The story of Dabur goes back to 1884, to a young doctor armed with a degree in medicine and a burning desire

to serve mankind. This young man, Dr. S.K. Burman, laid the foundations of what is today known as Dabur India Limited. The brand name Dabur is derived from the words 'Da' for ‘Daktar’ or ‘Doctor’ and 'bur' from Burman. From those humble beginnings, the company has grown into India's leading manufacturer of consumer healthcare, personal care and food products. Over its 125 years of existence, the Dabur brand has stood for goodness through a natural lifestyle. An umbrella name for a variety of products, ranging from hair care to honey, Dabur has consistently ranked among India’s top brands. Its brands are built on the foundation of trust that a Dabur offering will never cause anyone slightest of harm. The trust levels that this brand enjoys are phenomenally high. [edit]Pharmacy Company Dabur India Limited is the fourth largest FMCG Company in India and Dabur had a turnover of approximately US$ 750 Million (Rs. 3390.9 Crore FY 09-10) & Market Capitalisation of over US$ 3.5 Billion (Rs 15500 Crore), with brands like Dabur Amla, Dabur Chyawanprash, Vatika,Hajmola and Real. The company has kept an eye on new generations of customers with a range of products that cater to a modern lifestyle, while managing not to alienate earlier generations of loyal customers. Dabur is an investor friendly brand as its financial performance shows. The company's growth rate rose from 10% to 40%. The expected growth rate for two years was two-fold. There is an abundance of information for its investors and prospective information including a daily update on the share price (something that very few Indian brands do). There’s a great sense of responsibility for investors’ funds on view. This is a direct extension of Dabur’s philosophy of taking care of its constituents and it adds to the sense of trust for the brand overall. The company, through Dabur Pharma Ltd. does toxicology tests and markets ayurvedic medicines in a scientific manner. They have researched new medicines which will find use in O.T. all over the country therein opening a new market. Dabur Foods, a subsidiary of Dabur India is expecting to grow at 25%. Its brands of juices, namely, Real and Active, together make it the market leader in the Fruit Juice Category

Celebrate Life Type Industry Founded Founder(s) Headquarters Public (NSE, BSE) Health Care, Food 1884 Dr. S K Burman Dabur Tower, Kaushambi, Sahibabad, Ghaziabad - 201010 (UP), India Area served Key people Worldwide Dr. Anand Burman Chairman Mr. Amit Burman Vice-Chairman Mr. Sunil Duggal CEO Products Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola & Real Net income Total assets Employees (INR) 425 Crore (2008-09) (INR) 559 crore (2008-09) 3000 (Approx.) [1]

Divisions

Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian Consumer Care (Bangladesh), Asian Consumer Care (Pakistan), African Consumer Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield International (UAE), and Jaquline Inc. (USA).

SWOT Analysis of dabur india SWOT stands for Strengths, Weaknesses, Opportunities and Threats, and is an important tool often used to highlight where a business or organisation is, and where it could be in the future. It looks at internal factors, the strengths and weaknesses of a business, and external factors, the opportunities and threats facing the business. The process can give you on overview of where the business, and the environment it operates in, is strategically. This is an important, yet to simple to understand, tool used by many students, businesses and organisations for analysis. The following SWOT analysis looks at dabur india which is operating in fmcg industry. The analysis shows dabur india's Strengths, Weaknesses, Opportunities and Threats. The SWOT analysis will give you a clear picture of the business environment dabur india is operating in at the present time. Strengths: The strengths of a business or organisation are positive elements, something they do well and is under their control. The strengths of a company or group and value to it, and can be what gives it the edge in some areas over the competitors. The following section will outline main strengths of dabur india . • Having alliances with other strong and popular businesses is a major plus point for dabur india as it helps bring in new customers and make business more effective. • Being a market leader, as dabur india is, is key to their success as it boosts reputation, profit and market share. • Competitive pricing is a vital element of dabur india’s overall success, as this keeps them in line with their rivals, if not above them. • Riding high in the niche market in fmcg industry has helped boost dabur india and raised reputation and turnover.

3% at Rs 171. offices and equipment ensure the job is done to the utmost standard. 2011. Hair Rejuvenation & Revitalization Nigeria Ltd.• Keeping costs lower than their competitors and keeping the cost advantages helps dabur india pass on some of the benefits to consumers. The company's net profit is expected to go up by 24. Year-on-Year. helping to raise profiles and profits and standing out as a major strength. • Experienced employees are key to the success of dabur india helping to drive them forward with expertise and knowledge. Urban Laboratories International LLC. US 2. 3. meaning people view it with respect and believe in it Angel Broking has come out with its earning estimates on FMCG sector for the quarter ended December 2010. • dabur india has an extensive customer base. According to the research firm. With reference to the earlier announcement dated November 15. • High quality machinery. Dabur India Ltd has now informed BSE that the Company's wholly owned subsidiary. staff. • dabur india’s reputation is strong and popular. Dabur IndiaDecember quarter sales are expected to go up by 23. US . has completed the acquisition process by acquiring 100% stake in following leading personal care Companies of Namaste Group. US. • dabur india’s innovation keeps it a front-runner in fmcg as it is regularly turning out new patents/proprietary technology.1% at Rs 1140 crore. (YoY) basis. Dermoviva Skin Essentials Inc. • The services/products offered by dabur india are original. US 4. 1. and is a strength of dabur india. Namaste Laboratories LLC. meaning many people will return to dabur india to obtain them. Healing Hair Laboratories International LLC. • dabur india’s marketing strategy has proved to be effective.2 crore on YoY basis. which is a major strength regarding sales and profit.

Finland-based Nokia -.manufacturing. Shivakumar. as of April 1. Being ahead of the curve was another component of Nokia's strategy. The country has some 170 million subscribers and adds 6 million to 7 million more each month. Nokia's joint venture with Siemens for mobile infrastructure has become an independent entity. Adds Pankaj Mahendroo. in contrast." he says. India is among the world's fastest-growing markets for mobile phones. "As far as Nokia's India strategy is concerned. Nokia was completely focused on mobile phones. Nokia India has become even more sharply focused. 2011 the aforesaid Companies have also become the step down subsidiaries Companies. believes that focus played a key role in the company's growth in India. some other business. Nokia India's vice president and country manager. 2 million subscribers a month. etc. In specific segments. (GSM.) Recognizing this potential.f. Thus. is the world's most popular standard for mobile communications. others had consumer electronics." The Power of Focus D. LG and Samsung? According to company executives and industry experts.in the brand. professor of information systems at the Indian School of Business in Hyderabad. Nokia's market share in India is as high as 70%.then part of Nokia India -.was equally important. one company -. ahead of companies such as Ericsson. president of the Indian Cellular Association: "Nokia invested in each vertical of the handset ecosystem -. w. home appliances." ." Nokia's focus was not just on handsets. in distribution. of course. several global telecom giants jumped into the fray when the Indian government first opened up the country's telecom market to private enterprise in 1994. Source : BSE By most accounts." says Shivakumar. the numbers speak for themselves. 2007. adds 5 million subscribers. The mobile infrastructure business -. such as GSM telephony.e.forged ahead of rivals and today commands a 58% market share for mobile phones (also called "handsets"). establishing crucial distribution partnerships. "But all the other companies had something else to focus on. Ravi Bapna. and the U. January 01. making early investments in manufacturing and brand-building.Accordingly. The company is a key cog in India's wireless value chain. in people. But. anybody could have succeeded if they had done the same things as Nokia did.S. "If you look at the [mobile phone] landscape in 1995. Motorola. Among them. distribution and design R&D. says. "We invested before everybody else -.) How did Nokia take the lead in the Indian mobile phone market. and developing innovative product features -such as mobile phones that could double as flashlights. Nokia's strategy combined focusing on the mobile phone market. and it has used India as its emerging market lab. which stands for Global System for Mobile. (China.

we have tried to bring to life all the experiences that we offer at Nokia experiential zones across the world. India has some 95.000 of them -. and are continuously evolving. Even the retail outlets realize this and [have started] separating the two businesses.). "In 50. such as Nokia's E-series phones (which serve business users) and the N-series (which have multimedia features). (The company does not disclose its profit numbers.5 billion in 2006.Nokia has invested more than $1 billion in India so far. buyers are looking at more sophisticated mobile phones. Recently. The Indian company had revenues of more than $3. Our task here is to provide our people with relevant competency and skills sets." he adds. customer engagement … requires a completely different approach.000 outlets that sell mobile phones. In the cities where the market is maturing. some clues exist in the way demand is shaping up. "such as the metros and Tier I towns where mobility has been around for a few years.and that's a conservative estimate -. "Both companies realized that there was a tremendous growth opportunity and it was best that we utilized the resources of both organizations in an optimum manner." says Nokia India director of sales Sunil Dutt. "As the [telecom] operator footprint expands into different markets. "Then there are people with existing businesses who decide to set up a separate shop only for mobile phones.in Indian cities.only one brand is available. "At our concept stores." says Shivakumar." While Dutt does not spell out how the two partners will divide the markets. Nokia." Dutt notes that in the mature urban markets. In rural India -. The price points sometimes dictate the type of outlet. "People who have been selling consumer electronics. which means there is also money to be reinvested. Nokia has decided to supplement that with its own distribution efforts. a mom-and-pop grocery store moves beyond rice and lentils. and that we would individually address some of the other markets.which constitutes 70% of the population -affordability is an issue. which had already built an extensive network for its own products. Nokia's lead is clear. Today. and company headquarters at Helsinki has repeatedly said that more funds will be made available if required. all kinds of retail outlets get into selling mobile phones and airtime connections." he continues. every company claims to have the best talent in the business.) The Distribution Edge Investment in people is difficult to judge. So there is a different range for this constituency. STD booth owners and even cloth merchants get into this business. Investment in Manufacturing ." Nokia has begun to set up concept stores -seven so far -." says Dutt. Nokia started distributing its phones through a partnership with HCL (formerly Hindustan Computers Ltd." A stationery store stocks mobiles in a corner. But when it comes to distribution. customer expectations are more evolved. "And why do they feel the need to set up a different outlet? In this business. "We decided that we would address some markets jointly.

Marketing theory says a brand cannot be all things to all people. who has written several books on brand management. the battery manufacturer. But Nokia has a problem promoting other brands under its corporate umbrella. When the going is good -.499 ($37) at the lower end to Rs 45. Nokia is promoting platforms -. refused to lower prices when faced with a Chinese challenger in the dry cell market. Also. With this approach. Kapoor. promoting various models would mean watching money go down the drain in a couple of years. Nokia traditionally was in a whole range of businesses -. But Samsung's approach is more flexible. Nokia India director of operations in charge of the factory.music. Nokia India's director of marketing. the middle and the low end. with quality built around its brand. Nokia has several R&D centers and labs in India. the company ran into a problem." says Jagdeep Kapoor. Building the Brand Another crucial aspect of Nokia's investment strategy focused on building its brand. Samsung could switch its manufacturing lines to other products. whereas other companies are planning to make a whole range of consumer electronics products. the Chennai factory is devoted to handsets.as it is now -. "Unlike the FMCG (fast-moving consumer goods) market -. Samsung India Electronics.the company can do well. Here.where the product lifecycle is at least 10 and sometimes 50-100 years -." says Sachin Saxena. deputy managing director. More importantly. have also lined up similar investments or are in the process of setting up manufacturing units. In contrast.125) at the high end. one model can replace another while the branding remains the same. it established a $150 million handset manufacturing facility in Chennai in 2005. CEO Jorma Ollila decided to sell off everything else and concentrate on mobile telephony. says that Nokia has understood the Indian market by straddling all segments: the high.The other big investment area that has set Nokia apart from other telecom firms is manufacturing facilities and R&D. Nokia India's focus on mobile phones mirrors the priorities of its parent company. for instance. chairman and managing director of Samsika Marketing Consultants. these analysts note. Other companies. This is the reason that Hindustan Unilever." says Devinder Kishore. With such a lifecycle. Instead. The Nokia range available in India extends from Rs 1. But in 1993.models have a lifespan of 1524 months here. "Samsung India is looking at making its Chennai facility a global hub for its consumer electronics products. This is also why Eveready.000 ($1. The total production at this unit has crossed 25 million handsets. "Some 30% of our production is being exported to neighboring countries. such as Motorola. "The company has created a ladder for consumers to climb from the low end to the middle . refused to match Nirma. "Domestic manufacturing has worked to Nokia's advantage. which came out with a cheap detergent. If demand for mobile phones were to slump. "Nokia has done well to focus on the 'mother' brand rather than on 'another' brand. LG and Samsung. or is extended slightly with the E series and N series.from toilet paper to power." Industry analysts note that Nokia's strategy is potentially risky. but Nokia has had a clear head start." says Ravinder Zutshi.

the spiritual need has been met through (local) languages and people --whether they are 18 or 80 -. The 1100 incorporates a torch. "The rational need of quality versus price has been met across price segments with options." Kapoor views the Nokia brand in terms of his proprietary "REAPS" model. emotional. most of the activity is under wraps. For reasons of affordability. The Nokia 1100.I would encourage Nokia to take a more active role in nurturing content and application-creation communities that bring a range of services to all layers of the population. the brand matters quite a lot.end to the high end.S. Shivakumar offers some reasons to explain why he thinks the Indian market is different and needs out-of-the-box thinking. too. cufflinks or bag. in rural areas a phone may be shared by several people." he says. The physical need has been taken care of through size and comfort. The emotional need of being able to keep in touch with near and dear ones during times of joy and sorrow is being adequately fulfilled.the handsets. "Fundamental consumer differences exist between India and other countries. "It's in [Nokia's] own interest to do so. physical and spiritual -. "Nokia as a brand has been able to address all the five needs to various degrees at various stages. Manufactured at Chennai." ISB's Bapna offers a prescription for Nokia. Will it work? People initially doubted the torch phone. individual billings and more. again. however. In fact some of its models -. Similar plans are in the works at Nokia's three India R&D labs. an alarm clock and a radio. something that mobile phone users in affluent countries might find puzzling.being able to greet one another via SMS [text messages] during religious festivals. For obvious reasons. Consider this example: It would probably be inconceivable to mobile phone users in the U. "A cell phone is a huge style icon for the Indian masses: 62% of Indians buy a cell phone because of its looks. or Europe that their mobile phones should incorporate a flashlight. must-have brand. . it is also being exported. This is. the first made-for-India phone. finally. aspirational. but it became a popular product.are unique to India. The models being launched to cater to this need will have separate address books. has been a runaway success. willing to talk about the "shared" phone." Products for India The Nokia story in India has not been about grafting a model that has worked abroad.having a torch built into a mobile phone is a distinct and tangible benefit.rational." he says. which takes into account five needs -. But in India -. Nokia is. It's as huge a style statement as your watch. pen. which employ 700 people. That is something that is not true anywhere else in the world. and power cuts are commonplace even in the cities -." he says. not the strategies -. Hence.of the Indian consumer." says Shivakumar.where large numbers of the rural population do not have electricity. The aspirational need with the new models and features and the look-good approach has helped the brand become a sought-after. but the concept is simple. "Going forward with the premise that the mobile infrastructure will serve as India's information infrastructure -. And. or torch. while being fully assured that they will be with the mother brand Nokia. "Innovation is something which consumers reward in this market.given the lack of substitute physical and digital infrastructure -.

And whenever they change their phone. It is also the ultimate entertainment device. so it has a reasonably fair resale value. which means placing devices in consumers' hands. whenever they are launched. The day is not far when you will see movie clips and TV. so that's TV on the go. When somebody calls you. you're accessible. 60% are willing to pay a higher price. where cell phones could be used to provide maps of an area where the user is based. This is a passbook plus bank rolled into one. you don't need to take your car out. is also one of the most cost-effective in the world. success for Nokia vis-a-vis other brands can be attributed to its well-focused view on the Indian market. compared with about four cents in China. "It is also a driver of a lot of economic activity. consumers tend to change their phones faster than in most other places. Such services. The mobile communications sector has been one of the first to tap . Call rates in India are among the lowest anywhere -. LG. Truly. Crompton Greaves Ltd Sent: 06:25 AM Sun Aug."Second. However. it is a huge productivity vehicle.2008 . It can be your payment system. So far. Motorola. And it has a very broad market segment. a carpenter. you do not need to take your bike out.making a mobile phone call costs two cents in India. You have music on it now. Shivakumar offers examples of future services that might be delivered over cell phones. a security guard or a vault. most of the growth has been penetration-led. Rural India especially brings a lot of unexploited opportunities along with its own set of challenges.24.a plumber. in addition to its base of 170 million subscribers. could help Nokia keep going and growing in India. in terms of radio and stored music. "The cell phone could be the future bank -. Next. thanks to this. The market also has tremendous growth potential. You make a phone call and it's over. because with a cell phone you are in touch all the time. Nokia is a trusted brand in India. I think the whole service sector has gotten a huge lift." Another possible use is navigation. In India.. where consumers come back for more. you will find that lots of people have written their [mobile] phone numbers on the walls -.. This has killed the visiting card business…. Samsung. Etc. One of our products has that. If you go down the roads of Gurgaon and Delhi. Total Comments: 7 #1 Nokia Vs. You don't need 20 people.AU #2 Nokia's Success The Indian market is huge and diverse.a full branch of the bank. it is a safety product for women in small towns." An Expanding Market The Indian market for mobile phones. a tailor. The bulk of the growth going forward will be replacement-led. Here's what you think. an artisan. By: Abhijeet Sarkar.

the tie-up with Airtel. Bobsbanter. By: Vivek Pandey. Understanding the market pays. By: Mahadevan Balakrishnan. the payment service provider.IN #7 Latest Rs Symbol in Nokia Devices Is the latest Rs symbol available in Nokia devices? If not. By: Merrin Kurian. The main premise of Nokia is quality and durability. ISB Sent: 05:10 PM Mon Aug.2008 . the entertainer. the health service facilitator.31. The next one or two years will be very interesting as the Samsung offensive pans out and we see how Nokia is able to defend its market share. Franconnect Sent: 06:24 AM Mon Jun. and then taking two steps back on both these initiatives shows a lack of direction.(by keeping the basic data in the mobile and retrievable with a code by the doctors). By: Vishwa Pandey. There isn't a section of people that has not benefited by the arrival of mobile phones. Samsung.2009 .03. It can potentially become the Unique ID. Mobile phones have come a long way in connecting rural India where wired connections are still a dream.2009 . By: Arun Roy. the bank.com Sent: 05:55 AM Tue Mar.31.AU #4 Samsung Offensive I think the marketing plans of Nokia are a little confused. Indians trust Honda for two-wheelers and a lot of brands only compete through customer satisfaction.05. mobile phones have helped India in many ways.IN #6 Better Ways to Promote Nokia Phones The only way to succeed in the Indian market is to provide better customer service and make a brand image. Nokia's success can definitely be attributed to its well-thought-out strategy and innovative products specific to the Indian market. Here what really matters is reliability. Sent: 06:43 AM Sun Oct. and you need to show these things. Imagination and creativity are the limit. I am sure the Nokias of the world are listening and working on this.2009 .AU #5 Indian Mobile Market No doubt. Research Student Sent: 01:24 AM Thu Dec.14. Now is the time to take mobile phones to a different level. however.2010 . The decision to involve Shahrukh Khan for marketing.AU #3 Nokia's Success Nokia believes in innovation more than any other brand and hence it is always ahead of other brands. when will it be present? NOKIA’S MARKETING STRATEGIES IN INDIA by Nikunj Daga .this potential and cater to its needs. has been very aggressive and purposeful with its Aamir Khan ads. I would say that the mobile has been the invention of the century. The mother brand concept is albeit a little loose and vulnerable to niche attacks.

4INDEX _____________________________________________________________________________________ ____________ ACKNOWLEDGEMENT ABSTRACT 1. a high technology company in a developing country India. Nokia’s marketing strategies are examined through secondary resources.3 Interactive Network Approach 2. for all their assistance.4. Features such as user friendliness. LITERATURE REVIEW 2. The findings advised that consumers preferred Nokia over all other brands due to features of the phone. support and patience.1 Introduction and Objectives of Research 1. After studying the past of the company and the history of Indian mobile industry. Thank You!! Nikunj Daga 3ABSTRACT _____________________________________________________________________________________ ____________ This research studies the marketing strategies of Nokia. they were not the reasons for high market share of the company. Last but not the least. 2ACKNOWLEDGEMENT _____________________________________________________________________________________ ____________ Writing a dissertation is always the most challenging part of a student’s life. Thank you ma’am for your time.2 Outline of Chapters 2. To get a generalized view.2006-2007 A dissertation presented in part consideration for the degree of MA in Marketing No portion of the work referred to in the dissertation has been submitted in support of an application of another degree or qualification of this or any other university or other institution of learning.1 Uppsala Model 2. The study attempts to check the role of marketing activities in success of Nokia in India. First and foremost.3 Culture 2. Though the marketing strategies have been aggressive. long life etc were believed to be the reasons of success. My Sincere thanks to both academic and non-academic staff of the Nottingham University Business School. Dr Heidi Winklhofer for being a source of support and encouragement. This however would not have been possible without the encouragement and of a few people. interviews as a tool of qualitative research is adopted to create a deep understanding of the customers perceptions.4.4. mobile phone dealers are interviewed as they deal with many consumers and can give the opinion of the market as a whole. I would like to thank my professor. Here I take this opportunity to display my gratitude towards them.2 Country of Origin effect 2.2 Eclectic Paradigm and TCA 2. I would like to thank my parents for love and support bestowed on me. I would like to thank God for all. INTRODUCTION 1. rough and tough body. Thanks for help and love irrespective of the situations.4. I would also like to thank all my respondents for taking out time from their busy lives to help me with my research.1 Introduction 2. Thank you for your blessings. Here. Then to check the effect on the consumers.4 Business Strategy Approach . semi-structured interviews of a few mobile phone dealers in India are taken. guidance and persistent help. It was definitely the most important academic contribution by me. Also I would like to thank my friends for staying by me during the difficult parts of life.4 Internationalization and Globalization theories 2.

1 Introduction 5.2 Distribution 3.4 A Qualitative approach 4.5.4 SWOT Analysis 4.1 Mobile phone industry in India 3. MARKETING STRATEGY 5.5 Promotion .2. METHODOLOGY 4.5.1 Pricing 2.4 Place (Distribution) 5.3 Quantitative Research Methods 4.1 Introduction 4.2 About Nokia 3.3 Price 5.2 Qualitative Research Methods 4. INDUSTRIAL ANALYSIS 3.2 Product 3 4 7 7 8 10 10 11 14 18 19 20 21 21 23 23 26 30 30 34 38 40 42 42 45 47 47 48 49 51 52 52 52 5 5.5 Pricing and Distribution 2.6 Interviews 4.3 Nokia in India 3.7 Summary 5.5 Data Collection 4.

1 Introduction 6.1 Conclusion and Recommendations 7. They have led the market with 70% share for long time now. The benefits of the mobile phone are far too many. INTRODUCTION _____________________________________________________________________________________ ____________ 1. anytime contact . The objective was to study the main reasons of success of the market leader Nokia.4 Success of the Brand 6.S. displacing the U.2 Outline of the Chapters Here. relations. and behind only China” (Web 22). Chapter two – Literature Review.5 The 4 P’s 6. a very brief synopsis of the chapters that follow in the study is given. Olli-Pekka Kallasvuo. As noted by. summarizes all the past researches that have been conducted in the field of international marketing.6.1 Introduction and Objectives Day by day. impact of culture in international marketing. Ease of communication. 71.with friends. mobile phones are turning into more of necessity then a luxury. The main topics discussed here are Country of origin effect. secondary data in form of case studies and news articles have been used to gather the information about the marketing strategies that were applied by Nokia in India.2 Limitations of research and Suggestions REFERENCES APPENDICES 55 56 58 64 64 64 66 68 71 74 77 77 78 79 92 61. the president and chief executive of Finnish telecom giant Nokia “India is now Nokia's second-largest market.2 Background of Respondents 6.6 Future and Scope of improvement 7. CONCLUSION 7. the anywhere. and also to study the drawbacks of the company. Then dealers on Nokia in different parts of India were interviewed with semi-structured interviews to check the impact of these strategies. and analyzing the effects of these strategies on the sales of the company. For this purpose. What is interesting is that there is further scope of improvement in sales. will see more and more subscribers to this technology in the future. Internationalization and Globalization theories and Pricing and Distribution in international markets. ANALYSIS 6.3 Analysis and Discussion 6. colleagues and in theory at least the efficiency brought to busy lives (Web 21). It is a high technology market and India being developing country. to begin with this chapters deals with the analysis of mobile . This research aims at studying the strategies applied by Nokia in India. It was intended to study the areas where there was scope of improvement and note down some recommendations. Nokia’s growth in India has been substantial. Chapter three – Industry analysis.

“value for money”. What is noteworthy is Nokia forms a part of the upcoming electronics industry and has an important role to play in the developing markets of countries such as India. Here. As Johansson et. stressed on examining the multidimensional constructs of the country concept and how they impact consumer evaluations of product and design .2 Country of Origin (COO) Effect As Piron says. Literature review is of prime importance to the research. as well as that of the imagery elicited by a product’s COO. Qualitative research methods and semi structured interviews. It is the responsibility of the research student to find out what already exists in the area in which research is intended to be done before doing the research itself. Chapter five – Marketing strategy. Chapter seven – Conclusion. “COO effects can be summarized as the effects generated by a product’s perceived geographic origin on the part of the customer and how it affects the latter’s purchasing patterns”. Hence now we need to define the COO effect. the importance of various marketing mix variables (e. The literature review for this research will have its prime stress on theories of globalization.” Hart (1998) According to Hart. points out the marketing strategies applied by Nokia in India since the time of foundation in the country. and their own personal experiences of product attributes such as “technological superiority”. 92. As the 11research continued in the field. Chapter four – Methodology. The researcher will define framework of his work with the help of ideas and work of others. it discussed the drawbacks of the study and offers suggestions for further researches. “design”. COO has been defined as the country where the corporate headquarters of the company marketing the product or brand is situated. “Made in (name of country)” in 1980s. ‘A literature review summarizes the major findings of scholars and researchers who have conducted research in the area you are interested in investigating’. in developing a corporate imagery of a product. 8Chapter six – Analysis. brand name. Finally history of Nokia in India is conferred. Systematic research for COO effect began in 1965 with Schooler’s article “Product bias in central American common market”. as noted by Bilkey and Nes (1982). The data here is secondary and thus is collected with the help of case studies and news articles. price) is firmly established. Last but not the least. “product quality”. COO effect. effects of culture on marketing of a product internationally. Secondary data. Then. “status and esteem”. When did the company start. Here the attempt is to make a note of what has been written in context of international marketing strategies of brands. It was considered to communicated by the phrase. Quantitative research methods. Chao (1998). In words of Mort & Duncan (2000). comparison of Global and Glocal strategies. The basis of this generalization is products familiarity and background with the country. 2. LITERATURE REVIEW _____________________________________________________________________________________ ____________ 2. pricing and distribution strategies for international firms strategy for International brands. the interviews taken are scrutinized and conclusive lines are drawn. To achieve this. al. Here the strategies are discussed on the basis simple concept of 4 P’s. product appearance. Influence of COO on the product quality perception was indicated by both empirical observations and experiments in their research. concludes the study with fulfilling of the objective. deals with discussing and analyzing the research results to conclude the objectives of the study. It’s a tendency of consumers to generalize their attitudes and opinions across products from a given country. how changes occurred resulting Nokia venturing into mobile phone business.1 Introduction “Reviewing the literature on a topic can… provide an academically enriching experience but only if it is done properly. It further offer recommendations to the company for future planning.(1985) believed. 10Instead of being specific. review should be regarded as a process of fundamental to any worthwhile research or development work in any subject irrespective of discipline.g. 2006). talks about the methodology used in the research to collect data. First all the available methodologies are discussed and then the best suited one is selected.phone industry in India. and “credibility of country-oforigin” of a brand (Kinra. As Burger says. The important terms used in this chapter are Primary data. new perspective developed new concepts. the review here is of more of international marketing as whole instead of specifically on Nokia. history of Nokia is studies.

2000) (Sankar.3 Culture It is a universally accepted fact that. but major design and engineering tasks have also been outsourced to manufacture component parts. Consequently. the abstract sense of culture probably originated from Germany where the word Kultur was used to refer to civilization in the eighteenth century. “Common sense has it that the stronger a country’s national image. p. 1994) According to Usunier (2000). al. Christian Dior uses the French word.. in reality. This indicates that consumer evaluations are governed by influences other than the quality of the product (Peterson and Jolibert. Brand has been considered as a 12purely extrinsic variable in COO effects and consumer perceptions of origin have been manipulated almost through “made in” label information (Mohamad et. Specifically. believed that perceived origin associations are a powerful source of brand appeal. as in general Denmark’s image was considered very weak and one-sided. It has also been noted that the consumer tends to sometimes substitute other informational cues such as products brand name as a substitute to country information not considering where the product. and hence was not considered to use it as a prominent marketing tool for Danish products abroad. country-of-design. and parts-source country is basically the trends followed by global brands. This can be noted as marketers have focused on origin associations in many product categories in the advertisements of their products. This was of particular importance when outsourcing of different aspects the production process were to be considered. on the basis of a meta-analysis of COO research.” 2. they have also increasingly outsourced by either enlisting the services of professional talents in collaborating foreign partner firms or establishing design centers overseas. it is noticeable that a heightened consumer global awareness and sensitivity to the mounting prevalence of hybrid products in the marketplace may help to diminish this perception (Chao 1998). Chao’s research revealed that whereas country-of-assembly and country-of-parts only affect the product quality perception and country-of-design only affects the design quality perception. (Hofstede. is made. if country perceptions are favorable. and hence no one firm in a single country can claim to be the sole manufacturer of these products.(2005) noted. as Anime et. so that. It is also noted that product attributes such as product quality have favorable perception. that assumes that product can be associated with one country. country-of-design. Verlegh and Steenkamp (1999. Niss noticed that most of the industrial 13exporters represented in the survey choose either to play down their nationality or disguise themselves behind a local or global image. Most of the products available today are of hybrid variety. Here the stress is on work to be done and effort of others. 2006). To understand people it is very important to understand their back ground. In his research. Therefore. Porsche ads often show a German test track. in its advertising to reinforce its French origin association.qualities. Today most of the brands have production processes in developing countries as the labour is cheap in such countries. Multinational production operations got very complex due to these activities and it has also led to tension in domestic workplace. the pre-requisite for it to happen is that one knows both work to be done and the people through which it has to be done. and parts-source country are incorporated into the research design. Hence. al. present and future 14behavior can be predicted. country-of-assembly. country of origin of brand may not be the country of origin of the product. 1995) Noticeable increase has been seen in outsourcing as a result of firm’s continued pursue for global market expansion strategies. The examples for this are. [COO] effects are still poorly understood. However. the more useful is it likely to be as a marketing tool in that it may then be used more extensively in the export promotion of products originating from that country” (Niss. This did not come as a surprise. 521) conclude rather pessimistically that “[d]espite a large body of research. ‘Management is the art of getting things done through (other) people’. The result was noteworthy for the manufacturers and marketers of hybrid products. Here we can look at the example of a Sony walkman being perceived to be Japanese whereas it may have been assembled in Malaysia. as Kale (1991) . This does not remain limited to taking advantage of lower labor wage rates prevailing in many developing countries. COO image plays an important role in consumer’s evaluation of foreign products and brands. seems to be lost (Chao 1998). However. The reason for division of country of origin into country-ofassembly. 1996). the traditional notion in COO literature. this is to reinforce its German origin. Thakor and Lavack (2003). Their background can be determined by having knowledge of the culture they belong to. “Parfum”. According to research works. However.

stored. Culture consists of a series of response to recurring situations. the study of culture is considered very important for marketing a product internationally. significant cultural differences across countries are believed to be root of most problems in international marketing communications or promotions. Name given to assertive pole is ‘masculine’ and the modest and caring one is called ‘feminine’. interpretation of environmental cues. Even then they added one definition of their own. Though the women are not as caring and modest in masculine countries as they are in feminine but the degree of difference is less than men. These responses are a consequence of “collective mental programming” and all aspects of marketing transactions are affected by it. the more is inequality. unified in-groups. and general rules for selective attention. Long term versus Short term Orientation – Thrift and perseverance are the values of long term orientation. These groups continue protecting these people in exchange for unquestioning loyalty. It is expected that everyone will look after himself/herself and their immediate family. The more the power distance.” (Tse et al 1998) Hofstede (1994) identified five dimensions of national culture. retrieved and employed for decision making. This tells us how much the members of society feel either uncomfortable or comfortable in unstructured situations. fulfilling social obligations. Hence. This difference by noted to be high amongst the countries and hence is of extreme significance. Also that almost all purchases made were either to satisfy some physical need or to apply the actions that make up the life of a culture. attitude towards product classes. It has been noted that men’s value across countries are from very assertive and competitive as well as very different from women to modest and caring and very similar to women. This clearly indicates to the importance of culture while making decisions regarding marketing activities. It was originally called ‘Confucian . Whereas in the collectivist societies. As Kale (1991) noted. usually extended families (with uncles.noted. unknown. Masculinity versus Feminity – This is determined by the degree of distribution of roles between the sexes in the society. aunts and grandparents) from birth. Culture has a strong impact on people’s tastes. These situations are novel. 3. persistent preferences for specific social processes over others. Duesenberry in 1949 observed that all of the activities people engage in are 15culturally determined. In cultures that avoid uncertainty. He says. “Culture may be reflected in general tendencies of persistent preference for particular states of affairs over others. “A culture is a configuration of learned behaviors and results of behavior whose component parts are shared and transmitted by the members of a particular society”. defining culture concisely presents unanticipated difficulties as the literature contains a multitude of definitions. whereas values associated with short term orientation are respect for tradition. The individualist societies are the ones where ties between individuals are loose. Conceivably. people are integrated into strong. It is generally known that culture may provide detailed prescriptions (norms) for specific classes of situations while leaving other domains relatively unregulated. the most popular definition is the one suggested by Linton (1945). However it is defined from below (less powerful members) and not from above (more powerful members). And according to a large body of literature. Power Distance – This is defined by the degree to which the less powerful people of the organization or institution accept and expect the power to be distributed unequally. Also men’s values differ more among societies in comparison to women’s. and protecting one’s ‘face’. 162. namely Appendix 1). safety and security measures. there is an attempt to minimize the possibility of such situations by strict laws and rules. culture’s impact is the maximum in how the information is received. and responses. color preference. Kroeber and Kluckhohn (1952) gathered 164 definitions of culture. It is in the area of cross-cultural communications that most blunders in international marketing occur (Kale. surprising and different from usual. 1991). These people tend to be more emotional and motivated by inner nervous energy. 175. It is a sign that inequality in the society has been approved by the leaders as well as followers. It is exactly the opposite in uncertainty accepting countries. 1. Uncertainty Avoidance – It refers to society’s tolerance for uncertainty and ambiguity. 4. Individualism versus Collectivism – This is the degree to which individuals are integrated into groups. However. Operating marketing communications is one of the greatest challenges for an international marketer. This is important as power and inequality are particularly fundamental. He also notes that culture has a multifaceted and ubiquitous effect on marketing.

TCA approach is based on the assumption that the markets are competitive hence the performance of supplier is efficient. The model gained particular support in the early stages of international involvement. the dimension also applies to countries without a Confucian heritage. as it was believed that firms expand first 19into market which are psychically close. This means that slowly the cultural differences are reducing as less importance is being given to it. However in 1990. . which is an essential element of Western logic (Kapp. and on the incrementally increasing commitments to foreign markets. when market conditions are stable and homogeneous market knowledge can be gained in ways other than through experience. marketing standardized products in the same way everywhere. As cited by Hofstede (1994).2 The eclectic paradigm and transaction cost analysis: The concept of the eclectic paradigm of international production was first put forward by the Dunning in 1976 at a presentation to a Nobel Symposium in Stockholm on The International Allocation of Economic Activity (Dunning.1 The Uppsala Model of Internationalization: Johanson and Vahlne in 1977 developed a model of internationalization process of the firm on the basis of empirical research. for example Confucianism. through transaction cost analysis (TCA). and Hinduism) and Western thinking (dominant in the Judaeo-ChristianMuslim intellectual tradition) is that in the East. Tse et al (1998). the definitions of globalization in literature remains “chaotic”. Due to similarities. In fact in Jessop’s (1999) view. Johanson and Vahlne suggested three exceptions to their model as a response to increased market knowledge. TCA is considered particularly useful for evaluating the vertical integration decisions. As Whitelock (2002) documented. and attractions of a foreign market for the production”. each with its own disciplinary filter (Clark & Knowles. the term has become a ubiquitous and potent symbol of the age. When the range of suppliers is restricted. The focus of the model is particularly on the increasing involvement in the individual foreign country. 2. “Globalisation involves developing marketing strategies as though the world is a single entity. form and pattern of international production” and is founded on “the juxtaposition of ownership-specific advantages of firms contemplating foreign production… the propensity to internalize the crossborder markets for these. As Whitelock cited in Dunning (1998). noted that studies using Singaporean subjects found that traditional Chinese values were fading slowly because of Western influences. is not supported by most.dynamism’. Though all the theories. defined Globalization the best. however. integration and use of knowledge about foreign markets and operations. 1998). Here the concept of psychic difference was considered important. This was considered critical as it can be gained only through personal experience and not taught as other objective knowledge in international marketing. These exceptions were when firms have large resources they may be expected to make larger internationalization steps.4. however. However.4 Internationalisation and Globalisation theories Even though the concept of globalization has been around for long. there are four major theories of internationalization. the eclectic paradigm is set out to explain “the extent. mostly the comparison is of Eastern countries versus the Western countries. 1983). The model focused on the gradual acquisition. Nevertheless. 2. It is believed. 2003). to some extent depend on existence of market information to inform internationalization decisions. Vignali (2001). This thought. The entry decisions hence are made in rational way. there is little threat of replacement and the transaction costs are high. the basic difference between Eastern thinking (represented by. Buddhism. Since then. The internationalization theories concentrate on decision to internationalize or deciding on which market to enter and how to enter. that the reason for this probably is that globalization is studied 18independently from a number of disciplinary perspectives.4. a qualification does not exclude its opposite. and beyond. it was only in early 1980’s that it became a topic of serious discussion among academics. the exact meaning and significance of globalization has been and remains an intensely debatable topic across the academic community. The Uppsala Model of internationalization The eclectic paradigm and transaction cost analysis The interactive network approach of international marketing and purchasing group The business strategy approach 2. Different approaches have been taken by different authors to solve this problem of internationalization. namely. and in to more distant markets as they gain more experiential knowledge. when the firm has considerable experience from markets with similar conditions it may be possible to generalize this experience to the specific market.

the atmosphere surrounding the interaction. The firm decides the entry method for specific market abroad. the emphasis had been laid on ‘how pricing decisions ought to be made’ (Cavusgil 1988. market-related complexities that shape firm operations and the capabilities of the firm to respond . among others. According to Johanson and Vahlne (1990). The researchers define global brand as “a brand that is marketed under the same name in multiple countries with similar and centrally coordinated marketing strategies.20These benefits of integration should however be compared to the costs of integration (i. to the top-down hegemony implicit in term ‘globalization’” (Maynard. “Mr. The term ‘glocalization’ connotes a successive development. Also number of competitors is considered important factor (Whitelock. a process that begins with high regard 22for the local. financial and cultural flows. and the environment within which the interaction takes place (Whitelock.5. too specific. the major drawback amongst most of them had been that they have been less generalized. firm’s resources and managerial philosophy are the basis of deciding expansion strategies which may in turn result in foreign expansion. the chief limitation “is the one-sided focus upon the activities of manufacturer together with the intermediary in the flow of goods and services to the customer”. (2006). Johansson and Ronkainen (2004) assert that global brands benefit from the scale and scope of having presence in multiple markets. the literary topic of international pricing had not been completely ignored by the scholars.4. until their research. as well as a challenge.4. Ried (1983) believed that nature of market opportunity. Whilst choice of organizational structure will depend on these market characteristics in addition to company specific factors as international trading history. which appear to be important in industrial systems. However the studies published till then stressed chiefly on the normative dimension of international pricing. suggests some sort of accommodation. International pricing decisions are inclined to be a function of the relationship between the external. In words of Turnbull (1986). Globalization challenges notions of cultural imperialism because the term suggests a negotiation process that appears to start from inside out. For example. These are known as the Glocal Strategies..e.e cost of resource commitment). 2002). and the control of the pricing mechanism under different environmental conditions. The four variable of integration defined are: the element and process of interaction. The interpretation of these variables helps the firm decide on the market to enter and which customers to deliver. there is a need to assess its own position in relation to the customers and also the environment of market which is affected by the other actors or competitors. 1996. psychic distance and accessibility and informal barriers. Hence.4 The business strategy approach: As Whitelock (2002) cited in Welford and Prescott (1994) “The business strategy approach is based on the idea of pragmatism”.3 The interactive network approach of international marketing and purchasing group: In 1986. Johanson and Mattsson noticed that both Uppsala model and eclectic paradigm concentrate on firm or individual perspective of market entry. eclectic paradigm has high descriptive power for firms having experience from many regions of the world. i. the coined word ‘Glocalization’ at the very least. Whereas. size export orientation and commitment. Hence. “Whereas ‘Globalization’ monolithic sameness as a result of convergent worldwide economic. They say that though a few of these studies have been based empirical evidence. Such strategies are implemented by man Multinationals. the development of gray markets. Although global brands play a dominant role in today’s world. They believed that both models ignore the characteristics of the firm and market. the advantages of the local brands are still stronger and this is reviewed in the following part. The factors which need to be 21assessed in this approach for market selection are market attractiveness.” However there are some selected global brands that don’t have the same name but share some marketing program elements. Walters 1989. characteristics of parties involved.1 Pricing According to Solberg et. 2. 2003). Global V Glocal Levitt (1983) defines global brands as brands that use the same marketing strategy and mix in all target markets. focusing on a specific country’s exporter or focused on issues such as the impact of technology on international pricing. Clean” also sells under the “Mr. Either too broad and examined only general nature of international pricing. 2. definitions of industrialization system stress on developing and maintaining lasting relationships. 2002).5 Pricing and Distribution 2. al. Proper” and “Maestro Limpio” names. pricing in emerging markets. 2. Weekly 1992).

Arnold (2000) noted that it was not the case usually. Solberg’s (1997) framework includes two dimensions: industry globality and the degree of the firm’s preparedness for internationalization. also categorized firms into four categories on the basis of low and high preparedness for internationalization on the Y axis and Multilocal and Global markets in which they operate in X axis. the degree of globality along this dimension is considered to vary between two extremes. The effectiveness of strategic pricing by the exporter is dependent on his control over the decision making and the actual outcome of pricing activities in its markets. 1. will be willing to invest in long-term market development. prices vary as a function of only tariffs. it has to rely on distribution channel for such information. managers. 6. one should the market led approach rather than distributor led. Don't let them select you – Objective market assessment should lead to strategic decision of entry into a new international market. The categories were: Prototype 1: The Local Price Follower Firm Prototype 2: The Global Price Follower Firm 25aggressive business development in these ‘less developed’ markets. To work together it is important to be unidirectional and go hand in hand. as the multinational are least certain about their prospects in new countries. Thus. As the pattern recurs with entries into subsequent markets. this approach. Thus. For this purpose. dubbed the "beachhead strategy. not temporary market-entry vehicles – There is a need to structure the relationships in such a way that the distributors become marketing partners. (2006). determines its ability to take advantage of its competitive advantages. In Solberg’s framework. the most eager potential distributors may be precisely the wrong people to partner with. Arnold (2000) discusses what goes wrong and why. 5. multinationals must commit adequate corporate resources. It holds particular importance at the time of market entry. Al. expenditures that are outside the control of the exporter for the most part. As Arnold (2000) noted. According to him. 4. One of the reasons being ‘dynamics that govern international marketing activities are likely to accelerate rather than slow down as a function 23As noted by Solberg et. From the start. The literature stresses two facets that need to be considered in this context: the issue of centralized versus decentralized pricing and the issue of control within the distribution channel. Solberg et. Al. He defines “industry globality” as a condition in which the actions of the players that operate in world markets are affected by one another to the extent that a relatively stable price level is created across the markets in which they operate. The importance of international pricing is going to improve. However multinationals should pilot the planning sessions about the decision making. most multinationals stumble onto a stepwise strategy for penetrating markets in emerging countries through a series of unplanned actions to reinvigorate sales. Since the corporation is new to the country. major competitors that “rule” their categories in world markets within their product category. Support market entry by committing money. Also in a few countries they may be the only source of such information. large. a monopoly at one end and atomistic competition at the other (Appendix 2)." becomes official policy in many organizations. Hence he laid seven rules of international distribution. His studies revealed that companies moved into new market as reaction to proposals from prospective distributors. 7. 2. and proven marketing ideas – It is very important for the multinational to maintain strategic control. Make sure distributors provide you with detailed market and financial performance data – The quality of information that the multinational has about the market. Build links among national distributors at the earliest opportunity – The key objective for the . a global industry is epitomized by a few. rather than those with a few obvious customer contacts – Multinational’s long term goals should be kept in mind and given prime importance while choosing the distributor and deicing the terms of relationship. However. In fact. transport.effectively to these contingencies. (2006). Treat the local distributors as long-term partners. This helps the multinational to exploit the full potential of a global marketing network. maintain control over marketing strategy – Distributors should be allowed to adapt a multinational's strategy to local conditions. Thus. "The most obvious distributor is not necessarily the best partner for the long term". and distribution costs. Hence 273. So there is a need to find distributors. Select distributors. Look for distributors capable of developing markets.

However it is important to create links 28among its national distributors as soon as possible.multinational establish a customer base in the new country. The first call was made by Nokia 2110 on its own network. This also led to ownership of more than one mobile phone in a family. They are the main service providers in India and hold almost 75% of the market as notes above. Then. By 2002. Out of these. It also helped the private operators to break even faster by allowing them to migrate from fixed license to one-time entry fee with revenue sharing. However. high licensing fees and absence of a proper telecom regulatory body lead to exit of these private players in the next few years. The mobile service providers were allowed to share their infrastructures with other operators. This will lead to transfer of ideas and hence provide a better and consistent performance in the implementation of international strategies. GSM-based subscribers number 75 million while CDMA-based subscribers total around 25 million” (Dutta. was very slow. making the country the fifth largest in the world in number of subscribers. Being middle class of a developing country. The other successful private name in CDMA was that of Tata Indicomm. 43 million were GSM and rest 12 million were CDMA. The Indian government was not supportive to the new companies of the industry. The industry got a new life in 1999. namely. by 2001. Lowering mobile tariffs and low entry barriers helped the growth of GSM mobile services. GSM was the service introduced in India in 1995 and had key features of nationwide roaming as well as international roaming for US and Europe for both pre-paid and post-paid subscribers. INDUSTRY ANALYSIS _____________________________________________________________________________________ ____________ 3. As a result of unfriendly telecom policies. however. According to IDC (International Data Corporation). the industry’s growth got fueled as incoming calls on mobile phones were made free. WLL consisted of mobile as well as fixed. there was steady increase in the demand for mobile services. In 2002. According to a report in PTI. 31they are cost conscious. when the Government of India announced a new telecom policy. The plan was to provide telephones on demand by 2002. Reliance infocomm became the first private operator to offer CDMA services in India. CDMA was also known as Wireless Local Loop (WLL) in India. The middle class population in India is about 350 million. The private companies concentrated on providing basic telephonic services to consumers. they were not successful in capturing the market. 2006). This could be done by connecting the phone to PC with the data port. However. This lead to a dramatic rise in prepaid (26. 293. In India there were two major types of mobile service operators. A major factor was supply on Samsung and LG handsets with subscription. Global Systems for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). The sudden increase in growth on mobile phone subscriber can be seen in the following table: Growth of mobile phone subscribers No of mobile subscribers Time taken 0 – 1 Million 1995-1998 1 – 5 Million 1998-2001 5 – 10 Million 2001-2002 By May 2005. the number was expected to reach 148 million by 2009.7%) as compared to postpaid (6%) in the fiscal year 2003-04. as compared to other consumer durables such as television.1 Mobile phone industry in India Mobile telephony was introduced in India in 1995. and with the popularity of mobile phones the customers started demanding better services and lower prices. This led to new innovations and come out with better products and 30services. the industry was on a high. In June 2006. These were also known as FWT/FWP (Fixed Wireless Telephone/ Phone). The start to this industry in India. And CDMA became an instant success. . WLL mobiles were to give competition to GSM phones. The fixed phone handsets were to replace fixed landlines with functionality within the city limits. the number of cellular phone subscribers in India had risen to 55 million. The major benefit that they provided was connectivity to internet (at 114kbps) as a bundled package. A major point of the policy was to allow unrestricted private entry into almost all mobile service sectors. these services were provided by government organizations BSNL (Bharat Sanchar Nigam Limited) and MTNL (Mahanagar Sanchar Nigam Limited). “India’s mobile phone subscriber base has crossed the 100 million mark. To begin with.

The arrows were later dropped. 1912) was producing telephone and power cables. Gradually the ownership of the Rubber Works and the Cable Works companies consolidated. In southern Finland.9 per hundred). 35The oldest was Nokia Ab (est. 2005). 2002/04) The Finnish Cable Works had a history of manufacturing cables for telegraph and telephone networks and in the 1960 they established the Cable Works Electronics department. In the early 1900s. Hence in 1920. The wood pulp mill used hydroelectricity (generated from the river Emäkoski). Airtel acquired Hexacom. engineer Fredrik Idestam established a wood-pulp mill in southern Finland and started manufacturing paper. In addition to footwear (galoshes) and tyres. This company was named Nokia. 1898) was manufacturing galoshes and other rubber products. Firstly. The current Nokia logo dates from 1992. Aircel Digilink. This figure was reached after a cut down of $180million was made (Web7).2 About Nokia In 1865. This would later be reversed as the company started shifting its focus onto international markets (Web 2). Gustaf Fogelholm. UK giant Vodafone took over Hutch (Web 6). This attracted the Finnish Rubber Works to establish a factory in Nokia. in 2004. the other industries also achieved a good position on the Finnish market (Web 2). son in law of Fredrik Idestam. there were 18 operators on GSM and to withstand competition from CDMA. Hutch (now Vodafone) had then acquired Sterling Cellular. est. Nokia soon became successful.There were many small GSM providers. In 1895. Suomen Gummitehdas Oy (Finnish Rubber Works. Hutchinson Essar. Hutchinson and Max Telecom. UK's Vodafone has paid a discounted price of $10. Finnish cable works joined them (Indu P. Russia (42 per hundred). The period between and immediately after the two World Wars was dedicated to developing the businesses. which was very low as compared to China (25. and monitors licensees • Telecom Dispute Settlement Appellate Tribunal (TDSAT): Resolves disputes brought by licensees or consumers • Wireless Planning and Coordination Wing (WPC): Manages spectrum allocation In one of Asia's top three deals for 2007. All countries had new products developing in all industries. However. the number of GSM operators reduced to 8 by 2004. 2005). Small community grew up around the Nokia factory as it attracted a large workforce. the mobile phones sales growth was amongst fastest in world by mid 2005 with additional 1. 2004): • Department of Telecommunications (DoT): Sets policy and controls licenses for both fixed and wireless telephone operators • Telecom Regulatory Authority of India (TRAI): Regulates policies of DoT. the . industrial parts and raincoats.5 per hundred) and other developing countries (Indu. As a result. The following are the logos of three original companies that formed Nokia Corporation (Web 1). The outside world found it feasible to have Finnish products as alternatives for other industries as a result of the use of modern production methods. There were a few points noted in 2004 that showed great potential in Indian mobile phone market. Finnish Rubber Works became a part of the company. the mobile subscribers in India were 5 per hundred. Brazil (37. took over the reins of the company. After World War II the Finnish Rubber Works bought the majority of the Finnish Cable Works shares. this was due to the European industrialization and the growing consumption of paper and cardboard. These changes in world economy led the company to concentrate on domestic 34markets for its different businesses. P. the bigger operators started acquiring small operators which could not afford heavy investment needed in the industry. 1865) in the forest industry and power production.7 million subscribers every month. Also. Idea acquired Escotel. It was later in 1967 that all three companies were merged to form the Nokia Group. In addition to the traditional forestry industry.9 billion in cash for acuqiring the 52% stake held by Hutchison Telecom International (HTIL) in Indian mobile firm Hutch-Essar to complete a deal. 333. and Suomen Kaapelitebdas Oy (Finnish Cable Works. the company later went on to manufacture rubber bands. and later on in 1922. Nokia started exporting products to Russia and then to the UK and France (Web 1). 32The four main regulators of wireless include (Strother. a community called Nokia still exists on the riverbank of Emäkoski. the companies grew in spite of external threats.. Increasing need for power transmission and telegraph and telephone networks resulted in rapid growth of the Finnish Cable Works company. (Martti Häikiö. est. In 2001.

applications and sales channels for the market. They developed solutions for e-mail. By late 1980’s. Siemens. Nokia's operations rapidly expanded to new business sectors and products through corporate acquisitions and became the European market leader in several fields. The strategy was to expand rapidly on all fronts. the CEO in 1994. This standard is known as GSM (Global System for Mobile Communications). This strategy was formulated by Jorma Ollila. In 1987.000 units. It was in 1970s that Nokia started taking an active interest in the power and electronic business. and hence were aware conditions prevailing in Indian market. 3. Nevertheless. Consumers too were not interested in purchasing mobile phones as call rates were as high as Rs16 per minute ($0. Sony and Ericsson already had there presence in India in consumer durables. overcoming all odds. telecommunications networks. internet. Nokia reorganized itself into four business groups – mobile phones. virtual private networks and firewalls for the businesses. Import of mobile phones was not easy and the tariff applied on them was as high as 27%. Nokia 1011 – a precursor for all Nokia’s current GSM phones was introduced. the majority of telephone exchanges were electro-mechanical analog switches. especially like the non-core IT and focus on two core business – mobile phones and telecommunications. such as rubber industry and TV set manufacture. the implementation of the new strategy helped the company's finances reach a sound standing. Nokia strived to radically cut down the number of different businesses it had. At the time of formation of Nokia Group in 1967. By 2004.40). the existence here is from 1994. In 1992. As noted above. and Nokia managed to sell 20 million. The enterprise group was for helping businesses ensure security and reliability of their network. communication and network platforms were provided to the operators and service providers by the network group (Indu P. The company had incredible success in form of 2100 series phone. However. They developed new models as well as system. Nokia India came out as the market leader with 56% share in 2003-04 and still continues to lead with 80% in 2007 (Indu P.3 Nokia in India Nokia has been the pioneer of mobile telephony in India. In January 2004. 38Another problem faced by Nokia was highly competitive environment in the industry. Nokia maintained an aggressive strategy. a group of businessmen tried to offer Nokia to the Swedish telecom company Ericsson during the recession in 1990´s (Web 1). . Nokia DX 200. The global demand for mobile phones increased in early 2000s and Nokia maintained its leadership 37in the market. GSM/EDGE. The multimedia group provided advanced mobile devices and solutions to the consumers. Network infrastructure. The mobile phone group developed mobile phones and devices on technologies such as WCDMA. 2005). the seeds of Nokia's global success in telecommunications were planted. was the first company receive GSM network from Nokia in 1991. multimedia.. Although the conditions in Indian telecom industry were not very conducive. electronics and engineering sectors. probably. This task proved to be challenging. Electronics generated three percent of the Group's net sales and provided work for 460 people. However. it launched Mobira Cityman. CDMA and TDMA. as the 90s approached. However. consumer electronics became Nokia’s major business. At this time. In 1981. created the basis for a successful conquer of the world markets and rooted more efficient operational methods in the company. Powerful global players like Motorola. Nokia made Nordic Mobile Telephony (NMT) mobile phone standard. A Finnish company. the first ever GSM call in India was made on a Nokia 2110 on its own network. Nokia was a world leader in digital technologies such as mobile phones. there have been rumors that. wireless data solutions and multimedia terminals. This was the world’s first multinational cellular network. And by August 1997 Nokia had supplied GSM systems to 59 operators in 31 countries. At the end of the 1980s a common standard for digital mobile telephony was developed. These were successful. the first NMT phone. About the same time. The goal for 1994 was set to sell 500. 2005) (Web 4).. Radkilinia. Nokia began developing the digital switch (Nokia DX 200). In this way.Cable Work's Electronics department started to conduct research into semiconductor technology in the 1960´s. 36During the 1980s. and in the same year Nokia made agreements to supply GSM networks to nine European countries. enterprise solution and networks. the Finnish telecommunications authorities were able to set up a mobile network which connected the car phones to public network with the help of a new legislation (Web 1). which was equipped with high-level computer language and Intel microprocessors gradually evolved into the multifaceted platform that is still the basis for Nokia's network infrastructure today.

its increase role in Symbian is giving Nokia a bad image. . . The data collection methods used in this research involves the search for both primary and secondary data. Data can be collected in two forms. is still dominated by LG. .Increase their presence in the CDMA market. Nokia has retained the top spot for quite some time in India. Started a manufacturing in Sriperumbudur. (Web 3 and Web 23). when it launched its first model. This chapter is all about discussing the different techniques and method of data collection and selection of the most suitable method for the particular study.” (Web 9). and many other operators globally are selling their own brand of phones (Web 9) 414. Nokia announced to further invest US$ 75 million in year 2008.Size should enable Nokia to amortize Research and Development costs and to get cost advantages . 393. LG.Leverage its infrastructure business to get preference and a stronger position with carriers Threats .Asia is the fastest growing market for Nokia.Brand position: second most popular brand in India Weaknesses . “Finnish handset major Nokia has retained the top slot in Indian GSM market with 79 per cent share in 2006”(Web 5) “Nokia came from behind to stun the likes of Ericsson and Motorola and corner nearly 80% of the GSM handset market in 2007”(Web 4) Nokia in 2006.1 Introduction Selection of type of method for data collection is one of the most critical parts of any research. They respect any provider who gives the best combination of both. including research development.Huge market share . primary and secondary data. much like Microsoft in the PC industry. Primary data are originated . Nokia was reluctant to produce a clamshell until this year. Motorola nad Sony Ericsson have captured huge market shares. Chennai. This is done through evaluation of the strengths and weaknesses of each method. . namely. Operators want to lessen their dependency on handset vendors and the dominance of Nokia.Asian OEMs who are entering the market very aggressively (TCL. also concentrate on 3G and Edge 40. The current investment on this is about US$ 210 million in the plant since January 2006. including India and other countries.New growth markets where cell phone adoption still has room to go.102(f)] is “Research means a systematic investigation. NEC and others. . Competitors such as Samsung.4 SWOT ANALYSIS (Web 8) Strengths -Is a dominant player in the smart phone market via its majority ownership of Symbian and its proprietary Series 60 user interface which are projected to represent majority of the 100M smart phones sold in the next 4 years. METHODOLOGY _____________________________________________________________________________________ ____________ 4.Slow to adopt new ways of thinking: a good example is clamshell phones which are preferred by many customers. Opportunities . His plant as on December 2007 employed approximately 6000 people. The federal definition of research by Messiah College as defined in the federal policy [45CFR46. testing.Delayed entry in 3G sector creates a risk to be displaced by leaders like Motorola. Orange. nGo Bird) .Being the market leader. and evaluation. Nokia's key strategy has always been to lead the market on the basis of technology as it has always held. the recent figures are.The Ngage is considered a flop. designed to develop or contribute to generalizable knowledge. O2. The difference it holds is the capability to be more sensitive to the people with lower purchasing power which hold the major share of these growing and developing countries market.ODMs (HTC and others) enabling carriers to leverage their customer power bypassing the handset vendor. Information gathered by observing phenomena or surveying respondents (Web 10). The consumer is going for high technology at reasonable prices.

p. since. It is believed that qualitative research originated in recent times. involved collection and analysis of primary data in foundation with the secondary data. in some way or the other both form of data collection are used. it is the most significant. Usually journals. Thus. It can be noted from above quote. 2003). the secondary data have been collected using marketing journals and other existing reports that were based on the topic. Hamilton (1994). Proceed to primary data only when the secondary data sources have been exhausted or yield managerial returns.456). depth interviews have been used as a means for obtaining primary data.by the researcher for the specific purpose of addressing the problem at hand.. Secondary data are data that are collected for some purpose other than the problem at hand. The simplest definition is to say it involves methods of data collection and analysis that are non-quantitative (Lofland & Lofland 1984). 43without an overarching definition. “The situation today is less quantitative versus qualitative and more how research practices lie somewhere in continuum between the two (eg Newman & Benz. 2000). Here. while qualitative enquiry examines data which are narrative (Easterby-Smith et al. the study was conducted to understand the perspective of consumers and their brand image. 1991). and statistics by public and private authorities are used collect Secondary data. Secondary data in this particular case helped the researcher to comprehend marketing strategies implemented by Nokia in India. which assumes that realities are value laden and contain contradictions.structured interview process. Depth interviews. “Examination of available secondary data is a prerequisite to the collection of primary data. Whereas. Positivism and postpositivism are based on realism and involves comparisons of results and findings with preliminary propositions. critical postmodernism is a combination of critical theory and postmodern thought. As noted by Creswell (2003). As a general rule stated by Malhotra (2005). observations and surveys are the major methods of gathering primary data. There was a need to get the researched open up so that it can give more information. They could only talk about the characteristics of qualitative research. . because there were such a variety of methods that might claim this title and little consensus over a core meaning. Information compiled inside or outside the organization for some purpose other than the current investigation (Web 10). “The relationship between theory and methodology is important. As it was rightly said by Bate (1997) that qualitative research is about digging into the everyday life of people. India on “Nokia’s Strategy in India”. Researchers need to use methodologies that are consistent with the assumptions and aims of the theoretical view being expressed” (From the Editors. Even before a research is started. This traditional view is that quantitative enquiry examines data which are numbers.2 Qualitative Research “any kind of research that produces findings not arrived at by means of statistical procedures or other means of quantification” (Golafshani. 42According to Malhotra (2005). Inherent in this dichotomy is the view that quantitative enquiry generally adopts a deductive process. Specifically a case study from ICFAI. The Quantitative research methods and the Qualitative research methods are two options of approaches available for the researcher. as noted by Milliken (2001) noted. According to Cassel and Symon (2005). it is actually very problematic. how important it is to choose proper methodology of collecting the data. in order to explore the selected topic of the study. In most researches. the researcher needs to evaluate and select the type of method they will to be used for collecting the data for the research. Here. Gephart(2004).” The study hence. there may be a need to modify the questions to get the right data. Also. ‘Qualitative methods’ is what people recognize and which is widely used. However. qualitative research is selected as the means for research. In this particular study. qualitative approach was adopted with an in-depth and semi. Also that obtaining primary data can be expensive and time consuming Malhotra (2005). believed that the real roots of qualitative research could be traced back to an eighteenth – century disruption that occurred in the fortunes of quantitative research. while qualitative enquiry generally adopts an inductive process (Hyde. It has also been noted that qualitative research gives more quality in data and also results in very specific and in-depth information. Interpretive research aims at understanding the actual production of meanings and concepts used by social actors in real settings. existing reports. more stress was laid on qualitative research rather than quantitative. focus groups. In this research. Since primary data is collected with specific purpose. Start with secondary data. 444. Gephart has defined three methodologies of qualitative research. 1998)”.

4. reporting detailed views of informants. in the case of the height of a person. The qualitative research interviews differ in practical features such as length. This study uses the mode of telephonic interviews as a qualitative research tool. news articles and personal knowledge of the marketing strategies. it can also be carried out via internet or on the telephone (Cassell and Symon. the knowledge obtained through detailed interviewing process with focus on compatibility or a qualitative analysis is different a quantitative analysis. 2003. it is amazing how some may react in a positive way. Qualitative research is unstructured. However when the sample is large or more generalized views are needed than quantitative research method is a better option.5 Data Collection Since the objective of this research is to measure degree of success of marketing strategies implemented by Nokia. Hence. observational. “Quantitative data is data expressing a certain quantity. a term referring to the essence or ambience of something (Berg 1989). Another problem being one can not check the genuineness of data very easily.3 Quantitative Research Quantitative research methods are the orthodox way of researching. 464. style of questioning. As Sankar (2006) noted. historical. there are measurement units associated with the data. Kaplan (1964) suggested that there is only one thing that distinguishes human from natural world. e. word association (asking respondents to indicate their first responses to stimulus words). it is important to understand the emotion associated 47with the answer given by him. Since the study kind of tests out the effect of marketing activities by checking the brand loyalty of the interviewee. However. amount or range. In very technical terms. interact. 1992. and cannot be measured in quantitative terms.4 A Qualitative Approach Quantitative research gives measurable quantities as the outcome. . Quantitative research provides a more general outcome rather than more specific.g. say “enjoying the rewards of both numbers and words” i. and visual texts that describe routine and problematic moments and meaning in individuals' lives. and indepth interviews (one-on-one interviews that probe the respondents’ thoughts in detail) (Malhotra. looks. 2004). case study. Also there is no personal touch to encourage the interviewee to give concentrate and give answer. interactional. Researchers have argued that that unlike quantitative research where the tool is the most important in qualitative research the researcher himself poses as a tool and is the most important part of the research. a flexible qualitative approach is followed. the best available sources are case studies. here the human nature is under consideration. As cited by Golafshani N. Quantitative Research methods are important and the traditional form of data collection and analysis. meters. For this purpose.“A qualitative study is defined as an inquiry process of understanding a social or human problem. software or any other feature of the mobile phone. Though most of them are face-to-face. We need to develop some understanding of this them. This ‘interactive nature’ of qualitative research makes it possible to measure the reactions of a great many people to a limited set of questions thus facilitating comparison and statistical aggregation of data. 2005).e. based on building a complex. So it is very important role of the researcher in qualitative research. based on small samples. Thus there is a need to have a deeper understanding than an ordinary survey. These include. The objective is to comprehend and assess perceptions of different consumers towards the mobile phone. and conducted in a natural setting” (Cresswell. It makes sense to set boundary limits to such data. introspective. and participant numbers (group or individual). People have different perspective for different concepts. A variety of empirical material is needed to be collected and studied for the 45purpose of qualitative research. cost. personal experience. Human behavior is strange. 4. it is very important to first identify the marketing strategies applied by Nokia in India. Another way of defining it is to say it focuses on "quality". exploratory in nature. Usually. In words of Hancock (2002). holistic picture. 1994). the human behavior is very complicated and unique to every individual. and it is also meaningful to apply arithmetic operations to the data” (UNECE). Glesne & Peshkin. and may utilize popular qualitative techniques such as focus groups (group interviews). life story interview. some in negative way and some may have no reaction at all to it. After getting a complete picture of the existing scenario. formed with words. More stress may be given to feature. Since the answer is made exactly to what the question is. there is no scope extra input from the interviewee. Others would say it involves a subjective methodology and your self as the research instrument (Adler & Adler 1987). it is our ability to talk.

Since they deal with buyers and prospective buyers on a regular basis. ‘Any other reason you think…?’ and many more can help the interviewer get more information from the interviewee. ‘What reason do you think for this?’. He can also judge by the expressions of the interviewee. Case studies and news articles were used for secondary data. how and why can be answered using interviews (Boyce et. one of the interviews was considered as not useful.. For the purpose of this dissertation 8 semi structured interviews of Nokia’s dealers were taken. After discussing the pros and cons of each method. In such a case the interviewer needs to develop a sense of confidence with the interviewee to make him comfortable. in-depth interviews were carried out as a qualitative research tool. telephonic interviews did help the researcher to converse with the respondents who are far beyond 50the reach. 2006). where in-depth. As a result. The personal effect of interview was used to develop rapport with the interviewee and modify the questions according to the need. Question such as ‘could you throw more light on that?’. Also due to some distant interviewees telephonic interviews were used. In-depth interviews are taken with a small number of people on a particular topic. Actually this can be done in the beginning of the interview so that rapport develops and interviewee answers all question with interest. The technique of stimulating respondents to answer more fully and relevantly is termed probing (Cooper and Schindler. Hence. they can give an overview of the market. 484. A major benefit that interviewing gives is that the interviewer can modify the questions according to the need. the right method for this research. The questions of what. According to King (2004). al.there was a need to get the public interpretation of the brand and its value. All the interviewees were explained why the interview was being conducted and what the main theme of the interview was. and the interviewer responds using prompts. Hence for a new research a primary research was conducted.e. as usually people do not like to spend their time and try to finish of the process as soon as possible. behaviors and perceptions through intense interviews. 1983) As King (2004) says.’ It is therefore important for the researcher to look at the problem from the perspective of the interviewee. exploratory. Three out of these were taken on telephone due to large distances. 2000). A secondary research was also carried out to understand the marketing activities and future in general. and may need to understand the question which interviewee is not comfortable answering in. Drever (1995) defines semi-structured interviews as ‘the interviewer sets up a general structure by deciding in advance what ground is to be covered and what questions are to be asked. this can lead to improper answers filled in a hurry rather than with concentration. The person interviewed can answer at some length in his or her own words. due to uninterested attitude of the interviewee and extremely short answers. The interviews were open-ended and gave interviewee the option to answer the way they wanted. This leaves the detailed structure to be worked out during the interview. The researcher’s job here is to find out detailed information about the interviewee’s 49actions. Here. 4.7 Summary This chapter was used to explain the methods available for conducting the study. ‘The interview remains the most common method of data collection in qualitative research. the dealers of mobile phones were interviewed. The study also involves semi-structured interview as qualitative research tool.6 Interviews “A qualitative research interview is an interview whose purpose is to gather descriptions of the lifeworld of the interviewee with respect to interpretation of the meaning of the described phenomena” (Kvale. . semi structured or unstructured. semi-structured interviews were adopted as a source of primary data. In case of survey via form. there is a need to not completely structure the interview. qualitative analysis was selected. In the research. Also it was thought that their personal choice will be considered for the same. Despite being expensive. This is another benefit of conducting an interview. For the purpose of getting more generalized view. probes. some interviews were longer than the other was. employed in various forms by every main theoretical and methodological approach within qualitative applied psychology. The number of interviews was restricted to such a small number as it was felt that the information was more or less repetitive and no new information was there for taking. qualitative research interviews a variously referred to as depth. and follow-up questions to get the interviewee to clarify or expand on the answers’. i.

in India people don’t know English in villages. Knowing that Indian market is very different from other markets it was already operating in. M. Menon.2% in July 2003 to 59. place (distribution) and production. Nokia also tied up with Sony music for top 20 hit songs as ring 52tones. became an instant hit. Shakira. hence Nokia provided the ring tone of National son “Saare Jahan se Achha ye Hindustan Hamara” in 5110 model. The N series is a multimedia sub-brand of Nokia. Nokia has a strong .'" said Sanjay Behl. Nokia came up with an India–specific strategy or a glocal strategy. price. Both were arcade games involving two most of the famous characters namely. Bengali and Kannada. Later on in 2005. Music. Nokia hosted the Ngage QD Gaming Championship. Mark Knopfler. product (customization). Lord Krishna and Arjun. To capture the widespread Indian market. MARKETING STRATEGY _____________________________________________________________________________________ ____________ 5. The introductory offer for this model also had inter-changeable covers. namely. "It is one of the biggest blockbusters that the Hindi film industry has churned out. Nokia banked on the opportunity by coming with FM phones attracting a lot of youth. Nokia has been associating with youth passions like Cool Sports. Nokia came with Bollywood classic movie ‘Sholay’ preloaded in N95 8GBand N81.2 Product 1998 was 51 st year of Indian independence. 5. to discuss the strategy. Also since many FM channels were introduced in India in early 2000’s. dust resistance and torchlight. Nokia sales increased from 58. Since. Also. Here. In Fashion. (Web 11) “As part of its strategy to connect with the young population in India. Tamil. Nokia came up with “Saral Mobile Sandesh” (SMS in Hindi). The feel of the campaign is such that it would evoke a 'sense of being. wherein the message is clear-personalize your phone. In1999. The success of 5110 initiated Nokia to focus on feature-specific localization. (2005) 53Nokia also tied up with Bharti cellular in 2005 to customize its handsets through which its users could access multimedia services by using an additional key on the mobile phone. which is liked by every age group equally. Sting and Enrique Iglesias to India. The model 3610 was launched with an enhancing Hindi text messaging facility in 2001. Head of Marketing.' in the picture frame behind the phone. the first ever futsal Championship. Nokia India. Defend Your Turf. It adapted the to Indian conditions by launching new products and enhancing the products with features designed specifically for local customers. graphics and game downloads. In 2005. we consider the simple concept of 4 P’s. Nokia India.Next chapter will involve deep discussion of the analysis and findings of the gathered data. as well as promotional campaigns targeted at Indian audience to gain a foothold in the market. and mother tongue of 43% Indians) user interface was provided in Nokia 3210. Shaggy." said Vineet Taneja. This was a part of Nokia 2112 model (CDMA). 515.6% in July 2004. Nokia came with SMS services in other Indian languages including Marathi. These services did not just increase their sale of mobile phones but were also fruitful as they made huge profits by selling the games. business director of multimedia. Earlier they had a similar feature in GSM handset Nokia 2100. The most successful customization came in 2003 when Nokia came with 1100 and 1108 specifically designed for Indian market. Hindi (national language. There could have been no better option than this flick. and Fashion. Nokia 3210. Over the last few years. In November 2007. "We have made a personality statement through the campaign. It had spearheaded the industry in online distribution of tones. It had features of anti-slip grip. in music Nokia has brought several world class music artists including. In the genre of Cool Sports. This gave opportunity to cinema buffs to now watch the movie Sholay on the go.1 Introduction Marketing strategy of a company in a new country plays a vital role in determining its future in that country. Nokia was also the first handset manufacturer to launch games download in India in 2003. it developed an extensive distribution network which also helped it take its products to rural markets in India. Nokia also launched games based on Indian mythology namely ‘Makhan chor’ and ‘Swayamvar’. Another feature that Nokia came up with attract youth was one which enabled the customer to slide in his or her photograph or for that matter the loved ones.

HCL also came with Nokia Care Centers (NCCs) for providing solutions to mobile related problems. They came up with Nokia Professional Centers (NPCs). This show how nature of Indian consumer is 55value sensitive. Nokia Priority Dealers (NPDs) and redistribution stockiest all over India. Details as per Nokia website are given below. about a fifth of the mobile phone sales in India were consumer durables or service providers’ shops. We are keen to lead a unique mobile retailing experience for consumers through these thouch points” Sanjay Behl. The distribution in these small towns called for non traditional channels. NPCs were one stop shops for the complete range of Nokia mobile phones.. data products and mobile services. the users can surf the net at a very reasonable price. that its handsets were not the cheapest in the market. It also increased the brand preference of Nokia from 66% to 77% within 9 months of its launch. NPCs were multibrand retails 56outlets with 60% of their area dedicated to Nokia. Nokia is in process of making cheap GPRS enabled handset. “This concept store is being set up with an objective to provide Indian consumer with a truly enhanced mobility experience through its cast and exciting range of Nokia products and mobile accessories. Again targeting the low and middle income class. The retail network they developed was very strong and dedicated." said Nokia's Senior Vice President . although was at a premium as compared to entry level phones. It also provided the after sales services for Nokia’s handsets. In this handset. Nokia India (Web 15). This model further became the best selling model ever in India. The sales in these urban markets were beginning to saturate. In 1995. data products and complete mobile phones accessories. was that of Nokia Concept Store in Bangalore in south India. therefore. Nokia 1100. Head Marketing. and selected distributors from FMCG line or experience holders for durables or automobiles. hands free kits and car kits amongst others. By mid 2005 the mobile phone sales in smaller towns and cities was higher than those of the metropolitans. Nokia designed modeled its distribution strategy on lines of FMCG business. (Web 13) 5. They also displayed complete range mobile phones. These were spread all over the country and provided phone repairing software up-gradation services. MG Road. the company is working diligently towards it. in spite of the fact. accessories.000 . This price.. It was located in the city centre. batteries. The store measures approximately 2. chargers.Entry Business Unit (Mobile Phones Business Group) Soren Peterson in an interview. HCL Infinet provided a complete range of Nokia’s GSM mobile phones. The major strategical move by Nokia in this regard was that it charged a lower price in India than most of other countries for the same model.3 Pricing Pricing of the phones was of prime importance for success in India. who are interested in using the new facilities available. In fact. "We are planning to bring internet access to all the masses in India through our low-cost handsets. 4000.) amounted for 65% of the total sales in India.” (Web 12) 54In another attempt to give India handsets which will enable them to use more features. was priced at Rs. Nokia tied up with HCL Infinet for sales and distribution of its phones and appointed them as Nokia distributor for GSM handsets in India. hence they are not just sold through exclusive telecom retailers but also through general retailers. Another effective concept that Nokia up with in 2005. Nokia did achieve success in India. Research unveiled that phones of lower price range (below Rs8000 or $200 approx. An important reason for the success of mobile phones in India was limited reach of the landline phones in several parts of the country. the purchasing power of the people was not high as compared to other developed countries.4 Place (Distribution) Mobile phones in India are considered as to be consumer durable. Being a developing country. Sanjay Behl said. “Nokia Concept Store in Bangalore was the country's first concept store in India to provide customers a complete experiential mobile experience. Nokia depended majorly on rural market. covers. The head of marketing at Nokia India. Nokia strengthened their distribution network. pricing was a major success factor for the company. but was enhanced with several special features which were not available in other phones of the same price. “The phone is a combination of product benefits and pricing” (Web 14). While redistribution stockists were for supplying handsets across India. 5.association with Wills Lifestyle India Fashion Week and Nseries lifestyle led campaigns amongst others. which was specially launched for India.

With a simple-to-navigate setup. The advertisement showed that the Nokia 1100 was launched first in India and addressed all the concerns of Indian consumers. And fashion and lifestyle products create a desire at all levels. Nokia’s advertisements concentrated on product attributes. Jaipur. Hence. 57Nokia today has eight Nokia 'Concept stores' in Bangalore. They conducted research to get to know the needs and concerns of the users of this segment. not in the least does the latest piece o communication create dissonance in the minds of consumers with regard to Nokia’s brand image. Business and Entry phones make it easy for the public to keep up to date on the latest technologies and trends in the mobile industry. the state-of-the-art Nokia Concept Store will provide mobile phone consumers in Indore a world class interactive and informative shopping experience. “Located at MG road and spread over 3500 sq. This was the fourth advertisement created in India but created maximum stir in the industry. Nokia decided to localize its products heavily. The company planned to build brand loyalty amongst this segment. Sanjeev Sharma. The advertisement made a clear deviation from hitherto hip urban-focused advertisements that Nokia are known for. Nokia was expecting exponential growth in small towns and rural areas. Smart. Nokia kept its promise of enhancing the mobile experience of its customers. what if the handset slips?” One advertisement that Nokia made in 2000 was a public interest advertisement. their purchasing power was not as high as other countries where Nokia was operating.” (Web16). The high-tech display terminals and dedicated areas for Imaging. Gaining acceptance of Indian consumer is not as simple as other countries. 58Until 2003. Nokia’s vast distribution network covered almost every city or town where mobile network was available. In October 2007. It showed a clip where hero picks up an argument with person sitting in front row in a movie theatre. and therefore the.” (Dixit. Ludhiana. Nokia used all their international advertisements with slight modifications in India. Even after the market grew. the advertisement for NGAGE showed two young persons getting bored stuck in traffic jam and then they show them combat with super natural powers. where people have strong believe in their mythology. print media concentrated on Nokia’s status. The aim was to highlight Nokia’s Indian image. For instance. be it the 59first-time urban or rural user. and had to establish its non-popular brand. Another major concern was the grip of the phone. urging users to switch off their cell phones while watching movies. Nokia developed a team called Mobile Entry Business Unit. allowing them to get a first-hand experience before making a purchase decision. “One of the things we found out was that the torch is of high value. There was needed to make special advertisements for India. and Nokia 1100 went on to become best seller not just in India but also worldwide. It aimed at highlighting the broad appeal of mobile phones across all socio-economic segments of India. nationality and cultures and to add to it. Nokia Mobile Phones India. Chandigarh. because of the climatic conditions in this country people usually have sweaty palms. In the early days. said “No. open doorways and lowglare lighting. they launched the first 'global format' Nokia Concept Store in Western India at Indore. India is a multicultural country. the store provides a relaxed and satisfying customer experience. But it did not have a very good affect on the Indian audience as they could not relate themselves to the people over there. Multimedia. It showed how NGAGE could help them pass their time. Delhi. Besides that a major concern was dust… People feared that dust might penetrate through the gaps of their keypad. 2004). For the purpose of developing the products specifically for markets with high population and low penetration. and that explains the extensive use of handset covers in India. square feet. Hyderabad. One of the advertisements was for . 5. Managing Director. Nokia India marked its special presence in advertisement world with ‘Made for India’ ad campaign on the launch of Nokia 1100 (Appendix 3). global R&D and international awards won to establish brand awareness. Analysts believed that Nokia would lose the top end consumers who attached lot of importance to mobile phones as a style statement. To build credentials the company used both print and television campaigns. feet. to achieve approval of the mobile consumers in India. The layout and design of the store follows the same pattern as Nokia Concept Stores around the world to guarantee an easy and informative shopping experience. As Sanjeev Sharma said. The advertisement was a success. The technology driven ads have created a rub-off on the entire Nokia range. Chennai and Indore” (Web 12). The major reason for handset was.5 Promotion Nokia entered India with one for mobile services to start.square feet and is designed to reflect the design ethic of the Nokia brand.

a cricket fan was watching cricket with his daughter and a prospective groom walks in. Even different media was used according to the audience. Hutch” (Web 18). He expresses how it brings and spreads happiness and how it has been with him through the ups and downs of his life. It was a audience specific advertisement and encouraged the use of Hindi SMS amongst the rural population Nokia was not the market leader in colored handsets. As a part of this tie-up. The advertisement showed a postman giving a mobile to a girl which was sent to her by her brother so that she can exchange Hindi SMSes with her brother. Nokia even faced the problem of brand 62identification in the early stages as there were no specific signs suggesting that it was an advertisement from Nokia. One of them starring the superstar of Hindi cinema.1 Introduction Analysis of the data is very important part of any research. Then. Nokia followed model-specific advertising for most part. The advertisement targeted the middle class youth of India. network provider Hutch came up with television on mobile phone. a special website created for Nokia and OSO association” (Web 19). Shah Rukh Khan calling Nokia as his friend and companion for 10 years. Om Shanti Om (OSO). The quality of data collected matters. said Mr Harit Nagpal.nokia. but what matters more is the interpretation of that data. ring tones and wallpapers on their mobile phones. It showed the idea of color spreading happiness in every life. To its luck.co. 636. Nokia has had a strong association with the sport through its advertisements. The dejected young lad starts to walk away.Nokia 2280 which was offered in bundle with reliance mobile connection. Nokia has embarked a new advertising plan to consolidate its ad campaigns and strengthen its brand identity.in/oso. In 2007 itself. “The new edge in fashion” and Nokia E series. Chief Marketing Officer. To regain its share. India-specific campaign was the one where phones with Saral Mobile Sandesh (Hindi SMS) were promoted. animated characters of 'OM' (played by Indian superstar Shah Rukh Khan) that can be downloaded exclusively on all Nokia GPRS enabled handsets by dialing 55555 or from www. where mobile penetration is low. Unique personal quotes from respondents were taken as a basis of comparison of the different views to consolidate it into finding . In an advertisement released during cricketing season of 2003. impressing the father. Nokia came up with some good advertisements around the end of 2007. “Clips from these 13 television channels can be accessed by Hutch and Orange users through their EDGE-enabled mobile phones. It was a very colorful 61advertisement. making it easy to target the specific audience. it came up with advertisement ‘Har Jeb mei Rang’ (color in every pocket) for Nokia 2600. It targeted the rural India. This was a simple one which educated the audience of availability of cheap handset with bundled airtime. Nokia users can exclusively watch OSO movie clips. Recently. Different advertisements were made for each model of Nokia. data of all the respondents to the interview was compared to give better understanding of the situation. 2006 (Web 17). Cricket is considered a religion in India. India won the world cup and this format of the game was an instant hit in India. Since 2005. Another successful. alarm amongst others at a very reasonable price. Other advertisements have been model specific as Nokia’s advertisements have always been. Firstly. Hutch then came with an advertisement showing people watching television on Nokia 6630 which was EDGE enabled. just then the television 60gets blank. Nokia was the 'on air' sponsor for the West Indies World Cup and for the Champions Trophy held in India. “As a part of its strategy to enrich mobile user experience. showing colors spreading out of Nokia phone. Nokia sponsored the ICC World Twenty20 2007 in South Africa. The enthusiast fan is frantically trying to find the score. This chapter deals with Analysis and Discussions of the findings. which will demand that model. Other advertisements include Nokia 7900 Prism. the father throws the ball to him. This helped Nokia to increase its sales. “Success is the name of the game”. The boy gets a message of latest score update on his Nokia mobile phone. ANALYSIS _____________________________________________________________________________________ ____________ 6. In 2004. Nokia announced its association with Bollywood's most awaited multi star blockbuster. Nokia has created a special 'OSO Crazy mobisode'. this comparison was used to achieve the objectives of the research by evaluating them on the basis of secondary data. behind the scenes videos. which he is unable to catch. Another advertisement shows Nokia 1650 with features of cricket game.

Out of this one was considered not valid for the research. The future also seems to be bright as mobile phone is considered as consumer durable in the country. the Indian cellular phone industry has witnessed exceptional growth in the past few years. Samsung. These dealers deal in many brands and have the first hand knowledge of market and consumer perceptions. First of all they asked to comment on the cellular phone market of India. believed reasons such as prepaid connections and lifetime connections played important roles in getting the industry where it is now. . All major Nokia N73 65companies. The number of interviewee was restricted to such a small number because of uniformity of the responses from the 64responses. Sony Ericsson Nokia N95 8GB 6.2 Background of the Respondents For the purpose of collection of primary data. As we know. The background details of these respondents are given below: Name Age City Dealership Handset owned Pradeep 39 New Delhi Nokia.of the research. All major companies Samsung Srikant 29 Chaibasa Nokia (Distributor and Dealer). Few reasons were mentioned too. who has a vast experience of 8 years. the thoughts still vary due to personal choices and the type of customers they deal in. 8 dealers of mobile phones in India within the age of 20-40 were interviewed. However. Sony Ericsson Nokia E50 Rishi 27 Gurgaon Nokia. 25 years old Sourav. To begin with we will discuss the background of the respondents. All major companies Nokia NGAGE Sumit 23 New Delhi Nokia. All major companies Sony Ericsson Akshay 31 New Delhi Nokia.3 Analysis and Discussion To start the conversation and make the interviewee comfortable. To get a more generalized view of the thoughts. Being the dealers of mobile handsets. 6. It was believed that information was getting repetitive and no new information was being achieved. They were asked about the way the market has grown and about the future of the market. Out of the 7 respondents. Chinese brands Yuvraj 27 New Delhi Nokia. All major companies. making it easier for the researcher to conduct the interview. The respondents reply was as follows: “Launched about 10-12 years ago. The youngest respondent was 23 years of age and the eldest 39. mobile dealers were interviewed. 5 owned Nokia phones. which in turn depends on location. Chinese brands Nokia 6230i Sourav 25 Kolkata Nokia. these respondents had more than decent knowledge of the phones. more general questions were asked. cellular phone was considered a luxury and very costly affair… Establishment costs for the network providers was very high… But now scenario has changed… prepaid connections and lifetime connections are the major factors for the boom in the market…” Sourav “There has been tremendous growth in the past few years…” Akshay “The market has seen a growth in terms of both quantity as well as quality… Probably the most booming market at the point of time…” Rishi 66Everybody believed that market had shown dramatic growth in past few years.

“This business has a very good and bright future… The margins are getting lower but the turnovers are increasing by the day…” Srikant “I have a strong feeling that it will keep on growing for some time before it reaches a saturation level… Since the average life of a handset is 1-2 years. However. scope of sales will always be there…” Akshay 67 . different reasons were given to comprehend their beliefs. When asked for the future of this business.“Mobile phone has become a part of everybody’s life… It is almost impossible to imagine a life without it… This by itself tells about the future of the market…” Pradeep The above statement by Pradeep marks the importance of mobile phone in the life of a middle class man today. the opinion was general of the respondents that the industry has a very bright future.

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