A PROJECT ON MARKETING STRATEGY AND SALES OF NOKIA IN ASSAM

CONTENTS



1. NOKIA : AN INTRODUCTION - - - - - - - - - - PAGE 1-11

2. DETERMINATION OF PROBLEM AREA - - - - PAGE 12

3. COLLECTION OF DATA - - - - - - - - - - - - - - - - PAGE 13

4. DATA ANALYSIS - - - - - - - - - - - - - - - - - - - - - PAGE 14

5. FINDINGS - - - - - - - - - - - - - - - - - - - - - - - - - - - PAGE 15

6. MARKETING STRATEGY OF NOKIA - - - - - PAGE 17-23

7. MARKET SHARE OF NOKIA - - - - - - - - - - - - PAGE 24-25

8. FINANCIAL INFORMATIONS - - - - - - - - - - - PAGE 26-32

9. RECOMMENDATIONS - - - - - - - - - - - - - - - - PAGE 33-34

10. CONCLUSION - - - - - - - - - - - - - - - - - - - - - - - - PAGE 35

11. ACKNOWLEDGEMENTS - - - - - - - - - - - - - - - - PAGE 36

12. BIBLIOGRAPHY - - - - - - - - - - - - - - - - - - - - - - - PAGE 37



PAGE 1

NOKIA : AN INTRODUCTION

Everyone has a need to communicate and share. Nokia helps people to fulfill this need and they help people feel close to what
matters to them. They focus on providing consumers with very human technology technology that is intuitive, a joy to use,
and beautiful.


History of nokia


NOKIAS FIRST CENTURY: 1865-1967


The first Nokia century began with Fredrik Idestam's paper mill on the banks of the Nokianvirta river. Between
1865 and 1967, the company would become a major industrial force; but it took a merger with a cable company
and a rubber firm to set the new Nokia Corporation on the path to electronics...
1865: The birth of Nokia
Fredrik Idestam establishes a paper mill at the Tammerkoski Rapids in south-western Finland, where the Nokia
story begins.

1898: Finnish Rubber Works founded
Arvid Wickstrm founds Finnish Rubber Works, which will later become Nokia's rubber business.
PAGE 2
1912: Finnish Cable Works founded
Eduard Poln starts Finnish Cable Works, the foundation of Nokia's cable and electronics businesses.
1937: Verner Weckman, industry heavyweight
Former Olympic wrestler Verner Weckman becomes President of Finnish Cable Works.
1960: First electronics department
Cable Works establishes its first electronics department, selling and operating computers.
1962: First in-house electrical device
The Cable Works electronics department produces its first in-house electrical device - a pulse analyzer for
nuclear power plants.
1967: The merger
Nokia Ab, Finnish Rubber Works and Finnish Cable works formally merge to create Nokia Corporation.
THE MOVE TO MOBILE: 1968-1991

The newly formed Nokia Corporation was ideally positioned for a pioneering role in the early evolution of
mobile communications. As European telecommunications markets were deregulated and mobile networks
became global, Nokia led the way with some iconic products...
1979: Mobira Oy, early phone maker
Radio telephone company Mobira Oy begins life as a joint venture between Nokia and leading Finnish
television maker Salora.
1981: The mobile era begins
Nordic Mobile Telephone (NMT), the first international mobile phone network, is built.


PAGE 3
1982: Nokia makes its first digital telephone switch
The Nokia DX200, the companys first digital telephone switch, goes into operation.
1984: Mobira Talkman launched
Nokia launches the Mobira Talkman portable phone.
1987: Mobira Cityman birth of a classic
Nokia launches the Mobira Cityman, the first handheld NMT phone.
1991: GSM a new mobile standard opens up
Nokia equipment is used to make the worlds first GSM call.
MOBILE REVOLUTION: 1992-1999

In 1992, Nokia decided to focus on its telecommunications business. This was probably the
most important strategic decision in its history.
As adoption of the GSM standard grew, new CEO Jorma Ollila put Nokia at the head of the
mobile telephone industrys global boom and made it the world leader before the end of the decade...
1992: Jorma Ollila becomes President and CEO
Jorma Ollila becomes President and CEO of Nokia, focusing the company on telecommunications.
1992: Nokias first GSM handset
Nokia launches its first GSM handset, the Nokia 1011.
1994: Nokia Tune is launched
Nokia launches the 2100, the first phone to feature the Nokia Tune.
1994: Worlds first satellite call
The worlds first satellite call is made, using a Nokia GSM handset.
1997: Snake a classic mobile game
The Nokia 6110 is the first phone to feature Nokias Snake game.

PAGE 4
1998: Nokia leads the world
Nokia becomes the world leader in mobile phones.
1999: The Internet goes mobile
Nokia launches the world's first WAP handset, the Nokia 7110.
NOKIA NOW: 2000-TODAY

Nokias story continues with 3G, mobile multiplayer gaming, multimedia devices and a look
to the future...
2002: First 3G phone
Nokia launches its first 3G phone, the Nokia 6650.
2003: Nokia launches the N-Gage
Mobile gaming goes multiplayer with the N-Gage.
2005: The Nokia Nseries is born
Nokia introduces the next generation of multimedia devices, the Nokia Nseries.
2005: The billionth Nokia phone is sold
Nokia sells its billionth phone a Nokia 1100 in Nigeria. Global mobile phone subscriptions pass 2 billion.
2006: A new President and CEO Nokia today
Olli-Pekka Kallasvuo becomes Nokias President and CEO; Jorma Ollila becomes Chairman of Nokias board.
Nokia and Siemens announce plans for Nokia Siemens Networks.
2006: The birth of Nokia Eseries
The ultimate handheld communicator mobiles (Enterprise series) are launched.


PAGE 5
STRUCTURE OF THE COMAPANY:

Nokia comprises three business groups:
Mobile Phones connect people by providing expanding mobile voice and data capabilities across a wide range
of mobile devices.
Multimedia gives people the ability to create, access, experience and share multimedia in the form of
advanced mobile multimedia computers and applications with connectivity over multiple technology standards.
Enterprise Solutions offers businesses and institutions a broad range of products and solutions, including
enterprise grade mobile devices, underlying security infrastructure, software and services.
Our business groups are supported by various horizontal entities:
Customer and Market Operations is responsible for sales and marketing, manufacturing and logistics, and
sourcing and procurement for mobile devices from Mobile Phones, Multimedia and Enterprise Solutions.
Technology Platforms delivers leading technologies and platforms to Nokia's business groups and external
customers.

PAGE 6
Many other Nokia-wide horizontal units drive and manage specific Nokia assets. These include Brand and
Design, Developer Support, Research and Venturing, and Business Infrastructure.
Corporate functions (support Nokia's businesses with company-wide strategies and services)
Nokia Siemens Networks, which started operations on April 1, 2007, combines Nokias networks business
and Siemens carrier-related operations for fixed and mobile networks into a company owned approximately
50% by each of Nokia and Siemens, and consolidated by Nokia.
MISSION OF NOKIA:
The mission of venturing activity: the renewal of Nokia.

Venturing at Nokia contributes to Nokia's renewal by identifying and
developing new businesses. The Nokia Ventures Organization and the other venturing teams throughout Nokia
are working on new businesses that extend beyond the scope or current focus of Nokia's core business units.
Nokia is expanding their interests towards new areas, but still working within Nokia's broad vision of "Life
Goes Mobile." This venturing activity triggers new developments that play a significant role in the renewal of
the company.
Exploration and experimentation are at the core of venturing, and Nokia recognizes that innovation does not
only happen within Nokia. Their innovation networks extend beyond the company and include research centers,
academics and business partners, and entrepreneurs.

Throughout its history, Nokia has renewed its core businesses and created innovative businesses in entirely new
areas. Nokia's venturing activity has created independent businesses, contributed to the growth and profit of the
core businesses of Nokia, provided financial returns on investments, and has produced intangible assets and
insights.


PAGE 7
RESEARCH AT NOKIA:
Nokia believes that effective research and development is vital to remaining
competitive in the mobile communications industry. As of December 31, 2005, Nokia employed 20 882 people
in research and development in 26 countries, representing approximately 36% of Nokias total workforce.
R&D expenses totaled EUR 3825 million in 2005, representing 11.2% of Nokias net sales in 2005, compared
to 12.9% of net sales in 2004. We invest a substantial portion of our resources in research and development
activities within our principal business groups, Technology Platforms, and in the Nokia Research Center.

Nokia Research Center drives Nokia's technological competitiveness and renewal in technology areas vital for
the company's future success. Interacting closely with all Nokia business groups, the research center supports
Nokia's evolving core businesses by:
providing expertise in strategically important areas
developing new concepts, technologies and applications
developing disruptive technologies beyond the current product horizon
Not Only 'R' But 'D'
Nokia Research Center acts as a link between basic industry research and product development - as well as responding to the
product development needs of Nokia's business groups, they are also responsible for carrying out Nokia's longer-term research.

The main booster for this is our pioneering funding and operational model. About 70 per cent of our annual budget comes
from selling contracted research directly to Nokia's business groups. The research center must churn out tangible results of
projects for our businesses and react fast to changes in the business environment.

Our ability to react to sudden changes is developed through long-term research. Another factor in our success is our
organizational culture, which consciously cultivates the innovative spirit and encourages individual initiative. At Nokia,
information and people are moving constantly around the company, radiating knowledge and assisting internal benchmarking.
PAGE 8

Consequently, they have learned to focus on research for the future, while generating new technologies useful for the present.
Leading Research Collaboration
Nokia Research Center manages and coordinates both research cooperation and standardization for the company. Industrial
cooperation in pre-competitive research and active standardization are prerequisites for a healthy mobile communications
business, where only fully compatible products and services can enlarge existing markets and open up new ones.
Nokia is able to keep its soft signal antenna up through venturing and standardization as well as continual external networking
with business communities, customers, product users, and a range of other stakeholders.
Wide Spectrum of Sciences

Nokia Research Center's laboratories are the backbone of the flexible R&D framework:
Software & Application Technologies laboratory
Multimedia Technologies laboratory
Computing Architectures laboratory
Networking Technologies laboratory
Radio Technologies laboratory
Operating in six countries, Nokia's corporate research unit employs nearly 1,100 staff, with one in five employees
holding a PhD. The best, most knowledgeable people attract others like them and our diverse teams bring together both
newcomers and distinguished experts. Our success is shown by the fact that Nokia Research Center generates half of
the essential patents of the company.



PAGE 9
NO COMPROMISE WITH QUALITY:
Quality is at the heart of Nokias brand promise, very human technology.

Nokia wants their customers to know that Nokia is the best quality company in the industry.

Their goal is to have the industrys best products and services, most loyal customers and most efficient
operational mode.

Nokia believes that quality is about meeting and exceeding customer expectations. At Nokia, they view quality
holistically and as an integral part of business management. The quality of products and customer experiences
depends on the quality of processes, which in turn is tied to the quality of management

Nokias key quality targets are:
For Nokia to be number one in customer and consumer loyalty
For Nokia to be number one in product leadership
For Nokia to be number one in operational excellence
The quality and reliability of our products and services are among the most important factors driving customer
satisfaction and loyalty. Designing good quality products begins with understanding customer requirements and
creating the best user experience. The whole chain, from suppliers through to R&D, operations, sales and
distribution to customers, impacts the end-result everybody in the chain has a role to play in achieving quality.

Our products and customer experiences are the results of our everyday processes. Process management means
finding the simplest way of operating, in order to create customer value in a lean manner. Our process thinking
covers everything we do, and processes are continuously improved based on the measures and the feedback we
receive from our customers.

Quality in management is vital for leveraging innovations globally and improving productivity in general. Our
approach to this is platform thinking, process management and combining fact-based management with value-
PAGE 10
based leadership. We have developed a key framework for improvement at Nokia, which we call the 'Self-
Regulating Management System'. It's about management practices that allow them to run their business in a
consistent, effective and fact-based manner.
Commitment to quality improvement is a continuous management process. It is both a business strategy and a
personal responsibility, and it is a part of Nokias culture and values. But at the end of the day, quality
improvement is much more than something they can quantify in words or pictures. It is an attitude a mindset.
By taking quality personally they are able to deliver world-class quality to our customers. It is their source of
inspiration, energy and excitement.

Take quality personally!
PRODUCTION UNITS OF NOKIA:

Networks Technology
China,Finland,India
Mobile Devices and Enhancements Brazil,China,Finland,India,Germany,UK,Hungary,Mexico,South
Korea


PAGE 11
GROUP EXECUTIVE BOARD OF NOKIA:
Chairman
Olli-Pekka Kallasvuo
President and CEO of Nokia Corporation

Robert Andersson
Executive Vice President, Customer and Market Operations

Simon Beresford-Wylie
Chief Executive Officer, Nokia Siemens Networks

Timo Ihamuotila
Executive Vice President, Sales and Portfolio Management, Mobile Phones

Mary T. McDowell
Executive Vice President and General Manager of Enterprise Solutions

Hallstein Moerk
Executive Vice President, Human Resources

Tero Ojanpera
Executive Vice President, Chief Technology Officer

Niklas Savander
Executive Vice President, Technology Platforms as of April 1, 2006

Richard A. Simonson
Executive Vice President, Chief Financial Officer

Veli Sundback
Executive Vice President, Corporate Relations and Responsibility of Nokia Corporation

Anssi Vanjoki
Executive Vice President and General Manager of Multimedia

Dr. Kai Oistamo
Executive Vice President and General Manager of Mobile Phones


PAGE 12
Determination of problem area

My survey on Nokia was specially concentrated in its marketing strategy and its recent sales in Assam. I went to a number
of dealers and customers of Guwahati, Tezpur and Nagaon district to get a clear concept about the performance of Nokia. I
got almost a good response from most of the dealers and customers. Only a few dealers and customers are too busy to fill up
the questionnaire. Few dealers are also not interested because of the low sale of Nokia in their outlet. I found them more
interested with other mobile companies such as Spice. In case of customers, I found all the Nokia users very co-operative
and helpful to me. They all are willing to see Nokia as the undisputed leader in mobile making. They helped me
tremendously with their much valuable feedback and ideas. But some non-Nokia users were too much harsh and not willing
to participate in the survey. But, I was helped by most of the people by and large.






PAGE 13
Collection of data

For this project, data have been collected by following means from customers and dealers:
Sales data have been mostly collected from the dealers.
The survey is mainly concentrated in lower Assam as the data collection has been done in Guwahati, Tezpur and
Nagaon district.
User feedback has been taken from existing Nokia users.
Nokia sales updates have been taken from Sales Executives of Nokia and Micro distributors in Nagaon and Tezpur.
Financial data have also been taken from Sales Executives.
Sales Executives also helped me to gain knowledge about existing mobile phones and upcoming phones of Nokia.
Few dealers also helped me to know more about current market trend of Nokia in Assam and in their area.
I also gathered knowledge of cell phones from books e.g. THE CELLPHONE by Heather A. Horst and Daniel
Miller, MOBILE COMMUNICATIONS by Chul-Hee Kong and Jaiyung Lee etc.
Marketing knowledge has been gathered from the book MARKETING MANAGEMENT by Keller, Kotler, Koshy
and Jha.
Financial information about Nokia has been gathered from www.nokia.com
Indian market strategies has been gathered from www.economictimes.com
Websites such as www.india-cellular.com and www.nokia.com provide me the knowledge about the history of
Nokia.
Knowledge about the technical features of Nokia phones has been gathered from www.nokia.co.in and
www.gsmarena.com
A user poll is going on in www.orkut.com in the community NOKIA INDIA PVT LTD.
PAGE 14
Data analysis

A data analysis has been done over the collected data from the dealers, customers, micro-distributors, sales executives, cell
phone related books and websites.
Basic multimedia handsets are not available in low price segment (around Rs. 4000) as Sony Ericsson is hampering
sales in this price range by its handset K310i.
Less advertisement in local news papers about the new offers.
Non-availability of MP3 handsets in low price range.
Voice-recording memory is not much in low priced handsets whereas the S-5 model of Spice is providing it.
Poor sound quality in low priced handsets.
Too much time taken for the activation of the offer SIM cards.
Non-availability of replacement parts in the Nokia Care except those in Guwahati. So too much servicing time
requires.
No brand ambassadors.
No demo sets for the dealers.
Less schemes and offers for the dealers whereas Motorola often provides handsome schemes for its dealers.
Nokia lacks attractive looks in their handsets. But, this problem is going to be solved soon as it is going to launch
some lucrative phones in next few months such as 7500 Prism, 8600 Luna, N77, N76, E90, 6500 Slide, 6500 Classic,
3500 Classic etc.
Nokia is still the leader in worldwide mobile industry.
No other mobile companies can match with Nokias quality.
Only Nokia has extensive research facilities in every corner of world to provide better technology to its customers and
the mobile industry.

PAGE 15
FINDINGS

The findings of the data analysis are given below:
The market share of Nokia is found to be almost 75% here where as Spice has 9%, Motorola has 7%, Sony Ericsson
and Samsung both has 4%, LG has 3% and others have 2%. So spice is hampering Nokia sales especially in low price
range and Motorola is hampering the sales somewhat by taking the advantage of the lack of attractive look in Nokia.
Now LG is producing a low cost MP3 handset without camera. So, it also steals the customers who require a low cost
MP3 handset which can hold a few of their favorite music.
Almost 90% of the dealers think that they are getting less profit in Nokia than other companies. Regarding to my
survey, the truth behind this fact is that there is too much Nokia dealers in the market. Thats why excessive
competition lowers the selling price of Nokia in the market as there is no minimum selling price is given by the
company. So in search for more profit they are selling mobiles other than Nokia.
Almost 90% of the dealers think that Nokia should have a brand ambassador.
Most of the customers and dealers think that the after sales service of Nokia is too much slow and time-taking.
Almost 50% of the dealers say that the Nokia sale falls in recent past.
Almost all the dealers want the time of price drop adjustments to be extended to 2-3 weeks at least.
Almost 60% of the dealers do not have demo sets.
Almost 75% of the dealers want more offers and schemes for them and the customers.
Almost all the dealers want an exchange sale offer.
70% of dealers think that the sale of Nokia handsets falls in the price range of Rs. 4000-8000 whereas 30% of the
dealers think it to be in the price range of Rs. 1500-4000. This is because of non-availability of basic multimedia
phones, poor sound quality, fewer features than its other counterparts and also very low price of Spice phones.
PAGE 16
MARKETING STRATEGY OF NOKIA

Nokia's strategy relies on growing, transforming, and building the Nokia business to ensure its future success.
Nokia's Strategy in India
Nokia entered the Indian market in 1994. The first ever GSM call in India was made on a Nokia 2110 mobile phone on its
own network in 1995. When Nokia entered India, the telecom policies were not conducive to the growth of the mobile
phone industry.

The tariffs levied on importing mobile phones were as high as 27%, usage charges were at Rs.16 per minute and, at these
high rates, consumers did not take to mobile phones. Nokia also had to face tough competition from other powerful global
players like Motorola, Sony, Siemens and Ericsson...
Nokia - Made in India
In April 2005, Nokia India, a subsidiary of Finland-based Nokia, announced that it was setting up a manufacturing facility for
mobile devices in Chennai, the state capital of Tamil Nadu in southern India. Nokia planned to invest US$ 100-150 million in
the facility, where the production was expected to begin in the first half of 2006.

Pekka Ala-Pietil, President and Head of Customer & Market Operations, Nokia Corporation said, Establishing a new
factory in India is an important step in the continuous development of our global manufacturing network. India was ideal for
Nokias new production facility. Each mobile handset has more than 400 parts and the
PAGE 17
average production capacity of each manufacturing unit of Nokia is around 20 million units.
This level of manufacturing involves a total of 8 billion components per annum, requiring strong logistical support. Nokia's
manufacturing facility needed to be located close to a major international airport or sea port for quick supply of components.
India met all these requirements, and also enjoyed cheap manpower costs and proximity to the rapidly growing Asia Pacific
markets.
Besides, Nokia was the market leader in mobile communication devices in India. The company has been carrying out sales &
marketing, customer care and research & development activities in the country. Nokia considers India to be one of its most
important markets. The companys Code Division Multiple Access (CDMA) facility is located in Mumbai and provides
software and technical support to CDMA consumers in India and other Asia Pacific countries. In 2004, Nokia was chosen as
the most respected consumer durables company by Businessworld.

Bouncing Back
Nokia was quick to learn from its mistakes and adopted strategies to regain its lost market share. Globally, during the first
quarter of 2005, the companys sales reached 7.4 billion euros, with the company selling 54 million phones during the period.
In India, Nokia continued its leadership in GSM with a market share of 74% in March 2005. Nokia also surpassed Samsung in
color mobiles in the GSM segment, recording a share of 55% in the same month (Refer Table VIII for share of major mobile
phone brands in the GSM segment and their market shares).

PAGE 18
Nokia reorganized itself at the global level in 2004. At this point, a multimedia division was formed.
The divisions Indian operations concentrated on promoting the concept of high-end telephones in smaller towns while going
in for higher volumes in larger cities. The marketing division of the company concentrated on making distributors in small
towns sells high-end products. Though, the distributors were skeptical to start with, by the end of 2004, the process was
streamlined and the results started to show...

The Future Prospects
According to industry analysts, by 2010, the mobile phones industry in India will be driven by voice, multimedia and mobile
services for organizations. The tele-density in India was estimated to increase to 18.2% by March 2009, with mobile
subscription rising to 148.77 million by that time. In many instances, the cell phone has become the only basic telephone link
of a household/enterprise in India, rather than a landline phone. It was turning out to be more economical and efficient than
fixed line telephones. So, there was great scope for further expansion with reduction in the cost of ownership...
Wieden+Kennedy chosen as the lead strategic and creative agency for Nokia's mobile phones
Wieden+Kennedy (W+K) has recently been appointed as the global lead agency for Mobile Phones group in Nokia. W+K will
act as the strategic global driving creative excellence across Mobile Phones' marketing, and will be responsible for the creation
and development of all global campaigns.
Mobile Phones marketing are currently changing its mode of operation with a focus on planning and increasing the
effectiveness and efficiency of all marketing activities. The agency review has been an integral part of the marketing change
process.

PAGE 19
A strong emphasis to choose an agency that is best positioned to support the Mobile Phones strategy and business
requirements over time were key to the selection process. Additionally, a diverse repertoire of knowledge and experience was
a key priority.

"Wieden and Kennedy's track record demonstrated strength in creative thinking and the potential to be a strong strategic and
business marketing advisor with a solid commitment to Nokia's business priorities and amibitions. We expect this relationship
to help take us to our goal of becoming the most loved and admired iconic brand", says Jo Harlow, Senior Vice President,
Marketing, Mobile Phones, Nokia.
W+K will begin working on marketing projects in the fall, with full execution beginning on January 1, 2008.

Why Nokia is No. 1 in India, China
It wasn't hard for Wang Ninie to decide on a mobile phone. In early March the twenty-something Beijing entrepreneur saw a
golden Nokia handset with a flower pattern etched into the trim, one of the company's 'L'Amour' line of high-end designer
phones.
"I fell in love with it," she says. At $470, the phone wasn't cheap, and she had to wait a few hours for delivery since the shop
didn't have one in stock. No matter. Wang knew she had to have it. "I didn't even look at other phones," says Wang, who has
recommended the handset to friends.
Jeevanlal Pitodia is equally smitten with Nokia. The 27-year-old Bombay (Mumbai) fruit vendor used to spend his days
pounding the pavement in the city's alleys, hawking oranges, apples, and bananas.
PAGE 20
Last September, Pitodia ponied up $56 for his first handset, a simple but sturdy Nokia 1100. Now he sits under a colorful
beach umbrella, earning as much as $10 a day taking orders by phone for both him and nearby vendors.
"I tried many phones, but Nokia is the most user-friendly," says Pitodia. "I am the only one in the footpath with a mobile," he
says proudly.
More than any other handset maker, Nokia Corp. has connected with the likes of Wang and Pitodia and their billions of
countrymen. In both China and India, the Finnish company is the top brand.

In China last year, it had nearly 31% of a crowded market, well ahead of the 10% controlled by No. 2 Motorola Inc. Nokia's
sales in Greater China (the mainland, Hong Kong, and Taiwan) jumped by 28%, to $4.5 billion.
The region today is the company's biggest market, accounting for 11% of global revenues, compared with 8% in the U.S. In
India, Nokia has a 60% share, with sales last year of about $1 billion. By 2010 the company expects India to be its No. 2
market.
Nokia isn't letting up: On Mar. 11 it opened its first Indian factory, a $150 million facility near the southern city of Madras
(Chennai) that will turn out as many as 20 million inexpensive phones annually both for the local market and for export. And
the company is doubling the size of its plant in the Chinese city of Dongguan, near Hong Kong.
The two Asian giants are of fundamental importance for Nokia. The Finnish company has played catch-up in the U.S., where
Motorola has beaten it with hot-selling models such as the ultra-thin RAZR. But the U.S. market is nearly saturated.
PAGE 21
The company that can control Asia's Big Two will have a lead in the global handset wars. Today, China is the world's No. 1
cellular market, with some 400 million users and growth last year of 20%. While India is far smaller, with just 81 million
users in February, handset sales are expected to double this year and total users could hit 500 million by 2010.
"China and India are critical to Nokia's overall strategy and they can only get more important," says Neil Mawston, associate
director of consultancy Strategy Analytics.

Caught off guard
Just a few years ago, Nokia faced big troubles in both countries. In India, growth was sluggish. Nokia was an early mover --
the country's first cell-phone call was made on one of its handsets -- but regulation hindered expansion.
In China, Nokia not only trailed Motorola but was threatened by ascendant domestic players such as TCL and Ningbo Bird,
newcomers to the business that had quickly gobbled up almost half of the market with their inexpensive but well-designed
handsets.
The Finns "were caught off guard by the rise of the domestic vendors," says Ted Dean, managing director at BDA China Ltd.,
a Beijing consulting firm. "Suddenly, Nokia was struggling."
To fight back, Giles pushed through big changes. Nokia decentralized, going from three Chinese sales offices in 2003 to 70
today. Instead of eight national distributors, Nokia now has 50 provincial ones.

PAGE 22
And since rivals were having great success with handsets designed for mainland users, Nokia introduced its own China-
specific models. For instance, since many rural Chinese aren't familiar with the Romanized transliteration system that most
cell phones use to input Chinese for text messages, Nokia developed two phones with software that lets them write characters
with a stylus.

And Nokia invested in new computer systems that provide detailed sales data. "Tomorrow, I will be able to tell you what
happened today in the top 4,500 outlets," Giles boasts. "In a week's time, I will be able to tell you about 30,000 outlets." The
result: Nokia sold 27.5 million handsets in China last year, triple what it sold in 2003. Now, the company is planning for the
launch of 3G in China, expected this year.
Since 2002, when India's cellular market took off, Nokia has drawn on its China experience to consolidate its lead. In 2004 the
company launched two India-specific models, which included a flashlight, dust cover, and slip-free grip (handy during India's
scorching, sweaty summers).
Nokia introduced software in seven regional languages for non-Hindi speakers and added ring-tones of patriotic songs such
as the nationalist hymn India Is the Best. And the company's marketers pitched the phones through ads tailored to India, with
one early campaign showing burly truck drivers calling home on Nokia handsets.
"We invested when the market was nothing," says Robert Andersson, who oversees manufacturing, sales, and marketing at
Nokia. "We have been able to harvest the fruits of that commitment in the last four years."
Fierce rivals
Nokia has also reaped the fruits of rivals' missteps. Motorola was slower in reacting to the threat from the Chinese locals and
has had a tougher time bouncing back. "Motorola didn't change its strategy for a long time," says Chris Han, an analyst in
Beijing at Norson Telecom Consulting.

PAGE 23
The Chinese upstarts, meanwhile, have suffered sharp reversals due to disappointing quality. In India, Motorola didn't focus on
the market early enough, says Pankaj Mohindroo, president of the Indian Cellular Assn., a trade group. Today its share there is
just 5% or so.
Rivals say the time is right to eat into Nokia's lead. Samsung in the past focused solely on the middle to high end of the market
in India but began selling lower-cost phones last year. And on Mar. 7 the Korean company opened a new factory in Gurgaon,
near Delhi.
Motorola has revamped its structure in China, expanding its sales force and strengthening its distribution network to cover 300
cities. By February, Motorola had boosted its market share by several percentage points.
"We've done a lot of the blocking and tackling," says Michael Tatelman, Motorola's China chief. And in India, Motorola is
planning to market phones costing as little as $35. Motorola Vice-President Allen Burnes calls India "pivotal" and says the
company will open its first factory there in 18 months. Of course, that's 18 months behind Nokia, giving the Finns another
opportunity to solidify their lead in Asia's Big Two.

Focused Mobile Marketing
The Nokia Local Marketing Solution is a unique solution providing significant benefits for the service operator. It offers an
interesting and competitive alternative to marketing both owned and partnered cellular and non-cellular services. With the
solution, the mobile operator can boost usage of existing service and create new business by providing advertising space for
local business owners.

PAGE 24
MARKET SHARE OF NOKIA

Nokia owns 79% of the GSM market share in India
Finnish handset major Nokia has retained the top slot in Indian GSM market with 79 per cent share, while US giant Motorola
has more than doubled its share to seven per cent this year, according to a study.
Motorola has been able to significantly improve its share by to seven per cent this year from three per cent in 2005, according
to the latest annual TNS CellTrack 2006 study.
It said the US companys gain was possibly the loss of South Korean handset maker Samsung, whose market share dropped to
four per cent in 2006 from six per cent a year ago.
In the CDMA market, LG has consolidated its position as the market leader with 49 per cent market share this year against 43
per cent in 2005, the study said.
While Nokia managed to retain its share in CDMA handsets, Samsung and Motorola lost market share from 17 per cent to 8
per cent and 12 per cent to 4 per cent respectively.
In Assam
The market share of Nokia is found to be almost 75% here where as Spice has 9%, Motorola has 7%, Sony Ericsson and
Samsung both have 4%, LG has 3% and others have 2%. Spice is lowering Nokia sales especially in low price segment and its
arch rival Motorola is hampering the sales somewhat by taking advantage of the lack of attractive look in Nokia.

PAGE 25
NOKIA IN WORLD MARKET
India is Nokias 3
rd
largest market in terms of mobile phone sales whereas China and United states occupying 1
st
and 2
nd
place
respectively.

10 major markets, net sales
2006 EURm 2005 EURm 2004 EURm
China 4913 3403 2678
USA 2815 2743 3430
India 2713 2022 1369
UK 2425 2405 2269
Germany 2060 1982 1730
Russia 1518 1410 946
Italy 1394 1160 884
Spain 1139 923 768
Indonesia 1069 727 ------
Brazil 1044 614 ------







PAGE 26
FINANCIAL INFORMATIONS
Nokia reports Q1 2007 net sales of EUR 9.9 billion and EPS of EUR 0.25

Profitability strong for the quarter - driven by a sequential increase in gross margin
NOKIA IN THE FIRST QUARTER 2007
EUR million Q1/2007* Q1/2006**
Change
%
Net sales 9 856 9 507 4
Mobile Phones 5 583 5 869 -5
Multimedia 2 252 1 758 28
Enterprise Solutions 326 186 75
Networks 1 697 1 699 0
Operating profit 1 272 1 367 -7
Mobile Phones 936 1 085 -14
Multimedia 424 323 31
Enterprise Solutions -38 -66
Networks 78 149 -48
Common Group Expenses -128 -124
Operating margin (%) 12.9 14.4
Mobile Phones (%) 16.8 18.5
Multimedia (%) 18.8 18.4
Enterprise Solutions (%) -11.7 -35.5
Networks (%) 4.6 8.8
Net profit 979 1 048 -7
EPS, EUR
Basic 0.25 0.25
Diluted 0.25 0.25







PAGE 27
FIRST QUARTER 2007 HIGHLIGHTS
Estimated industry device volumes of 253 million units, down 13% sequentially and up 18% year on
year.
Nokia device volumes of 91.1 million units, down 14% sequentially and up 21% year on year.
Nokia estimated device market share 36%, at the same level as Q4 2006 and up from 35% in Q1 2006.
Nokia device ASP of EUR 89, at the same level as Q4 2006.
Nokia gross margin of 33.1%, up sequentially from 32.4% in Q4 2006.
Nokia operating margin of 13.6%, up sequentially from 13.3% in Q4 2006, excluding special items.
Nokia diluted EPS of EUR 0.26 excluding special items.
Nokia operating cash flow of EUR 1.6 billion.
Multimedia and Enterprise Solutions net sales strong, up sequentially from Q4 2006.
Key products started shipping: Nokia 6300, Nokia N95 and Nokia E65.

INDUSTRY AND NOKIA OUTLOOK FOR THE SECOND QUARTER AND FULL YEAR 2007
Nokia expects industry mobile device volumes in the second quarter 2007 to be slightly up sequentially.
We expect Nokia's device market share in the second quarter 2007 to be approximately at the same level
sequentially.
Nokia continues to expect industry mobile device volumes in 2007 to grow by up to 10% from the
approximately 978 million units Nokia estimates for 2006.
Nokia continues to expect the device industry to experience value growth in 2007, but expects some
decline in industry ASPs, primarily reflecting the increasing impact of the emerging markets and
competitive factors in general.
Nokia continues to target an increase in its market share in mobile devices in 2007.
Nokia continues to expect very slight market growth for the mobile and fixed infrastructure and related
services market in euro terms in 2007.
PAGE 28
Nokia Group
Nokia's first quarter 2007 net sales increased 4% to EUR 9.9 billion, compared with EUR 9.5 billion in the first quarter 2006.
At constant currency, group net sales would have increased 6%.
Nokia's first quarter 2007 operating profit decreased 7% to EUR 1 272 million (including the negative impact of EUR 69
million in special items), compared with EUR 1 367 million in the first quarter 2006 (including the negative impact of EUR 22
million in special items). Nokia's first quarter 2007 operating margin was 12.9% (14.4%) including the impact of the
respective special items, and 13.6% (14.6%) excluding the special items.
Mobile devices
In the first quarter 2007, the total mobile device volume achieved by our Mobile Phones, Multimedia and Enterprise Solutions
business groups reached 91.1 million units, representing 21% year on year growth and a 14% sequential decrease. The overall
industry volume for the same period reached an estimated 253 million units, representing 18% year on year growth and a 13%
sequential decrease.
Converged device industry volumes increased to an estimated 23.5 million units, compared with an estimated 17 million units
in the first quarter 2006. Nokia's own converged device volumes rose to 11.8 million units, compared with 8.5 million units in
the first quarter 2006. Nokia shipped close to eight million Nokia Nseries and more than one million Nokia Eseries devices
during the first quarter 2007.
The following chart sets out Nokia's mobile device volumes for the periods indicated, as well as the year on year and
sequential growth rates by geographic area.
NOKIA MOBILE DEVICE VOLUME BY GEOGRAPHIC AREA
(million
units)
Q1
2007
Q1
2006
YoY
Change (%)
Q4
2006
QoQ
Change (%)
Europe 23.9 20.4 17.7 33.3 -28.3
Middle
East &
Africa
15.7 11.9 31.8 15.5 1.3
China 15.7 10.9 43.4 14.6 7.8
Asia- 23.7 16.4 44.7 23.7 0.3
Pacific
North
America
4.8 8.4 -42.5 5.9 -19.0
Latin
America
7.3 7.1 2.4 12.5 -41.8
Total 91.1 75.1 21.4 105.5 -13.7
PAGE 29
Based on Nokias preliminary market estimate, Nokia's market share for the first quarter 2007 was 36%, compared with 35%
in the first quarter 2006 and 36% in the fourth quarter 2006. Nokia's year on year market share increase was driven primarily
by strong gains in Asia-Pacific and Europe that more than offset a significant market share decline in North America. Year on
year market share was approximately at the same level in China, Latin America and Middle East & Africa. Sequentially,
Nokia's market share was approximately at the same level as in fourth quarter 2006, globally as well as in each geographic
area. The sequential decline in first quarter industry volumes was similar to previous years, however they believe there has
been an impact in the market from the excess inventory of certain of their competitors' products.
Nokia's average selling price in the first quarter 2007 was EUR 89, down from EUR 103 in the first quarter 2006 and at the
same level as in the fourth quarter 2006. The lower year on year ASP in the first quarter 2007 was primarily the result of a
significantly higher proportion of entry-level device sales, where the industry growth especially in the emerging markets has
been strong and where Nokia's share has been growing. In addition, certain ageing higher end products in their portfolio were
viewed as less competitive in various markets. Sequentially, first quarter 2007 ASPs were impacted by a higher percentage of
entry-level device sales. That sequential development was offset by strong sales of our higher ASP devices, particularly from
the Multimedia business group.
Business Groups
Mobile Phones: First quarter 2007 net sales decreased 5% to EUR 5.6 billion, compared with EUR 5.9 billion in the first
quarter 2006. Strong overall volume growth was not enough to offset a significant ASP decline year on year, driven primarily
by a higher proportion of entry-level sales. Net sales decreased in all regions except Asia-Pacific. Net sales were down
significantly in North America and to a lesser degree in Latin America, Middle East & Africa, Europe and China.
Mobile Phones reported operating profit in the first quarter 2007 decreased 14% to EUR 936 million, compared with EUR 1.1
billion in the first quarter 2006, with an operating margin of 16.8% (18.5%). Reported first quarter 2007 operating profit
included total charges of EUR 35 million, of which EUR 25 million was related to the restructuring of a subsidiary company
and EUR 10 million was mainly related to restructuring in Customer and Market Operations. First quarter 2006 reported
operating profit included a EUR 14 million initial restructuring charge for the CDMA business. Operating profit for the first
quarter 2007 excluding the charges was EUR 971 million, with an operating margin of 17.4% (18.7%). The decrease in
operating profit for the first quarter 2007, excluding the special items, was primarily caused by lower sales of higher end,
higher margin devices, and an increase in sales and marketing expenses, compared to the first quarter 2006.

PAGE 30

Multimedia: First quarter 2007 net sales increased 28% to EUR 2.3 billion, compared with EUR 1.8 billion in the first quarter
2006. Net sales increased year on year in all regions except North America, where net sales continued at a low level.
Multimedia net sales year on year growth was fastest in Latin America and China. Net sales growth was driven by high
volumes of Nokia Nseries multimedia computers, especially the Nokia N73 and Nokia N70, combined with a stable ASP year
on year.
Multimedia reported operating profit in the first quarter 2007 grew 31% to EUR 424 million, compared with EUR 323 million
in the first quarter 2006, with an operating margin of 18.8% (18.4%). Reported first quarter 2007 operating profit in
Multimedia included restructuring charges of EUR 3 million. Operating profit for the first quarter 2007 excluding these
charges was EUR 427 million, with an operating margin of 18.7%. Operating profit growth in the first quarter 2007 was
driven by strong net sales growth and effective operating cost control, compared to the first quarter 2006.
Enterprise Solutions: First quarter 2007 net sales increased 75% to EUR 326 million, compared with EUR 186 million in the
first quarter 2006. Net sales increased year on year in all regions except North America and China, where net sales decreased.
Enterprise Solutions net sales more than doubled year on year in Europe, Latin America and Asia-Pacific. Net sales were
positively impacted by strong year on year volume growth of the Nokia Eseries.
In the first quarter 2007, Enterprise Solutions had a reported operating loss of EUR 38 million, compared with a reported
operating loss of EUR 66 million in the first quarter 2006. The reported first quarter 2007 operating loss included
restructuring charges of EUR 17 million. Excluding these charges, the operating loss for the first quarter 2007 was EUR 21
million. The reported first quarter 2006 operating loss included a EUR 8 million restructuring charge. The significantly
improved operating performance for the first quarter 2007, excluding these charges, reflected strong net sales growth and
effective operating cost control compared to the first quarter 2006.
PAGE 31
Q1 2007 OPERATING HIGHLIGHTS
Mobile Phones
First shipments of the slim and stylish Nokia 6300.
Announcement of the Nokia 6110 Navigator, an HSDPA (High Speed Downlink Packet Access) device with
GPS (Global Positioning System) and AGPS (Assisted Global Positioning System).
Announcement of the Nokia 6131 NFC phone, the world's first fully integrated, commercial NFC (Near
Field Communications) handset. It enables information sharing, service initiation, and payment and ticketing
capability with a single tap of the device.
Expansion of Nokia's music phone offering with the Nokia 5700 XpressMusic (a 3G converged device with
a dedicated audio chip, iconic twist design, music player, 2 megapixel camera and video calling), and the
Nokia 5070 (with integrated FM radio, a VGA camera, pre-installed java games and a built in web browser).
The enhancement of the popular L'Amour collection with the introduction of the Nokia 7373 Special Edition
in two contemporary colors paired with signature Giambattista Valli phone accessories; and the first CDMA
model in the L'Amour Collection, the Nokia 7088.
Introduction of the Nokia 3110 classic, a triband GSM phone in a robust and durable design with a 1.3
megapixel camera, music player with expandable memory, and an FM stereo radio.
Multimedia
Product launches included the Nokia N76, Nokia N93i, Nokia N77 and Nokia N800 multimedia computers,
including features such as DVB-H for mobile TV, DVD like-quality video, music players and touch screen
functionality.
First shipments of the Nokia N95, featuring connectivity over GPS, HSDPA and WLAN.
Nokia announced new games, publishers and developers for its new N-Gage mobile gaming platform. These
new developments will help to bring connected mobile gaming experiences to millions of Nokia mobile
device owners worldwide starting in September 2007.
Nokia announced cooperation with YouTube that allows people to enjoy YouTube videos on the go via
Nokia Nseries devices. Nokia also announced cooperation with Six Apart to make it easy for people to
upload video and photos, and update their blogs directly from their compatible Nokia Nseries devices to the
Vox blogging service.

PAGE 32

Enterprise Solutions
Second generation Nokia Eseries products - Nokia E61i, Nokia E65 and Nokia E90 Communicator - were
launched at the 3GSM World Congress in February.
The launch of Intellisync Mobile Suite 8.0, the first major update to the Intellisync platform since the
Intellisync acquisition, with several major feature and performance enhancements including a powerful new
email experience for S60 devices.












PAGE 33
RECOMMENDATIONS

After completing my survey, I would like to recommend a few things to Nokia to regain its previous market share especially
in Assam. Those recommendations are discussed below:

I. Nokia should produce a basic multimedia handset (around Rs. 4000) to get the customers of Sony Ericsson
K310i.
II. Nokia should provide demo sets to all of its dealers.
III. There should be more advertisements in local news papers and FM radio channels about the new offers.
IV. Nokia should produce a MP3 handset at low segment (around Rs.3000) without camera and with at least a
memory of 128 mb. This will definitely increase Nokia sales in low segment tremendously.
V. Nokia should provide more memory for voice recording in low price segment.
VI. Nokia should produce more handsets with fine attractive looks to fight with its arch rivals, Motorola and
Samsung. (Handsets like 8800, 7500 Prism, 8600 Luna, N76, N95, 6500 Classic etc.)
VII. Nokia can produce a handset less than Rs.1000 or around Rs.1000. But, there may be problem with quality if
it lowers the price this much. But, there is a easy solution for this problem. Let us see the example: Let a
Nokia handset model XXXX has a manufacturing cost of Rs.1400. If they sale it at Rs.1000, then there is a
loss of Rs.400. But, this loss can be covered by taking some extra money from the customers who buy a
handset of more than Rs.10000 or 15000. So, in this way Nokia can provide better quality in low price than
its other competitors. Automatically Nokia sale will increase.
VIII. Nokia can think over about the matter of an exchange offer to regain its old customers.
PAGE 34
IX. Nokia should provide better and clearer sound quality in low price segment.
X. After sales service should be improved. It should be more prompt. Replacement parts should always be
available in all Nokia Cares, not only the ones in Guwahati.
XI. Nokia should provide special offers for the staffs of Nokia Priority Dealer depending on the sale of their
outlet.
XII. Stock handsets which are having problem should be replaced to dealers quickly.
XIII. A dealer in Nagaon gets a Nokia 1110 without battery and one gets an empty N73 pack. So packing and
delivering of products should be done under proper and strict vigilance.
XIV. Nokia sales has fallen in recent days because most the dealers are not willing to sale Nokia handsets as they
are getting much profit in other companys phones. This is because of too much competition in the market.
Nokia dealers are allowed to sell the handsets right at the dealer price. So for the sake of competition they are
lessening the prices very near to the dealer price. So Nokia should give a minimum price outline to the
dealers such as selling price = dealer price + 3%-5%, so that the dealers can have a handsome margin after
selling Nokia. If this can be done by the company then I think automatically dealers will sell Nokia phones
more than other phones to make a good profit. This will also stabilize the market price.
XV. Most of the dealers want the price drop cover to be increased. Now-a-days, it is one week. Nokia can think
over this matter and it can be increased to two or three weeks if possible.
XVI. And finally, Nokia should endorse a brand ambassador. Most of the people think a bollywood celebrity
would be appropriate for it. Otherwise in Assam, the Music edition and Xpress Music phones of Nokia can be
advertised by a well-known local music celebrity e.g. Zubeen Garg. This type of advertisements will
definitely boost the sale.
XVII. Most of the people think that the Nokia Eseries phones are not getting sufficient advertisement. The company
should think over it as it is launching some high-end ultimate communicator devices like E90 in this segment.










PAGE 35
conclusion




After my survey, I have reached the conclusion that the sale of Nokia has fallen in Assam in recent days. Previously, the
market share for Nokia was around 85%. But, now it is almost 75%. The downfall is occurring because of some of the Spice
phones and very high competitive market. The market price is also not stable. The company has to think over this matter to
regain its market share. Keeping an eye on the feedback of customers and dealers, I have also recommended a few things in
previous pages.











PAGE 36
ACKNOWLEDGEMENTS

I am very grateful to following persons who helped me enormously in this project. Without their assistance it would
have been impossible for me to complete my work. Heartiest thanks to all of the following persons:

Mr. Amit Kundu, Nokia Sales Manager (Lower Assam)
Mr. Arnab Choudhury, Nokia Sales Manager (Upper Assam)
Mr. Neelav Nath Dutta, Multimedia Sales In-charge (Nokia, RDS-level)
Mr. Pankaj Sharma (Prop. Shree Marketing, Nagaon)
Mr. Aparup Bordoloi, Nokia Sales Executive (Nagaon)















PAGE 37
BIBLIOGRAPHY



For this project, I have collected knowledge and data from the following books and websites:

www.nokia.com
www.gsmarena.com
www.economictimes.com
www.india-cellular.com
www.minformation.com
Mobile Communications by Chul-Hee Kang and Jaiyung Lee
The Cellphone by Heather A. Horst and Daniel Miller
Marketing Management by Keller, Kotler, Koshy and Jha
The Businessworld
The Hindu