Project Report Consumer Purchasing Behavior and Brand Promotion

Institute Of Business Studies & Research Pune (Satish P.
Goyal) Page 1

PROJECT REPORT

O

COSUMER PURCHASIG BEHAVIOR
AD BRAD PROMOTIO

BY
Satish Prakash Goyal

MBA
2007-2009
TILAK MAHARASHTRA UIVERSITY
PUE

Institute Of Business Studies & Research Pune (Satish P.Goyal) Page 2

CERTIFICATE
This is to certify that Satish Prakash Goyal student of INSTITUTE OF BUSIESS
STUDIES AD RESEARCH completed his field work report at okia India Pvt Ltd on
the topic of CONSUMER PURCHASIG BEHAVIOR AD BRAD 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:-


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


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 insights that have made my learning experience very
fruitful.


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 okia India Pvt Ltd. The main points on which I laid stress
were:-

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.


TABLE OF COTETS
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

12-14
3. Chapter III
Executive Summary
Profile of the Company
Main Business & Procedures
Analysis with Graphical Representation

16
17-28
28-44
45-50
4. Chapter IV
Conclusion
Inferences
Observations & findings
SWOT Analysis of company
Recommendations for applications

52-53
54
55-57
58-60
5. Chapter V
Bibliography
Questionnaire

61
63-64


CHAPTER 1
INTRODUCTION


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.


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.


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


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.


CHAPTER -2
REVIEW OF LITERATURE


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.


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.


CHAPTER -3
COMPAY PROFILE


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 consumers 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 Nokias 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 Nokias 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.


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.


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 20
th
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!


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 wire-
free 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.


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


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 Ojanper
Executive Vice President, Entertainment & Communities

iklas Savander
Executive Vice President, Services and Software

Richard A. Simonson
Executive Vice President, Chief Financial Officer

Veli Sundbck
Executive Vice President, Corporate Relations and Responsibility

Anssi Vanjoki
Executive Vice President, Markets

Dr. Kai istm
Executive Vice President, Devices


Nokia Corporation

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


Operating
income
7.985 bn (2007)
et income 7.205 bn (2007)
Total assets 37.599 bn (2007)
Total equity 17.338 bn (2007)
Employees 116,378 as of March 31, 2008
[2]

Subsidiaries
Nokia Siemens Networks
Vertu
Navteq (pending merger)


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.


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.
Nokias 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.


VISIO
Our customers continue to our First Priority
Nokias 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.


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 dont. 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 dont
At Nokia, customers remain our top priority. Customer focus and consumer understanding
must always drive our day-to-day business behavior. Nokias 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.


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, Nokias 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.


QUALITY:
Quality is at the heart of Nokias 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 industrys 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.


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


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 10009000 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)


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


2007 facts and figures:

Head office in Finland; R&D, production, sales, marketing activities around the world
Worlds #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
Worlds 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.


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, Nokias 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.


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 Q1/2008* Q1/2007** Change
et sales 12 660 9 856 28%
Devices &
Services
9 263 8 163 13%
Nokia
Siemens
Networks
3 401 1 697
Operating
profit
1 531 1 272 20%
Devices &
Services
1 883 1 252 50%
Nokia
Siemens
Networks***
-74 78
Group
Common
Functions
-278 -58


OKIA I THE FIRST QUARTER 2008*
EUR million Q1/2008* Q1/2007** Change
Operating
margin (%)
12.1 12.9
Devices &
Services (%)
20.3 15.3
Nokia
Siemens
Networks
(%)***
-2.2 4.6
et profit 1 222 979 25%
EPS, EUR
Diluted*** 0.32 0.25 28%

*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


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

. .


okias future
As mobile usage grows in the worlds 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.
Nokias success story is built on constant innovation. Our very human technology
is all about enhancing communication and exploring new ways to exchange
information. Thats why Nokia will never stop finding new ways of connecting
people.


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.


PRODUCTIO
UITS
JUE 2008
etworks
Technology
China
Finland
India
Mobile Devices and Enhancements
Brazil
China
Finland
Germany
Great Britain
Hungary
India
Mexico
Romania
South Korea


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


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


Worldwide market shares of the companies

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

okia- 39.2%
Motorola - 15.3%
Samsung- 9.8%
Siemens- 8.5%
Sony-Ericsson - 5.2%

Market shares of companies in India


0%
10%
20%
30%
40%
50%
60%
70%
Nokia
Samsung
Motarola
Sony Erisson
Others

NOKIA 67%
Samsung 12%
Motorola 6%
Sony Erisson-- -8%
Others--- 7%


CHAPTER -4
RESEARCH METHODOLOGY


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


2.Which company you prefer
0%
10%
20%
30%
40%
50%
60%
70%
Nokia
Samsung
Sony Erisson
Motorola
L.G
Others

Nokia - 67%
Samsung - 12%
Sony Ericsson - 8%
Motarola- 7%
L.G - 3%
Others - 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.


3. Any specific reason

Bluetooth - 68%
FM 75%
MP3/MP4 - 55%
Camera - 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.


4.Which feature you want in new mobile

GPRS 68%
Navigator - 45%
EDGE - 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.


5.Budget for purchasing

1000-3000 - 75%
3000-6000 - 55%
6000-10000 - 38%
10000-14000 - 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.


CHAPTER -4
CONCLUSION


IFERECES
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 .


Nokias most recent addition has been Nokia Conversations, a site dedicated to
the stories in and around the Nokia neighborhood. Its 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.

]


OBSERVATIO & FIDIG

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 worlds 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 Indias largely untapped rural market as well as the lower end
urban market whose consumers eventually upgrade their phones.

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

Nokias 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.


SWOT AALYSIS

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


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)
Cant 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 .


Consumers perceive value in features that are marketed as user-friendly. In the past Nokia
has relied heavily on its ability to innovateit 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.


RECOMMADATIOS

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.


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.


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.


BIBLIOGRAPHY
Books
Marketing Management by Philip Kotler
Websites
www.nokia.com
www.google.com
ews Paper
The Economics Times


ANNEXTURE


QUESTIOAIRE

ame:.. Date

Sex
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 ( )


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: Signature


THAK YOU

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