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Impact of product innovation on the sales growth in Nokia Corporation
By

Qammar Shahbaz (1286400)
This report is produced to fulfil assessment criteria of Edexcel Level 7 BTEC PG DMS in

Research Methods for Strategic Managers (Unit 16) 2011/2012

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CONTENTS
Contents............................................................................................................2 1. TITLE..............................................................................................................5 2. INTRODUCTION..............................................................................................5 3. RESEARCH PROPOSAL..................................................................................5 3.1 Research Question...................................................................................5 3.2 Hypothesis...............................................................................................5 3.3 Background Theory..................................................................................5 3.4 Factors for Successful Research Question Selection................................6 3.5 Brief Summary to The Organisation.........................................................7 3.6 Context and Rational................................................................................7 3.6.1 Problems Faced by Company (Nokia).................................................7 3.6.2 Reasons for the Research...................................................................7 3.7 Aim...........................................................................................................8 3.8 Objectives.................................................................................................8 5. METHODOLOGIES..........................................................................................9 5.2 Chosen Methodology..............................................................................11 5.3 Justification of Chosen Methodology.......................................................11 5.4 Limitations of Chosen Methodology........................................................11 6. EVALUATION OF DATA COLLECTION TECHNIQUES .....................................12 6.1 Primary Data Collection..........................................................................12 6.1.1 Experimental...................................................................................12 6.1.2 6.1.3 6.1.4 Survey - Questionnaire...............................................................12 Survey – Interview.....................................................................13 Field Research – Observations.................................................13

6.2 Secondary Data Collection.....................................................................14
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6.2.1 Unobtrusive Research .....................................................................14 6.3 6.3.1 Sampling.........................................................................................15 Probability Sampling....................................................................15

6.3.2 Non-probability Sampling.................................................................15 7. EVALUATION OF DATA ANALYSIS TECHNIQUES...........................................15 7.1 Quantitative ...........................................................................................15 7.1.1 Univariate Analysis...........................................................................15 7.1.2 Bivariate Analysis.............................................................................16 7.1.3. Multivariate Analysis.......................................................................16 7.2 Qualitative..............................................................................................16 7.2.1. Thematic Analysis...........................................................................16 7.2.3. Content Analysis..............................................................................17 8. RESEARCH DESIGN......................................................................................17 8.1 Data Collection.......................................................................................17 8.2 Sources of Data......................................................................................18 8.3 Data Analysis..........................................................................................18 8.4 Gantt Chart.............................................................................................18 9. PRESENTATION AND EVALAUTION OF PRELIMINARY RESEARCH.................19 9.1 Analysis of Secondary Data Findings......................................................19 9.2 Analysis of Primary Data Findings..........................................................21 (a) Applications (b) Internet (c) Social Media (d) All of them....................22 Reason for asking this question: This question will tell us whether the customers have ever used Nokia phones and this question will set foundation for next questions (5), (6), and (7)..........................................23 Reason for asking this question: This question will show how many customers are still loyal to Nokia brand....................................................24 (a) Reliable (b) Brand (c) Applications (d) Value for money.................24

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Reason for asking this question: This question will show customers choice of phone brand and where Nokia stands in this competition....................25 Reason for asking this question: The reason for asking this question is to know the reasons behind switching from Nokia Phones to other phones. It will also help in determining the results of not having innovative products. ..................................................................................................................26 ..................................................................................................................27 (a) Yes (b) No.........................................................................................28 (a) Yes (b) No (c) Maybe...........................................................................29 10. EVALUATION OF PRELIMINARY RESEARCH.................................................30 11. CONCLUSIONS...........................................................................................30 12. RECOMMENDATIONS.................................................................................31 13. REFERENCES..............................................................................................32

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1.TITLE
Impact of product innovation on sales growth in Nokia Corporation.

2.INTRODUCTION
Nokia operates from Africa, Asia Pacific, Europe, Latin America, Middle East, and North America and is a world leader who is driving and transforming the growth of converging internet and mobility internet services around the world. Lately, Nokia has seen stiff competition from companies like Apple and Blackberry which are extremely driven by innovation and have adapted themselves to changing environment and have created a market of their own. This has led to fall in overall market share of Nokia and also this has led Nokia into lawsuits and patent fights with companies like Apple. The two technology giants are desperate to destroy each other, especially wireless patents have become a big issue for them. It is argued that entrance of new players has pushed back Nokia’s hold on the market leading to low sales, and its not-soprompt answer to highly innovative requirements of the environment is major factor responsible for this. This report will study this relationship between innovation and sales in Nokia. Questionnaire (primary data collection) and study of secondary data available about the two variables innovation and sales will be gathered and researcher will attempt to establish any relationship between the two variables, i.e., innovation and sales in Nokia.

3. RESEARCH PROPOSAL
3.1 Research Question
What is the impact of product innovation on sales growth in Nokia globally?

3.2

Hypothesis

If product innovation is related to sales growth, then effective product innovation will increase sales.

3.3 Background Theory
Innovation is one of the most important and key factor in the success of various companies. Transforming new products and replacing the old features with the new one, in order to enhance the customer satisfaction and provide them with the new and improved products, is growing at a large pace
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especially in the electronic manufactures. It is also one of the most important sources of gaining and maintaining a competitive advantage which can lead to the firm growth and profits in long term. Alex C. (2009) stated that “Product innovation is the single most popular strategy for growth in firms sales and for expansion”. In his research he also stated that innovation plays a vital role in the overall growth of its sales as it helps in coping with the changing demand that is arising in the market resulting in improving company positioning and increased market share. In a study published by policy study institute, it is stated that 57 percent of the UK product related industries are innovative and their policy is to launch new and innovative products in order to enhance the company overall growth and sales.

3.4 Factors for Successful Research Question Selection
The factors for successful research question are as follows: • Specific: The selected question should be specific not an open question. The selected research question is specific because this report will look into the product innovation in Nokia and its impacts of sales growth. • Realistic: The selected question is realistic in nature and as it is being argued in many companies and it exists in the business world and it will help the company in formulating effective training programs. • Personnel Interest in the topic: Personnel interest of the researcher provides the source of motivation and commitment, which helps the researcher to complete the research. The selected topic is interested for the company as it will help the company to establish the relationship between product innovation and sales growth. • Availability of time and financial resources: An important factor while choosing research question, the amount of time and available financial resources should also be considered. As this research does not require any financial resources to complete the research, but the time for the research is very limited.

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Availability of data: Before selecting the research question, it is to be considered weather the data needed in the research is available or not and the researcher has the facilities to collect the data. The primary data is available in the printed journals and research papers that can be easily extracted from online resources.

3.5 Brief Summary to The Organisation
Nokia started as a small riverside paper mill in Finland and during 1968 to 1991 after the formation of Nokia Corporation it positioned itself to be world leader in mobile communication, and by the year 1992 to 1999 with the mobile phone boom, Nokia established mobile phones as its core business and became a world leader in mobile technology (Nokia, 2011).

3.6 Context and Rational
3.6.1 Problems Faced by Company (Nokia)

By the year 2008, things started to turn rough for Nokia as new red hot brands like Apple and Google’s Android made the ride bumpy for Nokia, but these companies were still not as threatening, EETIndia (2008). It is also written on the Nokia official website by the chief executive “There’s no doubting that its role as lead player in the handsets market has changed dramatically but it is making tough decisions, to change with it.” Nokia (2011). Apple and Google Android have grown to bigger giant’s very rapid pace. Android started its operation 2 years ago and now it has taken up the leadership position of Nokia (Ahmed, 2011). Ahmed further quotes the new boss Stephen Elop as making a rather true confession and points towards rather sloppy innovation for Nokia decline. Ahmed (2011) quotes Elop "We had a series of misses. We haven't been delivering innovation fast enough. We're not collaborating internally. Nokia, our platform is burning." Considering all the above factors, it becomes necessary for Nokia Corporation to think about retaining its market leadership, for that Nokia will have to retain customers and increase sales by bringing innovation in their products.

3.6.2

Reasons for the Research

Given the dominance that Apple and Google are gaining over the market, It is Nokia’s biggest challenge to fight out the competition and regain its market position. Product innovation has led Apple and Google Android to reach the position where they are now, and it would be interesting to see if more

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effective product innovation will also aid Nokia Corporation to get back in the picture as market leader.

3.7 Aim
To find out whether effective product innovation will increase sales growth in Nokia Corporation.

3.8 Objectives
1. To collect questionnaire responses from different set of mobile customers (in total 30) to investigate customer pattern and preferences. 2. To collect the relevant primary and secondary data about two variables (product innovation and sales growth) about Nokia Corporation. 3. To analyze the collected primary and secondary data and establish if the two variables are linked to each other.

4. Literature Review
Innovation is a major factor of economic growth and performance in the globalised economy. Innovation brings new technologies and new products and increases the product line of the company. The spending on the innovation is considered as an investment on the research and development, which can lead to increase or decrease in the firms growth. The literature selected from the research “on the relationship between innovation and performance: a sensitivity analysis” by Hans L. (2002). In a comparison of manufacturing firms and service firms, the research produced results that were not previously documented in the literature. He stated that some similarities are being observed in both level and growth rate dimensions. The final conclusion was that “It supported the view that services and goods are not much different and productivity or performance analysis raises similar difficulties for both sectors” Nelson (1991) has written in strategic management journal “To be successful over a long period of time, firms must develop the ability to innovate and then to profit from that innovation. The writer also tried to explain the benefits of innovation in manufacturing industries that innovation provides companies a chance to build new products with such a features that their competitors lack in their products, by doing so the manufactures have a chance to satisfy the customers by providing them extra value for the money they have spend on purchasing the product.

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On the other hand there are some studies and researches present that there is no such positive relationship between innovation and performance of the firm. According to the study done on more than two hundred firms, the researcher stated “There is a loose relation between research intensity (or indicators based on innovations) and sales or productivity growth has been found (Papagni , 2003). Similarly cohen and klepper (1996) has done research on the relationship between innovation and the growth of the firm. In this research service based firms were included. After the collecting and analyzing the average spending on the R&D that is used in the process of innovation and the average growth of the firm, he reported “a negative relationship between the number of innovations generated per dollar of R&D and firm size. Innovation output increases with the growth rate in the firm’s main market in both Sample” ( Haans L. 2002). There are also several books written on the process of innovation, its importance and its effects on the business. Bettina Peters is an author of a book on the innovation and firm performance, in which he explained the different aspects on innovation including product, process innovation and its links to the firms performance. In the survey of the that included 40% UK firms and 60% Germany firms from the year 1998 to 2000, he collected the data of innovative and non innovative firms and matched it with sales growth , profitability and expansion of the firms. In the conclusion he stated that “Sales growth is consistently higher for the innovator firms than the non-innovators firms but there is no systematic difference between them”. (Bettina P. 2008. P 85 ) The literature review concludes that there is a debate going on over the effectiveness of innovation and its relation with the overall sales growth or performance of firms. So the researcher will try to find if any relation exists between them or not.

5.METHODOLOGIES
5.1 Evaluation of Methodologies QUANTITATIVE METHODOLOGY
As the name suggest this methodology involves numbers in a systematic process, which are usually displayed in tabular, chart or graphical forms (Russian Communication Ltd, 2010).
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The strength of quantitative methodology are that the relevant information can be collected by using this method, the data is collected in the forms of numbers or specific words, the data collected is also well structured. And the data analysis is easily and accurately done on the data collected through this method (Russian Communication Ltd, 2010).

Weaknesses: • The weakness of this methodology are that the research becomes limited because of the usage of the closed type of question while collecting data, the respondents also have limited choices from which he has to choose the answer and finally as the data is collected in numeric form which lacks descriptive results that some time are required to understand certain phenomenon in the research. (Qualitative Research Methods, 2000)

QUALITATIVE METHODOLOGY
Qualitative methodology is the Process of collecting data in the form of pictures, diagrams, and descriptive words rather than numerical form (Yvonne M, 2009). Advantages: The main advantages of the qualitative methodology are that the data which is collected through this method is very descriptive in its meaning and the respondents can express their independent views about the question asked. (Yvonne M, 2009) Disadvantages: The main disadvantages of the methodology are that by using it the data collected is very diverse as it contains description so to record those

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responses becomes difficult and to perform analysis on this type of data is also very difficult. (Yvonne M, 2009)

5.2Chosen Methodology
The methodology which is chosen for this research is mixed methodology.

5.3Justification of Chosen Methodology
Mixed methodology is used in this research because the researcher require both qualitative and quantitative data which are to be collected from the people, so mixed methodology is used. It will provide chance to study thinking of the consumers with respect to the product innovations and their buying behaviours accordingly. It will also help the researcher in attaining the actual facts and figures from secondary data in order to portray the relationship between the effective innovation and sales growth. On one hand quantitative data will give us data to establish numerical relation between product innovation and sales growth, on the other hand qualitative methodology will come up with other description information; thus mixed methodology will be ideal.

5.4Limitations of Chosen Methodology
Setting up a correlation and finding out a relationship between qualitative and quantitative data when collected under mixed methodology will be very time consuming and difficult because of huge data collection process. Another limitation of the chosen methodology is that to collect the qualitative data collected from the consumer, which includes their choices and personal preferences, is very difficult to record and to interpret the collected data to reach a solid conclusion is very hard and complex work.

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6.EVALUATION OF DATA COLLECTION TECHNIQUES
6.1Primary Data Collection 6.1.1 Experimental
A scientific investigation where investigator can manipulate and control one or more than one variable and can check the effect on the dependent variable (Writing CSU, 2011) Advantages: The main advantages of this study is that on different situations tested for interdependent variables, the results obtained are precise and it helps in thorough and in-depth study of causal relationship of variables (Western Michigan University, 2011). Disadvantages: The disadvantages of this type of study are that they are highly prone to human error and results can be biased and artificial (Writing CSU, 2011).

6.1.2

Survey - Questionnaire

A questionnaire is a personal form of data collection which has a predefined set of closed-ended or open-ended questions and sometimes mix of both where respondent either has objective-type already-set answers to choose from or has an option of detailed and descriptive responses (ICPSR, 2011).

Advantages: The advantages of survey are that when survey population is very high, data collection is very easy, the data collection takes less time consuming and it is Cost effective as compared to other techniques (Herriot-Watt University, 2000).
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Disadvantages: The disadvantages are that sometime open ended questions bring huge amount of data which is difficult to analyse and superficial responses to questions divert the main objective. (Herriot-Watt University, 2000).

6.1.3

Survey – Interview

This is a technique usually in the form of formal conversation where data collectors interact with the respondents and gather information to extract necessary data. Generally in order to reach the right result, sub-questions can be asked from the respondents (Mark S. &Philip L., 2009). Advantages: The advantages of the interview technique are that unlike other techniques, easy for respondents as they can express their views properly. And additional information can be gathered, which aids in further study (Mark S. &Philip L., 2009). Disadvantages: The advantages of the interview technique are that large population is difficult to cover as it is very time consuming and sometime it becomes very complex and descriptive data makes data extraction difficult (Mark S. &Philip L., 2009).

6.1.4

Field Research – Observations

Researcher collects his own data without relying on already collected data by observing people; this may include direct observation where respondents know that they are being observed or sometimes it is unobtrusive where respondents are unaware of being observed (Mark S. &Philip L., 2009). Advantages:

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The advantages of the observations are that Observer can know things which respondents may not express. And accurate and unbiased data can be collected and researcher can understand people’s phenomenon privately (Mark S. &Philip L., 2009). Disadvantages: The disadvantages of the observations are that can be time consuming and sometimes from researcher’s side data collection and results from it can be biased (WritingCSU, 2011).

6.2Secondary Data Collection
6.2.1 Unobtrusive Research

A research method in which researcher never comes in direct contact with the subject where researcher collects data from already collected information pool (Delbert C. 2002). Advantages: The advantages of the unobtrusive observations are that it saves time for the researcher because of already collected data pool.Generally unbiased data is collected as there in no interaction between researcher and the subject (University of Kentucky, 2008). Disadvantages: The disadvantages of the unobtrusive observations are that since the data source can be old and biased, sometimes error-free results are difficult to obtain. The old data might have been collected for different purpose and under entirely different circumstances, which may also mislead the researcher (Delbert C. 2002).

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6.3 6.3.1

Sampling Probability Sampling

When in a large population data collection is difficult, a systematic pattern is devised and population is divided into uniform sections so that data collection becomes easier and all sections of population can be appropriately represented (Takona, 2002). This is a less biased approach but is time consuming and can be expensive. Simple random sampling, stratified random sampling, systematic random sampling, multistage sampling, and cluster sampling are some probability sampling methods (FHI, 2011).

6.3.2

Non-probability Sampling

Based on the research design, in non-probability sampling, data collection is done on already set criteria, for example appearance, language, or gender, etc. Each member of the population is not selected in the sample given the research’s aim, also called quota sampling. In this form of sampling method, sampling error is not known and it can generate biased results (Takona, 2002).

7.EVALUATION TECHNIQUES
7.1 Quantitative
7.1.1

OF

DATA

ANALYSIS

Univariate Analysis

Univariate analysis describes only one variable. This technique is used when the researcher is interested in studying results related to one variable alone. Where on one hand this analysis can be done manually without the need of electronic software and is easier and is represented by frequency form, charts, tables, pie or bar charts, this analysis fails to show interrelationship between two variables which may be necessary in some studies (McGivern, 2004).

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7.1.2

Bivariate Analysis
In different situations, this analysis is useful in assessing the

Contrary to univariate analysis bivariate analysis describes two-variable relationship. causal relationship between two variables where one can be independent and other dependent on the other. Its ability to let researcher make comparisons in different situations (in relation to two variables) is its biggest advantage. The biggest limitation of this analysis is that it totally ignores the effects of other variables (if any) on the dependent variable. Secondly without electronic software such an analysis is very difficult (McGivern, 2004).

7.1.3. Multivariate Analysis
Multivariate analysis is an analysis which shows simultaneous relationship between three or more variables. This analysis may be very complex but this analysis brings out the true picture of variable relationships. necessitates use of electronic software(McGivern, 2004). The biggest limitation of this analysis is that it can at times be very complicated and

7.2 Qualitative
7.2.1. Thematic Analysis
As the name suggests data analysis is done by themes where creation and application of codes is used to perform analysis. According to Eman (2009), the biggest benefit of this analysis is that all data is given codes and this makes the analysis easier. This analysis also helps bring out all the Researcher’s inability to differences and similarities of the data collected. this analysis (Braun and Clarke, 2006).

make decision regarding the point of focus is the biggest disadvantage with

7.2.2. Comparative Analysis
Under comparative analysis technique variables are put to comparison, which may be item by item comparison of two or more comparable variables (Business dictionary, 2011).
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This aids researcher in simultaneous and side by side comparison of variables where they go up or come down in relation to other variable(s).

7.2.3. Content Analysis
Content analysis is a systematic analysis of the content rather than the structure of a communication, such as a written work, speech, etc. The main advantage of content analysis is that it is helpful with open-ended questionnaires where there is involvement of large quantitative studies. The limitations of this analysis are that it disregards the actual context and makes the whole process very time consuming (Colorado State University, 2011).

7.2.4. Discourse Analysis
Based on speech patterns of people, discourse analysis is the technique in which analysis of written or spoken words is carried out and which is highly intuitive and reflective (University of Sussex, 2011). The biggest advantage of discourse analysis is that the researcher can gather information through interpretation of text by retrieving information from underlying motivation behind the text. However discourse analysis does not provide a concrete answers to problems based on scientific research as this analysis only deals with written or spoken words .

8.RESEARCH DESIGN
8.1 Data Collection
Primary Data Collection: In order to identify the relationship of two variables (product innovation and sales growth) in Nokia Corporation, collection of primary data will be done via preparing a questionnaire of 10 closed-ended questions on which responses will be gathered by 30 mobile phone customers from different age groups (teenagers – 10 questionnaires, ages 20 to 40 – 10 questionnaires; and above 40 – 10 questionnaires) in London. The set of these questions will have close link with the two said variables and will help establish whether or lack of product innovation is the dominant reason for low sales growth in Nokia Corporation. After collection of responses from the subjects, the data will be extracted and

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analysed on excel sheet and present in the form of pie chart, which will clearly mark the different patterns related to two variables. Secondary Data Collection: In regard to secondary data collection, all relevant data will be collected from books, e-books, and journals, which will focus on two-variable relationship and will relate this to Nokia Corporation’s case. Various e-journals and authentic websites (.edu and .gov) will be visited.

8.2 Sources of Data
The main source of data for primary research will be 30 mobile customers from different age groups in London who will be responding to the questionnaires one on one. The data collection will be reliable as the researcher will try to collect more than 30 responses and will shortlist 30 responses, which he feels will be genuine, so that the responses are not over board or vague and more accurate results could be obtained. The ethical issues about the whole process will be considered paramount as researcher will never be inclined favourably towards any particular side and will keep the research as independent and unbiased as possible. At no point the responders will be asked to reveal their identities except their age. Secondly, as told earlier the secondary data will be collected about two variables from different journals, books, and e-books and websites, which will be authentic and reliable like .edu, .gov, and thetimes100.com.

8.3 Data Analysis
All the data and information provided by the primary and secondary data collection technique will be analyzed by qualitative and quantitative analysis techniques and as the research mains involves two variable study (product innovation and sales growth in Nokia Corporation), it will be a bivariate analysis. Microsoft Excel will be used to display the different findings of the analysis in the form of pie charts and bar graphs.

8.4 Gantt Chart
The graphical representation of the time and its distribution is shown in the following chart.

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9.PRESENTATION AND EVALAUTION OF PRELIMINARY RESEARCH
9.1 Analysis of Secondary Data Findings
The secondary data is collected from the research “On the Relationship between Innovation and Performance: A Sensitivity Analysis.” In this research the author, Haans L.(2002), tried to investigate the relation of innovation to the overall performance of the firms. The observation data includes both service based firms and manufacturing based firms. In order to find out the relation between them the author collected data based on different

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performance measures, the classification of firms, types of innovation and growth rate from different dimensions in all firms. The data used in the research was collected in 1999, which covers the period from 1996 to 1998. In addition to the basic factors that contribute toward the growth of the firms, the author also collected data of some other factors including product life cycle, rate of growth of firms in the market and attractiveness of firm’s product and services. From the huge amount of data collected by the researcher, we are only using two tables and a chart in our research, in order to develop some relation between the two variables. The first table includes the data of firms that are innovative in their industry and its comparison with some factors, from which only sales figures are used in this research. The results portray that the mean of the increase in sales for the service based industries is 3.3 and for the manufacturing based industries is 2.0, which are quite high. This suggests that if service based industries bring innovation in their firms they are likely to increase more sales as compared to the manufacturing based industries with the same innovation. Haans L. (2009) states after observing the below data “a manufacturing firm’s sales margin increases with innovation output but it is significant only at the 10% level of significance.”

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The second table which is used this research as a secondary data contains growth rates of both service and manufacturing based firms. From the tables it is clearly shown that the growth of sales per employee in the service firms is 0.015 that means if innovation is brought in the service based industries the growth rate is 5 % and in manufacturing based firms it is 7%.

In the end the he states that “In a comparison of manufacturing firms and service firms, there is striking homogeneity regarding the estimated relationship between innovation and Sales growth that previously has not been well documented in the literature. This similarity is observed in both level and growth rate dimensions.” There are no proper figures of growth in sales in accordance to the product innovation that area concluded from the research data collected by Haans (2002). He does state that in service-oriented industry innovation really brings out rich dividends, but his opinion about positive effect of product innovation on sales growth in manufacturing firms is quite narrow and states that there is indeed a positive effect of innovation on sales growth but it is not more than 10%.

9.2 Analysis of Primary Data Findings
9.2.1 Do you think a mobile phone is more than a mere calling machine? (a) Yes (b) No
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Reason for asking this question: This question will tell us how many people think that mobile phone should be innovative and should have more features than a mere calling machine.

On response to the first question, majority of responders whether teenagers, mid 20s to 40s, or elders, all believed that a mobile phone was more than a calling machine. 100% teenagers believed that it more not a mere calling machine, but much more than that. A total of 7 responders in 20s to 40s bracket felt that it was more than a calling machine whereas in elders group only 4 people felt that it was a simple calling machine. The bar graph clearly shows that 23 out of 30 responders clearly felt that a mobile phone must have more than a calling facility and it is no more a calling machine.

9.2.2 If your response to Question 1 is Yes, what else do you think should an ideal phone have? (a) Applications (b) Internet (c) Social Media (d) All of them Reason for asking this question: This question will direct the researcher as to what sort of facilities are needed by the customers in a mobile phone apart from calling facility.

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The bar chart clearly shows customers choice to have almost all possible facilities in a mobile handset as possible. Where 70% of the teenagers want all the facilities in their mobile sets, the figure is 60% for both mid 20s to 40s and elders. Thus it is clear that most of the people want a handset which should have all the facilities like applications, internet, and social media networking facilities apart from normal calling facility. 9.2.3 Have you ever used Nokia mobile phone? (a) Yes (b) No

Reason for asking this question: This question will tell us whether the customers have ever used Nokia phones and this question will set foundation for next questions (5), (6), and (7).

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The response to this question shows that almost 80% to 90% of people have used Nokia mobile phones at least once in their lifetimes. This shows how much predominant Nokia had been in the market in the past year and this response will lead us to know whether the Nokia sales have indeed fallen down from here in the next questions.

9.2.4 Are you still using Nokia? (a) Yes (b) No

Reason for asking this question: This question will show how many customers are still loyal to Nokia brand.

On the contrary to question number 3 where almost 80% to 90% people in all age groups have used Nokia phone, only 20% of teenagers, 20% of mid 20s to 40s individuals and only 40% of elders are still using Nokia. This question clearly establishes the opinion that customers’ loyalty towards Nokia has indeed gone down and they have started using other handsets. The coming questions will see if there are some loyal customers still with Nokia, why they are still using it and why majority of customers have gone on to buy other handsets.

9.2.5 If you are still using and have ever used Nokia phone, what do you think is its strong point? (a) Reliable (b) Brand (c) Applications (d) Value for money

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Reason for asking this question: This question will focus on the reasons of loyal customers sticking to Nokia and not leaving it for other brands. What has been Nokia’s USP.

As the bar chart shows 50% of teenagers and equal number of 20s to 40s age group individuals feel that Nokia’s strength has been in reliability; 30% of the elders group agree with this. 40% of the people from elders group feel that Nokia’s handset have been good value for money. In the fronts of brand power and application facility, Nokia’s sets have been found lacking because in total only 4 responders agree that good applications have been Nokia’s strength and equal number of responders have endorsed Nokia’s brand power.

9.2.6 Which mobile phone do you think is the best value for money? (a) Nokia (b) Apple I phone series (c) Blackberry (d) Any other.

Reason for asking this question: This question will show customers choice of phone brand and where Nokia stands in this competition.

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As the bar graph shows out of 30 responders in all age groups 12 think that IPhones are the best buy (which is 40%), which is closely followed by Blackberry where 8 (26%) responders favour it. Out of 30 responders only 6 (20%) agree that Nokia is the best buy. This clearly shows that Nokia has been beaten badly by I-Phone and Blackberry in mobile sector. 9.2.7 If you have used Nokia phone in the past, and you started using any other brand. Why you changed from Nokia Phone? (a) Innovative features (b) Brand name (c) User friendliness

Reason for asking this question: The reason for asking this question is to know the reasons behind switching from Nokia Phones to other phones. It will also help in determining the results of not having innovative products.

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The bar chart shows the reason why responders have left Nokia and opted for other handsets. The chart shows that in all 3 categories, 12 responders have said that other sets have been more user friendly and 11 feel that Nokia’s handsets have not been innovative enough when compared to others. This result shows Nokia’s weakness in product innovation and its not being user friendly.

9.2.8 If you are using Blackberry, Apple or Google Android phones, do you find them more innovative than Nokia ? (a) Yes (b) No

Reason for asking this question: This question will clearly show if Nokia’s low sales are linked to product innovation or not?

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The bar chart shows that almost 90% responders (26 responders) in all age groups feel that lack of innovation by Nokia and Apple’s and Google’s aggressive focus on innovation has been the dominant reason for Nokia’s low sales in recent years. Only four responders hold other reason than lack of product innovation by Nokia Corporation. 9.2.9 Are you ready to pay a higher price for a phone, which has more innovative features in it? (a) Yes (b) No

Reason for asking this question: This question will show customers’ readiness to pay for a phone which has more innovative features even the price is high.

The bar chart shows that 60% of teenagers and equal numbers of individuals in their 20s-40s, and 70% of elders category thinks that if a phone has very good features with all applications, internet, and social media (apart from normal calling facility), they are ready to pay higher prices; 8 responders are indecisive about this and only 3 responders (10%) do not agree to pay higher prices. This clearly shows that if Nokia comes up with better and innovative handsets and if Nokia had to spend on product innovation, they still can mark the products at higher prices and people will buy it.

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9.2.10 Do you think that if Nokia phone has more innovative features in it, would people get into buying more Nokia phones as compared to other phones? (a) Yes (b) No (c) Maybe

Reason for asking this question: The reason for asking this question is that it will help in determining people intentions to buy Nokia phones or not, if Nokia brings innovation in its products.

This question confirms what has been said in the question 9. 19 responders out of 30 are agreeable to pay more if Nokia comes up with more innovative handsets, which could match Apple’s or Android’s level 8 responders are not sure about this.

Overall Conclusion from Questionnaire: Overall the questionnaire response taken from 30 responders in 3 different age groups has been able to establish that most people think that a mobile handset is more than a mere calling machine and Nokia has fallen from a market leader due to lack of product innovation and new players like Apple’s I-Phone and Google’s Android have shown higher product innovation. The survey shows that people have always found Nokia to be reliable and value for money but because of lack of product innovation they have lost loyalty of many customers. Customers are ready to pay higher prices for a product which has all features in them.
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10.EVALUATION OF PRELIMINARY RESEARCH
The most challenging part of the preliminary research was primary data collection because researcher had only 10 questions to ask from the 30 respondents and attention has to be paid to the precision of the questions. Linking the questionnaire and all its 10 questions to our two variables (product innovation and sales growth) took lots of effort. Also researcher has tried to represent all age groups in its research and thus divided the 30 respondents into three different age groups. As we were following a mixed methodology approach for the task, it was important to also collect secondary data from relevant resources. Though there was a huge pool of data available online about the two variables (innovation and sales), but finding a set of data, which was unbiased, relevant and closely linked to our research topic was difficult. However, with the combined study and analysis of primary data collection via questionnaire and secondary data collection, has to a greater extent solved our purpose. In a short span of 3 months and with limited resources and briefness of the research, the mixed methodology via questionnaire and secondary data analysis were best possible approach and it indeed proved sufficient for a level 7 business student.

11.CONCLUSIONS
Taking into consideration the way primary data collection and secondary data analysis went, it would be safe to say that the study has indeed been able to fulfil all three objectives that it had to reach its aim. Overall the questionnaire response taken from 30 responders from three different age groups has proved the hypothesis to be true that indeed effective product innovation will surely increase sales growth in Nokia Corporation. The descriptive analysis of questionnaire (as done above) it is clear that Nokia has lost its position of a market leader to Apple’s I-Phone and Google’s Android because of their move efficient product innovation. However, unlike primary data analysis, secondary data does not exclusively say that product innovation is the most dominant variable which can increase sales, especially in manufacturing based firms. But secondary data collection as well supports the positive impact of product innovation on sales growth.

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Thus on course of meetings all its objectives and achieving our aim, the study supports the hypothesis and indeed proves that effective product innovation will increase sales in Nokia Corporation.

Since this study was carried out on only 30 respondents and 10 representatives from three age groups, given the importance of this topic, it makes a very interesting topic to carry on higher level study. A more absorptive and relevant study of secondary data would not only bring out more about this bivariate relation more forcefully between product innovation and sales growth, but it will also given enough time to invest in effects of other independent variables (like product life cycle, rate of growth of firms in the market, and attractiveness of Nokia’s product). This research clearly gives Nokia its answer about what it can do to retain its market position and how innovatively Nokia Corporation can customize its products in order to increase its sales.

12.RECOMMENDATIONS
It is researcher’s recommendation that breadth of the questionnaire responders be widened. Instead of only having 30 subjects, it should be increased and variety of different sampling populations can be figured out to be questioned separately, which will set base for a more exhaustive study to two variables.

Secondly, as we know the limitation with questionnaire is that it does not allow the responders to give personal opinions as they have a set of closed ended questions, which forbids them to express their personal feelings, which can be very secretly and loads of important information which would have otherwise been helpful, gets missed. Thus personal one-to-one more description interviews would add another dimension to the whole study. Thirdly a huge pool of secondary data information would also help in study of these two variables. Before reaching any conclusion, Nokia Corporation must look into the whole scenario from other angles as well, which means looking the effects of other variables on the sales growth (multivariate analysis).

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13.REFERENCES

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Haans Loof (2002). “ON THE RELATIONSHIP BETWEEN INNOVATION AND PERFORMANCE: A SENSITIVITY ANALYSIS” Journal Economics of Innovation and New Technology. Vol. 15. No.4, pp 317-344. ICPSR, 2011. Survey Research and Questionnaires. [Online]. Available at: http://www.icpsr.umich.edu/icpsrweb/childcare/datamethods/survey.jsp. [Accessed on: 14 October 2011]. James P. Takona, 2002, “Educational Research: Principles and Practice” 1st Edition,UK: prentice hall [online]. Available at http://books.google.co.uk/books?id=Mlwz9rAwZJ8C&pg [Accessed 19 September 2011]. M. Eman (2009), "Perception of Saudi female Higher Education”, Journal of Documentation 48.4 (2009): 465-486. Mark S. and Philip L. 2009, “research methods for business students” 5th Edition. London UK: Financial Times/ Prentice Hall [online]. Available at http://books.google.co.uk/books?id=u-txtfaCFiEC&printsec [Accessed 3 October 2011]. Mobile marketer (2011). “Nokia cuts 3500 jobs” [Online]. Available at: http://www.mobilemarketer.com/cms/news/manufacturers/11110.html (Accessed: 25th June 2011). Nelson, R. R. (1991), ‘Why Do Firms Differ, and How Does It Matter?’, Strategic Management Nokia (2011). “About Nokia: our story” [Online]. Available at: http://www.nokia.com/about-nokia/company/story-of-nokia (Accessed: 29th August 2011). Qualitative research methods ; a field study 2000, [online]. Available at http://www.fhi.org/nr/rdonlyres/etl7vogszehu5s4stpzb3tyqlpp7rojv4waq37elpb yei3tgmc4ty6dunbccfzxtaj2rvbaubzmz4f/overview1.pdf [Accessed 24 september 2011]. Russian communication ltd 2010, [online]. Available at http://www.russcomm.ru/eng/rca_biblio/m/matveev01_eng.shtml [Accessed 28 september 2011]. Sussex university 2011 [Online]. Available at http://www.sussex.ac.uk/linguistics/documents/806q1_lecture_01.pdf [Accessed 25 September 2011].

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University of Kentucky, 2008. Unobtrusive Approaches. [Online]. Available at: http://www.uky.edu/SocialWork/courses/sw450-002/UnobtrusiveApproaches.pdf [Accessed on: 14 October 2011]. Western Michigan university 2011[Online]. Available at : http://ec.wmich.edu/glossary/prog-glossary.htf#D-F [Accessed 18 september 2011]. Writing CSU, 2011. Advantages of Qualitative Observational Research. [Online]. Available at: http://writing.colostate.edu/guides/research/observe/com2d1.cfm. [Accessed on: 13 October 2011]. Yvonne McGivern (2009). The practice of market research , 3rd Edition. London: pearson education limited. Yvonne McGivern (2009). The practice of market research , 3rd Edition. London: pearson education limited.

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