Introduction

The company I have chosen to analyze in my report is the mobile phone giant Nokia. This project tells us briefly what Nokia actually is, its company structure and overall view on the size and sales of the company & also the Various Market segmentation Strategies followed by them. Since January 2004, Nokia Group has consisted of four different business groups: Mobile Phones, Multimedia, Enterprise Solutions and Networks. In addition, there are two horizontal groups that support the mobile device business groups: Customer and Market Operations and Technology Platforms. In the year 2004 Nokias net sales for mobile phones was 18507 million euro, which went down 12% from 2003. Nokias market areas were Europe/Africa/Middle East (55% of net sales), Asian Pacific and China (25%) and Americas (20%). Nokias market share in Europe was 45.8% in 2003, in 2004 it was 34.8% and in the third quarter of 2005 it was 36%. The average number of personnel for 2004 was 53511. At the end of 2004, Nokia employed 55505 people worldwide. In 2004, Nokias personnel increased by a total of 4146 employees. Nokias turnover for the third quarter of 2005 was 8403 million euro from which mobile phones brought in 62%, multimedia 17%, Enterprise solutions 2% and Networks 9%. The year 2004 was demanding for Nokia. In response, the company set five top priorities in the areas of customer relations, product offering, R&D efficiency, demand-supply management and the companys ability to offer end-toend solutions. Nokia is making good progress in these areas, and is now better positioned to meet future challenges.

Objective of the study

The objectives of the report are:1) To know about marketing of Nokia. 2) To know about market segmentation. 3) To know the market segmentation used by Nokia.

About the Company

Nokia- Connecting People! Nokia Corporation (NYSE: NOK) is one of the world's largest telecommunications equipment manufacturers. With headquarters in Keilaniemi of Espoo, Finland, this Finnish telecommunications company is best known today for its leading range of mobile phones. Nokia also produces mobile phone infrastructure and other telecommunications equipment for applications such as traditional voice telephony, ISDN, broadband access, professional mobile radio, voice over IP, wireless LAN and a line of satellite receivers. Nokia provides mobile communication equipment for every major market and protocol, including GSM, CDMA, and WCDMA. Nokia was established in 1865 as a wood-pulp mill by Fredrik Idestam on the banks of Nokia rapids. Finnish Rubber Works established its factories in the beginning of 20th century nearby and began using Nokia as its brand. Shortly after World War I Finnish Rubber Works acquired Nokia wood mills as well as Finnish Cable Works, a producer of telephone and telegraph cables. All three companies were merged as Nokia Corporation in 1967. The name Nokia originated from the river which flowed through the town of the same name (Nokia). In the 1970s Nokia became more involved in the telecommunications industry by developing the Nokia DX 200, a digital switch for telephone exchanges. In the 1980s, Nokia offered a series of personal computers called MikroMikko. However, these operations were sold to International Computers, Ltd. (ICL), which was later merged with Fujitsu-Siemens AG. Nokia also began developing mobile phones for the NMT network; unfortunately, the company ran afoul of serious financial problems in the 1990s and streamlined its manufacturing of mobile phones, mobile phone infrastructure, and other telecommunications areas, divesting itself of other items, such as televisions and personal computers. In 2004, Nokia resorted to similar streamlining practices with layoffs and organizational restructuring, although on a significantly smaller scale. This, however, diminished Nokia's public image in Finland, and produced a number of court cases along with, at least, one television show critical of Nokia. Recently, Nokia joined other mobile phone manufacturers to embrace Taiwanese Original Device Manufacturers. Nokia signed a contract with BenQ, a Taiwanese Original Device Manufacturer, to develop three high-end mobile phones, which are scheduled to retail by the end of 2005.

Market Segmentation for Nokia

The decibel levels in the cellular market are increasing with service providers stepping on the gas. Not to be left behind, handset manufacturers are using precise segmentation to carve up their share. Divide and rule seems to be working! According to a report published in May 2001, the all-India cellular subscriber figures stand at 38, 71,514. With aggressive marketing by service providers, this figure is expected to increase at a very rapid rate. If current decibel levels in the market are anything to go by, these expectations are well on the way to being met. However, amidst this entire melee one cannot ignore the efforts of the handset manufacturers. Both service providers and handset manufacturers have been complementing each other well with each fuelling the demand for the other. Industry observers attribute the success of handset manufacturers to shrewd market segmentation. The big three of the mobile handset market - Nokia, Ericsson and Motorola, have studied the market and segmented it precisely.

Segmentation of Nokia
Connecting people! Nokia, arguably the biggest player in the world, has divided the market into four segments: Hi-fliers: The biggest segment as far as Nokia is concerned consists of 'Hi-Fliers', corporate executives who use a mobile phone to increase productivity at work. Aged from 25 to 45, the segment looks for data transmission and other business-related features. In most cases, the company sponsors the handset; hence price is not a major consideration. Trendsetters: In any technology adoption cycle, the first segment to adopt an emerging technology is dubbed as 'the early adopters'. For Nokia, these early adopters are 'Trendsetters' who are most receptive to advanced models. This was the segment at which WAP-enabled models were aimed. Social contact: The third segment for Nokia is the upwardly mobile, socially-conscious segment that uses a mobile to stay in touch. Today's youth and affluent housewives constitute two major chunks of the segment.

Assured: The fourth and last segment as defined by Nokia comprises of CEOs, highprofile celebrities, industrialists and other high "net worth" individuals. The fact that the segment cannot do without a mobile phone makes it the 'assured' segment.

Geographic World region Asia Country India Cities Reach out maximum places

Demographic Age All age group Gender Male, Female Income All income groups Occupation Every sector Religion Irrespective of religion

Psychographic Social class All class of people Lifestyles Urban, rural, and even far villages

Behavioral Benefits Quality Loyalty status Strong

The Segmentation of Nokia conducted on the basis of Price

The price ranges are as follows: 1000 5000 5000 9000 9000 15000 15000 21000

21000 - 30000 30000 - above

Range 1: (1000 5000) Workers and labourers

nokia 1650 nokia 1200 nokia 1208 nokia 2610 nokia 2626 nokia 2310 nokia 1112 nokia 1600 nokia 1110 nokia 3110

Range2: (5000 9000) middle managers

Nokia 2630 Nokia 6080 Nokia 6070 Nokia 6020 Nokia 7360 Nokia 3110 Classic

Range 3: (9000 15000) university students

Nokia 5200

Nokia 6151 Nokia 7610 Nokia 6111 Nokia E50 Nokia 6230i Nokia 6131 Nokia 5300 Nokia 7500 Prism Nokia 6233 Nokia 6300 Nokia N72 Nokia E62 Nokia 7373 Nokia 6120 Classic

Range 4: (15000 21000) music lovers/ high memory

Nokia N70 Music Edition Nokia 5310 Nokia 6288 Nokia 3250 (1GB) Nokia 7390 Nokia 5700 Nokia E51i Nokia N73

Nokia 5610

Range 5: (21000 30000) communicator/ high and young business people Nokia E65 Nokia N73 Music Edition Nokia E61 Nokia 9300i Nokia E70 Nokia 6500 slider Nokia 7900 Prism Nokia E61i Nokia N76 Nokia N81

Range 6: (30000 - above) educated politician

Nokia N95 Nokia N93i Nokia 8600 Nokia N82 Nokia N95i Nokia E90 Nokia 8800

Conclusion
From the above project I have come to this conclusion that Nokia has implemented various segmentation strategies for its products on a large scale & becoming no.1 leader in the world of mobile phones. Nokia segments its market according to various variables. The main segmentation is done on the basis of price. As per my opinion Nokia had introduced various schemes to attract people & gain more goodwill into market. I would like to conclude that Nokia had been launching various new products & strategies throughout the year but still it is the no.1 brand leader in mobile phones. Many people around the globe are purchasing Nokia phones, as they are very cheap, good & efficient to operate. Nokia have used better & efficient market segmentation strategies to market its products according to various segments of customers in the market. Nokia as such has used all modern & good techniques to tackle problems of customers in market. Customer care & feedback is also given more importance. Better, efficient & advanced techniques are used to increase the sales of product. Also Nokia is largest manufacturer of mobile phones in India & also the no.1 leader in it. Various segmentation strategies are being enrolled into the market to increase the sales of the products. New models & their strategies are being well utilized to enhance the product.