PROJECT REPORT

O

CO SUMER PURCHASI G BEHAVIOR A D BRA D PROMOTIO

BY Satish Prakash Goyal

MBA
2007-2009

TILAK MAHARASHTRA U IVERSITY PU E

Institute Of Business Studies & Research Pune (Satish P.Goyal)

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CERTIFICATE
This is to certify that Satish Prakash Goyal student of INSTITUTE OF BUSI ESS STUDIES A D RESEARCH completed his field work report at okia India Pvt Ltd on

the topic of CONSUMER PURCHASI G BEHAVIOR A D BRA D PROMOTIO and has submitted the field work report in partial fulfillment of Master of Business Administration of the TILAK MAHARASHTRA UNIVERSITY for the academic year 2007 - 2009. He has worked under our guidance and direction.

Project guide name

Designation

Director

Date:-

Place:-

Institute Of Business Studies & Research Pune (Satish P.Goyal)

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DECLARATIO
I herby declare that the project titled “Consumer Purchasing Behavior and Brand Promotion” is an original piece of research work carried out by me under the guidance and supervision of Mr. Deepak Yadav. The information has been collected from genuine & authentic sources. The work has been submitted in partial fulfillment of the requirement of Master of Business Administration to Tilak Maharashtra University.

Place: Date:

Signature: Satish Prakash Goyal M.B.A 2007-2009

Institute Of Business Studies & Research Pune (Satish P.Goyal)

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Acknowledgement

I would like to thank Mr. Kauhsik (Manager-Sales Department), Nokia India Pvt Ltd and Mr. Deepak Yadav(Asst. Manager – Sales Department),Nokia India Pvt Ltd for giving me an opportunity to work on this project and providing guidance to me at required times.

I am very grateful to Prof Ranjeet Choudhary for having given me an opportunity to undertake this project. The successful completion of this project would not have been possible without their generous cooperation. I am greatly indebted to IBSAR, Pune for providing me the stepping stone to my Professional career and that too in an esteemed organization like okia India Pvt Ltd.

I would also like to thank the Department and people in the organization for sparing their valuable time and providing useful insight’s that have made my learning experience very fruitful.

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Preface

Summer training is an integral part of the course curriculum for the degree of Master in MBA. It provides valuable experience to management student, this expose them to functional areas of management.

It also provides them an opportunity to be a part of real corporate world with the same object; I took my summer training at were:okia India Pvt Ltd. The main points on which I laid stress

• • • •

To gain depth knowledge about the actual working of the company. To gain familiar with sales process at NOKIA. To know how to do direct marketing and personal selling for the company. To know the purchasing behavior of consumers.

The knowledge I have gained has been presented in the form of report has been made in a manner such that it is easy for the reader to know maximum details in minimum time.

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TABLE OF CO TE TS

Sr. No.

Topics

Page No.

1. Chapter – I Introduction Objectives of the study Scope of study Research Methodology Data collection Limitation of the study

7 8 9 10 11 11

2. Chapter – II Review of Literature 3. Chapter – III Executive Summary Profile of the Company Main Business & Procedures Analysis with Graphical Representation

12-14

16 17-28 28-44 45-50

4. Chapter – IV Conclusion Inferences Observations & findings SWOT Analysis of company Recommendations for applications 5. Chapter – V Bibliography Questionnaire

52-53 54 55-57 58-60

61 63-64

Institute Of Business Studies & Research Pune (Satish P.Goyal)

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CHAPTER – 1

INTRODUCTION

Institute Of Business Studies & Research Pune (Satish P.Goyal)

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Objective of Study

Primary objective

The primary objective of the project was to enhance the consumptions the Nokia products .

Encourage the retailers of the Pune city. .

Secondary Objective
• The whole process of doing the project is to know why the market share of nokia handsets slipping or coming down. • • • To know the consumer preferences and choices. To know the potential of the market and expand into new markets and business. To study consumer behavior and increase market share and create distance from competition.

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Scope of Study

Nokia is already well establish in the market, but there are lots of others things that has to be understand as a Sales Assistant.

• •

First the main thing I have learned how the supply chain process affect sales. The intensity of competition in the mobile communications industry and our ability to maintain or improve our market position or respond successfully to changes in the competitive landscape.

Our ability to manage efficiently our logistics, as well as to ensure the quality, safety, security and timely delivery of our products, services and solutions.

I have worked as a Sales Assistant ,during the project I come to know that customers are too price conscious they want a quality product in less amount.

I have learned about

consumer behavior

how they respond in practical life.

Consumers always looks for better value proposition, they always compare the benefits of one company to others.

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RESEARCH METHODOLOGY

Research methodology is a systematic way to solve the research problems,It refers to search for knowledge , a scientific and systematic search for information. Marketing research is the systematic design , collection, analysis and reporting of data and finding relevant to a specific marketing design, collection, analysis and reporting of data and finding relevant to a specific marketing situation facing the company.

Objectives of Research

Primary objective
• To understand the problem thoroughly.

• Rephrasing the same into meaningful terms from an analytical point of view.

Secondary objective
• • • To fill the gap in knowledge. To resolve contradictory finding. To test the theoretical prediction

Institute Of Business Studies & Research Pune (Satish P.Goyal)

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Data collection

Data collection means collections of information, facts or figures for the problem.

Primary data collection- Primary data is the first hand information obtained by
investigator . Primary source is one itself collects the data. Primary data can be collected by observation , by interviews, by face to face questioning , by using questionnaire, when the needed data do not exist or are dated , inaccurate , incomplete, or unreliable.

Secondary data collection – Secondary data is collected by others already and the
researcher is using that information for his own research purpose. Secondary data can be collected from published reports , newspaper, websites, journals, publications of national and international organization.

Sampling plan :
Sampling unit - Walk-in customers in retail outlet. Sample size
- 100

Sampling Instruments- Questionnaire, face to face interview

Limitations - Limitations of the projects are to know the behavior of the customers ,
market segmentation, product ,and pricing policy and the attitude, feeling and reaction of the consumer towards the products.

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CHAPTER -2

REVIEW OF LITERATURE

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In recent years, the adoption of the mobile phones has been exceptionally rapid in many parts of the world and e especially in India, where cellular phones are nowadays almost as common as wrist watches. Although it is evident that the large players in the telecommunication business constantly conduct market research, the problem is that the results are obtained are usually kept inside company walls and therefore consumer behavior in mobile phone industry is an unexamined genre in academic literature The trend that mobile phones are purchased earlier and earlier was verified with the data. While looking at oldest surveyed group three (older university students) majority of them bought their first mobile phone at the age of 18 (24%), followed by the age of 19 (23%) and 20 (15%). In comparison, 33% of the youngest group (secondary school students), acquired their first mobile phone at the age of 15 Price and properties were regarded as the most important motives affecting the decision to purchase current mobile phone model among the respondents as displayed. According to the survey close to 80 percent and over 85 percent, for price and properties respectively, felt that price and properties had affected their decision making at least relatively much. Price might have dominated the decision making in the sample more than it does for the whole population, as the average net income in the target group was relatively low Conclusion - The exploratory study was conducted to increase our understanding of the mobile phone market in general and analyse consumer decision making in particular. The study attempted to cast light on the much unexamined area of the mobile phone purchase, operator choice, and use of the mobile phone services.

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The main results of the study indicates that 1. First of all the age of purchasing a mobile phone among young Indian has lowered in just few years from 18-19 to 14-15. 2. Secondly, the factors underlying purchase of a mobile phone were found to be manufacturer, market condition, and influential persons. For the choice of operator the factor were found to be features and brand, components in pricing, quality and influential persons. 3. Thirdly, only about 15% of the respondents felt that their use of mobile services would increase in the next 12 month.

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CHAPTER -3

COMPA Y PROFILE

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EXECUTIVE SUMMARY

Mobile phone market in India is going through major changes. Key players are losing market share while new and young companies, mostly from Asian countries, are coming to the market. At the same time the market is slowly expanding when people are buying more phones than ever. The whole process of buying mobile phones has changed in the last few years. People no longer carry the same phone year in year out, change is the fast technological development of the phones. But also consumer’s but they change their phone very year, some even twice a year. One reason for these attitudes towards mobile phones has changed. Mobile phones are no longer seen as expensive, hi-tech products, but they have become accessories like jewellery or a piece of clothing. “Nokia is still the largest mobile phone company in the world, but its long-term dominance is now challenged more than ever. Observers have begun asking whether the cutting edge that has turned Nokia into the No 1 vendor still exists, as Nokia’s market share and revenues have been on the decline. Falling average sales prices (ASPs) and market share have had an impact and forced Nokia to further re-think its strategy towards developed and emerging markets.”

This report gives an overview on what is happening on the mobile phone market today and analyses Nokia’s market position in the growing market. This report includes a brief introduction to Nokia followed by an environmental analysis, SWOT analysis of the company. Half way through the report you can find information about consumer behavior and segmentation. At the end, this report introduces the main strategies and objectives of Nokia for the competitive market. Finally we try to make a conclusion of the topics discussed and attempt to give some possible answers to the question at hand. Institute Of Business Studies & Research Pune (Satish P.Goyal) Page 16

History

The roots of Nokia go back to the year 1865 with the establishment of a forest industry enterprise in South-Western Finland by mining engineer Fredrik Idestam. Elsewhere, the year 1898 witnessed the foundation of Finnish Rubber Works Ltd, and in 1912 Finnish Cable Works began operations. Gradually, the ownership of these two companies and Nokia began to shift into hands of just a few owners. Finally in 1967 the three companies were merged to form Nokia Corporation. At the beginning of the 1980s, Nokia strengthened its position in the telecommunications and consumer electronics markets through the acquisitions of Mobira, Salora, Televa and Luxor of Sweden. In 1987, Nokia acquired the consumer electronics operations and part of the component business of the German Standard Elektrik Lorenz, as well as the French consumer electronics company Oceanic. In 1987, Nokia also purchased the Swiss cable machinery company Maillefer.

In the late 1980s, Nokia became the largest Scandinavian information technology company through the acquisition of Ericsson's data systems division. In 1989, Nokia conducted a significant expansion of its cable industry into Continental Europe by acquiring the Dutch cable company NKF. Since the beginning of the 1990's, Nokia has concentrated on its core business, telecommunications, by divesting its information technology and basic industry operations.

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1865-1960

From its inception, Nokia was in the communications business as a manufacturer of paper the original communications medium. Then came technology with the founding of the Finnish Rubber Works at the turn of the 20th century. Rubbers, and associated chemicals, were leading edge technologies at the time. Another major technological change was the expansion of electricity into homes and factories which led to the establishment of the Finnish Cable Works in 1912 and, quite naturally, to the manufacture of cables for the telegraph industry and to support that new-fangled device - the telephone! After operating for 50 years, an Electronics Department was set up at the Cable Works in 1960 and this paved the way for a new era in telecommunications. Nokia Corporation was formed in 1967 by the merger of Nokia Company - the original paper-making business - with the Finnish Rubber Works and Finnish Cable Works. 1960-1980

Design has always been important at Nokia and today's mobile phones are regarded as a benchmark for others to follow. Take, for example, multi-colored, clip-on fascias which turned mobiles into a fashion item overnight. But Nokia has always thought like that and back in the fashion-conscious 1960's when one branch of the corporation was a major rubber manufacturer, it hit on the idea of making brightly-colored rubber boots at a time when boots followed the Henry Ford principle - you could have any colour, so long as it was black! Institute Of Business Studies & Research Pune (Satish P.Goyal) Page 18

The '60s, however, were more important as the start of Nokia's entry into the Telecommunications market. A radio telephone was developed in 1963 followed, in 1965, by data modems - long before such items were even heard of by the general public. In the 1980's, everyone looked to micro computers as the next 'big thing' and Nokia was no exception as a major producer of computers, monitors and TV sets. In those days, the prospect of High Definition TV, satellite connections and teletext services fuelled the imagination of the fashion conscious homeowner. In the background, however, changes were afoot. The world's first international cellular mobile telephone network, NMT, was introduced in Scandinavia in 1981 and Nokia made the first car phones for it. True enough, there were 'transportable' mobile phones at the start of the '80's but they were heavy and huge. Nokia produced the original hand portable in '87 and phones have continued to shrink in inverse proportion to the growth of the market ever since. 1980-2008 It took a technological breakthrough and changes in the political climate to create the wirefree world people are increasingly demanding today. The technology was the digital standard, GSM, which could carry data in addition to high quality voice. In 1987, the political goal was set to adopt GSM throughout Europe on July 1st 1991. Finland met the deadline, thanks to Nokia and the operators. Politics and technology have continued to shape the industry. The '80s and '90s saw widespread deregulation, which stimulated competition and customer expectations. Nokia changed too and in 1992 Jorma Ollila, then President of Nokia Mobile Phones, was appointed to head the entire Nokia Group. The corporation divested the non-core operations and focused on telecommunications in the Digital Age. Few people in the early '90s would have thought that 'going digital' would change things so much. Institute Of Business Studies & Research Pune (Satish P.Goyal) Page 19

Some firsts for okia in India

1995 – First mobile phone call made in India on a Nokia phone on a Nokia Network 1998 - Saare Jahaan Se Acchha, first Indian ring tone in a Nokia 5110 2000 - First phone with Hindi menu (Nokia 3210) 2002 - First Camera phone (Nokia 7650) 2003 - First Made for India phone, Nokia 1100 2004 - Saral Mobile Sandesh, Hindi SMS on a wide range of Nokia phones 2004 - First Wi-fi Phone- Nokia Communicator (N9500) 2005 – Local UI in additional local language 2006 – Nokia manufacturing plant in Chennai 2007 – First vernacular news portal

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Company Description
Management Team

Olli-Pekka Kallasvuo Chairman ,President and CEO of Nokia Corporation Robert Andersson Executive Vice President, Devices Finance, Strategy and Sourcing Simon Beresford-Wylie Chief Executive Officer, Nokia Siemens Networks Timo Ihamuotila Executive Vice President, Sales Mary T. McDowell Executive Vice President, Chief Development Officer Hallstein Moerk Executive Vice President, Human Resources Tero Ojanperä Executive Vice President, Entertainment & Communities iklas Savander Executive Vice President, Services and Software Richard A. Simonson Executive Vice President, Chief Financial Officer Veli Sundbäck Executive Vice President, Corporate Relations and Responsibility Anssi Vanjoki Executive Vice President, Markets Dr. Kai Öistämö Executive Vice President, Devices

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Nokia Corporation

Public – Oyj Type (OMX: NOK1V, NYSE: NOK, FWB: NOA3) Founded Founder Headquarters Nokia, Finland (1865) Fredrik Idestam Espoo, Finland Kari Kairamo, CEO in the 1980s Key people Olli-Pekka Kallasvuo, President & CEO Jorma Ollila, Chairman Industry Telecommunications Mobile phones Products Smart phones Multimedia computers Networks Services and Software Online services ▲ €51.058 bn (2007)[1] Page 22

Services

Revenue

Institute Of Business Studies & Research Pune (Satish P.Goyal)

Operating income et income Total assets Total equity Employees

▲ €7.985 bn (2007)

▲ €7.205 bn (2007) ▲ €37.599 bn (2007) ▲ €17.338 bn (2007) 116,378 as of March 31, 2008[2] Nokia Siemens Networks

Subsidiaries

Vertu Navteq (pending merger)

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Corporate culture

Nokia's official corporate culture manifesto, The Nokia Way, emphasises the speed and flexibility of decision-making in a flat, networked organization, although the corporation's size necessarily imposes a certain amount of bureaucracy. The official business language of Nokia is English. All documentation is written in English, and is used in official intra-company spoken communication and e-mail. Until May 2007, the Nokia Values were Customer Satisfaction, Respect, Achievement, and Renewal. In May 2007, Nokia redefined its values after initiating a series of discussions worldwide as to what the new values of the company should be. Based on the employee suggestions, the new values were defined as: Engaging You, Achieving Together, Passion for Innovation and Very Human

Nokia manufactures mobile phones and mobile network equipment. They provide solutions and services for mobile telecommunications and network infrastructure. The company is divided into four major segments: Mobile Phones, Multimedia, Networks and Ventures Organization.

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The Mobile Phones division of Nokia manufactures develops wireless handsets are developed using GSM and various other mobile technologies. This segment also includes Vertu Ltd., which is a subsidiary of Nokia and also the first company in the world to manufacture exclusive luxury Nokia cell phones. The Multimedia division manufactures multimedia devices and applications that are compatible with games, music, imaging, video and other media capabilities. The Multimedia division has gained prominence for its Internet services, music synchronization, optics and streaming video. Nokia’s Networks segment offers network infrastructure, service delivery platforms and associated services. In this part of the company, the focuses is mainly on the GSM cell phones and GSM technology. For the public safety and security sector, the Networks offers broadband access for professional users. They also produce a range of devices and mobile connectivity solutions that are based on end-to-end mobility architecture. By December 2005, Nokia had more than 150 cell phone network customers in more than 60 countries.

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VISIO
“Our customers continue to our First Priority”

Nokia’s future success depends on delivering great experiences to our customers by creating products and solutions that work seamlessly and are appealing.

Everyone has a need to communicate and share. Nokia helps people to fulfill this need and we help people feel close to what matters to them. We focus on providing consumers with very human technology – technology that is intuitive, a joy to use, and beautiful.

We are living in an era where connectivity is becoming truly ubiquitous. The communications industry continues to change and the internet is at the center of this transformation. Today, the internet is Nokia's quest.

Nokia's strategy relies on growing, transforming, and building the Nokia business to ensure its future success.

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Mission
‘In a world where everyone can be connected, we take very human approach to technology” Connecting is about helping people to feel close to what matters. Wherever, whenever, Nokia believes in communicating, sharing, and in the awesome potential in connecting the 2 billion who do with the 4 billion who don’t. If we focus on people, and use technology to help people feel close to what matters, then growth will follow. In a world where everyone can be connected, Nokia takes a very human approach to technology.

Strategy

“Wherever, whenever, we believer in communicating, sharing and in the awesome potential of connecting the 2 billion who do, with the 4 billon who don’t”

At Nokia, customers remain our top priority. Customer focus and consumer understanding must always drive our day-to-day business behavior. Nokia’s priority is to be the most preferred partner to operators, retailers and enterprises.

Nokia will continue to be a growth company, and we will expand to new markets and businesses. World leading productivity is critical for our future success. Our brand goal is for Nokia to become the brand most loved by our customers.

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STRUCTURE Devices are responsible for developing the best device portfolio for the marketplace, including sourcing of components. Services & Software reflects our strategic emphasis on developing and growing our offering of consumer Internet services and enterprise solutions and software. Markets are responsible for management of our supply chains, sales channels, and brand & marketing activities. The Corporate Development Office focuses on our strategy and future growth, and provides operational support for integration across all the units. On April 1, 2007, Nokia’s Networks business group was combined with Siemens’ carrierrelated operations for fixed and mobile networks to form Nokia Siemens Networks, jointly owned by Nokia and Siemens and consolidated by Nokia.

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QUALITY:
Quality is at the heart of Nokia’s brand promise, human friendly technology.

We want our customers to know that Nokia is the best quality company in the industry. Our goal is to have the industry’s best products and services, most loyal customers and most efficient operational mode.

Nokia believe that quality is about meeting and exceeding customer expectations. At Nokia, we view quality holistically and as an integral part of business management. The quality of products and customer experiences depends on the quality of processes, which in turn is tied to the quality of management.

Our key quality targets are:

• • •

For Nokia to be number one in customer and consumer loyalty. For Nokia to be number one in product leadership. For Nokia to be number one in operational excellence.

The quality and reliability of our products and services are among the most important factors driving customer satisfaction and loyalty. Designing good quality products begins with understanding customer requirements and creating the best user experience. The whole chain, from suppliers through to R&D, operations, sales and distribution to customers, impacts the end-result – everybody in the chain has a role to play in achieving quality. Our products and customer experiences are the results of our everyday processes.

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Process management means finding the simplest way of operating, in order to create customer value in a lean manner. Our process thinking covers everything we do, and processes are continuously improved based on the measures and the feedback we receive from our customers. .

Quality in management is vital for leveraging innovations globally and improving productivity in general. Our approach to this is platform thinking, process management and combining fact-based management with values-based leadership. We have developed a key framework for improvement at Nokia, which we call the 'Self-Regulating Management System'. It's about management practices that allow us to run our business in a consistent, effective and fact-based manner. Commitment to quality improvement is a continuous management process. It is both a business strategy and a personal responsibility, and it is a part of our culture and values. But at the end of the day, quality improvement is much more than something we can quantify in words or pictures. It is an attitude – a mindset. By taking quality personally we are able to deliver world-class quality to our customers. It is our source of inspiration, energy and excitement

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List of okia products
The following is a partial list of products branded by Nokia.

Contents

1 Mobile phones 1.1 Classic series – The Mobira series 1.2 Original series 1.3 1000–9000 series 1.3.1 Nokia 1000 series – Ultrabasic series 1.3.2 Nokia 2000 series – Basic series 1.3.3 Nokia 3000 series – Expression series 1.3.4 Nokia 5000 series – Active series 1.3.5 Nokia 6000 series – Classic Business series 1.3.6 Nokia 7000 series – Fashion and Experimental series 1.3.7 Nokia 8000 series – Premium series 1.3.8 Nokia 9000 series – Communicator series (discontinued) 1.4 Special function phones 1.4.1 Nokia Eseries – Enterprise series 1.4.2 Nokia Nseries – Multimedia Computer series 1.4.3 Nokia N-Gage – Mobile gaming devices (discontinued) 1.4.4 VERTU – Luxury phones 1.4.5 Cardphones (PCMCIA)

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1.4.6 Concept phones

2 Other products 2.1 Digital television 2.2 ADSL modems 2.3 WLAN products 2.4 Telephone switches 2.5 GPS products 2.6 TETRA 2.7 Internet tablets 2.8 Security solutions 2.9 Software solutions 2.10 Military communications 3 References 4 External links

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2007 facts and figures:
• Head office in Finland; R&D, production, sales, marketing activities around the world • World’s #1 manufacturer of mobile devices, with estimated 38% share of global device market in 2007 • Mobile device volumes 437 million units. • Net sales EUR 51.1 billion • Operating profit EUR 8.0 billion • 112262 employees at year end (including Nokia Siemens Networks) • Strong R&D presence in 10 countries • R&D investment EUR 5.6 billion • 30415 employees in R&D (approximately 27% of workforce, including Nokia Siemens Networks) • Sales in more than 150 countries • Nokia devices available at approximately 350,000 points of sale • World’s 5th most valued brand (Interbrand, 2007) #1 brand in Asia (Synovate 2006

and 2007), and #1 brand inEurope (European Brand Institute, September 2007). • World's number one supply chain (AMR Research, 2007) Nokia organization • Devices is responsible for developing the best device portfolio for the marketplace, including sourcing of components • Services & Software reflects our strategic emphasis on developing and growing our offering of consumer. Institute Of Business Studies & Research Pune (Satish P.Goyal) Page 33

Internet services and enterprise solutions and software. • Markets is responsible for management of our supply chains, sales channels, and brand & marketing activities. • The Corporate Development Office focuses on our strategy and future growth, and provides operational support for integration across all the units. On April 1, 2007, Nokia’s Networks business group was combined with Siemens’ carrier-related operations for fixed and mobile networks to form Nokia Siemens Networks, jointly owned by Nokia and Siemens and consolidated by Nokia.

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okia Q1 2008 net sales of EUR 12.7 billion, reported EPS of EUR 0.32 (EUR 0.38 excl special items) Profitability strong for the quarter – operating profit up 39% year on year, excluding special items OKIA I THE FIRST QUARTER 2008* EUR million et sales Devices & Services Nokia Siemens Networks Operating profit Devices & Services Nokia Siemens Networks*** Group Common Functions -278 -58 -74 78 3 401 1 697 Q1/2008* 12 660 Q1/2007** 9 856 Change 28%

9 263

8 163

13%

1 531

1 272

20%

1 883

1 252

50%

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OKIA I THE FIRST QUARTER 2008* EUR million Operating margin (%) Devices & Services (%) Nokia Siemens Networks (%)*** et profit EPS, EUR Diluted*** 0.32 0.25 28% 1 222 979 25% -2.2 4.6 Q1/2008* Q1/2007** Change

12.1

12.9

20.3

15.3

*As of April 1, 2007, Nokia results include those of Nokia Siemens Networks on a fully consolidated basis. Nokia Siemens Networks, a company jointly owned by Nokia and Siemens, is comprised of the former Nokia Networks and Siemens' carrier-related operations for fixed and mobile networks. Accordingly, the results of Nokia Group and Nokia Siemens Networks for the first quarter 2008 are not directly comparable to results for the first quarter 2007. Nokia's first quarter 2007 included the former Nokia Networks business group only. As of January 1, 2008, our three mobile device business groups, Mobile Phones, Multimedia and Enterprise Solutions, and the supporting horizontal groups were replaced by an integrated business segment, Devices & Services. Prior period

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results for Nokia and its reportable segments have been regrouped for comparability purposes according to the new reportable segments (on an unaudited basis).

*Q1 2008 special items: - EUR 217 million loss due to transfer of Finnish pension liabilities (impacting Common Group Functions) - EUR 81 million facilities impairment and other charges related to closure of the Bochum site in Germany (impacting Devices & Services operating profit) - EUR 65 million gain due to transfer of Finnish pension liabilities (impacting Nokia Siemens Networks operating profit) - EUR 100 million restructuring charge (impacting Nokia Siemens Networks operating profit) - Excluding the net impact of these special items, diluted EPS was EUR 0.38

. .

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okia’s future
As mobile usage grows in the world’s emerging markets, Nokia will continue to develop affordable mobile devices that can contribute to increased economic growth and quality of life. At the same time, mobile communications is converging with computing, digital imaging and the internet, making it possible for people to use handheld devices for filming video, listening to music, playing games, surfing the web and more. Nokia is shaping this converging industry, pushing it forward with cutting-edge products and the development of open standards. Nokia’s success story is built on constant innovation. Our very human technology is all about enhancing communication and exploring new ways to exchange information. That’s why Nokia will never stop finding new ways of connecting people.

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Segmentation Strategy

okia Market Demographic
The profile for Nokia customer consists of the following geographic and Demographic:

Geographic
· Our immediate geographic target is rural India. · The total targeted population is estimated at 100 million

Demographic
· Male and female. • Ages 25-50, this is the segment that makes up 80% of the Nokia mobile phone market according to the NOKIA India Ltd. • Professionals and College students.

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PRODUCTIO U ITS JU E 2008 etworks Technology

• China • Finland • India
Mobile Devices and Enhancements

• Brazil • China • Finland • Germany • Great Britain • Hungary • India • Mexico • Romania • South Korea

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Research cooperation with universities
Helsinki University of Technology, Finland Massachusetts Institute of Technology, United States Stanford University, United States Tampere University of Technology, Finland University of Cambridge, United Kingdom University of Glasgow, United Kingdom

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Top Competitors
Philips Electronics Panasonic Motorola Siemens Sony Corporation Sony Ericsson Samsung

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Worldwide market shares of the companies

40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% NOKIA Motorola Samsung Siemens Sony Erisson

okiaMotorola SamsungSiemens-

39.2% 15.3% 9.8% 8.5%

Sony-Ericsson - 5.2%

Market shares of companies in India
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70% 60% 50% 40% 30% 20% 10% 0% Nokia Samsung Motarola Sony Erisson Others

• NOKIA – • Samsung— • Motorola—

67% 12% 6%

• Sony Erisson-- -8% • Others--7%

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CHAPTER -4

RESEARCH METHODOLOGY

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70% 60% 50% 40% 30% 20% 10% 0% Yes No 68% 32%

1.Do you use mobile Yes 68% No 32%

Interpretation - Above graph shows that 68% population of India use mobile nowadays and there is still 32% people don’t use mobile. So according to this there is huge potential in the market for the company and company can capture more market by offering some free items on products.

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2.Which company you prefer

70% 60% 50% 40% 30% 20% 10% 0% Nokia Samsung Sony Erisson Motorola L.G Others

Nokia Samsung -

67% 12%

Sony Ericsson - 8% MotarolaL.G Others 7% 3% 3%

Interpretation – This graph shows that out of hundred 67% consumers use Nokia mobile , and the rest companies are too behind than Nokia . So Nokia company is ruling the Indian mobile market.

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3. Any specific reason

Bluetooth FM – MP3/MP4 Camera -

68% 75% 55% 60%

Expandable memory -45%

Interpretation- Most of the consumer using Nokia mobile for the quality of FM, Camera and the Bluetooth which is available in Nokia handsets in just Rs 3100 only . No other company provide all three features in this amount.

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4.Which feature you want in new mobile

GPRS – Navigator EDGE -

68% 45% 20%

Tri band/ Quad band - 5% Any other 13%

Interpretation – According to this most of the consumers wants GPRS in their new handset and Navigator feature also. Very few asked for the EDGE and others features.
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5.Budget for purchasing

1000-3000 3000-6000 6000-10000 10000-14000 -

75% 55% 38% 15%

More than 14000 -9% Interpretation-Large number of population of India comes under middle class. Most of the customer spends between Rs 1000-3000. Some customer also more than Rs 5000 more features.

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CHAPTER -4

CONCLUSION

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I FERE CES
The way corporations interact with their customers has changed drastically in the past few years. The era of mass marketing and mass communications is over. Customers have been increasingly taking up widespread social media tools on the web and turned into the message creators, driving the conversations around the products and services they use.

Therefore, corporations must join customers in these conversations. We need to be able to speak openly, honestly, and in a personal tone. We need to listen carefully without being defensive. We need to respect those who speak to us and about us because of this only we come to know where we are lacking , what we have to do to beat our competitors

We need to understand that we no longer control the conversation but are a part of it.

For a few years now, Nokia have been participating in the conversation with customers through various efforts, ranging from blogs by people who work on S60, outreach to Nseries aficionados, support discussion boards, and a site to download and discuss early state software from Nokia. This helps Nokia to know why the market share of the company in India slip down and according to this only we can indentify the problem .

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Nokia’s most recent addition has been Nokia Conversations, a site dedicated to the stories in and around the Nokia neighborhood. It’s not about the tech and specs, but about the people, products, and ideas behind the news. Nokia Conversations highlights the best and most important conversations about and around Nokia, whether it comes from inside Nokia or outside. Our articles also add a mix of various elements, such as videos and photos.

This is the way Nokia trying to put all the information on net , so that consumers can refers to those sites before purchasing the products.

]

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OBSERVATIO

& FI DI G

According to my observation Nokia ascendancy to leadership in Indian market has been swift and systematic , with the result that millions of people in thousands of towns and villages today use Nokia mobiles- the world’s fastest growing market for wireless

handsets. This success has seen the company ‘s market share rise to more than 67% currently from 46% in March 2003

Nokia concentrated on India’s largely untapped rural market as well as the lower –end urban market whose consumers eventually upgrade their phones.

Nokia penetrate the market’s wide range of customers preferences , incomes disparities, regional differences and language requirements.

Nokia’s one winning result ; the creation of a global best –seller , the low cost and hardy Nokia 1110 that came with alarm clock, calculator, and torch.

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SWOT A ALYSIS

Nokia was the first to acknowledge fashion as an important element in mobile phone purchases, and it is solidly behind the push for Multimedia Messaging Service, which could become the first data service beyond Short Message Service to be deemed successful. There is a significant gap between Nokia and startups, which makes it difficult to compete against Nokia. Nokia's tie to operators has kept its products solidly in consumers' view. Yet, Nokia faces some serious challenges. The mobile landscape has fundamentally shifted, and some of Nokia's strengths and core beliefs may no longer be valid. In the following research, we discuss Nokia's strengths and challenges and provide advice for enterprises partnering with, purchasing from and working with Nokia.

Strength
· Nokia has long established identity (1898); lots of available resources (financial, etc.) · Nokia has high penetration rate in Europe, especially in Northern countries (close to 100%) · Nokia Consumer Electronics has access to innovative technology through group companies

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Weakness
· Lack of centralized marketing strategy and champion; completely different positioning strategy depending on the country · Too many brand names (100) in one market; problem trying to find balance · Corporate culture is highly technical and operational: So what if the customer does not understand! Lack of customer service priority

Opportunities
· Potential for brand name sales in Europe and Asia-pacific · Growing replacement and supplement television market · NCE has opportunity of using its technology to enhance user-friendliness

Threats
· The market for color TVs and VCRs is a mature/saturated market; consumers are buying less often and only to replace older units (same trend for all countries across Europe) · Can’t differentiate based on technical advancement or price; competitors too fast to match · Impact of recent purchases (for example, Sony) and mergers is unknown; competitors are getting larger and integrating supply chains Competitive advantage is gained through brand name (not technology or price) · According to brand awareness studies, Nokia is recognized most of the time (in Germany, France, Italy, UK and Norway), but not necessarily affiliated with consumer electronics such as TVs and VCRs · Consumers buy televisions based on emotion . Institute Of Business Studies & Research Pune (Satish P.Goyal) Page 56

· Consumers perceive value in features that are marketed as user-friendly. In the past Nokia has relied heavily on its ability to innovate—it is a strong technology company.

Internal Management Challenge faces at least two challenges within NCE that he must address immediately: 1. Lack of a marketing champion in corporate headquarters 2. A continued reliance on technology as the main marketing approach. For example, the remote control TV mouse is centered on technology and may frighten away potential customers who may perceive it as too technical.

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RECOMMA DATIO S

CUSTOMERS RELATED:
NOKIA products are used all over in India by the people of the every region. But now days the people want more values for their money worth, it means a better designed product with quality and they are most willing to buy the product frequently. The positive suggestions are as follows:-

As the others companies like Samsung . Motorola and others offers products in good packing, so the product packaging must be made attractive so that the young generation willing to accept it.

The product line must be extended so that all the generation levels must be able to use it as per their taste.

Customers wants some fancy type or good looking mobiles.

The main thing is the availability of the products at retail outlets.

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The product packaging must be changed time to time.

The media marketing must be done highly and a good relationships should be made with the customers by giving frequents offers and arranging various competitions.

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RETAILERS RELATED:

There must be regular supply of the products at least 2-3 days a week.

The new outlets must be grabbed through providing some fruitful offers.

The some untouched Parts of the area must be covered.

Some credit facilities must be provided to the retailers.

There should be discount given to the retailers on huge bulk purchasing to motivate him.

The advertisement must be done through Hoardings, Posters, Banners, Radio Mirchi, FM radio channels .

There should be a meeting every month for to solve distributors and retailers problems.

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BIBLIOGRAPHY
Books
Marketing Management by Philip Kotler

Websites
www.nokia.com www.google.com

ews Paper
The Economics Times

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ANNEXTURE

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QUESTIO
ame:…………………………………….. Sex

AIRE
Date……………………………

Contact no……………………… Male Female 1.Occupation Student Service ( ( ) ) ( ( ) )

Self employed Others 2. Do you have mobile Yes o

( (

) )

( (

) )

3.Which company you prefer

okia Samsung Sony ericsson Motorola L.G Others

( ( ( ( ( (

) ) ) ) ) ) Page 63

Institute Of Business Studies & Research Pune (Satish P.Goyal)

4. Any specific reason Bluetooth F M ( ( ) )

MP3/MP4 Exapandable memory Camere

( ( (

) ) )

5.What features you are looking for

GPRS EDGE Tri band/ Quad band avigator Any Others

( ( ( ( (

) ) ) ) )

6. Budget for purchasing

1000-3000 3000-6000 6000-10000 10000-14000 More than 14000

( ( ( ( (

) ) ) ) )

Place: Institute Of Business Studies & Research Pune (Satish P.Goyal)

Signature Page 64

THA K YOU

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