Distribution Structure partnership with HCLI own distribution efforts High variety Wide range
Nokia Concept Stores experience the product before purchasing it entire range of Nokia devices in all categories including latest range of mobile enhancements and exclusive Nokia merchandise apart from handsets 9 Concept Stores in India Benefits: strengthens brand, save distributor costs
Nokia Priority Dealers all franchised outlets certain number of footfalls, the location of the store should be prime real estate in that region, and certain other standards. Nokia provides support to these outlets in the form of help in visual merchandising, furniture
Multi Brand Dealers Recognized for their service and price discounts Hotspot Univercell The Mobile store RPG Cellucom
Channel Partners Nokia provide assistance in selection of channel partners like redistributors, Dealers, Franchisees, etc. Besides this They provide monetary assistance in Store development for Nokia Priority dealers, help in and training of the sales force of partners at every level.
Channel Partners HCLI 30,000 channel partners uniform price takes order from 4 redistributers appointed in Delhi
Channel Partners Re-Distribution stockiest supplier (RDSS) There are 6 RDSS in Delhi NCR region with territories divided as North, South, East and West Delhi, Noida and Gurgaon recruiting sales force, training and developing
Channel Partners Dealers explained the features of every new launch mobiles, different schemes and offers by Nokia’s representatives delivery is made within a few hours
Margins at each level Not declared 18% 2% 8% 10%
Infrastructure required by distributor Service provider for the repair of Nokia Mobile Phones in India Pan India service network in 21 L3 locations equipped with state of art equipments Mobile care vans across the country to increase remote coverage Nokia repair facility 100+ repair branches with 75K handsets/ month repair capacity L4 repair capability mother warehouse located in Gurgaon.
Support provided by the company to the distributor Nokia account Team Point of Sales(POS) system Schemes Retail element Sales Collaterals Training the dealers Dealer encouragement schemes
Credit/ Payment terms RDSS are allowed a credit period of 7 days gives dealers also 7 days credit period
Major Problems Faced by the distributors Low Credit period Low margins Damaged piece policy
Points of conflict Nokia-HCLI have marked the territories very effectively Payments, delivery of goods ordered and services have also been impeccable
Issues identified Threat from smart phone competitors Samsung paying higher margins Depending too much on pull strategy Poor post sales service
Recommendations Review the margins offered to distributors, dealers and RDSS periodically Review the credit period allowed to dealers and RDSS periodically Have a multiple complaint channels More aggressive marketing strategy Better purchase centric schemes to the dealers Introduce stylish mobiles in range of Rs.3000-5000 Ceratin parts like sector -3,4, Harola market in Noida , Govindpuram in Ghaziabad , Certain areas on GT road should be improved