NOKIA LUMIA

Interim Project Report

SUBMITTED BY:
Abhijeet Kumar
Anilkumar Sharma
Ashwini N
Dishank Doshi
Bharatkumar Subnis

SDMIMD, Mysore
PGDM 2014-16

HISTORY OF INDIAN TELECOMMUNICATION:

The Indian telecommunication sector is one of the oldest in the world.
The first telephone exchanges were opened at Calcutta, Bombay, Madras and
Ahmedabad by Oriental Telephone Company of England in 1881. Till 1948, most
of the major towns and cities were linked through telephone. In this period,
telephone was considered more as a status symbol rather than instrument of
utility.

Growth of Telephone in India

5070000

2150000
980000
80000
1948

1971

1981

1991

The idea of liberalization of telecommunication started in 1981 when

state owned telecom company ITI was slated to merge with Alcatel of France.
But, it did not materialize. GOI then set up C-DOT, Centre for Development of
Telematics under Sam Pitroda. C-DOT was the first company to manufacture
electronic telephone exchanges. In 1986, Department of Telecommunication
(DoT) ministry was split into Mahanagar Telephone Nigam Ltd (MTNL) and Videsh
Sanchar Nigam Ltd (VSNL) to run telecom services of Mumbai and Delhi.
As a part of Liberalization policy in 1991, National Telecom policy was
introduced which brought about change in ownership, service and regulation of
telecommunication infrastructure.
Telecommunication for all was the motto.
In 1997, Telecom Regulatory Authority of India (TRAI) was setup which reduced
the interference of Govt. in deciding the tariffs and developing the policies
regarding telecom.

MOBILE TELEPHONY:
With subscriber base of 929 million, the Indian mobile telecommunication
industry is second largest in the World. 80% of the market is dominated by GSM
(Global Systems for Mobile communications) technology and remaining by CDMA
(Code Division Multiple Access) technology. The industry has registered
exceptional growth in past few years. The main players are the market share in
service providers are,
2

Courtesy : www.telecomlead.com

India Marketshare
Lumia 920; 4%

Others; 6%

Lumia 520; 31%

Lumia 820; 6%

Lumai 800; 5%

Lumia 510; 6%

Lumia 610; 7%
Lumia 620; 13%

Lumia 710; 9%
Lumia 720; 12%

INTRODUCTION TO NOKIA AND Nokia LUMIA

Nokia is a leader in the fields of network infrastructure, location-based
technologies and advanced technologies. Headquartered in Espoo, Finland, and
with operations around the world, Nokia invests in the technologies of the future.
Today, we have three strong businesses: Nokia Networks, our network
infrastructure business; HERE, our location intelligence business; and
Nokia Technologies, which is focused on technology development and intellectual
property rights activities. Through these businesses, we have a global presence,
employing around 55,000 people. We are also a major investor in R&D, with
investment through the three businesses amounting to more than EUR 2.5 billion
in 2013.
Until recently, Nokia also was a key participant in the mobile devices market
through its Devices & Services business. In September 2013, Nokia announced
an agreement with Microsoft whereby it would sell substantially all of its Devices
& Services business to Microsoft. The transaction was completed on April 25,
2014.

Industrial
conglomerate
Finnish Rubber
Works
Finnish Cable
Works
Nokian Tyres
Nokian
Footwears

Networking
equipment

First mobile
phones

Digital switch
Nokia Telecom
Message Device
System
Check Point
Software

Mobira Talkman
Mobira Cityman
GeoSentric

Personal
computers and
IT equipment
MikroMikko
CRT
TFT LCD
DSL Modems
Set Top Boxes
Nokia Booklet 3G

Various Divisions of Nokia

Nokia Lumia
Nokia Lumia is a line of smartphones and tablet computers designed and
marketed by Microsoft Mobile and previously by Nokia. Introduced in November
2011, the line was the result of a long-term partnership between Nokia and
Microsoftas such, all Lumia smartphones run the Windows Phone operating
system, aiming to compete against the iPhone, Android-based devices, and
BlackBerry devices. The Lumia name is derived from the portative plural form of
the word 'lumi', which means 'snow' in the Finnish language.

On 3 September 2013, Microsoft announced its purchase of Nokia's mobile

device business, with the deal closing on 25 April 2014. As a result, the Lumia
line is now maintained by Microsoft Mobile. The "Nokia" brand name will continue
to be used under Microsoft ownership. In October 2013, Nokia extended the
Lumia brand into tablets with the unveiling of a Windows RT tablet under the
brand.

Window Phone share - india

Lumia 920; 4%
Lumai 800; 5%

Others; 6%
Lumia 520; 31%

Lumia 820; 6%
Lumia 510; 6%

Lumia 610; 7%

Lumia 620; 13%

Lumia 710; 9%
Lumia 720; 12%

SEGMENTATION STRATEGY:
Market segmentation strategy involves dividing the market into subsets
of consumers who have similar needs and demands. These subset markets are
targeted by implementing promotional strategies that best connects the
consumers.
Criteria for segmentation:

An ideal market segment should meet all the following criteria,

Quantify
Must be large enough to earn profits
Must be reachable to consumers through companys distribution channel.
Cost effectiveness

Nokia offers products that are unique in design, features and functionality
that caters the demand of the market. Ex: Nokia Ngage ( for gamers). Nokia also
have the products for people who like distinctiveness and ready to pay the price
for it.

Demographic segmentation:
5

Low Income consumers: Low income group consumers purchasing power for
mobile phones lies between 0 and 2,000. The consumers predominantly consists
of unskilled workers, domestic help etc. These people use mobile phone only for
talk. Nokia targets such consumers with low cost mobile phones like Nokia 105,
Nokia 107 etc.
Lower - Middle Income consumers: Lower- middle income group consumers
consists of people with purchasing power for mobile phones greater than 2,000
and less than 10,000. For this segment, Nokia has mobile phones like Nokia
Lumia 520, Lumia 525, and Lumia 630 etc.
Middle Income consumers: Nokia Lumia 620, Lumia 1320 are the products
that Nokia is presenting to this segment. Here the price range of the mobile
phones is between 10,000 and 20,000.
High income (premium): Nokia Lumia 925, Lumia 1020 etc. are the products in
this segment. Here the price range of the mobile phones lies between 20,000
and 40,000.
Occupation: Nokia brings out the products by segmenting the consumers based
on their occupation.
The consumers with occupations like housemaid, Hawker, Drivers etc. need the
phones only for talk. For this segment of consumers, Nokia brings out phones
that are affordable by them. Some of such products are Nokia 105, Nokia 107
etc. Nokia Lumia does not target such consumers.
Lumia targets students who are willing to pay certain amount for mobile phones.
It has come up with some models like Lumia 520, 630 etc. The design and
ergonomics of the phones in this category are appealing to the students.
Lumia 920, 1020 are the mobiles that are targeted for premium consumers.
These models support wide variety of business applications which could be used
for business. There phones are fast, have more memory and other features.

Psychographic segmentation:
Depending on the lifestyle of the consumers, Nokia can target the following
consumers,
Achievers People who have zeal for design and style, who are regular follower
of trends and fashion and have active and changing lifestyle - Nokia Lumia 1020
Strivers These group of people prefers simpler and elegant design and want to
be connected in seamless and best possible way, for which Nokia provided Nokia
Maps which provides functional offline maps and GPS navigation features in Nokia Drive for
Lumia 900 and in the Lumia 920

Survivors Smart and knowledgeable peoples working and business class

people who wants smartest tool for balancing work and life and be on par with all
the changing technologies.
Nokia Lumia provides doesnt provide any phones for this segment.
Customers who like to explore: People who want cutting edge technology for
their stylish life styles Nokia Lumia 520 with 8GB chip with multimedia
devices that snap, record, browse and share contents via Internet
6

Behavioural segmentation:
Occasions- Nokia has announced to provide the best kind of exchange offer to its
customers in India during festivals.
Devices like Lumia 925, Lumia 625, Lumia 620 and Lumia 520 are being offered
in discounts on exchange your old smartphone.
Benefits - Nokia launched many phones for benefit seekers who like to have good
quality in reasonable price, like Microsoft Office, good quality camera, memory,
display, design and high security which is big concern for advanced users.
User status Nokia has worked to woe Non users to users by providing Lumia
phones in multiple colours targeting people to relate their personality with the
colour .

Positioning Statement:
Nokia has prepared a perceptual positioning map which shows consumer
perception towards their brand with respect to the other brands competing on
the same segment on various important buying dimensions
it says about how Nokia as a brand concept serves target segment and their
needs with their unique innovative product.
Nokias positioning statement is CONNECTING PEOPLE
Nokia targeted masses through celebrity endorsed campaigns like Your wish is
my app. Along with various advertisements like - A Speed Challenge on the Nokia
Lumia 520 and Map application advertisement endorsed by Shahrukh Khan.

Marketing Mix of Nokia Lumia:

Product:
Lumia series of mobile phones are the first Windows OS phones launched
in the market. Nokia has launched several models under Lumia series. The
product physical design is kept same with slight variations in screen size. All are
capacitive touch screen and Li-ion battery. Nokia is always known for its quality
of devices and a long battery life. The Lumia phones offer technologically
advanced cameras with superior image quality. They also offer many other
applications like maps etc.
Price:
Lumia series phones are priced competitively vis--vis the competitors.
The phones cater to all the social classes. The prices of these smartphones
varies between 7,000 INR and 40,000 INR. The price range is highly variable
which helps for consumers to choose from wide range.
7

Promotion:
Lumia series are advertised in Televisions, Newspapers. They make use of
Digital marketing, like display of products in Web advertisements, Mobile
advertisements etc. They are use billboards for better visibility.
Place:
Lumia series are sold in Nokia priority dealer stores. They also are visible
in multi-brand mobile retail stores. Online stores like Flipkart, Amazon, e-bay etc.
And also they are available in most of the retail outlets.