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This is to certify that I have completed the Project titled Distribution & Dealer Satisfaction
Survey of Nokia Mobile Phones. under the guidance of PREETI KUKREJA in partial
fulfillment of the requirement for the award of degree of Bachelor of Business Administration

at Sikkim Manipal University. This is an original piece of work & I have not submitted it
earlier elsewhere.

Enrollment No: 1411001296

I take this opportunity to express my profound sense of gratitude and respect to all those who
helped me throughout the duration of this project. I express my sincere gratitude towards
MR. RAJ KUMAR JAIN the Chairman of our institute, for being a continuous source of
inspiration and motivation. It gives me immense pleasure to knowledge my in deftness and
sense of my gratitude to MS. PREETI KUKREJA project coordinator for the project

I would immensely thank the other faculty members of the institute for providing me
immense support and guidance to complete the project.


The project titled To study the brand marketing strategies of NOKIA deals with the
study of Cellular Mobile industry with special emphasis on strategies adopted by NOKIA to
be a market leader in India. It studies the existing plans, various factors which resulted in the
growth of the company.

The study was to determine present scenario, what is the present scenario regarding the
Cellular Mobile industry in India. The steps taken by the government for the rapid growth of
industry. An overview about Nokia emphasizing on the strategies adopted by Nokia to lead in
the Indian market, Marketing Mix and SWOT analysis.
Growth in India's mobile handset production is rapid, propelled by the speed of growth of
mobile subscriber numbers. Local brand mobile phones are also set for growth in the Indian
market thanks to the rising demand for low cost and ultra low cost mobile phones, and EMS
(Electronic Manufacturing Services) vendors to lower revenue exposure to large
multinational vendors.
With low mobile penetration and favorable government policies, original mobile phone
equipment manufacturers are increasingly setting up manufacturing facilities in India. In
January 2006, Nokia initiated operations in its Chennai unit, setting a record with the
production of a record 25 Million handsets in its very first year. Motorola and EMS vendors
like Foxconn and Electronics have followed with plants set up in India.
The furious pace of growth of the demand for mobile connections in India has given a boost
to the demand for home-based mobile manufacturers. The growth of Indian mobile market is
unrivaled all through the world.





1.1 Overview of Company
1.2 Companys Profile
1.3 Types and features of product
1.4 S.W.O.T Analysis






Scope of the study
Marketing Mix









This project is an attempt to study the mobile industry and various players in the
market who are fighting to grow their market share and also to bring out the status of
nokia in customers mind. Out of players in the market I have selected NOKIA and
done a study to get information about the marketing strategies adopted by them
sustain in the market.
This project is an attempt to bring under one cover the entire hard work and
dedication put by me. I have tried to put into paper, the maximum information
that I could gather during the project from various sources, in simple ways.
This project is an attempt to increase my knowledge and skills and provide valuable
knowledge about the organization.
To know the brand awareness and brand preference of nokia handsets in the view of
customers and also to know the marketing strategies followed by the companies to tap
the market, target segment, basis of choosing the target group, the customer
preferences associated with the product and existing distribution channels of the

company. Advertising strategies followed to tap the target market and how the
company became a local brand.
The data collection was mainly done through secondary data through the help of
various magazines and searching through internet.

Nokia is still the market leader with a large portion of market share nearly 49%

followed by Motorola and LG having 15 and 14 % market Share respectively

followed by others.

Nokia success for being market leader is due to their constant focus, Brand

Building, Distribution, made for India Products that is Going Local.

In order to tap the rural market and beat the competition NOKIA brought some

special mobile Phones in the market with some value added services like Saral
Mobile Sandesh and they are also implementing the idea of shared mobile phone
offered through a local village entrepreneur with the help of NGOs to increase the
penetration level.

Started on a slow note, mobile manufacturing in India has now picked up pace to the extent
that it is now posing a threat to China as a base for low-cost handset production. A Research
Firm highlighted that in past 12 months between May 2008 and 2009, India-produced units
shot up by 68%.



Nokia has played a pioneering role in the growth of cellular technology in India, starting with
the first-ever cellular call a decade ago, made on a Nokia mobile phone over a Nokiadeployed network.
Nokia started its India operations in 1995, and presently operates out of offices in New Delhi,
Mumbai, Kolkata, Jaipur, Lucknow, Chennai, Bangalore, Hyderabad, Pune and Ahmadabad.
The Indian operations comprise of the handsets business; R&D facilities in Bangalore,
Hyderabad and Mumbai; a manufacturing plant in Chennai and a Design Studio in Bangalore.
Over the years, the company has grown manifold with its manpower strength increasing from
450 people in the year 2004 to over 15000 employees in March 2008 (including Nokia
Siemens Networks). Today, India holds the distinction of being the second largest market for
the company globally.
Design Studio
Nokia has set up its first Design Studio in Bangalore in partnership with Srishti School of Art,
Design and Technology. The first of its kind, the design studio will give Nokia designers and
Indias talented youth the opportunity to work together on new design ideas for India and the
global markets

Business Devices
Nokia has established itself as the market and brand leader in the mobile devices market in
India. The company has built a diverse product portfolio to meet the needs of different
consumer segments and therefore offers devices across five categories i.e. Entry, Live,
Connect, Explore and Achieve. These include products that cater to first time subscribers to
advanced business devices and high performance multimedia devices for imaging, music and

Nokia has been working closely with operators in India to increase the geographical coverage
and lower the total cost of ownership for consumers. Today, Nokia has one of the largest
distribution network with presence across 1, 30,000 outlets. In addition, the company also has
Nokia Priority Dealers across the country and Nokia Concept stores in Bangalore, Delhi,
Jaipur, Hyderabad, Chandigarh, Ludhiana, Chennai, Indore and Mumbai to provide
customers a complete mobile experience.

Services business
With the global launch of Ovi, the company's Internet services brand name, Nokia is
renewing itself to be at the forefront of the convergence of internet and mobility. From being
a product centric company, Nokia is now focusing to become solutions centric. The strategic
shift is built on Nokias bid to retain consumers and empower Nokia device owners to realise
the full potential of the Internet. Nokia will build a suite of Internet based services like Nokia
Maps, the Nokia Music Store and Nokia N-Gage around its Ovi brand.

Infrastructure business
Nokia Siemens Networks is a leading global enabler of communications services. The
company provides a complete, well-balanced product portfolio of mobile and fixed network
infrastructure solutions and addresses the growing demand for services with 20,000 service
professionals worldwide. Its operations in India include Sales & Marketing, Research &
Development, Manufacturing and Global Networks Solutions Centre. Headquartered in
Gurgaon, Nokia Siemens Networks has 47 offices and presence in over 170 locations across
the country.

Some firsts for Nokia in India

1995 First mobile phone call made in India on a Nokia phone on a Nokia network
1998 - Saare Jahaan Se Acchha, first Indian ringtone in a Nokia 5110

2000 - First phone with Hindi menu (Nokia 3210)

2002 - First Camera phone (Nokia 7650)
2003 - First Made for India phone, Nokia 1100
2004 - Saral Mobile Sandesh, Hindi SMS on a wide range of Nokia phones
2004 - First Wi-fi Phone- Nokia Communicator (N9500)
2005 Local UI in additional local language
2006 Nokia manufacturing plant in Chennai
2007 First vernacular news portal

How Nokia Changed

In reviewing Nokia, it is critical to realize that the firm did not simply state, we want
to take advantage of changes in technology. Instead, the firm made numerous
changes in its organization, including structure, personnel policies, and leadership, to
make changes in technology possible.
To illustrate, in 1992 the firm decided to focus on telecommunications. As a result, all
noncore businesses were divested. This involved a massive sell-off of Nokias
noncore assets. The individuals remaining in the firm after these assets were sold
differed greatly from the original employees.

For example, more than one-third of the remaining employees were in research and
development. The organization of the research-focused employees was also different
from many organizations. Researchers were not centralized in a single research and


development the firm. They were organized in this way to encourage creativity
throughout the organization. The structure of the organization was also different.
Nokia developed a flatter structure in which employees are encouraged to talk to each
other rather than up and down a hierarchy. This can result in more communication
and some inefficiency; however, it also encourages more creativity. These changes
illustrate one of the foundations for the management of technology and innovation:
Not a single change but an organization-wide effort is needed to succeed. Thus, a firm
cannot simply decide to introduce a new technology or take advantage of a given
Instead, the company must ensure that the entire firm fits with the technology and the
changes it introduces to both the organization and its people. This alignment is critical
to the success of the management of technology and innovation.

Strategic Perspective
Nokia has not simply seen a single technological innovation and changed everything
in the organization based on that one technology. Instead, it has identified key
changes in the environment and then taken advantage of the broad changes in society.
This strategic perspective results in the firms ability to identify broad trends of which

to take advantage. Once the firm identifies such trends, it then makes substantive
commitments throughout the organization to succeed in its efforts. Thus, the firm
takes consistent and essential steps to ensure that it is successful.
What can be seen is that small, systematic steps are taken each year to move the firm
forward. Each of these new products shows incremental changes in the firms
strategic direction. Nokia does not simply decide to dominate a particular industry.
Instead, it employs a strategic perspective which argues that the firm needs to identify
where it wants to go. Then the company takes the necessary steps to move to that

Manufacturing in India
Nokia Manufacturing Plant- Sriperumbudur, Chennai
As the global leader in mobile communications, Nokia is committed towards developing its
manufacturing infrastructure and establishing a global sourcing network. The Nokia India

manufacturing facility located in Sriperumbudur, Chennai is Nokia's tenth mobile device

production facility globally and has been created in line with Nokia's global philosophy of
developing world class manufacturing systems that enable best-in-class quality, lowest cost,
world class responsiveness, just in time delivery and a challenging and joyful work
Factory Highlights:

The factory construction from ground breaking to manufacturing of the first product
took 5 months
Started with 550 people in January 2006, and grown to 8000 people

Spread over an area of 210.87 acres, Nokia started its operations with 550 employees in
January 2006 and today boasts of 8000 employees, 70 percent of whom are women.
Currently the factory exports to 50+ countries in South East Asia, Middle East, Africa,
Australia and New Zealand, other than catering to the demands of the domestic market.
Nokia's manufacturing facility in India reiterates its commitment to the fast growing Indian
telecommunications market.
The Chennai facility has been built keeping in mind Nokia's commitment to employee safety
and in compliance with environmental standards. The quality management and safety systems
at the Nokia manufacturing facility in Chennai are world class.
Nokia lays special emphasis on the well being of its employees and the Chennai
manufacturing site has a highly motivating work environment that is designed to sustain a
large & diverse talent pool. Nokia's employee practices are committed to ethical conduct, full
compliance to applicable national and international laws and respect for human rights in the
spirit of internationally recognized international labor standards in the ILO conventions, the
United Nations' Universal Declaration of Human Rights and the Convention on Rights of the
Nokia Telecom Park
Chennai was selected as the location for the Nokia Telecom Industry Park due to the
availability of skilled labor, support from the state government and the presence of good
logistics connections. The mission of the Nokia Telecom Industry Park is to create a network

of co-located and co-dependent partners that operate at world class standards and
manufacture high quality products.
Developing the Nokia Telecom Industry Park in Chennai into a world class high-tech
industrial zone is an important part of Nokia's global manufacturing and R&D network
strategy. The Telecom Industry Park not only underlines Nokia's successful cooperation with
the Indian government but also represents a unique and optimized business model that will
provide growth opportunities for all parties in the value chain. The 210.87 acres of land in the
Telecom Industry Park provides Nokia with the benefits of a pollution free environment, inhouse customs clearance, and uninterrupted power supply.

With Nokia as the key enabler, the Telecom Park is expected to attract about 8 global and
domestic component suppliers and service providers and create more than 30,000 jobs when
it is in full operation. This Nokia Telecom Park will ensure that the Nokia India Chennai
factory has a consistent supply of lowest total cost material and services from reliable,
collaborative sources of global and local suppliers.
Nokia Telecom Industry Park
Construction update and facts

Size - 210.87 acres

External fencing around Nokia Telecom Industry Park - 5.7 km in length

Area of main building: 30,748 m2

Total amount of structural steel used in factory construction 2500 t

Total Capacity of under ground water sump at factory 450 m3

Project Safety target achieved - One Million man hours without Lost Time Injury

The Nokia Telecom Park also has made significant progress with 7 suppliers already signed
up. These include Sal comp, Asp comp, Falcon, Perlos, Jabil, Laird and Wintek. Of these, 2


suppliers have already started shipping to Nokia Chennai viz., Sal comp and Perlos. The Park
will strengthen Nokia's delivery capabilities with added efficiencies and flexibility.
Nokia has been the engine of the investment train in Chennai's manufacturing corridor. Many
electronics manufacturing companies have announced plans to come to the city since Nokia's
establishment. The total impact of the Nokia SEZ can be measured only by an assessment of
the actual potential realized encompassing construction, direct employment and services
opportunities that are sure to come in response to the rising headcounts.

Key Aspects That Are Kept In Mind While Manufacturing a


Nokia Organization

Devices, responsible for developing the best device portfolio for the
Services & Software, reflecting our strategic emphasis on developing and
growing our offering of consumer Internet services and enterprise solutions and
Markets, responsible for the management of our supply chains, sales channels
and marketing activities.
Corporate Development Office, focuses on our strategy and future growth, and
provides operational support for integration across all the units.
On April 1, 2009, Nokias Networks business group was combined with Siemens
carrier-related operations for fixed and mobile networks to form Nokia Siemens
Networks, jointly owned by Nokia and Siemens and consolidated by Nokia.

Future of Nokia

The cellular phone market in India has been recording

significant growth since the late 1990s and is the fastest
growing in the world. Nokia, the world leader in cellular
phone communications entered India in 1995. Since
then the Nokia brand has been steadily growing and has
gained wide acceptance in the Indian market. India is
the third largest market for Nokia, in terms of its net
sales as of 2006. Nokia is one of the most trusted
brands in India and leads other cellular phone brands in
terms of market share, advertising and customer
service. The innovative technologies, user-friendly
features and affordable prices contributed to Nokia's
success in India. The case facilitates discussion on
Nokia's brand building strategies in India. It also allows
for discussion on the future of the Nokia brand and the
cellular market in India.
Pedagogical Objectives
analyze the role of brand image in sustaining market leadership
To analyze the competitive scenario in the cellular market in India
To discuss the strategies of Nokia in India
To analyze the localization strategy of Nokia as a major tool for gaining market
To analyze the future of the Nokia brand in India

We are discussing the impact of iPhone on the rest of the cellular handset and laptop
ecosystem. Frank Levinson wrote an important piece when the iPhone was first
announced, which you need to read for context.

On RIM, we have said, that the target market (Prosumer, Smartphone with Integrated
Messaging) is very different from the iPhone (Consumer, Smartphone with Media
Player focus). Nokia, however, has a lot more overlap with iPhones target audience.
IPhones innovations: 3 things
1. The use of OSX this choice empowers the device to be able to run Safari,
mail and widgets. It continues to unify the Apple product line, not fragment it.
2. The use of a new consumer user interface (UI) and the deletion of so many
buttons and choices (this was what we did about 16 years ago with Windows
and 23 years ago with the first Mac and now we are doing it again).
3. The realization that Moores law scaling of silicon is continuing and this
makes the possibilities of integration infinite.
Nokia Becomes India Most Trusted Brand
Been a presence in the collective consciousness of the Indian people, having helped establish
India as one of the most exciting mobile technology regions on the planet. The recent
emergence of sharable handsets such as the dust resistant Nokia 1208 with multiple
phonebooks tailored for village life, encapsulates an approach to understanding communities
and adapting technologies to adapt to suit the varying natures of communication.
The Economic Times has reported that Nokia has earned the most trusted brand in India:

"Following a stellar four-year run, the Finnish telecom brand has climbed 70 ranks to
become Indias No 1 trusted brand, according to this years Most Trusted Brands
survey. The survey was conducted nationwide across 12 cities, involving over 8,000
respondents across socio-economic class, age and income groups." Carnegie Mellon
University and Haas Business School at Cal held a one day conference on The
Mobile Future. The conference featured a clutch of well-known researchers and
industry people.
The take away was that perhaps the mobile phone revolution has finally arrived in the
USA. It was also interesting to see that very few speakers talked about the mobile

revolution that has arrived in the rest of the world. While listening to the speakers I
was thinking of last years GSMAs conference in Macau when I got to listen to and
his vision and strategy for mobile phones in Japan. Or, how the Warner Bros honcho
finally admitted that perhaps they got it all wrong with music download music
The one person who did draw the attention of the audience to what is happening in the
rest of the world was Senior VP and CTO of Nokia. He pointed out that the mobile
revolution was just getting started even with 3.5 billion mobile phones. He gave a very
interesting historical perspective and said, I am watching a movie I have seen three
times. He was referring to the mainframe phase of prior to 1984 where the value
shifted from hardware to services, which was then followed by the mini-computer
phase and finally the desktop PC revolution. The point he was making is that through
these three phases he witnessed the diversity and incomputable standards resulting in a
notion of standard platform. This standardization of platform has not happened in
the mobile space as yet. He also emphasized how mobile phones were different from
computers in that they were a personal device that comes equipped with sensors. (He
never really mentioned location-based services or Nokias acquisition of Navteq and
that was very interesting. I wonder why there was no mention of Navteq considering it
was a multi-billion dollar acquisition.)
Dr. Iannucci made a very telling point when he said that with our techno-centric bias
(referring to the US and Silicon Valley) we might miss out on how to serve the next
billion people that are from emerging markets. What does mobility mean to people in
these emerging cultures? That is the biggest challenge for innovation he added. He
shared an interesting statistical tidbit that goes to show how strong Nokia is in other
parts of the world other than the USA. Did you know that every second Nokia
produces 17 mobile phones?
The path to the future according to Dr. Iannucci has to be open and Nokia is open to
innovators he stressed. (Just a few weeks ago Nokia launched Nokia Forums to woo
developers and users.)

While Dr. Iannucci spoke from the industrys perspective, David Pogue of NY Times
spoke from an American consumer users perspective and provided a whole different
dimension to the future of mobile. Pogue opened the conference with his hilarious and
entertaining speech. He had original video advertisement and musical tribute laced
into his speech. Pogues speech came from a mobile consumers perspective, where he
highlighted various services ranging from Grand Central to Cell Wave to iPhone. I
videotaped Pogues speech that you can watch on YouTube. Pogue talks about the joys
of using VOIP and how some telecom companies have failed to integrate their billing
system (OSS is a huge problem for many telecos) at the backend.
Pogue talks about mobile services like text-to-voice and Googles cellular 911
services, where you get the information without any advertisements or costs.

Type and Features of Nokia

NOKIA 6300


Rs. 8200



General Network
GSM 900 / GSM 1800 / GSM 1900
Dimensions 106.4 x 43.6 x 11.7 mm, 56 cc
Weight 91 g
Type TFT, 16M colors
Size 240 x 320 pixels, 31 x 42 mm
Downloadable wallpapers
Type Polyphonic (64 channels)
Customization Download
Vibration Yes

Phonebook 1000 entries
Photo call
Call records 20 dialed, 20 received, 20 missed calls
Card slot micro SD (Trans Flash)
7.8 MB of user memory
GPRS Class 10 (4+1/3+2 slots), 32 - 48 kbps
EDGE Class 10, 236.8 kbps
3G No
Bluetooth Yes, v2.0
Infrared port No
Instant Messaging
Browser WAP 2.0/xHTML
Games Yes + Downloadable, special offer
Colors Silver, Black

Camera 2 MP, 1600x1200 pixels, video(QCIF)

- Java MIDP 2.0
- FM stereo radio
- Push to talk
- MP3/MP4/AAC/AAC+/eAAC+ player
- Voice memo
- Voice command
- T9
- Calendar
- Calculator
- Built-in hands free



To study the marketing objectives of Nokia.
To study the brand preference and awareness of Nokia.
To evaluate the application of Marketing Mix (4ps) by NOKIA in India
to retain old customers and also to attract new consumers in India.
To study the buying behavior of customers.
To study the satisfaction level of customers from Nokias after sales




To evaluate the marketing strategy of Nokia in accordance to its brand awareness &
brand preference in the market. Also to study Nokias product preference among
customers in comparison to the new niche players in the market.
The pace of growth of the rapidly expanding Indian telecom industry continues to
enthrall everyone. With six million subscribers being added every month and the
subscriber base growing at a rate 82.2 per cent per annum, this is one country no
handset manufacturer can afford to take eyes off.
The fact that the country has the lowest telecom tariffs in the world and that the sub$100 handsets are the most in demand hasnt deterred anyone and the worlds largest
handset manufacturing companies are here trying to carve out as large a market share
as they can.
The potential is huge: mobile penetration in India is still a paltry 13 per cent, which
means that the scope for growth is immense. Keeping this in mind all the leading
companies have set up their manufacturing facilities in the country.
Says Pankaj Mahendroo, president Indian Cellular Association: The potential of the
handset market has the players constantly re-jigging their strategies to get the largest
share possible of the next billion customers. It is also pertinent to mention that the
model that they follow in India isnt necessarily reflective of their global strategy.


Major Players
The major players in the handset market today are Nokia, LG, Motorola, Samsung,
Sony Ericsson and LG. Nokia is by far the largest player in the industry commanding
a 49 per cent share in the business, followed by LG and Motorola at 15 and 14 per
cent, and Samsung, Sony Ericsson and others accounting for the rest.

Nokia is the
only player
that is
across the spectrum in all categories but others such as Sony Ericsson and Samsung
have decided that while they would have some models catering to the lower-end of the
market their emphasis is on the mid- to upper-end customers, who look for value for
money deals and not just cheap ones.
The successful management of technology and innovation has become one of the most
critical aspects of business today.

To recognize how important the management of technology and innovation (MTI) is,
one simply has to look at the impact of those skills on many of the leading firms


around the world. Here is a brief overview of one of the worlds leading technology
firms, Nokia.

Indian Strategy
Marketing Strategy is . . . "a simple statement of your overall plan for attracting
prospects, and converting them into first-time customers, and then lifetime, repeat
The marketing strategy is shaped by overall business goals. It includes a definition of the
business, a description of products or services, a profile of target users or clients, and defines
companys role in relationship to the competition. The marketing strategy is essentially a
document that you use to judge the appropriateness and effectiveness of specific marketing
To put it another way, marketing strategy is a summary of company's products and position
in relation to the competition; sales and marketing plans are the specific actions to achieve
the goals of marketing strategy. The marketing strategy provides goals for marketing plans. It
tells us where we want to go from here.
Strategy is all about how to build customer loyalty? How can you increase sales to existing
customers (more frequent use or buys, selling a broader product line to them) or new
customers (existing and new products)?

Our vision is a world where everyone can be connected


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.
We are living in an era where connectivity is becoming truly ubiquitous. The communications
industry continues to change and the internet is at the center of this transformation. Today, the
internet is Nokia's quest.
Nokia's strategy relies on growing, transforming, and building the Nokia business to ensure
its future success.
Nokia, with a network of 95,000 outlets in India, has established a distinct distribution edge
over its competitors. Shiva kumar claims that 50,000 of them are exclusive Nokia brand
stores. Besides the original distribution arrangement through the extensive network of HCL,
Nokia has also commenced its direct distribution efforts.

When mobile phone users graduate to higher-priced handsets, they want specialised attention
from retailers. Realising this need, all kinds of outlets that are selling Nokia mobile phones
along with other products, like STD booths, stationery stores, grocery shops, have now
started setting up shops exclusively for mobile phones. Nokia is also establishing concept
stores in major Indian cities. Dutt explains, At our concept stores, we have tried to bring to
life all the experiences that we offer at Nokia experiential zones across the world.


If the focus on product attributes enabled Nokia to establish strong brand recall among
consumers, its ability to capitalise on the boom in handset sales from 2002 onwards
was as much the result of its distribution strategy, modelled on that of the larger
FMCG firms.
The outlets include over 200 Nokia Priority Dealers (exclusive or shops-in-shop) who
participate in the corporations brand programmes.
As a result of this saturation coverage, Nokia today is present in every town where
mobile services are available, and its distribution model is being emulated by
All of these will be reinforced as growth in the cellular services market accelerates.
Today, the market for new subscriptions is growing at 2 million a month, thanks to
tariffs that have dropped steeply.
And with handset prices having fallen 45 to 50 per cent since 1995, after reductions in
import duties from 27 to 5 per cent and sales tax from 16 to 4 per cent, Nokia intends
to saturate the market over the next few months.
Against the 19 GSM and three CDMA models that are currently available, Nokia
plans to launch over 20 new products in India over the next year, including seven
CDMA handsets.
Marketing Mix (4Ps)
The Marketing Mix model can be used by marketers as a tool to assist in defining the
marketing strategy. Marketing managers use this method to attempt to generate the optimal

response in the target market by blending 4 variables in an optimal way. It is important to

understand that the Marketing Mix principles are controllable variables. The Marketing Mix
can be adjusted on a frequent basis to meet the changing needs of the target group and the
other dynamics of the marketing environment.

Combination of marketing elements used in the sale of a particular product. The

marketing elements center around four distinct functions, sometimes called the Four
Ps: product, price, place (of distribution), and promotion. All these functions are
considered in planning a marketing strategy, and any one may be enhanced, deducted,
or changed in some degree in order to create the strategy necessary to efficiently and
effectively sell a product.
The term marketing mix refers to the four major areas of decision making in the
marketing process that are blended to obtain the results desired by the organization.
The four elements of the marketing mix are sometimes referred to the four Ps of
marketing. The marketing mix shapes the role of marketing within all types of
organizations, both profit and nonprofit. Each element in the marketing mix product,
price, promotion, and place consists of numerous sub elements. Marketing managers
make numerous decisions based on the various sub elements of the marketing mix, all
in an attempt to satisfy the needs and wants of consumers.



Historically, the thinking was: a good product will Functionality;

sell itself. However there are no bad products Appearance;


anymore in today's highly competitive markets. Brand; Service; Support;

Plus there are many laws giving customers the Warranty.
right to send back products that he perceives as
bad. Therefore the question on product has
become: does the organization create what its





characteristics of your product or service that

meets the needs of your customers.



How much are the intended customers willing to Financing;


pay? Here we decide on a pricing strategy - do not Options; Allowances.

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.

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.



Channel members; Channel



Coverage; Service Levels;

Think of the Internet and mobile telephones.

Internet; Mobile.

(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,


Relations; Message; Direct


Direct Marketing, 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.
The function of the Marketing Mix is to help develop a package (mix) that will not only
satisfy the needs of the customers within the target markets, but simultaneously to maximize
the performance of the organization.





During my dissertation project, I have followed two methods:
Primary method of data collection
In this method I have used mainly the questionnaire method.a set of questions
was given to the customers visiting various nokia care centres, nokia priority
dealers and other nokia outlets.

Secondary method of data collection


Secondary data consists of information that already exists somewhere and may have
been collected for a different purpose. It provides a starting point for research
and offers the advantage of lower cost and quicker availability. The sources
of secondary data are:

Case studies
Articles from different magazines like Business India, Business World and
Business Today etc.
Newspaper articles from Brand Equity, Economic Times etc.Based on the
above information obtained from the above sources, concepts were
developed on which analysis was made.

Time constraint is a major problem in this project. The work is based on only the
information fathered from the websites, journals and magazines.And the
information collected through questionnaire may suffer from biasness of
respondents and their inefficiency to answer.
Nokia`s strategy as of pricing is very simple. They are trying to target everyone from a 12
year old teenager to 60 yr old man. Their pricing fits the pocket of everyone from a middle
class income family to the super premium league.

The base model of Nokia in India as of now is Nokia 1200 which is sold at a price of
Rs 1,350 appx. Whereas the costliest model of Nokia commands a price of 50,000 +
Indian Rs .Nokia has a very unique approach towards pricing in south east Asia
especially India where a new product when launched is sold at a very high price but
as and when the time passes by they reduce these prices considerably. It helps the
company to maximize its profits initially and in later parts of product cycle the phone
is sold at only variable cost plus profit. The company has divided its range on the
basis of price as follows
Below 5000- base products.
5,00030,000---- products with few unique features and latest technology
20-000---- 50,000---- mobiles with cutting edge technology
Initially the Nokia products are priced at a premium range in order to skim the market but in
later stages in order to penetrate in to the market deeper the company reduces its prices,
generally this happens after six months of the launch. In terms of Pricing Nokia products are
bit on the higher side if we compare it with competitor products.

Here, even as price continues to be a significant factor for determining the choice of
handset or service provider, the value equation, according to Sanjay Behl, marketing
head of Nokia India, is even more imperative. Nokia found success with its Made in
India Nokia 1100, which incorporated unique features such as a torchlight, a dustresistant keypad and an anti-slip grip to appeal to the semi-urban markets. Importantly,
Behl says that even applications and software such as T9 or language interface and
text input have to be customized to meet consumer needs.




At Nokia, they like to make customers buying experience as convenient as using their
mobile phones. Nokia has a retail chain across the country, to meet all the mobile
phone needs. The chain consists of exclusive flagship stores and important mobile
phone shops in all major Indian cities.
NOKIA PROFESSIONAL CENTRES: These are Nokia flagship stores that
offer a full range of Nokia mobile phones and accessories in an international
retail environment, which helps the customers in their decision making. NPCs
also provide "Nokia Care", their branded after sales services, provided by
specially trained staff. The NPC is truly a one-stop centre for all your mobile
phone needs.
NOKIA PRIORITY DEALERS: These key outlets allow the company to
come closer to the customers. Spread across the country, and expanding rapidly
in terms of reach, the NPD chain ensures that you get the latest Nokia mobile
phones and genuine accessories, quickly and conveniently.

Distribution Channel of Nokia in India

Nokia has a very simple distribution channel in India and its very similar to its
competitors and is working to the advantage of the industry as a whole. As of the


distribution channel company has used different networks to reach to the masses and
their distribution channel is
PRIORITY DEALERS: They are the people who represent the company.
They have all the latest models and have information about future introductions
by the company. Here customers normally find the personnel of nokia. In India
the total number of priority dealers is around 8 only and they are located at
major cities of the country.
SHOWROOMS: The Company makes sure that their products are available at
leading electronics shops like Agrani Switches, Airtel shops etc. They are the
most crucial part of the supply chain. The company has normally Tie up with
these chain of retailers who display and sell the models of Nokia and also act as
a place of service stations as their trained personnel are trained by Nokia staff
RETAILERS: They normally form the lower end of the distribution chain.
They sell the max volume of the mobile phones for the company. The are
located at different strategic locations and customers mostly purchase these
from here only.


GREY MARKET: Its a very important distribution channel used by the company.
Nokia India`s operation may not be using this channel as its illegal sorts but lots of
Nokias products are available in these markets .We can understand the volume by the
fact that grey market sells 75% of the total turnover of the mobile phones sold

Nokia, a leader in
India's US$2.5
billion mobile
phone market, is
built a unit in
Chennai. The
manufacturing unit
will be Nokias
tenth mobile device
production facility globally. They have selected Chennai to be the location for the factory
because of the availability of skilled labor, friendly business environment, and support from
the government, good logistics connections and overall cost-efficiency.

Nokia is a very techno savvy and market savvy and friendly company. As of the
advertisement expenditures, Nokia spends maximum amount on advertising as compared to
its competitors and is closely followed by Samsung. The company uses mix of Public

relations, promotions, advertising and personnel selling and the major focus is on the
advertising. The company spends 50 %of its total revenue on advertisements and the rest in
other tools. Nokia has been ranked as one of the top 5 brands in world telecommunication
and in mobile industry it holds the premier position in terms of brand recall, customer
satisfaction etc. Different advertisement campaigns have been launched from time to time by
Nokia and more often at the time of launch of a new model.

PRINT CAMPAIGNS: The thing to observe in their advertisement is that all

their campaigns are targeted at youth or at professionals which form the core of
all the campaigns. The Nokia hasn`t kept using particular colors in their
campaigns but they have used a mix of it - yellow in case of 8310 ,red in case
of 8810. But one thing is common that is they are flashy, very attractive and
attention garners.
Their partner Bates Advertising company in India has done a wonderful job. Another
thing observed is that their campaigns in print target more on product features that is
that their campaigns have product centric appeals.

ADVERTISEMENTS IN TV`S: We have observed that strategy in television is

entirely different when Nokia decides to start its marketing initiative on TV. The focus
is more on emotional appeal and the most commonly appeal used by Nokia is the life
style .who can forget the soup ad of Nokia and their latest campaign on Nokia 8810.
The most preferred channel in India for Nokia is CNBC followed by star and then

PUBLIC RELATIONS: Mostly it is done by South East Asia operations and it deals
with printing of articles in magazines which mainly deal with business, leisure and
newspapers. The articles are mainly written by prominent personalities about their


product and its features. Another form of public relations being used is the use of
bollywood stars.

PROMOTION CAMPAIGNS: Promotions are normally done by sponsoring the

events which are mostly related to sports and games like golf, Polo, Cricket And
sponsoring of other events like fashion shows, movies, Co promotions Etc. This tool
has been second most preferred tool used by Nokia in India.

From Product Centric To Solutions Centric (Strategy)

In a major shift from its product-centric strategy that it has successfully run with for
years, Nokia has decided to become solutions-centric. What it's beginning to do in
India - its second largest market after China - reflects a global shift in strategy.
Devinder Kishore, Director Marketing, Nokia India, says, "We are moving into selling
solutions. Devices will not be the only thing any longer.
Over the next three-to-six months, we will be offering combinations of products and
services and #8230; there will be lots of services." For example, the just-launched
Nokia 6110 Navigator whose integrated GPS offers location-based services to the
consumer, besides 3G, multimedia and camera features.
While GPS is also integrated with Nokia N95, N82, E90, and S60 and Series 40
devices via Bluetooth, Kishore says the 6110 sets off the bundled solutions rollout.
The strategic shift is built on Nokia's bid to retain consumers over their lifetimes.
It therefore extends to very clear consumer identification. A major global study by
Nokia has thrown up a segmentation model outlining 12 types of consumers common to all markets - looking for very different things from their mobile
"Our research shows that our consumers are not cut by age or price, but choose by
aspiration and involvement with the mobile category," says Kishore. The 12 segments

have been distributed under four consumer categories - Live, Achieve, Connect and
The 'Live' category is aspirational for whom the handset is a lifestyle accessory. Nokia
Xpress Music targets this category.
The 'Achieve' category wants products and services that help with the achievement
endeavour. Nokia's E-Series targets this category.
'Connect' is made up of simple "connectivity and progressive simplicity" users. The
'Explore' category loves technology, is fairly global, individual, but loves to share
The N-Series targets Explore consumers. Nokia's product philosophy is guided by the
Flow, Wow and Show aspects of mobile phone experiences.
With 'Flow' the product works just the way the consumer likes it (example, E-Series).
The 'Wow' product creates such a strong emotional response that it feels almost
magical (N-Series).
The 'Show' product appears "simply beautiful and just for me." By pushing different
combinations of these three aspects within each consumer category, Nokia's attempt is
to create four unique impressions



1.My first hypothesis was that Nokia is a well known brand and by my study I have
come to know that yes it is a well known brand because more than 65% people stated
2.My second hypothesis was that people always buy Nokia .by the study we have
come to the conclusion that not always but most of the time people buy Nokia
handsets mostly when they want long lasting battery backup and in case if they are
expensing more and are brand conscious.
3.The third hypothesis was that customers are satisfied with nokia service Centre but
this hypothesis is not true because only 39%people are satisfied with these services.




A long established identity and very strong brand recognition by providing wide
variety of phone models. Nokia had the vision and foresight to define the brand,
develop products with a clear product and design strategy and had a clear
communication strategy.
Nokia phones have become more than just methods of communication; instead they
have become a fashion statement. Photography and Fashion are interwoven as they are
both vibrant expressions of imaginations and feelings. Nokia believes in connecting
people to their passions. Nokias hi-end imaging devices enrich the customers
imaging experience by providing leading technology


Consumer concern for reliability and functionality has enhanced the popularity of
Nokia phones and made it a trusted brand. The Nokia Research and Development
Center in Bangalore On the strength of its large talent pool of skilled researchers,
India has become a global hub for innovation and Research and Development, and a
leader in developing cutting edge solutions on both 2G and 3G platforms for mobile
devices. Nokia has two additional R&D centers in India, one each in Hyderabad and

The only weakness that NOKIA has it closed technology. Nokia is using Symbian's operating
system in all their mobile phones. As Mobile phone prices are falling, handset vendors and
mobile users are looking for new lucrative software operations.

Since consumers demand more than just cheap phones, low cost feature rich phones is
the need of the hour, both from consumers and vendors point of view. I believe that
the next phase of mobile telephony growth would come from B and C class cities and
rural areas where most of the population cannot afford expensive handsets but would
like to use mobile services. And this is the target market for handset vendors.
As almost all handset vendors have joined the price war, market would see a sustained
drop in handset prices, especially, at the entry level where market is fairly competitive.
Though entry-level consumers are betting on good price deals but in the long run price
will no longer be the only factor as eventually customers would look for value.

Operators engagement in the whole value chain is very critical and low cost handset
market dynamics driven by operators adds more value to consumers and makes the
value chain more efficient.

But ultimately, since mobile telephony is the consumer driven market, its important
for stakeholders to match customer expectations which is availability of handsets at
affordable price and good after sales support. Hence, its important for operators to
partner with the right handset vendor which has a robust distribution channel.

All the stake holders in the supply chain have now realized that working in isolation is
not a way forward to address the low cost segment. The joint go-to-market strategy is
the right way to move forward and hence chip manufacturer-OEM-operator
collaboration would help reducing cost and time to market low cost handsets.
But the biggest challenge in front of vendors and operators is that consumers dont
want low-cost phones to be low on features. The demand is of feature rich low cost


The ULCH handset marketplace is currently dominated by Motorola and Nokia, but
other handset manufacturers including LG, BenQ, Philips, Ningbo Bird, Haier, and
Kyocera has plans to come-up with innovative low-cost handset strategy to compete
with biggies like Nokia, Motorola and ZTE who have already made their presence felt
in Indian market. ZTE is expected to sell around 10 million handsets this year in India.
According to ABI research by 2011, 25 percent of handset shipped globally will be an
ultra low cost handset and India would contribute a large chunk to it. As most handset
vendors have started manufacturing in India, it will be a major export hub for low cost




(Referred to question No. 1 in Questionnaire)

ConclusionThe data show

that the lot
people want to
take the Nokia

Interpretation This graph interprets that Nokia is widely popular among the people
as compared with the other brands like sony, Motorola and Samsung. After Nokia,
Sony comes at second number then the other two companies Motorola and Samsung
holds the position in market as Nokia was launched earlier than the other three
companies respectively.


(Referred to question No. 2 in Questionnaire)

conclusionThe data show

that 67%
people think
that Nokia is a
company in
mobile sector
and 12%
people are say
no. 14% people say maybe and 7% say Don`t know

Interpretation- The graph interprets that Nokia holds the repudiated position in
market. During the survey conducted majority of the people voted that nokia is one of
the leading companies as compared with the other companies. So Nokia is well known
among customers. This also increases the demand of the brand and the leads
companies growth.


(Referred to question No. 3 in Questionnaire)


people give more emphasis on battery backup and sound as compared to

picture and camera

Interpretation- The graph depicts that battery backup features is most demanding
feature by the customers as compared with the picture quality, sound, etc. The other
features also play an important role in customers life but battery backup is most imp
feature as compared with others.


(Referred to question No. 4 in Questionnaire)

ConclusionThe data show

that the 39%
people are
satisfied by the
Nokia service
center services,
so its main
problem of

Interpretation- The graph shows that the most of the customers are satisfied with the
after purchase service facilities. The main aim of service center is to listen to the
customers on time and satisfy the customers. The service center facility also effects
the brand demand among the customers.

(Referred to question No. 5 in Questionnaire)


ConclusionThe data show

that 36%
people are
wants to GPRS
in our mobile
and 29%
people are
wants to need
camera in our
mobile and
23% people are wants to need sound should be good and remain wants to good
graphics in our mobile.

Interpretations- The graph interprets that the GPRS is most required additional
features required among the customers with the essential features other than GPRS,
sound, camera, graphics are also required by the customers when they think of
purchasing the cell.

(Referred to question No. 6 in Questionnaire)

ConclusionThe data show


that 64% person views that Nokia is different to other handsets by the long battery

Interpretation- As the graph depicts Nokia is different from other hand sets like
Samsung, Motorola, etc. As we can say that nokia has a big battery backup and sound
quality whereas graphics and GPRS are also good features of handset but they lack
behind when compare with other features.

(Referred to question No. 7 in Questionnaire)

conclusionThe data show

that 53%
people think
that Nokia
price range is
suitable for all
and 33%
people think
that Nokia
suitable for Low income people. And 10%people think that Nokia suitable for average
people and 4% are think Nokia suitable for higher income people.
Interpretation- The above graph represents that nokia is affordable by people of the
entire income group. The nokia products are of very reasonable rate as
compared with other companys handset. The people of low income group

also gets the essential features in the less prices whereas high income group
people buy the product with other additional features.
At the end we can conclude that it has reasonable price limit which each
level of income group can purchase it conveniently.

(Referred to question No. 8 in Questionnaire)

conclusionThe data show

that`35 people
wants to use
less than 3000
rupees handset
and 25 people
wants to use
less than 6000 rupees handset and 20 people like to use less than 8000 rupees
handset, remaining person wants to use above 8000 rupees handsets.


Interpretation- the above graph represents that most of the people are willing to buy
the products less than 3000 rupees because they are getting all the essential and
required features in less price. So the customer avoids buying the expensive products
in which they get additional features with the essential and requires features.

(Referred to question No. 9 in Questionnaire)

ConclusionThe data show

that 31%
people were
inspired by the

Advertisements and 27% people were inspired by our friends and 24% were inspired
by the news paper and lefts were inspired by the Internet.

Interpretation- The graph depicts that the advertisement is the main source threw
which the customers keep awareness about the nokia product whereas threw internet
people seek awareness about the product but it is the least important source when
compared with other sources like friends, newspaper, etc.




Name of customer:- .
Place:- ...
Contact number:-
Q.1) which brand comes in your mind when you are purchasing the handsets?
(A) Nokia

(B) Samsung

(C) Sony Ericson

(D) Motorola

Q.2) Do you think Nokia is a leading company in INDIA, in the mobile sector?

(B) No

(C) May be

(D) Dont Know

Q.3) which is your important requirement in your mobile?

(A)Picture quality (B) Sound quality (C) Camera (D) Battery back-up
Q.4) Do you like the NOKIA Service center facility?

Strongly agree
Strongly disagree

Q.5) What extra features you want in your handset?

(A) Sound

(B) Graphics


(D) Camera

Q.6) Nokia handsets are different from other set in your view?
(A)Sound (B) GPRS (C) Battery back-up (D) Graphics
Q.7) Nokia price range of sets is suitable for: (A)Low income people
(C)High Income people

(B) Average income people

(D) for all

Q.8) how much you can pay for a handset?

(A) Less than 3000
(C) Less than 8000

(B) Less than 6000

(D) Greater than 8000

Q.9) who told you to purchase the Nokia handset (references)?

(A) Friends

(B) Newspaper

(C) Internet (D) Advertisement

Q.10) Do you think Nokia is popular among?

(A) Rural Ares

B) Urban Area

(C) Both (A) and (B)


(D) None of these



The mobile telephony trend the country is witnessing today portrays a contrasting
image. On the one hand there is a huge rural and semi-rural mass waiting to be
connected, while on the other one sees that to the chic and modern urban class, mobile
phone is now more than just a device to stay connected.
Nokia, world's leading mobile phone supplier believes that India will emerge as the
second-largest mobile phone market by year 2010. At present, it is the third-largest
mobile phone market in terms of volume sales for Nokia, after the US and China,
respectively. Nokia India has also earmarked $150 million, to be invested in phases
over the next few years, to upgrade its manufacturing facility in Chennai. At present,
the plant manufactures 20 million units in 11 months for sale in India and overseas.


India is the fastest growing mobile market in the world with six million subscribers
adding every month, the mobile industry in India has taken off in a big way " Sunil
Dutt, Director of Nokia India.
Nokia will keep expanding its venture in this country keeping in mind the
requirements of the Indian market. Nokia believes launching affordable yet stylish
handsets with several appealing features is the key to growth. They would launch
handsets and solutions in line with user needs with the help of extensive research to
ensure to tap every potential market and customer need.




1.Nokia should pay more attention towards its service centre facilities.
2.As the number of players are emerging in the market specially small players
and also Chinese mobile, therefore Nokia should pay more attention towards
innovative products as well as towards cost cutting.
3. As it is a number one brand so the only thing it has to do is to maintain its
position in the mind of the customers.that can be done by proper advertisement
and awareness schemes.
4. It should penetrate the rural market as it has a large scope.