Nitesh project

A PROJECT REPORT
ON
INTERNATIONAL OPERATIONS
AT
NOKIA INDIA PVT. LTD.
Under the guidance Of
MR. SHIVENDER KUMAR TIWARY
Submitted by
NITESH KUMAR
Registration Number: 1408020834
in partial fulfillment of the requirement for the award of the degree
MBA
In
OPERATION
<JULY> & <2016>
i

ACKNOWLEDGEMENT
With profound sense of gratitude and regard, I convey my sincere thanks to my guide
and mentor, for their valuable guidance and the confidence they instilled in me, that
helped me in successful completion of the project report.
I thank my project guide Mr.SHIVENDER KUMAR TIWARY, design for the level of
interest that they took in my project. They were the persons who actually have given
my project the present shape, their advice, comments, and critisms on my work has
helped me in rectifying many of the flaws and defects in my work.
It is my privilege to express my profound sense of gratitude and sincere indebtness to
my thesis guide Mr. Shailabh Pandey, Sr. Sales Manager, Nokia. for his inspiring
guidance and invaluable cooperation.
This acknowledgement would be incomplete without thanking the college faculty, who
helped me in all possible ways with their wholehearted co-operation.
Last but not the least I am ever grateful to my friends for their help and support in
completing my project.
ii

CONTENT
1. INTRODUCTION 1-3
2. LITERATURE REVIEW AND PROBLEM FORMULATION 4-64
• Telecom in India 5
• FDI Policy in the Telecom Sector 7
• Mobile Handset industry 8
• Products 19
• International operations of Nokia 28
• Operations of china handset distribution channel 33
• Advertisements in TV`s 38
• International Marketing Strategy 42
• Comparative study 48
• SWOT Analysis 62
3. RESEARCH METHODOLOGY 65-67
• Objective 65
• Methodology 66
4. DATA ANALYSIS AND INTERPRETATION 68-75
5. CONCLUSION AND RECOMMENDATIONS 76-82
• CONCLUSION 76
• RECOMMENDATION 79
6. BIBLIOGRAPHY 81
7. APPENDIX 82-83
• Questionnaire 82
iii

INTRODUCTION
Nokia is a mobile telecommunications company, and offers far more than just mobile
phones for everyday use. They offer networking solutions for businesses that help
businesses stay connected and communicate with each other at all times and places. For
them, Nokia also offers special mobile phones with exquisite and unique functions and
options. In this project, we will first talk about what Nokia is and what they do. We
will talk about their history, and how they came to where they are today. Vision, goals,
and their strategy are discussed, as well as their wide variety of products and services
offered for the regular consumer, businesses, and service providers. Nokia’s success
benefits were some advantages they had in the market. These also include the advance
technology and features, as well as services they offer to their consumers. However,
like most other companies, Nokia has some weaknesses, but we consider these to be
very minimal, and almost only come down to their competition. Lastly, we will talk
about their informational business model. This model includes Nokia’s work
organization, control system, industrial relations, human resources, business strategy,
and finally, enterprise organization. We will look closely at and discuss all of these
elements, and why we think that they are relevant to Nokia.
Mobile phone market in India is going through major changes. Key players are losing
market share while new and young companies, mostly from Asian countries, are
coming to the market. At the same time the market is slowly expanding when people
are buying more phones than ever. The whole process of buying mobile phones has
changed in the last few years. People no longer carry the same phone year in year out;
change is the fast technological development of the phones. But also consumer’s but
they change their phone every year, some even twice a year. One reason for these
attitudes towards mobile phones has changed. Mobile phones are no longer seen as
expensive, hi-tech products, but they have become accessories like jewellery or a piece
of clothing. “Nokia is still the largest mobile phone company in the world, but its long-
term dominance is now challenged more than ever and emerging markets.”
1

Mobile phones have become an integral part of everyone's life and Nokia leads this
market. They currently have a market share of more than 75% and are still trying to tap
more opportunities. Nokia was able to establish such a strong position mainly because
of its efficient and wide distribution network. Nokia has different kind of distributors
varying from authorised dealers who deal with only Nokia to multi-brand stores and
also face the threat of grey market. In this report the various levels in the distribution
channel have been identified and the role of every channel member has been studied in
detail. They contribution of each distributor and their challenges has been explained in
brief.
Apart from providing handsets, Nokia also provides after sales service, a channel for
handset replacement and also mobile accessories. The channel for all these services
along with the competitors in this line has been mentioned in this paper.
The first chapter of the findings deals with the history of Nokia- how it has come to its
present form and different phases of the growth of the company and it is followed by
the profile of the company internationally and different business units of Nokia with
their objectives and then followed by the marketing strategies & the company’s
operations internationally.
Then we talk about operations in India where introduction is given of cellular telephony
in India and we talk how cellular company and cell manufacturers are closely related.
This section is finished with a profile of Nokia.
After this we talk about marketing strategies of Nokia in India and it has been divided
into product ,price, place and promotions followed by community involvement
activities of Nokia internationally in which they take active interest and they promote
themselves as an environmentally friendly company. It is followed by the production
strategies of Nokia and then how Nokia has profiled its customers.
To do a comparative study with the leading mobile market and Nokia, I have also
studied the Chinese mobile market and have compared the distribution channel of
Nokia with their distribution. Importance of service providers like Airtel and Reliance
Communications to promote Nokia along with the airtime connection esp. in CDMA
technology had been studied.
2

In conclusion, it has been seen that the channel used by Nokia has supported it achieve
their current position but this has to be modified. Competitors are getting aggressive
and have been trying to reach more people through different channels. So Nokia is now
trying to establish its own network apart from relying on support channels to reach
more people and reduce its distribution cost.
This report gives an overview on what is happening on the mobile phone market today
and analyses Nokia’s market position in the growing market. This report includes a
brief International operation to Nokia followed by an advertising and marketing
strategies, SWOT analysis of the company. Half way through the report you can find
information about consumer behavior and segmentation. At the end, this report
introduces the main strategies and objectives of Nokia for the competitive market.
Finally we try to make a conclusion of the topics discussed and attempt to give some
possible answers to the question at hand.
3

LITERATURE REVIEW AND PROBLEM
FORMULATION
From marketing and advertising perspective, consumer choice behavior or preferences
can be studied through the classical five-step (need–information search–evaluation of
alternatives–purchase–post-purchase evaluation) problem solving paradigm or through
the progression of consumer choice from a product class to brand choice. The five-step
model is usually suitable for decision making that assumes rational problem solving
behavior and, in most cases, complex decision making. The acquisition of a new high
end mobile phone follows this traditional view of buying process, but is in many
situations also affected by symbolic values related to brands. Consumer choice
behavior has some important prevailing conditions that must be taken into account
while studying choice. In the light of the classical problem solving buying behavior,
consumers engage in information search before making the actual choice. Consumer
decision making process is usually guided by already formed preferences for a
particular alternative. This means that consumers are likely to make the choice between
alternatives based on limited information search activity and without detailed
evaluation of the other alternatives like Nokia, Samsung, Lg. In close relation to
information search, evaluation of alternatives has also gained a momentum in research.
Their study on consumer’s use of five heuristics (conjunctive, disjunctive,
lexicographic, linear additive, and geometric compensatory) in the consideration set
formation found that conjunctive heuristics is the most often used decision model in the
consideration set formation for two product classes in the study . Conjunctive heuristics
means that a consumer selects a brand only if it meets acceptable standards, the so-
called cutoff point on each key attribute consumer regards as important. In this non-
compensatory method of evaluation, a consumer would eliminate a brand that does not
fulfill the standards on one or two of the most important attributes ,even it is positive on
all other attributes.
4

Furthermore, consumer buying preferences can either be approached by utilizing
different choice models examined empirically brand choice and store choice in
regard to . The research found that while neural networks have higher probability
of resulting in a better performance, hybrid models guaranteed equal or better
results than stand-alone models.
It is observed that Demographic factors have an influence on the evaluations of
different attributes related to new high mobile phone choice, Consumers value personal
time planning properties in the choice of new high end mobile phones,New technical
properties increase consumer willingness to acquire new phone models, When choosing
between different mobile phone models, consumers value larger screen size but the
whole phone should be small enough and light to carry in pocket,When choosing
between different mobile phone models, especially lower income consumers have a
price limit that restricts the choice to fewer models.
TELECOM IN INDIA
The Indian telecom market has been displaying sustained high growth rates. Riding on
expectations of overall high economic growth and consequent rising income levels, it
offers an unprecedented opportunity for foreign investment. A combination of factors is
driving growth in the telecom market, promising rich returns on investments.
India is the fourth largest telecom market in Asia after China, Japan and South Korea.
The Indian telecom network is the eighth largest in the world and the second largest
among emerging economies. The industry has witnessed an explosive growth in recent
years. Tele density has more than doubled from 2.3 per cent in 1999 to 4.8 per cent in
2002. However, the world average is almost 7.5 times and the Asian average 4.5 times
the Indian average. The Indian telecom market size of over US $ 8 billion is expected
to increase three fold by 2012. The expansion of the telecom industry in India has been
fuelled by a massive growth in mobile phone users, which has reached a level of 10
million users in December 2002, an increase of nearly 100 per cent in 2002. This
exponential growth of mobile telephony can be attributed to the introduction of digital
cellular technology and decrease in tariffs due to competitive pressures. For the first
time in India, the growth of cellular subscriber base has exceeded the fixed line
5

subscriber base. However, cellular penetration is still 1 per cent as compared to world
average of around 16 per cent.
6

MACRO ECONOMIC IMPETUS
Over the past 10 years, India has registered the fastest growth among major
democracies, having grown at over 7 per cent in four years during the 1990s. It
represents the fourth largest economy in terms of “Purchasing Power Parity”.
According to a recent Goldman Sachs report, over the next fifty years, Brazil, Russia,
India and China - the BRIC economies- could become a much larger force in the world
economy. “India could emerge as the world’s third largest economy and of these four
countries; India has the potential to show the fastest growth over the next 30 to 50
years”. The report also states that, “Rising incomes may also see these economies move
through the ‘sweet spot’ of growth for different kinds of products, as local spending
patterns change. This could be an important determinant of demand and pricing
patterns for a range of commodities”. The share of the services sector as a percentage of
total GDP is also predicted to rise from the current 46 per cent to about 60 per cent by
2020. The boom in the services sector is slated to come from India, emerging as a
chosen destination for software and other IT enabled services, tourism etc. According
to a Nasscom- McKinsey & Co. Study, by 2008,the Indian IT software and services
sector will account for US$ 70-80 billion in revenues; employ 4 million people, and
account for 7 per cent of India’s GDP and 30 per cent of India’s foreign exchange
inflows.
DEMOGRAPHIC IMPETUS
Population projections from the Planning Commission of India suggest that the share of
the working age population (15-64 years) in total population will grow from the current
59 per cent to about 65 per cent, translating into 882 million by year 2020. According
to the Vision 2020 document of the Planning Commission of India, the country will
witness continued urbanization . The urban population is expected to rise from 28 per
cent to 40 per cent of total population by 2020. Future growth is likely to be
concentrated in and around 60 to 70 large cities having a population of one million or
more. This profile of concentrated urban population will facilitate customised telecom
offerings from operators. Over the years, spending power has steadily increased in
India. Between 1995 and 2002, nearly 100 million people became part of the
consuming and rich classes. Over the next five years, 180 million people are expected
7

to move into the consuming and very rich classes. On an average, 30-40 million people
are joining the middle class every year, representing huge consumption spending in
terms of the demand for mobile phones, televisions, scooters, cars, credit goods and a
consumption pattern associated with rising incomes.
FDI POLICY IN THE TELECOM SECTOR
Foreign Direct Investment (FDI) was permitted in the telecom sector beginning with
the telecom manufacturing segment in 1991 - when India embarked on economic
liberalisation. FDI is defined as investment made by non-residents in the equity capital
of a company. For the telecom sector, FDI includes investment made by Non-Resident
Indians (NRIs), Overseas Corporate Bodies (OCBs), foreign entities, Foreign
Institutional Investors (FIIs), American Depository Receipts (ADRs)/Global
Depository Receipts (GDRs) etc. Present FDI Policy for the Telecom sector:
 In Basic, Cellular Mobile, National Long Distance, International Long
Distance, Value Added Services and Global Mobile Personal Communications
by Satellite, FDI is limited to 49 per cent (under automatic route) subject to
grant of license from the Department of Telecommunications and adherence by
the companies (who are investing and the companies in which investment is
being made) to the licence conditions for foreign equity cap and lock-in period
for transfer and addition of equity and other licence provisions.
 Foreign Direct Investment up to 74 per cent permitted, subject to licensing and
security requirements for the following:
- Internet Service (with gateways)
- Infrastructure Providers (Category II)
- Radio Paging Service
 FDI up to 100 per cent permitted in respect to the following telecom services:
- ISPs not providing gateways (both for satellite and submarine cables)
- Infrastructure Providers providing dark fibre
- Electronic Mail
8

- Voice Mail
The above is subject to the following conditions:
 FDI up to 100 per cent is allowed subject to the condition that such companies
would divest 26 per cent of their equity in favour of Indian public within 5
years, if these companies are listed in other parts of the world.
 The above services would be subject to licensing and security requirements,
wherever required.
 Proposals for FDI beyond 49 per cent shall be considered by Foreign
Investment Promotion Board (FIPB) on a case-to-case basis.
 In the manufacturing sector 100 per cent FDI is permitted under the automatic
route.
MOBILE HANDSET INDUSTRY
With rapid consumerism sweeping the country, India has emerged as the second largest
mobile handset market, poised for explosive growth by 2008. Industry observers are of
the view that market within the 2006-07 could well
become a global hub for mobile handset
manufacturers. With an eye on the impending
growth opportunities, RNCOS's market research
report “India Mobile Handset Market (2005)”
analyzes the current market scenario and the
technological developments driving the demand
graph.
The report, quoting the experts’ view, estimates
that the total market value worth Rs.8.05billion
(US $2billion) as of 2004/05 will surge by 62% with approximately 100-million
subscribers nationwide in 2007. The study further reveals that Indian mobile
subscribers are willing to pay for upgrades, value-based services, and advanced models
that provide better services.
9

Dominated largely by Nokia with a total market share of 59%, followed by Samsung
(13%) and Motorola (7%) respectively, Indian mobile handset market is currently
catering to 45 million subscribers (2005). Recent records show that Indian GSM
cellular user base has grown from 43 million, as estimated in May, to 45 million in
2005, representing a growth of 3.50% in the month under review, witnessing large and
propitious foreign investors flooding the market eyeing for large chunks. In addition,
recent changes imbibed in the government policies that price mobile handsets at a
lower end with flexible custom-duty for new entrants are startling the market with
multiple models largely aimed to higher and middle-income groups.
10

COMPANY PROFILE
Nokia is a world leader in mobile communications, driving the growth and
sustainability of the broader mobility industry. Nokia connects people to each other and
the information that matters to them with easy-to-use and innovative products like
mobile phones, devices and solutions for imaging, games, media and businesses. Nokia
provides equipment, solutions and services for network operators and corporations.
Nokia is a broadly held company with listings on four major exchanges.
HISTORICAL BACKGROUND
At the beginning, Nokia was a manufacturer of paper in 1865. After World war II, the
requirement of industrial products increased substantially. Nokia changed its function
to an industrial enterprise and produced products like chemicals and rubbers. Until
1960’s Nokia had set electronic department and focused on developing transmission
systems.
The Journey into Tele-communications
Nokia’s Cable Work’s Electronics Department started to conduct research into
semiconductor technology in the 1960’s.Nokia began to develop the digital switch
(Nokia DX 200) which became a success. This was equipped with the high level
computer language and Intel micro processors gradually evolved into the multifaceted
platform that is still the basis for Nokia’s network infrastructure today.
Focussing on Telecommunications
During the deep recession in Finland at the beginning of the 1990’s, the
telecommunications and mobile phones divisions were the only supporting pillars of
the Nokia. In May 1992,Nokia made the strategic decision to divest its non- core
operations and focus on telecommunications. The company’s 2100 series phone was an
incredible success.
Nokia Today
Today, Nokia is a world leader in digital technologies, including mobile phones,
telecommunications networks, wireless data solutions and multimedia terminals
.Backed by its experience, innovation, user friendliness and secure solutions, the
11

company has become the leading supplier of mobile phones ,fixed broadbands and IP
networks. By adding mobility to the internet, Nokia creates new opportunities for
companies and further enriches the daily lives of people.
GROWTH
• Nokia continued its recovery by taking 31.9 per cent of the market, up from 29.6
per cent a year ago. Motorola consolidated its strong second place, grabbing 17.9
per cent share, up from 15.7 per cent
a year ago. The leading two sold
60.7m and 34m handsets
respectively.
• The gains came at the expense of
third tier manufacturers and
Siemens, which saw real unit
shipments fall from 10.8m to 8.89m,
a dramatic dip from 6.9 per cent
share to 4.7 per cent share. On these figures, analysts must question the wisdom of
BenQ's acquisition of the German giant's handset division.
• Emerging markets in Asia, Eastern Europe and Africa led the way. But interest in
replacing trusted handsets with 3G features wasn't particularly strong, notes
Gartner.
12

MISSION STATEMENT, STRATEGY
AND PURPOSES OF NOKIA
Mission Statement
 Customer – To maintain customer confidence by continuing to provide quality
service specifically designed to meet their needs.
 Market – To be recognised as a market innovator in the mobile phone industry to
continuing to improve our business practise.
 Business – To ensure the team has a complete understanding of all Mobile Network
Internal Systems and Procedures and that each team member is responsible for
compliance with the Business Management System.
 Training – To develop on going training strategies to empower personnel with skill
levels essential for future company success.
 The Team – To create the best possible working environment, promoting career
enhancement and job security, encouraging trust in the company and loyalty to the
customer.
Marketing Strategy
Nokia’s corporate responsibility strategy is to engage, improve and be accountable.
They constantly measure and review their performance in economic,
environmental and social issues. They engage in stakeholder dialogue and
form partnerships that serve the areas they want to improve upon. They pursue
focused and practical improvement programs in relevant organizational or
geographical areas as part of business operations - this involves business
planning, internal communications, training. They increase accountability to
stakeholders through reporting, and informative internal and external
communications activities.
What makes them unique is the way they do it. Based on the same approach that guides
the rest of their activity – ‘The Nokia Way’ - their corporate responsibility is developed
through logical steps, with much of the work concentrated inside the company, much of
the work built on existing programs, and many stages taken forward in parallel.
13

According to them it is essential to drive corporate responsibility through the
company-wide strategy process, support issue owners in building business cases for
ethical improvement and implementation, and increase accountability to both internal
and external stakeholders.
For them, corporate responsibility is an integral and continuous part of decision-making
in all parts of their business; taking responsibility for the consequence of their actions.
It’s a belief that by focusing on issues over which they have most influence and which
their stakeholders consider important, they will be able to mobilize more of company
resources, be more proactive, and ensure long-term programs.
The Nokia Strategy continues to focus on three activities to expand mobile
communications in terms of volume and value:
Expand mobile voice
Drive consumer multimedia
Bring extended mobility to enterprises
Expand Mobile Voice
We believe that many opportunities for growth exist in the mobile voice market, and
we intend to continue to focus on this area. In doing so, we aim to capitalize on our
demonstrated efficiency and skill in execution and demand-supply chain management,
and our history of innovation. The markets on which we intend to focus include
markets with low mobile subscription rates relative to the size of the population,
geographic areas where it is more cost-effective to build wireless infrastructure than
fixed-line networks, and heavily populated areas, where factors such as poor housing
infrastructure or theft of materials tilt the scales in favour of wireless solutions. We also
intend to focus on markets where the need for network capacity is growing as a result
of mobile network operators promoting the replacement of fixed networks with
wireless.
Drive Consumer Mobile Multimedia
They intend to enter new product and service niches, which we expect will emerge as
technologies from diverse industries start to converge, especially in the area of
consumer multimedia. Our strategy is to explore, identify and extract revenue from the
14

most profitable and fastest growing segments of the consumer multimedia business and
its value chain by anticipating consumer needs in this area, and developing innovative
products and services. In the near term, we intend to focus on imaging and games,
where we have already introduced a number of products. Our strategy to drive
consumer multimedia will also involves leverage of our strong position in the consumer
voice market.
Bring Extended Mobility to Enterprise
We intend to capture profitable segments of the corporate market by offering products
and services that will benefit companies and individual business people alike, including
a diverse handset range as well as security and mobile connectivity solutions
specifically tailored for enterprise needs. As we do this, we intend to capitalize on
companies' needs for mobility and seamless mobile connectivity in their operations,
and also expect to collaborate with leading technology and systems integration
partners.
Business Objective
Nokia’s business objective is to strengthen their position as a leading systems and
products provider. Their strategic intent, as the trusted brand, is to create personalized
communication technology that enables people to shape their own mobile world.
Nokia innovates technology to allow people to access Internet applications, devices
and services instantly, irrespective of time and place. Achieving interoperability of
network environments, terminals and mobile services is a key part of their objective.
They intend to capitalize on their leadership role by continuing to target and enter
segments of the communications market that they believe will experience rapid growth
or grow faster than the industry as a whole.
By expanding into these segments during the initial stages of their development, Nokia
has been established as one of the world's leading players in wireless communications
and significantly influenced the way in which voice and other services have been
transferred to a wireless, mobile environment.
As demand for wireless access to an increasing range of services accelerates, they plan
to lead the development and commercialisation of the higher capacity networks and
15

systems required to make wireless content more accessible and rewarding to the end
user. In the process, they plan to offer their customers unprecedented choice, speed and
value.
In addition, they will continue to be active in IP convergence. Nokia has established
alliances with other service providers in order to make mobile access to services easier
for the end user.
AREAS OF FOCUS
To achieve their business objective, their strategy focuses on: being the preferred
provider of solutions for mobile communications; creating personalized communication
technology; driving open mobile architecture enabling a non-fragmented global mobile
services market; strengthening and leveraging Nokia, the trusted brand; and expanding
our business and market position on a global basis.
 Mobile Communications—The aim is to position Nokia as the preferred provider
of products and solutions for mobile communications by providing leading
communications networks that enable end-to-end service delivery for both cellular
and broadband networks. They develop leading high-capacity cellular networks,
platforms and user applications for the mobile Internet, end-to-end broadband
access solutions and Professional Mobile Radio systems.
 Personalized Technology—They want to strengthen their leadership position in
converging personal digital terminal solutions. They build on their core
competencies in various key areas, including design and product innovations, brand
development, and effective demand/supply network management, to bring new
product concepts and associated services to market.
 Driving Open Mobile Architecture—Nokia’s key commitment is to create a
global and open mobile software and services market. They aim to achieve this
through strong partnering with customers, suppliers and industry participants, and
solid focus on end-to-end solutions in all their development activities.
 Strengthening the Brand--According to a variety of consumer surveys, the Nokia
brand is associated with well-designed, high quality and technologically advanced
products and customer services that are also user-friendly. Having invested
16

considerable resources in establishing the Nokia name as the leading brand in
mobile communications, they intend to sustain and enhance the brand through
aggressive advertising, sponsorship and other marketing activities in all of their
principal markets. It’s a belief that the leading market position provides significant
opportunities for Nokia to better understand and respond to the usage patterns of
end users, and thus enhance the Nokia brand.
 Expanding The Business-- For more than a decade, they have actively expanded
their business globally. As a result, the network systems, equipment and wireless
terminals are produced and sold throughout the world. They, therefore benefit from
strong economies of scale throughout the organization. Nokia’s strategy is to
continue focused pursuit of global business opportunities by cultivating a strong
local presence in all growing markets and pursuing partnering and acquisition
opportunities in order to obtain complementary technologies and market positions.
At Nokia, one of the top priorities is to continue to strengthen their leading market
position in a profitable way. They believe that further market share gains are key to
expanding the customer base and developing the future business potential. Their
leading position also enhances the positive effects of their economies of scale,
which they believe should strengthen their competitive position in the next
generation of mobile communications.
STRATEGIC MANAGEMENT
This report outlines the mission statement, strategy and purposes of Nokia .It analyses
the impact of the external and internal influences on the business strategies of Nokia. It
also emphasises the strengths, weaknesses, opportunities and threats in context of
Nokia’s operating and marketing activities.
Nokia has established its leadership in the mobile phone market owing to its successful
marketing strategies and internal management. Nokia’s philosophy is to learn
continuously, to satisfy customers and to respect individual and pursue professionalism.
SECRETS TO NOKIA’S STRATEGIC SUCCESS
17

One can analyze the secrets behind how an enigmatic Finnish Company got an edge
over the US and Asian giants to triumph as the global leader in mobile
communications.
• Bold Strategic Intent – While others debate and agonize over first –mover
strategies, Nokia rushes for new opportunities and products. Growing up as a small
Finnish Company with few resources and no incumbent privileges, Nokia is
accustomed to moving swiftly and decisively to claim its share of worldwide
markets- from infrastructure to handsets and software applications.
• Innovation through Value Chain – Through technology, innovation and
segmentation, branding and design, Nokia makes innovation a top priority. Like
Proctor & Gamble, it has shrewdly filled the shelves with innovative new products
to dominate categories. Like Sony, it has used its umbrella brand to sell new
products and services and to create footholds in new markets. Unlike its direct
rivals (Motorola, Ericsson), Nokia’s innovation extends from technology
innovation to marketing activities.
• Flat Organization – Prior to its worldwide expansion, Nokia extended the use of
IT throughout the company. As it became a process organization, it has shunned
hierarchies and bureaucracy. Even the senior executives have been rotated from one
work task to another. The organization chart looks hierarchic but teams and
networking reigns.
• Entrepreneurial Spirit – Like the best Silicon startups, Nokia encourages
entrepreneurialism throughout the ranks and views failure as a learning experience.
Incentives, rewards and lifelong learning permeate the entire company. Humility is
taken seriously at Nokia as in the technology sector, the arrogant of today are
considered losers of tomorrow.
• Collective leadership – Nokia relies on its executive board, with each member
bringing something unique
• Global R & D Networks – Nokia’s R&D efforts reflect extensive collaboration
with vital research institutions worldwide. The company invests less in technology
development than its rivals, but often exploits new knowledge more efficiently.
18

Through technology coalitions it has managed to internalize new know-how while
neutralizing competitive threats.
• Competition and Co-operation – By managing its corporate and government
relations with diplomacy and consideration, Nokia has been able to avoid high
profile and costly anti-trust actions and competition policy struggles. Instead of
trying to buy or crush potential rivals, Nokia works to cooperate with suppliers,
partners, clients, even direct competitors.
• Customer Focus – The most enduring factor is Nokia’s ability and willingness to
listen to the customer –a fact apparent in its strategy, structure and resource
allocation and also in its products and services. Due to its foresight, Nokia can not
only finger at the pulse of the market – it often knows what the customer wants
even if the customer is not yet aware of this.
19

PRODUCTS OF NOKIA HANDSETS
The Nokia 1100 is compact, reliable and easy to use. All your calling, messaging, and
menu functions can be easily accessed with its
Navi™key, 2-way scroll, large display and user-
friendly buttons. With its anti-slip grip and built-in
flashlight, you can take it virtually wherever you
go. The reminder function keeps you up to date
with your daily schedule.
Easy to Use
Reliable and Practical
Fun with Personalization
Messaging Made Easy
Other Features
Call Management
Dimensions
Easy to Use
2-way scroll and NaviTM key - easy to use interface
Large black & white display - 96x65 pixels display, up to 4 lines text messaging
Silicon keymat with large keys for easy calling and messaging
Selectable font size
Localized menu language1 & predictive text input1
Built-in flashlight
Internal phone book with up to 50 entries
Anti-slip grip
Vibration alert
20

Date and time screensaver
Reminder function
Automatic key guard
Alarm
Stopwatch
Countdown timer
Fun with Personalization
Full screen animated screensavers
Picture messaging - to send a picture greeting
Built-in games - Snake II and Space Impact+
Ringing tone composer
Xpress-onTM Color Covers2
Messaging Made Easy
Easy SMS with local input method
SMS distribution list
SMS storage - saves up to 50 text messages
Concatenated SMS for long text messages
Speed dialing for SMS sending
SMS chat
Predictive text input1
SMS template
Call Management
Speed dialing of up to 9 numbers
Last number redial from dialed calls list ('Scroll up' brings out the dialed calls list)
Automatic redial (up to 10 attempts)
21

Call waiting, call hold, call divert, call timer
Automatic and manual network selection
Other Features
GSM 900/1800
Screensavers, templates and smileys
Chinese Lunar calendar support1
Additional language support: Thai T9, Vietnamese T9, Hindi T9
Dimensions
Volume: 72cc
Weight: 86g with BL-5C
Length: 107mm
Width: 46mm
Thickness: 20mm
Nokia 1108 is a reliable and compact phone, it has features like a built-in flashlight and
anti-slip grip so you'll be ready for anything.
Display & User Interface
22

Messaging Made Easy
Personalization
Games
Call Management
Dimensions
Display & User Interface
2-way scroll and NaviTM key for easy-to-use interface
Large black-and-white display within 96x65 pixels display
White LED backlit screen and keypad for an enhanced view
Silicon keypad with large keys for easy calling and messaging
Up to 4 lines for text messaging
Localized menu language
Selectable font size
Messaging Made Easy
SMS templates for quick and easy sending of pre-defined messages
Send a picture greeting with picture messaging
SMS distribution list for sending a single message to many people
Easy SMS with local input method
SMS storage – saves up to 50 text messages
SMS chat
Predictive text input
23

Dual-band operation (GSM 900/1800)
Chinese Lunar calendar support (selected markets)
Anti-slip grip for a firmer grasp
Long lasting battery
Built-in flashlight
Internal phonebook with up to 50 entries
Date and time screensaver
Automatic key guard
Reminder function
Vibration alert
Countdown timer
Stopwatch
Alarm clock
Personalization
Full-screen animated screensaver
Fixed ringing tones (1 Nokia tone and 34 monophonic buzzer tones)
Ringing tone composer
Xpress-on™ Color Covers
Games
Pre-installed games (Snake II and Space Impact)
Call Management
Speed dialing of up to 9 numbers
Last number redial from dialed calls list ('scroll up' brings out the dialed calls list)
Automatic redial (up to 10 attempts)
24

Call waiting, call hold, call divert and call timer
Automatic and manual network selection
Dimensions
Volume: 72cc
Weight: 86g with BL-5C
Length: 107mm
Width: 46mm
Thickness: 20mm
Nokia 1110 It has a talking alarm, simplified icon menu with intuitive navigation and a
4-way scroll allows. The demo mode lets one experience phone's features at a glance.
Also holds new inverted black and white display and polyphonic ringtones.
Operating Frequency
Display and User Interface (UI)
Messaging
Games
Voice Features
Time Management
Key Features
Talking alarm and clock in your language. Available in English, Hindi, Tamil, Gujarati,
Marathi and Bengali *
Built-in handsfree
Icon-based phonebook with simplified menu navigation
20-chord polyphonic ringing tones with MP3-grade sound
New inverted black and white display
Graphical demo mode for phone features both with and without SIM card
Analog clock display
25

Call management (timers, counters)
Internal antenna
Changeable Xpress-on™ color covers
Picture messaging to send a picture greeting
Three built-in games
4-way scroll key
Easy deletion of multiple messages
Undo item in SMS editor
* The phone supports a maximum of 3 langauges. Supported languages may vary.
Full Specifications
Size
Weight: 80 g
Dimensions: 103.8 x 43.8 x 17 mm, 69 cc
Operating Frequency
Dual-band GSM coverage (GSM 900/1800)
Display and User Interface (UI)
New inverted black and white display
Reversed monochrome, 96 x 68 pixels
Simplified menu and navigation with 4-way keys make making phone calls easier
Graphical demo mode of basic features, accessible also without SIM card - efficient for
self-study
Icon menu - less dependent on text, makes the call more easily
Large contact storage - up to 200 entries in built-in phonebook with up to another 250
stored in the SIM card (SIM card dependent)
26

Messaging
SMS and picture messaging
Over the air ringing tones and logos (over SMS)
Support up to 60 SMS on SIM card (SIM card dependent)
Large SMS storage on phone - up to 60 SMS
Multiple SMS deletion
Undo item in SMS editor - to avoid accidental deletions, improving the SMS use
efficiency
Games
Snake Xenzia, Dice Games, Pocket Carrom
Language Support
Asia Pacific:
Menu and predictive text input in English, Bahasa Indonesia, Bahasa Malaysia,
Simplified Chinese, Traditional Chinese, Hindi, Thai, Filipino(Tagalog), Vietnamese
Voice Features
Integrated handsfree
Talking clock and alarm
Polyphonic ringing tones with MP3-grade sound
Time Management
Alarm clock
Analog/digital clock - make your own choice as your prefer
Reminders
27

Phone Features
Handy size - easy to carry
Changeable Xpress-on™ color covers - refresh the look of your phone
Large keys - easier on the eyes
Built-in handsfree speaker useful for handsfree operation or teleconference
20-chord polyphonic ringing tones with MP3-grade sound for you to distinguish your
phone in the crowd
Stopwatch
Composer
Number screening for messaging and call
Sales Package Contents
Nokia 1110 phone
Nokia Battery BL-5CA
Quick Guide and User Guide
Nokia Standard Charger ACP-7/Nokia Travel Charger ACP-12 (varies by region)
28

INTERNATIONAL OPERATIONS OF NOKIA
The roots of Nokia go back to 1865 and the establishment of forest industry operations
in South-Western Finland by mining engineer Fredrik Idestam. The company ran a
ground wood mill on the Nokia river, hence the name of the company.
Finnish Rubber Works Ltd was founded in 1898, and in 1912 Finnish Cable Works Ltd
began its operations. Gradually the ownership of these two companies and Nokia
shifted into the hands of just a few owners. Finally in 1966 the three companies were
merged to form the Nokia corporation.
Nokia was a multi-branch company up to the early 1990s. The electronics unit was still
fairly small in the 1970s. The main lines of production were cables, rubber and paper.
In the early 1980s, Nokia started to strengthen its position in the consumer electronics
and telecommunications market by acquiring several European electronics companies.
Due to acquisitions and its historic background, Nokia had no less than eleven business
lines during 1986-88.
Since the late 1980s, Nokia has gone though a comprehensive metamorphosis. The
company sold and acquired several business units within just a couple of years. From a
multi-branch conglomerate, Nokia has been transformed into a purely ICT company.
The period of rapid divestment and acquisitions was led by a young management team
under CEO Jorma Ollila. Under his leadership, Nokia has grown to become Finland's
largest firm and a leader in mobile communications world-wide. Nokia's world market
share in cellular phones is some 30 per cent, far beyond its main competitors, Motorola
and Ericsson.
Nokia, is an international organisation which requires to focus on macro environmental
factors. Macro Environmental factors comprise Political, Economical, Society and
Technology, viz., PEST Analysis. In view of the different culture and different external
factors between different countries, Nokia has to adjust its strategic plan in order to
develop international market.
29

Political Factors
It is important of a company to acquire certain kind of policies from its government,
such as the economic policy, and science and technology policy. Finnish policies assist
Nokia to advance its products.
The Finnish policies are the most important factors behind Nokia’s success. To operate
efficiently, a modern knowledge- and technology-based economy that is highly
specialized, internationalized and undergoing rapid structural change requires active
support from the public sector. In its widest sense industrial policy and science and
technology (S&T) policy comprise all those measures by which the public sector
shapes the operating environment for business and thus fosters public welfare. Both
policies pursued by Finnish government and the Parliament are crucial for the
development of both, the Finnish Economy and of national information society.
General macroeconomic stability, low interest rates, stable currency conditions and the
international competitiveness of the tax system form the foundation for the growth of
business and improvement in employment. As the result of this, not only Finnish
Government but also international companies, such as Nokia, have to play very
important roles to develop their information society and national technology strength.
Economic Factors
According to the fact that Russian Federation was collapsed in early 1990s and it
clashed with Finnish economics. Nokia also faced problems, and changed its functions
from single market and overall products to global market and focusing mobile phone
market.
During the first half of the year 2001, Nokia continued to perform strongly in the global
mobile communications market and was able to strengthen its leading market position.
However, the general economic slowdown in the US has recently shown signs of
extending to other regions and to the wireless telecommunications industry as a whole.
The slowdown could be a result of a general market deterioration - driven by economic
uncertainty, the ongoing technology transition and less aggressive marketing by the
operators.'
30

In a press release on June 12, 2001 it was quoted that ‘Nokia saw slower market
growth affecting second quarter results and was to take up actions to expand
leadership while maintaining strong profitability’.
Nokia will continue to take determined actions in all areas of the business to align its
operations with the changing market conditions. Previously announced moves to
increase the company’s efficiency and competitiveness include operational changes to
further enhance customer focus in Nokia Networks.
While market deterioration has had an inevitable impact on Nokia's sales growth, their
products have remained strong, their market position has strengthened and they have
been able to find further efficiencies through tight control of their own performance.
Nokia has countered changing market conditions by accelerating ongoing programs and
generating efficiencies and cost savings. This, in combination with the current financial
health and proven performance, should enable them to exit the current slowdown in a
stronger position than before.
Society
At Nokia, their whole business is based around communication and connecting people.
One of Nokia's aims is to make it as easy as possible for their people to be satisfied
working with them. Thus, it keeps various stakeholders interests in mind.
Nokia develops products and services that encourage communication and learning
among people and societies. They are using their strengths - connecting and
communicating - to help make a difference. It complements the core business and their
vision to be involved with the youth and education issues around the world, preparing
young people for their future.
The goal is to be a good corporate community member wherever they operate, as a
responsible and contributing member of society. Sharing in the belief that prevention is
better than cure, they take part in long-term projects aimed at helping young people to
create a firm foundation for themselves and to find their place in the world.
31

Technological Factors
In the 1980s, there was a trend towards microcomputers and Nokia tried to match this
tendency by producing its main products as computers, monitors and TV sets. Due to
the changes in 1990s, Nokia also changed its functions to mobile phone market. .
Sustainable development and environmental protection have various effects on the
operation of the innovation system. Innovation also creates new opportunities for
promoting sustainable development.
Nokia always improve their product line through Research and development process,
beside this Nokia also has multimedia compatible improvement with mobile at the
same time, such as, GPRS and WAP Service.Nokia has numerous technologies which
can satisfy those end-users need, such as, Bluetooth, Symbian, SYNCML, M2M,
Wireless LAN and Java.Nokia employed more than 17,000 people in R&D department
over fourteen countries worldwide. They also provided customers to choose the
features and service that they personally want and need. It means Nokia does not
develop only their product line, but they also improve their service process to provide
the most appropriate service to those customers efficiently.
The most quickly developing agglomeration of knowledge-intensive activities in
Finland is the ICT cluster formed by information and communications sector
companies. The cluster includes a network of hundreds of small and medium-sized
companies as well as a rapidly growing operator and service sector, but Nokia is clearly
its core.
Nokia has grown to become a multi-national giant in a small country. Its contribution to
the Finnish economy is significant. Nokia's exports alone are larger than that of the
total paper industry - the sector that previously dominated the economy. Nokia is, of
course, the major player in the ICT cluster. But it is not alone. Altogether there are
some 3000 small and medium-sized companies in the cluster. Some 300 of these are
direct first-tier suppliers to Nokia, known as the Nokia network. Nokia's direct
contribution to the Finnish economy can be summed up as follows:
Nokia's contribution to:
32

GDP 4 %
GDP growth 1.5 % points
Business sector R&D 35 %
Exports 25 %
Total Employment 1 %
Manufacturing employment 5 %
4%
35%
25%
1%
5%
0%
5%
10%
15%
20%
25%
30%
35%
GDP GDP growth
Business sector R&D Exports
Total Employment Manufacturing employment
Number of Distributors and Retailers:- There is no authoritative statistics as for the
total number of handset products distributors and retailers. There are only roughly 30
large handset distributors in Mainland China, including chain distributors such as
Shanghai CellStar, China Everbright Telecom, Beijing Zoomflight Telecom, and China
Motion Telecom, and original computer and network products distributors such as
33

China Digital. On the other hand, some large handset agents hold a rather significant
market share. One example is that 3 national general agents, China Postel Mobile
Communications, Chinatelling Communication. and ChangYuan Telecom hold a
combined market share of over 50% among all handset agents.
OPERATIONS OF CHINA HANDSET DISTRIBUTION CHANNEL
INTER - CHANNEL RELATIONSHIP
The operation of handset distribution channel mainly involves flow of capital, logistics,
business flow and information. The operation of handset distribution channel is
different from that of other IT products mainly in its relationship with operators. The
following diagram shows the operation distribution of handset in China market.
Capital, logistics, business &
Information
Information
information
Capital & information
The inter-channel relation for Nokia is very strong; this is mainly due to the fact that it
is the leading brand in India. So most of the retailers and multi-brand stores stock many
34
HANDSET
DISTRIBUTORS
HANDSET
DISTRIBUTORS
First Tier DistributorsFirst Tier Distributors
Second Tier
Distributors
Second Tier
Distributors
Mobile Phone
Operator
Mobile Phone
Operator
End UsersEnd Users

Nokia handsets and have also strengthened their replacement and service channel and
Nokia is the most used handset.
Distribution Model for GSM Handsets
The development of GSM technology is comparatively advanced, and
telecommunication operators are experienced with managing GSM services, therefore
the corresponding distribution channels are also relatively mature. The common
channel mode for GSM handset is shown in the following diagram.
The goods from the manufacturer are sent to national general agents and regional
branch companies. They in turn send it to the second tier agents who function like the
distributors or the stockiest in India. They further sell it to the retailers, similar to India
and supermarket chains, which we call as modern trade distribution channel in India.
GSM IN INDIA – NOKIA & BHARTI AIRTEL
35
ManufacturersManufacturers
National General AgentsNational General Agents Regional BranchRegional Branch
Second Tier AgentsSecond Tier Agents
Handsets RetailersHandsets Retailers Dept.Store, SupermarketDept.Store, Supermarket
ConsumersConsumers

Bharti Airtel is the leading service provider in India. The contract between Nokia and
Airtel helps both parties to expand its network further and deploy more opportunities.
Nokia will also deploy its WAP solution across Airtel's national network to enhance the
operator's mobile packet core network capabilities.
To further penetrate the mobile market in Delhi and NCR region, Airtel has announced
its initiative to drive affordability through bundling with Nokia. This bundling offers a
wide choice of handsets as well as validity. Nokia handsets will be offered with a free
Airtel Prepaid SIM Card with validity options ranging from 18 months to lifetime.
DISTRIBUTION MODEL FOR CDMA/GPRS HANDSETS
While the technology of CDMA & GPRS is relatively immature, the corresponding
telecommunication operation business has not fully developed in China. Their
distribution channels are still being improved. Operators play an important role in
handset distribution of such types of handsets. For example, China Mobile has been
dominating the mobile market sales with GSM handsets. As a late comer in this market,
China Unicom is seeking an opportunity to catch up and exceed China Mobile's market
share by being actively involved in promoting CDMA handsets. The common mode for
CDMA &GPRS handset distribution is shown below.
36
Manufacturers
Operators Large Distributors
Operators’ outlets/ Agents, chain stores
Consumers

The distribution for CDMA is a little different from GSM distribution. There is no
stockiest level in the system. The phones are directly transported from manufacturer to
the operators who put in their SIM for sale to outlets or supermarkets or they are sold to
large distributors akin to wholesalers who then ship it further to the outlets or chains
(modern trade) for sale.
CDMA in India
Though the CDMA market is not the developed in India, Nokia has handsets which can
tap this small market too. As CDMA connection is more interlinked with the service
provider, Nokia has established links with Tata Indicom and Reliance the leading
CDMA providers in India.
Nokia with Tata indicom
Models like Nokia 6265, Nokia 6275 are distributed through Tata Indicom Channels.
They also provide the facility of upgrading the phone by retaining the same number.
Thus Tata Indicom is also providing a channel for Handset replacement.
Nokia with Reliance
Nokia has introduced a CDMA handset which is cheaper than Rs.2000 and is
distributing it with the support of Reliance Communications. This is mainly to reach
people who cannot afford expensive mobiles and to further increase Nokia's reach in
rural India, where this model is a widely accepted.
Different Types of Stores of Nokia in India
Nokia being the market leader in mobile phones, its way of operating is usually
different from its competitors. Nokia operates according to its customer segmentations.
Nokia motto of connecting people and for this Nokia is spreading its wing in every
parts of the country. Seeing the great opportunity in rural India, Nokia is opening new
stores there depending upon the prospect of that area.
Generally Nokia is operating four types of stores in India depending upon the areas and
the surroundings:-
1) Nokia Concept Store ( NCS )
2) Nokia Priority Dealer ( NPD )
37

3) Nokia solution Point ( NSP )
4) Nokia Shop-In-Shop ( SIS )
Nokia Concept store (NCS): - There are a total of nine Nokia Concept Stores
designed in the global formats across the country. Nokia opened its first Concept Store
in Bangalore, which was also the country’s first such store in India. The aim was to
provide customers a complete experiential mobile experience. The layout and design of
the store follows the same pattern as Nokia Concept Stores around the world to
guarantee an easy and informative shopping experience. With a simple-to-navigate
setup, open doorways and low-glare lighting, the store provides a relaxed and satisfying
customer experience. The idea is also to inspire and educate consumers on the benefits
of Nokia’s latest products and technology through a hands-on experience.
Nokia Concept Stores are designed to express Nokia brand heritage. The aim is to reach
out to our consumers with end-to-end exposure on Nokia products and services all
under one roof.
The offerings at Concept Stores
Nokia Concept Stores also offer a complete portfolio of Nokia mobile devices,
enhancements and services including email, music, imaging and gaming to its
customers.
With its futuristic and high-tech ambience and a trained staff to assist customers, the
stores provide the latest mobile applications and solutions across business domains.
Nokia Concept stores are always equipped to deliver newer concepts, services and
products, a completely redefined solutions experience in a truly compelling
environment.
Future connections
The future speaks a lot about the retail concept of the brand. For the concept stores a
special team of highly trained Nokia Solution Specialists are taking care of Nokia’s
solution selling philosophy at the retail floor. These solution specialists engage the
consumer, understand their needs and create experiences through demos and stories.
The retail strategy for the concept store remains focused on ‘availability’ of the latest
launched Nokia handset.
38

The retail differentiation in the philosophy of Nokia Concept Stores, comes through in
Solution Selling where the device is not an end in itself but a way to a solution.
"Nokia’s strategy is to be present critically at ‘concept’ selling at high-end retail points
across major cities and key locations.”
Nokia Priority Dealer (NPD):- The NPD store is the second store which Nokia is
looking out. In a NPD store there are minimum 4-5 employees, one is cashier; two of
them are sales promoter and one peon employed by the franchises owner and above all
one Solution Specialist employed by Nokia. The main criteria of getting a NPD store
are that an area of minimum 600sq ft is required in a good location. After the
application, Nokia will look into the profile of the applicant and then it will decide after
examining the all required factors that whether franchisee is to be allotted or not to the
desired applicant. 58 NPD stores are functioning in Delhi. The minimum monthly
target for a NPD store is more than Rs.15,000,00.
Nokia Solution Point (NSP):- The third type of store is Nokia solution point (NSP).
This store can be opened on alone or it can be opened with other brands under one roof.
Again it is owned by an individual but whole operation is looked after by Nokia. One
solution specialist is deployed here by Nokia. Solution specialist helps customers to
choose right mobile phone which matches with their requirement. The minimum
monthly target for a NSP is of Rs.10,000,00.
Shop-in-Shop counter (SIS):- The fourth and the last type of store is the shop-in-shop
store. This is a small counter with a minimum monthly target of Rs. 5,000,00. These
types of outlet can be seen in rural areas also. This type of outlet is given to person who
are already running a shop and if he wants to open the Nokia store in his existing shop.
ADVERTISEMENTS IN TV`S
We have observed that strategy in television is entirely different when Nokia decides to
start its marketing inniotaitive on tv. The focus is more on emotional appeal and the
most commonly appeal used by Nokia is the life style .who can forget the soup ad of
Nokia and their latest campaign on Nokia 8810. The most preferred channel in India for
Nokia is CNBC followed by star and then SONY
39

PUBLIC RELATIONS:
Mostly it is done by South East Asia operations and it deals with printing of articles in
magazines which mainly deal with business, leisure and newspapers. The articles are
mainly written by prominent personalities about their product and its features. Another
form of public relations being used is the use of bollywood stars. Nokia has sponsored
certain scenes in few movies which are targeted at upper class with the actors
possessing the latest models of Nokia. It is a very successful tool and has helped Nokia
in building the brand name.
PROMOTIONS :-
Promotions are normally done by sponsoring the events which are mostly related to
sports and games like golf, Polo, Cricket And sponsoring of other events like fashion
shows, movies, Co promotions Etc. This tool has been second most preferred tool used
by Nokia in India.
LOCAL COMMUNITY INVOLVEMENT INTERNATIONALLY
Nokia’s country organization support various local community programs. In the US, for
example, these include:
• Class Link – a project that uses wireless technology to connect students, teachers
and parent.
• Vision one – an initiative in which Nokia provided 38,700 wireless phones worth
US$3 million to four Native American tribes in Arizona.
• The United Way to America – an organization bringing diverse people and
resources together to address community issues.
In the UK, Nokia supports Men cap, a leading charity working with children and adults
with learning disabilities, and in China, Nokia Thinking Corner is a series of road
shows and activities is schools, encouraging creativity and innovation amongst young
people.
Disaster relief
Following the events of September 11, 2001, Nokia provided an initial grant of US$ 1
million to establish the Nokia Education Fund that contributes to the college education
needs of children who lost one or both parents, regardless of their nationality.
In co-operation with the International Red Cross, it has also contributed to:
40

• Humanitarian assistance in the Kisovo crisis.
• Relief after the Venezuelan floods.
• Relief and reconstruction after the earthquake in Gujarat, India.
• Relief after the volcano eruption in the Congo and Rwanda.
Famous soup advertisement TVC no 1
A young man walks past a couple of
gentleman, with his Nokia phone in
hand. He leaves wave of disgust...
...in his wake. Both the men hurl
their mobiles aside and stare at
his instrument in awe.
He crosses a boy band as they acknowledge
their delirious fans.
His phone catches the attention
of the lead singer...
41

...who stops his conversation. He
gapes openmouthed at the sleek
phone.
The man enters a restaurant and approaches his
date. As he places
his phone on the table...
...and takes a seat, a couple seated
behind cranes their neck to catch a
better glimpse of the instrument.
They both drown their repulsive
phones in the soup. Super: 'You'll
want it.'
Product shot. Super: 'Nokia 8310.
We call this human technology.'
The waiter returns their phones...
...dripping in broth. As the woman
turns a deep shade of red, the super
reads, 'Nokia. Connecting people.'
INTERNATIONAL MARKETING STRATEGY
42

Nokia internationally has used combination of public relations, advertising, promotions
and direct selling. But internationally company has international campaigns which are
regional specific like the advertisement in which a Chinese couple at excursion sends
photos to their kids through Nokia was used in south east Asia i.e. Singapore, China,
Indonesia e.t.c.
The company normally has tie up with Hollywood production houses and launches co
promotions on major releases and the latest example being Nokia tying up with
Warner brothers for the latest flick of Tom Cruise “minority report”
The company normally participates in trade fairs in which it showcases its latest
offerings and products and the best example is exhibition launched in Singapore in
which the company launched 6210 range of mobiles which has latest cutting
technologies
The company has different forums like Nokia forum in which the people having
different background interact with each other in order to exchange the information.
As of personal selling the company normally sells the products through net and at
trade fairs and doesn`t follow direct selling techniques too much .
As of pricing the pricing of the products is same across the nations and if there is a
difference then it is due to taxes like custom duty e.t.c
Company has 8 production plants majority being in USA and Finland and the products
are shipped from their plants to different parts of the world.
There are many priorities within a business, but in a marketing orientated company like
Nokia, many of the following principles will be high on the agenda:
1. Customer satisfaction: Market research must be used to find out whether
customers' expectations are being met by current products or services.
2. Customer perception: this is based on the images consumers have of the
organization and its products, this can be based on; value for money, product
quality, fashion and product reliability.
43

3. Customer needs and expectations: This is anticipating future trends and forecasting
for future sales. This is vital to any organization if they wish to keep their entire
current market share and develop more.
4. Generating income or profit: This principle clearly states that the need of the
organization is to be profitable enough to generate income for growth and to satisfy
stakeholders in the business. Although satisfying the customer is a big part of a
companies plans they also need to take into account their own needs, such as:
5. Making satisfactory progress: Organizations need to make sure that their product is
developing along with the market, if a product is developing well, then income
should increase, if not then the marketing strategy should be revised.
6. Be aware of the environment: An organization should always know what is
happening within their designated market, if it is changing, saturation, technological
advances, slowing down or rapidly growing, being up to date on this is essential for
companies to survive.
Nokia have managed to be quite environmentally friendly and have not done anything
that the consuming public have taken huge offence to, they have been very careful
about this and this is one of the reasons they are such a popular brand of mobile
phones.
Technological- In the communications market technology is perhaps the most
important factor that companies like Nokia have to take into consideration. They have
to keep up to date with all the newest technological advances (like camera and motion
capture phones) if they are going to capture the biggest market share and stay ahead of
their competitors (Sony and Seimens).
Market penetration
Market development
 Product development and
 Diversification
44

Market penetration- the aim of market penetration is to sell existing products to an
existing market, to do this Nokia must do a few things:
1. Change the pricing scheme (for example, penetration or competitor based)
2. Introduce discounting
3. Start up a different advertising campaign or consider changing an existing one.
Market development- To complete market development successfully, Nokia must look
into the following:
 Researching and selling to a different market (in case of saturation or poor
market share)
 Change times that television adverts are aired at and alter the
places in which print adverts are being displayed (this can help your products
appeal to a whole new market segmentation)
 Lower current prices to help the products appeal to a wider range of consumers.
Product development- This area of the Ansoff's matrix involves keeping up to date with
the latest technologies available in your chosen market and using them to appeal to
different people (for example, WAP phones are aimed at more professional people
while Camera phones are aimed at the youth market)
Diversification- This refers to developing technology that offers consumers something
new or different, this is the most common way of companies trying to gain greater
market share and increase their profits.
Market research
A businesses success is based on whether they can give the customer what they want
and when they want it. Market research involves the collection, collation and analysis
of data relating to the consumption and marketing of relevant goods and services.
The purpose of market research is really to find out whether there is a gap in the market
for your product or service or whether you can make customers want your product
through persuasive adverting. We already know that there is a market for mobile
phones but the current market gap has become saturated (or if not saturated, almost
saturated) so Nokia need to find a new market segment to aim their products at. In
45

order to classify the wants and needs of the consuming population, companies need to
gather information on the following:
 Consumer behaviour- How do customers react to advertising? Whether they are
partial to prize give-aways or free gifts? What are their reactions to new and
developed products?
 Buying patterns and sales trends- Organizations need to look at how buying
trends and patterns are affected by class, gender, religion and region. They also
need to understand how buying patterns change over time and what markets are
expanding and are worth trying to enter and obviously which markets are
contracting and companies shouldn't aim to enter into.
 Consumer preferences- What customers are looking for in a product, for
example, style, colour, technology, amount of outlets, customer service and
promotional styles.
 Activities of competitors in the market- Nokia need to examine how their rivals
are adapting their prices and products to meet the consumers need's, how well
the rivals are selling and what marketing strategies they are using.
Market research should supply the company with all the information they require about
consumers preferences, whether they buy certain products, what design features are
preferable and what kind of retail outfits are most frequently used for purchasing
certain products. Sources of marketing information
The information that companies collect through market research can be in one of two
forms, either quantitative or qualitative data.
1. Quantitative data refers to data presented in numerical form, usually figures, for
example, Nokia's operating profit in the 4th quarter of 1997 was 830 million.
2. Qualitative data is the information concerning the motives and
attitudes of consumers; for example, more people buy Nokia phones then Sony
phones because Nokia phones are more reliable.
The two main sources of market research information are primary
research (where the company has gathered the information about the
46

markets themselves) and secondary research (when researchers use
information that has been discovered by other companies).
The marketing mix
The marketing mix refers to the combination of elements within a
companies marketing strategy, these are designed to give the customer
what they want and in the long term are designed to maximise profits.
The marketing mix is based around the idea of the 4 P's:
Product-The product is the centre of the marketing mix and the other three P's are
based around it. Consumers purchase goods and services for a variety of individual
reasons and a company must be aware of all of these when selling a product (that is
why they conduct market research).
Price-Is a key factor in the selling of a product, and is usually the one that is open to
the most change based on different pricing strategies, for example, competitor based,
penetration or skimming. The three main factors affecting the amount charged for a
product or service, are; the cost of production, customer demand and competition.
Place-This refers to the chosen outlets for a product or service, for a product to be very
successful it must be easy to access, Mobile phones are very easy to access nowadays,
they are sold in supermarkets, specialised outlets (either by network or brand) and all
major department stores.
Promotion-This involves providing information to the customer over a variety of
media platforms, using radio, television and print advertising as well as using other
promotional tools such as "money off deals" and "free giveaways".
The stages of marketing
1. Market and product research:
* Finding out what your customers want
* Technical research
2. Product launch
47

* Test market
* Pricing
* Branding
* Packaging
3. Product promotion
* Advertising
* Merchandising
* Publicity and P.R
* Sales promotion
4. Sales and distribution
* Managing the sales force
* Type and amount of sales outlets
* Local, national or international sales?
* Transportation of goods
5. Monitoring and analysing the sales
* Meeting customer satisfaction?
* Does the product need modifying or replacing?
* Is a profit being made?
* Is customer service satisfactory?
* Have the sales targets been met?
* Is the promotion and distribution policy effective?
If a company gets to section 5 of the marketing cycle and a substantial amount of the
goals haven't been met then they will have to consider re-launching the product or
taking it out of the market completely and placing it in a different market or changing it
to meet the needs of the current market.
48

COMPARATIVE STUDY
Nokia : Company Profile in Brief
Nokia is a world leader in mobile communications, driving the growth and
sustainability of the broader mobility industry. Nokia connects people to each other and
the information that matters to them with easy-to-use and innovative products like
mobile phones, devices and solutions for imaging, games, media and businesses. Nokia
provides equipment, solutions and services for network operators and corporations.
Nokia is a broadly held company with listings on four major exchanges.
FEATURES OF NOKIA CAMERA PHONE
• The exciting new Nokia Camera phone is a complete tool for capturing and sharing
experiences. Take pictures or video with the built-in camera and then share them
with their friends or family using multimedia messaging technology.
• Play video clips and movie trailers with streaming or local playback using Real One
Player.
• Tailor the functionality of their Nokia Camera phone by downloading Symbian and
Java applications.
• They can truly personalize your Nokia Camera phone with images, colorful
changeable covers, and polyphonic ringing tones.
Display and User Interface
• High-resolution, full-color display (4096 colors)
• 176 x 208 pixels
• 5-way scroll key
• Symbian operating system
• Midi and WAV ringing tones
49

• Ringing tone composer
• Predictive text input
• S60 software on Symbian OS
Integrated Digital Camera
• Image capture at 640 x 480 resolution
• Phone display used as a viewfinder
• Photo album
• Video capture: H.263 video inside 3GP file format
• Video playback: RealOne player; formats: H.263 and MPEG-4 video inside
3GP file format; RealAudio and RealVideo inside RealMedia format
• Streaming and local playback
Memory
• 3.4 MB internal dynamic memory for phone numbers, messages, and photos
• External memory on 3V MMC memory card
Wireless Connectivity
• Infrared
• Bluetooth
• Connect phone wirelessly to a compatible phone or a compatible PC
• Send/receive pictures, video clips, and graphics
• Play games
Java Technology
• Support for Java MIDP 1.0
• Download new Java games and applications
Messaging
50

• Combine picture, video, text, and voice clip and send by MMS or email to
compatible phone or PC
• Email over GSM data, HSCSD, and GPRS
• Email protocols: SMTP, POP3, IMAP4
• Concatenated SMS messages, picture messaging
Data Transfer
• Up to 43.2 kilobits per second in high-speed circuit switched data networks
• Up to 40.2 kilobits per second in GPRS networks
Voice Features
• Voice dialing
• Voice recorder
• Integrated handsfree speaker
Browsing
• XHTML browser over GSM data, HSCSD, and GPRS
Games
• Java and Symbian games
• Multi-player games over infrared and Bluetooth between compatible phones
51

SONY ERICSSON
Sony Ericsson Mobile Communications
Sony Ericsson, a 50:50 joint venture of Sony Corporation and Ericsson AB, established
in October 2001.
Its mission is to establish Sony Ericsson as the most attractive and innovative global
brand in the mobile handset industry. “Sony Ericsson Market share is 6.2%.
52

DIFFERENCES BETWEEN NOKIA CAMERA PHONE AND SONY
ERICKSSON CAMERA PHONE
MODEL : NOKIA 7650
SONY ERICKSSON P800
• Dimensions, weight and autonomy. The phones are quite comparable to each
other by these features. P800 weighs 158g against Nokia, which weighs 154g. The
form-factor is also similar. P800 has a lithium-polymer battery of 1000 mAh
capacity to decrease the weight of the phone, Nokia is equipped by BLB-2 battery
of 750 mAh capacity. We saw such type of battery in older models, in Nokia 8210
for instance. In respect to the autonomy, these two handsets resemble to each other
too. In case of similar talk time and time of using of additional applications the
phones work about 2 days, it's the optimal autonomy without re-charging. So, P800
has the parity with Nokia 7650 in dimensions, form-factor and autonomy.
• Screen and text input. Large energy consumption in P800 is caused by technical
characters, firstly, because of the screen. It can display up to 4096 colours like
Nokia 7650 but P800 has a touchscreen, which allows to input information with a
help of on-screen keyboard and to lighten a menu navigation. You can easily scroll
the lists by a stylus and select the desired menu items. Only a usual keypad (as in
many other handsets) can be used in Nokia 7650 to input the information. As a
result it's approximately impossible to input large texts. P800 can be compared in
convenience to any PDA, what is really a step forward. So if you are going to make
notes in your smartphone, choose P800.
53

• If you don't like on-screen keyboard, you can use a usual one, it is placed on the
removable flip cover of the phone.
• The screen of the 7650 measures 35x41mm and has a resolution of 176x08 pixels,
while P800 measures 40x61mm and has a resolution of 208x320 pixels. As you see
the size of the screen in P800 is larger. The information is clearly visible on the
displays of both phones in all lighting conditions, no considerable differences.
• Vibrating alert and ringing tones. A user has an excellent choice to decide which
ringing tone he likes most of all. Both of these phones support the most common
formats (in reality, all formats supported by smartphones). But 7650 as well as
P800 has problems with the vibrating alert, it is rather weak. In both cases you
touch the screen while talking, it gets dirty very quickly, especially 7650 has such a
problem. It's possible to use a handsfree mode in P800 but the volume of the loud
speaker is very low.
• User's interface. Both devices are worked under Symbian OS, so, the interface has
much in common. Both are handy, no difficulties while working. Notable, that 7650
has OS in 6.1 version and P800 - in 7.0 version. The last version doesn't give any
considerable advantages to the consumer, only few extra features which don't mean
much. Of course, if to say about long-term outlook, the 7. version is the winning,
but the platform 60 will be also long-life. Hence, here is also the parity.
• The main navigation key in the 7650 is 5-directional joystick, P800 has a JogDial.
The rate of moving through the menu is rather high in both cases, but P800 has also
a stylus-based navigation. Besides, you can work with P800 even when the flip is
closed, in this case you have an access to 9 the most often used applications. So, if
to say about navigation capabilities, they are definitely in favour of P800.
• Standard applications and the memory. To say the truth, none of these devices
has unique software, which can be the strong case for this or that model. The
devices offer similar features and the comfort of viewing the information (P800 has
better text input). The applications occupy almost the same memory space in both
handsets, the only differences is that SonyEricsson has 3 times more memory space
(12Mb) than 7650 (4Mb). Furthermore, SonyEricsson has an additional memory
slot - MemoryStickDuo, which extends greatly the phone's capabilities. Now there
54

are almost no limits of the internal memory volume, data bases and rarely used
applications, musical and video files can be kept on the memory cards. The slot is
placed on the right-hand side of the phone, it is always available. It is one more
advantage of P800.
• Bluetooth. Bluetooth can be used only for data transmission in Nokia 7650, you
can't switch it to the phone, it's really a shortcoming. One can transmit both data
and voice via bluetooth in P800.
• Data synchronization. You can do it via IR-port or bluetooth in both models. Also,
in the standard kit of P800 cable (RS232) is included. You can create reserve data
copies, synchronize notes of organizer, phone book, mail client with the most
popular applications from PC. Both devices are quite capable. I forgot to say that
both handsets had SyncML support.
• WAP. Nokia7650 has WAP-browser in 1.2.1 version, the rival product has version
2.0 It doesn't play any role today, but in future, in a year or year and half it can be
crucial.
• Camera. Internal cameras of both devices are similar by quality and picture
resolution. You could look at the pictures taken by this cameras in reviews of these
smartphones.
Conclusion
P800 has more features than Nokia 7650, though form-factor and approximate work
time are similar. The standard kit of P800 is also better. But the price of the 7650 goes
down little by little, while P800 will appear only in December. It's interesting that the
price competition will be impossible by that time, 7650 would cost Rs. 19350 approx.
while the price of P800 would be Rs. 25000 approx. The classical situation emerges,
when the new advanced product is more expensive. P800 can be a real rival to the 7650
if the price parity is reached, but it's impossible. Hence, P800 - a potential leader - turns
into a usual model, which will have a pressure from Nokia and other manufacturers.
After Nokia 3650, which will be launched in February, the other smartphones on the
platform 60 will appear, it's also necessary to take Motorola with the model Paragon II
and Samsung into account. This segment of the market (Smartphone) is not great and
55

only the most quick and aggressive companies will be successful. SonyEricsson loses
Nokia now, though it has the technological advantage. Every day more applications
from the third companies appear for 7650, of course, they are created for P800 too, but
slowly. On the other hand, the life of P800 will be longer because the phone has a high
potential to develop. As you see the decisive point is the market policy of
SonyEricsson, one mistake and P800 will become a common model, but if the company
comes to decision to decrease the price of the model as much as possible, P800 will be
the leader of the market.
MOTOROLA
Motorola is known around the world for innovation and leadership in wireless and
broadband communications. Inspired by their vision of Seamless Mobility, the people
of Motorola are committed to helping you get and stay connected simply and
seamlessly to the people, information, and entertainment that you want and need. They
do this by designing and delivering the "must have" products, "must do" experiences
and powerful networks - along with a full complement of support services. A Fortune
100 company with global presence and impact, Motorola had sales of $36.8 billion in
2005.
Connected Home Solutions
Provides integrated, end-to-end systems that reliably deliver digital entertainment,
information, and communications services over a variety of wired and wireless
broadband network architectures. The world's leading provider of digital video set-tops
and cable modems, Connected Home Solutions empowers consumers by connecting
56

their homes, keeping the people, content, and services important to them always within
their reach.
Government and Enterprise Mobility Solutions
A leading provider of integrated radio communications and information solutions, with
more than 65 years of experience in meeting the mission-critical requirements of public
safety, government and enterprise customers world-wide. It also designs, manufactures
and sells automotive and industrial electronics systems and telematics systems that
enable automated roadside assistance, navigation and advanced safety features for
automobiles.
Mobile Devices
Offers market-changing icons of personal technology - transforming the device
formerly known as the cell phone into a universal remote control for life. A leader in
multi-mode, multi-band communications products and technologies, Mobile Devices
designs, manufactures, sells and services wireless subscriber and server equipment for
cellular systems, portable energy storage products and systems, servers and software
solutions and related software and accessory products.
Networks
Delivers proven capabilities in cellular, wireless broadband and wireline access
technologies, with recognized leadership in integrating core networks through wireless
IP, wireless softswitch and IP multimedia subsystems. The Networks group is
advancing seamless mobility with innovative technology solutions, as well as a billion
dollar services business with an expanded portfolio delivering support, integration,
applications and management.
57

FEATURES OF MOTOROLA CAMERA PHONE
Motorola RAZR V3 Phone (T-Mobile)
Product Description
Thin is definitely in. At just over a half-inch thick, the Motorola RAZR V3 is the
perfect combination of sleek design and powerful features. With long-range Bluetooth,
support for video playback, a VGA (640 x 480) camera and a gorgeous color screen,
the RAZR V3 is everything you're looking for in a stylish mobile companion. Get the
most out of your T-Mobile service with this impressive quad-band phone.
Design
Bluetooth Wireless Technology
Stay connected without wires. Choose
from a range of optional Bluetooth
accessories.
MPEG4 Video Playback
Download and watch sports action and
music clips. They're all beautifully
displayed on the large 2.2 color display.
Built-in Speakerphone
Keep the conversation flowing when
you're busy by going hands-free. Or
exchange ideas in a conference call.
58

Anodized Aluminum Case
The ultra-thin Moto Razr V3 has the
distinctive metallic lustre of anodized
aluminum.
Digital Camera
Capture your world in style. Create
memorable images with the effective 4 x
digital zoom and quick exposure controls.
The RAZR V3's design takes the standard clamshell form factor to the next level with
an impressive, anodized aluminium construction. A large 176 x 220 color display with
262,000 colors dominates the inside of the top cover. The outside cover of the handset
sports a supplementary 96 x 80 full-color display that can display pictures, time, call
information, battery and signal strength, and more. The VGA camera lens is housed
above this display. Up/down buttons are placed on the left side for volume control
while a voice button on the right side of the unit allows you to enter voice memos and
create voice dialing profiles. Most of the phone's features and on-screen menus are
controlled by a five-way center button on the handset's backlit control pad, which is
precision cut from a single sheet of nickel-plated copper alloy. A charging port and
USB data cable port is placed on the bottom of the phone.
Calling Features
The RAZR V3's internal phone book can hold up to 1000 contacts while the phone's
picture ID system allows you to assign pictures to your most common callers. It also
supports polyphonic ringtones as well as MP3 ringers, allowing you to use portions of
your favorite songs to alert you to incoming calls. A number of ringtones come
preloaded on the phone and more ringtones can be downloaded from T-Mobile's t-
zones service. There's even an included application, MotoMixer, that lets you mix your
own ringtones. For times when you want to be discreet, there's a vibrating alert. A
built-in speakerphone makes it easy to talk without having the phone to your ear while
voice activated dialing makes calling your friends, family and associates as easy as
saying their names.
59

Because the RAZR V3 is Bluetooth enabled, wireless headsets can be configured with
the phone for total handsfree operation.
Messaging, Internet and Tools
The RAZR V3 is a messaging and wireless Internet powerhouse. Support is built in for
sending and receiving pictures, text, graphics, sound and video via messages. When
used in combination with the phone's built-in still and video camera, MMS opens up a
whole new world of messaging fun. Instant messaging is also supported (T-Mobile
messaging charges apply) and the phone ships with a built-in email client with support
for POP3, IMAP4 and SMTP protocols.
Thin is in: The RAZR's keypad is precision cut from a single sheet of nickel-plated
copper alloy.
There's also a built-in web browser for t-zones downloads and mobile web browsing.
T-Mobile's t-zones service lets you receive and send emails, read news headlines, get
weather updates, download games and ringtones, and more. iTap text entry, which is a
technology that makes it easier for people to enter words and text on handsets, is built
into the unit-- a plus for mobile email and text messaging users. When used with a T-
Mobile data plan and the phone's Bluetooth or USB data capability, the phone can be
used as a wireless modem for laptops and PDAs.
A number of handy software tools are bundled with the RAZR V3 including a voice
memo recorder, a calculator with currency converter, a calendar and an alarm clock.
Use the phone's Bluetooth capability to set up a wireless link with a Bluetooth
accessory or connect to a computer or hand-held device to exchange and synchronize
data. The phone also supports the SyncML PC synchronization standard, can be used
60

with Motorola's Mobile Phone Tools PC application to manage and synchronize
contacts, calendar and other data with your PC.
Imaging and Entertainment
With 5 MB of internal memory storage, the RAZR V3 shines in the entertainment
department. The phone's VGA camera features a 4x zoom, image quality options, and
an auto-timer so you can be in your pictures, too. Capture stills and then send them to
your friends via MMS messaging or email, or to your PC via USB or Bluetooth. The
phone is capable of MPEG4 video playback when you receive a video message, or if
you upload video to the phone via USB or Bluetooth. The RAZR V3 also supports
custom graphics for wallpapers so you can dress up the phone to suit your fancy.
Support for gaming is built into the phone and games are available for download via the
T-Mobile t-zones service.
Operating the RAZR Battery Door
The RAZR V3's battery cover is designed to have a very tight fit with the phone case.
You may need to use your fingernail or a very thin instrument to depress the small
battery cover release button. When replacing the cover, make sure the cover securely
snaps into place before operating the phone.
Vital Statistics
The Motorola RAZR V3 weighs 3.35 ounces and measures 3.86 x 2.09 x .54 inches. Its
lithium-ion battery is rated at up to 6.67 hours of digital talk time, and up to 250 hours
of digital standby time. It runs on the 850/900/1800/1900 MHz GSM/GPRS
frequencies.
61

MARKET SHARE
Dominated largely by Nokia with a total market share of 59%, followed by Sony
Ericksson (13%) and Motorola (7%) respectively.
62
Nokia
59%Sony Ericksson
13%
Motorola
7%
Others
21%

SWOT ANALYSIS
There are various tools which can be employed to understand the effectiveness of a
company’s strategies. SWOT Analysis outlines the Strengths, Weaknesses,
Opportunities and Threats facing the operating strategy of a company.
Analysing the effectiveness of strategies, strength and weaknesses can be defined as
internal to an organisation. The businesses do not necessarily have to correct all its
weaknesses however, it should be able to retain its strengths. The key success factor for
operating in the targeted market depends on the external factor. ie. Opportunity. Nokia
has numerable opportunities to enlarge its market share, however, they could be faced
with a threat which could be challenge posed by an unfavourable trend or development
that may lead into absence of defensive marketing action and thus diminish sales and
profit.
Strengths
 Global Products and Image – Nokia is a global company. It not only sells its
products to 130 countries but also sets up research and development departments in
fifteen countries to produce its products in different culture and language needs,e.g
English, Dutch, German and Chinese.
 High Quality Products – Nokia concerns about product quality which is the most
important factor to satisfy customer’s needs. Nokia adds more values by superior
quality or differentiated features to the market. Meanwhile, it also continuously
improves upon the existent markets.
 Serving new designs and trends – Nokia launched a wireless game which by use of
sms, tv, print media, radio and internet provides clues to help players to solve a
mystery. This helps Nokia to attract customers to use its products.
 Wide range of products – Nokia has the highest number of product line(more than
10 models) compared to its competitors Samsung, Ericksson, Motorola etc.
63

 Product Warrantee Worldwide – No matter where Nokia’s customers are, if they
got a problem with their mobile phones, they can approach any of the Nokia’s
centres. Thus, ensuring a good customer service.
Weaknesses
 High Price – Nokia offers a good range of high quality products at high prices
Though the high prices may be justified in terms of the costs to the company but
this can act as a weakness in certain sections of the market e.g the middle-low
income group people. Demand is skyrocketing but the price pressure is high.
 New product developing problems – Although Nokia provided colour screen
mobile phones in September 2002,this was late as compared with its competitors
such as Sony Ericsson and Samsung. This acted as a weakness as the people had
already accepted the range introduced in the market and didn’t want to switch.
Opportunities
 Joint venture in Technology – Nokia has joined with Hewlett Packard(HP)
Company in technology which has a very good reputation for many years. Nokia
thus, has a considerable opportunity to enlarge their market size into PC users who
prefer mobile phones compatible with PC device.
 Product launch continuously - Nokia uses Total Quality Management (TQM)
which mentions more about training worker program, and makes product of high
quality. All employees are well-trained and motivated and consecutively
production processes are also developed as well. Nokia has established Research
and Development department (R&D) which develops its product line into modern
modification as well quality as the existing products.
 New Software Market – As known, the amount of data traffic in mobile networks is
growing at a tremendous rate. People around the world are using new mobile
services, which are directly relevant to personal needs. Nokia has already added
value through MMS for Messaging and E-mail, Java for download any applications
and HTML especially for content search. So it may attract those businessmen and
teenagers who are interested in the new software market.
64

 Easy Availability - Many mobile phone retail stores, such as, the link, Phone4U and
Carphone warehouse, have spread across London in every street. And, of course,
every store have not missed the opportunity to choose Nokia as their product line.
Consequently, all the customers can be guaranteed that any damage or loss of
Mobile phone will be serviced through these retail shops. Likewise, in opportunity
aspect, Nokia has an opportunity to convince the prospects of buying Nokia in the
plenty of stores around the town. However the key to success of Nokia will be the
flexible changing capabilities.
Threats
 Threats in PC Markets - Due to fierce competition in mobile phone market it has
caused new technology compatible with PC computer. Sony Ericksson specializes
on PC computer now. Sony applied their computer system into mobile phone as
well as PC computer on hand at the same time. Furthermore, nowadays people are
interested in advance of computer as similar as mobile phone market. In this sharp
competition, it is going to be harder for Nokia to grasp customers’ attention and
they will have to focus on outstanding imagination and creativity in their marketing
plans.
 Fluctuations in Euro exchange rates – Most of the European countries have joined
the European Union and thus because of the varied economic conditions, the
currency will fluctuate a lot finally effecting the profits of the company.
 Blurring of product boundaries – This implies new entrants in the same industry
like Sony, Motorola etc. who are producing almost the same product range as
Nokia and thus, there is a need to change their models.
Keeping in mind the weaknesses and threats, Dan Steinbock in an article called the
‘Nokia revolution’ outlines the secrets behind the success of Nokia.
Apart from the SWOT analysis, the effectiveness of Nokia’s strategies can also be
analysed looking at the environment in which it operates.
65

OBJECTIVES AND RESEARCH METHODOLOGY
OBJECTIVE OF THE STUDY
 To understand the marketing and advertising strategies of Nokia.
 To analyze the strategies and its effect on the corporate profile of the company.
 To compare the strategies of Nokia with its competitors and to analyze its
strengths.
 To realize the role being played by advertising and promotion on the change in
sales volume of the company.
 To understand the future trends in advertising and marketing in mobile handsets
sector especially.
 To understand the international operations of the company.
66

Nitesh project

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (8)

Similar to Nitesh project

Similar to Nitesh project (20)

Recently uploaded

Recently uploaded (20)

Nitesh project