PR T_ REPORT TITL NOKIA CONNECTING PEOPLE BRIHAN MAHARASHTRA COLLEGE OF, COMMERCE PUNE PROJECT GUIDENCE PROF. ANIKET KALE JITENDRA SANGLE TYBBA (SEMESTER V) DIV.B_ ROLLNO. 63DECLARATION I the undersigned, Jitendra Ramesh Sangle, am a student of Brihan Maharashtra College of Commerce pursuing the third year of the degree course of Bachelors of Business Administration under University of Pune; hereby declare that the project report submitted is correct and original as per my knowledge and is not reproduced or copied from any source. I hereby also declare that this project work is not submitted to any other college/university. Jitendra SangleACKNOWLEDGEMENT It gives me immense pleasure and deep satisfaction on completion of research project report of “Nokia” under the subject “Research Methodology”. The research was concluded with the total assistance and complete cooperation on part of the company executives, faculty members and the college administration. My hearty thanks to Mrs. Bharti Upadhaye, Coordinator Bachelors of Business Administration Department, Brihan Maharashtra College of Commerce, Pune-04; for her constructive feedbacks. Sincere gratitude and thanks to Prof. Dr. Rawal, Principal, Brihan Maharashtra College of Commerce, Pune- 04 for providing this opportunity. Jalso sincerely thank our college faculty member & subject professor- Prof. Aniket Kale for his valuable guidance, constant encouragement, keen interest and support in completing this project. Jitendra SangleS.NO. INDEX PARTICULARS THEORY & CONCEPT INTRODUCTION & HISTORY OF NOKIA OBJECTIVES OF THE STUDY PURPOSE OF THE STUDY RESEARCH METHODOLOGY RESEARCH DESIGN DATA ANALYSIS QUESTIONNAIRE 10 SUGGESTIONS, RECOMMENDATIONS AND LIMITATIONS, BIBLIOGRAPHY1. Theory & Concept "A business has two - and ouly two - basic functions: marketing and innovation.” ~ Peter Drucker The rapid pace of change and intense competitive pressure in today's marketplace- demand that brands continuously innovate and reinvent themselves to maintain their relevance and market position. In this context, brand repositioning and other revitalization strategies have become a business imperative for battling brand erosion. The appeal of brand repositioning is further heightened by the rising costs and high risk associated with launching a new brand. Brand repositioning has received little attention in the marketing literature and has mostly been treated as a variation of brand positioning. Biel, for example, has defined brand positioning as "building (or rebuilding) an image for a brand". The goal of positioning and repositioning strategies relates to the management of consumers’ perceptions. However, positioning focuses on the creation of brand associations - consumers’ perceptions of the attributes that differentiate the brand from competitive offers — while repositioning also implies managing existing brand associations. The unique challenge of a repositioning strategy, thus, lies in rejuvenating the brand image to make it relevant in an evolving environment, while honoring the brand equity heritage. Repositioning can be required as the market changes and new opportunities occur. Through repositioning the company can reach customers they not intended to reach in the first place. Ifa brand has been established at the market for some ‘time and wish to change their image they can consider repositioning, although one of the hardest actions in marketing is to reposition a familiar brand. According to Solomon, position strategy is an essential part in the marketing efforts because companies have to use the elements in the marketing mix to influence the customers understanding of the position. During the movement from something less attractive and relevant towards a more attractive and relevant position several of strategic choices has to be made. The ones responsible for the repositioning have to evaluate why a reposition is necessary, and if the offer is the one who will change or just the brand name. There are several risk factors that have to be taken into consideration when preparation for a repositioning of the offering or the brand. During repositioning, the risk of losing the credibility and reliability is high and the need for a thorough strategy is therefore necessary to avoid this occurrence. Some analyst argue that to successfully reposition a establish brand name is almost impossible hecause repositioning of a brand can make the most loyal customer to switch brand. But, in some circumstances a repositioning is necessary to gain credibility if the brand is eroded. Whenever a reposition is in question it has to be of relevance from a customer perspective, is this achievable? Some brands will on no account be thought on as a luxury brand and therefore an attempt to reposition will only damage the brand image or the actual company. Numerous failed attempts at brand repositioning testify to the difficulty of developing and implementing such a tactic. For example, while the soft drink brand, Mountain Dew has remained relevant to the youth market through continuous repositioning in its thirty years of existence, Levis’ Jeans has been losing market share to newcomers such as The Gap, despite numerous campaigns designed toreposition the brand as trendy. The strategic importance of brand repositioning in preserving and enhancing brand equity, coupled with the mixed results of repositioning attempts, underscores the need to develop a better understanding of the dynamics of brand repositioning. Specifically, questions of whether, when and how brands should be repositioned need to be addressed. Research into brand repositioning is relevant not only to the development of brand management theory, but also extends to corporate strategy through an examination of comporate brands. 2 Literature Review The repositioning strategy is rolled out in three stages: introductory, elaboration and fortification stages. This involves the introduction of a new or a repositioned brand, seeking to underline the brand's value over others, and to broaden the brand proposition. It is truly tough to change the customer's perceived attitude towards a brand, and therefore the risk is great that the attempt to repositioning might be unsuccessful. After rolling out the strategy, it is time to modify the proposition through update of the personality and through repositioning. There are benefits and risks with both of this segments and it is of great significance that they are truly evaluated when deciding the next step in the process. To further understand the stages stated above, figure.1 will guide you through the different phases that follow after establish a brand proposition.Higure 1: Stages in brand strategy development The implication with the term” repositioning” is that a company modifies something that is already present in the market and in the consumer’s mind. The definition of repositioning changes different individuals and professions. To view the different definitions and perceive a greater understanding about this concept, three examples of repositioning given by individuals in different professions is stated below: Eeablishing the Glactins appropriate Bac ckeana the prope Roting out he - Heposmonins <_< Updanne the - BIC Sten senae Pept Foruscation stage “Repositioning is a change, principally about trigging the vision, mission and value ina new Direction that is more suited for the brand in the future”. (Brand manager consultant) “Principally, reposition concerns change the consumer's perception of the brand” (PR- consultant) “Repositioning is built upon the change unique and differentiated associations with the brand In some kind of direction, it is about having a balance between the category party and Differentiation when using reposition strategies” (Leading brand strategist) From these definitions, it is obvious that reposition is about moving something to a newer and hopefully to a more attractive and relevant position. The purpose of the movement differs with regards to what the company wants to achieve. A company might want to reach out to a larger target group, or be involved in several different positions at the market. There is also a visible relation between price and quantity aspects. When a company perceives the market as a demand curve, the purpose is to down stretch or up stretch in this curve. When moving down it is often spoken of as an expansion down wards, and when moving up and there is a need for reaching the premium segment and expand up wardsFigure 2: The principle of repositioning —J al New Position e| Previous Position Experienced quality When striving towards a new position in the market, it is important to understand that consumer’s minds are limited. People’s minds select what to remember and it is therefore significant to convince the consumers with great arguments. The market demand changes rapidly and therefore reposition can be necessary to meet these demands, newer and stronger arguments have to be established to convince them to stay as loyal customers. As stated in the literature, repositioning is a very complicated matter and therefore there are no detailed theories or models. The aim with repositioning differ from person to person, and the only connection between all the different theories is that repositioning is moving something from somewhere towards a greater position at the market. Corstjens and Doyle (1989) identified three types of repositioning strategies: 1) Zero repositioning, which is not a repositioning at all since the firm maintains its initial strategy in the face of a changing environment; 2) Gradual repositioning, where the firm performs incremental, continuous adjustments to its positioning strategy to reflect the evolution of its environment; and 3) Radical repositioning that corresponds to a discontinuous shift towards a new target market and/ora new competitive advantage. After examining the repositioning of several brands from the Indian market, the following 9 types of repositioning have been identified. These are: Increasing relevance to the consumer Increasing occasions for use Making the brand serious Falling sales Bringing in new customers Making the brand contemporary Differentiate from other brands 1 2 3 4 5 6. 78. Changed market conditions. It is not always that these nine categories are mutually exclusive. Often one reason leads to the other and a brand is repositioned sometimes fora multiplicity of reasons A four-phased brand repositioning approach can be followed to achieve the intended Benefits: Phase I. Determining the Current Status of the Brand Phase II. What Does the Brand Stand for Today? Phase III. Developing the Brand Positioning Platforms Phase IV. Refining the Brand Positioning and Management Presentation ‘The benefits that can be derived from brand repositioning exercises can be Summarized as: © = Value over others ‘© Updated personality © Relevant position © “Up to date” image The risks associated with such strategies are: © Loss of focus: ‘© Neglecting original customers * Losing credibility for the brand © Confusing the brand ‘Therefore, brand repositioning is more difficult than initially positioning a brand because ‘one must first help the customer “unlearn” the current brand positioning (easier said than done). Three actions can aid in this process: (1) Carefillly crafted communication, (2) New products, packaging, etc. that emphasize the new positioning and (3) Associations with other brands (co-branding, co-marketing, ingredient branding, strategic alliances, etc.) that reinforce the new brand positioning,This exercise is so critical to an organization's success that the organization's leadership team and its marketing/brand management leaders should develop it, preferably with the help and facilitation of an outside brand-positioning expert. INTRODUCTION Nokia was founded in 1865 by Fredrik Idestam in Finland as a paper manufacturing company. In 1920, Finnish Rubber Works became a part of the company, and later on in 1922, Finnish Cable Works joined them. All the three companies were merged in 1967 to form the Nokia Group. In the late 1970s, Nokia started taking an active interest in the power and electronics businesses and by 1987, consumer electronics became Nokia's major business. Nokia created the NMT mobile phone standard in 1981 and launched the first NMT phone, Mobira Cityman, in 1987. The company delivered the first GSM network to Radkilinia, a Finnish company in 1991, and in 1992, Nokia 1011 —a precursor for all Nokia's current GSM phones - was introduced. In the 1990s, Nokia provided GSM services to 90 operators across the world, Another significant move of the company during this period was the divestment of its non core operations like IT. The company focused on two core businesses ~ mobile phones and telecommunications networks, Nokia in India Nokia entered the Indian market in 1994. The first ever GSM call in India was Nokia entered the Indian market in 1994. The first ever GSM call in India was made on a Nokia 2110 mobile phone on its own network in 1995. When Nokia entered India, the telecom policies were not conducive to the growth of the mobile phone industry. The tariffs levied on importing mobile phones were as high as 27%, usage charges were at Rs.16 per minute and, at these high rates, consumers did not take to mobile phones. . It started capturing the market with its quality products and services, Nokia’s success is mainly attributed to distribution deals they inked - of the estimated 79,000 retail outlets in India selling mobile phones, Nokia had a presence in 72,000 of them.‘Though Nokia had to face tough competition from other powerful global players like Motorola, Samsung, LG and Sony Ericsson, they could not snatch Nokia’s customers. So we wanted to find out the reason “Why Nokia is preferred over other brands”. HISTORY OF NOKIA Nokia’s first century: 1865-1967 8 From roots in paper, rubber, and cables, in just over 100 years Nokia becomes a The move to mobile: 1968-1991. The newly formed Nokia Corporation is ideally positioned for a pioneering role in Mobile revolution: 1992-1999 NOKIA As mobile phone use booms, Nokia makes the sector its core business. By the tum of the century, the company is the world leaderNokia now: 2000-today Nokia sells its billionth mobile phone as the third generation of mobile technology emerges. SOME FIRST FOR NOKIA: 1995 — First mobile phone call made in India on a Nokia phone on a Nokia network 1998 - Saare Jahaan Se Acchha, first Indi ringtone in a Nokia S110 2000 - First phone with Hindi menu (Nokia 3210) 2002 - First Camera phone (Nokia 7650) 2003 - First Made for India phone, Nokia 1100 2004 - Saral Mobile Sandesh, Hindi SMS on a wide range of Nokia phones 2004 - First Wi-fi Phone- Nokia Communicator (N9500) 2005 — Local UI in additional local language 2006 — Nokia manufacturing plant in Chennai 2007 ~ First vernacular news portalRanked No | Most Trusted Brand Survey by Brand Equity, 2008 Ranked the No I, MNC in India by Businessworld, Indi weekly, 2006 > Ranked as the No. 1 telecommunications equipment vendor in the country by Voice & Data for five consecutive years —2008, 2007, 2006,2005 and 2004 Ranked as the 9th most powerful brand by Millward Brown’s BrandZ 2008 Ranked world’s 4th most valuable brand by Interbrand, 2007 Ranked Asia’s most trusted brand by the Media-Synovate, 2006 vy s leading business Pee y F THE COMPANY. Connecting people" is now connecting people to what matters - whatever that means for each person - giving them the power to make the most of every moment, everywhere, any time. Connecting the "we" is more powerful than just the individual. That's how Nokia is needed to help make the world a better place for everyone. STRATEGY OF THE COMPANY To do this we will become the leading provider of mobile solutions. Our solutions strategy leverages one of our greatest assets - a portfolio of outstanding devices, with ‘unmatched scale and geographic reach. We couple them with smart services, integrated via an intuitive and seamless user experience. We differentiate these solutions offerings based on our in-depth consumer understanding, with a strong focus on social location (people and places). In a world where connecting people to things what matter to them, empowers them to make the most of every moment. Our ambition is to become the leading provider of mobile solutions. ADVERTISING AND SALES PROMOTION > The American Marketing Associ n, Chicago, has defined advertising as“Any form of non-personal presentation or promotion of ideas, goods or services, by an identified sponsor.” Advertisement is a mass communicating of information intended to persuade buyers to by products with a view to maximizing a company’s profits. ¥ To stimulate sales amongst present, former and future consumers, It involves a decision regarding the media, e.g., TV rather than print ; > To communicate with consumers. This involves decision regarding copy > Toretain the loyalty of present and former consumers. Advertising may be used to reassure buyers that they have made the best purchase, thus building loyalty to the brand name or the firm. To increase support. Advertising impliedly bolsters the morale of the sales force and of distributors, wholesalers, and retailers; it thus contributes to enthusiasts and confidence attitude in the organizational. > To project an image. Advertising is used to promote an overall image of respect and trust for an organization. This message is aimed not only at consumers, but also at the government, sharcholders, and the general public. Sales promotion: + Sales promotion is the process of persuading a potential customer to buy the product. It can be part of the personal selling process. Sales Promotions Objective +L To introduce new products+ ii, To attract new customers and retain the existing ones i. To maintain sales of seasonal products iv. To meet the challenge of competition From manufacturer point of view: 1. Increases the volume of sales Helps to introduce new products in the market Enables quick disposal of existing stocks From the point of view of consumers 1. Goods are available cheaper rate 2. inancial benefits to the customers 3. Generates awareness about new 4. Stabilizes the volume of sales ‘5. Creates confidence in the mind of customers regarding quality 6, Raise standard of living OBJECTIVE 1) To analyze the advertising effectiveness on consumers of Nokia Cellular Phones. 2) To analyze the different medium through which the advertisement reaches maximum number of people in the market.3) To analyze the strategies that the company should adopt to tum viewers into consumers, 4) To know the present status of the competitors of Nokia Cellular Phones in terms of advertisement, 5) To analyze what the viewers expect from the advertisement in present generation. RESEARCH METHODOLOGY SAMPLING Research Design: Descriptive research: it includes surveys and fact-finding enquiries of different kind. The major purpose of descriptive research is description of the state of affairs. ~ The sampling plan taken is probabilistie approach - stratified random sampling. Here the sample plan employed is the probabilistic one because it is possible to pre-specify every potential sample of a given size that could be drawn from the population. And it is possible to specify the probability of selecting any particular sample of a given size. Moreover, it also evaluates in quantitative terms, the relative efficiency of alternative sampling techniques in a given situation and requires relatively little universe knowledge i.e. ~- a way of identifying each universe element uniquely and the total number of universe elements. *Why was this type of design used? In this research design, the researcher is able to define the population clearly and got the adequate method for measuring the responses, and this design gives enough protection against bias and maximizes the reliability of the study. STRATIFIED RANDOM SAMPLES:In a stratified random sample, the population is first divided into relatively internally homogenous groups, or strata, from which random samples are drawn, This stratification results in greater representative ness. Data collection methods were used: Primary Data Collection- Questionnaires A questionnaire consists of a number of questions printed in a definite order on a form, It is free from the bias of the interviewer. Questionnaire: This device is appropriate for this project as this project emphasizes on the advertising and sales-promotion technique adopted by Nokia, more over itis free from the bias of the interviewer as answers are in respondent's own words. Respondents have adequate time to give well thought answers. Respondents, who are not easily approachable, can also be reached conveniently. Large samples can be made use of and thus the results can be made more reliable and dependable Secondary Data Collection — ‘Reference books, joumals, reports, records statisties and other sources of published information. ‘The population defined: Its geographic bound is limited to the area of Faridabad Its demographic bound is age, sex, and occupation Other bounds Sampling units were employed- business executives SAMPLE SIZE- 100Pre-testing of the questionnaire is done Difficulties experienced in contacting designated sample elements ~ some of the problems we had faced were lack of time, tracing the people according to the selection of the employees. QUESTIONNAIRE 1, Which phone brand do you prefer? A. Nokia B. Samsung C.LG D. Motorola E, Other 2. Why do you prefer the Nokia brand? A. Reliability B. Less Maintenance C. Trusted name D. Cost of Ownership is less. E. Other 3. How is the Dealership network of the Nokia? A. Very Accessible B. Accessible C. Not Accessible D. Not Present 4. If present, how would you rate your level of satisfaction with the Dealer's product range? A. Very High B.High —C. Average D. Poor 5, How did you leam about Nokia Phones? A. Newspapet/ Daily B. Flyer/Coupons_C. Word of mouth. Other 6. How would you rate your level of satisfaction with the sales person? A. Excellent B. Very Good €.Good —_D. Poor 7. How was the ambiance at the dealership’A. Excellent B. Very Good C. Good D. Poor 8. How would you rate your level of satisfaction with regards to accessories? A. Excellent B. Very Good ©. Good D. Poor 9. How would you rate your level of satisfaction with regards to customer service? A. Excellent B. Very Good C.Good —_D. Poor 10. How would you rate your level of satisfaction with regards to after sales service? A. Excellent B. Very Good C. Good D. Poor 11, Based on your experience, how likely are you to buy Nokia phone in future? A. Very likely B. Likely C.Notlikely D. Never 12. Would you recommend this Nokia phone to others? A.Yes B.No 13. Do you prefer Nokia product? A.Yes B.No 14, Are you satisfied with advertising policy used by Nokia? A.Yes B.No 15. Are Nokia mobiles readily available in the markets? A.Yes B.No 16, Does a Nokia phone come with reasonable price?A.Yes B.No 17. Do you think Nokia handsets are updated with the latest features? A.Yes — B.No 18. Are Nokia mobiles readily available in the markets? A.Yes B.No 19, Do you think Nokia mobiles are user friendly? A. Yes B.No 20. Do Nokia provide good after sales service compared to other mobile phone ‘companies? A.Yes B.No 21. Nokia is costlier as compared to other mobile handsets that provides same features as Nokia, but still why do you prefer Nokia? A. Nokia brand name B. Better features C. User friendly D. All the above 22. Does a Nokia phone come with reasonable price? A. Yes B.No 23. Ifa mobile company offers same features, quality and price as Nokia, will you still ‘go Nokia? A.Yes B.No24, Will you go for other mobile phone brand with less price and more features? A.Yes B.No 25. Do you agree that you are satisfied with the advertising policy of Nokia Company? A. Strongly agree B. Agree ©. Neutral D. Disagree E, Strongly disagree 26. Do you agree with the sales promotion technique adopted by Nokia? A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly disagree 27. Are you satisfied with performance of Nokia phones? A.Yes _ B.No (if no please specify... 28. What changes would you suggest for Nokia?L Although the project is to be carried out with the motive of ensuring most exhaustive & comprehensive coverage of facts & figures, but still it suffers from some limitations, ‘The data is mostly collected from the internet from different websites for the research project work. So the dependence is on the websites which may be vague. 2 Time Available:- The study was to be carried out in the prescribed time frame which is a short time span to be carried out the extensive study in such large organizations 4 Confidentiality Of Information:- It may be possible that certain details about the company & about the project are not collected as the officials may feel that information is confidential. a Errors In The Secondary Ds The errors in the facts & figures taken from the data given may have preprinted errors, which are unavoidable 4 Budgetary Constraint The budgetary constraint ceased me somewhere which make me unable to impart my full 100% to the project.SUGGESTIONS Company needs to look at its advertising operations. In today’s environment advertising is the media to reach the public faster. Company should adopt more strategic audit of its advertising media, It should arrange visits to trade fairs, display advertising, road shows to capture market's share It can also offer some discount on product so that more customer get attracted. Company should give emphasis on sales promotional aBIBLIOGRAPHY Sengupta Subroto(2006), “Brand Positioning: Strategies for Competitive Advantage”, Second Edition, Tata McGraw Hill Publishing Company Limited, New Delhi, Gopalakrishnan PS (ed.] (2007)," Rebranding: An Introduction”. ICFAI University Press, Hyderabad. ICFAI Journal of Marketing Management ICFAL Journal of Brand Management www.marketingprofs.com www. brandingstrategyinsider.com www.scribd.com www.thehindubusinesstine.com www.economietimes.com