Nokia

A
RESEARCH REPORT

OF

BRAND POSITIONING OF NOKIA
AT DELHI /NCR

Submitted To:
U.P. Technical University, Lucknow for the partial
fulfillment of
MASTER OF BUSINESS ADMINISTRATION

Session -2008-10

Submitted To: Submitted By:
Mr. Anurag Sharma Qamruzzama Siddiqui
(Faculty, Management) MBA III Sem.
Roll No. 0828570021

INSTITUTE OF TECHNOLOGY &
MANAGEMENT
12TH KM. STONE, MEERUT-BAGHPAT ROAD, PANCHLI KHURD, MEERUT
E-MAIL: INFO@ITMMEERUT.COM, WEBSITE: WWW.ITMMEERUT.COM/WWW.ITMMEERUT.ORG

CONTENTS
1. Executive Summary 1

2. Nature of the study 2-10
o Introduction
o Statement of the Objective
o Duration of the Study
o Scope of the Study
o Limitation of the Study
3. Methodology and Research and Development 11

4. Company Profile 18-41
o Origin
o Growth and Development
o Product Profile
o Present Strategy
o Future Strategy
5. Promotion Strategy for Nokia Mobile 50-52
o Promotion Plan
o Types of Promotion
6. Data Analysis & Data Presentation 53

7. Findings of the Study 70

8. Recommendations 76

9. Result and Observation (Conclusion) 78

10.Questionnaire 80

11.Bibliography 85

STUDENT DECLARATION

I QAMRUZZAMA SIDDIQUI student of MBA hereby declared
that the Project report titled "Brand Positioning of Nokia at
Delhi/NCR” is completed and submitted is my original work.

The imperial finding in this report are based on the data collected
by me. I have not submitted this Project report to U.P. Technical
University, Lucknow or any other university for the purpose of
compliance of any requirement of any examination or degree.

DATE QAMRUZZAMA SIDDIQUI
MBA (IV SEM.)

ACKNOWLEDGEMENT

The research report will be incomplete without acknowledge giving my
sincere, gratitude to all persons who have helped me in the preparation of this
dissertation.

First of all, I thank “GOD ALIMIGHTY” for the blessings showered on me
throughout this research project work, which has helped me in the successful
completion of the training.

I take this opportunity to extend my sincere gratitude and profound obligation
towards my guidance Mr. Anurag Sharma (Faculty of MBA Department) for
giving me valuable suggestions & his inestimable help rendered to me
throughout the research project and all other faculty members for without their
encouragement and continuing support, this research project would not have
been possible.

QAMRUZZAMA SIDDIQUI
MBA (IV SEM.)

PREFACE

Research project is an integral part of management courses. Research project
experience refers to knowledge and skills acquired by a student by participation
in activities performed by professional. It is distinct from an education in which
theoretical knowledge is acquired.

The ability to develop solutions to practical through application of theoretical
knowledge is acquired by management students in the course of their research
project . It also helps the students to develop professional competence and
related skills as also to imbibe certain ethical values and norms expected of
professionals.

The IT industry has entered to booming phase and cell phones are available
everywhere like water. To monopolize market powerful projects are
undertaken. This project is an endeavor in that direction.

EXECUTIVE SUMMARY

The wide ambit of the project, which is the internal part of the MBA course,
guaranteed me extensive exposure to various concept of GSM,CDMA ,Flip
and other camera and video technologies among other things. Apart from these
technical and non-technical aspect, I learnt the all important skills of team
work ,official communication, work ethic and responsibility.

During the course of training we were expected to use and apply our academic
knowledge to gain a valuable insight with all its environmental operational
complexities. The said training offered a valuable opportunity to us to meet
the academic knowledge and transform it into practical one.

I undertook the said training at Nokia. During the training I did a survey aims
at studying and analysis the current market scenario of mobiles, requirements
of the customers about the features and its pros and cons, future needs of
various mobile companies.

I had the unique privilege to assume an assortment of role including problem
identification, theoretical framework, research design, experimental design
and setup, data collection, analysis and interpretation, observing findings and
providing suggestions and recommendations etc. and also gained valuable
experience of working in a formal industrial setup which would go a long way
in building a sound career in marketing field in future. Also its is my heartful
gratitude to Nokia for providing me their world class facilities and delightful
work environment and ambience.

In the report I have put my best efforts to compile the data to the highest level
of accuracy and give my views to best of my judgment.

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NATURE OF THE STUDY

The development of IT market it is necessary to touch all areas and
should be available in rural areas as well as in urban areas, now the
companies are focusing on brand perception and the strategies for that
are made and market research for the promotion is needed.

To grab the rural market share, all the players are doing continues
innovation on every front of marketing mix ranging form product, place,
prince, promotions and packaging in various colors, sizes, flavors &
packages.

In the process of marketing distributors, retailers & consumers all are
considered as major elements, on the motivation of these channels have
gained a lot of importance. The contents of this report have been
carefully planned. All the analysis is based on primary data. The report
has been written in lucid language and necessary data and chart are used
for easy understanding.

I am hopeful that the reader will find this project useful in preparing
strategy for rural areas.

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INTRODUCTION
Nokia remains the world's number one manufacturer of mobile phones,
although its position is under threat from other manufacturers,
particularly Sony Ericsson and Samsung. Nokia have the advantage of
outstanding loyalty from its traditional customers, together with a
perceived reputation for reliability and user-friendliness. One of Nokia's
problems is its difficulty in competing against electronics giants like
Sony and Samsung with their unparalleled expertise in technologies like
digital photography and LCD displays. As these technologies become
more and more important in modern phones, the gap between Nokia and
its rivals becomes more apparent. Nokia's response is to focus more on
innovative design and the concept of a "fashion" phone. However, at the
top end of the market, Nokia has a dominant position in the smartphone
market with its Series 60 platform.

Click on any of the Nokia phones below to read a full review (plus
independent reviews by consumers), and to find the best place to buy in
the UK.
Nokia N-Gage - phone & games console in one!
Nokia 1100 - entry-level phone, designed with simplicity and reliability
in mind
Nokia 2100 - practical and fun phone
Nokia 2300 - very basic phone
Nokia 2600 - entry-level colour phone
Nokia 2650 - odd-looking clamshell phone with basic features
Nokia 3100 - colour phone with glow-in-the-dark cover
Nokia 3200 - entry-level camera phone with custom covers
Nokia 3220 - fun camera phone aimed at teenagers
Nokia 3230 - review coming soon!
Nokia 3300 - music phone with MP3 player, stereo FM radio, and a
digital recorder
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Nokia 3310 - very popular pay as you go phone
Nokia 3410 - replacement for the Nokia 3330, with lots of new features
Nokia 3510 - similar to the 3410, with polyphonic ringtones, but lacking
Java b
Nokia 3510i - best of the 3410/3510 series
Nokia 3650 - multimedia phone with digital camera and video camera
Nokia 3660 - enhanced version of the 3650 with 65k colour screen
Nokia 5100 - hard-wearing phone with colour display & built-in radio
Nokia 5140 - durable phone designed for sport and outdoor use
Nokia 5210 - hard wearing, versatile phone
Nokia 6100 - advanced feature-rich lightweight phone
Nokia 6170 - excellent value clamshell camera phone with metal case
and a good range of features
Nokia 6220 - business class phone that also includes features like an
integrated digital camera, video recorder and FM radio
Nokia 6230 - improved version of the 6220 with 65k colour display
Nokia 6230i - review coming soon!
Nokia 6260 - advanced clamshell-design smartphone
Nokia 6310 - replacement for the classic 6210
Nokia 6310i - adds triband and Java™ capability to the Nokia 6310
Nokia 6510 - advanced phone, with similar features to the 8310
Nokia 6600 - smart phone with 65k colour display, camera, camcorder
and Symbian operating system
Nokia 6610 - all the features of the 7210 in a more conventional design
Nokia 6610i - adding a digital camera to the 6610
Nokia 6630 - first 3G smartphone
Nokia 6670 - multimedia smartphone with megapixel camera
Nokia 6800 - brand new phone with full QWERTY keyboard
Nokia 6810 - full QWERTY keyboard, Bluetooth wireless connectivity
and high speed data
Nokia 6820 - messaging device with QWERTY keyboard and
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multimedia features
Nokia 7200 - Nokia's first clamshell phone
Nokia 7210 - hot new phone with colour display, triband, Java™ and
polyphonic ringtones
Nokia 7250 - similar to the 7210, but with an integrated digital camera
Nokia 7250i - enhanced version of the Nokia 7250
Nokia 7260 - Art-Deco inspired camera phone
Nokia 7270 - fashion phone with MP3 ringtones and viceo camera
Nokia 7600 - 3G phone
Nokia 7610 - multimedia smartphone with megapixel camera
Nokia 7650 - amazing multimedia phone with colour display
Nokia 8310 - most popular Nokia phone, widely regarded as the best
currently available
Nokia 8910i - exclusive phone with stunning looks
Nokia 9210 - heavy-duty mobile communications device

Nokia 9210i - updated Communicator with more memory and improved
internet support
Nokia 9500 - latest Communicator with more memory, improved
display, and WiFi support.

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OBJECTIVE OF
STUDY

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OBJECTIVE OF STUDY

The purpose of research is to discover answers to questions through the
application of the scientific procedures the main aim is to find out
the truth which is hidden and which is not been discovered yet .

Our main objective is to find out the problems which are the main
barriers in the promotion of NOKIA in NCR market. Our others
objective are:
• To find out the sources of promotion in NCR/Delhi market.
• To find out perception of NCR/Delhi people about NOKIA brand
• To locate the potential NCR/Delhi market for NOKIA
The research program is designed for the promotion of NOKIA in
NCR/Delhi area and overcome the main barriers for brand in market
of NCR/Delhi , the work which is being done for this is described as
fallows .
To find out the areas where perception is positive and where
is negative ; initially we see that how many areas are positive and
how many are negative responded . Problem faced in the market
because they are in the in the direct contact of consumer and know
their liking and disliking in a better way, Problems and their solution in
NCR/Delhi market ; ultimately we have to increase the sale of Nokia
in this areas for this it is mandatory to remove the problems like
consumer awareness . These problems could be find out by doing
survey of that particular area .

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DURATION OF THE STUDY

8 Weeks

The four phases into which the project was divided were

1. Retail Tracking 2 Weeks

2. Each Distributor survey 3 Weeks

3. Each SD survey 1 Week

4. Analysis of finding and observations 2 Week

SCOPE OF STUDY
8|Page

We don't think that the signals in the last two years mean that Nokia lost
the leading role in the mobile market. Probably there is another truth
behind it: Nokia, as a lot of other brands, is still trying to digest the fall
down of mobile forecast. The problem is always the same people talk
enough using the mobile and all the sector needs is something that has
real value for customers (business and consumer) and for corporate and
that speeds up market growth. If you see the numbers, you will see that
just Samsung grew in last two years.

Motorola, Ericsson, Sony Ericsson, Panasonic and others are still
floating in the market. I think that without an answer to the main
question (what will make the value's market speed up?), leaders like
Nokia will have some problems to increase the leadership.

In this report we have analyze that Nokia is having a very great position
in present scenario and in the coming years as well and other companies
have to do very well to remove the Nokia brand from the customers
mindset.

9|Page

LIMITATIONS OF THE RESEARCH

This research was subjected to following limitation:

1. The survey cannot be termed 100% accurate due to lack of time
and time and cost only 500 users and 50 retailers and whole
sellers had been studied. Thus the scope of study is limited in
terms of no. of respondent.

2. The lack of candidness of respondent towards answering the
questionnaire in few cases may have reduced the accuracy of
survey to some extent.

3. Despite the unbiased opinion and efforts the possibility of
technical exceptions cannot be ruled out.

4. The statistical analysis with various automated tools might have
computational errors.

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RESEARCH
METHODOLOGY

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RESEARCH METHODOLOGY

Research in common parlance refers to a search for knowledge. One can
also define research as a scientific and systematic search for pertinent
information on specific topic. In fact research is an art of scientific topic.
Some people consider research as a movement, a movement from the
known to unknown. Research is an academic activity and as such the
term should be used in a technical sense. Research comprises defining
and redefining problems, formulating hypothesis or suggested solutions
; collecting ,organizing and evaluating data making deduction and
reaching conclusion ; and at last care fully testing the conclusion to
determine whether they fit the formulating hypothesis . social science
define the research as the manipulation of things , concepts or symbol
s for purpose of generalization to extend ,correct or verify the
knowledge aids in construction of theory or in the practice of an art
.research is thus an original contribution to t existing stock of know
ledge making for its advancement . The systematic approach
concerning generalization and the formulation of the theory is also
research.

Defining the Problem:
Quite often we all here that problem half solved. This statement signifies
the need research problem properly is a perquisite for any study and is a
step of highest important. In fact formulation of problem is mire
essential than its solution. In Brand Positioning by NOKIA our main
problem is how to create the brand image of NOKIA in NCR/Delhi
areas and strengths the roots of NOKIA Company in the industry. A part
from this we have it cores the national capital region in a peoples way in
terms of approach.

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Objective of research
Our main objective is to find out the problems, which are the main
barriers in the promotion of NOKIA in NCR/Delhi market. Our others
objective are:
• To find out the sources of promotion for NCR/Delhi market.
• To find out the Brand perception on people.
• To locate the potential market for NOKIA.

Research design
A research design is the arrangement of conditions for collection and
analysis of data in a manner that aims to combine relevance to research
purpose with economy in procedure. Here we have used descriptive
research design. Since the aim is to obtain complete and accurate
information in the said studies.

The process had to be started from the grass root level and it was very
important to understand the market for this IT product, which is very
fast in production, distribution and consumption.

The entire process was more of a Descriptive Research type and
incorporated a formal study of the specific problems faced by most IT
companies an exploring the opportunities in the untapped market. The
survey was conducted on the basis of NOKIA’s product preference and
evaluation of sales forecast in the new and underdeveloped market
including the evaluation of the advertising and promotional measures.
The data collected had to be systematically arranged, analyzed and
reported in a form congenial to take on the spot decisions

The entire set of various segments in the population comprises all the
retail store and outlets each retail store in the sampling frame constitute

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the sampling unit in brief we can say overall sampling is based on 100
people.

Sampling design
A sample design is a definite plan for obtaining a sample from a given
population. If it refers to the technique or the procedure the researcher
would adopt in selecting items for the sample. Sample design may as
well lay down the no of items to be included in the sample. The
researcher must prepare the sample design which should be reliable for
research study.

Universe
The universe is finite universe where number of items is finite in the
given problem the universe is infinite and whole NCR/Delhi area of
NCR/Delhi.

Sampling unit
Decision is taken after concerning the sampling unit, sampling unit may
be a geographical one such as state district village etc or a construction
unit such as house flat or it may be a social unit a club or school. Here
selected sampling unit for study is outlet of NOKIA.

Source list
It contains all the items of universe in case of infinite universe it is also
known as sampling frame.

Size of sample
It refers to the no. of items selected from the universe to constitute a
sample. The size of sample is 100 people of NCR/Delhi.

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Collections of primary data
The task of data collection begins after a research problem has been
defined and research plan chalked out. The primary data are those which
are collected a fresh and for the first time and thus happen to be original
in character.

We collect the primary data during the course of doing experiments. In
given problem the descriptive research is used so we can obtain primary
data either through observation or through direct communication with
respondent or through personal interviews.

For collecting primary data we used observation method, interview
method and interview through questionnaire.

Fieldwork
The entire project was divided into five phases and each phase had its
individual significance and supplemented each other.

The four phases into which the project was divided were
1. Retail Tracking
2. Each Distributor survey
3. Each SD survey
4. Analysis of finding and observations

Data Sources
• BUSINESS STANDARD

• ECONOMIC TIMES

• BUSINESS & ECONOMY

• BUSINESS TODAY

• www.google.com
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• www.nokia.com

• www.comparetheproduct.com

• Questionnaire

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INTRODUCTION OF NOKIA
GROUP

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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.

The world's first international cellular mobile telephone network NMT
was opened in Scandinavia in 1981 with Nokia introducing the first car
phones for the network Or, that the world's first NMT hand portable, the
Nokia Cityman, was launched in 1987.

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ORIGIN

Year 1969
Nokia introduced the world's first 30-channel PCM (Pulse Code
Modulation) transmission equipment conforming to the standards of
CCITT (Consultative Committee on International Telegraphy and
Telephony).

Year 1981
The world's first international cellular mobile telephone network NMT
opened in Scandinavia with Nokia introducing the first car phones for
the network.

Year 1982
Europe's first digital telephone exchange, the DX 200.

Year 1984
The world's first portable NMT car telephone, the Nokia Talkman.

Year 1987
The world's first NMT handportable, the Nokia Cityman.

Year 1988
The world's first ISDN (Integrated Services Digital Network) exchange
conforming to CCITT standards, manufactured by Nokia, was brought
into use in Finland.

Year 1989
The world's first Actionist trucking mobile radio network was brought
into operation. The world's first fast-poll 14,400 bps (bits-per-second)
modem.

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Year 1990
The world's first Radio Data System (RDS) and Mobile Search (MBS)
text pagers.

Year 1991
The first manufacturer to have a large-scale production-ready GSM
phone.The world's first genuine GSM call made using Radiolinja's
network, supplied by Nokia.

Year 1992
The Nokia 1011, the first digital handportable phone for GSM
networks.The Nokia 100 series, the first family of handportale phones
for all analog networks.

Year 1993
The first Personal Communications Network based on GSM 1800
standard delivered by Nokia.The world's first SMSC (Short Message
Service Centre) taken into commercial use in Europolitan's Nokia
network.The world's first credit card size cellular modem card
developed with AT&T Paradyne.

Year 1994
The first offical GSM call in the People4s Republic of China made on a
Nokia phone on Beijing TA4s network, supplied by Nokia.The first
European manufacturer to start selling mobile phones in Japan.The
world's first Data Communications Server (DaCS), providing fully
digital, fast access to corporate LANs.The world's first digital cellular
data products, including the Nokia PC Card and the Nokia Cellular Data
Card.Inmarsat made the world's first satellite telephone call with Nokia's
pocket-size GSM handset.The first manufacturer to launch series of
handportable phones for all digital standards (GSM, TDMA, PCN,

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Japan Digital). The Nokia 2100 was the world's smallest and lightest
family of digital products.

Year 1995
The world's first integrated wireless payphone.The new joint venture,
Beijing Nokia Mobile Telecommunications Ltd., was established: the
first factory to manufacture large scale GSM systems and equipment in
China.

Year 1996
The first digital multimedia terminal in the world, the Nokia
Mediamaster.The Nokia 8100 product family, the first with an
innovative, ergonomically comfortable design. Chinese character short
messaging service and Chinese user interface were launched in the
Nokia 8110 mobile phone. Nokia was the first manufacturer to offer
both simplified and traditional character sets in the same phone.

The Nokia 2160, the first available dual mode AMPS/TDMA phone.

The Nokia 9000 Communicator, the world's first all-in-one mobile
communications tool introduced at the CeBIT exhibition.

Year 1997
The world's first four TETRA networks were delivered by Nokia.
A new handset for the NMT 450 standard, the Nokia 540, which is the
world's first NMT phone with Navi Key.
The next generation GSM product family, the Nokia 6100 series. New
standards for operating times and a set of innovative industry-first
features, including audio quality and an entirely new Profile function
which enables users to adjust the phone settings according to various
situations.

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Next generation half-rate hand portable for the digital PDC standard in
Japan. With this introduction, Nokia is the first company to demonstrate
an entirely new, innovative feature for PDC handsets, which enables
calling by voice activation.
The world's first GSM dual band base station, the Nokia GSM
900/1800 Dual Band BTS. This provides the possibility to integrate
GSM 1800 transceivers (TRXs) into an existing GSM 900 Base
station(BTS). The first call on the Helsinki City Energy Company's
digital TETRA network was made. The network, called officially Helen
Net by Helsinki City Energy Company, is the world's first network
taken into operative use, according to the TETRA standard.'

The Nokia 3810, the first mobile phone specially designed for Asian
consumers.

Year 1998
Nokia delivered world's first ETSI standard ADSL and IP network to
Telecom New Zealand, thereby marking the start of commercial
delivery of broadband data services using the ADSL network.

The Nokia 9110 Communicator, the first hand-held mobile device
supporting wireless imagining.
The Nokia 5100 series, the first mobile phones with user-changeable
covers. The world's smallest NMT 450 phone, the Nokia 650, sets a
new benchmark for NMT 450 technology. As a special additional
feature and first in the market, the Nokia 650 has a built-in FM radio.

Year 1999
Nokia introduced the world's first high-speed data terminal for wireless
networks: the Nokia Card Phone 2.0 brings about a four-fold increase in
data transmission speed.
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Nokia completed the world's first WCDMA (Wideband Code Division
Multiple Access) phone call through a public switched telephone
network.

Nokia announced the world's first media phone that is based on the
Wireless Application Protocol (WAP) in Mobile Media Mode. The
Nokia 7110 dual band GSM 900/1800 media phone has been designed
to enable easy access to Internet content from a mobile phone.

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GROWTH AND DEVELOPMENT
Year 2000
Nokia introduced the world's first IPv6-enabled end-to-end GPRS
network. Operators can use Nokia GPRS networks to provide their
customers with new types of services that bring benefits offered by
IPv6, such as global reachability and end-to-end security.

Nokia introduced the world's first TETRA WAP browser which brings
powerful WAP applications to TETRA professional mobile radio
networks. WAP over TETRA provides a new method of data
communication for professionals. It enables real-time direct access to
various customer and technical databases in only a few seconds.

Nokia has combined the versatility of WAP with the power of TETRA
to introduce the world's first WAP services for digital professional
mobile radio users. The new WAP services have been developed in co-
operation with Finnish companies Helsinki Energy and Tekla
Corporation. Nokia and Sonera have completed tests that bring roaming
capabilities for IP traffic between GPRS networks for the first time in
the world.
Nokia and Scandinavian Airlines Systems announced a partnership to
bring Nokia mobile phones to the selection of goods sold on all
international SAS flights. This is the first time mobile phones will be
sold on airplanes.

Nokia launched the Nokia LiveSite platform, the world's first WCDMA
implementation which is compatible with the latest 3GPP standards for
third generation networks.
Nokia successfully carried out the world's first WAP service over a trial
WCDMA system. The tests were completed in Beijing, China, where
Chinese language WAP services were transmitted via the WCDMA
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system and radio network.
Nokia, a founding member of the SyncML initiative, announced that it
had successfully demonstrated the world's first wireless Internet
synchronization using the SyncL protocol.
Nokia is the first vendor in the world to bring full mobile IP packet data
functionalities into TETRA networks. Nokia TETRA IP significantly
enhances access to WAP services and more efficient WAP service
development is possible with new TETRA IP functionalities.

Nokia announces world's first GPRS roaming between M1 Singapore
and Cable and Wireless HKT Mobile Services, Hong Kong. This is the
first announcement of its kind in the world for GPRS inter-operator
roaming.

Year 2001
Nokia introduces the industry first multimedia messaging solution, the
Nokia Artuse (TM) MMS (Multimedia Messaging Service) Center, a
high-capacity platform for the next wave of mobile messaging. The
solution enables operators to introduce multimedia messaging services
combining new rich content, such as audio and video clips, photographs
and images with the traditional text messaging.

Nokia and the Finnish operator Sonera conducted the world's first
Wireless LAN roaming based on GSM technology. Sonera is making
use of Nokia technology that allows mobile operators to offer broadband
wireless Internet services in Wireless LAN access zones.

Year 2002
Nokia succesfully made the first 3G WCDMA packet data calls between
its commercial network infrastructure and terminals in its laboratories in
Finland. The Nokia 3G WCDMA network and terminal used were based

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on the commercial standard level known as 3GPP (3rd Generation
Partnership Research research project) Release 99 June 2001 version.
This was the first time that packet data has been transmitted end-to-end
on a commercial system based on the above mentioned commercial
standard.

Year 2004
Nokia announced that the world's first cdma2000® 1xEV-DV high-
speed packet data phone call was completed at Nokia's CDMA product
creation center in San Diego. The call, achieving a peak data rate of 3.09
Mbps, was made between a test set based on a commercially available
Nokia 2285 handset upgraded with a Nokia 1xEV-DV chipset and a
Racal Instruments, Wireless Solutions Group, 1xEV-DV basestation
emulator. This chipset is the world's first to support complete 1xEV-DV
Release C functionality.

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Year 2006
Using Nokia's CDMA Dual-Stack handset, Nokia demonstrated the
industry's first Mobile IPv6 call at the 3G World Congress Convention
and Exhibition in November. The demonstration highlighted real-time
streaming video with seamless handoff between two CDMA access
networks using Mobile IPv6.
Nokia announced the Nokia NFC (Near Field Communication) shell,
the latest step in the development of innovative products for mobile
communications, in November. With the Nokia NFC shell on their
phone, consumers will be able to easily access a variety of services and
conveniently exchange information with a simple touch gesture utilizing
NFC technology.
In October, Nokia and TeliaSonera Finland successfully conducted the
world's first EDGE-WCDMA 3G packet data handover in a commercial
network.

Achieving a first for the Asia-Pacific region, Nokia, MediaCorp
Technologies, M1 and the Media Development Authority of Singapore
jointly showcased a live end-to-end mobile phone TV broadcast over a
DVB-H (Digital Video Broadcast - Handheld) network at the Nokia
Connection event in Singapore.

Nokia and Texas Instruments Incorporated introduced the first pre-
integrated and validated Series 60 Reference Implementation based on
TI's OMAP(TM) processor-powered reference design in February. The
Reference Implementation is available immediately to Series 60
licensees.

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Year 2007
The Nokia 6630 imaging smartphone has as the first device in the world
achieved global GCF 3G WDCMA Certification. The certification was
achieved based on the requirements defined by Global Certification
Forum (GCF), an independent industry body which provides network
compliancy requirements and testing for GSM/WCDMA mobile
devices. SBS Finland's Kiss FM became the first radio station in the
world to begin Visual Radio broadcasts. This unique new concept
developed by Nokia offers the listeners the possibility to give feedback
and to participate in programs easier than ever before.

Nokia introduced a new product for secure mobile contactless payments
and ticketing. The world's first Near Field Communications (NFC)
product for payment and ticketing will be an enhanced version of the
already announced Nokia NFC shell for Nokia 3220 phone.

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PRODUCT
PROFILE

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PRODUCT PROFILE

o 6301

o E51

o N81 8GB

o N81

o N95 8GB

o 5610

o 5310

o 6555

o 7900 Prism

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o 7500 Prism

o 8600 Luna

o 6500 slide

o 6500 classic

o 3500 classic

o 2630

o 6267

o 2760

o 2660

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THEORETICAL CONCEPTS

Meaning of Marketing
Marketing is societal processes by which individuals and group obtain
what they need and want through creating, offering and freely exchange
the products and services of valve with others. For a managerial
definition, marketing has often been described as “the art of selling
products’’, but people are surprised when they hear that the most
important part of the marketing is not selling! Selling is only tip of
marketing iceberg.
The American marketing association offers the following definition :
marketing is the process of planning and executing the conception
,pricing , promotion and distribution of ideas , goods and services to
create exchanges that satisfy the individual and organizational goals.
Marketing Research System
Marketing managers often commission formal marketing studies of
specific problems and opportunities. They may request a marketing
survey, a product performance test , a sales forecast by reason, or an
advertising evaluation. It is the job of marketing researcher to produce
customer insight into problem. we define the marketing research as the
systematic design ,collection , analysis , and report of data and
findings relevant to specific marketing situation facing the company.

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Consumer Idealogy
People started realizing that mobile phones are becoming very
powerful and are likely to become a dominant device for CCC
( communication, computing and content). Computing people got into
action and now you have started seeing increasing number of computer
like phones appear in market. These devices even have full keyboards
for interfacing with Internet and for e-mail. What is equally interesting
is that these devices are suppose to be used for browsing Internet, in
addition to regularly getting your e-mail, and getting even documents
on these devices. I have nothing against people using inappropriate
devices in some situation – like using a knife as a screwdriver - so we
should not be surprised about people trying to use phones for accessing
their e-mail. In general, however, a phone is a poor substitute for a lap
top computer. But more and more phones are taking exactly the form
of a laptop. Just try putting a modern phone, particularly the clam
models, next to a laptop and you will see that the phone is nothing but
a smaller version of a laptop.

Branding
Branding is a major issue in product strategy. As Russell Hanlin, the
CEO of Sunkist Grower, observed : ”An orange is an orange………is an
orange. Unless……that orange happens to be Sunkist, a name80% of
consumers know and trust. ”well-known brands command a price
premium. Japanese companies such as Sony and Toyota have built a
huge brand loyal-market. At the same time, developing a branded
product requires a great deal of long-term investment, especially for
advertising, promotion, and packaging.

Companies need to research the position their brand occupies in the
customer’s minds. According to Kevin Keller, “ What distinguishes a
brand from its unbranded commodity counterparts is the consumer

33 | P a g e

perceptions and feelings about the product’s attributes and how they
perform. Ultimately, a brand resides in the mind of the Consumers”.

Product differentiation
Consumer learning occurs in mature markets as well. Product
differentiation is one such example. The classic view of product
differentiation is that it is about discovery: finding a relevant, widely
valued but unmet dimension. This approach implicitly assumes that
buyers value some aspects of the product that have simply been ignored.
Once all valuable aspects have been discovered, further

Differentiation is Impossible.
A consumer learning perspective suggests, in contrast, that
differentiation can be successful even if no undiscovered dimension of
preference exists. Differentiation is possible so long as a new dimension
exists that buyers can learn. The differentiating attribute need not be
relevant. The strategy of “meaningless differentiation" is widespread.
For example, Alberto Culver differentiated its Natural Silk shampoo by
adding silk and advertised that it “puts silk in a bottle".
Culver, however, later said that silk does nothing for hair. Throughout
the evolution of the marketing concept, the basic notion that
Competitive advantage can be created by giving customers what they
want has remained unchanged. All that has changed is the way in which
customers are satisfied. Today's organizations are gaining a deeper
understanding of customers.

They are learning about the goals they hope to achieve in their lives and
then creating powerful links between these goals and their brands.

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Access to customers
When a pioneering product appears in the market, it simply steals the
show and it captures more attention of the customers and distributors
than any other late entrant. Moreover, advertisement of the product that
takes the lead is not cluttered by the messages from rivals. Even in the
later stag, the followers must continue to spend more on advertising to
achieve the same effect as pioneers. The first entrants can also set
standards for distribution, occupy the best locations or select the best
distributors, which can give it easier access to customers. For instance,
Starbucks, as the pioneer, was able to open coffee parlors in more
prominent locations than its rivals.
Switching costs
Switching costs arises when investments are required that would be lost
while switching over to another product. To site an example, if one has
developed skill in the traditional QWERTY keyboard, switching to a
more efficient Dvorak keyboard would require relearning how to type,
an investment that in many cases would exceed the expected efficiency
gains.

Pioneering products have the first chance to become the trusted brand.
And the late entrants would need to convince the buyers to bear the
costs and risk of switching to an untried brand of unknown quality.

Network externalities
The value to buyers of many high-technology products depends not only
on their attributes but also on the total number of users. The value of
videophone, for instance, depends on the number of people using it. The
first entrant surely has the opportunity to build a large installed base
before competitive entry. This reduces the followers' ability to introduce
differentiated products.

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Operation/cost-based advantages
Operation/cost-based sources of pioneering advantage fall into three
main categories as follows:

Experience effects and economies of scale. Taking the lead into the
market means that pioneers can build production volume and
accumulate research and market experience before any other rival. This
potential cost advantage can be used to achieve higher margins or to
protect customer-based advantages through lowering prices to
discourage rivals from entering the market.

Measuring competitive interaction
In previous studies, four approaches have been used to measure the
competitive interaction between market-players: reaction function
estimation, menu approaches, conjectural variation models and time
series casual approaches.

Communication
To collude effectively, companies must send information to each other.
Or else the cartel falls apart. Managers can simply call a competitor on
the telephone or meet in an office or some other discreet location.
Companies have also used a number of less obvious means of
communication which include announcing pricing plans over online
networks (US airlines were caught doing this using their reservation
systems): using “meet or beat" pricing announcements over public
broadcasting media - these serve to establish price floors; organizing
joint trade events, symposiums, workshops and association meetings.

Constraints
In order for the cartel to survive, it is essential that all of the players
have a similar sense of constraints. Consider the simple case where the
actual sales potential for a given market is $500 million. Company A
36 | P a g e

correctly perceives the potential as $500 million but Company B
perceives the potential to be at least $ 900 million. Each of the two
companies starts with a 50 percent market share. Company B will be
erroneously tempted to engage in aggressive marketing in order to
expand its total revenue to absorb some of the perceived excess demand.
While doing so, it will cut into the share of Company A. Company A
will, surely, retaliate and the covert cartel will crumble. A number of
facilitators help to ensure that market constraints are similarly perceived
by competitors. This include the formation of trade associations,
workshops, seminars, industry-level training courses and other forums
open to all players within the same industry. These lead to discussion of
historical and future industry prospects and even in some cases to the
publication or sharing of data among cartel members.

Confusion
Confusion requires that consumers, employees, regulators and potential
entrants should not fully understand the working o the cartel. This
involves elaborate use of peripheral cues or signals. One of the most
common coordination schemes - Round Robin collusion - generates
such signals. This scheme works as follows. Let us suppose there is a
covert cartel of seven companies in the chemical industry. Al the
companies sell to clients around the Pacific Rim. This is a case of multi-
market contact. The same companies compete against each other at
different, rather disparate locations. Suppose all the seven companies
meet and decide to increase prices throughout the region to monopolistic
levels. Company A will volunteer to increase its price in, say, Indonesia,
citing a plausible reason. Its own market share will fall in Indonesia and
everyone else's share will rise. The other competitors will use the same
story in other Pacific Rim countries, each taking its turn as the “bad
guy" in order to help the others out. With the four Cs in place, a number
of companies have been able to maintain the illusion that there is no
37 | P a g e

collusion in their sector for a long time. They have been so successful
that citizens in countries where no price-fixing laws exist often do not
realize that price-fixing is a daily event for most of the products they
purchase.

The above article has been abstracted / condensed from the views of the
following professors in Mastering Marketing published by Business
Standard in partnership with Financial Times. All rights of the authors
and publishers are reserved.
* Philip Kotler, Professor of International Marketing at the Kellogg
Graduate School of Management, Northwestern University
* Gregory Carpenter, Professor of Marketing at the Kellogg
Graduate School of Management, Northwestern University
* Venkatesh Shankar, Assistant Professor of Marketing and
director of Quality Enhanced Systems and Teams (Quest) at the
Smith School of Business, University of Maryland
* William Putsis, Jr, Associate Professor of Marketing at London
Business School
* Philip Parker, Professor of Marketing, Insead

38 | P a g e

PRESENT STRATEGIES

1. For Nokia, it is a strategic issue to decrease churn & increase
customer loyalty for this they have organized and prepared the
solution based on the local culture of the countries they are
operating in.
2. Nokia tries to reach very good levels of performance by
setting and meeting performance targets, transferring
competence, providing customized service and setting up new
reporting methods which provide more visibility on actual
status & needs of the consumers.
3. Nokia innovative technology guarantees not only the highest
quality standards but also the most efficient network
management system worldwide.
4. Nokia regularly gives its engineers training in the will
equipped laboratories. It also provides the trainees, study
material which is clearly written and is very effective in the
operations of the Co.
5. Nokia strictly concentrates on the quality of service the
stability of its products and the future proof technology in
order to be the leader in telecommunications market.
6. Along with some other leading lompanies in
telecommunications like Mobile Com. In Austria Nokia has
done comprehensive evaluation and optimization of GPRS
core networks, for better and improved end-to-end
performance of certain applications like MMS.

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PAST STRATEGIES

1. In early 1870’s, due to European industrialization and the
growing consumption of paper and cardboards, Nokia started
manufacturing paper and became successful.
2. In 1920’s, sensing their growth prospects in rubber works, the
company established a rubber factory and manufactured
rubber for footwear, tyres, bands and raincoats.
3. After the world war II, a company “FINISH RUBBER
WORKS” bought the majority of shares of the co. “finnish
cable works”. It was a company that had grown very quickly
due to increasing need for power x-mission and telephone
networks. In 1967 both the companies were merged with the
Nokia group which head to the plantation of seeds of Nokias
global success.
4. In late 1960’s, Nokias electronics department started
conducting research into semiconductor technology which
was the beginning of Nokias Journey into
telecommunications.
5. In 1970’s most of the telephone exchange had analog switches
for data x-mission sensing & need for digital switches, Nokia
began developing digital switches, which became a success.
6. In 1988, Nokia was a large Television manufacturer and the
largest information technology company in the Nordic
Countries.
7. In 1995 their strategic goal was to sell 5,00,000 units, but they
were able to sell 20 million.

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FUTURE STRATEGIES

1. To constantly produce and introduce new innovative product
according to the changing needs of consumer.

2. To invest in experience and expertise.

3. The concept of 3 dimensional games and features like a
screen sever of fish aquarium are very popular these days so
the strategy should be continuously providing new features
like this to its consumers.

4. To promote sell and delivered products of services over a
world wide web.

5. Nokia thinks that there is a need to develop the most
competent workforce in the industry by targeting strategic and
systematic market development for all it employees.

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INTRODUCTION OF CELL PHONES
INDUSTRY IN INDIA

An exciting new world – dating services, online games, streaming
video – is about to open up for mobile phone users as cell phone
service providers gingerly tip-toe into the data business Calling all
mobile phone users -- your world is about to change dramatically in a
few months.

If you’re an ordinary mobile user, you'll be able to seek assistance on
your phone to find a house or a friend or to locate emergency services.
Indeed, mobile phone technology could soon be used to run the mobile
ATMs of banks, to find yourself a husband (if you’re a woman) or wife
(if you’re a man), play online games, zip photographs through your
mobile to your friends’ mobile phones, for video conferencing and
accessing streaming video and downloading short video clips.

Indeed, the mobile phone data business is already here. Experiments
with a range of new enhanced short messaging service (SMS) uses are
already on – SMS for the interactive contests of TV channels and for
corporate surveys, dating services (you can chat with someone who fits
your profile), to name a few. BPL Mobile, for example, tied up with
MTV for choosing the winners in a VJ Hunt and also for free tickets to
a Deep Purple live concert. It is now planning to tie up with Star TV
and Radio Mirchi for similar contests. Not long ago, BPL Mobile also
tied up with Hindustan Lever to poll its subscribers on Rexona soap.
Bharti has tied the knot with the Aaj Tak channel for polling Bharti's
subscribers.

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Indeed, it makes sense for mobile service providers to partner TV
channels and companies in SMS, because both sides share the revenue.
For TV channels, SMS is a cheap and effective way of reaching
viewers and helps make TV programmers interactive. For mobile
service companies, the deals spell money for jam – typically, they offer
around 20 per cent of the revenue from such deals to the channel if the
tie-up generates over a million SMS, and they keep the rest.

Nearly all cell phone service providers, including Bharti and BPL
Mobile, have also introduced some form of dating and friendship SMS
service (Track Ur mate, in Bharti’s case) after introducing 32 K SIM
cards. In the works too is the introduction of multimedia messaging
services (MMS -- for example, you’ll be able to e-mail photos clicked
on an in-built camera in your phone to another mobile number for Rs 6
to Rs 7).

That's not all. Mobile phone technology will also be harnessed for
several business uses. If you're a truck driver, you will be using your
mobile phone to keep your company informed of your truck’s position,
without even making a call, thanks to a new SIM card being developed
that will transmit only data, not voice. And if you're a salesman at a
fast moving consumer goods company, you may be providing
information to your office on inventory levels at a retail outlet and
booking orders by punching in a few numbers.

As a result, SMS – the hottest new data application on the mobile
phone – as we now know it could become passe, though it could come
roaring back in a new avatar. If a brave new world awaits mobile
phone users, it’s because cellular service providers still earn most of
their revenue from voice (telephone calls) -- and cut throat competition
and dramatic tariff cuts are forcing them to take a harder look at
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generating extra revenue from mobile data-based value-added services.
Two key developments are pushing service providers into India’s
fledgling data market. One, global systems for mobile communications
(GSM) -based cellular operators across the nation propose to launch
the general packet radio system(GPRS – 2.5 G) services in the next
few months. The second is the introduction of CDMA-based limited
mobile services by business groups like Reliance which are set to offer
both 2.5G as well as 3 G services from late December.

Unlike existing mobile phones, 2.5 G and 3 G offer platforms which
make it possible to transmit data at very high speeds. This could
radically change the mobile data market, making innovative corporate
mobile data services a reality and high speed e-mail a distinct
possibility. It would also give SMS a new lease of life because mobile
users will be able to send pictures and videos to other mobile users or
elsewhere. Right now, pictures cannot be transmitted through SMS –
though icons or graphics can – and SMS faces the disadvantage of
being restricted to a limited number of characters. Notes Kobita Desai,
telecom analyst at Gartner, the research firm: “Content, which will
hold subscribers, will be a key factor for the development of the data
market. We will see a lot of niche content addressing the needs of
various market segments.”

While few are ready to share their data market strategy, India’s mobile
phone service companies are unquestionably either working on, or
have launched, the following:

A GPRS-powered sales force automation system for FMCG as well as
insurance companies is being developed. Salesmen or saleswomen
will, for instance, be able to update new orders on their GPRS-enabled
phones and transmit the data to their head offices or warehouses, so
44 | P a g e

ensuring better inventory management and quick delivery. Sales staff
can also get into the warehouse database to check whether the products
ordered are available or not. And insurance agents can key in the data
required for a new policy on a GPRS-enabled mobile phone and, with
the press of a button, send data to the central office where the policy
will get processed in double quick time.

A fleet management system where truck drivers will be able to use
their mobile phones to transmit data on their positions to the central
monitoring office. The Bharti group held discussions with trucking
companies and large FMCGs to sell its fleet management system, but
realised that companies were concerned that the phones could be
misused by drivers to make personal calls. So the Bharti group is now
working with vendors to develop a SIM card that can transmit only
data.

BPL Mobile realised that GPRS connectivity can be used as a
replacement for small aperture satellite-based systems (V-sats) for data
communications. It has tied up with Zee. Over 200 of Zee's PlayWin
lottery mobile kiosks spread across Mumbai are powered by GPRS
links to a central location where the draw takes place.

Talks are also on with banks to use GPRS connectivity for running
mobile ATM centres. Says a senior BPL mobile executive: “V-sat
connectivity has numerous reliability problems. GPRS connectivity is
an answer to these. This usage is peculiar to India.”

CDMA-based operators will be launching the latest CDMA2000ix
phones with 3G services. These include position location services (for
around Rs 3), picture downloads (Rs 2 to Rs 3), video conferencing,

45 | P a g e

on-line gaming, streaming video and short video clip downloads.
Expect too a range of e- commerce solutions.

Cellular service providers, meanwhile, are convinced that the SMS
market will explode. BPL Mobile, for example, expects its SMS traffic
to go up from 1.2 million paid messages a day to 2 million at the end of
this year. Hutchison Max too sees a huge opportunity here. Says
Sudarshan Banerjie, CEO of Essar-Hutchison in Delhi: "About 5 per
cent of our revenues come from data and the number of messages sent
is virtually doubling every year". Hutch is planning to slash SMS prices
to Rs 1.20 (from Rs 1.50) in Delhi to expand the market further. Data
services accounted for about 2.5 per cent of the Bharti group's revenue
last year; this year, the figure is expected to go up to 3.5 per cent.

To be sure, the number of SMS messages sent every month per
subscriber is much lower than the world average of 40 and the
Philippines' average of 200. But US research firm Gartner says that
Indian subscribers who use SMS regularly already send over 40
messages a month and the numbers are going up dramatically every
month (see chart).

They could go up by leaps and bounds --- mobile service providers see
a rich vein to tap in vernacular language SMS services. They've joined
with mobile phone manufacturers to introduce vernacular SMS. Bharti,
for instance, is experimenting with Hindi, Bengali and Gurmukhi and
Nokia has introduced a phone with vernacular key pads and software
that recognises Indian languages. Says Anil Nayar, head of mobility at
Bharti Televentures: "Vernacular languages will go a long way in
pushing SMS usage in the country."

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With all this going on, Gartner thinks that in 2006 data services will
account for 17 per cent of the revenue of mobile service companies, up
from a mere 3.75 per cent last year. A Merril Lynch report forecasts
that Indian operators will earn over US $ 76 million (over Rs 372
crore) from data by 2005, a figure that represents a compound annual
growth rate of 69 per cent from 2000 revenue (see chart).

Expanding the data market makes economic sense for mobile service
companies. Margins in SMS are a high 90 per cent or so of the tariff.
That's because service providers don't have to share revenue from SMS
with the government, unlike in the case of voice calls. The only cost
incurred is on setting up a messaging centre. Says Rohit Bhatia, head
of new products at the Bharti group : "Earlier, data applications were
seen as something good for the brand and as something that would
reduce customer churn. But with voice tariffs coming down, data
services are seen as contributing to revenue."

Still, the mobile data market has its fair share of Cassandras too. Says a
senior executive of a US-based telecom company: "Considering the
low penetration of phones in India, the first step is to ensure that more
people have a phone for simple voice usage. Data is a luxury, meant
for advanced markets, not for India."

The mobile data business is, of course, in its infancy in developed
markets. In Europe, mobile data accounts for around 11 per cent of
operators' revenues. In the US, the figure is as low as three per cent.
And even in markets like China, data weighs in with less than two per
cent of revenue. What is more, despite well over a billion plus mobile
subscribers in the world, only five million are hooked on to 3G phones.

47 | P a g e

While voice will still remains the predominant source of revenue at
least for the next few years, the potential revenue from data services
can't be ignored. So most mobile phone operators are using a
combination of strategies -- aggressive pricing, building specialised
GPRS-based products for the corporate sector relevant to India and
promoting value-added SMS services -- to expand the data market.
Still, GPRS hasn't yet taken off in India. BPL Mobile, for example, the
first to launch GPRS in India, has some 4,000 subscribers in Mumbai --
its goal this year is 10,000 -- partly because GPRS-enabled mobile
phones weren't ready in the first few months. But the company is still
hopeful.

Says F B Cardosa, president and CEO of BPL Mobile : "We expect to
increase revenue earnings from non voice (including GPRS) services
from 10 per cent of the revenue to 15 per cent by the end of this year."
That's close Gartner's 17 per cent research research projection for data
services in 2005.

So mobile data may still be a fledgling business here, but expect this
fledgling to grow up pretty quickly.

Asia will lead the charge
Mobile data may not as yet provide substantial revenue to cell
operators worldwide, but that could change dramatically. A Merril
Lynch report forecasts that revenue from mobile data (including 3 G
services) will more than double to 27 per cent of a cellphone service
provider’s revenue in Europe by 2005, from around 11 per cent in
2002. What is more, around 17 per cent of this will come from data
carried on 2.5 and 3 G services.

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In the US, mobile data has yet to catch on. But the US mobile data
market too is expected to grow substantially, if not dramatically. The
Mobile Data Association expects the number of cellular data users to
top 28 million by the end of 2003 and generate over US $ 2.6 billion in
revenue.

Leading the mobile data charge will, however, be Asia. i-Mode,
DoCoMo’s sweepingly successful service in Japan, expects 25.8 per
cent of its revenues to come from data by 2002 end, though the hot
growth rates could plateau.

In China, cellular service providers get just two per cent of their
revenues from data, but the market could explode. The Yankee group
estimates that China’s wireless data market will balloon to US $ 5.68
billion by 2005 from only $ 2.72 million in 1999. It expects as much as
40 per cent of mobile phone users to use data.

In the Philippines, SMS accounts for over 22 per cent of an operator’s
revenue (on an average, a cellphone service subscriber sends 11.2 SMS
every day, thanks to low prices and the free SMS packages operators
offer).
Note too that around Asia and in the US, CDMA-based cellular service
operators who offer 2.5 G services have taken a lead over operators
who offer GSM-based GPRS services in the mobile data arena. That’s
because their services are cheaper and handsets are easily available and
are more affordable.
In Korea, for instance, Morgan Stanley research research projects that
9.2 per cent of S K Telecom’s (which offers CDMA services) revenue
will come from data by 2002 end. It also believes that over 12.8
million Koreans will subscribe to CDMA 2.5 G-based services, with
the figure going up to 19.7 million by 2003.
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PROMOTION STRATEGY
FOR NOKIA MOBILE

50 | P a g e

PROMOTION STRATEGIES FOLLOWED BY NOKIA

PROMOTION:
Promotion is an element in an organization Marketing Mix that
serves to Inform, persuade and/or remind people about an
organization's or individual's goods, service, Image, ideas,
community, involvement or impact on society. Promotion is used
in hopes of influencing the recipient's feeling beliefs, or behaviour,
through any form of communication.

Promotion Plans:
Promotion for Dealers:
o Whole Seller: Promotion by Nokia to whole seller have given the
credit facility and discount in bulk purchase.
o Retailer: Commission and after sales service give to the retailer to
promote their product.

PROMOTION OF CUSTOMERS
Nokia has given to the different product to the different customer using
different techniques of promotion like product differentiation.

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TYPES OF PROMOTION FOLLOWED BY NOKIA

1. Advertising

2. Personal Selling

3. Sales Promotion

4. Publicity

5. Public Relations

6. Word of Mouth

7. Direct Mail

8. Tele-Marketing

9. E-marketing

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DATA
PRESENTATION

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DATA PRESENTATION

Competitive Analysis On the basis of the Questionnaire

Q1. Do you have Mobile phone?

Yes 85
No 15

90
80
70
60
Yes
50
No
40
30
20
10
0

Source: Interview of respondents through questionnaire

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Q2. Which is the most popular Brand?

No.of replies NOKIA
11%
SAMSUNG
2%
4% SONY
13% 42% ERICSSON
MOTOROLA
28%
LG

PANASONIC


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Q.3 Have you ever purchased Nokia handset?

Yes 70
No 30

70
60
50
Yes
40
No
30
20
10
0


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Q.4 what are the qualities you look for in a Mobile Phone?

STYLE
Percentage in favour

DESIGN

BRAND
5% 20%
20%

PRICE
20% 25%
10%
TECHNOLOGY

POPULARITY


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Q5. Among the following of latest Nokia handsets, which all have you
heard about and you want to purchase?

Nokia 1100

Nokia 2300

20% 13%
Nokia 3650
2% 15%

8% Nokia 7210
14%
5% 10% Nokia Engage
13%
Nokia
Communicator
Nokia 7650

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Q6. Rank the following models of Nokia handsets in order of your
preference for personal use.

Percentage of Choices in favour Nokia 1100

Nokia 2300
17% 6% 6%
Nokia 3650
1% Nokia 7210
17%
12% Nokia Engage
1% Nokia
12% Communicator
28% Nokia 7650

Nokia 6610 and
6610i
Nokia 6600


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Q.7 What is the reason behind your preference for the above particular
Handset?

percentage of views

11% 21% Price
Quality
Technology
32% 12%
Design
24% Style


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Q8. Which is the most popular market player according to you?

percentage of views

12% 2% Nokia
10% Samsung
47%
Panasonic
Sony Ericsson
29%
Others


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Q9. What is the reason behind your preference for the above particular
Market player?

percentage of views

Advertising
8% 25%
16% Quality Assurance
Price affordability
20% Resale value
31%
Warranty period


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Q10. For how long you are using your handset?

Percentage of Views

18% Less than 6
months
45% More than 6 but
less than 1year
More than 1 year
37%


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ANALYSIS OF DATA

Market leaders
A paradoxical situation prevails in the fledgling cellular mobile services
industry in India. On the one hand, the service providers have
collectively brushed aside negative growth of the past two-three years
and are quite gung-ho about prospects. Their combined subscriber base
has crossed the 2.5 million mark last month and despite threat of local
competition from government-controlled players like MTNL, these
service providers are a happy lot. One would automatically expect the
handset providers to be on Cloud Nine. Things could not have been
better for these global players as an Indian competition is yet to emerge
in their territory and every time a mobile service provider lands a
customer, they should benefit too. Curiously, the euphoria seems to
have bypassed them!

Be it the rugged Motorola, the sleek Nokia, the sturdy Siemens or the
highly sophisticated Ericsson, a pall of gloom seems to have enveloped
all these giants in the competitive mobile handset industry. Make no
mistake. It is the large and unruly grey market that has wiped away the
smile from their faces at a time when the cellular service industry has
already gotten on to the high growth expressway. Says Ranjitjeev
Singh, Director (Consumer Products) at Ericsson India Limited:
"Indian subsidiaries of the global cellular handset brands are finding it
difficult to improve their sales. We have no real estimate of the grey
market and are in no position to plan ahead because of this."
He is dead right. It is almost impossible to measure the share that the
grey market takes way from the cellular handset makers. Singh hazards
a safe guess to peg it anywhere in the region of 65 to 70%. Naturally
the Indian subsidiaries of Ericsson, Nokia, Motorola and a host of other
manufacturers are left scrambling for a nibble of the already shrunken
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cake. The overbearing presence of the grey market has another
interesting facet. It has unleashed a price war where, at the end of the
day, the losers and the gainers are one and the same company. Sounds
illogical, isn’t it?

Well, if one were to be aware of the skewed import policies that the
government puts in place, one wouldn’t be surprised at the above
statement. Currently, the price was is not between rival brands, but
between Ericsson and Ericsson, Nokia and Nokia, Motorola and
Motorola, Siemens and Siemens and Samsung and Samsung. While the
Indian subsidiaries of these transnational companies watch helplessly,
their parents make hay on the strength of highly competitive
pricing which is, as compared to the products available through the
Indian subsidiaries, at least 30 per cent cheaper, says Ajay Sachdev,
Head of Marketing, Motorola India Ltd.

The plain fact behind the price differential is that while Indian
subsidiaries are subjected to an accumulated import duty of 26-28 per
cent, hiking the price of handsets in that proportion, their parents are
exempt. The mobile handsets from foreign shores are smuggled into
the country by grey market operators. The impact of this grey market
operation is huge. Frustration has come to stay for the Indian managers
of these global brands. Queries about the current scenario solicit the
predictable volley of accusations against the government's import
policy. By imposing a high import duty whom is the government
protecting? The handsets are neither manufactured nor assembled in
India.

In fact, government is caught in its own web. Since high tariff level has
resulted in large scale smuggling of handsets, the government loses
almost 70 per cent of the revenue it would have collected. By a logical
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extension, a lower tariff would not only enable the Indian companies
combat the grey market, it would also increase revenues. The recent 5%
reduction in basic import duty on handsets is indicative that realization
has dawned. However, in the current market matrix this tariff cut
remains a futile exercise as the grey market continues to be cheaper by
almost 30%.

But then, skewed policies seem to characterize the Indian government.
Barely a year ago the government demonstrated its strange ways by
withdrawing duty exemption on import of wireless-in-local loop
(WLL) to "protect the domestic industry", in full awareness that there
was none to protect. The government’s frequency allocation policy too
adds to market inefficiencies. In the developed economies, service
providers are allowed to operate on two, even three frequency bands –
900 MHz, 1800 MHz and 2700 MHz - whereas in India only the 900
Hz frequency band is available to operators. As a consequence, the
handset vendors worldwide have phased out single band handsets in
favor of dual and treble band phones. The technological backwardness
has proved to be a boon for grey market operators who smuggle the
discarded handsets and dump them in India at a throwaway price,
ranging from Rs.3500 to Rs.5000.

If government is aiding grey market by creating inefficiencies in the
marketplace, the service operators are not far behind either. They
themselves restrict the proliferation and popularity of handsets by
refusing to pass on the benefits of falling operational costs to the
customer. Obsessed as they are with the ‘business class’, the service
providers have stubbornly maintained high tariff levels. Though after
switching over to revenue share, the cost of providing a mobile
connection has fallen to 1/5th of that of a landline connection, the
airtime charges for cell phone users remain 12 times higher as
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compared to fixed phone users. In the past, high license fees justified
high airtime rates. At present, the metro cellular operators need not
bring down rates as their networks can hardly accommodate more
customers. But since the high end user business class is anyway
hooked to cell phones, investment in network expansion is not a
priority for most of the operators.

The average middle classes have, as a result, kept away from cell
phones. The loser again is the handset vendor. ''If the turnover
increases, the cost gets amortized over a period of time. In that case we
can afford to lower the prices and still maintain the profit levels", says
Ranjitjeev Singh. That, in turn, will help them compete with the grey
market, albeit from a disadvantaged position.

That scenario appearing remote, the handset vendors have embarked on
other marketing strategies. The buzzwords of this strategy are
‘replacement’ and ‘segmentation’ of the handset market. "The point is
to outwit the grey market operators by offering tailor-made handsets to
each customer segment," says Ajay Sachdeva. At the user level the
market is maturing fast. Clear segments of users are emerging which
are differentiated on the basis of tariff, service or handset types.

Nokia was the first to recognize this segmentation. Subsequently, the
company launched a plethora of feature-rich handsets. The strategy
was to tap the replacement market. People were fed up with black and
grey handsets. They wanted something new. Nokia made this newness
visible by introducing many colors as well as shapes. As a result it was
able to corner almost 90 per cent of the replacement market, which
typically accounts for 15 per cent of the total subscriber base in the
country. In the process, it not only beat the grey market, it beat every
other vendor by cornering over 30 per cent of the market share.
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Though it has launched handsets for other segments as well, Nokia
continues to focus on entry-level and mid-level customers, which
according to its head of marketing and strategy, Sanjeev Sharma, are
the fastest growing segments.
Ericsson, on its part, was focused more on the technology or on what
was inside the handsets, and so lost its No. 1 position to Nokia by the
end of 1997. The company has now woken up to the new mantra.
According to Singh, Ericsson's strategy revolves around ART where A
signifies first-time users, R stands for techno-savvy users who want to
replace their handsets with feature-rich colorful ones and T denotes
style-lovers. In keeping with this strategy Ericsson has launched
A1018, R320, R190, T28 and T10. Ericsson is also banking on ever
reducing lifecycle of handsets. As Singh says, the average lifecycle of a
handset has already come down to 7-8 months. With simultaneous
global launches and competitive pricing becoming the order of the day,
the grey market will have problems with ever more finicky customers.
Similarly, as a result of a global study commissioned by Motorola, the
company has concluded that there are four broad segments - (1) the
techno-savvy, who like to be at the cutting edge of technology and so
want features like e-mail and WAP on the handset, (2) the
productivity-focused, normally onto their second phone, who like
features such as stock-market quotes on the cell phone, (3) the people
focused on style and glamour, the status-conscious who flaunt their
handsets as if they were fashion accessories and (4) the security-
conscious, who would have a cell phone to know if the kids and the
wife are okay. Motorola also plans to appoint dealers in crucial cities.
This is aimed to help the service retailers keep well stacked with
handsets, so that customers no longer complain about the scarcity of
their favorite model.
Hopefully, the handset vendors will be able to outwit the grey market.
Whether they can marginalize it for good, in spite of the government
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and the smug service-providers, still remains to be seen. Till such
time, the bells will continue to toll for the grey market.

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FINDINGS
OF THE STUDY

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FINDINGS OF STUDY

Position of Nokia Brand in consumer’s mind
The world of parity has hit the mobile phone market just as it has many
other technology product categories. The products range from the simple
to the complex, but every manufacturer offers, of course, the latest
features. Leapfrogging in sales between brands frequently occurs based
on design. But overall the market is predictable, with Nokia, Motorola,
and Ericsson fighting it out at the top and several less successful brands
like Samsung, Philips, Siemens and Panasonic trying hard to make
inroads into their top competitors' market share. So what makes the
difference between the most successful and less successful brands? It
certainly is not what product features are offered. How, then, do
consumers choose? The answer seems to be what the brand names mean
to them. Nokia Group the Finland-based manufacturer of mobile
phones, has been steadily working on its corporate brand name and the
management of consumer perceptions over the last few years. Its efforts
have paid off, because it is now the number one brand in many markets
around the world, effectively dislodging Motorola from that position.
The brand has been built using the principles described above, and has
been consistently well managed across all markets. Nokia has succeeded
in lending personality to its products, without even giving them names.
In other words, it has not created any sub-brands but has concentrated
on the corporate brand, giving individual products a generic brand
personality. Only numeric descriptors are used for the products, which
do not even appear on the product they. Such is the strength of the
corporate brand. Nokia has succeeded where other big brand names
have so far failed, chiefly by putting across the human face technology-
taking and dominating the emotional high ground. It has done so in the
following way.

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Nokia Brand Image
Nokia has detailed many personality characteristics for its brand, but
employees do not have to remember every characteristic. They do,
however, have to remember the overall impression of the list of
attributes, as you would when thinking about someone you have met. As
the focus is on customer relationships, the Nokia personality is like a
trusted friend. Building friendship and trust is at the heart of the Nokia
brand. And the human dimension created by the brand personality
carries over into the positioning strategy for the brand.

Nokia Brand Positioning
When Nokia positions its brand in the crowded mobile phone
marketplace, its message must clearly bring together the technology and
human side of its offer in a powerful way. The specific message that is
conveyed to consumers in every advertisement and market
communication (though not necessarily in these words) is "Only Nokia
Human Technology enables you to get more out of life"

In many cases, this is represented by the tag line, "We call this human
technology". This gives consumers a sense of trust and consideration by
the company, as though to say that Nokia understand what they want in
life, and how it can help. And it knows that technology is really only an
enabler so that you-the customer-can enjoy a better life. Nokia thus uses
a combination of aspirational, benefit-based, emotional features, and
competition-driven positioning strategies. It owns the "human"
dimension of mobile communications, leaving its competitors
wondering what to own (or how to position themselves), having taken
the best position for itself.

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Nokia Product Design
Nokia is a great brand because it knows that the essence of the brand
needs to be reflected in everything the company does, especially those
that impact the consumer. Product design is clearly critical to the
success of the brand, but how does Nokia manage to inject personality
into product design? The answer is that it gives a great deal of thought to
how the user of its phones will experience the brand, and how it can
make that experience reflect its brand character. The large display
screen, for example, is the "face" of the phone. Nokia designers describe
it as the "eye into the soul of the product". The shape of phones is curvy
and easy to hold. The faceplates and their different colors can be
changed to fit the personality, lifestyle, and mood of the user. The soft
key touch pads also add to the feeling of friendliness, expressing the
brand personality. Product design focuses on the consumer and his
needs, and is summed up in the slogan, "human technology."

Nokia now accounts for over half of the value of the Finland stock
market, and has taken huge market share from its competitiors.
According to one brand valuation study carried out in mid-1999, it
ranked 11th on the world's most valuable brand list, making it the
highest-ranking non-U.S. brand. As has been pointed out, it has unseated
Motorola. Nokia achieved its brilliant feat through consistent branding,
backed by first-class logistics and manufacturing, all of which revolve
around what consumers want.

Some Nokia Phones with latest features
One of the most impressive handset is the Nokia 9210i Communicator
(Price: 37,599), a phone cum personal digital assistant (PDA). At 244
grams it is almost obese compared to other PDAs but it has an awesome
range of features. The company bills it as a portable office which
includes phone, fax, e-mail, calendar, contacts, Word Processor,

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Spreadsheet, Presentation viewer, WAP, WWW. You can edit and send
Word Processor and spreadsheet documents, view MS PowerPoint
slides in full colour.

It has a high quality 4,096 color screen. Photos can be transferred from a
compatible digital camera, viewed and then forwarded by fax or e-mail.
You can also view streaming videos on the Internet and flash
animations.

There is however a snag, Worksheets can be created on it but the
presentation tools can only view previously loaded PowerPoint slides.
As if to make up for these, there is the streaming software from Real
Networks (audio and video player) to view internet media content. The
9210i Communicator effectively serves as an office in your pocket.
Another latest in the Indian market is the Nokia 6610 (Price: Rs
16,399). One of its main features is the multimedia messaging service
(MMS) which allows users to incorporate sound, images, and other rich
content into their messages. The model also has an integrated FM radio.
Its triband GSM access means ability to connect anywhere in the
world, anytime. Plus there’s pre-installed Java applications on the
Nokia 6610 which include a Converter (for currencies, temperature,
weight and other measures) and a Portfolio Manager (to track stocks
and other securities). The calendar notes can take up to 250 entries and
the Phonebook Memory (phone + SIM) up to 300 entries.

Another model selling well in the Indian market is the Nokia 7250
(Price: Rs 26,299). It has an integrated digital camera allowing you to
capture, store and share pictures. Plus there’s MMS, triband GSM, an
integrated stereo FM radio, downloadable personal applications via
Java technology, WAP 1.2.1 Browser. Memorywise, the phone book
supports up to 300 entries, SMS up to 150 text messages and calendar
notes up to 250 entries. Thanks to an ultra thin battery, the Nokia 6100
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(Price: Rs 20,099) is one of the slimmest full featured phones on
display in Indian shops. Features include MMS, downloadable Java
games, WAP 1.2.1 browser, delightful polyphonic ring tones, triband
GSM support. The 6100 even has an electronic wallet, though it will be
some time before people start using this feature in India. The 6100
sports a 4,096-colour, 128x128 pixels resolution screen and its large
display is handy, whether you are typing SMS messages or viewing an
MMS message.

The Nokia 3650 (Price: Rs 23,399) is equipped with an integrated
video player and a RealOne Player to download video clips. Also, its
integrated digital camera can capture images at 640 x 480 resolution
and the phone display can be used as a viewfinder. It has high-end
features like Bluetooth9 and Infrared capabilities which allows wireless
connectivity to your PC and laptop. You can download new Java
games and applications. Data transfer can be as fast as 43.2 kilobits per
second.

The Nokia 8910 (Price: Rs 35,499) is heavy on looks with a titanium
casing and chrome finish keys. Activating the side triggers sets the
phone in motion, rising from the handgrip cover to put the many phone
functions at your fingertips. Features include Voice Commands,
Bluetooth wireless connectivity to other compatible devices, mobile
Internet connectivity, Organiser and To-Do lists, on top of your pre-
requisite phone functions.

Nokia 7650 (Price: Rs 26,999) is a phone and colour camera rolled into
one with MMS capabilities. It has 3.6 MB of memory to store files and
applications. The 7650 comes with only a WAP (Wireless Application
Protocol) browser, limiting you to text-based content. It has infrared
and Bluetooth capabilities for connecting to PDAs and notebook
computers.
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RECOMMENDATIONS

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RECOMMENDATIONS

1. Company should invest money on advertising through media,
Internet and personal selling to promote the products, to increase
awareness in the market.
2. Holdings on outlets and publication in the prominent magazines help
in increasing its awareness among the consumer to evoke the
demand of their brand.
3. Policy of replacing problem arising sets should be done timely and
the retailer should be accommodated immediately.
4. More attention and concern should be given to the highest selling
outlets of NOKIA and the chain should reach to the consumer as
well.
5. Allurement and discount schemes should be given to the highest
selling outlets of NOKIA and the chain should reach to the consumer
as well.
6. More glow sign and broad should be installed.
7. Contests sweep stakes and games should be arranged on regular
basis for the consumer involving incentives and prizes.
8. The sales executive should go to each outlet of their route once in a
week and try to cover outlet that are in a distributor network.
9. The net and free sample scheme should be the same for net every
retailers by the company.
10. Some credit facilities should be given to good sales providing
outlets.
11. The company should try to influence the wholesalers of NOKIA in
the city offering more profitable scheme and confidence building
measures. In metropolitan areas.
12. Company should make proper schedule or particular days for hearing
the complaints of their customer and retailers.
13. No of outlets and service centers should be open.
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CONCLUSION

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CONCLUSION

As per the research work done by us, we conclude that Cell phone industry is
growing with a very great pace and has a very remarkable prospect in future.
Nokia is leading player in the cellular industry and is very much ahead from
its competitors like LG, Samsung, Panasonic, and Sony who are still trying to
compete with it. In any markets there are market leaders and followers, and in
most cases market leaders lose market share to followers, for many reasons
such as pricing, availability, "user-friendliness", relevance to the target
audience etc. It's inevitable. Can Nokia be beaten? On one hand, it is up to
Nokia's marketing department, and its agencies. So far the brand has
established itself well in many markets, and consumers have identified with
what the brand has to offer. But that does not mean they cannot lose the brand
battle. To remain at the front of the pack, one must constantly be innovative,
the minute you lose that edge competitors will definitely overtake. On the
other hand it also depends on the competitors. How far are they willing to
stretch? Are they willing to take Nokia head-on? How? What will the outcome
be? For the same reason that Nokia has managed to gain market share and be
ranked number 6 in the Global Brand Scoreboard, certainly someone else can
do the same?

Nokia is a very creative designer. How could it be beat if the creator is so
creative -- unless the competitors could find Nokia threats and weaknesses In
market, it can be seen that most of the young generation, even the medium-age
people, like to use Nokia as it is user-friendly, with a lot of features that the
young generation likes. But in the future we could not think of Nokia's
performance as IT is unpredictable. If we could predict 100% of what will
happen, then there will be no challenges in the future. Can Nokia be beat? This
is a good question that could not be answered precisely. It only depends on
what humans think of and what they expect. In short it looks very difficult for
every competitor to get the same position which Nokia is currently prevailing
with in the market so it is concluded that it will be hard to defeat Nokia at
present and in near future in terms of market share.
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ANNEXURE

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ANNEXURE

Questionnaire

Name:…………………………………………………………………
Age:……………………………………………………………………
Address:………………………………………………………………
Contact No.…………………………………………………..……….

1. Do you have Mobile Phone?
 Yes
 No

2. Which all brands of Mobile Phones have you heard about?
 Nokia
 Samsung
 Sony Ericsson
 Panasonic
 LG
 Others……………………………………………………………

3. Have you ever purchased Nokia Handset?
 Yes
 No

4. Among the following of latest Nokia handsets, which all have you
heard about?
 2300
 3650
 7210

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Nokia

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