A Project Report on

Group Members
Aakriti juneja (001)

Amit Sharma(013)

Ekta Chawla(052)

Gaurav Chaudhary(058)

Gaurav Sharma(059)
Flow of presentation

Reasons for chosing Nokia.

Indian handset market.
Indian telecom industry.
Indian handset market

Introduction
 Tagline

 Product life cycle

Product
Pricing
Promotion
Distribution
Reasons to choose Nokia
Nokia has established itself as a household product not only in urban
parts of India but rural as well.

 The most fascinating aspect of this brand being the accessibility and
affordability. Whether it’s a beach or a remote hill station brand “Nokia”
is available everywhere.

Others brands like Samsung and LG have started gaining immense

popularity but that they are only restricted to urban. Whereas Nokia
going rural.

 As against all the other brands which have associated themselves

to specific tags such as
Sony Ericsson seen as “camera”,
Blackberry seen as “business”
Samsung seen as “music”.
Indian Handset Market : General
Statements
 Is expected to record sales of 138.6 million in the current year

 Fierce competition from local and Chinese manufacturers in

the low cost segment

 Fast changing consumer demand and shortening product life

cycle times

 3G-enabled handsets are expected to account for 16.7 % of

total sales in 2010, up from 9.2 % in 2009.

 Rising demand for dual-sim phone

 Indian Telecom Industry
• At 110.01 million connections ' Indian Telecom Industry' is the fifth largest and
fastest growing in the world

• The availability of the 3G spectrum has given hopes of finding about 275
million Indian subscribers using 3G-enabled services , exepected to take up
the number of 3G-enabled handsets to reach near to 395 million by the end of
2013.

• Whereas the number of landlines is found gradually decreasing.

• Three types of players exists in ' Telecom Industry India ' community –

1.State owned companies like - BSNL and MTNL.

2. Private Indian owned companies like - Reliance Infocomm and Tata
Teleservices.
3. Foreign invested companies like - Hutchison-Essar, IdeaCellular,
Indian Handset Market : Actors
Nokia market leader

Samsung is a very strong actor too

Home- grown handset maker: Spice, Micromax and Karbonn =

14% of the market in India
Entry of Nokia in India
Nokia entered the Indian market in 1996.

Initially Nokia launched about 1 or 2 phones every quarter but

in the past few years because of increased efforts in it
R&D,Nokia has had at least 15 product launches every quarter.

 Nokia has managed to cater to every segment and at

accessible prices.
About the Company

Nokia is the world largest telecommunication equipments

manufacturers listed in NYSE as NOK.

Nokia Corporation is a Finland based multinational Company.

Fredrick Idestam found Nokia in 1865 and the current CEO is

Olli Pekka Kallasvuo.
Place where you can find Nokia
Tagline conveys

“This Idea of ‘Connecting People’

by Nokia provides Service

to people with the help of the Products”

Nokia wants to convey that when you buy a nokia phone,
you get access to all the services like:

• Share on Ovi
• Nokia Friend View
• Nokia Messaging
The PLC of Nokia Handsets
 Development: Nokia typically gives a seven day window to its exclusive
stores which showcase the product and create the required hype.

 Growth: Sales are high and margin contributions are quite good. The
product would probably be the category leader and demand would be
high.

 Maturity: During this stage Nokia creates a product platform depending on

the success of the product and would introduce an extension with mere
cosmetic changes but at different price points .

 Decline: Once the new introduction has increased in terms of volume and
value contribution, its predecessor would eventually be phased out.

However Nokia also prolongs a products maturity stage by introducing new

packaging, color or even enhancements and accessories.
 
Product
Nokia Segmentation of the Indian
Market
Nokia plans its products across all segments of the Indian
demographics and they launch atleast one product in each
quarter for all its segments.

 Nokia has been able cater to majority of the Indian

population.

Each quarter is prepared keeping demographical,

psychological or physiological factors.
• For example: The E series is planned for the young
executive though it has the E90 to cater to more senior
people such as CEO, Entrepreneurs, etc.

• The N series which is a multimedia segment is aimed to

capture the college going and school children.

• Nokia has makes consistent changes according to the

market demands.
Nokia Portfolio

The portfolio of Nokia phones is divided into ten series each

with distinct features.

As each series evolves additional benefits and experience are

added to the same to give it an additional look and feel.

At a glance the brand portfolio looks like the following

• Series 1 -Nokia 1xxx (basic) series
 Nokia's most affordable phones.
 Includes basic features like SMS text messages, alarm clock, reminders,
etc.

• Series 2 – 2xxx series (basic series)

 2000 series are also entry-level phones.
 Contains more advanced features than the 1000 series
 Features color screens , Bluetooth and even A-GPS, such as in the case
of the Nokia 2710.

• Series 3 – 3xxx series – Expression series

 Mid-range phones targeted towards the youth market.
 Some models targeted towards young male users, in contrast with the
more unisex business-oriented 6000 series and the more feminine
fashion-oriented 7000 series.
 
• Series 4 – 5xxx series – Active series
 Similar in features to the 3000 series,
 Features a rugged construction or contain extra features for music
playback.

• Series 5 – 6xxx series – classic business series

 Nokia's largest family of phones.
 Consists mostly of mid-range to high-end phones containing a high
amount of features.
Notable for their conservative, unisex designs, which make them popular
among business users.

•  Series 6 – 7xxx series – Fashion and experimental series

 Family of Nokia phones with two uses.

 Targeted towards fashion-conscious users, particularly towards
women.
 Considered to be a more consumer-oriented family of phones when
contrasted to the business-oriented 6000 series.
• Series 7 – Modern series

 N series
Nokia's most advanced smartphone series.
For people who wish to have advanced multimedia and connectivity
features and as many other features as possible into one device.

 E series
Enterprise-class series and includes business-optimized smart phones.

 C series
 Affordable series optimized for social networking and sharing.
C1-00 and C2-00 are Dual-SIM phones, but for the Nokia C1-00, both SIM
cards cannot be utilized at the same time.

 
 X series
 Targets a young audience with a focus on music and entertainment.

Nokia product portfolio.xls

Nokia Product Portfolio-Introduction

Plans for each quarter in advance

R&D is done in Mumbai and Bangalore

Each product caters to a functional need

Nokia categorization criteria

 Value
 Multimedia
 Lifestyle
 Business
Nokia Product Portfolio - Description
 Nokia 1650: basic color, FM Radio - Value category

 Nokia E51: business function (e-mail, doc editor, 2MP Camera)

- Business category.

 Nokia N-gage: gaming phone, a rage in amongst the youth

 ALL the phones are designed keeping the behaviouristic

segmentation in mind with the price people are wiling to pay.
Range of Products
The The Explore The Live The Achieve
Connect Range Range Range
Range
Activities Lower Good purchasing Follow style Power centric
income power
families

Interests Don’t spend Young, want to More Like to own the

money on have features confortable best gadgets
frivolous choice with the
purposes unconventional

Opinion Strong Frequent changers Want to have Like being

followers of of phones their own conncted with
culture signature style the world
Nokia Range of Products - Analysis
 Nokia has traded up the models from entry level launches of
less than 2k to increasingly at 2-3k

 Nokia has changed its portfolio from simple multimedia to

smarphones

 Defensive position for dual sim phones

 Nokia should prune its line and remove some phones

• Launched a Rs 6000 handset loaded with full qwerty keypad,
mobile e-mail service and access to social networking to
counter competition challenge BB in the smartphone
segment

• Using prices quite aggressively to counter and regain the lost

market shares

• Nokia PLC: prolongs a product maturity stage by introducing

new packaging, color etc… s travel back
Pruning its Product Potfolio
BCG Matrix

• Dogs products have to be pruned of the portfolio and the

question mark have to be discussed.
• The Cash cows are not sustainable but supply cash for
innovation
 Pricing
Main criteria for buying any
consumer electronic device
in India.

Today the principle is low

prices for perceived high-end
features.

Nokia’s low cost models

sparse on features.

Nokia caters to all segments

of market
• Nokia 1100 for lower segment of the market.

• Nokia 7600 & 3600 series as lifestyle phones

• Nokia has introduced high end sets like N900, N97 & many
others to protect its market share in the high end business &
smart phones.

• It has introduced Express music handsets in every price

range category for those people who love music.

• Nokia has introduced low priced touch screen smart phones

like N5233 , N5230 etc. to counter Samsung.
Pricing strategies that Nokia follow
1. Market skimming
Nokia 8250

2. Penetration Pricing
Nokia 1100

3. Value Pricing
Nokia E 63 Mobile
 4. Product form pricing

5. Promotional Pricing-
 
1. Special Event Pricing

2. Low-Interest financing
3. Psychological Discounting
Blackberry v/s Nokia pricing strategies
• Nokia has traded up the • Both Explore and Live have
models from entry level fully loaded handsets in as
launches of less than 2k to minimum as in a price
increasingly at 2-3k. bracket of 4-6k

• Blackberry has made changes to • The difference in the

its existing model to reposition. extension strategies for
Nokia and Blackberry.
• Nokia has traded up the models from entry level launches of less than 2k to
increasingly at 2-3k

• Blackberry has also made changes in its product line by introducing the 8520
Gemini Curve which has helped reposition Blackberry from being an enterprise
to multimedia solution.

• The Gemini offered at about 12k in the market has helped Blackberry to
compete with the entire multimedia array of Nokia and other handset
manufacturers.

• Nokia has increased the ASP of its existing product

portfolio since the volumes were dwindling Nokia
has taken a shift
to value sales

• Nokia has clearly been changing its product portfolio

from simple multimedia to smart phones.
• Blackberry has also introduced some of the
recent launches in less than Rs 20k which
was quite uncommon for Blackberry.

• Introduced new design options such as the

flip, slide and touch screen and all these
point out only one thing, which Blackberry is
evolving only in its software but also design
and utility.

• Blackberry launches conservatively and this

helps the company focus more on each
launch and also prevents internal
cannibalization.

• Blackberry also positions its product such

that it can be compared across multiple
Nokia products. Blackberry Bold was
introduced and it gave competition Nokia
• Nokia has launched both defensively as well as offensively to undermine
the products being made available by other brands and it is using its
price quite aggressively as a strategy to counter and regain its lost
market share.

• Nokia has strong product development resources and also has enough
resources to operate in multiple segments simultaneously.

• The handsets market has many players and has shifted to being a loosely
segmented market

• Pricing strategy of local & Chinese manufacturers.

Promotion
 Promotion Mix

 Advertising.

 Discounts.

 Public Relation.

 Direct Marketing.
The communication strategy of
Nokia is to focus mainly on print
and TV advertisements
highlighting the “emotional”
aspect to touch the lives of all.
Nokia uses strongly integrated tools.

Nokia has a brand personality which it attracts customers who

want to project the similar personality

Creative concept:Nokia since years have kept the same tag

line
“CONNECTING PEOPLE”.

Nokia is having a big target audience and so have had many

different kinds of advertisement but never deviated from its
main objective.
 Priyanka Chopra ad in which the ad refers to easiness with which
a person can connect with friends.
Nokia shahrukh Ad
• Functional and
psychological benefits
Communication is the
functional benefit of the ad.
Shahrukh Khan is having a
huge fan following in world
and people feel satisfied and
elevated after buying a
product that is associated with
their favourite celebrity.
• Description
The advertisement associates Nokia with
Sharukh Khan and different periods in his
life are shown to depict that he is a loyal and
old consumer of Nokia and the message
communicated was simply that the brand
remained in the different successes of his
life
• This advertisement
was launched during
the Diwali with the
tagline of
“Khareedo now ya
Pachhtaao”
programmed
keeping in mind the
behaviour of the
Indian consumer to
buy during Diwali.
Whatever the occasion maybe
Nokia is “ Har Khushi Me Shamil”

Nokia has been able to realise

that it needs to overcome the
cross cultural barriers and it truly
has through its product design as
well as its promotion strategies.

India is a family oriented culture.

Nokia has used an element of
relationships in all its
commercials.
Postioning nokia for
Lower middle class
people

Self Explainatory from

picture
Advertising on virtual forums.
E.g. Facebook
 Nokia –E90

 A young executive or any other corporate would prefer to buy

a Nokia E90 simply because it reflects on his lifestyle and
aspirations associate him with certain traits which are inherent
with him.
Nokia 1650/2626 Ad

• Psychological
• Functional benefits benefits
Digital FM radio Style
Entry level Colour phone Self fulfilment
Games Brand name ,
image and repute
 Place
.
 Distribution
 Nokia enjoys approximately 36 % market share and has over 200000
outlets with 700 support centers across 400 towns and cities to ensure that
their handsets are available to their customers.

 In rural India it enjoys 45% market share considering its high image of
quality and after sales service.

 The most popular phone of Nokia in the rural market is the Nokia 1100
which has a torch, alarm and radio facility.
 In April 2010, Nokia is believed to have crossed the 350 million mark of
handset production.

 There are three main distribution channels used by Nokia are as follows
Using the medium of distributor to superstockist to
retailer who sells it to the final consumer
Via Nokia’s own stores called the Nokia priority stores.
Via organized retail channels like Mobilestore to
name a few.
Nokia Priority Centre at GIP Sector 18
 Consumer Survey
 On the basis of consumer preference, majority of the peoples are
preferred NOKIA.

 On the basis of occupation, the students are highly sensitive about

using cell phone
 Social class impact on the evaluations of the attributes as people
belonging to higher income group seem to be more technology savy
and mobile sensitive .
 New technical properties increase consumer willingness to acquire new
phone models.
 The major option consumer consider when buying a mobile phone are
desired feature quality and brand
.
 When choosing a brand a major factor taken into account is the trust .
 When choosing between different mobile phone models, especially
lower income consumers have a price limit that restricts the choice to
fewer models.
 In a price range ,Also, when choosing between different mobile phone
models, consumers value familiar brands
 When choosing a brand a major factor taken into account is the trust of
the brand
 Conclusion
• Nokia losing market share in high-end and high-margin smart phones to
rivals.

• Nokia has recognized this and has hence launched most of its products in
the smart phone category.

The above trend-line does show the effect of the revised product platform
on its sales.
• But with the coming of Chinese companies and local Indian companies
Nokia has a huge threat because these companies offer much more than
Nokia phones in terms of the functionality within this range.

• The lifecycle of Nokia phones is short than that it keeps coming out with
newer models in short spans and keeps on discontinuing the older models
so that the newer get acceptance.

• The transition from one phone to the other becomes smooth and doesn’t
let the share of one product to be eaten by the other.

• Nokia’s late reaction to rapidly increasing market share market of dual sim
mobile phones.
 Recommandations for Nokia
• Should work on a localized launch such as that of nokia 1100 success
( made for india )

• High price range phones are facing serious technical problem like hanging, it
force the selling of that product to lower than expectation.

• As urban market is penetrated completely , more focus should be given to

rural market to regain the earlier status of company with 2/3rd of market in
hand.

• Overview of prices, it should be lower in comparison to other companies.

More focus should be given on value for money.

• The ultimate test for nokia will be if it can replicate the tenacity, speed and
consumer insight that won it leadership status in the handset space.