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A FINAL DISSERTATION REPORT


SUBMITTED TOWARDS THE FULFILLMENT
OF
POST GRADUATE DEGREE IN MARKETING AND HR

A Study On Green Marketing


Initiative
By Leading Corporations
(Taking Nokia As Case)

2010-2012
FACULTY GUIDE:
BY:

SUBMITTED

Mr. Krishna Saraswat


KUMAR
Assistant Professor
MARKETING & HR

GAURAV
MBARoll No. :
1015070034

IILM, GREATER NOIDA

MAHAMAYA TECHNICAL UNIVERSITY


UTTAR PRADESH

Certificate of Origin

This is to certify that Mr. GAURAV KUMAR, a student of MASTER OF Business


Administration (Marketing & HR), IILM Greater Noida, has worked in the research
project titled A study on green marketing initiative by leading corporations (taking
Nokia as case) under the guidance and supervision of Mr. Krishna saraswat, assistant
professor IILM GREATER NOIDA.

This Dissertation report has the requisite standard for the partial fulfillment the
Post Graduate Degree in Marketing & HR. To the best of our knowledge no part of this
report has been reproduced from any other report and the contents are based on original
findings and learning.

(MR. KRISHNA SARASWAT)


FACULTY GUIDE

Certificate of Origin

This is to certify that Mr. GAURAV KUMAR, a student of MASTER OF Business


Administration (Marketing & HR), IILM Greater Noida, has worked in the research
project titled A study on green marketing initiative by leading corporations(taking Nokia
as case) under the guidance and supervision of Mr. SUSHIL SHARMA, HOD, IILM
GREATER NOIDA.

This Dissertation report has the requisite standard for the partial fulfillment the
Post Graduate Degree in Marketing & HR. To the best of our knowledge no part of this
report has been reproduced from any other report and the contents are based on original
findings and learning.

(Mr. SUSHIL SHARMA)


HEAD OF DEPARTMENT

DECLARATION

I GAURAV KUMAR to declare that the project report entitled A STUDY ON GREEN
MARKETING INITIATIVE BY LEADING CORPORATIONS (Taking Nokia as
case) being submitted to the MAHAMAYA TECHNICAL UNIVERSITY for the
partial fulfillment of the requirement for the degree of Master of Business Administration
is my own endeavors and it has not been submitted earlier to any institution/university for
any degree.

Place:
Date:

GAURAV KUMAR
MBA (2010-2012)
Roll No.-1015070034

Acknowledgement

I express my sincere gratitude to my faculty guide Mr. Krishna saraswat,


assistant professor, IILM Greater Noida, Mahamaya Technical University, Uttar Pradesh,
for his able guidance, continuous support and cooperation throughout my dissertation,
without which the present work would not have been possible.

I am very grateful to my parents, who give the opportunity and facility to reach
upto this stage. I would also like to thank those who are close to me and supported me
throughout this project, although their names are not mentioned here but they have
always been supportive in my endeavors.

Gaurav Kumar
(1015070034)

Content

Sr. No.

Title

Page No.

Executive summary

Introduction

8-18

Company profile

19-40

3.1

About company

20-24

3.2

Five Ps of company

25-33

3.3

Key executive of the company

34

3.4

SWOT analysis

35-36

3.5

Marketing principle

37-38

3.6
4

The PEST factor


Research methodology

39-40
41-53

4.1

Market research

42-44

4.2

Method of collecting data

45-46

4.3

Market segmentation

47-48

4.4

Stages of marketing

49-50

4.5
5

Product life cycle


Analysis

51-53
54-58

Findings

59-61

Conclusion

62-63

Bibliography

64-65

Annexure

66-73

Questionnaire(1)

67-69

Questionnaire(2)

70-73

Executive summary

Nokia is a market leader in mobile devices and leadership comes with great
responsibility. Nokia aims to be a leading company in environmental performance. Our
vision is a world where everyone being connected can contribute to sustainable
development. We want to shape our industry and drive best practices.
Achieving environmental leadership means minimizing our own environmental
footprint. With the expansion of mobile communications, this is all the more important.
We strive to reduce the environmental impact of our products, solutions, and operations.
We also collaborate with our suppliers to improve the environmental performance of our
supply chain.
We have a user base of more than 900 million people which means that we have a
unique opportunity to make an impact that goes beyond our own activities. Thats why we
aim to offer people products and solutions that help them make sustainable choices.
Together, we can achieve more.
Nokias environmental work is based on life cycle thinking. This means that we
aim to minimize the environmental impact of our products throughout our operations,
beginning with the extraction of raw materials and ending with recycling, treatment of
waste, and recovery of used materials. We achieve this by better product design, close
control of the production processes, and greater material reuse and recycling.

Introduction

Nokia

Corporation

(NYSE:

NOK)

is

one

of

the

world's

largest

telecommunications equipment manufacturers. With headquarters in Keilaniemi of Espoo,


Finland, this Finnish telecommunications company is best known today for its leading
range of mobile phones. Nokia also produces mobile phone infrastructure and other
telecommunications equipment for applications such as traditional voice telephony, ISDN,
broadband access, professional mobile radio, voice over IP, wireless LAN and a line of
satellite receivers.

According to the American Marketing Association, green marketing is the


marketing of products that are presumed to be environmentally safe. Thus green
marketing incorporates a broad range of activities, including product modification,
changes to the production process, packaging changes, as well as modifying advertising.
Yet defining green marketing is not a simple task where several meanings intersect and
contradict each other; an example of this will be the existence of varying social,
environmental and retail definitions attached to this term.

Nokias green product life cycle is pictorially given as

Nokias environmental efforts focus on three issues:

Substance management: We work closely with our suppliers and require full
declaration of the substances we use in our devices. Our work is based on the
precautionary principle and we aim at continuously reducing the amount of substances
of concern. In addition, we explore the opportunities for using new, more
environmentally friendly materials, such as bio plastics or recycled metals and
plastics.

Energy efficiency: We make sure our devices use as little energy as possible. We also
work to reduce the energy consumption of our operations, and agree on energy
efficiency targets with our key suppliers.

Take back and recycling: We want to increase consumer awareness of recycling,


offer superior recycling in all markets and promote the recycling of used devices
through specific initiatives and campaigns. The backbone of Nokias take-back
program are the collection points of used devices in 5000 Nokia care centres in 85
countries.

Basic principles:Our environmental work is based on global principles and standards. Our targets
are not driven by regulatory compliance but go way beyond legal requirements.
Environmental issues are fully integrated in our business activities and are everyones
responsibility in Nokia. It is a part of everything we do.
Greenpeace has released its quarterly Guide to Greener Electronics, again
awarding top spot to mobile giant Nokia and slamming games console manufacturer
Nintendo for its poor environmental record.
Nokia was singled out for praise as a result of its comprehensive plans to phase
out toxic components and wide-ranging recycling programme, which features almost
5,000 phone recycling collection points worldwide. However, the lobby group also
warned that its recycling rate of three to five per cent is "very poor" and advised the
company to provide more information on how it calculates these figures.
The latest version of the long-running report paid particular attention to firms'
green marketing claims, awarding points to companies that promise to improve the
environmental performance of their products and operations, but docking points for those
who fail to deliver on marketing promises.

Nokia provides mobile communication equipment for every major market and
protocol, including GSM, CDMA, and WCDMA.
Nokia was established in 1865 as a wood-pulp mill by Fredrik Idestam on the
banks of Nokia rapids. Finnish Rubber Works established its factories in the beginning of
20th century nearby and began using Nokia as its brand. Shortly after World War I Finnish
Rubber Works acquired Nokia wood mills as well as Finnish Cable Works, a producer of
telephone and telegraph cables.
All three companies were merged as Nokia Corporation in 1967. The name Nokia
originated from the river which flowed through the town of the same name (Nokia).
In the 1970s Nokia became more involved in the telecommunications industry by
developing the Nokia DX 200, a digital switch for telephone exchanges. In the 1980s,
Nokia offered a series of personal computers called MikroMikko, however, these
operations were sold to International Computers, Ltd. (ICL), which was later merged with
Fujitsu-Siemens AG. Nokia also began developing mobile phones for the NMT network;
unfortunately, the company ran afoul of serious financial problems in the 1990s and
streamlined its manufacturing of mobile phones, mobile phone infrastructure, and other
telecommunications areas, divesting itself of other items, such as televisions and personal
computers.
In 2004, Nokia resorted to similar streamlining practices with layoffs and
organizational restructuring, although on a significantly smaller scale. This, however,

diminished Nokia's public image in Finland, and produced a number of court cases along
with, at least, one television show critical of Nokia.

Recently, Nokia joined other mobile phone manufacturers to embrace Taiwanese


Original Device Manufacturers. Nokia signed a contract with BenQ, a Taiwanese Original
Device Manufacturer, to develop three high-end mobile phones, which are scheduled to
retail by the end of 2005.

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
Toplux

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

game

by

running

successful

marketing

strategies,

to

do

this

Nokia

must focus on the principles of marketing. At the moment Nokia are the
world's best selling phone company (see table below which shows market share). Nokia
strengthened

its

lead

as

the

No.

vendor

in

the

market

During 2000, shipments were growing 66 percent over 1999. Some of the company's
success

was

attributed

to

59 percent of sales occurred.

Market share of companies-1.


2.
3.
4.
5.

Nokia 37.2% (34.7% 1Q02)


Samsung 17.3% (15.5%)
Motorola 9.8% (9.6%)
Siemens 8.5% (8.8%)
Sony-Ericsson 5.2% (6.4%)

strong

second

half

in

2000

when

Nokia in the region of Asia pacific

A leading player in mobile communications in the Asia Pacific, Nokia first started
operations in the region in the early 1980s. It has since established a leading brand
presence in many local markets, and business has expanded considerably in all areas to
support customer needs and the growth of the telecommunications industry in the region.

Nokia's regional corporate headquarters is located at Alexandra Technopark in


Singapore. As the regional hub for Nokia, it is a base from which over 700 staff provide
leading-edge technology, product and solutions support to the 20 diverse markets and
Nokia offices in the Asia Pacific.

Nokia's regional treasury centre - Nokia Treasury Asia - operates out of Singapore
as an in-house bank for Nokia subsidiaries in the Asia Pacific region, while Nokia
Research Centre - the corporate research unit - has offices in Japan and China. Nokia also
manufactures products out of three major facilities in Masan, Korea, and Beijing and
Dongguan in China.
Mobile Phones offers a global range of highly competitive mobile phones for large
consumer segments, and develops mobile phones for all major standards and customer
segments in over 130 countries. It is responsible for Nokia's core mobile phones business,

based mainly on WCDMA, GSM, CDMA and TDMA technologies. Mobile Phones
focuses on bringing feature-rich, segmented mobile phones to the global market.
Multimedia brings mobile multimedia to consumers in the form of advanced
mobile devices and applications. Its products have features and functionality such as
imaging, games, music, media and a range of other attractive content, as well as
innovative mobile enhancements and solutions.

Networks continue to offer leading-edge network infrastructure, technology and


related services, based on major wireless standards to mobile operators and service
providers.

Focusing on the GSM family of technologies, the group aims at leadership in


GSM, EDGE and WCDMA radio networks. Our networks have been installed in all major
global markets that have adopted these standards. Networks are also a leading provider of
broadband access and TETRA networks for professional users in the public safety and
security sector.

Enterprise Solutions provides a range of terminals and seamless mobile


connectivity solutions based on end-to-end mobility architecture, dedicated to helping
businesses and institutions worldwide improve their performance through extended
mobility. Its end-to-end solution offerings range from business optimized mobile devices
on the front end, to a robust portfolio of mobile business optimized gateways in the back

end including: wireless email and internet, application mobility, message protection,
virtual private networks, firewalls, and intrusion protection.

ABOUT COMPANY

Nokia Corporation manufactures mobile devices principally based on global system


for mobile communications, code division multiple access (CDMA), and wideband
CDMA (WCDMA) technologies. The company operates in three divisions: Multimedia,
Enterprise Solutions, and Networks.

The Multimedia division focuses on bringing connected mobile multimedia to


consumers in the form of advanced mobile devices, including 3G WCDMA mobile
devices and solutions.

The Enterprise Solutions division enables businesses and institutions extend their use
of mobility from mobile devices for voice and basic data to secure mobile access, content,
and applications. Its solutions include business-optimized mobile devices for end users, a
portfolio of Internet portfolio network perimeter security gateways, and mobile
connectivity offerings.

The Networks division provides network infrastructure, communications, and


networks service platforms and professsional services to operators and service providers.
Nokia connects people to each other and the information that matters to them with mobile

devices and solutions for voice, data, imaging, games, multimedia, and business
applications.
The company also provides equipment, solutions, and services for its operator and
enterprise customers. It sells its mobile devices primarily to operators, distributors,
independent retailers, and enterprise customers worldwide. Nokia Corporation is based in
Espoo, Finland.

Nokia is a communications
telephone

based company, which focuses on mobile

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
Camera phones
Video recorders

Nokia recently announced a green marketing initiative in India. From January 1, the
company is taking back used mobiles and chargers from the customers for recycling. The
campaign titled as Take-Back campaign is a unique social responsibility initiative by this
market leader.

Under this campaign, the company is encouraging the mobile users to give their old,
unused, broken mobiles and chargers for recycling. The campaign is initially launched in
Bangalore, Delhi, Gurgaon and Ludhiana and will be expanded to national level in
coming months.

Nokia has installed 1300 recycled bins at the Nokia Priority dealers across these pilot
markets. Nokia also promises to plant one tree for every mobile dumped. Another
interesting fact is that the company accepts mobiles of any make.

This is a best practice because the brand is addressing an issue proactively. E-waste is
going to be one of the worst environmental hazards in years to come. Mobiles contribute
heavily towards this waste. India being the fastest growing mobile market in the world,
this issue is going to be of mammoth size in the future.

The Take-Back campaign is aimed at educating people on the necessity of reducing ewaste through recycling. The concept of recycling is not popular in India and Nokia wants
to set an example.

The campaign is also proactive because Nokia is the indisputable market leader in
India with a share of 70 % in the mobile phone market. So the brand is responsible for
contributing to the piling e-waste with regard to mobile phones.

Although Nokia says that the recycling will help the company in acquiring fresh raw
materials, the new campaign is more of a social responsibility initiative rather than a
business one.

By launching such an initiative, the brand is also giving an important lesson to other
marketers. The lesson is about long term investment on brands. This take-back campaign
is not going to generate any short -term benefits for the brand. Of course it had given
some positive PR for the brand but nothing more and nothing less. Indian consumers are
not very thrilled by green marketing initiatives because of lack of awareness/concern.
Second this campaign is also expensive because Nokia has to build an infrastructure to
support this take-back. The benefits will come may be in future when consumers realize
that the brand have foreseen such an environmental crisis and took proactive measures to
reduce that. Now, how many brands will ever think of such an investment?

In future companies will be made responsible for such accumulation of wastes. In


developed countries, strict rules are now in force to check the proliferation of such wastes.
India too will move to such a regulated regime in near future. Hence it makes sense for a
market leader to initiate such a campaign. It increases the brand equity (in future) and also
prepares a robust green logistics infrastructure for the future. Green logistics is denotes
the logistical infrastructure to collect back the products from the customers for recycling
or repair.

Some of the Products that Nokia offers to Customers are:

Nokia N90

Nokia 9300

Nokia 1001

Nokia 7710

Nokia 7280

Nokia 7270

Nokia 6822

Nokia 6681

Nokia 6680

Nokia 6670

Nokia 6630

Nokia 6260

Nokia 6255

Nokia 6235

Nokia 6230i

Nokia 3230

Five ps of the company

Product:Historically, the thinking was: a good product will sell itself. However there are no
bad products anymore in today's highly competitive markets. Plus there are many laws
giving customers the right to send back products that he perceives as bad. Therefore the
question on product has become: does the organization create what its intended customers
want? Define the characteristics of your product or service that meets the needs of your
customers.

Functionality:

Quality
Appearance
Packaging
Brand
Service
Support
Warranty

The Mobile Phones business group increased its consumer offering during the
quarter with the introduction of new models in a range of form factors and designs.
Highlights include:

Nine new GSM models, including the Nokia 6280, our first mid-range

WCDMA/3G phone.
Four new CDMA models, growing our mid-range offering in CDMA.
Premium category devices: the Nokia 8800 and Nokia 8801 stainless steel slide

phones.
The Nokia 6270 slide phone: one of two new models with 2 mega pixel cameras.
The Nokia 5140i camera phone: Nokia's first mobile device to comply with

upcoming EU environmental legislation.


Two entry-level mobile phones, the Nokia 1110 and Nokia 1600, each offering
technological features designed to reduce the total cost of ownership for users.

Price:
How much are the intended customers willing to pay? Here we decide on a pricing
strategy - do not let it just happen! Even if you decide not to ask (enough) money for a
product or service, you must realize that this is a conscious decision and forms part of the
pricing strategy. Although competing on price is as old as mankind, the consumer is often
still sensitive for price discounts and special offers. Price has also an irrational side:
something that is expensive must be good. Permanently competing on price is for many
companies not a very sensible approach.

PRICING STATEGY: -

Cost based pricing


This involves calculating the cost of production for the product and then adding a markup for profit, usually 10% so a company can make enough profit to re-invest into the
business so they can grow.

Marginal cost pricing


This is the addition to total cost resulting from the production of additional unit of output.
If a decision is made to expand by one or more units it will be based on an assumption
that the price of each unit will be least sufficient to cover marginal costs, so that the profit
earned on all previous units is not lower then it previously was.

Demand based pricing


This is usually pricing products based around the customer demand for
a product, if the demand is high, the prices will rise. This is usually used when the product
is unique, for example, a football match or concert. To use this strategy companies must
carry out detailed market research to find out what prices the consumers are willing to pay
so they don't over price their product.

Market skimming
This pricing strategy is also known as price creaming and is usually put into place in
markets where the competition is limited. Market skimming pricing involves charging a
high price for new products because the customer is new and unique so (hopefully) the
consumers will be willing to pay higher prices for them. This is the most
common strategy in the mobile phone market, as consumers will pay the higher prices for
phones that have the newest technology.

Penetration pricing
Firms who are trying to establish themselves in a new market and gain instant market
share usually use this strategy. It is a high-risk, high cost strategy that is only an available
option to the bigger companies (like Nokia) who supply to mass markets. Penetration
pricing is based around the idea that a company will set their prices low to encourage

customers to buy their products instead of higher priced, more established brands.

The organization may also boost sales by lowering prices if demand is


price elastic. One problem with this strategy in the mobile communications market (or
any other highly competitive markets) is that price wars will often develop with rival
companies and this can limit to the amount of profit that can be made, and also
generate losses due to under-pricing in an attempt to hold onto market share.

Price discrimination
This is where companies can charge different prices in different markets, because of the
consumers they are aiming at, for example, rail companies charge different prices for peak
and off-peak travel cards and fares. This strategy is only available for use when
the consumers are unable to undercut higher prices by reselling their products from low
priced markets to high priced markets.

Destroyer pricing
This is a more drastic and aggressive form of penetration pricing, used when a company's
objective is to get rid of competition completely by lowering their prices to levels that
other companies cannot afford to drop to. The down side to this strategy is that consumers
may see the low price as a reflection of the quality of the product and stick to the higher
priced products because they offer a product of higher quality.

List Price:

Discounts
Financing
Leasing Options
Allowances.

Place:Available at the right place, at the right time, in the right quantities? Some of the
recent major changes in business have come about by changing Place. Think of the
Internet and mobile telephones.
Locations:

Logistics
Channel members
Channel Motivation
Market Coverage
Service Levels
Internet
Accessibility

Promotion:How are the chosen target groups informed or educated about the organization and
its products? This includes all the weapons in the marketing armory - advertising, selling,
sales promotions, Public Relations, etc. While the other three P's have lost much of their
meanings in today's markets, Promotion has become the most important P to focus on.

Advertising:

Front Line Service


Public Relations
Message
Direct Sales
Sales
Media
Budget

People:All people directly or indirectly involved in the consumption of a service are an important part
of the extended marketing mix. Knowledge Workers, Employees, Management and other Consumers
often add significant value to the total product or service offering.

Process:Procedure, mechanisms and flow of activities by which services are consumed (customer
management processes) are an essential element of the marketing strategy.
Nokia has rapidly moved from functionally oriented organisation to a business process
oriented mode, and our information systems have not followed the change as fast as they
should. To fill the gap, IM organisation must learn and implement working methods
which enable the creation of business process oriented information systems. To satisfy
these business needs, Nokia has introduced a new development approach for information
systems development. These processes have been created and tested during the SPI.
In 1996, the starting point of software engineering practices in Nokia Mobile
Phones/Information Management was that there were no clearly defined processes to
guide the software development according to the business needs. Requirement analysis
was usually done with an ad-hoc style without a pre-defined process. For the technical
design and implementation, there was a first version of project manual to follow.
Technical environment from IT point of view at Nokia is great. Markets leading
brands are utilized in every part of the company and personnels skill level is high in
technical issues. In the SPI project, ICL ltd was selected as the vendor to provide a
consulting point of view and to deliver their skills for business analysis and requirements
specification areas.

Business environment in telecommunication industry is fast moving and quite


young, which means big challenges for information management: timing is crucial.
Because of the changing environment, also organization is changing rapidly. Change is an
everyday phenomenon at Nokia, which helps a lot when changing working practices as a
part the SPI. Skill set needed for the business and requirements analysis and other parts of
the SPI is different from the technical expertise so common at Nokia. In order to succeed,
some time for training was reserved during the SPI.
The technical target environment for the SPI included a R/3 based standard
package as the baseline project environment, a CASE tool to support the IM Process and
an intranet environment where the results were shared.

Person

Key Executives In The Company:-

Pay

Exercised

Mr. Stephen Elop, 49


Chairman, Chief Exec. Officer and

$ 4.64M

$ 6.00K

$ 1.63M

$0

$ 1.41M

$0

N/A

$0

N/A

$ 38.00K

Chairman of the Group Exec. Board


Mr. Jerri DeVard, 54
Pres, Head of Customer and Market Operations and Member
of Group Exec. Board
Mr. Esko Aho, 58
Exec. VP, Pres of Mobile Phones,
Gen. Mang. of Mobile Phones
and Group Exec. Board Member
Mr. Timo Ihamuotila, 46
Chief Financial Officer,
Sr. VP and Member of Group Exec. Board
Mr. Henry Tirri, 56
Chief Technology Officer, Sr. VP and
Group Exec. Board Member

SWOT Analysis of the Company: Nokia

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

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

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

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

Marketing principles:There are many priorities within a business, but in a marketing orientated company
like Nokia, many of the following principles will be high on the agenda:

Customer satisfaction: Market research must be used to find out whether customers'
expectations are being met by current products or services.

Customer perception: this is based on the images consumers have of the organization
and its products, this can be based on; value for money, product quality, fashion and
product reliability.

Customer needs and expectations: This is anticipating future trends and forecasting
for future sales. This is vital to any organization if they wish to keep their entire
current market share and develop more.

Generating income or profit: This principle clearly states that the need of the
organization is to be profitable enough to generate income for growth and to satisfy
stakeholders in the business. Although satisfying the customer is a big part of
a companys plans they also need to take into account their own needs, such as:

Making satisfactory progress: Organizations need to make sure that their product is
developing along with the market, if a product is developing well, then income should
increase, if not then the marketing strategy should be revised.

Be aware of the environment: An organization should always know what is happening


within their designated market, if it is changing, saturation, technological advances,
slowing down or rapidly growing, being up to date on this is essential for companies
to survive.

There are also certain external factors that a company should be very aware of, such
as P.E.S.T factors (political, environmental, social and technological) and also S.W.O.T
(strength, weakness, opportunity and threat). A business must take into account all these
constraints when designing and introducing a marketing strategy.

The P.E.S.T Factor:Political


constraints

factors-

that

Nokia

Legal
have

constraints
to

take

(such

into

as

the

consideration)

G3

technology

must

be

taken

into account because many businesses aim to make a profit so they may
be

tempted

products
cut
(such

and

to

mislead

the

availability

expenditure
as

weaker

companies

may

environment
safety

by

also

the

their

lesser
for

dispose
and

workplace

customers

of

using

materials

(pollution)

in

their

not

products.

quality

Nokia
their

waste

outlet

prices,

They

materials

cases

ensuring

and

about

and
in

high

stores,

may
in

their

of

of

try

to

products

also

some

that

damage

the

of

hygiene

and

these

are

standards
all

also

batteries),

ways

quality

illegal

and can leave companies in big legal trouble.


The governmental bodies in the U.K have introduced new laws into the business
environment,

which

ensure

that

none

of

these

procedures

take

place; if a company is to be successful they must follow all of these


laws.
Environmental social and ethical factors- some businesses view profits are more
valuable
behavior

than
and

a
business

strong

ethical

conduct.

Some

code

and

un-ethical

this
practices

can
are

govern
against

the

law

and

mentioned

companies

these

above)

illegal

by

public,

companies

market

share

testing

on

not

law

if

but

but

are

who
they

animals,

happy

about

cannot

become

there

are

considered
engage

in

involved

also

highly
these

out.

An

is

legal

but

some

and

boycott

by
can

example
of

Certain

them

practices

practice's

found

it

some
un-ethical

are
it

in

of

have

that

aren't

the

consuming

lose
this

the

(I

a
is

lot

of

cosmetic

consuming public are

products

because

of

it,

companies must be very careful about how they conduct themselves.


Nokia have managed to be quite environmentally friendly and have not done
anything

that

the

consuming

public

have

taken

huge

offence

to,

they have been very careful about this and this is one of the reasons
they are such a popular brand of mobile phones.
Technological- In the communications market technology is perhaps the most
important

factor

consideration.
technological

that

They
advances

companies

have

to

(like

like

keep

up

camera

and

Nokia
to

date

motion

have

to

with

all

capture

take
the

phones)

into
newest

if

they

are going to capture the biggest market share and stay ahead of their
competitors (Sony and Seimens).

Market Research
A businesses success is based on whether they can give the customer
what

they

collection,

want

and

collation

when

and

they

analysis

want
of

it.

Market

research

data

relating

to

involves

the

the

consumption

and marketing of relevant goods and services.


The purpose of market research is really to find out whether there is
a gap in the market for your product or service or whether you can
make

customers

want

your

product

through

persuasive

adverting.

We

already know that there is a market for mobile phones but the current
market
saturated)

gap

has

so Nokia

become

saturated

need

find a

to

(or
new

if
market

not

saturated,

segment

almost

to aim

their

products at. In order to classify the wants and needs of the consuming
population, companies need to gather information on the following:

Consumer

behavior-

they

partial

are

to

How
prize

do

customers

give-away

reactions to new and developed products?

or

react
free

to

advertising?

gifts?

What

Whether
are

their

Buying patterns and sales trends- Organizations need to look at how


buying trends and patterns are affected by class, gender, religion and
region. They also need to understand how buying patterns change over
time and what markets are expanding and are worth trying to enter and
obviously which markets are contracting and companies shouldn't aim to
enter into.

Consumer

preferences-

What

customers

are

looking

for

in

product,

for example, style, color, technology, amount of outlets, customer service and
promotional styles.

Activities of competitors in the market- Nokia need to examine how


their

rivals

are

adapting

their

prices

and

products

to

meet

the

consumers needs, how well the rivals are selling and what marketing
strategies they are using.

Market
they

research

require

should

about

supply the

consumers

company

preferences,

with

all

whether

the

they

information
buy

certain

products, what design features are preferable and what kind of retail
outfits are most frequently used for purchasing certain products.

Sources of marketing information:The information that companies collect through market research can be in one of two
forms, either quantitative or qualitative data.

Quantitative data refers to data presented in numerical form, usually figures, for
example, Nokia's operating profit in the 4th quarter of 1997 was 830 million.

Qualitative

data

is

the

information

concerning

the

motives

and

attitudes of consumers; for example, more people buy Nokia phones then Sony
phones because Nokia phones are more reliable.
The two main sources of market research information are primary research (where the
company has gathered the information about the markets themselves) and secondary
research (when researchers use information that has been discovered by other
companies).

METHOD OF COLLECTING DATA


Methods of collecting primary data:

Face to face survey

Open ended interview

Telephone survey

Postal surveys

Consumer panels

Observations

Experiments

Methods of collecting secondary data:Internal sources:

Existing reports

Distribution data

Shopkeepers opinions

Stock records

Sales records

Accounting records

External data:

Government statistics

Specialist

business

organization,

for

example,

Mintel

or

Neilsons

retail audit.

Consumer databases: - To help decide what market segment, to aim at companies


can also look at the buying habits of customers. In order to make decisions
about the type of products to make, what advertising to use, promotional tactics,
pricing and packaging. Nokia will need to know about the following:
o The types of goods customers buy
o How much they buy
o How often they buy

There are also certain variables that can affect peoples buying habits, they
include:
o Age
o Gender
o Area they live in
o Religion
o Lifestyle
o Taste
o Fashion and preferences.

Market segmentation:In order to plan their product Nokia must look at what area of the market they
want to aim the products at, as the current youth market is more or less saturated Nokia
will have to research into a new market, I suggest the 55+ market as they will have lots of
disposable income and my research shows that most people aged 55+ do not currently
own a mobile device and could be persuaded to buy one by certain promotions and a good
advertising campaign, also the drop in call prices should attract a lot of people who may
have previously been hesitant due the high costs.
Below is a table showing the population in terms of social grouping of
the U.K in 1999:
Socio-economic group

% of population

A-Upper class

2.8%

B-Middle class

18.6%

C1-Lower middle class

27.5%

C2- Skilled working class

22.1%

D- Working class

17.6%

E-Low income earners

11.4%

I think that Nokia should aim their products at the socio-economic group B (middle
class) even though they aren't the biggest group they are the group that is most likely to
spend their money on a mobile telephone as my questionnaire results showed.
Investigating consumer trends
As the main aim of market research is to develop an idea of market opportunities; an
important part of this research must be to track sales in order to identify those products,
which are likely to experience a rise in sales and to look at those in which the sales
are likely to fall.
Changes in customer demand, which continue in the same direction for more then 2
years, show a long-term trend or saturation is occurring within the market. This is
definitely a bad market for businesses to be in (the mobile phone market is in the first year
of a continuing trend) and the company must consider changing their market or product to
a market or product that is currently showing a continuing upwards trend.

Stages of marketing:1. Market and product research:


a. Finding out what your customers want
b. Technical research
2. Product launch
a. Test market
b. Pricing Branding
c. Packaging
3. Product promotion
a. Advertising
b. Merchandising
c. Publicity and P.R
d. Sales promotion
4. Sales and distribution
a. Managing the sales force

b. Type and amount of sales outlets


c. Local, national or international sales?
d. Transportation of goods
5. Monitoring and analyzing the sales
a. Meeting customer satisfaction?
b. Does the product need modifying or replacing?
c. Is a profit being made?
d. Is customer service satisfactory?
e. Have the sales targets been met?

Is the promotion and distribution policy effective?


If

company

gets

to

section

of

the

marketing

cycle

and

substantial amount of the goals haven't been met then they will have
to consider re-launching the product or taking it out of the market
completely and placing it in a different market or changing it to meet
the needs of the current market.

Product life cycle of mobile phones:Introduction:When


technology
life),
to

mobile
(bad

phones

were

reception,

poor

first

introduced

reliability

they

and

had

high priced (around 100 for a basic model)


be

persuaded

established

as

companies

can

to
a

buy

mobile

necessity.

expect

high

telephones,

When

promotion

as

products
fee's

as

were

the

low

quality

short

battery

and consumers

had

they

were

not

are

first

released,

public

are

yet

probably

not yet familiar with the product.


Also when mobile phones were first released they were bulky and hard to use, as
product

design

and

development

are

key

figure

in

success,

Nokia had to design phones that were smaller and simpler for consumers
to
they

use. As

people

were

obviously

products

had
not

paid
going

lot
to

for
pay

earlier, more
the

same

so Nokia had to develop phones that

high

primitive
prices

products
for

later

could be sold for less

and would last longer, this is where companies can expect to pay high
production costs.
When Mobile phones were first introduced they were not such a popular item and
there weren't as many competing companies in the market. So Nokia and a few other

companies
higher

(Sony

prices

they

are

in

and

than

they

today,

as

Panasonic)

would
there

in

the

highly

aren't

so

many

could

charge

competitive
companies

market

that

competing

for

market share.
Growth
In the growth stage of the product life cycle companies can expect
advertising

and

promotional

costs

to

stage

more

companies

will

enter

as

market

share

technological
promoting
their

will

increase.

advances

their

handsets)

so

that

high

(as

allows

advertising

as

market

is

market

technology
higher

as
the

Advertising

within

new

be

costs

in
and

proven
the

people

to

introduction

competition

way

with

can

the

of

new

promoting

company

videos

on

watch

be

for

expected

as

the

technologies available get better and more advanced.


The growth stage is also the stage that companies will (hopefully)
start

to

make

sense

of

stage

profit

are

more

will

be

companies

profit,

branding
isn't

and
the

companies
developed
start

to

based
a

and
make

good

successful

only
in

on

thing

the
that

will

profits

marketing

that

market

market

it

will
is

drive

(because

research
scheme.

start
obvious
prices

to

and
In

more

higher,

consumers

the

develop,

that

have

this

strong
growth

as

there

technology
is

accepted

how
the

product,

in

Nokia's

case,

mobile

phones,

as

necessity

they

will

be

more willing to pay higher prices for new phones that emerge in the market).
Maturity
When a product enters the maturity stage, advertising and promotional prices
should decrease, as consumers are more aware of the product and will research new
additions to the market instead of being told what is new (this is because phones have
been promoted as fashion items and will be desired by the consumers). At this point in the
product

life

cycle the main producers (Nokia, Siemens, Sony etc) should be clear as
they

will

while

have

the

the

other,

most

less

money

popular

to

develop

producers

and

of

promote

phones

their

phones

(Panasonic,

Toplux

and NEC) will be struggling to survive and will drop out of the market
either

here

or

they

will

seriously

struggle

in

the

next

stage, decline.

Decline
This is the stage that Mobile phones have entered (Nokia had recorded their first
drop

in

companies
their
be

sales
are

products
decreasing

again

as

earlier

trying
or

entering

and

companies

to make a profit.

to

this
re-launch
new

promotion
fight

for

year),

and

all

the

remaining

their

products

by

either

developing

point

phone

sales

will

to

rise

markets. At

this

and

advertising

the

remaining

costs
market

will
share

start
and

struggle

Analysis of My Research
From my research I have found out that 55% of people do already own a mobile
phone,

but

also

found

out

that

100%

of

the

student

population

(aged 11-21) did already own a mobile phone and the majority of the
older people in the sample (aged around 40 and 50) didn't own a mobile
phone, and I found out that everyone over 65 did not own a mobile
phone. My results show that the current youth market has already been
capitalized
become

on

by

the

saturated

or

communications
is

definitely

companies,

near

and

saturation.

the

market

This

is

has

reflected

in the fact that Nokia's sales have decreased by 4% and this has been
said by many Wall Street writers to be the tip of the iceberg and they
are

prophesying

that

sales

will

continue

to

decrease

until

the

marketing strategy is revised.


My primary research backed up my secondary research and showed that Nokia
was

the

participants

biggest

selling

claiming

that

brand

of

mobile

they

owned

phones,

Nokia

with

phone,

75%

of

compared

my
to

very small 7% for Nokia's closest rivals, Sony. This has shown me that
Nokia are already a very well established brand amongst the consumers and that they do
not

need

to

spend

any

money

(or

small

amount

if

entering a new market) on promoting the brand as a whole and should


concentrate
models

the

or

majority

new

of

their

technologies

promotional

that

are

expenditure

being

on

discovered

singular

or

being

released.
My research showed that the most popular places that mobile phones are bought in
are Car phone warehouse and the link which accounted for 85% of the sales of mobile
phones

to

dealerships
appliance
very

in

such

as

stores,

like

small

successfully
the

the

amount

selective
John
of

distributed

main

people

network

Lewis

or

outlets
the

sales

(less

than

is

only

logical

it

dealerships

before

the

questioned.
and

O2

Small

major

household

stores

accounted

for

10%).

If

phone

to

be

that

it

other

should

smaller

is
be

outlets

released
if

it

is

going to reach its maximum selling potential.


According

to

my

research

the

three

most

important

things

that

consumers are looking for in a mobile phone are; long battery life, a
stylish
to

casing,

be

and

successful

good SMS
in

the

these, but the consumers


available,

this

is

what

(text

market

messaging)

environment

features.
it

must

have to be told that your


the

company

advertising and not just the brand name.

should

try

and

If a
include

phone
all

is
of

product has these


promote

through

I have found out that most people do not conduct heavy research, if
they

do

any

phones),

research

and

the

at

most

window-shopping.

all

(only

common

This

means

65%

did

research

into

of

research

are

magazines

important

for

forms

that

it

is

mobile
and

product

to

stand out to the consumer and look good statistically in a magazine so


that

it

will

magazines,

stand

and

out

the

to

people

the
who

consuming

population

ask

sales

floor

who

people

research

in

advice

on

for

which handset to purchase.


Price was a difficult variable to analyze as my research has shown
that

it

factor,
the

was

and

50-50 split

those

phone

who

was

between

didn't

offering

really

everything

people
care
they

who said
about

the

wanted,

price

was

price

as

although

key

long

upon

as

further

inspection most people would not like to spend over 175 on a handset,
but

could

campaign
free

text

be
or

persuaded
good

messages

to

pay

all-round
and

some

a little more

package,
free

that

by

strong

advertising

includes;

cheap

call

rates,

example,

hands

accessories,

for

free kit or an in car charger.


I have also found out that the most popular food shops are Sainsbury's
and Marks & Spencer, this gives us an idea of where to put promotional
fliers
as

and

people

leaflets
are

about

usually

up
bored

and

coming

while

releases

waiting

in

into
lines

the
for

market,

and

they

till,

will

want

near

in

Nokia
who
upper

something
the

lines

mobile
shop
class

in

to
then

phone
these

and

will

look
that

instead
2

and

could
of

main
pay

at

if

get

flier

more

is

conveniently

customers

interested

of

their

competitors,

supermarkets

tend

to

extra

one

for

"quality"

in

be

also

either

brand

name

placed
in

people

middle

or

products.

FINDINGS

A recent article in one of the tech magazines says that you might have read in mid
December 2008 how Nokia was the first mobile manufacturer to launch recycling
campaign in South Africa. Just couple of weeks after that Nokia India kicked off their
recycling awareness and take-back campaign in the Nokia India office and the internal
awareness drive was followed also by an external launch of the campaign as a pilot in
four cities (Delhi, Gurgaon, Bangalore and Ludhiana) on 1 January 2009.
'Practice what you preach' was the philosophy that the environment team tried to drive
internally before the external launch of the campaign. The venue was the ever popular
cafeteria in which an experiential centre was set up. As part of the invitation to the event,
employees were requested to bring their old phones and accessories to deposit in the
recycling bins, specially designed for the take back campaign.
Nokia's Marketing Director opened the event and discussed the environmental
challenges we all face, and the need for everybody to take responsibility for saving the
environment. Charts and a film at the venue explained the recycling process and
highlighted Nokia's approach to continuously improve environmental sustainability in all
products and lifecycle thinking.

Nokia's first eco-device 3110 Evolve was also showcased and information was
shared on other green initiatives such as its innovative packaging and the we:
offset application which helps people to compensate their environmental impact.
Employees were also encouraged to take an environmental quiz based on the information
shared at the experiential zone.
For every person who dropped a phone a we: recycle carry bag was given, with a promise
to plant a tree and a tag we: Just did it' Employees were also invited to sign up and
volunteer for participating in environmental programmers like recycling campaigns at
colleges/community centers. 26 additional employees registered to become a we:
champion.
Finally, to make sure that recycling gets included in everyone's New Year
resolutions, the recycling team went one by one to the desks of all employees with the
take-back bin and a bell (Christmas was approaching) urging everyone to check their
drawers and drop the unwanted phones and accessories for recycling.
The internal awareness drive received a very positive response and everyone went
back conscious of how they impact the environment and therefore the need to be
conscious of actions that can contribute positively towards reducing each one's
environmental footprint. As part of the external campaign Nokia had laid out a robust
recycling infrastructure across the country with over 1300 recycling bins installed at
Nokia Priority Dealers and Nokia Care Centers. The campaign is the first initiative of its

kind by any mobile manufacturer in India. The Indian recycling initiative forms part of
Nokia's global take-back programmed which currently covers 85 countries worldwide.

CONCLUSION

Nokia has already shifted its concentration on to the sector of green marketing by
introducing the products which are bio-degradable. It has already released its products in
such rages such as its accessories, panels, bio-degradable batteries, etc. This strategy of
nokia has helped it a lot in developing its profit margins. It has also helped in promoting
its competitors in doing the same such that all the products that are launched in the market
can be Eco-friendly.

BIBLOGRAPHY
Books

Marketing Management By Phillip Kotler


Green Marketing: Opportunity For Innovation, 2nd Edition
By Jacquelyn A. Ottman
The New Green Marketing Bible By Peter M. Senge

Websites

www.nokia.co.in
www.wikipedia.org
www.marketingpractice.blogspot.com
www.bx.businessweek.Com
www.businessgreen.Com

QUESTIONNAIRE (1)

Name of respondent: ____________

Age of respondent: _____________

Address of respondent: _____________

Phone number of respondent: _____________

Email address of respondent: _______________

Business name: ________________________

Marketing head name: __________________


Please answer the following questions which are based on green marketing. Answer all
the questions for a fair result and evaluation.
Q1. Does your company believe in the concept of green marketing?

a) Yes

b) No
Q2. How do you think would you help the environment by following green marketing
strategies and regulations?

_______________________________________________________________

Q3. In your opinion how is green marketing more effective than regular marketing
techniques?

Q4. What plans and actions does your company take to implement green marketing?

___________________________________________________________

Q5. Do you think you are doing enough to save the environment by your policies?

_____________________________________________________________

Q6. How do you think the regular marketing techniques harm the environment?

_________________________________________________________

Q7. Where do you stand in comparison to other companies when it comes to following
green marketing?

________________________________________________________

Q8. Do you believe in the concept of complete green marketing conditions throughout the
world?

a) Yes

b) No

Q9. Give your opinion on whether green marketing will bring you as much profit as it did
before?

____________________________________________________________

Q10. What are the main areas to be focussed upon for bringing in green marketing for
your current project?

QUESTIONNAIRE (2)

Section 1
Before answering the questions, please provide some information about yourself.

Age __________

Sex__________

Nationality_____________

Level of education (please check the highest level that applies):


____High school graduate
____Some college
____College graduate
____Graduate student (M.A. or Ph.D)
____Masters degree
____Doctorate degree
____None of the above

How would you characterize your income level? (please circle one)
Lower

Section 2

Middle

High

Do you agree with the following statements? Answer the following questions by circling
the appropriate number. The more you agree, the higher number you should circle (1 =
strongly disagree, 5 = strongly agree).

1. Climate change is a serious issue.


1

2. Governments should do more to encourage people to recycle.


1

3. The environment is in danger due to human activity.


1

4. I worry that the next generation will face serious problems regarding the environment.
1

5. Global warming is the most important issue in the world today.


1

Section 3

How often do you do the following? Answer the following questions by circling the
appropriate number (1 = never, 2 = seldom, 3 = sometimes, 4 = usually, and 5 = always).
Remember that your answer should reflect your actual behavior, not your opinion about
whether or not you should behave this way.

1. When making a purchase, I seek out information about the products environmental
impact.
1

2. I try to purchase products that can be easily recycled.


1

3. I try to purchase products that are energy efficient.


1

4. I try to purchase products that have minimal packaging.


1

5. I try to avoid purchasing products that I know to have a negative effect on the
environment.
1
Section 4

Please answer this question by circling the appropriate number (1 = not willing at all, 5 =
very willing).

If you were planning to purchase a new cellular phone, and had to choose between a
phone that incorporated environmentally friendly technology (less packaging, easier to
recycle, more energy efficient) and an identical phone that did not incorporate
environmentally friendly technology, how willing would you be to pay 5% more for the
environmentally friendly phone?
1