brm project nokia

8/9/2019 BRM Project nokia

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1. INTRODUCTIONFrom penetration driven economy to consumption driven economy the title suits best to the

consumer buying behavior in India. Of all the markets in India in the current scenario one of the

important is telecom market specially the mobile phones. The cellular industry made a very slow start in

India. This was primarily because of the telecom policies of the government followed by high licensing

fees and absence of a proper telecom regulatory authority.1The import duties were as high as 27% and

the user charges were almost Rupees 16 per minute as a result of which the consumers didnt take

mobile phones at that time. In the year 1994 Nokia India, a subsidiary of Finland based Nokia made an

entry into the Indian market. It had to face tough competition from powerful global players like Sony

Erickson, Motorola, Samsung, and LG.Still it comes ahead of the rivals in the Indian mobile market and

captures almost 58% of the market share .Nokia made a great change in its strategy to remain in the

market and occupy a majority of the market share. The first and the foremost strategy were to remain

focused on the mobile phone market only. While others diversified to other products Nokia is centered

on mobile technology. It established crucial distribution partnerships, followed the procedure of rapid

skimming and penetrating the market by making early investments in manufacturing and thus creating a

brand value. The most important of the lot was the strategy of developing innovative products and

incorporating add-ons to those products. The best instance of the last strategy came out on April 27,

2005 when Nokia introduced the Nseries brand in the world market. Previously the handsets were

mainly aimed at performing the task of communicator with some extra features like sms, mms, 3gp

video recording, vga camera, radio. Nokia Nseries changed the picture altogether .It was a camera

focused, music focused device which has now turned out to be a mass market phone especially in India.

Indian market was previously recognized by its size and a low cost phone market. Nokia Nseries changed

the concept all together .it actually proved India to be a diverse market with all possible consumerpreferences and segments .India came out to be the fourth largest market for the high end Nokia

NSeries.

1Source: Nokia made in India

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C8%25AB%25D3%25A2%25BD%25CC%25D1%25A7/Marketing%2520Case/Case%25207.doc+when+did+nokia+first

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2. OBJECTIVE

(a) The customers are diverse in their buying requirements for a particular product. So an organization

needs to identify the market segments which it can effectively serve at. The market segment basically

consists of the groups of the customers who share the similar set of wants .One of the major objectives

of our project would be to determine the levels of segmentation ,patterns of segmentation and marketsegmentation procedures of Nokia NSeries in India.

(b)All though Nokia Nseries captures a majority in the Indian market but recently the aggressive

marketing strategies by2Motorola has hit Nseries very hard at some places at India especially at

Hyderabad. This clearly implies there are some loopholes in the positioning strategy as well as other

marketing strategies. So one of our objectives would be to determine and analyze the pitfalls in the

positioning strategy of Nokia NSeries at Hyderabad.

(c) The main aim of any marketing strategy is to satisfy the customer needs. A consumers buying

behavior is affected by cultural, social, personal and psychological factors. The main objective of our

project would be to determine the factors and the impact of those factors on the consumer buying

behavior of Nokia Nseries at Hyderabad.

(d)It is important for the marketers to understand the stages in the buying process of their products.

This can be done by3introspective method( where they themselves could act like the customers

),retrospective method( where they can interview a small number of people and gather information

about their buying process), prospective method( which can be applied to a set of customers who have

made the decision of buying the product) and lastly prescriptive method( where they can ask the

consumers to instantiate the ideal way of buying the product). So one of our objectives would be to

determine and analyze the buying decision process of Nokia Nseries at Hyderabad in comparison to

India.

(3) METHODOLOGY

The entire project is based on the research of the market. This is a live project so the overall process or

method of project was divided into two primary divisions:

(a) Data collection: Data collection has a huge impact on the proposed methodology since this alive project, so majority of the data collected and used are primary in nature. In case of

secondary data there lies one level of interpretation in between the event and its reco rding but

here our data was primary in nature so we have tried to keep error margin very small almost

negligible. Hence care is taken on the designing of the data collection tools, drawing inferencefrom the data and henceforth generalizing it. Our primary data collection is mainly based on the

survey methodology where we have collected the data from a sample size of 200.Here our main

objective was to determine the consumer buying behavior of Nokia NSeries at Hyderabad so for

that we selected four different regions at Hyderabad viz Mehndipatnam, City center Hyderabad,

2Source :http://www.merinews.com/catFull.jsp?articleID=124478

3Reference :Marketing Management by Philip Kotler 11

thEdition pg no.-202


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Hotel Taj Banjara and Khiratabad area near KGN shop. Questionnaires were provided to the

consumers and then the data was be taken based on their responses. The pattern of the

questionnaire follows Likert Scale where certain parameters are being given points on a scale of

1 to 7 where 1 is the lowest and 7 is the highest.

(b) Data Analysis and Interpretation: The data that we obtained from the data collection techniquewas the raw information. The most important part of the research method was the data analysis

part where the raw data was given a structured format. The main aim of data analysis was to

reduce size complexity of the collected data, looking for relations between the accumulated

data and applying statistical techniques to the data set to generate some result set. These

derivations or data interpretations in turn determined the consumer buying behavior of Nokia

NSeries at Hyderabad. Here for the data analysis and data interpretation we took the help of

SPSS software package and MS Excel. In SPSS we mainly concentrated on correlation matrix and

factor analysis of the data. Through the factor analysis we determined the set of the

components or factors why the consumers dont use Nokia NSeries.

(4) LITERATURE REVIEW

The Nokia Way-The Nokia way is an organizational philosophy which attracts and retains the best

people. This is also the foundation of motivation for people working in Nokia. Nokia has been known for

its excellent organization policy of freedom and flexibility. Nokia, a telecom giant, in fact, the largest

maker of mobile phones in the world, is a Finnish company. The global character of Nokia is very much

reflected in the 40 percent market share it has in the global handset market.

Nokia has four business groups: Mobile Phones, Multimedia, Enterprise solutions and Networks

Customer and

Market

O erations

Technology Platforms Brand and Design

Developer

Support Research


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Nokia-Business Groups

Nokias corporate culture basically aims at ensuring that employees consider working at Nokia as an

experience. By providing its employees education, training and development programmes emphasizing

non-monetary incentives for good performance and imparting the values of openers and diversity which

is the core of Nokias business culture, Nokia has created a fine working environment for its employees.

Salient Features of Nokia Culture

Team Work-Nokias organization and culture has often been described as being typically emphasizing on

joint achievements and rewards, openness, knowledge, shared vision, goals, speed and integrity of

decision making.

Honesty-People are given, in the literal sense, maximum freedom to express their disagreements openly

and are expected to avoid politicking.

Empowering Front Line Employees- Nokia believes that despite the increase in size over the years, the

management policies and practices remain that of an independent, innovative and creative start-up.

The HR Practices in Nokia encompasses four fundamentals such as Nokia Way and Values, Performance

Based Rewarding, Professional and Personal Growth, Work-Life Balance. The Nokia Values are Customer

Satisfaction, Respect, Achievement, Renewal, and Talent Management: Reward and Motivation. Nokia

undertakes various employee development programmes like provision and encouragement for

professional and personal growth, dynamic performance management system, talent management

system, on boarding, 360 degree feedback system.

Nokia in India- Nokia, the global leader in mobile handsets had come a long way since it entered India in

1995.In brand surveys across Indian cities and demographics, Nokia topped the awareness list. Morethan 49 million mobile users in India carried a Nokia handset. Six out of every ten people who bought a

mobile phone in India picked up a Nokia. Nokia had pursued a cost leadership strategy in India, looking

for various ways to cut costs.Nokia had also established a formidable distribution network that reached

over 25000 dealers network that was about three times the size of Samsungs, six times that f Sony-

Ericssons and one-fourth of Hindustan Levers. In the infrastructure business, Nokia networks had

become a key supplier to all five GSM operators in the country; Bharti, BSNL, BPL, Hutchison and

IDEA.Nokia networks closely with operators to lower the total cost of ownership and usage for

consumers.

Background Note

Over the last decade, Nokia had emerged as the clear market leader in the mobile device market in

India. The company offered a wide product range to meet the needs of different consumer segments

ranging from advanced business devices, high performance multimedia devices, to an affordable range

of entry level phones for first time subscribers. In 1997,Nokia India rode to market leadership on its

Nokia 2110 model.Subsequently,it launched the Nokia 1610 and Nokia 8110.With India(along with


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China) having become one of the two most happening telecommunications markets in the world,Nokia

continued to increase its commitments.

A number of Nokia employees (mostly young Indian software engineers) from San Diego had visited

India to demonstrate a range of technologies they had helped develop. These included a number of

worlds first such as CDMA-GSM(cross-protocol) MMS connectivity; protocol-independent IP multimediaSubsystem(IMS) services; video streaming over1x and a better than landline wideband variable rate

codec that captured a broader range of audio frequencies and delivered richer sound.

Nokia had so far not sourced any components from India for its manufacturing plants across the world,

but was working with software companies such as Wipro and TCS for mobile-handset related software.

The Road Ahead

In the past few years, Nokia had practically doubled its revenues in India every year. India had become

Nokias fifth-largest market after the US, Germany, the UK and China. Most analysts considered this a

significant achievement for a 10-year old operation.

But in its pursuit of cost leadership, some analysts wondered whether Nokia was moving in the wrong

direction. Younger, nimbler Asian rivals like Samsung or older American ones like Motorola and Sony

Ericsson were positioning themselves as cool products that appealed to teenagers.

Meanwhile, a major concern for Nokia was that its mass-market dominance, did not extend to the

CDMA (code division multiple access) segment. This was fallout of the companys traditional strategy

that put its stake heavily on GSM (Global System for Mobile Communication) technology, which

dominated the global market with 80 percent share. Notwithstanding the concern, Nokia had built up

strong brand awareness in India. Wherever consumers had a choice and chose a phone of their own

volition, a majority of customers chose a Nokia.

Nokia also faced major challenges in introducing advanced applications in India. Nokia believed that in

India, the job was to get people onto mobile email, shoot a photo and print it and so on. While some

analysts doubted whether Nokia would be able to move successfully to the higher end of the Indian cell

phone market, the company believed it was well positioned to leverage its mass-market dominance and

extend its leadership at the high end of the market.

Nokia Current sales in India

Handset manufacturer Nokia, which has the largest market share in India, warned of uncertainty as it

reported a decline in Q3 net sales of 5 percent year on year, and 7 percent quarter-on-quarter. During

the analyst conference call, Nokia CEO Olli-Pekka Kallasvuo said that the it is unclear how the global

financial situation will impact different markets, particularly since many consumers in markets like

China, India, Asia Pac and Latin America have consumers who prioritize their spending; spending from

this segment was impacted by high commodity prices over the last year, but that bubble has now burst,

with a decline in the price of oil and rice.
http://www.nokia.com/http://www.nokia.com/http://www.nokia.com/http://www.nokia.com/


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Figure 1

Net sales by the business groups in India

Sales

Mobile phones

Multimedia

Enterprise solutions

Networks

Figure 2

Nokia Net Sales by figures

0%

20%40%

60%

80%

100%

2005 2006 2007 2008

Q4

Q3

Q2

Q1

Figure 3


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Why Customers prefer Nokia

Indias most trusted brand is Nokia. As Nokia has produced cutting edge products relevant to the price,

it has proved as the real winner. Nokias battery life is longer than any other cell phones. Nokia has only

7% of the whole worlds marketing.

The Future Prospects

According to industry analysts, by 2010, the mobile phones industry in India will be driven by voice,

multimedia and mobile services for organizations. The tele density in India was estimated to increase to

18.2% by March 2009, with mobile subscription rising to 148.77 million by that time. In many instances,

the cell phone has become the only basic telephone link of a household/enterprise in India, rather than

a landline phone. It was turning out to be more economical and efficient than fixed line telephones. So,

there was great scope for further expansion with reduction in the cost of ownership.

Nokia Shouldnt Fiddle While Its Market Leadership Burns

Nokia posted a 30.5 percent drop in earnings today on sales of 12.2 billion Euros ($16.5 billion). This

wasnt surprising as the Finnish phone maker had warned the worl d last month that this would happen.

But its frustrating that the company, which saw its market share erode by 2 percent from the previous

quarter, would blame price cutting by its competitors for taking buyers. Part of the problem is that

Nokias late to the game when it comes to giving buyers what they want.

Sure, price-cutting is a pain to deal with, but since Nokia said it doesnt plan to answer those price cuts

with cuts of its own, it needs to get in gear and focus on boosting sales of its high-end phones. Although,

price cuts in that market are coming too.

Nokia has made some brilliant phones but has lagged when it comes to building new ones targeted at

the consumer population, which is snapping up Smartphone at a rapid clip. An analyst told Forbes that

half of the total value of the cell phone market will comes from sales of Smartphone next year. But the

people spending those dollars arent the business users who have purchased Nokias N or E series of

devices they want music players, touch screens and whizzy apps that allow them to see their social

networks. Nokias is getting started with the launch of its 5800 XpressMusic handset earlier this month,

so well see if that will help keep it on top.

Also as part of the earnings call, Nokia revealed that it would pay Qualcomm 1.7 billion Euros ($2.29

billion) in the fourth quarter as part of a patent settlement made earlier this year. Im hoping this means

good news for getting Nokia phones on Verizons CDMA network.
http://www.digitimes.com/telecom/a20080922PR200.htmlhttp://www.forbes.com/technology/2008/10/16/nokia-apple-technology-markets-equity-cx_ll_1016markets09.htmlhttp://www.businessweek.com/globalbiz/content/oct2008/gb2008102_473486.htmhttp://www.qualcomm.com/news/releases/2008/080723_Nokia_and_Qualcomm_Enter_Into_New_Agreement.htmlhttp://gigaom.com/2008/07/25/nokia-qualcomm-truce-bad-news-for-motorola/http://gigaom.com/2008/07/25/nokia-qualcomm-truce-bad-news-for-motorola/http://www.qualcomm.com/news/releases/2008/080723_Nokia_and_Qualcomm_Enter_Into_New_Agreement.htmlhttp://www.businessweek.com/globalbiz/content/oct2008/gb2008102_473486.htmhttp://www.forbes.com/technology/2008/10/16/nokia-apple-technology-markets-equity-cx_ll_1016markets09.htmlhttp://www.digitimes.com/telecom/a20080922PR200.html


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5.DATA ANALYSIS

Here in our project we have identified 20 variables to determine the consumer preference and priority

of using any other mobile device other Nokia NSeries. But the main idea behind taking 20 variables was

that we need to extract factors from the set by reducing the number of variables. For this we took the

help of factor analysis. Factor Analysis is a very useful method of reducing data complexity. As forexample a marketing decision maker needs to know what exactly makes a consumer buy his product. So

he needs to concentrate on some of the variables from the entire range which really drives the buying

behavior. While preparing the data table from the survey questionnaires we found that there were

some missing variables. This was mainly because the inability of some of the consumers to rate a

variable-which may be due to the lack of knowledge of the consumer about that particular consumer in

relation to his device or due to the inability to understand the question properly. So in order to fill the

data table what we did was that we took the mean of the variable and the particular cell of the variable

column where the data was missing we filled it up by the mean as obtained.

As for example, in the Figure we have shown that consumer 1 was not able to judge the rating of

VAR00003. So

we took out the

mean of the

entire column

and it came out

to be 4.075. So

we replaced the

blank cell with 4

which is shown

in the followingFigure no.4

Figure 4

The similar procedure was followed for the other blank cells.


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Factor analysis mainly consists of two stages. Stage 1 is the Factor Extraction Process where the main

objective is to determine how many factors could have been extracted from the data available. Factor

extraction process is a part of factor analysis only. So in the SPSS file factoranalysis.sav we performed

the following steps. From menubar of the file we went to Analyze, then to Data Reduction and chose

Factor (shown in Figure no. 5).

Figure 5

On choosing Factor we had the options of selecting the variables on which we have to apply factor

extraction and rotation techniques (shown in Figure no. 6).

Figure 6


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Under the Extraction button we have the option of Principal Component Analysis (Figure no.7). The

number of factors to be extracted is determined using the concept of Eigen Value. The higher the Eigen

Value of a factor the higher is the amount of variance explained by the factor. So our main would be to

extract the least number of factors which will maximize the explained variance. Before extraction it is

assumed that each of the original variables has an Eigen Value of 1. So we would accept any single factor

which is a linear combination of some of the original variables to exceed the value of 1.

Figure 7

The second stage of factor analysis is rotation of the principal components (Figure no.8). After the

factors are extracted from stage 1 the next phase is to name the factors and to interpret the results. So

association is created between the variables and the factors. The original factor matrix is obtained from

the output of stage 1. At the stage 2 the SPSS package is requested to perform a rotation and gives a

rotated factor matrix. This rotated factor matrix gives us the loadings of each variable on each of the

extracted factors. This is similar to a correlation matrix with the loadings having the values between 0

and 1. Values close to 1 represent the high loadings and those close to 0 represent the low loadings.

Figure 8


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In the data analysis part besides these two major procedures two other parts are being taken care of.

They are descriptives and options. Through the descriptives part (Figure no. 9a) we set the coefficients

and the determinants of the correlation matrix between the variables. We also set the KMO and

Bartlettstest of sphericity. Through the options (Figure no.) we can set the absolute values less than .5.

Figure 9a

6.DATA INTERPRETATION

The data that we are using has been generated from the response as given by the non users of Nokia

NSeries at Hyderabad. When we took the survey they responded that they were satisfied with their

current mobile device because of some factors and so they didnt want to buy Nokia NSeries. Here in

our data interpretation part our prime target would be to determine those factors. After determining

the factors we can also interpret the factors why people like to buy Nokia NSeries at Hyderabad as those

set of factors would be almost the complement of these factors.


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So first let us provide the list of the variables that we have used in our survey. The following table (Table

no.) shows us all the 20 variables that we had used in our survey questionnaire.

Variable no.(in SPSS

table)

variable name Variable no.(in SPSS

table)

variable name

VAR00001 Entertainment VAR000011 Functions

VAR00002 Durability VAR000012 Serviceability

VAR00003 Travel VAR000013 Battery life

VAR00004 Internet & news VAR000014 Connectivity

VAR00005 Imaging VAR000015 Water resistance

VAR00006 Utility VAR000016 Robustness

VAR00007 Social networking VAR000017 Software compatibility

VAR00008 Weight VAR000018 Corporate usage

VAR00009 Sleekness VAR000019 Audio visual quality

VAR000010 Color VAR000020 Downloading rates

The following methods were being implemented on the collected data.


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In the descriptives there was an option that determines the correlation coefficients between the

different variables. So our first output is the correlation matrix.

Due to the lack of space in the SPSS output viewer we have copied the entire data set in the MS Excel

spread sheet. From here we get an idea which of the variables would form a part of different factors. For

example we see that correlation coefficient between VAR00001 and VAR00019 is 0.92.

This means they are highly correlated and so they are likely to form a part of the same factor.

The second output is Kaiser-Meyer-Olkin (KMO) and Bartletts test. From the output table we find the

following

The KMO and Bartletts test actually determines the adequacy of the sample. If the value of the

sampling adequacy is more than .5 then the sample is adequate. Here we find the value to be .731

which is greater than .5 so we can interpret that our sample is adequate enough.


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The third output is an important one as this is the first output of the principal component extraction.

Here we determine the communalities. It determines the extent to which the variance in the variables

has been accounted for by the extracted factors.

As for example we can say that 92% of VAR00016 (that means robustness) has been taken into

consideration. Then comes the second output of principal component analysis. This is known as Total

Variance Explained. This shows the Eigenvalues representing the coverage of the critical factors

included in the factor analysis. It also contains the extraction sum of squared loadings which

determines the components having the Eigenvalues more than 1 and their cumulative percentage (%) of

variance.


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Here we find that Eigenvalues of 5 components are more than 1 and their cumulative percentage of

variance accounts for almost 74% of the total variance. This is quite economized because from the set of

20 variables we have reduced ourselves to 5 factors almost covering 74 % that means we have lost only

26 % of the information content.

Then comes the scree plot. This helped us to determine the number of factors that we should retain.

From the scree plot we find that after the extraction of the 5th

component the curve begins to even out.

So only 5 factors are being kept here. The scree plot is actually the plot of the Eigenvalues of the factors

and the component number. So from there we can determine the factors that are to be kept. We caneliminate the factors from the graph that have Eigenvalues less than 1.

As for example in our scree plot we find that up to component no 5 the Eigenvalues is 1.032. So we take

components up to number 5.


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The component matrix shows the loadings of the variables on the 5 extracted factors. The loading shows

the extent to which the factor contributes to the variable. Loadings less than .5 are not shown here as

suppress loadings less than .5 were entered in the factor analysis options dialog box.

Now comes the most important part of the data analysis. This is the interpretation of the rotated factor

matrix. First of all let us take a look into the rotated factor matrix that has been generated from our data

part.


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For component 1 we find that VAR00004, VAR00014, VAR00017, VAR00020 have loadings of .959, .873,

.884 and .940 respectively. That means we can interpret that Component 1 or factor 1 is combination

these 4 original variables. Or in other terms we can say that internet and news, connectivity,

software compatibility and downloading rates are in a similar group. We can name this group as

technology freaks. This is our factor 1. Here we can say that those consumers whom we have given

the name as non users of Nokia NSeries are actually not buying NSeries because they are satisfied with

their current device from the technology point of view. These are mostly the consumers who are using

mobile sets like Nokia E Series, Nokia 3230, Sony Erickson W350i, HTC and Blackberry.

For component 2 we find that VAR00001, VAR00005, VAR00019 have loadings of .969, .966 and .934

respectively. So we can say that factor 2 is a combination of these variables. From our parameters table

we find that these variables are entertainment, imaging and audio -video qualities. This is our

factor 2. This group can be named as media and entertainment. The consumers are satisfied with

their current devices in this factor also. From our survey we have seen that majority of the consumerswho are not buying Nokia NSeries are using devices like Nokia 5300 music express, Nokia 5310 Music

Edition, Sony Erickson 960 Walkomania or MotoRAZR V3M. They feel that in terms of media and

entertainment their sets are better than that of Nokia NSeries.

For component 3 or factor 3 we find that VAR00008, VAR00009, VAR00016 have loadings of .919, .780

and .955 respectively on it. These are variables are weight, sleekness and robustness. These


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variables have loadings on factor 3 which we name as sturdiness. Some consumers feel that Nokia

NSeries are heavy, is not slim and is not robust at all. So they are not buying Nokia NSeries. Such type of

consumers is preferring sets like Nokia 2600, Nokia 1110, and Samsung slim over NSeries.

For component 4 we find that VAR00018 only have loading on factor 4. This means that one variable

only has control over the factor 4. The factor 4 is viability in terms of corporate usage . So we can givethe name of the factor same as that of the variable name. For some consumers Nokia NSeries is not

suitable to be used for corporate usage. It is better to use Noki a ESeries and Blackberry instead of

NSeries. Hence they are not buying Nokia NSeries.

In our survey we took the questionnaire to 103 people (the number of survey made outside the college

campus only for non users of Nokia NSeries) and out of them 81 have filled the questionnaire properly.

So we took our sample size to be 81. Out of the total sample size 29 have said that they are not aware of

the prices of Nokia NSeries. From the remaining 52 there were 17 consumers who thought that the price

of NSeries was high, there were 4 consumers who thought that the prices were low and the remaining

31 thought that the prices were justified.

Figure 10

This clearly indicates that most of the people at Hyderabad are aware of the pricing of Nokia NSeries but

they are not using Nokia NSeries as their current device.

Out of the total 103 consumers we found that 89 are interested in retaining their current sets or buying

some other device in the near future but they are not interested in buying Nokia NSeries in the near

future. For the remaining 14 they are interested in buying NSeries at the near future.


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Figure 11

From the above two graphs we can say that 59 % of the people think that the price of Nokia NSeries isjustified. But 86 % of those consumers are not going to buy it. This is mainly because they are satisfied

with their current device in terms of the 4 factors technology, media and entertainment,

sturdiness and corporate usage. This is the reason why people are either using some sets which are

at higher price than that of Nokia NSeries as they satisfy the factors technology, media and

entertainment and corporate usage. The remaining people think that Nokia is not sturdy enough so

they are using sets which are sturdy enough at a lower price than that of NSeries.

Nokia has grabbed about 79% of the Rs 15000 crore of the mobile handset market in India. Regardless

from our survey we find that

Figure 12: MALE AND FEMALE PERCENTAGE OUT OF 103 NON N -SERIES USERS


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78%

22%

MALE

FEMALE

Figure 13: MALE AND FEMALE PERCENTAGE OUT OF 97 USERS OF N-SERIES

Figure 14: MALE AND FEMALE PERCENTAGE MOBILE USERS at Hyderabad


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7.CONCLUSION

Now we find that;

The mobile handset manufacturer has developed a new retail strategy classifying its users into four

major groups separating people in terms of usage, income level and lifestyle. The classification is based

on an extensive survey the Nokia Segmentation Study that was carried over two years involving 42,000

consumers from 16 countries.

It studied the impact of lifestyle and attitude on the choice of mobile handset that consumers buy and

its usage. The strategy is also being used in India. While the company is still working on the nitty gritties

it plans to follow separate marketing strategies for the four segments.

Even the advertising campaigns are going to be different for the different segments.

Nokias entire product portfolio has now been re-aligned towards these four groups to address the

specific needs of each.

1. The first of these segments Live, aimed at first time users whose basic need is to stay in touchwith voice as the main driver, would have basic handsets low on features and price.

2. The second segment Connect looks at more evolved users who look for more functionality andfeatures and connectivity. Accordingly, phones in this segment would have GPRS, camera and

music capabilities.

3. The next category Archive is aimed at high end users. It looks at enterprise users who need tohave business functionality in their phones. The new E-series have been put in this segment.

4. Explore, the fourth category is for very high end users having various features in their phonessuch as imaging, mobile TV, music and gaming.

Nokia acquired music solution and content provider LoudEye and GPS solution provider Gate5. It is all

slated to launch its most high-profile handset, which boasts of having a 5 megapixel camera and GPS

capabilities apart from iPod quality music, in February. There is increasing demand for convergence and

multiple functionalities in high-end handsets. The company assumes that the answer would be the N-

series phones they plan to launch various handsets using N-series as their platform assuming that it

would become a status and style statement becoming a driving force.

But from the survey we found that the strategy would not be applicable in Hyderabad, because oursurvey reveals that there are people who either use sets that are higher than the N-series like the

Blackberry or sets that are lower than the N-series like models such as 2600 or 1120(more than 50%).

Hence we feel that the company needs to target the consumers accordingly.


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