1

Chapter 1 Introduction
(1-9)

History of Cellular Telephony in India Cellular Telephony

The technology that gives a person the power to communicate anytime, anywhere - has spawned an entire industry in mobile telecommunication. Mobile telephones have become an integral part of the growth, success and efficiency of any business / economy. The most prevalent wireless standard in the world today, is GSM. The GSM Association (Global System for Mobile Communications) was instituted in 1987 to promote and expedite the adoption, development and deployment and evolution of the GSM standard for digital wireless communications. The GSM Association was formed as a result of a European Community agreement on the need to adopt common standards suitable for cross border European mobile communications. Starting off primarily as a European standard, the Group Special Mobile as it was then called, soon came to represent the Global System for Mobile Communications as it achieved the status of a worldwide standard. GSM is today, the world's leading digital standard accounting for 68.5% of the global digital wireless market. The Indian Government when considering the introduction of cellular services into the country, made a landmark decision to introduce the GSM standard, leapfrogging obsolescent technologies/ standards. Although cellular licenses were made technology neutral in September 2005, all the private operators are presently offering only GSM based mobile services. The new licensees for the 4thcellular licenses that were awarded in July 2001 too, have opted for GSM technology to offer their mobile services.

Cellular Industry in India

The Government of India recognizes that the provision of a world-class telecommunications infrastructure and information is the key to rapid economic and social development of the country. It is critical not only for the development of the Information Technology industry, but also has widespread ramifications on the entire economy of the country. It is also anticipated that going forward, a major part of the GDP of the country would be contributed by this sector. Accordingly, it is of vital importance to the country that there be a comprehensive and forward looking telecommunications policy which creates an enabling framework for development of this industry.

Industry Profile
Growth in India's mobile sector, from a humble start in the mid-1990s, has really picked up pace in recent years, aided by higher subscriber volumes, lower tariffs and falling handset prices. Home to a clutch of global operators working with local companies, India had almost 350 million mobile subscribers (including GSM & CDMA) in early 2008.

The market was growing at an annual rate of around 60% and while the ARPU has been steadily declining as competing operators offer cheaper tariffs the usage levels have been high, thus slowing the decline of ARPU. By 2008 there was a major push to take mobile services into the poorer and rural areas of the country. Driven by cheap call rates, low handset prices and rising incomes among the estimated 300 million of the population that are described as the country's middle class, the boom in India's mobile market was continuing into 2008. Also operators were increasingly eyeing the poorer rural areas a potential markets for their services. India has continued to attract a lot of attention in the global telecom sector, especially from foreign players interested in entering the Indian market.

India's mobile market finished in the 2007 year strongly with over 233 million subscribers in the sector according to the telecom regulator's figures which cover GSM, CDMA and Wireless Local Loop (WLL). The Telecom Regulatory Authority (TRAI) announced that the country had added a record 8.32 million subscribers during November 2007, up from 8.05 million one month previously. This was followed by 8.16 million in December.

India's mobile operators have been attracting new customers with call rates ass low as US$0.01 a minute and by offering cheap handsets. While offering some of the lowest tariffs in the world, the market also had the highest usage in the world with the average customer using 500 minutes a month. In the meantime, the fixed line segment experienced falling numbers, with the overall base dropping to 39.3 million by the year end.

There was much evidence by early 2008 of the continuing global interest in the Indian telecom market. With the market showing some of the most consistent growth in the world throughout

4 2007, it has been the focus of much attention by both foreign and domestic players. Vodafone arrived on the scene with a considerable impact, having successfully acquired Hutchison Telecom's 67% stake in Hutchison Essar for US$11.1 billion -- one of the largest ever single foreign investments in India. UK incumbent BT also boosted its presence in India in 2007, expanding the footprint of its managed network services and IT operations in the country through its acquisition of i2i Enterprise.

By the end of 2004 and ten years after India had launched mobile services, India had 47.4 million mobile subscribers, up from 28 million a year earlier, after the national subscriber base had grown by 168per cent in 2004. A total of 19.2 million mobile subscribers were added in 2004, compared with 17.5 million in 2003. GSM operators added more than 1.5 million subscribers in 2004 to end up with 37.4 million at the end of the year. CDMA operators had 9.9 million at end-2004, up from 6.2 million at the end of 2003.

The Telecom Regulatory Authority (TRAI) announced in April 2005 that the fiscal year ending March 2005 had seen what it described as 'unprecedented growth' in telecoms service in India, with mobiles leading the way with 55 per cent growth rate. The main driver for the continuing high growth since 1996 had been the falling tariffs in a sector where the mobile operators have been prepared to lose money to keep or win market share and have consequently been fighting a fierce price war. Facing the prospect of subscriber growth reaching saturation point in the larger cities, the country's mobile operators were increasingly eyeing the vast rural market in the next step in boosting mobile phone growth.

In March 2005 it was reported that the average per minute charge for mobile services in India declined by 58 per cent to 1.20 rupee (US$0.27) during the quarter ending December 2005, compared with 1.90 Rupee (US$0.043 during the previous quarter.

As an indication of how the Indian mobile market was expanding, In May 2005 LG Electronics India announced plans to build a GSM handset manufacturing plant in Ranjangaon near Pune as part of plans to produce 20 million GSM handsets by2010. The company said the facility was part of LG's plans to make India its global export hub. Sony-Ericsson also said it saw significant

5 new growth areas in emerging markets like India which were helping drive sales of mobile phones.

There were 149.5 million mobile subscribers in India by December 2006, representing a penetration of 13.6 per cent. Close to 74 million subscribers were added in 2006 and according to TRAI, making it one of the most attractive markets in the world for mobile operators and wireless equipment vendors alike. The Cellular Operators Association of India (COAI) reported that the country's nine GSM operators added 47 million subscribers in 2006 whilst The Association of Unified Telecom Service Providers (AUSPI) reported the four CDMA-based operators added 25 million during 2006.

India's mobile operators committed to investments of about US$20 billion over a two year period to 2009 to bring over 80 per cent of the population under mobile coverage. The planned investment, announced in April 2007, was 50 per cent higher than what had been invested in the 12 year period to 2006. In anticipation of the huge potential in both mobile penetration and the coverage area of the networks, operators were planning a total capital expenditure of US$10 billion each of fiscal 2008 and 2009. It was generally agreed that significant growth opportunities existed in the rural areas, where penetration remained around 1 per cent while worthwhile growth prospects also remained in the urban areas where penetration was running at 40 per cent at the time. Furthermore, it was expected that mobile revenues would be substantial enough to support the huge CAPEX committed to the sector.

The mobile market in India continued its strong growth through 2007 and looked to be carrying a 50 per cent annual growth rate into 2008. While the market was initially totally a GSM domain, CDMA technology was introduced as a Wireless Local Loop (WLL) service, which after a long battle with the regulator was eventually accepted as a legal mobile service. The subscriber base has developed into a fairly stable mix of GSM subscribers, (74 per cent market share at end2007) and CDMA subscribers (24 percent). The regulator initially referred to these CDMA service as WLL (Mobile), or WLL (M). These CDMA services were differentiated from WLL (Fixed), or WLL (F) services, which at the time were being included as part of the fixed-line

6 segment of the market. In 2006, TRAI started putting the emphasis on the 'wireless' in WLL in WLL (F) and grouped all WLL services with 'mobile' services.

Although well behind China a terms of the total size of its mobile subscriber base, a comparison of net growth by end 2006 was interesting. Chain added a total of just fewer than 6.1 million subscribers in December 2006, bringing the total additions for the December quarter to just less than 18 million; India, by contrast, added 6.25 million in December to being the total number of additions to 19.5 million for the quarter.

Key players of mobile phones L.G. Nokia Motorola Samsung Mobile Tata Indicom Reliance Infocomm. Sony Ericsson Virgin mobile Sony

OBJECTIVES OF THE STUDY

The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Though each research study has its own specific purpose but the research objectives can be listed into a number of broad categories, as following:

To understand consumer preferences and also determine the level of satisfaction of the customers of NOKIA. To study the overall scenario currently prevailing in the market. To understand the product and services of NOKIA. To come out with conclusion and suggestions based on the analysis and interpretation of data. To study and analyze various factors influence the consumers to purchase the Nokia mobile. To analyze the factors influencing perception and buying decision of consumers.

SCOPE OF THE STUDY

The study attempts to identify the reach of Nokia mobile which would help the company in formulating the suitable strategies. The study also identifies the attitudes and preferences of the consumers.

Research Methodology
While making a study we very often look for what type of research methodology is to be used in this type of study. For implementation of a proper research methodology we have to first understand the meaning of research.

Research is a process with the help of which new concepts arises. It is the increase in the actual knowledge stock. It can be called as movement from known to unknown and vice versa. It is also a continuous process. It is a scientific as well as systematic process, which includes defining and redefining the problem to develop hypothesis, to collect and define the information/data, to analysis the information and bring out the mother of Discovery. An individual makes the effort in research and society or public takes its benefits because the results are usually generalized.

Data collection
The word data means any raw information, which is either quantitative or qualitative in nature, which is of practical or theoretical use. The task of data collection begins after a research problem has been defined and research design chalked out. While deciding about the method of data collection, the researcher should keep in mind that there are two types of data primary and secondary.

1. Primary data Primary data is the data which is collected by the researcher directly from his own observations and experiences. For example, if the researcher conducts a survey for the collected of data then it is known as primary data.

Questionnaire method For the collection of primary data I used questionnaire method. A formal list of questions, which are to be asked, is prepared in a questionnaire and questions are asked on those bases.

Sample Size It gives the target population that will be sampled. This research was carried in New Delhi & NCR. There were 25 respondents.

Data Completion & Analysis After the data had been collected, it was tabulated and findings of the project were presented followed by analysis and interpretation to reach certain conclusions.

2. Secondary data Secondary data is the data that have been already collected by and readily available from other sources. Such data are cheaper and more quickly obtainable than the primary data and also may be available when primary data cannot be obtained at all.

The data collected for this project has been taken from the secondary source. Sources of secondary data are: Internet Magazines Publications Newspapers Broachers

LIMITATIONS
Research work was carried out in Delhi & NCR only. The findings may not be applicable to the other parts of the country because of social and cultural differences. Shortage of time. The views of the people are biased therefore it doesnt reflect true picture. Some of the respondents were not cooperative. The sample size is confined to 25. The consumers attitude may change in future due to change in their

standard of living. The reliability and scope of survey greatly relies on the cooperation of the respondents.

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Chapter 2 Company Profile

(10-45)

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Story of Nokia
Follow the story of Nokia - a century and a half of innovation, from a riverside paper mill in southwestern Finland to a global telecommunications leader. Nokias first century: 1865-1967

From roots in paper, rubber, and cables, in just over 100 years Nokia becomes a powerful industrial conglomerate...

The move to mobile: 1968-1991

The newly formed Nokia Corporation is ideally positioned for a pioneering role in the early evolution of mobile communications...

Mobile revolution: 1992-1999

As mobile phone use booms, Nokia makes the sector its core business. By the turn of the century, the company is the world leader...

12 Nokia now: 2000-today

Nokia sells its billionth mobile phone as the third generation of mobile technology emerges... Nokias first century: 1865-1967 The first Nokia century began with Fredrik Idestams paper mill on the banks of the Nokianvirta River. Between 1865 and 1967, the company would become a major industrial force; but it took a merger with a cable company and a rubber firm to set the new Nokia Corporation on the path to electronics...

1865: The birth of Nokia Fredrik Idestam establishes a paper mill at the Tammerkoski Rapids in south-western Finland, where the Nokia story begins.

1898: Finnish Rubber Works founded Eduard Poln founds Finnish Rubber Works, which will later become Nokia's rubber business

13

1912: Finnish Cable Works founded Arvid Wickstrm starts Finnish Cable Works, the foundation of Nokia's cable and electronics businesses.

1937: Verner Weckman, industry heavyweight Former Olympic wrestler Verner Weckman becomes President of Finnish Cable Works.

1960: First electronics department Cable Works establishes its first electronics department, selling and operating computers.

1962: First in-house electrical device The Cable Works electronics department produces its first in-house electrical device - a pulse analyzer for nuclear power plants.

1967: The merger Nokia Ab, Finnish Rubber Works and Finnish Cable works formally merge to create Nokia Corporation.

14 How it all began Nokia started by making paper the original communications technology. The history of Nokia goes back to 1865. That was when Fredrik Idestam built a wood pulp mill on the banks of the Tammerkoski rapids, in southern Finland. A few years later, he built a second mill by the Nokianvirta River the place that gave Nokia its name. Who was Fredrik Idestam? A mining engineer by trade, Idestam brought a new, cheaper paper manufacturing process to Finland from Germany. It was a great success. Idestams invention won a bronze medal at the Paris World Exposition in 1867, and he is considered to be the father of Finlands paper industry. Idestam named his company Nokia Ab in 1871Nokia Ab added electricity generation to its business activities in 1902 Did you know? The Nokian virta River is named after a dark, furry animal that was locally known as the Nokia a type of marten.

Verner Wecknan, Industry Heavyweight Company president was Finlands first Olympic champion. In 1937, Verner Weckman became President of one of Nokia Corporations founding companies, Finnish Cable Works, after 16 years as its Technical Director. Weckman had worked as a mining engineer in Russia from 1909 to 1921.His knowledge of the Russian language and culture, as well as his industry connections, proved crucial when Finnish Cable Works started exporting products to the Soviet Union after the Second World War. Award-winning athlete Weckman was also a world-class light-heavyweight wrestler and Finlands first Olympic Gold medalist. He won the wrestling World Championship in 1905. He won Olympic gold medals in wrestling at the 1906 Games in Athens and the 1908 games in London. Did you know? Finish Cable Works supplied cables to the Soviet Union as part of Finlands war reparations after WWII. This gave the company a good foothold for later trade.

15

Cable goes Electric TVs and computers the first electronics boom Finnish Cable Works, already working closely with Nokia Ab and Finnish Rubber Works, branched out into electronics in the 1960s.In 1962, it made its first electronic device in-house: a pulse analyzer designed for use in nuclear power plants. The companys involvement with telecommunications systems also began in the 60s, and it 1963 it started to develop radio telephones for the army and the emergency services. The electronics department went on to sell mainframe computers and run a computer center to cater for the companys IT needs. Nokia would later make: TVs by 1987 Nokia would be the third largest TV manufacturer in Europe Computers the Mikro Mikko became the best known computer brand in Finland Radio telephones Data transfer equipment Radio links and analyzers Digital telephone exchanges Changing times Nokia would eventually leave consumer electronics behind in the 1990s. But the telecommunications expertise it developed from the 1960s onwards would become the core of its future work.

Three companies merge to form Nokia Corporation Merger paves the way for Nokias future as a global corporation The merger of three companies created Nokia Corporation. These were: Nokia Ab Finnish Cable Works Finnish Rubber Works

16

The companies, which had been jointly owned since 1922, officially merged in 1967. At the time, Nokia Ab was the smallest of the three. The new Nokia Corporation had five businesses: Rubber Cable Forestry Electronics Power generation Each business had its own director who reported to the first Nokia Corporation President, Bjrn Westerlund. As the president of Finnish Cable Works, he had been responsible for setting up the companys first electronics department, sowing the seeds of Nokias future in

telecommunications.

The move to mobile: 1968-1991

The newly formed Nokia Corporation was ideally positioned for a pioneering role in the early evolution of mobile communications. As European telecommunications markets were deregulated and mobile networks became global, Nokia led the way with some iconic products...

1979: Mobira Oy, early phone maker radio telephone company Mobira Oy begins life as a joint venture between Nokia and leading Finnish television maker Salora.

1981: The mobile era begins Nordic Mobile Telephone (NMT), the first international mobile phone network, is built.

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1982: Nokia makes its first digital telephone switch Nokia DX200, the companys first digital telephone switch, goes into operation.

1984: Mobira Talkman launched Nokia launches the Mobira Talkman portable phone.

1987: Mobira Cityman birth of a classic. Nokia launches the Mobira Cityman, the first handheld NMT phone.

1991: GSM a new mobile standard opens up. Nokia equipment is used to make the worlds first GSM call.

The mobile era begins

Nordic network pioneers international mobile calling A new era for mobile phones began in 1981, with the launch of the Nordic Mobile Telephone (NMT) service. Initially spanning several Nordic countries, the service was the worlds first international cellular network. It was also the first to allow international roaming, and caught on fast both inside and outside Europe. Mobile explosion with the introduction of the NMT standard, the mobile phone industry began to expand rapidly.

18 Nokia soon introduced the first car phones to the network. The Mobira 450 car phone came in 1982, followed by the portable in 1986. By this time the company was also providing base stations and switches for NMT network operators. Did you know? As Nokias telecommunications business took off, its cable and rubber businesses were still going strong. One of the great successes of the early 1970s was the Kontio a rubber boot that was available in different colors and proved a big hit with all age groups.

Mobira Cityman: birth of a classic

Mobile phones go handheld in 1987; the original mobile phones were heavy, bulky and usually permanently installed in cars. But 1987 saw a breakthrough: Nokia launched the Mobira Cityman, the first handheld mobile phone for NMT networks and a model that was to become a classic. Nokias mobile phones got a big publicity boost in 1987, when Soviet leader Mikhail Gorbachev was pictured using a Cityman to make a call from Helsinki to his communications minister in Moscow. This led to the phones affectionate nickname of the "Gorba". The Mobira Cityman 900 weighed 800 grams and had a price tag of 24,000 Finnish Marks (approximately EUR 4,560

GSM: a new mobile future opens up

Nokia is a prime mover in digital standards On July 1, 1991, Finnish Prime Minister Harri Holkeri made the worlds first GSM call, using Nokia equipment. It was an appropriate choice. From the start, Nokia was one of the key developers of GSM technology. Its expertise in the new standard, coupled with the deregulation of European telecommunications markets in the 1980s and 1990s, was to be the cornerstone of its international success.

19 What is GSM? The Global System for Mobile communications (GSM) was adopted in 1987 as the European standard for digital mobile technology. This second generation mobile technology could carry data as well as voice traffic. GSMs high-quality voice calls, easy international roaming and support for new services like text messaging (SMS) laid the foundations for a worldwide boom in mobile phone use. Nokia was in the vanguard of GSMs development, delivering its first GSM network to the Finnish company Radiolinja in 1989. Nokia launched its first digital handheld GSM phone; the Nokia 1011, in 1992.By the end of the 1990s, Nokia had supplied GSM systems to more than 90 operators all over the world. Did you know? Nokia was the first manufacturer to make a series of handheld portable phones for all major digital standards, including TDMA, PCN and Japan Digital, as well as GSM.

Mobile revolution: 1992-1999

In 1992, Nokia decided to focus on its telecommunications business. This was probably the most important strategic decision in its history. As adoption of the GSM standard grew, new CEO Jorma Ollila put Nokia at the head of the mobile telephone industrys global boom and made it the world leader before the end of the decade...

1992: Jorma Ollila becomes President and CEO Jorma Ollila becomes President and CEO of Nokia, focusing the company on telecommunications.

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1992: Nokias first GSM handset Nokia launches its first GSM handset, the Nokia 1011.

1994: Nokia Tune is launched Nokia launches the 2100, the first phone to feature the Nokia Tune.

1994: Worlds first satellite call The worlds first satellite call is made, using a Nokia GSM handset.

1997: Snake a classic mobile game The Nokia 6110 is the first phone to feature Nokias Snake game.

1998: Nokia leads the world Nokia becomes the world leader in mobile phones.

1999: The Internet goes mobile Nokia launches the world's first WAP handset, the Nokia 7110.

21 Jorma Ollila, mobile visionary

When Jorma Ollila became President and CEO of Nokia in 1992, the company made a crucial strategic decision: to focus on telecommunications and move out of its other businesses. During the 1990s, rubber, cable and consumer electronics divisions were gradually sold as the company moved to concentrate on communications. Nokias core business was now: Manufacturing mobile phones and Manufacturing telecommunications systems

The strategy was to prove a big success, as Jorma Ollilas long-term vision propelled Nokia onto the world stage Nokias signature sound

Nokia ringtone has classical roots. The Nokia Tune is probably one of the most frequently played pieces of music in the world. The company introduced it as a ringtone in 1994 with the Nokia 2100 series, which went on to sell 20 million phones worldwide. Nokias target had been 400,000. The tune comes from a classical guitar work called Gran Vals, composed by Francisco Tarrega in the 19th century. Ringtones have come a long way since 1994, and new phones offer dozens of choices in a variety of formats. With the right phone, you can even create your own.

Snake is born: a mobile gaming classic

In 1997, everybody knew their Snake high score. The addictive game was launched on the Nokia 6110 and is rightly considered a classic. Snake and its successors are now available on an estimated 350 million mobile phones. A new version of the game was created for the N-Gage platform in 2005. You can download it for free and share it over your phones Bluetooth wireless connection.

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Leading the world

Nokia becomes the worlds biggest mobile phone manufacturer by 1998, Nokias focus on telecommunications and its early investment in GSM technologies had made the company the world leader in mobile phones. For most of its history the company had exported to Europe, other Nordic countries and the Soviet Union. As late as 1991, more than a quarter of its turnover still came from sales in Finland. But after the strategic change of 1992, Nokia saw a huge increase in sales to North America, South America and Asia. The 1990s also saw unparalleled growth in global sales. Between 1996 and 2001, Nokias turnover increased almost fivefold from EUR 6.5 billion to EUR 31 billion.

Nokia now: 2000-today Nokias story continues with 3G, mobile multiplayer gaming, multimedia devices and a look to the future...

2002: First 3G phones Nokia launches its first 3G phone, the Nokia 6650.

2003: Nokia launches the N-Gage Mobile gaming goes multiplayer with the N-Gage.

2005: The Nokia N-series is born Nokia introduces the next generation of multimedia devices, the Nokia N-series.

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2005: The billionth Nokia phone is sold Nokia sells its billionth phone a Nokia 1100 in Nigeria. Global mobile phone subscriptions pass 2 billion.

2006: A new President and CEO Nokia today Olli-Pekka Kallasvuo becomes Nokias President and CEO; Jorma Ollila becomes Chairman of Nokias board. Nokia and Siemens announce plans for Nokia Siemens Networks.

2007 Nokia recognized as 5th most valued brand in the world. Nokia Siemens Networks commences operations. Nokia launches Ovi, its new internet services brand.

2008 Nokia's three mobile device business groups and the supporting horizontal groups are replaced by an integrated business segment, Devices & Services.

2009 On September 2, 2009, Nokia launched two new music and social networking phones, the X6 and X3. On September 10, 2009, Nokia unveiled a new handset 7705 Twist, a phone with a sports square shape that swivels open to reveal a full QWERTY keypad. The new mobile, which will be available exclusively through Verizon Wireless, features a 3 megapixel camera, web browsing, voice commands and weighs around 3.44 ounces.

24 3G: faster connections, more applications

Nokia launches mobiles for a new generation. The launch of 3G ("third generation") technology meant mobiles would never be the same again. Nokia launched its first 3G phone, the Nokia 6650, in 2002. A vintage year for innovation, 2002 also saw the launch of Nokias first phone with a built-in camera, the Nokia 7650, and its first video capture phone, the Nokia 3650. With 3G, mobiles can do much more than just make calls. 3G means you can use your phone to: Download music Make video calls Watch TV on the move Browse the web

The Nokia N-series: a new generation

A new generation of multimedia devices was born in 2005 with the launch of the Nokia N-series. The easy-to-use devices combine state-of-the-art technology with stylish design, creating complete entertainment and communication packages. Whether its taking your music collection mobile, shooting and editing feature-length video or watching TV

Nokia today Today, Nokia is still the worlds number one manufacturer of mobile phones, and one of the leading makers of mobile networks. In 2006, Olli-Pekka Kallasvuo, formerly Nokias Chief Financial Officer, took over as CEO from Jorma Ollila, who became chairman of Nokias Board of Directors. The next step in Nokias continuing evolution is already under way. In June 2006, Nokia and Siemens announced plans to merge Nokias networks business and the carrier-related operations of Siemens into a new company, to be called Nokia Siemens Networks.

25 As mobile usage grows in the worlds emerging markets, Nokia will continue to develop affordable mobile devices that can contribute to increased economic growth and quality of life. At the same time, mobile communications is converging with computing, digital imaging and the internet, making it possible for people to use handheld devices for filming video, listening to music, playing games, surfing the web and more. Nokia is shaping this converging industry, pushing it forward with cutting-edge products and the development of open standards. Nokias success story is built on constant innovation. Our very human technology is all about enhancing communication and exploring new ways to exchange information. Thats why Nokia will never stop finding new ways of connecting people.

Structure of Nokia

The Devices unit is responsible for developing and managing our mobile device port-folio, including the sourcing of components. Nokia is increasing its offering of consumer Internet services, in five areasmusic, maps, media, messaging and gamesand working to deliver those services in an easily accessible manner to consumers. The Services unit is responsible for developing this part of our business. The Markets unit is responsible for the management of our supply chains, sales channels, brand and marketing activities. The three units receive operational support from our Corporate Development Office, which is also responsible for exploring corporate strategic and future growth opportunities. Nokia Siemens Networks provides wireless and fixed network infrastructure, communications

26 and networks service platforms, as well as professional services to operators and service providers. NAVTEQ is a leading provider of comprehensive digital map data for automotive navigation systems, mobile navigation devices, Internet-based mapping applications, and government and business solutions. NAVTEQs map data will be an important part of the Nokia Maps service that brings downloadable maps, voice-guided navigation and other context-aware web services to peoples pockets.

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Production Units

Networks technology Mobile devices and technology

China Finland Germany India

Brazil China Finland Great Britain Hungary India Mexico Romania South Korea

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Joint ventures
Nokia has entered into several joint ventures over time, particularly in the areas of manufacturing and research and development. Regional joint ventures have proven to be an effective way to combine Nokia's global technology leadership with strong local partners to accomplish faster and higher market penetration in new and emerging markets. Meridea Financial Software Oy, Finland Established 2001 New company founded by 3i, Accenture, Nokia and Sampo for producing and marketing of software for mobile and online financial services

Nokia (Suzhou) Telecommunications Co., Ltd., China Established 2001 Established in 1998 as solely-owned foreign company, became Joint Venture in 2001 Production of GSM base station and cellular transmission product Partner Shanghai Alliance Investment Ltd.

Hangzhou R&D center, China Established 2001 MoU between Nokia Networks and the Zhejiang Provincial Government of China signed on November 22, 2001 Software development, platform technology development related to Nokia's 3G networks Start of operations at the beginning of 2002 To start cooperation with a local partner in 2003

Nice-business Solutions Finland Oy, Finland Established 2000 Joint venture between ICL and Nokia focusing on developing solutions and services for Nokia's E-business and customer relationship management (CRM) needs.

Nokia Neu Comm. Tech Company Ltd., China

29 Established 2000 Software products research and development Partner NEU-ALPINE Software Holding Co. Ltd

Nokia Citic Digital Technology Co. (Beijing) Ltd., China Established 1999 Development, manufacturing and marketing of digital multimedia terminals Partners CITIC Technology Co. Ltd and the Academy of Broadcasting Science

Symbian Limited, United Kingdom Established 1998 Symbian supplies an advanced, open, standard operating system for mobile phones. Symbian OS is used in the Nokia 9200 Communicators, the Nokia 7650 and Nokia 3650 as well as in the recently announced Nokia N-Gage. Symbian OS is used in the S60 platform. The shareholders are Nokia, Psion, Motorola, Samsung, Siemens, Sony Ericsson, Ericsson and Panasonic. ChongQing Nokia Telecommunications Co. Ltd, China Established 1998 Provision of a full range of services, manufacture and supply of products for fixed networks Partners Chongqing Telecommunications Bureau, ChongQing PTAC

Fujian Nokia Mobile Telecommunications Ltd., China Established 1997 Main activities in the field of GSM 900/1800 technical services, primarily network planning and optimization Partner Fujian PTA

Nemo Technologies Ltd, Finland Established 1996 Development and production of cellular radio network measurement and optimization tools

30 Partner Elektrobit, Finland

Dongguan Nokia Mobile Phones Co., Ltd, China Established 1995 Production of mobile phones and accessories Partner Don guan Nan Xin Industrial Development Co., Ltd.

Beijing Capital Nokia Mobile Telecommunications Co., Ltd., China Established 1995 Production of GSM digital cellular systems and mobile phones Partner Beijing Capitel Co., Ltd.

Beijing Nokia Hangxing Telecommunications Systems Co., Ltd., China Established 1995 Production of mobile digital switches, base station controllers and fixed digital switches Partner Beijing Hangxing Machinery Manufacturing Corporation

Sapura-Nokia Telecommunications Sdn Bhd, Malaysia Established 1992 Implementation of a DX 200 digital switching system project Partner Sapura Holdings

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Financial

Key Data

March 2009

2009 EURm Net sales Operating profit Profit before taxes Profit attributable to equity holders of the parent Research and development 50 710 4 966 4 970 3 988 5 968

2008 EURm 51 058 7 985 8 268 7 205 5 636

Change % -1 -38 -40 -45 6

2009% Return on capital employed Net debt to equity (gearing) 27.2 -14

2008 % 54.8 -62

Note! As of April 1, 2009, Nokia results include those of Nokia Siemens Networks on a fully consolidated basis. Nokia Siemens Networks, a company jointly owned by Nokia and Siemens, is comprised of Nokia's former Networks business group and Siemens' carrier-related operations for fixed and mobile networks. Accordingly, the results of the Nokia Group and Nokia Siemens

32 Networks for the ear ended December 31, 2008 are not directly comparable the results for the year ended December 31, 2008. Nokia's 2008 results included Nokia's former Networks business group only. On July 10, 2009, Nokia completed the acquisition of NAVTEQ Corporation. NAVTEQ is a separate reportable segment of Nokia starting from the third quarter 2009. Accordingly, the results of NAVTEQ are not available for the prior periods.

Markets

March 2009

10 major markets, Net Sales

2009 EURm China India UK Germany Russia Indonesia 5 916 3 719 2 382 2 294 2 083 2 046

2008 EURm 5 898 3 684 2 574 2 641 2 012 1 754

33 USA Brazil Italy Spain 1 907 1 902 1 774 1 497 2 124 1 257 1 792 1 830

Personnel

2009 Devices & Services NAVTEQ Nokia Siemens Networks Corporate Common Functions Nokia Group 61 130 4 049 60 295 355 125 829

2008 53 523

Change, % 14

58 423 316 112 262

3 12 12

34 10 major countries, Personnel, 2009 Finland India China Germany Brazil USA Hungary UK Mexico Italy 23 320 15 562 14 505 12 309 8 557 8 060 7 541 4 313 3 559 2 007 2008 23 015 11 491 12 856 13 926 8 527 5 269 6 601 2 618 3 056 2 129

Acquisitions
During the past few years Nokia has been actively acquiring companies with interesting new technologies and competencies, including also investments in minority positions. All of these acquisitions and investments were targeted to enhance Nokia's ability to help create the Mobile World. Date February 9, 2009 December 2, 2008 Acquisition Target bit-side GmbH Symbian Nokia Unit Services Nokia Corporation Services & Software Services & Software Nokia Corporation

November 4, 2008 OZ Communications July 15, 2008 July 10, 2008 PLAZES NAVTEQ

35 June 17, 2008 December 4, 2007 October 8, 2007 July 24, 2007 October 16, 2006 October 12, 2006 June 30, 2006 February 10, 2006 October 18, 2004 Trolltech Avvenu Enpocket Twango Loudeye Corp. gate5 AG LCC International's U.S. deployment business Intellisync Corp. Metrowerks Corporation Devices Enterprise solutions Nokia Corporation Multimedia Multimedia Multimedia Networks Enterprise Solutions Nokia Corporation Nokia Networks Nokia Mobile Phones Nokia Internet Communications Nokia Networks Nokia Networks Nokia Internet Communications Nokia Internet Communications Nokia Mobile Phones Nokia Networks Nokia Internet Communications Nokia Wireless Network

November 3, 2003 Tahoe Networks August 19, 2003 April 22, 2003 May 22, 2002 July 25, 2001 June 28, 2001 Sega.com Inc. Eizel Technologies(TM) Redback Networks Inc. Amber Networks Inc. F5 Networks Inc.

December 7, 2000 October 20, 2000 August 8, 2000 February 1, 2000

Ramp Networks Inc. NGI Industrial (NGI) Discovery COM Inc. Network Alchemy Inc.

December 13, 1999 Security software business from Team

36 WARE Group October 22, 1999 Telekol Group Solutions Nokia Internet Communications Nokia Networks Nokia Networks Nokia Mobile Phones Nokia Wireless Business Communications Nokia Networks Nokia Internet Communications Nokia Mobile Phones Nokia Communications Products Nokia Mobile Phones Nokia Networks

September 2, 1999 Rooftop Communications Corp June 30, 1999 May 14, 1999 February 18, 1999 February 16, 1999 Aircom International R&D units from Team WARE Group In Talk Corp Diamond Lane Communications

December 18, 1998 Vienna Systems Corp September 17,1998 NE-Products Oy August 20, 1998 June 25, 1998 December 9, 1997 User Interface Design Matra Nortel Communications Ipsilon Networks Inc

37

Some of the Nokias latest products

Brand
Network Technology Battery Capacity Standby Talk time Built Dimensions Weight Form factor Colors Display Size Type Colors Camera Resolution Zoom Flash 240 x 320 pixels color : TFT 262144 colors 3.0 mega pixel 96x49.3x14.mm 103g Slide 860 mAh 288 hours 240 mins

Nokia X3 Specifications

GSM : 850/900/1800/1900 MHz

Red on Black, Blue on Silver

2048x1536 pixels 4x No

38

Video recording Video formats Media Audio playback Audio formats Ring tones Streaming F M radio Memory Inbuilt Memory slot

yes Resolution :176x144 15 fps MPEG-4 / 3GPP H.263

Yes AAC / AAC+ / eAAC+ / MP3 / MP4 / M4A / WMA / AMR / WAV / WB-AMR / NB-AMR / Midi Tones / True Tones Mp3 ring tones Yes Yes

46 MB Yes microSD/TransFlash Hot Swappable Expandable Up to : 8 GB

Brand
Network Technology Battery Capacity Standby Talktime 1320 mAh

Nokia X6 Specifications

GSM : 850/900/1800/1900 MHz UMTS : 900/1900/2100 MHz

408 hours UMTS: 432 hours 510 mins UMTS: 360 mins

39

Built Dimensions Weight Form factor Colors Touch screen Display Size Type Colors Camera Camera Resolution Image formats Zoom Video recording Video formats Secondary camera Media Audio format Ring tones AAC / AAC+ / eAAC+ / MP3 / MP4 / M4A / WMA / AMR / WAV / XMF / WB-AMR / NB-AMR / Real Audio / Midi Tones / WMA Pro Plus Polyphonic 5.0 Megapixel 2592x1944 pixels EXIF / JPEG 4x Resolution :640x480 30 fps Real Video / MPEG-4 / 3GPP H.263 / H.264/AVC / WMV 9 Yes 360x640 pixels color : TFT 16000000 colors 111x51x13.8 mm 122g Candy bar Red and blue Yes

40

FM radio Streaming Memory Inbuilt USB mass storage

Yes Yes

32 GB Yes

Brand
Technology Battery Capacity Standby Talk time Built Dimensions Foam factor Weight Colors Dedicated keys Qwerty Touch screen 1320 mAh 8 hours 500 mins

Nokia N900 specification GSM : 850/900/1800/1900 MHz UMTS : 900/2100 MHz

110.9x59.8x18(19.55) mm Slide 181g Black Camera key, Volume Key, Zoom key Yes Yes

41

Stylus Music keys Display Size Type Colors Camera Camera Resolutions Image formats Zoom Flash Video recording Video formats Secondary camera Media Audio playback Audio formats Video formats Ring tones FM radio Streaming

Yes Yes

480x800 pixels color : TFT 16000000 colors

5 MP 2584x1938 pixels EXIF / JPEG 3x Yes Yes 25 fps MPEG-4 Yes

Yes AAC / AAC+ / eAAC+ / MP3 / M4A / WMA / WAV MPEG-4 / 3GPP H.263 / H.264/AVC / Xvid / WMV 9 wav,mp3, AAC, eAAC, wma Yes Yes

42

Memory Inbuilt USB mass storage 32GB Yes

Brand
Network Technology Battery Capacity Standby Talk-time Built Dimensions Weight Form factor Colors QWERTY Touch screen Music keys 1320 mAh

Nokia 5800 Navigation

GSM : 850/900/1800/1900 MHz HSDPA : 900/2100 MHz

408 hours HSDPA: 408 hours 540 mins HSDPA: 240 mins

111x51.7x15.5 mm 109g Candy bar Black & Red Yes Yes Yes

43

Display Size Type Colors Camera Camera Resolution Zoom Flash Video recording Video formats Media Audio formats Ringtones F M radio Streaming Memory Inbuilt USB mass storage 81 MB Yes AAC / AAC+ / eAAC+ / MP3 / MP4 / WMA / AMR / WAV / Real Audio / Midi Tones / True Tones / WMA Pro Plus Mp3, MIDI tones Yes Yes 3.0 Megapixel 2048x1536 pixels 3x Yes Resolution :640x480 30 fps Real Video / MPEG-4 / WMV 9 360x640 pixels color : TFT 16000000 colors

44

Brand
Network Technology Battery Capacity Standby Talktime Built Dimensions Weight Form factor Colors QWERTY Display Size Type Colors Camera Camera Resolution Zoom Video recording 2.0 Megapixel 1600x1200 pixels 4x 360x640 pixels Mono LCD 16000000 colors 1500 mAh 0 hours

Nokia 6790 Surge

GSM : 850/900/1800/1900 MHz HSDPA : 850/1900 MHz

290 mins HSDPA: 290 mins

97.5x57.9x15.5mm,78.5cc mm 124 g Slide Black Yes

Resolution :320x240 15 fps

45

Video formats Media Audio formats Ring tones F M radio Streaming Memory Inbuilt USB mass storage

Real Video / MPEG-4 / 3GPP H.263 / WMV 9

AAC / AAC+ / eAAC+ / MP3 / WMA / WAV Mp3, MIDI tones Yes Yes

120 MB Yes

46

Chapter 3 Data Analysis and Interpretation

(46-55)

47

Number of users of Cell phones (Sample Size-25)

Description Persons who are using Cell phone Persons who are not using Cell phone Total

Number of persons 20

Percentage 80

20

25

100

Users of cellphones

Persons having cellphone 80% Persons not having cellphone 20%

Inference: On the basis of the above analysis it has been concluded that around 80% people have mobiles and 20% of them do not have mobile phones.

48

Number of users of Nokia Mobiles

Table showing the users of Nokia & other brands Serial no. 1 2 3 4 Particulars Nokia Samsung Others Total Number of Persons 14 7 4 25 Percentage 56 28 16 100

Users of Nokia and others.

Nokia Samsung others

Inference:

On the basis of the above analysis it has been inferred that around 56% are the users of Nokia from the sample study of 25 people.

49

Reasons for purchasing

Serial no. 1 2 3 Particulars Friends Advertisements Family Total Number of respondents 5 18 2 25 Percentage 20 72 8 100

Reasons for the purchase of Nokia

Friends Advertisements Family

Inference:

It is understood that, majority of the respondents i.e. 72% of them were influenced by the advertisements appearing in media and 20% of the respondents purchased Nokia mobiles when referred by their friends while 8% went on their Family advice.

50

Table showing the preferred attribute of Nokia

Serial no. 1 2 3

Particulars Design & Looks User Friendly Brand Name Total

Number of Respondents 4 7 14

Percentage 16 28 56 100

Preferred attribute of Nokia Cell phones

Design User Friendly Brand Name

Inference: It is understood that, majority of the respondents i.e., 56% of the respondents preferred Nokia mobiles due to its brand image and next majority, i.e. 28% of the respondents preferred it due to its User Friendliness while remaining opted due to its design.

51

Is Nokia Value for Money?

Serial no.

Particulars

Number of Respondents

Percentage%

1 2

YES NO Total

21 4

84 16 100

Is Nokia 'Value for Money'?

YES NO

Inference: On the basis of the above analysis it has been inferred that around 84% thinks that Nokia is value for money. .

52

Satisfaction level of the customers

Table showing the satisfaction level of the customers on the basis of its brand Serial no. Attributes Number of Respondents 1 2 3 Highly satisfied Satisfied Not satisfied Total 10 11 4 40 44 16 100 Percentage%

Satisfaction Level on the basis of brand name

Highly Satisfied Satisfied Not Satisfied

Inference:

Above study shows that 40% and 44% are highly satisfied & satisfied with the Nokia respectively while 16% are not satisfied.

53

Table showing the satisfaction level of the customers on the basis of its Price

Serial no.

Attributes

Number of Respondents

Percentage%

1 2 3

Highly satisfied Satisfied Not satisfied Total

4 13 8

16 52 32 100

Satisfaction Level on the basis of Price

Highly Satisfied Satisfied Not Satisfied

Inference: It is quite understood that on the basis of above study 52% of the customers are satisfied with Nokia on the basis of its price.

54 Table showing the satisfaction level of the customers on the basis of its Variety

Serial no.

Attributes

Number of Respondents

Percentage%

1 2 3

Highly satisfied Satisfied Not satisfied Total

5 12 8

20 48 32 100

Satisfaction Level on the basis of Variety

Highly Satisfied Satisfied Not Satisfied

Inference: On the basis of above study it is understood that majority of the people are satisfied with the variety provided by Nokia.

55

Interpretation:
It is understood that the users of Nokia mobiles are quite satisfied with the Brand image of Nokia and with its pricing strategies, but dissatisfied with the Variety provided by Nokia.

56

Chapter 4 Conclusion & Recommendations

(56-58)

57

CONCLUSION
Gaining won. and maintaining and purchase consumer consistent will, preference branding over time, is a land battle the that that product is never reinforce in really the

Continued

initiatives

consumers

decision

consumer

preference sets. Attaining and sustaining preference is an important step on the road to gaining brand loyalty. Most of the consumers prefer Nokia mobiles due to its strong brand image, and the main factor forcing the customers to buy Nokia mobiles is advertisements through the print and electronic media.

Customers are brand loyal towards Nokia. They are not shifting to any other company in-spite of attractive offers. Nokia is not targeting the rural market. Market share of Nokia has been affected by the unorganized sector but not to a great extent. Nokia is not left behind in advertisements as compare to other companies.

58

RECOMMENDATIONS:

TV advertisements can be renewed explaining the product feature and aggressive marketing will help the company. The company can adopt new strategies and policies to overcome the competition. Nokia needs to improve its marketing strategies as new Indian mobile companies are offering at a much cheaper price and with all the high end features. Nokia should also target the rural market to increase its market share. Nokia should improve its after sales services. The company should bring the new varieties in all segments of its products.

59