A project report on marketing plan of NOKIA Submitted to:Dr. Anurupa B Singh Submitted by:ABHISHEK PATHAK (FT-09-705) PG.

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ACKNOWLEDGEMENT I would like to express my heartfelt feelings and convey immense thanks to all t hose who gave me there moral support and shared their insights with me while I w as preparing this project. First and foremost, I am highly thankful and indebted to my faculty Dr. Anurupa Singh IILM GSM who has always been there to encourage and help us owe special thanks to her for providing whenever i needed her help. I unending support & co-operation. Last but not least, I will ever remain grateful and indebted to my parents, my t eachers & friends who have always been the source of unending inspiration, encouragement & guidance in pursuit of excellence & learning process throughout my life. PG.NO 2

Table of Content Topic Page No Executive Summary Company Profile Situation Analysis Segmentation Nokia Strategies Distributors Conclusion Implementation and control Contingency plans . PG.NO 3

Executive Summary Mobile phone market in India is going through major changes. Key players are los ing market share while new and young companies, mostly from Asian countries, are coming to the market. At the same time the market is slowly expanding when peop le are buying more phones than ever. The whole process of buying mobile phones h as changed in the last few years. People no longer carry the same phone year in year out , change is the fast technological development of the phones. But also consumers but they change their phone every year, some even twice a year. One rea son for these attitudes towards mobile phones has changed. Mobile phones are no longer seen as expensive, hi-tech products, but they have become accessories lik e jewellery or a piece of clothing. Nokia is still the largest mobile phone compa ny in the world, but its long-term dominance is now challenged more than ever. O bservers have begun asking whether the cutting edge that has turned Nokia into t he No 1 vendor still exists, as Nokias market share and revenues have been on the decline. Falling average sales prices (ASPs) and market share have had an impac t and forced Nokia to further re-think its strategy towards developed and emergi ng markets. This report gives an overview on what is happening on the mobile phon e market today and analyses Nokias market position in the growing market. This re port includes a brief introduction to Nokia followed by an environmental analysi s, SWOT analysis of the company. Half way through the report you can find inform ation about consumer behavior and segmentation. At the end, this report introduc es the main strategies and objectives of Nokia for the competitive market. Final ly we try to make a conclusion of the topics discussed and attempt to give some possible answers to the question at hand. PG.NO 4

Company Profile 2.1 History The roots of Nokia go back to the year 1865 with the establishment of a forest i ndustry enterprise in South-Western Finland by mining engineer Fredrik Idestam. Elsewhere, the year 1898 witnessed the foundation of Finnish Rubber Works Ltd, a nd in 1912 Finnish Cable Works began operations. Gradually, the ownership of the se two companies and Nokia began to shift into hands of just a few owners. Final ly in 1967 the three companies were merged to form Nokia Corporation. At the beg inning of the 1980s, Nokia strengthened its position in the telecommunications a nd consumer electronics markets through the acquisitions of Mobira, Salora, Tele va and Luxor of Sweden. In 1987, Nokia acquired the consumer electronics operati ons and part of the component business of the German Standard Elektrik Lorenz, a s well as the French consumer electronics company Oceanic. In 1987, Nokia also p urchased the Swiss cable machinery company Maillefer. In the late 1980s, Nokia b ecame the largest Scandinavian information technology company through the acquis ition of Ericsson's data systems division. In 1989, Nokia conducted a significan t expansion of its cable industry into Continental Europe by acquiring the Dutch cable company NKF. Since the beginning of the 1990's, Nokia has concentrated on its core business, telecommunications, by divesting its information technology and basic industry operations. PG.NO 5

2.1.1 1865-1960 From its inception, Nokia was in the communications business as a manufacturer of paper - the original communications medium. Then came technolo gy with the founding of the Finnish Rubber Works at the turn of the 20th century . Rubbers, and associated chemicals, were leading edge technologies at the time. Another major technological change was the expansion of electricity into homes and factories which led to the establishment of the Finnish Cable Works in 1912 and, quite naturally, to the manufacture of cables for the telegraph industry an d to support that new-fangled device the telephone! After operating for 50 years , an Electronics Department was set up at the Cable Works in 1960 and this paved the way for a new era in telecommunications. Nokia Corporation was formed in 19 67 by the merger of Nokia Company - the original paper-making business - with th e Finnish Rubber Works and Finnish Cable Works. 2.1.2 1960-1980 Design has alway s been important at Nokia and today's mobile phones are regarded as a benchmark for others to follow. Take, for example, multi-colored, clip-on fascias which tu rned mobiles into a fashion item overnight. But Nokia has always thought like th at and back in the fashion-conscious 1960's when one branch of the corporation w as a major rubber manufacturer, it hit on the idea of making brightly-colored ru bber boots at a time when boots followed the Henry Ford principle you could have any colour, so long as it was black! The '60s, however, were more important as the start of Nokia's entry into the Telecommunications market. A radio telephone was developed in 1963 followed, in 1965, by data modems - long before such item s were even heard of by the general public. PG.NO 6

In the 1980's, everyone looked to micro computers as the next 'big thing' and No kia was no exception as a major producer of computers monitors and TV sets. In t hose days, the prospect of High Definition TV, satellite connections and teletex t services fuelled the imagination of the fashion conscious homeowner. In the ba ckground, however, changes were afoot. The world's first international cellular mobile telephone network, NMT, was introduced in Scandinavia in 1981 and Nokia m ade the first car phones for it. True enough, there were 'transportable' mobile phones at the start of the '80's but they were heavy and huge. Nokia produced th e original hand portable in '87 and phones have continued to shrink in inverse 2 .1.3 1980-2001 It took a technological breakthrough and changes in the political climate to create the wire-free world people are increasingly demanding today. The technology was the digital standard, GSM, which could carry data in addition to high quality voice. In 1987, the political goal was set to adopt GSM through out Europe on July 1st 1991. Finland met the deadline, thanks to Nokia and the o perators. Politics and technology have continued to shape the industry. The '80s and '90s saw widespread deregulation, which stimulated competition and customer expectations. Nokia changed too and in 1992 Jorma Ollila, then President of Nok ia Mobile Phones, was appointed to head the entire Nokia Group. The corporation divested the non-core operations and focused on telecommunications in the Digita l Age. Few people in the early '90s would have thought that 'going digital' woul d change things so. proportion to the growth of the market ever since. PG.NO 7

2.1.4 2001 and into the Future Nokia is harnessing its experience in mobility an d networks to generate a startling vision of the future. Meeting rooms, offices and homes will be 'smart' enough to recognize their human visitors and give them whatever they want by listening to their requests. Nokia welcomes change and im provement and can embrace new ideas at great speed. Such characteristics will ne ver change but, as to the rest, the story has only just begun! PG.NO 8

2.2 Mission and Vision: 2.2.1 Vision Our customers continue to our First Priority Nokias future success depends on delivering great experiences to our customers by creating products and solutions that work seamlessly and are appealing. 2.2.2 M ission In a world where everyone can be connected, we take very human approach to technology Connecting is about helping people to feel close to what matters. Whe rever, whenever, Nokia believes in communicating, sharing, and in the awesome po tential in connecting the 2 billion who do with the 4 billion who dont. If we foc us on people, and use technology to help people feel close to what matters, then growth will follow. In a world where everyone can be connected, Nokia takes a v ery human approach to technology. 2.2.3 Strategy Wherever, whenever, we believer in communicating, sharing and in the awesome pot ential of connecting the 2 billion who do, with the 4 billon who dont. At Nokia, customers remain our top priority. Customer focus and consumer understanding mus t always drive our day-to-day business behavior. Nokias priority is to be the mos t preferred partner to operators, retailers and enterprises. Nokia will continue to be a growth company, and we will expand to new markets and businesses. World leading productivity is critical for our future success. Our brand goal is for Nokia to become the brand most loved by our customers. PG.NO 9

In line with these priorities, Nokias business portfolio strategy focuses on five areas, with each having long-term objectives: - Create winning devices - Embrac e consumer Internet service - Deliver enterprise solutions - Build scale in netw orks - Expand professional services There are three strategic assets that Nokia will invest in and prioritize: - Brand and design - Customer engagement and fulf illment - Technology and architecture 2.2.4 Organization Nokia comprises four business groups: Mobile Phones, Multimedia, Enterprise Solu tions and Networks. Mobile Phones connects people by providing expanding mobile voice and data capabilities across a wide range of mobile devices. We seek to pu t consumers first in our product-creation process and primarily target high-volu me category sales. Multimedia brings connected mobile multimedia experiences to consumers in the form of advanced mobile devices and applications. Our products give people the ability to create, access and consume multimedia, as well as sha re their experiences with others through a range of radio technologies. Revenue by four business groups Enterprise Solutions offers businesses and institutions a broad range of products and solutions, including enterprise-grade mobile devic es, underlying security infrastructure, software and services. We also collabora te with other companies to provide fixed IP network security, mobilize corporate email, and extend corporate telephone systems to Nokias mobile devices. Networks provides network infrastructure, communications and networks service platforms, as well as professional services to operators and service providers. Networks f ocuses on the GSM family of radio technologies and aims at leadership in three a reas: GSM, EDGE and 3G/WCDMA networks; core networks with increasing IP and mult i access capabilities; and services. Our business groups are supported by variou s horizontal entities: PG.NO 10

Customer and Market Operations is responsible for marketing, sales, sourcing, ma nufacturing and logistics for mobile devices from Mobile Phones, Multimedia and Enterprise Solutions. Technology Platforms is responsible for the competitivenes s of Nokias technology assets. The group supports Nokias overall technology manage ment and development by delivering leading technologies and well-defined platfor ms both to Nokias business groups and to external customers. Nokia-wide horizonta l units drive and manage specific Nokia assets. They include brand and design, d eveloper support, research and venturing, and business infrastructure. Corporate Functions support Nokia's businesses with company-wide strategies and services. 2.3 Mobile Phone Market In India NOKIAs hegemony in the GSM handset segment has increased during last one year. NOKIAs market share (in terms of unit sold) has g rown to 74% in March 09 from 61.5% in October 08. In the colour segment too, Nok ia has increased its market share to 55% in march 06 from 33.7% in march 05.In t erms of value, Nokias overall market share has jumped to 70.5 % in march 06 from 57.7% in October 05. In the colour phone category, its market share (in terms of value) has increased to 59.3% in march 06 from 40.9% in October 05, according t o ORG GFK estimates. Fig.2.2 PG.NO 11

NOKIAs performance over a year Once NOKIAs closest rival, Samsung has been losing its market share since October05 when it had an overall market share (in terms of units) of 1.2, to 7.8% I March06. The drop is much steeper in value terms where its market share has fallen to 9.8% in March06 from 21.2% in October05. Sony Erics sons market share (in terms of units) has improved marginally from 7.1% October05 to 7.6% in March06, although in value terms it has increased from 8.7% in October0 5 t 10.2% in March06. The colour segment, where Samsung used to rue once, has see n its market share falling both in terms of units and value. The market share (u nits) has dropped to 16.3% in March06 from 34.9% in October05 ad in terms of value , has dropped to 14% in March06 from 32.5% in October05. Sony Ericssons market shar e in the colour segment is marginally more than the Samsungs at 16.7% (unit) and 15.9% (value) in March06 and is an improvement over its October4 figures of 15.6% (units) and 14% (value). The total handset units sold in the top 10 towns in the month of March is 5,06,493 units, from 4,68,621 units inOctober05. The total val ue of the handset s sold is Rs.245.6 crore as of March06 from Rs.236.1 crore in O ctober06. The number of colour phones jumped to 2,11,779 units in March06 from 1,6 6,210 units in October05. The value of the colour phone market increased to Rs.15 ,208 lakhs in March06 from Rs13,023 lakhs in October05. 3. Situation Analysis: 3.1 Social Analysis For electronics companies, take back and recycling add value . They support brand value and customer loyalty and inspire customer insights. T hey also demonstrate environmental responsibility. Manufacturers like Nokia are generally in a disadvantaged position for take back, due to the costs involved a nd the lack of many consumer touch points. Stakeholders in the take back and rec ycling process include governments, retailers, customers, consumers and products . Other stakeholders include recyclers, refurbishes and NGOs. PG.NO 12

The responsibility for bringing used devices back for recycling lies ultimately with the consumers. The challenge for Nokia in take back programs is how to make mobile phone users do their share and return the used products for recycling. B y bringing the used mobile to a take back point the customers make sure that use d phones will not end up in landfills in their own or other countries. Instead, the recyclable raw materials can be used again in new products. In a typical con sumer scenario, such as when a mobile phone user is renewing a service contract with a mobile phone provider, in the US and Europe an estimated 60% to 70% retai n their old devices because of their perceived value. Successful take back is al so driven to a great extent by economics and market factors, which in turn place large quantities of used devices in refurbishment scenarios. This causes concer n for the quality and safety of products repaired or altered outside of the inte nse controls fundamental to a Nokia production process. The optimum outcome from Nokia's environmental efforts in the product lifecycle is to minimize adverse e ffects to the environment, to our customers and consumers and to our business. A s the Nokia lifecycle philosophy applies to take back, the power to manage take back and direct the disposal of a mobile device at the end of its life is largel y controlled by: customers, consumers, retailers, and by governments. There are various take back channels and Nokia has limited control over the actual flows. Despite the challenges posed by the logistics of recovery, Nokia has for years h ad programs in place and continues to move ahead with new programs to recover mo bile devices at the end of their useful lives. These include take back: * Via ou r authorized service centers and flagship stores * Through our web site, only li mited in certain countries * As part of eBay Rethink, only in the US Nokia is al so piloting different forms of cooperation with operators and distributors, such as installing collection bins at point of sales and mail service return, as wel l as in various industry level schemes and in public awareness building campaign s. PG.NO 13

3.2 Environmental Analysis NOKIA aims to be a leading company in environmental performance. By working to r educe the adverse environmental impacts of our products and activities, our cust omers can use our products with confidence and good conscience. Combining enviro nmental issues into daily work makes business sense for Nokia. By working to red uce the adverse environmental impacts of our products and activities, we minimiz e risk, ensure legal compliance, gain stakeholder acceptance, and help advance t he long-term success of our company. Our customers can also use our products wit h confidence and good conscience. Through our environmental strategy, we work to ensure that our products are safe for personal use and that they do not overly tax the environment. Nokia is a trusted brand and we take that trust seriously. 3.2.1 Nokia environmental strategy Nokia is a leading company in environmental p erformance. Nokias environmental strategy is based on lifecycle thinking, beginni ng with the extraction of raw materials and ending with recycling and disposal o f as well as the reintroduction of recovered materials into the economic system. Our goal is to develop advanced mobile technology, products and services, which have no undue environmental impact, consume energy efficiently, and that can be appropriately reused, recycled or disposed of. Nokia's environmental strategy i s integrated with our business strategy. Our four business groups have set envir onmental targets for their own activities to implement our corporate level envir onmental strategy. 3.2.2 Main Issues In Focus Three important global issues rema in at the forefront of much of Nokias environmental work. They are substance mana gement, arrangements for the take back and recycling of end-of-life products, an d energy efficiency. * Substance management During the planning and design of ou r products, one of our main focus areas is their material content. We are contin uously analyzing the materials used in our products with the aim of reducing the amount of potentially hazardous or harmful content. PG.NO 14

* Take back and recycling In take back and recycling, we have for years had in p lace our own arrangements for mobile devices and accessories, as well as for mob ile network and IP network security equipment. All Nokia products are also cover ed by the European Union's new Waste Electrical and Electronic Equipment (WEEE) directive. Nokia is assuming product responsibility as defined by the directive as it is implemented throughout Europe. In addition, take back of Nokia mobile d evices will also continue at authorized Nokia Service Centers and Flagship store s in all markets where we do business. * Energy efficiency In our product creati on as well as our own operational activities, an important area for continuous p erformance improvement is in energy efficiency. We have consistently been able t o reduce the energy intensity of our products. 3.2.3 Supply Chain We are committed to reducing the environmental impact of our business. We expect all Nokia suppliers and their suppliers to take a similar approach. At Nokia, w e believe in long-term partnerships with suppliers who share our approach to eth ical business. Together we work hard to anticipate risk, demonstrate company val ues, enhance our governance practices, increase employee satisfaction and look a fter the communities where we do business. PG.NO 15

3.3 SWOT Analysis Nokia is at an important crossroads in its history. Having architected many of t he key tenets for growth during the formative years of the mobile phone industry , the market with which Nokia is so familiar may be adopting different rules, on es that it may not fully understand. The situation Nokia faces may be similar to the period in the PC industry when Dell Computer surpassed perennial leaders IB M, Hewlett-Packard and Compaq Computer. Why might this happen? Because Nokia's s trengths are so well-understood by its competitors, they are well-targeted and i mproved upon. The wireless market's evolution has slowed, making it easier to ch allenge the incumbents. Also, the progress of technology has made many of Nokia' s early advantages easier to overcome. Nokia's leadership position is a result o f paying persistent attention to market needs and taking the right chances at th e right time. Nokia was the first to acknowledge fashion as an important element in mobile phone purchases, and it is solidly behind the push for Multimedia Mes saging Service, which could become the first data service beyond Short Message S ervice to be deemed successful. There is a significant gap between Nokia and sta rtups, which makes it difficult to compete against Nokia. Nokia's tie to operato rs has kept its products solidly in consumers' view. Yet, Nokia faces some serio us challenges. Fig.3.1. SWOT Analysis The mobile landscape has fundamentally shi fted, and some of Nokia's strengths and core beliefs may no longer be valid. In the following research, we discuss Nokia's strengths and challenges and provide advice for enterprises partnering with, purchasing from and working with Nokia. Strengths: Nokia has largest network of distribution and selling as compared to other mobile phone company in the world. It is backed with the high quality and professional team in the HRD Dept. The financial aspect is very strong in case o f Nokia as it has many more profitable business. The product being user friendly and have all the accessories one want that is why is in great demand making it No-1 selling mobile phones in the world. Wide range of products for all class. T he re-sell value of Nokia phones are high compared to other companys product. PG.NO 16

Weakness: Nokia has many strengths and some weakness. Some of the weakness inclu des the price of the product offered by the company. Some of the products are no t user friendly. Not concern about the lower class of the society people. Not ta rgeting promotion toward them. The price of the product is the main issue. The s ervice centers in India are very few and scare. So after sales service is not go od. Opportunity : Nokia has ample of opportunity to expand its business. With th e wide range in products,features and different price range for different people , it has an advantage over the competitors around. With the opportunity like Tele com penetration in India being at the peak time, Nokia has an opportunity to incr ease its sales as well as the market share. As the standard of living in India h as increased the purchasing power of the people as increased as well, so Nokia h as to target right customer at right time to gain the most out of the situation. Threats: Nokia has many threats to tackle to maintain its position as market le ader. The threats like emerging of other mobile companies in the market. The com panies like Motorola, Sony Eriksson, Cingular (U.S) etc. these companies have co me to the stand of tough competition with Nokia in the field of Mobile Phones. T hreats can be like providing cheap phones, new features, new style and type, goo d after sales service etc. So, Nokia has to keep in mind the growing competition around. Nokia has to make strategies to tackle problems in the present and the near future. The growing demand of WLL network can cause drop in sales for Nokia , as Nokia provides many less CDMA phones to the customer. PG.NO 17

4. Segmentation 4.1 Mobile Phone Mobile Phones connect people by providing expan ding mobile voice and data capabilities across a wide range of mobile devices. W e seek to put consumers first in our product-creation process and primarily targ et high-volume category sales of mobile phones and devices based on the followin g global cellular technologies: GSM/EDGE, 3G/WCDMA and CDMA. In voice centric an d mainstream mobile phones, we believe that design, brand, ease of use and price are our customers' most important considerations. Increasingly, our product por tfolio includes new features and functionality designed to appeal to the mass ma rket, such as mega pixel cameras, music players and advanced-quality color scree ns. Quality is at the heart of Nokias brand promise, very human technology. We wa nt our customers to know that Nokia is the best quality company in the industry. Our goal is to have the industrys best products and services, most loyal custome rs and most efficient operational mode. We believe that quality is about meeting and exceeding customer expectations. At Nokia, we view quality holistically and as an integral part of business management. The quality of products and custome r experiences depends on the quality of processes, which in turn is tied to the quality of management. Our key quality targets are: For Nokia to be number one i n customer and consumer loyalty. For Nokia to be number one in product leadershi p. For Nokia to be number one in operational excellence. The quality and reliabi lity or our products and services are among the most important factors driving c ustomer satisfaction and loyalty. Designing good quality products begins with un derstanding customer requirements and creating the best user experience. The who le chain, from suppliers through to R&D, operations, sales and distribution to c ustomers, impacts the end-result everybody in the chain has a role to play in ac hieving quality. Our products and customer experiences are the results of our ev eryday processes. Process management means finding the simplest way of operating , in order to create customer value in a lean manner. Our process thinking cover s everything we do, and processes are continuously improved based on the measure s and the PG.NO 18

feedback we receive from our customers. Quality in management is vital for lever aging innovations globally and improving productivity in general. Our approach t o this is platform thinking, process management and combining fact-based managem ent with values-based leadership. We have developed a key framework for improvem ent at Nokia, which we call the 'Self-Regulating Management System'. It's about management practices that allow us to run our business in a consistent, effectiv e and fact-based manner. Commitment to quality improvement is a continuous manag ement process. It is both a business strategy and a personal responsibility, and it is a part of our culture and values. But at the end of the day, quality impr ovement is much more than something we can quantify in words or pictures. It is an attitude a mindset. By taking quality personally we are able to deliver world -class quality to our customers. It is our source of inspiration, energy and exc itement. 4.1.1 Segmentation Strategy Nokia Market Demographic The profile for Nokia customer consists of the following geographic and demograp hic: Geographic Our immediate geographic target is rural India. The total target ed population is estimated at 100 million. Demographic Male and female. Ages 2550, this is the segment that makes up 80% of the Nokia mobile phone market accor ding to the NOKIA India Ltd. Professionals and College students. PG.NO 19

5. Nokia Strategies Market growth predictions provide one motivation for network operators and servi ce providers to improve the data service experience. For example, some research predicts a 270% increase in average monthly ARPS (average revenue per subscriber ) for data services from 2005 to 2020, as indicated in Figure 5.1. Nokia predict s a CAGR (compound annual growth rate) of 9% for the mobile services market duri ng the years 20042009 (see Figure 5.2). This growth will be due largely to growth in data services (CAGR 23%), with CAGR at 6% for voice and other calls. Data is particularly a growth driver in emerging markets and Asia. Some researchers pro vide more conservative figures, but all the research indicates that definite gro wth opportunities exist for mobile data services. 5.1 Marketing Strategy Today, the true killer data application is still text messaging, a typical example of person-to-person communication. Other end-user services, however, have not t aken off as expected in recent years. The primary reason for this slow take-up i s that most of these services do not fulfill the expectations of users. Although ring tones are one example of successful person-to-content services, progress m ust be made for market take-up of other mobile data services such as: Messaging (e.g., MMS and e-mail) Entertainment (e.g., graphics, logos, games) Information (e.g., directory services, news) PG.NO 20

A variety of user needs will drive market growth for mobile data services There are two main barriers to increased usage of data services. First is the la ck of relevant service propositions, where the price does not correlate with the perceived value of the service. Second is the complexity of service adoption an d usage, where users perceive that data services require too much effort compare d to other solutions. User needs and market growth are clearly present, as illus trated in Fig.5.3. However, mass-market adoption will happen only when the servi ce providers have identified the relevant service propositions and ease-of-use f actors. Delivering ease-of-use is within the reach of any service provider, rega rdless of whether it operates its own network. However, the challenge is to unde rstand the underlying reasoning for end-user behavior and usage patterns and to organize the service offering accordingly. Visibility into the end-user service experience can be obtained from resources such as sophisticated end-user quality monitoring systems, continuous end-user behavior studies and end-to-end perform ance field measurements. Moreover, it is of great importance to analyze internal customer processes and readjust them according to customer needs. Eventually, t he need to be attuned to the customer experience might lead to a new, customer-c entric organizational structure with clear responsibilities for end-to-end Quali ty of Experience (QoE). Who will have the overriding responsibility for end-user experience will vary depending on the operators business model and organizationa l structure? In order to prepare the organization for differentiation, the resea rch firm Forrester proposes that the marketing department should be made respons ible for the total customer experience. Today, service providers offer data serv ices that appeal to a very small proportion of mobile users: the young and techn ology savvy. This group is also one that is most prone to churn. Yet todays high ARPU (average return per subscriber) users are arguably the customers to retain, as they will likely remain at high ARPU levels for some years to come. PG.NO 21

5.1.1 Marketing Objective Capture rural Indian market Target school student Attr act Customers to New technology Enhance Distribution Maximize our revenues Maint ain Customers Loyalty 5.1.2 Ease-of-Use The main reason why data services have no t yet achieved mass-market adoption is due to the complexity perceived and exper ienced by end-users. The poor reputation of data services increases the threshol d of willingness for non-users to experiment with data. Bad user experiences als o inhibit existing users from adopting new services. 5.1.2.1 Simplified Service Setup Mass-market service usage can occur only if the technical barriers for end-users have been overcome. Improving the initial phas e of service delivery is a sure way to increase the use of a mobile service, whi ch will lead to an improved end-user experience; higher revenues for service pro viders, operators and developers; decreased customer care costs; and decreased c hurn rates. Finding and subscribing to a service are the first hurdles for a pot ential user. Endusers expect the same effortless and easy access to services via a mobile phone as they are accustomed to with other channels (e.g., Internet, T V). However, easy access to a service is dependant on the users frame of referenc e. Some users consider access via a branded Internet portal easy, while some use rs prefer a browser menu on the device. Knowing your customers is the key to ide ntifying the most appropriate access channels and improving the efficiency of ma rketing. PG.NO 22

Service set-up and configuration is the crucial stage in the service adoption pr ocess. Users often consider setting-up and configuring services the most tedious part of service take-up. Studies suggest that users will abandon the service af ter two or three failed setup attempts. As the number of functions on mobile set s continues to grow, users find it increasingly difficult to configure and maint ain services and applications on their devices (see Fig.5.4). Focusing on delive ring easeof-use in set-up and configuration is paramount in order to promote ser vice adoption and improve revenues from services. 5.1.2.2 Simplified user interface For an easy-to-use experience, service content must be undemanding and plain. Ea se-of-use comes from effortless navigation, with a simple structure that does no t require reading a user manual to be understood. Understandable terminology use d throughout the service session enhances the experience even further. The user interface should have flexible content behind it, in the sense that the content adapts seamlessly to different terminals. Ease-of-use is also created by minimiz ing the users exposure to the underlying technology when using the service. A sim ple and practical user interface, coupled with relevant content, is a prerequisi te for a successful service concept. Any device offered as part of a service mus t be carefully matched with the requirements of intended users. An easy-to-use e xperience stems from a service concept that successfully combines relevant conte nt with a matching device. Handset functionality already includes email, various types of messaging, and access to Internet and entertainment functions. However , end-users experience the increasing functionality of handsets as too complicat ed and are hesitant to use them. As such, complex handsets do not by themselves promote increased service usage. From the perspective of service management, eas e-of-use means integrated systems that feed service information into reporting s ystems that enable the service provider to monitor and assess service usage onli ne, in real-time. Application developers must consider the scalability of applic ations in order to deliver adaptability for different interfaces in devices and in the network. PG.NO 23

5.1.2.3 Clear Payment Method The ease-of-use experience is also reflected in pay ment options and processes, which should be as effortless as possible. These pro cesses include payments and associated transactions, such as contracts required to access the service, as well as procedures to make and confirm transactions. E nd-users favor suppliers that can minimize the risks involved and maximize the u sers level of comfort and confidence. The end-user should feel able to control sp ending and feel secure about the services used. For convenience, users prefer to pay for services with existing pre-paid or post-paid accounts. 5.1.2.4 Easy acc ess to Customer Support Offering customer care is an essential part of an ease-o f-use service experience. The working customer care concept creates stickiness b etween the end-user and the service provider. Customer support can be offered vi a a call center, by providing automated self-service or through in-store support . The challenge is to choose the customer support combination that best matches the specific service proposition. For call centers, ease-of-use manifests in qui ck response, least number of call transfers, transparent tariffs and knowledgeab le personnel. The better the alignment in business processes, supporting infrast ructure and related call center processes, the better the capabilities for deliv ering superior call center service. Another contact point for users is often pro vided via a branded Internet portal. An Internet portal is an attractive option because it supports end-users 24/7 and is cost-effective for the service provide r. Users can access the portal to manage and modify their own account. Connectio n stability and logical navigation with a minimal number of clicks determines th e ease-of-use experience in an Internet portal. The third contact point for user s is in-store support. This support is difficult to organize and manage for qual ity as it is often outside of a service providers own business realm. End-users o ften perceive in-store support as inadequate and not fulfilling their needs. Man y end-users complain about the service they have been given while visiting an ou tlet. PG.NO 24

5.1.2.5 Simplified service termination Termination of the service should be as s imple as possible in order to lower the threshold for a users willingness to test the service. A simple SMS or MMS message should be adequate to terminate the se rvice. 5.1.3 Product Life Cycle A large untapped potential exists among the pres ent base of non-users: the 10% of existing customers who use services infrequent ly or do not use services at all, even though they have the right mobile handset . In general, these mainstream users are more loyal to their existing service pr ovider, making them a group to reward for their loyalty. Ease-of-use is one of t he key factors when increasing customer loyalty, which, in turn, will lower chur n and eventually lead to a decrease in marketing expenditures. Differentiation b y ease-of-use experience will also have an effect on increasing ARPU, because it speeds up the adoption of new services. The more mainstream the target users, t he more they value ease-of-use and customer intimacy and seek practical uses for new services. The fact that ease-ofuse is particularly relevant to mainstream u sers makes it such an important consideration. Making a service successful in th e mainstream market has the challenge for most existing services. Creating easeof-use in services will help a service provider to cross the chasm from the early market of innovators and trendsetters to the mainstream market of average users (see Fig.5.5). Services Life Cycle Creating and implementing a business strategy that focuses o n ease-of-use will enable the service provider to increase service revenues. Nat urally, strategies across geographical regions and operators differ and it is no t possible to copy exactly from the experiences of others. Service uptake and us age differ vastly depending on the stage of the overall society and service cult ure, main technologies chosen, competitive market situation, maturity level of n etworks, and other network lifecycle variables. PG.NO 25

5.2 Positioning Strategy When Nokia positions its brand in the crowded mobile ph one marketplace, its message must clearly bring together the technology and huma n side of its offer in a powerful way. The specific message that is conveyed to consumers in every advertisement and market communication (though not necessaril y in these words) is "Only Nokia Human Technolgy enables you to get more out of life" In many cases, this is represented by the tag line, "We call this human te chnology". This gives consumers a sense of trust and consideration by the compan y, as though to say that Nokia understand what they want in life, and how it can help. And it knows that technology is really only an enabler so that you-the cu stomer-can enjoy a better life. Nokia thus uses a combination of aspirational, b enefit-based, emotional features, and competition-driven positioning strategies. It owns the "human" dimension of mobile communications, leaving its competitors wondering what to own (or how to position themselves), having taken the best po sition for itself. 5.2.1 Nokia Product Design Nokia is a great brand because it knows that the esse nce of the brand needs to be reflected in everything the company does, especiall y those that impact the consumer. Product design is clearly critical to the succ ess of the brand, but how does Nokia manage to inject personality into product d esign? The answer is that it gives a great deal of thought to how the user of it s phones will experience the brand, and how it can make that experience reflect its brand character. The large display screen, for example, is the "face" of the phone. Nokia designers describe it as the "eye into the soul of the product". T he shape of phones is curvy and easy to hold. The faceplates and their different colors can be changed to fit the personality, lifestyle, and mood of the user. The soft key touch pads also add to the feeling of friendliness, expressing the brand personality. Product design focuses on the consumer and his needs, and is summed up in the slogan, "human technology." PG.NO 26

Nokia now accounts for over half of the value of the Finland stock market, and h as taken huge market share from its competitors. According to one brand valuatio n study carried out in mid-1999, it ranked 11th on the world's most valuable bra nd list, making it the highest-ranking non-U.S. brand. As has been pointed out, it has unseated Motorola. Nokia achieved its brilliant feat through consistent b randing, backed by first-class logistics and manufacturing, all of which revolve around what consumers what. 5.3 Promotion Strategy "Push or Pull"? Marketing th eory distinguishes between two main kinds of promotional strategy "push" and "pu ll". 5.3.1 Push: A push promotional strategy makes use of a company's sales force and t rade promotion activities to create consumer demand for a product. The Nokia pro motes the product to wholesalers, the wholesalers promote it to retailers, and t he retailers promote it to consumers. For example Nokia promote their products v ia retailers such as Carphone Warehouse. Personal selling and trade promotions a re often the most effective promotional tools for companies such as Nokia - for example offering subsidies on the handsets to encourage retailers to sell higher volumes. A "push" strategy tries to sell directly to the consumer, bypassing ot her distribution channels (e.g. selling insurance or holidays directly). With th is type of strategy, consumer promotions and advertising are the most likely pro motional tools. 5.3.2 Pull: A pull selling strategy is one that requires high spen ding on advertising and consumer promotion to build up consumer demand for a pro duct. If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask th e producers. PG.NO 27

5.4 Pricing Strategy Nokia observes different pricing strategy for different ran ge of product. The main aim is to gain the market at rural village of India and maintain its customer for Mid range phone. 5.4.1 Premium Pricing Use a high price where there is uniqueness about the product or service. This approach is used w here a substantial competitive advantage exists. Such high prices are charge for luxuries such as NOKIA E-series mobile phone. 5.4.2 Penetration Pricing The pri ce charged for products and services is set artificially low in order to gain ma rket share. Once this is achieved, the price is increased. This approach was use d Nokia on Model No. 1100 and 1108, in Indian rural market. 5.4.3 Economy Pricin g This is a no frills low price. The cost of marketing and manufacture are kept at a minimum. Nokia follow it for its mid range Mobile phone. Normally it is to a ttract middle income group. 5.4.4 Price Skimming Charge a high price because you have a substantial competit ive advantage. However, the advantage is not sustainable. The high price tends t o attract new competitors into the market, and the price inevitably falls due to increased supply. 5.5 Distribution Strategy PG.NO 28

Mobile phones have become a major part of our everyday life. On the one hand, In dias Mobile phone market has grown rapidly in the last few years on the back of f alling phone tariffs and handset price, making it one of the fastest growing mar kets globally. Nokia is a world leader in mobile communications, driving the gro wth and sustainability of the broader mobility industry. Nokia connects people t o each other and the information that matters to them with easy-to-use and innov ative products like mobile phones, device and solutions for imaging, games, medi a and businesses. Nokia provides equipment, solutions and services for Network o perators and corporations. Nokia held a global market share of 34.2 percent at t he end of January, according to consultants strategy Analysis, while Motorola had 18.3 percent, Samsung 11.1 percent, and LG and Sony Ericsson 6.6 percent each. T o illustrate Nokias performances, more than one third worlds phone users use a Nok ia phone. In India Nokia is the market leader, with a manufacturing facility in C hennai. Understanding of distribution channel used by Nokia Distribution is the life blood for an organization in order to make sales. The products are required to reach the outlets for sales based on the demand for the product. Only if dis tribution channel is effective products can reach the consumers, as well maintai n or increase their market share. This is very important, as there is intense co mpetition in the market from various other players, in order to stay ahead and m eet the competition we need to provide goods on time to the dealers to make sale s and earn profits for both company as well as outlets. Availability of goods an d time is an essential for any organization this could be done only by having go od distributors and redistributors stockiest. Further the company should take ca re of goods manufactured reach the distributor & the redistributors stockiest on time. The company requires to have a regular check on these channels if they wo rking efficiently and take steps to further step to improve. The company only st ay ahead in profits, market share etc, only if their products reach the outlets on time as well based on demand. The project began with the basic understanding of how distribution of mobile phones takes in the market by Nokia. Nokia works w ith the distribution of mobile phones takes in the market by Nokia. Nokia works with the distributor, re distributor stockiest (R.D.S) and finally the retailer from whom the product is sold to the consumer. Five forms of outlets sell Nokias products: PG.NO 29

6. Distributors-: i. HCL infosystem ii. Bright point. Outlets-: i. Nokia priority dealers ii. Mult i brand outlets iii. Reliance web world iv. Reliance web world express v. Tata t rue value shop. Nokia Distribution Channels Distributors: A) HCL Infosystem: During the last ten years, the HCL-Nokia relationship has wit nessed strong growth in the Indian GSM handset market resulting in a significant market share gain for Nokia, and the increased need for a distribution Network that will meet the projected market growth of 200 million subscribers by 2007. T he relationship with Nokia has been a very satisfying one, and the agreement bet ween Nokia and HCL reaffirms Nokias commitment to the growing Indian Market, to e nsure that mobile devices are accessible to more consumers in the cities and tow ns across India. Mobile penetration is getting into the next phase of growth of which a major por tion is expected to come from smaller towns and remote locations. There is clear pick up ion demand. The challenges ahead would be to penetrate deeper, preserve market and in order to have much greater depth, align to global policy of balan ced channel mix and also to ensure that all possible channels are included, and channel partners are well served so that growth opportunities are captured. The two companies have extended their agreement for another five years. This strong relationship between these two players plays a crucial role in increasing the sa les as well to hold the market leader position in the market. Both entering the distribution channels will in fact help the consumer to get the best product in the nearest location in any part of the country. PG.NO 30

B) Bright point It offers the most comprehensive selection of brands and product s in the wireless industry. Handset, Integrated devices, PDAs, etc. They also pr ovide full selection of OEM and aftermarket accessories, Modems and software. It distributes product manufactured by the worlds leading handset manufacturer. Out lets: a) Nokia priority dealers are exclusive show rooms for buying Nokia produc ts. These outlets are directly under the control and supervision of Nokia, which makes them solely accountable to Nokia. NPDs are preferred outlets to buy Nokia products, as they are their genuine dealers of its products. These outlets have the complete portfolio of Nokia products existing in the market. The buying expe rience the consumer enjoys is the better than any other outlet in the city. b) M ulti brand outlets are the outlets, which deal with all the company products in the market. They provide service and space to all the competitors as they sell a ll the products in the market. The major purpose is not to dissatisfy the consum ers entering the outlet and provide them with all the brands asked by him. The a mount of sales made is higher as well the profit earned is higher. The numbers o f these outlets are higher in the city. c) Reliance web world are exclusive reli ance outlets. They deal with reliance products of providing connections and bill ing of the connections. These outlets also sell mobile phones of various brands. The major aspect in these outlets is the stock reaches these outlets directly f rom the company itself. The RDS has no role to play other than providing these p roviding these outlets POS materials to these outlets. d) Reliance web world exp ress are also exclusive reliance outlets but are the franchise outlets of Relian ce. They also deal with reliance products of providing connections and billing o f the connections. These outlets also sell mobile phones of various brands. The major difference between web world and express are the stock that reaches these outlets. The RDS and his sales men provide both stocks as well POS materials to these outlets. e) Tata true values Shoppe are also exclusive Tata outlets but ar e the franchised outlets. They also deal with Tata products providing connection s and billing of the connections. These outlets also sell mobile phones of vario us brands. The RDS and his sales men provide both stocks as well POS materials t o these outlets. PG.NO 31

7. Conclusion Nokia being in a competitive market holds the market as a monopoly with its Unique identity, Marketing Strategy and distribution policy. Through t he Ease-of-use concept, it will add a lot to Customer Value, which further helps Nokia in capturing the market share in India. Our goal is to be a good corporate citizen wherever we operate, as a responsible and contributing member of societ y. NOKIA definitely helps to come true for Middle Mans Dream 8. IMPLEMENTATION AND CONTROL The objective of nokia marketing plan is to serve as reference for the organizations. The following areas will be monitored to gau ge performance: Revenue: monthly and annual Expense : monthly and annual Custome r satisfaction Sales growth by 10 percent annually PG.NO 32

9. CONTINGENCY PLANS Difficulties and risks Slow sales resulting less than proje cted cash flow Unexpected and excessive cost increase compared to the forecasted sales Overly aggressive and debilitating actions by competitors Significant eco nomic downturns Worst case risk include Liquidate asset to cover marketing expen ses and liabilities Determining the product cannot support itself on ongoing bas is PG.NO 33