You are on page 1of 8

Introduction

The company I have chosen to analyze in my report is the mobile phone giant Nokia. This project tells us briefly what Nokia actually is, it’s company structure and overall view on the size and sales of the company & also the Various Market segmentation Strategies followed by them. Since January 2004, Nokia Group has consisted of four different business groups: Mobile Phones, Multimedia, Enterprise Solutions and Networks. “In addition, there are two horizontal groups that support the mobile device business groups: Customer and Market Operations and Technology Platforms.” In the year 2004 Nokia’s net sales for mobile phones was 18507 million euro, which went down 12% from 2003. Nokia’s market areas were Europe/Africa/Middle East (55% of net sales), Asian Pacific and China (25%) and Americas (20%). Nokia’s market share in Europe was 45.8% in 2003, in 2004 it was 34.8% and in the third quarter of 2005 it was 36%. The average number of personnel for 2004 was 53511. At the end of 2004, Nokia employed 55505 people worldwide. In 2004, Nokia′s personnel increased by a total of 4146 employees. Nokia’s turnover for the third quarter of 2005 was 8403 million euro from which mobile phones brought in 62%, multimedia 17%, Enterprise solutions 2% and Networks 9%. “The year 2004 was demanding for Nokia. In response, the company set five top priorities in the areas of customer relations, product offering, R&D efficiency, demand-supply management and the company’s ability to offer end-toend solutions. Nokia is making good progress in these areas, and is now better positioned to meet future challenges.

Objective of the study
The objectives of the report are:1) To know about marketing of Nokia. 2) To know about market segmentation. 3) To know the market segmentation used by Nokia.

In 2004. Nokia also began developing mobile phones for the NMT network. at least. Nokia was established in 1865 as a wood-pulp mill by Fredrik Idestam on the banks of Nokia rapids. such as televisions and personal computers. diminished Nokia's public image in Finland. Nokia offered a series of personal computers called MikroMikko. and produced a number of court cases along with. Nokia provides mobile communication equipment for every major market and protocol. This.About the Company Nokia. however. mobile phone infrastructure. this Finnish telecommunications company is best known today for its leading range of mobile phones. The name Nokia originated from the river which flowed through the town of the same name (Nokia). Recently. Ltd. unfortunately. ISDN. With headquarters in Keilaniemi of Espoo. divesting itself of other items. and other telecommunications areas. wireless LAN and a line of satellite receivers. a digital switch for telephone exchanges. which was later merged with Fujitsu-Siemens AG. including GSM. professional mobile radio. However. Shortly after World War I Finnish Rubber Works acquired Nokia wood mills as well as Finnish Cable Works. Nokia joined other mobile phone manufacturers to embrace Taiwanese Original Device Manufacturers. one television show critical of Nokia. Nokia signed a contract with BenQ. (ICL). which are scheduled to retail by the end of 2005. Nokia resorted to similar streamlining practices with layoffs and organizational restructuring. In the 1970s Nokia became more involved in the telecommunications industry by developing the Nokia DX 200. broadband access. .Connecting People! Nokia Corporation (NYSE: NOK) is one of the world's largest telecommunications equipment manufacturers. although on a significantly smaller scale. a producer of telephone and telegraph cables. voice over IP. to develop three high-end mobile phones. Finland. the company ran afoul of serious financial problems in the 1990s and streamlined its manufacturing of mobile phones. In the 1980s. All three companies were merged as Nokia Corporation in 1967. CDMA. Finnish Rubber Works established its factories in the beginning of 20th century nearby and began using Nokia as its brand. a Taiwanese Original Device Manufacturer. Nokia also produces mobile phone infrastructure and other telecommunications equipment for applications such as traditional voice telephony. and WCDMA. these operations were sold to International Computers.

the first segment to adopt an emerging technology is dubbed as 'the early adopters'. Both service providers and handset manufacturers have been complementing each other well with each fuelling the demand for the other. has divided the market into four segments: • Hi-fliers: The biggest segment as far as Nokia is concerned consists of 'Hi-Fliers'. this figure is expected to increase at a very rapid rate. arguably the biggest player in the world. corporate executives who use a mobile phone to increase productivity at work. Industry observers attribute the success of handset manufacturers to shrewd market segmentation. Ericsson and Motorola. Today's youth and affluent housewives constitute two major chunks of the segment. the segment looks for data transmission and other business-related features. Segmentation of Nokia Connecting people! Nokia. have studied the market and segmented it precisely. Divide and rule seems to be working! According to a report published in May 2001. With aggressive marketing by service providers. This was the segment at which WAP-enabled models were aimed. Aged from 25 to 45. • • . 71. For Nokia. the all-India cellular subscriber figures stand at 38. However. these expectations are well on the way to being met. the company sponsors the handset. The big three of the mobile handset market . Trendsetters: In any technology adoption cycle. handset manufacturers are using precise segmentation to carve up their share.514. In most cases. these early adopters are 'Trendsetters' who are most receptive to advanced models. socially-conscious segment that uses a mobile to stay in touch. If current decibel levels in the market are anything to go by. amidst this entire melee one cannot ignore the efforts of the handset manufacturers. Social contact: The third segment for Nokia is the upwardly mobile. Not to be left behind.Market Segmentation for Nokia The decibel levels in the cellular market are increasing with service providers stepping on the gas.Nokia. hence price is not a major consideration.

rural.• Assured: The fourth and last segment as defined by Nokia comprises of CEOs. and even far villages Behavioral • • Benefits – Quality Loyalty status – Strong  The Segmentation of Nokia conducted on the basis of Price The price ranges are as follows: • • • • 1000 – 5000 5000 – 9000 9000 – 15000 15000 – 21000 . The fact that the segment cannot do without a mobile phone makes it the 'assured' segment. Female Income – All income groups Occupation – Every sector Religion – Irrespective of religion Psychographic • • Social class – All class of people Lifestyles – Urban. industrialists and other high "net worth" individuals. highprofile celebrities. Geographic • • • World region – Asia Country – India Cities – Reach out maximum places Demographic • • • • • Age – All age group Gender – Male.

above  Range 1: (1000 – 5000) Workers and labourers • • • • • • • • • • nokia 1650 nokia 1200 nokia 1208 nokia 2610 nokia 2626 nokia 2310 nokia 1112 nokia 1600 nokia 1110 nokia 3110  Range2: (5000 – 9000) middle managers • • • • • • Nokia 2630 Nokia 6080 Nokia 6070 Nokia 6020 Nokia 7360 Nokia 3110 Classic  Range 3: (9000 – 15000) university students • Nokia 5200 .30000 30000 .• • 21000 .

• • • • • • • • • • • • • • Nokia 6151 Nokia 7610 Nokia 6111 Nokia E50 Nokia 6230i Nokia 6131 Nokia 5300 Nokia 7500 Prism Nokia 6233 Nokia 6300 Nokia N72 Nokia E62 Nokia 7373 Nokia 6120 Classic  Range 4: (15000 – 21000) music lovers/ high memory • • • • • • • • Nokia N70 Music Edition Nokia 5310 Nokia 6288 Nokia 3250 (1GB) Nokia 7390 Nokia 5700 Nokia E51i Nokia N73 .

• Nokia 5610 Range 5: (21000 – 30000) communicator/ high and young business people • • • • • • • • • • Nokia E65 Nokia N73 Music Edition Nokia E61 Nokia 9300i Nokia E70 Nokia 6500 slider Nokia 7900 Prism Nokia E61i Nokia N76 Nokia N81  Range 6: (30000 .above) educated politician • • • • • • • Nokia N95 Nokia N93i Nokia 8600 Nokia N82 Nokia N95i Nokia E90 Nokia 8800 .

Many people around the globe are purchasing Nokia phones.1 leader in the world of mobile phones.1 leader in it. efficient & advanced techniques are used to increase the sales of product. New models & their strategies are being well utilized to enhance the product. Nokia as such has used all modern & good techniques to tackle problems of customers in market. good & efficient to operate. Customer care & feedback is also given more importance.Conclusion From the above project I have come to this conclusion that Nokia has implemented various segmentation strategies for its products on a large scale & becoming no. Nokia have used better & efficient market segmentation strategies to market its products according to various segments of customers in the market. I would like to conclude that Nokia had been launching various new products & strategies throughout the year but still it is the no. As per my opinion Nokia had introduced various schemes to attract people & gain more goodwill into market. The main segmentation is done on the basis of price. . Better. Also Nokia is largest manufacturer of mobile phones in India & also the no. Various segmentation strategies are being enrolled into the market to increase the sales of the products.1 brand leader in mobile phones. Nokia segments its market according to various variables. as they are very cheap.