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52570415 crm-final-report on nokia
52570415 crm-final-report on nokia
52570415 crm-final-report on nokia
52570415 crm-final-report on nokia
52570415 crm-final-report on nokia
52570415 crm-final-report on nokia
52570415 crm-final-report on nokia
52570415 crm-final-report on nokia
52570415 crm-final-report on nokia
52570415 crm-final-report on nokia
52570415 crm-final-report on nokia
52570415 crm-final-report on nokia
52570415 crm-final-report on nokia
52570415 crm-final-report on nokia
52570415 crm-final-report on nokia
52570415 crm-final-report on nokia
52570415 crm-final-report on nokia
52570415 crm-final-report on nokia
52570415 crm-final-report on nokia
52570415 crm-final-report on nokia
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52570415 crm-final-report on nokia

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  • 1. CRMSTRATEGIES OFNOKIA A Brief Report Towards the partial fulfillment of PGP Program at IILM, GurgaonABDUL WADOOD (PGS 20090063) 4/8/2011 Page | 1
  • 2. Contents Page | 2
  • 3. Executive Summary.....................................................................................................31. INTRODUCTION.....................................................................................................4 1.1 About Nokia........................................................................................................4 1.2 Understanding its Customers.............................................................................5 1.3 Network Operators.............................................................................................6 1.4 Nokia’s way towards CRM..................................................................................6 1.5 Product Development.........................................................................................6 1.6 Distribution..........................................................................................................6 1.7 Ease of Servicing................................................................................................7 1.8 Ease of Product knowledge................................................................................7 1.9 Stations of Experience........................................................................................7 1.10 Nokia Sales Interface.......................................................................................7 1.11 Computer aided CRM.......................................................................................72. METHODOLOGY.....................................................................................................8 2.1 Research Design................................................................................................8 2.2 Data Collection Methods....................................................................................8 2.3 Sampling.............................................................................................................8 2.4 Field Work...........................................................................................................8 2.5 Data Analysis......................................................................................................83. Conclusions and Recommendations.....................................................................14 3.1 Conclusions......................................................................................................14 3.2 Recommendations............................................................................................17 3.3 Limitations.........................................................................................................173.3 LimitationsFigure 1........................................................................................................................5 Page | 3
  • 4. Error: Reference source not found Executive SummaryThe primary objective of the study will be to analyse the CRM strategies of NokiaIndia and to see how Nokia India has been able to maintain a positive image in theminds of the consumer by studying the perception of its customers. Nokia hasplayed a pioneering role in the growth of cellular technology in India, starting withthe first-ever cellular call a decade ago, made on a Nokia mobile phone over aNokia-deployed network. Nokia aims to provide products and services which meetthe needs of trade customers and consumers. It researches the views of bothgroups to understand where it is succeeding and how it can do better. Its CRMstrategies are focused around Product development through Customer-Centricity(in product designing), Distribution- Company owned and third party, Ease ofServicing, Ease of Product Knowledge. The Customer Data Master or CuDM isNokia’s answer to a software based customer information management system.It not only aids in managing B2B clients but also B2C customers.This study aims to understand the customer centric practices of Nokia and ensuremaximum customer satisfaction. A market survey was conducted using thequestionnaire method and responses from the chosen sample mobile customerswere collected and analysed. The analysis helped us understand the weaknessesand strengths of Nokia. The study revealed data about how customers believe Nokialags far behind in terms of innovation, despite the fact that Nokia prides itself onInnovation. This has led customers to shed Nokia to its buy its competitors’products. Distribution is considered by customers as one of the biggest strengths ofNokia. Perhaps the most surprising finding of the market study was that therespondents felt Nokia mobiles were overpriced. The after-sales service of Nokiawas regarded as excellent by the respondents. User-friendly interfaces of mobilesand brand name were the top most factors for buying a Nokia Mobile. Although thestudy has its own limitations, the study has helped make a set of recommendationsfor Nokia India to sustain its market leadership position in India. Page | 4
  • 5. 1. INTRODUCTION1.1 About NokiaVision“A world where everyone is connected”Nokia IndiaNokia has played a pioneering role in the growth of cellular technology in India,starting with the first-ever cellular call a decade ago, made on a Nokia mobilephone over a Nokia-deployed network. Nokia started its India operations in 1995,and presently operates out of offices in New Delhi, Mumbai, Kolkata, Jaipur,Lucknow, Chennai, Bangalore, Pune and Ahmedabad. The Indian operationscomprise of the handsets business; R&D facilities in Bangalore and Mumbai; amanufacturing plant in Chennai and a Design Studio in Bangalore. Over the years,the company has grown manifold with its manpower strength increasing from 450people in the year 2004 to over 15000 employees in March 2008 (including NokiaSiemens Networks). Today, India holds the distinction of being the second largestmarket for the company globally.Manufacturing in IndiaNokia has set up its mobile device manufacturing facility in Chennai, India to meetthe burgeoning demand for mobile devices in the country. The manufacturing facilityis operational with an investment of USD 210 million and currently employs 8000people. Nokia has recently announced fresh investments to the tune of US $ 75million towards its manufacturing plant in Sriperumbudur, Chennai for the year 2008.The Nokia way Page | 5
  • 6. Figure 1Nokia’s Customer PoliciesNokia aims to provide innovative, high-quality products and services which helppeople connect. It intends to meet the needs of all users, including people withphysical, sensory or cognitive limitations. Product and service development takesaccount of social and environmental issues, including privacy concerns associatedwith the convergence of mobile and internet technology. It sells the vast majority ofproducts through distributors, network operators and Nokia branded stores whichare owned and operated by its retail partners. Some sales are made direct to usersthrough Nokia Online. Nokia is also creating a chain of flagship stores in Indiaspremier shopping locations which offer Nokia products and services in afashionable, interactive environment and with a highly-trained staff.1.2 Understanding its CustomersNokia aims to provide products and services which meet the needs of tradecustomers and consumers. It researches the views of both groups to understandwhere it is succeeding and how it can do better. Primarily the Nokia customers canbe segregated as under.Trade customersNokia researches trade customers’ views on it through the Listening to TradeCustomers survey. An independent research company carries out the survey eachyear. It reaches executive and operational contacts in a sample of customers thataccounts for around 80% of Nokia’s revenue each year. Nokia Account Managersdiscuss initial survey results with their teams and customers, and take actionrelevant to individual accounts. Customers are informed of the key local actionsrelevant to their account and receive a response letter highlighting the overall keyfindings and improvements planned by Nokia. Page | 6
  • 7. Individual ConsumersNokia Care provides support services to consumers through online, email and callcentre services, supported by a network of authorized service centres. The supportincludes basic product information, guides and demonstrations, discussion boards,software updates, advice on specific issues, and warranty repairs. It also helpsconsumers to find out where to recycle their old products. It aims at getting a widepicture of consumer experience by using different consumer feedback channels, andrespond with targeted improvement actions. The main feedback channels includeconsumer satisfaction surveys, feedback through independent market researchcompanies and Nokia Care contacts.1.3 Network OperatorsNokia primarily deals with its Service Operator Customers through its Nokia-Siemens Networks arm. Nokia enquires and assesses requests aboutperformance from its network operator customers. It responds to these requeststhrough its customer account management interface.1.4 Nokia’s way towards CRMNokia, owing to its vast portfolio of products and services and multiple channels hascorresponding ways of answering to a successful CRM. Its strategies include: ➢ Product development through Customer-Centricity (in product designing). ➢ Distribution- Company owned and third party. ➢ Ease of Servicing. ➢ Ease of Product Knowledge.1.5 Product DevelopmentA Nokia product is not only a benchmark in its class of products but also ensuresthat when a customer goes in for a repeat purchase it again opts for a Nokia. Someof the key features of a Nokia product (in this case its mobile handsets) include: ➢ Ease of product usage. ➢ Ease of product trial. ➢ Impeccable product quality and build. ➢ Ease of software up-gradation and third party software usage. Page | 7
  • 8. ➢ Locally developed product range (ex. Nokia 1100 for the Indian Tier 2 and 3 cities). ➢ Multiple language options. ➢ Convergence (internet, PDA and multimedia bundled into a handheld device). ➢ Right product at the right price.1.6 DistributionTraditionally, distribution is not considered to be a part of CRM but Nokia believesthat by ensuring a deep penetration in the market it can cater to the customer bestand ensure retention as well. This would not only ensure a better reach but alsoensure an arm’s length in case any customer faces any problems pertaining to theproduct. It helps to develop better client relationships. Nokia primarily deals in withcompany owned and third party stores.1.7 Ease of ServicingThe product is as good as it is easy to service, this holds true for Nokia’s products.In the rare occasion that the products need to be serviced (other than theconsumable parts like the battery) the product can be easily repaired at any of thelocal Nokia or third party stores.1.8 Ease of Product knowledgeNokia thoroughly believes in the power of knowledge. Thus it provides easy accessto all product relevant information through its website, stores and company salesexecutive. Through its user reviews and forums on its website Nokia allowscustomers to comment and review the products.1.9 Stations of ExperienceThe stations of experience vary with the channel through which the customer comesin contact with Nokia. The channels are, namely: ➢ Online Store ➢ Nokia Company Stores ➢ Nokia Third Party Stores ➢ Company sales interface (in case of B2B sales)1.10 Nokia Sales InterfaceThe Nokia Sales interface primarily deals with institutional clients and is majorlyassociated with the Nokia-Siemens Networks. As it is completely a B2B format the Page | 8
  • 9. experiences are more formal and process governed rather than on a one on oneclient basis. Some of Nokia’s clients in the Telecom Service Provider domain inIndia include BSNL, Airtel, Vodafone, Aircel and Idea.1.11 Computer aided CRMThe Customer Data Master or CuDM is Nokia’s answer to a software basedcustomer information management system. It not only aids in managing B2Bclients but also B2C customers. Customer Create Customer visit, such as to Web site or facility; account created Read Contextualized views based on credentials of viewer Update Address, discounts, phone number, preferences, credit accounts Destroy Death, bankruptcy, liquidation, do-not-call. Search CRM system, call-centre system, contact-management system Table-1 2. METHODOLOGY2.1 Research DesignFor the purpose of this market study, a questionnaire has been prepared. Weidentified potential customers who can be approached and our sample size was 153.The answers to these questionnaires from the respondents are the primary inputs tothis market research. We collected all the data from the field directly. The sample forthe survey was primarily students and working professionals in the age group of 15to 40.2.2 Data Collection MethodsSurvey research was used to collect data from the respondents. The primary modeof obtaining the responses was through direct interview and email. For this projectboth primary and secondary data were the sources of information. Primary data wascollected from the questionnaire. Secondary sources were collected from the variousjournals, websites and research papers.2.3 SamplingSampling Technique: The initial draft of the questionnaire was prepared afterdiscussions between the team members. A pilot study was done for thisquestionnaire and subsequently changes were made to the questionnaire based onthe feedback from the pilot study. Changes were done in the rating scales to make iteasier for respondents to answer. The sampling technique followed was ‘convenientsampling’. Page | 9
  • 10. Sampling Unit: The respondents who were asked to fill out questionnaire are thesampling units. The sampling units for this exercise were students and workingprofessionals.Sampling Area: The area of the research for sample companies was in and aroundKatwaria Sarai, Sarojini Nagar, Lajpat Nagar, Malviya Nagar.Sample Size: The sample size was around 153. All of them were users of mobilephones.2.4 Field WorkThe survey was done in public places like restaurants, outside offices and nearcolleges.2.5 Data AnalysisWe took a sample size of 153 people out of which 101 people used Nokia phones.So we used this data for our analysis. QuestionnaireQ.1 Do you think Nokia handsets are equipped with the latest features? a)Always b) many times c) sometimes d) NeverAnalysis: Choice Responses Always 14 Many times 41 Table 1: Responses to: Are Nokia Some times 43 handsets equipped with latest features? Never 3 Page | 10
  • 11. Chart 1: Responses to availability of Nokia handsets in the market Closeto 83% of the total Nokia handset owners said that Nokia is equipped is equippedwith new features, which indicates that Nokia still lacks behind in innovationcompared to its competitors.Q2. Are Nokia mobiles readily available in the markets? a) YES b) NOResponses: Choice Responses Yes 98 No 3 Table 2: Responses to availability of Nokia handsets in the marketThis question was primarily asked to see whether Nokia has ample availability of itshandsets, which is a direct consequence of the location of the retailers throughwhich Nokia sells its products. Almost all the respondents felt that Nokia is readilyavailable in the market showing the efficiency with which it places its products in themarket.Q3. Do you think Nokia mobiles are user friendly? Rate it on a scale from 1 to 5 (1being the lowest and 5 being the highest). Page | 11
  • 12. a) 1 b)2 Responses Choice c)3 d)4 e)5 1 0Responses: 2 7 3 15 4 14 5 65 Ta ble 3: Us er frie ndl ine ss of No kia Mo bil e Ph on es Chart 2: User friendliness of Nokia mobile phones Closeto 64%of the total Nokia handset users gave it a ranking of 5(highest) on its userfriendliness. This re-confirms the fact that Nokia handset’s user interface remainsthe key differentiating factor which is highly rated by its users.Q.4 How do you rate Nokia’s after sales service compared to other companies?(Rate it on a scale from 1 to 5 (1 being the lowest).a)1 b) 2 c)3 d) 4 e) 5Responses: Page | 12
  • 13. Choice Responses 1 3 2 5 3 13 4 21 5 59 Table 4: Rating of Nokia’s after sales service Chart 3: Rating of Nokia’s after sales serviceJust like the responses received for the previous question, close to 60% of the totalNokia handset users reaffirmed the fact Nokia provides superior after sales serviceand continues to cater to after sales problems effectively and efficiently.Q5. Why did you prefer Nokia over other phones?a) Nokia brand nameb) Better featuresc) User friendlyd) All the abovee) Any other reasonResponses: Choice Responses Nokia brand name 31 Page | 13
  • 14. Better features 11 User friendly 34 All the above 22 Any other reason 3 Table 5: Reasons for choosing nokia over other companies Chart 4: Reasons for choosing nokia over other companiesIn this question the Nokia handset users gave the highest rating to the brand nameand the user friendliness (Close to 64%). However a major shortcoming of Nokiawas exposed in this question which was “better features”.Q6. Are Nokia phone available with a reasonable price?a) YES b) NOResponses: Choice Responses Yes 35 No 66 Ta ble 6: ReThis question sp was asked to check the perception of the Nokia handset usersvis-a-vis its on pricing policy. It was found that close to 2/3rd of its customersfelt that Nokia se phones were not priced reasonably. s to ch ecQ7.Except k Nokia what are your other preferred mobile phone brands?Sony b) LG wh c) Motorola d) Micromax e)BlackBerry f)Others ethResponses: er the Choice Responses pri ce s are Page | 14 rea so na ble or not
  • 15. Sony 27 LG 21 Motorola 9 Micromax 19 Blackberry 17 Others 8 Table 7: Other preferred mobile phone brands Chart 5: Other preferred mobile phone brandsThis question was asked to see what other alternatives the Nokia handset users hadin their mind, it was found that a majority of the users(~48%) preferred Sony or LGmobile handsets over others available in the market. New entrants like Micromaxmade us to present this as an option in our questionnaire and as expected close19% of the total Nokia handset users said that they would have preferred it as analternative. Perhaps with time as these new entrants build their brand equity theywould erode into Nokia’s market share.Q8. If a mobile company offers same features, quality and price as Nokia, will u stillgo with Nokia?a) Yesb) NoResponses: Choice Responses Yes 45 No 56 Table8: Checking whether current users would shift to another brandThis is another question to which we received mixed received a mixed response, butwe can say that with the entry of new players in this market the number of Nokia Page | 15
  • 16. handset users saying NO to this question would increase, as more number ofalternatives would be available with them.Of the remaining 52 respondents who owned a mobile handset of some othercompany, the following questions were asked from them:Q9. Did you own a Nokia mobile handset before? a) Yes b) NoResponses: Choice Responses Yes 16 No 36 Table 9: Checking how many were previous Nokia mobile phone users (but not current)A majority of the total respondents had not owned a Nokia handset before, and inorder to find the reason behind changing/not owning a Nokia handset the nextquestion was asked.Q10. What was the primary reason behind changing/not owning a Nokia handset? a) Availability of other mobile phones with better features b) Nokia handsets were too costly c) Brand loyalist to some other brand d) Bad service Encounter(only for those who had owned a Nokia handset in the past) e) Any other reasonResponses:Choice ResponseAvailability of other mobile phones with better features 11Nokia handsets were too costly 18Brand loyalist to some other brand 13 Page | 16
  • 17. Bad service Encounter 2 (only for those who had owned a Nokia handset in the past) Any other reason 8 Table 10: Reasons behind shifting to another brandIt was found that a majority of the respondents thought that roughly 1/3rd of therespondents thought that the Nokia handsets were too costly. While only 2 out of the16 who had owned a Nokia handset before had experienced a bas serviceencounter. Other reasons could be certain offers available with a particular handsetor peer pressure etc.3. CONCLUSIONS AND RECOMMENDATIONS3.1 Conclusionsa. Responses from the sample indicate Nokia lacks far behind its competitors interms of innovation and new features.b. Respondents found the Nokia phones are readily available. Hence distribution isone the strengths of Nokia Indiac. Majority of the responses indicate that Nokia has done pretty well in the facet ofuser friendliness in its mobiles.d. More than half of the respondents felt Nokia provides an excellent after salesservice.e. User-friendly interfaces of mobiles and brand name were the top most factors forbuying a Nokia Mobile.f. Surprisingly, close to 2/3rd of the respondents felt that Nokia Mobiles wereoverpriced.g. Sony and LG were the preferred alternatives when Nokia mobile is unavailable.New entrant like Micromax was not far behind.h. High price and brand loyalty to competitors’ brands were the main reasons ofrespondents for not owning Nokia Mobiles. Page | 17
  • 18. Page | 18
  • 19. 3.2 RecommendationsDuring the course of research on this project (Preference of Nokia mobiles overother cell-phones) we have come to know a lot of interesting facts and Informationregarding Nokia. Nokia is undoubtedly the market leader in the cell-phone market.Nokia still dominates the world cell-phone market share.However, Nokia is facing certain challenges that have affected its sales at present.Nokia has predicted low sales for 2009 and that is due to the global economicslowdown which has resulted in sharp pull back in global consumer spending. Thesales of Nokia have also been affected quite badly by the recent launch of someduty-free cheap cell phones. Moreover, there are some areas where its competitorsare giving a run for their money like product designing, modifications etc. Throughour collaborative research, we have found out some areas where Nokia shouldemphasise more so that it continues to be the market leader and have an edge overits competitors. These include further focus on –1. Product competitiveness: The products of Nokia should be superior or at least atpar with the competitors’ regarding technology, designing and features etc.2. Customer satisfaction: Nokia should come up with more value added productsand effective after-sales services i.e., service centers should bewell-equipped to handle customer concerns and there should be proper co-ordination between them. It should focus on customization to gain greater customersatisfaction.3. Research and Development: In order to retain the position of a market leaderNokia should incorporate the latest technological innovations into their handsets andshould put stress on further development.4. End to End capability: Stress should be given on end to end capability byintegrating mobile devices applications and infrastructure.5. Efficient, manufacturing, logistics and high quality products and services shouldbe maintained6. Nokia should focus on bringing out new features and should not fall behind onfast-paced innovation.7. Nokia should launch more variety of models targeting the price-sensitivecustomers as customers want more value for money.3.3 Limitations1. During interview I found out that the customers have a blind faith regarding NokiaIndia which we could not explain in quantitative terms. Page | 19
  • 20. 2. The respondents were biased to some extent with the respective brands3. The research was limited to only 153 respondents whereas in reality the universeis too big. Hence statistical data might change if we further increase the sample size.4. The accuracy of the some data is indeterminate as few respondents wereignorant and hesitant towards their response.5. Time and money was another constraint in my project completion. Page | 20

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