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  1. 1. A RESEARCH REPORT OF BRAND POSITIONING OF NOKIA AT DELHI /NCR Submitted To: U.P. Technical University, Lucknow for the partial fulfillment of MASTER OF BUSINESS ADMINISTRATION Session -2008-10Submitted To: Submitted By:Mr. Anurag Sharma Qamruzzama Siddiqui(Faculty, Management) MBA III Sem. Roll No. 0828570021 INSTITUTE OF TECHNOLOGY & MANAGEMENT 12TH KM. STONE, MEERUT-BAGHPAT ROAD, PANCHLI KHURD, MEERUTE-MAIL: INFO@ITMMEERUT.COM, WEBSITE: WWW.ITMMEERUT.COM/WWW.ITMMEERUT.ORG
  2. 2. CONTENTS1. Executive Summary 12. Nature of the study 2-10 o Introduction o Statement of the Objective o Duration of the Study o Scope of the Study o Limitation of the Study3. Methodology and Research and Development 114. Company Profile 18-41 o Origin o Growth and Development o Product Profile o Present Strategy o Future Strategy5. Promotion Strategy for Nokia Mobile 50-52 o Promotion Plan o Types of Promotion6. Data Analysis & Data Presentation 537. Findings of the Study 708. Recommendations 769. Result and Observation (Conclusion) 78
  3. 3. 10.Questionnaire 8011.Bibliography 85
  4. 4. STUDENT DECLARATION I QAMRUZZAMA SIDDIQUI student of MBA hereby declaredthat the Project report titled "Brand Positioning of Nokia atDelhi/NCR” is completed and submitted is my original work. The imperial finding in this report are based on the data collectedby me. I have not submitted this Project report to U.P. TechnicalUniversity, Lucknow or any other university for the purpose ofcompliance of any requirement of any examination or degree.DATE QAMRUZZAMA SIDDIQUI MBA (IV SEM.)
  5. 5. ACKNOWLEDGEMENTThe research report will be incomplete without acknowledge giving mysincere, gratitude to all persons who have helped me in the preparation of thisdissertation.First of all, I thank “GOD ALIMIGHTY” for the blessings showered on methroughout this research project work, which has helped me in the successfulcompletion of the training.I take this opportunity to extend my sincere gratitude and profound obligationtowards my guidance Mr. Anurag Sharma (Faculty of MBA Department) forgiving me valuable suggestions & his inestimable help rendered to methroughout the research project and all other faculty members for without theirencouragement and continuing support, this research project would not havebeen possible. QAMRUZZAMA SIDDIQUI MBA (IV SEM.)
  6. 6. PREFACEResearch project is an integral part of management courses. Research projectexperience refers to knowledge and skills acquired by a student by participationin activities performed by professional. It is distinct from an education in whichtheoretical knowledge is acquired.The ability to develop solutions to practical through application of theoreticalknowledge is acquired by management students in the course of their researchproject . It also helps the students to develop professional competence andrelated skills as also to imbibe certain ethical values and norms expected ofprofessionals.The IT industry has entered to booming phase and cell phones are availableeverywhere like water. To monopolize market powerful projects areundertaken. This project is an endeavor in that direction.
  7. 7. EXECUTIVE SUMMARYThe wide ambit of the project, which is the internal part of the MBA course,guaranteed me extensive exposure to various concept of GSM,CDMA ,Flipand other camera and video technologies among other things. Apart from thesetechnical and non-technical aspect, I learnt the all important skills of teamwork ,official communication, work ethic and responsibility.During the course of training we were expected to use and apply our academicknowledge to gain a valuable insight with all its environmental operationalcomplexities. The said training offered a valuable opportunity to us to meetthe academic knowledge and transform it into practical one.I undertook the said training at Nokia. During the training I did a survey aimsat studying and analysis the current market scenario of mobiles, requirementsof the customers about the features and its pros and cons, future needs ofvarious mobile companies.I had the unique privilege to assume an assortment of role including problemidentification, theoretical framework, research design, experimental designand setup, data collection, analysis and interpretation, observing findings andproviding suggestions and recommendations etc. and also gained valuableexperience of working in a formal industrial setup which would go a long wayin building a sound career in marketing field in future. Also its is my heartfulgratitude to Nokia for providing me their world class facilities and delightfulwork environment and ambience.In the report I have put my best efforts to compile the data to the highest levelof accuracy and give my views to best of my judgment. 1|Page
  8. 8. NATURE OF THE STUDYThe development of IT market it is necessary to touch all areas andshould be available in rural areas as well as in urban areas, now thecompanies are focusing on brand perception and the strategies for thatare made and market research for the promotion is needed.To grab the rural market share, all the players are doing continuesinnovation on every front of marketing mix ranging form product, place,prince, promotions and packaging in various colors, sizes, flavors &packages.In the process of marketing distributors, retailers & consumers all areconsidered as major elements, on the motivation of these channels havegained a lot of importance. The contents of this report have beencarefully planned. All the analysis is based on primary data. The reporthas been written in lucid language and necessary data and chart are usedfor easy understanding.I am hopeful that the reader will find this project useful in preparingstrategy for rural areas. 2|Page
  9. 9. INTRODUCTIONNokia remains the worlds number one manufacturer of mobile phones,although its position is under threat from other manufacturers,particularly Sony Ericsson and Samsung. Nokia have the advantage ofoutstanding loyalty from its traditional customers, together with aperceived reputation for reliability and user-friendliness. One of Nokiasproblems is its difficulty in competing against electronics giants likeSony and Samsung with their unparalleled expertise in technologies likedigital photography and LCD displays. As these technologies becomemore and more important in modern phones, the gap between Nokia andits rivals becomes more apparent. Nokias response is to focus more oninnovative design and the concept of a "fashion" phone. However, at thetop end of the market, Nokia has a dominant position in the smartphonemarket with its Series 60 platform.Click on any of the Nokia phones below to read a full review (plusindependent reviews by consumers), and to find the best place to buy inthe UK.Nokia N-Gage - phone & games console in one!Nokia 1100 - entry-level phone, designed with simplicity and reliabilityin mindNokia 2100 - practical and fun phoneNokia 2300 - very basic phoneNokia 2600 - entry-level colour phoneNokia 2650 - odd-looking clamshell phone with basic featuresNokia 3100 - colour phone with glow-in-the-dark coverNokia 3200 - entry-level camera phone with custom coversNokia 3220 - fun camera phone aimed at teenagersNokia 3230 - review coming soon!Nokia 3300 - music phone with MP3 player, stereo FM radio, and adigital recorder 3|Page
  10. 10. Nokia 3310 - very popular pay as you go phoneNokia 3410 - replacement for the Nokia 3330, with lots of new featuresNokia 3510 - similar to the 3410, with polyphonic ringtones, but lackingJava bNokia 3510i - best of the 3410/3510 seriesNokia 3650 - multimedia phone with digital camera and video cameraNokia 3660 - enhanced version of the 3650 with 65k colour screenNokia 5100 - hard-wearing phone with colour display & built-in radioNokia 5140 - durable phone designed for sport and outdoor useNokia 5210 - hard wearing, versatile phoneNokia 6100 - advanced feature-rich lightweight phoneNokia 6170 - excellent value clamshell camera phone with metal caseand a good range of featuresNokia 6220 - business class phone that also includes features like anintegrated digital camera, video recorder and FM radioNokia 6230 - improved version of the 6220 with 65k colour displayNokia 6230i - review coming soon!Nokia 6260 - advanced clamshell-design smartphoneNokia 6310 - replacement for the classic 6210Nokia 6310i - adds triband and Java™ capability to the Nokia 6310Nokia 6510 - advanced phone, with similar features to the 8310Nokia 6600 - smart phone with 65k colour display, camera, camcorderand Symbian operating systemNokia 6610 - all the features of the 7210 in a more conventional designNokia 6610i - adding a digital camera to the 6610Nokia 6630 - first 3G smartphoneNokia 6670 - multimedia smartphone with megapixel cameraNokia 6800 - brand new phone with full QWERTY keyboardNokia 6810 - full QWERTY keyboard, Bluetooth wireless connectivityand high speed dataNokia 6820 - messaging device with QWERTY keyboard and 4|Page
  11. 11. multimedia featuresNokia 7200 - Nokias first clamshell phoneNokia 7210 - hot new phone with colour display, triband, Java™ andpolyphonic ringtonesNokia 7250 - similar to the 7210, but with an integrated digital cameraNokia 7250i - enhanced version of the Nokia 7250Nokia 7260 - Art-Deco inspired camera phoneNokia 7270 - fashion phone with MP3 ringtones and viceo cameraNokia 7280 - review coming soon!Nokia 7600 - 3G phoneNokia 7610 - multimedia smartphone with megapixel cameraNokia 7650 - amazing multimedia phone with colour displayNokia 8310 - most popular Nokia phone, widely regarded as the bestcurrently availableNokia 8910i - exclusive phone with stunning looksNokia 9210 - heavy-duty mobile communications deviceNokia 9210i - updated Communicator with more memory and improvedinternet supportNokia 9300 - review coming soon!Nokia 9500 - latest Communicator with more memory, improveddisplay, and WiFi support. 5|Page
  12. 12. OBJECTIVE OF STUDY 6|Page
  13. 13. OBJECTIVE OF STUDYThe purpose of research is to discover answers to questions through theapplication of the scientific procedures the main aim is to find outthe truth which is hidden and which is not been discovered yet .Our main objective is to find out the problems which are the mainbarriers in the promotion of NOKIA in NCR market. Our othersobjective are:• To find out the sources of promotion in NCR/Delhi market.• To find out perception of NCR/Delhi people about NOKIA brand• To locate the potential NCR/Delhi market for NOKIAThe research program is designed for the promotion of NOKIA inNCR/Delhi area and overcome the main barriers for brand in marketof NCR/Delhi , the work which is being done for this is described asfallows . To find out the areas where perception is positive and whereis negative ; initially we see that how many areas are positive andhow many are negative responded . Problem faced in the marketbecause they are in the in the direct contact of consumer and knowtheir liking and disliking in a better way, Problems and their solution inNCR/Delhi market ; ultimately we have to increase the sale of Nokiain this areas for this it is mandatory to remove the problems likeconsumer awareness . These problems could be find out by doingsurvey of that particular area . 7|Page
  14. 14. DURATION OF THE STUDY8 WeeksThe four phases into which the project was divided were 1. Retail Tracking 2 Weeks 2. Each Distributor survey 3 Weeks 3. Each SD survey 1 Week 4. Analysis of finding and observations 2 Week SCOPE OF STUDY 8|Page
  15. 15. We dont think that the signals in the last two years mean that Nokia lostthe leading role in the mobile market. Probably there is another truthbehind it: Nokia, as a lot of other brands, is still trying to digest the falldown of mobile forecast. The problem is always the same people talkenough using the mobile and all the sector needs is something that hasreal value for customers (business and consumer) and for corporate andthat speeds up market growth. If you see the numbers, you will see thatjust Samsung grew in last two years. Motorola, Ericsson, Sony Ericsson, Panasonic and others are stillfloating in the market. I think that without an answer to the mainquestion (what will make the values market speed up?), leaders likeNokia will have some problems to increase the leadership.In this report we have analyze that Nokia is having a very great positionin present scenario and in the coming years as well and other companieshave to do very well to remove the Nokia brand from the customersmindset. 9|Page
  16. 16. LIMITATIONS OF THE RESEARCHThis research was subjected to following limitation: 1. The survey cannot be termed 100% accurate due to lack of time and time and cost only 500 users and 50 retailers and whole sellers had been studied. Thus the scope of study is limited in terms of no. of respondent. 2. The lack of candidness of respondent towards answering the questionnaire in few cases may have reduced the accuracy of survey to some extent. 3. Despite the unbiased opinion and efforts the possibility of technical exceptions cannot be ruled out. 4. The statistical analysis with various automated tools might have computational errors. 10 | P a g e
  17. 17. RESEARCHMETHODOLOGY 11 | P a g e
  18. 18. RESEARCH METHODOLOGYResearch in common parlance refers to a search for knowledge. One canalso define research as a scientific and systematic search for pertinentinformation on specific topic. In fact research is an art of scientific topic.Some people consider research as a movement, a movement from theknown to unknown. Research is an academic activity and as such theterm should be used in a technical sense. Research comprises definingand redefining problems, formulating hypothesis or suggested solutions; collecting ,organizing and evaluating data making deduction andreaching conclusion ; and at last care fully testing the conclusion todetermine whether they fit the formulating hypothesis . social sciencedefine the research as the manipulation of things , concepts or symbols for purpose of generalization to extend ,correct or verify theknowledge aids in construction of theory or in the practice of an art.research is thus an original contribution to t existing stock of knowledge making for its advancement . The systematic approachconcerning generalization and the formulation of the theory is alsoresearch.Defining the Problem:Quite often we all here that problem half solved. This statement signifiesthe need research problem properly is a perquisite for any study and is astep of highest important. In fact formulation of problem is mireessential than its solution. In Brand Positioning by NOKIA our mainproblem is how to create the brand image of NOKIA in NCR/Delhiareas and strengths the roots of NOKIA Company in the industry. A partfrom this we have it cores the national capital region in a peoples way interms of approach. 12 | P a g e
  19. 19. Objective of researchOur main objective is to find out the problems, which are the mainbarriers in the promotion of NOKIA in NCR/Delhi market. Our othersobjective are: • To find out the sources of promotion for NCR/Delhi market. • To find out the Brand perception on people. • To locate the potential market for NOKIA.Research designA research design is the arrangement of conditions for collection andanalysis of data in a manner that aims to combine relevance to researchpurpose with economy in procedure. Here we have used descriptiveresearch design. Since the aim is to obtain complete and accurateinformation in the said studies.The process had to be started from the grass root level and it was veryimportant to understand the market for this IT product, which is veryfast in production, distribution and consumption.The entire process was more of a Descriptive Research type andincorporated a formal study of the specific problems faced by most ITcompanies an exploring the opportunities in the untapped market. Thesurvey was conducted on the basis of NOKIA’s product preference andevaluation of sales forecast in the new and underdeveloped marketincluding the evaluation of the advertising and promotional measures.The data collected had to be systematically arranged, analyzed andreported in a form congenial to take on the spot decisionsThe entire set of various segments in the population comprises all theretail store and outlets each retail store in the sampling frame constitute 13 | P a g e
  20. 20. the sampling unit in brief we can say overall sampling is based on 100people.Sampling designA sample design is a definite plan for obtaining a sample from a givenpopulation. If it refers to the technique or the procedure the researcherwould adopt in selecting items for the sample. Sample design may aswell lay down the no of items to be included in the sample. Theresearcher must prepare the sample design which should be reliable forresearch study.UniverseThe universe is finite universe where number of items is finite in thegiven problem the universe is infinite and whole NCR/Delhi area ofNCR/Delhi.Sampling unitDecision is taken after concerning the sampling unit, sampling unit maybe a geographical one such as state district village etc or a constructionunit such as house flat or it may be a social unit a club or school. Hereselected sampling unit for study is outlet of NOKIA.Source listIt contains all the items of universe in case of infinite universe it is alsoknown as sampling frame.Size of sampleIt refers to the no. of items selected from the universe to constitute asample. The size of sample is 100 people of NCR/Delhi. 14 | P a g e
  21. 21. Collections of primary dataThe task of data collection begins after a research problem has beendefined and research plan chalked out. The primary data are those whichare collected a fresh and for the first time and thus happen to be originalin character.We collect the primary data during the course of doing experiments. Ingiven problem the descriptive research is used so we can obtain primarydata either through observation or through direct communication withrespondent or through personal interviews.For collecting primary data we used observation method, interviewmethod and interview through questionnaire.FieldworkThe entire project was divided into five phases and each phase had itsindividual significance and supplemented each other.The four phases into which the project was divided were 1. Retail Tracking 2. Each Distributor survey 3. Each SD survey 4. Analysis of finding and observationsData Sources • BUSINESS STANDARD • ECONOMIC TIMES • BUSINESS & ECONOMY • BUSINESS TODAY • 15 | P a g e
  22. 22. ••• Questionnaire 16 | P a g e
  23. 23. INTRODUCTION OF NOKIA GROUP 17 | P a g e
  24. 24. COMPANY PROFILENokia is a world leader in mobile communications, driving the growthand sustainability of the broader mobility industry. Nokia connectspeople to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices andsolutions for imaging, games, media and businesses. Nokia providesequipment, solutions and services for network operators andcorporations. Nokia is a broadly held company with listings on fourmajor exchanges.The worlds first international cellular mobile telephone network NMTwas opened in Scandinavia in 1981 with Nokia introducing the first carphones for the network Or, that the worlds first NMT hand portable, theNokia Cityman, was launched in 1987. 18 | P a g e
  25. 25. ORIGINYear 1969Nokia introduced the worlds first 30-channel PCM (Pulse CodeModulation) transmission equipment conforming to the standards ofCCITT (Consultative Committee on International Telegraphy andTelephony).Year 1981The worlds first international cellular mobile telephone network NMTopened in Scandinavia with Nokia introducing the first car phones forthe network.Year 1982Europes first digital telephone exchange, the DX 200.Year 1984The worlds first portable NMT car telephone, the Nokia Talkman.Year 1987The worlds first NMT handportable, the Nokia Cityman.Year 1988The worlds first ISDN (Integrated Services Digital Network) exchangeconforming to CCITT standards, manufactured by Nokia, was broughtinto use in Finland.Year 1989The worlds first Actionist trucking mobile radio network was broughtinto operation. The worlds first fast-poll 14,400 bps (bits-per-second)modem. 19 | P a g e
  26. 26. Year 1990The worlds first Radio Data System (RDS) and Mobile Search (MBS)text pagers.Year 1991The first manufacturer to have a large-scale production-ready GSMphone.The worlds first genuine GSM call made using Radiolinjasnetwork, supplied by Nokia.Year 1992The Nokia 1011, the first digital handportable phone for GSMnetworks.The Nokia 100 series, the first family of handportale phonesfor all analog networks.Year 1993The first Personal Communications Network based on GSM 1800standard delivered by Nokia.The worlds first SMSC (Short MessageService Centre) taken into commercial use in Europolitans Nokianetwork.The worlds first credit card size cellular modem carddeveloped with AT&T Paradyne.Year 1994The first offical GSM call in the People4s Republic of China made on aNokia phone on Beijing TA4s network, supplied by Nokia.The firstEuropean manufacturer to start selling mobile phones in Japan.Theworlds first Data Communications Server (DaCS), providing fullydigital, fast access to corporate LANs.The worlds first digital cellulardata products, including the Nokia PC Card and the Nokia Cellular DataCard.Inmarsat made the worlds first satellite telephone call with Nokiaspocket-size GSM handset.The first manufacturer to launch series ofhandportable phones for all digital standards (GSM, TDMA, PCN, 20 | P a g e
  27. 27. Japan Digital). The Nokia 2100 was the worlds smallest and lightestfamily of digital products.Year 1995The worlds first integrated wireless payphone.The new joint venture,Beijing Nokia Mobile Telecommunications Ltd., was established: thefirst factory to manufacture large scale GSM systems and equipment inChina.Year 1996The first digital multimedia terminal in the world, the NokiaMediamaster.The Nokia 8100 product family, the first with aninnovative, ergonomically comfortable design. Chinese character shortmessaging service and Chinese user interface were launched in theNokia 8110 mobile phone. Nokia was the first manufacturer to offerboth simplified and traditional character sets in the same phone.The Nokia 2160, the first available dual mode AMPS/TDMA phone.The Nokia 9000 Communicator, the worlds first all-in-one mobilecommunications tool introduced at the CeBIT exhibition.Year 1997The worlds first four TETRA networks were delivered by Nokia.A new handset for the NMT 450 standard, the Nokia 540, which is theworlds first NMT phone with Navi Key.The next generation GSM product family, the Nokia 6100 series. Newstandards for operating times and a set of innovative industry-firstfeatures, including audio quality and an entirely new Profile functionwhich enables users to adjust the phone settings according to varioussituations. 21 | P a g e
  28. 28. Next generation half-rate hand portable for the digital PDC standard inJapan. With this introduction, Nokia is the first company to demonstratean entirely new, innovative feature for PDC handsets, which enablescalling by voice activation. The worlds first GSM dual band base station, the Nokia GSM900/1800 Dual Band BTS. This provides the possibility to integrateGSM 1800 transceivers (TRXs) into an existing GSM 900 Basestation(BTS). The first call on the Helsinki City Energy Companysdigital TETRA network was made. The network, called officially HelenNet by Helsinki City Energy Company, is the worlds first networktaken into operative use, according to the TETRA standard.The Nokia 3810, the first mobile phone specially designed for Asianconsumers.Year 1998Nokia delivered worlds first ETSI standard ADSL and IP network toTelecom New Zealand, thereby marking the start of commercialdelivery of broadband data services using the ADSL network.The Nokia 9110 Communicator, the first hand-held mobile devicesupporting wireless imagining.The Nokia 5100 series, the first mobile phones with user-changeablecovers. The worlds smallest NMT 450 phone, the Nokia 650, sets anew benchmark for NMT 450 technology. As a special additionalfeature and first in the market, the Nokia 650 has a built-in FM radio.Year 1999Nokia introduced the worlds first high-speed data terminal for wirelessnetworks: the Nokia Card Phone 2.0 brings about a four-fold increase indata transmission speed. 22 | P a g e
  29. 29. Nokia completed the worlds first WCDMA (Wideband Code DivisionMultiple Access) phone call through a public switched telephonenetwork.Nokia announced the worlds first media phone that is based on theWireless Application Protocol (WAP) in Mobile Media Mode. TheNokia 7110 dual band GSM 900/1800 media phone has been designedto enable easy access to Internet content from a mobile phone. 23 | P a g e
  30. 30. GROWTH AND DEVELOPMENTYear 2000Nokia introduced the worlds first IPv6-enabled end-to-end GPRSnetwork. Operators can use Nokia GPRS networks to provide theircustomers with new types of services that bring benefits offered byIPv6, such as global reachability and end-to-end security.Nokia introduced the worlds first TETRA WAP browser which bringspowerful WAP applications to TETRA professional mobile radionetworks. WAP over TETRA provides a new method of datacommunication for professionals. It enables real-time direct access tovarious customer and technical databases in only a few seconds.Nokia has combined the versatility of WAP with the power of TETRAto introduce the worlds first WAP services for digital professionalmobile radio users. The new WAP services have been developed in co-operation with Finnish companies Helsinki Energy and TeklaCorporation. Nokia and Sonera have completed tests that bring roamingcapabilities for IP traffic between GPRS networks for the first time inthe world.Nokia and Scandinavian Airlines Systems announced a partnership tobring Nokia mobile phones to the selection of goods sold on allinternational SAS flights. This is the first time mobile phones will besold on airplanes.Nokia launched the Nokia LiveSite platform, the worlds first WCDMAimplementation which is compatible with the latest 3GPP standards forthird generation networks.Nokia successfully carried out the worlds first WAP service over a trialWCDMA system. The tests were completed in Beijing, China, whereChinese language WAP services were transmitted via the WCDMA 24 | P a g e
  31. 31. system and radio network.Nokia, a founding member of the SyncML initiative, announced that ithad successfully demonstrated the worlds first wireless Internetsynchronization using the SyncL protocol.Nokia is the first vendor in the world to bring full mobile IP packet datafunctionalities into TETRA networks. Nokia TETRA IP significantlyenhances access to WAP services and more efficient WAP servicedevelopment is possible with new TETRA IP functionalities.Nokia announces worlds first GPRS roaming between M1 Singaporeand Cable and Wireless HKT Mobile Services, Hong Kong. This is thefirst announcement of its kind in the world for GPRS inter-operatorroaming.Year 2001Nokia introduces the industry first multimedia messaging solution, theNokia Artuse (TM) MMS (Multimedia Messaging Service) Center, ahigh-capacity platform for the next wave of mobile messaging. Thesolution enables operators to introduce multimedia messaging servicescombining new rich content, such as audio and video clips, photographsand images with the traditional text messaging.Nokia and the Finnish operator Sonera conducted the worlds firstWireless LAN roaming based on GSM technology. Sonera is makinguse of Nokia technology that allows mobile operators to offer broadbandwireless Internet services in Wireless LAN access zones.Year 2002Nokia succesfully made the first 3G WCDMA packet data calls betweenits commercial network infrastructure and terminals in its laboratories inFinland. The Nokia 3G WCDMA network and terminal used were based 25 | P a g e
  32. 32. on the commercial standard level known as 3GPP (3rd GenerationPartnership Research research project) Release 99 June 2001 version.This was the first time that packet data has been transmitted end-to-endon a commercial system based on the above mentioned commercialstandard.Year 2004Nokia announced that the worlds first cdma2000® 1xEV-DV high-speed packet data phone call was completed at Nokias CDMA productcreation center in San Diego. The call, achieving a peak data rate of 3.09Mbps, was made between a test set based on a commercially availableNokia 2285 handset upgraded with a Nokia 1xEV-DV chipset and aRacal Instruments, Wireless Solutions Group, 1xEV-DV basestationemulator. This chipset is the worlds first to support complete 1xEV-DVRelease C functionality. 26 | P a g e
  33. 33. Year 2006Using Nokias CDMA Dual-Stack handset, Nokia demonstrated theindustrys first Mobile IPv6 call at the 3G World Congress Conventionand Exhibition in November. The demonstration highlighted real-timestreaming video with seamless handoff between two CDMA accessnetworks using Mobile IPv6. Nokia announced the Nokia NFC (Near Field Communication) shell,the latest step in the development of innovative products for mobilecommunications, in November. With the Nokia NFC shell on theirphone, consumers will be able to easily access a variety of services andconveniently exchange information with a simple touch gesture utilizingNFC technology.In October, Nokia and TeliaSonera Finland successfully conducted theworlds first EDGE-WCDMA 3G packet data handover in a commercialnetwork.Achieving a first for the Asia-Pacific region, Nokia, MediaCorpTechnologies, M1 and the Media Development Authority of Singaporejointly showcased a live end-to-end mobile phone TV broadcast over aDVB-H (Digital Video Broadcast - Handheld) network at the NokiaConnection event in Singapore.Nokia and Texas Instruments Incorporated introduced the first pre-integrated and validated Series 60 Reference Implementation based onTIs OMAP(TM) processor-powered reference design in February. TheReference Implementation is available immediately to Series 60licensees. 27 | P a g e
  34. 34. Year 2007The Nokia 6630 imaging smartphone has as the first device in the worldachieved global GCF 3G WDCMA Certification. The certification wasachieved based on the requirements defined by Global CertificationForum (GCF), an independent industry body which provides networkcompliancy requirements and testing for GSM/WCDMA mobiledevices. SBS Finlands Kiss FM became the first radio station in theworld to begin Visual Radio broadcasts. This unique new conceptdeveloped by Nokia offers the listeners the possibility to give feedbackand to participate in programs easier than ever before.Nokia introduced a new product for secure mobile contactless paymentsand ticketing. The worlds first Near Field Communications (NFC)product for payment and ticketing will be an enhanced version of thealready announced Nokia NFC shell for Nokia 3220 phone. 28 | P a g e
  35. 35. PRODUCTPROFILE 29 | P a g e
  36. 36. PRODUCT PROFILE o 6301 o E51 o N81 8GB o N81 o N95 8GB o 5610 o 5310 o 6555 o 7900 Prism 30 | P a g e
  37. 37. o 7500 Prismo 8600 Lunao 6500 slideo 6500 classico 3500 classic o 2630 o 6267 o 2760 o 2660 31 | P a g e
  38. 38. THEORETICAL CONCEPTSMeaning of MarketingMarketing is societal processes by which individuals and group obtainwhat they need and want through creating, offering and freely exchangethe products and services of valve with others. For a managerialdefinition, marketing has often been described as “the art of sellingproducts’’, but people are surprised when they hear that the mostimportant part of the marketing is not selling! Selling is only tip ofmarketing iceberg.The American marketing association offers the following definition :marketing is the process of planning and executing the conception,pricing , promotion and distribution of ideas , goods and services tocreate exchanges that satisfy the individual and organizational goals.Marketing Research SystemMarketing managers often commission formal marketing studies ofspecific problems and opportunities. They may request a marketingsurvey, a product performance test , a sales forecast by reason, or anadvertising evaluation. It is the job of marketing researcher to producecustomer insight into problem. we define the marketing research as thesystematic design ,collection , analysis , and report of data andfindings relevant to specific marketing situation facing the company. 32 | P a g e
  39. 39. Consumer IdealogyPeople started realizing that mobile phones are becoming verypowerful and are likely to become a dominant device for CCC( communication, computing and content). Computing people got intoaction and now you have started seeing increasing number of computerlike phones appear in market. These devices even have full keyboardsfor interfacing with Internet and for e-mail. What is equally interestingis that these devices are suppose to be used for browsing Internet, inaddition to regularly getting your e-mail, and getting even documentson these devices. I have nothing against people using inappropriatedevices in some situation – like using a knife as a screwdriver - so weshould not be surprised about people trying to use phones for accessingtheir e-mail. In general, however, a phone is a poor substitute for a laptop computer. But more and more phones are taking exactly the formof a laptop. Just try putting a modern phone, particularly the clammodels, next to a laptop and you will see that the phone is nothing buta smaller version of a laptop.BrandingBranding is a major issue in product strategy. As Russell Hanlin, theCEO of Sunkist Grower, observed : ”An orange is an orange………is anorange. Unless……that orange happens to be Sunkist, a name80% ofconsumers know and trust. ”well-known brands command a pricepremium. Japanese companies such as Sony and Toyota have built ahuge brand loyal-market. At the same time, developing a brandedproduct requires a great deal of long-term investment, especially foradvertising, promotion, and packaging.Companies need to research the position their brand occupies in thecustomer’s minds. According to Kevin Keller, “ What distinguishes abrand from its unbranded commodity counterparts is the consumer 33 | P a g e
  40. 40. perceptions and feelings about the product’s attributes and how theyperform. Ultimately, a brand resides in the mind of the Consumers”.Product differentiationConsumer learning occurs in mature markets as well. Productdifferentiation is one such example. The classic view of productdifferentiation is that it is about discovery: finding a relevant, widelyvalued but unmet dimension. This approach implicitly assumes thatbuyers value some aspects of the product that have simply been ignored.Once all valuable aspects have been discovered, furtherDifferentiation is Impossible.A consumer learning perspective suggests, in contrast, thatdifferentiation can be successful even if no undiscovered dimension ofpreference exists. Differentiation is possible so long as a new dimensionexists that buyers can learn. The differentiating attribute need not berelevant. The strategy of “meaningless differentiation" is widespread.For example, Alberto Culver differentiated its Natural Silk shampoo byadding silk and advertised that it “puts silk in a bottle".Culver, however, later said that silk does nothing for hair. Throughoutthe evolution of the marketing concept, the basic notion thatCompetitive advantage can be created by giving customers what theywant has remained unchanged. All that has changed is the way in whichcustomers are satisfied. Todays organizations are gaining a deeperunderstanding of customers.They are learning about the goals they hope to achieve in their lives andthen creating powerful links between these goals and their brands. 34 | P a g e
  41. 41. Access to customersWhen a pioneering product appears in the market, it simply steals theshow and it captures more attention of the customers and distributorsthan any other late entrant. Moreover, advertisement of the product thattakes the lead is not cluttered by the messages from rivals. Even in thelater stag, the followers must continue to spend more on advertising toachieve the same effect as pioneers. The first entrants can also setstandards for distribution, occupy the best locations or select the bestdistributors, which can give it easier access to customers. For instance,Starbucks, as the pioneer, was able to open coffee parlors in moreprominent locations than its rivals.Switching costsSwitching costs arises when investments are required that would be lostwhile switching over to another product. To site an example, if one hasdeveloped skill in the traditional QWERTY keyboard, switching to amore efficient Dvorak keyboard would require relearning how to type,an investment that in many cases would exceed the expected efficiencygains.Pioneering products have the first chance to become the trusted brand.And the late entrants would need to convince the buyers to bear thecosts and risk of switching to an untried brand of unknown quality.Network externalitiesThe value to buyers of many high-technology products depends not onlyon their attributes but also on the total number of users. The value ofvideophone, for instance, depends on the number of people using it. Thefirst entrant surely has the opportunity to build a large installed basebefore competitive entry. This reduces the followers ability to introducedifferentiated products. 35 | P a g e
  42. 42. Operation/cost-based advantagesOperation/cost-based sources of pioneering advantage fall into threemain categories as follows:Experience effects and economies of scale. Taking the lead into themarket means that pioneers can build production volume andaccumulate research and market experience before any other rival. Thispotential cost advantage can be used to achieve higher margins or toprotect customer-based advantages through lowering prices todiscourage rivals from entering the market.Measuring competitive interactionIn previous studies, four approaches have been used to measure thecompetitive interaction between market-players: reaction functionestimation, menu approaches, conjectural variation models and timeseries casual approaches.CommunicationTo collude effectively, companies must send information to each other.Or else the cartel falls apart. Managers can simply call a competitor onthe telephone or meet in an office or some other discreet location.Companies have also used a number of less obvious means ofcommunication which include announcing pricing plans over onlinenetworks (US airlines were caught doing this using their reservationsystems): using “meet or beat" pricing announcements over publicbroadcasting media - these serve to establish price floors; organizingjoint trade events, symposiums, workshops and association meetings.ConstraintsIn order for the cartel to survive, it is essential that all of the playershave a similar sense of constraints. Consider the simple case where theactual sales potential for a given market is $500 million. Company A 36 | P a g e
  43. 43. correctly perceives the potential as $500 million but Company Bperceives the potential to be at least $ 900 million. Each of the twocompanies starts with a 50 percent market share. Company B will beerroneously tempted to engage in aggressive marketing in order toexpand its total revenue to absorb some of the perceived excess demand.While doing so, it will cut into the share of Company A. Company Awill, surely, retaliate and the covert cartel will crumble. A number offacilitators help to ensure that market constraints are similarly perceivedby competitors. This include the formation of trade associations,workshops, seminars, industry-level training courses and other forumsopen to all players within the same industry. These lead to discussion ofhistorical and future industry prospects and even in some cases to thepublication or sharing of data among cartel members.ConfusionConfusion requires that consumers, employees, regulators and potentialentrants should not fully understand the working o the cartel. Thisinvolves elaborate use of peripheral cues or signals. One of the mostcommon coordination schemes - Round Robin collusion - generatessuch signals. This scheme works as follows. Let us suppose there is acovert cartel of seven companies in the chemical industry. Al thecompanies sell to clients around the Pacific Rim. This is a case of multi-market contact. The same companies compete against each other atdifferent, rather disparate locations. Suppose all the seven companiesmeet and decide to increase prices throughout the region to monopolisticlevels. Company A will volunteer to increase its price in, say, Indonesia,citing a plausible reason. Its own market share will fall in Indonesia andeveryone elses share will rise. The other competitors will use the samestory in other Pacific Rim countries, each taking its turn as the “badguy" in order to help the others out. With the four Cs in place, a numberof companies have been able to maintain the illusion that there is no 37 | P a g e
  44. 44. collusion in their sector for a long time. They have been so successfulthat citizens in countries where no price-fixing laws exist often do notrealize that price-fixing is a daily event for most of the products theypurchase.The above article has been abstracted / condensed from the views of thefollowing professors in Mastering Marketing published by BusinessStandard in partnership with Financial Times. All rights of the authorsand publishers are reserved.* Philip Kotler, Professor of International Marketing at the Kellogg Graduate School of Management, Northwestern University* Gregory Carpenter, Professor of Marketing at the Kellogg Graduate School of Management, Northwestern University* Venkatesh Shankar, Assistant Professor of Marketing and director of Quality Enhanced Systems and Teams (Quest) at the Smith School of Business, University of Maryland* William Putsis, Jr, Associate Professor of Marketing at London Business School* Philip Parker, Professor of Marketing, Insead 38 | P a g e
  45. 45. PRESENT STRATEGIES1. For Nokia, it is a strategic issue to decrease churn & increase customer loyalty for this they have organized and prepared the solution based on the local culture of the countries they are operating in.2. Nokia tries to reach very good levels of performance by setting and meeting performance targets, transferring competence, providing customized service and setting up new reporting methods which provide more visibility on actual status & needs of the consumers.3. Nokia innovative technology guarantees not only the highest quality standards but also the most efficient network management system worldwide.4. Nokia regularly gives its engineers training in the will equipped laboratories. It also provides the trainees, study material which is clearly written and is very effective in the operations of the Co.5. Nokia strictly concentrates on the quality of service the stability of its products and the future proof technology in order to be the leader in telecommunications market.6. Along with some other leading lompanies in telecommunications like Mobile Com. In Austria Nokia has done comprehensive evaluation and optimization of GPRS core networks, for better and improved end-to-end performance of certain applications like MMS. 39 | P a g e
  46. 46. PAST STRATEGIES1. In early 1870’s, due to European industrialization and the growing consumption of paper and cardboards, Nokia started manufacturing paper and became successful.2. In 1920’s, sensing their growth prospects in rubber works, the company established a rubber factory and manufactured rubber for footwear, tyres, bands and raincoats.3. After the world war II, a company “FINISH RUBBER WORKS” bought the majority of shares of the co. “finnish cable works”. It was a company that had grown very quickly due to increasing need for power x-mission and telephone networks. In 1967 both the companies were merged with the Nokia group which head to the plantation of seeds of Nokias global success.4. In late 1960’s, Nokias electronics department started conducting research into semiconductor technology which was the beginning of Nokias Journey into telecommunications.5. In 1970’s most of the telephone exchange had analog switches for data x-mission sensing & need for digital switches, Nokia began developing digital switches, which became a success.6. In 1988, Nokia was a large Television manufacturer and the largest information technology company in the Nordic Countries.7. In 1995 their strategic goal was to sell 5,00,000 units, but they were able to sell 20 million. 40 | P a g e
  47. 47. FUTURE STRATEGIES1. To constantly produce and introduce new innovative product according to the changing needs of consumer.2. To invest in experience and expertise.3. The concept of 3 dimensional games and features like a screen sever of fish aquarium are very popular these days so the strategy should be continuously providing new features like this to its consumers.4. To promote sell and delivered products of services over a world wide web.5. Nokia thinks that there is a need to develop the most competent workforce in the industry by targeting strategic and systematic market development for all it employees. 41 | P a g e
  48. 48. INTRODUCTION OF CELL PHONES INDUSTRY IN INDIAAn exciting new world – dating services, online games, streamingvideo – is about to open up for mobile phone users as cell phoneservice providers gingerly tip-toe into the data business Calling allmobile phone users -- your world is about to change dramatically in afew months.If you’re an ordinary mobile user, youll be able to seek assistance onyour phone to find a house or a friend or to locate emergency services.Indeed, mobile phone technology could soon be used to run the mobileATMs of banks, to find yourself a husband (if you’re a woman) or wife(if you’re a man), play online games, zip photographs through yourmobile to your friends’ mobile phones, for video conferencing andaccessing streaming video and downloading short video clips.Indeed, the mobile phone data business is already here. Experimentswith a range of new enhanced short messaging service (SMS) uses arealready on – SMS for the interactive contests of TV channels and forcorporate surveys, dating services (you can chat with someone who fitsyour profile), to name a few. BPL Mobile, for example, tied up withMTV for choosing the winners in a VJ Hunt and also for free tickets toa Deep Purple live concert. It is now planning to tie up with Star TVand Radio Mirchi for similar contests. Not long ago, BPL Mobile alsotied up with Hindustan Lever to poll its subscribers on Rexona soap.Bharti has tied the knot with the Aaj Tak channel for polling Bhartissubscribers. 42 | P a g e
  49. 49. Indeed, it makes sense for mobile service providers to partner TVchannels and companies in SMS, because both sides share the revenue.For TV channels, SMS is a cheap and effective way of reachingviewers and helps make TV programmers interactive. For mobileservice companies, the deals spell money for jam – typically, they offeraround 20 per cent of the revenue from such deals to the channel if thetie-up generates over a million SMS, and they keep the rest.Nearly all cell phone service providers, including Bharti and BPLMobile, have also introduced some form of dating and friendship SMSservice (Track Ur mate, in Bharti’s case) after introducing 32 K SIMcards. In the works too is the introduction of multimedia messagingservices (MMS -- for example, you’ll be able to e-mail photos clickedon an in-built camera in your phone to another mobile number for Rs 6to Rs 7).Thats not all. Mobile phone technology will also be harnessed forseveral business uses. If youre a truck driver, you will be using yourmobile phone to keep your company informed of your truck’s position,without even making a call, thanks to a new SIM card being developedthat will transmit only data, not voice. And if youre a salesman at afast moving consumer goods company, you may be providinginformation to your office on inventory levels at a retail outlet andbooking orders by punching in a few numbers.As a result, SMS – the hottest new data application on the mobilephone – as we now know it could become passe, though it could comeroaring back in a new avatar. If a brave new world awaits mobilephone users, it’s because cellular service providers still earn most oftheir revenue from voice (telephone calls) -- and cut throat competitionand dramatic tariff cuts are forcing them to take a harder look at 43 | P a g e
  50. 50. generating extra revenue from mobile data-based value-added services.Two key developments are pushing service providers into India’sfledgling data market. One, global systems for mobile communications(GSM) -based cellular operators across the nation propose to launchthe general packet radio system(GPRS – 2.5 G) services in the nextfew months. The second is the introduction of CDMA-based limitedmobile services by business groups like Reliance which are set to offerboth 2.5G as well as 3 G services from late December.Unlike existing mobile phones, 2.5 G and 3 G offer platforms whichmake it possible to transmit data at very high speeds. This couldradically change the mobile data market, making innovative corporatemobile data services a reality and high speed e-mail a distinctpossibility. It would also give SMS a new lease of life because mobileusers will be able to send pictures and videos to other mobile users orelsewhere. Right now, pictures cannot be transmitted through SMS –though icons or graphics can – and SMS faces the disadvantage ofbeing restricted to a limited number of characters. Notes Kobita Desai,telecom analyst at Gartner, the research firm: “Content, which willhold subscribers, will be a key factor for the development of the datamarket. We will see a lot of niche content addressing the needs ofvarious market segments.”While few are ready to share their data market strategy, India’s mobilephone service companies are unquestionably either working on, orhave launched, the following:A GPRS-powered sales force automation system for FMCG as well asinsurance companies is being developed. Salesmen or saleswomenwill, for instance, be able to update new orders on their GPRS-enabledphones and transmit the data to their head offices or warehouses, so 44 | P a g e
  51. 51. ensuring better inventory management and quick delivery. Sales staffcan also get into the warehouse database to check whether the productsordered are available or not. And insurance agents can key in the datarequired for a new policy on a GPRS-enabled mobile phone and, withthe press of a button, send data to the central office where the policywill get processed in double quick time.A fleet management system where truck drivers will be able to usetheir mobile phones to transmit data on their positions to the centralmonitoring office. The Bharti group held discussions with truckingcompanies and large FMCGs to sell its fleet management system, butrealised that companies were concerned that the phones could bemisused by drivers to make personal calls. So the Bharti group is nowworking with vendors to develop a SIM card that can transmit onlydata.BPL Mobile realised that GPRS connectivity can be used as areplacement for small aperture satellite-based systems (V-sats) for datacommunications. It has tied up with Zee. Over 200 of Zees PlayWinlottery mobile kiosks spread across Mumbai are powered by GPRSlinks to a central location where the draw takes place.Talks are also on with banks to use GPRS connectivity for runningmobile ATM centres. Says a senior BPL mobile executive: “V-satconnectivity has numerous reliability problems. GPRS connectivity isan answer to these. This usage is peculiar to India.”CDMA-based operators will be launching the latest CDMA2000ixphones with 3G services. These include position location services (foraround Rs 3), picture downloads (Rs 2 to Rs 3), video conferencing, 45 | P a g e
  52. 52. on-line gaming, streaming video and short video clip downloads.Expect too a range of e- commerce solutions.Cellular service providers, meanwhile, are convinced that the SMSmarket will explode. BPL Mobile, for example, expects its SMS trafficto go up from 1.2 million paid messages a day to 2 million at the end ofthis year. Hutchison Max too sees a huge opportunity here. SaysSudarshan Banerjie, CEO of Essar-Hutchison in Delhi: "About 5 percent of our revenues come from data and the number of messages sentis virtually doubling every year". Hutch is planning to slash SMS pricesto Rs 1.20 (from Rs 1.50) in Delhi to expand the market further. Dataservices accounted for about 2.5 per cent of the Bharti groups revenuelast year; this year, the figure is expected to go up to 3.5 per cent.To be sure, the number of SMS messages sent every month persubscriber is much lower than the world average of 40 and thePhilippines average of 200. But US research firm Gartner says thatIndian subscribers who use SMS regularly already send over 40messages a month and the numbers are going up dramatically everymonth (see chart).They could go up by leaps and bounds --- mobile service providers seea rich vein to tap in vernacular language SMS services. Theyve joinedwith mobile phone manufacturers to introduce vernacular SMS. Bharti,for instance, is experimenting with Hindi, Bengali and Gurmukhi andNokia has introduced a phone with vernacular key pads and softwarethat recognises Indian languages. Says Anil Nayar, head of mobility atBharti Televentures: "Vernacular languages will go a long way inpushing SMS usage in the country." 46 | P a g e
  53. 53. With all this going on, Gartner thinks that in 2006 data services willaccount for 17 per cent of the revenue of mobile service companies, upfrom a mere 3.75 per cent last year. A Merril Lynch report forecaststhat Indian operators will earn over US $ 76 million (over Rs 372crore) from data by 2005, a figure that represents a compound annualgrowth rate of 69 per cent from 2000 revenue (see chart).Expanding the data market makes economic sense for mobile servicecompanies. Margins in SMS are a high 90 per cent or so of the tariff.Thats because service providers dont have to share revenue from SMSwith the government, unlike in the case of voice calls. The only costincurred is on setting up a messaging centre. Says Rohit Bhatia, headof new products at the Bharti group : "Earlier, data applications wereseen as something good for the brand and as something that wouldreduce customer churn. But with voice tariffs coming down, dataservices are seen as contributing to revenue."Still, the mobile data market has its fair share of Cassandras too. Says asenior executive of a US-based telecom company: "Considering thelow penetration of phones in India, the first step is to ensure that morepeople have a phone for simple voice usage. Data is a luxury, meantfor advanced markets, not for India."The mobile data business is, of course, in its infancy in developedmarkets. In Europe, mobile data accounts for around 11 per cent ofoperators revenues. In the US, the figure is as low as three per cent.And even in markets like China, data weighs in with less than two percent of revenue. What is more, despite well over a billion plus mobilesubscribers in the world, only five million are hooked on to 3G phones. 47 | P a g e
  54. 54. While voice will still remains the predominant source of revenue atleast for the next few years, the potential revenue from data servicescant be ignored. So most mobile phone operators are using acombination of strategies -- aggressive pricing, building specialisedGPRS-based products for the corporate sector relevant to India andpromoting value-added SMS services -- to expand the data market.Still, GPRS hasnt yet taken off in India. BPL Mobile, for example, thefirst to launch GPRS in India, has some 4,000 subscribers in Mumbai --its goal this year is 10,000 -- partly because GPRS-enabled mobilephones werent ready in the first few months. But the company is stillhopeful.Says F B Cardosa, president and CEO of BPL Mobile : "We expect toincrease revenue earnings from non voice (including GPRS) servicesfrom 10 per cent of the revenue to 15 per cent by the end of this year."Thats close Gartners 17 per cent research research projection for dataservices in 2005.So mobile data may still be a fledgling business here, but expect thisfledgling to grow up pretty quickly.Asia will lead the chargeMobile data may not as yet provide substantial revenue to celloperators worldwide, but that could change dramatically. A MerrilLynch report forecasts that revenue from mobile data (including 3 Gservices) will more than double to 27 per cent of a cellphone serviceprovider’s revenue in Europe by 2005, from around 11 per cent in2002. What is more, around 17 per cent of this will come from datacarried on 2.5 and 3 G services. 48 | P a g e
  55. 55. In the US, mobile data has yet to catch on. But the US mobile datamarket too is expected to grow substantially, if not dramatically. TheMobile Data Association expects the number of cellular data users totop 28 million by the end of 2003 and generate over US $ 2.6 billion inrevenue.Leading the mobile data charge will, however, be Asia. i-Mode,DoCoMo’s sweepingly successful service in Japan, expects 25.8 percent of its revenues to come from data by 2002 end, though the hotgrowth rates could plateau.In China, cellular service providers get just two per cent of theirrevenues from data, but the market could explode. The Yankee groupestimates that China’s wireless data market will balloon to US $ 5.68billion by 2005 from only $ 2.72 million in 1999. It expects as much as40 per cent of mobile phone users to use data.In the Philippines, SMS accounts for over 22 per cent of an operator’srevenue (on an average, a cellphone service subscriber sends 11.2 SMSevery day, thanks to low prices and the free SMS packages operatorsoffer).Note too that around Asia and in the US, CDMA-based cellular serviceoperators who offer 2.5 G services have taken a lead over operatorswho offer GSM-based GPRS services in the mobile data arena. That’sbecause their services are cheaper and handsets are easily available andare more affordable.In Korea, for instance, Morgan Stanley research research projects that9.2 per cent of S K Telecom’s (which offers CDMA services) revenuewill come from data by 2002 end. It also believes that over 12.8million Koreans will subscribe to CDMA 2.5 G-based services, withthe figure going up to 19.7 million by 2003. 49 | P a g e
  57. 57. PROMOTION STRATEGIES FOLLOWED BY NOKIAPROMOTION:Promotion is an element in an organization Marketing Mix thatserves to Inform, persuade and/or remind people about anorganizations or individuals goods, service, Image, ideas,community, involvement or impact on society. Promotion is usedin hopes of influencing the recipients feeling beliefs, or behaviour,through any form of communication.Promotion Plans:Promotion for Dealers: o Whole Seller: Promotion by Nokia to whole seller have given the credit facility and discount in bulk purchase. o Retailer: Commission and after sales service give to the retailer to promote their product. PROMOTION OF CUSTOMERSNokia has given to the different product to the different customer usingdifferent techniques of promotion like product differentiation. 51 | P a g e
  58. 58. TYPES OF PROMOTION FOLLOWED BY NOKIA1. Advertising2. Personal Selling3. Sales Promotion4. Publicity5. Public Relations6. Word of Mouth7. Direct Mail8. Tele-Marketing9. E-marketing 52 | P a g e
  59. 59. DATAPRESENTATION 53 | P a g e
  60. 60. DATA PRESENTATIONCompetitive Analysis On the basis of the QuestionnaireQ1. Do you have Mobile phone?Yes 85No 15 90 80 70 60 Yes 50 No 40 30 20 10 0Source: Interview of respondents through questionnaire 54 | P a g e
  61. 61. Q2. Which is the most popular Brand? No.of replies NOKIA 11% SAMSUNG 2% 4% SONY 13% 42% ERICSSON MOTOROLA 28% LG PANASONICSource: Interview of respondents through questionnaire 55 | P a g e
  62. 62. Q.3 Have you ever purchased Nokia handset?Yes 70No 30 70 60 50 Yes 40 No 30 20 10 0Source: Interview of respondents through questionnaire 56 | P a g e
  63. 63. Q.4 what are the qualities you look for in a Mobile Phone? STYLE Percentage in favour DESIGN BRAND 5% 20% 20% PRICE 20% 25% 10% TECHNOLOGY POPULARITYSource: Interview of respondents through questionnaire 57 | P a g e
  64. 64. Q5. Among the following of latest Nokia handsets, which all have youheard about and you want to purchase? Nokia 1100 Nokia 2300 20% 13% Nokia 36502% 15%8% Nokia 7210 14% 5% 10% Nokia Engage 13% Nokia Communicator Nokia 7650Source: Interview of respondents through questionnaire 58 | P a g e
  65. 65. Q6. Rank the following models of Nokia handsets in order of yourpreference for personal use. Percentage of Choices in favour Nokia 1100 Nokia 2300 17% 6% 6% Nokia 3650 1% Nokia 7210 17% 12% Nokia Engage 1% Nokia 12% Communicator 28% Nokia 7650 Nokia 6610 and 6610i Nokia 6600Source: Interview of respondents through questionnaire 59 | P a g e
  66. 66. Q.7 What is the reason behind your preference for the above particularHandset? percentage of views 11% 21% Price Quality Technology 32% 12% Design 24% StyleSource: Interview of respondents through questionnaire 60 | P a g e
  67. 67. Q8. Which is the most popular market player according to you? percentage of views 12% 2% Nokia 10% Samsung 47% Panasonic Sony Ericsson 29% OthersSource: Interview of respondents through questionnaire 61 | P a g e
  68. 68. Q9. What is the reason behind your preference for the above particularMarket player? percentage of views Advertising 8% 25% 16% Quality Assurance Price affordability 20% Resale value 31% Warranty periodSource: Interview of respondents through questionnaire 62 | P a g e
  69. 69. Q10. For how long you are using your handset? Percentage of Views 18% Less than 6 months 45% More than 6 but less than 1year More than 1 year 37%Source: Interview of respondents through questionnaire 63 | P a g e
  70. 70. ANALYSIS OF DATAMarket leadersA paradoxical situation prevails in the fledgling cellular mobile servicesindustry in India. On the one hand, the service providers havecollectively brushed aside negative growth of the past two-three yearsand are quite gung-ho about prospects. Their combined subscriber basehas crossed the 2.5 million mark last month and despite threat of localcompetition from government-controlled players like MTNL, theseservice providers are a happy lot. One would automatically expect thehandset providers to be on Cloud Nine. Things could not have beenbetter for these global players as an Indian competition is yet to emergein their territory and every time a mobile service provider lands acustomer, they should benefit too. Curiously, the euphoria seems tohave bypassed them!Be it the rugged Motorola, the sleek Nokia, the sturdy Siemens or thehighly sophisticated Ericsson, a pall of gloom seems to have envelopedall these giants in the competitive mobile handset industry. Make nomistake. It is the large and unruly grey market that has wiped away thesmile from their faces at a time when the cellular service industry hasalready gotten on to the high growth expressway. Says RanjitjeevSingh, Director (Consumer Products) at Ericsson India Limited:"Indian subsidiaries of the global cellular handset brands are finding itdifficult to improve their sales. We have no real estimate of the greymarket and are in no position to plan ahead because of this."He is dead right. It is almost impossible to measure the share that thegrey market takes way from the cellular handset makers. Singh hazardsa safe guess to peg it anywhere in the region of 65 to 70%. Naturallythe Indian subsidiaries of Ericsson, Nokia, Motorola and a host of othermanufacturers are left scrambling for a nibble of the already shrunken 64 | P a g e
  71. 71. cake. The overbearing presence of the grey market has anotherinteresting facet. It has unleashed a price war where, at the end of theday, the losers and the gainers are one and the same company. Soundsillogical, isn’t it?Well, if one were to be aware of the skewed import policies that thegovernment puts in place, one wouldn’t be surprised at the abovestatement. Currently, the price was is not between rival brands, butbetween Ericsson and Ericsson, Nokia and Nokia, Motorola andMotorola, Siemens and Siemens and Samsung and Samsung. While theIndian subsidiaries of these transnational companies watch helplessly,their parents make hay on the strength of highly competitivepricing which is, as compared to the products available through theIndian subsidiaries, at least 30 per cent cheaper, says Ajay Sachdev,Head of Marketing, Motorola India Ltd.The plain fact behind the price differential is that while Indiansubsidiaries are subjected to an accumulated import duty of 26-28 percent, hiking the price of handsets in that proportion, their parents areexempt. The mobile handsets from foreign shores are smuggled intothe country by grey market operators. The impact of this grey marketoperation is huge. Frustration has come to stay for the Indian managersof these global brands. Queries about the current scenario solicit thepredictable volley of accusations against the governments importpolicy. By imposing a high import duty whom is the governmentprotecting? The handsets are neither manufactured nor assembled inIndia.In fact, government is caught in its own web. Since high tariff level hasresulted in large scale smuggling of handsets, the government losesalmost 70 per cent of the revenue it would have collected. By a logical 65 | P a g e
  72. 72. extension, a lower tariff would not only enable the Indian companiescombat the grey market, it would also increase revenues. The recent 5%reduction in basic import duty on handsets is indicative that realizationhas dawned. However, in the current market matrix this tariff cutremains a futile exercise as the grey market continues to be cheaper byalmost 30%.But then, skewed policies seem to characterize the Indian government.Barely a year ago the government demonstrated its strange ways bywithdrawing duty exemption on import of wireless-in-local loop(WLL) to "protect the domestic industry", in full awareness that therewas none to protect. The government’s frequency allocation policy tooadds to market inefficiencies. In the developed economies, serviceproviders are allowed to operate on two, even three frequency bands –900 MHz, 1800 MHz and 2700 MHz - whereas in India only the 900Hz frequency band is available to operators. As a consequence, thehandset vendors worldwide have phased out single band handsets infavor of dual and treble band phones. The technological backwardnesshas proved to be a boon for grey market operators who smuggle thediscarded handsets and dump them in India at a throwaway price,ranging from Rs.3500 to Rs.5000.If government is aiding grey market by creating inefficiencies in themarketplace, the service operators are not far behind either. Theythemselves restrict the proliferation and popularity of handsets byrefusing to pass on the benefits of falling operational costs to thecustomer. Obsessed as they are with the ‘business class’, the serviceproviders have stubbornly maintained high tariff levels. Though afterswitching over to revenue share, the cost of providing a mobileconnection has fallen to 1/5th of that of a landline connection, theairtime charges for cell phone users remain 12 times higher as 66 | P a g e
  73. 73. compared to fixed phone users. In the past, high license fees justifiedhigh airtime rates. At present, the metro cellular operators need notbring down rates as their networks can hardly accommodate morecustomers. But since the high end user business class is anywayhooked to cell phones, investment in network expansion is not apriority for most of the operators.The average middle classes have, as a result, kept away from cellphones. The loser again is the handset vendor. If the turnoverincreases, the cost gets amortized over a period of time. In that case wecan afford to lower the prices and still maintain the profit levels", saysRanjitjeev Singh. That, in turn, will help them compete with the greymarket, albeit from a disadvantaged position.That scenario appearing remote, the handset vendors have embarked onother marketing strategies. The buzzwords of this strategy are‘replacement’ and ‘segmentation’ of the handset market. "The point isto outwit the grey market operators by offering tailor-made handsets toeach customer segment," says Ajay Sachdeva. At the user level themarket is maturing fast. Clear segments of users are emerging whichare differentiated on the basis of tariff, service or handset types.Nokia was the first to recognize this segmentation. Subsequently, thecompany launched a plethora of feature-rich handsets. The strategywas to tap the replacement market. People were fed up with black andgrey handsets. They wanted something new. Nokia made this newnessvisible by introducing many colors as well as shapes. As a result it wasable to corner almost 90 per cent of the replacement market, whichtypically accounts for 15 per cent of the total subscriber base in thecountry. In the process, it not only beat the grey market, it beat everyother vendor by cornering over 30 per cent of the market share. 67 | P a g e
  74. 74. Though it has launched handsets for other segments as well, Nokiacontinues to focus on entry-level and mid-level customers, whichaccording to its head of marketing and strategy, Sanjeev Sharma, arethe fastest growing segments.Ericsson, on its part, was focused more on the technology or on whatwas inside the handsets, and so lost its No. 1 position to Nokia by theend of 1997. The company has now woken up to the new mantra.According to Singh, Ericssons strategy revolves around ART where Asignifies first-time users, R stands for techno-savvy users who want toreplace their handsets with feature-rich colorful ones and T denotesstyle-lovers. In keeping with this strategy Ericsson has launchedA1018, R320, R190, T28 and T10. Ericsson is also banking on everreducing lifecycle of handsets. As Singh says, the average lifecycle of ahandset has already come down to 7-8 months. With simultaneousglobal launches and competitive pricing becoming the order of the day,the grey market will have problems with ever more finicky customers.Similarly, as a result of a global study commissioned by Motorola, thecompany has concluded that there are four broad segments - (1) thetechno-savvy, who like to be at the cutting edge of technology and sowant features like e-mail and WAP on the handset, (2) theproductivity-focused, normally onto their second phone, who likefeatures such as stock-market quotes on the cell phone, (3) the peoplefocused on style and glamour, the status-conscious who flaunt theirhandsets as if they were fashion accessories and (4) the security-conscious, who would have a cell phone to know if the kids and thewife are okay. Motorola also plans to appoint dealers in crucial cities.This is aimed to help the service retailers keep well stacked withhandsets, so that customers no longer complain about the scarcity oftheir favorite model.Hopefully, the handset vendors will be able to outwit the grey market.Whether they can marginalize it for good, in spite of the government 68 | P a g e
  75. 75. and the smug service-providers, still remains to be seen. Till suchtime, the bells will continue to toll for the grey market. 69 | P a g e
  76. 76. FINDINGSOF THE STUDY 70 | P a g e
  77. 77. FINDINGS OF STUDYPosition of Nokia Brand in consumer’s mindThe world of parity has hit the mobile phone market just as it has manyother technology product categories. The products range from the simpleto the complex, but every manufacturer offers, of course, the latestfeatures. Leapfrogging in sales between brands frequently occurs basedon design. But overall the market is predictable, with Nokia, Motorola,and Ericsson fighting it out at the top and several less successful brandslike Samsung, Philips, Siemens and Panasonic trying hard to makeinroads into their top competitors market share. So what makes thedifference between the most successful and less successful brands? Itcertainly is not what product features are offered. How, then, doconsumers choose? The answer seems to be what the brand names meanto them. Nokia Group the Finland-based manufacturer of mobilephones, has been steadily working on its corporate brand name and themanagement of consumer perceptions over the last few years. Its effortshave paid off, because it is now the number one brand in many marketsaround the world, effectively dislodging Motorola from that position.The brand has been built using the principles described above, and hasbeen consistently well managed across all markets. Nokia has succeededin lending personality to its products, without even giving them names.In other words, it has not created any sub-brands but has concentratedon the corporate brand, giving individual products a generic brandpersonality. Only numeric descriptors are used for the products, whichdo not even appear on the product they. Such is the strength of thecorporate brand. Nokia has succeeded where other big brand nameshave so far failed, chiefly by putting across the human face technology-taking and dominating the emotional high ground. It has done so in thefollowing way. 71 | P a g e
  78. 78. Nokia Brand ImageNokia has detailed many personality characteristics for its brand, butemployees do not have to remember every characteristic. They do,however, have to remember the overall impression of the list ofattributes, as you would when thinking about someone you have met. Asthe focus is on customer relationships, the Nokia personality is like atrusted friend. Building friendship and trust is at the heart of the Nokiabrand. And the human dimension created by the brand personalitycarries over into the positioning strategy for the brand.Nokia Brand PositioningWhen Nokia positions its brand in the crowded mobile phonemarketplace, its message must clearly bring together the technology andhuman side of its offer in a powerful way. The specific message that isconveyed to consumers in every advertisement and marketcommunication (though not necessarily in these words) is "Only NokiaHuman Technology enables you to get more out of life"In many cases, this is represented by the tag line, "We call this humantechnology". This gives consumers a sense of trust and consideration bythe company, as though to say that Nokia understand what they want inlife, and how it can help. And it knows that technology is really only anenabler so that you-the customer-can enjoy a better life. Nokia thus usesa combination of aspirational, benefit-based, emotional features, andcompetition-driven positioning strategies. It owns the "human"dimension of mobile communications, leaving its competitorswondering what to own (or how to position themselves), having takenthe best position for itself. 72 | P a g e
  79. 79. Nokia Product DesignNokia is a great brand because it knows that the essence of the brandneeds to be reflected in everything the company does, especially thosethat impact the consumer. Product design is clearly critical to thesuccess of the brand, but how does Nokia manage to inject personalityinto product design? The answer is that it gives a great deal of thought tohow the user of its phones will experience the brand, and how it canmake that experience reflect its brand character. The large displayscreen, for example, is the "face" of the phone. Nokia designers describeit as the "eye into the soul of the product". The shape of phones is curvyand easy to hold. The faceplates and their different colors can bechanged to fit the personality, lifestyle, and mood of the user. The softkey touch pads also add to the feeling of friendliness, expressing thebrand personality. Product design focuses on the consumer and hisneeds, and is summed up in the slogan, "human technology."Nokia now accounts for over half of the value of the Finland stockmarket, and has taken huge market share from its competitiors.According to one brand valuation study carried out in mid-1999, itranked 11th on the worlds most valuable brand list, making it thehighest-ranking non-U.S. brand. As has been pointed out, it has unseatedMotorola. Nokia achieved its brilliant feat through consistent branding,backed by first-class logistics and manufacturing, all of which revolvearound what consumers want.Some Nokia Phones with latest featuresOne of the most impressive handset is the Nokia 9210i Communicator(Price: 37,599), a phone cum personal digital assistant (PDA). At 244grams it is almost obese compared to other PDAs but it has an awesomerange of features. The company bills it as a portable office whichincludes phone, fax, e-mail, calendar, contacts, Word Processor, 73 | P a g e
  80. 80. Spreadsheet, Presentation viewer, WAP, WWW. You can edit and sendWord Processor and spreadsheet documents, view MS PowerPointslides in full colour.It has a high quality 4,096 color screen. Photos can be transferred from acompatible digital camera, viewed and then forwarded by fax or e-mail.You can also view streaming videos on the Internet and flashanimations.There is however a snag, Worksheets can be created on it but thepresentation tools can only view previously loaded PowerPoint slides.As if to make up for these, there is the streaming software from RealNetworks (audio and video player) to view internet media content. The9210i Communicator effectively serves as an office in your pocket.Another latest in the Indian market is the Nokia 6610 (Price: Rs16,399). One of its main features is the multimedia messaging service(MMS) which allows users to incorporate sound, images, and other richcontent into their messages. The model also has an integrated FM radio.Its triband GSM access means ability to connect anywhere in theworld, anytime. Plus there’s pre-installed Java applications on theNokia 6610 which include a Converter (for currencies, temperature,weight and other measures) and a Portfolio Manager (to track stocksand other securities). The calendar notes can take up to 250 entries andthe Phonebook Memory (phone + SIM) up to 300 entries.Another model selling well in the Indian market is the Nokia 7250(Price: Rs 26,299). It has an integrated digital camera allowing you tocapture, store and share pictures. Plus there’s MMS, triband GSM, anintegrated stereo FM radio, downloadable personal applications viaJava technology, WAP 1.2.1 Browser. Memorywise, the phone booksupports up to 300 entries, SMS up to 150 text messages and calendarnotes up to 250 entries. Thanks to an ultra thin battery, the Nokia 6100 74 | P a g e
  81. 81. (Price: Rs 20,099) is one of the slimmest full featured phones ondisplay in Indian shops. Features include MMS, downloadable Javagames, WAP 1.2.1 browser, delightful polyphonic ring tones, tribandGSM support. The 6100 even has an electronic wallet, though it will besome time before people start using this feature in India. The 6100sports a 4,096-colour, 128x128 pixels resolution screen and its largedisplay is handy, whether you are typing SMS messages or viewing anMMS message.The Nokia 3650 (Price: Rs 23,399) is equipped with an integratedvideo player and a RealOne Player to download video clips. Also, itsintegrated digital camera can capture images at 640 x 480 resolutionand the phone display can be used as a viewfinder. It has high-endfeatures like Bluetooth9 and Infrared capabilities which allows wirelessconnectivity to your PC and laptop. You can download new Javagames and applications. Data transfer can be as fast as 43.2 kilobits persecond.The Nokia 8910 (Price: Rs 35,499) is heavy on looks with a titaniumcasing and chrome finish keys. Activating the side triggers sets thephone in motion, rising from the handgrip cover to put the many phonefunctions at your fingertips. Features include Voice Commands,Bluetooth wireless connectivity to other compatible devices, mobileInternet connectivity, Organiser and To-Do lists, on top of your pre-requisite phone functions.Nokia 7650 (Price: Rs 26,999) is a phone and colour camera rolled intoone with MMS capabilities. It has 3.6 MB of memory to store files andapplications. The 7650 comes with only a WAP (Wireless ApplicationProtocol) browser, limiting you to text-based content. It has infraredand Bluetooth capabilities for connecting to PDAs and notebookcomputers. 75 | P a g e
  82. 82. RECOMMENDATIONS 76 | P a g e
  83. 83. RECOMMENDATIONS1. Company should invest money on advertising through media, Internet and personal selling to promote the products, to increase awareness in the market.2. Holdings on outlets and publication in the prominent magazines help in increasing its awareness among the consumer to evoke the demand of their brand.3. Policy of replacing problem arising sets should be done timely and the retailer should be accommodated immediately.4. More attention and concern should be given to the highest selling outlets of NOKIA and the chain should reach to the consumer as well.5. Allurement and discount schemes should be given to the highest selling outlets of NOKIA and the chain should reach to the consumer as well.6. More glow sign and broad should be installed.7. Contests sweep stakes and games should be arranged on regular basis for the consumer involving incentives and prizes.8. The sales executive should go to each outlet of their route once in a week and try to cover outlet that are in a distributor network.9. The net and free sample scheme should be the same for net every retailers by the company.10. Some credit facilities should be given to good sales providing outlets.11. The company should try to influence the wholesalers of NOKIA in the city offering more profitable scheme and confidence building measures. In metropolitan areas.12. Company should make proper schedule or particular days for hearing the complaints of their customer and retailers.13. No of outlets and service centers should be open. 77 | P a g e
  84. 84. CONCLUSION 78 | P a g e