INDIAN MOBILE INDUSTRY

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 hasnt deterred anyone and the worlds 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 me2008 was an exciting year in the Indian mobile space. The user base has grown by about 100 million, many new operators have got licences to launch operations, and the 3G auction is just around the corner. So, what does 2009 have in store for us? Here is a brief summary of my pick of the ten trends that will define the mobile space in India in 2009: 1. Subscriber growth in India will continue, driven by rural expansion, entry of newer operators, 3G and cheaper handsets. 2. Incumbent operators will face challenges (and opportunities) on four fronts: new operators, mobile number portability, 3G and MVNOs. 3. Focus on Value-added Services and Data will increase in saturated, urban markets. 4. Mobile VAS operators which build direct-to-consumer relationships will start emerging.

5. Flat-rate Data Plans will accelerate the use of the Mobile Internet, Social Media and Rich Media. 6. Operators and/or handset players will launch AppStores to drive usage, innovation and revenues. 7. Mobile Payments and Commerce will come into vogue for microtransactions. 8. Companies will create multi-faceted mobile presence to deepen customer relationships and drive permission-based interaction and engagement. 9. The Mobile will emerge as the next advertising and marketing medium - and be seen as capable of not just mass reach but also allow a high degree of targeting. 10. The 2009 general elections will be an inflection point in the usage of mobiles in many different ways. 1. Subscriber Growth Continues: India is now growing at about 10 million new mobile users every month, and that pace of growth will continue. We will probably be close to 450 million subscribers by end of 2009. Four factors will drive growth of the mobile subscriber base: footprint expansion by existing operators especially in rural India, launch of operations by newer operators, issuing of 3G licences which will open up a new world of data services, and cheaper handsets which will even further lower entry barriers. 2. Incumbent Operators will face Multiple Challenges: The Indian market going ahead can be thought of us two markets: the Red Market which is the competition-filled, saturated urban battlegrounds (top 40-odd cities in India) and accounts for about 100-150 million subscribers, and the Blue Market covering the rest of India, with a potential size of upto a billion subscribers, of whom only 15-20% have actually got a mobile phone. The Red Market wants Data and ValueAdded Services (VAS), while the Blue Market needs Access (Voice). A new landscape is emerging in India driven by four simultaneous disruptions new operators entering the fray, mobile number portability rollout, 3G services, and the green signal for MVNOs (Mobile Virtual Network Operators).

3. Operators will focus on VAS and Data Services in the Red Market: Voice, SMS and quality of network can no longer be used for differentiation - they are now hygiene. The Red Market subscribers got a phone in the first decade of Indias wireless rollout between 1995-2005. They have been using Voice and P2P SMS for between 3 and 13 years. They now want to do much more with their phone - and their time is now coming. 3G will be a big enabler for richer services, and can actually drive higher ARPUs (Average Revenue Per User). We will also see the emergence of Data MVNOs - or mobile computing operators. 4. The Coming Era of VAS Operators: Today, 90% of operators revenues comes from Voice and Rentals. Of the balance 10%, about half comes from Person-to-Person (P2P) SMS. So, VAS accounts for only about 5% of revenue. Operators have primarily focused on voice. I see a new breed of companies emerging who will create direct-to-consumer services and focus exclusively on VAS - think of them as VAS Operators. They will have multiple revenue streams - not just from subscribers, but also from advertisers and businesses. They will be the Genies that make the mobile as magic lamps in the hands of consumers. 5. Flat-rate Data Plans will drive the use of Mobile Internet, Social Media and Rich Media: The US leads the way here. From being a laggard in the use of mobile data, the US is now showing the way with all operators having flat-rate data plans. In India, the right price point, according to me, is Rs 100 per month. A plan like this will encourage the use of the mobile Internet and other services, and create the necessary pull for companies to start building out mobile data services. Operators will benefit from large-scale adoption of data plans. The mobile is ideally positioned to be a window into the incremental N3 (Now-New-Near) Web). Mobile social networks will extend the communication and interaction capabilities of the device. From mail to music, from digisodes to streaming TV channels, the combination of smartphones, flatrate data plans and 3G will be the gateway to a wide array of rich media. 6. Expect the launch of AppStores: Given the huge success of Apples store for mobile applications and Google following suit with its Android Market, I expect Indian operators and handset players to also create AppStores. These stores will open up the content and applications market to just about anyone, and drive both usage and innovation, and also create newer revenue streams for themselves. This will be the first steps in the opening up of operator walled gardens.

7. Mobile Payments and Commerce will come into vogue: This will happen via three mechanisms. First, the mobile cash balance with an operators could be used for payments. Second, a credit card or debit card could be linked with a mobile phone or number, enabling only an instruction to be issued for making payments. Finally, independent companies could encourage the creation of cash balances to be used for off-deck services. Taken together, the mobile has the potential to emerge at the centre of micropayments. 8. Companies will start creating their Mobile Presence: A mobile presence is much more than setting up a Keyword on a shortcode for lead-generation. Early Adopters will start integrating the mobile (especially SMS and the mobile Internet) into each of their business processes. They will use permission-based channels (rather than spam) to build deeper customer relationships and drive greater engagement. 9. Emergence of Mobile as a Mass and Targeted Medium: Today, the Mobile is one of four new media that ad agencies and business look at along with FM, Out-of-home and the Internet. Given the user base that is already there, the mobile is ready for breaking out of the pack. It has the attributes of a mass medium like TV and print, and can combine the targeting that the Internet offers. 10. The 2009 Elections will be an inflection point for Mobile usage: More than half of the voting Indian population will have a mobile - which is a two-way interactive device. As the Mumbai attacks showed, while TV can rouse passion, it is the mobile which gets people organised and working towards common goals. Just as the US elections of 2008 were a defining moment in the use of Internet and mobile, I believe that the 2009 general elections in India will drive innovation in how the mobile is used for building communities, citizen journalism, advertising and more.

MAJOR PLAYERS
The major players in the handset market today are Nokia, Samsung, Motorola, LG, and Sony Ericsson. Nokia is by far the largest player in the industry commanding a 39 per cent share in the business, followed by Samsung and Motorola at 16 and 8 per cent, and LG, Sony Ericsson and others accounting for the rest

HANDSET MARKET SHARE FOR 2008

Brand

Units Sold Market share Market share (in millions) 2008 468.3 196.5 101.1 100.1 39.93 % 16.76 % 8.62 % 8.54 % 8.24 % 17.92 % 2007 38.98 % 14.39 % 7.19 % 14.2 % 9.24 % 16 %

YoY Change (%)

Nokia Samsung LG Motorola

0.95 % 2.37 % 1.43 % -5.66 % -1 % 1.92 %

Sony Ericsson 96.6 Others 210.1

MARKET SHARE DEPICTED BY PIE-CHART:

MARKETING ENVIRONMENT
ECONOMIC ENVIRONMENT: With incomes rising, people have more disposable income, which enables consumers to be more selective with their choice of mobile phone, looking to other factors rather than fulfilling the most basic of user needs (text messaging and phone calls) and price being such a key factor.

IMPACT OF MOBILE PHONES ON ECONOMIC GROWTH: This section presents the first estimates of the impact of mobile penetration on economic growth across Indian states. Communications matter significantly for the growth of emerging markets. The average growth rate for GSDP per capita for the period 20002008 was about 7% and for mobile density it was 92%. 1% increase in mobile phone penetration results in 0.5% increase in FDI Virtual office of businessman In urban areas increases the productivity of small and medium enterprise It gives farmers access to national market via internet Fishermen use mobile phones to get prices at different ports before landing there catch and information regarding weather, sea conditions are provided to them by network providers M-commerce: any one connected to mobile network can pay for goods and services and have the cost debited from bank account Mobile demand is highly sensitive to price with a negative relationship and positively correlated with increases in income. Fixed line prices do not seem to have any impact on mobile demand. One possible explanation for this is the much greater availability and utility of mobile phones across the states, thus rendering demand for mobile phones to be independent of fixed line prices. Only in high mobile penetration states does the impact of fixed line price on mobile demand conform to the idea that fixed and mobile phones are substitutes i.e. the cross price elasticity is positive and significant, but the magnitude is small.

The positive and highly significant income effect confirms that the causal relationship between telecommunications and economic growth runs both ways. In addition, it can be known that mobiles are luxuries (in the technical sense) since an income elasticity above one implies spending on mobile rises more than in proportion with income. This conclusion however needs to be tempered with the fact that some people surveyed reported higher expenditure on telecoms than on other items such as education and electricity, because they perceived it as a basic need and were willing to incur higher costs. However there may be certain other exogenous factors driving demand for mobile telephony, especially among people with low incomes.

More than any other infrastructure, telecom networks are subject to network effects meaning the growth impact might be larger whenever a significant threshold network size is achieved. This would imply that larger growth effects might be seen in those states that have achieved a critical mass in mobile infrastructure.

SOCIAL ENVIRONMENT: The rise of so-called information society has made telecommunications increasingly more important to consumers both in terms of work and pleasure. Users are more aware of mobile phone handset choice and advancement due to increased information availability. Handsets have significantly contributed in improving the quality of life, leading to psychological feeling of security. There are seven factors of identification sought through mobile phone ownership: Fashion/status Sociability Relaxation Mobility Immediate access Reassurance and Instrumentality

IMPACT OF MOBILE PHONES ON SOCIETY: Key fashion accessory Camera and video are used to cover breaking news Can be used as mass communication device Camera and video phones pose great threat to individuals privacy Mobile phones etiquette has gained significance Psychological impact on adolescents Distraction and peer pressure in college Increasing target of virus writers Misuse by terrorists: communication using Pakisthan SIM cards, mobile bombs Accidents caused while using mobile phones at driving. Drivers who use cell phones, even hands free models are four times as likely to be involved in accidents

TECHNOLOGICAL ENVIRONMENT: This is the most important external factor in communications as mobile phones are based around technology and new discoveries. There are many different types of mobile communications networks, used in different places and for different purposes. MOBILE TECHNOLOGIES FOR 2009:
Bluetooth 3.0

Bluetooth 3.0 specification will be released in 2009 (at which point its feature set will be frozen), with devices starting to arrive around 2010. Bluetooth 3.0 will likely include features such as ultra-low-power mode that will enable new devices, such as peripherals and sensors, and new applications,suchashealthmonitoring.

Bluetooth originated as a set of protocols operating over a single wireless bearer technology. Bluetooth 3.0 is intended to support three bearers: classic Bluetooth, Wi-Fi and ultrawideband (UWB). It's possible that more bearers will be supported in the future. Wi-Fi is likely to be a

more important supplementary bearer than UWB in the short term, because of its broad availability. Wi-Fi will allow high-end phones to rapidly transfer large volumes of data.

Mobile User Interfaces (UIs)

UIs have a major effect on device usability and supportability. They will also be an area of intense competition in 2009 and 2010, with manufacturers using UIs to differentiate their handsets and platforms. New and more-diverse UIs will complicate the development and support of business-to-employee (B2E) and business-to-consumer (B2C) applications.

Organisations should expect more user demands for support of specific device models driven by interface preferences. Companies should also expect consumer interfaces to drive new expectations of application behavior and performance. Better interfaces will make the mobile Web more accessible on small devices, and will be a better channel to customers and employees.

Location sensing

Location awareness makes mobile applications more powerful and useful; in the future, location will be a key component of contextual applications. Location sensing will also enhance systems, such as mobile presence and mobile social networking.

The growing maturity of on-campus location sensing using Wi-Fi opens up a range of new applications exploiting the location of equipment or people. Organisations delivering business or consumer applications should explore the potential of location sensing; however, exploiting it may create new privacy and security challenges.

802.11n

802.11n boosts Wi-Fi data rates to between 100 Mbps and 300 Mbps, and the multiple-input, multiple-output technology used by 802.11n offers the potential for better coverage in some situations. 802.11n is likely to be a long-lived standard that will define Wi-Fi performance for several years.

High-speed Wi-Fi is desirable to stream media around the home and office. From an organisational perspective, 802.11n is disruptive; it's complex to configure, and is a "rip and replace" technology that requires new access points, new client wireless interfaces, new backbone networks and a new power over Ethernet standard.

However, 802.11n is the first Wi-Fi technology to offer performance on a par with the 100 Mbps Ethernet commonly used for wired connections to office PCs. It is, therefore, an enabler for the

all-wireless office, and should be considered by companies equipping new offices or replacing older 802.11a/b/g systems in 2009 and 2010.

Display technologies

Displays constrain many characteristics of both mobile devices and applications. During 2009 and 2010, several new display technologies will impact the marketplace, including active pixel displays, passive displays and pico projectors.

Pico projectors enable new mobile use cases (for example, instant presentations projected on a desktop to display information in a brief, face-to-face sales meeting). Battery life improvements are welcome for any user. Good off-axis viewing enables images and information to be shared more easily. Passive displays in devices, such as e-book readers, offer new ways to distribute and consume documents. Display technology will also become an important differentiator and a user selection criterion.

Mobile Web and widgets

The mobile Web is emerging as a low-cost way to deliver simple mobile applications to a range of devices. It has some limitations that will not be addressed by 2010 (for example, there will be no universal standards for browser access to handset services, such as the camera or GPS).

However, the mobile Web offers a compelling total cost of ownership (TCO) advantage over thick-client applications. Widgets (small mobile Web applets) are supported by many mobile browsers, and provide a way to stream simple feeds to handsets and small screens. Mobile Web applications will be a part of most B2C mobile strategies. Thin-client applications are also emerging as a practical solution to on-campus enterprise applications using Wi-Fi or cellular connections.

Cellular broadband

Wireless broadband exploded in 2008, driven by the availability of technologies such as highspeed downlink packet access and high-speed uplink packet access, combined with attractive pricing from cellular operators.

The performance of high-speed packet access (HSPA) provides a megabit or two of bandwidth in uplink and downlink directions, and often more. In many regions, HSPA provides adequate connectivity to replace Wi-Fi "hot spots," and the availability of mature chipsets enables

organisations to purchase laptops with built-in cellular modules that provide superior performance to add-on cards or do

Near Field Communication (NFC)

NFC provides a simple and secure way for handsets to communicate over distances of a centimeter or two. NFC is emerging as a leading standard for applications such as mobile payment, with successful trials conducted in several countries. It also has wider applications, such as "touch to exchange information" (for example, to transfer an image from a handset to a digital photo frame, or for a handset to pick up a virtual discount voucher). Gartner does not expect much of the NFC payment or other activities to become common, even by 2010, in mature markets, such as Western Europe and the US. NFC is likely to become important sooner in emerging markets, with some deployments starting by 2010.

MARKET SEGMENTATION

Handset companies like Nokia, Samsung, Motorola, LG and Sony Ericsson segment the market on the basis of the following

Demographic: Their demographic segmentation is based on income and occupation on the consumers.

Geographic: Their geographic segmentation is based on tier 1 and tier 2 cities. Psychographic: Based on the life style and personality of consumers Behavioural: Based on the value and benefit sought by the consumers

CONSUMER BEHAVIOUR

Design and looks N/w technology

Price Call rates

Problem recognition

Information search

Alternative evaluation

Purchase decision

Post purchase actions

Interpersonal influences

Mobile phone purchaser decision making process and major influence factors

FACTORS INFLUENCING CONSUMER BEHAVIOUR: Associative Factors-Consumer Psychology With the opening up of the economy and the advent of various telecom operators the phone and call rates have drastically gone down over the years, enabling people to fulfill their liking and need to talk to their loved ones across the vast country. The phones are serving the purpose of connecting people and Indians tend to incline towards advertisements that depict this theme

through sentiments and feelings rather than mere technical features, the reason also being that technical specifications are incomprehensible to most of the general customers. Behavioral Factors Product Branding and Recognition In India people like to make all major product purchase decisions after consultation and advice from their friends, family and other well wishers. This tendency become more dominant for mobile phone purchases as they still are very expensive even for the people in the rapidly growing IT and other high income sectors. As an example the cost of an entry level phone is, approximately of the monthly income of an average Software Engineer in India. Hence, word of mouth publicity and general consumer perception about a product plays a major role in its success. Technical Aspects A few of the technical aspects that Indian consumer seem to give a special attention to while purchasing a phone have been discussed below. Renew ability In spite of the falling prices of mobile phones the entry costs still remain proportionately higher, hence consumers place an emphasis on product renew ability. Nokia phones are especially attractive to customers who place a weight age on this aspect because the outer body of the phone, the skins and the back battery cover are easily customizable and replaceable. Thus, customer does not have to worry about the phone getting scratched or externally damaged as the outer cover replacement is easily available for a very low cost anywhere on the streets and hence the customer has this satisfaction with Nokia that he can always have a new looking phone. Motorolas phones are sleeker and have a more complicated design comparatively, this combined with their low market share, makes the availability of accessories and parts difficult which further deters people to purchase a Motorola in India. Battery and ChargerThe same charger is used across all Nokia phone categories, and this

feature proves worthy is situations like travel or even on a long day when the battery runs out, and Nokias charger is easily accessible in India compared to that of Motorolas because of the 79% market share of Nokia. If the battery runs out in office or at a friends place there is always a

good chance that someone in the office or a friend might be having a Nokia phone and the same charger can be used for your phone too, in spite of the phone being a completely different model. Secondly Nokia also uses the same battery across all its models and it is comparatively easy to take out and put in a different battery on the same phone. As an example suppose the battery runs out and there is no charger in reach, one could always borrow a battery from someone around having a Nokia phone and use it to make some urgent calls as its very easy to open the back cover and replace the battery and the process is the same for all Nokia phones. To add to these features, Nokias talk time is also generally perceived to be better than all other phones in India. This combined with the charger and battery compatibility gives the product a dependability which is translates into good word of mouth publicity for Nokia. Motorola has to take steps to emulate the battery and charger compatibility and simultaneously also improve the battery life and make customers aware of the improvement so the perception about Nokia phones being the best in battery life can change and people start experimenting with the other phones too. Suitability for Indian Conditions During a large part of the year Indian climate is hot and

humid and the crowded means of public transport require mobile phones to bear the heat and humidity and also be sturdy enough to take a fall. Nokias models are mostly candy bar phones and not flip phones and a lot of their mobiles arent slim, but they still have been market leaders over the years in spite of Motorola bringing out slimmer, lighter and stylish flip phones. This is a fact which says a lot about the Indian Consumers preference and the need for sturdy phones that can be held firmly and that flip phones are perceived to be a bit delicate when compared to candy bar phones. To beat the effect of humidity on the color of the phone body, Indian mobile phone users are in a habit of using transparent plastic covers for their phones. This keeps the phone from loosing its shine due to the hot humid conditions and body sweat. These ubiquitous covers are available on road sides in India for candy bar phones. The plastic covers arent available for the flip phones and this makes them susceptible to dirt and humidity which causes them to loose shine after a few months of usage and the flip phone makers to loose their market share!

Software: Simplified and easy to use software attracts most consumers to continue with a higher end Nokia when they plan to upgrade their phones. Nokia has an impression of being user friendly, and the higher end Nokia phones use the same concept and basics of the other Nokia phones but with enhancements, enabling the user to use the new and higher phones efficiently without have to read manuals. Nokia had an edge here over Motorola due to the immense success and the liking developed for its 3310 phone during the start of the mobile communication revolution. It was the first mobile phone of many and the good experience with this phone has helped Nokia built of reputation of making user friendly and easy to learn phones. Games: Snake is one of the most popular mobile games played by youngsters in India. Nokia is well known for putting Snake on most of their phones and it has provided an improved version of Snake on its mobile phones over the years on its entry and higher level phones. Hence when a Nokia customer who is a avid snake gamer migrates to a higher end phone his choice would again rest with Nokia phone as they provide him with improved version of his favorite game snake and since he is familiar with the controls and software the choice becomes obvious1. Versions include:

Snake - The original, for monochrome phones. Graphics consisted of black squares, and it had 4 directions. An example of a phone with it installed is the Nokia 5110

Snake II - Included on monochrome phones. Snake improved to a snake pattern, introduction of bonus bugs etc... An example of a phone with it installed is the Nokia 3310

Snake EX - Included on color phones. Graphics improved to SNES quality, introduction of health. An example of a phone with it installed is the Nokia 6260

Snake EX2 Snakes - A 3D version. Graphics improved to basic PlayStation quality. Introduction of hex levels etc... An example of a phone with it installed is the Nokia N80

Snake III - A 3D version, different from Snakes in the fact that Snake III takes a more living snake approach, rather than the alternate universe feel of Snakes. An example of a phone with it installed is the Nokia 3250

Indian youngsters have a great liking for the mobile game and as seen above Nokia has taken this game very seriously and always provided the Indian youth a new flavor of their favorite game. Motorola has to make gaming popular in its phone and has to come out with a game that can be uniquely identified to Motorola phones in particular and has to ensure that it fulfills the Indian gamers need of a simple yet interesting and engrossing game, as complex games can be played on computers and the same consistency has to maintained in all its models so that a gamer does not loose his favorite game as he migrates to a higher end Motorola.

Nokia is a Finnish corporation headquartered in Espoo, Finland. It is a public limited liability company listed on the Helsinki, Frankfurt, and New York stock exchanges. Nokia's roots go back to 1865, when the Nokia wood-pulp mill was founded. In 1967, upon the merger of three separate companies, Nokia took its current form as a corporation under the laws of the Republic of Finland.The Company is named after the Nokia River in southern Finland, next to which the original Nokia pulp mill was located. At the end of 2008, Nokia operated a total of 15 manufacturing facilities in Brazil, China, Finland, Germany, Hungary, India, Mexico, the Republic of Korea and the United Kingdom. Nokia had 125,829 employees at the end of 2008.Nokia's net sales were EUR 50.7 billion in 2008, with an operating profit of EUR 5.0 billion.

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 Nokia-deployed 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 Ahmedabad. 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.

Devices business 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 ie. 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, 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 Nokias 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.

R & D centers Nokia has three Research & Development centers in India, based in Hyderabad, Bangalore and Mumbai. These R&D hubs are staffed by engineers who are working on next-generation packetswitched mobile technologies and communications solutions to enhance corporate productivity. The Center in Bangalore, the biggest R&D site in the country comprises S60 Software Organization, Common Technologies, Next Generation now called Maemo Software, Productization and Software & Services. 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 Indias talented youth the opportunity to work together on new design ideas for India and the global markets. Manufacturing in India Nokia has set up its mobile device manufacturing facility in Chennai, India to meet the burgeoning demand for mobile devices in the country. The manufacturing facility is operational with an investment of USD 210 million and currently employs 8000 people. Nokia has recently announced fresh investments to the tune of US $ 75 million towards its manufacturing plant in Sriperumbudur, Chennai for the year 2008. PRODUCT Product Strategy Nokia remains the world's number one manufacturer of mobile phones, although its position is under threat from other manufacturers, particularly Sony Ericsson and Samsung. Nokia have the advantage of outstanding loyalty from its traditional customers, together with a perceived reputation for reliability and user-friendliness. Nokia's buggy Nseries smartphones with their powerful but awkward Symbian operating systems have undermined some of this reputation in recent years. During 2007 however, Nokia have gradually improved their range. The latest

Nseries phones have proven to be more reliable, and are certainly at the cutting edge in terms of features. At the same time, Nokia have improved the reliability and user-friendliness of their other phones, and have won back some friends with phones like the very popular 6300. Nokia provides its customers with a wide variety of products. As per the income band, a series of phones have been produced to meet the customer demand. Here are some examples of various products in different product levels offered by Nokia. Basic Product: Nokia 1100- This is a simple phone having core benefits as well as certain added benefits such as a calculator, alarm, games, etc. Expected Product: Nokia 6610- This product has certain features which the consumer expects to be present in the handset. It has a colour display, a radio, some value added games, and many more such features. Augmented Product: N Series- This series has been lately introduced and has some extraordinary functions but for a cost which is its price. These phones can adapt to various devices, further some of these phones are Wi-Fi enabled. Potential Product: Nokia provides its users with even the option of customization. Though these phones are not officially launched but they are sold under the same brand Nokia. Examples: Voice operated phones, Nokia Sirocco Gold phones, etc.
Most popular Nokia phones:

Nokia 5800 XpressMusic Nokia N96 Nokia 6600 Slide Nokia N95 8GB Touchscreen 3.5G smartphone 3.5G smartphone with GPS 3G slide phone with 3.2 3.5G smartphone with GPS with GPS, 3.2 megapixel satnav, 5 megapixel camera megapixel camera with satnav, 5 megapixel camera camera with autofocus, video with autofocus, video calling, autofocus, video calling, MP3 with autofocus, video calling, calling, MP3 player, FM radio, MP3 player, FM radio, player, FM radio, memory card MP3 player, FM radio, memory card, Bluetooth & memory card, Bluetooth & & Bluetooth. memory card, Bluetooth &

WiFi.

WiFi.

WiFi.

Nokia 6300 Nokia 6500 Classic Black / "Classic" style phone with 2 Nokia 6500 Classic Bronze megapixel camera, video 3G phone with 2 megapixel camera, MP3 player, FM radio, camera, video camera, MP3 memory card & Bluetooth. player, 1 Gbyte memory & Bluetooth.

Nokia 6500 Slide Silver / Nokia 5310 XpressMusic / Nokia 6500 Slide Black Nokia 5310 Comes With 3G slide phone with 3.2 Music megapixel camera with "Classic" style phone with 2 autofocus, video calling, MP3 megapixel camera, video player, FM radio, memory card camera, MP3 player, FM radio, & Bluetooth. memory card & Bluetooth.

Nokia N85 Nokia E71 Nokia 6220 Classic Nokia 6600 Fold 3.5G smartphone with GPS 3.5G smartphone with 3.5G smartphone with GPS 3G clamshell phone with 2 satnav, 5 megapixel camera QWERTY keypad, GPS satnav, 5 megapixel camera megapixel camera, video with autofocus, video calling, satnav, 3.2 megapixel camera, with autofocus, video calling, calling, MP3 player, FM radio, MP3 player, FM radio, video calling, MP3 player, FM MP3 player, FM radio, memory card & Bluetooth. memory card, Bluetooth & radio, memory card, memory card & Bluetooth. WiFi. Bluetooth & WLAN.

Nokia 3120 Classic Nokia 3600 Slide Nokia E51 Nokia N79 3G phone with 2 megapixel Slide phone with 3.2 3.5G smartphone with 2 3.5G smartphone with GPS camera, video calling, MP3 megapixel camera with megapixel camera, video satnav, 5 megapixel camera, player, FM radio, memory card autofocus, video camera, MP3 calling, MP3 player, FM radio, video calling, MP3 player, FM

& Bluetooth.

player, FM radio, memory card memory card & Bluetooth. & Bluetooth.

radio, memory card, Bluetooth & WiFi.

Nokia 6210 Navigator Nokia 8800 Arte Carbon Nokia N78 Nokia N73 3.5G smartphone with GPS Premium 3G slide phone with 3.5G smartphone with GPS 3G smartphone with 3.2 satnav, 3.2 megapixel camera, 3.2 megapixel camera, video satnav, 3.2 megapixel camera, megapixel camera with video calling, MP3 player, FM camera, MP3 player, 4GB video calling, MP3 player, FM autofocus, video calling, MP3 radio, memory card & memory & Bluetooth. radio, memory card & player, FM radio, memory card Bluetooth. Bluetooth. & Bluetooth.

Nokia 8800 Arte Premium 3G slide phone with 3 megapixel camera, video camera, MP3 player & Bluetooth.

Nokia 2630 Budget phone with video camera & FM radio.

Nokia 6124 Classic Nokia E63 3.5G smartphone with 2 3G smartphone with megapixel camera, video QWERTY keypad, 2 calling, MP3 player, FM radio, megapixel camera, video memory card & Bluetooth. calling, MP3 player, FM radio, memory card, Bluetooth & WLAN.

Nokia N97 Review coming soon!

Nokia E75 Review coming soon!

Old Nokia phones

Nokia 1100 - entry-level phone, designed with simplicity and reliability in mind. Nokia 1110 - Budget phone. Nokia 1200 - Budget phone. Nokia 1600 - Budget phone. Nokia 1650 - Budget phone with FM radio. Nokia 2100 - practical and fun phone Nokia 2300 - very basic phone Nokia 2310 - Budget phone with FM radio. Nokia 2600 - entry-level colour phone Nokia 2600 Classic - Budget phone with video camera & FM radio. Nokia 2610 - Budget phone. Nokia 2650 - odd-looking clamshell phone with basic features Nokia 2652 - clamshell phone with basic features Nokia 3100 - colour phone with glow-in-the-dark cover Nokia 3109 Classic - "Classic" style phone with MP3 player, memory card & Bluetooth. Nokia 3110 Classic - "Classic" style phone with 1.3 megapixel camera, video camera, MP3 player, FM radio, memory card & Bluetooth. Nokia 3110 Evolve - "Classic" style phone with 1.3 megapixel camera, video camera, MP3 player, FM radio, memory card & Bluetooth. Nokia 3120 - Budget phone. Nokia 3200 - entry-level camera phone with custom covers Nokia 3220 - "Candy bar" style phone with camera. Nokia 3230 - entry-level smartphone Nokia 3250 - Smartphone with 2 megapixel camera, video camera, MP3 player, FM radio, memory card & Bluetooth. Nokia 3300 - music phone with MP3 player, stereo FM radio, and a digital recorder Nokia 3310 - very popular pay as you go phone Nokia 3410 - replacement for the Nokia 3330, with lots of new features Nokia 3500 Classic - "Classic" style phone with 2 megapixel camera, video camera, MP3 player, FM radio, memory card & Bluetooth. Nokia 3510 - similar to the 3410, with polyphonic ringtones, but lacking Java applications Nokia 3510i - best of the 3410/3510 series Nokia 3650 - multimedia phone with digital camera and video camera Nokia 3660 - enhanced version of the 3650 with 65k colour screen Nokia 5100 - hard-wearing phone with colour display & built-in radio Nokia 5140 - durable phone designed for sport and outdoor use Nokia 5140i - "Candy bar" style phone with video camera, FM radio & sports functions. Nokia 5200 - Slide phone with video camera, MP3 player, FM radio, memory card & Bluetooth. Nokia 5210 - hard wearing, versatile phone Nokia 5220 XpressMusic - "Classic" style phone with 2 megapixel camera, video camera, MP3 player, FM radio, memory card & Bluetooth. Nokia 5300 XpressMusic - Slide phone with 1.3 megapixel camera, video camera, MP3 player, FM radio, memory card & Bluetooth. Nokia 5500 Sport - Smartphone with 2 megapixel camera, video camera, MP3 player, FM radio, memory card, Bluetooth & sports functions.

Nokia 5610 XpressMusic - 3G slide phone with 3.2 megapixel camera with autofocus, video calling, MP3 player, FM radio, memory card & Bluetooth. Nokia 5700 XpressMusic - 3G smartphone with 2 megapixel camera, video calling, MP3 player, FM radio, memory card & Bluetooth. Nokia 6020 - "Candy bar" style phone with video camera Nokia 6021 - "Candy bar" style phone with Bluetooth. Nokia 6030 - "Candy bar" style phone with FM radio. Nokia 6060 - basic clamshell phone. Nokia 6070 - Budget phone with video camera & FM radio. Nokia 6080 - Budget phone with video camera & FM radio. Nokia 6085 - Clamshell phone with VGA camera, video camera, MP3 player, FM radio & Bluetooth. Nokia 6100 - advanced feature-rich lightweight phone Nokia 6101 - Clamshell phone with video camera & FM radio. Nokia 6103 - Clamshell phone with video camera, FM radio & Bluetooth. Nokia 6110 Navigator - 3.5G smartphone with GPS satnav, 2 megapixel camera, video calling, MP3 player, FM radio, memory card & Bluetooth. Nokia 6111 review - Slide phone with 1 megapixel camera, video camera, MP3 player, FM radio & Bluetooth. Nokia 6120 Classic - 3.5G smartphone with 2 megapixel camera, video calling, MP3 player, FM radio, memory card & Bluetooth. Nokia 6125 - Clamshell phone with 1.3 megapixel camera, video camera, MP3 player, FM radio, memory card & Bluetooth. Nokia 6131 - Clamshell phone with 1.3 megapixel camera, video camera, MP3 player, FM radio, memory card & Bluetooth. Nokia 6136 - Clamshell phone with 1.3 megapixel camera, video camera, MP3 player, FM radio, memory card, Bluetooth & WLAN. Nokia 6151 - 3G phone with 1.3 megapixel camera, video camera, MP3 player, FM radio, memory card & Bluetooth. Nokia 6170 - excellent value clamshell camera phone with metal case and a good range of features Nokia 6220 - business class phone that also includes features like an integrated digital camera, video recorder and FM radio Nokia 6230 - improved version of the 6220 with 65k colour display Nokia 6230 - "Candy bar" style phone with 1.3 megapixel camera, video camera, MP3 player, FM radio, memory card & Bluetooth. Nokia 6233 - 3G phone with 2 megapixel camera, video camera, MP3 player, FM radio, memory card & Bluetooth. Nokia 6260 - advanced clamshell-design smartphone Nokia 6270 - Slide phone with 2 megapixel camera, video calling, MP3 player, FM radio, memory card & Bluetooth. Nokia 6280 - 3G slide phone with 2 megapixel camera, video calling, MP3 player, FM radio, memory card & Bluetooth. Nokia 6288 - 3G slide phone with 2 megapixel camera, video calling, MP3 player, FM radio, memory card & Bluetooth. Nokia 6290 - Never released in the UK Nokia 6301 - "Classic" style phone with 2 megapixel camera, video camera, MP3 player, FM radio, memory card, Bluetooth & WiFi/UMA. Nokia 6310 - replacement for the classic 6210 Nokia 6310 - adds triband and Java capability to the Nokia 6310

Nokia 6510 - similar features to the 8310 Nokia 6600 - smart phone with 65k colour display, camera, camcorder and Symbian operating system Nokia 6610 - all the features of the 7210 in a more conventional design Nokia 6610 - adding a digital camera to the 6610 Nokia 6630 - 3G smartphone with 1.3 megapixel camera, video camera, MP3 player, memory card & Bluetooth. Nokia 6650Fold - Clamshell 3G smartphone with 2 megapixel camera, video camera, MP3 player, FM radio, GPS satnav, memory card & Bluetooth. Nokia 6670 - multimedia smartphone with megapixel camera Nokia 6680 - 3G smartphone with 1.3 megapixel camera, video calling, MP3 player, memory card & Bluetooth. Nokia 6681 - multimedia smartphone with megapixel camera Nokia 6800 - phone with full QWERTY keyboard Nokia 6820 - messaging device with QWERTY keyboard and multimedia features Nokia 6822 - messaging device with QWERTY keyboard and multimedia features Nokia 7200 - Nokia's first clamshell phone Nokia 7210 - phone with colour display, triband, Java and polyphonic ringtones Nokia 7210 Supernova Nokia 7250 - similar to the 7210, but with an integrated digital camera Nokia 7250i - enhanced version of the Nokia 7250 Nokia 7260 - Art-Deco inspired camera phone Nokia 7270 - fashion phone with MP3 ringtones and viceo camera Nokia 7280 - unique fashion phone with voice-activated user interface Nokia 7310 Supernova - no review Nokia 7610 Supernova - no review Nokia 7360 - "Candy bar" style phone with video camera & FM radio. Nokia 7370 - Rotating phone with 1.3 megapixel camera, video camera, MP3 player, FM radio & Bluetooth. Nokia 7373 - Rotating phone with 2 megapixel camera, video camera, MP3 player, FM radio, memory card & Bluetooth. Nokia 7380 - Voice-activated phone with 2 megapixel camera, video camera, MP3 player, FM radio & Bluetooth. Nokia 7390 - 3G clamshell phone with 3 megapixel camera with autofocus, video camera, MP3 player, FM radio, memory card & Bluetooth. Nokia 7500 Prism - Fashion phone with 2 megapixel camera, video camera, MP3 player, FM radio, memory card & Bluetooth. Nokia 7900 Prism - 3G fashion phone with 2 megapixel camera, video camera, MP3 player, FM radio, 1 Gbyte memory & Bluetooth. Nokia 7600 - 3G phone Nokia 7610 - multimedia smartphone with megapixel camera Nokia 7650 - multimedia phone with colour display Nokia 8310 - popular early Nokia phone Nokia 8600 Luna - Premium slide phone with 2 megapixel camera, video camera, MP3 player, FM radio & Bluetooth. Nokia 8800 - Premium slide phone with 0.5 megapixel camera, video camera, MP3 player, FM radio & Bluetooth. Nokia 8800 Sirocco - Premium slide phone with 2 megapixel camera, video camera, MP3 player, FM radio & Bluetooth.

Nokia 8910i - exclusive phone with stunning looks Nokia 9210 - heavy-duty mobile communications device Nokia 9210i - Communicator with more memory and improved internet support Nokia 9300 - smartphone with full QWERTY keyboard Nokia 9300i - Smartphone with QWERTY keypad, MP3 player, memory card, Bluetooth & WLAN. Nokia 9500 - Smartphone with QWERTY keypad, video camera, MP3 player, memory card, Bluetooth & WLAN

Nokia E50 - Smartphone with 1.3 megapixel camera, video camera, MP3 player, memory card & Bluetooth. Nokia E60 - 3G smartphone with MP3 player, memory card, Bluetooth & WLAN. Nokia E65 - 3G smartphone with 2 megapixel camera, MP3 player, memory card, Bluetooth & WLAN. Nokia E66 - 3.5G smartphone with GPS satnav, 3.2 megapixel camera, video calling, MP3 player, memory card, Bluetooth & WLAN. Nokia E70 - Business SmartPhone with 3G. Nokia N-Gage - phone & games console in one! Nokia N70 - 3G smartphone with 2 megapixel camera, video calling, MP3 player, FM radio, memory card & Bluetooth. Nokia N71 - 3G clamshell smartphone with 2 megapixel camera, video calling, MP3 player, memory card & Bluetooth. Nokia N72 - Smartphone with 2 megapixel camera, video camera, MP3 player, FM radio, memory card & Bluetooth. Nokia N76 - Clamshell-style smartphone. Nokia N77 - Classic style smartphone. Nokia N80 - 3G smartphone with 3 megapixel camera, video calling, MP3 player, FM radio, memory card, Bluetooth & WLAN. Nokia N81 - 3G smartphone with 2 megapixel camera, video calling, MP3 player, FM radio, 8 Gbytes memory, Bluetooth & WLAN. Nokia N82 - 3.5G smartphone with GPS satnav, 5 megapixel camera with autofocus, video calling, MP3 player, FM radio, memory card & Bluetooth. Nokia N90 - 3G smartphone with 2 megapixel camera with autofocus, video calling, MP3 player, memory card & Bluetooth. Nokia N91 - 3G smartphone with 2 megapixel camera, video calling, MP3 player, FM radio, 4 Gbyte hard drive, Bluetooth & WLAN. Nokia N93 - 3G smartphone with 3.2 megapixel camera with autofocus & optical zoom, video calling, MP3 player, FM radio, memory card, Bluetooth & WLAN. Nokia N93i - 3G smartphone with 3.2 megapixel camera with autofocus & optical zoom, video calling, MP3 player, FM radio, memory card, Bluetooth & WLAN.

Product Classification Based on functional life (Durable or Consumable): Phones are basically durables which last for a long period. Based on utility (Consumer goods or Industrial goods): Phones are consumer good. They can be put under Homogeneous Shopping goods. Based on tangibility (Tangible or Intangible): They can be touched and seen hence they are tangible. Based on price and quantity (Mass or Premium product): Premium products as they are...

Product Assortment Product Width- 1 Nokia is only into Manufacturing of mobile handsets hence its product width is 1. Product Length - (No. Of products) Presently Nokia provides its customers with 111 various cell phones, excluding the prototypes in it. Product Depth- (No. of products into colours) Nokia provides its products in various colours. Though the product may be the same but panels of various colours are available. Further it also provides with small variations such as presence or absence of camera. Product Consistency- Not applicable as Nokia is only in 1 field having no other product lines

Nokia 6600

Various colours Regular & i version

Nokia 6610

Various colours Regular & QD version

N- Gage

Various Colours Regular & i version

Nokia 1100 Various Colours Colours

Branding Decisions Nokia follows Umbrella as well as Company brand name strategy. Example for Umbrella branding- N Series and E Series Example for Company brand name Nokia **** Lifecycle Globally Nokias market is at maturity, where as in India it is still in the Growth stage.

Globally Placed Here In India Placed here

Rs.

Time

Product life cycle

PRICE Pricing Strategy Nokia uses a pricing strategy that best suits the product. Keeping the product in mind the company may go for mass distribution (Penetration) or else may just tap a selected group (Skimming). Market Skimming- N-95: As in case of this phone Nokia deliberately focuses on only a selected rich group of consumers. The price is kept high as their target is only to sell a limited number of phones at a higher margin. Market Penetration- Nokia 1100: The price of this phone is kept nominal. The objective that Nokia wants to achieve through this phone is high market penetration. The desired profits are attained by dealing in volumes.

Price Determination 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. Where as 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. 5,00030,000---- 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. Case of 6610 Objective- To enhance market share and market penetration Demand Estimation- Tremendous demand as it is a very basic phone Price Elasticity- High elasticity because it is a utility phone Estimating cost- Generally we can see that Nokias product pioneer from a high price and slowly as time passes, there is a fall in price. This can be related to the Experience curve theory where in we can see that as the company gets expertise or experience in producing a particular item then the cost of production gradually falls with a period of time. Though it should be noted that the only cause of fall in price

P1

Price/Co st

P2

P3

Experience Curve

T1

T2

T3

Time Period/ Units Produced

Analysing competitors cost price and offers- When 6610 was introduced, other players namely Motorola and Sony Ericssons phones were not considered to be reliable and user friendly, even though they were marginally cheap. Further as Nokia was the market leader, the prices were regulated by Nokia and other companies followed Nokia pricing decision making i.e. if Nokia reduced its price than other companies also ought to reduce their prices.

Nokia 8800 Arte Nokia N96 Nokia E90 Communicator Nokia N95 8GB Nokia N85 Nokia N79 Nokia E71 Nokia 5800 XpressMusic Nokia E66 Nokia N95 Nokia N82 Nokia 7900 Crystal Prism Nokia 6220 Classic Nokia 6260 Slide Nokia 7900 Prism Nokia E61i Nokia N78 Nokia N81 8GB Nokia 6210 Navigator Nokia 6600 Slide Nokia E63 Nokia 6500 slide Nokia N73 Music Edition Nokia E51 Nokia 5610 Nokia N73 Nokia 7610 Supernova

Rs.52000 Rs.33455 Rs.33307 Rs.24100 Rs.23584 Rs.19852 Rs.19743 Rs.19315 Rs.19214 Rs.19213 Rs.19028 Rs.17400 Rs.17336 Rs.17308 Rs.17300 Rs.15811 Rs.15714 Rs.15589 Rs.14398 Rs.14000 Rs.13545 Rs.13115 Rs.13000 Rs.11350 Rs.11050 Rs.11000 Rs.10900

Nokia 6500 classic Nokia 5320 XpressMusic Nokia 6212 Classic Nokia N70 Music Edition Nokia 3600 Slide Nokia 5310 Nokia 5220 XpressMusic Nokia E50 Nokia N72 Nokia 7310 Supernova Nokia 3120 Classic Nokia 6300 Nokia 3610 Fold Nokia 5300 Nokia 5130 XpressMusic Nokia 7210 Supernova Nokia 3500 Classic Nokia 5200 Nokia 6085 Nokia 3110 classic Nokia 5000 Nokia 2680 Slide Nokia 6080 Nokia 2630 Nokia 2660 Nokia 2760 Nokia 2600 Classic

Rs.10295 Rs.10058 Rs.10039 Rs.9500 Rs.9260 Rs.8100 Rs.7888 Rs.7857 Rs.7773 Rs.7599 Rs.7306 Rs.6970 Rs.6900 Rs.6050 Rs.5827 Rs.5483 Rs.5428 Rs.4937 Rs.4637 Rs.4513 Rs.4414 Rs.4021 Rs.3850 Rs.3487 Rs.3145 Rs.3145 Rs.3089

Nokia 1680 Classic Nokia 2626 Nokia 1650 Nokia 1209 Nokia 1208 Nokia 1202 Nokia 1203 Nokia 1200

Rs.2625 Rs.2053 Rs.1747 Rs.1576 Rs.1491 Rs.1373 Rs.1358 Rs.1272

PROMOTION Promotion Mix Use of AIDA model in Nokia N Series: When Nokia launched its N Series of phones, it used the AIDA model to great perfection. Before N Series phones came in the market, cell phones were primarily used as a communication tool. Features like cameras, MP3 Players, Radio, and Bluetooth were the ones which used to catch attention of the users. N Series phones revolutionised the cell phone industry with features such as High Data Storage, High Quality camera, amazing sound quality, professional usage etc. Nokia first gained ATTENTION by highly publicising N Series phones as a lifestyle product. Then it began to hold INTEREST of the people by coming up with new models and variety of

features in the N Series. This also helped in arousing DESIRE in the market, which helped the company to make N Series a great success despite the high prices of the phones.

Promotion Mix Tools a) Advertising One of the strongest aspects of Nokia is its advertising strategy. Nokias ad campaigns are have a short shelf life as they are known to be coming up with one new model for each class(basic, mid, high end) in two months. So they have something or the other new for the consumers, thanks to their excellent innovation. Nokia also come up with customised ads during specific events and festivals. For example, they came up with an ad for Nokia 1110 during Holi last year, with the concept that its a colour phone for the festival of colours.

b) Sales Promotion Nokia does not stress much on Sales Promotion. This is because today the cell phone market is moving really very fast with new models coming up every third month, and even the consumers are ready to change at such a short period. c) Public Relations (PR) Nokia has strong PR. They keep on doing some or the other new events, programmes and publicity, so as to keep up with the brilliant image of the company and also to enhance the brand equity. One of the instance is they sponsored the COUNTDOWN event for NEW YEAR 2007, wherein they used Nokia 5200 as their prime product. The event featured NELLY FURTADO performing live. The event also concentrated on GLOBAL WARMING.

d) Direct Marketing Nokia does not perform Direct Sales activities on its official website www.nokia.com. However, they do have contractual tie ups with other e-commerce websites like www.ebay.com, www.amazon.com etc. Nokia does use DEMO style of Direct Marketing. They set up kiosks extensively at various locations such as malls; business parks etc. and had its latest product N 95 for demo. Nokia does not use Direct Mail or Telemarketing styles of Direct Marketing. PLACE Market Channels- Nokia uses both dealership as well as direct selling strategy. It has opened its retail outlet Nokia Priority as well has many authorised dealers at various places. So Nokia uses 0 level, 1 level & 2 level Market channel levels. Consumer Manufacturer Dealer

Market Channel Levels 0 level (outlets and internet) - Nokia has their retail outlets Nokia Priority also although they directly dont sell product on their website but they have contractual tie ups with other e-commerce websites like www.ebay.com, www.amazon.com etc. 1 level (Dept stores- Hypercity) - Nokia has authorised dealers at various places it also provide their product at super malls like Hypercity. 2 level (Wholesaler Retailer channel followed) This is the traditional way of selling which Nokia does follow. Nokias products today are available at almost all retail outlets dealing in mobile phones. Vertical Marketing System

Administered (Nokia Priority Dealer) and Contractual (Various Dealership)

Steps involved in designing market channel E-Series

a) Analyzing customer needs and expectations- breakthrough technology and utility b) Objectives and constraints- high profit (market skimming) and (constraint) low volumes c) Identifying channel alternatives- 0, 1 and 2 level d) Evaluating major alternatives- high profits by catering to the needs of higher level income customers, which are increasing in towns and cities e) Selecting channel members f) Training channel members

g) Motivating channel members h) Evaluating channel members i) Modify channel arrangements E-series

Market segmentation and targeting strategy

Target marketing The target marketing done by Nokia is also the same it targets major portion of the market whose preferences are similar. It does a market survey of understanding the consumers. It is not actually a survey but look at the type of cell phone which a consumer is looking for in the market through the consumers demand. Nokia targets the market by targeting groups holding major part of demand and accordingly manufacture the product. Example: - Targeting the lower income group who are looking for a cheaper cell phone in the market like Nokia 1100. In market targeting strategy Nokia falls in product specialization pattern .As it specializes in the same product line.

Positioning strategy In case of Nokia the positioning strategy used was Nokia Connecting People. But from the time Nokia has been introduced in the market one image which was created in the minds of consumers was it was a ruff and tuff piece i.e. its body is hard. But as the time passed by today Nokia with its core positioning is also targeting its technological advancement as positioning strategy. The positioning strategy of any company plays a vital role in creating a psychological perception about the product.

Samsung India Electronics Private Limited (SIEL) is the Indian subsidiary of the US $55.2 billion Samsung Electronics Corporation (SEC) headquartered in Seoul, Korea. It is the hub of Samsungs South West Asia Regional Operations, and looks after its business in Nepal, Bangladesh, Maldives & Bhutan besides India. SIEL commenced operations in India in December, 1995. Initially, a player only in the Colour Televisions segment, it later diversified into colour monitors (1999) and refrigerators (2003). Today, it is recognized as one of the fastest growing brands in the sphere of digital technology, and enjoys a sales turnover of over $ US 1 billion in a just a decade of operations in India. Th aim of samsung is to develop innovative technologies and efficient processes that create new markets, enrich peoples lives and continue to make Samsung a trusted market leader. According to a Gartner report Samsungs market share in the third quarter of 2007 improved 14.5 per cent as against 12.2 per cent in the same quarter in 2006. This gave the company undisputed number two rank globally, whereas its nearest competitor Motorola with a market share of 13.1 per cent became the number three player. Samsung in India has a presence in the following areas of business: Consumer Electronics (CE)/Audio Visual (AV) Business Home Appliances (HA) Business Information Technology (IT) Business Its operations are broadly divided into the following key sub-functions: Sales & Marketing Manufacturing Software Centre Operations

The company stood in same position ie 2nd position with the market share of 16 % as of 4th quarter 2008 that shows the increase of 2.37 % increase when compared to previous year.

PRODUCT: The latest Samsung range is proving to be very popular, mainly due to its great-looking and userfriendly designs. In the past few years, Samsung has risen to become the second largest manufacturer of mobile phones in the world. The reason for Samsung's success has been cuttingedge technology (especially high-quality LCD displays and digital cameras) packaged in attractive designs, especially the sliding design which has become Samsung's signature. Samsung have a key advantage in being one of the world's electronics giants, with expertise in a wide range of key technologies. Samsung made a few mistakes during 2007, especially with their early touch-sensitive models, but they seem to have learned from that mistake and are back on form with their latest releases. Most popular Samsung phones:

Samsung Omnia i900 Samsung G600 Black/Silver Samsung U900 Soul Samsung Pixon 3.5G touchscreen-operated Slide phone with a 5 megapixel 3.5G touchscreen-operated (Graphite / Silver) phone with 5 megapixel camera with autofocus, video Ultra-slim slide phone with a 5 phone with 8 megapixel camera with autofocus, video camera, music player, memory megapixel camera with camera with autofocus, video calling, music player, FM card & Bluetooth. autofocus, video calling, music calling, GPS, music player, FM radio, memory card & player, memory card & radio, memory card & Bluetooth. Bluetooth. Bluetooth.

Samsung F480 Tocco 3.5G touchscreen-operated phone with 5 megapixel camera with autofocus, video

Samsung U600 Black / Samsung U600 Red / Samsung U600 Pink / Samsung U600 Blue

Samsung U800 3G phone with 3 megapixel camera, video calling, MP3 player, 1 Gbyte memory,

Samsung i8510 3.5G smartphone with GPS satnav, 8 megapixel camera with autofocus, video calling,

calling, music player, FM radio, memory card & Bluetooth.

Ultra-slim slide phone featuring a 3.2 megapixel camera with autofocus, video camera, music player, expandable memory & Bluetooth.

memory card & Bluetooth.

MP3 player, FM radio, memory card, Bluetooth & WiFi.

Samsung Steel Samsung G800 3.5G slide phone with 3 3.5G slide phone with a 5 megapixel camera with megapixel camera with autofocus, video calling, music autofocus, optical zoom & player, FM radio, memory card xenon flash, video camera, & Bluetooth. music player, memory card & Bluetooth.

Samsung E250 Samsung P520 Giorgio Compact slide phone with 0.3 Armani megapixel camera, video Touchscreen-operated phone, 3 camera, music player, FM megapixel camera, video radio, memory card & camera, music player & Bluetooth. Bluetooth.

Samsung Armani Night Samsung Tocco Ultra S8300 Samsung L770 Touchscreen slide phone with 3G slide phone with 2 Effect 3G phone with 3 megapixel an 8 megapixel camera with megapixel camera, video camera with autofocus, video autofocus, video calling, music calling, music player, memory calling, MP3 player, FM radio, player, FM radio, GPS, card & Bluetooth. memory card & Bluetooth. memory card & Bluetooth.

Samsung E840 Ultra-slim slide phone with touch-sensitive keypad, 2 megapixel camera, video camera, music player, expandable memory & Bluetooth.

Samsung S7330 Review coming soon!

Samsung S3500 Marcel Review coming soon!

Old Samsung phones

Samsung A300 - stylish and compact basic phone Samsung A800 - good basic phone with polyphonic ringtones Samsung D410 - slide design phone with 262,000 colour screen and video camera Samsung D500 - Hugely popular slide phone with 1.3 megapixel camera, video camera, music player & Bluetooth. Samsung D520 - superslim slide phone Samsung D600 - Slide phone with 2 megapixel camera, video camera, music player with surround sound, memory card & Bluetooth. Samsung D800 - Premium slide phone with 1.3 megapixel camera, video camera, music player & Bluetooth. Samsung D820 - Premium slide phone with 1.3 megapixel camera, video camera, music player, memory card & Bluetooth Samsung D830 - Ultra-slim clamshell phone with 2 megapixel camera, video camera, music player, memory card & Bluetooth. Samsung D840 - Ultra-slim slide phone featuring a 2 megapixel camera, video camera, music player, expandable memory & Bluetooth. Samsung D900 / Samsung D900i - Ultra-slim slide phone featuring a 3 megapixel camera with autofocus, video camera, music player, expandable memory & Bluetooth. Samsung E300 - mid-range clamshell camera phone Samsung E310 - mid-range clamshell camera phone Samsung E330 - mid-range clamshell camera phone Samsung E350 - Compact slide phone with video camera & music player. Samsung E370 - Compact slide phone with 1.3 megapixel camera, video camera, music player & Bluetooth. Samsung E390 - Compact slide phone with 1.3 megapixel camera, video camera, music player, memory card & Bluetooth. Samsung E530 - Compact clamshell phone with 1 megapixel camera, video camera, music player & Bluetooth. Samsung E590 - Designer phone with 3 megapixel camera, video camera, music player, FM radio, memory card & Bluetooth. Samsung E600 - Samsung's smallest camera phone with 64-voice polyphonic ringtones Samsung E630 - camera phone in slide-up design Samsung E700 - similar spec to the V200 camera phone, but with a new design featuring an internal aerial and Java games Samsung E710 - adds a video recorder and a camera flash to the E700 specification Samsung E720 - megapixel camera phone with video recorder and MP3 player Samsung E760 - clamshell phone with stereo MP3 player Samsung E770 - Clamshell phone with 1.3 megapixel camera, video camera, music player, memory card & Bluetooth. Samsung E800 - compact slide design phone Samsung E810 - very similar to the E800 Samsung E820 - very similar to the E800 Samsung E870 - Clamshell phone with 1.3 megapixel camera, video camera, music player, memory card & Bluetooth. Samsung E900 - Hi-spec slide phone with touch-sensitive keypad, 2 megapixel camera, video camera, music player, expandable memory & Bluetooth. Samsung E950 - Slide phone with touchscreen controls, 3.2 megapixel camera, video camera, music player, FM radio, expandable memory & Bluetooth. Samsung F210 - Rotating phone with 2 megapixel camera, video camera, music player, FM radio, memory card & Bluetooth. Samsung F300 - "Flipper" design phone with 2 megapixel camera, video camera, music player, FM radio, memory card & Bluetooth. Samsung F400 - 3.5G slide phone with 3 megapixel camera with autofocus, video calling, music player, FM radio, memory card & Bluetooth. Samsung F490 Nerva - 3.5G touchscreen-operated phone with 5 megapixel camera with autofocus, video calling, music player, memory card & Bluetooth.

Samsung F700 - 3.5G smartphone phone with a 3 megapixel camera with autofocus, video calling, music player, memory card & Bluetooth. Samsung G810 - No review Samsung i300 - Windows Mobile smartphone with 1.3 megapixel camera, video camera, music player with surround sound, 3Gbyte hard drive, memory card & Bluetooth. Samsung L760 Ted Baker - 3G slide phone with 2 megapixel camera, video calling, music player, memory card & Bluetooth. Samsung P300 - Ultra-slim phone with 1.3 megapixel camera, video camera, music player & Bluetooth Samsung P400 - integrated digital camera, full colour screen & Java games Samsung P510 - clamshell-design phone with automatic open/close, camcorder and 64-voice polyphonic ringtones Samsung S300 - one of the smallest, lightest, clamshell design phones ever Samsung S400i - Slide phone with video camera, Bluetooth & i-mode web browser. Samsung S500i - high-spec i-mode phone Samsung T100 - stylish phone with colour display and polyphonic ringtones. Samsung U100 - Ultra-slim phone with 3 megapixel camera, video camera, music player & Bluetooth. Samsung U700 - 3G slide phone with 3 megapixel camera with autofocus, video calling, music player, memory card, Bluetooth & HSPDA. Samsung V200 - integrated digital camera and full colour screen Samsung X450 - tiny clamshell phone with excellent features, but no camera Samsung X460 - tiny dual-display clamshell phone with excellent features, but no camera Samsung X480 - tiny triband clamshell phone Samsung X600 - "candy bar" design phone with digital camera Samsung X640 - entry-level camera phone Samsung X660 - Clamshell phone with video camera. Samsung X820 - Ultra-slim phone with 2 megapixel camera, video camera, music player & Bluetooth. Samsung X830 - Compact ratating phone with 1.3 megapixel camera, video camera, music player & Bluetooth. Samsung Z107 - entry-level 3G phone with video calling Samsung Z130 - 3G phone with rotating widescreen display Samsung Z140 - Slimline 3G clamshell phone with video calling, music player & Bluetooth Samsung Z300 - 3G clamshell with 3D stereo sound Samsung Z320i - 3G slide phone with 1.3 megapixel camera, video calling, music player, Bluetooth & i-mode web browser. Samsung Z400 - 3G slide phone with 2 megapixel camera, video calling, music player, memory card & Bluetooth. Samsung Z500 - Slimline 3G clamshell phone with 1 megapixel camera, video calling, music player, memory card & Bluetooth Samsung Z510 - Super-slim 3G clamshell phone with 1.3 megapixel camera, video calling, music player & Bluetooth Samsung Z540 - Super-slim 3G clamshell phone with 1.3 megapixel camera, video calling, music player & Bluetooth. Samsung Z560 - 3G clamshell phone with 2 megapixel camera with autofocus, video calling, music player, memory card, Bluetooth & HSPDA. Samsung Z720 - 3G slide phone with 3 megapixel camera with autofocus, video calling, music player, memory card, Bluetooth & HSPDA. Samsung ZV40 - 3G clamshell phone with 1.3 megapixel camera, video calling, music player, memory card & Bluetooth.

PRICE:
Samsung i900 Omnia Samsung G600 Samsung D900i Samsung D840 Samsung E840 Samsung J600 Samsung E250 Samsung X210 Samsung M610 Samsung M600 Samsung C170 Samsung C160 Rs.27160 Rs.16528 Rs.10124 Rs.8499 Rs.8252 Rs.5042 Rs.4215 Rs.3978 Rs.3963 Rs.2965 Rs.2096 Rs.1766

PLACE: Samsung is churning out phones in Haryana, a state nearby Indias capital New Delhi; Headquartered in New Delhi, Samsung India has a network of 19 branches and 16 Area Sales Offices (ASOs) located all over the country, and the number is expected to grow, as the organization continues to expand its horizons. SAMSUNG India has strengthened its distribution network in the country, by appointing SSK and Link as its distributors for Mobile sales in the Western and Eastern part of the country respectively. Thus, in addition to Telemart and United Telelinks who were two distributors handling the distribution of SAMSUNG Mobiles in the country, the Company now has four distributors, each operating on a regional basis. Telemart services the Northern markets while UTL services South.

Distribution network of Samsung: Original equipment manufacturer/ vendor or supplier

PROMOTION: Innovative promotion and advertising initiatives

To establish trust and confidence among Indian consumers, Samsung did active promotion and Advertising Samsung India associated itself with the ruling passion of the Indian mass consciousness: Cricket. Samsung launched the Team Samsung campaign with the stars of the Indian cricket team, which caught the imagination of an entire nation. In 2004, Samsung also brought to India what was possibly the biggest cricketing spectacle of this decade, the historic India vs. Pakistan cricket series - The Samsung Cup. Not confining itself to cricket, Samsung sponsors the Indian contingent to the Olympics and the

Asian Games. It also ran training programmes for deserving Indian athletes under the Olympic Ratna banner. Samsung has also helped bring to India, for the first time, the Olympic torch relay. Samsung also brings every year to India - the World Cyber Games, which is regarded as the Olympics of the Cyber world Samsung also launched a series of innovative below-the-line activities. In mobile phones, Samsung tied up with noted painter Satish Gujral for his paintings to be available as downloads on Samsung mobile phones. Product placement, was done in movies and popular television serials like Jassi where Samsung products were set in lifestyle environments. Branded its products as superior technology and environment friendly ones. Integrating email into samsungs marketing mix: Email plays a small but important part in Samsungs marketing strategy. It is used to maintain relationships with Samsung customers, increase brand awareness and loyalty, and of course to generate new leads. Our email marketing strategy has yielded good results for us in the last five years, enabling us to build a significant range of touch points with our membership. We use it to creatively and efficiently communicate new announcements such as the latest handsets and partnership initiatives that will be of interest to our customers, comments Nick Turner-Samuels, Samsung Mobiles Online Marketing Manager. TARGETING: Targeting the mid-range and high-end segments, Samsung's strategy of small-volume production of numerous models has created high profit margins, and built up a strong brand. Samsung also forges ahead into the premium mass mobile phone market, unveiling Samsung J700, the brand new stylish multimedia phone to expand its existing customer groups. The new phone is not only sleek looking, but also comes complete with ranges of entertaining functions to serve all modern lifestyles. The phone will be Samsungs new ace weapon to battles in the mid-to-low range mobile phone markets. The smart phones will target the busy executive, who requires a business mobile that offers optimum performance, 24/7, from any location.

PO SITIONING: The Company plans to leverage Aamir in its brand advertising as well as product advertising for Mobile phones. In Sync with its thrust on introducing innovative, consumer oriented, breakthrough technology products, SAMSUNG announced its new brand positioning for SAMSUNG Mobiles, which is reflected in its new, spunky, tagline - Next is What ? being used in all its communication material for mobiles . Living up to its promise of Next is What?, SAMSUNG announced the launch of five new, sleek and stylish SAMSUNG Mobile phones that exemplify cutting edge technology and design innovation. The new handset range targets consumers across the multimedia (Imaging and Music), Business Lifestyle and Popular segments.

Established in 1997, LG Electronics India Pvt. Ltd., is a wholly owned subsidiary of LG Electronics, South Korea. In India for a decade now, LG is the market leader in consumer durables and recognised as a leading technology innovator in the information technology and mobile communications business . LG is the acknowledged trendsetter for the consumer durable industry in India with the fastest ever nationwide reach, latest global technology and product innovation. One of the most formidable brands, LGEIL has an impressive portfolio of Consumer Electronics, Home Appliances, GSM mobile phones and IT products. LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January, 1997 after clearance from the Foreign Investment Promotion Board (FIPB). The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4 and 1/2 months with the commencement of operations in May 1997. LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crores. This facility manufactured Colour Televisions, Washing Machines, AirConditioners and Microwave Ovens. During the year 2001, LG also commenced the home production for its eco-friendly Refrigerators and established its assembly line for its PC Monitors at its Greater Noida manufacturing unit.The beginning of 2003 saw the roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater Noida.

In 2004, LGEIL also up its second Greenfield manufacturing unit in Pune, Maharashtra that commences operations in October 2004. Covering over 50 acres, the facility manufactures LCD TV, GSM Phones, Color Televisions, Air Conditioners, Refrigerators, Microwave Ovens Color Monitors.

Both the Indian manufacturing units has been designed with the latest technologies at par with international standards at South Korea and are one of the most Eco-friendly units amongst all LG manufacturingplantsintheworld.

LG has been able to craft out in ten years, a premium brand positioning in the Indian market and is today the most preferred brand in the segment. PRODUCT: LG are one of the world's electronic giants, and have made a big effort in the mobile arena in the past year or two. Never afraid of innovative designs, some of LG's recent phones have proven to be awkward to use, but LG are showing that they can learn from their mistakes. We look forward to see where this company is going in 2008, especially with their iPhone-beating range of touchscreen phones. Most popular LG phones:

LG KP500 Cookie LG KC910 Renoir LG Viewty Black / LG LG Arena KM900 Touchscreen phone, 3.2 Touchscreen-operated 3G phone, 8 Touchscreen-operated 3G Viewty Silver megapixel camera, video megapixel camera with autofocus, Touchscreen-operated 3G phone, 5 megapixel camera, music player, video calling, music player, GPS, phone, 5 megapixel camera with autofocus, memory card & memory card & Bluetooth. camera with autofocus, video calling, music Bluetooth. video calling, music player, GPS, memory player, memory card & card, Bluetooth & Bluetooth. WiFi.

LG KS360 Touchscreen phone with full QWERTY keypad, 2 megapixel camera, video camera, music player, FM radio, memory card & Bluetooth.

LG Secret KF750 3G sliding phone with touchsensitive screen, 5 megapixel camera, video calling, music player, memory card & Bluetooth.

LG Shine LG Chocolate Sliding phone with 2 Sliding phone with touchmegapixel camera with sensitive keypad, 1.3 autofocus, video camera, megapixel camera, video music player & camera, music player & Bluetooth. Bluetooth.

LG Prada 2 LG Prada LG KF510 LG KC780 Touchscreen-operated 3G Touchscreen-operated phone, 2 Sliding phone with touch- Sliding phone with 8 phone, 5 megapixel megapixel camera, video camera, sensitive keypad, 3 megapixel camera with camera with autofocus, music player & Bluetooth. megapixel camera, video autofocus, video camera, video calling, music camera, music player, music player, FM radio, player, memory card, memory card & memory card & WiFi & Bluetooth. Bluetooth. Bluetooth.

Old LG phones
LG KC550 Orsay - Sliding phone with 5 megapixel camera with autofocus, video camera, music player, memory card & Bluetooth. LG KF700 - 3G sliding phone with touchscreen, 3 megapixel camera with autofocus, video calling, music player, memory card & Bluetooth. LG Venus KF600 - Sliding phone with touch-sensitive dual screen, 3 megapixel camera, video camera, music player, memory card & Bluetooth. LG KG225 - Clamshell phone with camera. LG U300 - 3G clamshell phone with 1.3 megapixel camera, video calling, music player, memory card & Bluetooth. LG U400 Neo - 3G sliding phone with 2 megapixel camera, video calling, music player, memory card & Bluetooth. LG U880 - LG's thinnest, lightest 3G mobile to date. LG U890 - 3G slimline clamshell phone with 1.3 megapixel camera, video calling, music player, memory card & Bluetooth. LG U8110 - clamshell style 3G phone available on the 3 network LG U8120 - restyled U8110 with increased memory LG U8130 - minor update to the U8120 3G clamshell LG U8138 - enhanced version of the U8130 LG U8150 - enhanced version of the U8130 with better screen LG U8330 - 3G clamshell with enhanced colour screen LG U8360 - 3G clamshell with Bluetooth LG U8380 - 3G clamshell with Bluetooth & 3D stereo sound

PRICE: LG
LG KU990 Viewty LG KG195 LG KG276 Rs.18400 Rs.3850 Rs.1350

PLACE
LG Electronics is making phones near Pune, a city near Indias financial capital, Mumbai. LG Electronics has appointed the handset distributor, Brightstar as their partner in shipping LG GSM mobile phone in India for sales through Network Operators. Mr. H.S. Bhatia - Business Group Head, LG GSM Mobiles said, Brightstar has been appointed as the National Distributor for LG GSM mobile handsets for Operator Bundling Sales of GSM Network Operators.

"The challenge in India is not demand for wireless handsets, but rather the ability for manufacturers to reach consumers quickly in our highly fragmented marketplace. The ability to distribute products anywhere across the country and provide speed to market are key components for success."

The ability to distribute products anywhere across the country and provide speed to market are key components for success, he added. Arun Batra, country head, Brightstar Telecom India Pvt. Ltd. is confident that Brightstar India will increase LG's market share of their highly regarded mobile devices through speed of delivery using their strong distribution network.

Brightstar is currently doing the bundled deal with Airtel network. We will continue to expand our support services to meet the demand and exceed LG's expectations in 2007, he concluded.

Brightstar launched its subsidiary in India, Brightstar Telecom, in 2005. To best serve this market, the subsidiary operates two main sales and distribution offices in Mumbai and Delhi, as well as 22 main hubs supported through 79 billing points throughout the country. This infrastructure allows Brightstar fast delivery, localized distribution and billing support across India

PROMOTION: The tag line of lg is lifes good and their brand ambassador is Abhishek Bachan. Lg positioned itself as Indian brand and they are hitting at the emotional attributes of Indian consumer. For the marketing of the products a number of activities are followed 1. Exhibitions are conducted from time to time. 2. Society and college activities are conducted. 3. Hoarding, Posters, banners are used so as to grab the attention of the costumers. 4. Day to day advertisement in leading newspaper. 5. Discount at festival time. 6. For dealer relationship they arrange dealer meting at several time in the year 7. LG divide dealer in gold silver etc. category to know the performance of the dealers.

8. They have their sales persons at various sub dealer store and at mordent trade store for particularly for the promotion of the LG product. 9. LG also uses the radio FM for the promotion activities. 10. Also provide capon and scratch card for festive season.

Positioning Statement LG strives to enhance the customers life (and lifestyle) with intelligent features, intuitive functionality, and exceptional performance. Choosing LG is a form of self-expression and selfsatisfaction. Our customer will take pride in owning the amazing and take comfort in knowing he/she made a smart, informed decision.

With the tag line of lifes good, LG positioning is to differentiate their products on the basis of technology which appealed to the consumer. With the tagline lifes good its corporate strategy to make peoples life better, convenient and healthier. Their positioning strategy are technologically intelligent and futuristic As they are in the upper and premium segment so they are featuring their brand as young, vibrant and premium. They are talking about value and changing life styles in their positioning strategy.

Targeting: LG has targeted its market on the basis of the product that they are offering to the consumer They are targeting: upper class segment They are targeting to those who are more concern of life style product Their product is more of upper middle class and premium segment, so their target audience are those consumers who want quality product at the best price. Lg is now going to shift to mid class segment with the aim to mass market their product

Motorola India is headquartered at Gurgaon, Haryana, with offices at Delhi, Mumbai and Bangalore. It has research and development centers at Bangalore and Hyderabad. Motorola's operations in India are divided into three businesses: Enterprise Mobility Solutions, Home & Network Mobility and Mobile Devices. The Companys focus areas include, Mobile handsets, Wireless Infrastructure, Managed and Hosted Services, Broadband Equipment (wired as well as wireless), Trunking & Two Way Radios, Software Development, Applied Research and Development on Seamless Mobility/Convergence technologies. As a pioneer in wireless communications, Motorola has transformed the cell phone into an icon of personal technology an integral part of daily communications, data management and mobile entertainment. Motorola not only designs, manufactures sells and services wireless handsets, but also licenses its vast portfolio of intellectual property. Our collection spans all cellular and wireless systems and includes integrated software applications as well as a large complement of Bluetooth-enabled accessories. We offer customers innovative product designs that deliver "must have" experiences, such as mobile music and video enabling seamless connectivity at work or at play. The Mobile Devices division is the largest division (based on revenue) of communications corporation Motorola. The division is headquartered in Libertyville, Illinois, a Chicago suburb. Motorola's networks division (called Personal Communication Section (PCS) prior to 2004) pioneered the flip phone with the StarTAC in the mid-1990s. Motorola had a commanding lead in the analog cell phone market, but failed to jump on the digital bandwagon. This mistake combined with the lack of design innovation gave Finnish company Nokia the opportunity to leapfrog ahead of Motorola. Nokia today is the world's largest manufacturer of cell phones with a commanding 39% market share. Motorola is 4th place with with a 9% market share as of 4th quarter of 2008.where as Motorola was in 3rd position last year with a market share of 14 %.

PRODUCT: Motorola peaked with the release of the V3 RAZR phone back in 2004 and have been struggling to repeat that success ever since. Their range of handsets is now much smaller: their sales volume and reputation also diminished. Most popular Motorola phones:

Motorola RAZR 2 V9 Super-slim 3G clamshell phone, with video camera, 2 megapixel camera, music player, memory card & Bluetooth.

Motorola Jewel Clamshell phone with 2 megapixel camera, video camera, music player, expandable memory & Bluetooth.

Motorola U9 Clamshell phone with 2 megapixel camera, video camera, music player, expandable memory & Bluetooth.

Motorola ROKR E8 Touchscreen music phone with 2 megapixel camera, video camera, music player, FM radio memory card & Bluetooth.

Old Motorola phones

Motorola A830 - early 3G phone Motorola A835 - 3G multimedia phone Motorola A920 - 3G multimedia phone Motorola A925 - 3G multimedia phone Motorola A1000 - 3G smartphone Motorola C350 - colour phone with polyphonic ringtones and self-mixed ringtones Motorola C450 - based on the C350 and with MMS, improved audio quality and battery life, Java games and a photo phone book Motorola C550 - colour phone with integrated digital camera Motorola C975 - entry-level 3G phone with video calling and mp3 player Motorola ROKR E1 - MP3 player phone with iTunes and 3D surround sound Motorola E365 - entry-level camera phone with 65k colour display Motorola E398 - full-featured phone that doubles as an MP3 player with surround sound Motorola E550 - clamshell phone with video camera, MP3 ringtones and Bluetooth Motorola E1000 - multimedia phone Motorola E1070 - 3G clamshell phone with 1.3 megapixel camera, video calling, stereo MP3 player, memory card & Bluetooth Motorola KRZR K1 - Super-slim clamshell phone, with reflective glass-coated surface, video camera, 2 megapixel camera, music player, expandable memory & Bluetooth. Motorola KRZR K3 Motorola L2 - superslim budget phone

Motorola L6 - Ultra-slim "candy bar" style phone with video camera, MP3 ringtones & Bluetooth. Motorola SLVR L7 - Ultra-slim "candy bar" style phone with video camera, music player, memory card & Bluetooth. Motorola SLVR L9 Motorola MAXX V6 - 3G RAZR phone with 2.0 megapixel camera, video calling, music player, memory card, Bluetooth & HSDPA (3.5G). Motorola MPx200 - smartphone based on Windows Mobile software Motorola MPx220 - smartphone based on Windows Mobile software Motorola PEBL - Clamshell phone with video camera, MP3 ringtones & Bluetooth. Motorola T720 - fun phone with colour display, polyphonic ringtones and Java games Motorola T720i - adds a plug-in digital camera to the T720 Motorola V3X - 3G version of the RAZR phone with 2 megapixel camera, video calling, music player, memory card & Bluetooth. Motorola V3XX - 3G RAZR phone with 1.3 megapixel camera, video calling, music player, memory card, Bluetooth & HSDPA (3.5G). Motorola V80 - fashion phone with unique rotating design Motorola RAZR 2 V8 - Super-slim clamshell phone, with video camera, 2 megapixel camera, music player, 2 Gbyte memory & Bluetooth. Motorola V220 - entry-level clamshell camera phone Motorola V3 - The original super-slim phone with camera, MP3 ringtones & Bluetooth. Motorola V3i - Upgraded version of the RAZR phone with 1.2 megapixel camera, video camera, MP3 player, memory card & Bluetooth. Motorola V300 - clamshell phone with 65k colours and integrated camera Motorola V360 - clamshell phone with MP3 player, video camera and Bluetooth Motorola V500 - clamshell phone with camera, MP3 ringtones and Bluetooth Motorola V525 - similar in spec to the V500 Motorola V545 - clamshell phone with video camera, MP3 ringtones and Bluetooth Motorola V547 - clamshell phone with video camera, MP3 ringtones and Bluetooth Motorola V550 - clamshell phone with video camera, MP3 ringtones and Bluetooth Motorola V600 - clamshell phone with camera, MP3 ringtones, Bluetooth and video playback Motorola V620 - highly-specified phone with video camera, MP3 ringtones and Bluetooth wireless connectivity Motorola V635 - 1.2 megapixel camera phone with video camera, MP3 player and Bluetooth wireless connectivity Motorola V975 - entry-level 3G clamshell phone with video calling and mp3 player Motorola V980 - 3G clamshell phone Motorola V1050 - high-spec 3G clamshell phone. Motorola W220 - Clamshell phone with FM radio. Motorola RIZR Z3 - Super-slim slide phone, with 2 megapixel camera, video camera, music player, expandable memory & Bluetooth. Motorola RIZR Z10 - Super-slim 3G Symbian slide phone, with 3.2 megapixel camera, video calling, music player, expandable memory, Bluetooth & HSDPA (3.5G). Motorola ROKR Z6 Motorola RIZR Z8 - Super-slim 3G Symbian slide phone, with 2 megapixel camera, video calling, music player, expandable memory, Bluetooth & HSDPA (3.5G).

PRICE:

Pricing decision always depends on the product class. Customers always think that higher price product having high quality, and lower price product reflects bargaining condition. So Motorola positioned its products price on the basis of technology, style, and also requirement or need of the customer. Motorola mainly emphasis on those models that capture the market share in semiurban and rural markets. For eg) Motorola launched handset for Rs.1200
Motorola Aura Motorola VE66 Motorola Q9h Motorola ZN5 Motorola RAZR2 V8 Motorola A1600 Motorola ROKR E8 Motorola U9 Motorola ROKR E6 Motorola EM30 Motorola A810 Motorola ZN200 Motorola SLVR L9 Motorola EM325 Motorola W396 Motorola W388 Motorola L6i Motorola W270 Motorola W230 Motorola W218 Motorola W181 Motorola W180 Rs.106154 Rs.19231 Rs.17401 Rs.15727 Rs.14326 Rs.14161 Rs.12500 Rs.10658 Rs.9450 Rs.8426 Rs.7451 Rs.6312 Rs.6250 Rs.4999 Rs.3960 Rs.3402 Rs.3215 Rs.2979 Rs.2532 Rs.2399 Rs.1740 Rs.1700

PLACE:

Motorola India is looking at widening its handset distribution network across country. The company would have second-tier distributors in 100 cities by the year-end from the current level of 40 cities. This would help our company increase the depth and width of handset penetration across the country Motorola has a two-tier distribution network across the country for its handsets. It has appointed five regional distributors for the entire country who further handle distributions at city level. The distributors are Tech Pacific for the west, Redington India for the south, Surya Business for the east and Indian Overseas and Agrani for the north. Redington also happens to be national service partner of Motorola. Motorola technology has achieved an unpredictable growth in India, now having 3500R&D engineer in Bangalore and Hyderabad driving innovation and making contribution to local Indian markets.

PROMOTION: Motorola has launched a new mobile phone named AURA in India. This phone costs Rs. 1,11,000 (US $2,140 approx.). This new luxury and stylish handset was launched by Bollywood superstar and Motorolas brand ambassador Abhishek Bachchan in Mumbai. The company's advertising campaign with Bollywood star Abhishek Bachchan has also helped the company communicate and establish its brand in the market. Recently the company has considerably reduced its advertising and is in the process of laying off its executives in the marketing and communication division.

TARGETING The target market of motorola is urban and rural area. The target audience of motorola is youth. Motorola attracts its target audience through Price Slim and stylish Fashionable light weight Innovative technology handsets POSITIONING: Motorola positioned its product positioning strategy on the basis of its logo, color and tagline. The tagline of Motorola is Hello Moto and Intelligence Everywhere. Also Motorola positioned itself as a customer centric company.

Sony Ericsson, a 50:50 joint venture of Sony Corporation and Telefonaktiebolaget LM Ericsson, was established in October 2001. Sony Ericsson Mobile Communications is a global provider of mobile multimedia devices, including feature-rich phones, accessories and PC cards. The products combine powerful technology with innovative applications for mobile imaging, music, communications and entertainment. The net result is that Sony Ericsson is an enticing brand that creates compelling business opportunities for mobile operators and desirable, fun products for end users. Sony Ericsson Mobile Communications was established in 2001 by telecommunications leader Ericsson and consumer electronics powerhouse Sony Corporation. The company is owned equally by Ericsson and Sony and announced its first joint products in March 2002. Our mission is to establish Sony Ericsson as the most attractive and innovative global brand in the mobile handset industry.

Sony Ericsson products have universal appeal and are different in the key areas of imaging, music, design and applications. The company has launched products that make best use of the major mobile communications technologies, such as the 2G and 3G platforms,GSM, TDMA, CDMA, PDC, GPRS and WCDMA while enhancing its offerings to entry level markets. Sony Ericsson undertakes product research, design and development, manufacturing, marketing, sales, distribution and customer services. Global management is based in London, and R&D is in Sweden, UK, France, Netherlands, India, Japan, China and the US. The management team is led by President Hideki Komiyama, a former senior executive of Sony Europe and one of the key players in the growth of Sony in Europe; and Executive VicePresident and Head of Sales Anders Runevad, the former President of Ericsson Brazil. As new products are introduced to end user acclaim, existing products continue to receive

accolades and Sony Ericsson is today accepted as a world leader in design and innovation. The globally acclaimed T610 and later generations of the companys product portfolio frequently win awards. The GSM Association voted the V800 as Best 3G Handset for 2004, a fullyfeatured phone made for Vodafone with the full range of mobile entertainment features and multi-directional camera, and the K750i received the TIPA Award 2005/2006 for Best Mobile Imaging Device, chosen by 31 leading European photography/imagining magazines and judged on quality, performance and value for money. In February 2007 the GSM Association presented Sony Ericsson with the Best 3GSM Mobile Handset award for the K800 Cybershot phone. Sony Ericsson strives to be a cutting edge provider of applications, forging partnerships with developers and content providers. Strategic agreement with partners such as Sony BMG is one way in which the company is bringing the best and latest in entertainment content to its users The company is in 5th position with a market share of 8 % as of 4th quarter 2008 next to Motorola where as it was in 4th position with a market of 9 % in the last year.

PRODUCT:
Sony Ericsson is currently the world's number 4 manufacturer of mobile phones. A joint venture company between Sony and Ericsson, Ericsson bring with them years of experience in mobile phones, and Sony provides world-leading expertise in core technologies such as LCD displays, digital photography and audio, as well as a solid reputation for innovative design and high quality. Surely a winning combination! The Walkman branded range of phones (models with the letter "W" in their name) have proved to be especially popular. But Sony Ericsson disappointed us in 2007. The replacements for the K800i camera phone were underwhelming. Sony Ericsson introduced dysfunctional keypad designs into their 2007 Walkman models, and combined with the badly-made W580i, S500i, and W910i, many of the 2007 models have been worse than their 2006 counterparts. Let's hope that Sony Ericsson can get back on top in 2008!

Most popular Sony Ericsson phones:

Sony Ericsson C902 3G phone with 5 megapixel camera with autofocus, video calling, music player, radio, memory card, Bluetooth & HSDPA (3.5G). Sony Ericsson C905 3G slide phone with 8 megapixel camera with xenon flash, video calling, music player, radio, memory card, Bluetooth, WiFi & HSDPA (3.5G). Sony Ericsson W595 3.5G slide phone with 3.2 megapixel camera, video camera, music player, memory card & Bluetooth. Sony Ericsson W910i 3.5G superslim slide phone with 2 megapixel camera, video camera, music player, memory card & Bluetooth.

Sony Ericsson Xperia X1 3.5G touchscreen-operated phone with 3.2 megapixel camera with autofocus, video calling, music player, FM radio, memory card, Bluetooth & WiFi. Sony Ericsson K770i 3G phone with 3.2 megapixel camera with autofocus, video calling, music player, radio, memory card & Bluetooth. Sony Ericsson K850i 3G phone with 5 megapixel camera with autofocus, video calling, music player, radio, memory card, Bluetooth & HSDPA (3.5G). Sony Ericsson W890i 3G superslim phone with 3 megapixel camera, video camera, music player, memory card & Bluetooth.

Sony Ericsson K800i 3G phone with 3.2 megapixel camera with autofocus, video calling, music player, radio, memory card & Bluetooth. Sony Ericsson T303 Slide phone with 1.3 megapixel camera, music player, radio & Bluetooth. Sony Ericsson C702 3G phone with GPS satnav, 3.2 megapixel camera with autofocus, video calling, music player, radio, memory card & Bluetooth. Sony Ericsson W980i 3G clamshell phone with 3.2 megapixel camera, video calling, music player, radio, 8GB memory & Bluetooth.

Sony Ericsson W580i Sliding phone with 2 megapixel camera, video camera, music player, radio, memory card & Bluetooth. Sony Ericsson W880i 3G superslim phone with 2 megapixel camera, video camera, music player, memory card & Bluetooth. Sony Ericsson W902 3G phone with 5 megapixel camera with autofocus, video calling, music player, radio, 8GB memory card & Bluetooth. Sony Ericsson W850i 3G sliding phone with 2 megapixel camera, video calling, music player, radio, memory card & Bluetooth.

Sony Ericsson W302 Classic style phone with 2 megapixel camera , video camera, music player, radio, memory card & Bluetooth. Sony Ericsson W760i 3G phone with GPS satnav, 3.2 megapixel camera, video calling, music player, radio, memory card & Bluetooth. Sony Ericsson W350i Flip phone with 1.3 megapixel camera, music player, radio & memory card & Bluetooth. Sony Ericsson Z750i 3G clamshell phone with 2 megapixel camera, video calling, music player, memory card & Bluetooth.

Sony Ericsson G900 3G smartphone with 5 megapixel camera with autofocus, video camera, music player, memory card, touchscreen, Bluetooth & WLAN. Sony Ericsson G502 3G phone with 2 megapixel camera, video calling, music player, radio, memory card & Bluetooth. Sony Ericsson S500i Sliding phone with 2 megapixel camera, video camera, music player, memory card & Bluetooth. Sony Ericsson K550i "Candy bar" style phone with 2 megapixel camera with autofocus, video camera, music player, radio, memory card & Bluetooth.

Sony Ericsson K660i 3G phone with 2 megapixel camera, video calling, music player, radio, memory card & Bluetooth. Sony Ericsson K530i 3G phone with 2 megapixel camera, video calling, music player, radio, memory card & Bluetooth. Sony Ericsson W200i Classic style phone with VGA camera , video camera, music player, radio & memory card. Sony Ericsson F305 Slide phone with 2 megapixel camera, video camera, music player, radio, memory card & Bluetooth.

Sony Ericsson C510 3G phone with 3.2 megapixel camera with autofocus, video calling, music player, radio, memory card, Bluetooth, GPS & HSDPA (3.5G). Sony Ericsson W705 3.5G slide phone with 3.2 megapixel camera, video camera, music player, memory card, Bluetooth, WiFi & HSDPA.

Old Sony Ericsson phones

Sony Ericsson D750i - similar to the K750i Sony Ericsson K300i - "Candy bar" style phone with VGA camera, video camera & music player Sony Ericsson K310i - "Candy bar" style phone with VGA camera, video camera & music player. Sony Ericsson K500i - excellent phone with camcorder, 65k colour screen and MP3 player. Sony Ericsson K508i - similar to the K500i. Sony Ericsson K510i - "Candy bar" style phone with 1.3 megapixel camera, video camera & music player & Bluetooth. Sony Ericsson K600i - slimline 3G phone. Sony Ericsson K608i - slimline 3G phone. Sony Ericsson K610i - 3G phone with 2 megapixel camera, video calling, music player, memory card & Bluetooth. Sony Ericsson K630i - 3G phone with 2 megapixel camera, video calling, music player, radio, memory card & Bluetooth. Sony Ericsson K700i - superb phone with camcorder, Bluetooth wireless connectivity, large 65k colour screen, FM radio and MP3 audio. Sony Ericsson K750i - "Candy bar" style phone with 2 megapixel camera with autofocus, video camera, music player, radio, memory card & Bluetooth. Sony Ericsson K810i - 3G phone with 3.2 megapixel camera with autofocus, video calling, music player, radio, memory card & Bluetooth. Sony Ericsson P800 - high spec PDA-style phone with integrated digital camera. Sony Ericsson P900 - enhancement of the P800, with video recorder, upgraded screen and memory. Sony Ericsson P910i - high spec PDA-style phone with integrated digital camera, video camera and media player. Sony Ericsson P990i - 3G smartphone with 2 megapixel camera with autofocus, video calling, music player, radio, memory card, touchscreen, Bluetooth & WLAN. Sony Ericsson S700i - high-spec phone with huge 262k colour screen, 1.3 megapixel camera and camcorder. Sony Ericsson T68i - triband colour phone with optional CommuniCam digital camera. Sony Ericsson T200 - entry-level triband phone with optional CommuniCam digital camera. Sony Ericsson T230 - entry-level phone with colour screen. Sony Ericsson T290i - entry-level phone with colour screen. Sony Ericsson T300 - basic phone. Sony Ericsson T310 - basic phone. Sony Ericsson T610 - camera phone with Bluetooth Sony Ericsson T630 - upgraded version of the T610 camera phone. Sony Ericsson V600i - slimline 3G phone. Sony Ericsson V630i - 3G phone with 2 megapixel camera, video calling, music player, radio, memory card & Bluetooth. Sony Ericsson V800 - 3G clamshell phone. Sony Ericsson W300i - Clamshell phone with VGA camera , video camera, music player, radio, memory card & Bluetooth.

Sony Ericsson W550i - music player phone with swivel design. Sony Ericsson W610i - "Candy bar" style phone with 2 megapixel camera with autofocus, video camera, music player, radio, memory card & Bluetooth. Sony Ericsson W660i - 3G phone with 2 megapixel camera, video calling, music player, radio, memory card & Bluetooth. Sony Ericsson W700i - "Candy bar" style phone with 2 megapixel camera, video camera, music player, radio, memory card & Bluetooth. Sony Ericsson W710i - Clamshell phone with 2 megapixel camera , video camera, music player, radio, memory card, Bluetooth & sports functions. Sony Ericsson W800i - "Candy bar" style phone with 2 megapixel camera with autofocus, video camera, music player, radio, memory card & Bluetooth. Sony Ericsson W810i - "Candy bar" style phone with 2 megapixel camera with autofocus, video camera, music player, radio, memory card & Bluetooth. Sony Ericsson W900i - 3G phone with 2 megapixel camera with autofocus, video calling, music player, radio, memory card & Bluetooth. Sony Ericsson W950i - 3G smartphone with music player, radio, 4 Gbytes of flash memory, touchscreen & Bluetooth. Sony Ericsson W960i - 3G smartphone with 3.2 megapixel camera with autofocus, video calling, music player, radio, 8 Gbytes memory, touchscreen, Bluetooth & WLAN. Sony Ericsson Z200 - entry-level flip phone. Sony Ericsson Z300i - entry-level flip phone. Sony Ericsson Z520i - Clamshell phone with VGA camera , video camera, music player & Bluetooth. Sony Ericsson Z530i - Clamshell phone with VGA camera , video camera, music player, memory card & Bluetooth. Sony Ericsson Z600 - clamshell phone with integrated digital camera & Bluetooth. Sony Ericsson Z610i - 3G clamshell phone with 2 megapixel camera, video calling, music player, memory card & Bluetooth. Sony Ericsson Z710i - Clamshell phone with 2 megapixel camera, video camera, music player, memory card & Bluetooth.

PRICE: Pricing decisions are almost always made in consultation with marketing management. Price is the only marketing mix variable that can be altered quickly. Price variables such as dealer price, retail price, discounts, allowances, credit terms etc. influence the development of marketing strategy, as price is a major factor that influences the assessment of value obtained by customers. Customers directly relate price to quality, particularly in case of products that are ego intensive of technology based. Sony being a company which emphasize product quality, it tends to sell its products with price range from moderately-high to high-prices, depending on the use and the targeted customers.

For example, Lets consider Sony Ericsson series of handsets. Sony has tried to categorize the handsets according to style, user, purpose, mobility and performance, and each a corresponding price.
Sony Ericsson XPERIA X1 Sony Ericsson G705 Sony Ericsson C905 Sony Ericsson W960i Sony Ericsson W980 Sony Ericsson G900 Sony Ericsson W902 Sony Ericsson C902 Sony Ericsson P1i Sony Ericsson K850i Sony Ericsson W705 Sony Ericsson W760i Sony Ericsson C702 Sony Ericsson G700 Sony Ericsson W890i Sony Ericsson W830i Sony Ericsson W595 Sony Ericsson W910i Sony Ericsson T700 Sony Ericsson K770i Sony Ericsson K810i Sony Ericsson K790i Sony Ericsson TM506 Sony Ericsson K660i Rs.36357 Rs.28000 Rs.27856 Rs.24536 Rs.22277 Rs.19579 Rs.19231 Rs.18051 Rs.17324 Rs.17092 Rs.15995 Rs.15309 Rs.14839 Rs.13840 Rs.13785 Rs.13778 Rs.13670 Rs.12710 Rs.11563 Rs.11241 Rs.10600 Rs.9739 Rs.9615 Rs.9201

Sony Ericsson W580i Sony Ericsson W660i Sony Ericsson F305 Sony Ericsson W380i Sony Ericsson W302 Sony Ericsson G502 Sony Ericsson K550i Sony Ericsson S302 Sony Ericsson W350i Sony Ericsson Z555i Sony Ericsson T303 Sony Ericsson W200i Sony Ericsson R306 Radio Sony Ericsson T280 Sony Ericsson R300 Radio Sony Ericsson K320i Sony Ericsson K330 Sony Ericsson T250i Sony Ericsson K220i Sony Ericsson J132 Sony Ericsson J120i

Rs.9166 Rs.9015 Rs.8012 Rs.7912 Rs.7297 Rs.7132 Rs.6903 Rs.6484 Rs.5877 Rs.5787 Rs.4676 Rs.4052 Rs.3934 Rs.3836 Rs.3343 Rs.3101 Rs.3008 Rs.2915 Rs.2538 Rs.1833 Rs.1738

PROMOTION: PROMOTION MIX:

Sony India will spend Rs 200 crore in this financial year on advertising and promotion (Promotional Budget) of the entire range of consumer electronics, out of which Rs 60 crore will be spent only on digital imaging products.

Advertising Advertising is any paid form of non-personal mass communication through various media to present and promote product, services and ideas etc. by an identified sponsor. So far, SONY has advertised its products through many different ways and media.. Sony advertises its products by targeting those favorable television programs, like sports, series and also it has its own channel called Sony TV channel. Sony uses some events like Miss India 2008 to promote its products. Through newspapers like Times of India, Sony has advertised a wide range of products it offers to its customers. And also through Posters a message has been sent to a lot of people to be aware of the products which Sony offers. Sony also uses direct response advertising. This is type of advertising that encourages the consumer to respond either by providing feedback to the advertiser or placing the order with the advertiser either by telephone, mail or the internet. Such advertising is done through direct mail or catalogues. Sony incorporates co-operative advertising in its advertising process. Sony corporation provides the dealers (e.g. Sony World) with the materials and guidelines to develop ads for print, television or radio commercials. This ensures that message is in line with, what the manufacture wants to communicate. The company and the dealers usually share the media costs and hence, the name co-operative advertising.

Sales Promotion Sales promotion is a marketing discipline that utilizes a variety of incentives techniques to structure sales related programs targeted to customers, trade, and/or sales levels that generate a specific, measurable action or response for a product or service. Sales promotions for example includes free samples, discount, rebates, coupons, contents and sweepstakes, premiums, scratch cards, exchange offers, early bird prizes, etc. Sony has promoted its Sony Ericsson P1i phones by including scratch cards which gives the customer the offer to download 10 free software application for that mobile phone.

Sony Ericsson has also promoted its Sony Ericsson K550i Mid-Range Cyber-shot Phone that if you buy it you get a free Bluetooth headset with one year manufacturers warranty.

PLACE Place (Distribution) MANUFACTURER

RETAILER

CUSTOMER

Decisions with respect to distribution channel focus on making the product available in adequate quantities at places where customers are normally expected to shop for them to satisfy their needs. Depending on the nature of the product, marketing management decides to put into place an exclusive, selective or intensive network of distribution, while selecting the appropriate dealers or wholesalers. Sony being the company which positions itself as a seller of durable and high-end products, it is practicing selective distribution of its products from the selective dealers i.e. SONY World. Apart from this there are grey-markets in India and other countries where a practice of intensive market coverage is practiced, and the products in these kind of markets normally do not posses all the features and benefits which Sony offers e.g. warranty and guarantee. Sony distributes its products in various channels. It uses Zero-level channel, one level channel and two-level channel. In India, Sony has used the method of one-level distribution channel. This means that, customer buy their Sony product from the retailers recognized by Sony, and these retailers buy the products directly from the company itself. i.e. Through the internet, Sony has helped its customers to find the nearest retail shop where they can buy the Sony products. All you have to do is to go to their website e.g. www.sony.co.in/section/shop and specify the product and location. Then it will display all the nearest retail shop available.

POSITIONING STRATEGY:

W595.Share your great music moments W350i.designed for music made for life W705...one click to online music T707.the light of your life C905..getting the best shot Sony Ericsson attracts its buyers by positioning its handsets mainly on music and camera features. The above tag line depict the positioning strategy of Sony Ericsson

NEW PRODUCT LAUNCH

Company name: Aikon Private Limited. Company logo:

Tagline:

Share your world with the world Targeting: My company targets at the mid end and low end segment. My target audiences are people of age 50 and above. Product: The phones will be of a high quality, but will not be as technologically advanced as the recent phones that many famous handset companies released. The phones will be easier to use and carry the less advanced technology with WAP being the most advanced feature available in the new range of phones that will be released, as most of the people aged 50+ were technophobes or wanted mobile technology to be easier to use if they were going to purchase a mobile phone. Aikon999 entry level phone with reliable battery and basic features. Aikon888- entry level phone with color screen, fm radio and torch. Aikon777- flip phone with color screen, fm radio and torch. Aikon666- slim phone with color screen, fm radio and torch.

Price: If the technology released with the phones is not as advanced, the price does not need to be as high as the prices of the phones in the market at the moment, as less money is being spent on product development and the phones wont cost as much to produce, there is no need to keep the prices so high. I have decided to lower the price due to production costs, and it is also down to the fact that nearly all of the people who I intend to have set as the new target market (the 50+ market) dont prefer to spend much on buying a new mobile phone. Aikon999Aikon888Aikon777Aikon666Place: The manufacturing unit in India is set up in the outskirts of Chennai with the head office at the main city, Chennai. Our distributors: Hotspot: It is the leading multi brand store in India and has the widest range of handset and accessories. The product portfolio comprises mobile handsets, accessories, airtime connections, recharge vouchers, gaming devices and direct-to-home television devices. Subhiksha: Subhiksha is the largest multi brand mobile store in India and offers them for a lowest rate across all retailers. They sell original handsets with the same warranty as authorized dealers. They also provide spot finance which is another attractive feature for customers apart from low price. They also provide accessories and recharge cards. Rs 999 Rs 1100 Rs 1300 Rs 1300

Univercell: Univercell was the first of this kind and has more than1,00,000 people buying from them which is higher compared to other distributers. They provide online shopping facility, door delivery service and also provide excellent after sales service. The Mobile Store: These store were established recently across India to provide a complete purchase experience in mobile phones. They have mobile handsets, airtime connections, accessories, product reviews, other value added services, after sales service and also deal with mobile repairs. They won the most wanted retailer in mobile and telecom in the India retail forum 2008. Promotion: There would be high promotion costs involved as there is at the introduction stage of any product life cycle. The best places to put print advertisements would be in supermarkets near the tills so people in the queue can read them and hopefully become interested in buying Aikon brand mobile phone. Also print adverts will be placed in magazines and newspapers where the target market will see them.

REFERENCES

WEBSITES www.mobileisgood.com www.mobile-prices-india.com www.indiacellular.com www.indiatimesinfotech.com www.economictimes.com www.businessline.com www.nokia.co.in www.sonyericsson.co.in www.lgindia.com www.hellomoto.com

BOOKS Marketing Management Philip Kotler

MAGAZINES: My Mobile- www.mymobile.co.in

T3 Tomorrows Technology Today-The gadget magazine- www.t3india.co.in