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NOKIA’S MARKETING STRATEGIES IN INDIA by Nikunj Daga 2006-2007 A dissertation presented in part consideration for the degree

of MA in Marketing

No portion of the work referred to in the dissertation has been submitted in sup port of an application of another degree or qualification of this or any other u niversity or other institution of learning. 2

ACKNOWLEDGEMENT ________________________________________________________________________________ _________________ Writing a dissertation is always the most challenging part of a student’s life. It was definitely the most important academic contribution by me. This however wou ld not have been possible without the encouragement and of a few people. Here I take this opportunity to display my gratitude towards them, First and foremost, I would like to thank my professor, Dr Heidi Winklhofer for being a source of support and encouragement, guidance and persistent help. Thank you ma’am for your time, support and patience. My Sincere thanks to both academic and non-academic staff of the Nottingham University Business School, for all th eir assistance. I would like to thank my parents for love and support bestowed on me. for your blessings. Also I would like to thank my friends for staying ng the difficult parts of life. Thanks for help and love irrespective uations. I would also like to thank all my respondents for taking out their busy lives to help me with my research. Last but not the least, I would like to thank God for all. Thank You!! Nikunj Daga 3 Thank you by me duri of the sit time from

rough and tough body .ABSTRACT ________________________________________________________________________________ _________________ This research studies the marketing strategies of Nokia. The study attempts to check the role of market ing activities in success of Nokia in India. mobile phone dealers are interviewed as they deal with many consumers and can give the opinion of the market as a whole. they were not the reasons for high market shar e of the company. long life etc were believed to be the reasons of success. Features such as user friendliness. Though the marketing strategies have been aggressive. 4 . a high technology compa ny in a developing country India. The findings advised that consumers preferred Nokia over all other brands due to features of the phone. To get a generalized view. After studying the past of the comp any and the history of Indian mobile industry. Nokia’s marketing strategies are ex amined through secondary resources. interviews as a tool of qualitativ e research is adopted to create a deep understanding of the customers perception s. Then to check the effect on the consumers. semi-structured interviews of a few m obile phone dealers in India are taken. Here.

1 Introduc tion 4.4.1 Mobile phone industry in India 3.2 Outline of Chapters 2.4 Business Strategy Approach 2.4 SWOT Analysis 4.5. LITERATURE REVIEW 2.1 Introduction and Objectives of Rese arch 1.4.5 Pricing and Distribution 2.4.6 Interviews 4.1 Uppsala Model 2. METHODOLOGY 4.2 Country o f Origin effect 2.3 Nokia in India 3.3 Culture 2.2 Eclectic Paradigm and TCA 2. MARKETING S TRATEGY 5.7 Summary 5. INDUSTRIAL ANALYSIS 3.3 Quantitative Research Methods 4.4 A Qu alitative approach 4.3 Interactive Network Ap proach 2.2 About Nokia 3.5.1 Prici ng 2.2 Qualitative Research Methods 4.1 Introduction 5.4.1 Introduction 2.4 Internationalization and Globalization theories 2.2 Product 3 4 7 7 8 10 10 11 14 18 19 20 21 21 23 23 26 30 30 34 38 40 42 42 45 47 47 48 4 9 51 52 52 52 5 .2 Distribution 3. INTRODUCTION 1.INDEX ________________________________________________________________________________ _________________ ACKNOWLEDGEMENT ABSTRACT 1.5 Data Collection 4.

1 Conclusion an d Recommendations 7.5.5 The 4 P’s 6.5 Promotion 6.3 Analysis and Discussion 6.3 Price 5.4 Success of the Brand 6. ANALYSIS 6.1 Introduction 6.6 Future and Scope of improvement 7. 2 Background of Respondents 6.2 Limitations of research and Suggestions REFERENCES APPENDI CES 55 56 58 64 64 64 66 68 71 74 77 77 78 79 92 6 .4 Place (Distribution) 5. CONCLUSION 7.

The obje ctive was to study the main reasons of success of the market leader Nokia.S. The benefits of the mobile phone are far too many. the anywhe re. For this pur pose. Olli-Pekka Kallasvuo. It is a high technology market and India being developing country. colleagues and in theory at least the efficiency brought to busy lives (Web 21). th e president and chief executive of Finnish telecom giant Nokia “India is now Nokia s second-largest market. Ease of communication. Then dealers on Nokia in different parts of India were interviewed w ith semi-structured interviews to check the impact of these strategies. Nokia’s growth in India has been s ubstantial. relations. As noted by. It was intended to study the areas wh ere there was scope of improvement and note down some recommendations. anytime contact . They have led the market with 70% share for long time now. and behind only China” (Web 22). displacing the U.1 Introduction and Objectives Day by day. What is i nteresting is that there is further scope of improvement in sales. will see more and more sub scribers to this technology in the future.1. This research aims at studying the strategies applied by Nokia in India. secondary data in form of case studies and news articles have been used to gather the information about the marketing strategies that were applied by Noki a in India. mobile phones are turning into more of necessity then a luxury. and a lso to study the drawbacks of the company. and ana lyzing the effects of these strategies on the sales of the company. 7   . INTRODUCTION ________________________________________________________________________________ _________________ 1.with friends.

The main topics discussed he re are Country of origin effect. Chapter two – Literature Review. Chapter ysis of did the e phone three – Industry analysis. how changes occurred resulting Nokia venturing into mobil business. He re the strategies are discussed on the basis simple concept of 4 P’s. First all the available methodologies are discussed and then the bes t suited one is selected. to begin with this chapters deals with the anal mobile phone industry in India. a very brief synopsis of the chapters that follow in the study is given. Quantitative research methods. Secondary data. Finally history of Nokia in India is conferred. Then. The important terms used in this chapter are Primary d ata. summarizes all the past researches that have been conducted in the field of international marketing. Qualitative research methods and semi structured interviews. history of Nokia is studies.2 Outline of the Chapters Here. Chapter four – Methodology.1. points out the marketing strategies applied by Nokia in India since the time of foundation in the country. impact of culture in international marketing. talks about the methodology used in the research to co llect data. The data here is sec ondary and thus is collected with the help of case studies and news articles. Chapter five – Marketing strategy. I nternationalization and Globalization theories and Pricing and Distribution in i nternational markets. When company start. 8 .

9 . Chapter seven – Conclusion.Chapter six – Analysis. concludes the study with fulfilling of the objective. Last but no t the least. the interviews taken are scrutiniz ed and conclusive lines are drawn. Here. it discussed the drawbacks of the study and offers suggestions for further researches. deals with discussing and analyzing the research results t o conclude the objectives of the study. It further offer recommendations to the company for future planning.

review should be regarded as a process of fundamental to any worth while research or development work in any subject irrespective of discipline. The researcher will define framework of his work with the help of ideas an d work of others. H ere the attempt is to make a note of what has been written in context of interna tional marketing strategies of brands.2. comparison of Global and Glocal strategies. To achieve this. pricing and dist ribution strategies for international firms strategy for International brands.” Hart (1998) According to Hart.1 Introduction “Reviewing the literature on a topic can… provide an academically enriching experien ce but only if it is done properly. Literature review is of prime importance to the research. COO effect. LITERATURE REVIEW ________________________________________________________________________________ _________________ 2. The literature review for this research will have its prime stress on t heories of globalization. It is the responsibility of the research student to find out what already exists i n the area in which research is intended to be done before doing the research it self. ‘A literature review summarizes the major findings of scholars and researchers who have conducted research in the area you are interested in inves tigating’. 10 . effects of culture on marketing of a product internati onally. As Burger says.

as well as that of the imagery elicited by a product’s COO. H ence now we need to define the COO effect. in developing a corporate imagery of a product. “Made in (name of country)” in 1980s. the importance of various marketing mix variables (e. 2. Systematic research for COO effect began in 1965 with Schooler’s article “Product bi as in central American common market”. the review here is of more of international marketing as whole instead of specifically on Nokia. “COO effects can be summarized as the effects generated by a product’s perceived geogra phic origin on the part of the customer and how it affects the latter’s purchasing patterns”. What is noteworthy is Nokia forms a part of the upcoming electronics industry and has an important role to play in t he developing markets of countries such as India. “value for ney”. Influ ence of COO on the product quality perception was indicated by both empirical ob servations and experiments in their research. 2006).2 Country of Origin (COO) Effect As Piron says. brand name. The basis of this generalization is products familia rity and background with the country. It was considered to communicated by the ph rase. and their own personal experiences of prod uct attributes such as “technological superiority”. product appearance. price) is firmly established. It’s a tendency of consumers to generalize their attitudes and opinions across pro ducts from a given country. as noted by Bilkey and Nes (1982).g. In words of Mort & Duncan (2000). and “credibility of country-oforigin” of a brand (Kinra. “design”. “status and esteem”.Instead of being specific. As the 11 . “product quality”.

Porsche ads often show a German test track. Today most of the brands have p roduction processes in developing countries as the labour is cheap in such count ries. As Joha nsson et. “Parfum”. The examples for this are. and parts-source country are incorporated into the research design. this is to reinforce its German origin.(1985) believed. Brand has been cons idered as a 12 . This can be noted as marketers have focused on orig in associations in many product categories in the advertisements of their produc ts. Christian Dior uses the French word. and parts-source country is basically the trends followed by global brands. country-of-design.research continued in the field. new perspective developed new concepts. in its advertising to reinforce its French origin association. Therefore. Ch ao (1998). This was of particular importance when outsourcing o f different aspects the production process were to be considered. The result was noteworthy for the manufacturers and ma rketers of hybrid products. The reason for division of country o f origin into country-ofassembly. Thakor and Lavack (2003). Specifically. COO has been defined as the country where the corp orate headquarters of the company marketing the product or brand is situated. country of origin of brand may not be the country of origin of the product. country-of-design. al. stressed on examining the multidimensional constructs of the country concept and how they impact consumer evaluations of product and design qualities . believed that perceived origin associations are a powe rful source of brand appeal. Chao’s research revealed that whereas country-of-assembly and country-of-parts onl y affect the product quality perception and country-of-design only affects the d esign quality perception. country-of-assembly.

seems to be lost (Chao 1998). the traditional notion in COO literature.. 2006). Multinational production operations got very complex due to these activities and it has also led to tension in domestic workp lace. al. According to research works. they have also increasingly outsourced by either enlisting th e services of professional talents in collaborating foreign partner firms or est ablishing design centers overseas. This indicates that consumer evaluations are governed by influences othe r than the quality of the product (Peterson and Jolibert. Most of the products available today are of hybrid variety. In his research. that assumes that p roduct can be associated with one country. and hence no o ne firm in a single country can claim to be the sole manufacturer of these produ cts. Niss noticed that most of the industrial 13 . 1995) Noticeable increase has been seen in outsourcing as a result of firm’s continued p ursue for global market expansion strategies. Consequently. This does not remain limited to ta king advantage of lower labor wage rates prevailing in many developing countries . but major design and engineering tasks have also been outsourced to manufactur e component parts.purely extrinsic variable in COO effects and consumer perceptions of origin have been manipulated almost through “made in” label information (Mohamad et. It is also noted that product attributes s uch as product quality have favorable perception. the more useful i s it likely to be as a marketing tool in that it may then be used more extensive ly in the export promotion of products originating from that country” (Niss. if country perceptions are fav orable. 2000) (Sankar. “Common sense has it that the stronger a country’s national image. COO image plays an important role in consumer’s evalu ation of foreign products and brands. 1996) .

as Anime et. It has also been noted that the consumer tends to sometimes substitute other inf ormational cues such as products brand name as a substitute to country informati on not considering where the product. al.exporters represented in the survey choose either to play down their nationality or disguise themselves behind a local or global image. present and future 14 . Verlegh and Steenkamp (1999. on the basis of a meta-analysis of COO re search. Here we can look at t he example of a Sony walkman being perceived to be Japanese whereas it may have been assembled in Malaysia. as in general Denmark’s image was considered very weak and one-sided. However. However.3 Culture It is a universally accepted fact that. in reality. is made. [COO] effects are still poorly understood.(2005) noted. To understand people it is very important to understand their back ground. the pre-requisite for it to happen is that one knows both work to be done and the people through which it has to be done. it is noticeable that a heightened consumer global awareness and sensitivity to the mounting prevalence of hybrid products in the marketplace may help to diminish this perception (Chao 1998). 521) conclude rather pessimistically tha t “[d]espite a large body of research. Hence. This did not come as a s urprise. Here the stress is on work to be done and effort of o thers. p. and hence was not considered to use it as a prominent marketing tool for Danish pro ducts abroad. so that.” 2. ‘Management is the art of getting things d one through (other) people’.

However. 1991). These response s are a consequence of “collective mental programming” and all aspects of marketing transactions are affected by it. Even then they added one definition of their own. Hence. And according to a large body of literature. He says. Culture consists of a series of response to recurring situations. It is in the area of crosscultural communications that most blunders in international marketing occur (Kal e. 1994) According to Usunier (2000). Duesenberry in 1949 obser ved that all of the activities people engage in are 15 . “A culture is a configuration of learned behaviors and results of behavior whose component parts are shared and t ransmitted by the members of a particular society”. Their background can be determined by having knowledg e of the culture they belong to.behavior can be predicted. defining culture concisely present s unanticipated difficulties as the literature contains a multitude of definitio ns. as Kale (1991) noted. the abstract sense of culture probably originated f rom Germany where the word Kultur was used to refer to civilization in the eight eenth century. Kroeber and Kluckhohn (1952) gathered 164 definitions of culture. the most popular definition is the one suggested by Linton (1945). (Hofstede. Conceivably. Operating marketing communications is one of the greatest challenges for an inte rnational marketer. the study of culture is considered very important for marketing a product internationally. As Kale (1991) noted. significant cul tural differences across countries are believed to be root of most problems in i nternational marketing communications or promotions.

This is important as power and inequality are particularly fun damental. I t is a sign that inequality in the society has been approved by the leaders as w ell as followers.” (Tse et al 1998) Hofstede (1994) identified five dimensions of national culture. attitude towa rds product classes. color preference. culture’s impact is the maximum in how the informati on is received. “Culture may be reflected in general tendencies of persistent preference for parti cular states of affairs over others. the more is inequality. However. 16 . persistent preferences for specific social processes over others. and responses. namely Appendix 1). Power Distance – This is defined by the degree to which the less powerful people o f the organization or institution accept and expect the power to be distributed unequa lly. and general rules for selective attention. However it is defined from below (less powerful members) and not from above (more powerful members). This clearly indicates to the importance of culture while making decisions regarding marketi ng activities. It is generally known that culture may pr ovide detailed prescriptions (norms) for specific classes of situations while le aving other domains relatively unregulated. Also that almost all purchases made were either to satisf y some physical need or to apply the actions that make up the life of a culture. retrieved and employed for decision making. interpretation of environmental cues. stored. The more the power distance. Culture has a strong impact on people’s tastes. He also notes that culture has a multifaceted and ubiquitous effect on marketin g. 1.culturally determined.

It is exactly the opposite in uncertainty accep ting countries. This tells us how much the members of society feel either uncomfortable o r comfortable in unstructured situations. These groups continue protecting t hese people in exchange for unquestioning loyalty. Individualism versus Collectivism – This is the degree to which individuals are integrated into groups. 17 . unknown.2. The individualist societies are the ones where ties bet ween individuals are loose. there is an attempt to minimize the possibility of such situations by strict laws and ru les. Though the women are not a s caring and modest in masculine countries as they are in feminine but the degre e of difference is less than men. These people tend to be more emotional and mo tivated by inner nervous energy. s urprising and different from usual. Masculinity versus Feminity – This is determined by the degree of distribution of roles between the sexes in the society. Whereas in the collectivist societies. This difference by noted to b e high amongst the countries and hence is of extreme significance. Also men’s values differ more among societies in comparison to women’s. peop le are integrated into strong. unified in-groups. It is expected that everyone will look after himself /herself and their immediate family. safety and security measures. usually extended families (wit h uncles. 3. It has been noted that men’s value acro ss countries are from very assertive and competitive as well as very different f rom women to modest and caring and very similar to women. These situations are novel. aunts and grandparents) from birth. In cultures that avoid uncertainty. 4. Name given to assertive pole is ‘mas culine’ and the modest and caring one is called ‘feminine’. Uncertainty Avoidance – It refers to society’s tolerance for uncertainty and ambi guity.

and beyond. however. 1983). a qualification does not exclude its opposite. Buddhism. whereas values associated with short term orientatio n are respect for tradition. the term has become a ubiquitous and potent symbol of the age. and Hinduism) a nd Western thinking (dominant in the Judaeo-ChristianMuslim intellectual traditi on) is that in the East. Tse et al (1998). Since then. However. the basic difference between Easte rn thinking (represented by. Due to similarities. Neverthele ss. the dimension also applie s to countries without a Confucian heritage. for example Confucianism. and protecting one’s ‘fa ce’.5. the exact meaning and significance of globalization has been and remains an intensely debatable topic across the academic community. which is an essential element of Western logic (Kapp. that the reason for this probably is that globalization is stu died 18 . It was originally called ‘Confucian dynamism’. It is believed. As cited by Hofstede (1994). noted that studies using Singaporean subjects found that traditional Chinese val ues were fading slowly because of Western influences. it was only i n early 1980’s that it became a topic of serious discussion among academics. In fact in Jessop’s (1999) view. Long term versus Short term Orientation – Thrift and perseverance are the value s of long term orientation. mostly the comparison is of Eastern countries versus the We stern countries. This thought. is not supported by most. 2. the definitions of globalization in literature remains “chaoti c”.4 Internationalisation and Globalisation theories Even though the concept of globalization has been around for long. however. fulfilling social obligations. This means that slowly the cultural differences are reducing as less importance is being given to it.

The internationalization theories concentrate on decision to internationalize or deciding on which market to enter and how to enter. integration and use of knowledge about foreign markets and operations. namely. 2003).4. The model focused on the gradual acquisition. Here the concept of psychic difference was considered important. “Globalisation involves developing marketing strategies as though the wor ld is a single entity. and on the incrementally inc reasing commitments to foreign markets. each with its own disc iplinary filter (Clark & Knowles.1 The Uppsala Model of Internationalization: Johanson and Vahlne in 1977 dev eloped a model of internationalization process of the firm on the basis of empir ical research. marketing standardized products in the same way everywher e. Vignali (2001). to some extent depend on existence of market information to inform internationalization decisions. Th ough all the theories. The focus of the model is particularly o n the increasing involvement in the individual foreign country. defined Globalization t he best. The Uppsala Model of internationalization The eclectic paradigm and transaction cost analysis The interactive network approach of international marketing and pu rchasing group The business strategy approach 2. as it was believed that firms e xpand first 19 .independently from a number of disciplinary perspectives. As Whitelock (2002) documented. Different approaches have b een taken by different authors to solve this problem of internationalization. there are four major theories of internationalization.

Th ese exceptions were when firms have large resources they may be expected to make larger internationalization steps. TCA approach is based on the assumption t hat the markets are competitive hence the performance of supplier is efficient. The entry decisions hence are made in rational way. and in to more distant markets as they gain more experiential knowledge. there is little threat of replacement and the transaction costs are high.into market which are psychically close. TCA is considered particularly useful for evaluati ng the vertical integration decisions. 2. As Whitelock cited in Dunning (1998). when the firm has considerable experience from markets with similar conditions it ma y be possible to generalize this experience to the specific market. 1998). However in 1990.4. and attractions of a foreign market fo r the production”. through tra nsaction cost analysis (TCA). when market conditions are stable and homoge neous market knowledge can be gained in ways other than through experience. The model gained particular support in the early sta ges of international involvement. form and pattern of international production” and is founded on “the juxtaposition of ownership-spec ific advantages of firms contemplating foreign production… the propensity to inter nalize the crossborder markets for these. This was considered critical as it can be gain ed only through personal experience and not taught as other objective knowledge in international marketing. 20 . Johanson and Vahlne suggested three exceptions to their model as a response to increased market knowledge.2 The eclectic paradigm and transaction cost analysis: The concept of the ec lectic paradigm of international production was first put forward by the Dunning in 1976 at a presentation to a Nobel Symposium in Stockholm on The Internationa l Allocation of Economic Activity (Dunning. the eclectic paradigm is set out to explain “the extent. When the range of suppliers is restricted.

3 The interactive network approach of international marketing and purchasing group: In 1986. there is a need to as sess its own position in relation to the customers and also the environment of m arket which is affected by the other actors or competitors.4. The four variable of integration defined are: the element and process of interaction.These benefits of integration should however be compared to the costs of integra tion (i. firm’s resources and manag erial philosophy are the basis of deciding expansion strategies which may in tur n result in foreign expansion. 2. They believed that bot h models ignore the characteristics of the firm and market. In words of Turnbull (1986). The interpretation of these variables helps the firm decide on the market to enter and which customers to deliver. definition s of industrialization system stress on developing and maintaining lasting relat ionships. Ried (1983) believed that nature of market opportunity. characteristics of parties involved. The firm decides the entry method for specific market abroad. 2002). the atmosphere surrounding the interaction.e cost of resource commitment). and the environment within which the interaction takes place (W hitelock. Hence. Johanson and Mattsson noticed that both Uppsala model and eclec tic paradigm concentrate on firm or individual perspective of market entry.4 The business strategy approach: As Whitelock (2002) cited in Welford and P rescott (1994) “The business strategy approach is based on the idea of pragmatism”. According to Johanson and Vahlne (1990). the chief limitatio n “is the one-sided focus upon the activities of manufacturer together with the in termediary in the flow of goods and services to the customer”. The factors which need to be 21 .4. eclectic paradigm has high descriptive power for firms having experience from m any regions of the world. 2. Whereas. which appear to be i mportant in industrial systems.

Proper” and “Maestro Limpio” names. the advantages of the local b rands are still stronger and this is reviewed in the following part. Globalization challenges notions of cultural imperialism because the term suggests a negotiation process that appears to start from inside out.” However there are some selected global brands that don’t have the same name but share some marketing program elements. the coined word ‘Glocalization’ at the very least. among others. a process that begins with high re gard 22 . Global V Glocal Levitt (1983) defines global brands as brands that use the same marketing strategy and mix in all target markets.e. Although global brands play a dominant role in today’s world. For example. “Whereas ‘Globalization’ monolithic sameness as a result of convergen t worldwide economic. The researchers define global brand as “a brand that is market ed under the same name in multiple countries with similar and centrally coordina ted marketing strategies. psychi c distance and accessibility and informal barriers. financial and cultural flows. 2002). Whilst choice of organizatio nal structure will depend on these market characteristics in addition to company specific factors as international trading history. Such strategies are implemented by man Multinationals.. Johansson and Ronkainen (2004) assert that global brands benefit from the scale and scope of having presence i n multiple markets. suggests some sort of accommodation. i. These are known as the Gl ocal Strategies. Cl ean” also sells under the “Mr. Also number of competitors is considered important factor (Whitelock . size export orientation and commitment.assessed in this approach for market selection are market attractiveness. “Mr.

5. as well a s a challenge. Walters 1989. to the top-down hegemony implicit in term ‘globalization’” (Maynard. Hence. Either too broad and examined only general nature of international pricin g. until their research. the development of gray markets.5 Pricing and Distribution 2. 20 03). The term ‘glocalization’ connotes a successive development. Weekly 1992). the major drawback amongst most of them had been that they have been less genera lized. the lit erary topic of international pricing had not been completely ignored by the scho lars. and the control of the pricing mechanism under different environmental conditions. (2006).for the local. pricing in emerging mar kets. International pricing decisions are inclined to be a function of the relationshi p between the external. 2. al. 1996. focusing on a specific country’s exporter or focused on issues su ch as the impact of technology on international pricing. market-related complexities that shape firm operations a nd the capabilities of the firm to respond effectively to these contingencies.1 Pricing According to Solberg et. the emphasis had been laid on ‘how pric ing decisions ought to be made’ (Cavusgil 1988. One of the reasons being ‘dynamics that govern international marketing activities are likely to accel erate rather than slow down as a function 23 . However the studies published till then stressed chiefly on the normative dimension of international pricing. They say that though a few of these studies have been based empirical evidence. The importance of international pricing is going to improve. too specific.

when the business is conducted at international level. Another reason being comp lexity.g. intensifying global competition. Cavusgil. Pricing acts as an essential function in the internationalizing firm’s effort to b e globally integrative yet locally responsive. The vital rea son behind this is. However the international pricing as a research topic as been underdeveloped. regionalization and attempt made towa rds price harmonization should make international pricing easier. the proliferation of new products and services . rapid changes in the global legal environment .. M onroe 2003. 24 . and the economic uncertainty that these will generate. it is utmost important to monitors wide array of influences that can affect the prici ng decision and vary across markets. To maintain the firm’s fi nancial prosperity under these conditions. the degree of importance attached to price o f the product by the management depends on the extent to which the firm seeks co mpetitive advantage by offering its customers a less-expensive product for the v alue being delivered as compared to the rivals. The importance of role played by in formation in international pricing decision is critical in nature.of faster technological progress. and the effective execution of these will become more important’ (e. the development of more sophisticated pricing str ategies. and Diamantopoulos 2002). but decision m aking in international pricing will remain complex enterprise (Samiee and Anckar 1998). Myers. even though acts such as internet. a better understanding of the economi c and competitive environment. According to Nagle & Holden (1995).

Thus. Al. Al. a global industry is epitomized by a few. and dist ribution costs. (2006). transport. lar ge. Thus. major competitors that “rule” their categories in world markets within their pro duct category. The effectiveness of strategic pricing by the exporter is dependent on his contr ol over the decision making and the actual outcome of pricing activities in its markets. expenditures that are outside the control of the exporter for th e most part. a monopoly at one end and atomistic competition at the other (Appendix 2). the degree of globality along this dimension is considered to vary between two extremes. also categorized firms into four categories on the basis of low and high preparedness for internationalization on the Y axis and Multilo cal and Global markets in which they operate in X axis. Solberg et. The literature stresses two facets that need to be considered in this c ontext: the issue of centralized versus decentralized pricing and the issue of c ontrol within the distribution channel.As noted by Solberg et. In Solberg’s framework. Solberg’s (1997) framework includes two dimens ions: industry globality and the degree of the firm’s preparedness for internation alization. The categories were: Prototype 1: The Local Price Follower Firm Prototype 2: The Global Price Followe r Firm 25 . (2006). He defines “industry globality” as a condition in which the actions of th e players that operate in world markets are affected by one another to the exten t that a relatively stable price level is created across the markets in which th ey operate. prices vary as a function of only tariffs.

Prototype 3: The Multilocal Price Setter Firm Prototype 4: The Global Price Lead er Firm 2. But after a while. sales take off. it star ts looking for new international markets. stagnation sets in and sales plateau. The other reason that can be noted is fault from the local distributors. The managers of the corporation observe that the major hindr ance in the path of growth is that the local distributor that got the company to a flying start has run out of ideas.2 Distribution Once a corporation is well established in its market. What remains missing is the need to understand how their new partners (local distributors) are differ ent from the ones at home." In both the cases the actual problem is difference in thinking of the company an d the distributor. Neither the multinational nor the distributor invests suffici ently in strategic marketing or in 26       . These par tnerships nearly always blow up in the end. In the beginning. Mostly it is the management which finds fa ults in the work of distributor. revenues grow. In such cases chances are that it fora ys into an emerging market and to limit its exposure appoints a local distributo r. Some examples quoted by Arnold (2000) are: "The distributor didn t know how to grow the market” "The distributors didn t invest i n business growth” "The distributor just wasn t ambitious enough. and the entry is praised as a smart move.5. Much of the blame lies with the multinationals themselves.

" becomes official policy in many organizations. rather than those with a few obvious customer contacts – Multinational’s long term goals should be kept in m ind and given prime importance while choosing the distributor and deicing the te rms of relationship. Hence he laid seve n rules of international distribution. In fact. As the patter n recurs with entries into subsequent markets. this approach. Don t let them select you – Objective market assessment sh ould lead to strategic decision of entry into a new international market. Look for distributors capable of developing markets. Hence 27   . Arnold (2000) noted that it was not the case usually. 2. Select distributors. According to him. So there is a need to find distributors.aggressive business development in these ‘less developed’ markets. Arnold (2000) discusses what goes wrong and why. As Arnold (2000) noted. one should the market led approach rather than distributor led. dubbed the "beachh ead strategy. To work together it is important to be unidirectional and go hand in hand. "The most obvious distributor is no t necessarily the best partner for the long term". 1. most multinat ionals stumble onto a stepwise strategy for penetrating markets in emerging coun tries through a series of unplanned actions to reinvigorate sales. the most eager potential distributors may be precisely the w rong people to partner with. Howeve r. His studies revealed th at companies moved into new market as reaction to proposals from prospective dis tributors.

4. 7. For this purpose. From the start. It holds particular importance at the time of market entry. How ever it is important to create links 28   . multinationals must commit adequate corporate resources. determines its ability to take advantage of its competitive advantages. Treat the local distributors as long-term partners. not temporary market-entr y vehicles – There is a need to structure the relationships in such a way that the distributors become marketing partners. Build links among national distributors at the earliest opportunity – The key o bjective for the multinational establish a customer base in the new country. 6. Make sure distributors provide you with detailed market and financial perform ance data – The quality of information that the multinational has about the market . 5. Also in a few countries they may be the only source of such information.3. This he lps the multinational to exploit the full potential of a global marketing networ k. managers. and proven marketing idea s – It is very important for the multinational to maintain strategic control. it has to rely on distribution channel fo r such information. Thus. However mult inationals should pilot the planning sessions about the decision making. maintain control over marketing strategy – Distributors should be allowed to adapt a multinational s strategy to local conditions. will be willing to invest in long -term market development. Support market entry by committing money. as the multinational are leas t certain about their prospects in new countries. Since the corporation is new to the country.

29 .among its national distributors as soon as possible. This will lead to transfer of ideas and hence provide a better and consistent performance in the implementa tion of international strategies.

1 Mobile phone industry in India Mobile telephony was introduced in India in 1995. however.3. by 2001. the industry was on a high. and with the popularity of mobile ph ones the customers started demanding better services and lower prices. there was steady increase in the demand for mobile services. The plan was to provide telephones on demand by 2002. This led to new innovations and come out with better products and 30 . The Indian government was not supportive to the new companies of the in dustry. was ve ry slow. The industry got a new life in 1999. By 2002. It also helped the private operators to break even faster by allowing them to migrate from fixed license to one-time entry fe e with revenue sharing. when the Government of India announced a ne w telecom policy. The mobile service providers were allowed to share their inf rastructures with other operators. The first call was made by Nok ia 2110 on its own network. The start to this industry in India. As a result of unfriendly telecom policies. high licensing fees and abse nce of a proper telecom regulatory body lead to exit of these private players in the next few years. INDUSTRY ANALYSIS ________________________________________________________________________________ _________________ 3. T he private companies concentrated on providing basic telephonic services to cons umers. A major point of the policy was to allow unrestricted private entry into almost all mobi le service sectors. However.

Global Systems for Mobile Communications (GSM) and Code Division Multiple Access (CDMA) . According to IDC (International Data Corporation).services. The sudden increase in growth on mobile phone subscriber ca n be seen in the following table: Growth of mobile phone subscribers No of mobile subscribers 0 – 1 Million 1 – 5 Mill ion 5 – 10 Million Time taken 1995-1998 1998-2001 2001-2002 By May 2005. namely. “India’s mobile phone subscriber base has crossed the 100 million mark. This also led to ownership of more than one mobile phone in a family. 31 . Out of these. 2006). Being middle class of a developing country. According to a report in PTI. Lowering mobile tariffs and low entr y barriers helped the growth of GSM mobile services. GSM-based subscribers number 75 million while CDMA-based su bscribers total around 25 million” (Dutta. 43 million were GSM and rest 12 million were CDMA. the number was expected to reach 148 million by 2009. GSM was the service introduced in India in 1995 and had key features of nation wide roaming as well as international roaming for US and Europe for both pre-pai d and post-paid subscribers. the number of cellular phone subscribers in India had risen to 55 m illion. makin g the country the fifth largest in the world in number of subscribers. They are the main service providers in India and ho ld almost 75% of the market as notes above. as compared to other consumer durable s such as television. The middle class population in India is about 350 million. In 2002. In India there were two major types of mobile service operators. In June 2006. the industry’s growth got fueled as incoming calls on mobile ph ones were made free.

As a result. These were also known as FWT/FWP (Fixed Wireless Telephone/ Phone). Then. WLL mobiles were to give competition to GSM phones. Airtel acquired Hexacom. This lead to a dramatic rise in prepaid (26. the bigger operators started acquiring smal l operators which could not afford heavy investment needed in the industry. there were 18 operators on GSM and to withstand competition from CDMA. The fixed phone handsets were to replace fixed landlines wi th functionality within the city limits. The major benefit that they provided was connectivity to internet (at 114kbps) as a bundled package.7%) as comp ared to postpaid (6%) in the fiscal year 2003-04. 32 . Hutchinson and Max Telecom. these services were provided by government organizatio ns BSNL (Bharat Sanchar Nigam Limited) and MTNL (Mahanagar Sanchar Nigam Limited ). The other successful private name in CDMA was that of Tata Indicomm. CDMA was also known as Wireless Local Loop (WLL) in India. To begin with. Hutc h (now Vodafone) had then acquired Sterling Cellular.they are cost conscious. There were many small GSM providers. WLL consisted of mobi le as well as fixed. However. In 2001. Reliance inf ocomm became the first private operator to offer CDMA services in India. Idea acquired Esco tel. Hutchinson Essar. And CDM A became an instant success. they were not successful in capturing the market. A major factor was supply on Samsung and LG handset s with subscription. Aircel D igilink. This could be done by connecting the phone to PC with the data port. the number of GSM operators reduced to 8 by 2004.

Also. 33     . There were a few points noted in 2004 that showed great potential in Indian mobi le phone market. the mobile subscribers in India were 5 per hundred. Firstly. the mobile phones sales growth was amongst fastest in world by mid 2005 with additional 1. in 2004.9 billion in cash for acu qiring the 52% stake held by Hutchison Telecom International (HTIL) in Indian mo bile firm Hutch-Essar to complete a deal.5 per hundred) and other developing countries (Indu.9 per hundred). and monitors licensees • Telecom Dispute Settlement Appellate Tr ibunal (TDSAT): Resolves disputes brought by licensees or consumers • Wireless Pla nning and Coordination Wing (WPC): Manages spectrum allocation In one of Asia s top three deals for 2007. UK s Vodafone has paid a discounted price of $10. P. This figure was reached after a cut do wn of $180million was made (Web7). UK giant Vodafone took over Hutch (We b 6).The four main regulators of wireless include (Strother.7 million subscribers every month. which was very low as compared to China (25. Brazil (37. 2005). Russia (42 per hundred). 2004): • Department of Tel ecommunications (DoT): Sets policy and controls licenses for both fixed and wire less telephone operators • Telecom Regulatory Authority of India (TRAI): Regulates policies of DoT.

the compa nies grew in spite of external threats. son in law of Fred rik Idestam. Hence in 1920. The period between and immediately after the two World Wars was dedicated to dev eloping the businesses.3. Small community grew up around the Nokia factory as it attracted a large workfor ce. All countries had new products developing in all industr ies. in dustrial parts and raincoats. Finnish Rubber Works became a part of the company. 2005).2 About Nokia In 1865. and later on i n 1922. The wood pulp mill used hydroelectricity (generated from the river Emäk oski). Finnish cable works joined them (Indu P. In addition to footwear (galoshes) and tyres. Nokia soon bec ame successful. this was due to the European industrialization and the growing c onsumption of paper and cardboard. In the early 1900s. engineer Fredrik Idestam established a wood-pulp mill in southern Finla nd and started manufacturing paper. In addition to the traditional forestry industry. The outside world found it feasible to have Finnish products as alternative s for other industries as a result of the use of modern production methods. the other industries also achieved a good position on the Finnish mark et (Web 2). In 1895.. Thes e changes in world economy led the company to concentrate on domestic 34 . This attracted the Finnish Rubber Works to establish a factory in Nokia. This company was named Nokia. Gustaf Fogelholm. the company later went on to manufacture rubber bands. In southern Finland. a community called Nokia still exists on the riverbank of Emäkoski. Nokia started exporting product s to Russia and then to the UK and France (Web 1). took over the reins of the company.

markets for its different businesses. Grad ually the ownership of the Rubber Works and the Cable Works companies consolidat ed. 35 . This would later be reversed as the compan y started shifting its focus onto international markets (Web 2). After World War II the Finnish Rubber Works bought the majority of the Finnish C able Works shares. It was later in 1967 that all three companies were merged to form the Nokia Group. The following are the logos of three original companies that formed Nokia Corporation (Web 1). Increasing need for power transmission and telegraph and tele phone networks resulted in rapid growth of the Finnish Cable Works company.

The current Nokia logo dat es from 1992. the Finnish telecommunications authorities were able to set up a mobile network which connected the car phones to public network with the he lp of a new legislation (Web 1). In this way. The arrows were later dropped. 36         . A bout the same time. However. est. (Martti Häikiö. the majority of telephone exchanges were electr o-mechanical analog switches. 2002/04) The Finnish Cable Works had a history of manufacturing cables for telegraph and telephone networks and in the 1960 they established the Cable Works Electronics department. At the time o f formation of Nokia Group in 1967. It was in 1970s that Nokia started taking an active interest in the power and el ectronic business. Nokia DX 200. est. the s eeds of Nokia s global success in telecommunications were planted. which was equipped with high-level computer language and Intel microprocessors gradually evolved into the multiface ted platform that is still the basis for Nokia s network infrastructure today. and Suomen Kaapelitebdas Oy (Finnish Cable Works. At this time. 1898) was manufacturing galos hes and other rubber products. probably. These were successful. 1912) was producing telephone and power cables. Electronics generated three percent of the G roup s net sales and provided work for 460 people. Nokia began developing the digital switch (Nokia D X 200). the Cable Work s Electronics department started to conduct research into semiconductor technology in the 1960´s. Suomen Gummitehdas Oy (Finnish Rubber Works.The oldest was Nokia Ab (est. 1865) in the forest industry and power production.

as the 90s approached. was the first company receive GSM netw ork from Nokia in 1991.000 units. However. In 1981. This was the world’s firs t multinational cellular network. Nevertheless. The goal for 1994 was set to sell 500. This standard is known as GSM (Global System for Mobile Commun ications). The global demand for mobile phones increased in early 2000s and Nokia maintaine d its leadership 37     . such as rubber industry and TV set manufacture. Nokia m ade Nordic Mobile Telephony (NMT) mobile phone standard. it launched Mobira Cityman. and Nokia managed to sell 20 million. The strategy was to expand rapidly on all fronts. and in the same year Nokia made agreements to supply GSM networks to nine European countries. especially l ike the non-core IT and focus on two core business – mobile phones and telecommuni cations. By late 1980’s. the CEO in 1994. Nokia s operations rapidly expanded to new business sectors an d products through corporate acquisitions and became the European market leader in several fields.During the 1980s. In 1992. And by August 1997 Nokia had supplied GSM systems to 59 operators in 31 countries. the first NMT phone. the implementation of the new strategy helped the company s finances reach a sound standing. The company had incredible success in form of 2100 series phone. This tas k proved to be challenging. This strategy was formulated by Jorma Ollila. In 1987. created the basis for a s uccessful conquer of the world markets and rooted more efficient operational met hods in the company. Nokia striv ed to radically cut down the number of different businesses it had. Radkilinia. Nokia 1011 – a precursor for all Nokia’s current GSM phones was introduced. At the end of the 1980s a common standard for digital mobile telepho ny was developed. consumer electronics became Nokia’s major business. A Finnish company.

The mobile phone group developed mobile phones and devices on technologies such as WCDMA. there have been rumors that. telecommunications networks. GSM/ED GE. wireless data solutions and multimedia terminals. 3. the existence here is f rom 1994. Nokia maintained an aggressive strategy. 38 . Network infrastructure. In January 2004. enterprise solution and networks. They developed solutions for e-mail. Import of mobile ph ones was not easy and the tariff applied on them was as high as 27%. multimedia. Consumers t oo were not interested in purchasing mobile phones as call rates were as high as Rs16 per minute ($0. communication and network platforms were provided to t he operators and service providers by the network group (Indu P. the first ever GSM call in India was made on a Nokia 2 110 on its own network.40). The enterprise group was for helping busin esses ensure security and reliability of their network. However.3 Nokia in India Nokia has been the pioneer of mobile telephony in India. a group of businessmen tried to offer Noki a to the Swedish telecom company Ericsson during the recession in 1990´s (Web 1). By 2004. As noted above. Nokia was a world leader in digital technologies such as mobile phones. virtual private networks and firewalls for the businesses . 2005). Although the conditions in Indian telecom industry were not very conducive. Nokia reorganized itself into four business grou ps – mobile phones. The multimedia group provided advanced mobile devices and sol utions to the consumers. internet.. CDMA and TDMA. They developed new models as well as system.in the market. applicatio ns and sales channels for the market.

Nokia announced to further invest US$ 75 million in year 2008. Powerful global players like Motorola. Asia is the fastest growing market for Nokia. His plant as o n December 2007 employed approximately 6000 people.Another problem faced by Nokia was highly competitive environment in the industr y. overco ming all odds. 2005) (Web 4). Sony and Ericsson already had there presence in India in consumer durables. Nokia has retained the top spot for quite some time in India. Started a manufacturing in Sriperumbudur.. The differ ence it holds is the capability to be more sensitive to the people with lower pu rchasing power which hold the major share of these growing and developing countr ies market. Siemens. (Web 3 and Web 23). “Finnish handset major Nokia has retained the top slot in Indian GSM market with 79 per cent share in 2006”(Web 5) “Nokia came from be hind to stun the likes of Ericsson and Motorola and corner nearly 80% of the GSM handset market in 2007”(Web 4) Nokia in 2006. The current investment on th is is about US$ 210 million in the plant since January 2006. Competitors such as Samsung. the recent figures are. The consumer is going fo r high technology at reasonable prices. Motor ola nad Sony Ericsson have captured huge market shares. and hence were aware conditions prevailing in Indian market. Nokia s key strategy has always been to lead the market on the basis of technology as it has always held. Nokia India came out as the market leader with 56% share in 200304 and still continues to lead with 80% in 2007 (Indu P. Chennai. electronics and engineering secto rs. 39   . They respect any provider who gives the best combination of both. However.

also concentrate on 3G and Edge 40 . Opportunities . its incr ease role in Symbian is giving Nokia a bad image.Brand position: second most popular brand in In dia Weaknesses . . is still dominated b y LG.Slow to adopt new ways of thinking: a good example is clamshell phon es which are preferred by many customers.Huge market share . when it launched its first model.The Ngage is considered a flop. . .Increase their presence in the CDMA market.Size should enable Nokia to amortize Research and Development co sts and to get cost advantages .Being the market leader. much like Microsoft in the PC industry.3. Nokia was reluctant to produce a clams hell until this year.4 SWOT ANALYSIS (Web 8) Strengths -Is a dominant player in the smart phone market via its majority owner ship of Symbian and its proprietary Series 60 user interface which are projected to represent majority of the 100M smart phones sold in the next 4 years.

and m any other operators globally are selling their own brand of phones (Web 9) 41 . O2. including I ndia and other countries. . LG. Orange.New growth markets where cell phone adoption still has room to go.. NEC and others. nGo Bird) .ODMs (HTC and others) enabling carriers to levera ge their customer power bypassing the handset vendor. .Leverage its infrastructure business to get preferen ce and a stronger position with carriers Threats . Operators want to lessen t heir dependency on handset vendors and the dominance of Nokia.Delayed entry in 3G sector creates a risk to be displaced by leaders l ike Motorola.Asian OEMs who are entering the market very aggressively (TCL.

designed to dev elop or contribute to generalizable knowledge. This is done through evaluation of the strengths and weakness es of each method.1 Introduction Selection of type of method for data collection is one of the most critical part s of any research. primary and secondary data. Information compiled inside or outside the organization for some purpose other than the current investigation (Web 10). namely.” (Web 9). I n this particular study. observations and surveys are the major methods of gathering primary data. Since primary data is collecte d with specific purpose.102(f)] is “Research means a systematic investi gation. testing. METHODOLOGY ________________________________________________________________________________ _________________ 4. it is the most significant. Also that obtaining primary data can be expensive and time consuming Malhotra (2005). and evaluation. The data collection methods used in this research involves the search for both primary a nd secondary data. focus gro ups. This chapter is all about discussing the different techniques and method of data collection and selection of the most suitable method for the particular study. The federal definition of research by Messiah College as defi ned in the federal policy [45CFR46.4. 42 . Primary data are originated by the researcher for the specific purpose of addressing the problem at hand. including research development. Data can be collected in two forms. Depth interviews. depth interviews have been used as a means for obtainin g primary data. Information gathered by observing phenomena or surveying resp ondents (Web 10).

it is actually very problem atic. the researcher needs to evaluate and select t he type of method they will to be used for collecting the data for the research. ‘Qualitative metho ds’ is what people recognize and which is widely used. since. existing reports. Specifically a case study from IC FAI. Start with secondar y data. involved collection and an alysis of primary data in foundation with the secondary data. India on “Nokia’s Strategy in India”. in some way or the other both form of data collection are us ed. In most researches.According to Malhotra (2005). According to Cassel and Symon (2005). “Examination of available seconda ry data is a prerequisite to the collection of primary data. 43 . In this research. Secondary data in this particular case help ed the researcher to comprehend marketing strategies implemented by Nokia in Ind ia. 1998)”. As noted by Creswell (2003). Proceed to primary data only when the secondary data sources have been e xhausted or yield managerial returns. “The situation today is less quantitative versus qualitative and more how researc h practices lie somewhere in continuum between the two (eg Newman & Benz. Even before a research is started. Here. The Quantitative research methods and the Qualitative research methods are two options of approaches available for the researcher. the study was conducted to understand the perspective o f consumers and their brand image. They could only talk about the characteristics of qualitative research. Usually journals. an d statistics by public and private authorities are used collect Secondary data.” The study hence. Secondary data are data that are collected for som e purpose other than the problem at hand. more stress was laid on qualitative research rather than quantitative. the secondary data have been collected using marketing journals and other existing reports that were based on the topic. As a general rule stated by Malhotra (2005).

how important it is to choose proper methodology of collecting the data ..without an overarching definition. This traditional view is that quantitative enquiry examines data which are numbe rs. while qualitative enquiry generally adopts an inductive process (Hyde. p. because there were such a variety of methods that might claim this title and little consensus over a core meaning. It has also been noted that qua litative research gives more quality in data and also results in very specific a nd in-depth information. Th us. there may be a need to modify the questions to get the right data. 2000). It can be noted from abov e quote. 44 . There was a need to get the researched open up so that it can give more informat ion. 1991). The simple st definition is to say it involves methods of data collection and analysis that are non-quantitative (Lofland & Lofland 1984).456). while qualitative enquiry examines data which are narrative (Easterby-Smith et al. Also. As it was rightly said by Bate (1997) that qualitative research is about digging into the everyday life of people. Researchers need to use methodologies that are consistent with the assumptions and aims of the theo retical view being expressed” (From the Editors. Inherent in this dichotomy is the view that quantitative enquiry generally adopts a deductive process.structured inter view process. qualitative approach was adopted with an in-depth and semi. “The relationship between theory and methodology is important.

based on building a complex. A variety of empirical material is needed to be collecte d and studied for the 45 . Whereas. Hamilton (1994). formed with words . It is believed that qualitative research originated in recent times. qualitative research is selected as the means for research. in order to explore the selected topic of the study. Inter pretive research aims at understanding the actual production of meanings and con cepts used by social actors in real settings. Here. believed that the real roots o f qualitative research could be traced back to an eighteenth – century disruption that occurred in the fortunes of quantitative research. and conducted in a natural setting” (Cre sswell. “A qualitative study is defined as an inquiry process of understanding a social or human problem. critical postmodernism is a combination of critical theory and postmodern thought. 2003). Another way of defining it is to say it focuses on "quality". Gephart has defined three methodologies o f qualitative research. However. 1994). Positivism and postpositivism are based on realism and i nvolves comparisons of results and findings with preliminary propositions.4. reporting detailed views of informants. Gephart(2004). a t erm referring to the essence or ambience of something (Berg 1989).2 Qualitative Research “any kind of research that produces findings not arrived at by means of statistica l procedures or other means of quantification” (Golafshani. Others would say it involves a subjective methodology and your self as the research instrumen t (Adler & Adler 1987). holistic picture. which assumes that rea lities are value laden and contain contradictions. as noted by Milliken (2001) noted.

purpose of qualitative research. These include, case study, personal experience, introspective, life story interview, observational, historical, interactional, and visual texts that describe routine and problematic moments and meaning in in dividuals lives. As cited by Golafshani N. 2003, Glesne & Peshkin, 1992, say “enjoying the rewards of both numbers and words” i.e. the knowledge obtained through detailed interviewi ng process with focus on compatibility or a qualitative analysis is different a quantitative analysis. Researchers have argued that that unlike quantitative res earch where the tool is the most important in qualitative research the researche r himself poses as a tool and is the most important part of the research. So it is very important role of the researcher in qualitative research. As Sankar (2006) noted, Qualitative research is unstructured, exploratory in nat ure, based on small samples, and may utilize popular qualitative techniques such as focus groups (group interviews), word association (asking respondents to ind icate their first responses to stimulus words), and indepth interviews (one-on-o ne interviews that probe the respondents’ thoughts in detail) (Malhotra, 2005). Th e qualitative research interviews differ in practical features such as length, s tyle of questioning, and participant numbers (group or individual). Though most of them are face-to-face, it can also be carried out via internet or on the tele phone (Cassell and Symon, 2004). This study uses the mode of telephonic intervie ws as a qualitative research tool. 46

 

4.3 Quantitative Research Quantitative research methods are the orthodox way of researching. In very techn ical terms, “Quantitative data is data expressing a certain quantity, amount or ra nge. Usually, there are measurement units associated with the data, e.g. meters, in the case of the height of a person. It makes sense to set boundary limits to such data, and it is also meaningful to apply arithmetic operations to the data” (UNECE). Quantitative Research methods are important and the traditional form of data col lection and analysis. We need to develop some understanding of this them. Quanti tative research provides a more general outcome rather than more specific. Since the answer is made exactly to what the question is, there is no scope extra inp ut from the interviewee. Also there is no personal touch to encourage the interv iewee to give concentrate and give answer. Another problem being one can not che ck the genuineness of data very easily. However when the sample is large or more generalized views are needed than quantitative research method is a better opti on. 4.4 A Qualitative Approach Quantitative research gives measurable quantities as the outcome. However, here the human nature is under consideration. The objective is to comprehend and asse ss perceptions of different consumers towards the mobile phone. More stress may be given to feature, looks, cost, software or any other feature of the mobile ph one. Since the study kind of tests out the effect of marketing activities by che cking the brand loyalty of the interviewee, it is important to understand the em otion associated 47

with the answer given by him. People have different perspective for different co ncepts, it is amazing how some may react in a positive way, some in negative way and some may have no reaction at all to it. In words of Hancock (2002), the hum an behavior is very complicated and unique to every individual. Thus there is a need to have a deeper understanding than an ordinary survey. Human behavior is s trange, and cannot be measured in quantitative terms. Kaplan (1964) suggested th at there is only one thing that distinguishes human from natural world; it is ou r ability to talk, interact. This ‘interactive nature’ of qualitative research makes it possible to measure the reactions of a great many people to a limited set of questions thus facilitating comparison and statistical aggregation of data. Hen ce, a flexible qualitative approach is followed. 4.5 Data Collection Since the objective of this research is to measure degree of success of marketin g strategies implemented by Nokia, it is very important to first identify the ma rketing strategies applied by Nokia in India. For this purpose, the best availab le sources are case studies, news articles and personal knowledge of the marketi ng strategies. After getting a complete picture of the existing scenario, there was a need to get the public interpretation of the brand and its value. For the purpose of getting more generalized view, the dealers of mobile phones were inte rviewed. Since they deal with buyers and prospective buyers on a regular basis, they can give an overview of the market. Also it was thought that their personal choice will be considered for the same. Hence for a new research a primary rese arch was conducted. A secondary research was also carried out to understand the marketing activities and future in general. 48

Drever (1995) defines semi-structured interviews as ‘the interviewer sets up a gen eral structure by deciding in advance what ground is to be covered and what ques tions are to be asked. The study also involves semi-structured interview as qualitative research tool. exploratory.’ It is therefo re important for the researcher to look at the problem from the perspective of t he interviewee. According to King (2004). ‘The interview remains the most common method of data collect ion in qualitative research. employed in various forms by every main theoretical and methodological approach within qualitative applied psychology. and follow-up que stions to get the interviewee to clarify or expand on the answers’. Hence. In the research. semi structured or unstructured. in-de pth interviews were carried out as a qualitative research tool. This leaves the detailed structure to be worked out durin g the interview. probes. In-depth intervi ews are taken with a small number of people on a particular topic.4. The researche r’s job here is to find out detailed information about the interviewee’s 49 . 1983) As King (2004) says. qualitative research interviews a variously referred t o as depth. there is a need to not completely structure the interview .6 Interviews “A qualitative research interview is an interview whose purpose is to gather descr iptions of the lifeworld of the interviewee with respect to interpretation of th e meaning of the described phenomena” (Kvale. and the interviewer responds using prompts. The person interviewed can answer at some length in his or her own words.

Despite bei ng expensive. one of the interviews was considered as not useful.. and may need to understand the questio n which interviewee is not comfortable answering in. In case of survey via form. The questions of what. He can also jud ge by the expressions of the interviewee. how and why can be answered using interviews (Boyce et. The number of interviews was restricted to such a small number as it was felt that the inf ormation was more or less repetitive and no new information was there for taking . Here. this can lead to improper answers filled in a hurry rather than with concentration. 2000). Three out of these were taken on telephone due to large distances. ‘Any other reason you think…?’ and many more ca help the interviewer get more information from the interviewee. The technique of stimulating respondents to answer more fully and relevantly is termed probing (Cooper and Schindler. A major benefit that interviewing gives is that the interviewer can modify the q uestions according to the need. Question such as ‘could you throw more light on th at?’. This is another benefit of conducting an intervie w. 2006). In such a case the intervie wer needs to develop a sense of confidence with the interviewee to make him comf ortable. al. behaviors and perceptions through intense interviews. ‘What reason do you think for this?’. due to uninterested attitude of the interviewee and extremely short answers. as usually people do not like to spend their time and try to finish of the pr ocess as soon as possible. telephonic interviews did help the researcher to converse with the respondents who are far beyond 50 . Actually this can be done in the beginning of the interview so that rap port develops and interviewee answers all question with interest.actions. For the purpose of this dissertation 8 semi structured interviews of Nokia’s deale rs were taken.

The personal effect of interview was used to d evelop rapport with the interviewee and modify the questions according to the ne ed. semi-structured interviews were ado pted as a source of primary data.the reach. As a result. i. qualit ative analysis was selected. Also due to some distant interviewees telephonic interviews were used. the right method for this research. After discussing t he pros and cons of each method. Case studies and news articles were used for secondary data. All the interviewees were explained why the interview was being condu cted and what the main theme of the interview was. 4.e. where in-depth. 51 .7 Summary This chapter was used to explain the methods available for conducting the study. Next chapter will involve deep discussion of the analysis and findings of the ga thered data. so me interviews were longer than the other was. The interviews were open-ende d and gave interviewee the option to answer the way they wanted.

Knowing that Indian market is very different from other markets it was already operating in.1 Introduction Marketing strategy of a company in a new country plays a vital role in determini ng its future in that country. Hindi (nation al language. Also. product (customization). it devel oped an extensive distribution network which also helped it take its products to rural markets in India. In1999. to discuss the strategy. place (distribution) and production. 5. we consider the simple c oncept of 4 P’s.2 Product 1998 was 51st year of Indian independence. as well as promotional campaigns targeted at Indian audience to gain a foothold in the market. The success of 5110 initiated Nokia to focus on feature-specific localization.5. To capture the widespread Indian market. and mother tongue of 43% Indians) user interface was provided in No kia 3210. namely. Nokia also tied up with Sony music for top 20 hit songs as ring 52 . It adapted the to Indian conditions by launching n ew products and enhancing the products with features designed specifically for l ocal customers. The introduc tory offer for this model also had inter-changeable covers. MARKETING STRATEGY ________________________________________________________________________________ _________________ 5. Here. Nokia came up with an India–specific s trategy or a glocal strategy. price. hence Nokia provided the ring tone of National son “Saare Jahan se Achha ye Hindustan Hamara” in 5110 model.

tones. Head of Marketing. "We have made a personality statement throu gh the campaign. Nokia also launched games based on Indian mythology namely ‘Makhan chor’ and ‘Swayamvar’. I n 2005. became an instant hit. Nokia sales increased f rom 58. " said Sanjay Behl.6% in July 2004. Another feature that Nokia came up with attract youth was one which enabled the customer to slide in his or her photograph or for that matter the loved ones. It had spearheaded the industry in online distribution of tones. Since. (2005) 53       . wherein the message is clear-personalize your phone. Nokia 3210. These services did not just increase their sale of mobile phones but were also fruitful as they made huge profits by selling the games. Nokia India. du st resistance and torchlight. The model 3610 was launched with an en hancing Hindi text messaging facility in 2001. The most successful customization came in 2003 when Nokia came with 1100 and 110 8 specifically designed for Indian market. M. Menon. Nokia was also the first handset manufacturer to launch games download in India in 2003. in India people don’t know English in village s.2% in July 2003 to 59. i n the picture frame behind the phone. Both were arcade games involving two most of the famous characters nam ely. This was a part of Nokia 2112 model (CDMA) . It had features of anti-slip grip. graphi cs and game downloads. Earlier they had a simila r feature in GSM handset Nokia 2100. Nokia came up with “Saral Mobile Sandesh” (SMS in Hindi). The feel of the campaign is such that it would evoke a sense o f being. Lord Krishna and Arjun.

In November 2007. In Fashion. the first ever futsal Championship.” (Web 12) 54 . Shaggy. M ark Knopfler. The N series is a multimedia sub-brand of Nokia.Nokia also tied up with Bharti cellular in 2005 to customize its handsets throug h which its users could access multimedia services by using an additional key on the mobile phone. Nokia has been associating with youth passions like Cool Sports. Tamil. (Web 11) “As part of its strategy to connect with the young population in India. which is liked by every age group equal ly." said Vineet Taneja. Nokia hosted the Ngage QD Gaming Championship. in music N okia has brought several world class music artists including. There could hav e been no better option than this flick. In th e genre of Cool Sports. Shakira. Over the last few years. Bengali and Kannada. and Fashion. Sting and Enrique Iglesias to India. Later on in 2005. Nokia India. Nokia banked on the opportunity by coming with FM phones attracting a lot of youth. business director of multimedia. This gave opportunity to cinema buffs to now watch the movie Sholay on the go. Also since many FM channels were introduced in India in early 2000’s. "It is one of the bi ggest blockbusters that the Hindi film industry has churned out. Music. Nokia came with SMS services in other Indian langua ges including Marathi. Nokia came with Bollywood classic movie ‘Sholay’ preloaded in N95 8GBand N81. Nokia has a stron g association with Wills Lifestyle India Fashion Week and Nseries lifestyle led campaigns amongst others. Defend Yo ur Turf.

.Entry Business Unit (Mobile Phones Business Group) Soren Peterson in an interview. that its handsets were not the cheapest in the market. the company is working diligently towards it. Nokia is in process of making cheap GPRS enabled handset. pricing was a major success factor for the company. The head of marketing at Nokia India. 4000. This show how nature o f Indian consumer is 55   .In another attempt to give India handsets which will enable them to use more fea tures. This price.) amounted for 65% of the total sales in India. (Web 13) 5. "We are planning to bring internet access to all the masses in India through our low-cost handsets. Nokia depended majorly on rural market. who are interested in using the new facilities availab le. the purchasing power of the people was not high as compared to o ther developed countries. was priced at Rs. but was enh anced with several special features which were not available in other phones of the same price. although was at a premium as compared to entry level phones." said No kia s Senior Vice President . Nokia did achieve success in India. Again targeting the low and middle income class. in spite of the fact. Research unveiled that phones of lower price range (be low Rs8000 or $200 approx. This model further be came the best selling model ever in India. Nokia 1100. the users can surf the net at a very reasonable price.3 Pricing Pricing of the phones was of prime importance for success in India. Being a deve loping country. “The phone is a combination of product benefits and pricing” (Web 14). which was specially launched for India. therefore.. It also increased the brand preferenc e of Nokia from 66% to 77% within 9 months of its launch. Sanjay Behl said. In this handset .

Nok ia tied up with HCL Infinet for sales and distribution of its phones and appoint ed them as Nokia distributor for GSM handsets in India. The major strategical move by Nokia in this regard was that it charged a lower price in India than most of other countries for the same model. and selected distributors from FMCG line or experien ce holders for durables or automobiles. accessories.4 Place (Distribution) Mobile phones in India are considered as to be consumer durable. hence they are not just sold through exclusive telecom retailers but also through general retai lers. hands free kits and car kits amongst others. batteries.value sensitive. The distributi on in these small towns called for non traditional channels. about a fifth of the mobile pho ne sales in India were consumer durables or service providers’ shops. The sales in these urban markets were beginning to saturate. By mid 2005 the mobile phone sales in smaller towns and cities was higher than those of the metropolit ans. covers. They came up with Nokia Professional Centers (NPCs). 5. In 1995. NPCs were one stop shops for the complete range of Nokia mobile phones. In fact. Nokia Priority Dealers (NPDs) and redistribut ion stockiest all over India. Nokia designed modeled its distribution strategy on lines of FMCG business . It also provided the after sales services for Nokia’s handsets. HCL Infinet provided a c omplete range of Nokia’s GSM mobile phones. Nokia strengthened their distribution network. The retail network they developed was very strong and dedicated. chargers. data products and mobile services. An important reason for the success of mobile phones in India was limited reac h of the landline phones in several parts of the country. NPCs were multibrand retails 56 .

Busi ness and Entry phones make it easy for the public to keep up to date on the late st technologies and trends in the mobile industry. While redistribution stockist s were for supplying handsets across India. Multimedia. These were spread all over the country and provided phone repai ring software up-gradation services. With a simple-to-navigate setup.000 square feet and is designed to reflect the design ethic of the Nokia brand. the store provides a relaxed and satisfying customer experience. was that of Nokia Concept Store in Bangalore in south India. Nokia India (W eb 15).outlets with 60% of their area dedicated to Nokia. The layout and design of the store follows the same pattern as Nokia Concept Stores around the world to guarantee an easy and informative shop ping experience. MG Road. They also displayed complete range mobile p hones. Head Marketing. The high -tech display terminals and dedicated areas for Imaging. data products and complete mobile phones accessories. Details as per Nokia website are given below. open doorways and lowglare lig hting. 57   . The store measure s approximately 2. Another effective c oncept that Nokia up with in 2005. Smart. “This concept store is being set up with an objective to provide Indian consumer with a truly enhanced mobility experience through its cast and exciting range of Nokia products and m obile accessories. We are keen to lead a unique mobile retailing experience for consumers through these thouch points” Sanjay Behl. “Nokia Concept Store in Bangalore was the country s first concept store in India t o provide customers a complete experiential mobile experience. It was located in the city centre. HCL also came with Nokia Care Centers (NCCs) for providing solutions to mobile r elated problems.

In the early days. Hence. Delhi. Hydera bad. In O ctober 2007. their purchasing power was not as h igh as other countries where Nokia was operating. the state-of-the-art Nokia Concept Store will provide mobile phone consumers in Indore a world class interactive and informative shopping experience. Nokia kept its promise of enhancing the mobile experience of its customers. nationality and cultures and to add to it.Nokia today has eight Nokia Concept stores in Bangalore. print media concentrated on Nokia’s status.” (Web16). and had to establish its non-popular brand. “Located at MG road and spread over 3500 sq. F or the purpose of developing the products specifically for markets with high pop ulation and low penetration. where people have strong believe in their mythology .5 Promotion Nokia entered India with one for mobile services to start. Chandigarh. Nokia developed a team called Mobile Entry Business Unit. India is a multicultural country. allowin g them to get a first-hand experience before making a purchase decision. Even after the market grew. 58         . square fee t. Nokia’s vast distribution network covered almost every city or town where mobile network was available. Nokia’s advertisements concentrated on product attributes. Nokia decided to localize its products heavily. 5. To build credentials the company used both print and tele vision campaigns. g lobal R&D and international awards won to establish brand awareness. Chennai and Indore” (Web 12). Ludhiana. they launched the first global format Nokia Concept Store in West ern India at Indore. Jaipur. Gaining acceptance of Indian consumer is not as simple as other countries. to achieve approval of the mobile consumers in India. feet.

Sanjeev Sharma. Analysts believed that Nokia would lose the top end consumers who attached lot o f importance to mobile phones as a style statement. It aimed at h ighlighting the broad appeal of mobile phones across all socio-economic segments of India. be it the 59 . Nokia used all their international advertisements with slight modifi cations in India. Nokia India marked its special presence in advertisement world with ‘Made for Indi a’ ad campaign on the launch of Nokia 1100 (Appendix 3). the advertisement for NGAGE showed two young per sons getting bored stuck in traffic jam and then they show them combat with supe r natural powers. It showed how NGAGE could help them pass their time. Nokia Mobile Phones India. This was the fourth adver tisement created in India but created maximum stir in the industry. The advertisement made a clear deviation from h itherto hip urban-focused advertisements that Nokia are known for. But it di d not have a very good affect on the Indian audience as they could not relate th emselves to the people over there. There was needed to make special advertisemen ts for India. The technology driven ads have created a rub-off on the entire No kia range. And fashion and lifestyle products create a desire at all levels. The advertis ement showed that the Nokia 1100 was launched first in India and addressed all t he concerns of Indian consumers. The aim was to highlight Nokia’s Indian image.Until 2003. For instance. Managing Dir ector. said “No. not in the least does the latest piece o communication create dissonance in the minds of consumers with regard to Noki a’s brand image.

a nd Nokia 1100 went on to become best seller not just in India but also worldwide . They conducted research to get to know the needs and concerns of the u sers of this segment. Another major concern was the gr ip of the phone.first-time urban or rural user. Cricket is considered a religion in India. One of the advertisements was for Nokia 2280 which was offered in bundl e with reliance mobile connection. As Sanjeev Sharma said. The company planned to build brand loyalty amongst this segment. because of the climatic conditions in this country people usual ly have sweaty palms. The dejected young lad starts to walk away. “One of the things we found out was that the torch is of high value. Nokia was expecting exponential growth in smal l towns and rural areas. a cricket fan was watching cricket with his daughter and a prospective groom walks in. just then the televis ion 60 .” (Dixit. In an advertisement released during cri cketing season of 2003. Nokia has had a strong association wi th the sport through its advertisements. This was a simple one which educated the audi ence of availability of cheap handset with bundled airtime. u rging users to switch off their cell phones while watching movies. what if the handset slips?” One advertisement that Nokia made in 2000 was a public interest advertisement. and that explain s the extensive use of handset covers in India. The advertisement was a success. 2004). and therefore the. It showed a c lip where hero picks up an argument with person sitting in front row in a movie theatre. The major reason for handset was. which he is un able to catch. Besides that a major concern was dust… People fea red that dust might penetrate through the gaps of their keypad. the father throws the ball to him.

gets blank. Hutch then came with an advertisement showing people watching television on Nokia 6630 which was EDGE enabled. It targeted the rural India. It was a audience specific advertisement and encouraged the use of Hindi SMS amongst the rural population Nokia was not the market leader in colored handsets. Another successful. India wo n the world cup and this format of the game was an instant hit in India. Hutch” (Web 18). Chief Marketing Office r. 2006 (Web 17). I t was a very colorful 61     . it cam e up with advertisement ‘Har Jeb mei Rang’ (color in every pocket) for Nokia 2600. said Mr Harit Nagpal. impressing the father. This helped Nokia to increase i ts sales. India-specific campaign was the one where phones with Saral Mobile Sandesh (Hindi SMS) were promoted. “Clips fr om these 13 television channels can be accessed by Hutch and Orange users throug h their EDGE-enabled mobile phones. No kia sponsored the ICC World Twenty20 2007 in South Africa. Recently. network provider Hutch came up with television on mobile phone. The advertisement targeted the middle class youth of India. The boy gets a message of latest score update on his Nokia mobile phone. In 2004. To its luck. The enthusiast fan is frantically trying to find the score. where mob ile penetration is low. Nokia was the on air sponsor for the West Indies World Cup and for th e Champions Trophy held in India. To regain its share. The advertisement showed a postman giving a mobile to a girl which was sent to her by her brother so that she can exchange Hindi SMSes w ith her brother. In 2007 itself.

Nokia announced its a ssociation with Bollywood s most awaited multi star blockbuster. alarm amongst others at a very reasonable price. “Success is the name of the game”. which will demand that model. One of them starring the superstar of Hindi cinema. ring tones and wallpapers on their mobile phones. Nokia users can exclusively watch OSO movie clips . Shah Rukh Khan calling Nokia as his frie nd and companion for 10 years.in/oso. a sp ecial website created for Nokia and OSO association” (Web 19). It showed the idea o f color spreading happiness in every life. Nokia came up with some good advertisements around the end of 2007.advertisement. Nokia even faced the problem of brand 62           . showing colors spreading out of Nokia phone. making it easy to target the specific audie nce. Even different media was used according to th e audience. animated characters of OM (pla yed by Indian superstar Shah Rukh Khan) that can be downloaded exclusively on al l Nokia GPRS enabled handsets by dialing 55555 or from www. Nokia followed model-specific advertising for most part. Different advertisement s were made for each model of Nokia. Om Shanti Om (O SO). Other advert isements have been model specific as Nokia’s advertisements have always been. He expresses how it brings and spreads happiness and how it has been with him through the ups and downs of his life. Another advertisement shows Nokia 1650 with features of cricket game. behind the scenes videos. No kia has created a special OSO Crazy mobisode . As a part of this tie-up. “As a part of its strategy to enrich mobile user experience.nokia.co. Othe r advertisements include Nokia 7900 Prism. “The new edge in fashion” and Nokia E ser ies.

Nokia has embarked a new adve rtising plan to consolidate its ad campaigns and strengthen its brand identity.identification in the early stages as there were no specific signs suggesting th at it was an advertisement from Nokia. Since 2005. 63 .

2 Background of the Respondents For the purpose of collection of primary data. which in turn depends on location. Th is chapter deals with Analysis and Discussions of the findings. ANALYSIS ________________________________________________________________________________ _________________ 6.1 Introduction Analysis of the data is very important part of any research. Out of this one was considered not valid for the research. 8 dealers of mobile phones in Ind ia within the age of 20-40 were interviewed. data of all the respondents to the interview was compared to give better understanding of the situation. These dealers deal in many brands and have the first hand knowledge of market a nd consumer perceptions. 6. the thoughts still vary due to personal choice s and the type of customers they deal in. but what matters more is the interpretation of that data. mobile dealers were interviewed. However. To begin with we will discuss the background of the respondents.6. The quality of data collected matters. Then. The number of interviewee was restricted to such a small number because of uniformity of the responses from the 64 . Firstly. this comparison was used to achieve the objectives of th e research by evaluating them on the basis of secondary data. Unique personal qu otes from respondents were taken as a basis of comparison of the different views to consolidate it into finding of the research. To get a more generalized view of the thoughts.

All major companies Sony Ericsson Akshay 31 New Delhi Nokia. Sony Ericsson Nokia E50 Rishi 27 Gurgaon Nokia. Being the dealers of mobile handsets. 5 owned Nokia phones. The youngest respondent was 23 y ears of age and the eldest 39.responses. Samsung. Chinese brands Nokia 6230i Sourav . All major companies. Out of the 7 respondents. making it easier for the re searcher to conduct the interview. these respo ndents had more than decent knowledge of the phones. The background details of these respondents a re given below: Name Pradeep Age 39 City New Delhi Dealership Nokia. All major companies Nokia NGAGE Sumit 23 New Delhi Nokia. All major companies Handset owned Samsung Srikant 29 Chaibasa Nokia (Distributor and Dealer). It was believed that information was getting repetitive and no new in formation was being achieved.

All major Nokia N73 65 .25 Kolkata Nokia.

cellular phone was considered a luxury and very c ostly affair… Establishment costs for the network providers was very high… But now s cenario has changed… prepaid connections and lifetime connections are the major fa ctors for the boom in the market…” Sourav “There has been tremendous growth in the past few years…” Akshay “The market has seen a growth in terms of both quantity as well as quality… Probably the most booming market at the point of time…” Rishi 66 . Chinese brands Yuvraj 27 New Delhi Nokia.companies. As we know. The respondents reply was as follows: “Launched about 10-12 years ago. more general que stions were asked. The future also seems to be bright as mobile phone is considered as consumer durable in the country. the Indian cellular phone industry has witnessed exceptional growth in the past few years. Sony Ericsson Nokia N95 8GB 6.3 Analysis and Discussion To start the conversation and make the interviewee comfortable. They were asked about the way the market has grown and about the fu ture of the market. First of all they asked to comment on the cellular phone mark et of India.

Few reasons were mentioned too. different reasons were given to comprehend their beliefs.Everybody believed that market had shown dramatic growth in past few years. scope of sales will always be there…” Akshay 67 . “Mobile phone has become a part of everybody’s life… It is almost impossible to imagin e a life without it… This by itself tells about the future of the market…” Pradeep The above statement by Pradeep marks the importance of mobile phone in the life of a middle class man today. the opi nion was general of the respondents that the industry has a very bright future. “This business has a very good and bright future… The margins are getting lower but the turnovers are increasing by the day…” Srikant “I have a strong feeling that it will keep on growing for some time before it reac hes a saturation level… Since the average life of a handset is 1-2 years. However. believed reasons such as prepaid connections and lifetime connections pla yed important roles in getting the industry where it is now. who has a vast experience of 8 years. 25 years old Sourav. When asked for the future of this business.

every respondent had no do ubts that it was Nokia all the way. “Futur e will see universal rate for any call made. so the future is bright for the pr ospective buyers…” Sumit “Will definitely continue to grow in similar fashion for next 2-3 years. sturdiness. However. long battery life. reconfirming Nokia’s status in the m arket with almost 70% share in GSM handsets. brand image due to past experience. irrespective of the distance…” Sourav 6. f urther increasing the sales and talking about better future for the market. number of models offered “People look for durability and simple ness in usage” Sumit 68 . they believed that compani es like Samsung.4 Success and the Brand Not surprisingly. When asked about reasons of Nokia’s success. Probably the purpose to say so was that this will lead to more usage of the mobile phones. due to competition customer is enjoying the position of a king… with margins as low as 1-2% its not easy for the retailers… the increasing demand is attracting more and more retailers. when asked about the market leader. Motorola and Sony Ericsson are giving Nokia good competition an d have seen major increase in sales.“In the current situation. the respondents believed that features of the phone were main driving force for the sales of handsets. Other important reasons included. user friendliness. resulting in a lot of scope… Future will see more stylish and feature specific phones deman ded…” Rishi The call rates in the future were believed to have more uniformity. In a way.

now they believe that this company is re liable… there is a strong brand preference…” Yuvraj “People purchasing Nokia also had problem. He believed battery was a major driver of the sales and Nokia had the best. universal charger…” Sourav “Long life and user friendliness… People have faith in Nokia due to its good history” Pradeep However. He also believed that. but that was really rare… in comparison u sers of other handsets faced problems on a more regular basis” Akshay “Easy to operate. where he compares Nokia to pioneers in o ther industries. Nokia solved this purpose… Nokia is also associated with a rough ‘n’ tough ima ge. believed there a few reasons for succes s in Indian conditions. 69 . They incorporated th e meaning of a mobile phone as Nokia. “In India working class people prefer high ring volumes due to noise pol lution. Sourav.“Nokia has always satisfies the customer. the Nokia brand image was that of the best. people are confident that it can take more dust and shock. which unfortunate ly is in abundance in India…” Sourav As noted above. high r inging volumes and rough and tough features were special advantages in Indian co nditions. This can be noted in Akshay’s answer when as ked about the market response of Nokia. He said. excellent resale value. one of the respondents. To better that they had a universal charger for all handsets helping people to charge phone almost everywhere.

“Excellent… its like what Maruti is for cars… what Bisleri is for mineral water. The marketing strategies implemented by them were not mentioned by most o f the respondents. Srikant however believed that Nokia had better distribution s trategies than its competitors. the reasons for Nokia’s success were believed to be the features of t he phone. as this increased Nokia’s sale. as every respondent had only Nokia on mind when asked for the market l eader. the Pioneer” Importantly. So the name Nokia (which sounds Japanese). He was quoted as saying. higher sales helped th em evade new markets. however. He believed that Nokia was the first to enter a new market and create a brand name amongst the new users.. according to h im it worked like a circle. earlier felt i t was an Japanese company. No kia’s case is similar to that of Tiger beer . “Though has a superb brand image. handsets these days are manufactured in Asian countries such as China” Sourav 70 . helps them disgu ise their origin (Web 20). The buyers according to them. “Though the company is Finni sh.people do not associate Finland with high-tech products. When asked about the origin. they all knew that Nokia is a Finnish brand. people were more interested in the manufacturin g of the handsets rather the origin of the companies. Though. Also. I believe the key to their success lies in deeper penetration… They are the first t o each every new market… this increases their sales and in turn increase their abi lity to invade more markets…” The respondents being dealers of Nokia had fair amount of knowledge of the compa ny.

However. This means that people will n ot feel very uncomfortable while changing the brand. The others were flexible. they believed that Nokia’s advertisements were not 71 . Nokia’s promotion strategies have been very aggressive in India. what drive their sales are the product features and n ot its marketing strategies. leaving 2 of the correspondents. warranty. there was no mention of the marketing strategies in success of Nokia. This however.5 The 4 P’s Not very strangely. which company would you for? Would you sti ll go for Nokia?” Interestingly. When everything is the same. “G iven the phone is homogeneously same. To extract some information. the respondents were a sked to comment on their advertisements.“Earlier any new brand was considered as Japanese or Western. “Nokia only. They are brand conscious bu t not brand loyal. 6. This shows how the population of India is flexible to changes. why take the risk ?” Akshay said. also they have had special strategies to attract Indian audiences. saying that they would make the decision based on the added features such as looks. no one was sure which brand to go for. battery life and after sal es service. is not very good for the future of Nokia. The indication here is on promotions. probably because of the name… now they realize the difference… but the brand already has its status by t he past…” Pradeep “My customers are not literate enough to understand the country of origin… they beli eve in my words and the company that has done well in the past…” Sumit To check how brand loyal people are to Nokia. the following question was asked.

extra ordinarily great. Also the reach of their advertisements to target audience was appraised. the advertisement changed the way Indian audience felt for Nokia. “ ‘Mad e for India’ ad campaign was revolutionary… it changed the way people thought about Nokia… it became more of a home company than other… people could relate to it” Rishi “The Nokia 1100 ad increased my sale by a fortune… I cater to the lower level custom ers. People almost forgot that Nokia was a foreign company. the respondents believed that the adverti sement for Nokia 1100 was a phenomenon by itself. and the phone was made for them… the ad highlighted its features… the impact wa s such that customers new to mobile phone believed that it was an Indian company” Sumit 72 . but were simple. The advertisement made the audience fee l a bond between them. According to respondents. “Nokia’s ads touch you… in very simple ways they con vey the message” Pradeep “What is special with Nokia’s ads is their reach to the audience… with model specific ads its very important to reach the target audience for that model… Nokia has done that more than any other brand” Srikant When asked about Nokia’s advertisements. The phone was made especially for Indian conditions and advertisement showing a truck driver using the phone w as perfect for the campaign.

It went on to become the best-seller amongst all mobile phone s in India. The major shift came with the launch of ‘Made for India’ Nok ia 1100. Srikant credits Nokia’s distribution channels for the success for the company. It was very clea r in the market that Nokia charged a premium for their brand. Amongst the branded phones. features such as rough and tough body. This phone was specially made for India. but were not reli able. “Though has a superb brand image. though it was not very large. prices of Motorola and Samsung were believed t o very competitive in low range segments. keeping in mind the dusty and greasy conditions. extended battery life . This helps them not just increase their sale but also create a better brand image. As can be seen in the comments above. universal charger and high ringing volume have had pivotal contributions in th e sales of the company. I believe the key to their success lies in deeper penetration… They are the first to each every new market… this increa se their sales and in turn increase their ability to invade more markets…” It is a f act that Nokia has its dealers and distributors not just in the cities but also in small town and now in villages. then it gives customer the confidence to purchase the phone. as when their phones are available everywh ere. 73 . user friendliness. As noted above. Chinese handsets were sold because to cheap price.Nokia was seldom referred to as the price leader of the market. “The cheapest handset in the market is n ot Nokia’s… It has been so since last few years… Motorola leads on this front… Motorola along with Samsung provide more feature a reasonable rate…” Sourav The features of the phone were believed to be the main driving force for the sal es of handsets. long life of the handsets.

camera.6 Future and Scope of Improvement Any market with high technological environment goes through rapid changes. “they will keep the prices of branded handsets under check”. iPhone. There are many changes taking place in mobile phone market in India. The idea was to carry a gadget with everything in it. As Akshay s ays. “Many phones such as Blackberry. from camera to mp3 player to inter net surfing to office support. The demands of c onsumer are changing. Nokia is the secon d most popular brand in India” Srikant “Everybody is running after particularly feature packed phone…music. multimedia…” Rishi The recent threat has been that of cheaply priced local Chinese handsets. The re spondents are however not very convinced with them. gaming. Yuvraj though does not seem amused with them. They prefer purchasing phones with most features. The futures of these handset s are not really great. O2 etc hav e changed mass’s thinking… they act like a mini laptop” Sourav “Features like camera and radio attract people more nowadays… its particularly helpf ul for those who can afford these devices otherwise…” Sumit “The sales are also brand driven… according to Brand Equity 2007. Here too is the customer is the beneficiary.6. “they are having high sales… they 74 . executi ve.

indicating towards the drawbacks of a company with high expectations.are meant for those who don’t value their money… useful for some as features like du al sim are not present in the brands”. “They are not the cheapest in the market… there is a need to develop a phone especi ally for low price section… amongst the enviable range. The respondents were happy with Nokia overall. they had a few complaints to make regarding their after sa les services. “A major problem for Nokia is its good image… they have set high standards for themselves… the trick lies in maintaining their image… a smal l fault by other companies may not be as a big a issue as it will be with Nokia… t hey have a set platform and need to bank on it”. R ishi made and interesting comment. “Nokia are taking its brand image for granted”. similarity of the handsets and price. the place for a PDA is sti ll empty…” Pradeep “Customer services needs a major makeover… the staff there are not very well trained… software problems exist… they keep on modifying the same model to just increase th e number of handsets on offer… no real change can be noticed… as example we can see N95 is available in 3 different models…” Sourav As respondent Akshay notes. T his shows that in such a fast moving market. Even then. This is a very interesting point of view. there marketing can not be put to r est at all. limitations of the handsets. specially in comparison to other companies. 75 .

There was specific stress on improving the after sales service. Howe ver. 76 . they feel Nokia needs to overcome the above mentioned limitations to contin ue the percentage of sales they have.The respondents believe that Nokia’s future is bright as they expect the company k eep coming up with the kind of handsets that give them technological edge as the y have done in the past. “The market is moving fast… competitors are getting better… if y ou don’t improve all your services you are bound to loose on the sales” Srikant. This is what differentiates Nokia from the others.

This should be do ne by becoming more customer-friendly to the Asian markets. The aim of the study is to critically analyze Nokia’s marketing strategy in India and to examine the effect on its sales. Over the time. There is also a need to develop a PDA phone for its high ran ge customers. mass market with its low range (but hi -quality) products. Then the chapter discusses to the limitations of the study and endows the suggestions for future research. the main drivers of sales of Nokia are the product features.7. The conclusions that could be drawn were. quality has been Nokia’s success factor. Nokia should project itself more aggressively to the low end. There is need for Nokia to differentiate itself from the past. The prices of Nokia phones are competitive but they are not the price leaders.1 Conclusion and Recommendations This chapter concludes the study by highlighting the key findings of the study a nd then some recommendations for Nokia for future. They 77 . CONCLUSION ________________________________________________________________________________ _________________ 7. much information o n the distribution network could not be gathered. The marketing strategy though aggressive and very custome r specific was not the prime force towards the sales. For this purpose secondary sources were used to collect the information of marketing strategies and semi-structured inte rviews of mobile phone dealers in India were conducted to check the market respo nse of Nokia. However.

If t ime is no limitation. Right now. However .have developed a brand name. their answer replicated their specific customer base and personal choice. The major drawback was not up to the mark after sales customer services. Considering the futur e. With this they can bank upon the brand preferen ce and increase the margin instead of sales. low end products for the mass market. Due to time constraints. Cost was also disadvantage in the process of the research. this could be the s olution to Nokia’s problem. this will be wise investment. Another aspect that can be considered in the analysis is the balancing act betwe en market share and profit margin. The dealers were chosen for interviews as it was be lieved that they would give a more generalized view of the whole market. As the other companies are gaining on market share. The key strategy that can be suggested is to maintain its leadership with reason ably quality driven. Nokia is in position to take advan tage of their brand name and may change their strategies to increase the profit margins.2 Limitations of the research and Suggestions The biggest limitation of this research was time. 7. and the consumers have a high brand preference. the i nterviews were restricted to a very small number. This view can also be considered by the researcher. The re is need to incash on this by continuing to launch the good quality products. 78 . the consumers should be directly contacted for their views .

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1994) 92 .APPENDICES ________________________________________________________________________________ _________________ Appendix 1 (Hofstede.

93

Appendix 2 (Solberg et al., 2006) 94

Appendix 3 (www.agencyfaqs.com) 95

96 .