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Brand Dossier




     Group Members:

     Richa Daruka
     Asish Ghosh
     Shubhankar Sengupta
     Zeeshan Mohammad
AGENDA




2|Page
The Evolution of NOKIA
1865: Fedrick Idestam a mining engineer by trade built a wood pulp mill on the
banks of the Tammerkoski rapids, in southern Finland. A few years later, he built a
second mill by the Nokianvirta River – the place that gave Nokia its name. Idestam is
considered to be the father of Finland‟s paper industry.
      Trivia: The Nokianvirta River is named after a dark, furry animal that was
      locally known as the Nokia – a type of marten.

1871: Idestam named his company Nokia Ab.

1902: Nokia Ab added electricity generation to its business activities in 1902.

1967: Three companies, Nokia Ab, Finnish Cable Works& Finnish Rubber Works,
which had been jointly owned since 1922, officially merged in 1967.

1979: Radio telephone company Mobira Oy begins life as a joint venture between
Nokia and leading Finnish television maker Salora.

1981: The launch of Nordiac Mobile Telephony (NMT) service. The service was the
world‟s first international cellular network. It was also the first company to introduce
International Roaming.

1982: With the introduction of NMT the mobile industry began to expand rapidly. In
this year Nokia made its first digital telephone switch, the Nokia DX200. Nokia soon
introduced the first car phones (The Mobira 450 car phone).

1984: Nokia introduced its first portable phone, the
Mobira Talkman portable phone. By this time the
company was also providing base stations and
switches for NMT network.

1987: The birth of a classic. Then the original
mobile phones were heavy, bulky and usually
permanently installed in cars. Nokia launches the
Mobira Cityman, the first handheld NMT phone.
The Mobira Cityman 900 weighed 800 grams and
had a price tag of 24,000 Finnish Marks
(approximately EUR 4,560).

1991: GSM- A new mobile standard opens up. On
July 1, 1991, Finnish Prime Minister Harri Holkeri
made the world‟s first GSM call, using Nokia
equipment.

1992: Nokia launched its first digital handheld GSM phone, the Nokia 1011. In this
year Jorma ollila became president & CEO of Nokia and made a crucial decision: to
focus on telecommunications and move out of its other businesses.



3|Page
1998: Nokia becomes the worldwide leader in Mobile phones. The world‟s biggest
mobile phone manufacturer.

1999: Nokia launches the world‟s first WAP handset, the Nokia 7110.

2002: First 3G phone. Nokia launches its first 3G phone, the Nokia 6650

2003: Mobile gaming goes multiplayer with the N-Gage

2005: The Nokia N series is born, the next generation of multimedia devices. And in
this year Nokia sells its billionth phone, a Nokia 1100 in Nigeria.

2010: The Nokia brand, valued at $29.5 billion, is listed as the eight most valuable
global brands in the BusinessWeek Best Global Brands list of 2010.
In July 2010, Nokia reported a drop in profits by 40%. In global Smartphone rivalry
Nokia held the 3rd place trailing behind Samsung & Apple.

2011: On 11 February 2011, Nokia announced a partnership with Microsoft. Now
most future Nokia smart phones will be powered by the windows 7 (phone operating
system). N73 - The best Mobile Handset in the world.




4|Page
Vision of Nokia




“Our promise is to help people feel close to what is important to them. “ - Nokia




5|Page
Initial positioning and subsequent repositioning of
Nokia

Positioning
Positioning is the act of designing the company‟s offerings and image to occupy a
distinctive place in the minds of the target market. 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 the customer can enjoy a
better life. Nokia thus uses a combination of aspiration, 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.
 Nokia has succeeded in lending personality to its products, without even giving them
specific 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. Such is the strength of the corporate brand.

Repositioning
Nokia is best known in the first instance for producing cheap S40 handsets and
secondly for S60 handsets with great cameras but otherwise clunky operating
system. The repositioning comes as Nokia battles to retain market share in the face
of competition from rivals such as Apple, RIM, and HTC.
 The big growth opportunity for Nokia is to go beyond bringing affordable voice to
bringing affordable web and applications to the next billion consumers. It will do this
by innovating within current device, software and services assets as well as investing
in new capabilities. The goal is delivering the best low-cost devices that deliver the
richest experiences and applications that the consumers will love. Having the
potential to reach that many customers is enticing to operators and developers.

It explored a number of options and believes the planned long term strategic
partnership with Microsoft would enable us to innovate and differentiate, and build a
new global ecosystem that creates opportunities beyond anything that currently
exists today, offering a serious alternative to the existing choices for operators,
developers and consumers.




6|Page
Nokia is due to replace their Symbian operating system with Windows 7 Mobile.
We believe that this could be a good move by the company as an exit from the U.S.
could help the company save operating expenses for the business that was limping
along. According to Comscore, the U.S. Smartphone subscriber share for Nokia
Symbian declined from 2.3% in March this year to 2% in June this year.

Hence supporting the operations in the U.S. for a declining business that it plans to
replace with its Microsoft OS doesn‟t make much sense. Another thing to note is that
the main motive behind its decision to adopt Microsoft OS was to cut its operating
expenses by 1 billion Euros by 2013.

Hence this move could just be the beginning of Nokia‟s bigger plans to achieve its
cost savings target.

Nokia is laying the ground work for the release of their first Windows Phone 7
handset by launching a £80 million global campaign to reposition their brand.
While the £80 million Nokia will be investing in changing this perception may appear
small, it is likely it will be accompanied by co-marketing dollars from Microsoft, as it
has been doing with other partners and carriers.
The campaign will run over 6 months and is being developed by several agencies
from its worldwide repositioning.




7|Page
Advertising Strategy of Nokia
Most forms of promotion are based around the idea of having an image to go with
the product. Brand imaging plays a dominant part in an organizations marketing
strategy. This is because people make a purchase they aren't just buying a product,
they are buying a lifestyle or an image. If branding can make people believe that the
branded product is better than an un-branded product, more people will buy it and
they will also be willing to pay higher prices for the "extra quality" and lifestyle they
are receiving with the product.
Because a lot of rival products are more or less the same (Pepsi and Coke) the main
way of making your product stand out is through aggressive branding, this is usually
achieved by companies using
slogans, logos and distinctive packaging.
Nokia tend to promote the new technologies and mobile devices they create using
one big advertising campaign that focuses on a singular technology instead of each
individual handset so they can appeal to a lot of different markets with one
campaign.
 Nokia 1600 and 1110i Advertisement was made for
    targeting rural India, with a tag line - “Apke jeevan
    ke dor”.
 Nokia 1100 advertisement was made to target at
    the entry-level phone user, with a tag line - “Made
    for India”.
 Nokia 3110 Classic, Nokia 5700 advertisements
    were made to target young generation with camera
    zoom & music system features with tag lines “Ab jo
    hoga zoom karke dekha jayega” & “Do the Music”
    respectively.
 Nokia 7610 Supernova Advertisement aimed at city based young crowd with a
    tag – “It's not just a phone, it's who we are”
 Nokia -6300, 5310, and 2630 Advertisement gives you a feel of Indian culture
    and that Nokia is very much within us with a tag line - “Har khushi shami”
Nokia's current marketing strategy has helped them become the biggest selling
brand in the communications market to date, but now sales are starting to decrease
with the saturation of the current market segment so Nokia will need to do one of the
following; Re-launch their products with an aggressive promotional scheme; Target a
different segment of the market that has not been entered so Nokia can instantly
gain 100% of the market share (although this is risky as the market
might not take to their products and the demand might be low, so sales will also be
low and prices will have to be high and this will further stop people from purchasing
Nokia's products).




8|Page
During the first season of IPL (Indian Premier League), Kolkata Knight Riders tied-up
with Nokia in its marketing campaign. Nokia had the second highest recall (after
DLF) despite a poor performance of KKR. The sound strategy of KKR made it the
best financially performing team in the first season of IPL.




9|Page
Sales Promotion of Nokia
Sales Promotion includes several communication activities that attempt to provide
added value or incentives to consumers, wholesalers, retailers or sales-force to
stimulate the initial sales.
Companies use sales promotion tools – coupons, contests, premiums, and the like –
to draw a stronger and quicker buyer response, including short-run effects such as
highlighting product offers and boosting sagging sales. Sales promotion tools offer
three distinctive benefits: Communication, Incentives and Invitation.
                                                                       Historically, the
                                                                       thinking of Nokia
                                                                       was: a good
                                                                       product will sell
                                                                       itself. However
                                                                       there are no bad
                                                                       products
                                                                       anymore in
                                                                       today‟s highly
                                                                       competitive
                                                                       markets.
                                                                       Nokia provides
                                                                       sales promotion
                                                                       by
                                                                       Communicating
                                                                       to the masses.
Its tag line itself says, “Connecting people”, which gives an indication that it‟s a
generic product for people and it helps in providing mobile phones to all the different
classes of demography.
Target Market for the Nokia Mobile Phone is between 20-40 years, mainly teenagers
and Business Class People.
India is among the world's fastest-growing markets for mobile phones. The country
has some 170 million subscribers and adds 6 million to 7 million more each month.
(China, in contrast, adds 5 million subscribers, and the U.S. 2 million subscribers a
month.) Recognizing this potential, several global telecom giants jumped into the fray
when the Indian government first opened up the country's telecom market to private
enterprise in 1994. Among them, one company -- Finland-based Nokia -- forged
ahead of rivals and today commands a lead position in market share for mobile
phones (also called "handsets"). In specific segments, such as GSM telephony,
Nokia's market share in India is as high as 70%.
Nokia have managed to be quite environmentally friendly and have not done
anything that the consuming public have taken huge offence to, they have been very
careful about this and this is one of the reasons they are such a popular brand of
mobile phones.
Nokia is one company that uses “push” selling strategy. Nokia promote their
products via retailers such as Car phone Warehouse. Personal selling and trade
promotions are often the most effective promotional tools for companies such as
Nokia - for example offering subsidies on the handsets to encourage retailers to sell
higher volumes.



10 | P a g e
A "push" strategy tries to sell directly to the consumer, bypassing other distribution
channels (e.g. selling insurance or holidays directly). With this type of strategy,
consumer promotions and advertising are the most likely promotional tools.
Nokia is the market leader in Mobile Phones in India. It holds a market share
of around 70%. But Nokia was not the only company to enter India, when this mobile
revolution was about to happen. I remember that my first cell phone was a Siemens
C100; a few of my friends had a Samsung with them, what happened to these
companies. What are they not in picture anymore?
The few reasons for the same are:
       The Power of Focus: Focusing on one and the only business and i.e. mobile
       phones or handsets and infrastructure related to it.
       The Distribution Edge: When it comes to distribution, Nokia's lead is clear.
       Today, India has some 95,000 outlets that sell mobile phones. "In 50,000 of
       them -- and that's a conservative estimate -- only one brand is available,
       Nokia.
       Investment in Manufacturing: The other big investment area that has set
       Nokia apart from other telecom firms is manufacturing facilities and R&D.
       Nokia has several R&D centres and labs in India.
       Building the Brand: Here Nokia faced a problem because Nokia range
       available in India extends from Rs 1,499 ($37) at the lower end to Rs 45,000
       ($1,125) at the high end, but now with years of being in operation they have
       created a brand for themselves. This they have done by the concept of One
       Model replacing the other as per need and desire.
Products for India: The Nokia story in India has not been about grafting a model that
has worked abroad. In fact some of the models - are unique to India. For example a
mobile set having a flashlight, or torch.




11 | P a g e
Segmentation strategy followed by the Nokia
Nokia India had a 74% market share in the GSM mobile handset market at the end
of the year 2006. And the company has found a new way of connecting with its
consumers. The company has embarked upon a brand new retail strategy that is
based on the classification of its consumers into four major groups that segment
consumers in terms of product usage, income level and lifestyle.
The classification is based on an extensive survey - the Nokia Segmentation Study -
involving 42,000 consumers from 16 countries. The survey studied the impact that
lifestyle choices and attitudes have on the mobile devices purchased by consumers
and how they use them. The company is following separate marketing strategies for
the four different segments that emerged from this survey. The advertising
campaigns for the segments are also different.
Nokia‟s entire product portfolio has Nokia‟s entire product portfolio has now been re-
aligned towards these four groups to address the specific needs of each.
The first of these segments is „Live‟. This segment comprises first time users whose
basic need is to stay in touch, with voice as the main driver. This segment would be
served basic handsets which would be low on features and price. These will be
functional phones and the target group for these phones range from SEC C (low
socio-economic class) to SEC A1+ (very high socioeconomic class) markets.
The second segment „Connect‟ comprises more evolved users who look for
more functionality, features and connectivity. Accordingly, phones in this
segment would have GPRS, camera and music capabilities.
The next two segments, „Achieve‟ and „Explore‟, consist of high-end users who
would be offered Nokia‟s top-end handsets. For example, „Achieve‟ segment
comprises company executives who need to have business functionalities in their
phones. Nokia‟s E-series (Enterprise series) is aimed at this segment with handsets
having QWERTY keyboards and full Internet capabilities.
„Explore‟ would be the most prominent segment for the company in the coming
years. This segment comprises high lifestyle users. This segment would see the
most vibrant growth in the coming years. The phones aimed at this segment will
focus on five different functionalities: applications, imaging, mobile TV.




12 | P a g e
Analysis of product and generic competition to the
brand NOKIA
Nokia engages in the following levels of marketing:

Segment Marketing
Nokia offers designs, features and functionality that cater to the demands of the
market segment. E.g. Nokia Ngage (gamers).

Niche Marketing
Nokia also has products for customer groups seeking a distinctive mix of benefits
and are ready to pay a premium price for it. E.g. Nokia N96, E71.

Psychographic Segmentation
(Lifestyle)

Live Customers - Looking for design and style, followers of trends and fashion and
have active lifestyle - Nokia 8800Sapphire

Connect Customers - Combination of ease of use and elegant looks.
Want seamlessly connected and in best possible way - Nokia 6110 Navigator

Achieve Customers - Smart business people wanting smartest tools for balancing
work and life. E90 models -use of e-mail, calendar, Contacts, web browsing.

Explore Customers - Want cutting edge technology for their stylish Life-styles -
Nokia N-95 with 8 GB chip with multimedia devices, that snap, record, browses and
share contents all via internet.

There exists another segment of consumers who rank price and functionality of
the phone above the aesthetics and enhanced features.
For these segments we have products like Ngage (gamers), Xpress
music (music lovers), etc and 1100, 2100, 2300, etc.

Demographic Segmentation (Income)

Nokia has managed to stay ahead of its competitors by targeting consumers at the
Bottom of Pyramid (BOP) along with other segments.

High Income Group - Caters to the upper segment of the society with high
purchasing power. E.g. Nokia 8800Sapphire, N96, E71 etc

Medium Income Group - Caters to that segment which gives more importance to
value for money e.g. N72, N73, Nokia 6300, and Nokia 5300 (Xpress Music)

Low Income Group - Caters to the consumers in BOP segment Nokia 1100, Nokia
2100, Nokia 3310, Nokia 3315, Nokia 2300




13 | P a g e
Since we are dealing with a global industry, it is worth looking at popularity by region.
Perhaps it will shed some light on the industry. The following charts illustrate the
popularity of Nokia, Blackberry, and iPhone.




Consistent with my understanding of Nokia, it is way more popular in developing
countries (Eastern Europe, Middle East, India, and Pacific Rim) than developed
countries. RIM's Blackberry appears to be concentrated in a few countries, while the
iPhone has high popularity throughout the world, with a tilt towards the developed
world.




14 | P a g e
It appears that Nokia's popularity has been declining in the last few years but it isn't
quite that bad. Apple's iPhone has been skyrocketing on the popularity scale but I
don't believe it's as big of a threat to Nokia as it seems.

Nokia which is the undisputed king of the Indian market is facing not only increased
competition in the high end space from Smartphone by Apple, RIM, Google and
others but also in the low priced end. A number of Indian companies like Olive,
Micromax etc have made inroads with cheaper and feature rich handsets. Nokia has
a much smaller market share in the Chinese market because of competition from
super cheap local Chinese competitors.

Nokia is a company getting squeezed both at the top and bottom segments from
different breed of competitors. In the mindshare, brand appeal and pricing power to
Google and Apple while on the lower segment it is losing out to local no name cheap
competitors. Nokia‟s Indian Fortress was crumbling in the face Samsung and Local
Players Competition last year and has now taken alarming proportions with a
whopping 18% market share loss in the last 6 months. The competition is only
intensifying with Local Indian companies introducing low cost Smartphone powered
by Google‟s Free and very popular Android O/S. Nokia has been trying to turn
around its fortunes with the help ofN8,Meego and a new CEO. Nokia‟s recent quarter
has shown improvement with cost cutting efforts leading to improved profits.
However the mid and long term future remains bleak required a drastic change in
strategy.




15 | P a g e
Strategies adopted over time by the brand to tackle
competition or prime market expansion
With all of these competitors in the market Nokia must keep ahead of the game by
running successful marketing strategies, to do this Nokia must focus on the
principles of marketing. At the moment Nokia are the world's best selling phone
company.
Nokia was the clear market leader in the mobile phone industry in terms of sales and
profitability. It was ahead of giant companies like Motorola, Ericsson, APPLE,
Siemens, Samsung, and other worthy competitors. Since the early 1990s, Nokia's
Strategic Intent was to build distinctive competency in product innovation, rapid
                                response, and global brand management. Its strategic
                                intent required rapid growth in the core businesses of
                                mobile phones and telecommunications networks. This
                                goal was achieved by Nokia's development of new
                                products and expansion into new markets. In order to
                                become the global leader as it is today, the company
                                had overcome numerous challenges and obstacles over
                                the last decade.
                                Nokia focused on building and sustaining its current
                                competency in the early 1990s. NMP created valuable
alliances across the industry and made key acquisitions to increase economies of
scale, market share, and access to R&D resources. The management believed in
the growing acceptance of digital technology as the uniform communication standard
in the future. Nokia formed partnerships with AT&T, Alcatel, and AEG to further the
development of a digital telephone and network. The GSM digital standard was a
major success for NPM on the global scale. Nokia also realized the need to create
rapid response to market changes. The production and distribution processes were
standardized and simplified in order to satisfy the changing market's demand. At the
same time, Nokia also focused in building brand management. The management
realized that mobile phones would be a commodity in the near future. The company
increased spending in advertising, reallocating resources, and building brand image
across the globe. This strategy was successful and placed Nokia among the world's
most admired brands.
During the 1990s, customer and consumer expectations for mobile phone
technology were notably different. The market's largest customers, the phone
services providers, expected discounted custom-made phones and the rollout of 3G
for their subscribers. Meanwhile, the everyday consumers wanted much more than
just voice function in mobile phones. Multiple functions such as entertainment,
personal expression, and extended communication were required. Moreover, many
consumers expected their mobile phones to have the ability to access the Internet
and connect with other electronic devices, like digital TV.
In order to sustain influence as the dominant player in the mobile phone industry for
the next 5 years, Nokia's strategic intent should be "focused, global, and value-
added" (Oliff,5). Traditionally, the main products of Nokia were mobile phones and
networks. The company had extensive expertise in the production process and
distribution channels, and should be able to capitalize on these assets in the near
future's competitive environment. The ability to overcome the technical difficulties of
the 3G phone with GSM standard may provide a much needed boost for Nokia.


16 | P a g e
NMP's products had a worldwide recognition, especially among young consumers.
However, there are many potential markets, especially in Asia-pacific and Latin
America, that could help increase Nokia's sales volume. This would require the
company to reallocate resources and produce entry-level products. Finally, Nokia
should be able to consistently exceed customer and consumer expectations by
producing value-added products and services, such as user-friendly phones and
easy-to-use phone services.




17 | P a g e
Distribution Channel of Nokia in India

Distribution Channel is a way of selling a company's product either directly or via
distributors; "possible distribution channels are wholesalers or small retailers or retail
chains or direct mailers or own stores"

Chennai was selected as the location for the Nokia Telecom Industry Park due to the
availability of skilled labour, support from the state government and the presence of
good logistics connections. The mission of the Nokia Telecom Industry Park is to
create a network of co-located and co-dependent partners that operate at world-
class standards and manufacture high quality products.


Franchisees:
Nokia franchised its brand exclusivity in the name of Nokia
Priority Dealers. All the outlets which are under the
franchiser should follow certain footfalls of the franchiser‟s
company. This would include converting a normal outlet
into Nokia Priority Dealer outlet. But the franchiser will
help in visual merchandising and loan for deposits which
are refundable.

Rural Market Distribution:
Nokia did not concentrate more on rural markets as the
products are widely used in urban cities but due to
competition in the market, Nokia planned to leverage the distribution network in order
to expand to rural sectors and to serve untapped market. The company planned to
educate the benefits of its mobile toward the villagers.

Other Distributions in India:
Apart from its Nokia concept stores, the company distributes its product to many
multi-brand mobile stores which are well known in India for their service and price
discounts. They are:

Hotspot: it is ranked as the number one outlet for its wide collection of mobile of all
range and also for good after sales service. Apart from handsets, it also sells mobile
accessories, mobile network connections, recharge vouchers and gaming device.

Univercell: it is considered as the highest selling outlets among the other mobile
retailers in India. This is because of their service flexibilities like online shopping,
door delivery, and after sales service.

The mobile store: it is a recently emerged mobile outlet which is also well known for
the wide range of mobiles and its enhancement product along with the well known
repair centre insides it‟s each outlet. The store had won awards as „Most Wanted
Mobile Retailer.




18 | P a g e
Nokia owns the distribution centres in west and south of India but, in northern and
eastern part of the country Nokia distributes its products through HCL. HCL has
served customers as a partner of Nokia for more than 10 years. HCL consists a large
part of Nokia services, it has its centres in more than180 cities, and these care
centres are owned and are operated efficiently by HCL, the operations of HCL is
limited only to north and east India only.

The mother depot of Nokia is in North India in Gurgaon, all the high end sets which
are imported and all the sets which are manufactured in Chennai are transferred
here first.


Nokia has an innovative supply chain approach to support the business in India.
India has a very high mobile phone usage, due to having some of the cheapest
tariffs in the world. Whilst teledensity in the cities is 30-35%, it drops to 2-3% in the
country. This was Nokia‟s target market. Nokia makes handsets specifically
designed for the Indian market with low functionality cheaper handsets for the rural
areas.

Given the opportunity in the rural markets and the fact that in India mobile phones
are sold through over 100,000 retail outlets a specific supply chain strategy was
required. This includes „marketing vans‟ supporting sales in the rural areas and a
partnership with HCL as distribution partner, who already had a well established
network.




19 | P a g e
Summary regarding the future direction of the
brand
                                                 The cell phone has become the
                                                 only basic telephone link of a
                                                 household or an enterprise in India
                                                 rather than a land line phone. It is
                                                 turning out to be more economical
                                                 and efficient than fix line
                                                 telephones, so there is a great
                                                 scope for further expansion with
                                                 reduction in cost. According to
                                                 industry analyst the mobile phone
                                                 industry in India will be driven by
                                                 voice, multimedia and mobile
                                                 services for organizations.




Nokia outlined its new platform strategy for smart
phones, with windows phones as its primary smart
phone platform in the proposed partnership with
Microsoft. Microsoft tools would be used for Nokia
Windows‟s phone application development.
According to research if things are not going well
with Microsoft then they might turn to android. Nokia
is developing highly relevant solutions that will
connect the consumer to wherever they want to be,
whenever they want to be there. This innovative
solution will provide the institution and power to
share their feelings and experiences as they happen.




20 | P a g e
List of Hypothesis:

    1. Nokia is losing its market share due to its Operating system.
    2. Nokia‟s phones are more durable compared to its competitors.
    3. Nokia‟s phones have a longer battery backup compared to its competitors



Justification for the first Hypothesis:

Gone are the days when Mobile phone was just used for voice call, SMS and taking pictures.
The requirements from a mobile phone has increased, people now want phones which are
multitasking, support various applications, games and perform faster.

Nokia operating with Symbian operating system has been popular with users, but lately that
popularity has been declining. Among the other devices in the market, phones operating on
Android are probably the most prominent competitor for Nokia‟s Symbian operating system.
Android phones contain more applications and also support more 3rd party software
compared to a Nokia phone. Android‟s bunch of features includes Application Framework
that allows users to customize the components, optimize the graphics interface. Its
multimedia performance is also very high. Further core applications like SMS program,
maps, calendar, email client, contacts, Java programming, etc. are highly optimized in
Android. The Symbian developers have included more applications in the Symbian OS over
the time but it failed to succeed in the market. It is also believed that the Symbian Software
has a higher response time and can‟t handle multiple applications at a single time.



Justification for the second Hypothesis:

As per our observation of Nokia handsets we found that the brand has occupied a distinctive
place in peoples‟ mind due to its durability and battery backup. Businessmen and working
professionals who have a high usage of mobile phones for voice calling purpose give
sturdiness and battery backup as their first priority while purchasing phones. So we wanted
to check whether Nokia is able to position its phones as per their demand. More over as per
the positioning part of our literature review we inferred that Nokia gives a sense of trust and
consideration to its customers and is somehow related to the durability and battery backup of
Nokia‟s Phones.



Justification for the third Hypothesis:

As per our observation Nokia as a brand is known for its long battery backup and battery life
is one of the most important factors to consider when buying a cell phone. No matter how
flashy a handset may be and how many cool features it offers, it won't be satisfactory for
customers if the battery runs out too quickly. This is what we intend to prove through our
hypothesis.




21 | P a g e
The list of information requirements to be collated from the research

        Investigation about the durability and battery backup of the product – the importance
        attached by the users and the perception of performance of various brands on this
        parameter.
        Importance of applications in present generation (networking. Gaming, business)
        Alternatives available to consumer
        Analyzing the consumer buying behaviour to understand what instigate to buy the
        product



INSTRUMENT OF DATA COLLECTION:

The information will be collected through the designed questionnaires, in the following two
ways:

     INTERVIEW METHOD

Definition: Interview is verbal questioning. Interview is defined as “a two-person
conversation, initiated by the interviewer for the specific purpose of obtaining research-
relevant information and focused by him on the content specified by the research objectives
of description and explanation”.

We have used standardized type of interview, in standardized interviews; answer to each
question is standardized as it is determined by a set of response categories given for this
purpose. The respondents are expected to choose one of the given options as the answer.
We chose this particular instrument because it will give us a higher response rate and are
useful for untangling complex topics. The interview question basically allows us to obtain all
the initial data as well as professional details that we would want to know about every
applicant.

     MAIL QUESTIONNAIRES (Design attached)

A questionnaire is a research instrument consisting of a series of questions and other
prompts for the purpose of gathering information from respondents

List of a research or survey questions asked to respondents, and designed
to extract specific information. It will serve four basic purposes to us
(1) collect the appropriate data.
(2) Make data comparable and amenable to analysis.
(3) Minimize bias in formulating and asking question.
(4) To make questions engaging and varied.




22 | P a g e
Sampling Plan and Sample Size (with justification)

SAMPLING PLAN: Sampling is the act, process, or technique of selecting a suitable
sample, or a representative part of a population for the purpose of determining parameters
or characteristics of the whole population. Sampling is one of the components of a research
design. It is the only feasible way to collect marketing research data in our project.

The target population are:

     People between 13 years to 60 years of age.

     People from different income group.

This sample includes users of Nokia and as well as non-users of Nokia.

For this purpose we have used convenience sampling, a statistical method of drawing
representative data by selecting data by selecting people because of the ease of their
volunteering or selecting units because of their availability or easy access. The advantages
of this type of sampling are the availability and the quickness with which data can be
gathered.

The number of respondents:

100-120


METHODS OF DATA ANALYSIS

The following are the data analysis tools to be used:

Graphical Representation

Pie charts: Pie charts show the size of items in one data series, proportional to the sum of
the items. The data points in a pie chart are displayed as a percentage of the whole pie. This
tool can be used to determine the number of users of different mobile brands as per our
survey. We would be using this to represent question numbers 1, 2, 3, 4 and 5.

Rank co relation (Kendall‟s co efficient of concordance): A coefficient of agreement
(concordance) between different sets of rank orderings of the same set of things. This we
would be using to represent question number 6.

Bar Graph: A bar graph is chart that uses the lengths of parallel bars to represent the
relationship between various data or values. A diagram that has rectangles of various
lengths that corresponds to numbers is an example of bar graph. We would be representing
question number7, 8, 10 and 11.



Likert Scale: Ordinal scale of responses to a question or statement, ordered in hierarchical
sequence from strongly negative to strongly positive. We would be using this to represent
question number 9.



23 | P a g e
Apart from the above mentioned tools we will also use „Z-test‟ to get the desired result of our
survey i.e. to see whether the findings from our questionnaire is applicable to the entire
population (mobile users) or not.




24 | P a g e
Net Take Away

The three hypotheses that we had taken in our second phase are as follows
   1. Nokia is losing its market share due to its Operating system.
   2. Nokia‟s phones are more durable compared to its competitors.
   3. Nokia‟s phones have a longer battery backup compared to its competitors.

The question number 4, 5, 6 and 7 in our questionnaire is based on the first hypothesis
relating to the operating system. As per our findings from question number 4, we see that
88% of our total respondents (105) are aware of the operating system in their mobile phone.
From question number 5 we infer that operating system in a most critical parameter for 17%
of the total respondents and it an important but not a critical parameter for 72% of the total
respondents. Question number 6 shows that Android (Operating System) is the most
preferred operating system for majority of respondents who are aware about the operating
system. From question number 7 we observe that all the people who are aware about the
operating system are not exactly aware about which operating system is being used by
different brands of mobile phones.

These inferences when taken all together proves that operating system is a reason for Nokia
losing its market share, since people are concerned about the operating system

The question number 8 and 10 of our questionnaire are based on the second hypothesis
relating to durability of Nokia phones. As per our findings from question number 8 we see
that the weighted average of the respondents who consider durability as a parameter while
purchasing a mobile phone is high. From question number 11 we infer that Nokia has been
rated high on the parameter of durability as compared to other competing brands of mobile
phones.
So, taking into account these two questions we can clearly infer that Nokia phones are
considered more durable as compared to its competitor.

The question number 9 and 11 of the questionnaire are based on the third hypothesis
relating to the battery backup of Nokia phones. From our findings we see that out of 54
Nokia users 15 strongly agree and 17 agree with the battery backup of their mobile phone,
which constitute of 59.25% of the total users who uses Nokia. As per question number 11 we
find that 60 respondents have given highest rank to Nokia and 19 respondents have given
second highest rank to Nokia, which shows that 75.2% of the total respondents are satisfied
with the battery backup that Nokia phone provides compared to its competing brands.
So the third hypothesis which says that Nokia has longer battery backup is being proved by
our survey.

Hence we conclude that the clunky operating system of Nokia phones is a major concern for
the company, as it is losing market share due to it and we also see that Nokia phones are
considered to be durable with long battery backup.




25 | P a g e

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Brand dossier - Nokia

  • 1. Brand Dossier Group Members: Richa Daruka Asish Ghosh Shubhankar Sengupta Zeeshan Mohammad
  • 3. The Evolution of NOKIA 1865: Fedrick Idestam a mining engineer by trade built a wood pulp mill on the banks of the Tammerkoski rapids, in southern Finland. A few years later, he built a second mill by the Nokianvirta River – the place that gave Nokia its name. Idestam is considered to be the father of Finland‟s paper industry. Trivia: The Nokianvirta River is named after a dark, furry animal that was locally known as the Nokia – a type of marten. 1871: Idestam named his company Nokia Ab. 1902: Nokia Ab added electricity generation to its business activities in 1902. 1967: Three companies, Nokia Ab, Finnish Cable Works& Finnish Rubber Works, which had been jointly owned since 1922, officially merged in 1967. 1979: Radio telephone company Mobira Oy begins life as a joint venture between Nokia and leading Finnish television maker Salora. 1981: The launch of Nordiac Mobile Telephony (NMT) service. The service was the world‟s first international cellular network. It was also the first company to introduce International Roaming. 1982: With the introduction of NMT the mobile industry began to expand rapidly. In this year Nokia made its first digital telephone switch, the Nokia DX200. Nokia soon introduced the first car phones (The Mobira 450 car phone). 1984: Nokia introduced its first portable phone, the Mobira Talkman portable phone. By this time the company was also providing base stations and switches for NMT network. 1987: The birth of a classic. Then the original mobile phones were heavy, bulky and usually permanently installed in cars. Nokia launches the Mobira Cityman, the first handheld NMT phone. The Mobira Cityman 900 weighed 800 grams and had a price tag of 24,000 Finnish Marks (approximately EUR 4,560). 1991: GSM- A new mobile standard opens up. On July 1, 1991, Finnish Prime Minister Harri Holkeri made the world‟s first GSM call, using Nokia equipment. 1992: Nokia launched its first digital handheld GSM phone, the Nokia 1011. In this year Jorma ollila became president & CEO of Nokia and made a crucial decision: to focus on telecommunications and move out of its other businesses. 3|Page
  • 4. 1998: Nokia becomes the worldwide leader in Mobile phones. The world‟s biggest mobile phone manufacturer. 1999: Nokia launches the world‟s first WAP handset, the Nokia 7110. 2002: First 3G phone. Nokia launches its first 3G phone, the Nokia 6650 2003: Mobile gaming goes multiplayer with the N-Gage 2005: The Nokia N series is born, the next generation of multimedia devices. And in this year Nokia sells its billionth phone, a Nokia 1100 in Nigeria. 2010: The Nokia brand, valued at $29.5 billion, is listed as the eight most valuable global brands in the BusinessWeek Best Global Brands list of 2010. In July 2010, Nokia reported a drop in profits by 40%. In global Smartphone rivalry Nokia held the 3rd place trailing behind Samsung & Apple. 2011: On 11 February 2011, Nokia announced a partnership with Microsoft. Now most future Nokia smart phones will be powered by the windows 7 (phone operating system). N73 - The best Mobile Handset in the world. 4|Page
  • 5. Vision of Nokia “Our promise is to help people feel close to what is important to them. “ - Nokia 5|Page
  • 6. Initial positioning and subsequent repositioning of Nokia Positioning Positioning is the act of designing the company‟s offerings and image to occupy a distinctive place in the minds of the target market. 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 the customer can enjoy a better life. Nokia thus uses a combination of aspiration, 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. Nokia has succeeded in lending personality to its products, without even giving them specific 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. Such is the strength of the corporate brand. Repositioning Nokia is best known in the first instance for producing cheap S40 handsets and secondly for S60 handsets with great cameras but otherwise clunky operating system. The repositioning comes as Nokia battles to retain market share in the face of competition from rivals such as Apple, RIM, and HTC. The big growth opportunity for Nokia is to go beyond bringing affordable voice to bringing affordable web and applications to the next billion consumers. It will do this by innovating within current device, software and services assets as well as investing in new capabilities. The goal is delivering the best low-cost devices that deliver the richest experiences and applications that the consumers will love. Having the potential to reach that many customers is enticing to operators and developers. It explored a number of options and believes the planned long term strategic partnership with Microsoft would enable us to innovate and differentiate, and build a new global ecosystem that creates opportunities beyond anything that currently exists today, offering a serious alternative to the existing choices for operators, developers and consumers. 6|Page
  • 7. Nokia is due to replace their Symbian operating system with Windows 7 Mobile. We believe that this could be a good move by the company as an exit from the U.S. could help the company save operating expenses for the business that was limping along. According to Comscore, the U.S. Smartphone subscriber share for Nokia Symbian declined from 2.3% in March this year to 2% in June this year. Hence supporting the operations in the U.S. for a declining business that it plans to replace with its Microsoft OS doesn‟t make much sense. Another thing to note is that the main motive behind its decision to adopt Microsoft OS was to cut its operating expenses by 1 billion Euros by 2013. Hence this move could just be the beginning of Nokia‟s bigger plans to achieve its cost savings target. Nokia is laying the ground work for the release of their first Windows Phone 7 handset by launching a £80 million global campaign to reposition their brand. While the £80 million Nokia will be investing in changing this perception may appear small, it is likely it will be accompanied by co-marketing dollars from Microsoft, as it has been doing with other partners and carriers. The campaign will run over 6 months and is being developed by several agencies from its worldwide repositioning. 7|Page
  • 8. Advertising Strategy of Nokia Most forms of promotion are based around the idea of having an image to go with the product. Brand imaging plays a dominant part in an organizations marketing strategy. This is because people make a purchase they aren't just buying a product, they are buying a lifestyle or an image. If branding can make people believe that the branded product is better than an un-branded product, more people will buy it and they will also be willing to pay higher prices for the "extra quality" and lifestyle they are receiving with the product. Because a lot of rival products are more or less the same (Pepsi and Coke) the main way of making your product stand out is through aggressive branding, this is usually achieved by companies using slogans, logos and distinctive packaging. Nokia tend to promote the new technologies and mobile devices they create using one big advertising campaign that focuses on a singular technology instead of each individual handset so they can appeal to a lot of different markets with one campaign.  Nokia 1600 and 1110i Advertisement was made for targeting rural India, with a tag line - “Apke jeevan ke dor”.  Nokia 1100 advertisement was made to target at the entry-level phone user, with a tag line - “Made for India”.  Nokia 3110 Classic, Nokia 5700 advertisements were made to target young generation with camera zoom & music system features with tag lines “Ab jo hoga zoom karke dekha jayega” & “Do the Music” respectively.  Nokia 7610 Supernova Advertisement aimed at city based young crowd with a tag – “It's not just a phone, it's who we are”  Nokia -6300, 5310, and 2630 Advertisement gives you a feel of Indian culture and that Nokia is very much within us with a tag line - “Har khushi shami” Nokia's current marketing strategy has helped them become the biggest selling brand in the communications market to date, but now sales are starting to decrease with the saturation of the current market segment so Nokia will need to do one of the following; Re-launch their products with an aggressive promotional scheme; Target a different segment of the market that has not been entered so Nokia can instantly gain 100% of the market share (although this is risky as the market might not take to their products and the demand might be low, so sales will also be low and prices will have to be high and this will further stop people from purchasing Nokia's products). 8|Page
  • 9. During the first season of IPL (Indian Premier League), Kolkata Knight Riders tied-up with Nokia in its marketing campaign. Nokia had the second highest recall (after DLF) despite a poor performance of KKR. The sound strategy of KKR made it the best financially performing team in the first season of IPL. 9|Page
  • 10. Sales Promotion of Nokia Sales Promotion includes several communication activities that attempt to provide added value or incentives to consumers, wholesalers, retailers or sales-force to stimulate the initial sales. Companies use sales promotion tools – coupons, contests, premiums, and the like – to draw a stronger and quicker buyer response, including short-run effects such as highlighting product offers and boosting sagging sales. Sales promotion tools offer three distinctive benefits: Communication, Incentives and Invitation. Historically, the thinking of Nokia was: a good product will sell itself. However there are no bad products anymore in today‟s highly competitive markets. Nokia provides sales promotion by Communicating to the masses. Its tag line itself says, “Connecting people”, which gives an indication that it‟s a generic product for people and it helps in providing mobile phones to all the different classes of demography. Target Market for the Nokia Mobile Phone is between 20-40 years, mainly teenagers and Business Class People. India is among the world's fastest-growing markets for mobile phones. The country has some 170 million subscribers and adds 6 million to 7 million more each month. (China, in contrast, adds 5 million subscribers, and the U.S. 2 million subscribers a month.) Recognizing this potential, several global telecom giants jumped into the fray when the Indian government first opened up the country's telecom market to private enterprise in 1994. Among them, one company -- Finland-based Nokia -- forged ahead of rivals and today commands a lead position in market share for mobile phones (also called "handsets"). In specific segments, such as GSM telephony, Nokia's market share in India is as high as 70%. Nokia have managed to be quite environmentally friendly and have not done anything that the consuming public have taken huge offence to, they have been very careful about this and this is one of the reasons they are such a popular brand of mobile phones. Nokia is one company that uses “push” selling strategy. Nokia promote their products via retailers such as Car phone Warehouse. Personal selling and trade promotions are often the most effective promotional tools for companies such as Nokia - for example offering subsidies on the handsets to encourage retailers to sell higher volumes. 10 | P a g e
  • 11. A "push" strategy tries to sell directly to the consumer, bypassing other distribution channels (e.g. selling insurance or holidays directly). With this type of strategy, consumer promotions and advertising are the most likely promotional tools. Nokia is the market leader in Mobile Phones in India. It holds a market share of around 70%. But Nokia was not the only company to enter India, when this mobile revolution was about to happen. I remember that my first cell phone was a Siemens C100; a few of my friends had a Samsung with them, what happened to these companies. What are they not in picture anymore? The few reasons for the same are: The Power of Focus: Focusing on one and the only business and i.e. mobile phones or handsets and infrastructure related to it. The Distribution Edge: When it comes to distribution, Nokia's lead is clear. Today, India has some 95,000 outlets that sell mobile phones. "In 50,000 of them -- and that's a conservative estimate -- only one brand is available, Nokia. Investment in Manufacturing: The other big investment area that has set Nokia apart from other telecom firms is manufacturing facilities and R&D. Nokia has several R&D centres and labs in India. Building the Brand: Here Nokia faced a problem because Nokia range available in India extends from Rs 1,499 ($37) at the lower end to Rs 45,000 ($1,125) at the high end, but now with years of being in operation they have created a brand for themselves. This they have done by the concept of One Model replacing the other as per need and desire. Products for India: The Nokia story in India has not been about grafting a model that has worked abroad. In fact some of the models - are unique to India. For example a mobile set having a flashlight, or torch. 11 | P a g e
  • 12. Segmentation strategy followed by the Nokia Nokia India had a 74% market share in the GSM mobile handset market at the end of the year 2006. And the company has found a new way of connecting with its consumers. The company has embarked upon a brand new retail strategy that is based on the classification of its consumers into four major groups that segment consumers in terms of product usage, income level and lifestyle. The classification is based on an extensive survey - the Nokia Segmentation Study - involving 42,000 consumers from 16 countries. The survey studied the impact that lifestyle choices and attitudes have on the mobile devices purchased by consumers and how they use them. The company is following separate marketing strategies for the four different segments that emerged from this survey. The advertising campaigns for the segments are also different. Nokia‟s entire product portfolio has Nokia‟s entire product portfolio has now been re- aligned towards these four groups to address the specific needs of each. The first of these segments is „Live‟. This segment comprises first time users whose basic need is to stay in touch, with voice as the main driver. This segment would be served basic handsets which would be low on features and price. These will be functional phones and the target group for these phones range from SEC C (low socio-economic class) to SEC A1+ (very high socioeconomic class) markets. The second segment „Connect‟ comprises more evolved users who look for more functionality, features and connectivity. Accordingly, phones in this segment would have GPRS, camera and music capabilities. The next two segments, „Achieve‟ and „Explore‟, consist of high-end users who would be offered Nokia‟s top-end handsets. For example, „Achieve‟ segment comprises company executives who need to have business functionalities in their phones. Nokia‟s E-series (Enterprise series) is aimed at this segment with handsets having QWERTY keyboards and full Internet capabilities. „Explore‟ would be the most prominent segment for the company in the coming years. This segment comprises high lifestyle users. This segment would see the most vibrant growth in the coming years. The phones aimed at this segment will focus on five different functionalities: applications, imaging, mobile TV. 12 | P a g e
  • 13. Analysis of product and generic competition to the brand NOKIA Nokia engages in the following levels of marketing: Segment Marketing Nokia offers designs, features and functionality that cater to the demands of the market segment. E.g. Nokia Ngage (gamers). Niche Marketing Nokia also has products for customer groups seeking a distinctive mix of benefits and are ready to pay a premium price for it. E.g. Nokia N96, E71. Psychographic Segmentation (Lifestyle) Live Customers - Looking for design and style, followers of trends and fashion and have active lifestyle - Nokia 8800Sapphire Connect Customers - Combination of ease of use and elegant looks. Want seamlessly connected and in best possible way - Nokia 6110 Navigator Achieve Customers - Smart business people wanting smartest tools for balancing work and life. E90 models -use of e-mail, calendar, Contacts, web browsing. Explore Customers - Want cutting edge technology for their stylish Life-styles - Nokia N-95 with 8 GB chip with multimedia devices, that snap, record, browses and share contents all via internet. There exists another segment of consumers who rank price and functionality of the phone above the aesthetics and enhanced features. For these segments we have products like Ngage (gamers), Xpress music (music lovers), etc and 1100, 2100, 2300, etc. Demographic Segmentation (Income) Nokia has managed to stay ahead of its competitors by targeting consumers at the Bottom of Pyramid (BOP) along with other segments. High Income Group - Caters to the upper segment of the society with high purchasing power. E.g. Nokia 8800Sapphire, N96, E71 etc Medium Income Group - Caters to that segment which gives more importance to value for money e.g. N72, N73, Nokia 6300, and Nokia 5300 (Xpress Music) Low Income Group - Caters to the consumers in BOP segment Nokia 1100, Nokia 2100, Nokia 3310, Nokia 3315, Nokia 2300 13 | P a g e
  • 14. Since we are dealing with a global industry, it is worth looking at popularity by region. Perhaps it will shed some light on the industry. The following charts illustrate the popularity of Nokia, Blackberry, and iPhone. Consistent with my understanding of Nokia, it is way more popular in developing countries (Eastern Europe, Middle East, India, and Pacific Rim) than developed countries. RIM's Blackberry appears to be concentrated in a few countries, while the iPhone has high popularity throughout the world, with a tilt towards the developed world. 14 | P a g e
  • 15. It appears that Nokia's popularity has been declining in the last few years but it isn't quite that bad. Apple's iPhone has been skyrocketing on the popularity scale but I don't believe it's as big of a threat to Nokia as it seems. Nokia which is the undisputed king of the Indian market is facing not only increased competition in the high end space from Smartphone by Apple, RIM, Google and others but also in the low priced end. A number of Indian companies like Olive, Micromax etc have made inroads with cheaper and feature rich handsets. Nokia has a much smaller market share in the Chinese market because of competition from super cheap local Chinese competitors. Nokia is a company getting squeezed both at the top and bottom segments from different breed of competitors. In the mindshare, brand appeal and pricing power to Google and Apple while on the lower segment it is losing out to local no name cheap competitors. Nokia‟s Indian Fortress was crumbling in the face Samsung and Local Players Competition last year and has now taken alarming proportions with a whopping 18% market share loss in the last 6 months. The competition is only intensifying with Local Indian companies introducing low cost Smartphone powered by Google‟s Free and very popular Android O/S. Nokia has been trying to turn around its fortunes with the help ofN8,Meego and a new CEO. Nokia‟s recent quarter has shown improvement with cost cutting efforts leading to improved profits. However the mid and long term future remains bleak required a drastic change in strategy. 15 | P a g e
  • 16. Strategies adopted over time by the brand to tackle competition or prime market expansion With all of these competitors in the market Nokia must keep ahead of the game by running successful marketing strategies, to do this Nokia must focus on the principles of marketing. At the moment Nokia are the world's best selling phone company. Nokia was the clear market leader in the mobile phone industry in terms of sales and profitability. It was ahead of giant companies like Motorola, Ericsson, APPLE, Siemens, Samsung, and other worthy competitors. Since the early 1990s, Nokia's Strategic Intent was to build distinctive competency in product innovation, rapid response, and global brand management. Its strategic intent required rapid growth in the core businesses of mobile phones and telecommunications networks. This goal was achieved by Nokia's development of new products and expansion into new markets. In order to become the global leader as it is today, the company had overcome numerous challenges and obstacles over the last decade. Nokia focused on building and sustaining its current competency in the early 1990s. NMP created valuable alliances across the industry and made key acquisitions to increase economies of scale, market share, and access to R&D resources. The management believed in the growing acceptance of digital technology as the uniform communication standard in the future. Nokia formed partnerships with AT&T, Alcatel, and AEG to further the development of a digital telephone and network. The GSM digital standard was a major success for NPM on the global scale. Nokia also realized the need to create rapid response to market changes. The production and distribution processes were standardized and simplified in order to satisfy the changing market's demand. At the same time, Nokia also focused in building brand management. The management realized that mobile phones would be a commodity in the near future. The company increased spending in advertising, reallocating resources, and building brand image across the globe. This strategy was successful and placed Nokia among the world's most admired brands. During the 1990s, customer and consumer expectations for mobile phone technology were notably different. The market's largest customers, the phone services providers, expected discounted custom-made phones and the rollout of 3G for their subscribers. Meanwhile, the everyday consumers wanted much more than just voice function in mobile phones. Multiple functions such as entertainment, personal expression, and extended communication were required. Moreover, many consumers expected their mobile phones to have the ability to access the Internet and connect with other electronic devices, like digital TV. In order to sustain influence as the dominant player in the mobile phone industry for the next 5 years, Nokia's strategic intent should be "focused, global, and value- added" (Oliff,5). Traditionally, the main products of Nokia were mobile phones and networks. The company had extensive expertise in the production process and distribution channels, and should be able to capitalize on these assets in the near future's competitive environment. The ability to overcome the technical difficulties of the 3G phone with GSM standard may provide a much needed boost for Nokia. 16 | P a g e
  • 17. NMP's products had a worldwide recognition, especially among young consumers. However, there are many potential markets, especially in Asia-pacific and Latin America, that could help increase Nokia's sales volume. This would require the company to reallocate resources and produce entry-level products. Finally, Nokia should be able to consistently exceed customer and consumer expectations by producing value-added products and services, such as user-friendly phones and easy-to-use phone services. 17 | P a g e
  • 18. Distribution Channel of Nokia in India Distribution Channel is a way of selling a company's product either directly or via distributors; "possible distribution channels are wholesalers or small retailers or retail chains or direct mailers or own stores" Chennai was selected as the location for the Nokia Telecom Industry Park due to the availability of skilled labour, support from the state government and the presence of good logistics connections. The mission of the Nokia Telecom Industry Park is to create a network of co-located and co-dependent partners that operate at world- class standards and manufacture high quality products. Franchisees: Nokia franchised its brand exclusivity in the name of Nokia Priority Dealers. All the outlets which are under the franchiser should follow certain footfalls of the franchiser‟s company. This would include converting a normal outlet into Nokia Priority Dealer outlet. But the franchiser will help in visual merchandising and loan for deposits which are refundable. Rural Market Distribution: Nokia did not concentrate more on rural markets as the products are widely used in urban cities but due to competition in the market, Nokia planned to leverage the distribution network in order to expand to rural sectors and to serve untapped market. The company planned to educate the benefits of its mobile toward the villagers. Other Distributions in India: Apart from its Nokia concept stores, the company distributes its product to many multi-brand mobile stores which are well known in India for their service and price discounts. They are: Hotspot: it is ranked as the number one outlet for its wide collection of mobile of all range and also for good after sales service. Apart from handsets, it also sells mobile accessories, mobile network connections, recharge vouchers and gaming device. Univercell: it is considered as the highest selling outlets among the other mobile retailers in India. This is because of their service flexibilities like online shopping, door delivery, and after sales service. The mobile store: it is a recently emerged mobile outlet which is also well known for the wide range of mobiles and its enhancement product along with the well known repair centre insides it‟s each outlet. The store had won awards as „Most Wanted Mobile Retailer. 18 | P a g e
  • 19. Nokia owns the distribution centres in west and south of India but, in northern and eastern part of the country Nokia distributes its products through HCL. HCL has served customers as a partner of Nokia for more than 10 years. HCL consists a large part of Nokia services, it has its centres in more than180 cities, and these care centres are owned and are operated efficiently by HCL, the operations of HCL is limited only to north and east India only. The mother depot of Nokia is in North India in Gurgaon, all the high end sets which are imported and all the sets which are manufactured in Chennai are transferred here first. Nokia has an innovative supply chain approach to support the business in India. India has a very high mobile phone usage, due to having some of the cheapest tariffs in the world. Whilst teledensity in the cities is 30-35%, it drops to 2-3% in the country. This was Nokia‟s target market. Nokia makes handsets specifically designed for the Indian market with low functionality cheaper handsets for the rural areas. Given the opportunity in the rural markets and the fact that in India mobile phones are sold through over 100,000 retail outlets a specific supply chain strategy was required. This includes „marketing vans‟ supporting sales in the rural areas and a partnership with HCL as distribution partner, who already had a well established network. 19 | P a g e
  • 20. Summary regarding the future direction of the brand The cell phone has become the only basic telephone link of a household or an enterprise in India rather than a land line phone. It is turning out to be more economical and efficient than fix line telephones, so there is a great scope for further expansion with reduction in cost. According to industry analyst the mobile phone industry in India will be driven by voice, multimedia and mobile services for organizations. Nokia outlined its new platform strategy for smart phones, with windows phones as its primary smart phone platform in the proposed partnership with Microsoft. Microsoft tools would be used for Nokia Windows‟s phone application development. According to research if things are not going well with Microsoft then they might turn to android. Nokia is developing highly relevant solutions that will connect the consumer to wherever they want to be, whenever they want to be there. This innovative solution will provide the institution and power to share their feelings and experiences as they happen. 20 | P a g e
  • 21. List of Hypothesis: 1. Nokia is losing its market share due to its Operating system. 2. Nokia‟s phones are more durable compared to its competitors. 3. Nokia‟s phones have a longer battery backup compared to its competitors Justification for the first Hypothesis: Gone are the days when Mobile phone was just used for voice call, SMS and taking pictures. The requirements from a mobile phone has increased, people now want phones which are multitasking, support various applications, games and perform faster. Nokia operating with Symbian operating system has been popular with users, but lately that popularity has been declining. Among the other devices in the market, phones operating on Android are probably the most prominent competitor for Nokia‟s Symbian operating system. Android phones contain more applications and also support more 3rd party software compared to a Nokia phone. Android‟s bunch of features includes Application Framework that allows users to customize the components, optimize the graphics interface. Its multimedia performance is also very high. Further core applications like SMS program, maps, calendar, email client, contacts, Java programming, etc. are highly optimized in Android. The Symbian developers have included more applications in the Symbian OS over the time but it failed to succeed in the market. It is also believed that the Symbian Software has a higher response time and can‟t handle multiple applications at a single time. Justification for the second Hypothesis: As per our observation of Nokia handsets we found that the brand has occupied a distinctive place in peoples‟ mind due to its durability and battery backup. Businessmen and working professionals who have a high usage of mobile phones for voice calling purpose give sturdiness and battery backup as their first priority while purchasing phones. So we wanted to check whether Nokia is able to position its phones as per their demand. More over as per the positioning part of our literature review we inferred that Nokia gives a sense of trust and consideration to its customers and is somehow related to the durability and battery backup of Nokia‟s Phones. Justification for the third Hypothesis: As per our observation Nokia as a brand is known for its long battery backup and battery life is one of the most important factors to consider when buying a cell phone. No matter how flashy a handset may be and how many cool features it offers, it won't be satisfactory for customers if the battery runs out too quickly. This is what we intend to prove through our hypothesis. 21 | P a g e
  • 22. The list of information requirements to be collated from the research Investigation about the durability and battery backup of the product – the importance attached by the users and the perception of performance of various brands on this parameter. Importance of applications in present generation (networking. Gaming, business) Alternatives available to consumer Analyzing the consumer buying behaviour to understand what instigate to buy the product INSTRUMENT OF DATA COLLECTION: The information will be collected through the designed questionnaires, in the following two ways:  INTERVIEW METHOD Definition: Interview is verbal questioning. Interview is defined as “a two-person conversation, initiated by the interviewer for the specific purpose of obtaining research- relevant information and focused by him on the content specified by the research objectives of description and explanation”. We have used standardized type of interview, in standardized interviews; answer to each question is standardized as it is determined by a set of response categories given for this purpose. The respondents are expected to choose one of the given options as the answer. We chose this particular instrument because it will give us a higher response rate and are useful for untangling complex topics. The interview question basically allows us to obtain all the initial data as well as professional details that we would want to know about every applicant.  MAIL QUESTIONNAIRES (Design attached) A questionnaire is a research instrument consisting of a series of questions and other prompts for the purpose of gathering information from respondents List of a research or survey questions asked to respondents, and designed to extract specific information. It will serve four basic purposes to us (1) collect the appropriate data. (2) Make data comparable and amenable to analysis. (3) Minimize bias in formulating and asking question. (4) To make questions engaging and varied. 22 | P a g e
  • 23. Sampling Plan and Sample Size (with justification) SAMPLING PLAN: Sampling is the act, process, or technique of selecting a suitable sample, or a representative part of a population for the purpose of determining parameters or characteristics of the whole population. Sampling is one of the components of a research design. It is the only feasible way to collect marketing research data in our project. The target population are:  People between 13 years to 60 years of age.  People from different income group. This sample includes users of Nokia and as well as non-users of Nokia. For this purpose we have used convenience sampling, a statistical method of drawing representative data by selecting data by selecting people because of the ease of their volunteering or selecting units because of their availability or easy access. The advantages of this type of sampling are the availability and the quickness with which data can be gathered. The number of respondents: 100-120 METHODS OF DATA ANALYSIS The following are the data analysis tools to be used: Graphical Representation Pie charts: Pie charts show the size of items in one data series, proportional to the sum of the items. The data points in a pie chart are displayed as a percentage of the whole pie. This tool can be used to determine the number of users of different mobile brands as per our survey. We would be using this to represent question numbers 1, 2, 3, 4 and 5. Rank co relation (Kendall‟s co efficient of concordance): A coefficient of agreement (concordance) between different sets of rank orderings of the same set of things. This we would be using to represent question number 6. Bar Graph: A bar graph is chart that uses the lengths of parallel bars to represent the relationship between various data or values. A diagram that has rectangles of various lengths that corresponds to numbers is an example of bar graph. We would be representing question number7, 8, 10 and 11. Likert Scale: Ordinal scale of responses to a question or statement, ordered in hierarchical sequence from strongly negative to strongly positive. We would be using this to represent question number 9. 23 | P a g e
  • 24. Apart from the above mentioned tools we will also use „Z-test‟ to get the desired result of our survey i.e. to see whether the findings from our questionnaire is applicable to the entire population (mobile users) or not. 24 | P a g e
  • 25. Net Take Away The three hypotheses that we had taken in our second phase are as follows 1. Nokia is losing its market share due to its Operating system. 2. Nokia‟s phones are more durable compared to its competitors. 3. Nokia‟s phones have a longer battery backup compared to its competitors. The question number 4, 5, 6 and 7 in our questionnaire is based on the first hypothesis relating to the operating system. As per our findings from question number 4, we see that 88% of our total respondents (105) are aware of the operating system in their mobile phone. From question number 5 we infer that operating system in a most critical parameter for 17% of the total respondents and it an important but not a critical parameter for 72% of the total respondents. Question number 6 shows that Android (Operating System) is the most preferred operating system for majority of respondents who are aware about the operating system. From question number 7 we observe that all the people who are aware about the operating system are not exactly aware about which operating system is being used by different brands of mobile phones. These inferences when taken all together proves that operating system is a reason for Nokia losing its market share, since people are concerned about the operating system The question number 8 and 10 of our questionnaire are based on the second hypothesis relating to durability of Nokia phones. As per our findings from question number 8 we see that the weighted average of the respondents who consider durability as a parameter while purchasing a mobile phone is high. From question number 11 we infer that Nokia has been rated high on the parameter of durability as compared to other competing brands of mobile phones. So, taking into account these two questions we can clearly infer that Nokia phones are considered more durable as compared to its competitor. The question number 9 and 11 of the questionnaire are based on the third hypothesis relating to the battery backup of Nokia phones. From our findings we see that out of 54 Nokia users 15 strongly agree and 17 agree with the battery backup of their mobile phone, which constitute of 59.25% of the total users who uses Nokia. As per question number 11 we find that 60 respondents have given highest rank to Nokia and 19 respondents have given second highest rank to Nokia, which shows that 75.2% of the total respondents are satisfied with the battery backup that Nokia phone provides compared to its competing brands. So the third hypothesis which says that Nokia has longer battery backup is being proved by our survey. Hence we conclude that the clunky operating system of Nokia phones is a major concern for the company, as it is losing market share due to it and we also see that Nokia phones are considered to be durable with long battery backup. 25 | P a g e