According to an article by Steve James in the World Socialist Web-site dated February 6th 2002, the Swedish company posted pre-tax losses of $1.97 billion, for the previous year and these losses were incurred, despite a radical downsizing in the workforce of the company (About 22000 jobs were cut the previous year).4
It is conventional knowledge that hairline cracks in the workings of a system, are more likely to lead to colossal problems. In the groups opinion, problems as minute as usability issues and image, could constitute a decline in sales figures, which in turn have a domino effect on the productivity of the organisation as a whole.
MARKETING RESEARCH QUESTION
To fulfil the requirements of Sony Ericsson., we have derived the following research questions:
- Determine what the customer preferences, attitudes and perceptions are, with regards to Sony Ericsson mobile phone handsets.
- Identify customer, needs, expectations, and buying behaviour, with respect to Sony Ericsson mobile phone handsets.
- Establish who the major target markets are for Sony Ericsson phone handsets.
- Identify the strengths and weaknesses of Sony Ericsson mobile phone handsets.
The marketing problem which we have decided to research, and which we feel will satisfy Sony Ericsson’s management problem of falling sales is ‘Determine whether customers attitudes, preferences, needs and buying behavior towards Sony Ericsson mobile phone handsets have changed, and how?’
COMPONENT QUESTIONS
- What are the key demographic characteristics of the customer?
- What make of mobile phone does the consumer own?
- What main criteria does the consumer use to decide on a mobile phone?
- What does the customer like and/or dislike about Sony Ericsson Phone handsets?
- What are the reasons for the person owning a mobile phone?
- How much does the customer typically spend on a mobile phone?
- How do consumers view Sony Ericsson mobile phones in comparison with competitors?
DECISION OUTCOMES
After the results have been gathered and analysed our agency should be in the position to put forward suggestions to Sony Ericsson. The suggestions should help Sony Ericsson to decide whether they need to change, and if so how they need to change their product, pricing and distributions, in order to increase sales of the Sony Ericsson mobile phones.
RESEARCH DESIGN
In order to fulfil the requirements requested by Sony Ericsson both exploratory and conclusive research will be undertaken. Exploratory research will be used to clarify and identify the important factors causing the decline in sales of Sony Ericsson handsets.
The exploratory research that will be carried out will consist of qualitative research techniques. This will enable an in-depth examination into the attitudes, preferences, need’s and buying behavior of customers.
There are four methods of exploratory research, which are discussed below:
- Pilot studies- surveys which use only a limited number of respondents, and employ sampling techniques that are less rigorous than that employed in large quantitative studies.
- Experience surveys- discussions with knowledgeable individuals who will provide insights into the problem of declining of sales.
- Secondary data analysis- the study of data that has been previously gathered.
- Case analysis- the analysis of information from situations that are similar to the present one.
For the purpose of this report only three of the methods listed above will be used. Pilot studies will be used in the form of pre-test questionnaires. These will be given to four people. They will provide feedback as to how the questionnaire can be further improved. Improvements may be in the form of re-phrasing questions or eliminating certain questions if necessary.
With regards to the experience surveys, ideally if time and finance were not issues, three interviews would be carried out. One of the interviewee would be of a professional status. It is felt that the interviewee would be able to give a greater insight in to sales of Sony Ericsson. The other two interviewees would consist of a Sony Ericsson mobile phone user and a non-Sony Ericsson user. This would give a deeper understanding of the customer’s attitude, preferences, needs and buying behaviour towards mobile phone handsets.
Ideally, we would also carry out a focus group. This is a type of qualitative research. A focus group would be used because it would encourage group discussions, which would in turn generate deeper thoughts and ideas into customer attitudes, needs and preferences. The focus group should be carried out before the questionnaire is written. This is due to the fact that the focus group will give rise to issues that can be further investigated in the questionnaire. Also the focus group will enable words and phrases that are meaningful to the consumer to be included within the questionnaire. The disadvantages of carrying out a focus group are that a few members of the group may dominate the group. This may inhibit the other members to express their true feelings, which may lead to inaccurate results.
The third and final method of exploratory research adopted in this report will be secondary data analysis. This will be the use of various Internet sites, Ericsson’s annual report for the year, books, newspaper articles, library resources and various other forms of secondary data. This will give us information as to whether further research needs to be carried out and can also help to define the problem in question.
The quantitative research technique that will be used in this report is a questionnaire. Questionnaires are a form of conclusive, descriptive research, which requires statistical analysis. Statistical analysis is an efficient method of summarising large sets of data.
For the purpose of this report 30 questionnaires will be handed out. The questionnaires will be carried out on a one to one basis. This will enable the results to be obtained in the quickest time possible and will occupy the least amount of respondent’s time. Also, this method will ensure that the maximum response is received.
The 30 respondents will be chosen using a sampling method called quota sampling. Sampling is being used for two reasons. Firstly, pragmatic reasons because all the sampling units in the population can not be contacted. Secondly, if the sample is randomly chosen it can represent the thoughts and feelings of the whole population (within a calculable and reasonable margin of error).
The target market for Sony Ericsson handsets, we feel, range from the ages of 18 to 35, who are style conscious. The data collection method is on a one-to-one basis through a questionnaire. We will choose people at random, from the general public that fall into the criteria of Sony Ericsson mobile phone user and mobile phone users in general.
DATA ANALYSIS
It is imperative that the data is presented and gathered from both primary and secondary resources as evidence that the organisation Sony Ericsson is facing a management problem.
The purpose of the data analysis is to provide information, which has been translated from its initial form and to not simply present data. A primary characteristic of information is that it can be understood without prior knowledge or interpretation. After carrying out the proposed research on the organisation, we will analyse the results of our findings on the company, using analytical software like Microsoft Excel for the following purposed:
- graphs, such as: pie charts, bar charts, and line graphs.
TIMESCALE
Week 1 ~ 27/09/02
- Get into a group of three to four people
- Carry out research into an organisation facing difficulties
- Chosen company is Sony Ericsson
Week 2 ~ 04/10/02
- Research into the problem/ challenges facing Sony Ericsson
Week 3 ~ 11/10/02
- Prepare a proposal due in for 14/10/02
Week 4 ~ 18/10/02
- Research into the Background of Sony Ericsson
Week 5 ~ 25/10/02
- Decide on the problem facing Sony Ericsson
- Prepare on the research questions/ objectives components and decisions
Week 6 ~ 01/11/02
- Carry out work involving the problem affecting the market research
Week 7 ~ 08/11/02
- Prepare the market research, e.g. Interviews, questionnaires, etc.
Week 8 ~ 15/11/02
- Analyse all the market research methods
- using the research comment on the findings
Week 9 ~ 22/11/02
- Comment on the conclusion and make recommendations
Week 10 ~ 29/11/02
- Write the limitations of the problem
- Write down the bibliography and make references
Week 11 ~ 06/12/02
Hand in final copy of Report to student office
REFRENCES & BIBLIOGRAPHY
Sony Ericsson Homepage available: (2002, October 10)
BBC News Homepage (2002, August 21 – last update)
available: (2002, October 11)
‘Samsung overtake Sony Ericsson’, The Financial Times (11 February 2002)
The World Socialist Homepage (2002, February 6 – last update)
available: (2002, October 11)
Malhotra, Naresh K. (1996). Marketing Research. (2nd Edition)
United States Of America: Prentice-Hall International, Inc.
Proctor, Tony. (2000). Essentials Of Marketing Research. (2nd Edition)
Great Britain: Pitman Publishing.
Bains, P. & Chansarkar, B. (2002) Introducing Marketing Research. Sussex: John Wiley & Sons Ltd.
Luck, D AND Rubin, R (1997) Marketing Research (7th Edition)
Prentice-Hall International (UK) Ltd, London.
1 Sony Ericsson Homepage available: (2002, October 10)
2 BBC News Homepage (2002, August 21 – last update)
available: (2002, October 11)
3 ‘Samsung overtake Sony Ericsson’, The Financial Times (11 February 2002)
4 The World Socialist Homepage (2002, February 6 – last update)
available: (2002, October 11)
