2. Mobile Handset Market in India
(Value in US milion $)
 India currently has 68 mobile handset players and it is expected to increase to
200 by 2015
 Average Selling Price (ASP) of mobiles sold in India is around Rs 2500
 Total number of mobile subscribers in India to grow to 1billion by 2015

3. Mobile Handset Market Share
(in 2010-11)
26%
39%
Nokia
Samsung
5%
Micromax
6% Blackberry
7% LG
17% Others
Total Volume: 156 million units
NOKIA- Market Leader

4. History
Founded as a paper mill in Finland by Fredrik Idestam
NOKIA CORPORATION
Nordic Mobile Telephone (NMT) launched
Telecommunication branch ‘Nokia-Mobira Oy’ formed
Mobira Cityman, 1st handheld NMT phone launched
Jorma Ollila becomes President and CEO of Nokia
1st GSM handset, Nokia 1011, launched

5. Nokia Verticalization

6. PEST Analysis
1991 – Economic of mobile communication with the origin of
1995 – evolution Liberalization Reforms
Mobile Telephony in India
1994 – National Telecom
1992-1999 – Indian economic transformed from socialistic market
to capitalistic market
1999 – New– Rise in income levels of society
2000-2010 telecom Policy
Growth prospects – Indian telecom industry is the fastest growing
2000-2010 – Government encouraging the FDI and competition.
telecom industry in the world
Indian Mobile Market set to grow to $18 billion by 2012

7. PEST Analysis
Rise of Information society
More awareness about mobile phone handset choice and
Global advancements in technology such as MMS, Bluetooth, WAP,
GPRS, cameras, social network, information availability
advancements due to increased3G etc
Change in lifestyle more technologically advanced than their
Asian markets are
European counterparts. For example in influence) 4% of phones in
Peer group influence (Reference group 2002, just
Europe had cameras, whereas in Asia, it was 90%
Roles and Status

8. Consumer Behaviour
Close family relationships Need for communication
Saving-oriented mentality Need for low end mobile phones
Status symbol
Family & friends
Age & occupation
•Students
•Working Professionals
•Housewives

9. Post Sales Behaviour
 Availability of service centers
 Online applications and applications stores
◦ Nokia Ovi Suite
◦ Nokia PC Suite
◦ Nokia Beta Labs
◦ Symbian OS
 Software upgrades
 Resale value

10. Consumer Survey Analysis
FEATURES
PRICE

11. Consumer Survey Analysis
What you like in What you dislike
NOKIA in NOKIA

12. Psychographic Segmentation
High Involvement
Rational Aspirational
Low Involvement

14. Marketing Mix
PRODUCT
Classification of products based on:
Use
 Push mail services
Messaging
3G
need
Mobile business solutions
FM
MP3
GPS
price
 Cameracamera and HD video
Ringtones
Quick Office
High MP
 Bluetooth
Color Screen
Call conferencing
 GPRS
Alarm
Nokia 5800
• SEGMENT - Mid-range multimedia phones
Nokia N8
Nokia E72 1100 Young Generation from middle &
Nokia
•TARGET
• SEGMENT - GROUP - Smart Multimedia phones
High End
• SEGMENT - Low end basic phone
• SEGMENT - Mid-high end Business-cum-Smart phones
upper-middle class
•TARGET GROUPGROUP - Lower class (first time users)
•TARGET GROUP -- Business professionals aged 25crazy
•TARGET
•POSITIONING
Young Generation from the upper
- device for the music - 50
middle class
•POSITIONING - incomes
with upper middle classHighly reliable & durable phone
customers.
•POSITIONING - device packed with must have features
•In 2008, NavigationIndia
for working class Edition to released which
•POSITIONING – Business phonewas serve needs of
like vibrant GUI, music,selling model- sold 250 million
•World’s best connectivity, photography, games
working professional + good multimedia support with
positioned it as much more than a music phone
etc phones
maps, navigation features, car charger and car kit

15. Marketing Mix
PRICE
Low end phones
Price wars leading to lower profits
High end phones
Higher demand for advanced features

16. Marketing Mix
PLACE
 Nokia has the largest mobile distribution network of 1,30,000
outlets
 Nokia ‘Concept Store’ setup in 9 major cities across India to
enhance customer experience
 Nokia Priority Dealers setup in all Tier- 1 and Tier- 2 cities
 Multi-brand stores like The Mobile Store, Hot Spot, Big C, etc

17. Marketing Mix
PROMOTION
 Below the line marketing
 Brand Ambassador Priyanka Chopra / Shahrukh Khan
 Digital marketing through social networking sites, mobile sites, blogs,
etc
 Extensive TV campaigns and Advertisements in regional languages
 Made For India advertisement for Nokia 1100
 The Har Jeb Mein Rang Advertisement Campaign
 Main sponsor of Kolkota Knight Riders in IPL
 Nokia India Fest 2011-Pan India College festival

18. Marketing Mix
PROMOTION
RURAL MARKET
 Nokia Life Tools (Jeevan Sadhan): SMS Mechanism, Sachet Pricing,
Daily cost of Rs 1 only
 ‘Showrooms on wheels’ and ‘Rural care on the go’
 Tie-up with major micro-finance institutions like SKS Microfinance

19. Branding & Positioning
 Brand value worth 20 billion dollars
 Voted as ‘The most trusted brand in India’ according Brand Equity
Survey (Jan,2011)
 Brand personality of Nokia- A trusted friend
 Nokia's slogan- Connecting people
 Media Budget Distribution:20% Print media and 80 % Television
media

20. Branding & Positioning
Changes in Branding Strategies
 Umbrella Branding- N series & E series
 Company Name Branding
 Rebranding of Ovi stores to Nokia Services
 Rebranding effort by changing the classic Nokia Sans font to Nokia
Pure font

21. Branding & Positioning
Positioning
Points of Parity (POP) Points of Differentiation (POD)
Good voice clarity  Robust build
 Camera  High battery life
 GPRS  Good brand perception
 FM & Music Player  Ease of use

22. Porter’s 5 Forces Framework
Analysis

23. RIVALRY AMONG COMPETITORS
 CONCENTRATION AND BALANCE: The major players are
Samsung, Micromax, Blackberry, LG, HTC etc
 INFORMATIONAL COMPLEXITY: Devices are becoming more
complex and getting features that are outside the core
competencies of traditional manufacturers
 CORPORATE STAKES: High stakes for the companies because of
huge investments into the business
 REDUCING PROFIT MARGINS due to intense competition &
price wars

24. Competitive Analysis

25. BARGAINING POWER OF BUYERS
 BUYER INFORMATION: Buyers have comparative
information about the product in terms of price and features.
 PRODUCT DIFFERENCES: Low degree of product
differentiation and any new feature or technology is quickly
imitated.
 LOW SWITCHING COSTS due to lower prices

26. BARGAINING POWER OF SUPPLIERS
 SWITCHING COSTS: A large number of suppliers for non
critical components.
 For critical components suppliers work closely with companies
as they involve joint development of specialty inputs and sub-
systems.
 IMPACT ON DIFFERENTIATION : Companies could switch
suppliers for non critical components but are closely tied to
them for critical components and sub-systems.
 THREAT OF FORWARD INTEGRATION: Suppliers do not pose
any credible threat of forward integration even though they are
outsourced.

27. THREAT OF NEW ENTRANTS-ENTRY
BARRIERS
 PROPRIETARY PRODUCT DIFFERENCES: Technology and product
designs are protected by patents. Eg, Apple
 BRAND IDENTITY: Powerful brand identity of the existing players
developed through advertising and product excellence.
 ECONOMIES OF SCALE: High fixed costs means that volume is
essential to companies.
 CAPITAL REQUIREMENTS: Activities such as R&D and advertising
requires large capital commitments.
 EXPECTED RETALIATION: Existing competitors have the financial
clout to deter new entrants.
 ACCESS TO NECESSARY INPUTS: Suppliers work closely with
existing companies and therefore critical components may only be
available at a premium.

28. THREAT OF SUBSTITUTES
 PC based applications such as IP TELEPHONY
 Convergence between PDA’S AND MOBILE PHONES.
 Internet revolution

30. SWOT Analysis
STRENGHTS
Strong Corporate Brand & the largest cell phone vendor
User-friendly features
Strong Distribution Network
Best Navigation (Nokia OVI Maps)
High resale value of hand-sets compared to other handsets
WEAKNESS
Slow to adopt new ways of thinking (for example, launch of dual sim mobiles)
High prices compared to other domestic companies
Symbian OS lost out the race with Google’s Android and Apple iOS
Too many products & very little product distinction
No of features offered in the lower end Nokia models are very little and stagnant

31. SWOT Analysis
OPPORTUNITIES
Nokia can expand its market share by introducing a new low cost brand in
competition to companies like Micromax, GFive etc
Increase their presence in CDMA market
They can target the smart phone in the low to medium segment with MS Windows-
7 platform
THREATS
Threats from emerging domestic companies like Micromax, Karbonn, Maxx, Lava,
Spice etc who offer similar features at lower prices
In the higher segment it is losing market share to players like Apple, HTC,
Blackberry, Samsung, etc

32. Future Strategies
 New Brand segment for lower end phones
 Change in the distribution model

33. Future Strategies
 Increase the commission of mobile retailers
 More emphasis on social media marketing

34. Future Strategies
 Nokia mobile money project
 Leverage on Nokia-Microsoft Deal: Windows 7?
 MeeGo- answer to Android?