial & Economic News, Stock Quotes. Retrieved August 22, 2012, from http://www. bloomberg. com/news/2012-04-11/nokia-sales-slump-puts-pressure-on-elop-to-consider-split. html Phones, Mobile Phones,Smartphones and Apps – Nokia – Middle East and Africa. (n. d. ). Cell Phones and Smartphones – Nokia – USA. Retrieved August 22, 2012, from http://www. nokia. com/mea-en/ Smartphones – Nokia – Middle East and Africa. (n. d. ). Cell Phones and Smartphones – Nokia – USA. Retrieved August 22, 2012, from http://www. nokia. com/mea-en/products/smartphones/

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