Strategic Marketing Project on SMARTPHONE’s INDUSTRY REPORT


Submitted for the partial fulfillment of the requirement for the award Of





Department of Management




Survey is an excellent tool for learning an exploration no classroom routine can substitute which is possible while working in real situations application of the article knowledge to practical situations is the bonanzas of this survey. Without a proper combination of inspection and perspiration, it’s not easy to achieve anything. There is always a sense of gratitude, which we express to other for the help and the needy service they render during the development of this project. First of all we wish to express my profound gratitude & sincere thanks to my esteemed learned Director who allowed me to conduct the survey. We would like to thank my lect. Mrs. SMITA SINGH who has always there to help and guide me when we needed help. His perceptive criticism kept me working to make the project more full proof. We thankful to her for her encouraging & enriching experience for me. We very thankful to him for all the addition & enhancement done to us. No words can adequately express our overriding debt of gratitude to my parents whose support help me in all the way above all I shall thank all my friends….!


1.1. Overview of Industry as a whole 1.2. Profile of the Organization 1.3. Problems of the Organization 1.4. Competition Information 1.5. S.W.O.T Analysis of the Organization 3 8

PAGE NO. 3-22

16 17 22

2.1. Significance 2.2. Managerial usefulness of the study 2.3. Objectives 2.4. Scope of the Study 2.5. Research Methodology 25 26 26












In today's world, most people communicate through the use cellular phones. It's hard to believe that fifteen years ago cell phones were a rarity. Below is a history chronicling the dawn of the cell phone to its current state. 1843-Faraday exposed his great advances of nineteenth-century science and technology and his discoveries have had an incalculable effect on technical development toward cellular phone development. 1865 - Dr. Mahlon Loomis of Virginia, a dentist, may have been the first person to communicate through wireless via the atmosphere. Between 1866 and 1873 he transmitted telegraphic messages at a distance of 18 miles between the tops of Coshocton and Beorse Deer Mountains, Virginia. 1973 - Dr Martin Cooper is considered the inventor of the first portable handset. Dr. Cooper, former general manager for the systems division at Motorola, and the first person to make a call on a portable cellular phone. 1973 - Dr. Cooper set up a base station in New York with the first working prototype of a cellular telephone, the Motorola Dynastic. Mr. Cooper and Motorola took the phone technology to New York to show the public. 1977 - Cell phones go public. Public cell phone testing began. The city of Chicago was here the first trials began with 2000 customers and eventually other cell phone trials appeared in the Washington D.C. and Baltimore area. Japan began testing cellular phone service in 1979.


1988 - This year changed many of the technologies that had become typical in the past. The Cellular Technology Industry Association (CTIA) was developed to lay down practical goals for cellular phone providers. According to the Cellular Telecommunications Industry Association, today there are more than 60 million customers with cellular phones, even though wireless service was just invented nearly 50 years ago. The cellular business was a $3 million market 25 years ago and has grown increasingly to close to a $30 billion per year industry

About the Industry
The cell phone industry has evolved greatly in the past 10 years. 10 years ago only the rich could afford cell phones, and they looked like boxes more than some thing that could fit in your pocket. “Today, more people have cell phones than fixed telephone lines, both in the United States and internationally. There are more than one billion cell phone users worldwide." Cell phones have now become a part of everyday life. Without cell phones we would be lost in our high tech world. Americans spend 7 hours a month on cell phones. The effects of new technology have had positive effects in school, too. Cell phone use is getting more and popular. "Some 85 million U.S. residents—30 percent of the population—have joined the mobile-phone revolution.” There are already 1 billion cell phone users worldwide. Between 2010 and 2020 it will be hard to find a person with out a cell phone.

They are now bought for the fact that they are used in emergency situations. “Nearly 156,000 wireless emergency service calls were made every day—about 108 calls per minute.” Parents are now buying them for their children so they know where they are all the time. Every company has their different Marketing Strategies. Now I am going to discuss the Marketing strategies of Nokia.


India’s Tele-density in January 2008 neared 12% with the subscriber base nearing the 130mn mark. During January 2008, record 5mn subscribers were added as against 4.92mn subscribers in December 2007. This strong growth could be attributed to lifetime validity cards launched by almost all operators. During the first 10 months of FY06, 31.41mn subscribers have been added. In the fixed segment, a total of 0.28mn subscribers were added during January 2008, taking the subscriber base of fixed line services to 49.21mn. In the mobile segment, total additions during the month summed up to 4.69mn with highest ever GSM additions of 3.52mn and CDMA additions of 1.17mn. During the first 10 months of FY08, 28.39mn subscribers have been added Telecom Industry in India


Nokia Motorola Siemens Sony Ericsson Samsung Philips Others

60% 10% 02% 03% 10% 10% 05%


60% 50% 40% 30% 20% 10% 0%

60% Nokia Motorola Siemens Sony Ericsson Samsung Philips Others

10% 2% 3%

10% 10% 5%



Nokia's history starts in 1865, Due to the European industrialization and the growing consumption of paper and cardboard Nokia soon became successful. Nokia’s Cable Work's Electronics department started to conduct research into semiconductor technology in the 1960´s. This was the beginning of Nokia’s journey into telecommunications.
Nokia today 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, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations. The company includes four business groups; Mobile Phones; Multimedia; Networks and Enterprise Solutions. In this project I will be focusing only on the mobile Phone business of Nokia in India.

Nokia Corporation engages in the manufacture of mobile devices and mobile networks. It also provides equipment, solutions, and services for network operators, service providers, and corporations. The company operates in four segments: Mobile Phones, Multimedia, Enterprise Solutions, and Networks. The Mobile Phones segment offers mobile phones and devices based on GSM/EDGE, 3G/WCDMA, and CDMA cellular technologies. The Multimedia segment

enables to create, access, and share multimedia in the form of advanced mobile multimedia computers and applications with connectivity over multiple technology standards. The Enterprise Solutions segment offers various products and solutions, including enterprise-grade mobile devices, underlying security infrastructure, software, and services for businesses and institutions. The Networks segment provides network infrastructure, communications, and networks service platforms, as well as professional services to operators and service providers. It focuses on the GSM family of radio technologies; networks with Internet Protocol and multi access capabilities; and professional services. The company also develops mobile WiMAX solutions. Nokia sells its products to operators, distributors, independent retailers, and corporate customers. It has its operations in Europe, the Middle East, Africa, China, the Asia-Pacific, North America, and Latin America. The company was founded in 1865 and is based in Espoo, Finland.

Vision: Life Goes Mobile
 Ten years ago, Nokia had a vision that seemed revolutionary for the times: Voice Goes Mobile! As history shows, this vision became reality in an incredibly short amount of time. With more than 1.6 billion mobile phone subscriptions globally – and more mobile phones than fixed-line phones in use – shows that mobility has transformed the way people live their lives

Business Mission: Connecting People
 By connecting people, they help fulfill a fundamental human need for social connections and contact. Nokia builds bridges between people – both when they are far apart and face-to-face – and also bridges the gap between people and the information they need.


As a market leader, the best contribution we can make to the global community is to conduct our business in a responsible way. This belief drives our commitment to creating ethically sound policies and principles that guide us in our work. Our Corporate Responsibility (CR) agenda is framed around the Nokia Values and is carried out in all aspects of our work to ensure customer satisfaction and respect, and also to assist us in embracing renewal and striving for achievement. By striving to include all members of Nokia's community in this process, we are demonstrating our overall commitment to the belief that responsibility is everybody's business. In this section you will find information about our strategy and approach, navigating the links above will give you more concrete information on our Corporate Responsibility activities.

Our vision is a world where everyone is connected. With mobile subscriptions about to reach four billion, we are closer to our vision than anyone could have imagined just a few years ago. Our business benefits people, communities and the environment in new and exciting ways. As our business expands, so do our responsibilities. This sense of corporate responsibility (CR) is a fundamental part of who we are. Considering the wider impact of our actions is embedded in the Nokia Values, which guide our behavior, and in the Nokia Code of Conduct, which gives guidance to our everyday work. Global challenges such as climate change and poverty concern us all. As a business that affects the lives of billions around the world, Nokia is in a key position to offer solutions to these challenges. We bring the benefits of mobile technology to more people in ways that reflect our values and our responsibilities.

Our impacts
Nokia is the world's number one manufacturer of mobile devices by market share and a leader in the converging Internet and communications industries. We make a wide range of devices for all major consumer segments and offer Internet services that enable people to experience music, maps, media, messaging and games. We also provide comprehensive digital map information through NAVTEQ and equipment, solutions and services for communications networks through Nokia Siemens Networks. In 2008, Nokia's net sales were EUR 50.7 billion and operating profit was EUR 5.0 billion. At the end of 2008, we employed more than 128,445 people; had production


facilities for mobile devices and network infrastructure around the world; sales in more than 150 countries; and a global network of sales, customer service and other operational units.

Corporate responsibility
Corporate responsibility is a fundamental element in Nokia’s business, brand and culture. Nokia aims to set the standards for the industry through initiatives that not only make a positive impact, but also make good business sense. The Nokia Code of Conduct commits us to uphold high ethical principles in everything we do. We respect the principles set in Universal Declaration of Human Rights and by the International Labor Organization and the United Nations Global Compact. Communications is a relatively "clean’ industry. It is not a high energy user, does not generate substantial pollution, and does not endanger people or communities. But a responsible business needs to address its impacts and aim to make a positive contribution wherever possible. Environmental issues are our main priority. Climate change is a serious threat which requires everyone to contribute to building a low carbon economy. We believe that strong, early action is necessary and that we have an opportunity to make a contribution to tackling climate change beyond the impact of our operations and our products. Our environmental strategy sees Nokia among the world’s leading companies for all aspects of environmental performance. We have three priorities: energy efficiency, managing substances in our products, and take-back and recycling. We are also focusing on developing mobile services to promote more sustainable lifestyles. Reflecting this prioritisiation, our environmental data can be found in its own section here. We have also set high ethical standards for our supply chain and our own factories. We seek to provide consumers with accessible high quality products that meet their needs and to trade with our customers responsibly. Above all, we aim to make a positive contribution to society at the local and global level. Please refer to our key Issues for information on how we identify our most important impacts.

Our values
The Nokia Way and Values: A flat, networked organization and speed and flexibility in decisionmaking characterize the Nokia Way of working. Equal opportunities and openness towards people and new ideas are also key elements we want to nourish. Nokia is straightforward when dealing with customers and suppliers, and we always looks for innovative ways of creating and introducing products and solutions to the market. We provide individuals with a platform for personal growth in a challenging 15

environment with a clear vision, goals and shared management principles - the Nokia Way. The Nokia Way brings together talented individuals who share these principles, and therefore share success. The values of our company make us different. They provide a sense of direction for consistent behaviour as employees and citizens of the world, and in our quest to become more of an internet company. Through extensive employee engagement, we have renewed our values to reflect our business and changing environment. They act as a foundation for our evolving culture and are the basis of our operational mode. Living up to our values every day is our shared philosophy.

Engaging you: For us, ‘engaging you’ incorporates the ‘customer satisfaction’ value and deals with engaging all our stakeholders, including employees, in what Nokia stands for in the world.

Achieving together: ‘Achieving together’ is more than collaboration and partnership. As well as trust, it involves sharing, having the right mind-set and working in formal and informal networks.

Passion for innovation: ‘Passion for innovation’ is based on a desire we have to live our dreams, to find courage and make the leap into the future through innovation in technology, ways of working and through understanding the world around us.

Very human: Being ‘very human’ encompasses what we offer customers, how we do business and the impact of our actions and behavior on people and the environment. It is about being very human in the world - making things simple, respecting and caring. In short, our desire is to be a very human company. For more information on the Nokia Way and Nokia Values, go to Nokia as an employer within careers.


As approximately one in three phones in use is a Nokia phone, it’s safe to say our products influence the lives of hundreds of millions of people. Maximizing the benefits of mobile communication and minimizing potentially negative effects requires commitment from governments, civil society, and the business sector. However, we recognize that as a market leader with global operations, our potential impact, and therefore our responsibility, is great. From a social growth and economic development perspective, we acknowledge our impact and responsibilities throughout our value chain: in our sourcing, product design, manufacturing, employee well-being, business partnerships, recycling, community involvement, and communications. Through our product lifecycle we respond to various environmental needs. Through employee relations, supply-chain management, and consumer offerings we aim to have a positive social influence. Our overall response to our stakeholders is to produce high-quality, safe products while upholding the law, protecting the environment, and following sound best practices. It is an expectation we strive to meet.

Nokia India

Nokia has played a pioneering role in the growth of cellular technology in India, starting with the firstever cellular call a decade ago, made on a Nokia mobile phone over a Nokia-deployed network. Nokia started its India operations in 1995, and presently operates out of offices in New Delhi, Mumbai, Kolkata, Jaipur, Lucknow, Chennai, Bangalore, Hyderabad, Pune and Ahmedabad. The Indian operations comprise


of the handsets business; R&D facilities in Bangalore, Hyderabad and Mumbai; a manufacturing plant in Chennai and a Design Studio in Bangalore.

Over the years, the company has grown manifold with its manpower strength increasing from 450 people in the year 2004 to over 15000 employees in March 2008 (including Nokia Siemens Networks). Today, India holds the distinction of being the second largest market for the company globally.

R & D centers
Nokia has three Research & Development centers in India, based in Hyderabad, Bangalore and Mumbai. These R&D hubs are staffed by engineers who are working on next-generation packet-switched mobile technologies and communications solutions to enhance corporate productivity. The Center in Bangalore, the biggest R&D site in the country comprises S60 Software Organization, Common Technologies, Next Generation now called Maemo Software, Productization and Software & Services.

Today, Nokia is the leader in mobile phone technology, although they have other subsidiaries, namely ‘Nokia Networks’ and ‘Nokia Ventures Organization’, which, together with Nokia Mobile Phones, form ‘Nokia Group’. Nokia also launched ‘Vertu Ltd.’ in 2009, the world’s first luxury mobile phone company, selling gold and platinum phones at exorbitant prices. Last year, Nokia has once again retained its top position in the market. It enjoys a market share of 32.6%, followed by Samsung (because of their CDMA phones) with 29.6% and LG with 22.8% (due to their tie-ups with Reliance). Motorola has 5.5% market share, with Panasonic at 3.8%, Sony Ericsson with 2.6% and Siemens with 1.4%; they are the fourth, fifth, sixth and seventh largest players in the domestic handset market. In the GSM handset segment, Nokia has 58% market share, with Samsung at 14.7%, Motorola at 14.1%, and Sony Ericsson at 7.1%. Thus, Nokia has a larger presence in the GSM market than the CDMA market.

Pie chart showing the market share in the GSM mobile phone market

Motorola 14.1%

Sony Ericsson 7.1%

Samsung 14.7%

Nokia 58.4%



The prominent brands in the Indian cellular phone industry are Nokia, Sony Ericsson, Motorola, and Samsung. Nokia has the single largest market share in India of 60%. I have focused my research on Nokia and also on one of its major competitor; Sony Ericsson since these are very prominent players in the Indian market. Nokia has saturated the urban market including the B and C class cities and is now targeting potentially untapped markets. Sony Ericsson on the other hand has chosen to focus its energies on the B and C class cities since which it had not ventured into so far.

The following are the major problems faced by Nokia in the Indian cellular market:• Identify cause of problems faced Nokia to enable the management to train the employees in handling the problems as well as solving the problem in a satisfactory manner.

Segregate identified problems of Nokia into problems requiring staff development action such as training and into problems requiring other management actions, so that these problems are accurately addressed.

Prioritize training actions in accordance to where the training need is more urgent.

Marketing Strategy For Nokia


Marketing Strategy for Nokia

For this project I have been instructed to come up with a marketing strategy for an existing company/product I have chosen to do Nokia communications, particularly the mobile phone sector of Nokia's business. To do this properly I will need to:

* Appropriately identify, collect and use primary and secondary data that is relevant to the marketing strategy of Nokia.

* Produce a clear analysis of the external influences affecting the development of a marketing strategy.

* Complete a realistic rationale for the development of a coherent marketing mix for Nokia communications.

* Show a full understanding of a marketing strategy for Nokia with a clear understanding of marketing principles.

* Produce a full, well-balanced marketing strategy that reflects appropriate use of marketing models and tools.

Introducing the product

Nokia is a communications based company, which focuses on mobile telephone technology. When mobile phones first became available on the market the models were very basic with the best technology being SMS messaging (sending written "text messages" from one phone to another).


Then the next advance in technology was being able to put different faces on your phone (different style covers for the front and back of your mobile device) and after that the technological advances have come thick and fast, with advances such as:

* MMS * WAP (internet) * Polyphonic ringtones * Predictive SMS (where the phone will finish off a word for you if it can guess what you are typing) * Camera phones and * Video recorders

Competition in the market -------------------------

With all this technology available in the communications market it is obvious that Nokia will have lots of competition, they include: * Sony Ericsson * Samsung * Motorola * Siemens * Panasonic * NEG * Sagem and * Toplux 22

With all of these competitors in the market Nokia must keep ahead of the game...




⇒ Is a dominant player in the smart phone market via its majority ownership of Symbian and its proprietary Series 60 user interface which are projected to represent majority of the 100M smart phones sold in the next 4 years. ⇒ 33% market share still the largest cell phone vendor by far, with double the market share of nearest competitor ⇒ Size should enable Nokia to amortize R&D costs and to get cost advantages Brand position: probably one of the top 20 brands in the world

⇒ The N-gage is considered a flop. ⇒ Being the market leader and its increase role in Symbian is giving Nokia a bad image, much like Microsoft in the PC industry. ⇒ Slow to adopt new ways of thinking: good examples are clamshell phones which are preferred by many customers. Nokia was reluctant to produce a clamshell until this year, when it launched its first model.

⇒ Increase their presence in the CDMA market, which they are just entering, as well as 3G and Edge ⇒ New growth markets where cell phone adoption still has room to go, including India and other countries. ⇒ Leverage its infrastructure business to get preference and a stronger position with carriers

⇒ Late in the game in 3G creates a risk to be displaced by leaders like Motorola, LG, NEC and others. ⇒ Asian OEMs who are entering the market very aggressively (TCL, nGo Bird) ⇒ ODMs (HTC and others) enabling carriers to leverage their customer power bypassing the handset vendor. Operators want to lessen their dependency on handset vendors and the dominance of Nokia. Orange, O2, and many other operators globally are selling their own brand of phones.





The present study is quite significant because it discusses values cultures vision, mission and strategies of Nokia and its competitors .Nokia and its competitors to make comparative analysis between these companies it identifies the current positions of the company . The report finds that high quality and advanced technologies are important factor for Nokia’s success moreover they are concentrating on ne area that is telecommunication while Samsung is indulging in many areas Moreover the other finding is that Nokia’s financial position is surpassing its competitors in the telecommunications report concludes that Nokia has established its leadership in telecom companies Samsung is gaining its area in style point of view or advanced features in their products.

Managerial usefulness of the study is to analyse the comparative study between Nokia and competitors.Compare between there market strategies and to know about there vision mission and there future plans the respondents were discussing the questions prior to reply thus there could be biasness different promotional schemes were not known by the respondents. The customer analysis of this coursework highlighted that the upper segment of the population are the major consumers of mobile phones extensive research was conducted into yhe strategies being implemented for the rural market .. Nokia has the single largest market share in India of 60%and the we have noticed that Nokia is the only competitor of Samsung but Nokia’s major competitor is Sony Ericson since these are very prominent players in the market


• • • • To know about the cellular industries. To help consumers to know about the companies their products and the future over comings To know about the brand Nokia and the Samsung their products, market strategies, values mission adopted in the cellular companies. To know consumer behavior towards Nokia and Samsung.

As learning is the human activity and is as natural ,as breathing despite of the fact the learning is all pervasive in our lives, psychologists do not agree on how learning takes place .how individuals learn s a matter of interest to marketers they want to teach consumers in their roles as their roles as consumers. They want consumers to learn about their products product attributes, potential consumers benefit, how to use, maintain or even dispose of the product and the new ways of behaving that will satisfy not only the consumer needs, but the marketer’s objectives. The scope our study restricts itself to the analysis of CONSUMER BEHAVIOR, perception of Nokia and its competitors.



• • •

The findings of the study will be based on opinion of the respondents, which may be based. The study is confined to sahibabad residential areas Lack of time and finance may prevent from carrying out in depth study.

Research comprise defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating Hypothesis. In short, the search for Knowledge through Objective and Systematic method of finding solutions to a problem is Research.

Research Design
Type of Research: - Descriptive research


Descriptive research includes Surveys and fact-finding enquiries of different kinds. what has happened or what is happening.

The main

characteristic of this method is that the researcher has no control over the variables; he can only report

Data Source:
 There are two types of data.

Primary Data:
 The data was mainly obtained from the people feedback on the questionnaire which was distributed by the group members at various places

Secondary Data:
 The secondary data was obtained from various journals, internet, magazines etc.

Research Instruments
Selected instrument for Data Collection for Survey is Questionnaire.

Sample Design
Who is to be surveyed? The marketing researcher must define the target population that will be sampled.

The sample Unit taken by me; General public of different age group, different gender and different professions.

Extent:Where the survey should be carried out?


I have covered entire residential area of Delhi city for the survey

Time Frame:When the survey should be conducted? I conducted my survey for 1week

Sampling Frame:The source from which the sample is drawn

Sampling Technique: How should the respondent be chosen? In the Project sampling is done on basis of Probability sampling. Among the probability sampling design the sampling design chosen is stratified random sampling. Because in this survey I had stratified the sample in different age group, different gender and different profession

Sample Size/ Population Size: - How many people should be surveyed? My sample size is 50




EXECUTIVE SUMMARY Nokia Corporation is a Finnish multinational communications and information technology corporation headquartered in Keilaniemi, Espoo, Finland. Its principal products are mobile telephones and portable IT devices.Nokia is the first company to launch mobile phones in India and became one of the most trustable brands in India. Though nokia is market leader in the overall mobile handset industry but due to entry of Samsung, HTC and other local players in android based smartphone and the lack of Nokia’s innovation in the smartphone segment they started on a downward trend and started losing their market share in the Smartphone segment because of this it’s competitor Samsung market share is increasing every month where Nokia’s overall market share and smartphone Market share is also declining every month . Through this project we were able to understand the current market scenario of Nokia Smartphones and suggest them with strategies to help them revive the brand and help them regain their market share by identify the gaps and limitations in their current strategies. To understand the current market scenario of Nokia, we did analysis like Industry Analysis, STP Analysis, PEST analysis, GAP analysis. We also studied the marketing mix of Nokia Smartphone in detail and identified those features that create value. We identified the critical success factors and also the core competencies. We also conducted two surveys Direct mail survey – To understand the customer trends, preferences when they are buying a Smartphone and product features that influence their decision making Personal survey – To understand the brand-price trade off Based on our findings from the analysis and research, we recommended a strategy where Nokia Should involve in more promotional activity to reach the mass and to eliminate the wrong perception about nokia smart phones performance and Should involve in the IMC activity based upon Educating the consumers about advantage of Smartphones and its purpose ,how smartphone can increase their productivity and how it makes the user smarter than others.

NOKIA: Nokia Corporation is a Finnish multinational communications and information technology corporation headquartered in Keilaniemi, Espoo, Finland. Its principal products are mobile telephones and portable IT devices. It also offers Internet services including applications, games, music, maps, media and messaging through its Ovi platform, and free-of-charge digital map information and navigation services through its wholly owned subsidiary Navteq. Nokia has a joint venture with Siemens, Nokia Siemens Networks, which provides telecommunications network equipment and services. Nokia has around 122,000 employees across 120 countries, sales in more than 150 countries and annual revenues of around €38 billion. As of 2012 it is the world's second-largest mobile phone maker by unit sales (after Samsung), with a global market share of 22.5% in the first quarter Nokia is a public limited-liability company listed on the Helsinki, Frankfurt, and New York stock exchanges. It is the world's 143rd-largest company measured by 2011 revenues according to the Fortune Global 500. Nokia was the world's largest vendor of mobile phones from 1998 to 2012.However, over the past five years it has suffered declining market share as a result of the growing use of Smartphones from other vendors, principally the Apple iPhone and devices running on Google's Android operating system. As a result, its share price has fallen from a high of US$40 in 2007 to under US$3 in 2012.[9][10] Since February 2011, Nokia has had a strategic partnership with Microsoft, as part of which all Nokia Smartphones will incorporate Microsoft's Windows Phone operating system (replacing Symbian). Nokia unveiled its first Windows Phone handsets, the Lumia 710 and 800, in October 2011. First Mobile Phone: The technologies that preceded modern cellular mobile telephony systems were the various "0G" pre-cellular mobile radio telephony standards. Nokia had been producing commercial and some military mobile radio communications technology since the 1960s, although this part of the

company was sold some time before the later company rationalization. Since 1964, Nokia had developed VHF radio simultaneously with Salora Oy. In 1966, Nokia and Salora started developing the ARP standard (which stands for Autoradiopuhelin or car radio phone in English),

a car-based mobile radio telephony system and the first commercially operated public mobile phone network in Finland. It went online in 1971 and offered 100% coverage in 1978. In 1979, the merger of Nokia and Salora resulted in the establishment of Mobira Oy. Mobira began developing mobile phones for the NMT (Nordic Mobile Telephony) network standard, the first-generation, first fully automatic cellular phone system that went online in 1981. In 1982, Mobira introduced its first car phone, the Mobira Senator for NMT-450 networks. Nokia bought Salora Oy in 1984 and now owning 100% of the company, changed the company's telecommunications branch name to Nokia-Mobira Oy. The Mobira Talkman, launched in 1984, was one of the world's first transportable phones. In 1987, Nokia introduced one of the world's first handheld phones, the Mobira Cityman 900 for NMT-900 networks (which, compared to NMT-450, offered a better signal, yet a shorter roam). While the Mobira Senator of 1982 had weighed 9.8 kg (22 lb) and the Talkman just under 5 kg (11 lb), the Mobira Cityman weighed only 800 g (28 oz) with the battery and had a price tag of 24,000 Finnish marks (approximately €4,560).Despite the high price, the first phones were almost snatched from the sales assistants' hands. Initially, the mobile phone was a "yuppie" product and a status symbol. Nokia's mobile phones got a big publicity boost in 1987, when Soviet leader Mikhail Gorbachev was pictured using a Mobira Cityman to make a call from Helsinki to his communications minister in Moscow. This led to the phone's nickname of the "Gorba". In 1988, Jorma Nieminen, resigning from the post of CEO of the mobile phone unit, along with two other employees from the unit, started a notable mobile phone company of their own, Benefon Oy (since renamed to GeoSentric). One year later, Nokia-Mobira Oy became Nokia Mobile Phones.


SYMBIAN OS: Symbian is a mobile operating system (OS) and computing platform designed for Smartphones and currently maintained by Accenture. The Symbian platform is the successor to Symbian OS and Nokia Series 60; unlike Symbian OS, which needed an additional user interface system, Symbian includes a user interface component based on S60 5th Edition. The latest version, Symbian^3, was officially released in Q4 2010, first used in the Nokia N8. In May 2011 an update, Symbian Anna, was officially announced, followed by Nokia Belle (previously Symbian Belle) in August 2011. Symbian OS was originally developed by Symbian Ltd. It is a descendant of Psion's EPOC and runs exclusively on ARM processors, although an unreleased x86 port existed. Some estimates

indicate that the number of mobile devices shipped with the Symbian OS up to the end of Q2 2010 is 385 million. By 5 April 2011, Nokia released Symbian under a new license and converted to a proprietary model as opposed to an open source project.

WINDOWS OS: On 11 February 2011, Nokia announced that it would migrate from Symbian to Microsoft's Windows Phone OS. Nokia CEO Stephen Elop announced Nokia's first Windows phones at Nokia World 2011: the Lumia 800 and Lumia 710. These phones were launched on 14 November 2011. On 22 June 2011 Nokia made an agreement with Accenture for an outsourcing program. Accenture will provide Symbian-based software development and support services to Nokia through 2016; about 2,800 Nokia employees became Accenture employees as of October 2011. The transfer was completed on 30 September 2011. Windows Mobile is a mobile operating system developed by Microsoft for Smartphones and Pocket PCs. Windows Mobile is the predecessor of Windows Phone, but they are not part of the same continuum of operating system development and Windows Mobile cannot be updated to Windows Phone. In February 2010, Microsoft announced Windows Phone to supersede Windows Mobile, with the new operating system incompatible with Windows Mobile devices and software. As a result, Windows Mobile has been discontinued. The final version of Windows Mobile, released after the announcement of Windows Phone, was 6.5.5. Microsoft has stated that the Windows Phone operating system is incompatible with devices designed for Windows Mobile as "Windows Mobile 6.x devices do not meet Windows Phone hardware requirements designed to ensure a consistent user and developer experience",and software designed for Windows Mobile is incompatible with the new operating system. And the current operating system used for nokia lumia series is WINDOWS 7.5 and 8. Smartphone: A smartphone is a mobile phone built on a mobile operating system, with more advanced computing capability and connectivity than a feature phone. The first Smartphones combined the functions of a personal digital assistant (PDA) with a mobile phone. Later models added the

functionality of portable media players, low-end compact digital cameras, pocket video cameras, and GPS navigation units to form one multi-use device. Modern Smartphones also include highresolution touchscreens and web browsers that display standard web pages as well as mobileoptimized sites. High-speed data access is provided by Wi-Fi and mobile broadband. The most common mobile operating systems (OS) used by modern Smartphones include Google's Android, Apple's iOS, Nokia's Symbian, RIM's BlackBerry OS, Samsung's Bada, Microsoft's Windows Phone, Hewlett-Packard's webOS, and embedded Linux distributions such as Maemo and MeeGo. Fall in market share but still a Global leader: A decade back, Nokia’s leadership position in India and globally was almost unassailable. But riding on the success of Android-based phones, South Korean handset maker Samsung Electronics Co. Ltd has severely dented the Finnish company’s fortunes. Even though Nokia is the market leader in Indian Mobile phone market, its dominance is under threat from other MNCs like Samsung and Indian companies like Micromax, Karbonn, Lava etc. Nokia had 49.3% market share in 2010.The Korean mobile phone company Samsung is quickly growing its market share during the last few years. It reported a revenue growth of 21.7% during last year as against Nokia’s flat revenue growth. Nokia’s revenue during 2011 was Rs 12929 cr against Rs 12900 cr during the previous year. The major reason for this low growth is due to absence of product ranges like dual Sims, which are very popular in India. It is estimated that nearly 50% of the handsets sold in India are dual sim phones, which were not produced by Nokia till recently. Indians didn't go to buy a mobile phone. They went to buy a Nokia. Now many of them don't. Increasingly, Indians go to buy a Nokia and come out with a BlackBerry, Samsung or Micromax. Samsung, however, lags behind Nokia in unit shipments (volumes) in India. In the overall mobile phone space in India, Nokia retained leadership with a 30% market share in the October-December 2011 quarter, with Samsung following at 14.4%, according to shipment numbers by Cyber Media Research. But the research firm also reveals that Nokia has been


steadily losing market share in India, dropping over the years: 2008 (55%), 2009 (54%), 2010 (49.3%), 2011 (39%). NOKIA fall in Smartphone segment: This year, not only did Samsung break Nokia’s 14-year record of being the world’s largest handset maker by overtaking it in terms of unit shipments in the January-March quarter, according to a report in April by research firm Strategy Analytics, it is also threatening to upstage Nokia in the overall Indian mobile phone market. It has already toppled Nokia in the Indian smartphone segment. Research firm Convergence Catalyst pegs Samsung’s share in India in the January-March quarter at 45%, way above Nokia’s 25-30%. It estimates 9-9.5 million Smartphones to have been sold in India in 2011. It is in this chunky and profitable category that Samsung has carved out a comfortable space for itself. GfK-Nielsen puts Samsung's share at over 43 per cent of the smartphone market in March's volume sales compared to the 29 per cent of Nokia. This is in line with the trend of the last two years. While Samsung grew its share in Smartphones to 26.7 per cent in 2011 from 4.9 per cent the year before, Nokia saw its share shrink from 83.5 per cent 46.1 per cent in 2011.

Vision Statement: Nokia wants to create a new world; to transform a big planet to a small village. Their vision is to create, build, and encourage people from all countries to communicate with each other in order to create a world where everybody is connected.

Mission: To become market leader in smart phone category by end of 2013.

Objectives: Increase the market share of Nokia smart phones fromo25.5% to 35.5% by end 2013.

Objectives of the study: The main objective of the study is to help Nokia Smartphone’s by achieve the mission by providing marketing strategies and a tactical plan for Nokia by identifying the gaps in their current strategies.

INDUSTRY ANALYSIS Structure of Mobile Market in INDIA The mobile phones industry in India has been an attractive destination for the global as well as domestic mobile phone manufacturers from the very start. It was thought in the beginning that the mobile phones in India will serve the growing communication needs in the country. Considering the growth of the industry in India, it can be said that the estimated results have been achieved beyond expectations. Apart from mobile phone manufacturers, the industry has also seen the growth of mobile phone carriers, mobile phone application developers, mobile phone content providers and so on. It is expected that the industry is going to keep on growing to attain the anticipated goals at a fast rate. There are two big reasons for the rapid growth of mobile phones industry in India. First, there is a huge market for entry-level mobile phones. And second, the high-end mobile phone buyers too exist in the Indian mobile phone market. These reasons encourage the top mobile phone manufacturers to experiment their products from different categories in the Indian market. Potential growth rate: Globally, Smartphone Market grew 61% in 2011 with total shipment volumes reaching 491.4 million units in 2011, a whopping increase of over 304.7 million units in 2010! Smartphones are replacing features phones at much faster rate than expected, thanks to consistently falling pricing. In comparison to Global Smartphone Market, growth in India is expected to be even higher – According to “India Smartphone Outlook for 2012” report released by Convergence Catalyst,


India will witness 100% growth in 2012, with total smartphone shipments expected to reach 20 million units. Ease of entry of new firms into industry: Entry Barriers: A large number of barriers prevent entrance into the smart phone industry. Among the largest are:
• • • • •

fixed costs – necessary research and development Reputation of incumbent firms – people buy phones from companies they trust Networking – people buy phones that their friends and acquaintances use switching costs – switching phones and service costs money and time to users Differentiation – limited ability to differentiate from other phones

On other end Industry estimates put the handset market at Rs 40,000 crore a year, which will expand to Rs 50,000 crore next year. Every year 120 million handsets of 58 brands are sold. Total population of India is 1.27 billion in which 97crore people were using mobile phones, out of which only 2.7 Cr users are using Smartphone’s. Smartphone industry in India is growing at the rate of 87% year of year (source: Cyber media research, INDIA). Competitors in India Smartphone industry is less when compared to other Emerging markets like china. India, will record compound annual growth rates above 30% through 2014. Understanding local conditions will be vital for operators, Smartphone vendors and OS developers. A McKinsey estimate puts the number of Smartphone’s in India at 450 million in 2015 So there is high level of opportunity for new firms to grow in Smartphone industry in India if their product is more innovative and lower price than the current players in the Industry. Intensity of competition among firms: With new players coming in, the intensity of competition in the industry has increased, especially over the last three years. The market share of the mobile companies reflects the fragmented nature of the industry, with as more than 10 players in Smartphone industry.

Degree of product substitutability: The degree of product substitutability for Smartphone is high Substitute product for Smartphone may be normal 2 and 2.5G or feature phones , TABLETS (TAB’s) and laptops depends on price and features.

Dependence of complementary or supporting products and services: For smart phones, any application that works well with the phones is a Complement. Nokia owns a large number of such applications Some complements include: • • • • • • • • Email Data manipulation applications (documents) Maps and GPS Organization applications Other internet applications and essentially any software available on phones Music and other media content Computers (in order to install and manipulate software on the phone) Products involved in travel and mobility

Degree of bargaining power: Smart Phone firms have relatively weak bargaining power. Some reasons include: • • • • substitutes – many substitutes Elastic demand – smart phones are not a necessary product; hence there is Elastic demand for them. Information – customers tend to research capabilities of smart phones due to price and high reliance on the product Differentiation – limited ability to differentiate from other competitors


Degree of Technological Sophistication in industry: Innovation in the Smartphone market is moving at such an incredibly faster rate that original equipment manufacturers are releasing new devices on regular intervals. And each new Smartphone is more technologically advanced than the last. The recent technology advancement in Smartphone industries are NFC, DLNA, 4G, AI, etc… Rate of Innovation in industry: The rate of innovation in Smartphone industry is significantly high. General Level of Management Capability: The managerial capability should be very high in this industry because the market is very dynamic and the rate of innovation is also very high and fast so firm should have good R&D and should be always in proactive mode to face the challenges in future.

Macro & Micro Environment:
Rupee depreciation and appreciation: The increase or decrease of Value of Rupee against U.S dollar will affect the price of phone. If Rupee value decreases against U.S dollar (1$=50 INR), then one individual would spend more than when what he spends during value of Rupee Increases against U.S dollar (1$=45 INR). Increase in service Tax: Service Tax is a form of indirect tax imposed on specified services called "taxable services". Service tax cannot be levied on any service which is not included in the list of taxable services. Over the past few years, service tax been expanded to cover new services. The objective behind levying service tax is to reduce the degree of intensity of taxation on manufacturing and trade without forcing the government to compromise on the revenue needs. Environmental Factors:


Mobile phones are not easily recycled, only 65% of recycling of mobile is possible. India government has signed agreement with UNO in reduction of emission of carbon, usage of other chemicals and IT wastages which would affect our environment by 2015. Due to this Indian government may change its Industrial and environmental policies. This may affect the production and sale of mobile phone in India. Other micro environments like recession, stagflation, depression and slowdown in country economy growth Competitors from overseas (in smart phone category): • • • • • Sony Apple Samsung HTC Huawei

The legislations that will affect our business: World Health Organization states that mobile phone radiation can possibly cause cancer so, Indian government would take some changes in mobile industry policies, Which may affect Nokia growth in India Demographic affect:Smartphone’s are more techs complex and not user-friendly like other normal mobile phones because of this complexity only 2% of 50+ age group are using Smartphone’s in India. If Smartphone’s are made with less complexity and more user-friendly then there is chance of increase in usage of Smartphone’s among 50+ age group in India. The major player in this Industry is: • Nokia

• • •

Samsung Apple HTC

COMPETITION ANALYSIS Global Smartphone Shipment-2012:

2Q12 unit vendor Samsung Apple Nokia Htc ZTE others Total shipment 50.2 26.0 10.2 8.8 8.0 50.7 153.9

2Q12 Market share 32.6 % 16.9% 6.6% 5.7% 5.2% 32.9% 100.0%

2Q11 Unit Shipment 18.4 20.4 16.7 11.6 2.0 39.2 108.3

2Q11 Market share 17.0% 18.8% 15.4% 10.7% 1.8% 36.2% 100.0%

Year-overyear change Year 172.8% 27.5% -38.9% -24.1% 300.0% 29.3% 42.1%


Source: IDC Worldwide Mobile Phone Tracker, July 26, 2012 Smartphone market grew at 42.1 percent year-over-year in second quarter of 2012. Vendors shipped 153.9 million smart phones in 2Q12 compared to 108.3 million units in 2Q11, IDC said. Nokia is still lead in smart phone sector .It has seen a major fall in market share by 50% from 60%, at the start of the 2011 to sub 40% by the end of the year. Vendor Nokia Samsun g Market -11 46.8% 27.4% BlackBer ry 13.3% 4.3% 4.2% 0.5% 0.6% 2.4% HTC Sony LG Motorola Apple Other s 0.5% 100% Total



Operating system (OS)-wise Smartphone market share: OS Market share Android 50.6% Symbian 23.3% Blackberry 9.9% Ios 2.4% Bada 10.2% windows 3.6% total 100%


Samsung on other hand is dominating player in Indian smart phone sector. It is close to 30% of total smart phone sector. Indian vendors like Micromax, Lava & others have not been able to replicate the same success in Smartphone segment as they did for feature phones. This year, not only did Samsung break Nokia’s 14-year record of being the world’s largest handset maker by overtaking it in terms of unit shipments in the January-March quarter, according to a report in April by research firm Strategy Analytics, it is also threatening to upstage Nokia in the overall Indian mobile phone market. It has already Samsung toppled Nokia in the Indian Smartphone segment. Research firm Convergence Catalyst pegs Samsung’s share in India in the January-March quarter at 45%, way above Nokia’s 25-30%. It estimates 9-9.5 million smart phones to have been sold in India in 2011. Samsung had a 34.2% share of mobile phone retail revenue in March 2012 as against Nokia’s 33.8%.

Major competitor: Samsung Comparisons & Competition analysis:
Category Quality of product -1 0 1 2 3 4 5


Reputation in the eyes of customer Price of the product New product launch/development

Factors made our competitors successful: Samsung
• • • Wide range of smartphone Smartphone starting price at 7k INR ability to offer “something for everyone” – different Smartphones catering to different demographics • • • • • A big display for Smartphones product portfolio based on Windows, Android and Bada operating systems Availability of 600,000 Android Apps with more than 2lakh free apps The proper/excellent design (designed for human) Samsung Electronics the world's largest information technology company (measured by 2011 revenues) • Tag Line:- What Next? Samsung is always considering its tag line and coming with various kinds of new brand model. Have re organized the business of company and channel around the sales channel the dedicated team for channel management and product. The change in sales approach will help the firm meet the needs of the large, widespread and growing multi-brand outlet world as well the specialized needs of the large format retail channel.


The company tried out this channel-led strategy in the mobile phone business two years back, which led to rapid expansion of market share. The move allowed the company to have better relationship with the key sales partners, dealers and retailers, understand their need and build customized sales promotion strategy around them.

Main competitor: Samsung
Samsung is biggest competitor for Nokia in year 2012. According to the Voice & Data study it has seen that Samsung posted a growth of 27.5% and annual revenue recorded 5,720 cr in 2012 in India from 4,700 cr in last year. It has around 40% of market share in smart phone sector. Using same operating system Symbian and windows to power their smartphone and future phone and advanced operating system then nokia like The study was conducted by Cyber Media Research, Samsung retained its charisma with 40.4 per cent market share in smartphone handset category. Nokia on the other hand came second with 25.5 per cent share.RIM came third with 12.3 per cent share. Smartphone makers like Sony and Motorola are still playing niche game in a competitive smartphone category.

Weaknesses of Samsung:
• • • • • Low manufacturing Base in India Lack of Mobile handset R&D Patent problem with Apple Expansive Software is fatal problem for feature and low end Samsung mobiles

Tracking competitor’s activities:
• • • • • monitoring competitors’ tactical and strategic developments analyzing those developments distributing analyses to appropriate members of your organization in the form of alerts Monitoring their investment on R&D Secondary sources : 50

Searching newspaper and magazine articles and monitoring competitor and related Web sites on a daily basis is a straightforward way to track competitors. You can save time and effort by using alerting tools available from database vendors and search engine providers. These automated searches are available from most database companies, such as Factiva and LexisNexis, as well as through major search engines like Google and Yahoo!. They provide current and relevant findings based on a set of search criteria (that you create) relevant to your competitors and/or their products and services. The more sophisticated tools allow you to set up alerts to collect and deliver the information to you, often via e-mail, according to your monitoring schedule. In addition to database and Web-based tracking and alerting, several new tools have recently been introduced that can help you track changes in competitor Web sites. For example, Watch That Page and Website-Watcher can alert you to changes in targeted sites.

Changes made by our major competitors in last 12 months:
Launched dual sim technology in smartphone category powered by Android OS. Launched Samsung 4G enabled Galaxy S III which is better than i-Phone called killer of i-phone 4S British chipmaker CSR sold its mobile business to Samsung in a deal worth $310 million Samsung have patent problem with apple due to which Samsung facing potential U.S. & EU sales bans of its Galaxy Tab 10.1 Samsung turned as a key competitor to Apple in the smartphone market. Samsung mobile phone business was the highest performer with revenue of 20.52 trillion and won, up 75 percent year-on-year. Samsung revenue and profit in mobile grew over the previous quarter due to an improvement in its product mix, and an increase in sales of its high-end Smartphones. HTC acquired streaming music service MOG HTC Acquired 51% of Dre's Beats Electronics for $300 Million in august 2011

Business dependence 80% of our profit is dependent only on one product (Mobile Phone) Nokia has around 122,000 employees across 120 countries, sales in more than 150 countries and annual revenues of around €38 billion. As of 2012 it is the world's second-largest mobile phone maker by unit sales. Nokia was the world's largest vendor of mobile phones from 1998 to 2012.

Products are mobile telephones and portable IT devices. It also offers Internet services including applications, games, music, maps, media and messaging through its Ovi platform, and free-ofcharge digital map information and navigation services through its wholly owned subsidiary Navteq. Product Copy Yes it is easy to copy the Hardware of any phone of Nokia but it is Impossible to copy Software. We can easily find duplicate Nokia’s phone which is made in china. One of the recent survey revealed that the duplicate market has been growing at a shocking rate of 12% per year in India. This obviously is a bad sign for companies, consumers as well as the government. Mobile Brand Nokia lumia 900 Samsung Galaxy S3 Iphone 4S Samsung Galaxy note Original Price 30,000/40,900/42,000/29,000/Duplicate phone price 3,500/3,000/3,700/2,200/-

Following are some tips to Identify Original Nokia Hand Set :-

• Price of a fake Nokia is almost half or one-third of its original counterpart. • Abnormally lightweight phones can be fake, so beware, for humans light weights are in
but not for phones


• Fake mobile don’t have the blue colored 12-month warranty sticker. If the phone has the
sticker then use the other ways to identify fakes (this is my version)

• Unavailability of or poorly printed Nokia Care tamper proof warranty stickers are sign of
a fake Nokia mobile handset

• Genuine Nokia phones have a tamper-proof label at the back and they also have tamperproof warranty seal

• Original Nokia phone have batteries with hologram showing Nokia “Connecting people”
logo and “Original Enhancements” written on them. If you slant the hologram left, right, down, and up you will see 1,2,3 and 4 dots on each side. The extent of product differentiation that nokia have achieved for Smartphone range of product/services: Nokia Drive:

Have maps data for more than 190 countries in more than 50 languages and navigation in more than 110 countries collecting information from Nokia Drive users and local authorities to provide traffic alerts in 26 countries, and also allow dynamic rerouting Have venue maps in over 4,600 shopping malls, train stations, airport, sports venues, etc. in 35 countries Support multi-modal routing: by car, on foot (including footpaths, shortcuts, etc. in over 400 cities) and by public transportation (over 100 cities)

Free-of-charge digital map information and navigation. Windows 8 Operating system. Nokia 808 PureView with 41 megapixel camera, first 41 megapixel camera phone in the world. Nokia Music Store with more free songs for Music Express series of mobiles. They want to become the biggest entertainment media network in the world. By (ibid). Nokia offers devices to satisfy every budget and they are trying to make their products and services indispensable. They sell mobile devices to the hundreds of millions of price-sensitive cell phone

users in India that cannot afford a data plan. For $1.30 per month rural users in India can receive information on weather, agriculture, education, and Bollywood. They are also going after the high-end market high bandwidth market and have developed Ovi, an iTunes type platform with a variety of downloadable Smartphone applications.

Each Product Lifecycle of Nokia Smartphone’s:

Nokia has introduced Nokia Asha which is stunning phone designed with sophisticated materials and metallic finishes. Entertainment and applications are also a core part of the Nokia Asha. Nokia’s Smart phone Lumia is in sub introduction phase of Growth phase, which already attracted the customers by its features and its low price as compare to Samsung’s smart phone.


Feature phones are like 2230, 2690, c2, c00, 1616 etc are in maturity phase. Nokia sells approximately 14.4 million feature phones in India. As India has price sensitive market it has got huge market in India because they are available in cheap price. Sales of other feature phones like Nokia N series and E series have declined. Product Benefits and customer Needs Feature 3G enable 3.7″ 16M-color AMOLED BENEFITS high connectivity Big Screen speed CUSTOMER NEEDS Video calls, Faster Internet Crystal clear visibility easy to assess User friendly any where Internet access if the area is Wi-Fi enable strange city Store Data More Music More Entertainment

capacitive touch screen of Feather touch 480 x 800 pixel resolution Windows Phone 7.5 OS faster than symbian (Mango) and windows 8 Wi-Fi 802.11 b/g/n GPS receiver 16GB on-board storage 55 hrs music playing 7 hrs video play Access Internet Route Map highly compact Battery Life Battery Life

Service and Warranty Of Nokia The warranty period starts at the time of Product’s original purchase by the first end-user. The Product may consist of several different parts and different parts may be covered by a different warranty period (hereinafter “Warranty Period”). The different Warranty Periods are: 1) Twelve (12) months for the mobile device and accessories 2) Six (6) months for the following consumable parts and accessories: batteries, chargers, desk stands, headsets, cables and covers.
3) Ninety (90) days for the media on which any software is provided, e.g. CD-rom, memory



As far as your national laws permit, the Warranty Period will not be extended or renewed or otherwise affected due to subsequent resale, repair or replacement of the Product. However, repaired part(s) will be warranted for the remainder of the original Warranty Period or for sixty (60) days from the date of repair, whichever is longer. If you wish to make a claim under the Limited Warranty, you may call the Nokia call center and/or where necessary, return your Product or the affected part to a Nokia care center or Nokia designated service location.

Packaging of Nokia Phone A mobile phone package should give a message about the product image for a customer. It should also complete the experience that the product is providing for the user. Nokia uses recyclable materials, mainly wood fibers in its product packages. Coloring and patterning help cardboard to support products' image and their message. Some 35-100% of materials are also made of recycled fibers. Their availability vary from region to region. New packaging materials are sought continuously. High quality packages can be made of several natural fibers. Flax packaging is already used, agricultural waste as a raw material as well as bioplastics is being studied. The use of agricultural waste brings challenges related to uniform quality and seasonal availability of raw materials, while bioplastics are not easily recycled. Bioplastics should be composted, and cannot therefore be recycled with other plastics.

Important of packaging: To protect a product from damage or contamination:


The product must be protected against being dropped, crushed, and the vibration it suffers during transport. The product most also be protected against the climate, including high temperatures, humidity, light and gases in the air. To identify and differentiate the product from others: Packaging is the main way products are advertised and identified. To the manufacturer, the package clearly identifies the product inside and it is usually the package that the customer recognizes when shopping. Protection during Transport and Ease of Transport: A package should be designed to make it easy to transport, move and lift. A regular shaped package (such as a cuboids) can be stacked without too much space between each package being wasted. This means that more packages can be transported in a lorry. Unusually shaped packages can lead to space being wasted and this can be costly if thousands of the same packages are to be transported. To identify the features, specification and color of the product Product perceived in relation to its Competitor category Price Performance Packaging Reliability Durability Quality After sales service/ Maintenance Guarantees Promotion/Advertising Our product 4 3 4 4 3 3 5 4 4 3

competitor’s product 3 4 4 3 4 4 3 3 4 4

Nokia distribution structure in India When it comes to distribution, Nokia's lead is clear. Today, India has some 1,10,000 outlets that sell mobile phones. Out of these, according to companies own conservative estimates, 50,000 stores have only one brand available – Nokia. Nokia started distributing its phones through a partnership with HCLI (formerly Hindustan Computers Ltd.), which had already built an extensive network for its own products. Recently, Nokia has decided to supplement that with its own distribution efforts. Nokia believed that there was a tremendous growth opportunity and it was best exploited when the resources utilization of both companies was optimized. Nokia and HCLI have decided to develop a go-to-market strategy to jointly address the coverage needs of the urban and widely dispersed rural areas, while rest are handled individually. Nokia has always been secretive about its operation and strategies and have not spelt out clearly how the two partners have divided the markets, but some do clues exist in the way demand is shaping up. In the cities where the market is maturing, buyers are looking at more sophisticated mobile phones, such as Nokia's E-series phones (which serve business users) and the N-series (which have multimedia features). In rural India -- which constitutes 70% of the population -- affordability is an issue. So there is a different range for this constituency. Different types of retail fronts selling Nokia mobiles are : Nokia concept stores A one-stop shop for mobile users has been brought into existence to provide an opportunity for consumers to “experience the product “before purchasing it. Trained Nokia personnel would brief customers about various handsets and features. The store would have the entire range of Nokia devices in all categories including latest range of mobile enhancements and exclusive Nokia merchandise apart from handsets. The new Nokia Concept Stores represent a rebranding of the previous Nokia Professional Centers. Nokia has so far been rolled out 9 Concept Stores in India with only Mumbai and Bangalore having 2 concept stores. Other Concept stores in India are located in Gurgaon, Indore, Jaipur, Hyderabad and Chennai.

These stores would help Nokia strengthen it brand and at the same time save costs that it incurs in distributing to the dealers. Although it would have to bear the costs of training the employees but the transportation cost would be greatly reduced. It would also give the company the advantage of exclusivity. Since it has been opened in only metro and important cities, therefore, it would not be subject to state sales tax, if the CFA is located in the same city. Nokia Priority Dealers Nokia Exclusive Stores namely PRORITY DEALERS are all franchised outlets .The franchisee must fulfill certain criteria, for example, in the case of an existing store that would be converted to a priority dealer, there must be a certain number of footfalls, the location of the store should be prime real estate in that region, and certain other standards. Nokia provides support to these outlets in the form of help in visual merchandising, furniture etc. against a certain deposit by the owner which is refundable at the end of the contract if need be. Multi Brand Dealers Apart from its Nokia Priority dealers and concept stores, the company distributes its product to many organized multi-brand mobile stores with nation-wide presence in India and recognized for their service and price discounts. Few of the major players are     Hotspot Univercell The Mobile store RPG Cellucom

Besides these there are individual mobile retailing stores as well as wide variety of retail stores like electronics goods dealers, Stationary shops, etc who have started selling mobile phones over past few years. HCLI has also established over 150 Nokia Care Centers managed by HCLI and franchisee operations. Role of Channel Partners Nokia

Nokia manufactures its mobile in Chennai manufacturing plant and then it transfers to nokia’s mother depot which is located in Gurgaon. They also provide assistance in selection of channel partners like redistributors, Dealers, Franchisees, etc. Besides this they provide monetary assistance in Store development for Nokia Priority dealers, help in promotion of products on mass scale as well as in store and training of the sales force of partners at every level. HCLI HCLI Info has been handling distribution of Nokia phones for 10 years. The agreement was due for renewal in August, 2006 and was renegotiated beforehand. Again on January28th’ 2009 a new agreement for territory division was signed between Nokia and HCLI. Nokia business accounts for 52% EBIT of HCLI. HCLI currently has 30,000 channel partners (dealers), some of which it will transfer to Nokia. The pilot phase was launched in Mumbai and Bangalore to test the new distribution model. The absence of any other distribution partner ensures that there will be no price-cutting. In both the territories, Nokia phones were made available for a uniform price. HCLI starts distributing Nokia’s product from Gurgaon depot. HCLI takes order from 4 redistributors appointed in Delhi to cover North, South, East and West zones and then it supplies the product to the dealers with the help of RDSS (Re-Distribution stockiest supplier). .Re-Distribution stockiest supplier (RDSS) There are 6 RDSS in Delhi NCR region with territories divided as North, South, East and West Delhi, Noida and Gurgaon. RDSS are supposed to operate only in their designated territorial zone. In case of conflict HCLI acts as the arbitrator. RDSS, assisted by Nokia, also take responsibilities like recruiting sales force, training and developing. Stocking norms of Nokia- HCLI agreement says that HCLI depot should have 7 days supply, RDSS in city should have 5 days of supply. Dealers Nokia Priority dealers, Multi brand and individual dealers in Delhi NCR are all served by RDSS. Dealers are explained the features of every new launch mobiles, different schemes and offers by Nokia’s representatives. Re-supplies are always just a phone call away and the delivery is made


within a few hours. Besides, Nokia assists most dealers in the region in the store set-up and design. The price points sometimes dictate the type of outlet. Stock norms define that for how many days worth of stock does any level in the supply chain should have. These norms are defined by Nokia only. Given below are the stock norms: The expected target to be fulfilled by the particular level is determined by the following formula: Expected target = (30 / No. of working days) * Stock Norm for that level Margins at each level The margins for the Nokia distribution segment have not been disclosed separately but are clubbed with the overall contribution of the office automation and telecom segment. Tentative margins found on the basis of discussions with dealers were:

Margin not declared 18% Margin

2% Margin

8% Margin

10% Margin

Nokia and HCLI have never publicly declared their margins. Nokia business is the largest contributor to HCLI’s revenues and profits. Nokia product distribution was the largest contributor to HCLI’s sales (about 72% in FY2009). As a percentage of PBIT however, the share of Nokia distribution was at 61%. Since 2006, when Nokia took over 50% distribution channel from HCLI, revenue growth has almost been flat.


When comparing with its competitors, Nokia offers almost half to one-eighth margins on its phones. Compared to 2% offered to dealers by Nokia, LG and Motorola offer around 8-10% and Samsung 18%. But still dealers prefer to go with Nokia as it has much more surer sales and have excellent support from RDSS and the company. Distributors Coverage Plan HCLI being the first level intermediary between Nokia and dealers, HCLI collects the goods from mother depot in Gurgaon and supplies to 5 RDSS across Delhi and Noida. Gurgain depot itself functions as RDSS for the Gurgaon. HCLI agents deliver the ordered mobile sets to RDSS within 4hrs of receiving orders. Mother depot maintains stock capable of catering to atleast 7 days of demand in its covered territory. In turn, RDSS ensures the delivery of goods within 4 hrs of the order made, sometimes even quicker. Night time orders are delivered net day morning. As each RDSS is given a small geographic territory, making quick deliveries does not prove to be hard. Although territories are geographically small, the number of retail stores in each zone make them commercially attractive to operate in. The small delivery time and close-knit relations with RDSS allows dealers to even order the mobile pieces as and when customer walks in demanding the handset. Again compared to this, Nokia’s rivals have appointed much more number of distributors in each region. Samsung has 15 or more distributors to cover Delhi NCR region. But Still Nokia manages to give services better than its competitors. Infrastructure required by distributor Nokia’s sole distributor currently in India is HCLI. Their deal was first inked over a decade ago just when Nokia was entering into Indian telecom market which was perceived to be ready to take a big leap forward. Nokia wanted an established partner with proven record in handling distribution across India. HCLI had an excellent wide-reaching distribution channel and support centers. This partnership helped Nokia in having a focused approach towards increasing penetration to Rural & Semi-urban areas and improvement in market share across the country. Nokia-HCLI have not declared any of their agreement details on public domain and hence its not known what infrastructure HCL is supposed to maintain as per the agreement or what


infrastructure they have dedicated or use for servicing Nokia. Few details available in public domain are:
     

Service provider for the repair of Nokia Mobile Phones in India Pan India service network in 21 L3 locations equipped with state of art equipments Mobile care vans across the country to increase remote coverage Nokia repair facility 100+ repair benches with 75K handsets/ month repair capacity L4 repair capability

HCLI maintains the mother warehouse located Gurgaon.

Support provided by the company to the distributor Nokia has an extensive support program dedicated to providing key benefits to HCLI and RDSS agents and qualified mobile phone dealers throughout Delhi. Nokia offers qualified dealers unprecedented access to Nokia's products and support services to better satisfy customer needs for Nokia products. It offers the tools and point-of-purchase support dealers need to deliver the best possible customer solutions to Nokia end users. Nokia also offers dealers extensive merchandising support such as counter top displays, product brochures, demonstration phones and a Nokia premier dealer plaque Point of Sales(POS) system : Nokia provides point of sale systems and software to dealers to help them manage their selling activity better. It encourages dealers to move away from their cash registers to IT managed account system. Almost all the Priority dealers have moved from cash registers to POS systems. In-shop Branding Schemes: The concept of mobile recycling was first introduced by Nokia, a campaign was launched to encourage people to give their damaged Phones to Nokia care, & avail the discount on buying a new one. Besides, Nokia offers multiple schemes to push sales of lagging mobile


models. These schemes come in form such as added cash bonus of Rs.300-1500/ set for selling a 5 specific lagging set in 4 days. Retail element: Nokia assists priority dealers by assisting in the payments for the retail element part of their stores while the dealer is supposed to take care of the expenditure incurred on the services other than the retail element. The service charge payments for the retail element could be split into 'core' and 'additional' elements, with dealers paying pro-rata with for only those services they all have use of, and an additional element for any extras it specifically requires. Sales Collaterals: Nokia provides promotional collaterals and brochures to the dealers directly to help in promoting sales. They regularly send in posters and pamphlets of latest releases, updated brochures and handset fact-sheets to assist dealers in closing the sales. Training the dealers: Nokia sends in its executives to dealers to train them on the features and selling points of new launches and handset models not performing to their potential. Mostly these tasks are taken up by the delivery executives who also inform the dealers about their latest launches and the feature sets of these phones. Dealer encouragement schemes : Nokia has cash rewards to promote and motivate the dealers. They offer cash rewards for making predetermined level of sales fortnight which may ranges from Rs.500 to Rs.5000. For their high performing dealers they offer all expenses paid local/foreign holiday trips. Credit/ Payment terms Nokia operates of quick delivery and quick payment terms with RDSS and mobile dealers. Deliveries are made super-quick, 4-5 hrs, and payments are supposed to be made quickly too. Nokia and HCLI have been under long term contract which has been in place for over a decade now, with terms and conditions having been revised twice in this period. Margin and credit period agreement between Nokia and HCLI have never been declared publicly. But its speculated that its revenue sharing model based on total sales in a particular period. Nokia having a very strong brand and market presence, exhorts tremendous power in market. It allows a very small credit period to the RDSS which in turn squeeze dealers, giving them equally small credit period. RDSS are allowed a credit period of 7 days, which in turn give dealers also

7 days credit period only. Although dealers moan about the short credit period, the power Nokia has in market and demand for Nokia phones makes it imperative that dealers carry Nokia mobile phones in their stores. Again on this front, Nokia has tighter norms compared to its rivals. Samsung and LG offer double the credit period offered by Nokia. Samsung and LG offer 15 days credit period, compared to Nokia’s 7 days. Major Problems Faced by the distributors Terms and condition of the deal between Nokia and HCLI has never been revealed in the public domain. Hence, the problems faced by HCLI are not known publicly. Since, the deal to divide distribution territories was signed in 2006, there has been some issues for HCLI. HCLI shares have suffered on share market. Nokia has also refused to confirm or deny plans on appointing distributors for the territories under its control after the revised agreement. On its part RDSS are quite happy with their functioning. They are satisfied with the products, quantum of sales and promotional support provided by the company. Even dealers spoke very highly of Nokia. Multiple dealers were contacted and not a single one had any problem with Nokia’s distribution or service. Some dealers in other states were also contacted and they also had nothing to report on the problem front. A few minor issues that possibly could become concern in future were : ◊ Credit period given by Nokia is very low compared to its competitors – just 7

days compared to 15 days offered by Samsung and LG ◊ Margins offered are very low compared to competitors who could become larger

player over new few years. Nokia offers just 2% margin to dealers compared to around 10% offered by LG and 18% offered by Samsung ◊ The damage piece policy has been cause of concern for some dealers/ RDSS.

Although minimal damaged pieces have been reported over years, if any physically damaged handset is found, it sometimes leads to dealer/RDSS having to bear with it.


Major Points of conflict ◊ There has been no point of conflict reported by RDSS or the dealers over the years. Nokia-HCLI have marked the territories very effectively and have been strict in ensuring that territories are not encroached upon by dealers or RDSS. There has also been no conflict amongst channel partners at different levels or channel partners at same level. Payments, delivery of goods ordered and services have also been impeccable. ◊ Relations between Nokia and HCLI are deeply ingrained in their system and if there has ever been any conflict or disagreement, it has never been reported in any open forum. Major Problems/ Issues identified ◊ With market scenario changing, smart phones are increasing their share of total

mobile phones market. Although Nokia too has presence in this segment, but with multiple recent offerings launched by Blackberry, Apple and Samsung market is set to become more competitive for Nokia. Compared to Nokia all these companies are offering better credit terms and margins and this may lead to dealers and RDSS moving over to these competitors. ◊ Dealers reported Nokia’s executives never try to pressurize them in keeping their

phones on prominent displays or push sales when customer walks into the store. On the contrary, LG, Samsung and other rival brand’s sales executives repeatedly exhort dealers to keep their products in prominent displays. They even ask the dealers to push their handsets when customer asks for Nokia. Till now Nokia has done strong promotion and relied on the pull of its products and brand to make the sales. But in future, as the market gets competitive, Nokia will find this tougher and should start forming strategy to counter such moves of its competitors. ◊ Service centers of Nokia are managed by HCLI in assistance with Nokia

personnel. Although, defects and problems in handsets have been very low compared to competitors, the handling of service has not been impeccable. Service centers usually take time and at some centres have long waiting list. This makes customers to move to cheaper and convenient local mobile repair shops. As parts used are not genuine and sometimes


results in handset damage, customers end up blaming Nokia as much as they blame Local shop.

Effect of Nokia’s sale if price of phone increase or decrease by 10% They shipped 2.2 million Nokia Lumia phones last quarter. It would not affect the sales of Nokia’s smart phone if the price is increased by 10%. People would not see only price before they go to purchase a mobile phone. There are many other factors that customer would see. Warranty, guarantee, quality, after sale service etc is being offered by company, although price is one of the important factor before one would go to buy a mobile phone. Nokia has 1000 Nokia care center for its customers. Sales of Nokia would increase if price is decrease by 10%. Nokia’s warranty period after sale service: The warranty period starts at the time of Product’s original purchase by the first end-user. The Product may consist of several different parts and different parts may be covered by a different warranty period (hereinafter “Warranty Period”). The different Warranty Periods are: 1. twelve (12) months for the mobile device and accessories (whether included in the mobile device sales package or sold separately). 2. six (6) months for the following consumable parts and accessories: batteries, chargers, desk stands, headsets, cables and covers; and 3. ninety (90) days for the media on which any software is provided,e.g. CD-rom, memory card. The Warranty Period will not be extended or renewed or otherwise affected due to subsequent resale, repair or replacement of the Product. However, repaired part(s) will be warranted for the remainder of the original Warranty Period or for sixty (60) days from the date of repair, whichever is longer. Qualification of being Nokia’s Retailer


1. Raise the capital collateral necessary to become a Priority Dealer. Nokia will want you to prove that you have the financial wherewithal to be a strong distributor. The capital requirements vary, based on the location. 2. Provide your background and experience. A history of successfully running electronics or cell phone distribution shops is preferred to become a Priority Dealer. 3. Establish a location by signing a leasing, cleaning the shop and organizing the display area. When you become a Priority Dealer, you can hire staff, order supplies and obtain Nokia signage. 4. Sign the Priority Dealer contract with Nokia, and begin marketing and selling the phones. Service output deliveries expect of out Nokia Retail shop.
• •

Nokia Strengthens After-Sales Service Enhancing Customer facility with Online Repair Status Checking. Adequate amount of stocks of sphere parts should available; customer should not wait too long time to get sphere parts. Retailer should listen problems is being faced by customer and try to sought out as early as possible, which would help to become long term relationship. Should have customer care help line center. Not giving false promises. Mobile theft insurance. Service for any malfunction in mobile phones. Service for any failure of hardware or software of mobile phones. Educating customers about product and features and how to use it Zero per cent EMI scheme on smart phones

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• • • • •

Blown Away by Nokia Lumia:


Following the launch of the Nokia Lumia in mid-December 2011, Nokia's recent efforts have been to demonstrate the social networking features of the Windows-based phones - on ground, online and on air. The company had launched a ‘Blown away by Nokia Lumia challenge’ running in March and April 2012. This was inspired by the ‘Smoked by the Windows Phone’ challenge, a global initiative undertaken by Microsoft (at CES 2012). The first legs of 'Blown Away by Nokia Lumia' aimed at creating awareness about the challenge, driving traffic to malls, colleges and retail outlets. Buzz was generated using digital media and radio, post which bloggers challenged consumers (on-ground) to test their smartphones against Nokia Lumia 800 in the social networking space. Finally, the 'challenge' videos were seeded online. Post this stage, an online campaign featuring brand ambassador Priyanka Chopra was created by JWT India, where she was shown as the Nokia Lumia challenger. Amazing Everyday: Nokia India has unveiled an integrated campaign to support the launch of its Windows-based smart phone, Lumia that hit the Indian retail shelves on December 16. Built around the creative concept, ‘Amazing Everyday’, the campaign aims to highlight the three key components of Nokia’s smartphones – communication; internet and applications, which help the target audience to constantly sync their physical and digital worlds.“They are not your everyday smartphones; they help create small joys and amazing moments, moments that can be captured and shared with friends,” said Viral Oza, director marketing, Nokia India. “The campaign is hence aimed at reminding people that even everyday routine can be amazing and there are little adventures waiting for us around every corner.” Anticipated to be Nokia’s most visible campaign so far, the marketing blitz kick-started with prelaunch activation in metros and mini metros in which ‘amazing on-ground experiences’ been have been created for consumers: flash dance mobs in Delhi, Bangalore, Mumbai and Hyderabad; an impromptu dance performance by an international dance troupe, dressed in neon outfits in Nokia Lumia Colors at Blue Frog, Mumbai; Lumia Taxis in various cities; and Flash Cricket – where a celebrity cricketer springs a surprise in a field created in a mall and plays a

short version of cricket with consumers. Experience zones in malls across key cities with giant live devices and monster headsets have also been set up. The television campaign comprises five short films, the first of which, hit the screens last week. The TVC, that showcases some extraordinary moments in every-day situations, is a part of the global campaign that has been adapted for India. The agency for all “Amazing” – on-ground activation -- activities is Encompass, the digital agency is Wunderman and the social/blogosphere bit is being handled by Nokia’s social agency, Blogger’s Mind. As part of the digital initiatives, Facebook has been used to amplify the ‘Amazing Everyday’ campaign. “Consumers have been invited to visit the Nokia Facebook page ( and submit short stories, videos and photos on how they have been able to turn their every day routine life into an ‘amazing day’. The best storytellers stand to win five Nokia Lumia handsets and other exciting prizes,” said Oza. The hand-set major had also run an interesting week-long internal campaign leading up to the launch. Some initiatives included a giant life–size Lumia in office dispensing gifts such as chocolates, laptop stickers and Rubik cubes; treasure hunt; and fun rides on Lumia scooties.
Satisfaction guaranteed (PR): people are asked to take the device, use it for a week, after which they can decide to either keep it or return it. Until more people start using it, we have to keep at it, do these things, to build awareness, to build experience based strategies around the product.

Nokia urges consumers to recycle e-waste: Nokia India has launched 'Take Back' campaign to educate mobile phone users on the importance of recycling e-waste. Though this new campaign, Nokia aims to encourage users to dispose their old handsets and accessories like charges and handsets (of any brand) at any of the recycling bins set up across Nokia Priority Dealers and Nokia Care Centers in New Delhi. As a part of the initiative, the company is going to plant a tree for every handset dropped into these bins. The campaign will be spread to the other parts of the country gradually.


Nokia India has launched 'Take Back' campaign to educate mobile phone users on the importance of recycling e-waste. Though this new campaign, Nokia aims to encourage users to dispose their old handsets and accessories like charges and handsets (of any brand) at any of the recycling bins set up across Nokia Priority Dealers and Nokia Care Centers in New Delhi. As a part of the initiative, the company is going to plant a tree for every handset dropped into these bins. The campaign will be spread to the other parts of the country gradually. Nokia has undertaken this initiative based on a consumer survey conducted across 6500 respondents in 13 countries, including India which highlighted that despite the fact that people on average have each owned around five phones, very few of these are being recycled once they are no longer used. Nokia Ad Budget for smart phones: Nokia Budget: $50 million Microsoft Budget:$50 million AT&T Budget :$150 million Publicity studs by adopted by Nokia Nokia Lumia in India : Nokia adopted various strategies in various countries like giant handsets, free Xbox bundles and private concerts. It has adopted a different strategy in India by during a number of publicity stunts that include bringing the customers in through Mercedes and BMW cars, taking the

family/friends for a dinner on the boat and a private parasailing session. This does not sum up the efforts on Nokia’s behalf. The way Nokia has approached India seems to be very different as it has adopted different things in different metro politician cities. Nokia Lumia across top cities in India Across various metro politician cities, various events like a concert by famous artists New Delhi, an artificial snow zone at PVR. In Mumbai, free food and drink offers at PVR, a dance performance by a foreign troupe and so on. In Kolkata, a winter wonderland with artificial snow at Salt Lake is being used to attract customers. In Bangalore, Chennai and Hyderabad, a lot of activities like taking out friends in BMW cars and private parasailing session are being taken up. Nokia is surely here to make a mark this time. Different Publicity studs of Nokia in different cities – New Delhi – • • • • • No toll tax for 15000 cars at Delhi- Noida DND Toll plaza. Musical concert by leading artist at New Delhi. Blue Santa’s distributed chocolates at selected Malls of New Delhi. An artificial snow zone was created at PVR New Delhi. Lucky Draw contest were arranged by Nokia and the price for lucky winner was Nokia Lumia.

Mumbai – • • Dance performance was organized by foreign dance troupe. Free food and drinks were organized by Nokia at Mumbai PVR.


Kolkata – • Winter Wonderland covered with artificial snow was created at Salt lake to Promote Nokia Lumia.

Bangalore – • Consumers were picked up in Mercedes and BMW and were offered an aircraft ride. • • BMW drive offered with friends. A Candle light dinner for two followed by a personalized dance.

STP analysis of NOKIA: Nokia understood that from big businesses to every day consumers they needed to offer a variety of packages to choose from. In having these different options people don’t have to immediately go with the most expensive phone with the highest rates attached to them. People are able to pick and choose if they want internet, 4g, 3g, Bluetooth capability, voicemail and a hodgepodge of other options. This variety allows customers to buy the phones they are looking for and not spend money on extra functions that they may never use based on Geographic World region – Asia Country – India Cities – Reach out maximum places Demographic Age – All age group

Gender – Male, Female Income – All income groups Occupation – Every sector Religion – Irrespective of religion Psychographic Social class – All class of people Lifestyles – Urban, rural, and even far villages Behavioral Benefits – Quality Loyalty status – Strong

Nokia has mainly targeted: Target Market for the Nokia Mobile Phone is between 20-50 years. Who wants to use something different? Teenagers and Business Class People. Targeting Strategy Business to Customer Nokia has a huge market; almost 5 billion people own a mobile phone in the world, and Nokia has about a third of all handsets sold. Nokia biggest customer group at the moment would have to be young people. It shows it Nokias ads; they are very colorful, fun and show connectivity. Today’s youth wants connectivity and social media in their hand set, like access to face book, twitter and other social networking sites. Business to business Nokia uses different companies in different market segments to reach their target market for a specific product, service or series of a product (Series meaning e.g. N-series, E-series...).

Meaning that Nokia products created for people who are concerned with appearance would be “tied” to other companies products that are in the same segment, for example using Dolce & Cabanas hand bags to market the 8800 sirocco diamond edition, by promoting the phone with the hand bag and then giving a discount for the phone with every hand bag purchase. What is meant by this is that, marketing stylish phones to people would be accomplished by cutting a short term marketing deal with, for example Dolce & Cabana, so when the customer walks into the store and purchase the hand bag they will have an incentive to purchase that phone because they would be saving some money. Segmenting and targeting by purchase behavior Nokia has a huge market with many different segments divided by needs, therefore Nokia has come up with different product lines for different segments. Some examples of Nokia’s product lines include the C-series, E-series, X-series, N-series and the N-gages. Nokia has a number of different product lines for its customer’s demands: 1000 series – the ultra basic and most affordable Nokia handsets, at first designed for developing countries. 2000 series – Basic series is a small upgrade from the 1000 series; it may have a camera or Bluetooth. 3000 series – Expression series is targeted at the youths; they are affordable and have all the basic features plus a camera, gps, mp3 and additions of that price level. 5000 series – Active series phones are very similar to the 3000 series phones, but are targeted at active individuals so their make might be stronger or they might be shock or water proof.

6000 series – Classic business series has phones from the lower range to higher range phones, usually with a respectable amount of functions meant for business professionals. 7000 series – Fashion & experimental series is for fashion conscious users, and user that want new features on their phones. 8000 series – Premium series consists phones are categorized by ergonomics and attractiveness. 9000 series – Communicator series has been discontinued but consisted of business communicators with full keyboards, created for business professionals. C series – is optimized for social networking and sharing, the c series phones are also meant to be affordable to the younger market. E series – (Enterprise class) Are phones optimized for business professionals. N series – Has the most advanced smart phones, they are meant for people who want connectivity and multimedia features, they have as much technology put into them as possible. X series – Music & entertainment series that targets a young audience. N-gage series – Gaming series that came out with two models and was then discontinued. LUMIA series – high-end of the Smartphone marketplace with windows operating system ASHA series - low-cost mobile phones that will offer more than just the basic telephony features which delivers a smart phone-like experience. is aimed at helping young people in emerging countries to get online, so that they can begin to enjoy the Internet and social networking.


Nokia has many different kinds of products that vary from each other; there are products for young people like students which include Nokia’s xpress music, cheap models, and trendy looking phones, as listed above. A mobile phone for anyone, everyone


NOKIA’S CORE COMPETENCIES • • • • Personality counts Brand name/ Brand development Research & development Mass production

Personality counts: The ability to find the "right" person to fit into the Nokia team is one of the company's core competencies. Search for the talented software engineer or researcher requires the company to pay great attention to personality and behavior. Nokia believes that technical skills are easier to assess and to learn than personal skills, which play a critical role in the company's team-driven culture. In 2012, Nokia has more than 123,000 + employees in over sales in more than 150 countries. Brand name/ Brand development: When hiring researchers and engineers, Nokia is almost as interested in temperament as it is technical credentials. Nokia motto: You can teach technology in the company much easier than you can teach interpersonal skills, if at all. Director of global strategic resourcing at Nokia's

headquarters in Espoo, Veli-Pekka Niitamo said. "We want people who can work in a team, who can communicate and defend their ideas and, equally important, who can accept different opinions."Nokia focus is not only on technical skills but also on attitudes and behaviors critical to the creative spirit of the company. The Trust Research Advisory has released the Brand Trust Report 2012. The Brand Trust Report, India Study, 2012 (BTR 2012), lists India’s 1000 Most Trusted Brands. Among the brands to make it to the top of the list Nokia and Tata have retained their first and second positions from last year as India’s top two Trusted Brands this year.. For North India, Nokia continues to lead but Tata (second place for India) slips down to sixth place. South India agrees with the rest of India as there's no change in the order of the top five most trusted brands.

Three Nokia’s main market areas • • • • • • • Europe Asia Pacific America Sales in Europe amounted to roughly half the total While Asia and the United States for about a quarter each. The euro zone developed pretty much as expected. Nokia was among the first companies to adopt the common currency in its accounting. Research & Development One of the most important success factors that has made Nokia the company it is today is their heavy investment in research in development. They spend about 9,5% of revenues on R&D


.Nokia maintains global contacts to universities, research institutes and other companies to monitor and influence developments in technology . 15,000 employees (32% of their workforce) work in 10 R&D centers all over the world. Each of these research facilities has focus on a specific subject and technology. The diversity of these locations allows Nokia to better prepare the company to compete well in the future. Research centers  China, Beijing – They are working to take advantage of the largest mobile market and the fastest growing economy in the world – China  India, Bangalore – This team focuses on market services for both urban and rural India  Kenya, Nairobi – Understanding the unique needs of the African mobile phone users and creating concepts and visions to fulfill these needs.  Finland, Helsinki – They study the fields of user experience, mobile security, power management, computing architectures and intelligent context-aware radio  Finland, Tampere – Their research focus is on rich context modeling, new user interface and high performance mobile platform  Switzerland, Lausanne –They are researching the field of pervasive sensing and computing  United Kingdom, Cambridge – Here they develop nanotechnologies for wireless communication and ambient intelligence  USA, Cambridge – Here they’re developing new technologies for rich context modeling and new user interfaces  USA, Hollywood – The center is focusing its research on activities in context aware social media, user interaction models, mixed reality experiences and the convergence of the internet and mobility  USA, Palo Alto – Researching mobile internet services systems, mobile business solutions, context-specific content and visual computing.


Mass production One more Nokia’s core competency is its ability to mass produce products quickly and cheaply to meet demands in the whole world. They have captured almost half of the total market share for mobile phones which makes it difficult for new companies to penetrate the market. The big number of factories around the world puts Nokia in a great position to meet world demand. PESTLE Analysis of Nokia Introduction After conducting a Porter's 5 forces model on Nokia, I felt a PESTLE analysis would analyse the macro environment of Nokia. These are all the external forces that are out of Nokias' control but have a significant effect on how the company operates and the strategic decision they make. This model looks at the Political, Economical, Social, Technological, Legal and Environmental factors relating to Nokia and the industry they operate in. To understand the macro environment more this article will study each section in depth.

Political The Political factors relates to the factors which the government also affects such as government instability or rules and regulations which the business must follow. Nokia have recently moved one of its manufacturing facilities to India, and because of this it is important that Nokia follow the rules and regulations that are set in India, so that they can operate as efficiently as possible. The types of things they will have to be aware of is the minimum wage, the maximum hours a week employees can work and especially the Health and Safety regulations; this is to avoid any bad press or revolt from employees that will ultimately damage the reputation of Nokia both

short term and long term. As well as foreign government it is vital that Nokia have a good relationship with their government in Finland, as any political instability such as a change in government or coalition may result in new laws being implemented, which will affect Nokia a lot Economical Nokia are vital to the Economy in Finland as it currently occupies a third of the market on the Helsinki stock exchange. The organization is so important to the economy of Finland that the government had to step in when the business, earlier this year Nokia planned job cuts in Finland and with fears of what that would do to the economy the Finnish government stated they were prepared to help find jobs for those who are sacked. Nokia will also have to be aware of changes in exchange rates, as they operate on a global scale and drastic changes in rates can have a devastating effect on the financial operations of the company if the business do not take appropriate steps to ensure the effects are minimum. The threat of recession on western economy has also had an effect on the interest rates in banks, which means the cost of borrowing money for business activities has increased and Nokia will need to be aware of the changes in interest rate.

Social With Nokia mainly operating in the Western market it is important for them to fully understand the social factors in these markets and the main factor they need to understand is the culture of the society; which is to have the latest and most up to date phone, is considered a key fashion icon. Consumers are always after the most innovative and best looking Smartphone because in today’s culture people are judge on how fashionable they are by their choice of mobile phone. The increasing trend in Smartphones means when consumers purchase new mobile phones less and less consumers are choosing the standard mobiles phones over Smartphones because of the social trend in today’s society. Nokia will be aware of this and may now spend the majority of

their efforts developing a Smartphone that can compete with their rivals’ products, in order to keep up with the trends of their consumers. Technological The technological advances in the industry are vital to the success of any new Smartphone in the market that is continually growing, as the level of competition rises Nokia must ensure that their Smartphones are at the highest level of innovation. With functions such as camera, internet, social networking and email all necessities on Smartphones Nokia will have to think of other functions to help differentiate and stand out from its rivals. As well as function more and more consumers are looking at the software running all the functions as a key indicator of the success and quality of the Smartphone, so Nokia’s alliance with Microsoft for their latest Smartphone’s seems a very good move as everyone are aware of the technological capabilities of Microsoft and the value they can add to any technological product. In the past Nokia were the market leaders in innovation in the mobile phone industry, however in recent times they have seemed well off the mark and struggle to compete with their rivals. This is why Nokia must consider their position in the industry and attempt to once again become the market leader by offering a new innovative capability and get to the market before its rivals.

Legal Intellectual property is the key to any technological business and must be cared for and protected to the fullest amount to ensure the business does not lose out to rivals. Nokia operate in an industry where it is very difficult to have a product that is different to its competitors, when they do release a product with an innovative capability it is vital to protect the rights to it through patents, copyright, trademarks or design to ensure they are not “stolen” by their competitors. Not only are competitors a threat of intellectual, but Nokia must ensure they do not fall victim to counterfeiters who claim to be a Nokia products but are cheap knock-offs.

As Nokia have manufacturing plants in a various countries it is extremely important that they abide by the laws and regulations set by the different countries as the laws will differ depending on the country, these can be employments laws, Health and Safety or even trade restrictions. Environmental In today’s culture it is very important for organizations to be seen as environmentally friendly and ethical with its manufacturing, because of the global effect it has on global warming so Nokia must ensure that they operate in an appropriate manner. With mobile phone recycling organizations becoming more and more popular, this demonstrates how important people are regarding it. The main issue with mobile recycling is the disposal of the batteries in the phones as these can become dangerous if not disposed of appropriately.

• More promotion for Nokia and Windows mobile operating system

Samsung had promoted in such a way that smartphones means it’s only Samsung phones Not only in smartphones but also whatever it is Smart means Samsung, in the minds of Indian consumers through our Mistry shopping in various shops in Bangalore we observed that the consumer are entering into shop with a mindset of buying Samsung or HTC Smartphones but not for Nokia and nokia is not at all in their consideration part and one more thing is that even the shopkeepers are also not forcing the customers to buy

Nokia Smartphones so Nokia should invest more for its promotions and should increase the margin levels of the Nokia Dealers and Distributors.

Starting price of Nokia windows operating system Smartphones should be reduced so that customer will ready to go for nokia then its competitor and customer can experience the advantage of windows and nokia which may lead to high sales of Nokia Smartphone’s where Samsung android based Smartphone’s starts from 7K inr so, the customers who unable to offer 11k for Nokia’s windows Smartphone will go for Samsung Smartphones where nokia will lose its sales and market share.

Present Nokia Brand Ambassador for India is priyanka chopra and we think that this should be changed because we perceive that Smartphones are more technology oriented and guys are more tech savvy then girls and Priyanka chopra as an ambassador will be an good for any Home appliance based products but for Smartphones we perceive that either the product itself should be an ambassador and for Smartphone it should be promoted through a smartest person so our recommendation is Bollywood actor Amir Khan but he is already associated with Nokia’s competitor brand Samsung so we think SharuKhan will be the best option for promoting Nokia Smartphones and Sharuk have more fans and famous then priyanka chopra.

Should involve more in experimental marketing which can remove the wrong perception about nokia mobile phone where most of the times customer’s complained that nokia mobile get hang. Nokia expect lumia series all other mobile phones are powered by Symbian operating system which is considered as one of the most user-friendly operating system for mobile phones which was developed by Symbian ltd. And most of this Symbian operating system powered Nokia phones always get hangs some the nokia mobiles having this problem are Nokia N97 C6-00 C5-00 etc… so because of this even today customers have wrong perception on Nokia Mobile phones performance so Nokia should involve in More experimental marketing for its Smartphones so that user can experience the windows

Based Smartphone’s and its performance but this Experimental marketing will reach only to few customers in order to reach the mass Nokia should provide the original (no dummy) windows based Smartphones which should connected to the big LCD or LED monitors through HDMI port so that user can experience the windows Smartphones in a big screen which will create an different experience and also user can experience the different features of windows Smartphones on the big screen with HD videos and photos shooted from windows based nokia Smartphones where user can check the picture quality and performance of the windows Smartphones and also Nokia can promote through High GUI based interactive website where user can virtually experience all the features of any Nokia mobile phones and this will be completely an new experience for the customers and this will reach the mass very soon at very low cost.

Windows should develop and provide more mobile applications, where android is providing more than 6-lakh app and more than 2 lakh apps are free out of that 6 lakh + apps this is the one of the main reason that attracts the user towards Android Smartphones where Nokia doesn’t have even single android based Smartphones in its portfolio but windows is unique feature of Nokia Smartphones and more user-friendly then android Smartphones so nokia has selected an correct platform for it’s Smartphones the only thing that nokia and Microsoft want to do is to develop more app for it’s windows Smartphones.

Promoting sales of Nokia Smartphone through 0% EMI. Smartphones are basically priced high so everyone can’t offer for Smartphones and from our research we came to know that most of them want to own Smartphones but they unable to spent 20k or 10k in one installment and they are ready to own a Smartphones if the company or retail offers a Smartphones through EMI but this features is already available in many retails but not with 0% EMI so if nokia promotes it’s Smartphones with 0% EMI through its Nokia priority shop where nokia can sell more Smartphones than before.

Educating the customers about the usage of Smartphone’s apart from social networking and E-mail checking. Today not only nokia many other brands also promoting their Smartphones in TV Advertisement only by showing facebook photo sharing and other Social networking features but apart from social networking Smartphones can do more like Making presentation, Video calls, online shopping , Internet banking , Information sharing, 3G & 4G features or High speed internet, online ticket booking, video chatting, watching and recording High Definition videos, and many more features and uses of NFC and DLNA.

Providing high end Nokia smart phones at very low price with 2 years contract with leading mobile network service providers (eg : Airtel, Idea, Aircel, Reliance). Today many people using same mobile service network for so many years so if nokia sign a tie-up or contract with some leading Mobile network service provider of India with the concept of providing the Smartphones at very low price to customers with an 2-3 contract of using same network under postpaid service .

Should increase the margin level of nokia dealers. We interacted with many multi brand and nokia priority shop owners and managers to know the margin level of them but none of them are ready to revel to us, So based upon secondary data we came to know that the margin level between re-distributor and the nokia dealer is just 2% which is very less, If nokia increase its dealers or retailers margin level then the retailers will push the nokia mobiles to their customers.



1. Do you have any mobile phone PARTICULARS YES NO NUMBER 50 0 100% 0% %AGE


All the respondents had mobile phone


2. How many mobile phones do you have : PARTICULAR 1 2 3 3+ NO. OF RESPONDENTS 37 13 0 0

Out of 50 respondents 37 says that they had 1 connection while 13 were having 2 connections


3. Which mobile are you using ? PARTICULAR NOKIA SAMSUNG OTHER NO. OF RESPONDENTS 27 16 7

Out of 50 respondents 27 were using NOKIA while 16 respondents were using MOTOROLA and 7 were using others.


4. Are you satisfied with the services PARTICULARS Yes No NUMBERS 41 9

Out of 50 respondents 41 respondents were satisfied with the services of there particular mobile while only 9 were not satisfied


5. Which facility attracts you most ? PARTICULARS PRICE STYLE BATTERY BACK UP MEMORY OTHER NOKIA 29 14 36 24 17 MOTOROLA 12 15 36 16 15 OTHERS 9 21 7 10 18

INTERPRETATION Out 50 respondents most of the respondents prefer Nokia then Motorola and others


6. Which advertisement media puts more impact on your buying decision ? PARTICULARS TV MAGAZINES NEWPAPER INTERNET OTHERS NO. OF RESPONDENTS 28 04 10 05 03

INTERPRETATION: Out of 50 respondents 28 gets aware of mobiles T.V, 5 by internet,10 by news papers, 03 by others while 04 by magazines.

7. From how long you are using this particular service mobile 93

PARTICULARS 1 2 3 More than 3 years


INTERPRETATION: Out of 50 respondents 10 were using there particular mobile since 1 years, 25 since 2 year, 11 since 3 years while only 4 were using there mobile from more than 3 years.


8. Would you like to change your current mobile in future ? PARTICULARS No. of RESPONDENTS YES NO 18 32

Out of 50 respondents 32 did not want to change there current while only 18 respondents want to change there mobile.


Q.9What qualities of mobiles are important to you while buying mobiles? Rank them in order of 1 to 9, where 1 being the most important and 9 being the least important.


RANK IN( %) Most preferred 80 64 72 30 14 92 94 Table of figure no. 4.5 prefer 15 24 26 60 12 08 4 No 5 effect 12 2 10 74 0 2

Maintenance Durability Style/ Design Price Uniqueness Comfort (edges) FM

100 90 80 70 60 50 40 30 20 10 0 M ost preferred M ost preferred M aintenance Durability prefer Style/ Design Price uniqness No effect Comfort (edges) FM


The following are important criteria as suggested by the respondents, Maintenance 60%, 10%,

80%, 15%, 5%, Durability 64%, 24%, 12%, Style/ Design 72%, 26%, 2%, Price 30%, Uniqueness 14%, 12%, 74%, Comfort (edges) 92%, 08%, 0% and FM 94%, 4% and 2%.


Q.10 Rate the following brands based on your perception on the mentioned criteria on a scale of 1-6 where, 1= Below Average 4= Good Criteria Maintenance Durability Style/ Design Color Size Price Availability Lightweight Comfort Nokia 5 6 4 5 4 4 4 4 5 2=Average 5= Very good Sony Ericsson 4 5 4 4 4 2 4 3 5 BenQ 2 2 3 3 3 2 1 3 3 3= Satisfactory 6= Excellent Panasonic 1 1 2 3 4 3 1 4 3 Samsung 3 3 5 4 5 5 3 5 4

Table of figure no. 4.6


6 5 4 3 2 1 0


Sony Ericsson Durability Availability

BenQ Style/ Design Lightweight

Panasonic Color Comfort

Samsung Size

Maintenance Price

Nokia is the clear leader in this question of preference asked to the respondents.

Q.11 Are you currently using Nokia? What is your opinion about it? Effect Yes No 64 36 No. of people (%)

Table of figure no. 4.13



64% Yes No

64 % are using Nokia mobile phones whereas rest of the people are using other mobile phones.

Suggestions given by the people ……..
During our survey we asked the people to give some suggestions to the compananies there is similar suggestion for both the companies given by 25 peoples that they should not increase their prices. And 1 suggestions given by only 1 person out of 50 that is cellular companies that there should be some function to indicate the person is driving this will not avoid accidents during driving.



• • Nokia introduces a new phone into the market every two or three months. In Nokia's human resource management, the features are to improve employee's techniques by regularly training and developing effective teamwork. While Samsung always improving model of their product with different features 100

Nokia's financial position is surpassing its competitors in telecommunication. While Samsung in indulging itself in more than telecom it has more products more than mobiles.

• •

Nokia has established its leadership in mobile phone market according to its successful marketing strategies and internal management. while Samsung is always trying to indulge with media . Nokia's philosophy is to learn continuously, to satisfy consumers, and to respect individual and pursue professionalism.

After analyzing all the data we have some recommendations such as:-

Advertisements: -


Nokia use advertisement mode of promotion after launching a new cell phone in the market. So people don’t have much knowledge about their latest models. While Samsung have lots of ads in market before launching it

EXAMPLE: ⇒ Giving advertisement on television or cable ⇒ Giving print media add which explain all the features of cell phone

SPECIAL SCHEMES: Nokia always launch high range products. So to increase the sales it has to give advertisement or special discount or special schemes with every purchase of new cell phone. Samsung have color variety in their cell phones as Nokia don’t have this much.



The customer analysis of this coursework highlighted that the upper segment of the population are the major consumers of mobile phones. Extensive research was conducted into the strategies being implemented for the rural market.

Nokia and Sony Ericsson segment the market on a similar basis. However, they have different interpretations Nokia has saturated the urban market including the B and C class cities and is now targeting potentially untapped markets. Sony Ericsson on the other hand has chosen to focus its energies on the B and C class cities since which it had not ventured into so far.

The prominent brands in the Indian cellular phone industry are Nokia, Sony Ericsson, Motorola, and Samsung. Nokia has the single largest market share in India of 60%. We have analysed that Nokia is better than Samsung . Nokia and also on one of its major competitors; Sony Ericsson since these are very prominent players in the Indian market.



For “Study of consumer behavior towards NOKIA and SAMSUNG”

Name – Contact no.Sex- male female

1. Do you have any mobile?



2. How many mobile do you have?






3. Which mobile are you using?



4. Are you satisfied with the services?



5. Which facility attracts you most?


Call Style




6. Which advertisement media puts more impact on your buying decision?







7. From how long you are using this particular mobile?

1 year

2 years

3 years

More than 3 years

8. Would you like to change your current mobile in future?



If yes then why………………………………



What qualities of mobiles are important to you while buying mobiles? Rank them in order of 1 to 9, where 1 being the most important and 9 being the least important.


RANK (From1-9) Most preferred preferred No effect

Maintenance Durability Style/ Design Price Uniqueness Comfort (edges) FM


Rate the following brands based on your perception on the mentioned criteria on a scale of 1-6 where,

Criteria Maintenance Durability Style/ Design Color Size Price Availability Lightweight Comfort


Sony Ericsson






Have you ever used Nokia? What is your opinion about it?  Yes  No




 Kothari, C.R.(2007), Research Methodology Methods and Techniques,

1. 2. 3.

       ,nokia-rolls-out-advertising-blitz-forlumia.aspx,nokia-is-the-most-trusted-brandof-india.aspx,12.aspx

 


Checklist of items for the Final Project Report

This checklist is to be attached as the last page of the report.
This checklist is to be duly completed, verified and signed by the student. Is the report properly hard bound/Spiral bound. Is the Cover page in proper format? Is the Title page (Inner cover page) in proper format? (a) Is the Certificate from the Supervisor in proper format? (b) Has it been signed by the Supervisor? Is the Abstract included in the report properly written within one page? Have the keywords been specified properly? Yes / No Is the title of your report appropriate? The title should be adequately descriptive, precise and Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No


must reflect scope of the actual work done.

Have you included the List of abbreviations / Acronyms? Uncommon abbreviations / Acronyms should not be used in the title. Does the Report contain a summary of the literature survey? Does the Table of Contents include page numbers? (i). (ii). Are the Pages numbered properly? Are the Figures numbered properly? (Figure Numbers and Figure Titles at the bottom of the figures)

Yes / No

Yes / No

Yes / No

Yes / No (iii). Are the Tables numbered properly? (Table Numbers and Table Titles at the top of the tables) (iv). (v). Are the Captions for the Figures and Tables proper? Are the Appendices numbered properly? Yes / No Yes / No Yes / No Is the conclusion of the Report based on discussion of the work? Are References or Bibliography given at the end of the Report? Yes / No Yes / No

Have you written your report according to the guidelines? The report should not be a mere printout of a Power Point Presentation. A Compact Disk (CD) containing the softcopy of the Final Report has been placed in a protective jacket securely fastened to the inner back cover of the Final Report. Please write your name and Roll No with a marker on the CD as well as on the CD Jacket.

Yes / No

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Declaration by Student:

I certify that I have properly verified all the items in this checklist and ensure that the report is in proper format as specified in the course handout.
________________________________ Signature of the Student


Date: _________________________

Name: ___________________________

Roll No.: ___________________________


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