A study of customer reletionship management with respect to mumbai city sli
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LIST OF CONTENT
Sr
no
Topics Page
no
Executive Summary
1 INTRODUCTION 8
1.1 Need for study 9
1.2 Objective of study 9
1.3 Literature review 9
2 METHODOLOGY
2.1 Research Design 11
2.2 Data Collection Methods 11
2.3 Sampling 11
2.4 Field Work 12
2.5 Data Analysis 12
3 CRM & NOKIA
3.1 CRM 13
3.2 Benefits of CRM 14
3.3 CRM in business2business 14
3.4 CRM in business2customers 15
3.5 Nokia India 15
3.6 Manufacturing in India 19
3.7 The Nokia way 20
3.8 Nokia’s Customer Policies 21
3.9 Understanding its Customers 22
3.10 Network Operators 24
3.11 list of smart phones launched by Nokia(since 2011) 25
3.12 Nokia’s way towards CRM 27
3.13 Product Development 28
3.14 Objectives of Nokia India CRM 29
3.15 Distribution channels 31
3.16 Ease of Servicing 32
3.17 Ease of Product knowledge 33
3.18 Stations of Experience 33
3.19 Nokia Sales Interface 35
2. 3.20 Computer aided CRM 36
3.21 NOKIA MARKETING MIX 37
3.22 Nokia market share in India 40
3.23 SWOT ANALYSIS 41
3.24 Nokia code of conduct 43
3.25 Top 10 selling Nokia handset in Mumbai 44
4 Conclusion and recommendation
4.1 Conclusions. 53
4.2 recommendations 54
4.3 limitations 55
5 BIBLOGRAPHY 56
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Executive Summary
The primary objective of the study will be to analyse the CRM strategies of Nokia
India and to see how Nokia India has been able to maintain a positive image in the
minds of the consumer by studying the perception of its customers. Nokia has
played a pioneering role in the growth of cellular technology in India, starting with
the first-ever cellular call a decade ago, made on a Nokia mobile phone over a
Nokia-deployed network. Nokia aims to provide products and services which meet
the needs of trade customers and consumers. It researches the views of both
groups to understand where it is succeeding and how it can do better. Its CRM
strategies are focused around Product development through Customer-Centricity
( in product designing), Distribution- Company owned and third party, Ease of
Servicing, Ease of Product Knowledge. The Customer Data Master or CuDM is
Nokia’s answer to a software based customer information management system.
It not only aids in managing B2B clients but also B2C customers.
This study aims to understand the customer centric practices of Nokia and ensure
maximum customer satisfaction. A market survey was conducted using the
questionnaire method and responses from the chosen sample mobile customers
collected were and analysed. The analysis helped us understand the weaknesses
and strengths of Nokia. The study revealed data about how customers believe Nokia
lags far behind in terms of innovation, despite the fact that Nokia prides itself on
Innovation. This has led customers to shed Nokia to its buy its competitors’
products. Distribution is considered by customers as one of the biggest strengths of
Nokia. Perhaps the most surprising finding of the market study was that the
respondents felt Nokia mobiles were overpriced. The after-sales service of Nokia
was regarded as excellent by the respondents. User-friendly interfaces of mobiles
and brand name were the top most factors for buying a Nokia Mobile. Although the
study has its own limitations, the study has helped make a set of recommendations
for Nokia India to sustain its market leadership position in India.
Nokia was taken over by Microsoft on april 2014 , apart from its plant layout in Chennai
as it faces income tax problem in India
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INTRODUCTION
1.1 About Nokia
Vision
“A world where everyone is connected”
Nokia history in mobile handsets
Nokia has a long history of successful change and innovation, adapting to shifts in
markets and technologies. From its humble beginning with one paper mill, the company
has participated in many sectors over time: cables, paper products, tires, rubber boots,
consumer and industrial electronics, plastics, chemicals, telecommunications
infrastructure and more. Most recently, Nokia has been best known for its revolutionary
wireless communication technologies, which have connected billions of people through
networks and mobile phones.
Nokia’s history dates back to 1865, when mining engineer Fredrik Idestam set up his first
wood pulp mill at the Tammerkoski Rapids in Southwestern Finland. A few years later he
opened a second mill on the banks of the Nokianvirta river, inspiring him to name his
company Nokia Ab in 1871.
In 1967, we took our current form as Nokia Corporation as a result of the merger of
Idestam’s Nokia AB, Finnish Rubber Works, a manufacturer of rubber boots, tires and
other rubber products founded in 1898, and Finnish Cable Works Ltd, a manufacturer of
telephone and power cables founded in 1912. The new Nokia Corporation had five
businesses: rubber, cable, forestry, electronics and power generation.
Nokia first entered the telecommunications equipment market in 1960 when an
electronics department was established at Finnish Cable Works to concentrate on the
production of radio-transmission equipment. Regulatory and technological reforms have
played a role in our success. Deregulation of the European telecommunications industries
since the late 1980s has stimulated competition and boosted customer demand.
In 1982, we introduced the first fully-digital local telephone exchange in Europe, and, in
the same year, the world’s first car phone for the Nordic Mobile Telephone analog
standard. The technological breakthrough of GSM, which made more efficient use of
frequencies and had greater capacity in addition to high-quality sound, was followed by
the European resolution in 1987 to adopt GSM as the European digital standard by July 1,
1991. The first GSM call was made with a Nokia phone over the Nokia-built network of
6. a Finnish operator called Radiolinja in 1991, and in the same year Nokia won contracts to
supply GSM networks in other European countries.
In the early 1990s, we made a strategic decision to make telecommunications our core
business, with the goal of establishing leadership in every major global market. Basic
industry and non-telecommunications operations—including paper, personal computer,
rubber, footwear, chemicals, power plant, cable, aluminum and television businesses—
were divested between 1989 and 1996. By 1998, Nokia was the world leader in mobile
phones, a position it enjoyed for more than a decade.
In 2006, Nokia, which had already been investing in its mapping capabilities for many
years, acquired Gate5, a mapping software specialist, and then in 2008 NAVTEQ, the
US-based maker of digital mapping and navigational software. Today, Nokia offers
leading location services through the HERE business and brand, launched in 2012.
In 2007, Nokia combined its telecoms infrastructure operations with those of Siemens to
form a joint venture named Nokia Siemens Networks. NSN has become a leading global
provider of telecommunications infrastructure, with a focus on offering innovative
mobile broadband technology and services.
In 2011, Nokia joined forces with Microsoft to strengthen its position in the highly
competitive smartphone market. Nokia adopted the Windows Phone operating system for
smart devices and through their strategic partnership Nokia and Microsoft set about
establishing an alternative ecosystem to rival iOS and Android. In 2011, Nokia also
started to make a number of changes to its operations and company culture that would in
the course of the next two years lead to shortened product development times, improved
product quality and better responsiveness to market demand.
In 2013, Nokia moved to reinvent itself with two transformative transactions. The first
was the purchase of Siemens’ stake in NSN, which was nearing the end of a deep
restructuring and remarkable transformation. The second was the announcement of the
sale of substantially all of Nokia’s Devices & Services business to Microsoft. The
Microsoft transaction was originally announced on September 3, 2013 and was
completed on April 25, 2014.
Following the closing of the transaction, Nokia announced its new vision and strategy,
building on its three strong businesses; Nokia Networks, HERE, and Nokia Technologies.
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NEED FOR STUDY
Various researches have already shown that companies need to focus on customer
retention more than grabbing new customers. It is more difficult retaining a customer
than it is getting a new one. The need to understand why customers switch to other
service providers have usually become a key area of study. The switching behavior has to
be analyzed to identify the possible drivers leading to customer switching behavior.
OBJECTIVES OF STUDY
To understand and identify the Customer Relationship Management Practices followed
by the retail stores.
To study the various CRM techniques adopted by organized retail firms
To study the benefits of CRM to the retailers and customers.
To study the releationship between Nokia and its customers
LITERATURE REVIEW:
Customer is the most important player of any market. All the efforts of companies are
directed towards customers. Customer can either remain loyal with a particular brand or
switch to another one. This particular study is going to evaluate the factors influencing
customers to switch brands. This research will unable us to know more about Nokia
customer relationship managent in Mumbai city
The study by ABDUL SHEIKH(2011) showed that there are number of reasons due to
which customer switch from one brand to another .The customer switch from one brand
to another brand if they are not satisfied to customer service or with prduct expectations
they switch to another brand.
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METHODOLOGY
2.1 Research Design
For the purpose of this market study, a questionnaire was been prepared. We
identified potential customers who can be approached and our sample size was 153.
the answers to these questionnaires from the respondents are the primary inputs to
this market research. We collected all the data from the field directly. The sample for
the survey was primarily students and working professionals in the age group of 15
to 40.The survey was taken online wherein majority of people have used or are using the
Nokia device right now
2.2 Data Collection Methods
Survey research was used to collect data from the respondents. The primary mode
of obtaining the responses was through direct interview and survey questions. For this
project both primary and secondary data were the sources of information.
Primary data:
Primary data was collected from the questionnaire.(surveys)
Secondary Data
Secondary sources were collected from the various journals, websites and research
papers.
2.3 SAMPLING METHOD
Sampling Technique: The initial draft of the questionnaire was prepared after Anaysing
the response. A pilot study was done for this questionnaire and subsequently changes
were made to the questionnaire based onthe feedback from the pilot study. Changes were
done in the rating scales to make it easier for respondents to answer. The sampling
technique followed was ‘convenient sampling’.
Sampling Unit: The respondents who were asked to fill out questionnaire are the
sampling units. The sampling units for this exercise were students and working
professionals.
9. Sampling Area: The area of the research for sample companies was from online surveys
Sample Size: The sample size was around 40. All of them were users of mobile
phones.
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2.4 Field Work
The survey was done in public places like outside offices and near
colleges.
2.5 Data Analysis
We took a sample size of 40 students,people out of which 38 people used Nokia phones.
So we used this data for our analysis.
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CRM &NOKIA
3.1 CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
Customer relationship management systems track and measure marketing campaigns over
multiple networks. These systems can track customer analysis by customer clicks and sales.
Places where CRM is used include call centers, social media, direct mail, data storage files,
banks, and customer data queries.
Characteristics of customer relationship management(CRM)
The following are general guidelines on implementing a CRM system.
Make a strategic decision on what problems you want your CRM system to
address, what improvements or changes it should bring in the business
processes of the organization.
Choose an appropriate project manager. Typically IT will be engaged,
however a manager with a customer service/sales and marketing business
focus should be involved, as the impact of the project will be mainly on the
business side.
Ensure executive sponsorship and top management support.
Empower team members with the required authority to complete the tasks.
Select the correct implementation partner. They must have both vertical and
horizontal business knowledge, as well as technical expertise.
Define KPI's that will measure the project's success.
Use a phased approach. Work towards long-term enterprise-scale
implementation through a series of smaller, phased implementations
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Features of Customer Relationship Management
Customer-centric relationship management is used in marketing, customer service and
sales, including:
tailored marketing
one-to-one customer service
retaining customers
building brand loyalty
providing information customers actually want
Subscription billing
Rewards
3.2 The Benefits of CRM
The biggest benefit most businesses realize when moving to a CRM system comes
directly from having all your business data stored and accessed from a single location.
Before CRM systems, customer data was spread out over office productivity suite
documents, email systems, mobile phone data and even paper note cards and Rolodex
entries. Storing all the data from all departments (e.g., sales, marketing, customer service
and HR) in a central location gives management and employees immediate access to the
most recent data when they need it. Departments can collaborate with ease, and CRM
systems help organization to develop efficient automated processes to improve business
processes.
Other benefits include a 360-degree view of all customer information, knowledge of what
customers and the general market want, and integration with your existing applications to
consolidate all business information.
3.3 CRM in business to business
The modern environment requires one business to interact with another via the web.
According to a Sweeney Group definition, CRM is “all the tools, technologies and
procedures to manage, improve, or facilitate sales, support and related interactions with
customers, prospects, and business partners throughout the enterprise”.It assumes that
CRM is involved in every B2B transaction.[
12. Despite the general notion that CRM systems were created for the customer-centric
businesses, they can also be applied to B2B environments to streamline and improve
customer management conditions. B2C and B2B CRM systems are not created equally
and different CRM software applies to B2B and Business-to-Customer (B2C) conditions.
B2B relationships usually have longer maturity times than B2C relationships. For the best
level of CRM operation in a B2B environment, the software must be personalized and
delivered at individual levels.
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3.4 CRM in business to customers
While business-to-consumer activity exists both online and offline, the acronym B2C has
primarily been used to describe the online variety.
B2C businesses played a large role in the rapid development of the commercial Internet
in the 1990s. Large sums of venture capital flowed to consumers in the form of free
online services and discounted shopping, spurring adoption of the new medium.
When the capital markets turned sour, however, the B2C companies were among the first
to fall, and they fell fast. Many companies tried to follow the herd of investors by
undergoing a B2C to B2B makeover.
For awhile after the .com bubble, B2C was used infrequently except when it was
followed by "…is dead." However, some analysts still predicted that consumer
businesses would thrive online, just not in they way everyone initially predicted.
3.5 Nokia India
Nokia has played a pioneering role in the growth of cellular technology in India,
starting with the first-ever cellular call a decade ago, made on a Nokia mobile
phone over a Nokia-deployed network. Nokia started its India operations in 1995,
and presently operates out of offices in New Delhi, Mumbai, Kolkata, Jaipur,
Lucknow, Chennai, Bangalore, Pune and Ahmedabad. The Indian operations
comprise of the handsets business; R&D facilities in Bangalore and Mumbai; a
manufacturing plant in Chennai and a Design Studio in Bangalore. Over the years,
the company has grown manifold with its manpower strength increasing from 450
people in the year 2004 to over 15000 employees in March 2008 (including Nokia
Siemens Networks). Today, India holds the distinction of being the second largest
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market for the company globally.
Nokia Technologies develops and licenses cutting-edge innovations that are powering the
next revolution in computing and mobility: the “programmable world” where intelligent
connections bring millions of everyday objects online and create exciting new
possibilities. Through Nokia Technologies, Nokia will invest in the further development
of its industry- leading innovation portfolio. This will include expanding our successful IP
licensing program, helping other companies and organizations benefit from our
breakthrough innovations, and exploring new technologies for use in potential future
products and services.
At the heart of Nokia Technologies is a world-class research and development team. Our
scientists, engineers and licensing experts draw on deep expertise in areas ranging from
imaging and sensing, wireless connectivity and power management, to advanced
materials and beyond.
Nokia is the world leader in mobility, driving the transformation and growth of the
converging Internet and communications industries.Nokia makes a wide range of mobile
devices and provides people with experiences in music, navigation, video, television,
imaging, games and business mobility through these devices.Handling valuable business
contacts, data maintenance and data management are some of the key challenges in
business-to-business relations.Therefore the decision for a CRM system was a crucial
one. Nokia’s former b2b specialists, Nokia Enterprise Solutions, chose salesforce.com as
their central CRM platform and implemented the system with more than 1m contacts
world wide. Salesforce CRM had been centrally managed by Nokia’s US Team. Yet
quickly it became obvious that the European Team was facing different and new
challenges due to diversity in countries and languages.
Nokia India started its operations in India in 1995 and has set up its business units in
Mumbai, Bangalore, Ahmedabad, Hyderabad, Kolkata and New Delhi. Nokia has
invented the cellular technology in India and also deployed its network of mobile phones
for the very first time in India.
The units of Nokia India strongly focuses upon handsets and infrastructure facilities
which has its offices along with the R and D units located at Bangalore, Hyderabad and
Mumbai. The manufacturing unit of Nokia India is located in Chennai. Nokia India
possesses a number of skilled professionals who operates in 3 broad business sectors
known as Mobile Phones, Multimedia and Enterprise solutions. The company Nokia
India has grown outstandingly in the past few years. Nokia India started off its business
with manpower of 450 and within few years it increased to 6000 people and this is the
14. current manpower strength. This is a major growth and proves the company's efficiency
in providing employment options to people. Nokia India has gained the brand status and
it still standing in the number 1 position for its state-of-art mobile devices.
Nokia India possesses the capability of meeting every requirement of its consumers and
works accordingly. Starting from manufacturing extraordinary and high technology-based
products to generating quick service to its consumers, Nokia India has it all. The
efficiency with which Nokia India has worked and still working for every unit, has lead
to such a phenomenal growth in the company not only in the domestic market but also
across the globe. Nokia India has also established a diverse product portfolio to serve the
needs of people. Today's generation demands variety of programs in the mobile phones
staring from gaming options and music players to GPRS connectivity and other Internet
facilities. In response to that, Nokia India invented a new series of mobile devices with
high performance multimedia devices for imaging, music, gaming, and Internet options.
The Indian market of Nokia ranks among the top three markets of the company across the
globe. The new unit of Nokia India called the 'Concept Stores' has been established in a
number of cities in India that include Bangalore, Delhi, Jaipur, Hyderabad, Chandigarh,
Ludhiana and Chennai. These units of Nokia India were set up with the aim to offer
empirical experience in mobile devices. The company of Nokia India has been set up
with the objective to enhance its geographical network in various parts of the country and
also provide reasonable and affordable products to the consumers.
The networks of Nokia India include Bharti, BSNL, Hutchison, IDEA and BPL. Nokia
India has ranked 4th in the Most Trusted Brand Survey by Brand Equity for the year 2007
and has been ranked Business World as No.1 Multinational corporation set up in India. It
is also a foremost supplier to the GSM operators. The manufacturing unit of Nokia India
has an investment amount of USD 150 million in its operational services as has been
declared in March 2006. At present, the manufacturing unit of Nokia India has manpower
of more than 4100 people. The new technology that is on the list to be invented by Nokia
India is switched mobile technologies and communication solutions that will be designed
exclusively for the upcoming generation to intensify the corporate productivity.
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3.6 Manufacturing in India
Nokia has set up its mobile device manufacturing facility in Chennai, India to meet
burgeoning the demand for mobile devices in the country. The manufacturing facility
is operational with an investment of USD 210 million and currently employs 8000
people. Nokia has recently announced fresh investments to the tune of US $ 75
million towards its manufacturing plant in Sriperumbudur, Chennai for the year 2008.
The factory, which changed Nokia lives, has changed. Like its owner, Nokia, its best
days -- revenues of Rs 1,50,000 crore between 2006-07 and 2012-13 by exporting
handsets to about 75 countries -- are behind it. Output is down from 13 million handsets a
month at its peak to 2-4 million handsets, production lines from 20 to 10. A liability in a
global corporate merger, it lies in the cracks, an orphan factory.
Since January 2013, two sets of tax authorities have raised a demand of about Rs 23,400
crore from Nokia India. One of them attached the Sriperumbudur factory, its prime asset
in India. In September 2013, Microsoft purchased Nokia's handset business at the global
level for $7.2 billion, a deal it will close tomorrow -- without this factory.
Nokia announced (in 2011) that its manufacturing facility at Sriperumbudur, Chennai has
crossed production of 500 mn handsets, marking a significant milestone for the
company's manufacturing operations in India and globally. The milestone was achieved
in 5 years of its operations, marking Chennai's ramp-up among the fastest globally.
“This is a very special milestone for Nokia's Chennai manufacturing facility and we
thank our employees for all their hard work and dedication. We have created a unique
record across the world, this is not only a proud moment for us at Nokia, but a major
highlight in the India's young and rising electronics manufacturing industry. This
achievement only proves that with the right kind of organization focus, employee
contribution and government support, India can deliver world-class manufacturing
standards and set new benchmarks,” said Prakash Katama, director-Chennai factory
operations, Nokia India.
Prakash Katama added, “Nokia's factory network globally is a strategic differentiator for
the company. Among all global telecom companies, it was Nokia, which first envisioned
India as a destination for mobile phone manufacturing. With this milestone, our India
facility's proven record of quality and fast time-to-market abilities will be strengths for
Nokia to leverage in future as well. The handsets manufactured here go to over 100
countries covering 6 continents.”
17. As part of its celebrations, Nokia announced that its 500th mn phone-Nokia C3-00-will
be specially autographed by Nokia's brand ambassador Shahrukh Khan, and be available
for auction to consumers through http://Nokia500million.com till May 15, 2011. Besides
becoming the proud owner of the specially endorsed milestone phone, Nokia will also
host the highest bidder to watch the IPL 4 cricket match between Kolkata Knight Riders
and Mumbai Indians in Kolkata on May 22, 2011. The winner will personally receive the
500th mn device from Shahrukh Khan. Nokia also announced that all the employees at its
Chennai manufacturing facility will be gifted with a Nokia C3-00 as a gesture of
appreciation for contributing towards achieving this milestone.
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3.7 The Nokia way
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3.8 Nokia’s Customer Policies
Nokia aims to provide innovative, high-quality products and services which help
people connect. It intends to meet the needs of all users, including people with
physical, sensory or cognitive limitations. Product and service development takes
account of social and environmental issues, including privacy concerns associated
with the convergence of mobile and internet technology. It sells the vast majority of
products through distributors, network operators and Nokia branded stores which
are owned and operated by its retail partners. Some sales are made direct to users
through Nokia Online. Nokia is also creating a chain of flagship stores in India's
premier shopping locations which offer Nokia products and services
Nokia has started its customer care support in majority places in Mumbai in order to
boom its sales:
Nokia priority stores,Nokia care centre,Nokia recycling point
Nokia customer service centre list
Bakul Mobile World – Amravati, Mumbai
Digital Technology Service Solutions– Andheri(East), Mumbai
Digital Technology Service Solutions- Andheri-East.
Easy Communications- Baramati.
Fone World – borivali
Divine Cell Phones- dadar (W)
Bagga Agencies- gondia
Goldline Infotech – goregoan (w)
Arya Communication-mulund
Divine Cell Phone –sion
Lucky Mobile Services – nandurbar
Fone City – princess street
Fones 4 U – ville parle
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3.9 Understanding its Customers
Nokia aims to provide products and services which meet the needs of trade
customers and consumers. It researches the views of both groups to understand
where it is succeeding and how it can do better. Primarily the Nokia customers can
be segregated as under.
In order to provide various serves towards its customer Nokia Networks announced
that it has entered into a memorandum of understanding to acquire part of the wireless
networks business of Panasonic System Networks Company Limited. The agreement
covers Panasonic's mobile phone (LTE/3G) wireless base station system business for
mobile operators and related wireless equipment system business.
The two parties plan to conclude the agreement by the end of September 2014, with
expected closure scheduled on January 1, 2015, subject to customary closing conditions,
including regulatory approvals. Under the terms of the agreement, fixed assets and
business contracts with Panasonic's customers are being transferred to Nokia Networks in
Japan, including Panasonic employees involved in the business.
Through this acquisition, Nokia Networks aims to reinforce and further improve
efficiency and quality control for product development and R&D, as well as strengthen
its market share for base station systems and related wireless equipment in Japan. In
addition, Nokia Networks plans to leverage its extensive global experience and technical
leadership in mobile broadband to grow its business in the acquired domestic carrier
segment globally.
Trade customers
Nokia researches trade customers’ views on it through the Listening to Trade
Customers survey. An independent research company carries out the survey each
year. It reaches executive and operational contacts in a sample of customers that
accounts for around 80% of Nokia’s revenue each year. Nokia Account Managers
discuss initial survey results with their teams and customers, and take action
relevant to individual accounts. Customers are informed of the key local actions
relevant to their account and receive a response letter highlighting the overall key
findings and improvements planned by Nokia.
At Nokia, taking a responsible approach to the environment and our social practices is
integrated into everything we do.This Supplier Code of Conduct sets out our approach to
ethical and sustainable business practices and aims for the highest ethical conduct. It
20. outlines our commitment to respect and promote human rights and fair workplace
practices, including equal opportunities, environmentally sustainable business activities,
and a zero tolerance policy to bribery and corruption. We expect our suppliers to ad here
to these standards and apply the same standards throughout their entire supply chain. By
working together, we have the reach, the scale and the values to directly and positively
affect the lives of working people around the world and to help them realize better lives.
We believe that when our suppliers share and live Nokia’s values, they can achieve their
full potential.
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Individual Consumers
Nokia Care provides support services to consumers through online, email and call
centre services, supported by a network of authorized service center’s. The support
includes basic product information, guides and demonstrations, discussion boards,
software updates, advice on specific issues, and warranty repairs. It also helps
consumers to find out where to recycle their old products. It aims at getting a wide
picture of consumer experience by using different consumer feedback channels, and
respond with targeted improvement actions. The main feedback channels include
consumer satisfaction surveys, feedback through independent market research
companies and Nokia Care contacts.
In a bid to increase its share in the highly competitive mobile handset category, Nokia’s
marketing strategy puts digital in the centre of all its initiat ives. Loyal customers are very
important to companies, they are customers that have been drawn in by the company’s
marketing efforts and product quality, and stay loyal to that one company.
Nokia has always had a strong image for creating phones that are very durable, even
when you drop a Nokia it will break into 4 or 5 different parts, but you can put it back
together again and it will work the same.
Even though Nokia is known for quality phones that can take a hit, the market place and
practises within it change and evolve and so will Nokia, this is because of price
competition in sales between companies. The only way success is measured these days is
by profitability, and if you make phones that just wont break, you wont have enough
loyal customers that come and buy new phones.
Even though Nokia officials are tightlipped on the value of marketing spends, they do
acknowledge a rise in digital spends in the past one or two years where the endeavour is
to create as many touchpoints for the brand and increase awareness across the company’s
product range. The year 2014 will see a lot more action in the social and the mobile
space.
21. It’s evident that digital is at the core of Nokia’s marketing strategy? What is
the overall digital strategy that Nokia has in place for the Indian market?
At Nokia, digital marketing is an inherent part of Nokia’s marketing strategy and has
been very successful with our core audience. We extensively use our portals and online
initiatives to drive maximum consumer outreach for product and ongoing customer
communication, customer service and customer engagement.
Our digital strategy provides a window to engage proactively with customers; understand
behavioural patterns; assess consumer needs and preferences and drive consumer
awareness and loyalty for the brand.
As a company, we have been very successful in terms of engaging our core audience in
the digital space. The fact that Nokia is the third largest Facebook community in India
and the only mobile handset brand with around 10 million fans is a testimony to the fact
that we understand what the youth wants today.
Nokia.com sees 12 million unique users a month; and our average monthly online reach
is 70 million Indians. On Twitter, we have about 0.15 million followers; Nokia Google
Plus has 0.525 million followers and Nokia YouTube has crossed 28.5 million views.
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3.10 Network Operators
Nokia primarily deals with its Service Operator Customers through its Nokia-
Siemens Networks arm. Nokia enquires and assesses requests about
performance from its network operator customers. It responds to these requests
through its customer account management interface. Nokia Networks is the world’s
specialist in mobile broadband. From the first ever call on GSM, to the first call on LTE,
we operate at the forefront of each generation of mobile technology. Our global experts
invent the new capabilities our customers need in their networks. We provide the world’s
most efficient mobile networks, the intelligence to maximize the value of those networks,
and the services to make it all work seamlessly.
We have an extensive installed base of customers, including many of the world’s largest
mobile operators such as Bharti Airtel, codaphones,tata docomo
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The business benefits of Network Sharing
Reduced operational costs through consolidation of existing networks and
reduced capital and operational costs for new networks and technologies.
Increased competitiveness and improved time to market for the deployment and
operation of new networks and technologies.
Increased customer satisfaction; dependent in strategy, more services may be
offered and be available to more customers across a larger geography than may
otherwise have been possible.
Additionally, you may also want to consider outsourcing your network operations
through Managed Services, allowing you to focus your resources on your
customers and business success.
Why Nokia Networks?
Nokia Networks has always been at the forefront of network sharing. the pioneering
approach meant that we supplied the world’s:
first commercial shared networks
largest commercial shared network
only commercial GSM-WCDMA-LTE MOCN.
As a result, we are the preferred partner for many of the existing commercial shared
networks and draw on our wealth of experience implementing and managing shared
networks in commercial operation.
3.11 list of smart phones launched by Nokia (since 2011)
With SYMBIAN OPERATING SYSTEM
Nokia Asha 200
Nokia Asha 201
Nokia asha 202
Nokia Asha 203.
Nokia Asha 205,
Nokia Asha 206.
Nokia Asha 210,
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Nokia Asha 302,
Nokia Asha 305,
Nokia Asha 306,
Nokia Asha 308
Nokia Asha 309,
Nokia Asha 310,
Nokia Asha 311
Nokia Asha 230
Nokia Asha 230 dual sim
Nokia Asha 500
Nokia Asha dual sim
Nokia Asha 502
Nokia Asha 503
Nokia Asha 503 dual sim
With Windows phone os
Nokia Lumia 510
Nokia Lumia 610
Nokia Lumia 710
Nokia Lumia 800
Nokia Lumia 900
Nokia Lumia 520
Nokia Lumia 525
Nokia Lumia 530
Nokia Lumia 630
Nokia Lumia 635
Nokia Lumia 630
Nokia Lumia 720
Nokia Lumia 725
Nokia Lumia 735
Nokia Lumia 820
Nokia Lumia 825
Nokia Lumia 830
Nokia Lumia 920
Nokia Lumia 925
Nokia Lumia 930
Nokia Lumia 1020
Nokia Lumia 1320
Nokia Lumia 1520
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With ANDRIOID OS
Nokia x
Nokia xl
Nokia x+
3.12 Nokia’s Way Towards CRM
Nokia, owing to its vast portfolio of products and services and multiple channels has
corresponding ways of answering to a successful CRM. Its strategies include:
➢ Product development through Customer-Centricity (in product designing).
➢ Distribution- Company owned and third party.
➢ Ease of Servicing.
➢ Ease of Product Knowledge.
Customer relationship management (CRM) is a broad term that covers concepts used by
companies to manage their relationships with customers, including the capture, storage
and analysis of customer information.
Aspects of CRM
There are three aspects of CRM which can each be implemented in isolation from each
other:
* Operational CRM- automation or support of customer processes that include a
company’s sales or service representative
* Collaborative CRM- direct communication with customers that does not include a
company’s sales or service representative (“self service”)
* Analytical CRM- analysis of customer data for a broad range of purposes
Operational CRM provides support to "front office" business processes, including sales,
marketing and service. Each interaction with a customer is generally added to a
customer's contact history, and staff can retrieve information on customers from the
25. - 24 - | P a g e
database as necessary.
One of the main benefits of this contact history is that customers can interact with
different people or different contact “channels” in a company over time without having to
repeat the history of their interaction each time.
Consequently, many call centers use some kind of CRM software to support their call
centre agents.
Collaborative CRM
Collaborative CRM covers the direct interaction with customers. This can include a
variety of channels, such as internet, email, automated phone (Automated Voice
Response AVR). It can generally be equated with “self service”.
The objectives of Collaborative CRM can be broad, including cost reduction and service
improvements.
Analytical CRM
Analytical CRM analyses customer data for a variety of purposes including
* design and execution of targeted marketing campaigns to optimise marketing
effectiveness
* design and execution of specific customer campaigns, including customer acquisition,
cross-selling, up-selling, retention
* analysis of customer behaviour to aid product and service decision making (e.g. pricing,
new product development etc.)
* management decisions, e.g. financial forecasting and customer profitability analysis
* prediction of the probability of customer defection (churn).
Analytical CRM generally makes heavy use of predictive analytics.
Strategy
Several commercial CRM software packages are available which vary in their approach
to CRM. However, CRM is not just a technology, but rather a holistic approach to an
organisation's philosophy in dealing with its customers. This includes policies and
processes, front-of-house customer service, employee training, marketing, systems and
information management. Hence, it is important that any CRM implementation considers
not only technology, but furthermore the broader organisational requirements.
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3.13 Product Development
A Nokia product is not only a benchmark in its class of products but also ensures
that when a customer goes in for a repeat purchase it again opts for a Nokia. Some
of the key features of a Nokia product (in this case its mobile handsets) include:
➢ Ease of product usage.
➢ Ease of product trial.
➢ Impeccable product quality and build.
➢ Ease of software up-gradation and third party software usage.
➢ Locally developed product range (ex. Nokia 1100 for the Indian Tier 2 and 3
cities).
➢ Multiple language options.
➢ Convergence (internet, PDA and multimedia bundled into a handheld device).
➢ Right product at the right price.
Nokia has sites for research and development, manufacture and sales in many countries
throughout the world. As of December 2009, Nokia had R&D presence in 16 countries
and employed 37,020 people in research and development, representing approximately
30% of the group's total workforce The Nokia Research Center, founded in 1986, is
Nokia's industrial research unit consisting of about 500 researchers, engineers and
scientists It has sites in seven countries: Finland, China, India, Kenya, Switzerland, the
United Kingdom and the United States Besides its research centers, in 2001 Nokia
founded (and owns) INdT – Nokia Institute of Technology, a R&D institute located in
Brazil. Nokia operates a total of 15 manufacturing facilities located at Espoo, Oulu and
Salo, Finland; Manaus, Brazil; Beijing, Dongguan and Suzhou, China; Farnborough,
England; Komárom, Hungary; Chennai, India; Reynosa, Mexico; jucu, Romania and
Masan, South Korea Nokia's industrial design department is headquartered in Soho in
London, England with significant satellite offices in Helsinki, Finland and Calabasas,
California in the USA.
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3.14 Objectives of Nokia CRM
The objectives of a CRM strategy must consider a company’s specific situation and its
customers needs and expectations.
Technology Considerations
The technology requirements of a CRM strategy can be complex and far reaching. The
basic building blocks include
* A database to store customer information. This can be a CRM specific database or an
Enterprise Data warehouse.
* Operational CRM requires customer agent support software.
* Collaborative CRM requires customer interaction systems, eg an interactive website,
automated phone systems etc.
* Analytical CRM requires statistical analysis software as well as software that manages
any specific marketing campaigns.
Each of these can be implemented in a basic manner or in a high end complex
installation.
Successes
While there are numerous reports of "failed" implementations of various types of CRM
projects, these are often the result of unrealistic high expectations and exaggerated claims
by CRM vendors.
30. Traditionally, distribution is not considered to be a part of CRM but Nokia believes
that by ensuring a deep penetration in the market it can cater to the customer best
and ensure retention as well. This would not only ensure a better reach but also
ensure an arm’s length in case any customer faces any problems pertaining to the
product. It helps to develop better client relationships. Nokia primarily deals in with
company owned and third party stores.
Distribution Channel StructureNokia manufactures low budget mobile handsets, costing below RS.
3500in Chennai manufacturing plant, located at Sriperumbudur, Chennai and
then it transfers to Nokia’s mother depot which is located in Gurgaon. Other
multimedia and smart phones of Nokia costing Rs 3500 & above aremanufactured at other Nokia plants
but the mobile handsets shipped toIndia are from two plants located at China, one at Beijing
and the other at
Dongguan. These Handsets are then shipped to the Nokia’s mother
Warehouse located at SP Infocity, Industrial Plot No. 243 Udyog Vihar,Phase 1, Dundahera,
Gurgaon. For shipping of mobiles to the mother warehouse from the manufacturing plants,
Nokia has tied up with Safex.
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Nokia distribution in north east
Nokia’s distribution network in this Assam and North
-Eastwith special reference to Dibrugarh, it is handled by HCL. HCL works asC&AF and have it
warehouse at Lokhra, Guwahati. HCL warehouse incharge at Guwahati is Sharique Imdad
Hussain, who can be contacted at+919678071553. HCL receives its stock from the Gurgaon
warehouse of Nokia. From here on HCL sends the stock and have their own sales person to
collect order form the retailers and delivery of the order to the retailers
3.16 Ease of Servicing
The product is as good as it is easy to service, this holds true for Nokia’s products.
In the rare occasion that the products need to be serviced (other than the
consumable parts like the battery) the product can be easily repaired at any of the
local Nokia or third party stores.
consumer studies by MORI conducted for Nokia indicate clear demand for interactive
mobile multimedia services. The services studied - push to talk, instant messaging,
content sharing, video sharing and presence - have the broadest appeal to the socially
active 16-34 year olds, with push to talk having potential also for more mainstream
appeal.
31. The studies show that drivers for adoption of mobile multimedia services vary on a
service by service basis.
- For instant messaging, the benefits of the service have to do with the group
communication capability and the ability of the user to relate instant messaging to short
messaging (SMS) and/or the PC based equivalent.
- For push to talk, group communication possibilities and ease and speed of use were key
drivers.
- Video sharing - the real time sending of video during a phone call - had a strong fun
factor among respondents
- Content sharing - the transferring and sharing of files between mobile handsets - was
seen as a more niche service, with likely adoption being between 10-17% in different
markets. Drivers relate to use of files one might want to transfer and specifically,
business applications.
- Drivers for presence - a service which allows mobile phone users to display their status
to others - include practicality and potential cost savings e.g. over short messaging.
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3.17 Ease of Product knowledge
Nokia thoroughly believes in the power of knowledge. Thus it provides easy access
to all product relevant information through its website, stores and company sales
executive. Through its user reviews and forums on its website Nokia allows
customers to comment and review the products..Nokia also provides with user manuals
online videos of products for it upgrade
Nokia tries to give product knowledge for all its devices, so that it can help its customer
to use its devices with them. Nokia tries to
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3.18 Stations of Experience
The stations of experience vary with the channel through which the customer comes
in contact with Nokia. The channels are, namely:
➢ Online Store
The Nokia Music Store India was launched on August 26th 2009 at the Music
Connects conference. Nokia has signed up India's major independent labels including
Tseries, Yashraj Music, Saregama, BIG Music and Venus; it has also partnered with
India's leading music body, the Indian Music Industry.
he standard Nokia Music Store features are available for the Indian store, including the
on-device mobile client for over-the-air downloads and PC client (Nokia Music) for
downloads to the PC. Purchased tracks may be played back on the phone or via the PC
and can be synced between the two, regardless of how they were downloaded.
The Nokia Music Store was previously available in 'soft launch' mode, with track
purchase only available via vouchers. Vouchers were (and will be) available in the sales
box of selected handsets.
➢ Nokia Company Stores
Nokia onlines stores
Nokia India has launched an online store for its range of mobile phones called
NokiaShop at Nokia.Indiatimes.com. The backend seems to be powered by the India
Times shopping engine. I would assume the stocks are supplied by the Nokia distribution
network as it is a joint venture and authorized by Nokia India. One of the highlights is the
possibility to buy phones with Interest Free EMIs spread over 3 or 6 months. There is a
Cash on Delivery payment option too for most phones and other payment modes
supported are Net Banking,Credit Card and Debit Card.
Delivery time to most cities is under 4 days and there is a 7 day return policy.Pretty good
move but a tad late. Wish they start stocking accessories too.
➢ Nokia Third Party tie ups
The plan will be available on all Nokia devices purchased through Nokia branded retail
stores across the country, initially in Delhi and the National Capital Region, Jaipur,
Mumbai, Ahmedabad, Pune, Kolkata, Chennai, Hyderabad, Bengaluru and Cochin.
33. The customers will have to pay premium of Rs 50 or 1.25 per cent of mobile phone cost,
whichever is more, at the time of purchase to avail this offer.
Nokia’s insurance plan safeguards against theft, burglary, accidental or deliberate damage
by a third party or damage caused by accidental entry of fluid in the internal circuitry.
“Through this initiative, our effort is to address one of the major concern of mobile phone
buyers and enhance their buying experience with us. Insurance cover will be provided on
purchase of new Nokia mobile phones from today onwards, initially across 10 cities,”
Nokia India’s Director Retail Kannan Gopalakrishnan said in New Delhi.
Mobile phone lost through thefts, burglary, malicious acts, riots, theft of device from
locked or unattended building, or any act of violence will be covered under insurance and
payment will be processed within 5 days, Gopalakrishnan said.
“Customer will be required to make police complaint, inform its service provider and
furnish acknowledgement to us for claim. It is not mandatory to get an FIR for making
claim. He will have to approach for claim within 48 hours of loss. We have surveyor who
will verify the claim after which amount will be paid to customer,” New India
Assurance’s General Manager Segar Sampathkumar said.
The customer will not get any claim if mobile device is lost overseas or because of
forgetting it at some place or any any other simple loss. Mobile phone damaged in an
accident, damage caused by external impact on the device due to dropping, accidental
entry of fluid in the device will also be covered under the offer.
The insurance will be valid for a year from date of purchase of handset. The insurance
company will calculate value of device which will depreciate 10 per cent for claim made
within three months of purchase, 25 per cent between 3 to 6 months and 50 per ent
between 6 to 12 months.
At present, none of the players in the e Indian handset market offer an insurance cover.
Sampathkumar said that customer can renew the insurance after 12 months from NIA but
that renewal will be independent from its partnership with Nokia and have different
terms.
Gopalakrishnan said that the company will try to make it very clear to customer about the
case when he will not get benefit of the insurance.
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3.19 Nokia Sales Interface
The Nokia Sales interface primarily deals with institutional clients and is majorly
associated with the Nokia-Siemens Networks. As it is completely a B2B format the
experiences are more formal and process governed rather than on a one on one
client basis. Some of Nokia’s clients in the Telecom Service Provider domain in
India include BSNL, Airtel, Vodafone, Aircel and Idea.
User experience that meets cultural preferences
Mixed reality technologies in conjunction with multimodal interaction and
immersive communications
Novel enablers for enhanced senses and interactions
Nokia User Interface innovation
Web User Interface and User Experience
Innovate, Design, Experience, Animate
Conversational User Interface
Cognitive User Interface
Sight, Sound and Gaze
Social & physical Proximity Interactions
Multimodal and multimedia user interactions
Multimodal Interactions
User Experience and Design
Visual Computing for Ubiquitous Imaging
Mixed Reality Solutions
Immersive Communication
Mixed Reality Experiences
Africa User Experiences
India User Experiences
Growth Market User Experience & User Interface
Nokia vision on new interface is to make:
User experience that meets cultural preferences
Mixed reality technologies in conjunction with multimodal interaction and
immersive communications
Novel enablers for enhanced senses and interactions
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3.20 Computer aided CRM
The Customer Data Master or CuDM is Nokia’s answer to a software based
customer information management system. It not only aids in managing B2B
clients but also B2C customers.
Customer
Create Customer visit, such as to Web site or facility; account created
Read Contextualized views based on credentials of viewer
Update Address, discounts, phone number, preferences, credit accounts
Destroy Death, bankruptcy, liquidation, do-not-call.
Search CRM system, call-centre system, contact-management system
3.21 NOKIA Marketing Mix
Product
Product Nokia's main product is mobile phone and it has a wide range of product
portfolio including over a hundred devices. Nokia has produced the first mobile phone
with the antenna inside, the first built- in camera, the firstchangeable faceplate or short-message
chat function and so on. Nokia offers various mobile phones withvaried quality,
shape, size and color.Product segmentation is very significant factor in the mobile device
market to reach all consumers. Nokia cell phones can be divided into three categories
which is business line, the multimedia line and the connect line.The business line refers
to the mobile phones that have priority functions such as connectivity (Bluetooth,WAP,
internet connection), time management applications such as a calendar. The multimedia
line is targeted the young users with N-series mobile phones that enable users to watch
video and TV, play games, listen to music and the other features such as navigation, large
capacity hardware. The connect line category's users consist students who do not have
disposable income or do not want to pay a lot of money for a mobile phone.These devices
are still stylish and equipped some technological features such as internet, camera and
mp3 player. The market researches of Nokia shows that the consumers make decisions in
accordance with their own preferences, the product brand and the ability of the economy
when supplied with the mobile phone products with the same quality. Thus, researchers
in Nokia analyze the different personalities, divide consumer groups and decide what
kind of mobile should be supplied to a particular consumer community. This process is
products positioning. Designing professional mobile phones with suitable size that fits the
requirement of the user and high technology-enablement is what defines the Nokia brand.
Consumers view a brand as an important part of a product, and branding can add value to
a product. Nokia keeps being good at molding the good brand image by injecting
36. individuality into product design. For example, Nokia designers believe that the screen of
a phone is
the “eye into the soul of the product”.
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Price
Nokia understand that most of the consumer demand for portable multifunction device,
so the budget of the target consumer for specific model is considered. Nokia price the
products by comparing to other products with similar function in the market. Nokia
Corporation, which targets all customer segments, has a wide range of price variations
from the lower price group to the higher price group depending on customer's positions
and needs. In the mobile phonemarket, the factors affecting Nokia's device prices are the
cost of products, customer demand and competition. Nokia initially sells products at a
higher price to gain profit. It is to reimburse the cost of investment and costof research
and development. After a period of time, the company reduces the high price for
beginning depending on their competitor prices and they make less profit. However, there
is still a large profit because of increasing amount of sales. Because of Nokia is
establishing as branded so it has the power to sell products atthe price they want or even
lower price when compete with other company. This successful price strategyenables
Nokia to gain competitive advantage in the market.The major method for Nokia to
pricing decision is the Brand Life Cycle Model. This model is to set different prices
based on different life cycle of product. Nokia set a high price for new products, medium
price for second line products and low price for third line products. Nokia pricing on the
basis of sufficient market research on consumer number mature an advance technology
that a product has, it will successful
once the consumers love and purchase the products. For example, Nokia 88 series and
Nokia 89 series, consumers who have strong purchase abilities treat the mobile phone as
a symbol of status. So this kind mobile phone has a high price and long life cycle and will
seldom reduce prices because they will not change their mobile phone too frequently
Place
Nokia Company, which doesn't contact directly with consumers, uses some distributing
channels to reach the customers and sells their devices through the mobile service
operators such as Vodafone, T-mobile; independent mobile phone retailers such as
Carphone Warehouse, The Link; some electrical suppliers like a Dixon and finally the
Company's web site. This selling policy carried out in the all countries in which Nokiahas
got the market provides to reach all consumers. Company has made ease of ordering
Nokia handsets all over the country. There are around 1, 00,000distributors of Nokia
37. handsets across the country. Launch of "Nokia Concept Stores" which makes
consumer feels that he or she is standing in the middle of the cellular tech-hub. Initially,
the distribution strategy was focused on urban population negating growing demand in
rural areas. Inorder to become competitive, Nokia reformulated its distribution strategy
with more focus in the rural areas which were previously served by local competitors.
The new efforts made in revamping istribution strategy helped boost sales and increased
market share as well. Nokia choose its local business agent based on 5C principle. Nokia
will decide whom to choose according totheir capital, credibility, channel, cooperation
and management. Meanwhile, pay attention to the network marketing and try to take
intensive marketing strategy in all domains.For example, Nokia chose new channel
pattern called FD, which has ability to change the provincial agent intofunds platform.
This saves a lot of intermediate links. Through this method, most of Nokia monopoly
storescan acquire the ability of direct supply which ensure its good post sale service
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Promotion
Promotion was done by Nokia to increase sales and their publicity. For instance, Nokia
offered precious giftssuch as get a chance to win Yamaha bikes and Toyota Vios. This is
to attract consumers to purchase Nokiamobile phone. During festival such as Chinese
New Year,Deepavali, Hari Raya, Nokia will always hold a promotions.In advertising
part, there are printed advertisements used by the company to promote their products.
There arenewspaper, magazines, brochures, TV, radio, website banners, billboards and
others. In the advertisement, theCompany always emphasizes their well-known slogan
"connecting people" to build relationships, to bring people together, to collaborate and
communicate. Nokia invites famousactors to become spoke persons of the products. This
will attract more buyers because many people willsupport their idol.
Retailers and mobile phone operators generally carried out sales promotion for Nokia’s
devices. No
kia promotes the product to retailers such as Carphone Warehouse, then they promote to
consumers. Sometimesthey can be joint promotions with a bank or credit card company.
Moreover, the mobile phone operators offer campaigns including mobile phone and
phone line are the most popular way of promotions.Public relations also play an
important role in the Nokia's promotion strategies. The company supportsfinancially
some social programs such as educational activities, charities and accept being
sponsorship for sports, music and television. Nokia has education, creative arts and civic
engagement programs in 57 countries.These kind of social relations make Nokia more
attractivein the mind of consumers to ensure positive opinions about the company.Social
media is the fastest, easiest and most cost effective ways of publishing news for a global
audience inhighly visible way. Nokia have creates and use Facebook Fan Page, Youtube
38. videos to pass the messages to awider audience. For instance, Nokia N9 is one of the
products that have been promoted. It shows functions andstrength of Nokia N9 with
innovative way and with a suitable music to draw attention of potential buyers.
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3.22 Nokia market share in India
As the India smartphone market overall grew by 229% year over year (YoY) in the third
quarter of 2013, Nokia's Lumia range of devices continued to show a growth trajectory
and garnered close to 5% market share. In the mobile phone market in India, Nokia is on
the second spot, close on the heels of market leader – Samsung. This latest data coincides
with the continued strong growth in India for Windows Phone.
According to International Data Corporation's (IDC) APEJ Quarterly Mobile Phone
Tracker, vendors shipped a total of 12.8 million smartphones in Q3 2013 compared to 3.8
million units in the same period of 2012. While the third quarter of 2013 witnessed a
slowdown in the numbers for top local vendors such as Micromax and Karbonn,
Samsung and Nokia made up for close to 30% of the overall market.
39. For Nokia, the quarter of 2013 saw a few notable launches like the Lumia 625 and Lumia
925 which have been able to generate positive interest from consumers and developers
alike.
The report suggests that the 5.0inch-6.99inch screen-sized smartphones (aka 'phablets')
continued to show sustained growth in Q3 2013 as well contributing 23% in the overall
market in terms of volume. That should augur well for Nokia too as the Nokia Lumia
1320 and the Nokia Lumia 1520 should come to India soon, although Nokia hasn’t
announced any dates just yet.
India is one of the largest & fastest growing smartphone markets in the world. Nokia
should not take this casually, they do not have much advertising in India & other times..
their ads suck. Only people who really knowledgeable buy a WP (except 520 , that just
sells in huge nos).
WP phones are among the highest rated on Flipkart (India's largest e-commerce site).
Almost no phone has a average rating less than 4 & most of them are hovering aroung
4.4/4.5. Its clear people do love Nokia products still.
But it continues to amaze me how much Nokia still focuses on US (nothing against the
US mind you) - a lot of bing services are not available in India. A lot of apps are not
available in India. Product launches are so late, people get bored & move to the next
thing.
Come on Nokia, if you want to start changing something start from where you have an
advantage! If popularity grows even from other countries, then surely a stage will come
where it will start getting popular in the weaker markets like US!
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3.23 SWOT ANALYSIS
Strengths
Great phone designing capability (Shining example N9) and great product quality
reputation
Great price point coverage(Very low to Very High)
Supply chain and distribution experience
Largest distributor of phone network
Highly qualified personnel
40. - 39 - | P a g e
User friendly with many accessories
High re sale value of brands phone
Experienced sales patners
Global brand image
Weakness
Poor marketing skills(excluding few markets like India)
Could not use its global presence to create a viable ecosystem.
Not able to leverage production and software knowledge to create other product
families(Camera and Tablets could have a natural choice)
Poor competitor and market analysis
Less promotion of products
Weak brand building
Difficulty in localization
Threats
Threats from competitors products (from android os and ios)
Cuttroat competition
Subsidy prohibition
Cheap chinese phone available in market at halfer price of Nokia
Unique customer needs
Change in technology
Change in Government policies
41. - 40 - | P a g e
Opportunity
Increases in smartphones demand
Short replacement cycle
New windows operating system which is only provided by few handset makers
(windowsphone os)
Wide range of products
Unique design products range
Use of near field communication in handsets
3.24 Nokia Code of Conduct:
Nokia expects all its suppliers to meet or exceed all applicable
laws and regulations. In addition, we encourage you to go beyond
legal compliance by committing to meet relevant international
standards (such as those from the International Labor Organization
and relevant UN conventions) and by implementing processes for
continuous improvement
Nokia’s Supplier Code of Conduct:
These standards are intended to guide you as you fulfill your role as a Nokia
supplier. They are not intended to change or replace any specific contractual
requirements. Rather, this Code of Conduct establishes the basic principles
for business conduct which Nokia expects from you. If a contract between us
contains stricter or more detailed requirements than this Code of Conduct, then
we expect you to meet those stricter or more detailed contractual requirements.
This Code of Conduct has been created based on the principles set forth in
internationally recognized standards such as the United Nations Declaration
of Human Rights and International Labour Organization (ILO) Conventions and
includes key elements from the Electronic Industry Code of Conduct (EICC).
Nokia may verify your compliance with this Code of Conduct by performing
audits or other assessments of your facilities, records and business processes.
Violation of the Code of Conduct may result in your disqualification as a Nokia
supplier and the termination of our business relationship.
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This Code encompasses key requirements in five different areas:
Ethics
Labor and Human Rights
Health and Safety
Environment
Management Systems.
3.25 Top 10 selling Nokia Handset in Mumbai
Nokia XL (android os)
Nokia lumia 630 (windows phone os)
Nokia lumia 520(windows phone os)
Nokia X (android os)
Nokia lumia 530 (windows phone os)
Nokia lumia 625( windows phone os)
Nokia lumia 1320 (windows phone os)
Nokia lumia 630(windows phone os)
Nokia lumia 525(windows phone os)
Nokia lumia 720(windows phone os)
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QUESTIONNAIRE
Q.1 Do you think Nokia handsets are equipped with the latest features?
a) Always
b) many times
c) sometimes
d) Never
ANALYSIS
choices responses
Always 8
Many times 7
Some times 20
Never 4
We asked this question in order to know what are the opinions of the people who have
used Nokia product now or earlier.
Out of the total responses 55% of the total Nokia handset owners said that Nokia is
equipped with new features, which indicates that Nokia still lacks behind in innovation
compared to its competitors,
Nokia provideds lattest facilities like near field communications, i.e wireless charging.
People still think Nokia lacks far behind in innovation of new features
Q2. Are Nokia mobiles readily available in the markets?
a) YES
b) NO
Responses:
choices responses
Yes 33
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no 5
This question was primarily asked to see whether Nokia has ample availability of its
handsets, which is a direct consequence of the location of the retailers through
which Nokia sells its products. Almost all the respondents felt that Nokia is readily
available in the market showing the efficiency with which it places its products in the
market.
Around 80% respondent thinks Nokia products are always available in the market and
never lacks in delay in supply while 20% respondents think that Nokia products are not
available in the market for sales
Q.3 which operating system have u used in Nokia devices
a) windows operating system
b) symbain operating system
c) android operating system
choices responses
Windows os 22
Symbian os 12
Android os 7
This question was asked in order to know which operating system have the respondent
used in Nokia devices
1. Windowsphone operating system was used the maximum by the people aroung 55%
people have used the windows phone operating system
2. sybian operating system was used by 30% of the respondents this is 2nd highest
operating system used by thepeople ,it’s the most oldest operating system by Nokia
3. Android operating system was the lowest used operating system in Nokia devices, as
its newly launched in the market still 15% respondent have used this operating system in
Nokia devices
45. Q4. Do you think Nokia mobiles are user friendly? Rate it on a scale from 1 to 5 (1
being the lowest and 5 being the highest).
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a) 1
b) 2
c) 3
d) 4
e) 5
Responses choices
1 1
2 5
3 16
4 9
5 7
Close to 40 of the total Nokia handset users gave it a ranking of 3(average) on its user
friendliness. This re-confirms the fact that Nokia handset’s user interface remains
the little diffrent factor which is averagly rated by its users
people still thinks that Nokia have an average user friendly mobiles whereas only few
thinks that Nokia device have one of the worst operating system whereas 60% thinks that
Nokia makes user friendly devices which are easy to operate
Q.5. How do you rate Nokia’s after sales service compared to other companies?
(Rate it on a scale from 1 to 5 (1 being the lowest).
a) 1
b) 2
c) 3
d) 4
e) 5
Choices responses
1 0
2 8
3 17
46. - 45 - | P a g e
4 5
5 8
Just like the responses received for the previous question, close to 43% of the total
Nokia handset users reaffirmed the fact Nokia provides average after sales service
and continues to cater to after sales problems effectively and efficiently.
Around 30% people thinks that Nokia after sales services is excellent,they are always
satisfied by the after sales service provided by Nokia
Whereas 20% thinks Nokia after sales service is worst
still Nokia after sales services is average according to the responses being received,
Nokia needs to provide a good after sales service in order to come up in market
Q6. Why did you prefer Nokia over other phones?
a) Nokia brand name
b) Better features
c) User friendly
d) All the above
e) Any other reason
Choices Responses
Nokia brand name 18
Better features 5
User friendly 7
All the above 3
Any other reason 5
In this question Nokia handset user choosed Nokia devices because of the brand name
around 45% respondent went for Nokia devices because of brand name rather than the
features or user friendly interface
47. still people trust Nokia producvt because of its goodwill they received during it incline
stages,Nokia still have to go long in market in order to provide better features so that it
sales incrteases
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Q7. Are Nokia phone available with a reasonable price?
a) Yes
b) No
Choices responses
Yes 34
no 4
Around 85% respondent think Nokia are available at reasonable prices because it
provides its mobile headsets at various price ranges starting from 3000- 40000
Here there is a positive responses form respondent since Nokia concentrate on providing
its handset to various price group
Q8.Except Nokia what are your other preferred mobile phone brands?
a) Samsung
b) LG
c) Motorola
d) Micromax
e) Sony
f) Others
Brands Response
Samsung 21
LG 4
Motorola 4
Micromax 2
Sony 5
Others 2
48. This question was asked to see what other alternatives the Nokia handset users had
in their mind, it was found that a majority of the users(~48%) preferred Sony or LG
mobile handsets over others available in the market. New entrants like Micromax
made us to present this as an option in our questionnaire and as expected close
19% of the total Nokia handset users said that they would have preferred it as an
alternative. Perhaps with time as these new entrants build their brand equity they
would erode into Nokia’s market share.
around 55% respondent have used or using the Samsung product and this is the strongest
competitor to Nokia in India as well as in international market .Nokia should try to
provide better product with better spec so that Nokia can regain its market share and
increase its goodwill
Q9. If a mobile company offers same features, quality and price as Nokia, will u still
go with Nokia?
a) Yes
b) No
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Choices Responses
yes 19
no 19
This is another question to which we received mixed response, but
we can say that with the entry of new players in this market the number of Nokia handset
users saying NO to this question would increase, as more number of
alternatives would be available with them.
Here the answer from the respondent was 50-50% as 19 respondent would go switching
from Nokia to some other brand whereas rest 19 respondent would still go with Nokia
brand
Q10. Did you own a Nokia mobile handset before?
a) Yes
b) No
49. - 48 - | P a g e
Choice Response
Yes 38
No 2
A majority of the total respondents had owned a Nokia handset before, and in
order to find the reason behind changing/not owning a Nokia handset the next
question was asked.
Q11. What was the primary reason behind changing/not owning a Nokia handset?
a) Availability of other mobile phones with better features
b) Nokia handsets were too costly
c) Brand loyalist to some other brand
d) Bad service Encounter(only for those who had owned a Nokia handset in the
past)
e) Any other reason
Choices responses
Availability of other mobile phones with better features 27
Nokia handsets were too costly 1
Brand loyalist to some other brand 1
Bad service Encounter(only for those who had owned a Nokia
1
handset in the past)
Any other reason 6
It was found that a majority of the respondents thought that roughly 1/3rd of the
respondents thought that the Nokia handsets were too costly. While only 2 out of the 16
who had owned a Nokia handset before had experienced a bas service
encounter. Other reasons could be certain offers available with a particular handset
or peer pressure etc.
50. - 49 - | P a g e
CONCLUSIONS AND RECOMMENDATIONS
4.1 Conclusions
a. Responses from the sample indicate Nokia lacks far behind its competitors in
terms of innovation and new features.
b. Respondents found the Nokia phones are readily available. Hence distribution is
one the strengths of Nokia India
c. Majority of the responses indicate that Nokia has done pretty well in the facet of
user friendliness in its mobiles.
d. More than half of the respondents felt Nokia provides an excellent after sales
service.
e. User-friendly interfaces of mobiles and brand name were the top most factors for
buying a Nokia Mobile.
f. Surprisingly, close to 2/3rd of the respondents felt that Nokia Mobiles were
overpriced.
g. samsung was the preferred alternatives when Nokia mobile is unavailable.
New entrant like lg was not far behind.
h. High price and brand loyalty to competitors’ brands were the main reasons of
respondents for not owning Nokia Mobiles.
i.Nokia still lacks far behind in prviding the valuble apps which a mobile handset user
wants
The drop of shares of Nokia is possibly one of the most analysed and written about cases
and analysts believe Nokia lost shares due to a combination of reasons:
51. 1. High on feature and competitively priced products from global majors such as
Samsung, LG, Sony at the top end.
2. Entry of feature rich but cheap Chinese handsets under local brands such as Micromax
and Karbonn at the lower end
3. Its inability to find a universal platform like Android for its smartphones. This,
analysts feel, will hound Nokia much longer and much harder as the market continues to
shift to smartphones from feature phones.
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4.2 Recommendations
During the course of research on this project (Preference of Nokia mobiles over
other cell-phones) we have come to know a lot of interesting facts and Information
regarding Nokia. Nokia is undoubtedly the market leader in the cell-phone market.
Nokia still dominates the world cell-phone market share.
However, Nokia is facing certain challenges that have affected its sales at present.
Nokia has predicted low sales for 2009 and that is due to the global economic
slowdown which has resulted in sharp pull back in global consumer spending. The
sales of Nokia have also been affected quite badly by the recent launch of some
duty-free cheap cell phones. Moreover, there are some areas where its competitors
are giving a run for their money like product designing, modifications etc. Through
our collaborative research, we have found out some areas where Nokia should
emphasise more so that it continues to be the market leader and have an edge over
its competitors. These include further focus on –
1. Product competitiveness: The products of Nokia should be superior or at least at
par with the competitors’ regarding technology, designing and features etc.
2. Customer satisfaction: Nokia should come up with more value added products
and effective after-sales services i.e., service centers should be
well-equipped to handle customer concerns and there should be proper coordination
between them. It should focus on customization to gain greater customer
satisfaction.
3. Research and Development: In order to retain the position of a market leader
Nokia should incorporate the latest technological innovations into their handsets and
should put stress on further development.
4. End to End capability: Stress should be given on end to end capability by
integrating mobile devices applications and infrastructure.
52. 5. Efficient, manufacturing, logistics and high quality products and services should
be maintained
6. Nokia should focus on bringing out new features and should not fall behind on
fast-paced innovation.
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7. Nokia should launch more variety of models targeting the price-sensitive
customers as customers want more value for money.
4.3 LIMITATIONS
1. During interview I found out that the customers have a blind faith regarding Nokia
India which we could not explain in quantitative terms
2. The respondents were biased to some extent with the respective brands
3. The research was limited to only 40 respondents whereas in reality the universe
is too big. Hence statistical data might change if we further increase the sample size
.
4. The accuracy of the some data is indeterminate as few respondents were
ignorant and hesitant towards their response.
5. Time and money was another constraint in my project completion
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BIBLOGRAPHY
http://www.thehindubusinessline.com/on-campus/case-studies/can-Nokia-regain-share-in-
India/article5440360.ece
http://www.wpcentral.com/Nokia-s-market-share-India-grows-5-q3-2013-positive-signs-further-
growth- idc
http://www.91mobiles.com/top-10-Nokia-mobiles- in-India
http://www.dqweek.com/dq-week/news/16815/Nokia-India-creates- history
http://de.nsn.com/nn/press/press-releases/bharti-airtel-and-nsn-sign-memorandum-of-understanding-
for-a-usd-900-mn-end-to-end-network-expansion
http://www.Nokia.com/in-en/
http://www.slideshare.net/manager789/52570415-CRMfinalreport-on-Nokia
http://en.wikipedia.org/wiki/Nokia
http://de.nsn.com/nn/press/press-releases/bharti-airtel-and-nsn-sign-memorandum-of-understanding-
for-a-usd-900-mn-end-to-end-network-expansion