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SEGMANTATION IN MARKETING (With reference to NOKIA CO. LTD )
Submitted for the Award of Bachelors of Business Administration (Finance) ( 2007 - 2010 )
SUBMITTED BY : AMAN NARULA Enrolment No. A3906407040
AMITY SCHOOL OF BUSINESS
AMITY UNIVERSITY, UTTAR PRADESH
Completing the project work is never one-man effort. It is often the result of valuable
contributions of a number of individuals in a direct or indirect manner that helps in shaping and achieving stated objectives. This project report bears the imprint of those who had rendered their wholehearted support and encouragement without their help this effort of mine would be in vain.
It is my privilege and great pleasure to thank all assiters who assist me to do my work without their assistance this dissertation report not have been successful. I am indebted to him for lending his precious time and co-operation towards the execution of this report. I also consider it as a great honour to express my heartful gratitude to my faculty guide for his kind support and guidance towards this dissertation report. Last, but not least I would like to express my deep sense of gratitude and thanks to my parents and friends for their support.
Acknowledgement Preface 1. Introduction 1 . 1 Introduction to Marketing 1 . 2 Market Segmentation 1. 2.1 Considerations for Market Segmentation 1 . 2 . 2 Segmentation Basis 1.2.3 Effective Segmentation
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2.1Reviw of Literature 2.2Objective of the study 2.3 Methodology 2.4Limitation of study 3.Introduction 3.1Nokia 3.2Nokia Vision/ Mission Statement 3.3About The Company 3.4SWOT Analysis 3.5Market Segmentation for Nokia 3.5.1Segmentation of Nokia 3.5.2Nokia mobile phones by Series 3.5.3Lifestyle and Psychographic Basis for Nokia 3.5.6The Segmentation of Nokia conducted on the basis of Price 4.Analysis and Interpretation 5.Conclusion 6.Recommendations 7.Bibliography 8.Annexure
goods. In a nutshell it consists of the social and managerial processes by which products (goods or services) and value are exchanged in order to fulfill the needs and wants of individuals or groups. organizations. promotion. Academics do not have one commonly agreed upon definition. Even after a better part of a century the debate continues. communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Advertising is simply one of the many processes that together constitute Marketing. Although many people seem to think that "Marketing" and "Advertising" are synonymous. pricing. 4 . Industry is the tool of society to produce products for the satisfaction of needs. Marketing is one of the most important functions in business. It is the discipline required to understand customers' needs and the benefits they seek.Introduction to Marketing "Marketing is the process of planning and executing the conception. and distribution of ideas." (Kotler & Armstrong 1987) The Mission of marketing is satisfying customer needs. That takes place in a social context. as released by the American Marketing Association is:Marketing is an organizational function and a set of processes for creating. In developed societies marketing is needed in order to satisfy the needs of society's members. and events to create and maintain relationships that will satisfy individual and organizational objectives." The new definition of marketing. "Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. they are not. services.
What is Marketing? The term marketing has changed and evolved over a period of time.Tailor of www. competitor strategies analysed. planning. while at the same time ensuring that the satisfaction of these needs results in a healthy turnover for the organisation. clearly the greater the benefit provided the higher transactional value an organisation can charge.learnmarketing. Through effective use of market and marketing research an organisation should be able to identify the needs and wants of the customer and try to delivers benefits that will enhance or add to the customers lifestyle. implementation of campaigns and a competent manager(s) with the appropriate skills to ensure success. Marketing objectives. goals and targets have to be monitored and met. The Chartered Institute of Marketing define marketing as ‘The management process responsible for identifying . Philip Kotler defines marketing as ‘satisfying needs and wants through an exchange process’ Within this exchange transaction customers will only exchange what they value (money) if they feel that their needs are being fully satisfied. 5 . anticipating and satisfying customer requirements profitability’ If we look at this definition in more detail Marketing is a management responsibility and should not be solely left to junior members of staff.net suggests that 'Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer’. anticipated and exceeded. these benefits will be provided and a transactional exchange will take place. P. today marketing is based around providing continual benefits to the customer. Marketing requires co-ordination.
to repay debts and to turn a profit Identifies competitors and analyzes your product's or firm's competitive advantage Identifies new product areas Identifies new and/or potential customers Allows for test to see if strategies are giving the desired results Disadvantages • • • • Identifies weaknesses in your business skills Leads to faulty marketing decisions based on improperly analyzed data Creates unrealistic financial projections if information is interpreted incorrectly Identifies weaknesses in your overall business plan 6 .Advantages • • • • • • • • Identifies needs and wants of consumers Determines demand for product Aids in design of products that fulfill consumers needs Outlines measures for generating the cash for daily operation.
In particular. Functions of Marketing • • • • • • Market research Advertising and sales promotion Public Relations Selling Servicing Methods of payment and credit 7 . as well as to satisfy the customer with prompt services and meeting the customer expectations. Operational Marketing includes the determination of the marketing mix. Operational Marketing Operational Marketing executes marketing functions to attract and keep customers and to maximize the value derived from them.Levels of Marketing Strategic Marketing Strategic Marketing attempts to determine how an organization competes against its competition in a market place. it aims at generating a competitive advantage relative to its competition.
(Davis. social and environmental responsibility. a company must operate in a way that will make possible the production of benefits for society and. In addition to economic and social responsibility.The Social Function of Marketing In modern society production and consumption are apart from each other. ecological responsibility is nowadays emphasized. Business is a subsystem of society. From the societal point of view. produce profits for the company itself. It is the regulatory hand of the law and political process which guides these objectives towards common good. According to some definitions. Goodpaster and Matthews (1982) analyzed three patterns of thought. 2. Improvement of marketing is related to the changing emphases of economic. John Kenneth Galbraith) concludes that companies are to pursue rational and purely economic objectives. marketing is a philosophy. 1. 8 . at the same time.g. which has both a social and an economic role. The hand of government view (promoted by e. which shows how to create effective production systems and consequently prosperity. 2. The invisible hand. The hand of government. The common good is best served when individuals and organizations pursue competitive advantage. Milton Friedman) concludes that the only social responsibilities of business organizations are to make profits and to obey laws. Thus. et al. and 3.g. Marketing connects them. environmental responsibility is part of social responsibility. The invisible hand view (promoted by e. which can be distinguished for a company's social responsibility: 1. The hand of management. K. Free and competitive market-place will ensure the moral behaviour of companies. 1980) The role of marketing in society means also responsibilities.
The following figure shows the role of traditionally oriented marketing in (traditionally oriented) management. organizations should be no less or no more responsible than ordinary persons. The Traditional and Integrated Functions of Marketing Traditionally. The basic power of marketing is the aspiration to produce and sell only that kind of products which have demand. Selling is associated to the so. where information is transmitted effectively between production and consumption. Marketing integrates the whole company to serve this demand. The hand of management view (presented by Goodpaster & Matthews) would put the responsibility of a company's actions into the hands of the company itself. Slogans: "Make what you can make" and "Get rid of what you have made" describe the traditional view of marketing/selling. Marketing aims at effective production systems. The function of marketing is to channel information of consumer needs to the production and satisfaction of needs to consumers. The situation could be captured better by using the term selling.called "Production and Sales Eras of Marketing". Therefore. and that the concepts of an individual's responsibility and a company's responsibility are largely parallel. It is concluded that the moral responsibilities of an individual may be projected into an organization. 9 . Marketing was born out of a need to take better into consideration the demand factors in production planning.3. marketing has been seen as a link between production and customer.
young adults. such as age. and mature adults. In the market-segmentation approach. Similarly. life stage. each different from the other. characteristics. and education level. and perceived product benefits. interests. and so on. home builders. the total market is viewed as being made up of several smaller segments. In the mass-marketing approach. gender. businesses look at the total market as though all of its parts were the same and market accordingly. marketers of low-fat or low-calorie products try to 11 . or lifestyles of potential customer groups. Companies marketing new products. the other is massmarketing. occupation. race. Clothing manufacturers. occupation. life stage. The most common elements used to separate consumer markets are demographic factors. Cosmetics and hair care companies may use race as a factor. attitudes. Possible bases for dividing a total market are different for consumer markets than for industrial markets. geographic location. The second is to divide the market into groups on the basis of their characteristics and buying behaviors. favorite sports team. This approach enables businesses to identify one or more appealing segments to which they can profitably target their products and marketing efforts. for instance. Demographic Segmentation involves dividing the market on the basis of statistical differences in personal characteristics. Some financial institutions attempt to isolate and tap into groups with a strong interest in supporting their college.Market Segmentation Market segmentation is one of two general approaches to marketing. segment on the basis of age groups such as teenagers. for example. The Market-Segmentation process involves multiple steps. professional periodicals. seek to identify customer groups that are positively disposed to new ideas. Jewelers use gender to divide markets. Psychographic Segmentation is based on traits. The first is to define the market in terms of the product's end users and their needs. Firms marketing environmentally friendly products would single out segments with environmental concerns. or professional organization through logged credit cards. income.
Some are very different. Geographic Segmentation entails dividing the market on the basis of where people live. Industrial markets are often divided on the basis of organizational variables. Thus. policy regarding number of vendors. perceived 12 . Divisions may be in terms of neighborhoods. and similarity of quality. geographic. or availability needs. performance. they search for. or other benefits prospective consumers seek. operational lines. urban.identify and match their products with portions of the market that are health-or weightconscious. related processes used. some are similar. Many companies even market similar products of different grades or different accompanying services to different groups on the basis of product-benefit preference. special features. they are segmented along operational lines such as products made or sold. Although demographic. Factors used to segment industrial markets are grouped along different lines than those used for consumer markets. or rural. that is. These differences include centralized versus decentralized purchasing. For example. and will only locate in. service. and. differences in purchase practices provide the segmentation base. Because many retail chains are dependent on high-volume traffic. or even countries. volume used. suburban. markets can be partitioned in terms of the quality. or end-user applications. Product Benefit Segmentation is based on the perceived value or advantage consumers receive from a good or service over alternatives. counties. such as type of business. areas with a certain number of people per square mile. manufacturers of snow-removal equipment focus on identifying potential user segments in areas of heavy snow accumulation. they rarely provide enough specific information to make a decision on dividing the market. buyer-seller relationships. In other instances. cities. In still other instances. and organizational differences enable marketers to narrow their opportunities. Considerations related to geographic grouping may include the makeup of the areas. geographic location. A wide spectrum of businesses—from camera to Automobile Marketers—rely on this type of segmentation to match up with customers. Psychographic data. or technological base. size of the area. image. in particular. climate. or population. service. regions. states. company size.
Third. A company cannot serve all customers in a broad market such as computers or soft drinks. The fourth step is to zero in on one or more segments that are the best targets for the company's product(s) or capacity to expand. 13 . and (4) likely to be responsive. Many companies are embracing target marketing. and requirements for effective segmentation. it can help identify new opportunities for growth and expansion. After the selection is made. target one or more of these segments. Here we will examine levels of segmentation. Here sellers distinguish the major market segments. bases for segmenting consumer and business markets. Second. Once the market is broken into segments. patterns of segmentation. and develop products and marketing programs tailored to each instead of scattering. (2) potentially profitable. The customers are too numerous and diverse in their buying requirements. Market segmentation is the process of identifying key groups or segments within the general market that share specific characteristics and consumer habits. it can bring a company the broad benefit of a competitive advantage. the key is to gather information on and consider all segmentation bases before making a decision. Adopting a market-segmentation approach can benefit a company in several specific areas. it can result in more efficient use of marketing resources. focus advertising on one or two segments or niches. Once potential market segments are identified. market segment procedures. A company needs to identify the market segments it can serve effectively. the third step in the process is to reduce the pool to those that are (1) large enough to be worth pursuing.consumer benefits and preferred business practices are better at pinpointing buyer groupings—but they must be considered against the broader background. At the same time. it can give customer-driven direction to the management of current products. (3) reachable. the business can then design a separate marketing mix for each market segment to be targeted. companies can develop advertising programs for each segment. or develop new products to appeal to one or more of the segments. Thus. First.
Fourth. First. then the segment is not useful. 14 . marketers must determine if the segments are large enough to be profitable. these groups might be so small that they do not justify the expenses associated with market segmentation. works effectively only for certain kinds of products and services. marketers must be able to reach the segments through their advertising. and socioeconomic characteristics in order to determine their patterns of consumption and how they will respond to various marketing strategies. marketers must gauge the responsiveness of the segments and find out if a proposed segment would likely respond to a marketing campaign. If it is not probable that a segment will react to a promotion. to determine whether to segment a market. Third. then marketers have no way of reaching the segment and so the segment is superfluous. Second. While marketers can easily divide the total market into smaller groups. however. marketers examine consumers' interests. Catalog retailers and direct-marketing firms make up some of the key users of market segmentation. for example.Considerations for Market Segmentation To identify segments. If the members of a particular segment do not share interest in a common magazine or television show. preferences. The primary information marketers seek is why consumers purchase specific products or services but not others. which entails determining which consumers belong to specific market segments. marketers must find out if the market can be identified and measured. To whom do you sell and how do you promote sales? Market segmentation. although many other kinds of companies and organizations use this technique. tastes.
Fifth. 1. creating segments where consumer needs and wants are likely to change would not be productive. Market segments generally respond in a predictable manner to a marketing or promotion offer. or organizations. families. Market segment Identifiable group of individuals. Are alike in the way they: • Perceive value • View products and services • Purchase products and services Why Define A Market Segment? • Easier to understand customer needs 15 . Since it takes time to prepare a marketing strategy for specific segment and since it takes time for market segmentation to be profitable. Representation of Market Segment Market Demand Aggregate of the demands of all potential customers (market participants) for a specific product over a specific period in a specific market. sharing one or more characteristics or needs in an otherwise homogenous market. Set of potential customers: • Who have similar needs • Who reference each other when buying 2. marketers must determine if the segments will change in the near future. firms.
16 . There are general guidelines for selection of target markets: • Target market should be compatible with the organization goals and image. • The target market should match the marketing opportunity with the company’s resources. Market segmentation takes these difficulties into account. • A company should select a market wherein the number of competitors and their size are small. • An organization should consciously seek markets that will generate a sufficient sales volume at a low cost to result in a profit.• Focus “whole solution” to a narrower set of customer needs • Easier to become a leader in a smaller market (Big fish in small pond) • More effective use of marketing dollars • Generally more profitable Why Market Segmentation? A major key to a company’s success is its ability to select the most appropriate market segmentation because a company cannot target whole market. The total markets for many products is to varied-too heterogeneous. This variation Is due to the differences in buying habits ways to use the products motives for buying etc.
Drawbacks of Market Segmentation upto some extent • • It is an expensive proposition in both the production and marketing of products. A company can design products that really match the market demands. administrative expense goes up. Segmentation increases marketing expenses in several ways i.e. behavioristic. The basic criteria for segmenting a market is are customer needs. while geographic and demographic criteria are used to determine product design and regional focus. advertising cost goes up. and demographic basis. Advertising media can be used more effectively toward each segment of market. 17 . geographic. Small firm with limited resources can compete effectively in one or two market segments. Psychographic and behavioristic bases are used to determine preferences and demand for a product and advertising content. Segmentation Basis The market can be divided into segments by using four "segmentation basis": Psychographic.Benefits of Market Segmentation • • • • Better marketing job and efficient use of marketing resources. To find the needs of the customers in the market it is important to undergo a market research. Inventory cost goes up.
county. or operate in all but pay attention to local variations . In demographic segmentation . Geographic segmentation calls for dividing the market into different geographical units such as nation. The company can operate in one or a few geographic areas. North or South). urban or rural location. countries. and aims to define specific niches that require customtailored promotion. or neighborhoods .Different market variables Geographic segmentation Geographic basis focus on preferences contingent on regional factors. population density. nationality .. Demographics include personal characteristics such as gender. Demographic variables are the most popular 18 . age. social attributes (such as ethnicity and religion). marital status. income . generation . religion . family life cycle . It is one of the five common segmentation strategies. race . the market is divided into groups on the basis of variables such as age . occupation . regions.g. education . and income level. gender . states. and climate. Demographic Segmentation Market segmentation based on differences in demographic factors (which normally match consumer wants and needs) of different groups of consumers. Collecting and analyzing information according to the physical location of the customer or other data source. cities. such as region (e. and social class. Geographic segmentation is often used in marketing. since companies selling products and services would like to know where their products are being sold in order to increase advertising and sales efforts there.
and usage rates are often associated with demographic variables. such as going through a divorce. Gender differentiation has long been applied in clothing.bases for distinguishing customer groups. cosmetics and magazines. Life Stage Person in the same part of the life cycle may differ in their life stage. taking care of older parents. But Ford found that many mustangs were purchased by older buyers. and so on. It then realized that its target market was not the chronologically young but the psychologically young. One reason is that consumer wants. based partly on genetic makeup and partly on socialization practices. 19 . deciding to cohabit with another person. hairstyling. since there are now more women car owners. some manufacturers are designing features to appeal to women. For example. Another is that demographic variables are easier to measure. deciding to buy a new home. although they stop short of advertising the cars as women’s cars. preferences. Life stage defines a person’s major concern. The automobiles industry is beginning to recognize gender segmentation. Gender Men and women tend to have different attitudinal and behavioral orientations. the Ford Motor Company designed its Mustang automobile to appeal to young people who wanted an inexpensive sports car . Age and Life-Cycle Stage Consumer wants and abilities change with age. Age and life cycle can be tricky variables. going into a second marriage.
standing practice in such products and services categories as automobiles. reading habits. Demographers call these groups “cohorts”. and travel. cosmetics. income does not always predict the best customers for a given product. 20 .Income Income segmentation is long. clothing. boats. and defining events of that period. Each generation is profoundly influenced by the times in which it grows up. personalities and lifestyles. Many companies design products and services for specific social classes. Personality the distinctive character of an individual. used as a basis for the psychographic segmentation of a market in which individuals of relatively similar personality. politics. home. furnishings. clothing. In psychographic segmentation. Generation Many researchers are now turning to generation segmentation. Psychographic Segmentation The division of a heterogeneous market into relatively homogeneous groups on the basis of their attitudes. Social Class Social class has a strong influence on preference in cars. buyers are divided into different groups on the basis of lifestyle or personality or values. are grouped into one segment. beliefs. with similar needs or wants. movies. However. sometimes called "Stateof-Mind" Segmentation. leisure activities. People within the same demographic group can exhibit very different psychographic profiles. opinions. and retailers.the music.
benefits. user status. One of the five common segmentation strategies.Lifestyle People exhibit many more lifestyles than are suggested by the seven social classes. but lifestyle segmentation does not always work. patterns of spending money and time. Core values go much deeper than behavior or attitude. etc. attitude toward. loyalty status. patterns of buying and using. its objective is to define specific niches that require custom tailored promotion. People differ in attitudes. Values Some markers segment by core values. Companies making cosmetics and furniture are always seeking opportunities in lifestyles segmentation. and these affect the goods and services they consume. services. The company utilizes product features. Many marketers believe that behavioral variables-occasions. Behavioral Segmentation Market segmentation based on differences in the consumption behavior of different groups of consumers—their life-styles. at a basic level. and image making to transmit the product’s personality. buyer-readiness stage. or response to a product. interest. activities. and determine. 21 . usage rate. buyers are divided into groups on the basis of their knowledge of. use of. and attitude—are the best starting points for constructing market segments. They endow their products with a “brand personality” that corresponds to a target consumer personality. In behavioral segmentation. Personality Markers have used personality variables to segment markets. people’s choices and desires over the long term.
True Blues: branded products and reliable service. Market-share leaders tend to focus on attracting potential users because they have the most to gain. and fast food. For example in Pakistan tea is usually consumed at breakfast. Occasions segmentation can help firms expand product usage. (20%) User Status Markets can be segmented into nonuser. potential users. childbirth. Generation F: fast fuel. illness. career change—as giving rise to new needs.Occasions Buyers can be distinguished according to the occasions when they develop a need. (16%) 2. Road Warriors: premium products and quality service. A company can consider occasions of critical life events or transitions-marriage. Smaller firms focus on trying to attract current users away from the market leader Usage Rate 22 . ex-users. Home bodies: convenience. or use a product. Price Shoppers: Low price. relocation. (21%) 5. people vary considerably in the benefits they seek from the same product. Benefits Buyers can be classified according to the benefits they seek. (27%) 3. 1. purchase a product. and regular users of a product. first time users. fast service. (16%) 4.
they reinforce those who are positively disposed.heavy users/buyers being more important targets than 23 . they spend no time trying to change the attitudes of negative and hostile voters. Door-to-door workers in political campaign use the voter’s attitude to determine how much time to spend with that voter. Attitude Five attitude groups can be found in a market: enthusiastic. They thank to enthusiastic voters and remind them to vote. they try to win the votes of indifferent voters. and heavy product users. some are aware. Switchers: Consumers who show no loyalty to any brand. Usage Segmentation There are two ways of carrying out usage segmentation. some are informed. medium. Shifting loyals: Consumers who shift from one brand to another. 2. Buyer-readiness stage A market consists of people in different stages of readiness to buy a product.Markets can be segmented into light. . Heavy users are often a small percentage of the market but account for high percentage of total consumption Loyalty Status Consumers have varying degrees of loyalty to specific brands. indifferent. and companies. Hard-core loyals: Consumers who are buy one brand all the time. and some intend to buy. firstly customers are split according to their weight of use. 4. some desire the product. some are interested. Buyers can be divided into four groups according to brand loyalty status: 1. Split loyals: Consumers who are loyal to two or three brands. negative. 3. stores. The relative numbers make a big difference in designing the marketing program. positive. Some are unaware of the product. and hostile.
Married. Older. 3-4. Health First time user Positive 24 Working class. Older. Income Occupation Education Religion Race Nationality Psychographic Social class Lifestyle Behavioral Occasions Benefits User status Attitude towards product Parties.000+ From middle class to upper class Schools.30. not just the number of contacts. Universities Major religion of Islam. Experience’s makers and Strugglers Married with no children under 18. Colleges. Female 1-2. Sports and Regular Occasions Quality. Christianity and Hinduism and small percentage of others Asian Pakistani Asia Pakistan All major cities of Pakistan Urban Hot and Dry . Believers. Patterns of Market Segmentation Segmentation Variables Data Geographic World region Country Cities Density Climate Demographic Age Gender Family size Family life cycle All ages Male. Single. no children. Young. Married with children. Young. Birthdays. Economy. 5+ Young. Actualizes. Older. Strivers. This segmentation can be carried out directly on customer databases and can be extremely powerful in focusing activity based on the value to the business. Other Rs. Single. Upper class. Married with children. Fulfilled. Taste.light users. Middle class. Achievers.
hoping to appeal to all groups. Diffused Preferences: At the other extreme. one way is to identify preference segments. competitors would enter and introduce brands in the other segments. it must decide how to divide the market. We would predict that existing brands would be similar and cluster around the middle of the scale in both sweetness & saltiness. For example cookies buyers are asked how much they value sweetness and saltiness in biscuits as two product attributes. bearing in mind that market segmentation seeks to minimize the differences within a segment and maximize the differences among segments. simple divisions along age. 1. Three different patterns can emerge. It might position in the center. If the first firm developed only one brand. The Segmentation Process Once a company has gathered information from these segmentation bases. indicating that customers vary greatly in their preferences. Clustered Preferences: The market might reveal distinct preference clusters. Consequently. consumer preferences maybe scattered throughout the space. gender. depending on the product or service to be marketed. each positioned in a different segment. called natural market segments. The market shows no natural segments.It might develop several brands. 3. or geographic lines alone may yield segments that are too vague to be 25 . 2.Market segments can be build up in many ways. Homogeneous Preferences: shows a market where all the consumers have roughly the same preferences. The first firm in this market has three options. The first brand to enter the market is likely to position in the center to appeal to the most people. It might position in the largest market segment (concentrated marketing).
marketing managers must select the segmentation bases they will use to develop the segments. • To begin segmenting the market. On the other hand. profitable market segments are established. marketers must look at both age and gender: the majority of beer drinkers are both young and male. marketers can develop and launch advertising campaigns that appeal to the various segments. Because this process can be laborintensive and require advanced knowledge of statistics. they may compile a large array of information using all the segmentation bases and use this information to group consumers in various segments. by preparing questionnaires and samples and by assessing the response to them. • Once relevant. For example.” 26 . depending on the products or services to be marketed. marketers may have to consider several characteristics or clusters of characteristics in order to divide the market into useful segments. • Next. marketers might benefit from considering targeting smaller segments or segments ignored by competitors. marketers can target the segments they believe will offer the best opportunities for growth given their products and resources and the ones they believe that correspond to the products being marketed the best. Instead. stable. Companies tend to choose the largest segments. Finally.of use. when considering beer consumption. although the segments with the most consumers are not always the most profitable and usually have the most competition. such as low-income consumers. Marketers may select a few segmentation bases they believe are the most relevant at the outset and develop market segments using them. reachable. Using this information. marketers try to determine the most fruitful segments— the ones with greatest similarities within them. which is frequently referred to as “niche marketing. companies often rely on outside firms or artificial intelligence technology to produce meaningful market segments. Consequently. marketers conduct any primary market analysis they may need.
After collecting a large amount of information about their customers. To do so. If the segment is properly defined for a specific product or service.g.g.Method of Segmentation A company also may opt to target just one segment of the market. then developing promotional strategies and reaching the target segment should be relatively easy. marketers must integrate the method into an overall marketing strategy.. if it is a computer supplier to home users or businesses—and creates a marketing program that will help a company achieves or maintain this position. The information used to help create the market segments should help marketers choose among promotional techniques (e. The marketing strategy will try to make the target product or service appeal to the target segment through an advertising campaign developed based on segmentation information such as age. Since concentrated marketing costs less than differentiated marketing. could concentrate solely on the home-user segment of the market and ignore the needs of the other segments. and distribution strategies. gender. marketers can plan promotions and products that will appeal to various segments over a long time by determining what products a segment wants in the future and offering them at the appropriate time 27 . employing the market segmentation method of concentration. advertising. This information also should help marketers choose among various advertising media. After choosing a method of market segmentation. a company might find that its competitors are not reaching specific segments and decide to target this segment or niche exclusively. Marketers also consider what a company's strategic position in a market is—e. the computer maker would have to offer products that meet home-user needs at prices these consumers could afford.. direct marketing. and sales promotion). it may appeal to small businesses in particular. A computer maker. for instance. pricing strategies. publicity. After considering various segmentation bases and conducting research. or location.
which is determined from understanding the needs of the customer and the willingness of the customer to pay for each function. define the product 2. 28 . achieve the target 4. set the target 3. In addition. maintain competitive cost The stages are market-driven: • • • • Define the Product answers the fundamental questions of “What are you selling?” “To whom?” “What do they want it to do?” Set the Target addresses the issue of “What will they pay for it?” “What should it cost to produce?” Achieve the Target is concerned with “How can we get there?” “Are we getting there?” Maintain Competitive Cost deals with “How can we stay ahead?” Entrepreneurial Strategy: • Define market segment small enough to allow you to capture 25% to 30% share • Be a “Big fish in small pond” • Ideal: Be the only supplier in a very narrowly defined market.Target Costing Is a disciplined process that uses data and information in a logical series of steps to determine and achieve a target cost for the product. The Basic Process: the basic stages in the Target-Costing process: Process 1. the price and cost are for specified product functionality.
Substantial: The segments are large and profitable enough to serve. for an automobile manufacturer to develop cars for people who are under four feet tall. Accessible: The segments can be effectively reached and served. table salt buyers could be divided into blond and brunette customers. and would pay only one price for salt. but hair color is not relevant to the purchase of salt. Differentiable: The segments are conceptually distinguishable and respond differently to different marketing-mix elements and programs. for example.Effective Segmentation Not all segmentation is useful. they do not constitute separate segments. market segment must be: Measurable: The size. believe all salt is the same. this market would be minimally segmentable from a marketing point of view. and characteristics of the segment can be measured. If married and unmarried women respond similarly to a sale on perfume. purchasing power. 29 . Actionable: Effective programs can be formulated for attracting and serving the segments. Furthermore. A segment should be the largest possible homogeneous group worth going after with a tailored marketing program. To be useful. It would not pay. For example. if all salt buyers buy the same amount of salt each month.
Companies often favor this method of marketing to the one-size-fits-all mass marketing approach. Marketing is one of the most important functions in business. companies can develop advertising programs for each segment.Market segmentation is the process of identifying key groups or segments within the general market that share specific characteristics and consumer habits. This Project mainly focuses on Various Market Segmentation done by Nokia Co. In a nutshell it consists of the social and managerial processes by which products (goods or services) and value are exchanged in order to fulfill the needs and wants of individuals or groups. or develop new products to appeal to one or more of the segments. Nokia provides equipment. behavioristic. Even after a better part of a century the debate continues. driving the growth and sustainability of the broader mobility industry. because it allows them to target specific groups that might not be reached by mass marketing programs. and demographic basis. devices and solutions for imaging. geographic.Psychographic and behavioristic research. games. Once the market is broken into segments. To find the needs of the customers in the market it is important to undergo a market research. 30 . Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones. Academics does not have one commonly agreed upon definition. solutions and services for network operators and corporations. media and businesses. focus advertising on one or two segments or niches. It is the discipline required to understand customers' needs and the benefits they seek.Introduction Introduction to Project This Project deals with Various Market Segmentation done in Mobile Industries. Ltd. Nokia is a world leader in mobile communications.The basic criteria for The segmenting a market is are customer needs. The market can be divided into segments by using four "segmentation basis": Psychographic. in the Market.
while geographic and demographic criteria are used to determine product design and regional focus. segments its market and focuses its products efficiently towards the customers of a particular segment. Review of Literature This literature review will analyze the project on ‘Market Segmentation of Nokia’ and on past and current research that has been done which relates to the market segmentation. opportunities and threats of Nokia. O b j e c t i v e of t h e S t u d y The objectives of the present study are:1) To know about Nokia Company. This study also shows how Nokia. 3) To know about marketing. 31 . a mobile giant. 2) To know about the strengths. weaknesses. 4) To know about market segmentation. It is important to understand why people and market needs to be divided into different segments.bases are used to determine preferences and demand for a product and advertising content. 5) To know the market segmentation used by Nokia. as they know that this is what they will have to do. This critical analysis of literature contains data about marketing and segmentation strategies collected from various sources. This appeals to potential customers and also marketers. A segmented market is seen as an opportunity to effectively focus on particular customers. This gives a competitive advantage to the company by serving its customers well.
– – Primary data Secondary data. Marketing research is the function which links the consumer. customer and public to the marketer through information. Its purpose is to question through the application of the scientific method. There are two types of data collection method use in my project report. 2) The present study suffers from all the limitations of case study method. the information provided 2nd hand about Nokia. monitor marketing actions. For my project.information used to identify and define marketing opportunities and problems generate. 32 . I decided on primary data collection method by approaching customers directly and through references to know their views about the company. refine. monitor marketing performance and improve understanding of market as a process. and evaluate marketing actions. for collecting information regarding project under study.Methodology Research always starts with a question or a problem. Limitations of Study 1 ) The study is based on secondary data. It is a systematic and intensive study directed towards a more complete knowledge of the subject studied. Secondary data collection method was used by referring to various websites.
Multimedia. in 2004 it was 34. “The year 2004 was demanding for Nokia. Nokia is making good progress in these areas. demand-supply management and the company’s ability to offer end-to-end solutions. In 2004. Nokia′s personnel increased by a total of 4146 employees. Nokia Group has consisted of four different business groups: Mobile Phones. Enterprise Solutions and Networks. 33 . its company structure and overall view on the size and sales of the company & also the Various Market segmentation Strategies followed by them. the company set five top priorities in the areas of customer relations. and is now better positioned to meet future challenges.8% in 2003. “In addition. Nokia’s turnover for the third quarter of 2005 was 8403 million euro from which mobile phones brought in 62%. Since January 2004. Asian Pacific and China (25%) and Americas (20%).Introduction The company I have chosen to analyse in my project is the mobile phone giant Nokia.” In the year 2004 Nokia’s net sales for mobile phones were 18507 million euro. In response. Nokia employed 55505 people worldwide. there are two horizontal groups that support the mobile device business groups: Customer and Market Operations and Technology Platforms.8% and in the third quarter of 2005 it was 36%. At the end of 2004. Nokia’s market areas were Europe/Africa/Middle East (55% of net sales). Nokia’s market share in Europe was 45. product offering. This project tells us briefly what Nokia actually is. which went down 12% from 2003. multimedia 17%. The average number of personnel for 2004 was 53511. R&D efficiency. Enterprise solutions 2% and Networks 9%.
Reliable 3. • We take a very human approach to technology 1. anywhere. • Our promise is to help fulfil this need. Our Approach • Consumer understanding drives us. shared experiences. Experiences to fall in love with. then design. Internet innovation. • In 2015. • It’s a world of experiences. media and services will be available anytime. 34 . • Internet is our quest. 5 billion people always connected. and 100 fold more network traffic. to help them feel close to what matters to them. Simple 2. creativity. Our Promise • We help people feel close to what matters to them. • One of our basic needs as human beings is the need to communicate and share. Intuitive 4. We act on our consumer insights.Nokia Vision/Mission Statement Our Vision • A world where everyone can be connected. • We observe first.
wireless LAN and a line of satellite receivers.Connecting People ! Nokia Corporation (NYSE: NOK) is one of the world's largest telecommunications equipment manufacturers.•Nokia wants to bring the best of internet to mobile . •Transform the devices people use. and WCDMA. Shortly after World War I Finnish Rubber Works acquired Nokia wood mills as well as Finnish Cable Works. Transform. With headquarters in Keilaniemi of Espoo. Nokia provides mobile communication equipment for every major market and protocol. Nokia’s promise is to help people feel close to what matters to them. Nokia was established in 1865 as a wood-pulp mill by Fredrik Idestam on the banks of Nokia rapids. this Finnish telecommunications company is best known today for its leading range of mobile phones. CDMA. a producer of 35 . Build • Grow the number of people using nokia devices. voice over IP. ISDN. broadband access. • Build new businesses • Our business and people’s expectations for mobile devices and services are changing. Nokia also produces mobile phone infrastructure and other telecommunications equipment for applications such as traditional voice telephony. About the Company Nokia. Finnish Rubber Works established its factories in the beginning of 20th century nearby and began using Nokia as its brand. Our Resolution-Grow. including GSM. professional mobile radio. Finland.
The name Nokia originated from the river which flowed through the town of the same name (Nokia). diminished Nokia's public image in Finland. a digital switch for telephone exchanges. however. the company ran afoul of serious financial problems in the 1990s and streamlined its manufacturing of mobile phones. Nokia also began developing mobile phones for the NMT network. Ltd. Nokia signed a contract with BenQ. at least. In the 1970s Nokia became more involved in the telecommunications industry by developing the Nokia DX 200.telephone and telegraph cables. mobile phone infrastructure. such as televisions and personal computers. unfortunately. and other telecommunications areas. these operations were sold to International Computers. which are scheduled to retail by the end of 2005. This. All three companies were merged as Nokia Corporation in 1967. divesting itself of other items. one television show critical of Nokia. In 2004. However. Nokia offered a series of personal computers called MikroMikko. which was later merged with Fujitsu-Siemens AG. Nokia joined other mobile phone manufacturers to embrace Taiwanese Original Device Manufacturers. Recently. 36 . although on a significantly smaller scale. and produced a number of court cases along with. a Taiwanese Original Device Manufacturer. to develop three high-end mobile phones. In the 1980s. (ICL). Nokia resorted to similar streamlining practices with layoffs and organizational restructuring.
Due to the European industrialization and the growing consumption of paper and cardboard Nokia soon became successful. Nokia's history contains many achievements that were the first of their kind in the world. Nokia provided GSM services to 90 operators across the world. Mobira Cityman. and later on in 1922. Nokia created the NMT mobile phone standard in 1981 and launched the first NMT phone. Finnish Cable Works joined them. The success with the NMT and GSM technologies and the products they spawned secured Nokia's position as the world's leading telecommunications company.was introduced.a precursor for all Nokia’s current GSM phones . Early investments in R&D were thus handsomely rewarded. The company delivered the first GSM network to Radkilinia. Another significant move of the company during this period was the divestment of its non-core operations like IT. Many milestones have been experienced in the mobile phone business since the 80’s. when engineer Fredrik Idestam established a woodpulp mill in Southern Finland and started manufacturing paper. In 1920. In the 1990s. All the three companies were merged in 1967 to form the Nokia Group.mobile phones and telecommunications networks. Nokia was able to offer advanced products from the beginning of the 90s.mobile phones and telecommunications networks. In the 1990s. 37 . Nokia provided GSM services to 90 operators across the world.History of Nokia Nokia's history started in year 1865. The company focused on two core businesses . Nokia has been involved in making the world's first NMT network and the world's first pocket-sized mobile phone. in 1987. a Finnish company in 1991. Finnish Rubber Works became a part of the company. and in 1992. The world's first device to use the Symbian OS was also produced by Nokia. Nokia was Actually founded in 1965 by Fredrik Idestam in Finland as a paper manufacturing company. Nokia 1011 . The company focused on two core businesses . The list of Nokia's milestones provided a good insight in the history of wireless communications. Another significant move of the company during this period was the divestment of its non-core operations like IT. In 1895 Fredrik Idestam handed over the reins of the company to his son-in-law.
but it took a merger with a cable company and a rubber firm to set the new Nokia Corporation on the path to electronics… 1865: The birth of Nokia Fredrik Idestam establishes a paper mill at the Tammerkoski Rapids in south-western Finland. where the Nokia story begins. the company would become a major industrial force. The extensive range of mobile phone models.Nokia ensured its continued growth by reforming its production in the middle of the 90s. Company Profile Nokia’s first century:1865-1967 The first Nokia century began with Fredrik Idestam's paper mill on the banks of the Nokianvirta river. 1912: Finnish Cable Works founded Arvid Wickstrom starts Finnish Cable Works. industry heavyweight Former Olympic wrestler Verner Weckman becomes President of Finnish Cable Works. The new phone models and standardized technical solutions made it possible to produce an increasingly extensive product range more effectively. 1898: Finnish Rubber Works founded Eduard Polón founds Finnish Rubber Works. covering all user groups. the foundation of Nokia's cable and electronics businesses. 1937: Verner Weckman. which will later become Nokia's rubber business. Between 1865 and 1967. 38 . is one of the reasons why Nokia became the market leader.
. selling and operating computers.a pulse analyzer for nuclear power plants.. 1967: The merger Nokia Ab. 1981: The mobile era begins 39 . 1979: Mobira Oy. 1962: First in-house electrical device The Cable Works electronics department produces its first in-house electrical device . Nokia led the way with some iconic products. Finnish Rubber Works and Finnish Cable works formally merge to create Nokia Corporation. The move to mobile:1968-1991 The newly formed Nokia Corporation was ideally positioned for a pioneering role in the early evolution of mobile communications. early phone maker Radio telephone company Mobira Oy begins life as a joint venture between Nokia and leading Finnish television maker Salora. As European telecommunications markets were deregulated and mobile networks became global.1960: First electronics department Cable Works establishes its first electronics department.
Mobile revolution:1992-1999 In 1992. This was probably the most important strategic decision in its history. is built. As adoption of the GSM standard grew. 1982: Nokia makes its first digital telephone switch The Nokia DX200. 1984: Mobira Talkman launched Nokia launches the Mobira Talkman portable phone. the first international mobile phone network. 1992: Nokia’s first GSM handset 40 . new CEO Jorma Ollila put Nokia at the head of the mobile telephone industry’s global boom – and made it the world leader before the end of the decade.. 1987: Mobira Cityman – birth of a classic Nokia launches the Mobira Cityman. 1992: Jorma Ollila becomes President and CEO Jorma Ollila becomes President and CEO of Nokia.Nordic Mobile Telephone (NMT). focusing the company on telecommunications. the company’s first digital telephone switch. the first handheld NMT phone.. 1991: GSM – a new mobile standard opens up Nokia equipment is used to make the world’s first GSM call. Nokia decided to focus on its telecommunications business. goes into operation.
the first phone to feature the Nokia Tune. the Nokia 7110. 2002: First 3G phone Nokia launches its first 3G phone. Nokia now:2000-today Nokia’s story continues with 3G. multimedia devices and a look to the future. 1999: The Internet goes mobile Nokia launches the world's first WAP handset. 1997: Snake – a classic mobile game The Nokia 6110 is the first phone to feature Nokia’s Snake game.. the Nokia 1011. the Nokia 6650. 2003: Nokia launches the N-Gage Mobile gaming goes multiplayer with the N-Gage. mobile multiplayer gaming. 41 . using a Nokia GSM handset. 1994: Nokia Tune is launched Nokia launches the 2100.Nokia launches its first GSM handset. 1998: Nokia leads the world Nokia becomes the world leader in mobile phones. 1994: World’s first satellite call The world’s first satellite call is made..
Nokia launches Ovi. Nokia and Siemens announce plans for Nokia Siemens Networks. 42 . the Nokia Nseries. 2005: The billionth Nokia phone is sold Nokia sells its billionth phone – a Nokia 1100 – in Nigeria. Jorma Ollila becomes Chairman of Nokia’s board.2005: The Nokia Nseries is born Nokia introduces the next generation of multimedia devices. Devices & Services. 2006: A new President and CEO – Nokia today Olli-Pekka Kallasvuo becomes Nokia’s President and CEO. 2007 Nokia recognized as 5th most valued brand in the world. Global mobile phone subscriptions pass 2 billion. Nokia Siemens Networks commences operations. its new internet services brand. 2008 Nokia's three mobile device business groups and the supporting horizontal groups are replaced by an integrated business segment.
it is an important part of the strategic planning process. is a Strategic planning tool used to evaluate the Strengths. or weaknesses (W). Such an analysis of the strategic environment is referred to as a SWOT analysis. As such. it is instrumental in strategy formulation and selection. and those external to the firm can be classified as opportunities (O) or threats (T). with double the market share of nearest competitr Size should enable Nokia to amortize R&D costs and to get cost advantages Brand position: probably one of the top 20 brands in the world 43 . 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 smartphones sold in the next 4 years. SWOT Analysis of Nokia Modern SWOT Analysis A SWOT analysis conducts an external and internal scan of Nokia's business environment. Weaknesses.SWOT Analysis SWOT Analysis. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. • • • 33% market share still the largest cell phone vendor by far. Opportunities. and Threats involved in a Project or in a Business venture. Environmental factors internal to the firm usually can be classified as strengths (S).
Nokia was reluctant to produce a clamshell until this year. nGo Bird) ODMs (HTC and others) enabling carriers to leverage their customer power bypassing the handset vendor. Leverage its infrastructure business to get preference and a stronger position with carriers Threats • • • Late in the game in 3G creates a risk to be displaced by leaders like Motorola. Operators want to lessen their dependency on handset vendors and the dominance of Nokia. when it launched its first model. Slow to adopt new ways of thinking: a good example are clamshell phones which are preferred by many customers. 44 . LG. including India and other countries. Orange. which they are just entering.Weaknesses • • • The N-Gage is considered a flop Being the market leader and its increase role in Symbian is giving Nokia a bad image. NEC and others. as well as 3G and Edge New growth markets where cell phone adoption still has room to go. and many other operators globally are selling their own brand of phones. much like Microsoft in the PC industry. Opportuntiies • • • Increase their presence in the CDMA market. Asian OEMs who are entering the market very aggressively (TCL. O2.
Production Units Networks technology • China • Finland • Germany • India Mobile devices and technology • Brazil • China • Finland • Great Britain • Hungary • India • Mexico • Romania • South Korea 45 .
Divide and rule seems to be working! According to a report published in May 2001. have studied the market and segmented it precisely. However. has divided the market into four segments: • Hi-fliers: The biggest segment as far as Nokia is concerned consists of 'Hi-Fliers'. Industry observers attribute the success of handset manufacturers to shrewd market segmentation. amidst this entire melee one cannot ignore the efforts of the handset manufacturers. Both service providers and handset manufacturers have been complementing each other well with each fuelling the demand for the other. the segment looks for data transmission and other business- 46 .Market Segmentation for Nokia The decibel levels in the cellular market are increasing with service providers stepping on the gas. corporate executives who use a mobile phone to increase productivity at work. arguably the biggest player in the world. With aggressive marketing by service providers. handset manufacturers are using precise segmentation to carve up their share. the all-India cellular subscriber figures stand at 38. If current decibel levels in the market are anything to go by. Segmentation of Nokia Connecting people! Nokia.Nokia.514. Not to be left behind. this figure is expected to increase at a very rapid rate. Ericsson and Motorola. these expectations are well on the way to being met.71. Aged between 25-45. The big three of the mobile handset market .
these early adopters are 'Trendsetters' who are most receptive to advanced models. In most cases. • Social contact: The third segment for Nokia is the upwardly mobile. This was the segment at which WAP-enabled models were aimed. the company sponsors the handset. hence price is not a major consideration. Today's youth and affluent housewives constitute two major chunks of the segment. sociallyconscious segment that uses a mobile to stay in touch. 47 . • Trendsetters: In any technology adoption cycle. • Assured: The fourth and last segment as defined by Nokia comprises of CEOs. high-profile celebrities. industrialists and other high "net worth" individuals. The fact that the segment cannot do without a mobile phone makes it the 'assured' segment. the first segment to adopt an emerging technology is dubbed as 'the early adopters'. For Nokia.related features.
Geographic World region – Asia Country – India Cities – Reach out maximum places Demographic Age – All age group Gender – Male. Female Income – All income groups Occupation – Every sector Religion – Irrespective of religion Psychographic Social class – All class of people Lifestyles – Urban. and even far villages Behavioural Benefits – Quality Loyalty status – Strong Nokia mobile phones by Series • Nokia 1000 series 48 . rural.
1011 · 1100/1101 · 1110/1110i · 1112 · 1200 · 1208 · 1600 · 1610 · 1650 • Nokia 2000 series
2110i · 2115i · 2310 · 2600 · 2600 classic · 2610 · 2630 · 2650 · 2651 · 2700 classic · 2730 classic · 2760 • Nokia 3000 series
3100/3100b/3105 · 3110 · 3110 classic · 3120 · 3120 classic · 3155 · 3200/3200b/3205 · 3210 · 3220 · 3230 · 3250 · 3310 · 3315 · 3330 · 3410 · 3500 classic · 3510/3590/3595 · 3510i · 3600/3620/3650/3660 · 3600 slide · 3720 classic • Nokia 5000 series
5070 · 5100 · 5110 · 5130 Xpress Music · 5200 · 5210 · 5220 Xpress Music · 5230/5235 · 5300 · 5310 Xpress Music · 5320 · 5330 Mobile TV Edition · 5500 Sport · 5510 · 5530 · 5610 · 5700 · 5730 · 5800 • Nokia 6000 series
6010 · 6020/6021 · 6030 · 6070 · 6085 · 6100 · 6101 · 6103 · 6110/6120 · 6110 Navigator · 6111 · 6120/6121/6124 classic · 6131/6133 · 6136 · 6151 · 6170 · 6210 · 6210 Navigator · 6220 classic · 6230 · 6233 · 6255i · 6260 Slide · 6265 · 6270 · 6275i · 6280/6288 · 6290 · 6300 · 6300i · 6301 · 6303 classic · 6310i · 6315i · 6500 classic · 6500 slide · 6555 · 6600 · 6600 fold · 6600 slide · 6610i · 6620 · 6630 · 6650 · 6650 fold · 6670 · 6680 · 6681/6682 · 6700 classic · 6710 Navigator · 6720 classic · 6730 · 6800 · 6810 · 6820 · 6822 • Nokia 7000 series
7110 · 7160 · 7210 · 7250 · 7280 · 7360 · 7380 · 7390 · 7500 Prism · 7600 · 7610 · 7650 · 7700 · 7710 · 7900 Prism
Nokia 8000 series
8110 · 8210 · 8250 · 8310 · 8600 Luna · 8800 · 8850 · 8910 • Nokia Communicator
9000/9110/9110i · 9210/9290 · 9210i · 9300/9300i · 9500 • C6 • Nokia Eseries Nokia Cseries
E50 · E51 · E52 · E55 · E60 · E61/E61i · E62 · E63 · E65 · E66 · E70 · E71 · E72 · E75 · E90 Communicator • Nokia Nseries
N70 · N71 · N72 · N73 · N75 · N76 · N78 · N79 · N80 (Internet Edition) · N81 (N81 8GB) · N82 · N85 · N86 8MP · N90 · N91 (N91 8GB) · N92 · N93 · N93i · N95 · N95 8GB · N96 · N97 • Nokia Xseries
X3 · X6 • Internet Tablet
770 · N800 · N810 (WiMAX Edition) · N900 • N-Gage
Classic · QD · QD Silver Edition • Others 50
• • •
Vertu luxury phones Concept Nokia Morph · Nokia Aeon · Nokia 888 · Nokia Eco Sensor · Nokia SURV1
Lifestyle and Psychographic Basis for Nokia
The descriptors of segmentation are: • • •
Activities Interests Opinions
The Segmentation of Nokia conducted on the basis of Price
The price ranges are as follows: • • • • • • 1000 – 5000 5000 – 9000 9000 – 15000 15000 – 21000 21000 - 30000 30000 - above
Range 1: (1000 – 5000) Workers and labourers • nokia 1650: rs 3,750 51
• • • • • • • • • nokia 1200: rs 2. They only celebrate events like Eid Ramzan and weddings. They have hobbies like listening to radio. These phones do not have additional features such as camera. blue tooth or infra red. as they don’t get spare time for themselves. 52 .800 nokia 1600: rs 3.950 nokia 2626: rs 4. Activities: • • • • These people are mostly laborers. plumbers.650 nokia 1112: rs 2. security and watch men.400 nokia 1208: rs 3. Some students also use cell phone from this range as they have the fear of snatch of mobile phone. security guards and watchman. Mobile phones falling in this category are simple phones who only meet the purpose of messaging and calling.050 nokia 1110i: rs 2625 nokia 3110: rs 4750 Features: • • • The nokia phones falling in this range are mostly used by the manual workers because they cannot afford a high price mobile phone. • The only feature available in this phone is FM radio. construction sites and houses etc. They have no other special hobby.100 nokia 2310: rs 3.000 nokia 2610: rs 3. which is most preferred by laborers. They work in places like factories.
They are strong followers of the culture. They live in areas like lyari. They trust their leaders blindly. They have no club memberships They only shop for things that are essential and required for daily use. They work to on daily and hourly basis.• • • • They don’t have any vacations as they belong to the lower class who works day and night to earn money. small parks and seaside. Opinion: • • • • They are not concerned about themselves. The only recreation facility available to them is zoological garden. They work in factories. They often work on daily or hourly basis. They don’t follow any fashion. their only priority is their family. They don’t spend money on hoteling. They are not sure about their future so they tend to live in present and think only about the present. They tend to act very emotionally towards social issues. construction site and are not well paid. 53 . They cannot afford any special entertainment but the only entertainment available to them within their range is FM radio. Interests: • • • • • • They have big families. lalokheth and landhi etc. They pass their cultural values to their ancestors and give great importance to them.
This segment offers up to maximum 3 hours of talk time. Affordable. business tool for any occasion. GPRS and Expandable Memory. Rs 6250 Nokia 6080. including emails or news clips. this segment offers EDGE connectivity so they can faster access information. EDGE. Rs 5850 Nokia 7360. They earn a reasonable amount of money which is limited and spent on their personal and daily use. The core feature of this segment is Audio Video Player. They are mostly middle managers in factories and offices. With the VGA camera. They are part of parties and dinners organized by friends or in offices. The need to remain in connection with internet. 54 Activities: .Range2: (5000 – 9000) middle managers • • • • • • Nokia 2630. users can capture special moments with images and video clips or connect to their colleagues using push to talk technology. Rs 5350 Nokia 6020. They tend to spend their free and leisure time with their friends on dinner. FM Radio Camera. Rs 5800 Nokia 6070. They spend most of their time surfing on internet. They do not keep mobile for show off purpose. Rs 8100 Features: • • • • • • • • • • • The main users of this segment are middle managers because they have limited and average salary and cannot afford to spend it on unnecessary expenses. Rs 7050 Nokia 3110 Classic.
They have education of bachelors or bcom degree. they go out with friends on dinners and parties. They do not go out of the city for vacations as they want to relax and get a break from office work. spend their salary on themselves.• • • • They like to spend their vacations in their home. Cricket and games like FIFA are of their major interest. They go out to eat at places like bundoo khan. KFC. They are not politically loyal to any specific group neither are they affected by the political movements of the group. For entertaining themselves. Their main focus is on their future development. 55 . They tend to adopt fashion which are in their range and suitable to them. Opinions: • • • • • • They are self oriented. McDonalds. Most of their salaries are spent on their personal use. They want to achieve success in short time. They like to watch movies and internet surfing is also common. They are highly determined and focused about their work. Sadder etc to shop for themselves. The have a strong focus on the work they are doing. They are moderate followers of fashion. They are always thinking about profit maximization. They go out on places like Tariq road. Interests: • • • They are the earning members of their family but their salaries are spent mostly on their personal use. They are confident are have a strong belief in themselves. They are not strong followers of culture.
they like to click photos of family and friends and they want to save their memories. Rs 11700 Nokia 5300. FM Radio. Rs 14900 Features: • • The cell phones falling in this range are mostly used and popular in university or college students.Range 3: (9000 – 15000) university students • • • • • • • • • • • • • • • Nokia 5200. Rs 11900 Nokia 7500 Prism. • They are popular among this group because they have high resolution mega pixel camera. Rs 9750 Nokia 7610. These cells have a stylish look and have all the essential features such as Audio Video Player. Rs 12300 Nokia 6300. Rs 13200 Nokia 7373. GPRS and Expandable Memory. Rs 9400 Nokia 6151. • • They have high memory. Rs 10500 Nokia E50. Bluetooth. Rs 13500 Nokia E62. Camera. Rs 11350 Nokia 6131. EDGE. Rs 11350 Nokia 6230i. They are stylish phones usually used to show off their personality and attitudes. 56 . Rs 12650 Nokia N72. Rs 13500 Nokia 6120 Classic. Rs 10150 Nokia 6111. Rs 12000 Nokia 6233. so they can download songs videos and share it with their friends.
they like to be popular and recognized. Interests: • • • • • The university students have high level affiliation for their friends.Activities: • • • • • • • These students spend most of their time in universities and their friends. They do not have any job as they are studying. burgers. millennium mall and snooker clubs etc. They are active members of societies made in universities and college. watch movies. Their main hobby is to sleep. tikkas are their favorites. forum etc. they adapt themselves with the latest fashion. listening to music. chatting and orkutting and watching movies. They go out to hoteling on regular basis. They go out to places like arena. they like net surfing. They like to eat junk food. 57 . They like to keep these cell phones to show off and to give impression about their status. they sometimes do internships. They spend less time with their families due to their busy schedules. Their main source of entertainment is internet. Opinion: • They are the most self-confident people. They are fashion conscious and shop from places like dolmen mall. going out with friends and partying. pizzas. They play internet games and cricket. They are most fashion conscious people.
Rs 17300 Nokia 5700. expanded memory. spending nights at friends place and coming to home at late hours. Rs 16000 Nokia 5310. These Music phones offer dedicated music or gaming keys. They are less culture oriented. large LCD screen and extended battery performance to provide quick and easy access to entertainment content. Range 4: (15000 – 21000) music lovers/ high memory • • • • • • • • • Nokia N70 Music Edition. 58 . Rs 20000 Nokia N73. disagreement with family or parents on various issues.g. For e. Rs 20500 Features: • • • This segment contains cell phones for music lovers.Rs 16750 Nokia 7390. These mobile phones are specifically optimized for entertainment. Rs 16750 Nokia 3250 (1GB). Rs 16400 Nokia 6288. They easily adapt to western culture. They are care free and do not spend time worrying about their future. • • • They use foreign products of high quality which shows status and image.• They have social issues like conflict between friends. Rs 18400 Nokia E51i. Rs 20000 Nokia 5610. music and games.
Interests: • • • • Their social circle includes people who are also interested in music and movies. burgers. For entertainment purpose. They have social issues of recognition and self esteem. They like to take part in music events such as concerts or functions. Opinions: • • • • They are highly confident and are mostly wannabe’s. they are trend followers and like to adopt fashion that is most popular and unique. They go out for shopping at places like forum.• These phones offer up to 18 hours of music playback. They are most weak followers of culture. dolmen. They easily adopt western culture. They are most fashion conscious people. they go out to concerts and attend various functions They are the most fashion conscious people.000 songs on an optional 4GB microSD card and dedicated music keys. donuts etc. They use high quality products that show off their image. They like to play games on their mobile phones. memory for up to 3. And forget their cultural values. Activities: • • • • • • They like to listen to music and download songs from the GPRS. watching TV and listening to music. They spend their pocket money on buying products that show attitude and their image. They are fond of eating pizzas. They download movies and share it with their friends. 59 . and millennium mall. They look themselves as future singer and their main focus is on becoming another singing idol. They spend their vacations surfing on net.
Rs 22700 Nokia 6500 slider. Rs 26800 Nokia N81. These people are young and adapt new changes quickly. Rs 27200 Features: • • • • • • Young and energetic business men fall into this category of age 30 – 40.Range 5: (21000 – 30000) communicator/ high and young business people • • • • • • • • • • Nokia E65. Rs 25950 Nokia N76. They can take their office work with them and can even download heavy files. Activities: • They are young business people who are business oriented. Rs 23250 Nokia E61i. Rs 22500 Nokia 9300i. Rs 22700 Nokia E70. The cell phones falling in this category are business phones including communicators and high memory storage phones. They have a lot of storage space and connect to GPRS anywhere. Rs 23300 Nokia 7900 Prism. The have most emphasis on achieving their targets in the shortest means time. 60 . Rs 21300 Nokia N73 Music Edition. Rs 21500 Nokia E61. They are busy most of the time so they want quick solutions for their problems They want easy access to everything. They like challenging and new things. These phones enable to connect the business people to one another.
Rs 36750 61 . country creek club. Opinions: • • • • They are future oriented their main emphasis is on profit maximization. They go out to foreign countries for vacation as they want to spend some time away from work and relax. golf club etc. They member of various clubs such as Karachi club. They go out to dinner on restaurants like bar b Q tonite and hotels like PC. They attend business meetings and business ceremonies. They give less importance to political issues. They play sports such as golf and yachting etc. Range 6: (30000 . They use high quality and branded products. AVARI etc. They are future oriented and tend to maximize profits. They are very conscious about their diet. They have houses in posh and popular areas. They mostly buy branded products. Interests: • • • • They have small and growing families. They are highly concerned about the economic conditions in the country. They buy foreign products and shop from foreign country.above) educated politician • Nokia N95.• • • • • • Their hobbies are surfing on internet and finding out knowledge about latest technology etc.
They go out to clubs and for horse riding. Activities: • • • • • The segment using these cell phones are mostly educated politician. creek club etc. Rs 49700 Nokia 8800. integrated GPS.0 with A2DP. Rs 44300 Nokia N95i. 62 . horse riding. the candy bar N82 is packed with lots of advanced function and features such as HSDPA. Rs 44300 Nokia E90. they spend less time with their families. They shop from foreign countries and mostly buy expensive and branded products. microSD and TV-out. clubbing and yachting.• • • • • • Nokia N93i. Rs 41000 Nokia N82. golfing etc. They buy products that are branded and most expensive. They have membership in Karachi club. They have highly reputed ranks in the society. ve in highly posh areas such as Defence and Clifton etc. Bluetooth 2. They liTheir hobbies are hunting. Rs 50800 Features: • It is both a mobile phone and media player rolled into one. Rs 39750 Nokia 8600. They spend their vacations in foreign countries. Wi-Fi. Interests: • • • • • They have small families and usually they are mostly less family oriented. FM radio. Similar as the N95 and G600.
• • • • • They like to eat continental.7 and 9.5 In question number 5. 100 0 4. 50 50 9. They get education from foreign countries and also send their children abroad for higher education.5 62. 29% people told that it is because of the NOKIA Brand Name. They keep themselves up to date with the latest news related to politics. 75 25 7. They take high interest in media.4. They are not concerned or followers of their culture.5 37. Question No.6. They are economically and financially well-off. which were mainly close-ended questions. Where 14% people told that it is because of better features. which are answerable in either YES or NO are below.5 12.5 2. business and society.2. And the remaining 3 questions had options for each.5 3.5 12. Analysis and Interpretation We asked total 10 questions. 63 . 37. but still why do you prefer Nokia? 57% people told that because it is user friendly. 62. Chinese and Italian foods. The results of the question Number 1. Out of 10. They change themselves as the society progresses and trend changes.5 6. Yes % No % 1. I asked that Nokia is costlier as compared to other mobile handsets that provides same features as Nokia. 87. 7 were answerable in either YES or NO.3. 87.
In question number 8 I asked that Except Nokia what are your other preferred mobile phone brands? 25% people told that they prefer Samsung. Do you think Nokia handsets are updated with the latest features? 13% yes no 87% Q2. Are Nokia mobiles readily available in the markets? 13% yes no 87% Q3. Q1. 37.5% told LG. 12. Do you think Nokia mobiles are user friendly? 0% yes no 100% 64 .5% told Motorola and remaining 25% told they prefer other brands.
If a mobile company offers same features. will u still go for Nokia? 50% 50% yes no 65 . Do Nokia provide good after sales service compared to other mobile phones? 30% yes no 70% Q6.Q4. Does a Nokia phone come with reasonable price? 25% yes no 75% Q7. quality and price as Nokia.
Nokia is costlier as compared to other mobile handsets that provides same features as Nokia. Will you go for other mobile phone brand with less price and more features? 38% yes 62% no Q5. Except Nokia your other preferred mobile phone brands? 25% 25% samsung LG 13% m otorola others 37% 66 . but still why do you prefer Nokia? 32% 52% user friendly brand nam e better features 16% Q8.Q9.
I would like to conclude that Nokia had been launching various new products & strategies throughout the year but still it is the no. Various segmentation strategies are being enrolled into the market to increase the sales of the products.1 brand leader in mobile phones. good & efficient to operate. as they are very cheap. Better.Conclusion From the above project I have come to this conclusion that Nokia has implemented various segmentation strategies for its products on a large scale & becoming no. Many people around the globe are purchasing Nokia phones. The main segmentation is done on the basis of price. Also Nokia is largest manufacturer of mobile phones in India & also the no. 67 . Nokia as such has used all modern & good techniques to tackle problems of customers in market. New models & their strategies are being well utilized to enhance the product. Nokia segments its market according to various variables. Customer care & feedback is also given more importance. As per my opinion Nokia had introduced various schemes to attract people & gain more goodwill into market. Nokia have used better & efficient market segmentation strategies to market its products according to various segments of customers in the market.1 leader in it. efficient & advanced techniques are used to increase the sales of product.1 leader in the world of mobile phones.
the Company should try to offer sales of such products at an affordable Price. They should try to adopt new strategies to regain whole sales force in the market.Recommendations I would like to provide certain recommendations towards this Project report. The Company should try to bring more attractive offers & discounts to the customers of segments to make them more brand loyal towards them. They are as follows: I would like to suggest that the Marketing areas for Sales should be increased. 68 . As far as launching of new models is concerned.
co.in/#hl=en&source=hp&q=market+segmentation+of+nokia &meta=&aq=7&aqi=g10&aql=&oq=market+se&gs_rfai=&fp=fe4cbc854b7cd67 d www.com 69 .google.nokia.wikipedia.Bibliography Websites visited: www.com/about-nokia/company www.com http://www.nokia.com http://www.google.
Does a Nokia phone come with reasonable price? a) YES b) NO 70 .Annexure 1. Do you think Nokia handsets are updated with the latest features? a) YES b) NO 2. Do you think Nokia mobiles are user friendly? a) YES b) NO 4. Do Nokia provide good after sales service compared to other mobile phones? a) YES b) NO 5. but still why do you prefer Nokia? a) Nokia brand name b) Better features c) User friendly d) All the above 6. Nokia is costlier as compared to other mobile handsets that provides same features as Nokia. Are Nokia mobiles readily available in the markets? a) YES b) NO 3.
How do you rate the after sale service of Nokia? a) Very good b) Good c) Neither good nor bad d) Bad e) Very bad 71 . quality and price as Nokia. Except Nokia your other preferred mobile phone brands? a) Samsung b) LG c) Motorola d) Others 9. will u still go for Nokia? a) YES b) NO 8.7. If a mobile company offers same features. Will you go for other mobile phone brand with less price and more features? a) YES b) NO 10.
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