Mobile Handset Market in India
 India currently has 68 mobile handset players and it is expected to
increase to 200 by 20...
Mobile Handset Market Share
(in 2010-11)
Total Volume: 156 million units
39%
17%
7%
6%
5%
26%
Nokia
Samsung
Micromax
Black...
Founded as a paper mill in Finland by Fredrik
Idestam
NOKIA CORPORATION
Nordic Mobile Telephone (NMT) launched
Telecommuni...
Nokia Verticalization
PEST Analysis
PEST
Economi
c
Political
Technologic
al
Social
1991 – Economic Liberalization Reforms
1994 – National Tele...
PEST Analysis
Social
Rise of Information society
More awareness about mobile phone handset choice and
advancements due t...
Consumer Behaviour
Cultural Factors
Social Factors
Close family relationships
Saving-oriented mentality
Need for communi...
Post Sales Behaviour
 Availability of service centers
 Online applications and applications stores
 Nokia Ovi Suite
 N...
Consumer Survey Analysis
FEATURES
PRICE
Consumer Survey AnalysisConsumer Survey Analysis
What you like in
NOKIA
What you dislike
in NOKIA
Psychographic Segmentation
High InvolvementHigh Involvement
Low InvolvementLow Involvement
RationalRational AspirationalAs...
Marketing Mix
PRODUCTPRODUCT
Classification of products based on:
Use
need
price
LIVE
CONNECT
BUSINESS
LIFESTYLE
Messa...
PRICEPRICE
Marketing Mix
Penetration
Pricing
Price
Skimming
Low end phones
High end phones
Price wars leading to lower
pr...
Marketing Mix
 Nokia has the largest mobile distribution network of
1,30,000 outlets
 Nokia ‘Concept Store’ setup in 9 m...
Marketing Mix
 Below the line marketing
 Brand Ambassador Priyanka Chopra / Shahrukh Khan
 Digital marketing through so...
RURAL MARKET Nokia Life Tools (Jeevan Sadhan): SMS Mechanism, Sachet
Pricing, Daily cost of Rs 1 only
 ‘Showrooms on whe...
Branding & PositioningBranding & Positioning
 Brand value worth 20 billion dollars
 Voted as ‘The most trusted brand in ...
 Umbrella Branding- N series & E series
 Company Name Branding
 Rebranding of Ovi stores to Nokia Services
 Rebranding...
Branding & PositioningBranding & Positioning
Positioning
Points of Parity (POP)
Points of Differentiation
(POD)
Good voic...
Porter’s 5 Forces Framework
Analysis
RIVALRY AMONG COMPETITORS
 CONCENTRATION AND BALANCE: The major players are
Samsung, Micromax, Blackberry, LG, HTC etc
 ...
Competitive Analysis
BARGAINING POWER OF BUYERS
 BUYER INFORMATION: Buyers have comparative
information about the product in terms of price an...
BARGAINING POWER OF SUPPLIERS
 SWITCHING COSTS: A large number of suppliers for non
critical components.
 For critical c...
THREAT OF NEW ENTRANTS-ENTRY BARRIERS
 PROPRIETARY PRODUCT DIFFERENCES: Technology and
product designs are protected by p...
THREAT OF SUBSTITUTES
 PC based applications such as IP TELEPHONY
 Convergence between PDA’S AND MOBILE PHONES.
 Intern...
Strong Corporate Brand & the largest cell phone vendor
User-friendly features
Strong Distribution Network
Best Navigat...
Nokia can expand its market share by introducing a new low cost brand
in competition to companies like Micromax, GFive et...
Future Strategies
 New Brand segment for lower end phones
 Change in the distribution model
Future Strategies
 Increase the commission of mobile retailers
 More emphasis on social media marketing
Future Strategies
 Nokia mobile money project
 Leverage on Nokia-Microsoft Deal: Windows 7?
 MeeGo- answer to Android?
Thank you
Nokia Life Tools : A strategic Innovation to Tap India's Rural & Urban Population
Nokia Life Tools : A strategic Innovation to Tap India's Rural & Urban Population
Nokia Life Tools : A strategic Innovation to Tap India's Rural & Urban Population
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Nokia Life Tools : A strategic Innovation to Tap India's Rural & Urban Population

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  • Indian mobile users bought nearly 700,000 high-end smart phones in the April-June quarter (2009)
  • However the prices are not as low as the smallest competition as consumers do not mind paying a little more for the quality which brand NOKIA offers.
    Penetration :Nokia has been following this strategy for new products that carry new technology so that they can take more market share from their competitors. However the prices are not as low as the smallest competition as consumers do not mind paying a little more for the quality which brand NOKIA offers.
    Skimming: Hereby, the consumer is charged large premium initially. However, price wars are a common feature in mobile communication market which limits Nokia’s skimming strategy.
    Maximum of its revenue comes from N-series or E-series while the low-end phones contribute marginally to its profit.
  • Franchisee are named PRIORITY DEALERS .they need to have criteria like location,footfall etc.
  • Managing networks on behalf of operators: Contract with Airtel where customers get Airtel services on buying a nokia phone and airtel in return pays an amount to nokia thus enabling it to reduce the price of its phones.
    In advertisement with Shahrukh Khan it showed all the models- something like “Hamara nokia”
  • Urban market:12 per 100 persons instead of 19 per persons –penetration
    Nokia Life Tools:getting market prices, crop advisory and weather information, with Maharashtra State Agriculture and Marketing Board providing farmers with information on weather,agriculture,
    Microfinance:tied up with SKS Microfinance, which has 653 branches across 15 States.
    Building Trust in rural India by offering services+scope for more revenue through these services
    Sachet Pricing:Further, the service is moving towards “sachet pricing”, in that the Rs 30 (or Rs 60 for the composite Agriculture service on prices, weather and crop advice) might be debited in weekly or even daily instalments to lighten the burden. At present, it is debited every 10 days
    Entertainment is most popular but have started adopting more than one service.Learning,astrology and GK (show off) getting popular.
  • Nokia Life Tools : A strategic Innovation to Tap India's Rural & Urban Population

    1. 1. Mobile Handset Market in India  India currently has 68 mobile handset players and it is expected to increase to 200 by 2015  Average Selling Price (ASP) of mobiles sold in India is around Rs 2500  Total number of mobile subscribers in India to grow to 1billion by 2015 (Value in US milion $)
    2. 2. Mobile Handset Market Share (in 2010-11) Total Volume: 156 million units 39% 17% 7% 6% 5% 26% Nokia Samsung Micromax Blackberry LG Others NOKIA- Market LeaderNOKIA- Market Leader
    3. 3. Founded as a paper mill in Finland by Fredrik Idestam NOKIA CORPORATION Nordic Mobile Telephone (NMT) launched Telecommunication branch ‘Nokia-Mobira Oy’ formed Mobira Cityman, 1st handheld NMT phone launched Jorma Ollila becomes President and CEO of Nokia 1st GSM handset, Nokia 1011, launched HistoryHistory
    4. 4. Nokia Verticalization
    5. 5. PEST Analysis PEST Economi c Political Technologic al Social 1991 – Economic Liberalization Reforms 1994 – National Telecom 1999 – New telecom Policy 2000-2010 – Government encouraging the FDI and competition. 1991 – Economic Liberalization Reforms 1994 – National Telecom 1999 – New telecom Policy 2000-2010 – Government encouraging the FDI and competition. 1995 – evolution of mobile communication with the origin of Mobile Telephony in India 1992-1999 – Indian economic transformed from socialistic market to capitalistic market 2000-2010 – Rise in income levels of society Growth prospects – Indian telecom industry is the fastest growing telecom industry in the world Indian Mobile Market set to grow to $18 billion by 2012 1995 – evolution of mobile communication with the origin of Mobile Telephony in India 1992-1999 – Indian economic transformed from socialistic market to capitalistic market 2000-2010 – Rise in income levels of society Growth prospects – Indian telecom industry is the fastest growing telecom industry in the world Indian Mobile Market set to grow to $18 billion by 2012 Economi c
    6. 6. PEST Analysis Social Rise of Information society More awareness about mobile phone handset choice and advancements due to increased information availability Change in lifestyle Peer group influence (Reference group influence) Roles and Status Rise of Information society More awareness about mobile phone handset choice and advancements due to increased information availability Change in lifestyle Peer group influence (Reference group influence) Roles and Status PEST Political Technologic al Social Economi c Rise of Information society Global advancements in technology such as MMS, Bluetooth, WAP, GPRS, cameras, social network, 3G etc Asian markets are more technologically advanced than their European counterparts. For example in 2002, just 4% of phones in Europe had cameras, whereas in Asia, it was 90% Rise of Information society Global advancements in technology such as MMS, Bluetooth, WAP, GPRS, cameras, social network, 3G etc Asian markets are more technologically advanced than their European counterparts. For example in 2002, just 4% of phones in Europe had cameras, whereas in Asia, it was 90%
    7. 7. Consumer Behaviour Cultural Factors Social Factors Close family relationships Saving-oriented mentality Need for communication Need for low end mobile phones Personal Factors Status symbol Family & friends Age & occupation •Students •Working Professionals •Housewives
    8. 8. Post Sales Behaviour  Availability of service centers  Online applications and applications stores  Nokia Ovi Suite  Nokia PC Suite  Nokia Beta Labs  Symbian OS  Software upgrades  Resale value
    9. 9. Consumer Survey Analysis FEATURES PRICE
    10. 10. Consumer Survey AnalysisConsumer Survey Analysis What you like in NOKIA What you dislike in NOKIA
    11. 11. Psychographic Segmentation High InvolvementHigh Involvement Low InvolvementLow Involvement RationalRational AspirationalAspirational
    12. 12. Marketing Mix PRODUCTPRODUCT Classification of products based on: Use need price LIVE CONNECT BUSINESS LIFESTYLE Messaging FM  Ringtones Color Screen  Alarm Nokia 1100 • SEGMENT - Low end basic phone •TARGET GROUP - Lower class (first time users) •POSITIONING - Highly reliable & durable phone for working class India •World’s best selling model- sold 250 million phones MP3 Camera Bluetooth GPRS Nokia 5800 • SEGMENT - Mid-range multimedia phones •TARGET GROUP - Young Generation from middle & upper-middle class •POSITIONING - device for the music crazy customers. •In 2008, Navigation Edition was released which positioned it as much more than a music phone with maps, navigation features, car charger and car kit  Push mail services Mobile business solutions  Quick Office  Call conferencing Nokia E72 • SEGMENT - Mid-high end Business-cum-Smart phones •TARGET GROUP - Business professionals aged 25 - 50 with upper middle class incomes •POSITIONING – Business phone to serve needs of working professional + good multimedia support 3G GPS  High MP camera and HD video Nokia N8 • SEGMENT - High End Smart Multimedia phones •TARGET GROUP - Young Generation from the upper middle class •POSITIONING - device packed with must have features like vibrant GUI, music, connectivity, photography, games etc
    13. 13. PRICEPRICE Marketing Mix Penetration Pricing Price Skimming Low end phones High end phones Price wars leading to lower profits Higher demand for advanced features
    14. 14. Marketing Mix  Nokia has the largest mobile distribution network of 1,30,000 outlets  Nokia ‘Concept Store’ setup in 9 major cities across India to enhance customer experience  Nokia Priority Dealers setup in all Tier- 1 and Tier- 2 cities  Multi-brand stores like The Mobile Store, Hot Spot, Big C, etc PLACEPLACE
    15. 15. Marketing Mix  Below the line marketing  Brand Ambassador Priyanka Chopra / Shahrukh Khan  Digital marketing through social networking sites, mobile sites, blogs, etc  Extensive TV campaigns and Advertisements in regional languages  Made For India advertisement for Nokia 1100  The Har Jeb Mein Rang Advertisement Campaign  Main sponsor of Kolkota Knight Riders in IPL  Nokia India Fest 2011-Pan India College festival PROMOTIONPROMOTION
    16. 16. RURAL MARKET Nokia Life Tools (Jeevan Sadhan): SMS Mechanism, Sachet Pricing, Daily cost of Rs 1 only  ‘Showrooms on wheels’ and ‘Rural care on the go’  Tie-up with major micro-finance institutions like SKS Microfinance PROMOTIONPROMOTION Marketing MixMarketing Mix
    17. 17. Branding & PositioningBranding & Positioning  Brand value worth 20 billion dollars  Voted as ‘The most trusted brand in India’ according Brand Equity Survey (Jan,2011)  Brand personality of Nokia- A trusted friend  Nokia's slogan- Connecting people  Media Budget Distribution:20% Print media and 80 % Television media
    18. 18.  Umbrella Branding- N series & E series  Company Name Branding  Rebranding of Ovi stores to Nokia Services  Rebranding effort by changing the classic Nokia Sans font to Nokia Pure font Branding & PositioningBranding & Positioning Changes in Branding Strategies
    19. 19. Branding & PositioningBranding & Positioning Positioning Points of Parity (POP) Points of Differentiation (POD) Good voice clarity  Camera  GPRS  FM & Music Player  Robust build  High battery life  Good brand perception  Ease of use
    20. 20. Porter’s 5 Forces Framework Analysis
    21. 21. RIVALRY AMONG COMPETITORS  CONCENTRATION AND BALANCE: The major players are Samsung, Micromax, Blackberry, LG, HTC etc  INFORMATIONAL COMPLEXITY: Devices are becoming more complex and getting features that are outside the core competencies of traditional manufacturers  CORPORATE STAKES: High stakes for the companies because of huge investments into the business  REDUCING PROFIT MARGINS due to intense competition & price wars
    22. 22. Competitive Analysis
    23. 23. BARGAINING POWER OF BUYERS  BUYER INFORMATION: Buyers have comparative information about the product in terms of price and features.  PRODUCT DIFFERENCES: Low degree of product differentiation and any new feature or technology is quickly imitated.  LOW SWITCHING COSTS due to lower prices
    24. 24. BARGAINING POWER OF SUPPLIERS  SWITCHING COSTS: A large number of suppliers for non critical components.  For critical components suppliers work closely with companies as they involve joint development of specialty inputs and sub-systems.  IMPACT ON DIFFERENTIATION : Companies could switch suppliers for non critical components but are closely tied to them for critical components and sub-systems.  THREAT OF FORWARD INTEGRATION: Suppliers do not pose any credible threat of forward integration even though they are outsourced.
    25. 25. THREAT OF NEW ENTRANTS-ENTRY BARRIERS  PROPRIETARY PRODUCT DIFFERENCES: Technology and product designs are protected by patents. Eg, Apple  BRAND IDENTITY: Powerful brand identity of the existing players developed through advertising and product excellence.  ECONOMIES OF SCALE: High fixed costs means that volume is essential to companies.  CAPITAL REQUIREMENTS: Activities such as R&D and advertising requires large capital commitments.  EXPECTED RETALIATION: Existing competitors have the financial clout to deter new entrants.  ACCESS TO NECESSARY INPUTS: Suppliers work closely with existing companies and therefore critical components may only be available at a premium.
    26. 26. THREAT OF SUBSTITUTES  PC based applications such as IP TELEPHONY  Convergence between PDA’S AND MOBILE PHONES.  Internet revolution
    27. 27. Strong Corporate Brand & the largest cell phone vendor User-friendly features Strong Distribution Network Best Navigation (Nokia OVI Maps) High resale value of hand-sets compared to other handsets Slow to adopt new ways of thinking (for example, launch of dual sim mobiles) High prices compared to other domestic companies Symbian OS lost out the race with Google’s Android and Apple iOS Too many products & very little product distinction No of features offered in the lower end Nokia models are very little and stagnant STRENGHTSSTRENGHTS WEAKNESSWEAKNESS SWOT Analysis
    28. 28. Nokia can expand its market share by introducing a new low cost brand in competition to companies like Micromax, GFive etc Increase their presence in CDMA market They can target the smart phone in the low to medium segment with MS Windows- 7 platform OPPORTUNITIESOPPORTUNITIES Threats from emerging domestic companies like Micromax, Karbonn, Maxx, Lava, Spice etc who offer similar features at lower prices In the higher segment it is losing market share to players like Apple, HTC, Blackberry, Samsung, etc THREATSTHREATS SWOT Analysis
    29. 29. Future Strategies  New Brand segment for lower end phones  Change in the distribution model
    30. 30. Future Strategies  Increase the commission of mobile retailers  More emphasis on social media marketing
    31. 31. Future Strategies  Nokia mobile money project  Leverage on Nokia-Microsoft Deal: Windows 7?  MeeGo- answer to Android?
    32. 32. Thank you

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