Course:

Consumer Behaviour & Marketing

Strategy

Topic:
  How Did Nokia Succeed in the
Indian Mobile Market

Presented to:
Sir Tariq Raheem Presented by:
Nomair Usman (17309)
M. Uraib Raza Memon (17282)
NOKIA IN INDIA

 India is along with the world’s fastest-growing

markets for mobile phones

 The country has a number of 170 million subscribers

and adds 6 million to 7 million more each month.
(China, in contrast, adds 5 million subscribers, and
the U.S. 2 million subscribers a month.)

 Finland-based Nokia — forged ahead of rivals and

today hold a 58% market share for mobile phones
How did Nokia take the lead in the
Indian mobile phone market?
 According to company executives and industry
experts, Nokia’s strategy joint focusing on the mobile
phone market

 “As far as Nokia’s India strategy is concerned, the

numbers speak for themselves. The company is a key
part in India’s wireless value chain, and it has used
India as its rising market lab.” Said by Ravi Bapna
(Professor of Information Systems)
The Power of Focus

 Nokia India’s vice president and country manager, believes

that focus played a main role in the company’s growth in
India

 All other Companies had also focused on something else

(Like Home Appliances, Electronic Items) despite the fact that
at the same time Nokia only focused on Mobile Phones.

 as of April 1, 2007, Nokia’s joint project with Siemens for

mobile infrastructure has become an independent entity. Thus,
Nokia India has turn out to be even more sharply focused.
The Power of Focus
 “We invested before everybody else — in the brand, in
community, in distribution,” says Shivakumar

 President of the Indian Cellular Association: “Nokia

invested in each vertical of the handset ecosystem —
manufacturing, distribution and plan R&D.”

 Nokia has invested more than $1 billion in India so far,

and company headquarters at Helsinki has repeatedly said
that more funds will be made offered if required. . 
The Distribution Edge
 When it comes to distribution, Nokia’s lead is clear. Today, India
has some 95,000 outlets that sell mobile phones. “In 50,000 of them
(that’s a conservative estimate) only one brand is available, Nokia,”
says Shivakumar.

 Nokia started distributing its phones through a partnership with

HCL (formerly Hindustan Computers Ltd.), which had already built
an extensive network for its own products.

 Both companies realized that there was a tremendous growth

opportunity and it was best that we utilize the resources of both
organizations in an optimum manner
The Distribution Edge
 Both Companies decided that we would address some markets
jointly, and that we would individually address some of the
other markets.

 In the cities where the market is maturing, Consumers are

looking at more sophisticated mobile phones, such as Nokia’s
E-series phones (which serve business users) and the N-series
(which have multimedia features). In rural India — which
constitutes 70% of the population — affordability is an issue.
So there is a different variety for this constituency.
Investments in Manufacturing
 The other big investment area that has set Nokia
separately from other telecom firms is manufacturing
facilities and R&D. Nokia has several R&D centers
and labs in India

 More significantly, it established a $150 million

handset manufacturing facility in Chennai in 2005

 The total production at this unit has crossed 25

million handsets. Some 30% of their production is
being exported to neighboring countries
Investments in Manufacturing
 Other companies, such as Motorola, LG and Samsung, have
also lined up similar investments or are in the procedure of
setting up manufacturing units, but Nokia has had a clear head
start.

 The Nokia’s Chennai factory is devoted to handsets, whereas

other companies are arrangement to make a whole range of
consumer electronics products.

 “Domestic manufacturing has worked to Nokia’s advantage,”

says Deputy managing director, Samsung India
Electronics.
Investments in Manufacturing
 Industry analysts note that Nokia’s strategy is potentially risky.
When the going is good — as it is now — the company can do well.
But Samsung’s approach is more elastic, these analysts note.

 If demand for mobile phones were to slump, Samsung could switch

its manufacturing lines to other products. In contrast, Nokia India’s
focus on mobile phones mirrors the priorities of its parent company.

 Nokia traditionally was in a whole range of businesses — from

toilet paper to power. But in 1993, CEO JormaOllila decided to get
rid of off everything else and concentrate on mobile telephony.
Conclusion

There are many more Aspects we did not discussed in

this presentation but this will make us clear how
Nokia got succeed in Indian Mobile as they just
focused on One product and how they invested and
risk their business by only manufacturing only one
product in their factory. Nokia is known by almost
every person of Earth. It is not easy to be at the place
where Nokia is now.