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A nokia project report_2

  1. 1. AProject Study ReportOn“A study on consumer behavior for preference of brandsin cellular phones with reference to Nokia”Nokia India Pvt. Ltd.Submitted in partial fulfillment for theAward of degree ofMaster of Business AdministrationSubmitted By: - SubmittedTo:-Bharati Nama Nimisha SoniMBA IVth Sem. Lecturer,(MBA department)2009-2011GOVERNMENT ENGINEERING COLLEGE JHALAWARGOVERNMENT ENGINEERING COLLEGE JHALAWARPage 1
  2. 2. Project Report EvaluationIt is to certify that Ms Bharati Nama of MBA IV Sem, her title for the project report was “Astudy on consumer behavior for preference of brands in cellular phones with referenceto Nokia”I/ We have evaluated the project report and her Project work is satisfactory.Signature of External examiner Signature of Internal examinerDate:Page 2
  3. 3. PREFACEManagement of Modern business requires an opportunity of multidisciplinary conceptand in depth knowledge of specific analytical tools, geared to the solution the real lifeproblems. No doubt every real situation is unique but a set of theoretical tools of knowledge,itself based on empirical foundation can help in developing the mechanism for handling suchsituation. So the MBA curriculum has been desired to provide to the future manager samplepractical exposures to the business world.Project study report is essential for the fulfilment of MBA curriculum. It provides anopportunity to the student to understand the industry with special emphasis on thedevelopment of skills in analysing interpreting practical problems through application ofmanagement.The essential aim of management should be to assist management in decision makingand improving the efficiency of the organisation.Page 3
  4. 4. AcknowledgementI express my sincere thanks to my project guide, Miss. Nimisha Soni Designation Lecturer,MBA Department, Government Engineering Collage Jhalawar for guiding me right from theinception till the successful completion of the project. I sincerely acknowledge her for extendingtheir valuable guidance, support for literature, critical reviews of project and the report and aboveall the moral support he/she/they had provided to me with all stages of this project.I would also like to thank the supporting staff MBA Department, Government EngineeringCollage Jhalawar, for their help and cooperation throughout our project.(BHARATI NAMA)Page 4
  5. 5. Executive SummaryMobile phone market in India is going through major changes. Key players are losing marketshare while new and young companies, mostly from Asian countries, are coming to the market.At the same time the market is slowly expanding when people are buying more phones thanever. The whole process of buying mobile phones has changed in the last few years. Peopleno longer carry the same phone year in year out, change is the fast technological developmentof the phones. But also consumer’s but they change their phone very year, some even twice ayear. One reason for these attitudes towards mobile phones has changed. Mobile phones areno longer seen as expensive, hi-tech products, but they have become accessories likejewellery or a piece of clothing. “Nokia is still the largest mobile phone company in the world,but its long-term dominance is now challenged more than ever. Observers have begun askingwhether the cutting edge that has turned Nokia into the No 1 vendor still exists, as Nokia’smarket share and revenues have been on the decline. Falling average sales prices (ASPs) andmarket share have had an impact and forced Nokia to further re-think its strategy towardsdeveloped and emerging markets.” This report gives an overview on what is happening on themobile phone market today and analyses Nokia’s market position in the growing market. Thisreport includes a brief introduction to Nokia followed by an environmental analysis, SWOTanalysis of the company. Half way through the report you can find information about consumerbehavior and segmentation. At the end, this report introduces the main strategies andobjectives of Nokia for the competitive market. Finally we try to make a conclusion of the topicsdiscussed and attempt to give some possible answers to the question at hand.Page 5
  6. 6. CONTENTS:CHAPTERNO.TOPIC PAGE NO.1 Introduction to the industry 62 Introduction to the organization 193 Research methodology Research methodology Meaning Type of Research use in project534 Topic of the project consumer behavior• Title of the Study• Duration of the project:-• Objective of Study:• Scope of Study• Limitations555 Analysis and interpretation 596 SWOT analysis 707 Conclusion 738 Recommendation and suggestion 759 Bibliography 77Questionnaire 78CHAPTER -1INTRODUCTION TO THE INDUSTRYPage 6
  7. 7.  Introduction of Cellular/Mobile phone History of mobile phones Features of mobile Market of mobile Mobile as a Media channel Restriction on usage Need For The StudyINTRODUCTION OF CELLULER/MOBILE PHONE:-Page 7
  8. 8. A mobile telephone or cellular telephone is a long-range, portable electronic device used formobile communication. In addition to the standard voice function of a telephone, current mobilephones can support many additional services such as SMS for text messaging, email, packetswitching for access to the Internet, and MMS for sending and receiving photos and video.Cellular telephone, sometimes called mobile telephone, is a type of short-wave analog ordigital telecommunication in which a subscriber has a wireless connection from a mobiletelephone to a relatively nearby transmitter. The transmitters span of coverage is called a cell.Generally, cellular telephone service is available in urban areas and along major highways. Asthe cellular telephone user moves from one cell or area of coverage to another, the telephoneis effectively passed on to the local cell transmitter.A cellular telephone is not to be confused with a cordless telephone (which is simply a phonewith a very short wireless connection to a local phone outlet).The first cellular telephone for commercial use was approved by the Federal CommunicationsCommission (FCC) in 1983. The phone, a Motorola DynaTAC 8000X, weighed 2 pounds,offered just a half-hour of talk time for every recharging and sold for $3,995.HISTORY OF MOBILE PHONEThe history of mobile phones begins with early efforts to develop radio telephone technologyand from two-way radios in vehicles and continues through to emergence of the modernmobile phone and its associated servicesThe introduction of hexagonal cells for mobile phone base stations, invented in 1947 by BellLabs engineers at AT&T, was further developed by Bell Labs during the 1960s. Radiophoneshave a long and varied history going back to the Second World War with military use of radiotelephony links and civil services in the 1950s, while hand-held cellular radio devices havebeen available since 1983. Due to their low establishment costs and rapid deployment, mobilephone networks have since spread rapidly throughout the world, outstripping the growth offixed telephony.Page 8
  9. 9. In 1945, the 0G generation of mobile telephones were introduced. 0G mobile telephones, suchas Mobile Telephone Service, were not officially categorized as mobile phones, since they didnot support the automatic change of channel frequency in the middle of a call, when the usermoved from one cell (base station coverage area) to another cell, a feature called "handover".In 1970 Amos Joel of Bell Labs invented the "call handoff" feature, which allowed a mobile-phone user to travel through several cells during the same conversation. Martin Cooper ofMotorola is widely considered to be the inventor of the first practical mobile phone for handhelduse in a non-vehicle setting. Using a modern, if somewhat heavy portable handset, Coopermade the first call on a handheld mobile phone on April 3, 1973. At the time he made his call,Cooper was working as Motorolas General Manager of its Communications Division.Fully automatic cellular networks were first introduced in the early to mid-1980s (the 1Ggeneration). The first fully automatic mobile phone system was the 1981 Nordic MobileTelephone (NMT) system. Until the early 1990s, most mobile phones were too large to becarried in a jacket pocket, so they were usually permanently installed in vehicles as carphones. With the advance of miniaturization and smaller digital components, mobile phonesgot smaller and lighter..FEATURES & GROWTH OF MOBILEAlthough mobile phones have long had the ability to access data networks such as theInternet, it was not until the wide spread availability of good quality 3G coverage in the mid2000s that specialized devices appeared to access the mobile internet. These devices (ordongles) plugged directly into laptops through the USB port.Page 9
  10. 10. Some manufacturers started to embed the mobile data function directly into the laptop so adongle isnt needed. The SIM card is inserted directly into the device itself to access the mobiledata services.1) UsesMobile phones are used for a variety of purposes, including keeping in touch with familymembers, conducting business, and having access to a telephone in the event of anemergency.Organizations that aid victims of domestic violence may offer a cell phone to potential victimswithout the abusers knowledge. These devices are often old phones that are donated andrefurbished to meet the victims emergency needs.Child predators have taken advantage of cell phones to secretly communicate with childrenwithout the knowledge of their parents or teachers.The advent of widespread text messaging has resulted in the cell phone novel; the first literarygenre to emerge from the cellular age via text messaging to a website that collects the novelsas a whole. Paul Levinson, in Information on the Move (2004), says "...nowadays, a writer canwrite just about as easily, anywhere, as a reader can read" and they are "not only personal butportable".2) Multiple phonesIndividuals may have multiple cell phones for separate purposes, such as for business andpersonal use. Multiple phones (or multiple SIM cards) may be used to take advantage of thebenefits of different calling plans—a particular plan might provide cheaper local calls, long-distance calls, international calls, or roaming. A study by Motorola found that one in ten cellphone subscribers have a second phone that often is kept secret from other family members.These phones may be used to engage in activities including extramarital affairs or clandestinebusiness dealings.Page 10
  11. 11. 3) SharingCell phone sharing is a phenomenon which exists around the world. It is prevalent in urbanIndia, as families and groups of friends often share one or more mobiles among theirmembers. Two types of sharing which exist are "conspicuous" and "stealthy" sharing. Anexample of conspicuous sharing takes place when someone calls the friend of the person theyare trying to reach in hopes of being able to talk to that individual; stealthy sharing occurswhen an individual uses anothers cell phone without their knowledge. Phone sharing does notonly take place because of its economic benefits, but also often due to familial customs andtraditional gender roles.Another example of cell phone sharing occurs in Burkina Faso. There it is not uncommon for avillage to only have access to one cell phone. This cell phone is typically owned by a personwho is not natively from the village, such as a teacher or missionary. Although the cell phone isthe sole property of one individual, it is the expectation that other members of the village areallowed to use the cell phone to make necessary calls. Although some may consider this aburden, it can actually be an opportunity to engage in reciprocal obligations. This type of cellphone sharing is an important for the small villages in Burkina Faso because it allows them tokeep up with the expectations of the globalizing world.4) HandsetThere are several categories of mobile phones, from basic phones to feature phones such asmusic phones and camera phones. There are also Smartphone’s, the first Smartphone wasthe Nokia 9000 Communicator in 1996 which incorporated PDA functionality to the basicmobile phone at the time. As miniaturisation and increased processing power of microchipshas enabled ever more features to be added to phones, the concept of the Smartphone hasevolved, and what was a high-end Smartphone five years ago, is a standard phone today.Several phone series have been introduced to address a given market segment, such as theRIM BlackBerry focusing on enterprise/corporate customer email needs; the SonyEricssonWalkman series of musicphones and Cybershot series of cameraphones; the Nokia N-seriesof multimedia phones, the Palm Pre the HTC Dream and the Apple iPhone.Page 11
  12. 12. 5) FeaturesMobile phone features and SmartphoneMobile phones often have features extending beyond sending text messages and makingvoice calls, including call registers, GPS navigation, music (MP3) and video (MP4) playback,RDS radio receiver, alarms, memo and document recording, personal organiser and personaldigital assistant functions, ability to watch streaming video or download video for later viewing,video calling, built-in cameras (1.0+ Mpx) and camcorders (video recording), with autofocusand flash, ringtones, games, PTT, memory card reader (SD), USB (2.0), infrared, Bluetooth(2.0) and WiFi connectivity, instant messaging, Internet e-mail and browsing and serving as awireless modem for a PC, and soon will also serve as a console of sorts to online games andother high quality games. Some phones also include a touchscreen.Nokia and the University of Cambridge are demonstrating a bendable cell phone called theMorph.6) Power supplyMobile phones generally obtain power from rechargeable batteries. There are a variety of waysused to charge cell phones, including USB, portable batteries, mains power (using an ACadapter), cigarette lighters (using an adapter), or a dynamo. In 2009, wireless chargingbecame a reality, and the first wireless charger was released for consumer use.7) Standardization of Micro-USB connector for chargingStarting from 2010, many mobile phone manufacturers have agreed to use the Micro-USBconnector for charging their phones. The mobile phone manufacturers who have agreed to thisstandard include:• Apple• LG• Motorola• NokiaPage 12
  13. 13. • Research In Motion• Samsung• Sony EricssonOn 17 February 2009, the GSM Association announced that they had agreed on a standardcharger for mobile phones. The standard connector to be adopted by 17 manufacturers in theOpen Mobile Terminal Platform including Nokia, Motorola and Samsung is to be the micro-USB connector (several media reports erroneously reported this as the mini-USB). The newchargers will be much more efficient than existing chargers. Having a standard charger for allphones, means that manufacturers will no longer have to supply a charger with every newphone.8) Charger efficiencyThe worlds five largest handset makers introduced a new rating system in November 2008 tohelp consumers more easily identify the most energy-efficient chargersThe majority of energy lost in a mobile phone charger is in its no load condition, when themobile phone is not connected but the charger has been left plugged in and using power. Tocombat this in November 2008 the top five mobile phone manufacturers Nokia, Samsung, LGElectronics, Sony Ericsson and Motorola set up a star rating system to rate the efficiency oftheir chargers in the no-load condition. Starting at zero stars for >0.5 W and going up to the topfive star rating for <0.03 W (30 mW) no load power.A number of semiconductor companies offering flyback controllers, such as Power Integrationsand CamSemi, now claim that the five star standard can be achieved with use of their product.Page 13
  14. 14. 9) BatteryFormerly, the most common form of mobile phone batteries were nickel metal-hydride, as theyhave a low size and weight. lithium ion batteries are sometimes used, as they are lighter anddo not have the voltage depression that nickel metal-hydride batteries do. Many mobile phonemanufacturers have now switched to using lithium-polymer batteries as opposed to the olderLithium-Ion, the main advantages of this being even lower weight and the possibility to makethe battery a shape other than strict cuboid. Mobile phone manufacturers have beenexperimenting with alternative power sources, including solar cells and Coca Cola.[30]10) SIM Cardaddition to the battery, GSM mobile phones require a small microchip, called a SubscriberIdentity Module or SIM Card, to function. Approximately the size of a small postage stamp, theSIM Card is usually placed underneath the battery in the rear of the unit, and (when properlyactivated) stores the phones configuration data, and information about the phone itself, suchas which calling plan the subscriber is using. When the subscriber removes the SIM Card, itcan be re-inserted into another phone that is configured to accept the SIM card and used asnormal.Each SIM Card is activated by use of a unique numerical identifier; once activated, theidentifier is locked down and the card is permanently locked in to the activating network. Forthis reason, most retailers refuse to accept the return of an activated SIM Card.Those cell phones that do not use a SIM Card have the data programmed in to their memory.This data is accessed by using a special digit sequence to access the "NAM" as in "Name" ornumber programming menu. From here, one can add information such as a new number forthe phone, new Service Provider numbers, new emergency numbers, change theirAuthentication Key or A-Key code, and update their Preferred Roaming List or PRL. However,to prevent someone from accidentally disabling their phone or removing it from the network,the Service Provider puts a lock on this data called a Master Subsidiary Lock or MSL.The MSL also ensures that the Service Provider gets payment for the phone that waspurchased or "leased". For example, the Motorola RAZR V9C costs upwards of CAD $500.Depending on the carrier, such a phone may be available for as little as $200. The difference isPage 14
  15. 15. paid by the customer in the form of a monthly bill. If the carrier did not use an MSL, then theymay lose the $300–$400 difference that is paid in the monthly bill, since some customerswould cancel their service and take the phone to another carrier.The MSL applies to the SIM only so once the contract has been completed the MSL stillapplies to the SIM. The phone however, is also initially locked by the manufacturer into theService Providers MSL. This lock may be disabled so that the phone can use other ServiceProviders SIM cards. Most phones purchased outside the US are unlocked phones becausethere are numerous Service Providers in close proximity to one another or have overlappingcoverage. The cost to unlock a phone varies but is usually very cheap and is sometimesprovided by independent phone vendors.Having an unlocked phone is extremely useful for travelers due to the high cost of using theMSL Service Providers access when outside the normal coverage areas. It can costsometimes up to 10 times as much to use a locked phone overseas as in the normal servicearea, even with discounted rates. T-Mobile will provide a SIM unlock code to account holdersin good standing after 90 days according to their FAQ.MARKET OF MOBILEThe worlds largest individual mobile operator is China Mobile with over 500 million mobilephone subcribers. The worlds largest mobile operator group by subscribers is UK basedVodafone. There are over 600 mobile operators and carriers in commercial productionworldwide. Over 50 mobile operators have over 10 million subscribers each, and over 150mobile operators have at least one million subscribers by the end of 2008 (source wirelessintelligence).In mobile phone handsets, in Q3/2008, Nokia was the worlds largest manufacturer of mobilephones, with a global device market share of 39.4%, followed by Samsung (17.3%), SonyEricsson (8.6%), Motorola (8.5%) and LG Electronics (7.7%). These manufacturers accountedfor over 80% of all mobile phones sold at that time.Page 15
  16. 16. MOBILE AS A MEDIA CHANNELThe mobile phone became a mass media channel in 1998 when the first ringtones were sold tomobile phones by Radiolinja in Finland. Soon other media content appeared such as news,videogames, jokes, horoscopes, TV content and advertising. In 2006 the total value of mobilephone paid media content exceeded internet paid media content and was worth 31 Billiondollars (source Informa 2007). The value of music on phones was worth 9.3 Billion dollars in2007 and gaming was worth over 5 billion dollars in 2007.The mobile phone is often called the Fourth Screen (if counting cinema, TV and PC screens asthe first three) or Third Screen (counting only TV and PC screens). It is also called the Seventhof the Mass Media (with Print, Recordings, Cinema, Radio, TV and Internet the first six). Mostearly content for mobile tended to be copies of legacy media, such as the banneradvertisement or the TV news highlight video clip. Recently unique content for mobile hasbeen emerging, from the ringing tones and ringback tones in music to "mobisodes," videocontent that has been produced exclusively for mobile phones.The advent of media on the mobile phone has also produced the opportunity to identify andtrack Alpha Users or Hubs, the most influential members of any social community. AMFVentures measured in 2007 the relative accuracy of three mass media, and found thataudience measures on mobile were nine times more accurate than on the internet and 90times more accurate than on TV.i) PrivacyCell phones have numerous privacy issues associated with them, and are regularly used bygovernments to perform surveillance.Law enforcement and intelligence services in the UK and the US possess technology toremotely activate the microphones in cell phones in order to listen to conversations that takeplace nearby the person who holds the phone.Mobile phones are also commonly used to collect location data. The geographical location of amobile phone can be determined easily (whether it is being used or not), using a techniquePage 16
  17. 17. known multilateration to calculate the differences in time for a signal to travel from the cellphone to each of several cell towers near the owner of the phone.RESTRICTION ON USAGEThere exists a growing body within the scientific community which believes mobile phone userepresents a long-term health risk, particularly to young children. Certain countries, includingFrance, restrict the use and sale of cell phones to minors for this reason. Thetelecommunications insdustry rejects such claims, claming there is no proof of long-termadverse health effects. Groups of scientists, however, such as the U.S. - based group"Bioinitiative argue that because mobile phone use is recently-introduced technology, long-term proof has been impossible - and use should be restricted, or monitored closely, while thetechnology is still new. The very first generation of cell-phone users, for example, are only nowentering middle-age. Studies in Europe, for example, are only now emerging which link long-term cell phone use to brain tumours. Other studies link cell-phone use to child-diabetes,concentration difficulty, and sleep disorders.1) Use While DrivingMobile phone use while driving is common but controversial. Being distracted while operating amotor vehicle has been shown to increase the risk of accident. Because of this, manyjurisdictions prohibit the use of mobile phones while driving. Egypt, Israel, Japan, Portugal andSingapore ban both hand-held and hands-free use of a mobile phone whilst many othercountries –including the UK, France, and many US states– ban hand-held phone use only,allowing hands-free use.Due to the increasing complexity of mobile phones –often more like mobile computers in theiravailable uses– it has introduced additional difficulties for law enforcement officials in beingable to tell one usage from another as drivers use their devices. This is more apparent in thosecountries who ban both hand-held and hands-free usage, rather those who have banned hand-held use only, as officials cannot easily tell which function of the mobile phone is being usedPage 17
  18. 18. simply by visually looking at the driver. This can mean that drivers may be stopped for usingtheir device illegally on a phone call, when in fact they were not; instead using the device for alegal purpose such as the phones incorporated controls for car stereo or satnav usage – eitheras part of the cars own device or directly on the mobile phone itself.Cases like these can often only be proved otherwise by a check of the mobile operators phonecall records to see if a call was taking place during the journey concerned. Although in manycountries the law enforcement official may have stopped the driver for a differing offence, forexample, for lack of due care and attention in relation to their driving.2) SchoolsSome schools limit or restrict the use of mobile phones. Schools set restrictions on the use ofmobile phones because of the use of cell phones for cheating on tests, harassment andbullying, causing threats to the schools security, distractions to the students and facilitatinggossip and other social activity in school. Many mobile phones are banned in school lockerroom facilities, public restrooms and swimming pools due to the built-in cameras that mostphones now feature.A recently published study has reviewed the incidence of mobile phone use while cycling andits effects on behaviour and safety.NEED FOR THE STUDYThe mobile subscriber base is growing at a scorching pace in India, India is now the 5thcountry in the world to have crossed the 100 million mark in subscriber base and has in thelast two months become the fastest growing mobile market in the world.As average revenue per user decrease from voice drops, and voice becomes commoditized,Telecom companies are increasingly looking at data as an additional revenue stream. The endusers have also embraced VAS and it contributes between 5-10% of the revenues of differentTelecom Companies. Thus Mobile VAS has become an important element in the growth ofmobile telephony in India.Page 18
  19. 19. Yet it is also equally true that there is little clarity on business issues and growth seems to bedriven by more by inherent market momentum than a concentrated effort on the part of thestakeholders; differences exist even on basic issues like definition for Mobile VASMajor Players :There are three major player in this industry:(1) Nokia (Finlend)(2) Samsung (South Korea)(3) Motorola (American)(4) Sony Ericsson (Japan)(5) Lg (South Korea)Page 19
  20. 20. CHAPTER -2Introduction to the organization: Nokia an Introduction Corporate Affairs Online Services Different Technology product of Nokia & its features Nokia Mobile Phone Market strategiesPage 20
  21. 21. NOKIA - AN INTRODUCTIONIn 1865, an engineer named Fredrik Idestam established a wood-pulp mill and startedmanufacturing paper in southern Finland near the banks of a river. Those were the days whenthere was a strong demand for paper in the industry, the company’s sales achieved its high-stakes and Nokia grew faster and faster. The Nokia exported paper to Russia first and then tothe United Kingdom and France. The Nokia factory employed a fairly large workforce and asmall community grew around it. In southern Finland a community called Nokia still exists onthe riverbank of Emäkoski.Finnish Rubber Works, a manufacturer a Rubber goods, impressed with the hydro-electrcityproduced by the Nokia wood-pulp (from river Emäkoski), merged up and started selling goodsunder the brand name on Nokia. After World War II, it acquired a major part of the FinnishCable Works shares. The Finnish Cable Works had grown quickly due to the increasing needfor power transmission and telegraph and telephone networks in the World War II. Graduallythe ownership of the Rubber Works and the Cable Works companies consolidated. In 1967, allthe 3 companies merged-up to form the Nokia Group. The Electronics Department generated 3% of the Group’s net sales and provided work for 460 people in 1967, when the Nokia Groupwas formed.In the beginning of 1970, the telephone exchanges consisted of electro-mechanical analogswitches. Soon Nokia successfully developed the digital switch (Nokia DX 200) therebyreplacing the prior electro mechanical analog switch. The Nokia DX 200 was embedded withhigh-level computer language as well as Intel microprocessors which in turn allowed computer-controlled telephone exchanges to be on the top and which is till date the basis for Nokia’snetwork infrastructure.Introduction of mobile network began enabling the Nokia production to invent the NordicMobile Telephony(NMT), the world’s very first multinational cellular network in 1981. The NMTwas later on introduced in other countries. Very soon Global System for MobileCommunication (GSM), a digital mobile telephony, was launched and Nokia started thedevelopment of GSM phones. Beginning of the 1990 brought about an economic recession inPage 21
  22. 22. Finland. (Rumour has it that Nokia was offered to the Swedish telecom company Ericssonduring this time which was refused) Due to this Nokia increased its sale of GSM phones thatwas enormous. This was the main reason for Nokia to not only be one of the largest but alsothe most important companies in Finland. As per the sources, in August 1997, Nokia suppliedGSM systems to 59 operators in 31 countries.Slowly and steadily, Nokia became a large television manufacturer and also the largestinformation technology company in the Nordic countries. During the economic recession theNokia was committed to telecommunications. The 2100 series of the production was sosuccessful that inspite of its goal to sell 500,000 units, it marvellously sold 20 million.Presently, Nokia is the number 1 production in digital technologies, it invests 8.5% of net salesin research and development. Also has its annual Nokia Game.Enter to Global System CommunicationNokia Corporation (Nokia), a Finland based company incorporated in 1967, is the leadingmanufacturer of mobile devices and mobile networks in the world. Over the years, Nokia hasevolved from a pulp, rubber and cables manufacturing company to a major manufacturer ofwireless devices and networks. Nokia offers a wide range of mobile devices with experiencesin music, navigation, video, television, imaging, games and business mobility. It also providesequipment, solutions and services for network operators, service providers and corporations.The company offers its products in 150 countries across the world. It is headquartered inEspoo, Finland and employs about 68,500 people.The company recorded revenues of E41, 121 million during the fiscal year ended December2006, and an increase of 20.3% over 2005. The operating profit of the company was E5, 488million during fiscal year 2006, an increase of 18.3% over 2005. The net profit was E4, 306million in fiscal year 2006, an increase of 19.1% over 2005.Nokia Corporation manufactures mobile devices principally based on global system for mobilecommunications, code division multiple access (CDMA), and wideband CDMA (WCDMA)technologies. The company operates in three divisions: Multimedia, Enterprise Solutions, andNetworks. The Multimedia division focuses on bringing connected mobile multimedia toconsumers in the form of advanced mobile devices, including 3G WCDMA mobile devices andsolutions. The Enterprise Solutions division enables businesses and institutions to extend theirPage 22
  23. 23. use of mobility from mobile devices for voice and basic data to secure mobile access, content,and applications. Its solutions include business-optimized mobile devices for end users, aportfolio of Internet portfolio network perimeter security gateways, and mobile connectivityofferings. The Networks division provides network infrastructure, communications, andnetworks service platforms and professional services to operators and service providers. NokiaCorporation is based in Espoo, Finland.NOKIA IN INDIANokia India Private Limited first started operations in India in 1995, and presently operates outof offices in Gurgaon, New Delhi, Mumbai, Kolkata, Bangalore, Hyderabad and Ahmedabad,covering the whole of India for the company’s different businesses.We wrote telecom history in India together with our customers, when the first GSM call in Indiawas made on a Nokia 2110 mobile phone on a Nokia-supplied network in 1995.Today, our operations include both the handsets and infrastructure businesses, supported byabout 1200 personnel covering Mobile Phones, Multimedia, Enterprise solutions, and Networkinfrastructure.India is among the top 10 markets for Nokia worldwide today. In new growth markets such asIndia, with mobile phone penetration being less than five per cent of its over one billionpopulation, Nokia is focused on working closely with operators to lower the total cost ofownership and usage for consumers, by offering the right mix of affordable and attractivehandsets with relevant feature sets and essential mobile voice and messaging services, tobring the benefits of mobile communication to end-users.Over the years, Nokia has established itself as the market and brand leader in the mobiledevice market. Nokia has a diverse product portfolio in India to meet the needs of differentconsumer segments, ranging from advanced multimedia devices, to an affordable range ofentry level phones for first time subscribersPage 23
  24. 24. Corporate Responsibility:-Being a good corporate citizen means meeting responsibilities towards individuals, theenvironment, and society in general. We are making corporate responsibility an integral part ofdecision-making in all parts of our business.Financial Factor:-Nokia achieves excellent profitability in the first quarter 2003 and mobile phone volumes growfaster than market.Mission Statement:-Many organizations develop formal mission statements that answer these questions. A missionstatement is a statement of the organization’s urpose—what it wants to accomplish in thelarger environment. A clear mission statement acts as an invisible hand that guides people inthe organization.The mission statement of NOKIA is…“ CONNECTING PEOPLE ”Goals:-The goal of NOKIA is “to be a good corporate citizen wherever we operate, as a responsibleand contributing member of society. We take part in long-term projects aimed at helpingyoung people create their own place in the world, for example through our global youthprograms.”Digital Bridging:-Digital Bridging is an integral part of everyday business. It is also an important part of thecompanys Corporate Community Involvement activities that focus on youth and education.Page 24
  25. 25. Target Market:-The target market of NOKIA is very wide. Its products are demanded world wide and are givenpreference at any other cellular company in the world. They have comparatively low rates thanthe other companies and have a very good and interactive performance and interestingfeatures, so because of these features, people prefer NOKIA than the other companies.Portfolio Analysis:The major activity in strategic management is business portfolio analysis wherebymanagement evaluates the business making up the company. The company will want to putstrong resources into its most profitable business and phase down or drop its weaker ones.So while analyzing the portfolio of NOKIA, it was found that its product of cellular phones,especially its GSM sets were making more profit to the company as compare to its otherproducts. So the company invested more budget in this area and started development on thisarea to earn the maximum profit. But in the mean while, the company didn’t neglected theirother products and invested more money on the development of those products.Micro and Macro Environmental FactorsEffecting BusinessThe actions and forces outside marketing that affect marketing management’s ability todevelop and maintain successful transactions within target customers, is called themarketingenvironment.Environmental considerations are integrated into every area of company life and at everyphase of our products life cycle. We believe in eco-efficiency and sustainability - to respectnature and the needs of future generations. Nokias new Environmental Report 2002 states thecompanys understanding of the environmental aspects and impacts of its activities.Page 25
  26. 26. There are two categories of marketing environment:1. Micro environment2. Macro environment1- Micro Environment:-Following are the micro environmental factors which affects the company:· The company· Suppliers· Marketing intermediaries· Customers· Competitors· Publics2- Macro environment:-Following are the macro environmental factors which affects the company:· Demographic environment· Economic environment· Natural environment· Technological environment· Political environment· Cultural environmentCompetitive Analysis:-Visually, there is no any key competitor to NOKIA as comparing its vast market and demand,but still, we can consider the following companies as its competitors:-· Ericson· Motorola· SamsungPage 26
  27. 27. · SonyThese competitors of NOKIA has also a big market, but as compared to NOKIA, we cannotsay that they can compete this organization at the same level of competition.Social Factors:-Every Nokia employee has influence over Nokias performance and reputation in issues ofhealth, safety, security, employee relations, corporate citizenship and human rights.Marketing StrategyAs we move into the Mobile World, we remain committed to strong growth, profitability andresponsible market leadership.Strategic Direction:-The mobile phone is fast becoming the centerpiece of personal communication, allowing usaccess to an ever-widening range of services. Today, we are moving from voice services toservices driven by data and multimedia.Business Environment:-Nokia competes in the global telecommunications industry in general and in the mobileindustry in particular, each of which has exhibited rapid growth, change and convergence inrecent years.Page 27
  28. 28. CORPORATE AFFAIRS1) Corporate StructureA) DivisionsSince October 1, 2009, Nokia comprises three businessgroups: Devices, Services, Solutions and Markets. The four units receive operational supportfrom the Corporate Development Office, led by Mary T. McDowell, which is also responsiblefor exploring corporate strategic and future growth opportunities.On April 1, 2007, Nokia’s Networks business group was combined with Siemens’ carrier-related operations for fixed and mobile networks to form Nokia Siemens Networks, jointlyowned by Nokia and Siemens and consolidated by Nokia.B) SubsidiariesNokia has several subsidiaries, of which the two most significant as of 2009 are NokiaSiemens Networks and Navteq. Other notable subsidiaries include, but are not limited to Vertu,a British-based manufacturer and retailer of luxury mobile phones; Qt Software, a Norwegian-based software company, and OZ Communications, a consumer e-mail and instant messagingprovider.Until 2008 Nokia was the major shareholder in Symbian Limited, a software development andlicensing company that produced Symbian OS, a smartphone operating system used by Nokiaand other manufacturers. In 2008 Nokia acquired Symbian Ltd and, along with a number ofother companies, created the Symbian Foundation to distribute the Symbian platform royaltyfree and as open source.C) Nokia Siemens NetworksNokia Siemens Networks (previously Nokia Networks) provides wireless and wired networkinfrastructure, communications and networks service platforms, as well as professionalservices to operators and service providers. Nokia Siemens Networks focusesPage 28
  29. 29. in GSM, EDGE, 3G/W-CDMA and Wi-MAX radio access networks; core networks withincreasing IP and multi access capabilities; and services.On June 19, 2006 Nokia and Siemens AG announced the companies are to merge theirmobile and fixed-line phone network equipment businesses to create one of the worlds largestnetwork firms, called Nokia Siemens Networks. The Nokia Siemens Networks brand identitywas subsequently launched at the 3GSM World Congress in Barcelona in February 2007.As of March 2009, Nokia Siemens Networks serves more than 600 operator customers inmore than 150 countries, with over 1.5 billion people connected through its networks.D) NavteqNavteq is a Chicago, Illinois-based provider of digital map data for automotive navigationsystems, mobile navigation devices, Internet-based mapping applications, and governmentand business solutions. Navteq was acquired by Nokia on October 1, 2007. Navteq’s map datais part of the Nokia Maps online service where users can download maps, use voice-guidednavigation and other context-aware web services. Nokia Maps is part of the Ovi brand ofNokias Internet based online services.2) Corporate GovernanceThe control and management of Nokia is divided among the shareholders at a general meetingand the Group Executive Board (left), under the direction of the Board of Directors (right). TheChairman and the rest of the Group Executive Board members are appointed by the Board ofDirectors. Only the Chairman of the Group Executive Board can belong to both, the Board ofDirectors and the Group Executive Board. The Board of Directors committees consist of theAudit Committee, the Personnel Committee and the Corporate Governance and NominationCommittee.The operations of the company are managed within the framework set by the FinnishCompanies Act, Nokias Articles of Association and Corporate Governance Guidelines, andrelated Board of Directors adopted charters.3) Corporate CultureThe Nokia House, Nokias head office in Keilaniemi,Espoo, Finland.Page 29
  30. 30. Nokias official corporate culture manifesto, The Nokia Way, emphasises the speed andflexibility of decision-making in a flat, networked organization, although the corporations sizenecessarily imposes a certain amount of bureaucracy.The official business language of Nokia is English. All documentation is written in English, andis used in official intra-company spoken communication and e-mail.Until May 2007, the Nokia Values were Customer Satisfaction, Respect, Achievement, andRenewal. In May 2007, Nokia redefined its values after initiating a series of discussionsworldwide as to what the new values of the company should be. Based on the employeesuggestions, the new values were defined as: Engaging You, Achieving Together, Passion forInnovation and Very Human.ONLINE SERVICES1) Mobi and the Mobile WebNokia was the first proponent of a Top Level Domain (TLD) specifically for the Mobile Weband, as a result, was instrumental in the launch of the .mobi domain name extension inSeptember 2006 as an official backer. Since then, Nokia has launched the largest mobileportal, Nokia.mobi, which receives over 100 million visits a month.]It followed that with thelaunch of a mobile Ad Service to cater to the growing demand for mobile advertisement.2) OviOvi, announced on August 29, 2007, is the name for Nokias "umbrella concept" Internetservices. Centered on Ovi.com, it is marketed as a "personal dashboard" where users canshare photos with friends, download music, maps and games directly to their phones andaccess third-party services like Yahoos Flickr photo site. It has some significance in that Nokiais moving deeper into the world of Internet services, where head-on competition with Microsoft,Google and Apple is inevitable.The services offered through Ovi include the Ovi Store (Nokias application store), the NokiaMusic Store, Nokia Maps, Ovi Mail, the N-Gage mobile gaming platform available for severalPage 30
  31. 31. S60 smartphones, Ovi Share, Ovi Files, and Contacts and Calendar. The Ovi Store, the Oviapplication store was launched in May 2009. Prior to opening the Ovi Store, Nokia integratedits software Download! store, the stripped-down MOSH repository and the widget serviceWidSets into it.3) My NokiaNokia offers a free personalised service to its subscribers called My Nokia (located atmy.nokia.com). Registered My Nokia users can avail free services as follows:• Tips & tricks alerts through web, e-mail and also mobile text message.• My Nokia Backup: A free online backup service for mobile contacts, calendar logs andalso various other files. This service needs GPRS connection.• Numerous ringtones, wallpapers, screensavers, games and other things can bedownloaded free of cost.4) Comes With MusicOn December 4, 2007, Nokia unveiled their plans for the "Nokia Comes With Music" initiative,a program that would partner with Universal Music Group International, Sony BMG, WarnerMusic Group, and EMI as well as hundreds of Independent labels and music aggregators tobundle 12, 18, or 24 months worth of unlimited free music downloads with the purchase of aNokia Comes With Music edition phone. Following the termination of the year of freedownloads, tracks can be kept without having to renew the subscription. Downloads are bothPC and mobile-based.5) Nokia MessagingOn August 13, 2008, Nokia launched a beta release of "Nokia Email service", a new push e-mail service, since graduated as part of Nokia Messaging. Nokia Messaging operates as acentralized, hosted service that acts as a proxy between the Nokia Messaging client and theusers e-mail server. It does not allow for a direct connection between the phone and the e-mailserver, and is therefore required to send e-mail credentials to Nokias servers. IMAP is used asthe protocol to transfer emails between the client and the server.Page 31
  32. 32. DIGITAL SERVICES:-A method of encoding information using a binary code of 0’s and 1’s. Most newer wirelessphones and networks use digital technology. In digital, the analog voice signal is converted intobinary code and transmitted as a series of on and off transmissions. One of digitals drawbacksis that there are three digital wireless technologies, CDMA, TDMA, and GSM. Phones thatwork with one technology may not work on another.A) TDMA IS-136 (TIME DIVISION MULTIPLE ACCESS):-It is an update to TDMA IS-54, also called Digital AMPS or D-AMPS. Released in 1994, TDMAIS-136 uses the frequency bands available to the wireless network and divides them into timeslots with each phone user having access to one time slot at regular intervals. TDMA IS-136exists in North America at both the 800 MHz and 1900 MHz bands. Major US carriers usingTDMA and AT & T wireless services, BELL SOUTH and SOUTH WESTERN BELL.B) CDMA IS-95 (CODE DIVISION MULTIPLE ACCESS):-It is based on a form of spread spectrum technology that separates voice signals by assigningthem digital codes within the same broad spectrum. CDMA type technology was used inmilitary communication systems because it was resistant to interface from enemy signals. TheQualcomm Corporation began developing a CDMA wireless system in the late 1980’s that wasaccepted as a s tandard in 1993 and went into a operation by 1996. CDMA also exists at boththe 800 MHz and 1900 MHz bands. The major US carriers using CDMA are AIR TOUCH,BELL ATLANTIC / NYNEX, GTE, PRIMECO and SPRINT PCS.C) GSM (GLOBAL SYSTEM FOR MOBILE COMMUNICATIONS):-It is based on an improved version of TDMA technology. In 1982, the conference of Europeanposts and Telecommunications (CEPT) began the process of creating a digital cellularstandard that would allow users to roam from country to country in Europe. By 1987, the GSMPage 32
  33. 33. standard was created based on a hybrid of FDMA (Analog) and TDMA (Digital) technologies.GSM engineers decided to use wider 200 KHz channels instead of the 30 KHz channels thatTDMA used, and instead of having only 3 slots like TDMA, SM channels had 8 slots. Thisallowed for fast bit rates and more natural-sounding voice- compression algorithms. GSM iscurrently the only one of the three technologies that provides data services such as email, fax,internet browsing, and intranet / LAN wireless access, and it’s also the only service thatpermits users to place a call from either North America or Europe. The GSM standard wasaccepted in the US in 1995. GSM-1900 cellular systems have been operating in the US since1996, with the first network being in the Washington D.C. area. Major carriers of GSM 1900include omni point, Pacific Bell, Bell South, Sprint Spectrum, Microcell, Western Wireless,Powertel and Aerial.DIFFERENT TECHNOLOGY:-(A.) Bluetooth Technology:-It is a technology for wireless communication between devices. It’s based on a lowcost short-range radio link. Every decorator knows that cables and wires are unsightly and confusing.Bluetooth connections allow wireless communication between devices within a range of about30 feet (10 metres). Unlike infrared, you don’t have to point devices directly at each other, oreven have both devices in the same room. Blue tooth can initiate connections automaticallywith paired devices, so you don’t even have to think about it. And no, you don’t have to pay fora Bluetooth connection, no matter how much data you transfer. When two devices shareinformation, there are a few things that have to be worked out: firstly, how they will physicallyconnect through how many wires? Or none at all? – And then what are the agreed commandsthat will make sense to both devices? Bluetooth is an industry standard that solves both ofthese issues cheaply, and using very little battery power.(B.) GPRS Technology:-Page 33
  34. 34. General Packet Radio Service is a technology that allows your phone to transfer data atmoderate speeds. GPRS lets you send data faster than over a GSM data network, and it’s alsoa lot more efficient. But “data” sounds pretty vague. To use GPRS, you need a phone thatsupports it, a subscription from your network operator that supports GPRS, and the propersettings. GPRS does what it says: it sends “packets” of data over a radio wave (on GSMnetwork). Packet switching works like a jigsaw puzzle: your data is split into many pieces, thensent over the network and reassembled at the other end. GPRS is just one of the ways totransport these jigsaw puzzles.(C.) EDGE Technology:-Enhanced Data rates for Global Evolution (EDGE) enables data connections three times fasterthan GPRS within the same multi slot class. Like GPRS, you’re billed for the data you transfer,not for the time you spend connected. EDGE opens up a lot of possibilities for connecting todata networks on your mobile phone, making it far less frustrating to stream video anddownload larger files. To use EDGE, you need a phone that supports it, a subscription fromyour network operator that supports EDGE, and the proper settings. EDGE is based onGeneral Packet Radio Service, which sends “packets” of data over a radio wave. PacketSwitching works like a jigsaw puzzle: your data is split into many pieces, then sent over thenetwork and reassembled at the other end. GPRS is just one of the ways to transport thesejigsaw puzzles.(D.) JAVA Technology:-JAVA is both a programming language and a software platform, and its used to create and runapplications for Nokia phones. With JAVA applications, your phone can do more of the thingsyou’d like it to do. Downloading and installing applications is a relatively simple process (as isuninstalling them), and there is a wide range of applications available. JAVA was originallydeveloped by Sun Microsystems. Enhancements and standardization of the JAVA platformsare conducted by the JAVA Community Process (JCP), in which Nokia takes on active roletogether with sun and othermembers. There are two parts to JAVA technology: a programminglanguage, and an environment in which those commands can be executed. You need anenvironment where the language means something, so JAVA brings its own environmentalong. JAVA enabled Nokia phones – most Nokia models on the market now-contain a JAVAPage 34
  35. 35. Virtual Machine, which is ready to run applications written in JAVA. This makes using newapplications easy, because you usually don’t have to configure, load, or install anything else.(E.) MMS Technology:-MMS stands for Multimedia Messaging Service, a technology that allows you to create, sendand receive text messages that also include an image, audio, and / or video clips. MMSmessages are sent from one mobile phone to another, or to an email address. MultimediaMessaging enriches your mobile messages in much the same way as inserting photos orchanging fonts and colours does in email – it’s both useful and expressive. MMS messagesare sometimes considered equivalent to so –called “Picture Messaging”, popularized by therecent imaging phones boom, but other uses of the technology do exist.You don’t need to have an imaging phone to send and receive MMS messages, just an MMS-enabled mobile phone, an operator management that supports the service, and the correctsettings on your handset. Of course, an imaging phone gives you the option of creating andpassing on your original images. An MMS message is a multimedia presentation in a singleentry, unlike an email with attachments, making it easier to create and simpler to deliver thanan email with attachments. MMS is a scalable technology, which means it’s suitable for mosttypes of mobile phones. And MMS is compatible with fixed email addresses, so it is possible tocriss-cross back and forth over the mobile-PC border.(F.) Mobile browsing network :-A mobile browser is simply any program that lets you access and read content on networkfrom a mobile device – usually the Internet or some other mobile network service. As morephones on the market boast high network connection speeds and colour screens, mobilebrowsing is becoming more common (and a lot better looking). Many new Nokia models comewith an integrated XHTML or even HTML mobile browser, giving you the chance to surf withoutbeing chained to a desktop computer. Today’s mobile browsers give you richer colours andfaster browsing than the original mobile browsers, and most importantly, a way to access theweb at your finger tips. network operator to a data service (GSM data, GPRS, EDGE,Page 35
  36. 36. WCDMA, etc) and the correct settings on your phone. Then its up to other companies andindividuals to build the sites and services you can browsePRODUCT OF NOKIA AND ITS FEATURESNokia 1208Key Features• Experience enhanced visual with the 65,536 color display• Dust and splash proof with rubberized keypad and anti-slippery back cover• Bright flashlight for convenience and emergency• Timer tracker feature helps you controls the duration of each call• Multiple phonebook makes sharing phone easier• Easy–to-use menu in multi languages with calendarsOperating FrequencyPage 36
  37. 37. • GSM Dualband EGSM 900/1800 MHzMessaging• Text messaging: Supports concatenated SMS, picture messaging, SMS distributionlist• Distribution list - create and manage your personal list• Predictive Text Input: Support for all major languages in Europe and Asia Pacificincluding Indian dialect• Large SMS storage for up to 60 SMS on phone memoryRinging Tones• 32-chord/voice polyphonic ringing tones with MP3-grade soundVoice Features• Integrated handsfree speakerPersonal Information Management (PIM)• Multi phonebook• Alarm clock• Analog/digital clock• Reminders• Stopwatch• Calculator• Calendar• Converter• Countdown timerPage 37
  38. 38. Nokia 1100Features• 96 x 65 pixels Monochrome graphic Display• 2G Network, GSM Network• Ringtone composer• Internal Antenna• Picture messaging, SMS to many, Calculator, Stopwatch• Downloadable monophonic ringtones• Talk time Up to 4 h 30 minPage 38
  39. 39. Nokia 1650Key Features• Easy one-touch key to activate FM radio in an instant• Enjoy easy viewing with the 65,536 colors, large screen display and large font typewhen dialing• Personalize your phone ring with quality MP3-grade and 32 Polyphonic ringtones• Extend your talk time with Power Saver modePage 39
  40. 40. • Convenient one-touch key to switch on built-in flashlightNokia 2626Key Features• Stand out from peers and friends with colored covers• Listen to and share your FM radio music through the integrated handsfree speaker• Record sound on the move and send to friends with Nokia Xpress Audio Messaging• Download wallpapers & ringing tones via GPRS• Stay updated on work and play with one inbox for SMS and MMS messagesPage 40
  41. 41. Nokia 2600 ClassicKey features• Capture images and videos in dazzling color with the digital VGA camera and videorecorder• Personalize your phone with MP3, ringtones and user-created ringtones• Enjoy music and news on the move with the FM radio• Monitor call times with Pre-paid TrackerPage 41
  42. 42. • Share your photos and video clips with friends and family using Bluetooth• Keep in contact with SMS, MMS, email, and Nokia Xpress Audio Messaging• Keep all your contacts on hand with 1000-entry phone book•• photo and data sharing with Bluetooth 2.0Nokia 3500 classicPage 42
  43. 43. Key Features• An elegant, large, glossy black 1.8" smoked screen makes viewing all your photos apleasure.• A solid metal rim around the phone protects the screen from scratches• Splitline coloring in the keymat adds a touch of color• Benefit from easy connectivity with Bluetooth, and a mini-USB port to connect to a PC• Save more of your moments with the option to use MicroSD memory cards up to 2GB• Ensure you’re always in touch with up to 2,000 contacts.• Stay entertained with a music player and FM radio• Make your handset unique with MP3 ringtonesNokia 6500 slidePage 43
  44. 44. Key FeaturesTake high quality pictures with a 3.2 megapixel camera with Carl Zeiss optics, auto focus,and 8x digital zoomA powerful double LED flash makes indoor pictures perfectShare pictures or videos with friends and family via TV-Out3G video calling helps you feel even closer to the people you care aboutImaging and Video• Integrated 3.2 megapixel camera with Carl Zeiss optics, auto focus, with up to 8x digital$zoom• Integrated double LED flash• Macroshot, landscape mode, sequential shots, and dedicated 2-step capture key• Horizontal mode with capture and zoom keys allows you to use the phone like a digitalcameraNokia N72Page 44
  45. 45. Key Features• "Slide and shoot" print quality photos with 2 megapixel camera with up to 20x zoom• Dedicated music keys for access to digital music player• Ambient light detector optimizes display brightness• Transfer data with Bluetooth wireless connectivity or via USB 2.0.Nokia N73Page 45
  46. 46. Key Features• 3.2 megapixel camera with Carl Zeiss optics• Large, bright 2.4-inch display• Advanced auto-focus and mechanical shutter• Stereo FM and support for Visual Radio• Download and stream videos with built-in RealPlayerPage 46
  47. 47. Nokia 5233Features:• Display : Type TFT resistive touch screen, 16M colors , Size: 360 x 640 pixels, 3.2inches.• Handwriting recognition.• Sound : Alert types Vibration, MP3 ringtones.• Speakerphone: Yes.• 3.5 mm audio jack.• Memory.• Phonebook: Practically unlimited entries and fields, Photocall.• Call records: Detailed, max 30 days.• Internal: 70 MB storage, 128 MB RAM.• Camera : Primary 2 MP, 1600x1200 pixels.• Video: Yes.Page 47
  48. 48. • Messaging: SMS, MMS, EmailNokia C-6Features:• 3.2 inches TFT resistive touchscreen display• QWERTY keyboard• 5MP Camera with Video recording facility• Internal memory upto 240MB• Multimedia Player with Stereo FM radio• microUSB connectivity version 2.0• Bluetooth version 2.0 with A2DP• Talktime upto 7hrsPage 48
  49. 49. NOKIA MOBILE PHONE MARKET STRATEGIESIn spite of the presence of big names in consumer electronics like Samsung, LG, Sony-Ericsson and Motorola, Nokia really rules the mobile phone market all over the world withnearly 40% of the market share with no close competitors. Nokia is certainly the king when itcomes to brand value, service and experience. The Finnish mobile giant is clearly No. 1 choicein South East Asia including India and China. How they could reach the top position?1. Call QualityNokia is known for its circuitry to handle the RF Reception and providing the best call receptionquality. You won’t see users complaining much about the noise or the disturbances withinNokia phones unless its a problem of the telecom service provider. So, the primary objective ofa mobile phone i.e. to serve us with better and clearer sound when we talk , is served by Nokiaperfectly. And if you are a person who is accustomed to other mobile phone manufacturers,then you know that even Apple iPhone and Sony Ericsson are guilty of itPage 49
  50. 50. 2. HardwareYou can be assured of the quality that Nokia provides in your phone hardware. The circuits arefar more durable and reliable than any of the other mobile phone available in the market. I amusing a single Nokia phone for 6 years and I had to take it to the service centre only onceduring this period for a trivial problem. That speaks for the truth I am talking about.3. BatteryThe Battery life of Nokia mobile phones is longer than many other cellphones available in themarket. People who talk a lot prefer Nokia than any other brands. They always know that thebattery will not run out in the middle of the call. iPhone has had this problem with battery life inPage 50
  51. 51. the past and that hasn’t been solved yet. Nokia leaves others miles behind when we considerthe longevity of the battery.4. RobustnessEveryone knows that Nokia mobiles are truly rock solid. I want to share my experience withrespect to this. I dropped my Nokia the very next day I bought it. I dropped it on the staircaseand it bounced to nearly 12 steps down. My heart pumped out with the fear of losing the phoneon the second day. But what I found when I reached downstairs is that the phone is fullyfunctional and it only had a few scratch in its body. Since then, it slipped off my hand many atimes but it did not refuse to function. Thanks to Nokia for making such rugged phones. Itwould really be the worst thing if I had to take my phone to service centre or had to buy a newone every time I dropped my phone.5. Wide Product RangeNokia has a vast and huge list of mobile phones. Nokia mobile phones are available for everyconsumer groups, starting from simple and durable phones for the low income groups andhigh-end phones for those who can afford to spend money. So regardless of you being acorporate honcho or a fresher into the world of economy, Nokia has something for you. Thesheer range of products is enviable and at the same time the success mantra of Nokia’sdominance.6. Customer ServicePage 51
  52. 52. The Customer Care of Nokia which they call the Nokia Care, handles the complaints veryefficiently satisfying their customers. I had a problem with the display of my Nokia Phone. Itook it to the Nokia Care and they very quickly fixed it and gave it back. Its just the trust theyimplement on the customer’s mind, is really appreciable.Hope you remember the battery bursting incidents of Nokia mobile phones in India. The BL-5Cbattery, which was the culprit in this case, was promptly replaced with no questions asked.They also helped people with a temporary site to go and put their unique manufacturing id andsee if they needed to change the battery or not. Believe me, the call wasn’t that easy keepingin mind the number of battery parts they had to change.7. ReliabilityNokia really has become a brand that people can trust upon. The error rates or crash rates ofNokia phones are very low. It will not dump you when you need this phone. And petty may thisbe but still, Nokia has this trust thing going in favour of it. People can blindly trust Nokia inAsian Countries. and not to mention, Nokia has deservingly earned this place.8. PriceThe price tags of every Nokia mobile phone is very reasonable. I mean, I can still get a GSMmobile phone for as less as Rs. 1200 in India with all the basic features and that will last longenough to pay me back with my dues.Page 52
  53. 53. 9. ExperienceNokia is the largest cellphone manufacturer in the world with about 40% of market share withits competitors nowhere near its sales volume. They know the world of mobile phone morethan any other. They have ages of experience, hundreds of success stories and dozens ofsmart handsets in current portfolio. That helps them to evolve and thereby nourish our needs.10. Marketing StrategyOne of the main reasons behind the success of their mobile phones is their marketing strategy.The main source of earning is the popularity of their phones in the Asian market. China ismaking phone designs/softwares specific for the region. For instance, since many ruralChinese aren’t familiar with the romanized transliteration system that most cell phones use toinput Chinese for text messages, Nokia developed two phones with software that lets themwrite characters with a stylus. And for India, Nokia launched two India-specific models, whichincluded a flashlight, dust cover, and slip-free grip (handy during India’s scorching, sweatysummers). They also included some softwares in several regional languages which madeNokia a success.Page 53
  54. 54. Nokia OrganizationDevices is responsible for developing the best device portfolio for the marketplace, includingsourcing of components• Services & Software reflects our strategic emphasis on developing and growing our offeringof consumer Internet services and enterprise solutions and software• Markets is responsible for management of our supply chains, sales channels, and brand &marketing activities• The Corporate Development Office focuses on our strategy and future growth, and providesoperational support for integration across all the units Our infrastructure and related servicesbusiness is conducted through Nokia Siemens Networks, a separate company jointly owned byNokia and Siemens and consolidated by Nokia..NAVTEQ is a leading provider of comprehensive digital map data for automotive navigationsystems, mobile navigation devices, Internet-based mapping applications, and governmentand business solutions. NAVTEQ’s map data will be an important part of the Nokia Mapsservice that brings downloadable maps, voice-guided navigation and other contextaware webservices to people’s pocketsPage 54
  55. 55. CHAPTER -3Research Methodology Research methodology Meaning Type of Research use in projectPage 55
  56. 56. 1) Research methodology MeaningResearch methodology is a systematic way to solve the research problems,It refers to searchfor knowledge , a scientific and systematic search for information.Marketing research is the systematic design , collection, analysis and reporting of data andfinding relevant to a specific marketing design, collection, analysis and reporting of data andfinding relevant to a specific marketing situation facing the company.2) Type of Research use in project(Exploratory Research)Data CollectionData collection means collections of information, facts or figures for the problem.Primary Data Collection- Primary data is the first hand information obtained by investigator .Primary source is one itself collects the data. Primary data can be collected by observation , byinterviews, by face to face questioning , by using questionnaire, when the needed data do notexist or are dated , inaccurate ,incomplete, or unreliable.Secondary Data Collection –Secondary data is collected by others already and theresearcher is using that information for his own research purpose. Secondary data can becollected from published reports , newspaper, websites, journals, publications of national andinternational organization.Sampling Plan & unit : Walk-in customers in retail outlet.Sample size – 150Method of selecting Sample : Questionnaire, face to face interviewTechnique- Percentage MethodPage 56
  57. 57. CHAPTER -4Consumer Behavior• Title of the Study• Duration of the project:-• Objective of Study:• Scope of Study• Limitations:Page 57
  58. 58. 1) TITLE OF THE STUDYA study on consumer behavior for preference of brands in cellular phones with a reference tonokiaMeaning of Consumer Behavior:-Consumer behavior is the study of how people buy, what they buy, when they buy and whythey buy. It blends elements from psychology, sociology, socio psychology, anthropology andeconomics. It attempts to understand the buyer decision making process, both individually andin groups. It studies characteristics of individual consumers such as demographics,psychographics, and behavioral variables in an attempt to understand peoples wants. It alsotries to assess influences on the consumer from groups such as family, friends, referencegroups, and society in generalStages of the Consumer Buying Process :-Six Stages to the Consumer Buying Decision Process (For complex decisions). Actualpurchasing is only one stage of the process. Not all decision processes lead to a purchase. Allconsumer decisions do not always include all 6 stages, determined by the degree ofcomplexity...discussed next.The 6 stages are:A) Problem Recognition (awareness of need) :Difference between the desired state and the actual condition. Deficit in assortment ofproducts. Hunger--Food. Hunger stimulates your need to eat. Can be stimulated by themarketer through product information--did not know you were deficient? I.E., see a commercialfor a new pair of shoes, stimulates your recognition that you need a new pair of shoes.B) Information search :Internal search, memory.External search if you need more information. Friends and relatives (word of mouth). Marketerdominated sources; comparison shopping; public sources etc. A successful information searchleaves a buyer with possible alternatives,Page 58
  59. 59. C) Evaluation of Alternatives –need to establish criteria for evaluation, features the buyer wants or does not want.Rank/weight alternatives or resume search. May decide that you want to eat something spicy,Indian gets highest rank etc. If not satisfied with your choice then return to the search phase.Can you think of another restaurant? Look in the yellow pages etc. Information from differentsources may be treated differently. Marketers try to influence by "framing" alternatives.D) Purchase decision –Choose buying alternative, includes product, package, store, method of purchase etcE) Purchase –May differ from decision, time lapse between 4 & 5, product availability.F) Post-Purchase Evaluation –outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the rightdecision. This can be reduced by warranties, after sales communication etc. After eating anIndian meal, may think that really you wanted a Chinese meal instead2) DURATION OF THE PROJECT:-The present study was undertaken during the month of April 20113) OBJECTIVE OF STUDY:-A) Primary Objective• To understand the problem thoroughly.• Rephrasing the same into meaningful terms from an analytical point of view.B) Secondary Objective• To fill the gap in knowledge.• To resolve contradictory finding.Page 59
  60. 60. • To test the theoretical prediction4) SCOPE OF STUDY• Nokia is already well establish in the market, but there are lots of others things thathas to be understand as a Sales Assistant.• First the main thing I have learned how the supply chain process affect sales.• The intensity of competition in the mobile communications industry and our ability tomaintain or improve our market position or respond successfully to changes in thecompetitive landscape.• Our ability to manage efficiently our logistics, as well as to ensure the quality, safety, securityand timely delivery of our products, services and solutions.• I have worked as a Sales Assistant ,during the project I come to know that customersare too price conscious they want a quality product in less amount.• I have learned about consumer behavior how they respond in practical life. Consumersalways looks for better value proposition, they always compare the benefits of one companyto others.5) LIMITATIONS:-Limitations of the projects are to know the behavior of the customers, market segmentation,product ,and pricing policy and the attitude, feeling and reaction of the consumer towards theproducts.Page 60
  61. 61. CHAPTER -5Analysis and interpretation:Page 61
  62. 62. Q. 1. What is your age?Age No of respondents (150) % of respondentsBelow 20 39 26%20-40 60 40%40-60 33 22%Above 60 18 12%Page 62
  63. 63. 26%40%22%12%Agebelow2020-4040-60above 60Q.2. Do you have own mobile?Do u have own mobile No. of respondent (150) % of respondentsYes 126 84no 24 16Page 63
  64. 64. 84%16%peopleyesnoQ.3. Please mention the factor that had influenced you have cell phone.?Factors No. of respondent (150) % of respondentsReference 21 14%Occupational 51 34%Speedy communication 33 22%Cost effectiveness 30 20%other factor 15 10%Page 64
  65. 65. 14%34%22%20%10%Influencing factorReferenceOccupationalSpeedy communicationCost effectivenessother factorQ.4. Which Cell phone Company You Prefer?Company name No. of respondent (150) % of respondentsNokia 60 40%Samsung 15 10%Sony ericsson 9 6%Motorola 24 16%LG 12 8%Others 30 20%Page 65
  66. 66. 40%10%6%16%8%20%CompanyNamenokiasamsungsony ericssonmotorolaLGothersQ.5. Any Specific Reason for Buying Nokia Mobile?Page 66
  67. 67. 40%10%30%10%10%Reasonbluetoothfmmp3/mp4memorycameraRasons No of respondents (150) % of respondentsBluetooth 60 40%Fm 15 10%Mp3/mp4 45 30%Memory 15 10%Camera 15 10%Page 67
  68. 68. Q.6. What Features you are looking for?Features No of respondents (150) % of respondentsBATTERY BACK-UP 45 30%EDGE/GPRS 30 20%TRI BAND 21 14%NAVIGATOR 24 16%ANY OTHERS 30 20%30%20%14%16%20%Featuresbattery back-upedge/gprstri bandnavigatorany othersPage 68
  69. 69. Q.7. Budget for Purchasing Mobile?Budget No of respondents (150) %of respondents1000-3000 60 40%3000-6000 36 24%6000-10000 30 20%10000-14000 15 10%More than 14000 9 6%40%24%20%10%6%Price Budget1000-30003000-60006000-1000010000-14000more than 140000Page 69
  70. 70. Q.8. Which Advertisement Media Puts More Impact On Your BuyingDecision?Media name No of respondents (150) % of respondentsTV. 60 40%Magazines 30 20%Newspaper 24 16%Internet 21 14%other 15 10%40%20%16%14%10%Media NameT.V.magazinesnewspapersinternetothersPage 70
  71. 71. Q.9. Degree of Appearance and Style of Mobile for You?Appearance & style No of respondents (150) % of respondentsImportant 87 58%Natural 33 22%Not important 30 20%58%22%20%Appearance & Styleimportantneutralnot importantQ.10. Degree of Reliability of Mobile for You?Page 71
  72. 72. Reliability No of respondents (150) % of respondentsImportant 99 66%Natural 33 22%Not important 18 12%66%22%12%Reliabilityimportantneutralnot importantCHAPTER -6SWOT ANALYSIS:Page 72
  73. 73.  Strength Weakness Opportunities ThreatsNokia was the first to acknowledge fashion as an important element in mobile phonepurchases, and it is solidly behind the push for Multimedia Messaging Service, which couldbecome the first data service beyond Short Message Service to be deemed successful. Thereis a significant gap between Nokia and startups, which makes it difficult to compete againstPage 73
  74. 74. Nokia. Nokias tie to operators has kept its products solidly in consumers view. Yet, Nokiafaces some serious challenges.The mobile landscape has fundamentally shifted, and some of Nokias strengths and corebeliefs may no longer be valid. In the following research, we discuss Nokias strengths andchallenges and provide advice for enterprises partnering with, purchasing from and workingwith Nokia.Strength・ Nokia has long established identity (1898); lots of available resources (financial, etc.)・ Nokia has high penetration rate in Europe, especially in Northern countries (close to 100%)・ Nokia Consumer Electronics has access to innovative technology through group companiesWeakness・ Lack of centralized marketing strategy and champion; completely different positioningstrategy depending on the country・ Too many brand names (100) in one market; problem trying to find balance・ Corporate culture is highly technical and operational: So what if the customer does notunderstand! Lack of customer service priorityOpportunities・ Potential for brand name sales in Europe and Asia-pacific・ Growing replacement and supplement television market・ NCE has opportunity of using its technology to enhance user-friendlinessThreats・ The market for color TVs and VCRs is a mature/saturated market; consumers are buyingless often and only to replace older units (same trend for all countries across Europe)・ Can’t differentiate based on technical advancement or price; competitors too fast to match・ Impact of recent purchases (for example, Sony) and mergers is unknown; competitors aregetting larger and integrating supply chains Competitive advantage is gained through brandname (not technology or price)・ According to brand awareness studies, Nokia is recognized most of the time (in Germany,France, Italy, UK and Norway), but not necessarily affiliated with consumer electronics such asTVs and VCRs・ Consumers buy televisions based on emotion .Page 74
  75. 75. ・ Consumers perceive value in features that are marketed as user-friendly. In the past Nokiahas relied heavily on its ability to innovate—it is a strong technology company. InternalManagement Challenge faces at least two challenges within NCE that he mustaddress immediately:1. Lack of a marketing champion in corporate headquarters2. A continued reliance on technology as the main marketing approach. For example, theremote control TV mouse is centered on technology and may frighten away potentialcustomers who may perceive it as too technical.CHAPTER -7Conclusion:Page 75
  76. 76. The way corporations interact with their customers has changed drastically in the past fewyears. The era of mass marketing and mass communications is over. Customers have beenincreasingly taking up widespread social media tools on the web and turned into the messagecreators, driving the conversations around the products and services they use. Therefore,corporations must join customers in these conversations. We need to be able to speak openly,Page 76
  77. 77. honestly, and in a personal tone. We need to listen carefully without being defensive. We needto respect those who speak to us and about us because of this only we come to know wherewe are lacking , what we have to do to beat our competitors We need to understand that we nolonger control the conversation but are a part of it. For a few years now, Nokia have beenparticipating in the conversation with customers through various efforts, ranging from blogs bypeople who work on S60, outreach to Nseries aficionados, support discussion boards, and asite to download and discuss early state software from Nokia. This helps Nokia to know whythe market share of the company in India slip down and according to this only we can indentifythe problem.Nokia’s most recent addition has been Nokia Conversations, a site dedicated to the stories inand around the Nokia neighborhood. It’s not about the tech and specs, but about the people,products, and ideas behind the news. Nokia Conversations highlights the best and mostimportant conversations about and around Nokia, whether it comes from inside Nokia oroutside. Our articles also add a mix of various elements, such as videos and photos. This isthe way Nokia trying to put all the information on net , so that consumers can refers to thosesites before purchasing the products.CHAPTER -8Recommendation and Suggestions:Page 77
  79. 79. NOKIA products are used all over in India by the people of the every region. But now days thepeople want more values for their money worth, it means a better designed product with qualityand they are most willing to buy the product frequently.The positive suggestions are as follows:-• As the others companies like Samsung. Motorola and others offers products in good packing,so the product packaging must be made attractive so that the young generation willing toaccept it.• The product line must be extended so that all the generation levels must be able touse it as per their taste.• Customers wants some fancy type or good looking mobiles.• The main thing is the availability of the products at retail outlets.• The product packaging must be changed time to time.• The media marketing must be done highly and a good relationships should be made with thecustomers by giving frequents offers and arranging various competitions.RETAILERS RELATED:• There must be regular supply of the products at least 2-3 days a week.• The new outlets must be grabbed through providing some fruitful offers.• The some untouched Parts of the area must be covered.• Some credit facilities must be provided to the retailers.• There should be discount given to the retailers on huge bulk purchasing to motivate him.• The advertisement must be done through Hoardings, Posters, Banners, Radio Mirchi, FMradio channels .• There should be a meeting every month for to solve distributors and retailers problems.Chapter 9Bibliography:Page 79
  80. 80. 1) Web Resources:· www.nokia.com· www.google.com· www.managementparadise.com· www.motorola.com· www.yahoo.comwww.digitalnuts.com·QUESTIONNAIRE1.name:…………………………………….. Date……………………………Contact no………………………Page 80
  81. 81. 2.sexMale ( )Female ( )3.what is your age?Below 20 ( )20-40 ( )40-60 ( )Above 60 ( )4.Occupation?Student ( )Service ( )Self employed ( )Others ( )5. Do you have Mobile?Yes ( )No ( )6.Please mention the factor that had influenced you have cell phone?Reference ( )Occupational ( )Speedy communication ( )Cost effectiveness ( )7.Which company you prefer?Nokia ( )Samsung ( )Sony ericsson ( )Page 81
  82. 82. Motorola ( )L.G ( )Others ( )8. Any specific reason for Buying Nokia Mobile?Bluetooth ( )F M ( )MP3/MP4 ( )Exapandable memory ( )Camera ( )9.What features you are looking for ?GPRS ( )EDGE ( )Tri band/ Quad band ( )Navigator ( )Any Others ( )10. Budget for purchasing a Mobile?1000-3000 ( )3000-6000 ( )6000-10000 ( )10000-14000 ( )More than 14000 ( )11. Which advertisement media puts more impact on your buying decision?T.V. ( )Magazines ( )Newspapers ( )Internet ( )Others ( )12.Degree of appearance and style of mobile for you?Page 82
  83. 83. Important ( )Neutral ( )Not important ( )13.Degree of reliability of mobile for you?Important ( )Neutral ( )Not important ( )Place: SignaturePage 83