Minor Project

Report On
“MARKETING STRATEGIES OF NOKIA IN INDIA”

In partial fulfilment of the requirements for the examination of Master of

Business Administration
(Semester 2)

Submitted By:
Name: ASIMUZZAMAN
Enrolment No.: 04235103922

Under The Guidance Of:

Name: Dr.Gurpreet Kaur
Designation: Associate Professor
Department of Management

Management Education and Research Institute

Janakpuri, Delhi-110058
Affiliated with
Guru Gobind Singh Indraprastha University
(Session2022-2024)
 TABLE OF CONTENTS
DECLARATION

CERTIFICATE

ACKNOWLEDGEMENT

EXECUTIVE SUMMARY

CHAPTER 1-Introduction

1.1 Purpose the study

1.2 Research objectives

CHAPTER 2- REVIEW LITERATURE

CHAPTER 3-Background Information

3.1 About the company

3.2 History

3.3 Marketing strategy of Nokia

CHAPTER 4-Reasearch Methodology

4.1 Meaning of research

4.2 Research Method

4.3 Data Source

CHAPTER 5- FINDINGS

CHAPTER 6-LIMITATIONS

CHAPTER 7-SUGGESTIONS

CHAPTER 8- CONCLUSION

BIBLIOGRAPHY
 CERTIFICATE

This is to certify that the project "ON MARKETING

STRATEGIES OF NOKIA IN INDIA" is an academic work
done by ASIMUZZAMAN under my guidance and
direction.

To the best of my knowledge and belief, the data of information

presented by her in the project have not been submitted earlier.

(Dr. Gurpreet Kaur)

Project Guide
 DECLARATION

I, Asimuzzaman Enrolment No. 04235103922 certify

that the Minor Project entitled "A Study On marketing
startegies of Nokia IN INDIA" is done by me and it is
an authentic work carried out by me at Management
Education And Research Institute. The matter
embodied in this project work has not been submitted
earlier for the award of any degree or diploma to the
best of my knowledge and belief.

Asimuzzaman
Enrollment
No:042351039
22
 ACKNOWLEDGEMENT

I would like to thank my teacher Dr. Gurpreet Kaur, for

cheerfully and generously giving her time, advice and
efforts and also for sharing her experiences with me
which helped me to increase my awareness levels and
my confidence.

It is a pleasure to have the opportunity to extend my

heartiest thanks to everybody who helped me through
the successful completion of my project report, which
is a great source of learning and experience for me.

Asimuzzaman
Semester 2 section(A)
 EXECUTIVE SUMMARY

The aim of this assignment is to introduce and analyze the basic feature of a well-
known Nokia corporation Which mainly
Deals with mobile and network communication system. To begin with the
company historical back ground will be presented followed by the examination of
certain details about the company, including its mission, business strategy and its
goals, also the loopholes of the company and its SWOT will be examined and
analyzed. Their performance objective will be mentioned and their overall process
of the company explained. The project report entitled “A STUDY OF MARKETING
STARTEGISE OF NOKIA” deals with the study of marketing strategy of Nokia brand
that was launched in India
In the year 1865, by the founder of Nokia “Fredric idestam”. The introduction
provides the company background, operational and other important information
provided by the company which would assist in taking the decision for the right
brand extension strategy of Nokia.
 CHAPTER-1
INTRODUCTION

1.1 Purpose of the study

The marketing strategy of any company determines the profitability
and success of the company.

In this project an effort was made to study the marketing strategies

of Nokia and make suggestions and for improvement in the same if
required.

Understanding the loopholes in marketing strategies and making

the improvement thereafter .

This will help Nokia to increase its market share as well as

profitability.

1.2 Research objectives

First and foremost objective is to analyses the marketing strategies
adopted by Nokia

Secondly, to study the sources of brand equity of Nokia like brand

awareness, brand image ,brand association and brand recall

Thirdly to understand the brand performance of Nokia products.

Fourth ,to understand brand extension of Nokia in terms of product

diversity.
Fifth to understand the influence of the influence of Nokia as a
brand on consumers mind set

Sixth, to understand Brand Imagery, Brand Quality perceived by

customers, Brand credibility, consideration, superiority and feelings.
 CHAPTER -2
REVIEW LITERATURE

In academic circles, different experts and scholars have analyzed the decline
of Nokia from different perspectives. Fu, Z. S. had analyzed Nokia’s failure
according to impracticability of Nokia phone’s operating system. Yi, M. and
Zheng, Z. Q. had resolved Nokia’s failure by comparing Nokia with Apple. Yi,
M. thought that the main reason why Nokia lost to Apple was pursuing
technological innovation blindly, and neglecting the most important business
model innovation. Zheng, Z. Q. discussed the importance of the correct
grasp of the consumer need from consumer purchasing behavior
characteristics of different periods. Yang, K. believed that Nokia wasn’t
flexible, and led the advantage to barriers, thus blamed Nokia’s failure to
over pursuit of cost control. Zeng, F. P. discussed the factors affecting the
success of the enterprise taking Nokia as an example. It mainly analyzed
from four aspects: product innovation, management mechanism, marketing
models and marketing channels. Wang, Y. W. explored the impact of
organizational practice update on the competitiveness of Nokia and Apple by
using case study method in the process of 2G era changing into 3G era.
Wang, W. H. paid much attention to the strategies Nokia implemented in the
past, pointed out the company’s existing problems and put forward practical
suggestions on the base of analyzing its financial data, financial performance
and financial policy. Shang, T. M. considered that Nokia made a lot of errors
in the process of strategic transformation, and caused the transformation
sure to succeed into a doomed failure. Specifically, Nokia failed to adapt to
the competition of mobile Internet era, but still hoped bring the experience
and order of the old era into the new era. While some critics believed that
the quality of Nokia’s mobile phone was the essential issues. In this paper,
we analyzed the reasons of the decline of Nokia from the perspective of
marketing, and put forward some suggestions for the contemporary
enterprises.
 CHAPTER-3
BACKGROUND INFORMATION

3.1 About the company

Nokia Corporation (natively Nokia Oyj, referred to as Nokia) is a

Finnish multinational telecommunications, information technology,
and consumer electronics corporation, established in 1865. Nokia's
main headquarters are in Espoo, Finland, in the
greater Helsinki metropolitan area, but the company's actual roots are
in the Tampere region of Pirkanmaa. In 2020, Nokia employed
approximately 92,000 people[6] across over 100 countries, did business
in more than 130 countries, and reported annual revenues of around
€23 billion. Nokia is a public limited company listed on the Helsinki
Stock Exchange and New York Stock Exchange. It is the world's 415th-
largest company measured by 2016 revenues according to the Fortune
Global 500, having peaked at 85th place in 2009. It is a component of
the Euro Stoxx 50 stock market index.
The company has operated in various industries over the past 150
years. It was founded as a pulp mill and had long been associated
with rubber and cables, but since the 1990s has focused on large-
scale telecommunications infrastructure, technology development, and
licensing. Nokia made significant contributions to the mobile
telephony industry, assisting in the development of the GSM, 3G,
and LTE standards. For a decade beginning in 1998, Nokia was the
largest worldwide vendor of mobile phones and smartphones.
After a partnership with Microsoft and Nokia's subsequent market
struggles, in 2014 Microsoft bought Nokia's mobile phone
business incorporating it as Microsoft Mobile. After the sale, Nokia
began to focus more on its telecommunications infrastructure business
and on Internet of things technologies, marked by the divestiture of
its Here mapping division and the acquisition of Alcatel-Lucent,
including its Bell Labs research organization.[18] The company then also
experimented with virtual reality and digital health, the latter through
the purchase of Withings The Nokia brand returned to the mobile and
smartphone market in 2016 through a licensing arrangement with HMD
Global. Nokia continues to be a major patent licensor for most large
mobile phone vendors.]As of 2018, Nokia is the world's third-largest
network equipment manufacturer.
The company was viewed with national pride by Finns, as its mobile
phone business made it by far the largest worldwide company and
brand from Finland. At its peak in 2000, Nokia accounted for 4% of the
country's GDP, 21% of total exports, and 70% of the Helsinki Stock
Exchange market capital.

The company include four business groups:

 Mobile phones
 Multimedia
 Enterprise solutions
 Network.
3.2 History

1865–1967

Rolls of toilet paper produced by Nokia in the 1960s, Vapriikki Museum

Centre, Tampere
Nokia's history dates from 1865, when Finnish-Swede mining
engineer Fredrik Idestam established a pulp mill on the shores of
the Tammerkoski rapids near the town of Tampere, Finland (then in
the Russian Empire). A second pulp mill was opened in 1868 near the
neighbouring town of Nokia, where there were
better hydropower resources.[5] In 1871, Idestam, together with a
friend Leo Mechelin, formed a shared company and called
it Nokia Ab (in Swedish, Nokia Company being the English equivalent),
after the site of the second pulp mill.
Idestam retired in 1896, making Mechelin the company's chairman; he
expanded into electricity generation by 1902, which Idestam had
opposed. In 1904, Suomen Gummitehdas (Finnish Rubber Works),
a rubber business founded by Eduard Polón, established a factory near
the town of Nokia and used its name.
In 1922, in a now independent Finland, Nokia Ab entered into a
partnership with Finnish Rubber Works and Kaapelitehdas (the Cable
Factory), all now jointly under the leadership of Polón. The rubber
company grew rapidly when it moved to the Nokia region in the 1930s
to take advantage of the electricity supply, and the cable company soon
did too.
Nokia at the time also made respirators for both civilian and military
use, from the 1930s well into the early 1990s.

1967–1990

LV 317M military radio in the Hämeenlinna artillery museum

Nokian rubber boots

In 1967, the three companies – Nokia, Kaapelitehdas, and Finnish
Rubber Works – merged to create a new Nokia Corporation, restructured
into four major businesses: forestry, cable, rubber, and electronics. In the
early 1970s, it entered the networking and radio industries. Nokia started
making military equipment for Finland's defence
forces (Puolustusvoimat), such as the Sanomalaite M/90 communicator
in 1983, and the M61 gas mask first developed in the 1960s. Nokia was
now also making professional mobile radios, telephone
switches, capacitors and chemicals.
After Finland's trade agreement with the Soviet Union in the 1960s,
Nokia expanded into the Soviet market. It soon widened trade, ranging
from automatic telephone exchanges to robotics among others; by the
late 1970s, the Soviet Union became a major market for Nokia, yielding
high profits. Nokia also co-operated on scientific technology with the
Soviet Union. The U.S. government became increasingly suspicious of
that co-operation after the end of the Cold War détente in the early
1980s. Nokia imported many US-made components and used them in
products for the Soviets, and according to U.S. Deputy Minister of
Defence, Richard Perle, Nokia had a secret co-operation with The
Pentagon that allowed the U.S. to keep track of technological
developments in the Soviet Union through trading with Nokia. This was
a demonstration of Finland trading with both sides, as it was neutral
during the Cold War.
In 1977, Kari Kairamo became CEO and transformed the company's
businesses. By this time, Finland was becoming what has been called
"Nordic Japan". Under his leadership, Nokia acquired many companies,
including television maker Salora in 1984, followed by Swedish
electronics and computer maker Luxor AB in 1985, and French
television maker Oceanic in 1987. This made Nokia the third-largest
television manufacturer of Europe (behind Philips and Thomson). The
existing brands continued to be used until the end of the television
business in 1996.

1990–2010

Jorma Ollila, who oversaw the rise of Nokia in the mobile phone market
as CEO from 1992 to 2006
Following Simo Vuorilehto's appointment as CEO, a major restructuring
was planned. With 11 groups within the company, Vuorilehto divested
industrial units he deemed as un-strategic. Nokian Tyres (Nokian
Renkaat), a tyre producer originally formed as a division of Finnish
Rubber Works in 1932, split away from Nokia Corporation in 1988.
Two years later, in 1990, Finnish Rubber Works followed suit. In 1991,
Nokia sold its computer division, Nokia Data, to UK-based International
Computers Limited (ICL), the precursor of Fujitsu Siemens. Investors
thought of this as financial trouble and Nokia's stock price sank as a
result. Finland was now also experiencing its worst recession in living
memory, and the collapse of the Soviet Union, a major customer, made
matters worse.
Vuorilehto quit in January 1992 and was replaced by Jorma Ollila, who
had been the head of the mobile phone business from 1990 and advised
against selling that division. Ollila decided to turn Nokia into a 'telecom-
oriented' company, and he eventually got rid of divisions like the power
business. This strategy proved to be very successful and the company
grew rapidly in the following years. Nokia's operating profit went from
negative in 1991 to $1 billion in 1995 and almost $4 billion by 1999.
Nokia's first fully portable mobile phone after the Mobira Senator was
the Mobira Cityman 900 in 1987. Nokia assisted in the development of
the GSM mobile standard in the 1980s, and developed the first GSM
network with Siemens, the predecessor to Nokia Siemens Network. The
world's first GSM call was made by Finnish prime minister Harri
Holkeri on 1 July 1991, using Nokia equipment on the 900 MHz band
network built by Nokia and operated by Radiolinja. In November 1992,
the Nokia 1011 launched, making it the first commercially available
GSM mobile phone.
Salora Oy as a Nokia subsidiary ended in 1989 when the division was
merged into Nokia-Mobira Oy. The brand continued to be used for
televisions until 1995.

2010–2014
A Nokia 9000 Communicator (1996) next to a Nokia E7 Communicator
(2011)
In late 2009 and in 2010, the music-focused Xseries and consumer-
focused Cseries were introduced respectively. In April 2010 Nokia
introduced its next flagship mobile device, the Nokia N8, which would
be the first to run on Symbian^3.]However it was delayed for many
months which tarnished the company's image, especially after the failure
of its previous flagship N97 and tougher competition from Apple and the
rising Google. On 10 September 2010, Olli-Pekka Kallasvuo was fired
as CEO and it was announced that Stephen Elop from Microsoft would
take Nokia's CEO position, becoming the first non-Finnish director in
Nokia's history. It was claimed that investors pressed Nokia's board to
recruit an outsider to shake up management and break from the
traditional "Nokia way".Ollila had also announced that he would step
down as Nokia chairman by 2012. On 11 March 2011 Nokia announced
that it had paid Elop a $6 million signing bonus as "compensation for
lost income from his prior employer", on top of his $1.4 million annual
salary.

Nokia and Microsoft Lumia devices

The old Symbian OS became completely open source in February
2010. However, in November 2010 it was announced that the Symbian
Foundation was closing and that Nokia would take back control of the
Symbian operating system under closed licensing. By now Nokia was
the only remaining company using the platform, along with carrier NTT
DoCoMo in Japan, after both Samsung and Sony Ericsson moved
to Android. Meanwhile, in 2010 for Nokia's Linux ambitions, Nokia
collaborated with Intel to form the MeeGo project, after the merger of
Nokia's own Maemo and Intel's Moblin.

2014–2016

After the sale of its mobile devices division, Nokia focused on network
equipment through Nokia Networks.
In October 2014, Nokia and China Mobile signed a US$970 million
framework deal for delivery between 2014 and 2015.
On 17 November 2014, Nokia Technologies head Ramzi Haidamus
disclosed that the company planned to re-enter the consumer electronics
business as an original design manufacturer, licensing in-house hardware
designs and technologies to third-party manufacturers. Haidamus stated
that the Nokia brand was "valuable" but "is diminishing in value, and
that's why it is important that we reverse that trend very quickly,
imminently". The next day, Nokia unveiled the N1, an
Android tablet manufactured by Foxconn, as its first product following
the Microsoft sale. Haidamus emphasized that devices released under
these licensing agreements would be held to high standards in
production quality, and would "look and feel just like Nokia built
it".Nokia CEO Rajeev Suri stated that the company planned to re-enter
the mobile phone business in this manner in 2016, following the
expiration of its non-compete clause with Microsoft.
According to Robert Morlino, the spokesman of Nokia Technologies,
Nokia planned to follow the brand-licensing model rather than direct
marketing of mobile devices due to the sale of its mobile devices
division to Microsoft. The company took aggressive steps to revitalize
itself, evident through its hiring of software experts, testing of new
products and seeking of sales partners. On 14 July 2015, CEO Rajeev
Suri confirmed that the company would make a return to the mobile
phones market in 2016.

2016–2019

On 26 April 2016, Nokia announced its intent to acquire French

connected health device maker Withings for US$191 million. The
company was integrated into a new Digital Health unit of Nokia
Technologies. Nokia later wrote off the cost of the acquisition and in
May 2018 the health unit was sold back to Éric Carreel, a Withings co-
founder and former CEO.

2017 Nokia 6
On 18 May 2016, Microsoft Mobile sold its Nokia-branded feature
phone business to HMD Global, a new company founded by former
Nokia executive Jean-Francois Baril, and an associated factory in
Vietnam to Foxconn's FIH Mobile subsidiary. Nokia subsequently
entered into a long-term licensing deal to make HMD the exclusive
manufacturer of Nokia-branded phones and tablets outside Japan,
operating in conjunction with Foxconn. The deal also granted HMD the
right to essential patents and featurephone software. HMD subsequently
announced the Android-based Nokia 6 smartphone in January
2017. At Mobile World Congress, HMD additionally unveiled the Nokia
3 and Nokia 5 smartphones, as well as a re-imagining of Nokia's
classic 3310 feature phone. Nokia has direct investments in the
company, and they do have some input in the new devices.
On 28 June 2016, Nokia demonstrated for the first time a 5G-ready
network, In February 2017 Nokia carried out a 5G connection in Oulu,
Finland using the 5GTF standard, backed by Verizon,
on Intel architecture-based equipment.

2020–present
On March 2, 2020, Nokia announced Pekka Lundmark as its new CEO.
Later that month, Nokia completed the acquisition of Elenion
Technologies, a U.S.-based company focusing on silicon photonics
technology to improve economics of advanced optical connectivity
products.
On May 27, 2020, Sari Baldauf succeeded Risto Siilasmaa as
chairwoman of the board of directors, and Kari Stadigh was appointed
vice chair. In June, Nokia won a 5G contract worth approximately $450
million from Taiwan Mobile to build out the telecom operator's next-
generation network as the sole supplier.] In October, Nokia announced a
contract with NASA to build a 4G mobile network for astronaut usage
on the moon. The $14.1 million contract, through subsidiary Bell Labs,
was expected to begin in 2022.
In 2020, Flipkart collaborated with Nokia to market Nokia-branded
consumer products in India. These included televisions, a laptop and a
range of air conditioners. In April 2022, Nokia announced that it would
exit the Russian market following the country's invasion of Ukraine. The
company stated that the decision would not affect its financial outlook as
Russia accounted for less than 2% of Nokia's net sales in 2021.]
In February 2023, Nokia introduced a new logo for the first time in
nearly 60 years] to change its brand identity as people still associated the
previous logo with mobile phones. The new logo was designed
by Lippincott.
Current operations
Nokia is a julkinen osakeyhtiö (public joint-stock company) listed on
the Nasdaq Nordic/Helsinki and New York stock exchanges. Nokia has
played a very large role in the economy of Finland, and it is an important
employer in the country, working with multiple
local partners and subcontractors. Nokia contributed 1.6% to Finland's
GDP and accounted for about 16% of the country's exports in 2006.
Nokia comprises two business groups along with further subsidiaries and
affiliated firms.
Nokia Networks
Main article: Nokia Networks

Inside the Nokia Networks office in Munich, Germany

Nokia Networks is Nokia Corporation's largest division. It is a
multinational data networking and telecommunications equipment
company headquartered in Espoo, Finland, and is the world's third-
largest telecoms equipment manufacturer, measured by 2017 revenues
(after Huawei and Cisco). In the USA it competes with Ericsson on
building 5G networks for operators, while Huawei
Technologies and ZTE Corporation were effectively banned.
It has operations in around 150 countries.
Nokia Networks provides wireless and fixed network infrastructure,
communications and networks service platforms and professional
services to operators and service providers. It focuses
on GSM, EDGE, 3G/W-CDMA, LTE and WiMAX radio access
networks, supporting core networks with increasing IP and multiaccess
capabilities and services.
The Nokia Siemens Networks (NSN) brand identity was launched at the
3GSM World Congress in Barcelona in February 2007 as a joint venture
between Nokia (50.1%) and Siemens (49.9%), although it is now wholly
owned by Nokia. In July 2013, Nokia bought back all shares in Nokia
Siemens Networks for a sum of US$2.21 billion and renamed it to Nokia
Solutions and Networks, shortly thereafter changed to simply Nokia
Networks.
Nokia Technologies

Nokia office building in Tampere, Finland

Nokia Technologies is a division of Nokia that develops consumer
products and licenses technology including the Nokia brand. Its focuses
are imaging, sensing, wireless connectivity, power management and
materials, and other areas such as the IP licensing program. It consists of
three labs: Radio Systems Lab, in areas of radio access, wireless local
connectivity and radio implementation; Media Technologies Lab, in
areas of multimedia and interaction; and Sensor and Material
Technologies Lab, in areas of advanced sensing solutions, interaction
methods, nanotechnologies and quantum technologies. Nokia
Technologies also provides public participation in its development
through the Invent with Nokia program. It was created in 2014 following
a restructuring of Nokia Corporation.
In November 2014, Nokia Technologies launched its first product,
the Nokia N1 tablet computer.[201] In July 2015, Nokia Technologies
introduced a VR camera called OZO, designed for professional content
creators and developed in Tampere, Finland. With its 8 synchronized
shutter sensors and 8 microphones, the product can capture stereoscopic
3D video and spatial audio.
On 31 August 2016, Ramzi Haidamus announced he would be stepping
down from his position as president of Nokia Technologies. Brad
Rodrigues, previously head of strategy and business development,
assumed the role of interim president. On 30 June 2017, Gregory Lee,
previously CEO of Samsung Electronics in North America, was
appointed Nokia Technologies CEO and president.
Nokia Bell Labs
Nokia Bell Labs is a research and scientific development firm that was
once the R&D arm of the American Bell System. It became a subsidiary
of Nokia Corporation after the takeover of Alcatel-Lucent in 2016.
NGP Capital
NGP Capital (formerly Nokia Growth Partners) is a global venture
capital firm, focusing on investments in the growth stage "Internet of
things" (IoT) and mobile technology companies. NGP holds investments
throughout the U.S., Europe, China and India. Their portfolio consists of
companies in mobile technology including the sectors Connected
Enterprise, Digital Health, Consumer IoT, and Connected Car.
Following a $350 million funding for IoT companies in 2016, NGP
manages $1 billion worth of assets.
Nokia had previously promoted innovation through venture sponsorships
dating back to 1998 with Nokia Venture Partners, which was renamed
BlueRun Ventures and spun off in 2005. Nokia Growth Partners (NGP)
was founded in 2005 as a growth stage venture fund as a continuation of
the early successes of Nokia Venture Partners. In 2017, the company
was renamed to NGP Capital.
NGP's largest exits include GanJi, UCWeb, Whistle, Rocket Fuel,
Swype, Summit Microelectronics and Netmagic.
Nudge Networks
Nuage Networks is a venture providing software-defined
networking solutions. It was formed by Alcatel-Lucent in 2013 to
develop a software overlay for automating and orchestrating hybrid
clouds.[211] It has been part of Nokia following their acquisition of
Alcatel-Lucent in 2016. Throughout 2017 Nuage sealed deals
with Vodafone and Telefónica to provide its SD-WAN architecture to
their servers. BT had already been a client since 2016. A deal with China
Mobile in January 2017 also used Nuage's software-defined networking
technology for 2,000 public cloud servers at existing data centers in
China,[216] and another in October 2017 with China Pacific Insurance
Company.
The company is based in Mountain View, California and the CEO is
Sunil Khandekar.
Alcatel Mobile
Main article: Alcatel Mobile
Alcatel Mobile is a mobile phone brand owned by Nokia since 2016. It
has been licensed since 2005 to Chinese company TCL when it was
under the ownership of Alcatel (later Alcatel-Lucent) in a contract until
2024.
HMD Global
Main article: HMD Global
HMD Global is a mobile phone company based in Espoo, Finland. The
Nokia brand has been licensed by former Nokia employees who
founded HMD Global and introduced Nokia-branded Android-based
devices to the market in 2017.] Nokia has no investment in the company
but retains some input in the development of its devices.
Nokia has 10.10% ownership in HMD Global after investing alongside
Qualcomm and Google in 2020. In the 2020 financial report, FIH
Mobile disclosed they have a 14.38% ownership in HMD Global.
Finnish Nokia owns 10.10% of HMD Global, while other investors
include Google, Qualcomm, and others with an undisclosed share in
HMD.
Alcatel Submarine Networks
Alcatel Submarine Networks (ASN) is a provider of turnkey undersea
network solutions. The business unit develops technology and offers
installation services for optical submarine cable network links across the
world's oceans
3.3 Marketing strategies of Nokia
In order to execute the project on hand I have select Nokia. Nokia
was founded by Fredrik Idestamin in 1865 as public limited
company. Nokia is leading the cellular phone industry with around
38% of the market share, while Motorola, which is American based
is having 12% of total market share. Nokia used be a diversified
conglomerate up till 1980 with business includes pulp, rubber tire
production, paper, telecommunication equipment, cable
manufacturing, and consumer electronics. The geographic target
market of Nokia was mainly limited to Scandinavia (70% market
share) and US (33% market share) (123helpme, 2010). It should be
noted that Nokia had never enjoy monopoly in any market
including Finland and the company share is due to its competitive
marketing strategy, state of the art product designing and
manufacturing, pricing strategies and creative marketing
campaigns. The company has constant record of launching new
product that either low costs or cutting-edge technology, and flair
have not yet been stopped. These two characteristics of the firm
are giving it competitive advantage and the company is still the
most profitable company of the mobile-phone manufacturing
industry (Kumar, Banthia, & Sharma, 2010).

Nokia headquarter in situated in Espoo, Finland. The Research and

Development wings of the company are situated in 10 countries
around the globe. The device manufacturing factories of the
company are located in nine countries while the company
transacts its business in more than 150 countries of the world. In
this paper we going to investigate that how does a Finnish
organization become a world leader in the highly sophisticated
cutting-edge industry from the marketing viewpoint?

Importance and the use of Information in their

Marketing Strategies of Nokia:
In the decade 1990s the telecommunication industry around the
globe experience three significant positive changes that sets the
foundation for future growth. These three trends were increase in
the use of internet, deregulations of the market that led to easy
access for new competitor and the advent and popularization of
wireless services. Nokia then adapted the three strategies in its
marketing program. This was a mega turn in the history of Nokia.

In order to get the exploit the opportunities provided by the

environmental factors and decrease the potential demerits of
changes that might have impact on the business, Nokia initiated
an information system project. It has decided to install an
information system that will facilitate decision maker across the
organization in its various functional departments. For this sake
Nokia takes advantage of Management Information System (MIS),
Decision Support System (DSS), Executive Information System,
Transaction Processing System (TPS) etc. Through the use of these
systems the organization not only was able to manage the
organization effectively and efficiently but was also able to
coordinate its different R&D departments (that are situated in 10
countries), its manufacturing facilities (that are situated in 9
different countries) and its distribution networks that situated in
150 countries.
Organizational & Marketing Strategy Used by
Nokia:
Organizational Strategy:
Nokia historical logo was “three arrows” that were created in
1966, the company then devise it’s presently used organizational
slogan “connecting people”. This slogan was design by Ove’
Strandberg. The company is the world 6th “most loved and fastest
growing brand of the world”. All this was possible due to Nokia
consistent organization wide supportive culture, shared values
and vision.

The vision statement of Nokia is “our vision is a world where

everyone is connected”, and its promise is “Our promise is to help
people feel close to what is important to them”. The approach the
company used for to achieve this objective is “Trusted consumer
relationships”, “Best mobile devices everywhere”, and “Context
enriched services” (Nokia, 2010).

Marketing Strategy:
In order to achieve its organizational objectives, the marketing
wing of the Nokia is doing remarkable job. In the following we
explored different aspects of the marketing strategy used by
Nokia.

Market Segmentation:
Geographic: Both Rural and Urban areas

Demographic: Male and Female

Age: 22-50 (almost 80% of the sales comes from this segment

Consumer Segments: All the three types of users including high-

users, medium users and light-users. (Kumar, Banthia, & Sharma,
2010)

Product Strategy:
The focus of the marketing efforts of Nokia is mostly on handset
manufacturing only. The company is constantly enhancing its
product portfolio by inventing constantly new models. The mobile
phones that are manufactured by Nokia have two diverse focuses:
either low costs or cutting-edge technology. The products of the
company are adopted as per the specific markets situation. For
example handsets distributed in Middle East have an Arabic
language function, while in France the language is tailored as
French.

Branding Strategy:
Nokia use two types of branding strategies. It is due to the fact
that its target market consumer consists of two types of
customers: Upscale buyers and Economy seeker. For upscale
buyer the company built its brand with high-end multimedia
handsets, while for economy seeker in emerging markets its
branding strategy focuses on providing economical handsets
(123helpme, 2010).

Pricing Strategies:
The pricing strategies used by Nokia vary from situation to
situation and from product to product. For cutting-edge
technological products that are newly designed by the company
R&D, the company use first the skimming marketing strategy, and
then decrease the price. While for cost-effective products that
focus on economy, the company use penetrating pricing strategy.

Promotion Strategy:
The company success can be traced to the excellent promotion
activities carried out by the organization. The company use
integrated marketing communication to promote its various
products in different region of the world. The promotion activities
are directed toward replacement

Place Strategy:
The company distribution network is situated in 150 countries,
and the company is still using its aggressive marketing strategy to
boost its network, and market development strategy to target
new markets from around the world. Nokia has come up with new
place strategy by opening of the retail outlets known as “Nokia
Priority”.

Nokia: in the Global Context:

Nokia has successfully used its marketing strategy to target
diverse customers from around the world. Its products are equally
used by rural as well as people belong to the urban areas. The
company is using the right blend of standardization and
adaptation. By studying the global market strategy of Nokia one
can argue that Nokia standardized its products when possible and
customize its products when needed. For example Nokia
introduced its dust-resistant mobile phone with anti-slip grip and
flash light in less developed markets including India, Pakistan,
Bangladesh etc. the product was customized according to the
needs and wants of the rural market of the people living in these
countries. Such sort of commitment to the needs and wants
satisfaction of the target market by Nokia shows Nokia genuine
commitment towards the local customers needs.

The competition in the global market for Nokia is increasing with

the passage of time. As the market for cellular phone is passing
through the growth stage of product life cycle, constant entrance
of new cellular phone manufacture is continued. The competition
for Nokia includes: Motorola, Sony Ericson, Samsung, Siemens,
Panasonic, NEG, Toplux and Sagem and many more. In order to
keep its share in the international market Nokia must continue to
exploit its competitive advantage to get ahead of competitors. It
needs to have more focused marketing strategies.

Nokia late arrival of can-bar phone and missed design trends like
clamshell phones are some of the factors that has led to decrease
in the market share of the company (Kiley, 2007). Nokia market
share was 66% in 1999, which now stood at 38% (2009), it means
that although in terms of sales its revenue is increasing with the
passage of time, but in terms of market share, competitors are
capturing niche from Nokia.

Nokia is using aggressive marketing strategy in the global market.

Since 1997, the company has acquired 37 companies around the
world. The acquisition includes, Cellity— a mobile software
company, OZ Communications of Canada, Navteq which is a U.S.
base supplier for a price of $8.1 billion, and Enpocket supplier of
mobile advertising technology and many more (Kumar, Banthia, &
Sharma, 2010). These acquisitions have strengthened the market
standing of Nokia, and help the company to boost its competitive
advantage.

The global sales of Nokia are increasing and the organization is

constantly using four types of strategies to increase its sales in the
global market. Nokia is increasing its sales in its existing market of
already available products through increase strong positioning
strategy, promotion activities, and competitive pricing strategies,
and thus company is able to increase the sales for its products.
The company has constant record of launching new product that
is either low costs (that target low-income group) or cutting-edge
technology (that target upper-upper and upper-middle class of
the market), and flair have not yet been stopped. New market
offer exciting opportunities to Nokia and the company is
continuing to explore new market in the world. Currently the
distribution network of the company has been established in 150
countries in all the continents of the world.

The company now developed multifunctional cell phones, and

continued to put up its business in significant on the rise markets
such as India, China, Middle East and Indonesia where the target
market are still looking for reliable hardware. The strategy is
working for Nokia and over the year it has been able to launch
series of new version in the global market. And Nokia is now
looking to target 200 million middle class population of China for
whom the company has developed customized products that
costs under 63$ (Kiley, 2007).

On the other hand, the situation in US is quite different. That’s

why the company is using different strategy to target that market.
In US market growth is tough because the market is driven by
cell-service provider. For example Verizon Communication sell
phone to customer at subsidized rate to its target market. Nokia’s
relations in US with cell phone operator are not as strong as those
of competitors that are why the company is suffering in this front.

To tackle this trend, Nokia have reportedly spends $5.4 million in

2007 and $2 million in 2008 on lobbying in the U.S. market to
hold its market share. The strategy was very successful for the
firm, as it resulted in favorable political environment for the
company. Had the company adopted the same strategy in before
the results for the company must have been quite different and it
must have not lost its market share in the US market? On the
other hand the condition is quite change as compared to
condition in US and the consumers can buy the cell-phone of
one’s own choice, and then shop for their service.

In order to take advantage of favorable market conditions Nokia

has joined hands with Siemens Networks and formed a joint
venture in 2006. Nokia Siemens Networks services are available in
150 countries around the world. Both the companies have merged
their fixed line and mobile phone network equipment business to
create the world’s biggest network. This has resulted in 1.5 billion
Euros for Nokia in year 2009.

Nokia e-Business Strategy:

For Nokia e-business is not just limited to web presence to make
easy buying selling. Nokia is exploiting the collective power of the
internet and IT to vitally convert its strategic business strategies
and business processes. Nokia is one of the successful ventures of
the world that is using the e-commerce and e-business solution in
its flair to build successful relation with its target market. Nokia e-
business is known as Nokia Payment Solution that was initiated in
2001 (Nokia, 2010). The Nokia Payment Solution is unique
program that enables payment service providers to mediate
payments between three parties including financial institutions,
distributor and consumers. This platform allow Nokia to collect,
manage and clear payment initiated from mobile phone and other
web-enabled terminals all the way through different payments
methods including debit cards, credit cards, operator’s prepaid
and postpaid system.

Nokia provides Nokia Signet Server that serves the purpose of

verification and payment transaction of non-repudiation through
digital signatures. The verification and digital signature
connecting the client and server are satisfied using the wireless
Public Key Infrastructure (PKI) technology.

On the other hand Nokia is using its e-Business strategy to

successfully integrate its various divisions across the world. Nokia
factories are situated in 10 countries, and its R&D wings are
situated in 9 countries. E-business provides an opportunity to
Nokia to cut its costs dramatically through e-procurement, which
is as a way for Nokia to better track and manage their purchasing.

Nokia also provides various blogs in an effort to know its target

market. This e-chat provides Nokia a form of technical and
customer support is an excellent example of its customer focused
e-business strategy. This e-business strategy that supplement
Nokia traditional phone support is a system that saves precious
time for Nokia while providing opportunities to know its customer
more deeply.
Nokia e-business strategy has helped the marketing strategist to
better plan their product offerings, keeping in view the latest
trends of the market. The products are designed and
manufactured keeping in view the needs and wants of its target
market. Through the use of e-business the marketing department
is able to develop and retain its valued customers. Nokia website
provides online support to its valued customer in the form of free
download (music, video, themes, etc), software solution, and
integration of different task related to products. . This had helped
the company not only in creation long-lasting, and satisfied
customer creation but also helped the company to prolong the
product life cycle of its various products.

On the other hand Nokia has formed strategic partnership with

Facebook. Facebook is a social network website that connects
people and work as link between them. This had provided
remarkable opportunity to Nokia, because the Facebook
application for Nokia is available for download in more than 150
countries. Nokia is the only mobile company of the world whose
handsets can be connected to Facebook. This has created a world
of opportunities for both Nokia and Facebook. (Nokia, 2010)

Nokia Promotion & Advertising Strategy:

The promotional and advertising strategy in the Nokia marketing
strategy is as follows:
Nokia uses all media channels to ensure that its customers are
communicated about the products. In order to promote itself well
within the global smartphone market, Nokia established a
partnership with Windows to roll out Lumia phones which gained
immense popularity in the markets. When it came to promoting
the brand, by associating with brand ambassadors like Shahrukh
Khan, Nokia truly upheld its purpose of connecting people by
bringing them together through handsets and a mobile phone
penetration no one had previously imagined. Nokia promoted
itself through television advertisements, sign boards, bill boards,
radio and newspapers, brochures, posters, dummies and display
stands. They also engaged in personal selling by providing
significant product training to the dealers and distributors who
sold the product. Nokia, in an attempt to place itself in the minds
of the people also introduced gifting concepts back in the early
2000s when they gave the customers attractive offers of grabbing
a chance to win Yamaha Bikes and Toyota Vios cars. Hence this
gives an insight in Nokia marketing mix.

SWOT- Analysis
According to Hollensen (2010) ,evaluating the key strengths and
weaknesses of Nokia’s existing marketing strategy, the SWOT- Analysis
will help identify more suitable ways for the company to follow and
highlight areas which could make a marketing process more effective. It
encompasses both the internal and external environment (Hollensen
2010, p.

238).

illustration not visible in this excerpt

SWOT- Analysis Nokia

Strengths:
The strengths of Nokia are not only its marvellous brand reputation and
broad appeal; Nokia is also increasingly entered into discussion due to
its successful merchandising and marketing strategy with the Windows
Phone Lumia. The position is due to Nokia’s large sales and distribution
network, its user friendliness, the new simple but attractive designs and
Nokia’s reliability. A less traditional marketing approach also seems to
strengthen the

brand image and helps the company to hit the zeitgeist. Unique functions
such as the free Nokia Music +, MS Office to go and a high-speed LTE-
connection bring their smartphones great advantages. Thanks to the
utmost innovative wireless recharging technology, the Nokia Lumia can
be recharged without using a cable. Moreover, Nokia is strengthening its
role among mobile phone suppliers with its efforts for environmental
protection and sustainability. Due to these strengths Nokia has a strong
customer relationship with loyal customers.

Weaknesses

Although Nokia does have some major strengths, there are still some
major weaknesses, which are to be dealt with. With only 4.4 m items
sold in the fourth quarter, the launch of the Lumia was not as successful
as it should have been (The New York Times 2013). The fast paced
markets often cause products to quickly fall from favour, which is why
the communication within the existing marketing strategy – the
interaction with customers - must be engaged and has to stand out from
competition. Less stylish phones ranging in the low-priced segment are
another potential weakness which can endanger the future of

Nokia. In terms of distribution, there has to be mentioned that Nokia has

a weak high-street presence, having no flagship stores.

With four unique functions in the Nokia Lumia and their affinity for
sustainability they could be miles and miles ahead of their competitors,
but lacking presence and viral marketing within the company
communication are avoiding it.

Opportunities

The potential market is growing as children are becoming more and

more interested in smartphones at ever-younger ages and elderly people
are trying to keep up with the increasingly fast pace of technology.
While the elder consumer group, aged 50+, finds itself in a more and
more financially stable condition, the chances that they start

purchasing smartphones, which they in fact are more confident with due
to their familiarity with Microsoft, rise. The existing brand reputation
can be used to build on marketing strategies and create a strong bond to
millions and millions of people using Microsoft on their computer.

The greatest opportunity, however, is to reduce cost and time, i.e. to

raise efficiency of their product research while still improving the
technology. Entirely new possibilities would open up, if they were to
engage in the tablet PC market. After all, the new marketing strategy has
already opened new and more innovative ways for the brand to do so.
With Microsoft as an ally, Nokia and Microsoft benefit from each other,
as both

companies have a great loyal consumer base.

Threats

Nokia has to face the ever-worsening price wars with competitors due to
the strong price pressure from the Asian market with its better
distribution channels. Another threat might be the launch of a new,
innovative product from rivals that Nokia has only little chance to keep
up with, as they are still trying to catch up with the latest innovations.

Due to lacking high-street presence, there is hardly a person customers

can refer to when they need help or have questions. Along with an
increasingly demanded after-sales service this might have a strong
impact on crisis-stricken Nokia. The huge range of products, which
should actually be positive in terms of variety, might carry the risk of
consumers ending up confused.

HOW DID NOKIA SUCCED IN INDIAN MOBILE MARKET:-

The Power of Focus

D. Shivakumar, Nokia India’s vice president and country manager,
believes that focus played a key role in the company’s growth in India.
“If you look at the [mobile phone] landscape in 1995, anybody could
have succeeded if they had done the same things as Nokia did,” he
says. “But all the other companies had something else to focus on,
some other business. Nokia was completely focused on mobile
phones; others had consumer electronics, home appliances, etc.”
Nokia’s focus was not just on handsets, of course. The mobile
infrastructure business — then part of Nokia India — was equally
important. But, as of April 1, 2007, Nokia’s joint venture with Siemens
for mobile infrastructure has become an independent entity. Thus,
Nokia India has become even more sharply focused.

Being ahead of the curve was another component of Nokia’s strategy.

“We invested before everybody else — in the brand, in people, in
distribution,” says Shivakumar. Adds Pankaj Mahendroo, president of
the Indian Cellular Association: “Nokia invested in each vertical of the
handset ecosystem — manufacturing, distribution and design R&D.”

Nokia has invested more than $1 billion in India so far, and company
headquarters at Helsinki has repeatedly said that more funds will be
made available if required. The Indian company had revenues of more
than $3.5 billion in 2006, which means there is also money to be
reinvested. (The company does not disclose its profit numbers.)
The Distribution Edge
Investment in people is difficult to judge; every company claims to
have the best talent in the business. But when it comes to distribution,
Nokia’s lead is clear. Today, India has some 95,000 outlets that sell
mobile phones. “In 50,000 of them — and that’s a conservative
estimate — only one brand is available, Nokia,” says Shivakumar.

Nokia started distributing its phones through a partnership with HCL

(formerly Hindustan Computers Ltd.), which had already built an
extensive network for its own products. Recently, Nokia has decided
to supplement that with its own distribution efforts. “Both companies
realized that there was a tremendous growth opportunity and it was
best that we utilized the resources of both organizations in an
optimum manner,” says Nokia India director of sales Sunil Dutt. “We
decided that we would address some markets jointly, and that we
would individually address some of the other markets.”

While Dutt does not spell out how the two partners will divide the
markets, some clues exist in the way demand is shaping up. In the
cities where the market is maturing, buyers are looking at more
sophisticated mobile phones, such as Nokia’s E-series phones (which
serve business users) and the N-series (which have multimedia
features). In rural India — which constitutes 70% of the population —
affordability is an issue. So there is a different range for this
constituency.

The price points sometimes dictate the type of outlet. “As the
[telecom] operator footprint expands into different markets, all kinds
of retail outlets get into selling mobile phones and airtime
connections,” says Dutt. “People who have been selling consumer
electronics, STD booth owners and even cloth merchants get into this
business.” A stationery store stocks mobiles in a corner; a mom-and-
pop grocery store moves beyond rice and lentils. “Then there are
people with existing businesses who decide to set up a separate shop
only for mobile phones,” he continues. “And why do they feel the need
to set up a different outlet? In this business, customer engagement …
requires a completely different approach. Even the retail outlets
realize this and [have started] separating the two businesses.”

Dutt notes that in the mature urban markets, “such as the metros and
Tier I towns where mobility has been around for a few years,
customer expectations are more evolved, and are continuously
evolving. Our task here is to provide our people with relevant
competency and skills sets.” Nokia has begun to set up concept stores
— seven so far — in Indian cities. “At our concept stores, we have
tried to bring to life all the experiences that we offer at Nokia
experiential zones across the world,” he adds.

Investment in Manufacturing
The other big investment area that has set Nokia apart from other
telecom firms is manufacturing facilities and R&D. Nokia has several
R&D centers and labs in India. More importantly, it established a $150
million handset manufacturing facility in Chennai in 2005. The total
production at this unit has crossed 25 million handsets. “Some 30% of
our production is being exported to neighboring countries,” says
Sachin Saxena, Nokia India director of operations in charge of the
factory.

Other companies, such as Motorola, LG and Samsung, have also lined

up similar investments or are in the process of setting up
manufacturing units, but Nokia has had a clear head start. Also, the
Chennai factory is devoted to handsets, whereas other companies are
planning to make a whole range of consumer electronics products.
“Domestic manufacturing has worked to Nokia’s advantage,” says
Ravinder Zutshi, deputy managing director, Samsung India
Electronics. “Samsung India is looking at making its Chennai facility a
global hub for its consumer electronics products.”

Industry analysts note that Nokia’s strategy is potentially risky. When

the going is good — as it is now — the company can do well. But
Samsung’s approach is more flexible, these analysts note. If demand
for mobile phones were to slump, Samsung could switch its
manufacturing lines to other products. In contrast, Nokia India’s focus
on mobile phones mirrors the priorities of its parent company. Nokia
traditionally was in a whole range of businesses — from toilet paper
to power. But in 1993, CEO Jorma Ollila decided to sell off everything
else and concentrate on mobile telephony.

Building the Brand

Another crucial aspect of Nokia’s investment strategy focused on
building its brand. Here, the company ran into a problem. The Nokia
range available in India extends from Rs 1,499 ($37) at the lower end
to Rs 45,000 ($1,125) at the high end. Marketing theory says a brand
cannot be all things to all people. This is the reason that Hindustan
Unilever, with quality built around its brand, refused to match Nirma,
which came out with a cheap detergent. This is also why Eveready, the
battery manufacturer, refused to lower prices when faced with a
Chinese challenger in the dry cell market.

But Nokia has a problem promoting other brands under its corporate
umbrella. “Unlike the FMCG (fast-moving consumer goods) market —
where the product lifecycle is at least 10 and sometimes 50-100 years
— models have a lifespan of 15-24 months here,” says Devinder
Kishore, Nokia India’s director of marketing. With such a lifecycle,
promoting various models would mean watching money go down the
drain in a couple of years.
Instead, Nokia is promoting platforms — music, for instance. With this
approach, one model can replace another while the branding remains
the same, or is extended slightly with the E series and N series. “Nokia
has done well to focus on the ‘mother’ brand rather than on ‘another’
brand,” says Jagdeep Kapoor, chairman and managing director of
Samsika Marketing Consultants. Kapoor, who has written several
books on brand management, says that Nokia has understood the
Indian market by straddling all segments: the high, the middle and the
low end. “The company has created a ladder for consumers to climb
from the low end to the middle end to the high end, while being fully
assured that they will be with the mother brand Nokia.”

Kapoor views the Nokia brand in terms of his proprietary “REAPS”

model, which takes into account five needs — rational, emotional,
aspirational, physical and spiritual — of the Indian consumer. “Nokia
as a brand has been able to address all the five needs to various
degrees at various stages,” he says. “The rational need of quality
versus price has been met across price segments with options. The
emotional need of being able to keep in touch with near and dear ones
during times of joy and sorrow is being adequately fulfilled. The
aspirational need with the new models and features and the look-good
approach has helped the brand become a sought-after, must-have
brand. The physical need has been taken care of through size and
comfort. And, finally, the spiritual need has been met through (local)
languages and people –whether they are 18 or 80 — being able to
greet one another via SMS [text messages] during religious festivals.”

ISB’s Bapna offers a prescription for Nokia. “Going forward with the
premise that the mobile infrastructure will serve as India’s
information infrastructure — given the lack of substitute physical and
digital infrastructure — I would encourage Nokia to take a more active
role in nurturing content and application-creation communities that
bring a range of services to all layers of the population,” he says. “It’s in
[Nokia’s] own interest to do so.”

Products for India

The Nokia story in India has not been about grafting a model that has
worked abroad. In fact some of its models — the handsets, not the
strategies — are unique to India. Consider this example: It would
probably be inconceivable to mobile phone users in the U.S. or Europe
that their mobile phones should incorporate a flashlight, or torch. But
in India — where large numbers of the rural population do not have
electricity, and power cuts are commonplace even in the cities —
having a torch built into a mobile phone is a distinct and tangible
benefit. The Nokia 1100, the first made-for-India phone, has been a
runaway success. Manufactured at Chennai, it is also being exported.
The 1100 incorporates a torch, an alarm clock and a radio. “Innovation
is something which consumers reward in this market,” says
Shivakumar.

Similar plans are in the works at Nokia’s three India R&D labs, which
employ 700 people. For obvious reasons, most of the activity is under
wraps. Nokia is, however, willing to talk about the “shared” phone.
This is, again, something that mobile phone users in affluent countries
might find puzzling, but the concept is simple. For reasons of
affordability, in rural areas a phone may be shared by several people.
The models being launched to cater to this need will have separate
address books, individual billings and more. Will it work? People
initially doubted the torch phone, too, but it became a popular
product.

Shivakumar offers some reasons to explain why he thinks the Indian

market is different and needs out-of-the-box thinking. “Fundamental
consumer differences exist between India and other countries,” he
says. “A cell phone is a huge style icon for the Indian masses: 62% of
Indians buy a cell phone because of its looks. That is something that is
not true anywhere else in the world. It’s as huge a style statement as
your watch, pen, cufflinks or bag. Hence, the brand matters quite a lot.

“Second, it is a safety product for women in small towns, because with

a cell phone you are in touch all the time; you’re accessible. Next, it is a
huge productivity vehicle. When somebody calls you, you do not need
to take your bike out; you don’t need to take your car out. You make a
phone call and it’s over.

“It is also a driver of a lot of economic activity. If you go down the

roads of Gurgaon and Delhi, you will find that lots of people have
written their [mobile] phone numbers on the walls — a plumber, an
artisan, a carpenter, a tailor. I think the whole service sector has
gotten a huge lift, thanks to this. This has killed the visiting card
business…. It is also the ultimate entertainment device. You have
music on it now, in terms of radio and stored music. The day is not far
when you will see movie clips and TV. One of our products has that, so
that’s TV on the go.”

An Expanding Market
The Indian market for mobile phones, in addition to its base of 170
million subscribers, is also one of the most cost-effective in the world.
Call rates in India are among the lowest anywhere — making a mobile
phone call costs two cents in India, compared with about four cents in
China. The market also has tremendous growth potential. So far, most
of the growth has been penetration-led, which means placing devices
in consumers’ hands. The bulk of the growth going forward will be
replacement-led, where consumers come back for more. In India,
consumers tend to change their phones faster than in most other
places. And whenever they change their phone, 60% are willing to pay
a higher price.
Shivakumar offers examples of future services that might be delivered
over cell phones. “The cell phone could be the future bank — a full
branch of the bank. You don’t need 20 people, a security guard or a
vault. This is a passbook plus bank rolled into one. It can be your
payment system.” Another possible use is navigation, where cell
phones could be used to provide maps of an area where the user is
based. Such services, whenever they are launched, could help Nokia
keep going and growing in India.
 CHAPTER -4

RESEARCH METHODOLOGY

4.1 Meaning of research

Research is defined as the creation of new knowledge and/or the

use of existing knowledge in a new and creative way so as to
generate new concepts, methodologies and understandings. This
could include synthesis and analysis of previous research to the
extent that it leads to new and creative outcomes.

4.2 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research
problem. It may be understood as a science of studying how research
is done scientifically. In it we study the various steps that are generally
adopted by a researcher in studying his research problem along with
the logic behind them.

4.3 DATA SOURCE

All published secondary data sources such as website,online platforms

such as Wikipedia, Quora, Newspaper, magazines.
 CHAPTER – 5

FINDINGS AND OBSERVATIONS

 After analyzing the data it was clear that customer are using the
Nokia brand mobile as compare to other brand they are using
Nokia mobile from many months.

 After the survey we find that purchasing of NOKIA Mobile is due

to his durability and give the performance and they are satisfied
with the feature that provide by the company in NOKIA Mobile.

 Customer are not satisfied with the price of NOKIA Mobile as

compare to other brand of mobile the price is little bit high

 Most of the customer are satisfied with the quality that provided
by NOKIA

 People are more familiar with NOKIA brand as compare to others.

 CHAPTER -6

LIMITATIONS

1. Due to wide spread information of the data, the scope of

the project becomes very wide.

2. All the matter has been collected through secondary

sources; hence, the errors might have crept in.

3. Given the time constraints, all the information could not

be gathered.
 CHAPTER -7

RECOMMENDATIONS/SUGGESTIONS

I would like to provide certain Recommendation toward this project

report. There are various recommendation required to be done in this
report. They are as follows;-

1) I would like to suggest that the Marketing areas for sales should
be increased .They should try to adopt new strategies to regain
whole sale force in the market.
2) As far as launching new models is concerned ,the company should
try to offer sales of such products at a affordable price.
3) The company should try to bring attractive offer and discount to
the customers to make them more brand loyal towards them.
4) Research should be carried out on a large scale and in selected
areas.
 CHAPTER-8

CONCLUSION
Nokia’s mission is to regain its leadership position in the smartphone
market. The company sees greatest potential for achieving its objective
in the partnership with Microsoft. According to the environment analysis
the most serious problem for the company is the threat from existing
rivals. Apple Inc and Samsung are the market leaders, companies with
innovative products and great marketing strategies. Apple is using
differentiation strategy when introducing its products, and Samsung is
using segmentation strategy for the majority of its products except for its
flagship device. Nokia has built some interesting products in the Lumia
series, with very impressive technologies and beautiful designs.
However the market success of these products has not been so great and
Nokia did not achieve its goal of becoming a market leader in Europe.
According to the analysis the reason for this is wrong implementation of
marketing strategy and specifically problems with the positioning of the
products. Nokia has introduced its flagship device at a high price with
very innovative technology and has position it in the high-end costly
Smartphone market. The product

is introduced by implementing differentiation strategy. This strategy

implementation is correct according to the analysis, as the product is
introduced with aggressive marketing mix, targeting the mass market.
Lumia 920 has seen great interest in the Smartphone market in Europe.
However this product is only one of the nine Lumia devices, which have
been introduced in the past couple of years. According to the analysis
Nokia has tried to use segmentation strategy, when marketing the rest of
the Lumia products. Segmentation strategy involves dividing the market
into smaller market segments based on different characteristics of the
customer group. A company has to choose among those market
segments and build products suitable for the chosen segments.
Customers have to be aware that the products recognize their needs, so
positioning is important for the success of such strategic decision.
However when analysing Nokia’s segmentation strategy, it does not
become clear what the segmentation actually is. The products are not
positioned well in the market, and customers may have hard time
choosing among Lumia series. This problem could be making customers
to turn to one of Nokia’s rivals such as Samsung, which have positioned
well their products and are letting their customers know that their
company provides what they need. I believe this is really harmful for the
company as the Lumia phones are important strategic point for Nokia in
its journey of regaining its lost ground in the Smartphone market. Nokia,
as pointed out in the vision of the company, mainly counts on its
partnership with Microsoft to achieve its objectives. This marketing
strategy mistake may harm the future success of the company given the
high switching costs for consumers between different operating systems.
If Nokia introduce other products in the Lumia series, it would be useful
for the company to follow a simple framework for segmentation strategy
formulation. The company should try to focus more on the customer,
and build products for the market segments it would like to target. Also
it should use the promotion part of the marketing mix to position its
products, and inform the customer of what Nokia offer

.
 BIBLOGRAPHY

The following sources have been sought for the preparation of this
report.

BOOKS
 N.G Kale, Marketing Management
 Philip Kotler, Introduction to Marketing Management.

WEBSITE
1. WWW.GOGOLE.COM
2. HTTP:/EN.WIKIPEDIA.ORG/WIKI/NOKIA
3. WWW.NOKIA.COM
4. WWW.SCRIBED.COM
5. WWW.GSMARENA.COM