SEGMENTATION OF THE MARKET BY NOKIA Nseries

Major segmentation variables for consumer markets are:

1. Geographic:

Nokia Nseries has targeted towards metro and tier-I cities. The main reason behind this is the segment
size available in these urban cities. 50 percent of Nokia’s sales come from the Asian Pacific region in
which India and China hold a majority.1 As far as countries go, India and China are the prime targets for
Nokia in the near future because of the booming telecommunication market in both these countries.

Present Country Subscriber Additions in Total Subscribers in Percentage 2006

Rank 2007 (in millions) Dec 2007 (in increase over Rank
millions) Dec 2006
1 China 86.22 547.3 18.7 2
2 India 84.01 233.63 56.15 1
Source: “Top 10 Emerging Mobile Markets 2007”, 30th April 2008 http://www.lightreading.com/document .asp?doc_id
=151913&page_number=1&table_ number=1 accessed on 20th August 2008.

2. Demographic:

• Age:
Nokia Nseries is a phone which is targets towards young adults in the age group of 18-35 years. India
has a median age of 25.1 years as of now2 and it will cross the mark of 30 years in 2025. Nseries is a
phone which is targeted towards young adults between the age group of 18-35 years. So it is completely
understandable, that why Nseries is targeting this particular segment.

• Gender:
The number of male mobile users is higher than the female mobile users, especially in India3. But the
population sex ratio is 933 females to 1000 males4 which are almost equal. So Nseries came out with
special models for female consumers in pink and plum colors to attract female segment. This was a
marketing strategy to target the females.

Source: Compiled from http://www.pinkrainbows.net/images/pink-nokia-phone.jpg and

http://www.tech2.com/media/images/2007/Apr/img_5814_nokia-n76_red.jpg

• Income Levels:
The Nseries range starts from Rs 7800/- and ranges up to Rs 35500/-. There are many mobile dealers
who finance the mobile phone purchases. This has increased the segment size for Nseries when it comes

1
“Nokia India ltd.,Nokia website”, http://www.indiahousing.com/nokia-india.html accessed on 18th August 2008
2
“Indian Median Age” (16th may 2008) http://indexmundi.com/india/median_age.html accessed on 18th August 2008

Shah, Cerius, (24th July 2008), “Most Indian Mobile Users are Male”, http://www.contentsutra.com/entry/419- most-indian-
3

mobile-users-are-male-report/ accessed on 21st August 2008

4
“Sex Ratio of India” http://www.iloveindia.com/population-of-india/sex-ratio.html accessed on 21st August 2008
 to income levels. Consumers from the upper class to middle class are targeted based on their income
levels because of the vast variation in the prices of various models.
• Family Size:
The number of mobile phones per family is increasing in India year by year. With the rise in the income
levels of the middle class their spending power has increased remarkably. Nokia advertised itself as a
necessity to know about the well being of your loved ones. Although this wasn’t an advertisement for
Nseries still this portrayed the fact that even for a small family of three, two mobile phones are required.

3. Psychographic:

• Life Style:
Lifestyle is a way of life. Nseries has a lot of features which are used to target consumers with varied
tastes and interests. Feature like a 5 Mega Pixel camera will attract a consumer who is interested in
photography, on the other hand the internet browser feature will attract a consumer who travels a lot.
That person can access emails via the mobile phone itself. This way Nseries can be related to varied
lifestyles but it is very tough to have a direct correlation with a particular type.

• Personality:
The strengths of Nseries are its music, camera and the internet browser feature. This segment includes
all who like listening to music and want to associate the “cool” image with themselves. In a few cases
who are interested in photography and browsing on mobile phones can also relate with this phone.
College going students and young executives come in this segment. Nokia came up with Eseries which
has a formal look to it, targeting other executives with more experience.

• Values:
According to Nokia’s marketing director Mr. Wilster, values are very important aspect of segmentation
for Nokia. When a person holds a phone the “Feel good” factor should come in .With so much of
competition, products are not being bought on their functional values but on the perceived value5. Other
than this Nokia and the psychographic values cannot be interrelated. So Nseries is a product which is
specially designed to deliver more than just the operational features.

4. Behavioral Segmentation:
.
• Occasions:
Nokia provides discount offers on its Nseries range during festive seasons to increase their sales. The
rates of these mobiles go down during Diwali, Dhanterus, Aadi (in south India) and on many other
occasions like these. People are more willing to spend money during this period of time. As a result, a
major segment of the market is targeted during these times. Other than these, mobiles are gifted for
birthdays, anniversaries and other special occasions.

• Benefits:
Benefits associated with the Nseries are music player, good quality camera, durability, quality, ease of
reparability, Bluetooth, internet browser, sound clarity, but most essentially a user friendly OS and long
battery life. These additional benefits are used to target the consumers.

• User Status:

5
Steinbock, Dan”, (2001)” The Nokia Revolution” “Chapter 10: Downstream Innovation” Page 261-279.
 Based on a survey conducted by Nokia, they segmented the market into four types of customers. The
Nseries is not segmented for the first time users. It is focused towards a segment termed “Explorer”.
This segment comprises of consumers who are well aware of the market and the product. They are
looking for very good features. They can be non users, users or ex users of the brand.6

• Usage Rate:
Nseries has a long battery backup especially when compared to its competitors. Based on this they have
been able to target consumers who use their phones extensively.

• Buyer Readiness Stage:

Nokia is a very prominent brand in the market with a share of above 40 percent in the global market and
around 53 percent in the Indian market7 .So most of the people are aware and informed of this brand.
Nseries is the fastest selling product line for Nokia. As a result Nseries markets itself to attract the
interested and ready to buy customers as this segment is large enough to sustain profitable operations.

• Loyalty Status:
Retaining customers is essential for Nokia as people tend to change their mobiles in 2-3 years. During
this period their income levels also rise normally. So Non Nseries users who have used Nokia in the past
will tend to buy an Nseries phone. As a result “Hard Core Loyals” and “Shifting Loyals” are very
important. Shifting Loyals and switchers are targeted using other marketing techniques also.

• Attitude:
Market has never been negative or hostile towards Nokia. So Nseries has been able to target the
enthusiastic and positive groups very efficiently. There is a segment which is really enthusiastic about
all the upcoming products of Nseries. Nokia cashes upon this opportunity by setting high prices initially
and then lowering the price later for people with a positive attitude towards the product.

POSITIONING STRATEGY OF NOKIA Nseries

Nseries positions its products using the following differentiation strategies and they are as follows:

1. Product differentiation:

• Form:
Mobile phones do not come in different forms, so this differentiation is not applied on Nseries.

• Size of Packaging:
Mobiles are bought because of their features, pricing, looks, style, durability, user friendliness, size
and not based on the size of packaging. So this type of differentiation is not applied on Nseries.

• Features:
Nokia differentiates its Nseries mobiles by providing the latest multimedia features. Other than the
normal features of a phone, Nseries can be used as a music player, user friendly OS, video capture

6
ArunKumar and N Meenakshi, “Nokia India Segmenting the market using multiple variables” http://www.best
marketingtextbook.com/PDF/nokiaindia.pdf accessed on 19th August
7
“Nokia says India Market stake holds at 53 pct – report” (10th October 2007), http://in.reuters.com/article/business
news/idINIndia-29929520071010 accessed on 18th August 2008
 and photography by providing cameras of 1.3 to 5.0 megapixels, mobile gaming, good colour
resolutions, Bluetooth, internet services, touch pads, internal memory USB ports, email assistance
and FM radio8. Nseries aims at users who e looking for a package of many features in a single
device.

• Design:
Nseries mobiles are highly attractive phones with a basic candybar design9, flip open design and
slide open design. The phones normally measures around 11 cm high 5 cm wide and 2 cm thick, the
gross weight varies between 100-170 grams10, making this handset very light for the user to carry in
their hands or pockets.11 The mobile comes with a dual slide mechanism. The slide up reveals the
keypad and the downward slide uncover the stylish music keys.

• Durability and Reliability:

It is the product’s expected operating life under natural conditions. Nokia has been known for its
reliability and durability. The perception in India is “If it’s Nokia then it has to be good”. It has been
there for a very long time. Nseries handsets come with a warranty of 1 year, even the accessories
such as chargers also come with a warranty period of six months. The incident of BL5 batteries
proved that Nokia is a reliable company and cared about its customers.

• Ease of Reparability:
Nokia’s spare parts are easily available in any of the mobile service shops. The local repair shops
and vendors have acquired the expertise in repairing Nokia phones in India. This has really
increased the ease of reparability in the case of any Nokia mobile phone including Nseries. Still
there is an issue because many technologically advanced spare parts like the cameras, Bluetooth
chips are not readily available with the local dealers. But these are easily dealt with, by authorized
service.

• Product Quality:
There are four levels of performance quality: low, average, high or superior. Nseries has high
performance quality. Nseries also has a few certifications for its mobile operating system like VPNC
certification, ITSEC certification, EAL4 certification, ICSA Labs certification and FIPS certification
that prove its quality12.

Source: Compiled from http://europe.nokia.com/A4153224

2. Service differentiation:

8
“Nokia N Series”, http://en.wikipedia.com/wiki/nokia_n_series accessed on 20th August 2008
9
The Bar (or Slab, or Candybar) is a popular electronics form, where the device is a rigid cuboid. It is so-named because it
resembles a candy bar or slab in size and shape. Definition taken from “The Bar” http://en.wikipedia.com/wiki/the_bar accessed
on 20th August 2008.
10
Kent, German “Nokia N-series line show” 5th May 2006, http://reviews.cnet.com/4520-3504_7-6217771-1.html accessed on
20th August 2008.
11
“Dev, Martin (28th July 2008) “Nokia N series is not Just one Thing but Many!”, http://www.buzzle.com/articles/nokia-n-
series-is-not-just-one-thing-but-many.html accessed on 20th August 2008
12
“Certification”, http://europe.nokia.com/A4153224 accessed on 16th August 2008.
 • Ordering ease:
The Nseries is available in all leading and small-time mobile shops. These shops are located in varied
locations and are in abundance. So when it comes to ordering an Nseries, it is so easily available that a
perspective buyer has to normally travel a short distance to find an outlet to purchase it. Hence Nseries
is right in front when it comes to ordering ease.
• Delivery:
Delivery is also another front where Nokia faces not much trouble. Since the purchase is made by the
consumer directly, no delivery services are required. Sometimes if the stock is unavailable in a
showroom, customers are either requested to go to another store where the stocks are available or just
asked to come on a later date when the product will be available.

• Installation:
For a product like an Nseries, no installation is really required other than installing the phone’s software
application on the user’s personal computer. Hence this is not really a differentiating factor.

• Customer Training:
With the level of increased awareness among the general population about the usage of the mobile
phones, the simple technology being used has made it a layman’s accessory. The only customer training
that Nokia provides is at its showrooms at the time of purchase and even later, if required. This training
is on the basic usage of the phone and when it comes to high end phones like the Nseries.

• Guaranty/Warranty:
Nokia provides a year long guaranty period on all of its phones. When it comes to the Nseries, the
service is far more extensive. Other than just repairs in case of any problems with the phone, Nokia, in
some special cases, also replaces the phone. This is a service that is provided only by Nokia and no
other company in the Indian Market provides a full product replacement.

• Financial Arrangements:
This is one front in which Nokia as a company hasn’t taken any steps. All the Nokia dealers are based
on a franchisee model. Although all these showrooms have the facility of credit card payment which can
be converted to loans. This facility is not a provided by the parent firm. So Nseries is not differentiated
based on financial arrangements.

• After Sales Services:

This is probably the most important differentiating factor when it comes to service differentiation. Nokia
has set the benchmark for providing quality after sales services. They provide fast and effective
solutions to the problems faced by their respective customers. It is well known that Nokia has the most
dominant presence in the mobile phone market and it is expected that they will provide quality after
sales services and till now they have done a fantastic job leaving their competitors way behind in this
context.

3. Personnel differentiation:9

To understand how Nokia differentiates itself based on its personnel we interviewed the Showroom
Manager of “Nokia Concept Store” located in Hyderabad.13

“Lateef, Farhan” Showroom Manager, “Nokia Concept Store” 6-3-1086, Raj Bhavan Road, Somajiguda, Hyderabad. Contact
13

Number: 9989711110/4/3330.
 • Competence:
It is the ability of personnel to understand the problem/requirement of customers14. Technical faults in
the phones are dealt by “Nokia Care”. For solving any problem, the sales executives need proper
knowledge about all the products. For this purpose all executives of “Nokia Concept Showroom” are
given training and a handbook to understand the problems of the customers. At the same time the owner
of the “Nokia Care” center is coached to train all his/her employees. There are certain norms that have
to be followed at all the “Nokia Priority” centers and “Nokia Care” Centers. A technical representative is
required to be present from 10 am to 6 pm without fail.

• Courtesy:
This means that the personnel should be friendly, respectful and considerate. All the sales executive are
trained to treat all the customers with respect. There are certain norms that all the employees have to
follow at all the “Nokia Priority” and “Nokia Care” centers. There is a dress code and many do’s and
don’ts while interacting with the customers. Call center executives are trained to a much greater extent.
Their responses are a bit monotonous which makes them too courteous; it is better than sounding rude.

• Credibility and Reliability:

Credibility is the trust we have on the personnel and reliability is the consistency and the quality of
service that is provided. Nokia showrooms are very prompt with their services compared to its
competitors, especially after the setting up of the plant in Chennai. As a result the service time promised
to the customers by the personnel are normally met. This increases their credibility and reliability.

• Responsiveness:
Nokia cares about its customers a lot. Any query left at the showroom or the customer care center is
attended to as soon as possible. Nokia takes the initiative to inform the customers as soon as their
problem/query is resolved. Other than that at the showroom also, the time taken for any problem solving
is really low because of the presence of properly trained employees.

• Communication Skills:
This involves the effort to understand the customer and communicate in a clear way. For doing so, again
the training given to all the sales and call center executives pays off, as in these training sessions proper
guideline on how to communicate with the customers are given properly. This helps the employees to
make their communication skills better.

4. Channel differentiation:

Nseries has gained a huge competitive advantage by setting up many distributers throughout the country.
Nokia has over one lakh distributers across India. Nseries is available in more locations than its
competitors in the same segment. This makes the product easily available. Their distribution channel is
far more superior compared to any of their competitors. Samsung recently has started acquiring the
Nokia distributers to increase their market share. They have been successful in other countries but this
hasn’t paid off in India.15

5. Image differentiation:

14
“Kotler P”,”Keller.K”,”Koshy.K” and “Jha M” (2007), “Marketing Management 12th Edition, A South Asian Perspective”,
“Chapter 11: Crafting The Brand Positioning, Differentiation Strategies” Page 295-298.
15
“Samsung dials Nokia distributers to grab market share” (6th Match 2008), http://financialexpress.com/news/Samsung-dials-
Nokia-distributers-to-grab-market-share/281156 accessed on 21st August 2008.
 • Logo:
Nokia has not made any significant changes to its logo in the period that it has been present in the Indian
market. Over the 13 years of its presence in India, Nokia has changed its logo only once. Earlier Nokia
had a Nokia “arrows” logo. Then it was replaced by Nokia “Connecting People”. This was a change in
the marketing strategy of the company. It wanted to relate to the people by conveying the message that
Nokia helps in building relations. Before these two logos, Nokia had two more logos when the firm had
not entered the telecommunication sector and were producing rubber products.

Source: Compiled form “Nokia”, http://en.wikipedia.org/wiki/nokia (Logos in chronological order from

right to left)

• Company’s Management:
As far as the management of the company is concerned, as a way of showing the true picture of the
company, there is not much that can be said. The management, in the Indian perspective has not played
any major role in the formation of the image of Nokia. The company did take initiative to become
socially responsible though. The management had taken the decision to associate itself with WWF-India
to promote the initiative of “Save The Tiger”.16

• Atmosphere:
When we talk about the “Atmosphere” aspect, we are talking about the feel of the official
showroom/office. For Nokia, this has never been a problem. And for the Nseries, Nokia has gone one
step further. Other than revamping most of their priority dealer outlets to exemplify the brilliance of
their product, Nokia has also setup seven “Nokia Concept Stores”. These stores are designed in such a
way that the customer will feel that he/she is standing in the middle of a cellular Tech Hub.
• Media:
Nseries advertises in fashion periodicals, English movie channels and music channels. Other than that
print media is also used a lot. A lot of advertisements of Nseries can be seen during Formula1 races and
football matches. This is to target to the segment which is interested in music and the high end users.

• Events:
Nokia on the whole has sponsored many events like the 2008 Cannes Lions International Advertising
Festival and the 50th Grammy awards. This is to position itself as a brand which is associated with
entertainment17. India is a country which worships cricket. To use this as an opportunity, Nokia
sponsored the team owned by Shah Rukh Khan, “Knight Riders”. This way all the cricket followers will
become much more aware of the brand.

16
“Nokia and WWF to Save the Tiger”, http://www.techtree.com/India/News/Nokia_and_WWF _to_Save_the_Tiger/551-91518-
613.html accessed on 17th August 2008.
17
“Nokia N-Series is the main sponsor of Cannes Advertising Festival”, http://www.n-series.us/ accessed on 12th August 2008.
Source: Compiled from http://ideasmarkit.blogspot.com/2008/05/nokia-millan-of-villains-online.html and
www.viaspire.blogs.com
CRITICAL ANALYSIS OF Nseries POSITIONING STRATGY:
• Importance:
Positioning is really important. There are many competitors in the market who are trying really hard to
snatch the market share of Nseries. If Nseries is not positioned properly, it could easily loose market
share to brands like Sony W series, Samsung U series and Motorola V3i. Nokia has positioned Nseries
as a music oriented phone. Sony, Motorola and Samsung are trying to give Nokia a run for their money
by signing brand ambassadors like Hrithik Roshan, Abhishek Bachhan and Aamir Khan. All three come
in ads of Sony, Motorola and Samsung respectively. Nokia is not using any brand ambassador for
Nseries. The advertisements given for Nseries are feature based. Although Shah Rukh Khan has been
signed as the brand ambassador for Nokia, he hasn’t featured in even a single advertisement for Nseries.
• Distinctiveness:
Nokia has been very successful in creating a distinct image for Nseries. The good thing about this
product is the way people have perceived it as a music phone with a very good camera. It is a full
package of the latest multimedia technology with the easiest user interface. A separate range for the
ladies in pink and plum colours, front and back camera and slide cover for the camera has made Nseries
a distinct brand in the market.
• Superiority:
Nokia has been in the Indian market for over 13 years now. Over this period of time they have built a
rock solid image in the eyes of their target segments. This image has shown its effect on the N-series
range also. The Nseries uses an OS provided by Symbian which is known to be the fastest and the most
efficient OS in the market. Also Nseries is known for its user friendliness. Also Nokia phones are known
to provide the longest battery back up.
• Preemptiveness:
N-series was the first phone in its segment to introduce a phone meant for music. It also introduced
phones in pink and plum colour for the female customers. This trend was then copied by Motorola, but
it wasn’t successful. Nseries was the first phone to have a camera in the front and the back. It was
preemptive in many of its design and software features also. So being preemptive helped the Nseries
range to gain an edge above its competitors. Above all Nokia was the first brand to sponsor a cricket
team, “Knight Riders”. Now people will relate cricket as well as entertainment with Nokia because of
the Shah Rukh Khan factor. Although even Spice did the very same thing their strategy didn’t pay.
• Affordability:
Affordability is a very important aspect of positioning. The Nseries ranges from Rs. 7800 to Rs 35500 in
India. With all the financial facilities available these days,we can say that the number of customers who
can afford the N-series range has gone up. The customers perceive Nseries to be good value for money,
 so even though the prices are a bit high the brand can be said to be affordable because of the entire
package it provides.
• Profitability:
After setting the price, the sales figure achieved should be high enough to generate substantial profits.
The annual sales figures of Nokia are rising in every quarter. The sales share of Nseries is increasing in
the revenue generated. As a result we can conclude that Nseries is generating substantial profits for its
parent firm, Nokia.

PITFALLS IN THE POSITIONING OF Nseries:

Under positioning:
Nseries would have suffered if it would have kept on positioning itself just as a music phone. Nokia
realized that Nseries would loose its charm if this continues. As a result Nokia came out with many new
models of Nseries and focused on other features while advertising Nseries.

Over positioning:
Initially the prices of the Nseries were assumed to be out of reach of the middle class. Seeing this Nokia
started advertising Nseries with the prices mentioned below the respective models. This way they were
able to avoid over positioning.

Confused positioning:
Nseries products were a luxury product initially because of the high prices. But as the prices went down
many other income segments were able to afford the same. This could have created confused
positioning, but the fact that the prices of all the competitors also fell didn’t let this happen.

Doubtful positioning:
Nseries has never claimed anything which is not believable by the consumers. So Nseries has never
faced the problem of doubtful positioning.

FACTORS IMPACTING THE BUYING BEHAVIOR OF NOKIA N-series

1. Cultural Factors:

• Values, Perception and Preferences:

An Indian child is exposed to values like respect and care for elders, achievement and success. The
percentage of nuclear families has risen from 68.10 per cent to 70.40 per cent in 200118. So there is a
need of communication between them. Our culture has strong family values. The youth is fond of latest
technologies in mobile phones which N series provides. When a person with strong cultural values
needs the combination of all the multimedia features and a device to communicate, Nseries in the best
choice. Nseries is also considered to be a status symbol(according to our survey) so if a consumer
possesses it, he will sense a feeling of success and achievement and in the process make his/her family
proud.

18
Mitra,Abhijit (February 01, 2008 ) How to provide for parents, kids and still save, Outlook Money” http://www.rediff.com/
money /2008/feb/01bspec.htm accessed on 18th August 2008.
 • Subculture:
Nseries provides OS in many languages like Hindi, Tamil and other languages. This attracts many
customers towards this product who have difficulty in operating phone instructions in the default
English language. Advertisements in different languages also help them to relate to the brand in a better
manner.
• Social Class:
Social class includes different factors like occupation, education, income, race etc. On the basis of
income consumers can be divided into upper, middle and lower class. Consumers in the genre are well
aware of the products of Nseries because of the advertisements and word of mouth.

2. Social Factors:

• Reference Groups:
Membership groups like friends, family and co workers are the second most influencing factor for
gaining information about mobile phones. The general perception about Nseries is very good. As a
result most of the times the information received gives a positive image about the brand. From our
survey, 65 percent didn’t own an Nseries phone and out of these more than 90 percent aspired to own
the very same. The association of Nokia with SRK as an opinion leader has also influenced the
consumers a lot.
• Family:
Family helps in forming a perception about a product. The opinion of one person in the family can
influence the buying behavior of the consumer. So in case a family member has had a bad experience
with Nseries, it will directly impact the buying behavior of the consumer.
• Roles & Status:
According to our survey Nseries is considered as a status symbol or a luxury good by more than 75
percent of consumers. So Nseries adds to their status and thus perceived as a valuable status symbol. So
expectations of those people who have Nseries mobiles affect the purchase of others.

3. Personal Factors:

• Age and Stages in the Life Cycle:

Users of different age groups buy different Nokia mobile sets according to their needs. The youth which
forms a 75 percent of the India population19 will prefer buying a Nokia handset that is equipped with
more of latest technological advancements. Nseries advertises itself with the caption of “'Zindagi ke
naye mod pe, aa gaye aaj hum' which makes this phone fit for any new occasion or change in your life.
So it targets students entering college, college students going to work and so on.

• Occupation and Economic Circumstances:

There is no difference between the attitude towards Nseries by students, businessmen and service
oriented consumers. The consumers prefer buying the mobile when they have saved enough money to
buy a phone.

• Personality and Self Concept:

19
“Will”, (13th August 2008) “The Indian Youth Summit on Climate Change 2008” http://www.350.org/en/about/blogs/indian-
youth-summit-climate-change-2008 accessed on 21st August 2008.
Consumers who are competent or like excitement or sincerity will go for the Nseries line. Nseries is a
reliable brand which provides competence. It has multimedia features which can be used in many
imaginative ways. And delivery on promise and durability will attract the consumers who are sincere.
Being a status symbol the sophisticated class will also go for this product.

• Lifestyle:
Lifestyle is a way of life. In general Nokia Nseries has a lot of features which target people with varied
tastes and interests. Feature like a 5 Mega Pixel camera will attract a consumer who is interested in
photography. On the other hand the internet browser feature will attract a consumer who wants anytime,
anywhere internet access. This way Nokia Nseries can be related to varied lifestyles but it is very tough
to have a direct correlation with a particular type of life style.

4. Psychological Factors:

• Motivation:
Need for Nseries mobile phone arises basically because of psychogenic factors such as need for
recognition, esteem or belonging (via communication). Our analysis shows that for Nseries, these needs
are intensified and converted into wants by motivational triggers, by influential advertisements, need for
a status symbol, basic communication need or belongingness to a peer.

Source: Market research conducted by our team.

Nseries has the latest multimedia technologies in it and this motivated 92.3 percent of the people who
didn’t own an Nseries phone to say that they would like to buy Nseries in future.
• Perception:
The perception about Nseries is very positive according to our survey. Thirty nine out of forty people we
surveyed perceived Nseries to be good, very good or an excellent brand. This shows that perception has
a positive effect on the consumer buying behavior.

Source: Market research conducted by our team

• Learning:
We asked the people about their experience with the brand Nseries. Their responses gave it a rating of
above 4 out of 5, where 5 being excellent, 4 being very good and so on. This clearly shows that people
have had a really good experience with the Nseries line of products.

• Attitude:
Consumers have never been negative or hostile towards Nokia. So consumers who have an enthusiastic
or positive attitude toward Nseries are attracted towards the product. The prices of mobiles go down
really fast. Another set of consumers wait for that and then buy the product.

• Beliefs:
Generally people have this belief that Nokia provides quality products when it comes to durability,
reliability, ease of use, long battery use and overall quality of features. This belief is then implied on the
Nseries also. Nseries is also perceived to have the same set of attributes being a Nokia product. This sets
a really positive image of Nseries in the eyes of the consumers.
BUYING DECISION PROCESS OF A CONSUMER FOR NOKIA N-SERIES
 Need/Problem Recognition:
From the market research we conducted, we reached the conclusion that internal stimulus for buying the
Nseries is derived from the basic need of communication. Among the external stimuli, influential
advertisements trigger the need for the Nseries phones. It is followed by a drive of possessing a status
symbol, need for communication and peer pressure and influence of friends and family.

Information Search:
Public reviews in newspapers and periodicals seem to be the most popular source for attaining
information about the mobile phones. After this, suggestions from family & friends and demo trials are
neck to neck. Commercial advertisements are the least preferred source of information within our
sample.

Evaluation of Alternatives:
For Nseries the other alternatives are evaluated on the basis of features, price, durability, style, size and
brand value. Nseries has gotten a really high rating for features, value for money, durability, style and
brand value. Size wise Nseries is compact and light weight. As a result, it will easily come on top above
its competitors. Out of the 40 people we surveyed, only 2 didn't own or want to own an Nseries phone.
That shows the brand's superiority over its competitors.

Purchase Decision:
In brand decision, Nokia heads the preference by a huge margin. 50 percent of the sample considers
Nokia as a superior brand to its competitors. Vendor decision wise, 80 percent of the people prefer the
official showrooms and other famous retail outlets. Only a few are willing to buy from the local vendors
and the grey markets. Time is not a major concern for more than one third of the population, but after
that the economic condition of the customers also matters. Festivals and special occasions also attract a
descent number of people to buy the mobile phones. Payment method is not a problem in the case of
Nseries phones as credit card and loan facilities is available with many dealers. The extra charge on
credit cards might have a slight effect but it is not so severe. Attitude of the salesperson, a friend
accompanying you or a fellow customer may also influence the purchasing decision. This happens on
the spot at that moment. If the customer is well informed about all the products and has no doubts in his
mind, it will probably affect his purchasing decision.

Post Purchase Decision:

The customers are really satisfied with the Nseries phone. The people who own the phone have rated it
between "very good" and "excellent" .They are also happy with the features and the total experience of
the phone. All in all we can say that most of the customers are either satisfied or delighted with the
Nseries range. Cognitive dissonance is common as there are multiple vendors and each vendor comes
out with different offers frequently. Above that the prices in the mobile market go down very quickly
which further leads to cognitive dissonance.

• Sets Involved in Consumer Decision Market:20

Total Set: 21Nokia, Samsung, Sony, Motorola, LG, Apple, Reliance, HTL, Tata, Panasonic, Spice,
Intex, Fly, Siemens, Chinese phones, Virgin, Bleu, BPL, HP, Nextel, Haier, Huwai, BenQ, Vodafone,
20
All graphs exhibited over here are derived from the market research conducted by our team.

Tata, Reliance and Vodafone are brands which are perceived as Orignal Equipment Manufacturers by our respondents. Thus we
21

have included these three brands in our total set.

 Dopod, Blackberry, wClassic, Toshiba, Onida, O2, Frontech, Sharp, Bird, Sagem, TCL, Lenovo,
Philips, Hyundai and Siecom.22

Awareness Set: Nokia, Samsung, Sony, Motorola, LG, Apple, Reliance, HTL, Tata, Panasonic,
Spice, Intex, Fly, Siemens, Chinese phones, Virgin, Bleu, BPL, HP, Nextel, Haier, Huwai, BenQ,
Vodafone, Dopod, Blackberry, wClassic, Toshiba and Onida.

Consideration Set: Nokia, Sony, Samsung, Motorola, HTL, LG, Tata, Reliance, Apple and
Panasonic.

Choice Set: Nokia, Motorola, Samsung, Sony, LG, HTL.

IMPACT OF POSITIONING AND SEGMENTATION STRATEGY ON CONSUMER BUYING

BEHAVIOR:

Impact of Positioning on Consumer Buying Behaviour

Effect on Consumer Buying Behaviour
Product Differentiation
Form This does not apply for Nseries.
The various designs in Nseries attract different type of consumers. A flip open
phone is preferred by consumers who want to protect the screen and the keypad.
Design
Similarly many other attractive designs affect the attitude and perception toward
Nseries. A good design can also trigger the motivation factor.
The various features are useful to the consumers. The consumers can relate many
of the features with their lifestyle and personality. A set of features put together
Features also influence the "self concept" factor .At the same time the option of OS's in
various languages will create a positive attitude in front of the respective
subcultures.
Size of package This is not applicable for Nokia Nseries
A high product quality in Nseries has lead to the perception in the minds of the
Product Quality consumer that Nseries comes out with durable products. Consumers who are on
the matured side would also like a product which provides quality.
Nseries is known for its durability. This creates a positive attitude towards any
product which is of Nseries. The consumer’s beliefs about the brand changes.
Durability This will also attract rough users, which might be because of their occupation. At
the same time, a durable product is less likely to malfunction, thus it is easy on
the pockets as well.
A product which is easy to repair can save both time and money. So the economic
circumstances is worth a mention here. If a person is really in love with his/her
Ease of Reparability occupation, time is gold in that case. Also the perception and beliefs about
Nseries will have a positive affect.

Service Differentiation

22
“List of Mobile Phone Companies”, hhtp://www.digitalnuts.com/mobile-reviews.html accessed on 21st August 2008
 Because Nseries is easily available in almost all the mobile showrooms, it
automatically comes in the awareness set of the consumer. Nseries in easily
Ordering Ease
available and one of the most demanded mobiles so automatically most of the
consumers generate a positive attitude towards the product.
This is not applicable for Nokia Nseries
Delivery
The manuals given by Nokia with any Nseries phone will help any consumer to
Installation setup the phone. Because of the user friendly OS makes it a cakewalk.

The one year warranty on all the Nseries products gives the consumers a sense of
Guarantee/Warranty security while buying the product.
Financial This is not applicable for Nokia Nseries
Arrangements
This is not applicable for Nokia Nseries
Customer Training
The prompt service of Nokia for the Nseries products helps building a positive
After Sales Service image of the brand. It will also induce loyalty of the consumers towards the
brand.
Personnel Differentiation
As the Nokia personnel are well trained, they are able to understand what a
Competence customer wants. The sales executive normally knows the local language to help
with this problem. As a result, a feeling of belongingness comes in.
Consumers appreciate courteous behaviour. Respect for elders and any guest are
Courteous our values. So if these are followed by the employee it helps the consumers to
relate at a cultural level with Nseries.
Credibility and reliability of the personnel’s word makes the consumer trust the
Credibility and brand more. This will have a huge impact on the post purchase behaviour of the
Reliability consumer. It influences the learning factor by which the consumer will come to
know that how reliable and credible the Nseries brand actually is.
Communicating in the local language and listening to the customer are really
important. This training is given to all the sales executives at Nokia. So
Communication skills
customers feel comfortable in the store and can easily convey what exactly they
are looking for.
Channel Differentiation
Nokia has a wide presence as a result the consumers find it easy to buy, easy to
Wide Presence get it repaired, easy to avail the guaranty and easy to avail after sales service.
Their attitude towards Nseries becomes positive.
There are no door to door sales. Although there is an interaction with the prospect
Direct sales
buyer in cannot be included in direct sales.
Image Differentiation
Consumers relate to the Nokia logo really well. It has almost become a logo for
Logo mobile phones in India. Any product with the Nokia logo is perceived to be a
product of high quality with a lot of reliability and durability.
Company's The company management hasn't had any impact on the consumer behaviour.
Management They keep a low profile but are very active in the background.
 The atmosphere in all the Nokia sales centers is very good. The consumers feel
nice when they walk into such showrooms. The perception that if a place is good
Atmosphere then the product they are providing is also good comes in. Because of the wide
range available in the showrooms they also learn about the various models and
their features.
Events like the IPL have given Nokia a lot of TV time. As a result consumers
have started associating Nokia with cricket. Shah Rukh Khan, the owner of the
Events
IPL team "Knight Riders" is also the brand ambassador for Airtel. Because of the
recent promotions consumers have started relating Nokia and Airtel also.
The media channels through which Nseries is advertised affects the perception
and the attitude towards the Nseries. Consumers perceive Nseries as a phone with
Media
multiple features. Because of the media channels used the consumers associate it
with sports, music and a status symbol.

Impact of Segmentation on Consumer Buying Behaviour

Effect on Consumer Buying Behaviour

Geographical Segmentation
Nokia has targeted the Indian market very aggressively which has lead to a very good
Country brand image of the Nseries. This has resulted in an increase in the consumers belief in
the product.
Region Does not comply as segmentation is not done on this basis.
Consumers have started relating Nseries to their lifestyle and personality in the tier 1 and
City the metro cities
Segmentation is being concentrated in the urban areas and consumers are getting
Rural & Urban motivated to buy Nseries because of the Aspirational group factor and the motivation of
getting a top notch communication device with all the latest technologies.

Demographic Segmentation
Directly impacts the consumers in the age group of 18 to 35 years. Nseries has started
appealing more and more to the young college going students and the young executives.
Age It also impacts consumers based on their occupations as students and service oriented
consumers are getting more inclined towards the brand.
The Gender based segmentation has impacted the perception of the female population.
Gender Nseries is not providing just unisex phones. This makes the female consumers feel
special and important.
 The diversified range of Nseries lets consumers of different income levels buy the
product. Because of the varied price range, the economic circumstances have a lesser
Income impact on the consumer behaviour as a person who doesn’t want to buy a really
expensive phone can buy a phone which is within his/her budget.

The size of the family will increase the effect of the membership group on the consumer.
It will also decide the stage in the lifecycle and the lifestyle of the consumer to a major
Family size
extent.

Psychographic Segmentation
In this fast changing world, the technological desires of consumers are really high. There
are many job profiles like that of an insurance inspector who has to carry a camera and
mobile phone for constant communication. There are many other examples like this. All
Lifestyle
of these consumers have started feeling a need for a multi featured phone like Nseries. In
the above mentioned example the insurance inspector will have to carry just a single
phone which can act as a camera, phone and can also be used for internet access.
Nseries has drawn a lot of consumers towards itself by relating different phones with
different personalities. The music edition phone is a hit among the young music lovers,
Personality at the same time N90 has the latest web browser and other features which are useful for
official purposes.
There are many competitors in the market for Nseries. All these products have similar
features; so the only way the phones are differentiated by the consumers are on the basis
Values of the psychological values and not on the basis of operational values.

Behavioural Segmentation
The offers given by Nseries during the festivals has lead the consumers believe that a
Occasion phone like Nseries is a suitable gift for such occasions. So on such occasions, consumers
buying tendencies change.
Consumers have started to relate with Nseries as a product which provides a lot of
benefits like long battery life and user friendly OS. So consumers have built a perception
Benefits that the benefits are the advanced features which has given Nseries an edge over its
competitors.
All the consumers who have a phone with lesser features realize the benefits they are
User Status missing out on by not taking a high end phone. So Nseries is becoming the second phone
consumers buy.
Although Nseries hasn't segmented on this basis, users who are intense users of phone
Usage Rates
prefer Nseries phones because of its long battery life.
Normally consumers who have used Nokia once do not like switching to some other
brand. But because of the very cheap phones being made available by Tata and Reliance
Loyalty Status many consumers switch to other brands. But when it comes to GSM phones brand
loyalty is really high for Nokia and Nseries.
Buyer Any consumer who is going to buy a mobile phone is well aware of Nseries and most of
Readiness the time considers Nseries or a Nokia product. Consumers not willing to buy a mobile
Stage phone also are aware of the brand and have the same perception about it.
 Consumers who are excited and have a positive attitude about Nseries products keep a
track of all the models coming in the market. When they do decide to buy a phone
Attitude Nseries will always be considered by them. Even the indifferent consumers consider the
Nseries feature in most of the cases.

NOKIA Nseries Market Segmented and Positioned Analyzed

Source: Compiled from http://www.braxxon.co.uk/images_market_positioning, http://www2.una.edu/
mjohnson and http://aphs.worldnomads.com/travel-competitions/1511/