CHAPTER 1 EXECUTIVE SUMMARY
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EXECUTIVE SUMMARY The project titled “To study the brand awareness and brand preference of NOKIA” deals with the study of Cellular Mobile industry with special emphasis on strategies adopted by NOKIA to be a market leader in India. It studies the existing plans, various factors which resulted in the growth of the company. The study was to determine present scenario, what is the present scenario regarding the Cellular Mobile industry in India. The steps taken by the government for the rapid growth of industry. An overview about Nokia emphasizing on the strategies adopted by Nokia to lead in the Indian market, Marketing Mix and SWOT analysis. Growth in India's mobile handset production is rapid, propelled by the speed of growth of mobile subscriber numbers. Local brand mobile phones are also set for growth in the Indian market thanks to the rising demand for low cost and ultra low cost mobile phones, and EMS (Electronic Manufacturing Services) vendors to lower revenue exposure to large multinational vendors. With low mobile penetration and favorable government policies, original mobile phone equipment manufacturers are increasingly setting up manufacturing facilities in India. In January 2006, Nokia initiated operations in its Chennai unit, setting a record with the production of a record 25 Million handsets in its very first year. It also exports mobiles from India to Sri Lanka. Motorola and EMS vendors like Foxconn and Flextronics have followed with plants set up in India. The furious pace of growth of the demand for mobile connections in India has given a boost to the demand for home-based mobile manufacturers. The growth of Indian mobile market is unrivalled all through the world. In a period of 30 days only (May 2009), an additional 6.57 Million mobile subscribers signed up for services. The figure for mobile users in the subcontinent at the start of June 2009 was 178 Million. 2
Started on a slow note, mobile manufacturing in India has now picked up pace to the extent that it is now posing a threat to China as a base for low-cost handset production. A Research Firm highlighted that in past 12 months between May 2008 and 2009, India-produced units shot up by 68%.
NEED OF THE STUDY To know the brand awareness and brand preference of nokia handsets in the view of customers and also to know the marketing strategies followed by the companies to tap the market, target segment, basis of choosing the target group, the customer preferences associated with the product and existing distribution channels of the company. Advertising strategies followed to tap the target market and how the company became a local brand. The data collection was mainly done through secondary data through the help of various magazines and searching through internet.
MAJOR FINDINGS DURING THE STUDY • Nokia is still the market leader with a large portion of market share nearly 49% followed by Motorola and LG having 15 and 14 % market Share respectively followed by others. • Nokia success for being market leader is due to their constant focus, Brand Building, Distribution, made for India Products that is Going Local. • In order to tap the rural market and beat the competition NOKIA brought some special mobile Phones in the market with some value added services like Saral Mobile Sandesh and they are also implementing the idea of shared mobile phone offered through a local village entrepreneur with the help of NGO’s to increase the penetration level.
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CHAPTER 2 INTRODUCTION
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INTRODUCTION
This project is an attempt to study the mobile industry and various players in the market who are fighting to grow their market share and also to bring out the status of nokia in customer’s mind. Out of players in the market I have selected NOKIA and done a study to get information about the marketing strategies adopted by them to sustain in the market.
This project is an attempt to bring under one cover the entire hard work and dedication put by me. I have tried to put into paper, the maximum information that I could gather during the project from various sources, in simple ways.
This project is an attempt to increase my knowledge and skills and provide valuable knowledge about the organization.
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CHAPTER 3 COMPANY PROFILE
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COMPANY PROFILE Nokia has played a pioneering role in the growth of cellular technology in India, starting with the first-ever cellular call a decade ago, made on a Nokia mobile phone over a Nokiadeployed network. Nokia started its India operations in 1995, and presently operates out of offices in New Delhi, Mumbai, Kolkata, Jaipur, Lucknow, Chennai, Bangalore, Hyderabad, Pune and Ahmadabad. The Indian operations comprise of the handsets business; R&D facilities in Bangalore, Hyderabad and Mumbai; a manufacturing plant in Chennai and a Design Studio in Bangalore. Over the years, the company has grown manifold with its manpower strength increasing from 450 people in the year 2004 to over 15000 employees in March 2008 (including Nokia Siemens Networks). Today, India holds the distinction of being the second largest market for the company globally.
Design Studio Nokia has set up its first Design Studio in Bangalore in partnership with Srishti School of Art, Design and Technology. The first of its kind, the design studio will give Nokia designers and India’s talented youth the opportunity to work together on new design ideas for India and the global markets
Business Devices Nokia has established itself as the market and brand leader in the mobile devices market in India. The company has built a diverse product portfolio to meet the needs of different consumer segments and therefore offers devices across five categories i.e. Entry, Live, Connect, Explore and Achieve. These include products that cater to first time subscribers to advanced business devices and high performance multimedia devices for imaging, music and gaming. Nokia has been working closely with operators in India to increase the geographical coverage and lower the total cost of ownership for consumers. Today, Nokia has one of the largest distribution network with presence across 1, 30,000 outlets. In addition, the company also has Nokia Priority Dealers across the country and Nokia ‘Concept stores’ in Bangalore, Delhi,
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Jaipur, Hyderabad, Chandigarh, Ludhiana, Chennai, Indore and Mumbai to provide customers a complete mobile experience.
Services business With the global launch of Ovi, the company's Internet services brand name, Nokia is renewing itself to be at the forefront of the convergence of internet and mobility. From being a product centric company, Nokia is now focusing to become solutions centric. The strategic shift is built on Nokia’s bid to retain consumers and empower Nokia device owners to realise the full potential of the Internet. Nokia will build a suite of Internet based services like Nokia Maps, the Nokia Music Store and Nokia N-Gage around its Ovi brand.
Infrastructure business Nokia Siemens Networks is a leading global enabler of communications services. The company provides a complete, well-balanced product portfolio of mobile and fixed network infrastructure solutions and addresses the growing demand for services with 20,000 service professionals worldwide. Its operations in India include Sales & Marketing, Research & Development, Manufacturing and Global Networks Solutions Centre. Headquartered in Gurgaon, Nokia Siemens Networks has 47 offices and presence in over 170 locations across the country.
Some firsts for Nokia in India 1995 – First mobile phone call made in India on a Nokia phone on a Nokia network 1998 - Saare Jahaan Se Acchha, first Indian ringtone in a Nokia 5110 2000 - First phone with Hindi menu (Nokia 3210) 2002 - First Camera phone (Nokia 7650) 2003 - First Made for India phone, Nokia 1100 2004 - Saral Mobile Sandesh, Hindi SMS on a wide range of Nokia phones 2004 - First Wi-fi Phone- Nokia Communicator (N9500) 2005 – Local UI in additional local language 2006 – Nokia manufacturing plant in Chennai 8
2007 – First vernacular news portal
How Nokia Changed In reviewing Nokia, it is critical to realize that the firm did not simply state, we want to take advantage of changes in technology.” Instead, the firm made numerous changes in its organization, including structure, personnel policies, and leadership, to make changes in technology possible. To illustrate, in 1992 the firm decided to focus on telecommunications. As a result, all noncore businesses were divested. This involved a massive sell-off of Nokia’s noncore assets. The individuals remaining in the firm after these assets were sold differed greatly from the original employees. For example, more than one-third of the remaining employees were in research and development. The organization of the research-focused employees was also different from many organizations. Researchers were not centralized in a single research and development the firm. They were organized in this way to encourage creativity throughout the organization. The structure of the organization was also different. Nokia developed a flatter structure in which employees are encouraged to talk to each other rather than up and down a hierarchy. This can result in more communication and some inefficiency; however, it also encourages more creativity. These changes illustrate one of the foundations for the management of technology and innovation: Not a single change but an organization-wide effort is needed to succeed. Thus, a firm cannot simply decide to introduce a new technology or take advantage of a given opportunity.
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Instead, the company must ensure that the entire firm fits with the technology and the changes it introduces to both the organization and its people. This alignment is critical to the success of the management of technology and innovation.
Strategic Perspective Nokia has not simply seen a single technological innovation and changed everything in the organization based on that one technology. Instead, it has identified key changes in the environment and then taken advantage of the broad changes in society. This strategic perspective results in the firm’s ability to identify broad trends of which to take advantage. Once the firm identifies such trends, it then makes substantive commitments throughout the organization to succeed in its efforts. Thus, the firm takes consistent and essential steps to ensure that it is successful. What can be seen is that small, systematic steps are taken each year to move the firm forward. Each of these new products shows incremental changes in the firm’s strategic direction. Nokia does not simply decide to dominate a particular industry. Instead, it employs a strategic perspective which argues that the firm needs to identify where it wants to go. Then the company takes the necessary steps to move to that position.
Manufacturing in India Nokia Manufacturing Plant- Sriperumbudur, Chennai As the global leader in mobile communications, Nokia is committed towards developing its manufacturing infrastructure and establishing a global sourcing network. The Nokia India 10
manufacturing facility located in Sriperumbudur, Chennai is Nokia's tenth mobile device production facility globally and has been created in line with Nokia's global philosophy of developing world class manufacturing systems that enable best-in-class quality, lowest cost, world class responsiveness, just in time delivery and a challenging and joyful work environment. Factory Highlights • •
The factory construction from ground breaking to manufacturing of the first product took 5 months Started with 550 people in January 2006, and grown to 8000 people
Spread over an area of 210.87 acres, Nokia started its operations with 550 employees in January 2006 and today boasts of 8000 employees, 70 percent of whom are women. Currently the factory exports to 50+ countries in South East Asia, Middle East, Africa, Australia and New Zealand, other than catering to the demands of the domestic market. Nokia's manufacturing facility in India reiterates its commitment to the fast growing Indian telecommunications market. The Chennai facility has been built keeping in mind Nokia's commitment to employee safety and in compliance with environmental standards. The quality management and safety systems at the Nokia manufacturing facility in Chennai are world class. Nokia lays special emphasis on the well being of its employees and the Chennai manufacturing site has a highly motivating work environment that is designed to sustain a large & diverse talent pool. Nokia's employee practices are committed to ethical conduct, full compliance to applicable national and international laws and respect for human rights in the spirit of internationally recognized international labour standards in the ILO conventions, the United Nations' Universal Declaration of Human Rights and the Convention on Rights of the Child. Nokia Telecom Park Chennai was selected as the location for the Nokia Telecom Industry Park due to the availability of skilled labor, 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 11
of co-located and co-dependent partners that operate at world class standards and manufacture high quality products. Developing the Nokia Telecom Industry Park in Chennai into a world class high-tech industrial zone is an important part of Nokia's global manufacturing and R&D network strategy. The Telecom Industry Park not only underlines Nokia's successful cooperation with the Indian government but also represents a unique and optimized business model that will provide growth opportunities for all parties in the value chain. The 210.87 acres of land in the Telecom Industry Park provides Nokia with the benefits of a pollution free environment, inhouse customs clearance, and uninterrupted power supply. With Nokia as the key enabler, the Telecom Park is expected to attract about 8 global and domestic component suppliers and service providers and create more than 30,000 jobs when it is in full operation. This Nokia Telecom Park will ensure that the Nokia India Chennai factory has a consistent supply of lowest total cost material and services from reliable, collaborative sources of global and local suppliers. Nokia Telecom Industry Park Construction update and facts •
Size - 210.87 acres
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External fencing around Nokia Telecom Industry Park - 5.7 km in length
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Area of main building: 30,748 m2
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Total amount of structural steel used in factory construction 2500 t
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Total Capacity of under ground water sump at factory 450 m3
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Project Safety target achieved - One Million man hours without Lost Time Injury
The Nokia Telecom Park also has made significant progress with 7 suppliers already signed up. These include Salcomp, Aspocomp, Foxconn, Perlos, Jabil, Laird and Wintek. Of these, 2 suppliers have already started shipping to Nokia Chennai viz., Salcomp and Perlos. The Park will strengthen Nokia's delivery capabilities with added efficiencies and flexibility. Nokia has been the engine of the investment train in Chennai's manufacturing corridor. Many electronics manufacturing companies have announced plans to come to the city since Nokia's establishment. The total impact of the Nokia SEZ can be measured only by an
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assessment of the actual potential realized – encompassing construction, direct employment and services opportunities that are sure to come in response to the rising headcounts. Since the launch, the Nokia facility and the Telecom Park have not only met the targets set at the beginning, but created an extremely bullish atmosphere in the Sriperumbudur manufacturing corridor. Nokia will continue to play a key and leading role in the development of this region.
Key Aspects That Are Kept In Mind While Manufacturing a Product
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Nokia Organization
Devices, responsible for developing the best device portfolio for the marketplace. Services & Software, reflecting our strategic emphasis on developing and growing our
offering of consumer Internet services and enterprise solutions and software. Markets, responsible for the management of our supply chains, sales channels and
marketing activities. Corporate Development Office, focuses on our strategy and future growth, and
provides operational support for integration across all the units. On April 1, 2009, Nokia’s Networks business group was combined with Siemens’ carrierrelated operations for fixed and mobile networks to form Nokia Siemens Networks, jointly owned by Nokia and Siemens and consolidated by Nokia.
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Future of Nokia The cellular phone market in India has been recording significant growth since the late 1990s and is the fastest growing in the world. Nokia, the world leader in cellular phone communications entered India in 1995. Since then the Nokia brand has been steadily growing and has gained wide acceptance in the Indian market. India is the third largest market for Nokia, in terms of its net sales as of 2006. Nokia is one of the most trusted brands in India and leads other cellular phone brands in terms of market share, advertising and customer service. The innovative technologies, user-friendly features and affordable prices contributed to Nokia's success in India. The case facilitates discussion on Nokia's brand building strategies in India. It also allows for discussion on the future of the Nokia brand and the cellular market in India.
Pedagogical Objectives • • • •
analyze the role of brand image in sustaining market leadership To analyze the competitive scenario in the cellular market in India To discuss the strategies of Nokia in India To analyze the localization strategy of Nokia as a major tool for gaining market leadership
To analyze the future of the Nokia brand in India We are discussing the impact of iPhone on the rest of the cellular handset and laptop ecosystem. Frank Levinson wrote an important piece when the iPhone was first announced, which you need to read for context. On RIM, we have said, that the target market (Prosumer, SmartPhone with Integrated Messaging) is very different from the iPhone (Consumer, SmartPhone with Media Player focus). Nokia, however, has a lot more overlap with iPhone’s target audience. iPhone’s innovations: 3 things – 1. The use of OSX – this choice empowers the device to be able to run Safari, mail and widgets. It continues to unify the Apple product line, not fragment it. 2. The use of a new consumer user interface (UI) and the deletion of so many buttons and choices (this was what we did about 16 years ago with Windows and 23 years ago 15
with the first Mac and now we are doing it again). 3. The realization that Moore’s law scaling of silicon is continuing and this makes the possibilities of integration infinite.
Nokia Becomes India Most Trusted Brand Been a presence in the collective consciousness of the Indian people, having helped establish India as one of the most exciting mobile technology regions on the planet. The recent emergence of sharable handsets such as the dust resistant Nokia 1208 with multiple phonebooks tailored for village life, encapsulates an approach to understanding communities and adapting technologies to adapt to suit the varying natures of communication. The Economic Times has reported that Nokia has earned the most trusted brand in India: "Following a stellar four-year run, the Finnish telecom brand has climbed 70 ranks to become India’s No 1 trusted brand, according to this year’s Most Trusted Brands survey. The survey was conducted nationwide across 12 cities, involving over 8,000 respondents across socioeconomic class, age and income groups." Carnegie Mellon University and Haas Business School at Cal held a one day conference on “The Mobile Future.” The conference featured a clutch of well-known researchers and industry people. The take away was that perhaps the mobile phone revolution has finally arrived in the USA. It was also interesting to see that very few speakers talked about the mobile revolution that has arrived in the rest of the world. While listening to the speakers I was thinking of last year’s GSMA’s conference in Macau when I got to listen to and his vision and strategy for mobile phones in Japan. Or, how the Warner Bros’ honcho finally admitted that perhaps they got it all wrong with music download music business. The one person who did draw the attention of the audience to what is happening in the rest of the world was Senior VP and CTO of Nokia. He pointed out that the mobile revolution was just getting started even with 3.5 billion mobile phones. He gave a very interesting historical perspective and said, “I am watching a movie I have seen three times.” He was referring to the mainframe phase of prior to 1984 where the value shifted from hardware to services, which was then followed by the mini-computer phase and finally the desktop PC revolution. The point he was making is that through these three phases he witnessed the diversity and 16
incomputable standards resulting in a notion of standard platform. This “standardization of platform” has not happened in the mobile space as yet. He also emphasized how mobile phones were different from computers in that they were a personal device that comes equipped with sensors. (He never really mentioned location-based services or Nokia’s acquisition of Navteq and that was very interesting. I wonder why there was no mention of Navteq considering it was a multi-billion dollar acquisition.) Dr. Iannucci made a very telling point when he said that with our techno-centric bias (referring to the US and Silicon Valley) we might miss out on how to serve the next billion people that are from emerging markets. What does mobility mean to people in these emerging cultures? That is the biggest challenge for innovation he added. He shared an interesting statistical tidbit that goes to show how strong Nokia is in other parts of the world other than the USA. Did you know that every second Nokia produces 17 mobile phones? The path to the future according to Dr. Iannucci has to be open and Nokia is open to innovators he stressed. (Just a few weeks ago Nokia launched Nokia Forums to woo developers and users.) While Dr. Iannucci spoke from the industry’s perspective, David Pogue of NY Times spoke from an American consumer user’s perspective and provided a whole different dimension to the future of mobile . Pogue opened the conference with his hilarious and entertaining speech. He had original video advertisement and musical tribute laced into his speech. Pogue’s speech came from a mobile consumer’s perspective, where he highlighted various service ranging from Grand Central to Cell Wave to iPhone. I videotaped Pogue’s speech that you can watch on YouTube. Pogue talks about the joys of using VOIP and how some telecom companies have failed to integrate their billing system (OSS is a huge problem for many telecos) at the backend. Pogue talks about mobile services like text-to-voice and Google’s cellular 911 services, where you get the information without any advertisements or costs. he recounts how iPhone was developed in complete secrecy. It was so secret that the CEO of Cingular (now AT&T) did not get to see the final version of the iPhone until 2 weeks before it was publicly launched. Watch the video clip to find out what was the real revolution the iPhone unleashed in the US. Pogue does a very funny and original musical tribute to the 17
iPhone or the “god phone.” He is a broadway guy after all like he reminded the audience. However, his video file clip got corrupted and cut short the musical tribute. And, I guess that is technology for us.
Type and Features of Nokia
NOKIA 6300
Brand: Retail Price:
Nokia Rs. 8200
BRAND NEW NOKIA 6300 HANDSET / MOBILE General Network GSM 900 / GSM 1800 / GSM 1900 Size Dimensions 106.4 x 43.6 x 11.7 mm, 56 cc Weight 91 g Display Type TFT, 16M colors Size 240 x 320 pixels, 31 x 42 mm Downloadable wallpapers screensavers Ringtones Type Polyphonic (64 channels) MP3 Customization Download Vibration Yes Memory
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Phonebook 1000 entries Photocall Call records 20 dialed, 20 received, 20 missed calls Card slot microSD (TransFlash) 7.8 MB of user memory Data GPRS Class 10 (4+1/3+2 slots), 32 - 48 kbps HSCSD Yes EDGE Class 10, 236.8 kbps 3G No WLAN No Bluetooth Yes, v2.0 Infrared port No USB Yes Pop-Port ? Messaging SMS MMS Email Instant Messaging Features Browser WAP 2.0/xHTML Games Yes + Downloadable, special offer Colors Silver, Black Camera 2 MP, 1600x1200 pixels, video(QCIF) - Java MIDP 2.0 - FM stereo radio - Push to talk - MP3/MP4/AAC/AAC+/eAAC+ player - Voice memo - Voice command - T9 - Calendar - Calculator - Built-in handsfree Battery Standard battery Li-Ion 860 mAh (BL-4C) Stand-by Up to 348 h Talk time Up to 3 h 30 min ONE YEAR NATIONAL WARRANTY
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Brand: Retail Price:
Nokia Rs. 24000
About this Product Brand New NOKIA GSM Mobile Phone Model No N95 -8GB With Manufacturer warranty Features : General Network HSDPA / GSM 850 / 900 / 1800 / 1900 Status : Available Size : Dimensions 99 x 53 x 21 mm, 96 cc Weight : 128 g Display Type : TFT, 16M colors Size : 240 x 320 pixels, 2.8 inches Ringtones Type : Polyphonic (64 channels), Monophonic, True Tones, MP3 Customization : Download Vibration : Yes Memory Phonebook : Practically unlimited entries and fields, Photocall Call records : Detailed, max 30 days Card slot : No 8 GB internal memory Data GPRS : Class 32, 107 / 64.2 kbps HSCSD : Yes EDGE : Class 32, 296 kbps DTM : Class 11, 177 kbps 3G HSDPA WLAN : Wi-Fi 802.11 b/g, UPnP technology Bluetooth : Yes, v2.0 with A2DP Infrared port : Yes USB : Yes, v2.0 miniUSB OS Symbian : OS 9.2, S60 rel. 3.1 Messaging : SMS, MMS, Email, Instant Messaging Browser : WAP 2.0/xHTML, HTML Games : Downloadable Order : now Colors : Black Camera : 5 MP, 2592 x 1944 pixels, Carl Zeiss optics, autofocus, video(VGA 30fps) 20
Flash, secondary CIF videocall camera Built-in GPS receiver A-GPS function Installed Maps application covering over 100 countries Dual slide design Java MIDP 2.0 MP3/AAC/AAC+/eAAC+/WMA player 3.5 mm audio output jack TV out Stereo FM Radio Organizer Office document viewer T9 Push to talk Voice dial/memo Built-in handsfree Battery : Standard battery, Li-Ion 1200mAH (BL-6F) Stand-by Up : to 280 h Talk time : Up to 6 h Standard accessories included 1 Yr Manufacturer warranty Image shown is indicative - We shall try to send the same color as shown - incase of same colour unavailability, we shall send the next best color available.
NOKIA N70 Brand: Retail Price:
Nokia Rs. 12995
About this Product BRAND NEW NOKIA N70 HANDSET / MOBILE GENERAL • Network: GSM900 / GSM1800 / GSM1900 • Form factor: Block • Internal Antenna SAR • Value: 0.5 W/Kg • Weight: 126 g (including battery) • Dimensions: 109 x 53 x 21.8 mm 21
DISPLAY • Type: Graphical • Colours: BLACK, SILVER • Size: 208 x 176 pixels MEMORY • Outgoing Calls: 10 • Received Calls: 10 • Lost Calls: 10 • Shared Memory: 35MB - RS-DV-MMC, hotswap • Total memory: 1GB RINGTONES • Polyphonic: Yes • 64 channels • Customization: Download NETWORKING • GPRS: Yes, Class 10 (4+1/3+2 slots) • Modem: Yes, 236.8 kbps • (EDGE USB: Yes • Bluetooth: Yes • WAP: Yes, 2.0 • Browser: Yes, xHTML/HTML • Infrared: No FEATURES • Vibration: Yes • SMS: Send / Receive • MMS: Send / Receive • Camera: Yes, 2 MP, 1600x1200 pixels • Video, flash • Secondary video call • VGA camera; Scenery, Portrait, Night, and Sports • Java: Yes • Games: Yes: 3D ; + downloadable • Clock: Yes • Alarm: Yes • Calculator: Yes • To-Do List: Yes • Voice Memo: Yes • T9: Yes • Multiple Numbers/Name: Yes • Handsfree: Yes • Five-way scroll key • Downloadable themes • Symbian OS 8.1a , Series 60 UI • Pop-Port with USB • Video calling and download • MP3/AAC/MPEG4 player 22
• Visual Radio • PIM including calendar, to-do list and printing - XpressTransfer BATTERY • Type: Li-Ion Amperage: 900 mAh • Standby Time: 260 hours • Talk Time: 3 hours 30 minutes
NOKIA 1200 Brand: Retail Price:
Nokia Rs. 1250
About this Product NEW NOKIA 1200 WITH ACCESSORIES AND VENDOR WARRANTY GENERAL • Network: GSM 900 / GSM 1800 SIZE • Dimensions: 102 x 44.1 x 17.5 mm, 67 cc • Weight: 77 g DISPLAY • Type: Monochrome graphics • Size: 96 x 68 pixels, 29 x 23 mm • Themes and wallpapers RINGTONES • Type: Polyphonic (32 channels) Customization Download • Vibration: Yes MEMORY • Phonebook: 200 entries • Call records: 20 dialed, 20 received, 20 missed calls • Card slot: No • 4 MB user memory FEATURES • Messaging: SMS 23
Browser: No Games: 3 built in Colors: Blue, Black (depends on stock availability) Camera: No T9 Calendar Calculator Currency converter Built-in handsfree BATTERY • Standard battery: Li-Ion 700 mAh (BL-5CA) • Stand-by: Up to 390 h • Talk time: Up to 7 h WARRANTY 6 months vendor carry-in repair warranty offered on the handset and not on the accessories • • • • • • • • •
NOKIA 3120
Brand: Retail Price:
Nokia Rs. 8050
About this Product NEW NOKIA 3120 CLASSIC MOBILE PHONE WITH MANUFACTURER WARRANTY About the Product: go to top General 2G Network GSM 850 / 900 / 1800 / 1900 3G Network UMTS 850 / 2100 UMTS 850 / 1900 Announced 2008, February Status Available. Released 2008, April Size Dimensions 111 x 45 x 13 mm, 60 cc Weight 85 g Display Type TFT, 16M colors Size 240 x 320 pixels, 2.0 inches Ringtones Type Polyphonic, MP3 Customization Download Vibration Yes ?Memory Phonebook Yes, 2000 entries Call records 20 dialed, 20 received, 20 missed calls 24
Card slot microSD (TransFlash), up to 8GB, hotswap, buy memory - 24 MB internal memory Data GPRS Class 32 HSCSD No EDGE Class 32 3G Yes, 384 kbps WLAN No Bluetooth Yes, v2.0 Infrared port No USB Yes, v2.0 microUSB ?Features Messaging SMS, MMS, Email, Instant Messaging Browser WAP 2.0/xHTML, HTML Games Yes, order now Colors Graphite, Plum/Powder White, Deep Red, ?Chestnut Brown Camera 2 MP, 1600x1200 pixels, video(CIF); secondary VGA video call camera Java MIDP 2.0 Stereo FM radio MP3/MP4/AAC/AAC+/eAAC+ player Calendar Calculator Voice memo Built-in handsfree T9 Battery Standard battery, Li-Ion 1000 mAh (BL-4U) Stand-by Up to 290 h Talk time Up to 3 h 30 min Image shown is indicative We shall try to send the same color as shown - incase of same colour unavailability, we shall send the next best color available. Standard Contents as per Manufacturer SPECS 1 year manufacturer warranty
Brand: Retail Price:
Nokia Rs. 49000
About this Product GENERAL • 2G Network: GSM 900 / 1800 / 1900 • 3G Network: UMTS 2100 SIZE • Dimensions: 109 x 45.6 x 14.6 mm, 65 cc • Weight: 150 g DISPLAY • Type: OLED, 16M colors • Size: 240 x 320 pixels, 2.0 inches 25
Scratch-resistant glass Living wallpapers Downloadable wallpapers, screensavers RINGTONES • Type: Polyphonic (64 channels), MP3, video ringtones • Customization Download • Vibration: Yes MEMORY • Phonebook: 1000 entries, Photocall • Call records: 20 dialed, 20 received, 20 missed calls • Card slot: No • 1 GB of user memory DATA • GPRS: Class 10 (4+1/3+2 slots), 32 - 48 kbps • HSCSD: Yes • EDGE: Class 10, 236.8 kbps • 3G: Yes, 384 kbps • WLAN: No • Bluetooth: Yes, v2.0 • Infrared port: No • USB: Yes, microUSB OTG FEATURES • Messaging: SMS, MMS, Email • Browser: WAP 2.0/xHTML • Games: Inbuilt + Downloadable • Colors: Black • Camera: 3.15 MP, 2048x1536 pixels, autofocus, video(VGA @ 15fps) • Java MIDP 2.1 • MP3/AAC/eAAC player • Voice memo • T9 • Calculator • Built-in handsfree • Durable stainless steel covers • Turn-to-mute BATTERY • Standard battery: Li-Ion 1000 mAh (BL-4U) • Stand-by: Up to 300 h • Talk time: Up to 3 h WARRANTY 6 months vendor carry-in repair warranty offered on the handset and not on the accessories • • •
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NOKIA E65 Brand: Nokia Retail Rs. 16995 Price: About this Product NEW NOKIA E65 WITH 1 GB MEMORY CARD, ACCESSORIES AND MANUFACTURER WARRANTY GENERAL • Network: UMTS / GSM 850 / 900 / 1800 / 1900 SIZE • Dimensions: 105 x 49 x 15.5 mm • Volume: 74 cc • Weight: 115 g DISPLAY • Type: TFT, 16M colors • Size: 240 x 320 pixels • Five-way scroll key • Downloadable themes RINGTONES • Type: Polyphonic, MP3 • Customization Download • Vibration: Yes MEMORY • Phonebook: Yes • Call records: Yes • Card slot: microSD (TransFlash), hotswap • 50 MB shared memory DATA • GPRS: Class 32 • HSCSD: Yes • EDGE: Class 32, 296 / 177.6 kbits • 3G: Yes, 384 kbps • WLAN: Wi-Fi 802.11b/g, VoIP over WLAN 27
Bluetooth: Yes, v1.2 Infrared port: Yes USB: Yes, Pop-Port FEATURES • OS: Symbian OS 9.1, Series 60 UI • Messaging: SMS, MMS, Email, Instant Messaging • Browser: WAP 2.0/xHTML, HTML • Games: Inbuilt and downloadable • Colors: Red, Black (depends on availability) • Camera: 2 MP, 1600x1200 pixels, video(CIF) • Java MIDP 2.0 • Push to talk • MP3/AAC/MPEG4 player • Office applications • T9 • Voice command/memo • PIM including calendar, to-do list and printing • Integrated handsfree BATTERY • Standard battery: Li-Ion 1000 mAh • Stand-by: Up to 265 h • Talk time: Up to 6 h WARRANTY One-year manufacturer warranty offered at Nokia authorised service centers • • •
NEW NOKIA E90 Brand: Nokia Retail Rs. 34700 Price: About this Product NEW NOKIA E90 WITH 128MB CARD, ACCESSORIES AND MANUFACTURER WARRANTY GENERAL • Network: HSDPA / GSM 850 / 900 / 1800 / 1900 SIZE • Dimensions: 132 x 57 x 20 mm 28
Volume: 140 cc Weight: 210 g DISPLAY • Type: TFT, 16M colors • Size: 800 x 352 pixels • Second external 16M colors display (240 x 320 pixels) • Full QWERTY keyboard RINGTONES • Type: Polyphonic (64 channels) • MP3 • Vibration: Yes MEMORY • Phonebook: Yes • Call records: Yes • Card slot: microSD (TransFlash), hotswap • 128 MB shared memory • 330 Mhz ARM processor DATA • GPRS: Yes • HSCSD: Yes • EDGE: Yes • 3G: HSDPA, 3.6 Mbps • WLAN • Wi-Fi: 802.11b/g • Bluetooth: Yes, v2.0 • Infrared port: Yes • USB: Yes, v2.0, miniUSB FEATURES • OS: Symbian OS v9.2, S60 rel. 3.1 • Messaging: SMS, MMS, Email, Instant • Messaging Browser: WAP 2.0/xHTML, HTML • Games: Yes + Java downloadable • Colors: Red, Mocha (depends on availability) • Camera: 3.2 MP, 2048x1536 pixels, autofocus, video(VGA 30fps), flash; secondary QCIF videocall camera • GPS receiver (built-in maps) • Push to talk • Video calling • Java MIDP 2.0 • MP3/M4A/AAC/eAAC+/WMA player • FM radio • Voice command/dial • PIM including calendar, to-do list and printing • Document viewer • Photo/video editor • Integrated handsfree BATTERY • Standard battery: Li-Ion 1500 mAh • •
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Stand-by: Up to 330 h Talk time: Up to 5 h WARRANTY One year manufacturer repair warranty offered on the handset at authorized service centers • •
NOKIA E90 Brand: Nokia Retail Rs.18995 Price: About this Product NEW NOKIA N82 WITH 2 GB CARD, ACCESSORIES AND VENDOR WARRANTY GENERAL • Network: HSDPA / GSM 850 / 900 / 1800 / 1900 SIZE • Dimensions: 112 x 50.2 x 17.3 mm, 90 cc • Weight: 114 g DISPLAY • Type: TFT, 16M colors • Size: 240 x 320 pixels, 2.4 inches RINGTONES • Type: Polyphonic, Monophonic, True Tones, MP3 • Vibration: Yes MEMORY • Phonebook: Practically unlimited entries and fields • Photocall • Call records: Detailed, max 30 days • Card slot: microSD, hot swap • 100 MB internal memory • ARM 11 332 MHz processor • 256 MB NAND Memory • 128 MB SDRAM Memory ~ 90 MB Free • Executable RAM Memory DATA • GPRS: Class 32, 107 kbps • HSCSD: Yes • EDGE: Class 32, 296 kbps; DTM Class 11, 177 kbps • 3G: HSDPA • WLAN • Wi-Fi: 802.11 b/g, UPnP technology 30
Bluetooth: Yes, v2.0 with A2DP Infrared port: No USB: Yes, v2.0 microUSB FEATURES • OS: Symbian OS 9.2, S60 rel. 3.1 • Messaging: SMS, MMS, Email, Instant Messaging • Browser: WAP 2.0/xHTML, HTML • Games: Downloadable • Colors: Silver • Camera: 5 MP, 2592 x 1944 pixels, Carl Zeiss optics, autofocus, video(VGA 30fps), xenon flash; secondary CIF videocall camera • Built-in GPS receiver • A-GPS function • Motion sensor (with UI auto-rotate) • Installed Maps application covering over 100 countries • Java MIDP 2.0 • MP3/AAC/AAC+/eAAC+/WMA player • Video player • 3.5 mm audio output jack • TV out • Stereo FM Radio • Organizer • Office document viewer • T9 • Push to talk • Voice dial/memo • Built-in handsfree BATTERY • Standard battery: Li-Ion 1050 mAh (BP-6MT) • Stand-by: Up to 225 h • Talk time: Up to 4 h 20 min WARRANTY 6 months vendor carry-in repair warranty offered on the handset and not on the accessories CONTENTS This handset is available with a 2 GB card, charger, battery and other standard accessories • • •
Nokia 1200
31
Brand: Retail Price:
Nokia Rs. 1324
About this Product Description: The Nokia 1200 introduces the industry's first call time tracking application and multiphonebooks to make phone sharing simpler and more efficient. Key Features: • Access phone features quickly and conveniently with One Touch shortcut keys for SMS messaging, calendar, contacts, loudspeaker, and flashlight Control your talk time. Time Tracker allows you to pre-set call times and disconnects calls when the pre-set time is up. • Manage your calling costs. Cost Tracker* lets you pre-set the cost limit for calls. • Monitor your pre-paid balance. With Pre-paid Tracker* you can view your pre-paid account balance information whenever you need Personalize your phone with MP3-grade or 32-voice polyphonic ringtones. • Extend your talk time. Use the power saver mode to help conserve power when your phone is idle. • Brighten up your surroundings. With a touch of a key, your phone can be used as a flashlight Get the right sound for any environment with adjustable ringtone and call volume. • Hear more of your calls. Noise cancellation filters decrease background noise for improved sound quality. • Keep your phone clean with the dust-resistant keypad. *This feature is network dependant. Operating Frequency EGSM 9001800 GSM 8501900 Size Volume: 67.3 cc Weight: 77 g with battery Dimensions: 102 x 44.1 x 17.5 mm Display 96 x 68 pixel black and white display with an active area of 28.96 X 23.07 mm Vibrant, green display backlight can be used as a flashlight User Interface Voice features Integrated handsfree loudspeaker Support for HR except US band, FR, EFR, and full AMR voice codecs Digital services Over the air OTA ringtones via SMS Ringtones Personalize your phone with pre-installed MP3-grade or 32-voice polyphonic ringtones Games
32
Full-sized animated screensavers Use your phone as a flashlight get quick access with the One Touch key Made from robust, durable materials with a non-slip backing to keep your phone firmly in your hand Comes with: Nokia 1200 Nokia Battery BL-5CA Nokia Standard Charger AC-3 User guide Free Car Charger. 1 year manufacturer warranty. Image shown is indicative - We shall try to send the same color as shown - incase of same colour unavailability, we shall send the next best
BRAND
NOKIA
RETAIL PRICE
2050
About this Product FEATURES & DETAILS Size Dimensions 104.2 x 43.8 x 17.8 mm, 69 cc Weight 80 g Display Type CSTN, 65K colors Size 128 x 160 pixels, 35 x 28 mm - Themes and wallpapers Ringtones Type Polyphonic (32 channels) Customization Download Vibration Yes Memory Phonebook Yes Call records 20 dialed, 20 received, 20 missed calls - 8 MB user memory Features Messaging SMS (up to 250), EMS, Instant Messaging Browser Games Snake Xenzia, Beach Rally, Soccer League Colors Red, Black Torch 33
FM radio - T9 Calendar - Calculator - Currency converter - Voice memo - Built-in handsfree 1 YR NOKIA INDIA WARRANTY COLOUR MAY VARY STANDARD CONTENTS AS PER MANUFACTURER
Brand: Retail Price:
Nokia Rs. 3640
About this Product NOKIA 2600 CLASSIC CAMERA FM BLUETOOTH WITH 1 YEAR MANUFACTURER WARRANTY Nokia 2600C Product Specifications : Network GSM 900 / GSM 1800 Dimensions 109.6 x 46.7 x 12 mm, 63.5 cc Weight 73.2 g Display Type TFT, 65K colors Display Size 128 x 160 pixels - 5-way navigation key Ringtones Type Polyphonic, MP3 Vibration Yes Phonebook Memory Yes, 1000 entries Call records 20 dialed, 20 received, 20 missed calls Card slot No - 10 MB user memory GPRS Yes HSCSD No EDGE Yes 3G No WLAN No Bluetooth Yes, v2.0 Infrared port No USB No Messaging SMS, MMS, Email Browser WAP 2.0/xHTML Games Yes Colors Black, Orange, Blue, Beige Camera VGA, 640x480 pixels, video - Java MIDP 2.0 Stereo FM radio - Calendar - Calculator - Voice memo Expense manager - T9 Battery Standard battery, Li-Ion 870 mAh (BL-5BT) Stand-by Up to 580 h Talk time Up to 6 h Warranty One Year Manufacturer Warranty 34
Standard contents as per Manufacturer Image shown is indicative - We shall try to send the same color as shown - incase of same color unavailability, we shall send the next best color available
Nokia 3110 Brand: Retail Price:
Nokia Rs. 4950
About this Product Nokia 3110 Classic Handset with 1 YEAR MANUFACTURER WARRANTY SIZE Dimensions : 108.5 x 45.7 x 15.6 mm, 72 cc Weight : 87 g DISPLAY Type : TFT, 256K colors Size : 128 x 160 pixels - 5-way navigation key - Downloadable wallpapers, screensavers RINGTONES Type : Polyphonic (64 channels), MP3, AAC Customization : Download Vibration : Yes MEMORY Phonebook : Yes Call records : 20 dialed, 20 received, 20 missed calls Card slot microSD (TransFlash), up to 2GB, up to 2 GB supported - 9 MB internal memory DATA GPRS : Class 10 (4+1/3+2 slots), 32 - 48 kbps HSCSD : Yes EDGE : Class 10, 236.8 kbps Bluetooth : Yes, v2.0 (with A2DP) Infrared port : Yes USB : miniUSB
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FEATURES . Messaging : SMS, MMS, Email Browser : WAP 2.0/xHTML Games : Downloadable Colors : Grey Camera : 1.3 MP, 1280x960 pixels, video - Java MIDP 2.0 - Stereo FM radio - MP3/MP4/AAC+/3gp/WMA player - Calendar - Calculator - Built-in hands free - Voice memo - Voice command - T9 - Built-in hands free - Push to talk BATTERY - Standard battery, Li-Ion 1020 mAh (BL-5C) - Stand-by Up to 380 h Talk time Up to 3 h 30 min - 1Year Manufacturer Warranty - Standard contents as per Manufacturer. - Image shown is indicative - We shall try to send the same color as shown - incase of same colour unavailability - we shall send the next best color available
NOKIA-N70
Brand: Nokia Retail Rs. 10000 Price: About this Product GENERAL • Network: GSM900 / GSM1800 / GSM1900 36
Introduced: 2005 Q2 Form factor: Block Internal Antenna SAR Value: 0.5 W/Kg Weight: 126 g (including battery) Dimensions: 109 x 53 x 21.8 mm DISPLAY • Type: Graphical • Colours: BLACK, SILVER • Size: 208 x 176 pixels MEMORY • Outgoing Calls: 10 • Received Calls: 10 • Lost Calls: 10 • Shared Memory: 35MB - RS-DV-MMC, hotswap • Total memory: 1GB RINGTONES • Polyphonic: Yes • 64 channels • Customization: Download NETWORKING • GPRS: Yes, Class 10 (4+1/3+2 slots) • Modem: Yes, 236.8 kbps • (EDGE USB: Yes • Bluetooth: Yes • WAP: Yes, 2.0 • Browser: Yes, xHTML/HTML • Infrared: No FEATURES • Vibration: Yes • SMS: Send / Receive • MMS: Send / Receive • Camera: Yes, 2 MP, 1600x1200 pixels • Video, flash • Secondary video call • VGA camera; Scenery, Portrait, Night, and Sports • Java: Yes • Games: Yes: 3D ; + downloadable • Clock: Yes • Alarm: Yes • Calculator: Yes • To-Do List: Yes • Voice Memo: Yes • T9: Yes • Multiple Numbers/Name: Yes • Handsfree: Yes • Five-way scroll key • Downloadable themes • Symbian OS 8.1a , Series 60 UI • • • • • •
37
• • • • • •
Pop-Port with USB Video calling and download MP3/AAC/MPEG4 player Visual Radio PIM including calendar, to-do list and printing – XpressTransfer
BATTERY • Type: Li-Ion Amperage: 900 mAh • Standby Time: 260 hours • Talk Time: 3 hours 30 minutes
38
CHAPTER 4 OBJECTIVES
39
OBJECTIVES To study the brand awareness of Nokia. To study the brand preference of Nokia. To evaluate the application of Marketing Mix (4p’s) by NOKIA in India to retain old customers and also to attract new consumers in India. To study the buying behavior of customers. To study the satisfaction level of customers from Nokia’s after sales services
40
CHAPTER 5 SCOPE OF STUDY
41
SCOPE OF STUDY To evaluate the marketing strategy of Nokia in accordance to its brand awareness & brand preference in the market. Also to study Nokia’s product preference among customers in comparison to the new niche players in the market. The pace of growth of the rapidly expanding Indian telecom industry continues to enthrall everyone. With six million subscribers being added every month and the subscriber base growing at a rate 82.2 per cent per annum, this is one country no handset manufacturer can afford to take eyes off. The fact that the country has the lowest telecom tariffs in the world and that the sub-$100 handsets are the most in demand hasn’t deterred anyone and the world’s largest handset manufacturing companies are here trying to carve out as large a market share as they can. The potential is huge: mobile penetration in India is still a paltry 13 per cent, which means that the scope for growth is immense. Keeping this in mind all the leading companies have set up their manufacturing facilities in the country. Says Pankaj Mahendroo, president Indian Cellular Association: “The potential of the handset market has the players constantly re-jigging their strategies to get the largest share possible of the next billion customers. It is also pertinent to mention that the model that they follow in India isn’t necessarily reflective of their global strategy.”
Major Players The major players in the handset market today are Nokia, LG, Motorola, Samsung, Sony Ericsson and LG. Nokia is by far the largest player in the industry commanding a 49 per cent share in the business, followed by LG and Motorola at 15 and 14 per cent, and Samsung, Sony Ericsson and others accounting for the rest.
42
Nokia is the only player that is competing across the spectrum in all categories but others such as Sony Ericsson and Samsung have decided that while they would have some models catering to the lower-end of the market their emphasis is on the mid- to upper-end customers, who look for value for money deals and not just cheap ones. The successful management of technology and innovation has become one of the most critical aspects of business today. To recognize how important the management of technology and innovation (MTI) is, one simply has to look at the impact of those skills on many of the leading firms around the world. Here is a brief overview of one of the world’s leading technology firms, Nokia.
Indian Strategy Marketing Strategy is . . . "a simple statement of your overall plan for attracting prospects, and converting them into first-time customers, and then lifetime, repeat customers." The marketing strategy is shaped by overall business goals. It includes a definition of the business, a description of products or services, a profile of target users or clients, and defines company’s role in relationship to the competition. The marketing strategy is essentially a
43
document that you use to judge the appropriateness and effectiveness of specific marketing plans. To put it another way, marketing strategy is a summary of company's products and position in relation to the competition; sales and marketing plans are the specific actions to achieve the goals of marketing strategy. The marketing strategy provides goals for marketing plans. It tells us where we want to go from here. Strategy is all about how to build customer loyalty? How can you increase sales to existing customers (more frequent use or buys, selling a broader product line to them) or new customers (existing and new products)? How can you penetrate into new areas profitably?
Vision “Our vision is a world where everyone can be connected” Everyone has a need to communicate and share. Nokia helps people to fulfill this need and they help people feel close to what matters to them. They focus on providing consumers with very human technology – technology that is intuitive, a joy to use, and beautiful. We are living in an era where connectivity is becoming truly ubiquitous. The communications industry continues to change and the internet is at the center of this transformation. Today, the internet is Nokia's quest. Nokia's strategy relies on growing, transforming, and building the Nokia business to ensure its future success.
44
Distribution Nokia, with a network of 95,000 outlets in India, has established a distinct distribution edge over its competitors. Shivakumar claims that 50,000 of them are exclusive Nokia brand stores. Besides the original distribution arrangement through the extensive network of HCL, Nokia has also commenced its direct distribution efforts. Sunil Dutt, director of sales, observes, “We decided that we would address some markets jointly, and that we would individually address some of the other markets”. When mobile phone users graduate to higher-priced handsets, they want specialised attention from retailers. Realising this need, all kinds of outlets that are selling Nokia mobile phones along with other products, like STD booths, stationery stores, grocery shops, have now started setting up shops exclusively for mobile phones. Nokia is also establishing ‘concept stores’ in major Indian cities. Dutt explains, “At our concept stores, we have tried to bring to life all the experiences that we offer at Nokia experiential zones across the world”. If the focus on product attributes enabled Nokia to establish strong brand recall among consumers, its ability to capitalise on the boom in handset sales from 2002 onwards was as much the result of its distribution strategy, modelled on that of the larger FMCG firms. At its apex is the national distributor, which is HCL Infosystems for GSM handsets (CDMA handsets are still largely distributed through service providers). Under the national distributor are redistributing stockists who, in turn, supply handsets to over 10,000 outlets countrywide. The outlets include over 200 Nokia Priority Dealers (exclusive or shops-in-shop) who participate in the corporation’s brand programmes.
45
As a result of this saturation coverage, Nokia today is present in every town where mobile services are available, and its distribution model is being emulated by competitors. All of these will be reinforced as growth in the cellular services market accelerates. Today, the market for new subscriptions is growing at 2 million a month, thanks to tariffs that have dropped steeply. And with handset prices having fallen 45 to 50 per cent since 1995, after reductions in import duties from 27 to 5 per cent and sales tax from 16 to 4 per cent, Nokia intends to saturate the market over the next few months. Against the 19 GSM and three CDMA models that are currently available, Nokia plans to launch over 20 new products in India over the next year, including seven CDMA handsets.
Marketing Mix (4P’s) The Marketing Mix model can be used by marketers as a tool to assist in defining the marketing strategy. Marketing managers use this method to attempt to generate the optimal response in the target market by blending 4 variables in an optimal way. It is important to understand that the Marketing Mix principles are controllable variables. The Marketing Mix can be adjusted on a frequent basis to meet the changing needs of the target group and the other dynamics of the marketing environment. Combination of marketing elements used in the sale of a particular product. The marketing elements center around four distinct functions, sometimes called the Four Ps: product, price, place (of distribution), and promotion. All these functions are considered in planning a marketing strategy, and any one may be enhanced, deducted, or changed in some degree in order to create the strategy necessary to efficiently and effectively sell a product.
46
The term marketing mix refers to the four major areas of decision making in the marketing process that are blended to obtain the results desired by the organization. The four elements of the marketing mix are sometimes referred to the four Ps of marketing. The marketing mix shapes the role of marketing within all types of organizations, both profit and nonprofit. Each element in the marketing mix product, price, promotion, and place consists of numerous sub elements. Marketing managers make numerous decisions based on the various sub elements of the marketing mix, all in an attempt to satisfy the needs and wants of consumers.
Product
Historically, the thinking was: a good product will Functionality; sell itself. However there are no bad products Appearance;
Quality; Packaging;
anymore in today's highly competitive markets. Plus Brand; Service; Support; there are many laws giving customers the right to Warranty. send back products that he perceives as bad. Therefore the question on product has become: does the organization create what its intended customers want? Define the characteristics of your product or service that meets the needs of your customers. Price
List
Price;
Discounts;
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How much are the intended customers willing to pay? Here we decide on a pricing strategy - do not let it just happen! Even if you decide not to ask (enough) money for a product or service, you must realize that this is a conscious decision and forms part of the pricing strategy. Although competing on Financing;
Leasing
price is as old as mankind, the consumer is often still Options; Allowances. sensitive for price discounts and special offers. Price has also an irrational side: something that is expensive must be good. Permanently competing on price is for many companies not a very sensible approach.
Locations;
Logistics;
Channel
members;
Channel
Motivation;
Available at the right place, at the right time, in the right quantities? Some of the recent major changes Place in business have come about by changing Place. Market Coverage; Service Think of the Internet and mobile telephones. Levels; Internet; Mobile.
Promotion
Advertising;
Public
(How) are the chosen target groups informed or Relations; Message; Direct educated about the organization and its products? Sales;
Sales;
Media;
This includes all the weapons in the marketing Budget. armory - advertising, selling, sales promotions, Direct Marketing, Public Relations, etc. While the other three P's have lost much of their meanings in 48
today's markets, Promotion has become the most important P to focus on.
The function of the Marketing Mix is to help develop a package (mix) that will not only satisfy the needs of the customers within the target markets, but simultaneously to maximize the performance of the organization.
CHAPTER 6 METHODOLOGY 49
METHODOLOGY OF THE STUDY During my dissertation project, I have followed two methods:
Primary method of data collection In this method I have used mainly the questionnaire method.a set of questions was given to the customers visiting various nokia care centres, nokia priority dealers and other nokia outlets.
Secondary method of data collection
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Secondary data consists of information that already exists somewhere and may have been collected for a different purpose. It provides a starting point for research and offers the advantage of lower cost and quicker availability. The sources of secondary data are:-
•
Internet
•
Journals of ICFAI University
•
Case studies
•
Articles from different magazines like – Business India, Business World and Business Today etc.
•
Newspaper articles from – Brand Equity, Economic Times etc.
Based on the above information obtained from the above sources, concepts were developed on which analysis was made.
Limitations Time constraint is a major problem in this project. The work is based on only the information fathered from the websites, journals and magazines.And the information collected through questionnaire may suffer from biasness of respondents and their inefficiency to answer.
Price
51
Nokia`s strategy as of pricing is very simple. They are trying to target everyone from a 12 year old teenager to 60 yr old man. Their pricing fits the pocket of everyone from a middle class income family to the super premium league. The base model of Nokia in India as of now is Nokia 1200 which is sold at a price of Rs 1,350 appx. Whereas the costliest model of Nokia commands a price of 50,000 + Indian Rs .Nokia has a very unique approach towards pricing in south east Asia especially India where a new product when launched is sold at a very high price but as and when the time passes by they reduce these prices considerably. It helps the company to maximize its profits initially and in later parts of product cycle the phone is sold at only variable cost plus profit. The company has divided its range on the basis of price as follows Below 5000- base products. 5,000—30,000---- products with few unique features and latest technology 20-000---- 50,000---- mobiles with cutting edge technology Initially the Nokia products are priced at a premium range in order to skim the market but in later stages in order to penetrate in to the market deeper the company reduces its prices, generally this happens after six months of the launch. In terms of Pricing Nokia products are bit on the higher side if we compare it with competitor products. Here, even as price continues to be a significant factor for determining the choice of handset or service provider, the value equation, according to Sanjay Behl, marketing head of Nokia India, is even more imperative. Nokia found success with its ‘Made in India’ Nokia 1100, which incorporated unique features such as a torchlight, a dust-resistant keypad and an antislip grip to appeal to the semi-urban markets. Importantly, Behl says that even applications and software — such as T9 or language interface and text input — have to be customized to meet consumer needs.
52
Place At Nokia, they like to make customer’s buying experience as convenient as using their mobile phones. Nokia has a retail chain across the country, to meet all the mobile phone needs. The chain consists of exclusive flagship stores and important mobile phone shops in all major Indian cities. •
NOKIA PROFESSIONAL CENTRES: These are Nokia flagship stores that offer a full range of Nokia mobile phones and accessories in an international retail environment, which helps the customers in their decision making. NPCs also provide "Nokia Care", their branded after sales services, provided by specially trained staff. The NPC is truly a one-stop centre for all your mobile phone needs. 53
•
NOKIA PRIORITY DEALERS: These key outlets allow the company to come closer to the customers. Spread across the country, and expanding rapidly in terms of reach, the NPD chain ensures that you get the latest Nokia mobile phones and genuine accessories, quickly and conveniently.
Distribution Channel of Nokia in India Nokia has a very simple distribution channel in India and it’s very similar to its competitors and is working to the advantage of the industry as a whole. As of the distribution channel company has used different networks to reach to the masses and their distribution channel is •
PRIORITY DEALERS: They are the people who represent the company. They have all the latest models and have information about future introductions by the company. Here customers normally find the personnel of nokia. In India the total number of priority dealers is around 8 only and they are located at major cities of the country.
•
SHOWROOMS: The Company makes sure that their products are available at leading electronics shops like Agrani Switches, Airtel shops etc. They are the most crucial part of the supply chain. The company has normally Tie up with these chain of retailers who display and sell the models of Nokia and also act as a place of service stations as their trained personnel are trained by Nokia staff
•
RETAILERS: They normally form the lower end of the distribution chain. They sell the max volume of the mobile phones for the company. The are located at different strategic locations and customers mostly purchase these from here only.
•
GREY MARKET: It’s a very important distribution channel used by the company. Nokia India`s operation may not be using this channel as its illegal sorts but lots of Nokia’s products are available in these markets .We can understand the volume by the fact that grey market sells 75% of the total turnover of the mobile phones sold 54
Nokia, a leader in India's US$2.5 billion mobile phone market, is built a unit in Chennai. The manufacturing unit will be Nokia’s tenth mobile device production facility globally. They have selected Chennai to be the location for the factory because of the availability of skilled labor, friendly business environment, and support from the government, good logistics connections and overall cost-efficiency.
Promotion Nokia is a very techno savvy and market savvy and friendly company. As of the advertisement expenditures, Nokia spends maximum amount on advertising as compared to its competitors and is closely followed by Samsung. The company uses mix of Public relations, promotions, advertising and personnel selling and the major focus is on the advertising. The company spends 50 %of its total revenue on advertisements and the rest in other tools. Nokia has been ranked as one of the top 5 brands in world telecommunication and in mobile industry it holds the premier position in terms of brand recall, customer satisfaction etc. Different advertisement campaigns have been launched from time to time by Nokia and more often at the time of launch of a new model.
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•
PRINT CAMPAIGNS: The thing to observe in their advertisement is that all their campaigns are targeted at youth or at professionals which form the core of all the campaigns. The Nokia hasn`t kept using particular colors in their campaigns but they have used a mix of it - yellow in case of 8310 ,red in case of 8810. But one thing is common that is they are flashy, very attractive and attention garners. Their partner Bates Advertising company in India has done a wonderful job. Another thing observed is that their campaigns in print target more on product features that is that their campaigns have product centric appeals.
•
ADVERTISEMENTS IN TV`S: We have observed that strategy in television is entirely different when Nokia decides to start its marketing initiative on TV. The focus is more on emotional appeal and the most commonly appeal used by Nokia is the life style .who can forget the soup ad of Nokia and their latest campaign on Nokia 8810. The most preferred channel in India for Nokia is CNBC followed by star and then SONY
•
PUBLIC RELATIONS: Mostly it is done by South East Asia operations and it deals with printing of articles in magazines which mainly deal with business, leisure and newspapers. The articles are mainly written by prominent personalities about their product and its features. Another form of public relations being used is the use of bollywood stars. Nokia has sponsored certain scenes in few movies which are targeted at upper class with the actors possessing the latest models of Nokia. It is a very successful tool and has helped Nokia in building the brand name.
•
PROMOTION CAMPAIGNS: Promotions are normally done by sponsoring the events which are mostly related to sports and games like golf, Polo, Cricket And sponsoring of other events like fashion shows, movies, Co promotions Etc. This tool has been second most preferred tool used by Nokia in India. 56
From Product Centric To Solutions Centric (Strategy) In a major shift from its product-centric strategy that it has successfully run with for years, Nokia has decided to become solutions-centric. What it's beginning to do in India - its second largest market after China - reflects a global shift in strategy. Devinder Kishore, Director Marketing, Nokia India, says, "We are moving into selling solutions. Devices will not be the only thing any longer. Over the next three-to-six months, we will be offering combinations of products and services and #8230; there will be lots of services." For example, the just-launched Nokia 6110 Navigator whose integrated GPS offers location-based services to the consumer, besides 3G, multimedia and camera features. While GPS is also integrated with Nokia N95, N82, E90, and S60 and Series 40 devices via Bluetooth, Kishore says the 6110 sets off the bundled solutions rollout. The strategic shift is built on Nokia's bid to retain consumers over their lifetimes. It therefore extends to very clear consumer identification. A major global study by Nokia has thrown up a segmentation model outlining 12 types of consumers - common to all markets looking for very different things from their mobile experience. "Our research shows that our consumers are not cut by age or price, but choose by aspiration and involvement with the mobile category," says Kishore. The 12 segments have been distributed under four consumer categories - Live, Achieve, Connect and Explore. The 'Live' category is aspirational for whom the handset is a lifestyle accessory. Nokia Xpress Music targets this category. The 'Achieve' category wants products and services that help with the achievement endeavour. Nokia's E-Series targets this category. 'Connect' is made up of simple "connectivity and progressive simplicity" users. The 'Explore' category loves technology, is fairly global, individual, but loves to share discovery. The N-Series targets Explore consumers. Nokia's product philosophy is guided by the Flow, Wow and Show aspects of mobile phone experiences. 57
With 'Flow' the product works just the way the consumer likes it (example, E-Series). The 'Wow' product creates such a strong emotional response that it feels almost magical (NSeries). The 'Show' product appears "simply beautiful and just for me." By pushing different combinations of these three aspects within each consumer category, Nokia's attempt is to create four unique impressions
Advertisement Strategy The new categorisation requires differentiated communication - Nokia's advertising varies, according to the categories, from a global look and feel to totally local messages. The NSeries and Xpress Music campaigns may be more global, but 'entry level' ads - such as the one where the worried wife uses the neighbour's Nokia to talk to her husband and son, or where the bus battery dies and Nokia comes to the rescue - create a different connect. Using Shah Rukh Khan as brand ambassador is something new for a brand that has all along talked leadership and technology. "He has a pan-India appeal and in smaller markets, a huge connect" Kishore points out. "He's tech savvy and comfortable talking about Nokia, which he uses. We took a calculated shot on SRK helping us explode the rural market for us. “Nokia’s media planning tries to ensure that targeted category consumers get to see the ads meant for them, through a selection of different channel clusters.” For N95, we advertise on Discovery, English movie channels, select news channels. For entry level, we would target a Doordarshan sponsorship on one-day cricket. We put big bets on the 20:20 matches, feeling that youth would respond well. Cricket is watched by all our consumer categories," Kishore explains. Beyond advertising, Nokia is trying to create more touch points through its concept stores, already opened across several major metros (Mumbai is still to see one, though) and cities, and a showcasing of its higher end products via malls and road shows.
58
In the meanwhile, this market leader takes product complaints in its stride. There have been complaints, for example, of its N-Series phones hanging. "Yes, and we are working to fix the problem," says Kishore. While Nokia's servicing facilities are fairly widespread, it is also perhaps easier for a market leader to accept shortcomings and say something will be done about it, without getting defensive about it.
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CHAPTER 7 HYPOTHESIS
HYPOTHESIS
60
1. My first hypothesis was that nokia is a well known brand and by my study I have come to know that yesit is a well known brand because more than 65% people stated that. 2. My second hypothesis was that people always buy nokia .by the study we have come to the conclusion that not always but most of the time people buy nokia handsets mostly when they want long lasting battery backup and in case if they are expensing more and are brand conscious. 3. The third hypothesis was that customers are satisfied with nokia service centre but this hypothesis is not true because only 39%people are satisfied with these services.
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CHAPTER 8 GROWTH OF HANDSET IN RURAL MARKET
GROWTH OF HANDSET IN RURAL MARKET
62
What is the strategy of Nokia to explore the rural market in India?
Their strategy lies very strongly in mobile telecommunications. They believe that mobile telecommunications is the most cost effective tool especially in the rural areas in order to access communications. That’s probably not just in the Indian rural areas but also in other rural areas in different parts of the world. Another thing in strategy that they see in India is the rich culture. In India, there is not just one solution to explore, but there has to be many solutions and they are willing to work with the operators in order to explore them. Most concretely, consumers can see that in Nokia they are adding new languages in mobile phone. Depending on the mobile phone model they have up to 9 Indian languages supported in a mobile phone and this is of course increasing all the time. Languages are very important. They try to make user interface more practical for people who have difficulty in reading and writing. Often we hear that someone had bought a Nokia mobile phone and didn’t have to read the handset manual because it was so easy to start to use. They are also working on having interfaces in mobile handsets, which are more graphical, more intuitive. Also, in some of the new handsets, it can be seen already, over the handset how to do certain things, not just by reading but also by watching. It is like watching a learning presentation before you start to use your mobile. The launch of these GSM (Global System for Mobile Communications) phones in India comes in the wake of attempts by the Indian government and mobile services operators in the country to introduce low-cost mobile telephony to India's rural masses. Like the traditional public call office, the shared mobile phone offered through a local village entrepreneur is seen by many nongovernmental organizations (NGOs) as the best way to increase mobile penetration in rural markets, where users may not be able to afford a personal 63
phone. In many villages, local entrepreneurs have already emerged to offer this service. Nokia's 1200 and 1208 models offer call-time tracking and multiple phonebooks, the company said. To help manage airtime costs, the call-time tracking feature allows consumers and village phone entrepreneurs to preset a time or cost limit on individual calls, automatically ending the call after the limit has been reached, it said. India had 166 million mobile subscribers at the end of March, up 68 percent over a year earlier, according to the Telecom Regulatory Authority of India (TRAI). Most of these subscribers are in urban areas. Large mobile service providers have identified the rural market as the next big opportunity. The government is also subsidizing roll-outs of mobile services in rural markets, and has proposed that operators share infrastructure to reduce costs. A number of multinational mobile phone vendors, including Nokia, have started manufacturing phones in India. Nokia also has other operations in the country including a research and development center and a network operations center. The Nokia 1200, with a monochrome screen, will be available this quarter with an estimated retail price of about $48 before subsidies or taxes. The Nokia 1208, with a color VGAresolution screen, will be available in the third quarter of this year with an estimated retail price of $65, Nokia said. Nokia also launched four other low-cost GSM phones, including the entry-level Nokia 1650 and Nokia 2660, and the Nokia 2630 and 2760 with features such as a built-in camera, an email client, an FM radio and Bluetooth connectivity. The Nokia 1650 and 2660 will be available this quarter, with the 1650 priced at about $75, and the 2660 at about $115. The Nokia 2630 and Nokia 2760 will be available in the third quarter of this year. The estimated price for the Nokia 2630 will be around $115 and for the Nokia 2760 around $122.
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The company also launched Nokia 2505, an entry-level phone based on the CDMA (code division multiple access) standard for markets in Asia-Pacific, the Middle East, Africa, China and Latin America. The phone will be available in select markets in this quarter. Nokia did not disclose the pricing of this product.
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CHAPTER 9 SWOT ANALYSIS
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SWOT ANALYSIS STRENGTHS A long established identity and very strong brand recognition by providing wide variety of phone models. Nokia had the vision and foresight to define the brand, develop products with a clear product and design strategy and had a clear communication strategy. Nokia phones have become more than just methods of communication; instead they have become a fashion statement. Photography and Fashion are interwoven as they are both vibrant expressions of imaginations and feelings. Nokia believes in connecting people to their passions. Nokia’s hi-end imaging devices enrich the customer’s imaging experience by providing leading technology Consumer concern for reliability and functionality has enhanced the popularity of Nokia phones and made it a trusted brand. The Nokia Research and Development Center in Bangalore On the strength of its large talent pool of skilled researchers, India has become a global hub for innovation and Research and Development, and a leader in developing cutting edge solutions on both 2G and 3G platforms for mobile devices. Nokia has two additional R&D centers in India, one each in Hyderabad and Mumbai. The centers are focused on nextgeneration packet-switched mobile technologies and communications solutions to enhance corporate productivity.
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WEAKNESS The only weakness that NOKIA has it closed technology. Nokia is using Symbian's operating system in all their mobile phones. As Mobile phone prices are falling, handset vendors and mobile users are looking for new lucrative software operations.
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OPPORTUNITIES Since consumers demand more than just cheap phones, low cost feature rich phones is the need of the hour, both from consumers and vendors point of view. I believe that the next phase of mobile telephony growth would come from B and C class cities and rural areas where most of the population cannot afford expensive handsets but would like to use mobile services. And this is the target market for handset vendors. As almost all handset vendors have joined the price war, market would see a sustained drop in handset prices, especially, at the entry level where market is fairly competitive. Though entry-level consumers are betting on good price deals but in the long run price will no longer be the only factor as eventually customers would look for value. Operator’s engagement in the whole value chain is very critical and low cost handset market dynamics driven by operators adds more value to consumers and makes the value chain more efficient. Chip manufacturers, too play a major role in this value chain as they are the one, who can reduce cost and time to market in collaboration with OEM’s and operators. But ultimately, since mobile telephony is the consumer driven market, it’s important for stakeholders to match customer expectations which is availability of handsets at affordable price and good after sales support. Hence, it’s important for operators to partner with the right handset vendor which has a robust distribution channel.
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THREATS All the stake holders in the supply chain have now realized that working in isolation is not a way forward to address the low cost segment. The joint go-to-market strategy is the right way to move forward and hence chip manufacturer-OEM-operator collaboration would help reducing cost and time to market low cost handsets. But the biggest challenge in front of vendors and operators is that consumers don’t want lowcost phones to be low on features. The demand is of feature rich low cost handset. The ULCH handset marketplace is currently dominated by Motorola and Nokia, but other handset manufacturers including LG, BenQ, Philips, Ningbo Bird, Haier, and Kyocera has plans to come-up with innovative low-cost handset strategy to compete with biggies like Nokia, Motorola and ZTE who have already made their presence felt in Indian market. ZTE is expected to sell around 10 million handsets this year in India. According to ABI research by 2011, 25 percent of handset shipped globally will be an ultra low cost handset and India would contribute a large chunk to it. As most handset vendors have started manufacturing in India, it will be a major export hub for low cost handsets.
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CHAPTER 10 QUESTIONNAIRE
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QUESTIONNAIRE Name of customer:- ……………………………………. Place:- …………………………………………………... Contact number:- ……………………………………… Q.1) Which brand comes in your mind when you are purchasing the handsets? (A) Nokia
(B)Samsung
(C)Sony Ericson
(D)Motorola
60 50 NOKIA
40
SONY
30
MOTOROLA
20
SAMSUNG
10 0
conclusion- The data show that the a lot people wants to take the Nokia handsets. Q.2) Do you think Nokia is a leading company in INDIA, in the mobile sector? (A)Yes
(B) No
(C) May be
(D) Don’t Know
70 60 50
YES
40
NO
30
MAYBE
20
DON’TKNOW
10 0
conclusion- The data show that 67% people think that Nokia is a leading company in mobile sector and 12% people are say no. 14% people say maybe and 7% say Don`t know Q.3) which is your important requirement in your mobile? (A)Picture quality (B) Sound quality (C) Camera (D) Battery back-up
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40 PICTURE QUALITY
35 30
SOUND
25 20
CAMERA
15 10
BATTERYBACK UP
5 0
Conclusion: people give more emphasis on battery backup and sound as compared to picture And camera Q.4) Do you like the NOKIA Service center facility? a) b) c) d)
Strongly agree Agree Disagree Strongly disagree
40 35 30 25 20 15 10
strongly agree disagree stronglydisagree
5 0
conclusion- The data show that the 39% people are satisfied by the Nokia service center services, so its main problem of Nokia. Q.5)What extra features you want in your handset? (A) Sound
(B)Graphics
(C) GPRS
(D) Camera
40 35 30 25 20 15 10
SOUND GRAPHICS GPRS CAMERA
5 0
conclusion- The data show that 36% people are wants to Gprs in our mobile and 29% people are wants to need camera in our mobile and 23% people are wants to need sound should be good and remain wants to good graphics in our mobile. 74
Q.6) Nokia handsets are different from other set in your view:(A)Sound
(B)GPRS
(C) Battery back-up
(D) Graphics
70 60 50
SOUND GPRS
40 30 20 10
BATTERY BACKUP GRAPHICS
0
conclusion- The data show that 64% person views that Nokia is different to other handsets by the long battery back up Q.7) Nokia price range of sets is suitable for:(A)Low income people (C)High Income people
(B) Average income people (D) for all
60 50 40 30 20
LOW AVG HIGH ALL
10 0
conclusion- The data show that 53% people think that Nokia price range is suitable for all and 33% people think that Nokia suitable for Low income people. And 10%people think that Nokia suitable for average people and 4% are think Nokia suitable for higher income people.
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Q.8) how much you can pay for a handset? (A) Less than 3000 (C) Less than 8000
(B) Less than 6000 (D) Greater than 8000
35 30 25
<3000
20
<6000
15
<8000
10
>8000
5 0
conclusion- The data show that`35 people wants to use less than 3000 rupees handset and 25 people wants to use less than 6000 rupees handset and 20 people like to use less than 8000 rupees handset, remaining person wants to use above 8000 rupees handsets.
Q.9) Who told you to purchase the Nokia handset (references)? (A) Friends
(B) News paper
(C) Internet (D) Advertisement
35 30 25
FRIENDS
20
NEWSPAPER
15
INTERNET
10
ADV.
5 0
conclusion- The data show that 31% people were inspired by the Advertisements and 27% people were inspired by our friends and 24% were inspired by the news paper and lefts were inspired by the Internet.
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CHAPTER 11 CONCLUSION
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CONCLUSION The mobile telephony trend the country is witnessing today portrays a contrasting image. On the one hand there is a huge rural and semi-rural mass waiting to be connected, while on the other one sees that to the chic and modern urban class, mobile phone is now more than just a device to stay connected. Nokia, world's leading mobile phone supplier believes that India will emerge as the secondlargest mobile phone market by year 2010. At present, it is the third-largest mobile phone market in terms of volume sales for Nokia, after the US and China, respectively. Nokia India has also earmarked $150 million, to be invested in phases over the next few years, to upgrade its manufacturing facility in Chennai. At present, the plant manufactures 20 million units in 11 months for sale in India and overseas. “India is the fastest growing mobile market in the world with six million subscribers adding every month, the mobile industry in India has taken off in a big way " Sunil Dutt, Director of Nokia India. Nokia will keep expanding its venture in this country keeping in mind the requirements of the Indian market. Nokia believes launching affordable yet stylish handsets with several appealing features is the key to growth. They would launch handsets and solutions in line with user needs with the help of extensive research to ensure to tap every potential market and customer need.
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CHAPTER 12 RECOMMENDATION & SUGGESTIONS
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RECOMMENDATIONS & SUGGESTIONS
1.Nokia should pay more attention towards its service centre facilities. 2.As the number of players are imerging in the market specially small players and also Chinese mobile,therefore nokia should pay more attention towards innovative products as well as towards cost cutting. 3.As it is a number one brand so the only thing it has to do is to maintain its position in the mind of the customers.that can be done by proper advertisement and awareness schemes. 4.It should penetrate the rural market as it has a large scope.
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CHAPTER 13 BIBLIOGRAPHY
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BIBLIOGRAPHY www.nokia.co.in www.wikepedia.com www.ibnlife.com www.im.rediff.com www.indianexpress.com www.mobil-review.com www.businessworld.in www.marketingtoday.com www.google.co.in http://www.nokia.com/nokia/0,1522,,00.html?orig=/lofeblog http://www.nokia.com/nokia/0,,72452,00.html http://www.authorstream.com/Presentation/devilshank-49257-swot-analysis-nokiasamsung-business-final-presentation-education-pptpowerpoint/http://www.authorstream.com/Presentation/devilshank-49257-swotanalysis-nokia-samsung-business-final-presentation-education-ppt-powerpoint/ http://www.icmrindia.org/casestudies/catalogue/Human%20Resource%20and %20Organization%20Behavior/HROB023.htm
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