42826512 marketing plan of no kia by abby

8/3/2019 42826512 Marketing Plan of No Kia by Abby

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A project report on marketing plan of NOKIA

Submitted to:Dr. Anurupa B Singh

Submitted by:ABHISHEK PATHAK (FT-09-705)PG.NO 1


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ACKNOWLEDGEMENTI would like to express my heartfelt feelings and convey immense thanks to all those who gave me there moral support and shared their insights with me while I was preparing this project. First and foremost, I am highly thankful and indebtedto my faculty Dr. Anurupa Singh IILM GSM who has always been there to encourageand help us owe special thanks to her for providing

whenever i needed her help. I unending support & co-operation.

Last but not least, I will ever remain grateful and indebted to my parents, my teachers & friends who have always been the source of unending inspiration,

encouragement & guidance in pursuit of excellence & learning process throughoutmy life.

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Table of Content

Topic

Page No

Executive Summary

Company Profile

Situation Analysis

Segmentation

Nokia Strategies

Distributors

Conclusion

Implementation and control Contingency plans

.

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Executive Summary

Mobile phone market in India is going through major changes. Key players are losing market share while new and young companies, mostly from Asian countries, arecoming to the market. At the same time the market is slowly expanding when people are buying more phones than ever. The whole process of buying mobile phones has changed in the last few years. People no longer carry the same phone year in

year out , change is the fast technological development of the phones. But alsoconsumers but they change their phone every year, some even twice a year. One reason for these attitudes towards mobile phones has changed. Mobile phones are nolonger seen as expensive, hi-tech products, but they have become accessories like jewellery or a piece of clothing. Nokia is still the largest mobile phone company in the world, but its long-term dominance is now challenged more than ever. Observers have begun asking whether the cutting edge that has turned Nokia into the No 1 vendor still exists, as Nokias market share and revenues have been on thedecline. Falling average sales prices (ASPs) and market share have had an impact and forced Nokia to further re-think its strategy towards developed and emerging markets. This report gives an overview on what is happening on the mobile phone market today and analyses Nokias market position in the growing market. This re

port includes a brief introduction to Nokia followed by an environmental analysis, SWOT analysis of the company. Half way through the report you can find information about consumer behavior and segmentation. At the end, this report introduces the main strategies and objectives of Nokia for the competitive market. Finally we try to make a conclusion of the topics discussed and attempt to give somepossible answers to the question at hand.

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Company Profile 2.1 History

The roots of Nokia go back to the year 1865 with the establishment of a forest industry enterprise in South-Western Finland by mining engineer Fredrik Idestam.Elsewhere, the year 1898 witnessed the foundation of Finnish Rubber Works Ltd, and in 1912 Finnish Cable Works began operations. Gradually, the ownership of these two companies and Nokia began to shift into hands of just a few owners. Final

ly in 1967 the three companies were merged to form Nokia Corporation. At the beginning of the 1980s, Nokia strengthened its position in the telecommunications and consumer electronics markets through the acquisitions of Mobira, Salora, Televa and Luxor of Sweden. In 1987, Nokia acquired the consumer electronics operations and part of the component business of the German Standard Elektrik Lorenz, as well as the French consumer electronics company Oceanic. In 1987, Nokia also purchased the Swiss cable machinery company Maillefer. In the late 1980s, Nokia became the largest Scandinavian information technology company through the acquisition of Ericsson's data systems division. In 1989, Nokia conducted a significant expansion of its cable industry into Continental Europe by acquiring the Dutchcable company NKF. Since the beginning of the 1990's, Nokia has concentrated onits core business, telecommunications, by divesting its information technology

and basic industry operations.

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2.1.1 1865-1960 From its inception, Nokia was in the communications business asa manufacturer of paper - the original communications medium. Then came technology with the founding of the Finnish Rubber Works at the turn of the 20th century. Rubbers, and associated chemicals, were leading edge technologies at the time.Another major technological change was the expansion of electricity into homesand factories which led to the establishment of the Finnish Cable Works in 1912and, quite naturally, to the manufacture of cables for the telegraph industry an

d to support that new-fangled device the telephone! After operating for 50 years, an Electronics Department was set up at the Cable Works in 1960 and this pavedthe way for a new era in telecommunications. Nokia Corporation was formed in 1967 by the merger of Nokia Company - the original paper-making business - with the Finnish Rubber Works and Finnish Cable Works. 2.1.2 1960-1980 Design has always been important at Nokia and today's mobile phones are regarded as a benchmarkfor others to follow. Take, for example, multi-colored, clip-on fascias which turned mobiles into a fashion item overnight. But Nokia has always thought like that and back in the fashion-conscious 1960's when one branch of the corporation was a major rubber manufacturer, it hit on the idea of making brightly-colored rubber boots at a time when boots followed the Henry Ford principle you could haveany colour, so long as it was black! The '60s, however, were more important as

the start of Nokia's entry into the Telecommunications market. A radio telephonewas developed in 1963 followed, in 1965, by data modems - long before such items were even heard of by the general public.

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In the 1980's, everyone looked to micro computers as the next 'big thing' and Nokia was no exception as a major producer of computers monitors and TV sets. In those days, the prospect of High Definition TV, satellite connections and teletext services fuelled the imagination of the fashion conscious homeowner. In the background, however, changes were afoot. The world's first international cellularmobile telephone network, NMT, was introduced in Scandinavia in 1981 and Nokia made the first car phones for it. True enough, there were 'transportable' mobile

phones at the start of the '80's but they were heavy and huge. Nokia produced the original hand portable in '87 and phones have continued to shrink in inverse 2.1.3 1980-2001 It took a technological breakthrough and changes in the politicalclimate to create the wire-free world people are increasingly demanding today.The technology was the digital standard, GSM, which could carry data in additionto high quality voice. In 1987, the political goal was set to adopt GSM throughout Europe on July 1st 1991. Finland met the deadline, thanks to Nokia and the operators. Politics and technology have continued to shape the industry. The '80sand '90s saw widespread deregulation, which stimulated competition and customerexpectations. Nokia changed too and in 1992 Jorma Ollila, then President of Nokia Mobile Phones, was appointed to head the entire Nokia Group. The corporationdivested the non-core operations and focused on telecommunications in the Digita

l Age. Few people in the early '90s would have thought that 'going digital' would change things so. proportion to the growth of the market ever since.

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2.1.4 2001 and into the Future Nokia is harnessing its experience in mobility and networks to generate a startling vision of the future. Meeting rooms, officesand homes will be 'smart' enough to recognize their human visitors and give themwhatever they want by listening to their requests. Nokia welcomes change and improvement and can embrace new ideas at great speed. Such characteristics will never change but, as to the rest, the story has only just begun!

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2.2 Mission and Vision: 2.2.1 Vision Our customers continue to our First PriorityNokias future success depends on delivering great experiences to our customers bycreating products and solutions that work seamlessly and are appealing. 2.2.2 Mission In a world where everyone can be connected, we take very human approach totechnology Connecting is about helping people to feel close to what matters. Wherever, whenever, Nokia believes in communicating, sharing, and in the awesome potential in connecting the 2 billion who do with the 4 billion who dont. If we foc

us on people, and use technology to help people feel close to what matters, thengrowth will follow. In a world where everyone can be connected, Nokia takes a very human approach to technology. 2.2.3

StrategyWherever, whenever, we believer in communicating, sharing and in the awesome potential of connecting the 2 billion who do, with the 4 billon who dont. At Nokia,customers remain our top priority. Customer focus and consumer understanding must always drive our day-to-day business behavior. Nokias priority is to be the most preferred partner to operators, retailers and enterprises. Nokia will continueto be a growth company, and we will expand to new markets and businesses. Worldleading productivity is critical for our future success. Our brand goal is for

Nokia to become the brand most loved by our customers.

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In line with these priorities, Nokias business portfolio strategy focuses on fiveareas, with each having long-term objectives: - Create winning devices - Embrace consumer Internet service - Deliver enterprise solutions - Build scale in networks - Expand professional services There are three strategic assets that Nokiawill invest in and prioritize: - Brand and design - Customer engagement and fulfillment - Technology and architecture 2.2.4

OrganizationNokia comprises four business groups: Mobile Phones, Multimedia, Enterprise Solutions and Networks. Mobile Phones connects people by providing expanding mobilevoice and data capabilities across a wide range of mobile devices. We seek to put consumers first in our product-creation process and primarily target high-volume category sales. Multimedia brings connected mobile multimedia experiences toconsumers in the form of advanced mobile devices and applications. Our productsgive people the ability to create, access and consume multimedia, as well as share their experiences with others through a range of radio technologies. Revenueby four business groups Enterprise Solutions offers businesses and institutionsa broad range of products and solutions, including enterprise-grade mobile devices, underlying security infrastructure, software and services. We also collabora

te with other companies to provide fixed IP network security, mobilize corporateemail, and extend corporate telephone systems to Nokias mobile devices. Networksprovides network infrastructure, communications and networks service platforms,as well as professional services to operators and service providers. Networks focuses on the GSM family of radio technologies and aims at leadership in three areas: GSM, EDGE and 3G/WCDMA networks; core networks with increasing IP and multi access capabilities; and services. Our business groups are supported by various horizontal entities:PG.NO 10


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Customer and Market Operations is responsible for marketing, sales, sourcing, manufacturing and logistics for mobile devices from Mobile Phones, Multimedia andEnterprise Solutions. Technology Platforms is responsible for the competitiveness of Nokias technology assets. The group supports Nokias overall technology management and development by delivering leading technologies and well-defined platforms both to Nokias business groups and to external customers. Nokia-wide horizontal units drive and manage specific Nokia assets. They include brand and design, d

eveloper support, research and venturing, and business infrastructure. CorporateFunctions support Nokia's businesses with company-wide strategies and services.2.3 Mobile Phone Market In India NOKIAs hegemony in the GSM handset segment hasincreased during last one year. NOKIAs market share (in terms of unit sold) has grown to 74% in March 09 from 61.5% in October 08. In the colour segment too, Nokia has increased its market share to 55% in march 06 from 33.7% in march 05.In terms of value, Nokias overall market share has jumped to 70.5 % in march 06 from57.7% in October 05. In the colour phone category, its market share (in terms ofvalue) has increased to 59.3% in march 06 from 40.9% in October 05, according to ORG GFK estimates.

Fig.2.2

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NOKIAs performance over a year Once NOKIAs closest rival, Samsung has been losingits market share since October05 when it had an overall market share (in terms ofunits) of 1.2, to 7.8% I March06. The drop is much steeper in value terms whereits market share has fallen to 9.8% in March06 from 21.2% in October05. Sony Ericssons market share (in terms of units) has improved marginally from 7.1% October05to 7.6% in March06, although in value terms it has increased from 8.7% in October05 t 10.2% in March06. The colour segment, where Samsung used to rue once, has see

n its market share falling both in terms of units and value. The market share (units) has dropped to 16.3% in March06 from 34.9% in October05 ad in terms of value, has dropped to 14% in March06 from 32.5% in October05. Sony Ericssons market share in the colour segment is marginally more than the Samsungs at 16.7% (unit) and15.9% (value) in March06 and is an improvement over its October4 figures of 15.6%(units) and 14% (value). The total handset units sold in the top 10 towns in themonth of March is 5,06,493 units, from 4,68,621 units inOctober05. The total value of the handset s sold is Rs.245.6 crore as of March06 from Rs.236.1 crore in October06. The number of colour phones jumped to 2,11,779 units in March06 from 1,66,210 units in October05. The value of the colour phone market increased to Rs.15,208 lakhs in March06 from Rs13,023 lakhs in October05.

3. Situation Analysis:3.1 Social Analysis For electronics companies, take back and recycling add value. They support brand value and customer loyalty and inspire customer insights. They also demonstrate environmental responsibility. Manufacturers like Nokia aregenerally in a disadvantaged position for take back, due to the costs involved and the lack of many consumer touch points. Stakeholders in the take back and recycling process include governments, retailers, customers, consumers and products. Other stakeholders include recyclers, refurbishes and NGOs.

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The responsibility for bringing used devices back for recycling lies ultimatelywith the consumers. The challenge for Nokia in take back programs is how to makemobile phone users do their share and return the used products for recycling. By bringing the used mobile to a take back point the customers make sure that used phones will not end up in landfills in their own or other countries. Instead,the recyclable raw materials can be used again in new products. In a typical consumer scenario, such as when a mobile phone user is renewing a service contract

with a mobile phone provider, in the US and Europe an estimated 60% to 70% retain their old devices because of their perceived value. Successful take back is also driven to a great extent by economics and market factors, which in turn placelarge quantities of used devices in refurbishment scenarios. This causes concern for the quality and safety of products repaired or altered outside of the intense controls fundamental to a Nokia production process. The optimum outcome fromNokia's environmental efforts in the product lifecycle is to minimize adverse effects to the environment, to our customers and consumers and to our business. As the Nokia lifecycle philosophy applies to take back, the power to manage takeback and direct the disposal of a mobile device at the end of its life is largely controlled by: customers, consumers, retailers, and by governments. There arevarious take back channels and Nokia has limited control over the actual flows.

Despite the challenges posed by the logistics of recovery, Nokia has for years had programs in place and continues to move ahead with new programs to recover mobile devices at the end of their useful lives. These include take back: * Via our authorized service centers and flagship stores * Through our web site, only limited in certain countries * As part of eBay Rethink, only in the US Nokia is also piloting different forms of cooperation with operators and distributors, suchas installing collection bins at point of sales and mail service return, as well as in various industry level schemes and in public awareness building campaigns.

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3.2

Environmental AnalysisNOKIA aims to be a leading company in environmental performance. By working to reduce the adverse environmental impacts of our products and activities, our customers can use our products with confidence and good conscience. Combining environmental issues into daily work makes business sense for Nokia. By working to red

uce the adverse environmental impacts of our products and activities, we minimize risk, ensure legal compliance, gain stakeholder acceptance, and help advance the long-term success of our company. Our customers can also use our products with confidence and good conscience. Through our environmental strategy, we work toensure that our products are safe for personal use and that they do not overlytax the environment. Nokia is a trusted brand and we take that trust seriously.3.2.1 Nokia environmental strategy Nokia is a leading company in environmental performance. Nokias environmental strategy is based on lifecycle thinking, beginning with the extraction of raw materials and ending with recycling and disposal of as well as the reintroduction of recovered materials into the economic system.Our goal is to develop advanced mobile technology, products and services, whichhave no undue environmental impact, consume energy efficiently, and that can be

appropriately reused, recycled or disposed of. Nokia's environmental strategy is integrated with our business strategy. Our four business groups have set environmental targets for their own activities to implement our corporate level environmental strategy. 3.2.2 Main Issues In Focus Three important global issues remain at the forefront of much of Nokias environmental work. They are substance management, arrangements for the take back and recycling of end-of-life products, and energy efficiency. * Substance management During the planning and design of our products, one of our main focus areas is their material content. We are continuously analyzing the materials used in our products with the aim of reducing theamount of potentially hazardous or harmful content.

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* Take back and recycling In take back and recycling, we have for years had in place our own arrangements for mobile devices and accessories, as well as for mobile network and IP network security equipment. All Nokia products are also covered by the European Union's new Waste Electrical and Electronic Equipment (WEEE)directive. Nokia is assuming product responsibility as defined by the directiveas it is implemented throughout Europe. In addition, take back of Nokia mobile devices will also continue at authorized Nokia Service Centers and Flagship store

s in all markets where we do business. * Energy efficiency In our product creation as well as our own operational activities, an important area for continuous performance improvement is in energy efficiency. We have consistently been able to reduce the energy intensity of our products. 3.2.3

Supply ChainWe are committed to reducing the environmental impact of our business. We expectall Nokia suppliers and their suppliers to take a similar approach. At Nokia, we believe in long-term partnerships with suppliers who share our approach to ethical business. Together we work hard to anticipate risk, demonstrate company values, enhance our governance practices, increase employee satisfaction and look after the communities where we do business.

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3.3

SWOT AnalysisNokia is at an important crossroads in its history. Having architected many of the key tenets for growth during the formative years of the mobile phone industry, the market with which Nokia is so familiar may be adopting different rules, ones that it may not fully understand. The situation Nokia faces may be similar to

the period in the PC industry when Dell Computer surpassed perennial leaders IBM, Hewlett-Packard and Compaq Computer. Why might this happen? Because Nokia's strengths are so well-understood by its competitors, they are well-targeted and improved upon. The wireless market's evolution has slowed, making it easier to challenge the incumbents. Also, the progress of technology has made many of Nokia's early advantages easier to overcome. Nokia's leadership position is a result of paying persistent attention to market needs and taking the right chances at the right time. Nokia was the first to acknowledge fashion as an important elementin mobile phone purchases, and it is solidly behind the push for Multimedia Messaging Service, which could become the first data service beyond Short Message Service to be deemed successful. There is a significant gap between Nokia and startups, which makes it difficult to compete against Nokia. Nokia's tie to operato

rs has kept its products solidly in consumers' view. Yet, Nokia faces some serious challenges. Fig.3.1. SWOT Analysis The mobile landscape has fundamentally shifted, and some of Nokia's strengths and core beliefs may no longer be valid. Inthe following research, we discuss Nokia's strengths and challenges and provideadvice for enterprises partnering with, purchasing from and working with Nokia.Strengths: Nokia has largest network of distribution and selling as compared toother mobile phone company in the world. It is backed with the high quality andprofessional team in the HRD Dept. The financial aspect is very strong in case of Nokia as it has many more profitable business. The product being user friendlyand have all the accessories one want that is why is in great demand making itNo-1 selling mobile phones in the world. Wide range of products for all class. The re-sell value of Nokia phones are high compared to other companys product.PG.NO 16


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Weakness: Nokia has many strengths and some weakness. Some of the weakness includes the price of the product offered by the company. Some of the products are not user friendly. Not concern about the lower class of the society people. Not targeting promotion toward them. The price of the product is the main issue. The service centers in India are very few and scare. So after sales service is not good. Opportunity : Nokia has ample of opportunity to expand its business. With the wide range in products,features and different price range for different people

, it has an advantage over the competitors around. With the opportunity like Telecom penetration in India being at the peak time, Nokia has an opportunity to increase its sales as well as the market share. As the standard of living in India has increased the purchasing power of the people as increased as well, so Nokia has to target right customer at right time to gain the most out of the situation.Threats: Nokia has many threats to tackle to maintain its position as market leader. The threats like emerging of other mobile companies in the market. The companies like Motorola, Sony Eriksson, Cingular (U.S) etc. these companies have come to the stand of tough competition with Nokia in the field of Mobile Phones. Threats can be like providing cheap phones, new features, new style and type, good after sales service etc. So, Nokia has to keep in mind the growing competitionaround. Nokia has to make strategies to tackle problems in the present and the

near future. The growing demand of WLL network can cause drop in sales for Nokia, as Nokia provides many less CDMA phones to the customer.

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4. Segmentation 4.1 Mobile Phone Mobile Phones connect people by providing expanding mobile voice and data capabilities across a wide range of mobile devices. We seek to put consumers first in our product-creation process and primarily target high-volume category sales of mobile phones and devices based on the following global cellular technologies: GSM/EDGE, 3G/WCDMA and CDMA. In voice centric and mainstream mobile phones, we believe that design, brand, ease of use and priceare our customers' most important considerations. Increasingly, our product por

tfolio includes new features and functionality designed to appeal to the mass market, such as mega pixel cameras, music players and advanced-quality color screens. Quality is at the heart of Nokias brand promise, very human technology. We want our customers to know that Nokia is the best quality company in the industry.Our goal is to have the industrys best products and services, most loyal customers and most efficient operational mode. We believe that quality is about meetingand exceeding customer expectations. At Nokia, we view quality holistically andas an integral part of business management. The quality of products and customer experiences depends on the quality of processes, which in turn is tied to thequality of management. Our key quality targets are: For Nokia to be number one in customer and consumer loyalty. For Nokia to be number one in product leadership. For Nokia to be number one in operational excellence. The quality and reliabi

lity or our products and services are among the most important factors driving customer satisfaction and loyalty. Designing good quality products begins with understanding customer requirements and creating the best user experience. The whole chain, from suppliers through to R&D, operations, sales and distribution to customers, impacts the end-result everybody in the chain has a role to play in achieving quality. Our products and customer experiences are the results of our everyday processes. Process management means finding the simplest way of operating, in order to create customer value in a lean manner. Our process thinking covers everything we do, and processes are continuously improved based on the measures and the

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feedback we receive from our customers. Quality in management is vital for leveraging innovations globally and improving productivity in general. Our approach to this is platform thinking, process management and combining fact-based management with values-based leadership. We have developed a key framework for improvement at Nokia, which we call the 'Self-Regulating Management System'. It's aboutmanagement practices that allow us to run our business in a consistent, effective and fact-based manner. Commitment to quality improvement is a continuous manag

ement process. It is both a business strategy and a personal responsibility, andit is a part of our culture and values. But at the end of the day, quality improvement is much more than something we can quantify in words or pictures. It isan attitude a mindset. By taking quality personally we are able to deliver world-class quality to our customers. It is our source of inspiration, energy and excitement. 4.1.1

Segmentation StrategyNokia Market Demographic

The profile for Nokia customer consists of the following geographic and demographic: Geographic Our immediate geographic target is rural India. The total target

ed population is estimated at 100 million. Demographic Male and female. Ages 25-50, this is the segment that makes up 80% of the Nokia mobile phone market according to the NOKIA India Ltd. Professionals and College students.

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5. Nokia StrategiesMarket growth predictions provide one motivation for network operators and service providers to improve the data service experience. For example, some researchpredicts a 270% increase in average monthly ARPS (average revenue per subscriber) for data services from 2005 to 2020, as indicated in Figure 5.1. Nokia predicts a CAGR (compound annual growth rate) of 9% for the mobile services market during the years 20042009 (see Figure 5.2). This growth will be due largely to growth

in data services (CAGR 23%), with CAGR at 6% for voice and other calls. Data isparticularly a growth driver in emerging markets and Asia. Some researchers provide more conservative figures, but all the research indicates that definite growth opportunities exist for mobile data services.

5.1

Marketing StrategyToday, the true killer data application is still text messaging, a typical exampleof person-to-person communication. Other end-user services, however, have not taken off as expected in recent years. The primary reason for this slow take-up is that most of these services do not fulfill the expectations of users. Although

ring tones are one example of successful person-to-content services, progress must be made for market take-up of other mobile data services such as: Messaging(e.g., MMS and e-mail) Entertainment (e.g., graphics, logos, games) Information(e.g., directory services, news)

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A variety of user needs will drive market growth for mobile data services

There are two main barriers to increased usage of data services. First is the lack of relevant service propositions, where the price does not correlate with theperceived value of the service. Second is the complexity of service adoption an

d usage, where users perceive that data services require too much effort compared to other solutions. User needs and market growth are clearly present, as illus

trated in Fig.5.3. However, mass-market adoption will happen only when the service providers have identified the relevant service propositions and ease-of-use factors. Delivering ease-of-use is within the reach of any service provider, regardless of whether it operates its own network. However, the challenge is to understand the underlying reasoning for end-user behavior and usage patterns and toorganize the service offering accordingly. Visibility into the end-user serviceexperience can be obtained from resources such as sophisticated end-user qualitymonitoring systems, continuous end-user behavior studies and end-to-end perform

ance field measurements. Moreover, it is of great importance to analyze internalcustomer processes and readjust them according to customer needs. Eventually, t

he need to be attuned to the customer experience might lead to a new, customer-centric organizational structure with clear responsibilities for end-to-end Quali

ty of Experience (QoE). Who will have the overriding responsibility for end-userexperience will vary depending on the operators business model and organizational structure? In order to prepare the organization for differentiation, the research firm Forrester proposes that the marketing department should be made responsible for the total customer experience. Today, service providers offer data services that appeal to a very small proportion of mobile users: the young and technology savvy. This group is also one that is most prone to churn. Yet todays highARPU (average return per subscriber) users are arguably the customers to retain,as they will likely remain at high ARPU levels for some years to come.

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5.1.1 Marketing Objective Capture rural Indian market Target school student Attract Customers to New technology Enhance Distribution Maximize our revenues Maintain Customers Loyalty 5.1.2 Ease-of-Use The main reason why data services have not yet achieved mass-market adoption is due to the complexity perceived and experienced by end-users. The poor reputation of data services increases the threshold of willingness for non-users to experiment with data. Bad user experiences also inhibit existing users from adopting new services.

5.1.2.1 Simplified Service Setup Mass-market service usage can occur only if thetechnical barriers for end-users have been overcome. Improving the initial phase of service delivery is a sure way to increase the use of a mobile service, which will lead to an improved end-user experience; higher revenues for service providers, operators and developers; decreased customer care costs; and decreased churn rates. Finding and subscribing to a service are the first hurdles for a potential user. Endusers expect the same effortless and easy access to services viaa mobile phone as they are accustomed to with other channels (e.g., Internet, TV). However, easy access to a service is dependant on the users frame of reference. Some users consider access via a branded Internet portal easy, while some users prefer a browser menu on the device. Knowing your customers is the key to ide

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Service set-up and configuration is the crucial stage in the service adoption process. Users often consider setting-up and configuring services the most tediouspart of service take-up. Studies suggest that users will abandon the service after two or three failed setup attempts. As the number of functions on mobile sets continues to grow, users find it increasingly difficult to configure and maintain services and applications on their devices (see Fig.5.4). Focusing on delivering easeof-use in set-up and configuration is paramount in order to promote ser

vice adoption and improve revenues from services.

5.1.2.2

Simplified user interfaceFor an easy-to-use experience, service content must be undemanding and plain. Ease-of-use comes from effortless navigation, with a simple structure that does not require reading a user manual to be understood. Understandable terminology used throughout the service session enhances the experience even further. The userinterface should have flexible content behind it, in the sense that the contentadapts seamlessly to different terminals. Ease-of-use is also created by minimizing the users exposure to the underlying technology when using the service. A sim

ple and practical user interface, coupled with relevant content, is a prerequisite for a successful service concept. Any device offered as part of a service must be carefully matched with the requirements of intended users. An easy-to-use experience stems from a service concept that successfully combines relevant content with a matching device. Handset functionality already includes email, varioustypes of messaging, and access to Internet and entertainment functions. However, end-users experience the increasing functionality of handsets as too complicated and are hesitant to use them. As such, complex handsets do not by themselvespromote increased service usage. From the perspective of service management, ease-of-use means integrated systems that feed service information into reporting systems that enable the service provider to monitor and assess service usage online, in real-time. Application developers must consider the scalability of applications in order to deliver adaptability for different interfaces in devices and

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5.1.2.3 Clear Payment Method The ease-of-use experience is also reflected in payment options and processes, which should be as effortless as possible. These processes include payments and associated transactions, such as contracts requiredto access the service, as well as procedures to make and confirm transactions. End-users favor suppliers that can minimize the risks involved and maximize the users level of comfort and confidence. The end-user should feel able to control spending and feel secure about the services used. For convenience, users prefer to

pay for services with existing pre-paid or post-paid accounts. 5.1.2.4 Easy access to Customer Support Offering customer care is an essential part of an ease-of-use service experience. The working customer care concept creates stickiness between the end-user and the service provider. Customer support can be offered via a call center, by providing automated self-service or through in-store support. The challenge is to choose the customer support combination that best matchesthe specific service proposition. For call centers, ease-of-use manifests in quick response, least number of call transfers, transparent tariffs and knowledgeable personnel. The better the alignment in business processes, supporting infrastructure and related call center processes, the better the capabilities for delivering superior call center service. Another contact point for users is often provided via a branded Internet portal. An Internet portal is an attractive option

because it supports end-users 24/7 and is cost-effective for the service provider. Users can access the portal to manage and modify their own account. Connection stability and logical navigation with a minimal number of clicks determines the ease-of-use experience in an Internet portal. The third contact point for users is in-store support. This support is difficult to organize and manage for quality as it is often outside of a service providers own business realm. End-users often perceive in-store support as inadequate and not fulfilling their needs. Many end-users complain about the service they have been given while visiting an outlet.

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5.1.2.5 Simplified service termination Termination of the service should be as simple as possible in order to lower the threshold for a users willingness to testthe service. A simple SMS or MMS message should be adequate to terminate the service. 5.1.3 Product Life Cycle A large untapped potential exists among the present base of non-users: the 10% of existing customers who use services infrequently or do not use services at all, even though they have the right mobile handset. In general, these mainstream users are more loyal to their existing service pr

ovider, making them a group to reward for their loyalty. Ease-of-use is one of the key factors when increasing customer loyalty, which, in turn, will lower churn and eventually lead to a decrease in marketing expenditures. Differentiation by ease-of-use experience will also have an effect on increasing ARPU, because itspeeds up the adoption of new services. The more mainstream the target users, the more they value ease-of-use and customer intimacy and seek practical uses fornew services. The fact that ease-ofuse is particularly relevant to mainstream users makes it such an important consideration. Making a service successful in the mainstream market has the challenge for most existing services. Creating ease-of-use in services will help a service provider to cross the chasm from the earlymarket of innovators and trendsetters to the mainstream market of average users(see Fig.5.5).

Services Life Cycle Creating and implementing a business strategy that focuses on ease-of-use will enable the service provider to increase service revenues. Naturally, strategies across geographical regions and operators differ and it is not possible to copy exactly from the experiences of others. Service uptake and usage differ vastly depending on the stage of the overall society and service culture, main technologies chosen, competitive market situation, maturity level of networks, and other network lifecycle variables.

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5.2 Positioning Strategy When Nokia positions its brand in the crowded mobile phone marketplace, its message must clearly bring together the technology and human side of its offer in a powerful way. The specific message that is conveyed toconsumers in every advertisement and market communication (though not necessarily in these words) is "Only Nokia Human Technolgy enables you to get more out oflife" In many cases, this is represented by the tag line, "We call this human technology". This gives consumers a sense of trust and consideration by the compan

y, as though to say that Nokia understand what they want in life, and how it canhelp. And it knows that technology is really only an enabler so that you-the customer-can enjoy a better life. Nokia thus uses a combination of aspirational, benefit-based, emotional features, and competition-driven positioning strategies.It owns the "human" dimension of mobile communications, leaving its competitorswondering what to own (or how to position themselves), having taken the best position for itself.

5.2.1 Nokia Product Design Nokia is a great brand because it knows that the essence of the brand needs to be reflected in everything the company does, especially those that impact the consumer. Product design is clearly critical to the success of the brand, but how does Nokia manage to inject personality into product d

esign? The answer is that it gives a great deal of thought to how the user of its phones will experience the brand, and how it can make that experience reflectits brand character. The large display screen, for example, is the "face" of thephone. Nokia designers describe it as the "eye into the soul of the product". The shape of phones is curvy and easy to hold. The faceplates and their differentcolors can be changed to fit the personality, lifestyle, and mood of the user.The soft key touch pads also add to the feeling of friendliness, expressing thebrand personality. Product design focuses on the consumer and his needs, and issummed up in the slogan, "human technology."PG.NO 26


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Nokia now accounts for over half of the value of the Finland stock market, and has taken huge market share from its competitors. According to one brand valuation study carried out in mid-1999, it ranked 11th on the world's most valuable brand list, making it the highest-ranking non-U.S. brand. As has been pointed out,it has unseated Motorola. Nokia achieved its brilliant feat through consistent branding, backed by first-class logistics and manufacturing, all of which revolvearound what consumers what. 5.3 Promotion Strategy "Push or Pull"? Marketing th

eory distinguishes between two main kinds of promotional strategy "push" and "pull".

5.3.1 Push: A push promotional strategy makes use of a company's sales force and trade promotion activities to create consumer demand for a product. The Nokia promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers. For example Nokia promote their products via retailers such as Carphone Warehouse. Personal selling and trade promotions are often the most effective promotional tools for companies such as Nokia - forexample offering subsidies on the handsets to encourage retailers to sell highervolumes. A "push" strategy tries to sell directly to the consumer, bypassing other distribution channels (e.g. selling insurance or holidays directly). With th

is type of strategy, consumer promotions and advertising are the most likely promotional tools. 5.3.2 Pull: A pull selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product. If the strategy is successful, consumers will ask their retailers for theproduct, the retailers will ask the wholesalers, and the wholesalers will ask the producers.

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5.4 Pricing Strategy Nokia observes different pricing strategy for different range of product. The main aim is to gain the market at rural village of India andmaintain its customer for Mid range phone. 5.4.1 Premium Pricing Use a high pricewhere there is uniqueness about the product or service. This approach is used where a substantial competitive advantage exists. Such high prices are charge forluxuries such as NOKIA E-series mobile phone. 5.4.2 Penetration Pricing The price charged for products and services is set artificially low in order to gain ma

rket share. Once this is achieved, the price is increased. This approach was used Nokia on Model No. 1100 and 1108, in Indian rural market. 5.4.3 Economy Pricing This is a no frills low price. The cost of marketing and manufacture are keptat a minimum. Nokia follow it for its mid range Mobile phone. Normally it is to attract middle income group.

5.4.4 Price Skimming Charge a high price because you have a substantial competitive advantage. However, the advantage is not sustainable. The high price tends to attract new competitors into the market, and the price inevitably falls due toincreased supply. 5.5 Distribution StrategyPG.NO 28


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Mobile phones have become a major part of our everyday life. On the one hand, Indias Mobile phone market has grown rapidly in the last few years on the back of falling phone tariffs and handset price, making it one of the fastest growing markets globally. Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, device and solutions for imaging, games, medi

a and businesses. Nokia provides equipment, solutions and services for Network operators and corporations. Nokia held a global market share of 34.2 percent at the end of January, according to consultants strategy Analysis, while Motorola had18.3 percent, Samsung 11.1 percent, and LG and Sony Ericsson 6.6 percent each. To illustrate Nokias performances, more than one third worlds phone users use a Nokia phone. In India Nokia is the market leader, with a manufacturing facility in Chennai. Understanding of distribution channel used by Nokia Distribution is thelife blood for an organization in order to make sales. The products are requiredto reach the outlets for sales based on the demand for the product. Only if distribution channel is effective products can reach the consumers, as well maintain or increase their market share. This is very important, as there is intense competition in the market from various other players, in order to stay ahead and m

eet the competition we need to provide goods on time to the dealers to make sales and earn profits for both company as well as outlets. Availability of goods and time is an essential for any organization this could be done only by having good distributors and redistributors stockiest. Further the company should take care of goods manufactured reach the distributor & the redistributors stockiest ontime. The company requires to have a regular check on these channels if they working efficiently and take steps to further step to improve. The company only stay ahead in profits, market share etc, only if their products reach the outletson time as well based on demand. The project began with the basic understandingof how distribution of mobile phones takes in the market by Nokia. Nokia works with the distribution of mobile phones takes in the market by Nokia. Nokia workswith the distributor, re distributor stockiest (R.D.S) and finally the retailerfrom whom the product is sold to the consumer. Five forms of outlets sell Nokias

products:

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6. Distributors-:i. HCL infosystem ii. Bright point. Outlets-: i. Nokia priority dealers ii. Multi brand outlets iii. Reliance web world iv. Reliance web world express v. Tata true value shop. Nokia Distribution Channels

Distributors:A) HCL Infosystem: During the last ten years, the HCL-Nokia relationship has wit

nessed strong growth in the Indian GSM handset market resulting in a significantmarket share gain for Nokia, and the increased need for a distribution Networkthat will meet the projected market growth of 200 million subscribers by 2007. The relationship with Nokia has been a very satisfying one, and the agreement between Nokia and HCL reaffirms Nokias commitment to the growing Indian Market, to ensure that mobile devices are accessible to more consumers in the cities and towns across India.

Mobile penetration is getting into the next phase of growth of which a major portion is expected to come from smaller towns and remote locations. There is clearpick up ion demand. The challenges ahead would be to penetrate deeper, preservemarket and in order to have much greater depth, align to global policy of balan

ced channel mix and also to ensure that all possible channels are included, andchannel partners are well served so that growth opportunities are captured. Thetwo companies have extended their agreement for another five years. This strongrelationship between these two players plays a crucial role in increasing the sales as well to hold the market leader position in the market. Both entering thedistribution channels will in fact help the consumer to get the best product inthe nearest location in any part of the country.PG.NO 30


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B) Bright point It offers the most comprehensive selection of brands and products in the wireless industry. Handset, Integrated devices, PDAs, etc. They also provide full selection of OEM and aftermarket accessories, Modems and software. Itdistributes product manufactured by the worlds leading handset manufacturer. Outlets: a) Nokia priority dealers are exclusive show rooms for buying Nokia products. These outlets are directly under the control and supervision of Nokia, whichmakes them solely accountable to Nokia. NPDs are preferred outlets to buy Nokia

products, as they are their genuine dealers of its products. These outlets havethe complete portfolio of Nokia products existing in the market. The buying experience the consumer enjoys is the better than any other outlet in the city. b) Multi brand outlets are the outlets, which deal with all the company products inthe market. They provide service and space to all the competitors as they sell all the products in the market. The major purpose is not to dissatisfy the consumers entering the outlet and provide them with all the brands asked by him. The amount of sales made is higher as well the profit earned is higher. The numbers of these outlets are higher in the city. c) Reliance web world are exclusive reliance outlets. They deal with reliance products of providing connections and billing of the connections. These outlets also sell mobile phones of various brands.The major aspect in these outlets is the stock reaches these outlets directly f

rom the company itself. The RDS has no role to play other than providing these providing these outlets POS materials to these outlets. d) Reliance web world express are also exclusive reliance outlets but are the franchise outlets of Reliance. They also deal with reliance products of providing connections and billing of the connections. These outlets also sell mobile phones of various brands. Themajor difference between web world and express are the stock that reaches theseoutlets. The RDS and his sales men provide both stocks as well POS materials tothese outlets. e) Tata true values Shoppe are also exclusive Tata outlets but are the franchised outlets. They also deal with Tata products providing connections and billing of the connections. These outlets also sell mobile phones of various brands. The RDS and his sales men provide both stocks as well POS materials to these outlets.

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7. Conclusion Nokia being in a competitive market holds the market as a monopolywith its Unique identity, Marketing Strategy and distribution policy. Through the Ease-of-use concept, it will add a lot to Customer Value, which further helpsNokia in capturing the market share in India. Our goal is to be a good corporatecitizen wherever we operate, as a responsible and contributing member of society. NOKIA definitely helps to come true for Middle Mans Dream

8. IMPLEMENTATION AND CONTROL The objective of nokia marketing plan is to serveas reference for the organizations. The following areas will be monitored to gauge performance: Revenue: monthly and annual Expense : monthly and annual Customer satisfaction Sales growth by 10 percent annually

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9. CONTINGENCY PLANS Difficulties and risks Slow sales resulting less than projected cash flow Unexpected and excessive cost increase compared to the forecastedsales Overly aggressive and debilitating actions by competitors Significant eco

nomic downturns Worst case risk include Liquidate asset to cover marketing expenses and liabilities Determining the product cannot support itself on ongoing basis

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