PROJECT REPORT O CO SUMER PURCHASI G BEHAVIOR A D BRA D PROMOTIO BY Satish Prakash Goyal MBA 2007-2009 TILAK MAHARASHTRA

U IVERSITY PU E Institute Of Business Studies & Research Pune (Satish P.Goyal) Page 1

CERTIFICATE This is to certify that Satish Prakash Goyal student of INSTITUTE OF BUSI ESS ST UDIES A D RESEARCH completed his field work report at okia India Pvt Ltd on the topic of CONSUMER PURCHASI G BEHAVIOR A D BRA D PROMOTIO and has submitted t he field work report in partial fulfillment of Master of Business Administration of the TILAK MAHARASHTRA UNIVERSITY for the academic year 2007 - 2009. He has w orked under our guidance and direction. Project guide name Designation Director Date:Place:Institute Of Business Studies & Research Pune (Satish P.Goyal) Page 2

DECLARATIO I herby declare that the project titled “Consumer Purchasing Behavior and Brand Pr omotion” is an original piece of research work carried out by me under the guidanc e and supervision of Mr. Deepak Yadav. The information has been collected from g enuine & authentic sources. The work has been submitted in partial fulfillment o f the requirement of Master of Business Administration to Tilak Maharashtra Univ ersity. Place: Date: Signature: Satish Prakash Goyal M.B.A 2007-2009 Institute Of Business Studies & Research Pune (Satish P.Goyal) Page 3

Deepak Yadav(Asst. The successful completion of this project would not h ave been possible without their generous cooperation. Institute Of Business Studies & Research Pune (Satish P. I would also like to thank the Department and people in the organization for spa ring their valuable time and providing useful insight’s that have made my learning experience very fruitful. I am very grateful to Prof Ranjeet Choudhary for having given me an opportunity to undertake this project.Acknowledgement I would like to thank Mr. Pune for providing me the stepping stone to my Professional career and tha t too in an esteemed organization like okia India Pvt Ltd.Goyal) Page 4 . Nokia India Pvt Lt d and Mr. I am greatly indebted to I BSAR. Manager – Sales Department).Nokia India Pvt Ltd for g iving me an opportunity to work on this project and providing guidance to me at required times. Kauhsik (Manager-Sales Department).

To gain familia r with sales process at NOKIA. I took my summer training at were:okia India Pvt Ltd.Goyal) Page 5 . Institute Of Business Studies & Research Pune (Satish P.Preface Summer training is an integral part of the course curriculum for the degree of M aster in MBA. The knowledge I have gained has been presented in the form of report has been ma de in a manner such that it is easy for the reader to know maximum details in mi nimum time. this expose them to functional areas of management. It also provides them an opportunity to be a part of real corporate world with t he same object. To know the purchasing behavior of consumers. To know how to do direct marketing and personal s elling for the company. The main p oints on which I laid stress • • • • To gain depth knowledge about the actual working of the company. It provides valuable experience to management student.

Chapter – I Introduction Objectives of the study Scope of study Research Method ology Data collection Limitation of the study 7 8 9 10 11 11 2.Goyal) Page 6 . Chapter – V Bibliography Questionnaire 52-53 54 55-57 58-60 61 63-64 Institute Of Business Studies & Research Pune (Satish P. Topics Page No.TABLE OF CO TE TS Sr. Chapter – III Executive Summary Profile of t he Company Main Business & Procedures Analysis with Graphical Representation 12-14 16 17-28 28-44 45-50 4. No. Chapter – II Review of Literature 3. 1. Chapter – IV Conclusion Inferences Observations & findings SWOT Analysis of com pany Recommendations for applications 5.

CHAPTER – 1 INTRODUCTION Institute Of Business Studies & Research Pune (Satish P.Goyal) Page 7 .

Secondary Objective • The whole process of doing the project is to know why the market share of nokia handsets slipping or coming down. Institute Of Business Studies & Research Pune (Satish P. . • Encourage the retailers of the Pune city.Objective of Study Primary objective • The primary objective of the project was to enhance the consumptions the Nokia p roducts .Goyal) Page 8 . 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 comp etition. • • • To know the consumer preferences and choices.

• I have worked as a Sales Assistant . Institute Of Business Studies & Research Pune (Satish P. Consumers always looks for better value proposition. as well as to ensure the qualit y. security and timely delivery of our products. safety.Scope of Study • Nokia is already well establish in the market. • Our ability to manage efficiently our logistics.during the project I come to know that custo mers are too price conscious they want a quality product in less amount.Goyal) Page 9 . • • First the main thing I have learned how the supply chain process affect sales. T he intensity of competition in the mobile communications industry and our abilit y to maintain or improve our market position or respond successfully to changes in the competitive landscape. but there are lots of others thin gs that has to be understand as a Sales Assistant. they always compare the ben efits of one company to others. • I have learned about consumer behavior how they respond in practical life. services and solutions.

a scientific and systematic search for information. analys is and reporting of data and finding relevant to a specific marketing situation facing the company. To test the theo retical prediction Institute Of Business Studies & Research Pune (Satish P. Marketing research is the systematic design . collection. Secondary objective • • • To fill the gap in knowledge.It refer s to search for knowledge . • Rephrasing the same into meaningful terms from an analytical point of view.RESEARCH METHODOLOGY Research methodology is a systematic way to solve the research problems.Goyal) Page 10 . Objectives of Research Primary objective • To understand the problem thoroughly. collection. analysis and reporting of data and finding relevant to a specific marketing design. To resolve contradictory finding.

newspaper.Limitations of the projects are to know the behavior of the custom ers . Primary source is one itself collects the data.and pricing policy and the attitude. facts or figures for the probl em. when the needed data do not exist or are dated . websites. face to face interview Limitations . product . by us ing questionnaire. inaccurate . Secondary data collection – Secondary data is collected by others already and the researcher is using that information for his own research purpose.Primary data is the first hand information obtained by investigator . market segmentation. by face to face questioning . Sampling plan : Sampling unit . Primary data can be collected by observation . feeling and r eaction of the consumer towards the products. Institute Of Business Studies & Research Pune (Satish P. or unreliable.Walk-in customers in retail outlet. Sample size .100 Sampling Instruments. incomplete. Primary data collection.Goyal) Page 11 . publi cations of national and international organization.Questionnaire. Secondary dat a can be collected from published reports . journals.Data collection Data collection means collections of information. by interviews.

CHAPTER -2 REVIEW OF LITERATURE Institute Of Business Studies & Research Pune (Satish P.Goyal) Page 12 .

felt that price and pro perties had affected their decision making at least relatively much. Institute Of Business Studies & Research Pune (Satish P. as the average net income in the target group was relatively low C onclusion .In recent years. While looking at oldest surveyed group thre e (older university students) majority of them bought their first mobile phone a t the age of 18 (24%). The study attempted to cast light on the much unexamined area of the mob ile phone purchase. Although it is evident that the larg e players in the telecommunication business constantly conduct market research.Goyal) Page 13 . followed by the age of 19 (23%) and 20 (15%). 33% of the youngest group (secondary school students). Price might have dominated the decision making in the sample more than it does for the whol e population. In comparis on. and use of the mobile phone services.The exploratory study was conducted to increase our understanding of the mobile phone market in general and analyse consumer decision making in part icular. operator choice. the problem is that the results are obtained are usually kept inside company wal ls and therefore consumer behavior in mobile phone industry is an unexamined gen re in academic literature The trend that mobile phones are purchased earlier and earlier was verified with the data. for price and properties respectively. According to the survey close to 80 percent and over 85 percent. 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. acquired their first mobile phone at the age of 15 Price and properties were regarded as the most imp ortant motives affecting the decision to purchase current mobile phone model amo ng the respondents as displayed.

Secondly. 2.The main results of the study indicates that 1. For the choice of operator the factor were found to be features and brand. First of all the age of purchasi ng a mobile phone among young Indian has lowered in just few years from 18-19 to 14-15. and influential persons.Goyal) Page 14 . market condition. Institute Of Business Studies & Research Pune (Satish P. 3. only about 15% of the respondent s felt that their use of mobile services would increase in the next 12 month. components in pricin g. the factors underlying purchase of a mobile phone were foun d to be manufacturer. Thirdly. quality and influential persons.

Goyal) Page 15 .CHAPTER -3 COMPA Y PROFILE Institute Of Business Studies & Research Pune (Satish P.

mostly from Asian countries. Mobile phones are no lo nger seen as expensive.Goyal) Page 16 . some even twice a year. Obs ervers have begun asking whether the cutting edge that has turned Nokia into the No 1 vendor still exists.” This report gives an overview on what is happening on the mobile phone market to day and analyses Nokia’s market position in the growing market.EXECUTIVE SUMMARY Mobile phone market in India is going through major changes. At the end. Key players are los ing market share while new and young companies. are coming to the market. The whole process of buying mobile phones h as changed in the last few years. change is the fast technological development of the phones. But also c onsumer’s but they change their phone very year. At the same time the market is slowly expanding when peop le are buying more phones than ever. This report includ es a brief introduction to Nokia followed by an environmental analysis. One reaso n for these attitudes towards mobile phones has changed. as Nokia’s market share and revenues have been on the d ecline. Finally we try t o make a conclusion of the topics discussed and attempt to give some possible an swers to the question at hand. Institute Of Business Studies & Research Pune (Sa tish P. this report introduces the main strategies and objectives of Nokia for the competitive market. but they have become accessories like jewellery or a piece of clothing. People no longer carry the same phone year in year out. hi-tech products. Half way through the report you can find information about consumer behavior and segmentation. SWOT ana lysis of the company. “Nokia is still the largest mobile phone company in the world. but its long-term dominance is now challenged more than ever. 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.

Since the beginning of the 1990 s. telecommunications. Nokia also p urchased the Swiss cable machinery company Maillefer. Nokia became the largest Scandinavian information technology company through the acquisition of Ericsson s data systems division. No kia conducted a significant expansion of its cable industry into Continental Eur ope by acquiring the Dutch cable company NKF. Gradually. Salora. Nokia strengthened its position in the telecommunications a nd consumer electronics markets through the acquisitions of Mobira. Elsewhere. In 1987. Nokia acquired the consumer electronics operati ons and part of the component business of the German Standard Elektrik Lorenz. Final ly in 1967 the three companies were merged to form Nokia Corporation. In 1989. Institute Of Business Studies & Research Pune (Satish P.History The roots of Nokia go back to the year 1865 with the establishment of a forest i ndustry enterprise in South-Western Finland by mining engineer Fredrik Idestam. the ownership of the se two companies and Nokia began to shift into hands of just a few owners. a nd in 1912 Finnish Cable Works began operations. In the late 1980s. by divesting i ts information technology and basic industry operations. In 1987. At the beg inning of the 1980s. Nokia has concentrated on its core business. a s well as the French consumer electronics company Oceanic.Goyal) Page 17     . the year 1898 witnessed the foundation of Finnish Rubber Works Ltd. Tele va and Luxor of Sweden.

1960-1980 Design has always been important at Nokia and today s mobile phones are regarded as a benchmark for others to follow.the telephone! After operating for 50 years. Nokia Corporation was formed in 1967 by the merger of Nokia Company . it hit on the idea of making bri ghtly-colored rubber boots at a time when boots followed the Henry Ford principl e .the original paper-making business . But Nokia has always thought like that and back in the fashion-conscious 1960 s when one branch of t he corporation was a major rubber manufacturer.1865-1960 From its inception. an Electronics Department was set up at the Cable Works in 1960 and this paved the way for a n ew era in telecommunications. Take. for example. were leading edge technologies at the time.Goyal) Page 18     . clip-on fascias which turned mobiles into a fashion item overnight. and ass ociated chemicals. multi-colored.with the Finnish Rubber Works and Finnish Cable Works. quite natural ly. Rubbers. Then came technology with the foundi ng of the Finnish Rubber Works at the turn of the 20th century. Nokia was in the communications business as a manufacturer o f paper the original communications medium.you could have any colour. Another major tec hnological change was the expansion of electricity into homes and factories whic h led to the establishment of the Finnish Cable Works in 1912 and. to the manufacture of cables for the telegraph industry and to support that new-fangled device . so long as it was black! Institute Of Business St udies & Research Pune (Satish P.

The corporation divested the non-core operati ons and focused on telecommunications in the Digital Age. Finland met the deadline. The 80s and 90s saw widespread dere gulation. was appoint ed to head the entire Nokia Group. True enough. In those days. Inst itute Of Business Studies & Research Pune (Satish P. In 19 87. The world s first international ce llular mobile telephone network. Few people in the earl y 90s would have thought that going digital would change things so much. in 19 65. there were transportable mobile phones at the start of the 80 s but they were heavy and huge. was introduced in Scandinavia in 1981 and Nokia made the first car phones for it. Nokia prod uced the original hand portable in 87 and phones have continued to shrink in in verse proportion to the growth of the market ever since. 1980-2008 It took a tec hnological breakthrough and changes in the political climate to create the wiref ree world people are increasingly demanding today.Goyal) Page 19                                 . monitors and TV set s. however. which could carry data in addition to high quality voice.The 60s. then President of Nokia Mobile Phones. GSM. however. which stimulated competition and customer expectations. Politics and techno logy have continued to shape the industry. In the 1980 s. The technology was the digita l standard. thanks to Nokia and the operators. were more important as the start of Nokia s entry into the Te lecommunications market. the prospect of High Definition TV. the political goal was set to adopt GSM throughout Europe on July 1st 1991. everyone looked to micro computers as the next big thing and Nokia was no exception as a major producer of computers. by data modems . In the background. changes were afoot. Nokia changed too and in 1992 Jorma Ollila. NMT. A radio telephone was developed in 1963 followed.long before such items were even heard of by the general pu blic. satellite connections and teletext services fuelled the imagination of the fashion conscious homeowner.

First Made for India phone.Some firsts for okia in India 1995 – First mobile phone call made in India on a Nokia phone on a Nokia Network 1 998 .Saare Jahaan Se Acchha.First Wi-fi Phone.Firs t phone with Hindi menu (Nokia 3210) 2002 .Saral Mobile Sandesh.Nokia Communicator (N 9500) 2005 – Local UI in additional local language 2006 – Nokia manufacturing plant in Chennai 2007 – First vernacular news portal Institute Of Business Studies & Research Pune (Satish P. Hindi SMS on a wide range of Nokia phones 2004 . Nokia 1100 2004 . first Indian ring tone in a Nokia 5110 2000 .First Camera phone (Nokia 7650) 2003 .Goyal) Page 20 .

Corpor ate Relations and Responsibility Anssi Vanjoki Executive Vice President. McDowell Executive Vice President. Human Resources Ter o Ojanperä Executive Vice President. Sales Mary T. Chief Financial Officer Veli Sundbäck Executive Vice President. Nokia Siemens Networks Timo Ihamuotila Ex ecutive Vice President.President and CEO of Nokia Corporation Robert And ersson Executive Vice President. Entertainment & Communities iklas Savander Ex ecutive Vice President. Markets Dr. Chief D evelopment Officer Hallstein Moerk Executive Vice President. Services and Software Richard A. Strategy and Sourcing Simon Be resford-Wylie Chief Executive Officer.Company Description Management Team Olli-Pekka Kallasvuo Chairman . Simonson Executive Vice President. Kai Öistämö Executive Vice President. Devices Institute Of Business Studies & Research Pune (Satish P. Devices Finance.Goyal) Page 21 .

President & CEO Jorma Ollila.Nokia Corporation Public – Oyj Type (OMX: NOK1V. FWB: NOA3) Founded Founder Headquarters Nokia. Finland Kari Kairamo.058 bn (2007)[1] Page 22 Services Revenue Institute Of Business Studies & Research Pune (Satish P. CEO in the 19 80s Key people Olli-Pekka Kallasvuo.Goyal) . Finland (1865) Fredrik Idestam Espoo. NYSE: NOK. Chairman Indu stry Telecommunications Mobile phones Products Smart phones Multimedia computers Networks Services and Software Online services 51.

378 as of March 31.Goyal) Page 23 17.599 bn (2007) okia Siemens Networks Subsidiaries Vertu Navteq (pending merger) Institute Of Business Studies & Research Pune (Satish P.985 bn (2007) 7.Operating income et income Total assets Total equity Employees 7. 2008[2] N .205 bn (2007) 37.338 bn (2007) 116.

Corporate culture Nokia s official corporate culture manifesto, The Nokia Way, emphasises the spee d 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, Achieveme nt, and Renewal. In May 2007, Nokia redefined its values after initiating a seri es 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 solu tions and services for mobile telecommunications and network infrastructure. The company is divided into four major segments: Mobile Phones, Multimedia, Network s and Ventures Organization. Institute Of Business Studies & Research Pune (Satish P.Goyal) Page 24

 

 

The Mobile Phones division of Nokia manufactures develops wireless handsets are developed using GSM and various other mobile technologies. This segment also inc ludes Vertu Ltd., which is a subsidiary of Nokia and also the first company in t he world to manufacture exclusive luxury Nokia cell phones. The Multimedia divis ion manufactures multimedia devices and applications that are compatible with ga mes, music, imaging, video and other media capabilities. The Multimedia division has gained prominence for its Internet services, music synchronization, optics and streaming video. Nokia’s Networks segment offers network infrastructure, servi ce 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 safe ty and security sector, the Networks offers broadband access for professional us ers. 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. Institute Of Business Studies & Research Pune (Satish P.Goyal) Page 25

VISIO “Our customers continue to our First Priority” Nokia’s future success depends on delivering great experiences to our customers by creating products and solutions that work seamlessly and are appealing. Everyone has a need to communicate and share. Nokia helps people to fulfill this need and we help people feel close to what matters to them. We focus on providi ng consumers with very human technology – technology that is intuitive, a joy to u se, and beautiful. We are living in an era where connectivity is becoming truly ubiquitous. The com munications industry continues to change and the internet is at the center of th is transformation. Today, the internet is Nokia s quest. Nokia s strategy relies on growing, transforming, and building the Nokia busines s to ensure its future success. Institute Of Business Studies & Research Pune (Satish P.Goyal) Page 26

 

 

Mission ‘In a world where everyone can be connected. sharing. Nokia will continue to be a growth company. with the 4 billon who don’t” At Nokia. whenever. we believer in communicating. customers remain our top priority. Nokia believes in communicating. then growth will follow. retailers and enterprises. Institute Of Business Studies & Research Pune (Satish P. Strategy “Wherever. we take very human approach to techno logy” Connecting is about helping people to feel close to what matters. whenever. In a world where everyone can be connected. and use technology to help people feel close to what matters. and we will expand to new markets an d businesses. Customer focus and consumer underst anding must always drive our day-to-day business behavior. sharing and in the awesome pote ntial of connecting the 2 billion who do. Nokia’s priority is to be the most preferred partner to operators. If we focus on p eople. Nokia takes a very hum an approach to technology. and in the awesome potential in connecting the 2 billion who do with the 4 billion who don’t. Our brand goal is for Nokia to become the brand most loved by our customers. Wherever.Goyal) Page 27 . World leading productivity is critical for our future success.

Nokia’s Networks business group was combined with Siemens’ carrierrelated oper ations for fixed and mobile networks to form Nokia Siemens Networks. 2007. Services & Software reflects o ur strategic emphasis on developing and growing our offering of consumer Interne t services and enterprise solutions and software. sales channels. Markets are responsible for ma nagement of our supply chains. The Corporate Development Office focuses on our strategy and future growth. including sourcing of components. Institute Of Business Studies & Research Pune (Satish P.Goyal) Page 28 . On April 1. and provides operational support for integration across all the units. jointly own ed by Nokia and Siemens and consolidated by Nokia.STRUCTURE Devices are responsible for developing the best device portfolio for t he marketplace. and brand & marketing activities.

At Nokia. we view quality holistically and as an integral part of business mana gement. sale s and distribution to customers. Our products and customer experiences ar e the results of our everyday processes. The whole chain. Designing good quality products begins with understanding customer requirements and creating the best u ser experience. human friendly technology. most loyal cu stomers and most efficient operational mode. impacts the end-result – everybody in the chain h as a role to play in achieving quality. Our key quality targets are: • • • For Nokia to be number one in customer and consumer loyalty. We want our customers to know that Nokia is the best quality company in the indu stry. The quality and reliability of our products and services are among the most impo rtant factors driving customer satisfaction and loyalty. Nokia believe that quality is about meeting and exceeding customer expectations. which in turn is tied to the quality of management. Our goal is to have the industry’s best products and services. For Nokia to be num ber one in product leadership. from suppliers through to R&D. Institute Of Business Studies & Research Pune (Satish P.QUALITY: Quality is at the heart of Nokia’s brand promise. The quality of products and customer experiences depends on the quality of processes.Goyal) Page 29 . operations. For Nokia to be number one in operational excelle nce.

Our process thinking covers everything we do .Goyal) Page 30       . It is o ur source of inspiration. quality improvement is much more than something we c an quantify in words or pictures. Commitment to q uality improvement is a continuous management process. and processes are continuously improved based on the measures and the feedback we receive from our customers. We hav e developed a key framework for improvement at Nokia. But at the end of the day. which we call the Self-Re gulating Management System . process man agement and combining fact-based management with values-based leadership. energy and excitement Institute Of Business Studies & Research Pune (Satish P. It s about management practices that allow us to ru n our business in a consistent. effective and fact-based manner. and it is a part of our culture and values. . Quality in management is vital for leveraging innovations globally and improving productivity in general. Our approach to this is platform thinking. By taking quality personally we are able to deliver world-class quality to our customers. It is an attitude – a mindset.Process management means finding the simplest way of operating. It is both a business str ategy and a personal responsibility. in order to crea te customer value in a lean manner.

5 Nokia 6000 series – Classic Business series 1.1 Nokia Eseries – Enterprise series 1.3.3.Goyal) Page 31 .4.3.4.4.3 Nokia N-Gage – Mobile gaming devices (discontinued) 1.8 Nokia 9000 series – Communicator series (discontinued) 1.4.4 Special function phones 1.2 Nokia 2000 series – Ba sic series 1.3.4.3.4 VERTU – Luxury phones 1.1 Classic series – The Mobira series 1. Contents 1 Mobile phones 1.3 Nokia 3000 series – Expression series 1.2 Nokia Nseries – Multimedia Computer s eries 1.2 Original series 1.3.5 Cardphones (PCMCIA) Institute Of Business Studies & Research Pune (Satish P.6 Nokia 7000 seri es – Fashion and Experimental series 1.4 Nokia 5000 series – Act ive series 1.List of okia products The following is a partial list of products branded by Nokia.3.7 Nokia 8000 series – Premium series 1.3 100 0–9000 series 1.1 Nokia 1000 series – Ultrabasic series 1.3.

6 Concept phones 2 Other products 2.9 Software solutions 2.4.10 Military communications 3 References 4 Exter nal links Institute Of Business Studies & Research Pune (Satish P.1.7 Internet tablets 2.5 GPS products 2.6 TETRA 2.1 Digital television 2.2 ADSL modems 2.Goyal) Page 32 .4 Te lephone switches 2.3 WLAN products 2.8 Security so lutions 2.

includ ing sourcing of components • Services & Software reflects our strategic emphasis o n developing and growing our offering of consumer. September 2007). R&D. • Net sales EUR 5 1. includin g Nokia Siemens Networks) • Sales in more than 150 countries • Nokia devices availab le at approximately 350. • Wor ld s number one supply chain (AMR Research. 2007) Nokia organization • Devices is responsible for developing the best device portfolio for the marketplace.0 billion • 112262 employees at year end (inclu ding Nokia Siemens Networks) • Strong R&D presence in 10 countries • R&D investment EUR 5. 2007) #1 brand in Asia (Synovate 2006 and 2007). production.1 billion • Operating profit EUR 8. and #1 brand inEurope (European Brand Institute.Goyal) Page 33   .6 billion • 30415 employees in R&D (approximately 27% of workforce.2007 facts and figures: • Head office in Finland. Institute Of Business Studies & Research Pune (Satish P. marketing activities around the world • World’s #1 manufacturer of mobile devices.000 points of sale • World’s 5th most valued brand (Interbra nd. with estimated 38% share of globa l device market in 2007 • Mobile device volumes 437 million units. sales.

Internet services and enterprise solutions and software. Nokia’s Networks business group was combined with Siemens’ carrier-relat ed operations for fixed and mobile networks to form Nokia Siemens Networks. On Apr il 1. • Markets is responsible for management of our supply chains.Goyal) Page 34 . Institute Of Business Studies & Research Pune (Satish P. join tly owned by Nokia and Siemens and consolidated by Nokia. 2007. • The Corporate Development Office focuses on our strategy and future growt h. and brand & marketing activ ities. and provides operational support for integration across all the units. sales channels.

excluding special items OKIA I THE FIRST QUARTER 2008* EUR million et sales Devices & Services Nokia Siemens Networks Operating profit Devices & S ervices Nokia Siemens Networks*** Group Common Functions -278 -58 -74 78 3 401 1 697 Q1/2008* 12 660 Q1/2007** 9 856 Change 28% 9 263 8 163 13% 1 531 1 272 20% 1 883 1 252 50% Institute Of Business Studies & Research Pune (Satish P.Goyal) Page 35 . reported EPS of EUR 0.32 (EUR 0.38 e xcl special items) Profitability strong for the quarter – operating profit up 39% year on year.okia Q1 2008 net sales of EUR 12.7 billion.

the results of No kia Group and Nokia Siemens Networks for the first quarter 2008 are not directly comparable to results for the first quarter 2007.2 4. 2008. Nokia results include those of Nokia Siemens Networks on a fully consolidated basis. Prior period Institute Of Business Studies & Research Pune (Satish P. our three mobile device business groups. is comprised of the former Nokia Networks and Siemens carrierrelated operations for fixed and mobile networks. Multimedia and Enterprise S olutions. Devices & Services.32 0. Nokia s first quarter 2007 in cluded the former Nokia Networks business group only. Accordingly.OKIA I THE FIRST QUARTER 2008* EUR million Operating margin (%) Devices & Servic es (%) Nokia Siemens Networks (%)*** et profit EPS. 2007.1 12. EUR Diluted*** 0.9 20. Nokia Siemens Networks. As of January 1.6 Q1/2008* Q1/2007** Change 12. a company jointly owned by No kia and Siemens.3 *As of April 1. Mobile Phones. and the supporting horizontal groups were replaced by an integrated bu siness segment.25 28% 1 222 979 25% -2.3 15.Goyal) Page 36     .

results for Nokia and its reportable segments have been regrouped for comparabil ity purposes according to the new reportable segments (on an unaudited basis).38 .EUR 100 million restructuring charge (impacting Nokia Siemens Networks ope rating profit) .Excluding the net impact of these special items.EUR 217 million loss due to transfer of Finnish pensio n liabilities (impacting Common Group Functions) .EUR 65 million gain due to transfer of Finnish pension liabilities (impacting Nokia Siemens Networks operating prof it) . diluted EPS wa s EUR 0. Institute Of Business Studies & Research Pune (Satish P.Goyal) Page 37 . *Q1 2008 special items: .EUR 81 million facilities imp airment and other charges related to closure of the Bochum site in Germany (impa cting Devices & Services operating profit) . .

surfing the web and more. Institute Of Business Studies & Research Pune (Satish P. Nokia will continue to deve lop affordable mobile devices that can contribute to increased economic growth a nd quality of life. mobile communications is converging with c omputing. pushing it forward with cutting-edge products and the development of open standards. At the same time. listening to music. That’s why N okia will never stop finding new ways of connecting people. making it possible for people to use handheld devices for filming video. digital imaging and the internet.okia’s future As mobile usage grows in the world’s emerging markets. Our very human technology is all about en hancing communication and exploring new ways to exchange information. Nokia’s success story is built on constant innovation. Nokia is shaping this converging industry. playing games.Goyal) Page 38 .

estimated at 100 million The total targeted population is ¡ ¡ . • Professionals and College students.Segmentation Strategy okia Market Demographic The profile for Nokia customer consists of the following geographic and Demograp hic: Demographic Male and female. this is the segment that makes up 80% of the Nokia mobile phone market according to the NOKIA India Ltd.Goyal) Page 39 ¡ Geographic Our immediate geographic target is rural India. Institute Of Business Studies & Research Pune (Satish P. • Ages 25-50.

PRODUCTIO U ITS JU E 2008 etworks Technology • China • Finland • India Mobile Devices and Enhancements • Brazil • China • Finland • Germany • Great Britain • Hungary • India • Mexico • Romania • S rea Institute Of Business Studies & Research Pune (Satish P.Goyal) Page 40 .

United States Stanford University. Finland University of Cambridge. United Kingdom University of Glasgow. Finland Massachusetts Institute of Technology . Unit ed Kingdom Institute Of Business Studies & Research Pune (Satish P. United States Tampere University of Technol ogy.Goyal) Page 41 .Research cooperation with universities Helsinki University of Technology.

Top Competitors Philips Electronics Panasonic Motorola Siemens Sony Corporation Sony Ericsson Sa msung Institute Of Business Studies & Research Pune (Satish P.Goyal) Page 42 .

Worldwide market shares of the companies 40.8% 8.00% 25.00% 10.2% Market shares of companies in India Institute Of Business Studies & Research Pune (Satish P.00% 0.3% 9.Goyal) Page 43 .5% Sony-Ericsson .00% 30.5.2% 15.00% 15.00% NOKIA Motorola Sams ung Siemens Sony Erisson okiaMotorola SamsungSiemens39.00% 35.00% 20.00% 5.

Goyal) Page 44 .-8% • Others--7% Institute Of Business Studies & Research Pune (Satish P.70% 60% 50% 40% 30% 20% 10% 0% Nokia Samsung Motarola Sony Erisson Others • NOKIA – • Samsung— • Motorola— 67% 12% 6% • Sony Erisson-.

Goyal) Page 45 .CHAPTER -4 RESEARCH METHODOLOGY Institute Of Business Studies & Research Pune (Satish P.

Do you use mobile Yes 68% No 32% Interpretation . Institute Of Business Studies & Research Pune (Satish P.70% 60% 50% 40% 30% 20% 10% 0% Yes No 68% 32% 1. 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.Above graph shows that 68% population of India use mobile nowad ays and there is still 32% people don’t use mobile.Goyal) Page 46 .

and the rest companies are too behind than Nokia .G Others Nokia Samsung 67% 12% Sony Ericsson .8% MotarolaL.Which company you prefer 70% 60% 50% 40% 30% 20% 10% 0% Nokia Samsung Sony Erisson Motorola L. Institute Of Business Studies & Research Pune (Satish P.2.G Others 7% 3% 3% Interpretation – This graph shows that out of hundred 67% consumers use Nokia mobi le . So Nokia company is ruli ng the Indian mobile market.Goyal) Page 47 .

Any specific reason Bluetooth FM – MP3/MP4 Camera 68% 75% 55% 60% Expandable memory -45% Interpretation. Institute Of Business Studies & Research Pune (Satish P. C amera and the Bluetooth which is available in Nokia handsets in just Rs 3100 onl y .Goyal) Page 48 .3.Most of the consumer using Nokia mobile for the quality of FM. No other company provide all three features in this amount.

Goyal) Page 49 . Institute Of Business Studies & Research Pune (Satish P.Which feature you want in new mobile GPRS – Navigator EDGE 68% 45% 20% Tri band/ Quad band .4. Very few asked for the EDGE and others featur es.5% Any other 13% Interpretation – According to this most of the consumers wants GPRS in their new h andset and Navigator feature also.

Most of the customer spends between Rs 1000-3000.Goyal) Page 50 . Institute Of Business Studies & Research Pune (Satish P.Budget for purchasing 1000-3000 3000-6000 6000-10000 10000-14000 75% 55% 38% 15% More than 14000 -9% Interpretation-Large number of population of India comes und er middle class.5. Some customer also more than Rs 5000 more features.

Goyal) Page 51 .CHAPTER -4 CONCLUSION Institute Of Business Studies & Research Pune (Satish P.

out reach to Nseries aficionados. Institute Of Business Studies & Research Pune (Satish P. This helps Nokia to know why the ma rket share of the company in India slip down and according to this only we can i ndentify the problem . honestly. what we have to We need to understand that we no longer control the conversation but are a part of it.Goyal) Page 52 . We t us because of this only we come do to beat our competitors customers in these conversations.I FERE CES The way corporations interact with their customers has changed drastically in th e past few years. We need to b and in a personal tone. support discussion boards. fully without being defensive. For a few years now. The era of mass marketing and mass communications is over. driving the conversations around the prod ucts and services they use. Therefore. Cus tomers have been increasingly taking up widespread social media tools on the web and turned into the message creators. ranging from blogs by people who work on S60. Nokia have been participating in the conversation with cust omers through various efforts. We need to listen care need to respect those who speak to us and abou to know where we are lacking . corporations must join e able to speak openly. and a site to download and discuss early state software from Nokia.

It’s not about the tech and specs. so that consume rs can refers to those sites before purchasing the products.Nokia’s most recent addition has been Nokia Conversations. and ideas behind the news. products. a site dedicated to the stories in and around the Nokia neighborhood. ] Institute Of Business Studies & Research Pune (Satish P. This is the way Nokia trying to put all the information on net . Our articles also add a mix of variou s elements.Goyal) Page 53 . Nokia Conversations h ighlights the best and most important conversations about and around Nokia. such as videos and photos. whet her it comes from inside Nokia or outside. but about the people.

the creation of a global best –seller . Nokia’s one winning result . and torch. regional differences and language requirements. calculator.the world’s fastest growing market for wireless handsets. This success has seen the company ‘s market share rise to more than 67% currently from 46% in March 2003 Nokia concentrated on India’s largely untapped rural market as well as the lower –en d urban market whose consumers eventually upgrade their phones. Institute Of Business Studies & Research Pune (Satish P.OBSERVATIO & FI DI G According to my observation Nokia ascendancy to leadership in Indian market has been swift and systematic . the low cost an d hardy Nokia 1110 that came with alarm clock.Goyal) Page 54 . Nokia penetrate the market’s wide range of customers preferences . incomes dispari ties. with the result that millions of people in thousands of towns and villages today use Nokia mobiles.

The mobile landscape has fundamentally shifted. In the following research. Nokia faces some serious challenges.SWOT A ALYSIS Nokia was the first to acknowledge fashion as an important element in mobile pho ne purchases. Strength Nokia has long established identity (1898). purchasing from and working with Nokia. we discuss No kia s strengths and challenges and provide advice for enterprises partnering wit h.Goyal) Page 55       ¡ ¡   ¡ . Nokia s tie to operators has kept it s products solidly in consumers view. Yet. and some of Nokia s strengths a nd core beliefs may no longer be valid. and it is solidly behind the push for Multimedia Messaging Service . etc.) Nokia has high penetration rate in Europe. which could become the first data service beyond Short Message Service to be d eemed successful. which m akes it difficult to compete against Nokia. especially in Northern coun tries (close to 100%) Nokia Consumer Electronics has access to innovative techno logy through group companies Institute Of Business Studies & Research Pune (Satish P. lots of available resources (financi al. There is a significant gap between Nokia and startups.

competitors are getting larger and integrating supply chains Compet itive advantage is gained through brand name (not technology or price) According to brand awareness studies. Nokia is recognized most of the time (in Germany. F rance.Goyal) Page 56 ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ . problem trying to find balance Corporate culture is highly technical and opera tional: So what if the customer does not understand! Lack of customer service pr iority Opportunities Potential for brand name sales in Europe and Asia-pacific Growing replacement an d supplement television market NCE has opportunity of using its technology to en hance user-friendliness Threats The market for color TVs and VCRs is a mature/saturated market. consumers are bu ying less often and only to replace older units (same trend for all countries ac ross Europe) Can’t differentiate based on technical advancement or price. competit ors too fast to match Impact of recent purchases (for example. Italy. completely different positi oning strategy depending on the country Too many brand names (100) in one market . Institu te Of Business Studies & Research Pune (Satish P. UK and Norway). Sony) and mergers is unknown. but not necessarily affiliated with consumer elect ronics such as TVs and VCRs Consumers buy televisions based on emotion .Weakness Lack of centralized marketing strategy and champion.

the remote control TV mouse is centered on technology and may frighten awa y potential customers who may perceive it as too technical. For exa mple.Goyal) Page 57 ¡ . In the past Nokia has relied heavily on its ability to innovate—it is a strong technology company. Institute Of Business Studies & Research Pune (Satish P.Consumers perceive value in features that are marketed as user-friendly. Lack of a marketing champion in corporate headquarte rs 2. A continued reliance on technology as the main marketing approach. Internal Management Challenge faces at least two challenges within NCE that he m ust address immediately: 1.

• Customers wants some fancy type or good looking mobiles.RECOMMA DATIO S CUSTOMERS RELATED: NOKIA products are used all over in India by the people of the every region. • The product line must be extended so that all the generation levels must be able to use it as per their taste.Goyal) Page 58 . The positive suggestions are as follows:• As the others companies like Samsung . • The main thing is the availability of the products at retail outlets. But now days the people want more values for their money worth. so the product packaging must be made attractive so that the young g eneration willing to accept it. Motorola and others offers products in go od packing. Institute Of Business Studies & Research Pune (Satish P. it means a better d esigned product with quality and they are most willing to buy the product freque ntly.

• The product packaging must be changed time to time. Institute Of Business Studies & Research Pune (Satish P. • 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 .Goyal) Page 59 .

• The advertisement must be done through Hoardings.RETAILERS RELATED: • There must be regular supply of the products at least 2-3 days a week. Radio Mirchi . • 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 motiv ate him. • The new outlets must be grabbed through providing some fruitful offers. Banners. Institute Of Business Studies & Research Pune (Satish P.Goyal) Page 60 . FM radio channels . Posters. • There should be a meeting every month for to solve distributors and retailers pr oblems.

com ews Paper The Economics Times Institute Of Business Studies & Research Pune (Satish P.Goyal) Page 61 .nokia.BIBLIOGRAPHY Books Marketing Management by Philip Kotler Websites www.google.com www.

Goyal) Page 62 .ANNEXTURE Institute Of Business Studies & Research Pune (Satish P.

Goyal) ..QUESTIO ame:……………………………………. Sex AIRE Date…………………………… Contact no……………………… Male Female 1.Which company you prefer okia Samsung Sony ericsson Motorola L.G Others ( ( ( ( ( ( ) ) ) ) ) ) Page 63 Institute Of Business Studies & Research Pune (Satish P.Occupation Student Service ( ( ) ) ( ( ) ) Self employed Others 2. Do you have mobile Yes o ( ( ) ) ( ( ) ) 3.

Budget for purchasing 1000-3000 3000-6000 6000-10000 10000-14000 More than 14000 ( ( ( ( ( ) ) ) ) ) Place: Institute Of Business Studies & Research Pune (Satish P.What features you are looking for GPRS EDGE Tri band/ Quad band avigator Any Others ( ( ( ( ( ) ) ) ) ) 6.4. Any specific reason Bluetooth F M ( ( ) ) MP3/MP4 Exapandable memory Camere ( ( ( ) ) ) 5.Goyal) Signature Page 64 .

THA K YOU Institute Of Business Studies & Research Pune (Satish P.Goyal) Page 65 .

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