Pippa Bowen

Sarah Cole

Ilora Senn

Contents

■ Background 2■ Research Objectives 3■ Executive Summary 4

● Study Design 5● Key Data & Highlights 6● Conclusions 8● Recommendations 9

■ Methodology 11■ Findings 12■ Appendix 22

● Questionnaire 23● Data Analysis 27● References 35

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Nokia, a Finnish company, was formed in 1863 and was originally a leader in the cellphone market. As technology advanced, they lost their competitive advantage, and fell far behind Apple and Samsung.

Nokia’s devices and services division was recently purchased by Microsoft, and the acquisition is planned to be completed by the first quarter of 2014. This will give Nokia access to Microsoft’s resources and will create an opportunity for Microsoft and Nokia to regain their competitive advantage and earn more market share.

To become competitive in the smartphone market, Nokia must fully understand the environment in which they are operating. This study will help Nokia understand how consumers view the Luma as well as their competitors - iPhone and Galaxy - in order to determine the best strategy to regain market share.

background

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Research Objectives

This report presents the following:■ Measure consumer satisfaction of Lumia, Galaxy,

and iPhone.■ Measure potential of brand switching.■ Identify important smartphone applications.■ Identify important smartphone features.■ Measure positioning of Lumia, Galaxy, and iPhone

in regards to usage, technological advancement, status, and self-brand connection.

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Executive Summary■ Study Design■ Key Data & Highlights■ Conclusions & Recommendations

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Study Design

This paper reports on the results of surveys conducted among CSULB students regarding their opinions of smartphones including the Nokia Lumia, Apple iPhone, and Samsung Galaxy.

Students who owned one of the aforementioned smartphones were intercepted on the CSULB campus.■ 55 surveys were conducted.■ Surveys were conducted at the Library, Bookstore, and CBA.■ Students completed a 28 question survey.■ The number of surveys for Lumia, iPhone, and Galaxy were

proportional to their market share.■ Interviewers were available for clarification regarding survey

questions.

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Key Data & Highlights

1. Battery Life was listed as a top 3 feature when purchasing a new phone more frequently than any other feature, while Brand was listed least frequently.■ 74.5% of people surveyed listed Battery Life as an important

feature, and only 16.5% listed Brand.2. More women owned iPhone and more men owned Galaxy.

■ 61.9% of women surveyed owned the iPhone, 47.1% of men owned the Galaxy, while only 4.8% of women and 14.7% of men owned the Lumia.

3. Consumers are all satisfied with their current phones, and the majority of iPhone users are very satisfied.■ Consumers with the iPhone, Galaxy, or Lumia ranked their

satisfaction as 3 or higher, with 5 being Very Satisfied. 65.5% of iPhone users were Very Satisfied (5).

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Key Data & Highlights

4. Facebook and Instagram were ranked as the most important applications, and Vine was ranked as the least.■ 69.1% found Facebook important, and 67.3% found Instagram

important, while 61.8% ranked Vine as unimportant.5. Consumers are more likely to repurchase their current brand of cell

phone.■ When asked how likely smartphone users were to repurchase their

current band of cell phone the response mean was 4.35 with 5 being very likely and 1 being not at all likely. Indicating that brand switching amongst the leading competitors is low.

6. iPhone was ranked the highest in usage, status, and self-brand connection. ■ 81% found iphone to have the most usage, 73% believed it was the

highest in status and 51% said it had the highest self-brand connection

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iPhone was ranked the highest in usage, status, and self-brand connection, while Galaxy was ranked as being the most technologically advanced.

The Lumia fell far behind the iPhone and Galaxy. This reflects a very tough market for the Lumia.

To be successful, the Nokia must change consumers perceptions of the Lumia and find a profitable position in the smartphone market.

Conclusions

To be successful in the smartphone market, Nokia needs to change its strategy and tactics with the Lumia. They have been showcasing their Camera as a unique selling point, but our data shows that less than half of those surveyed view a smartphone’s camera as an important feature when making a purchasing decision.

Additionally, consumers across the board ranked the Lumia as the phone they are least likely to purchase, sometimes even ranking it below Blackberry. The data also shows that those surveyed are more likely to repurchase their current brand of smartphone than purchase a new brand. This will prove difficult for Nokia to capture more market share in the future.

We have also confirmed that Facebook and Instagram are the most important applications on a smartphone. Thankfully, Nokia already offers a Facebook app, and recently released an Instagram app. We believe this will help the Lumia even though only 40% of those surveyed viewed app availability as important when purchasing a smartphone.

Based on our findings, we have concluded that men value technologically advanced phones, and women value phones that give them a higher status. We have also found that the majority of Lumia users are male. These conclusions contribute to the understanding and continued validation of the Lumia target demographic.

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Recommendations

We have developed recommendations to make the Nokia Lumia more competitive as it moves forward with the help of their strategic partner, Microsoft:

1. Position the Lumia as a technologically advanced phone.■ More men owned the Lumia and the Galaxy than women; and the Galaxy was viewed

as a technologically advanced phone. If the Lumia is able to position itself as a technologically advanced phone it can gain more males to purchase the phone.

2. Target males.■ Men are more likely to recognize how technologically advanced the Lumia is as well as

were more likely to own a Lumia. By replacing their ads that currently focus on their camera, with ads that feature attributes specifically tailored to men, Nokia may be able to increase their market share within the male demographic.

3. Build equity into the operating system.■ Since Windows 8 is featured as the operating system on the Lumia, it can be accessed

on any other platform. This is a strong attribute that, if advertised, will attract students and business people. We recommend that Nokia advertise the Nokia’s operating system to position itself against the competition.

4. Increase advertising to raise awareness of Lumia.■ The current awareness of the Lumia is low. Many smartphone users recognize the

iPhone and the Galaxy as prominent phones in the market. They do not mention or recognize the Lumia as a possible contender. To increase awareness of the Lumia, Nokia should invest in an advertising and promotional campaign to get the buzz of the Lumia out to the entire population.

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Recommendations cont.

5. Feature battery life in advertisements.■ Battery life was found to be the most important feature in a smartphone. To position

itself in the market, Nokia can feature the length of the battery life as an attribute in their advertisements. This can be tied in with advertising emphasizing the benefits of Lumia’s 41 megapixel camera. We found that the camera is not as important an attribute as battery life or an operating system, however, advertising efforts can emphasize that consumers can take better photos longer with the Lumia’s excellent battery life and camera. This can build upon previous commercials which humorously featured the benefits of the 41 megapixel camera, and the new informational appeal will counteract wear-out and keep Lumia top-of-mind.

6. Conduct and Implement a promotional campaign for the Lumia. ■ Since many smartphone users are not aware of the Lumia, a promotional campaign will

do a lot to promote the Lumia as well as increase the awareness of the smartphone. By implementing a promotional campaign, potential users can get an opportunity to learn more about the phone and become engaged with this new technologically advanced phone. A promotional plan utilizing street teams can also help induce trial and create positive brand experiences. This will create the buzz and bring more awareness to the Lumia.

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Methodology

Sampling Frame

Our sample of interest was CSU, Long Beach students who currently own the Nokia Lumia, Samsung Galaxy, or Apple iPhone.

Sampling Method

Throughout this study we used a convenience sample to interview easily accessible students. Sarah surveyed students at the CBA, Pippa at the Library, and Ilora at the book store. We asked students if they owned any of the three phones and interviewed a total of 55 people: 25 iPhone users, 24 Galaxy users, 6 Lumia users. After the survey we also used snowballing techniques to see if our interviewees had any friends who owned the particular smartphones as well.

Our non-probability sampling methods of convenience and snowball samples can bias our results. Also, the small sample size will make it impossible to extrapolate these results to the entire population. Our findings should not be applied to the entire smartphone market, but should only be used as suggestions in Nokia’s strategic decisions.

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Findings

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Battery Life is the most important feature.

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Men care less about camera than Women.

Surprisingly, men and women had very similar opinions regarding the importance of different smartphone features, all except for the camera.

61.9% of all women surveyed and only 35.3% of all men surveyed found the camera important when purchasing a phone.

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More men own Galaxy, More women own iPhone.

47.1% of the males surveyed owned the Samsung Galaxy.

61.9% of the females surveyed owned the Apple iPhone.

This creates an interesting climate for the Lumia. Should they target men or women? Of the Nokia Lumia users surveyed, 83.3% were male.

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Consumers are satisfied with their current phones.

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Facebook is the most important app.

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iPhone Dominates. Lumia Loses.

iPhone was ranked the highest in usage, status, and self-brand connection, while Galaxy was ranked as being the most technologically advanced.

The Lumia fell far behind the iPhone and Galaxy. This reflects a very tough market for the Lumia.

To be successful, the Nokia must change consumers perceptions of the Lumia and find a profitable position in the smartphone market.

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Likelihood of purchasing a new Brand phone is low.

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Lumia is least likely to be purchased

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Appendix

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■ Questionnaire■ Data Analysis■ References

Questionnaire1. PLEASE CHOOSE ONE. Currently, do you own a Nokia Lumia, Apple iPhone, or Samsung Galaxy?

○ Yes1 100%○ No2 0%

2. PLEASE CHOOSE ONE. Are you ○ Male1 61.8%○ Female2 38.2%

3. PLEASE CHOOSE ONE. Are you a student at California State University, Long Beach? ○ Yes1 100%○ No2 0%

4. PLEASE CHOOSE ONE. Which smartphone do you currently own?○ Lumia1 10.9%○ iPhone2 47.3%○ Galaxy3 41.8%

5. PLEASE CHOOSE ONE. How satisfied are you with your current cell phone? Mean: 4.4

Very Dissatisfied 1 2 3 4 5 Very Satisfied

6. PLEASE CHOOSE ONE. Have you ever owned a Lumia?○ Yes1 (IF YES, PLEASE ANSWER QUESTION 7) 14.5%○ No2 (IF NO SKIP TO QUESTION 8) 85.5%

7. PLEASE CHOOSE ONE. If Yes, How Satisfied were you with the Phone? Mean: 4.11

Very Dissatisfied 1 2 3 4 5 Very Satisfied

8. PLEASE CHOOSE ONE. Have you ever owned a iPhone?○ Yes1 (IF YES, PLEASE ANSWER QUESTION 9) 58.2%○ No2 (IF NO SKIP TO QUESTION 10) 40%

Missing: 1.8%

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Questionnaire9. PLEASE CHOOSE ONE. If Yes, How Satisfied were you with the Phone? Mean: 4.27

Very Dissatisfied 1 2 3 4 5 Very Satisfied

10. PLEASE CHOOSE ONE. Have you ever owned a Galaxy?a. Yes1 (IF YES, PLEASE ANSWER QUESTION 11) 56.4%b. No2 (IF NO SKIP TO QUESTION 12) 43.6%

11. PLEASE CHOOSE ONE. If Yes, How Satisfied were you with the Phone? Mean: 4.07

Very Dissatisfied 1 2 3 4 5 Very Satisfied

12. PLEASE CHOOSE ONE. How likely are you to re-purchase your current brand of cell phone? Mean: 4.35

Very Unlikely 1 2 3 4 5 Very Likely

13. PLEASE CHOOSE ONE. How likely are you to purchase a new brand of cell phone? Mean: 2.69

Very Unlikely 1 2 3 4 5 Very Likely

14. PLEASE CHOOSE ONE. How likely are you to buy a Lumia? Mean: 1.76

Very Unlikely 1 2 3 4 5 Very Likely

15. PLEASE CHOOSE ONE. How likely are you to buy a Galaxy? Mean: 3.00

Very Unlikely 1 2 3 4 5 Very Likely

16. PLEASE CHOOSE ONE. How likely are you to buy an iPhone? Mean: 3.55

Very Unlikely 1 2 3 4 5 Very Likely

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Questionnaire17. PLEASE ORDER FROM MOST IMPORTANT APPLICATIONS (1) TO LEAST IMPORTANT APPLICATIONS (5)

___ Facebook Mean: 2.06___ Instagram Mean: 2.25___ Snapchat Mean: 3.37___ Twitter Mean: 3.51___ Vine Mean: 3.82

QUESTIONS 18-22. PLEASE CHOOSE ONE FOR EACH APPLICATION.How important is it to have each application on a smartphone?

Neither UnimportantVery Unimportant Unimportant Nor Important Important Very Important

18. Facebook 1 2 3 4 5Mean: 3.87

19. Instagram 1 2 3 4 5Mean: 3.63

20. Twitter 1 2 3 4 5Mean: 2.60

21. Snapchat 1 2 3 4 5Mean: 2.47

22. Vine 1 2 3 4 5Mean: 2.09

23. PLEASE CHECK THE TOP THREE MOST IMPORTANT FEATURES OF A SMARTPHONE. ___ Application availability Important: 40% Not Important: 60%___ Battery life Important: 74.5% Not Important: 25.5%___ Brand Important: 16.4% Not Important: 83.6%___ Camera Important: 45.5% Not Important: 54.5%___ Operating system Important: 50.9% Not Important: 49.1%___ Price Important: 40% Not Important: 60%___ Screen size Important: 18.2% Not Important: 81.8%

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Questionnaire24. PLEASE RANK IN ORDER FROM 1 (MOST USED) to 3 (LEAST USED)

Of the three phones, which do you think is the most widely used? ___ Lumia Mean: 2.92___ Galaxy Mean: 1.83___ iPhone Mean: 1.25

25. PLEASE RANK IN ORDER FROM 1 (MOST ADVANCED) TO 3 (LEAST ADVANCED) Of the three phones, which do you think is most technologically advanced? ___ Lumia Mean: 2.57___ Galaxy Mean: 1.47___ iPhone Mean: 1.98

26. PLEASE RANK IN ORDER FROM 1 (HIGHEST STATUS) TO 3 (LOWEST STATUS) Of the three phones, which do you think gives you the highest status? ___ Lumia Mean: 2.94___ Galaxy Mean: 1.75___ iPhone Mean: 1.34

27. PLEASE RANK IN ORDER FROM 1 (MOST) TO 3 (LEAST)Of the three phones, which do you think represents you the most?___ Lumia Mean: 2.56___ Galaxy Mean: 1.71___ iPhone Mean: 1.75

28. PLEASE RANK IN ORDER FROM 1 (MOST LIKELY) TO 4 (LEAST LIKELY). If you were to get a new phone, which of these phones would you be most likely to purchase? ___ Lumia Mean: 2.71___ Galaxy Mean: 1.78___ iPhone Mean: 1.78___ Other model. Please Specify __________________________________________________ Mean: 3.57

Please provide an email address or phone number for data validation.

Phone: (___)____________ Email :_____________________________________ 25

Data Analysis

Grouped Means

q13 by Q7, 9 ,11:

Likelihood of purchasing a new brand of cell phone versus satisfaction.

Lumia users show the greatest likelihood of purchasing a new brand of cell phone while Galaxy show the least.

Grouped Means

q 12 by Q7, 9 ,11:

Likelihood of purchasing the same brand of cell phone versus satisfaction.

iPhone users show the greatest likelihood of purchasing the same Brand of cell phone while Lumia shows the least.

Mean

Lumia 3.50

iPhone 2.41

Galaxy 2.69

Mean

Lumia 4.00

iPhone 4.31

Galaxy 4.28

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Data Analysis

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Data Analysis

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References

McDaniel, C., & Gates, R. (2010). Marketing research essentials . (7th ed.).

Hoboken, NJ: John Wiley & Sons, Inc.

Our company. (n.d.). Nokia. Retrieved November 5, 2013, from

http://www.nokia.com/global/about-nokia/about-us/about-us/

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