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CHAPTER
INTRODUCTION
BACKGROUND OF STUDY
SIGNIFICANCE
OBJECTIVES
RESEARCH METHODOLOGY
FINDINGS
QUESTIONNAIRE
CONCLUSION
BIBILIOGRAPHY
PAGE NO.
1. INTRODUCTION
knowledge;
knowledge
gained
through
relationship
There are a number of working definitions for CRM. In fact the letters
CRM have been used to iden- tify Continuous Relationship Marketing,
Customer
Relationship
Marketing
and
Customer
Relationship
activity
founded
on
intimate
customer
knowledge
Nokias way towards CRM Nokia, owing to its vast portfolio of products and
services and multiple channels has corresponding ways of answering to a
successful CRM. Its strategies include:
Product development through Customer-Centricity (in product designing).
Distribution- Company owned and third party.
Ease of Servicing.
Ease of Product Knowledge.
independent companies, The Finnish Rubber Works and The Finnish Cable
Works in 1967 to form the Nokia Corporation, Oy Nokia Ab. This merger
was both practical and strategic and allowed for the new corporation to focus
on four major business divisions: forestry, rubber, cable and electronics
1980s to today Mobile Information
The rapid expansion of Nokia led to a 65% debt-to-equity ratio and an
internally sprawling organisation. By the mid-1980s the company consisted
of eleven industrial groups, each with its own vision for the future. By 1986,
Nokia owed $2.6 billion of debt, and was in need of a major restructuring. A
new CEO was appointed - Simo Vuorilehto. Vuorilehto deemed it imperative
to maintain Nokias core focus; his primary step was to divest all of Nokias
non-strategic businesses. Despite its earlier growth, the later 1980s were a
challenging period for Nokia. It witnessed sharp falls in its revenues and
share price after a national recession and the collapse of the Soviet Union,
which had been an important market.
Nokias Restructuring
As early as 1997, Nokia realized that the future of mobile telephony would
lie in its integration with the Internet. Ollilas vision for Nokia was that of
becoming a pioneer in Internet- enabled telephony, whilst maintaining
Nokias current position as the growing global giant of mobile handsets.
Ollilas move was seen as bold, and one that could jeopardize Nokias stance
as a global leader in cellular communications. Nonetheless, Ollila believed
the companys goal of expanding global market share was dependent on
manufacturing what he felt consumers would increasingly demand: a mobile
phone combined with Internet capability. This made the move into an
unpredictable
and
increasingly
competitive
technological
market
unavoidable. It would also make Nokia the early dominant player in a market
segment that would come to be called Smartphones. Pre 1997, Nokias
business strategy was one that focused upon globalisation, which proved
successful in the creation of a strong brand name, recognizable in both
international and domestic markets. Nokia had become a household name
from the US and Germany to China and Brazil. Nonetheless, a growth model
based upon establishing a brand name rather than the development of new
technology was unsustainable. Nokia recognised this and restructured its
growth plan accordingly, centering its future strategy around two
fundamental features of the information revolution: the internet, and
consumer demand for greater levels of mobility
2. BACKGROUND OF STUDY
Clearly stated strategic objectives, the third step of strategy management,
outline the position in the marketplace that the firm seeks. Performance
targets state the measurable milestones that the firm needs to reach or obtain
to achieve its strategic objectives.
Some strategic objectives relate to the positioning of goods and services in
the competitive marketplace while others concern the structure of the
company itself and how it plans to produce goods or manage its operations.
Typical strategic objectives involve profitability, market share, return on
investment, technological achievement, customer service level, revenue size,
and diversification.
In order to make strategic planning work, the goals, missions, objectives,
performance targets, or other hopes of top management must somehow be
made real by others in more distant locations down the organizational chart.
Merely communicating to each member of the business the vision that top
management has for the firm is not sufficient. Strategic objectives and
performance targets should penetrate every corner of the organizational chart.
There should be a hierarchy of strategic management starting with the highest
levels of the firm, from which it is consistently translated from level to level
so that each department knows what its contribution to the overall mission of
the firm is to be. This process should end with each individual in the firm
having strategic objectives and performance targets tailored to their specific
role in the firm.
3. SIGNIFICANCE
This research studies the marketing strategies of Nokia, a high technology
company in a developing country India. The study attempts to check the role
of CRM success of Nokia in India. After studying the past of the company
and the history of Indian mobile industry, Nokias CRM are examined
through secondary resources.
Then to check the effect on the consumers, semi-structured interviews of a
few mobile phone dealers in India are taken. Here, interviews as a tool of
qualitative research is adopted to create a deep understanding of the
customers perceptions. To get a generalized view, mobile phone dealers are
interviewed as they deal with many consumers and can give the opinion of
the market as a whole.
The findings advised that consumers preferred Nokia over all other brands
due to features of the phone. Features such as user friendliness, rough and
tough body, long life etc. were believed to be the reasons of success.
Customer Relationship management is the strongest and the most efficient
approach in maintaining and creating relationships with customers. Customer
relationship management is not only pure business but also ideate strong
personal bonding within people. Development of this type of bonding drives
the business to new levels of success.
Once this personal and emotional linkage is built, it is very easy for any
organization to identify the actual needs of customer and help them to serve
them in a better way. It is a belief that more the sophisticated strategies
4. OBJECTIVES
The strategic mission of an organization embodies a long-term view of what
sort of organization it wishes to become. The value to management is of
having a lucid mission statement. The second step in strategy formulation can
be in rendering tangible the firm's long-term course and in guiding decisions
toward a rational design. Among the elements that are key to a good mission
statement are a statement of corporate values and philosophy, a statement of
the scope and purpose of the business, an acknowledgement of special
competencies, and an articulation of the corporate vision for its future.
The main objectives for undertaking this project are:
The main objective is to study about the future strategic choice of
Nokia.
To know sustainable and reliable strategy that evaluates the current
strategic position, and the recent past strategy development history of the
company
This project will help me to get in-depth knowledge about the academic
theories and concepts used to evaluate the strategic position of a
company and to formulate a future strategy for a company.
It also helps me to identify the gap between literatures and practice.
Reasons for setting marketing objectives
The reasons for setting any objectives are the same, regardless of the
functional area being considered. These reasons are:
To act as a focus for decision making and effort
5. RESEARCH METHODOLOGY
Sampling Area: The area of the research for sample companies was in
India.
Sample Size: The sample size was around all of them were users of
mobile phones.
5.3 Field Work
The survey was done in public places like restaurants, outside offices and
near colleges.
6. FINDINGS
Limitations:
1. During interview I found out that the customers have a blind faith
regarding Nokia India which we could not explain in quantitative terms.
2. The respondents were biased to some extent with the respective brands.
3. The research was limited to only 153 respondents whereas in reality the
universe is too big. Hence statistical data might change if we further increase
the sample size.
4. The accuracy of the some data is indeterminate as few respondents were
ignorant and hesitant towards their response.
5. Time and money was another constraint in my project completion.
7. QUESTIONNAIRE
Q.1 Do you think Nokia handsets are equipped with the latest features?
a)Always b) many times
c) sometimes
d) Never
b) NO
Q3. Do you think Nokia mobiles are user friendly? Rate it on a scale from 1
to 5 (1 being the lowest and 5 being the highest).
a)1
b) 2 c)3
d) 4 e) 5
Q.4 How do you rate Nokias after sales service compared to other
companies?
(Rate it on a scale from 1 to 5 (1 being the lowest).
a)1
b) 2 c)3
d) 4 e) 5
b) NO
Q7.Except Nokia what are your other preferred mobile phone brands?
a)Sony
b) LG
c) Motorola
d) Micromax
e) BlackBerry
f) Others
Q8. What was the primary reason behind changing/not owning a Nokia
handset?
a) Availability of other mobile phones with better features
b) Nokia handsets were too costly
c) Brand loyalist to some other brand
d) Bad service Encounter (only for those who had owned a Nokia handset in
the past)
e) Any other reason
8. CONCLUSION
This chapter concludes the study by highlighting the key findings of the study
and then some recommendations for Nokia for future. Then the chapter
discusses to the limitations of the study and endows the suggestions for future
research.
The aim of the study is to critically analyze Nokias marketing strategy in
India and to examine the effect on its sales. For this purpose secondary
sources were used to collect the information of marketing strategies and
semi-structured interviews of mobile phone dealers in India were conducted
to check the market response of Nokia.
The conclusions that could be drawn were, the main drivers of sales of Nokia
are the product features. The marketing strategy though aggressive and very
customer specific was not the prime force towards the sales. The prices of
Nokia phones are competitive but they are not the price leaders. However,
much information on the distribution network could not be gathered.
There is need for Nokia to differentiate itself from the past. This should be
done by becoming more customer-friendly to the Asian markets. Nokia
should project itself more aggressively to the low end, mass market with its
low range (but hi-quality) products. There is also a need to develop a PDA
phone for its high range customers. Over the time, quality has been Nokias
success factor. They have developed a brand name, and the consumers have a
high brand preference. There is need to in-cash on this by continuing to
launch the good quality products. The major drawback was not up to the
mark after sales customer services.
a. Responses from the sample indicate Nokia lacks far behind its competitors
in terms of innovation and new features.
b. Respondents found the Nokia phones are readily available. Hence
distribution is one the strengths of Nokia India
c. Majority of the responses indicate that Nokia has done pretty well in the
facet of user friendliness in its mobiles.
d. More than half of the respondents felt Nokia provides an excellent after
sales service.
e. User-friendly interfaces of mobiles and brand name were the top most
factors for buying a Nokia Mobile.
f. Surprisingly, close to 2/3rd of the respondents felt that Nokia Mobiles were
overpriced.
g. Sony and LG were the preferred alternatives when Nokia mobile is
unavailable.
h. High price and brand loyalty to competitors brands were the main reasons
of respondents for not owning Nokia Mobiles.
9. BIBILIOGRAPHY
http://www.about-nokia.com/history/
http://r2.nokia.com/nokiahistory/index.html
http://www.messiah.edu/academics/irb/forms/Federal%20Definition
%20of%20Research.pdf
http://www.economictimes.indiatimes.com