marketing plan of no-kia by Abby

8/8/2019 marketing plan of no-kia by Abby

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A project report onmarketing plan of NOKIA

Submitted to:- Submitted by:-

Dr. Anurupa B Singh ABHISHEK PATHAK

(FT-09-705)


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ACKNOWLEDGEMENTI would like to express my heartfelt feelings and convey immense thanks to all

those who gave me there moral support and shared their insights with me while I

was preparing this project.

First and foremost, I am highly thankful and indebted to my faculty Dr. Anurupa

Singh IILM GSM who has always been there to encourage and help us

whenever i needed her help. I owe special thanks to her for providing

unending support & co-operation.

Last but not least, I will ever remain grateful and indebted to my parents, my

teachers & friends who have always been the source of unending inspiration,

encouragement & guidance in pursuit of excellence & learning process throughout

my life.


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Table of Content

Topic Page No

Executive Summary

Company Profile

Situation Analysis

Segmentation

Nokia Strategies

Distributors

Conclusion

Implementation and control

Contingency plans

.


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Executive Summary

Mobile phone market in India is going through major changes. Key players are losing

market share while new and young companies, mostly from Asian countries, arecoming to the market. At the same time the market is slowly expanding when

people are buying more phones than ever. The whole process of buying mobile

phones has changed in the last few years. People no longer carry the same phone

year in year out , change is the fast technological development of the phones. But

also consumers but they change their phone every year, some even twice a year.

One reason for these attitudes towards mobile phones has changed. Mobile phones

are no longer seen as expensive, hi-tech products, but they have become

accessories like jewellery or a piece of clothing. Nokia is still the largest mobilephone company in the world, but its long-term dominance is now challenged more

than ever. Observers have begun asking whether the cutting edge that has turned

Nokia into the No 1 vendor still exists, as Nokias market share and revenues have

been on the decline. Falling average sales prices (ASPs) and market share have had

an impact and forced Nokia to further re-think its strategy towards developed and

emerging markets.

This report gives an overview on what is happening on the mobile phone market

today and analyses Nokias market position in the growing market. This reportincludes a brief introduction to Nokia followed by an environmental analysis, SWOT

analysis of the company. Half way through the report you can find information

about consumer behavior and segmentation. At the end, this report introduces the

main strategies and objectives of Nokia for the competitive market. Finally we try

to make a conclusion of the topics discussed and attempt to give some possible

answers to the question at hand.


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Company Profile

2.1 History

The roots of Nokia go back to the year 1865 with the establishment of a forest

industry enterprise in South-Western Finland by mining engineer Fredrik Idestam.

Elsewhere, the year 1898 witnessed the foundation of Finnish Rubber Works Ltd,

and in 1912 Finnish Cable Works began operations. Gradually, the ownership of

these two companies and Nokia began to shift into hands of just a few owners.

Finally in 1967 the three companies were merged to form Nokia Corporation.

At the beginning of the 1980s, Nokia strengthened its position in the

telecommunications and consumer electronics markets through the acquisitions of

Mobira, Salora, Televa and Luxor of Sweden. In 1987, Nokia acquired the consumer

electronics operations and part of the component business of the German Standard

Elektrik Lorenz, as well as the French consumer electronics company Oceanic. In

1987, Nokia also purchased the Swiss cable machinery company Maillefer.

In the late 1980s, Nokia became the largest Scandinavian information technology

company through the acquisition of Ericsson's data systems division. In 1989,

Nokia conducted a significant expansion of its cable industry into Continental

Europe by acquiring the Dutch cable company NKF.

Since the beginning of the 1990's, Nokia has concentrated on its core business,

telecommunications, by divesting its information technology and basic industry

operations.


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2.1.1

1865-1960

From its inception, Nokia was in the communications business as a manufacturer of

paper - the original communications medium. Then came technology with the

founding of the Finnish Rubber Works at the turn of the 20th century.

Rubbers, and associated chemicals, were leading edge technologies at the time.

Another major technological change was the expansion of electricity into homes

and factories which led to the establishment of the Finnish Cable Works in 1912

and, quite naturally, to the manufacture of cables for the telegraph industry and

to support that new-fangled device - the telephone!After operating for 50 years, an Electronics Department was set up at the Cable

Works in 1960 and this paved the way for a new era in telecommunications. Nokia

Corporation was formed in 1967 by the merger of Nokia Company - the original

paper-making business - with the Finnish Rubber Works and Finnish Cable Works.

2.1.2

1960-1980

Design has always been important at Nokia and today's mobile phones are regarded

as a benchmark for others to follow. Take, for example, multi-colored, clip-on

fascias which turned mobiles into a fashion item overnight. But Nokia has always

thought like that and back in the fashion-conscious 1960's when one branch of the

corporation was a major rubber manufacturer, it hit on the idea of making

brightly-colored rubber boots at a time when boots followed the Henry Ford

principle - you could have any colour, so long as it was black!

The '60s, however, were more important as the start of Nokia's entry into the

Telecommunications market. A radio telephone was developed in 1963 followed, in

1965, by data modems - long before such items were even heard of by the general

public.


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In the 1980's, everyone looked to micro computers as the next 'big thing' and

Nokia was no exception as a major producer of computers monitors and TV sets. In

those days, the prospect of High Definition TV, satellite connections and teletext

services fuelled the imagination of the fashion conscious homeowner.

In the background, however, changes were afoot. The world's first international

cellular mobile telephone network, NMT, was introduced in Scandinavia in 1981 and

Nokia made the first car phones for it. True enough, there were 'transportable'

mobile phones at the start of the '80's but they were heavy and huge. Nokia

produced the original hand portable in '87 and phones have continued to shrink in

inverse proportion to the growth of the market ever since.

2.1.3

1980-2001

It took a technological breakthrough and changes in the political climate to create

the wire-free world people are increasingly demanding today. The technology was

the digital standard, GSM, which could carry data in addition to high quality voice.

In 1987, the political goal was set to adopt GSM throughout Europe on July 1st

1991. Finland met the deadline, thanks to Nokia and the operators. Politics and

technology have continued to shape the industry. The '80s and '90s sawwidespread deregulation, which stimulated competition and customer expectations.

Nokia changed too and in 1992 Jorma Ollila, then President of Nokia Mobile

Phones, was appointed to head the entire Nokia Group. The corporation divested

the non-core operations and focused on telecommunications in the Digital Age. Few

people in the early '90s would have thought that 'going digital' would change things

so.


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2.1.4

2001 and into the Future

Nokia is harnessing its experience in mobility and networks to generate a startlingvision of the future. Meeting rooms, offices and homes will be 'smart' enough to

recognize their human visitors and give them whatever they want by listening to

their requests. Nokia welcomes change and improvement and can embrace new

ideas at great speed. Such characteristics will never change but, as to the rest,

the story has only just begun!


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2.2

Mission and Vision:

2.2.1

Vision

Our customers continue to our First Priority

Nokias future success depends on delivering great experiences to our customers

by creating products and solutions that work seamlessly and are appealing.

2.2.2

Mission

In a world where everyone can be connected, we take very human approach to

technologyConnecting is about helping people to feel close to what matters. Wherever,

whenever, Nokia believes in communicating, sharing, and in the awesome potential in

connecting the 2 billion who do with the 4 billion who dont. If we focus on people,

and use technology to help people feel close to what matters, then growth will

follow. In a world where everyone can be connected, Nokia takes a very human

approach to technology.

2.2.3

Strategy

Wherever, whenever, we believer in communicating, sharing and in the awesomepotential of connecting the 2 billion who do, with the 4 billon who dont.

At Nokia, customers remain our top priority. Customer focus and consumer

understanding must always drive our day-to-day business behavior. Nokias priority

is to be the most preferred partner to operators, retailers and enterprises.

Nokia will continue to be a growth company, and we will expand to new markets and

businesses. World leading productivity is critical for our future success. Our brand

goal is for Nokia to become the brand most loved by our customers.


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In line with these priorities, Nokias business portfolio strategy focuses on five

areas, with each having long-term objectives:

- Create winning devices- Embrace consumer Internet service

- Deliver enterprise solutions- Build scale in networks

- Expand professional services

There are three strategic assets that Nokia will invest in and prioritize:

- Brand and design

- Customer engagement and fulfillment

- Technology and architecture

2.2.4

Organization

Nokia comprises four business groups: Mobile Phones, Multimedia, Enterprise

Solutions and Networks.

Mobile Phones connects people by providing expanding mobile voice and data

capabilities across a wide range of mobile devices. We seek to put consumers first

in our product-creation process and primarily target high-volume category sales.

Multimedia brings connected mobile multimedia experiences to consumers in the

form of advanced mobile devices and applications. Our products give people the

ability to create, access and consume multimedia, as well as share theirexperiences with others through a range of radio technologies.

Revenue by four business groups

Enterprise Solutions offers businesses and institutions a broad range of products

and solutions, including enterprise-grade mobile devices, underlying security

infrastructure, software and services. We also collaborate with other companies to

provide fixed IP network security, mobilize corporate email, and extend corporate

telephone systems to Nokias mobile devices.

Networks provides network infrastructure, communications and networks service

platforms, as well as professional services to operators and service providers.

Networks focuses on the GSM family of radio technologies and aims at leadership

in three areas: GSM, EDGE and 3G/WCDMA networks; core networks with

increasing IP and multi access capabilities; and services. Our business groups are

supported by various horizontal entities:


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Customer and Market Operations is responsible for marketing, sales, sourcing,

manufacturing and logistics for mobile devices from Mobile Phones, Multimedia and

Enterprise Solutions.Technology Platforms is responsible for the competitiveness of Nokias technology

assets. The group supports Nokias overall technology management and developmentby delivering leading technologies and well-defined platforms both to Nokias

business groups and to external customers.

Nokia-wide horizontal units drive and manage specific Nokia assets. They include

brand and design, developer support, research and venturing, and business

infrastructure.

Corporate Functions support Nokia's businesses with company-wide strategies and

services.

2.3Mobile Phone Market In India

NOKIAs hegemony in the GSM handset segment has increased during last one

year. NOKIAs market share (in terms of unit sold) has grown to 74% in March 09

from 61.5% in October 08. In the colour segment too, Nokia has increased its

market share to 55% in march 06 from 33.7% in march 05.In terms of value,

Nokias overall market share has jumped to 70.5 % in march 06 from 57.7% in

October 05. In the colour phone category, its market share (in terms of value) has

increased to 59.3% in march 06 from 40.9% in October 05, according to ORG GFKestimates.

Fig.2.2


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NOKIAs performance over a year

Once NOKIAs closest rival, Samsung has been losing its market share sinceOctober05 when it had an overall market share (in terms of units) of 1.2, to 7.8%

I March06. The drop is much steeper in value terms where its market share hasfallen to 9.8% in March06 from 21.2% in October05.

Sony Ericssons market share (in terms of units) has improved marginally from 7.1%

October05 to 7.6% in March06, although in value terms it has increased from

8.7% in October05 t 10.2% in March06. The colour segment, where Samsung used

to rue once, has seen its market share falling both in terms of units and value. The

market share (units) has dropped to 16.3% in March06 from 34.9% in October05

ad in terms of value, has dropped to 14% in March06 from 32.5% in October05.

Sony Ericssons market share in the colour segment is marginally more than the

Samsungs at 16.7% (unit) and 15.9% (value) in March06 and is an improvement overits October4 figures of 15.6% (units) and 14% (value). The total handset units sold

in the top 10 towns in the month of March is 5,06,493 units, from 4,68,621 units

inOctober05. The total value of the handset s sold is Rs.245.6 crore as of

March06 from Rs.236.1 crore in October06. The number of colour phones jumped

to 2,11,779 units in March06 from 1,66,210 units in October05. The value of the

colour phone market increased to Rs.15,208 lakhs in March06 from Rs13,023 lakhs

in October05.

3. Situation Analysis:

3.1 Social Analysis

For electronics companies, take back and recycling add value. They support brand

value and customer loyalty and inspire customer insights. They also demonstrate

environmental responsibility. Manufacturers like Nokia are generally in a

disadvantaged position for take back, due to the costs involved and the lack of

many consumer touch points.

Stakeholders in the take back and recycling process include governments,

retailers, customers, consumers and products. Other stakeholders include

recyclers, refurbishes and NGOs.


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3.2Environmental Analysis

NOKIA aims to be a leading company in environmental performance. By working to

reduce the adverse environmental impacts of our products and activities, ourcustomers can use our products with confidence and good conscience. Combiningenvironmental issues into daily work makes business sense for Nokia. By working to

reduce the adverse environmental impacts of our products and activities, we

minimize risk, ensure legal compliance, gain stakeholder acceptance, and help

advance the long-term success of our company.

Our customers can also use our products with confidence and good conscience.

Through our environmental strategy, we work to ensure that our products are safe

for personal use and that they do not overly tax the environment. Nokia is a

trusted brand and we take that trust seriously.

3.2.1

Nokia environmental strategy

Nokia is a leading company in environmental performance. Nokias environmental

strategy is based on lifecycle thinking, beginning with the extraction of raw

materials and ending with recycling and disposal of as well as the reintroduction of

recovered materials into the economic system. Our goal is to develop advanced

mobile technology, products and services, which have no undue environmentalimpact, consume energy efficiently, and that can be appropriately reused, recycled

or disposed of. Nokia's environmental strategy is integrated with our businessstrategy. Our four business groups have set environmental targets for their own

activities to implement our corporate level environmental strategy.

3.2.2 Main Issues In Focus

Three important global issues remain at the forefront of much of Nokias

environmental work. They are substance management, arrangements for the take

back and recycling of end-of-life products, and energy efficiency.

* Substance management

During the planning and design of our products, one of our main focus areas is their

material content. We are continuously analyzing the materials used in our products

with the aim of reducing the amount of potentially hazardous or harmful content.


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* Take back and recyclingIn take back and recycling, we have for years had in place our own arrangements

for mobile devices and accessories, as well as for mobile network and IP networksecurity equipment. All Nokia products are also covered by the European Union's

new Waste Electrical and Electronic Equipment (WEEE) directive. Nokia is

assuming product responsibility as defined by the directive as it is implemented

throughout Europe. In addition, take back of Nokia mobile devices will also continue

at authorized Nokia Service Centers and Flagship stores in all markets where we

do business.

* Energy efficiency

In our product creation as well as our own operational activities, an important area

for continuous performance improvement is in energy efficiency. We haveconsistently been able to reduce the energy intensity of our products.

3.2.3

Supply Chain

We are committed to reducing the environmental impact of our business. We

expect all Nokia suppliers and their suppliers to take a similar approach. At Nokia,

we believe in long-term partnerships with suppliers who share our approach to

ethical business. Together we work hard to anticipate risk, demonstrate companyvalues, enhance our governance practices, increase employee satisfaction and look

after the communities where we do business.


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3.3

SWOT Analysis

Nokia is at an important crossroads in its history. Having architected many of thekey tenets for growth during the formative years of the mobile phone industry,the market with which Nokia is so familiar may be adopting different rules, ones

that it may not fully understand. The situation Nokia faces may be similar to the

period in the PC industry when Dell Computer surpassed perennial leaders IBM,

Hewlett-Packard and Compaq Computer. Why might this happen? Because Nokia's

strengths are so well-understood by its competitors, they are well-targeted and

improved upon. The wireless market's evolution has slowed, making it easier to

challenge the incumbents. Also, the progress of technology has made many of

Nokia's early advantages easier to overcome. Nokia's leadership position is a resultof paying persistent attention to market needs and taking the right chances at the

right time. Nokia was the first to acknowledge fashion as an important element in

mobile phone purchases, and it is solidly behind the push for Multimedia Messaging

Service, which could become the first data service beyond Short Message Service

to be deemed successful. There is a significant gap between Nokia and startups,

which makes it difficult to compete against Nokia. Nokia's tie to operators has

kept its products solidly in consumers' view. Yet, Nokia faces some serious

challenges.

Fig.3.1.

SWOT AnalysisThe mobile landscape has fundamentally shifted, and some of Nokia's strengths

and core beliefs may no longer be valid. In the following research, we discuss

Nokia's strengths and challenges and provide advice for enterprises partnering

with, purchasing from and working with Nokia.

Strengths: -

Nokia has largest network of distribution and selling as compared to other mobile

phone company in the world. It is backed with the high quality and professional

team in the HRD Dept. The financial aspect is very strong in case of Nokia as it

has many more profitable business. The product being user friendly and have all

the accessories one want that is why is in great demand making it No-1 selling

mobile phones in the world. Wide range of products for all class. The re-sell value

of Nokia phones are high compared to other companys product.


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Weakness:

Nokia has many strengths and some weakness. Some of the weakness includes theprice of the product offered by the company. Some of the products are not user

friendly. Not concern about the lower class of the society people. Not targetingpromotion toward them. The price of the product is the main issue. The service

centers in India are very few and scare. So after sales service is not good.

Opportunity : -

Nokia has ample of opportunity to expand its business. With the wide range in

products,features and different price range for different people, it has an

advantage over the competitors around. With the opportunity like Telecom

penetration in India being at the peak time, Nokia has an opportunity to increase

its sales as well as the market share. As the standard of living in India hasincreased the purchasing power of the people as increased as well, so Nokia has to

target right customer at right time to gain the most out of the situation.

Threats:

Nokia has many threats to tackle to maintain its position as market leader. The

threats like emerging of other mobile companies in the market. The companies

like Motorola, Sony Eriksson, Cingular (U.S) etc. these companies have come to

the stand of tough competition with Nokia in the field of Mobile Phones. Threats

can be like providing cheap phones, new features, new style and type, good aftersales service etc. So, Nokia has to keep in mind the growing competition around.

Nokia has to make strategies to tackle problems in the present and the near

future. The growing demand of WLL network can cause drop in sales for Nokia, as

Nokia provides many less CDMA phones to the customer.


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4. Segmentation

4.1 Mobile Phone

Mobile Phones connect people by providing expanding mobile voice and datacapabilities across a wide range of mobile devices. We seek to put consumers firstin our product-creation process and primarily target high-volume category sales of

mobile phones and devices based on the following global cellular technologies:

GSM/EDGE, 3G/WCDMA and CDMA.

In voice centric and mainstream mobile phones, we believe that design, brand, ease

of use and price are our customers' most important considerations. Increasingly,

our product portfolio includes new features and functionality designed to appeal to

the mass market, such as mega pixel cameras, music players and advanced-quality

color screens.Quality is at the heart of Nokias brand promise, very human technology.

We want our customers to know that Nokia is the best quality company in the

industry. Our goal is to have the industrys best products and services, most loyal

customers and most efficient operational mode.

We believe that quality is about meeting and exceeding customer expectations. At

Nokia, we view quality holistically and as an integral part of business management.

The quality of products and customer experiences depends on the quality of

processes, which in turn is tied to the quality of management.

Our key quality targets are:

For Nokia to be number one in customer and consumer loyalty. For Nokia to be number one in product leadership.

For Nokia to be number one in operational excellence.

The quality and reliability or our products and services are among the most

important factors driving customer satisfaction and loyalty. Designing good quality

products begins with understanding customer requirements and creating the best

user experience. The whole chain, from suppliers through to R&D, operations, sales

and distribution to customers, impacts the end-result everybody in the chain has

a role to play in achieving quality.

Our products and customer experiences are the results of our everyday processes.

Process management means finding the simplest way of operating, in order to

create customer value in a lean manner. Our process thinking covers everything we

do, and processes are continuously improved based on the measures and the


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feedback we receive from our customers.

Quality in management is vital for leveraging innovations globally and improvingproductivity in general. Our approach to this is platform thinking, process

management and combining fact-based management with values-based leadership.We have developed a key framework for improvement at Nokia, which we call the

'Self-Regulating Management System'. It's about management practices that allow

us to run our business in a consistent, effective and fact-based manner.

Commitment to quality improvement is a continuous management process. It is both

a business strategy and a personal responsibility, and it is a part of our culture and

values. But at the end of the day, quality improvement is much more than something

we can quantify in words or pictures. It is an attitude a mindset. By taking quality

personally we are able to deliver world-class quality to our customers. It is our

source of inspiration, energy and excitement.

4.1.1

Segmentation Strategy

Nokia Market Demographic

The profile for Nokia customer consists of the following geographic and

demographic:

Geographic Our immediate geographic target is rural India.

The total targeted population is estimated at 100 million.

Demographic

Male and female.

Ages 25-50, this is the segment that makes up 80% of the Nokia mobile phone

market according to the NOKIA India Ltd.

Professionals and College students.


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5. Nokia Strategies

Market growth predictions provide one motivation for network operators and

service providers to improve the data service experience. For example, some

research predicts a 270% increase in average monthly ARPS (average revenue persubscriber) for data services from 2005 to 2020, as indicated in Figure 5.1.Nokia predicts a CAGR (compound annual growth rate) of 9% for the mobile

services market during the years 20042009 (see Figure 5.2). This growth will be

due largely to growth in data services (CAGR 23%), with CAGR at 6% for voice and

other calls.

Data is particularly a growth driver in emerging markets and Asia. Some

researchers provide more conservative figures, but all the research indicates that

definite growth opportunities exist for mobile data services.

5.1

Marketing Strategy

Today, the true killer data application is still text messaging, a typical example of

person-to-person communication. Other end-user services, however, have not taken

off as expected in recent years.

The primary reason for this slow take-up is that most of these services do notfulfill the expectations of users. Although ring tones are one example of

successful person-to-content services, progress must be made for market take-up

of other mobile data services such as:

Messaging (e.g., MMS and e-mail)

Entertainment (e.g., graphics, logos, games) Information (e.g., directory services, news)


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A variety of user needs will drive market growth for mobile data services

There are two main barriers to increased usage of data services. First is the lack

of relevant service propositions, where the price does not correlate with theperceived value of the service. Second is the complexity of service adoption and

usage, where users perceive that data services require too much effort compared

to other solutions. User needs and market growth are clearly present, as

illustrated in Fig.5.3.

However, mass-market adoption will happen only when the service providers have

identified the relevant service propositions and ease-of-use factors. Delivering

ease-of-use is within the reach of any service provider, regardless of whether it

operates its own network. However, the challenge is to understand the underlying

reasoning for end-user behavior and usage patterns and to organize the serviceoffering accordingly. Visibility into the end-user service experience can be

obtained from resources such as sophisticated end-user quality monitoring

systems, continuous end-user behavior studies and end-to-end performance field

measurements.

Moreover, it is of great importance to analyze internal customer processes and

readjust them according to customer needs. Eventually, the need to be attuned to

the customer experience might lead to a new, customer-centric organizational

structure with clear responsibilities for end-to-end Quality of Experience (QoE).Who will have the overriding responsibility for end-user experience will vary

depending on the operators business model and organizational structure?

In order to prepare the organization for differentiation, the research firm

Forrester proposes that the marketing department should be made responsible for

the total customer experience.

Today, service providers offer data services that appeal to a very small proportion

of mobile users: the young and technology savvy. This group is also one that is most

prone to churn. Yet todays high ARPU (average return per subscriber) users are

arguably the customers to retain, as they will likely remain at high ARPU levels for

some years to come.


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5.1.1

Marketing Objective

Capture rural Indian market

Target school student Attract Customers to New technology

Enhance Distribution

Maximize our revenues

Maintain Customers Loyalty

5.1.2

Ease-of-Use

The main reason why data services have not yet achieved mass-market adoption isdue to the complexity perceived and experienced by end-users. The poor

reputation of data services increases the threshold of willingness for non-users to

experiment with data. Bad user experiences also inhibit existing users from

adopting new services.

5.1.2.1

Simplified Service Setup

Mass-market service usage can occur only if the technical barriers for end-users

have been overcome. Improving the initial phase of service delivery is a sure way to

increase the use of a mobile service, which will lead to an improved end-user

experience; higher revenues for service providers, operators and developers;

decreased customer care costs; and decreased churn rates.

Finding and subscribing to a service are the first hurdles for a potential user. End-

users expect the same effortless and easy access to services via a mobile phone asthey are accustomed to with other channels (e.g., Internet, TV). However, easy

access to a service is dependant on the users frame of reference. Some users

consider access via a branded Internet portal easy, while some users prefer a

browser menu on the device. Knowing your customers is the key to identifying the

most appropriate access channels and improving the efficiency of marketing.


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Service set-up and configuration is the crucial stage in the service adoption

process. Users often consider setting-up and configuring services the most tedious

part of service take-up. Studies suggest that users will abandon the service aftertwo or three failed setup attempts. As the number of functions on mobile sets

continues to grow, users find it increasingly difficult to configure and maintainservices and applications on their devices (see Fig.5.4). Focusing on delivering ease-

of-use in set-up and configuration is paramount in order to promote service

adoption and improve revenues from services.

5.1.2.2Simplified user interface

For an easy-to-use experience, service content must be undemanding and plain.

Ease-of-use comes from effortless navigation, with a simple structure that does

not require reading a user manual to be understood. Understandable terminology

used throughout the service session enhances the experience even further. The

user interface should have flexible content behind it, in the sense that the content

adapts seamlessly to different terminals. Ease-of-use is also created by minimizing

the users exposure to the underlying technology when using the service.

A simple and practical user interface, coupled with relevant content, is aprerequisite for a successful service concept. Any device offered as part of a

service must be carefully matched with the requirements of intended users. An

easy-to-use experience stems from a service concept that successfully combines

relevant content with a matching device. Handset functionality already includes

email, various types of messaging, and access to Internet and entertainment

functions. However, end-users experience the increasing functionality of handsets

as too complicated and are hesitant to use them. As such, complex handsets do not

by themselves promote increased service usage.

From the perspective of service management, ease-of-use means integrated

systems that feed service information into reporting systems that enable the

service provider to monitor and assess service usage online, in real-time.

Application developers must consider the scalability of applications in order to

deliver adaptability for different interfaces in devices and in the network.


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5.1.2.3

Clear Payment Method

The ease-of-use experience is also reflected in payment options and processes,which should be as effortless as possible. These processes include payments and

associated transactions, such as contracts required to access the service, as well

as procedures to make and confirm transactions. End-users favor suppliers that

can minimize the risks involved and maximize the users level of comfort and

confidence. The end-user should feel able to control spending and feel secure

about the services used. For convenience, users prefer to pay for services with

existing pre-paid or post-paid accounts.

5.1.2.4Easy access to Customer Support

Offering customer care is an essential part of an ease-of-use service experience.

The working customer care concept creates stickiness between the end-user and

the service provider. Customer support can be offered via a call center, by

providing automated self-service or through in-store support. The challenge is to

choose the customer support combination that best matches the specific service

proposition. For call centers, ease-of-use manifests in quick response, least number

of call transfers, transparent tariffs and knowledgeable personnel.The better the alignment in business processes, supporting infrastructure and

related call center processes, the better the capabilities for delivering superior

call center service.

Another contact point for users is often provided via a branded Internet portal.

An Internet portal is an attractive option because it supports end-users 24/7 and

is cost-effective for the service provider.

Users can access the portal to manage and modify their own account. Connection

stability and logical navigation with a minimal number of clicks determines the

ease-of-use experience in an Internet portal.

The third contact point for users is in-store support. This support is difficult toorganize and manage for quality as it is often outside of a service providers own

business realm. End-users often perceive in-store support as inadequate and not

fulfilling their needs. Many end-users complain about the service they have been

given while visiting an outlet.


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5.1.2.5

Simplified service termination

Termination of the service should be as simple as possible in order to lower thethreshold for a users willingness to test the service. A simple SMS or MMS

message should be adequate to terminate the service.

5.1.3 Product Life Cycle

A large untapped potential exists among the present base of non-users: the 10% of

existing customers who use services infrequently or do not use services at all, even

though they have the right mobile handset. In general, these mainstream users are

more loyal to their existing service provider, making them a group to reward for

their loyalty. Ease-of-use is one of the key factors when increasing customer

loyalty, which, in turn, will lower churn and eventually lead to a decrease inmarketing expenditures. Differentiation by ease-of-use experience will also have

an effect on increasing ARPU, because it speeds up the adoption of new services.

The more mainstream the target users, the more they value ease-of-use and

customer intimacy and seek practical uses for new services. The fact that ease-of-

use is particularly relevant to mainstream users makes it such an important

consideration. Making a service successful in the mainstream market has the

challenge for most existing services. Creating ease-of-use in services will help a

service provider to cross the chasm from the early market of innovators and

trendsetters to the mainstream market of average users (see Fig.5.5).

Services Life Cycle

Creating and implementing a business strategy that focuses on ease-of-use will

enable the service provider to increase service revenues. Naturally, strategies

across geographical regions and operators differ and it is not possible to copy

exactly from the experiences of others. Service uptake and usage differ vastly

depending on the stage of the overall society and service culture, main technologies

chosen, competitive market situation, maturity level of networks, and othernetwork lifecycle variables.


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5.2

Positioning Strategy

When Nokia positions its brand in the crowded mobile phone marketplace, its

message must clearly bring together the technology and human side of its offer ina powerful way. The specific message that is conveyed to consumers in every

advertisement and market communication (though not necessarily in these words) is

"Only Nokia Human Technolgy enables you to get more out of life"

In many cases, this is represented by the tag line, "We call this human technology".

This gives consumers a sense of trust and consideration by the company, as though

to say that Nokia understand what they want in life, and how it can help. And it

knows that technology is really only an enabler so that you-the customer-can enjoy

a better life. Nokia thus uses a combination of aspirational, benefit-based,

emotional features, and competition-driven positioning strategies. It owns the"human" dimension of mobile communications, leaving its competitors wondering

what to own (or how to position themselves), having taken the best position for

itself.

5.2.1

Nokia Product Design

Nokia is a great brand because it knows that the essence of the brand needs to be

reflected in everything the company does, especially those that impact the

consumer. Product design is clearly critical to the success of the brand, but how

does Nokia manage to inject personality into product design? The answer is that it

gives a great deal of thought to how the user of its phones will experience the

brand, and how it can make that experience reflect its brand character. The large

display screen, for example, is the "face" of the phone. Nokia designers describe it

as the "eye into the soul of the product". The shape of phones is curvy and easy tohold. The faceplates and their different colors can be changed to fit the

personality, lifestyle, and mood of the user. The soft key touch pads also add to

the feeling of friendliness, expressing the brand personality. Product design

focuses on the consumer and his needs, and is summed up in the slogan, "human

technology."


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Nokia now accounts for over half of the value of the Finland stock market, and has

taken huge market share from its competitors. According to one brand valuation

study carried out in mid-1999, it ranked 11th on the world's most valuable brandlist, making it the highest-ranking non-U.S. brand. As has been pointed out, it has

unseated Motorola. Nokia achieved its brilliant feat through consistent branding,backed by first-class logistics and manufacturing, all of which revolve around what

consumers what.

5.3

Promotion Strategy

"Push or Pull"?

Marketing theory distinguishes between two main kinds of promotional strategy -

"push" and "pull".

5.3.1

Push:

A push promotional strategy makes use of a company's sales force and trade

promotion activities to create consumer demand for a product. The Nokia promotes

the product to wholesalers, the wholesalers promote it to retailers, and the

retailers promote it to consumers.

For example Nokia promote their products via retailers such as CarphoneWarehouse. Personal selling and trade promotions are often the most effective

promotional tools for companies such as Nokia - for example offering subsidies on

the handsets to encourage retailers to sell higher volumes.

A "push" strategy tries to sell directly to the consumer, bypassing other

distribution channels (e.g. selling insurance or holidays directly). With this type of

strategy, consumer promotions and advertising are the most likely promotional

tools.

5.3.2

Pull:A pull selling strategy is one that requires high spending on advertising and

consumer promotion to build up consumer demand for a product.

If the strategy is successful, consumers will ask their retailers for the product,

the retailers will ask the wholesalers, and the wholesalers will ask the producers.


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5.4

Pricing Strategy

Nokia observes different pricing strategy for different range of product. The

main aim is to gain the market at rural village of India and maintain its customerfor Mid range phone.

5.4.1

Premium Pricing

Use a high price where there is uniqueness about the product or service. This

approach is used where a substantial competitive advantage exists. Such high

prices are charge for luxuries such as NOKIA E-series mobile phone.

5.4.2

Penetration Pricing

The price charged for products and services is set artificially low in order to gain

market share. Once this is achieved, the price is increased. This approach was used

Nokia on Model No. 1100 and 1108, in Indian rural market.

5.4.3

Economy Pricing

This is a no frills low price. The cost of marketing and manufacture are kept at a

minimum. Nokia follow it for its mid range Mobile phone. Normally it is to attract

middle income group.

5.4.4

Price Skimming

Charge a high price because you have a substantial competitive advantage.

However, the advantage is not sustainable. The high price tends to attract new

competitors into the market, and the price inevitably falls due to increased supply.

5.5 Distribution Strategy


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Mobile phones have become a major part of our everyday life. On the one hand,

Indias Mobile phone market has grown rapidly in the last few years on the back of

falling phone tariffs and handset price, making it one of the fastest growingmarkets globally.

Nokia is a world leader in mobile communications, driving the growth andsustainability of the broader mobility industry. Nokia connects people to each

other and the information that matters to them with easy-to-use and innovative

products like mobile phones, device and solutions for imaging, games, media and

businesses. Nokia provides equipment, solutions and services for Network

operators and corporations.

Nokia held a global market share of 34.2 percent at the end of January, according

to consultants strategy Analysis, while Motorola had 18.3 percent, Samsung 11.1

percent, and LG and Sony Ericsson 6.6 percent each. To illustrate Nokias

performances, more than one third worlds phone users use a Nokia phone. InIndia Nokia is the market leader, with a manufacturing facility in Chennai.

Understanding of distribution channel used by Nokia Distribution is the life blood

for an organization in order to make sales. The products are required to reach the

outlets for sales based on the demand for the product. Only if distribution channel

is effective products can reach the consumers, as well maintain or increase their

market share. This is very important, as there is intense competition in the market

from various other players, in order to stay ahead and meet the competition we

need to provide goods on time to the dealers to make sales and earn profits for

both company as well as outlets.Availability of goods and time is an essential for any organization this could be

done only by having good distributors and redistributors stockiest. Further the

company should take care of goods manufactured reach the distributor & the

redistributors stockiest on time. The company requires to have a regular check on

these channels if they working efficiently and take steps to further step to

improve. The company only stay ahead in profits, market share etc, only if their

products reach the outlets on time as well based on demand.

The project began with the basic understanding of how distribution of mobile

phones takes in the market by Nokia. Nokia works with the distribution of mobile

phones takes in the market by Nokia. Nokia works with the distributor, redistributor stockiest (R.D.S) and finally the retailer from whom the product is sold

to the consumer. Five forms of outlets sell Nokias products:


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6.

Distributors-:

i. HCL infosystem

ii. Bright point.

Outlets-:

i. Nokia priority dealers

ii. Multi brand outlets

iii. Reliance web world

iv. Reliance web world express

v. Tata true value shop.

Nokia Distribution Channels

Distributors:A) HCL Infosystem: During the last ten years, the HCL-Nokia relationship has

witnessed strong growth in the Indian GSM handset market resulting in a

significant market share gain for Nokia, and the increased need for a distribution

Network that will meet the projected market growth of 200 million subscribers by

2007. The relationship with Nokia has been a very satisfying one, and the

agreement between Nokia and HCL reaffirms Nokias commitment to the growing

Indian Market, to ensure that mobile devices are accessible to more consumers inthe cities and towns across India.

Mobile penetration is getting into the next phase of growth of which a major

portion is expected to come from smaller towns and remote locations. There is

clear pick up ion demand. The challenges ahead would be to penetrate deeper,

preserve market and in order to have much greater depth, align to global policy of

balanced channel mix and also to ensure that all possible channels are included, and

channel partners are well served so that growth opportunities are captured.The two companies have extended their agreement for another five years. This

strong relationship between these two players plays a crucial role in increasing the

sales as well to hold the market leader position in the market. Both entering thedistribution channels will in fact help the consumer to get the best product in the

nearest location in any part of the country.


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B) Bright point

It offers the most comprehensive selection of brands and products in the wireless

industry. Handset, Integrated devices, PDAs, etc. They also provide full selectionof OEM and aftermarket accessories, Modems and software. It distributes

product manufactured by the worlds leading handset manufacturer.Outlets:

a) Nokia priority dealers are exclusive show rooms for buying Nokia products.

These outlets are directly under the control and supervision of Nokia, which makes

them solely accountable to Nokia. NPDs are preferred outlets to buy Nokia

products, as they are their genuine dealers of its products. These outlets have the

complete portfolio of Nokia products existing in the market. The buying experience

the consumer enjoys is the better than any other outlet in the city.

b) Multi brand outlets are the outlets, which deal with all the company products in

the market. They provide service and space to all the competitors as they sell allthe products in the market. The major purpose is not to dissatisfy the consumers

entering the outlet and provide them with all the brands asked by him. The amount

of sales made is higher as well the profit earned is higher. The numbers of these

outlets are higher in the city.

c) Reliance web world are exclusive reliance outlets. They deal with reliance

products of providing connections and billing of the connections. These outlets also

sell mobile phones of various brands. The major aspect in these outlets is the stock

reaches these outlets directly from the company itself. The RDS has no role to

play other than providing these providing these outlets POS materials to theseoutlets.

d) Reliance web world express are also exclusive reliance outlets but are the

franchise outlets of Reliance. They also deal with reliance products of providing

connections and billing of the connections. These outlets also sell mobile phones of

various brands. The major difference between web world and express are the

stock that reaches these outlets. The RDS and his sales men provide both stocks

as well POS materials to these outlets.

e) Tata true values Shoppe are also exclusive Tata outlets but are the franchised

outlets. They also deal with Tata products providing connections and billing of theconnections. These outlets also sell mobile phones of various brands. The RDS and

his sales men provide both stocks as well POS materials to these outlets.


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7. Conclusion

Nokia being in a competitive market holds the market as a monopoly with its Uniqueidentity, Marketing Strategy and distribution policy. Through the Ease-of-use

concept, it will add a lot to Customer Value, which further helps Nokia in capturingthe market share in India.

Our goal is to be a good corporate citizen wherever we operate, as a responsible

and contributing member of society.

NOKIA definitely helps to come true for Middle Mans Dream

8. IMPLEMENTATION AND CONTROL

The objective of nokia marketing plan is to serve as reference for the

organizations. The following areas will be monitored to gauge performance:

Revenue: monthly and annual

Expense : monthly and annual

Customer satisfaction

Sales growth by 10 percent annually


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9. CONTINGENCY PLANS

Difficulties and risks

Slow sales resulting less than projected cash flow

Unexpected and excessive cost increase compared to the forecasted sales

Overly aggressive and debilitating actions by competitors

Significant economic downturns

Worst case risk include

Liquidate asset to cover marketing expenses and liabilities

Determining the product cannot support itself on ongoing basis

marketing plan of no-kia by Abby

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