Contents

Declaration Preface 1. Introduction 1 . 1 R e v i e w o f L i t e r a t ur e 1.2 Objective of the study 1.3 Methodology 1 . 4 L i mi t a t i o n s o f S t u d y 2. Introduction 2.1 Nokia 2.1.1Nokia Vision/Mission Statement 2.1.2 About the Company 2.1.3History of Nokia 2.1.4Company Profile 2.1.5SWOT Analysis 2.2Introduction to Marketing 2.3Market Segmentation 2.3.1Considerations for Market Segmentation 2.3.2Segmentation Basis 2.3.3Effective Segmentation 2.4Market Segmentation for Nokia 2.4.1Segmentation of Nokia 2.4.2Nokia mobile phones by Series 2.4.3Lifestyle and Psychographic Basis for Nokia 2.4.4The Segmentation of Nokia conducted on the basis of Price 3.Analysis and Interpretation 4. Conclusion 5. Recommendations 6. Bibliography 7. Annexure

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Introduction The company I have chosen to analyse in my project 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 were 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, demandsupply management and the companys ability to offer end-to-end solutions. Nokia is making good progress in these areas, and is now better positioned to meet future challenges.

Nokia Vision/Mission Statement

Our Vision A world where everyone can be connected. In 2015, 5 billion people always connected, and 100 fold more network traffic. Its a world of experiences, shared experiences.

Our Promise We help people feel close to what matters to them. One of our basic needs as human beings is the need to communicate and share. Our promise is to help fulfil this need, to help them feel close to what matters to them.

Our Approach Consumer understanding drives us. We observe first, then design. We act on our consumer insights. We take a very human approach to technology 1. Simple 2. Reliable 3. Intuitive 4. Experiences to fall in love with. Internet is our quest. Internet innovation, creativity, media and services will be available anytime, anywhere. Nokia wants to bring the best of internet to mobile . Our Resolution-Grow, Transform, Build Grow the number of people using nokia devices. Transform the devices people use. Build new businesses Our business and peoples expectations for mobile devices and services are changing. Nokias promise is to help people feel close to what matters to them.

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 highend mobile phones, which are scheduled to retail by the end of 2005.

History of Nokia Nokia's history started in year 1865, when engineer Fredrik Idestam established a wood-pulp mill in Southern Finland and started manufacturing paper. Due to the European industrialization and the growing consumption of paper and cardboard Nokia soon became successful. In 1895 Fredrik Idestam handed over the reins of the company to his son-in-law. Nokia was Actually founded in 1965 by Fredrik Idestam in Finland as a paper manufacturing company. In 1920, Finnish Rubber Works became a part of the company, and later on in 1922, Finnish Cable Works joined them. All the three companies were merged in 1967 to form the Nokia Group. Nokia created the NMT mobile phone standard in 1981 and launched the first NMT phone, Mobira Cityman, in 1987. The company delivered the first GSM network to Radkilinia, a Finnish company in 1991, and in 1992, Nokia 1011 - a precursor for all Nokias current GSM phones - was introduced. In the 1990s, Nokia provided GSM services to 90 operators across the world. Another significant move of the company during this period was the divestment of its non-core operations like IT. The company focused on two core businesses - mobile phones and telecommunications networks. In the 1990s, Nokia provided GSM services to 90 operators across the world. Another significant move of the company during this period was the divestment of its non-core operations like IT. The company focused on two core businesses - mobile phones and telecommunications networks. Nokia's history contains many achievements that were the first of their kind in the world. Many milestones have been experienced in the mobile phone business since the 80s. The success with the NMT and GSM technologies and the products they spawned secured Nokia's position as the world's

leading telecommunications company. The list of Nokia's milestones provided a good insight in the history of wireless communications. Nokia has been involved in making the world's first NMT network and the world's first pocket-sized mobile phone. The world's first device to use the Symbian OS was also produced by Nokia. Nokia was able to offer advanced products from the beginning of the 90s. Early investments in R&D were thus handsomely rewarded. Nokia ensured its continued growth by reforming its production in the middle of the 90s. The new phone models and standardized technical solutions made it possible to produce an increasingly extensive product range more effectively. The extensive range of mobile phone models, covering all user groups, is one of the reasons why Nokia became the market leader.

Company Profile Nokias first century:1865-1967 The first Nokia century began with Fredrik Idestam's 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. 1912: Finnish Cable Works founded Arvid Wickstrom 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.

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. 1982: Nokia makes its first digital telephone switch The 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.

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. 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.

Nokia now:2000-today Nokias story continues with 3G, mobile multiplayer gaming, multimedia devices and a look to the future... 2002: First 3G phone 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 Nseries is born Nokia introduces the next generation of multimedia devices, the Nokia Nseries. 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.

SWOT Analysis
SWOT Analysis, is a Strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a Project or in a Business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. SWOT Analysis of Nokia Modern SWOT Analysis A SWOT analysis conducts an external and internal scan of Nokia's business environment, it is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S), or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis. The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection.

Strengths Is a dominant player in the smart phone market via its majority ownership of Symbian and its proprietary Series 60 user interface which are projected to represent majority of the 100M smartphones sold in the next 4 years. 33% market share still the largest cell phone vendor by far, with double the market advantages Brand position: probably one of the top 20 brands in the world share of nearest competitr Size should enable Nokia to amortize R&D costs and to get cost

Weaknesses The N-Gage is considered a flop

Being the market leader and its increase role in Symbian is giving Nokia a bad image, much like Microsoft in the PC industry. Slow to adopt new ways of thinking: a good example are clamshell phones which are preferred by many customers. Nokia was reluctant to produce a clamshell until this year, when it launched its first model.

Opportuntiies Increase their presence in the CDMA market, which they are just entering, as well as 3G and Edge New growth markets where cell phone adoption still has room to go, including India and other countries. Leverage its infrastructure business to get preference and a stronger position with carriers

Threats Late in the game in 3G creates a risk to be displaced by leaders like Motorola, nGo Bird)

LG, NEC and

others.

Asian OEMs who are entering the market very aggressively (TCL, ODMs (HTC and others) enabling carriers to leverage their customer power bypassing the handset vendor. Operators want to lessen their dependency on handset vendors and the dominance of Nokia. Orange, O2, and many other operators globally are selling their own brand of phones.

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.

Recommendations
I would like to provide certain recommendations towards this Project report. They are as follows: I would like to suggest that the Marketing areas for Sales should be increased. They should try to adopt new strategies to regain whole sales force in the market. As far as launching of new models is concerned, the Company should try to offer sales of such products at an affordable Price. The Company should try to bring more attractive offers & discounts to the customers of segments to make them more brand loyal towards them.

Bibliography

Websites visited:

www.nokia.com http://www.nokia.com/about-nokia/company

www.google.com http://www.google.co.in/#hl=en&source=hp&q=market+segmentation +of+nokia&meta=&aq=7&aqi=g10&aql=&oq=market+se&gs_rfai= &fp=fe4cbc854b7cd67d

www.scribd.com http://www.scribd.com/search? cat=redesign&q=project+on+nokia&sa.x=43&sa.y=15