“A project report on

marketing plan of NOKIA”

Submitted to:- Submitted by:-

Dr. Anurupa B Singh ABHISHEK PATHAK
(FT-09-705)

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 ACKNOWLEDGEMENT

I would like to express my heartfelt feelings and convey immense thanks to all
those who gave me there moral support and shared their insights with me while I
was preparing this project.

First and foremost, I am highly thankful and indebted to my faculty Dr. Anurupa
Singh IILM GSM who has always been there to encourage and help us
whenever i needed her help. I owe special thanks to her for providing
unending support & co-operation.

Last but not least, I will ever remain grateful and indebted to my parents, my
teachers & friends who have always been the source of unending inspiration,
encouragement & guidance in pursuit of excellence & learning process throughout
my life.

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 Table of Content

Topic Page No

Executive Summary

Company Profile

Situation Analysis

Segmentation

Nokia Strategies

Distributors

Conclusion

Implementation and control

Contingency plans

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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 every 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.

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 Company Profile

2.1 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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2.1.1

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.

2.1.2

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.

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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.

2.1.3

1980-2001

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.

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2.1.4

2001 and into the Future

Nokia is harnessing its experience in mobility and networks to generate a startling

vision of the future. Meeting rooms, offices and homes will be 'smart' enough to
recognize their human visitors and give them whatever they want by listening to
their requests. Nokia welcomes change and improvement and can embrace new
ideas at great speed. Such characteristics will never change but, as to the rest,
the story has only just begun!

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2.2
Mission and Vision:
2.2.1
Vision

“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.

2.2.2
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.

2.2.3
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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In line with these priorities, Nokia‟s business portfolio strategy focuses on five
areas, with each having long-term objectives:
- Create winning devices
- Embrace consumer Internet service
- Deliver enterprise solutions
- Build scale in networks
- Expand professional services
There are three strategic assets that Nokia will invest in and prioritize:
- Brand and design
- Customer engagement and fulfillment
- Technology and architecture

2.2.4
Organization

Nokia comprises four business groups: Mobile Phones, Multimedia, Enterprise

Solutions and Networks.
Mobile Phones connects people by providing expanding mobile voice and data
capabilities across a wide range of mobile devices. We seek to put consumers first
in our product-creation process and primarily target high-volume category sales.
Multimedia brings connected mobile multimedia experiences to consumers in the
form of advanced mobile devices and applications. Our products give people the
ability to create, access and consume multimedia, as well as share their
experiences with others through a range of radio technologies.

Revenue by four business groups

Enterprise Solutions offers businesses and institutions a broad range of products

and solutions, including enterprise-grade mobile devices, underlying security
infrastructure, software and services. We also collaborate with other companies to
provide fixed IP network security, mobilize corporate email, and extend corporate
telephone systems to Nokia‟s mobile devices.
Networks provides network infrastructure, communications and networks service
platforms, as well as professional services to operators and service providers.
Networks focuses on the GSM family of radio technologies and aims at leadership
in three areas: GSM, EDGE and 3G/WCDMA networks; core networks with
increasing IP and multi access capabilities; and services. Our business groups are
supported by various horizontal entities:

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Customer and Market Operations is responsible for marketing, sales, sourcing,
manufacturing and logistics for mobile devices from Mobile Phones, Multimedia and
Enterprise Solutions.
Technology Platforms is responsible for the competitiveness of Nokia‟s technology
assets. The group supports Nokia‟s overall technology management and development
by delivering leading technologies and well-defined platforms both to Nokia‟s
business groups and to external customers.
Nokia-wide horizontal units drive and manage specific Nokia assets. They include
brand and design, developer support, research and venturing, and business
infrastructure.
Corporate Functions support Nokia's businesses with company-wide strategies and
services.

2.3
Mobile Phone Market In India

NOKIA‟s hegemony in the GSM handset segment has increased during last one
year. NOKIA‟s market share (in terms of unit sold) has grown to 74% in March 09
from 61.5% in October 08. In the colour segment too, Nokia has increased its
market share to 55% in march 06 from 33.7% in march 05.In terms of value,
Nokia‟s overall market share has jumped to 70.5 % in march 06 from 57.7% in
October 05. In the colour phone category, its market share (in terms of value) has
increased to 59.3% in march 06 from 40.9% in October 05, according to ORG GFK
estimates.

Fig.2.2

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NOKIA’s performance over a year

Once NOKIA‟s closest rival, Samsung has been losing its market share since
October‟05 when it had an overall market share (in terms of units) of 1.2, to 7.8%
I March‟06. The drop is much steeper in value terms where its market share has
fallen to 9.8% in March‟06 from 21.2% in October‟05.
Sony Ericsson‟s market share (in terms of units) has improved marginally from 7.1%
October‟05 to 7.6% in March‟06, although in value terms it has increased from
8.7% in October‟05 t 10.2% in March‟06. The colour segment, where Samsung used
to rue once, has seen its market share falling both in terms of units and value. The
market share (units) has dropped to 16.3% in March‟06 from 34.9% in October‟05
ad in terms of value, has dropped to 14% in March‟06 from 32.5% in October‟05.
Sony Ericsson‟s market share in the colour segment is marginally more than the
Samsung‟s at 16.7% (unit) and 15.9% (value) in March‟06 and is an improvement over
its October‟4 figures of 15.6% (units) and 14% (value). The total handset units sold
in the top 10 towns in the month of March is 5,06,493 units, from 4,68,621 units
inOctober‟05. The total value of the handset s sold is Rs.245.6 crore as of
March‟06 from Rs.236.1 crore in October‟06. The number of colour phones jumped
to 2,11,779 units in March‟06 from 1,66,210 units in October‟05. The value of the
colour phone market increased to Rs.15,208 lakhs in March‟06 from Rs13,023 lakhs
in October‟05.

3. Situation Analysis:

3.1 Social Analysis

For electronics companies, take back and recycling add value. They support brand
value and customer loyalty and inspire customer insights. They also demonstrate
environmental responsibility. Manufacturers like Nokia are generally in a
disadvantaged position for take back, due to the costs involved and the lack of
many consumer touch points.
Stakeholders in the take back and recycling process include governments,
retailers, customers, consumers and products. Other stakeholders include
recyclers, refurbishes and NGOs.

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The responsibility for bringing used devices back for recycling lies ultimately with
the consumers. The challenge for Nokia in take back programs is how to make
mobile phone users do their share and return the used products for recycling. By
bringing the used mobile to a take back point the customers make sure that used
phones will not end up in landfills in their own or other countries. Instead, the
recyclable raw materials can be used again in new products.
In a typical consumer scenario, such as when a mobile phone user is renewing a
service contract with a mobile phone provider, in the US and Europe an estimated
60% to 70% retain their old devices because of their perceived value.
Successful take back is also driven to a great extent by economics and market
factors, which in turn place large quantities of used devices in refurbishment
scenarios. This causes concern for the quality and safety of products repaired or
altered outside of the intense controls fundamental to a Nokia production process.
The optimum outcome from Nokia's environmental efforts in the product lifecycle
is to minimize adverse effects to the environment, to our customers and consumers
and to our business. As the Nokia lifecycle philosophy applies to take back, the
power to manage take back and direct the disposal of a mobile device at the end of
its life is largely controlled by: customers, consumers, retailers, and by
governments. There are various take back channels and Nokia has limited control
over the actual flows. Despite the challenges posed by the logistics of recovery,
Nokia has for years had programs in place and continues to move ahead with new
programs to recover mobile devices at the end of their useful lives.
These include take back:
* Via our authorized service centers and flagship stores
* Through our web site, only limited in certain countries
* As part of eBay Rethink, only in the US
Nokia is also piloting different forms of cooperation with operators and
distributors, such as installing collection bins at point of sales and mail service
return, as well as in various industry level schemes and in public awareness building
campaigns.

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3.2
Environmental Analysis

NOKIA aims to be a leading company in environmental performance. By working to

reduce the adverse environmental impacts of our products and activities, our
customers can use our products with confidence and good conscience. Combining
environmental issues into daily work makes business sense for Nokia. By working to
reduce the adverse environmental impacts of our products and activities, we
minimize risk, ensure legal compliance, gain stakeholder acceptance, and help
advance the long-term success of our company.
Our customers can also use our products with confidence and good conscience.
Through our environmental strategy, we work to ensure that our products are safe
for personal use and that they do not overly tax the environment. Nokia is a
trusted brand and we take that trust seriously.

3.2.1
Nokia environmental strategy

Nokia is a leading company in environmental performance. Nokia‟s environmental

strategy is based on lifecycle thinking, beginning with the extraction of raw
materials and ending with recycling and disposal of as well as the reintroduction of
recovered materials into the economic system. Our goal is to develop advanced
mobile technology, products and services, which have no undue environmental
impact, consume energy efficiently, and that can be appropriately reused, recycled
or disposed of. Nokia's environmental strategy is integrated with our business
strategy. Our four business groups have set environmental targets for their own
activities to implement our corporate level environmental strategy.
3.2.2 Main Issues In Focus

Three important global issues remain at the forefront of much of Nokia‟s

environmental work. They are substance management, arrangements for the take
back and recycling of end-of-life products, and energy efficiency.
* Substance management
During the planning and design of our products, one of our main focus areas is their
material content. We are continuously analyzing the materials used in our products
with the aim of reducing the amount of potentially hazardous or harmful content.

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* Take back and recycling
In take back and recycling, we have for years had in place our own arrangements
for mobile devices and accessories, as well as for mobile network and IP network
security equipment. All Nokia products are also covered by the European Union's
new Waste Electrical and Electronic Equipment (WEEE) directive. Nokia is
assuming product responsibility as defined by the directive as it is implemented
throughout Europe. In addition, take back of Nokia mobile devices will also continue
at authorized Nokia Service Centers and Flagship stores in all markets where we
do business.
* Energy efficiency
In our product creation as well as our own operational activities, an important area
for continuous performance improvement is in energy efficiency. We have
consistently been able to reduce the energy intensity of our products.

3.2.3
Supply Chain

We are committed to reducing the environmental impact of our business. We

expect all Nokia suppliers and their suppliers to take a similar approach. At Nokia,
we believe in long-term partnerships with suppliers who share our approach to
ethical business. Together we work hard to anticipate risk, demonstrate company
values, enhance our governance practices, increase employee satisfaction and look
after the communities where we do business.

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3.3
SWOT Analysis

Nokia is at an important crossroads in its history. Having architected many of the

key tenets for growth during the formative years of the mobile phone industry,
the market with which Nokia is so familiar may be adopting different rules, ones
that it may not fully understand. The situation Nokia faces may be similar to the
period in the PC industry when Dell Computer surpassed perennial leaders IBM,
Hewlett-Packard and Compaq Computer. Why might this happen? Because Nokia's
strengths are so well-understood by its competitors, they are well-targeted and
improved upon. The wireless market's evolution has slowed, making it easier to
challenge the incumbents. Also, the progress of technology has made many of
Nokia's early advantages easier to overcome. Nokia's leadership position is a result
of paying persistent attention to market needs and taking the right chances at the
right time. 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.

Fig.3.1.
SWOT Analysis
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.

Strengths: -
Nokia has largest network of distribution and selling as compared to other mobile
phone company in the world. It is backed with the high quality and professional
team in the HRD Dept. The financial aspect is very strong in case of Nokia as it
has many more profitable business. The product being user friendly and have all
the accessories one want that is why is in great demand making it No-1 selling
mobile phones in the world. Wide range of products for all class. The re-sell value
of Nokia phones are high compared to other company‟s product.

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Weakness: –
Nokia has many strengths and some weakness. Some of the weakness includes the
price of the product offered by the company. Some of the products are not user
friendly. Not concern about the lower class of the society people. Not targeting
promotion toward them. The price of the product is the main issue. The service
centers in India are very few and scare. So after sales service is not good.

Opportunity : -
Nokia has ample of opportunity to expand its business. With the wide range in
products,features and different price range for different people, it has an
advantage over the competitors around. With the opportunity like „Telecom
penetration in India‟ being at the peak time, Nokia has an opportunity to increase
its sales as well as the market share. As the standard of living in India has
increased the purchasing power of the people as increased as well, so Nokia has to
target right customer at right time to gain the most out of the situation.

Threats: –
Nokia has many threats to tackle to maintain its position as market leader. The
threats like emerging of other mobile companies in the market. The companies
like Motorola, Sony Eriksson, Cingular (U.S) etc. these companies have come to
the stand of tough competition with Nokia in the field of Mobile Phones. Threats
can be like providing cheap phones, new features, new style and type, good after
sales service etc. So, Nokia has to keep in mind the growing competition around.
Nokia has to make strategies to tackle problems in the present and the near
future. The growing demand of WLL network can cause drop in sales for Nokia, as
Nokia provides many less CDMA phones to the customer.

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4. Segmentation

4.1 Mobile Phone

Mobile Phones connect people by providing expanding mobile voice and data
capabilities across a wide range of mobile devices. We seek to put consumers first
in our product-creation process and primarily target high-volume category sales of
mobile phones and devices based on the following global cellular technologies:
GSM/EDGE, 3G/WCDMA and CDMA.
In voice centric and mainstream mobile phones, we believe that design, brand, ease
of use and price are our customers' most important considerations. Increasingly,
our product portfolio includes new features and functionality designed to appeal to
the mass market, such as mega pixel cameras, music players and advanced-quality
color screens.
Quality is at the heart of Nokia‟s brand promise, very human 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.
We 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 or 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

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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.

4.1.1
Segmentation Strategy

Nokia 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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5. Nokia Strategies

Market growth predictions provide one motivation for network operators and
service providers to improve the data service experience. For example, some
research predicts a 270% increase in average monthly ARPS (average revenue per
subscriber) for data services from 2005 to 2020, as indicated in Figure 5.1.
Nokia predicts a CAGR (compound annual growth rate) of 9% for the mobile
services market during the years 2004–2009 (see Figure 5.2). This growth will be
due largely to growth in data services (CAGR 23%), with CAGR at 6% for voice and
other calls.
Data is particularly a growth driver in emerging markets and Asia. Some
researchers provide more conservative figures, but all the research indicates that
definite growth opportunities exist for mobile data services.

5.1
Marketing Strategy

Today, the true “killer” data application is still text messaging, a typical example of
person-to-person communication. Other end-user services, however, have not taken
off as expected in recent years.
The primary reason for this slow take-up is that most of these services do not
fulfill the expectations of users. Although ring tones are one example of
successful person-to-content services, progress must be made for market take-up
of other mobile data services such as:
• Messaging (e.g., MMS and e-mail)
• Entertainment (e.g., graphics, logos, games)
• Information (e.g., directory services, news)

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A variety of user needs will drive market growth for mobile data services

There are two main barriers to increased usage of data services. First is the lack
of relevant service propositions, where the price does not correlate with the
perceived value of the service. Second is the complexity of service adoption and
usage, where users perceive that data services require too much effort compared
to other solutions. User needs and market growth are clearly present, as
illustrated in Fig.5.3.
However, mass-market adoption will happen only when the service providers have
identified the relevant service propositions and ease-of-use factors. Delivering
ease-of-use is within the reach of any service provider, regardless of whether it
operates its own network. However, the challenge is to understand the underlying
reasoning for end-user behavior and usage patterns and to organize the service
offering accordingly. Visibility into the end-user service experience can be
obtained from resources such as sophisticated end-user quality monitoring
systems, continuous end-user behavior studies and end-to-end performance field
measurements.

Moreover, it is of great importance to analyze internal customer processes and

readjust them according to customer needs. Eventually, the need to be attuned to
the customer experience might lead to a new, customer-centric organizational
structure with clear responsibilities for end-to-end Quality of Experience (QoE).
Who will have the overriding responsibility for end-user experience will vary
depending on the operator‟s business model and organizational structure?
In order to prepare the organization for differentiation, the research firm
Forrester proposes that the marketing department should be made responsible for
the total customer experience.
Today, service providers offer data services that appeal to a very small proportion
of mobile users: the young and technology savvy. This group is also one that is most
prone to churn. Yet today‟s high ARPU (average return per subscriber) users are
arguably the customers to retain, as they will likely remain at high ARPU levels for
some years to come.

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5.1.1
Marketing Objective

ü Capture rural Indian market

ü Target school student
ü Attract Customers to New technology
ü Enhance Distribution
ü Maximize our revenues
ü Maintain Customer‟s Loyalty

5.1.2
Ease-of-Use

The main reason why data services have not yet achieved mass-market adoption is
due to the complexity perceived and experienced by end-users. The poor
reputation of data services increases the threshold of willingness for non-users to
experiment with data. Bad user experiences also inhibit existing users from
adopting new services.

5.1.2.1
Simplified Service Setup

Mass-market service usage can occur only if the technical barriers for end-users
have been overcome. Improving the initial phase of service delivery is a sure way to
increase the use of a mobile service, which will lead to an improved end-user
experience; higher revenues for service providers, operators and developers;
decreased customer care costs; and decreased churn rates.
Finding and subscribing to a service are the first hurdles for a potential user. End-
users expect the same effortless and easy access to services via a mobile phone as
they are accustomed to with other channels (e.g., Internet, TV). However, easy
access to a service is dependant on the user‟s frame of reference. Some users
consider access via a branded Internet portal easy, while some users prefer a
browser menu on the device. Knowing your customers is the key to identifying the
most appropriate access channels and improving the efficiency of marketing.

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Service set-up and configuration is the crucial stage in the service adoption
process. Users often consider setting-up and configuring services the most tedious
part of service take-up. Studies suggest that users will abandon the service after
two or three failed setup attempts. As the number of functions on mobile sets
continues to grow, users find it increasingly difficult to configure and maintain
services and applications on their devices (see Fig.5.4). Focusing on delivering ease-
of-use in set-up and configuration is paramount in order to promote service
adoption and improve revenues from services.

5.1.2.2
Simplified user interface

For an easy-to-use experience, service content must be undemanding and plain.

Ease-of-use comes from effortless navigation, with a simple structure that does
not require reading a user manual to be understood. Understandable terminology
used throughout the service session enhances the experience even further. The
user interface should have flexible content behind it, in the sense that the content
adapts seamlessly to different terminals. Ease-of-use is also created by minimizing
the user‟s exposure to the underlying technology when using the service.

A simple and practical user interface, coupled with relevant content, is a

prerequisite for a successful service concept. Any device offered as part of a
service must be carefully matched with the requirements of intended users. An
easy-to-use experience stems from a service concept that successfully combines
relevant content with a matching device. Handset functionality already includes
email, various types of messaging, and access to Internet and entertainment
functions. However, end-users experience the increasing functionality of handsets
as too complicated and are hesitant to use them. As such, complex handsets do not
by themselves promote increased service usage.
From the perspective of service management, ease-of-use means integrated
systems that feed service information into reporting systems that enable the
service provider to monitor and assess service usage online, in real-time.
Application developers must consider the scalability of applications in order to
deliver adaptability for different interfaces in devices and in the network.

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5.1.2.3
Clear Payment Method

The ease-of-use experience is also reflected in payment options and processes,

which should be as effortless as possible. These processes include payments and
associated transactions, such as contracts required to access the service, as well
as procedures to make and confirm transactions. End-users favor suppliers that
can minimize the risks involved and maximize the user‟s level of comfort and
confidence. The end-user should feel able to control spending and feel secure
about the services used. For convenience, users prefer to pay for services with
existing pre-paid or post-paid accounts.

5.1.2.4
Easy access to Customer Support

Offering customer care is an essential part of an ease-of-use service experience.

The working customer care concept creates stickiness between the end-user and
the service provider. Customer support can be offered via a call center, by
providing automated self-service or through in-store support. The challenge is to
choose the customer support combination that best matches the specific service
proposition. For call centers, ease-of-use manifests in quick response, least number
of call transfers, transparent tariffs and knowledgeable personnel.
The better the alignment in business processes, supporting infrastructure and
related call center processes, the better the capabilities for delivering superior
call center service.
Another contact point for users is often provided via a branded Internet portal.
An Internet portal is an attractive option because it supports end-users 24/7 and
is cost-effective for the service provider.
Users can access the portal to manage and modify their own account. Connection
stability and logical navigation with a minimal number of clicks determines the
ease-of-use experience in an Internet portal.
The third contact point for users is in-store support. This support is difficult to
organize and manage for quality as it is often outside of a service provider‟s own
business realm. End-users often perceive in-store support as inadequate and not
fulfilling their needs. Many end-users complain about the service they have been
given while visiting an outlet.

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5.1.2.5
Simplified service termination

Termination of the service should be as simple as possible in order to lower the

threshold for a user‟s willingness to test the service. A simple SMS or MMS
message should be adequate to terminate the service.
5.1.3 Product Life Cycle
A large untapped potential exists among the present base of non-users: the 10% of
existing customers who use services infrequently or do not use services at all, even
though they have the right mobile handset. In general, these mainstream users are
more loyal to their existing service provider, making them a group to reward for
their loyalty. Ease-of-use is one of the key factors when increasing customer
loyalty, which, in turn, will lower churn and eventually lead to a decrease in
marketing expenditures. Differentiation by ease-of-use experience will also have
an effect on increasing ARPU, because it speeds up the adoption of new services.
The more mainstream the target users, the more they value ease-of-use and
customer intimacy and seek practical uses for new services. The fact that ease-of-
use is particularly relevant to mainstream users makes it such an important
consideration. Making a service successful in the mainstream market has the
challenge for most existing services. Creating ease-of-use in services will help a
service provider to “cross the chasm” from the early market of innovators and
trendsetters to the mainstream market of average users (see Fig.5.5).

Services Life Cycle

Creating and implementing a business strategy that focuses on ease-of-use will

enable the service provider to increase service revenues. Naturally, strategies
across geographical regions and operators differ and it is not possible to copy
exactly from the experiences of others. Service uptake and usage differ vastly
depending on the stage of the overall society and service culture, main technologies
chosen, competitive market situation, maturity level of networks, and other
network lifecycle variables.

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5.2
Positioning Strategy

When Nokia positions its brand in the crowded mobile phone marketplace, its
message must clearly bring together the technology and human side of its offer in
a powerful way. The specific message that is conveyed to consumers in every
advertisement and market communication (though not necessarily in these words) is
"Only Nokia Human Technolgy enables you to get more out of life"
In many cases, this is represented by the tag line, "We call this human technology".
This gives consumers a sense of trust and consideration by the company, as though
to say that Nokia understand what they want in life, and how it can help. And it
knows that technology is really only an enabler so that you-the customer-can enjoy
a better life. Nokia thus uses a combination of aspirational, benefit-based,
emotional features, and competition-driven positioning strategies. It owns the
"human" dimension of mobile communications, leaving its competitors wondering
what to own (or how to position themselves), having taken the best position for
itself.

5.2.1
Nokia Product Design

Nokia is a great brand because it knows that the essence of the brand needs to be
reflected in everything the company does, especially those that impact the
consumer. Product design is clearly critical to the success of the brand, but how
does Nokia manage to inject personality into product design? The answer is that it
gives a great deal of thought to how the user of its phones will experience the
brand, and how it can make that experience reflect its brand character. The large
display screen, for example, is the "face" of the phone. Nokia designers describe it
as the "eye into the soul of the product". The shape of phones is curvy and easy to
hold. The faceplates and their different colors can be changed to fit the
personality, lifestyle, and mood of the user. The soft key touch pads also add to
the feeling of friendliness, expressing the brand personality. Product design
focuses on the consumer and his needs, and is summed up in the slogan, "human
technology."

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Nokia now accounts for over half of the value of the Finland stock market, and has
taken huge market share from its competitors. According to one brand valuation
study carried out in mid-1999, it ranked 11th on the world's most valuable brand
list, making it the highest-ranking non-U.S. brand. As has been pointed out, it has
unseated Motorola. Nokia achieved its brilliant feat through consistent branding,
backed by first-class logistics and manufacturing, all of which revolve around what
consumers what.

5.3
Promotion Strategy
"Push or Pull"?
Marketing theory distinguishes between two main kinds of promotional strategy -
"push" and "pull".

5.3.1
Push:

A “push” promotional strategy makes use of a company's sales force and trade
promotion activities to create consumer demand for a product. The Nokia promotes
the product to wholesalers, the wholesalers promote it to retailers, and the
retailers promote it to consumers.
For example Nokia promote their products via retailers such as Carphone
Warehouse. Personal selling and trade promotions are often the most effective
promotional tools for companies such as Nokia - for example offering subsidies on
the handsets to encourage retailers to sell higher volumes.
A "push" strategy tries to sell directly to the consumer, bypassing other
distribution channels (e.g. selling insurance or holidays directly). With this type of
strategy, consumer promotions and advertising are the most likely promotional
tools.

5.3.2
Pull:
A “pull” selling strategy is one that requires high spending on advertising and
consumer promotion to build up consumer demand for a product.
If the strategy is successful, consumers will ask their retailers for the product,
the retailers will ask the wholesalers, and the wholesalers will ask the producers.

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5.4
Pricing Strategy

Nokia observes different pricing strategy for different range of product. The
main aim is to gain the market at rural village of India and maintain it‟s customer
for Mid range phone.

5.4.1
Premium Pricing

Use a high price where there is uniqueness about the product or service. This
approach is used where a substantial competitive advantage exists. Such high
prices are charge for luxuries such as NOKIA E-series mobile phone.

5.4.2
Penetration Pricing

The price charged for products and services is set artificially low in order to gain
market share. Once this is achieved, the price is increased. This approach was used
Nokia on Model No. 1100 and 1108, in Indian rural market.

5.4.3
Economy Pricing

This is a no frills low price. The cost of marketing and manufacture are kept at a
minimum. Nokia follow it for it‟s mid range Mobile phone. Normally it is to attract
middle income group.

5.4.4
Price Skimming

Charge a high price because you have a substantial competitive advantage.

However, the advantage is not sustainable. The high price tends to attract new
competitors into the market, and the price inevitably falls due to increased supply.
5.5 Distribution Strategy

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Mobile phones have become a major part of our everyday life. On the one hand,
India‟s Mobile phone market has grown rapidly in the last few years on the back of
falling phone tariffs and handset price, making it one of the fastest growing
markets globally.
Nokia is a world leader in mobile communications, driving the growth and
sustainability of the broader mobility industry. Nokia connects people to each
other and the information that matters to them with easy-to-use and innovative
products like mobile phones, device and solutions for imaging, games, media and
businesses. Nokia provides equipment, solutions and services for Network
operators and corporations.
Nokia held a global market share of 34.2 percent at the end of January, according
to consultants‟ strategy Analysis, while Motorola had 18.3 percent, Samsung 11.1
percent, and LG and Sony Ericsson 6.6 percent each. “To illustrate Nokia‟s
performances, more than one third world‟s phone users use a Nokia phone”. In
India Nokia is the market leader, with a manufacturing facility in Chennai.
Understanding of distribution channel used by Nokia – Distribution is the life blood
for an organization in order to make sales. The products are required to reach the
outlets for sales based on the demand for the product. Only if distribution channel
is effective products can reach the consumers, as well maintain or increase their
market share. This is very important, as there is intense competition in the market
from various other players, in order to stay ahead and meet the competition we
need to provide goods on time to the dealers to make sales and earn profits for
both company as well as outlets.
Availability of goods and time is an essential for any organization this could be
done only by having good distributors and redistributors stockiest. Further the
company should take care of goods manufactured reach the distributor & the
redistributors stockiest on time. The company requires to have a regular check on
these channels if they working efficiently and take steps to further step to
improve. The company only stay ahead in profits, market share etc, only if their
products reach the outlets on time as well based on demand.
The project began with the basic understanding of how distribution of mobile
phones takes in the market by Nokia. Nokia works with the distribution of mobile
phones takes in the market by Nokia. Nokia works with the distributor, re
distributor stockiest (R.D.S) and finally the retailer from whom the product is sold
to the consumer. Five forms of outlets sell Nokia‟s products:

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6.
Distributors-:

i. HCL infosystem
ii. Bright point.

Outlets-:
i. Nokia priority dealers
ii. Multi brand outlets
iii. Reliance web world
iv. Reliance web world express
v. Tata true value shop.

Nokia Distribution Channels

Distributors:
A) HCL Infosystem: During the last ten years, the HCL-Nokia relationship has
witnessed strong growth in the Indian GSM handset market resulting in a
significant market share gain for Nokia, and the increased need for a distribution
Network that will meet the projected market growth of 200 million subscribers by
2007. The relationship with Nokia has been a very satisfying one, and the
agreement between Nokia and HCL reaffirms Nokia‟s commitment to the growing
Indian Market, to ensure that mobile devices are accessible to more consumers in
the cities and towns across India.

Mobile penetration is getting into the next phase of growth of which a major
portion is expected to come from smaller towns and remote locations. There is
clear pick up ion demand. The challenges ahead would be to penetrate deeper,
preserve market and in order to have much greater depth, align to global policy of
balanced channel mix and also to ensure that all possible channels are included, and
channel partners are well served so that growth opportunities are captured.
The two companies have extended their agreement for another five years. This
strong relationship between these two players plays a crucial role in increasing the
sales as well to hold the market leader position in the market. Both entering the
distribution channels will in fact help the consumer to get the best product in the
nearest location in any part of the country.

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B) Bright point
It offers the most comprehensive selection of brands and products in the wireless
industry. Handset, Integrated devices, PDAs, etc. They also provide full selection
of OEM and aftermarket accessories, Modems and software. It distributes
product manufactured by the world‟s leading handset manufacturer.
Outlets:
a) Nokia priority dealers are exclusive show rooms for buying Nokia products.
These outlets are directly under the control and supervision of Nokia, which makes
them solely accountable to Nokia. NPD‟s are preferred outlets to buy Nokia
products, as they are their genuine dealers of its products. These outlets have the
complete portfolio of Nokia products existing in the market. The buying experience
the consumer enjoys is the better than any other outlet in the city.
b) Multi brand outlets are the outlets, which deal with all the company products in
the market. They provide service and space to all the competitors as they sell all
the products in the market. The major purpose is not to dissatisfy the consumers
entering the outlet and provide them with all the brands asked by him. The amount
of sales made is higher as well the profit earned is higher. The numbers of these
outlets are higher in the city.
c) Reliance web world are exclusive reliance outlets. They deal with reliance
products of providing connections and billing of the connections. These outlets also
sell mobile phones of various brands. The major aspect in these outlets is the stock
reaches these outlets directly from the company itself. The RDS has no role to
play other than providing these providing these outlets POS materials to these
outlets.

d) Reliance web world express are also exclusive reliance outlets but are the
franchise outlets of Reliance. They also deal with reliance products of providing
connections and billing of the connections. These outlets also sell mobile phones of
various brands. The major difference between web world and express are the
stock that reaches these outlets. The RDS and his sales men provide both stocks
as well POS materials to these outlets.
e) Tata true values Shoppe are also exclusive Tata outlets but are the franchised
outlets. They also deal with Tata products providing connections and billing of the
connections. These outlets also sell mobile phones of various brands. The RDS and
his sales men provide both stocks as well POS materials to these outlets.

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7. Conclusion
Nokia being in a competitive market holds the market as a monopoly with its Unique
identity, Marketing Strategy and distribution policy. Through the Ease-of-use
concept, it will add a lot to Customer Value, which further helps Nokia in capturing
the market share in India.
“Our goal is to be a good corporate citizen wherever we operate, as a responsible
and contributing member of society.”

NOKIA definitely helps to come true for Middle Man’s Dream

8. IMPLEMENTATION AND CONTROL

The objective of nokia marketing plan is to serve as reference for the

organizations. The following areas will be monitored to gauge performance:

Revenue: monthly and annual

Expense : monthly and annual

Customer satisfaction

Sales growth by 10 percent annually

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9. CONTINGENCY PLANS

Difficulties and risks

Slow sales resulting less than projected cash flow

Unexpected and excessive cost increase compared to the forecasted sales

Overly aggressive and debilitating actions by competitors

Significant economic downturns

Worst case risk include

Liquidate asset to cover marketing expenses and liabilities

Determining the product cannot support itself on ongoing basis

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