Nokia started

its
India operations in 1995

India holds the distinction

of being the second
largest market
for the company globally
Competitive
Context
A frame work
A frame work

Customers Competitors
Product Value
change chain change
Industry dynamics

Technology Change
Lead Customers

 Nokia targets billion customers in

rural India and sells products
through distributors, network
operators and Nokia branded
stores.

 It has wide variety of handsets to

meet the requirements of every
segment.
Lead Customers
How well are they currently served
How well are they currently served

 Research & Surveys carried out

twice a year.

 Provides support services

through online, email and call
center services.

 Various effective feedback

channels
Customer segmentation
• Nokia 1100
• Targeting rural customers

• Nokia 7610
• Targeting middle segment

• Nokia N-series
• Upper middle segment

• Nokia E90 Communicator

Reaching
Customers

• Nokia Priority Dealers

• Nokia Concept Store
• Market making & category creation in
small towns
• Nokia VAN Operations
• Widest Care Network
• 18 X 7 Access to Nokia Care line
Needs & Requirements
Shifting
Shifting

• Multiple applications in a single

mobile device and consumers are
willing to pay for them
• A device should reflect customer’s
personality
• Affordable, Accessible, Functional,
Creative phone Device and
applications
Major Competitors
Emerging Competitors
Market Share
Evaluating
Competitors

Sony Ericsson
Samsung
L.G.
Great quality music
-Walkman series Superior display Capturing GSM
quality market
Superb Picture
quality Costly High end internal
-Cyber shot Features.
Less durable
Product lacks
innovation
Strategy
Winning Rural market
Winning Rural market
Started rural van project, 2 years back
Showcase solutions, use of mobile
technology
Nine regional language support
Nokia life tools - Agriculture, Education
Tie ups with various organizations
* MSAMB
* Reuters market light
* Madison research
* Various NGO’s
Competitive
Space for Nokia
• Diverse product portfolio
• Entry level, first time
subscribers
• Advanced business devices
• High performance multimedia
devices
• Strong distribution network
• Convergence of internet and
mobility
Key Shifts

• Fast growing smartphone market

• Increased focus on services
• Newer, richer features at attractive
price points
• Feature-rich (full QWERTY keyboard)
and application-rich (IM-enabled)
mobile handsets
• Growing attention towards CDMA
 outlook
3-5 years
3-5 years
• Number of high-end mobile phone users will grow five
times in the next three years

• Size of the handset market in India will increase to

150 million in 2010-11 from 130 million last fiscal

• Size of data service-enabled phones would touch 25

million in three years from five million in 2008-09

• Demand for feature-rich handsets selling at a price

range of Rs 5,000 to Rs 12,000 will continue to grow

Source : Business Standard (Nov 27, 2009)

Product
Solution
Space
Space
 We offer products, services
and solutions that connect
communities, help realize
potential, entertain and
celebrate people’s lives
 Together we can explore these
possibilities and come together
to help define and drive the
future of our industry
 Nokia's business groups are
supported by various horizontal
entities which adds to its
efficiency
 PRODUCTS &
SERVICES

ENTERPRISE
MOBILE PHONES MULTIMEDIA NETWORK
SOLUTION
 Saare
First phone
First mobile Jahaan Se
with Hindi
phone call Acchha, first
menu
Indian
(Nokia
ringtone
3210)
1995 1998
2000

First Made Saral Mobile

First Camera
for India Sandesh, Hindi
phone (Nokia
phone, SMS on a wide
7650)
Nokia 1100 range of Nokia
2003 phones
2002 2004

Local UI in Nokia First

additional manufacturing vernacular
local plant in news
language Chennai portal

2005 2007
2006
Product Space,
three to five years
three to five years

• Pocket tablet
• Modem
• Computers
with intel -
technology
• 4G phones
 Where is Nokia,
in

Technology terms of
technology...
Decoding
Technology...

Affect of key technologies

Change is constant
Future tech
Need & demand
Cause and effect
Building strategy
Key
Technology
WiFi capability
Internet/ Data
flexibility
Security
Long battery life
High screen resolution
User friendly
Change is constant

First Gen
1983, Motorola,
Analog
Second Gen
1990, Digital
Third Gen
Currently, Data/ VOIP
Fourth Gen
...
The 4th
Generation...

QuickTimeª and a
decompressor
are needed to see this picture.
Need and demand

Old Rivals
Motorola launched the first generation
phones
Nokia, second generation a potential
market.

New Rivals
O2, Iphone and Android
New models, Symbian based, modern
capabilities.
End Users

Normal Users
Flaunt Freaks
High-end Users
Alpha Geeks

Target Segment
Building Strategy

Need for new product or product diversification

Not at least for coming 2 years
Value
High end technology, User friendly GUI, Value for money
Dealing with competition
STP, Traditional customer base, emerging as a service
provider
Keep the customer Illiterate
Too much of information is harmful
Insight...

Target
Middle class
We love technology
Over complicated, makes us afraid
We like innovations
Cellphone - a mega trend not a fad
We are buying a mobile phone not “Gold”
 S W
• High market share- • Bad service center
70% • Sound quality &
SWOT • Brand name camera options
• Manufacturing plant
• R&D

O SO: WO:
• Market growth • Market growth & • May lose market
• Future technology share share
• Innovation • Concentration on
• Market share & technology
profitability

T ST: WT:
• Changing • Expectations is more • Should improve the
technology • Should concentrate on services to compete with
• Increased CDMA mobiles competitors
competition
• Less CDMA
mobiles
Insight...
Customers
Rural customers feel, Customer loyalty in urban areas
Competitors
Key competitor - Apple Iphone
Product
Indians prefer simplicity
Technology
Advanced Products
Industry
Competitive era - need for constant innovation
Current Market Place
Strategy
An Internet services
driven firm
Establishing crucial
distribution partnership
Early investments in
manufacturing and
brand-building
Developing innovative
product features
Future Market Place
Strategy
Increase the market
share
Device to device plus
service solution
Breaking into rural
markets
Nokia “LIFE” tools
“Obopay” mobile
payment services
Scenarios
Scenario 1 Scenario 2
Focus more Application
on based
rural customers mobile phones

Scenario 4
Scenario 3
Concentrate
CDMA
on
mobile phones
technology
Scenario 1
Threats
• Losing out on high end customers
• Competitors coming up with much cheaper handsets

Opportunities
• Large consumer base
• A growing segment
• Cost efficient handsets can be made
Strategy
• The company is planning to Nokia life
tools, which would benefit farmers in rural
areas in 11 states.
• Farmers and students can get relevant
local information on seeds, crops market
and weather through SMS.
• Educational services-Users can opt for an
English word a day and learn how it is
pronounced and its meaning in its native
languages
Scenario 2

• Opportunities
• Strong base with already popular existing applications
from ‘ovi’
• Stable and fast operating system to support technology

• THREATS
• Apple iphone has better applications
• Indian consumers are not much technology savvy
• Microsoft coming up with “Bazaar”
Strategy
• To inform consumers about ‘Ovi’
• Developing handsets supporting
more applications
Scenario 3
CDMA technology
CDMA technology

• OPPORTUNITIES
• Indian markets will appreciate CDMA because of its
better cellular communication security as India faces
terror attacks.
• CDMA will attract huge rural market because of its
extended reach and lower power requirements.

• THREATS
• Strong GSM Brands handsets with competitive prices and
competitive plans by GSM service providers.
• Few CDMA service providers.
• Switching to different service provider is not possible and
upgrading of handset is also not easy as compared to
GSM sets.
• CDMA Handsets are more sensitive and costlier.
Strategies

• DUAL SIM PHONES WITH CDMA AND GSM

TECHNOLOGIES.
• NOKIA MUST DEVELOP ECONOMICAL CDMA
HANDSETS.
Scenario 4
Concentrate on technology
Concentrate on technology

Opportunity
In 2002, more than 19,000 people worked in R&D centers in 14 countries.
Today, Nokia has the leading technology in GSM of the world.

Strategies/ Operations
Mobile phone is not only a “phone”
It should include all the functions that brings the mobile phone closer to a PC

Action plan
As technology develops, the status of function values increases constantly. What are the new functions made? How to produce
mobile phones that can excite and attract the customer?
Strategic choices
Customer Focus
•Optimal product portfolio offering per category
•Diving into new areas retaining the understanding for the
consumer segments

Winning proposition
•Breaking into rural markets
•Providing solutions and not just devices

Setting key priorities

•Utilize the already established and strong distribution
network to penetrate deeper into untapped markets
Invest in technology to come up with more tech-savvy
products for the consumers ahead of competition
Financials

NET SALES BY GEOGRAPHICAL AREA (million

units)

Asia-Pacific

Q3/2009 30.5
Q3/2008 33.6
YoY -9.2%