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CHAPTER I
INTRODUCTION
The company I have chosen to analyse in my project is the mobile phone giant Nokia. This
project tells us briefly what Nokia actually is, its company structure and overall view on the
size and sales of the company & also the Various Market segmentation Strategies followed
by them.
Since January 2004, Nokia Group has consisted of four different business groups: Mobile
Phones, Multimedia, Enterprise Solutions and Networks. In addition, there are two
horizontal groups that support the mobile device business groups: Customer and Market
Operations and Technology Platforms. In the year 2004 Nokias net sales for mobile phones
were 18507 million euro, which went down 12% from 2003. Nokias market areas were
Europe/Africa/Middle East (55% of net sales), Asian Pacific and China (25%) and Americas
(20%). Nokias market share in Europe was 45.8% in 2003, in 2004 it was 34.8% and in the
third quarter of 2005 it was 36%. The average number of personnel for 2004 was 53511. At
the end of 2004, Nokia employed 55505 people worldwide. In 2004, Nokias personnel
increased by a total of 4146 employees. Nokias turnover for the third quarter of 2005 was
8403 million euro from which mobile phones brought in 62%, multimedia 17%, Enterprise
solutions 2% and Networks 9%. The year 2004 was demanding for Nokia. In response, the
company set five top priorities in the areas of customer relations, product offering, R&D
efficiency, demand-supply management and the companys ability to offer end-to-end
solutions. Nokia is making good progress in these areas, and is now better positioned to meet
future challenges.
Nokia Vision/Mission Statement
Our Vision
A world where everyone can be connected.
In 2015, 5 billion people always connected, and 100 fold more network traffic.
Its a world of experiences, shared experiences.
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Our Promise
We help people feel close to what matters to them.
One of our basic needs as human beings is the need to communicate and share.
Our promise is to help fulfil this need, to help them feel close to what matters to them.
Our Approach
Consumer understanding drives us.
We observe first, then design. We act on our consumer insights.
We take a very human approach to technology
1. Simple
2. Reliable
3. Intuitive
4. Experiences to fall in love with.
Internet is our quest. Internet innovation, creativity, media and services will be available
anytime, anywhere.
Nokia wants to bring the best of internet to mobile
.
Our Resolution-Grow, Transform, Build
Grow the number of people using nokia devices.
Transform the devices people use.
Build new businesses
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Our business and peoples expectations for mobile devices and services are changing.
Nokias promise is to help people feel close to what matters to them.
About the Company
Nokia- Connecting People !
Nokia Corporation (NYSE: NOK) is one of the world's largest telecommunications
equipment manufacturers. With headquarters in Keilaniemi of Espoo, Finland, this Finnish
telecommunications company is best known today for its leading range of mobile phones.
Nokia also produces mobile phone infrastructure and other telecommunications equipment
for applications such as traditional voice telephony, ISDN, broadband access, professional
mobile radio, voice over IP, wireless LAN and a line of satellite receivers.
Nokia provides mobile communication equipment for every major market and protocol,
including GSM, CDMA, and WCDMA.
Nokia was established in 1865 as a wood-pulp mill by Fredrik Idestam on the banks of Nokia
rapids. Finnish Rubber Works established its factories in the beginning of 20th century
nearby and began using Nokia as its brand. Shortly after World War I Finnish Rubber Works
acquired Nokia wood mills as well as Finnish Cable Works, a producer of telephone and
telegraph cables. All three companies were merged as Nokia Corporation in 1967. The name
Nokia originated from the river which flowed through the town of the same name (Nokia).
In the 1970s Nokia became more involved in the telecommunications industry by developing
the Nokia DX 200, a digital switch for telephone exchanges. In the 1980s, Nokia offered a
series of personal computers called MikroMikko. However, these operations were sold to
International Computers, Ltd. (ICL), which was later merged with Fujitsu-Siemens AG.
Nokia also began developing mobile phones for the NMT network; unfortunately, the
company ran afoul of serious financial problems in the 1990s and streamlined its
manufacturing of mobile phones, mobile phone infrastructure, and other telecommunications
areas, divesting itself of other items, such as televisions and personal computers.
In 2004, Nokia resorted to similar streamlining practices with layoffs and organizational
restructuring, although on a significantly smaller scale. This, however, diminished Nokia's
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public image in Finland, and produced a number of court cases along with, at least, one
television show critical of Nokia.
Recently, Nokia joined other mobile phone manufacturers to embrace Taiwanese Original
Device Manufacturers. Nokia signed a contract with BenQ, a Taiwanese Original Device
Manufacturer, to develop three high-end mobile phones, which are scheduled to retail by the
end of 2005.














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THE NOKIA STORY
Always adapting
Over the past 150 years, Nokia has evolved from a riverside paper mill in south-western
Finland to a global telecommunications leader connecting over 1.3 billion people. During that
time, weve made rubber boots and car tyres. Weve generated electricity. Weve even
manufactured TVs. Changing with the times, disrupting the status quo its what weve
always done. And we fully intend to keep doing it.
The story so far
In 1865, mining engineer Fredrik Idestam sets up his first wood pulp mill at the Tammerkoski
Rapids in south-western Finland. A few years later he opens a second mill on the banks of the
Nokianvirta river, which inspires him to name his company Nokia Ab in 1871.
How apt that Nokia begins by making paper one of the most influential communications
technologies in history.
The galoshes revolution
OK, so its not exactly a revolution. But in 1898, Eduard Poln founds Finnish Rubber
Works, which later becomes Nokias rubber business, making everything from galoshes to
tyres.
Nokia rubber boots become a bona fide design classic, still on sale to this day though we no
longer make them.
Electronics go boom
In 1912, Arvid Wickstrm sets up Finnish Cable Works, the foundation of Nokias cable and
electronics business.
By the 1960s, Finnish Cable Works already working closely with Nokia Ab and Finnish
Rubber Works starts branching out into electronics. In 1962, it makes its first electronic
device in-house: a pulse analyser for use in nuclear power plants.
In 1963, it starts developing radio telephones for the army and emergency services Nokias
first foray into telecommunications. In time, the companys MikroMikko becomes the best
known computer brand in Finland. And by 1987, Nokia is the third largest TV manufacturer
in Europe.
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The mobile era begins
Nokia sets the ball rolling in 1979, creating radio telephone company Mobira Oy as a joint
venture with leading Finnish TV maker Salora. 1981 then sees the launch of the Nordic
Mobile Telephone (NMT) service, the worlds first international cellular network and the first
to allow international roaming.
The NMT standard catches on fast and the mobile phone industry begins to expand rapidly.
In 1982, Nokia introduces the first car phone the Mobira Senator to the network. That
same year, the Nokia DX200, the companys first digital telephone switch, goes into
operation.
Good enough for Gorbachev
In 1984, Nokia launches the Mobira Talkman portable car phone. Resembling a military field
telephone, its a fairly cumbersome piece of kit but its a start.
Then in 1987, Nokia introduces the Mobira Cityman, the first handheld mobile phone for
NMT networks. Despite weighing in at 800 grams and a price tag of 24,000 Finnish Marks
(around EUR 4,560), it goes on to become a classic. The Cityman even earns a nickname, the
Gorba, after Soviet leader Mikhail Gorbachev is pictured using one to make a call from
Helsinki to his communications minister in Moscow.

In 1987, GSM (Global System for Mobile communications) is adopted as the European
standard for digital mobile technology. With its high-quality voice calls, international
roaming and support for text messages, GSM ignites a global mobile revolution.
As a key player in developing this new technology, Nokia is able to take full advantage.
A new direction
On July 1, 1991, Finnish Prime Minister Harri Holkeri makes the worlds first GSM call,
using Nokia equipment. And in 1992, Nokia launches its first digital handheld GSM phone,
the Nokia 1011.
That same year, new Nokia President and CEO Jorma Ollila makes a crucial strategic
decision: to focus exclusively on manufacturing mobile phones and telecommunications
systems. Nokias rubber, cable and consumer electronics divisions are gradually sold off.

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Name that tune
In 1994, Nokia launches the 2100 series, the first phones to feature the Nokia Tune ringtone.
Based on Gran Vals, a classical guitar piece composed by Francisco Tarrega in the
19
th
century, it is probably one of the most frequently played pieces of music in the world.
The Nokia 2100 series goes on to sell 20 million phones worldwide. Nokias target had been
400,000.
1994 also sees the worlds first satellite call, made using a Nokia GSM handset.
Hear Gran Vals, the inspiration for the Nokia Tune.
Snake bites
In 1997, everybody knows their Snake high score. An instant classic, the addictive game is
launched on the Nokia 6110 and by 2010 its successors are available on an estimated 350
million mobile phones.
On top of the world
By 1998, Nokia is the world leader in mobile phones. The strategic decision to focus on
telecommunications, plus early investment in GSM, has paid off. Between 1996 and 2001,
Nokias turnover increases almost fivefold from EUR 6.5 billion to EUR 31 billion.
And with the new millennium comes a host of new possibilities as the internet goes mobile
As the new millennium dawns, everything changes. New technology enables the internet to
go mobile, opening up a world of possibilities for mobile users. No longer are phones just for
phone calls.
Multi-tasking mobiles
In 1999, Nokia launches the Nokia 7110, a phone capable of rudimentary web-based
functions, including email. Then in November 2001 Nokia launches its first phone with a
built-in camera, the Nokia 7650, and in September 2002 its first video capture phone, the
Nokia 3650.
However, its when Nokia launches its first 3G phone (third generation), the Nokia 6650, in
2002 that things really take off. With 3G technology, phones can now be used to browse the
web, download music, watch TV on the move, and more.
Mobiles will never be the same again.
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One billion and counting
In 2005, Nokia sells its billionth phone a Nokia 1100 in Nigeria, and global mobile phone
subscriptions pass 2 billion. Two years later, Nokia is recognised as the 5
th
most valued brand
in the world.
Things have come a long way since Fredrik Idestam opened his paper mill.
Treading lightly
For years, Nokia has been working to make its business practices and products as
environmentally and socially responsible as possible from creating eco friendly handsets
and establishing phone recycling schemes to bringing the benefits of mobility to emerging
markets. This commitment to sustainability is recognised in a number of prestigious rankings.
For example, in 2009 and 2010, the Dow Jones Indexes ranks Nokia as the worlds most
sustainable technology company.
In contrast, Nokias position in the mobile market faces its toughest challenge to date as
competition intensifies in the burgeoning smartphone segment. Once again, the companys
ability to adapt is put to the test
By 2010, having dominated the mobile world for over a decade, Nokia no longer has things
all its own way. In the all-important smartphone market, competitors such as the iPhone and
Android-based devices now pose a serious challenge. Clearly, its time for a rethink
The good news is this is nothing new for Nokia. Adapting and transforming the business,
finding innovative ideas and solutions, rolling up our sleeves and getting on with things: its
in the companys DNA.
A fresh face at the helm
In September 2010, Nokia appoints Stephen Elop as President and CEO. Formerly head of
Microsofts business division, following roles at Juniper Networks and Adobe Systems Inc.,
Elop has a strong software background and proven record in change management.
A meeting of minds
In February 2011, Nokia announces it is joining forces with Microsoft to strengthen its
position in the smartphone market. The strategic partnership sees Nokia smartphones
adopting the new Windows Phone 7 operating system, with the Symbian platform gradually
being sidelined. The goal is to establish a third ecosystem to rival iOS and Android.
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The industry has shifted from a battle of devices to a war of ecosystems.
Stephen Elop, President and CEO, Nokia
Let battle commence
Nokia launches its first Nokia with Windows Phones, the Nokia Lumia 800 and the Nokia
Lumia 710, in October 2011. Fast-forward to 2013 and Nokia has a full portfolio of great
Windows Phone 8 smartphones, from the Lumia 520 through the flagship Lumia 920.





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CHAPTER II
ANALYSIS - 1
MARKETING & MARKET ORIENTATION:
Focus on satisfying customer needs and wants. NOKIA identified what customer wants and
tailor all the activities of the company to satisfy those needs as efficiently as possible by
proceeding advanced cell phones.
Quality:
NOKIA always focus on high quality to provide high customer satisfaction and to compete
with other brands. NOKIA has internationally accredited research and development system,
which makes a valuable addition to companys products in India. It has a reputation of having
lot of emphasis on quality.
And the only reason that why people always prefer NOKIA over other cell phones is its best
quality and durability. Competitors are providing cell phones with latest features but those are
not durable and their quality decreases over time.
Environment monitoring:
NOKIA, every time has introduced some innovations, which always gained a lot of
encouragement and response from the consumers. It has the history of making innovations at
the right time. Its fact that most of technologies in the cell phones, first introduced NOKIA,
especially credit goes to NOKIA for introducing Blackberry. Such innovations are only
possible because of effective environmental monitoring. For such a great success, R & D
department of NOKIA make always unbeatable efforts.
Demographics:
People who like to have high quality, stylish and good looking cell phones always prefer
NOKIA. Because they are willing to buy the new international lifestyle at a reasonable price.
Technology:
Latest technology is used the in production of cell phones. R&D has made it a Star in Indiai
telecommunication sector.
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Financial resources:
Financially NOKIA is highly stable and utilizes best human resources to enhance the
efficiency of company. NOKIA has a huge and significant budget every year for
Advertisement, R & D, and especially for the implementation of new ideas and innovations.
NOKIA is investing a lot for R&D purposes.
Human resources:
NOKIA top-level management is highly qualified, competent and experienced thats utilizing
best human resources to enhance the efficiency of company and to work for the goodwill of
the company.
Brand value/image:
NOKIA is the leading company all over the world. It has created its positive image by
providing better customer satisfaction and maintain high quality. NOKIA is providing unique
offerings and customer value by the distinctive and inimitable features of its cell phones.
Consumer brings decision process :
Information:
Advertising of NOKIA cell phones through electronic media and private media is basic
source of information.
Individual/intra personal Psychological factors:
NOKIA is a leading company in India and all over the world so that it has good perception in
eyes of its consumers. NOKIA innovative cell phones and its attractive colorful phones has
made impossible to consumer to ignore it. Individuals are now willing to pay more to buy not
only a cell phone but a totally new life style.




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Market Segmentation:
Market segmentation is customer oriented and consistent with marketing concepts. In
segmenting our focus is to identify the wants of customer within a sub market and then
decide if it is practical to develop a marketing mix to satisfy those wants.
Demographic Segmentation :
NOKIA makes the demographic segmentation on the bases of
Age
Gender
Income
Education
Occupation &
Generation.
Youngs from 15 to 24 who study in schools, colleges & universities need cell phones
remain in contact with their families and teachers.
Professionals, jobholders and businessmen with age 25 and above need cell hones to
accomplish their job related tasks.
According to gender population is divided into two groups Males & Females. First men were
in great need for cell phones but now because the number of Female students has increased
rapidly and more women are working outside so that they also need cell phones according to
their needs.
Income wise Indiais are divided into three groups for the use of cell phones. People with low
income, medium income and with high income. People having low income demand economic
cell phones with greater durability. People with medium income demand cell phones with
some other additional features like high graphics, good sound quality & some other utilities.
People having high income, demand best quality cell phones with all new features and high
resolution cameras.
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Geographic Segmentation:
Geographically, NOKIA divides the customers by two facts
City or Metro size
Density
Almost all people in all the cities and in all Urban, Suburban and Rural areas need cell
phones according to their income, education and lifestyle.
People in the Urban areas with high incomes need high tech luxury phones.
Psychographic Segmentation:
For this type of market segmentation NOKIA consider
Social Classes
Lifestyle &
Personality
People belonging to lower class demand economic cell phones with great durability. People
belonging to middle class demand cell phones with some other additional features like high
graphics, good sound quality & some other utilities because they have better resources.
People belonging to upper class dont bother about price so they demand luxury cell phones,
with best quality, all new features and high resolution cameras.
Simple people like simple sets because they just need to make and listen phone calls.
People with stylish lifestyle need stylish and smart cell phones.
Behavioral Segmentation:
NOKIA divide its buyers into different groups on the basis of
Readiness Stage
Loyalty Status
User Rates &
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Benefits
Readiness means awareness and being informed. So consumers who are aware of the new
technology and the benefits of this technology are ready to buy superior cell phones like
NOKIA.
People, who are brand loyal they always prefer good brand names.
People, who are heavy user of cell phones they always prefer durable cell phones.
People, who bother about benefits from product, always demand high quality, convenient and
economic cell phones with high speed. Who want to capture their memorable moments they
look for cell phones with cameras.
















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MARKETING MIX:

NOKIAs marketing objectives are based on the following marketing mix strategies:
Product
Price
Place
Promotion.


























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PRODUCT

NOKIA is providing Cell Phones in different technologies, styles, colors, shapes, prices with
additional features, high quality and durability. Its core benefits is to provide communication
facility as mentioned in its logo
Connecting People as well as some other entertainment features like internal cameras for
capturing precious moments, music & video player etc.
Nokia is providing cell phones with all accessories like
Extra Batteries
Extra Casings
Hands Free
Data Cable &
Software CD
Features
NOKIA has added many features in its cell phones like
Performance
Style
Good display
More functional keys
High resolution cameras like N73 with 3.2 Mega Pixel Camera
WOW music quality
Light weight
Good & soft keypads according to phone sizes
UMTS supports
Bluetooth
Infrared
GPRS






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Design




Designs of cell phones are very attractive these represent the actual purpose and functionality
of these cell phones. Designs are according to the requirements of the customers like
Stylish
Attractive
Light weight &
Slim.
Quality:
Quality is at the heart of Nokias brand promise. They want their customers to know that
Nokia is the best quality company in the industry.

Nokias key quality targets are:
For Nokia to be number one in customer and consumer loyalty
For Nokia to be number one in product leadership
For Nokia to be number one in operational excellence
The quality and reliability of their products and services are among the most important
factors driving customer satisfaction and loyalty. Designing good quality products begins
with understanding customer requirements and creating the best user experience. The whole
chain, from suppliers through to R&D, operations, sales and distribution to customers,
impacts the end-result everybody in the chain has a role to play in achieving quality.
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Their products and customer experiences are the results of our everyday processes. Process
management means finding the simplest way of operating, in order to create customer value
in a lean manner.
Quality in management is vital for leveraging innovations globally and improving
productivity in general. Their approach to this is platform thinking, process management and
combining fact-based management with values-based leadership. They have developed a key
framework for improvement at Nokia, which we call the 'Self-Regulating Management
System'. It's about management practices that allow us to run our business in a consistent,
effective and fact-based manner.
Product Classification:
Consumer Product:
A product, which is used by ultimate consumer, is a consumer product. Warid connections
are consumer product

Shopping Product:
Its a Shopping type of consumer product because cell phones are not purchased very
frequently thats why people always make comparison while purchasing cell phones among
different brands. Consumer compares Nokia cell phones with those of competitors on
following aspects:
Quality
Price
Style
Warranty &
Brand reputation.
Nokia and the resellers both advertise the Nokia cell phones.

Product Line:
Cell phones are only product that NOKIA offers with all its accessories. It serves its
offerings in the telecommunication sector. Nokia is using both the line stretching and line
filling techniques to enhance its product lines.
Nokia is adding high quality cell phones with distinctive features at high prices and at the
same time its providing different varieties in cell phones with improved versions within
existing price ranges.
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So we can say that Nokia is making line extensions on the bases of styles, features, colors and
price etc.

Product Item:
Product item is a specific version of a product that can be designated as a distinct offer
among an organizations product.
NOKIA cell phones also categorized different product items having similar physical and
distinctive features. NOKIA objective is to induce up- selling; therefore NOKIA introduced
cell phones of N-SERIES with the premium quality of cell phone camera lens. NOKIA
introduced L-AMOUR Collection of cell phones and the most distinctive feature of this
series is that they are the most stylish phones in the market which sharply attract the
customers. NOKIA also introduced N-GAGE phones to fulfill the need of video gamers to
play quality games on the NOKIA N-GAGE cell phones. The key features of
N-GAGE cell phones are:

Network Multiplayer Game-play
Unique Global Identity
Rankings and Tournaments
Chat & Message Boards
Friends List
Player Profile Pages
Exclusive Downloads
News Alert System.
Product Mix Strategies:

Product Mix Width:
Number of product lines an organization offer. NOKIA only deals in cell phones therefore it
has only one product line that consists of cell phones.

Product line depth:
Number of product items in a product line. NOKIA has introduced a lot of different cell
phones in the market within the product items like
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N-SERIES
L-AMOUR Collection
N-GAGE cell phones and many other models.
NOKIA LUMIA

Product Life Cycle (PLC):
In its product life cycle in India Nokia is at the stage of Maturity because it has penetrated
very well and now it is enjoying higher sales & profits. Nokia is enjoying higher profits
because of
Increased rate of sales
Wider distribution
Stable prices
High quality
Greater reliability &
Adding advances features.

Branding Strategies of NOKIA:

Brand Name:
Today, we know and use the worlds most famous brand name NOKIA in uniform letters.
It may appear in different sizes and colors but the basic shape of the five lettered name is
instantly recognizable. Its easy to say, recognize and remember. NOKIA has positioned its
brand name strongly in the minds of the customers on the bases of different attributes,
benefits and values that it provide to its customers. Thats why the brand name NOKIA
has become a symbol of quality and trust for people. Whenever people look for reliable cell
phones they always call NOKIA.

Packaging:
Nokia is packaging its cell phones in more sophisticated way. Its packaging provide greater
safety of cell phones while transportation and displaying in the stores. All the parts are
covered separately in plastic sheets in the box. The size and shape of boxes is very attractive
with its brand logo NOKIA and slogan Connecting People. Graphics on the box
conveying its message, make the packaging more attractive & worth able.
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Labeling:
NOKIA has descriptive label on its every cell phone box showing product specification and
distinctive features in that cell phone model.


Brand equity:
NOKIA is a global leader and its brand name NOKIA is highly valued. People are well aware
of NOKIA just because of value that it gives to its customers and differentiate its brand name
from those of its competitors. Thats why the NOKIA customers are very loyal to its brand
name and this loyalty creates a profitable customer relationship for the company.






















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Price

Pricing Strategies of NOKIA:
NOKIA is a leading company in cell phone industry, which is setting a reasonable price for
quality. It has created good image in the minds of customers. The company is setting a brand
image by providing cell phones at reasonable prices with best quality that justifies its prices.
Nokia phones are easily accessible by people with average incomes because it has segmented
the market according to their income levels. Nokia provides cell phones at different level of
prices with different features so that everybody could enjoy Nokia according to his income
level.

Price determination factors:
There are certain factors involved in the price determination of NOKIA cell phones. These
factors are as follows:

Production cost
Design cost
Nature of the market and demand
Advertising cost.

Value Based Pricing:
Nokia charges the prices based on the buyers perception or we can say that Nokia charges
prices according to market demand.
Value Pricing Strategy:
Nokia is providing best quality cell phones with latest technology and features at fair prices
as compared to its competitors.
Affordable:
Although NOKIA has set high quality standards and charge premium price to the customers
but it is still affordable because it cater customers of all income levels.




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Initial price:
Setting the initial prices so that total revenue is as large as possible relative to total cost.
NOKIA is following the policy of maximization of profits by charging initially maximum
price but affordable price for the customers then it lower down its prices after some time










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PLACE
Market share:
NOKIA cell phones sales as a percentage of total sales for that industry are more than any
competitors sales and NOKIAs sales are more significant relative to others.

NOKIA Faces Very Low Price Elasticity of Demand:
The demand of NOKIA cell phones is less elastic because people are brand loyal of Nokia
further NOKIA prices are stable. Many of the customers are brand conscious and NOKIA
establishes its cell phones prices keeping in mind all the income levels of its customers.
Therefore NOKIA offers a complete range of cell phones from low to high prices. And still
NOKIA makes lot of price changes to accommodate its customers.

Non-Price Competition:
NOKIA is trying to shift their demand curve to the right by means of product differentiation.
N-series and other elements of marketing mix.


Some Other Pricing Strategies:
NOKIA Company competes on price or non price elements of marketing mix. One price
strategy is followed by NOKIA as same price is charged for all similar customers who buy
same product items. It means Nokia dont use the concept of Dynamic Prices.

Market entry strategies For New Nokia Cell Phones:
When NOKIA introduced N-series cell phones. They must have decided whether to adopt a
skimming or penetration pricing strategy.

Skimming pricing:
Nokia when introduces any cell phone in N-series or other high quality cell phones with
additional features and high resolution cameras it charges high prices because it wants to
skim the maximum revenues. The prices for such a type of cell phones are high in relation to
the target markets expected price range. Only most interested people could pay for N-series
cell phones. After skimming maximum revenues Nokia comes to market penetration.
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Differential advantage:
There are a lot of Points of Difference between NOKIA cell phones and those of
competitors. Thats why prices of Nokia cell phones are not much affected by the
competitors.

Distribution:
Dealers:
NOKIA involves dealers and retailers to move product from producer to consumer. The
dealers consist of Authorized Dealers and other retailers. The authorized dealers of NOKIA
in Pakistan are :

Mobile Zone
Chimera
United Mobile Phones.

The NOKIA has an indirect channel of distribution i.e.



Conventional Marketing Channel:
NOKIA uses conventional marketing channel which comprises an independent producer,
wholesaler(s) and retailer(s). NOKIA uses this channel to improve operating efficiency and
marketing effectiveness.
Vertical marketing system of NOKIA involves traditional indirect code i.e.,



Intensive distribution:
In intensive distribution, a producer sells its product through every available outlet in the
market where a consumer could easily reach. So the strategy of NOKIA is also intensive
distribution with all outlets through specific dealers and intermediaries.
PRODUCER

WHOLESELLER RETAILER

CONSUMER
PRODUCER

TRADITIONAL

CONSUMER

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Gross Margin to Motivate Dealers & Retailers:
NOKIA cell phones net price is lower than retail price so that it has high gross Margin for
the retailers. It gives specific importance to its retailers and dealers as it now smooth the
progress of selling NOKIA cell phones by those intermediaries giving gross margin and
advertising by NOKIA and its intermediaries.
Other Intermediaries:
Transportation firms are other channel intermediaries who perform their functions in the
distribution of NOKIA cell phones to the authorized dealers and retailers.
Inventory Control:
NOKIA follows the inventory control system. It satisfies the order fulfillment expectations of
customer through managing inventory properly. NOKIA determines the inventory size by
balancing costs and desired level of customer service.




















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Promotion:
Advertising:
Impersonal, one-way mass communication about a product or organization that is paid for by
an identified marketer.
NOKIA uses the following advertising media to promote its sale
Television
Newspapers
Magazines
Billboard &
Internet
www.nokia.com is the most comprehensive collection of all NOKIA cell phones. It presents
different sections including product information, NOKIA club etc.
Allocation of Budget For Advertisement:
Nokia allocates heavy budget every year for advertisement through TV channels,
Newspapers, Magazines & Billboards.
Use of Pull Strategy For Promotion:
NOKIA uses Pull Strategy which involves NOKIA using advertising and promotion to
persuade customers to ask intermediaries/dealers for the NOKIA cell phones. This strategy is
more appropriate because NOKIA is the well known leading brand.
Competitive Advertising:
This is a kind of selective demand advertising. It puts one brand against the rest of the
market. NOKIA is competing for market share with several other brands products. NOKIA
by using competitive advertising emphasizes on the special features and differential
advantages of its cell phones, from the cell phones of other brands.
Indirect-action Advertising:
It is a part of product advertising. It stimulates demand over a longer period of time. Indirect-
Action Advertising is also designed by the NOKIA to stimulate demand of cell phones over a
longer period of time. This is intended to inform and remind consumers about the existence
of NOKIA and to point out its benefits.



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Co Branding With Mobilink & Warid:
Nokia has been doing co-marketing with Mobilink & Warid to promote its cell phones. First
it started with Mobilink that people who will buy Jazz connection they will get






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CHAPTER III
ANALYSIS 2
Competition Theory:
Companies competing with cooperation with their competitors are termed to be Coopetition.
Some companies enjoy an advantage of cooperation with their consumers, suppliers and
companies that produce substitute products.
Apple and Samsung Competition in action:
The patent infringement case filed by Apple against Samsung is a renowned one and people
are very much aware that Apple won giving Samsung a penalty pay of a billion dollars, it was
not that Apple wanted money of Samsung but it wanted its products to be unique and
prevented from being copied by their competition.
On a more interesting note apple has a critical relationship of suppliers with Samsung. It was
reported in CNBC that 40% of the features in iPhone came in existence from Samsung. Thus
Samsung could have charged a completely different impregnate on Apple if they had wanted
to. Such a situation can be regarded as Coopetition or cooperative competition or a standoff
in Mexican way or may be a less flattering example. The term Coopetition is far more
meaningful then what people consider it to be, which can head to unimaginable patent wars
as Nokia are being considered until there are cool heads existing in the market.
The value of competition if compared to Coopetition is not as large as people think it to be
there needs to be a second look at the process of patent system on a whole. (Craig Mathias,
27 Aug 2012)



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Porters five forces:



The power of the purchaser goes from medium-weak level:
The purchase price cannot be influenced and purchasers are not concentrated to one thing.
The threat of new competitor entering is considerably low:
The creation and production of Nokia is a complex procedure and there are few who can
master the technique. It requires understanding of the industry and a whole lot of experience
plus proprietary knowledge. The most successful companies find it hard to survive the
legality of patent wars a new entrant entering is not such a big issue.
Substitutes Threat is on a higher level:
Although there is differentiation of brands, Nokia in the range of similar prices to an extent
have almost the same features and functions.
The vibe of rivalry in the Nokia industry is on a medium level
More Nokia industries develop hardware systems rather than operating system like Nokia,
RIM, Google, and Apple.
INDUSTRY
RIVALRY
THREAT OF
NEW
ENTRANTS
THREAT OF
SUBSTITUE
PRODUCTS
BARGAINING
POWER OF
SUPPLIER
BARGAINING
POWER OF
CUSTOMER
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The perish ability level of Nokia is very high and the prices reduce on a very fast rate. Thus
the devices need to be sold as quickly as possible this makes the rivalry more intense.
However the Nokia market is yet growing.
The power of supplier:
The pace of volume is very crucial and critical among suppliers of Nokia industry. There is
an intense competition among the suppliers of Nokia industry, this leads to reduction in cost
to the producers of Nokia. However when there a more number of substitute products in the
market the suppliers leverage to bargain becomes less.
Global Local Aspect:
Nokia demand has surmounted rest of the devices demand in the phone market. A survey of
2012 reported that 50% of U.S consumers own a Nokia and by 2013 the figure will reach up
to 70%. Similarly, NDP reports, sales of Nokia in Q3, 2011 attained 59% among consumers
aged above 18 years.
European markets quantify 860 million on its top 50 networks of Nokia. The Olswang report
accords in 2011, the value of Nokia is speeding up from 22% in March 2011 which is
expected to go up to 31% among UK consumers aged between 24 to 35 years.
The shipment of Nokia in China increased more than half i.e. 51% in the 2
nd
quarter of 2012.
(Refer to Appendices Figure 2)
The shares of profit that Nokia hold are way more than non-Nokia. According to a note of
research from Canaccord Genuity, renowned Apple is considered to hold 52% of the total cell
phone operating gains however their global share is just 4.2%. The report also states that
Samsung who comes in second place after Apple has a share of about 29%.Similarly the
world wide shares of HTC IS 9% and that of RIM is 7%.
Also a point noted in the end of 2011 states that phones with camera clicked 27% of pictures,
an increase from 17% in 2010. For many individuals Nokia were substitutes for shoot and
point cameras.






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Global Market Share
BLACKBERRY (RIM) 31 %
HTC (Windows) 6 %
iPhone (Apple inc) 31 %
LG (Windows) 5 %
MOTOROLA (Windows) 4 %
Nokia (Symbian) 2 %
PALM 6 %
PANTECH (Windows) 1 %
Samsung (Windows) 10 %
T-MOBILE (Windows) 2 %
VERIZON (Windows) 2 %
Other (Symbian/Palm) 2 %










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CHAPTER IV
CONCLUSION/ SUMMRY/ RECOMMENDATIONS

From the above project I have come to this conclusion that Nokia has
implemented various segmentation strategies for its products on a large scale &
becoming no.1 leader in the world of mobile phones. Nokia segments its market
according to various variables. The main segmentation is done on the basis of
price. As per my opinion Nokia had introduced various schemes to attract
people & gain more goodwill into market. I would like to conclude that Nokia
had been launching various new products & strategies throughout the year but
still it is the no.1 brand leader in mobile phones. Many people around the globe
are purchasing Nokia phones, as they are very cheap, good & efficient to
operate. Nokia have used better & efficient market segmentation strategies to
market its products according to various segments of customers in the market.
Nokia as such has used all modern & good techniques to tackle problems of
customers in market. Customer care & feedback is also given more importance.
Better, efficient & advanced techniques are used to increase the sales of
product. Also Nokia is largest manufacturer of mobile phones in India & also
the no.1 leader in it. Various segmentation strategies are being enrolled into the
market to increase the sales of the products. New models & their strategies are
being well utilized to enhance the product.






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Recommendations

I would like to provide certain recommendations towards this Project report.
They are as follows:
I would like to suggest that the Marketing areas for Sales should be
increased. They should try to adopt new strategies to regain whole sales
force in the market.

As far as launching of new models is concerned, the Company should try
to offer sales of such products at an affordable Price.

The Company should try to bring more attractive offers & discounts to
the customers of segments to make them more brand loyal towards them.














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Bibliography

Websites visited:
www.nokia.com
http://www.nokia.com/about-nokia/company

www.google.com
http://www.google.co.in/#hl=en&source=hp&q=market+segmentation+of+nokia&meta=&aq
=7&aqi=g10&aql=&oq=market+se&gs_rfai=&fp=fe4cbc854b7cd67d

www.scribd.com
http://www.scribd.com/search?cat=redesign&q=project+on+nokia&sa.x=43&sa.y=15
Business information (2009, 8
th
Dec) Issues with Nokia.
This article brings light on how competitors protect their patents from being copied and their
tactics.