A

RESEARCH REPORT
ON

“MARKET SEGMENTATION”
SUBMITTED IN THE PARTIAL FULFILLMENT OF COURSE FOR THE

AWARD OF

THE DEGREE OF MASTER OF BUSINESS ADMMINISTRATION

Dr. A.P.J Abdul Kalam Technical University, Lucknow

2017-19
Submitted To Submitted By
Mr. Himanshu Goel AMIT KUMAR
Roll no-1708570007
MBA 4th Sem.

S.D. COLLEGE OF MANAGEMENT STUDIES

MUZAFFARNAGAR
 ACKNOWLEDGEMENT

No task is single man’s effort. Any job in this world however trivial or tough cannot be
accomplished without the assistance of others. An assignment puts the knowledge and experience of an
individual to litmus test. There is always a sense of gratitude that one likes it express towards the
persons who helped to change an effort in a success. The opportunity to express my indebtedness to
people who have helped me to accomplish this task.

I am thankful to director sir Dr. ALOK KUMAR GUPTA (Principal), for granting me the permission
to undertake the study. I would like to convey thanks to Mr. Himanshu Goel for ready assistance, keen
interest and valuable suggestions.

Last but not least it would be unfair if I don’t extend my indebtedness to my parents and all my
friends for their active cooperation which was of great help during the course of my training project.
 DECLARATION

I, Amit Kumar of MBA 2 Year, hereby declare that the project title “Market Segmentation” is completed
and submitted under the guidance of Mr. Himanshu Goel. This is my original work and not been
published or printed for any other purpose. The imperial finding in this project is based on the data
collected by me.
 CONTENTS

1. Introduction
2. Objectives of study
3. Scope of the study
4. Review of Literature
5. Research Methodology
6. Analysis of Data
7. Findings
8. Conclusion
9. Recommendation & Suggestion
10. Limitations
Bibliography
 INTRODUCTION TO THE PROJECT

 TITLE OF THE PROJECT

 OBJECTIVES OF THE STUDY

 SCOPE OF THE PROJECT

 METHODOLOGY

 LIMITATION OF THE STUDY

Introduction to Project:-

This Project deals with Various Marketing Strategies used in Mobile

Industries. This Project mainly focuses on Various Strategies that are been
used by Nokia Co Ltd in the Market.

● Ti t l e o f t h e S t u d y : -

The present study is titled as,

“A PROJECT REPORT ON ROLE OF VARIOUS MARKETING

STRATEGIES USED IN MOBILE INDUSTRIES”

The study is made with special reference to

‘NOKIA PRIORITY DEALER SHOP’ (THANE-W)

● Period of the Study:-

The period of the present study from 2004 to 2006

● Data and Methodology:-

For the purpose of the present study, both primary data

and secondary data were used. Primary data is collected by
visiting “NOKIA PRIORITY DEALER SHOP” [Thane (West) Branch]
Secondary data are collected from Books, Internet, Magazines
 Objective of the Study :-

The objectives of the present study are:-

 1) To get the better view of Various Marketing Strategies used in Mobile
Companies
2) To know the facilities provided by Nokia Company to its Customers
3) To know the special schemes designed by the Nokia Company &
especially for the benefit of the Customers.

● Limitations of Study:-

1 ) The study is based on the information provided by Nokia ‘s Mobile

Strategy
2) The present study suffers from all the limitations of
case study method.

INTRODUCTION

Most of marketers agree that a business should be customer-focused in order to achieve the
organizational objectives at all levels. Thus, most strategists try to design strategies that can
better serve the target market. But, before designing strategies, they must well recognize the
prospective market, customers’ needs, characteristics, preferences and different buying
patterns. Then, they should combine the like-minded customers with each other in groups to
represent segments of the market. This process is called ‘market segmentation’.

Market segmentation is a process by which a strategist can divide the market into like-minded
groups and put specific variables for segmentation which are based on the differences between
customers (Hooley, Piercy and Nicoulaud, 2008:206). Thus, it is a critical tool for accurate
recognition of prospective customers’ needs and responding accordingly. However, not all
businesses are satisfied with market segmentation as a concept although they really know the
logic behind it. This is because segmentation may be difficult to apply in some markets or may
be given more attention than the market itself (Wilson and Gilligan, 2005:318).

Therefore, a research for Lazarus Research Group (2006) has suggested a specific group of
requirements that must be achieved by a strategist so as to create efficient and effective
market segmentation.

Thus, this paper will discuss the underlying requirements for accurate market segmentation.
The topic will be discussed in a simple way that defines each requirement, suggest optimal tools
for achievement and purpose of every single requirement. In addition, the information used in
the discussion and explanation are very valuable because it is obtained from different resources
to view the topic from diverse perspectives. What about an introduction for the issues used

Explain the underlying requirements for market segmentation.

Customer needs should be put at the heart of market segmentation process. But, how a
strategist can recognize these needs and how he or she best serves the target customer.
First, define the market as follow:

a. Measuring the market share and market growth (McDonald,MSC,2010):

Strategists should wisely estimate the current market share, in terms of value and size,
and the expected future growth rate to be able to assess the attractiveness of the
potential market. In this context, the strategist tries to weigh the expected net profit
compared to the costs incurred in the segmentation process in an attempt to assure
whether the segmentation will be profitable, or not.

b. Recognize the relevant competitors(McDonald,MSC,2010):

Strategies should identify the key competitors in the prospective market and study them
very well to be capable of assessing the level of competition within the market. By
collecting such information, they become ready to fight against the prospective
competitors.

c. Identify the firm’s current competitive position:

Developers must recognize the firm’s strength among other competitors within the
market so that they can judge whether a firm is qualified for the existing competition, or
not. More importantly, if the firm is not qualified to fight against the current
competitors, strategists should start to develop both short-run and long-run strategies.
Short-run strategies may be difficult to be attained because of high costs incurred, but it
will help a firm compete in a shorter time. Still, they are not enough for maintaining a
competitive advantage over other players in the market, so a great effort should be
done in the formulation of long-term strategies, taking into consideration the current
situation of the firm against other firms within the market.

d. Identify the nature of the market (Lazarus,2006:2):

Strategists ought to study the nature of market, meaning that recognizing whether the
market is dominated by a Business-To-Business market (B2B), a Business-To-Consumer
(B2C) market, or a combination of both types. B2B market is a market in which a firm is
selling its products or services to another company, whereas B2C market is the one
where a company is selling its products or services to a consumer. Therefore, an
assessment for the differences between both markets is highly recommended to be
conducted in order establish an effective market segmentation strategy that better
serves the needs of prospective consumers. This is because this assessment will provide
the strategists with a clear understanding of the key differences already existed
between B2B and B2C markets. For instance, the number of customers served in B2B
market is small, whereas it is large in the B2C market.
Purpose of the previous group of requirements:

In addition to the stated reasons for every single requirement, there are common purposes for
the previous whole group of requirements. This group can provide a rich understanding for the
market structure in three critical areas which are consumers’ perceptions of brands, estimation
of the current demand for a specific product and the ability to predict consumers’ responses to
new and modified products accordingly (Wilson and Gilligan, 2005, p.328). As a result, a
strategist can convert such an understanding to a basis for segmentation strategy.

Some suggested tools for implementing the previous requirements:

Wilson and Gilligan (2005:322) suggested a formal procedure that helps in collecting
information about such requirements which has three steps as follow:

I. Survey stage: in such a stage, the researcher collects the required information about
brand awareness and its ranking among competitors, popular usage behaviors and
consumers’ attitudes of a specific product.

II. Analysis Stage: here the researcher tries to recognize specific groups within the market.
Each group share similar characteristics among its members and is differentiated from
other groups within the market. After that, each group will be called a segment which is
one of the obtained results from market segmentation.

III. Profiling Stage: this stage is the last one where the researcher collects the shared
characteristics of each segment in a profile that is recommended to be given a
distinctive name from other profiles.

Second, the strategist must determine the actual reasons for market segmentation:
The reasons behind segmentation may be one of the following reasons, a combination of them,
or not (Lazarus, 2006, p.3).

a. increasing profits, sales or return on investment,

b. organizing or centralizing customer base,

c. opening a new business,

 d. repositioning existing products or analyzing customers, and

e. introducing new products

The determination of the real reasons for segmenting the market in an earlier stage will be very
beneficial in choosing the suitable methods and approaches of segmentation. By the accurate
determination of the reasons behind segmentation, a firm will be able to decide on the best
way to enter the prospective market. This way may be either introducing a single product for
multiple segments, or multiple products to multiple segments (Lazarus, 2006:3). The first
method, that is one product to multiple segments, is based on the different suggested packages
for different segments. By using this method, a firm design different promotion and distribution
programs that make the product suitable for the largest possible number of the potential target
market. In contrast, the second method of introducing many products to many segments is
based on an extensive research for the market to identify the current needs and respond by
production and introduction of the new products accordingly.

Therefore, a strategist has to determine whether a firm will introduce a single product or many
products. Taking such a decision is not easy, so a strategist must first consider the costs and
benefits of each method as follow:

a. A single product to multiple segments method:

This method is very simple since it avoids the high costs that may be incurred for the
extensive research and introduction of other versions of the product. Although it is easy
and simple to apply, it can be very risky because the market, partially or entirely, may
not accept this product. Thus, a product needs to be differentiated and innovative
enough to protect the firm from falling in such a trap.
b. A multiple products to multiple segments:

This method is more complicated than the other method as it requires more expenses
for the research, development and introduction for different versions of a product. It
may have risk lower than the other method as it introduces a diversified group of
products that maximize the opportunities for sales.
In fact, each method has advantages and disadvantages, so the wise strategist is the one who
decides on a method which can be profitable and cost-effective and above all, serve the
customers’ needs. By the wise choice of one of these methods, the firm has organized its
products portfolio.

Still, a firm needs to organize its customers into segments, so it has to select the suitable
segmentation approach that will help the strategist use the obtained information from the
above requirements. The choice decision should be based on the amount of knowledge
acquired about the market (Wilson and Gilligan, 2005:325). For instance, if the results of the
above used procedures give the strategist a rich understanding for the market, the strategist
may use an approach called an a priori approach may be used. Whereas, if the above
procedures, for information collection, do not give the strategist enough knowledge or assured
facts about a specific market, the strategist ought to use post hoc approach. Wilson and Gilligan
(2005, p.324) has explained the two methods as follow:

a. An a priori approach:

An approach in which a strategist decides on the basis be used in the segmentation

process before the starting of doing the research. This decision cannot be taken if the
strategist does not have enough understanding for the market. Hence, this method is
used only by the strategist who understands the market very well. By the use of such an
approach, buyers will be classified either on:

1. the basis of usage patterns (heavy, medium, light and non-users) as in the case of
the industrial or the Business-To-Business markets,

2. demographic characteristics ( age, sex and income) as in the case of the Business-To-
Consumer market, and
3. psychographic profiles (lifestyle and personality) as also in the case of consumer
market

After the choice of one or a combination of the above bases, the strategist becomes
ready to use the chosen bases in identifying every single detailed related to the
prospective customers such as their location and potential size.
b. Post hoc approach:

This approach is very dissimilar from the other approach as the basis for segmenting the
market is chosen after the ending of conducting the market research. This means that
the research findings are the key determinant for the used basis in segmentation.
Consequently, it may have greater risk than the other method as it can be beneficial only
if the obtained information about the market is complete and consistent. Nonetheless, if
the research findings are partially or entirely doubtful, the determined basis for
segmenting may cause a misunderstanding for the market. Misunderstanding of the
market can lead to a surprise decline in a firm’s sales. For example, if a firm is operating
in a market that puts the high quality products on the top of their choices, and for some
unknown reasons, the market research found that the price of a product is the key
determinant for choosing any product in this market. As it is illustrated in this example,
the research has found a result other than what is actually existed in the market.

Thus, the strategist must carefully determine the suitable approach whether the first
one, the second one, or a combination of both.

By doing so, the all the requirements discussed by Hooley, Piercy and Nicoulaud
(2008:211) can be easily implemented. These premises are as follow:

 There must be differences between customers which lead to different buying

patterns so that the strategist can use these differences as a basis for market
segmentation. All these differences can be simply concluded from the use of either
an a priori or post hoc approaches.
  The segment target should be recognized carefully in terms of size and value. This
can be assured from the above requirement of measuring the market share and
market growth.

 The selected segments can be isolated from the rest of the market by the clear
understanding of the market by the researcher. This is to provide a distinctive
offering for the selected segments.

The company I have chosen to analyse in my project is the Finnish mobile

phone giant NOKIA. This Chapter tells us briefly what Nokia actually is, its
company structure and overall view on the size and sales of the company &
also the Various Marketing 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.”2 In the year 2004 Nokia’s net sales for mobile phones were 18
507 million euro, which went down 12% from 2003. Nokia’s market areas
were Europe/Africa/Middle East (55% of net sales), Asian Pacific and China
(25%) and Americas (20%). Nokia’s 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%. 3
The average number of personnel for 2004 was 53 511. At the end of 2004,
Nokia employed 55 505 people worldwide. In 2004, Nokia′s personnel
increased by a total of 4 146 employees. Nokia’s 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 company’s ability to offer
end-to-end solutions. Nokia is making good progress in these areas, and is
now better positioned to meet future challenges.

COMPANY PROFILE
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 Nokia’s 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 80’s. 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.
INTRODUCTION TO MARKETING

"Marketing is the process of planning and executing the conception, pricing,

promotion, and distribution of ideas, goods, services, organizations, and
events to create and maintain relationships that will satisfy individual and
organizational objectives." The new definition of marketing, as released by
the American Marketing Association is:-

Marketing is an organizational function and a set of processes for creating,

communicating and delivering value to customers and for managing
customer relationships in ways that benefit the organization and its
stakeholders.

"Marketing is a social and managerial process by which individuals and

groups obtain what they need and want through creating and exchanging
products and value with others." (Kotler & Armstrong 1987)

The Mission of marketing is satisfying customer needs. That takes place

in a social context. In developed societies marketing is needed in order to
satisfy the needs of society's members. Industry is the tool of society to
produce products for the satisfaction of needs.

Marketing is one of the most important functions in business. It is the

discipline required to understand customers' needs and the benefits they
seek. Academics does not have one commonly agreed upon definition.
Even after a better part of a century the debate continues. In a nutshell it
consists of the social and managerial processes by which products (goods
or services) and value are exchanged in order to fulfill the needs and wants
of individuals or groups. Although many people seem to think that
"Marketing" and "Advertising" are synonymous, they are not. Advertising is
simply one of the many processes that together constitute Marketing.
FUNCTIONS OF MARKETING:-

 Market research

 Advertising and sales promotion

 Public Relations

 Selling

 Servicing

 Methods of payment and credit

Advantages
 identifies needs and wants of consumers
 determines demand for product

 aids in design of products that fulfill consumers needs

 outlines measures for generating the cash for daily operation, to

repay debts and to turn a profit

 identifies competitors and analyzes your product's or firm's

competitive advantage
  identifies new product areas

 identifies new and/or potential customers

 allows for test to see if strategies are giving the desired results

Disadvantages
 identifies weaknesses in your business skills
 leads to faulty marketing decisions based on improperly analyzed
data

 creates unrealistic financial projections if information is interpreted

incorrectly

 identifies weaknesses in your overall business plan

Levels of Marketing

Strategic Marketing attempts to determine how an organization competes

against its competition in a market place. In particular, it aims at generating
a competitive advantage relative to its competition.

Operational Marketing executes marketing functions to attract and keep

customers and to maximize the value derived from them, as well as to
satisfy the customer with prompt services and meeting the customer
expectations. Operational Marketing includes the determination of the
marketing mix.
The Social Function of Marketing

In modern society production and consumption are apart from each other.
Marketing connects them. From the societal point of view, marketing is a
philosophy which shows how to create effective production systems and
consequently prosperity.

Business is a subsystem of society, which has both a social and an

economic role. Thus, a company must operate in a way that will make
possible the production of benefits for society and, at the same time,
produce profits for the company itself. (Davis, K. et al. 1980) The role of
marketing in society means also responsibilities. In addition to economic
and social responsibility, ecological responsibility is nowadays emphasized.
According to some definitions, environmental responsibility is part of social
responsibility. Improvement of marketing is related to the changing
emphases of economic, social and environmental responsibility.
Goodpaster and Matthews (1982) analyse three patterns of

thought which can be distinguished for a company's social responsibility: 1.

The invisible hand; 2. The hand of government; and 3. The hand of
management.

1. The invisible hand view (promoted by e.g. Milton Friedman) concludes

that the only social responsibilities of business organizations are to make
profits and to obey laws. Free and competitive market-place will ensure the
moral behaviour of companies. The common good is best served when
individuals and organizations pursue competitive advantage.
2. The hand of government view (promoted by e.g. John Kenneth
Galbraith) concludes that companies are to pursue rational and purely
economic objectives. It is the regulatory hand of the law and political
process which guides these objectives towards common good.

3. The hand of management view (presented by Goodpaster & Matthews)

would put the responsibility of a company's actions into the hands of the
company itself. It is concluded that the moral responsibilities of an
individual may be projected into an organization, and that the concepts of
an individual's responsibility and a company's responsibility are largely
parallel. Therefore, organizations should be no less or no more responsible
than ordinary persons.

The Traditional and Integrated Functions of Marketing

Traditionally, marketing has been seen as a link between production and

customer. The situation could be captured better by using the term selling.
Selling is associated to the so- called "Production and Sales Eras of
Marketing". Slogans: "Make what you can make" and "Get rid of what you
have made" describe the traditional view of marketing/selling.

The following figure shows the role of traditionally oriented marketing in

(traditionally oriented) management.

Marketing was born out of a need to take better into consideration the
demand factors in production planning. The function of marketing is to
channel information of consumer needs to the production and satisfaction
of needs to consumers. The basic power of marketing is the aspiration to
produce and sell only that kind of products which have demand. Marketing
integrates the whole company to serve this demand. Marketing aims at
effective production systems, where information is transmitted effectively
between production and consumption.
Market Segmentation

Market segmentation is one of two general approaches to marketing; the

other is mass-marketing. In the mass-marketing approach, businesses look
at the total market as though all of its parts were the same and market
accordingly. In the market-segmentation approach, the total market is
viewed as being made up of several smaller segments, each different from
the other. This approach enables businesses to identify one or more
appealing segments to which they can profitably target their products and
marketing efforts.
The Market-Segmentation process involves multiple steps. The first is to
define the market in terms of the product's end users and their needs. The
second is to divide the market into groups on the basis of their
characteristics and buying behaviors.
Possible bases for dividing a total market are different for consumer
markets than for industrial markets. The most common elements used to
separate consumer markets are demographic factors,characteristics,
geographic location, and perceived product benefits.
Demographic Segmentation involves dividing the market on the basis of
statistical differences in personal characteristics, such as age, gender,
race, income, life stage, occupation, and education level. Clothing
manufacturers, for example, segment on the basis of age groups such as
teenagers, young adults, and mature adults. Jewelers use gender to divide
markets. Cosmetics and hair care companies may use race as a factor;
home builders, life stage; professional periodicals, occupation; and so on.
Psychographic Segmentation is based on traits, attitudes, interests, or
lifestyles of potential customer groups. Companies marketing new
products, for instance, seek to identify customer groups that are positively
disposed to new ideas. Firms marketing environmentally friendly products
would single out segments with environmental concerns. Some financial
institutions attempt to isolate and tap into groups with a strong interest in
supporting their college, favorite sports team, or professional organization
through logoed credit cards. Similarly, marketers of low-fat or low-calorie
products try to identify and match their products with portions of the market
that are health-or weight-conscious.
Geographic Segmentation entails dividing the market on the basis of where
people live. Divisions may be in terms of neighborhoods, cities, counties,
states, regions, or even countries. Considerations related to geographic
grouping may include the makeup of the areas, that is, urban, suburban, or
rural; size of the area; climate; or population. For example, manufacturers
of snow-removal equipment focus on identifying potential user segments in
areas of heavy snow accumulation. Because many retail chains are
dependent on high-volume traffic, they search for, and will only locate in,
areas with a certain number of people per square mile.
Product Benefit Segmentation is based on the perceived value or
advantage consumers receive from a good or service over alternatives.
Thus, markets can be partitioned in terms of the quality, performance,
image, service, special features, or other benefits prospective consumers
seek. A wide spectrum of businesses—from camera to Automobile
Marketers—rely on this type of segmentation to match up with customers.
Many companies even market similar products of different grades or
different accompanying services to different groups on the basis of product-
benefit preference.
Factors used to segment industrial markets are grouped along different
lines than those used for consumer markets. Some are very different; some
are similar. Industrial markets are often divided on the basis of
organizational variables, such as type of business, company size,
geographic location, or technological base. In other instances, they are
segmented along operational lines such as products made or sold, related
processes used, volume used, or end-user applications. In still other
instances, differences in purchase practices provide the segmentation
base. These differences include centralized versus decentralized
purchasing; policy regarding number of vendors; buyer-seller relationships;
and similarity of quality, service, or availability needs.
Although demographic, geographic, and organizational differences enable
marketers to narrow their opportunities, they rarely provide enough specific
information to make a decision on dividing the market. Psychographic data,
operational lines, and, in particular, perceived consumer benefits and
preferred business practices are better at pinpointing buyer groupings—but
they must be considered against the broader background. Thus, the key is
to gather information on and consider all segmentation bases before
making a decision.
Once potential market segments are identified, the third step in the process
is to reduce the pool to those that are (1) large enough to be worth
pursuing, (2) potentially profitable, (3) reachable, and (4) likely to be
responsive. The fourth step is to zero in on one or more segments that are
the best targets for the company's product(s) or capacity to expand. After
the selection is made, the business can then design a separate marketing
mix for each market segment to be targeted.
Adopting a market-segmentation approach can benefit a company in
several specific areas. First, it can give customer-driven direction to the
management of current products. Second, it can result in more efficient use
of marketing resources. Third, it can help identify new opportunities for
growth and expansion. At the same time, it can bring a company the broad
benefit of a competitive advantage.

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 AND SEGMENTATION MODEL FOLLOWED
BY COMPETITORS
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 between 25-45, 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, high-profile celebrities, industrialists and other high "net worth"
individuals. The fact that the segment cannot do without a mobile phone
makes it the 'assured' segment.

MARKETING STRATEGIES

Introduction to Marketing Strategies

“STRATEGY” is a very broad term which commonly describes any

thinking that looks at the bigger picture. Successful companies are those
that focus their efforts strategically. To meet and exceed customer
satisfaction, the business team needs to follow an overall organizational
strategy. A successful strategy adds value for the targeted customers over
the long run by consistently meeting their needs better than the
competition does.
Strategy is the way in which a company orients itself towards the market
in which it operates and towards the other companies in the marketplace
against which it competes. It is a plan an organization formulates to gain a
Sustainable Advantage over the competition.

The Marketing Concept of building an organization around the profitable

satisfaction of customer needs has helped firms to achieve success in high-
growth, moderately competitive markets. However, to be successful in
markets in which economic growth has leveled and in which there exist
many competitors who follow the marketing concept, a well-developed
marketing strategy is required. Such a strategy considers a portfolio of
products and takes into account the anticipated moves of competitors in the
market.

Consumers seek certain attributes in products and these attributes lead to

certain benefits for them. When the benefits matter to them, over time they
learn to choose products which possess those attributes that lead to the
relevant consequences.
Understanding these linkages between product attributes, their
consequences and their ultimate consumer ‘values’ are important if one has
to arrive at a positioning that the consumer can relate to. Benefit Laddering
refers to a technique which focuses on product attributes and hence
provides a link for the changing value proposition of a product. It helps the
company to communicate its final value proposition to the consumer and
hence help the company to arrive at the desired positioning of the product
in the market.

 Price / Selling Effort Strategies: A firm that follows a skimming

strategy seeks to be the first to introduce a product with very good
performance, selling it to the innovator market segment and charging
a premium price for it. It makes as much profit as possible, then
moves on when the competition arrives. The price is likely to fall over
time as competition is encountered. Such a skimming strategy
contrasts with a penetrating strategy, which seeks to gain market
share by sacrificing short-term profits, and increasing the price over
time as market share is gained.
  Competitors have certain strengths and abilities. To succeed, a firm
must leverage its own unique abilities.

 A firm should prepare defensive strategies before potential threats

arrive. If the competition surprises a firm with the introduction of a
vastly superior product, the firm should resist the temptation to
proceed with its mediocre product. A firm never should introduce a
product that is obsolete when it hits the market.

 The competition's probable response to a firm's actions should be

considered carefully.

Nokia's new strategy in US market

I, and other much wiser bloggers, have already written about how
unsuccessful Nokia had been in selling phones on the US market. It seems
that American people are resistant to smart phones, they're simply satisfied
with text messaging and using their phones mainly for voice calls.
Unfortunately, the carriers didn't make it easy for Nokia to be the #1 in
North-America, either.

But that might change over time. As Nokia reported in their press release,
they are trying to find new ways to sell their phones, but this time without
involving the carriers. I hope that Ewan's prediction will come true and
users are now ready to buy and use such advanced mobile gadgets.
Especially if they are from the business segment: first, it's more likely that
those users can afford cell phones for hundreds of $s, second, they might
even use more than 10% of the provided functionality.

NOKIA’S VARIOUS MARKETING STRATEGIES

Local services easily:

With the Nokia Local Marketing Solution, consumers will be able to easily
discover and easily initiate services. A phone call to the nearest taxi stand,
opening a WAP or HTTP connection to the local movie theatre portal can
be made with just a few clicks. Rather than having to browse through
multiple menus, the special application in the phone makes it possible for
the consumer to discover locally relevant services from service
advertisements collected in the background by the special phone
application while the consumer moves around.
Nokia Local Marketing

Solution:

With the Nokia Local Marketing Solution mobile operators and service
providers can promote their own or partnered SMS and data services. Even
local businesses could easily advertise their own services in relevant
places at relevant times. The solution creates demand for building new,
really local services thus offering a new revenue opportunity area. The
solution consists of:

• an application in the phone – Local Info,

• a mountable, approx. A5 sized device called the Nokia Service Point LMP
10 used for sending over Bluetooth service advertisements to the
consumers’ phones and

• The Nokia Service Manager LMM 10, which is a back-end server for
content and service point management. Services are advertised via
Bluetooth to consumers’ phones when they pass a are automatically saved
to the Local Info service point. These service advertisements phone
application. Since the area where service is advertised is well defined, the
solution enables the advertisement and provision of services to have a
relation to Mobile operators have made big investments to make it possible
to provide mobile data services. It is difficult for the mobile operator to
inform its consumers when there is a new mobile data service available.
The potential of using Bluetooth has not yet been utilized by mobile
operators as a mean to market services. Content owner needs

In this context, a content owner is hence there is no need for local LAN
cabling a company providing any type of content to consumers through
mobile phones. Currently, the most typical content owners are companies
providing, for example news, sports, stock, and weather reports. These
companies typically provide WAP and/or SMS based-services, but also
provide WWW-pages customized for access from mobile phones. Virtually
any company providing their services for consumers could be a content
owner, including different kinds of stores, kiosks, restaurants, shopping
centers, movie theatres, video rentals, retailers etc. These companies
could provide access to services through phones, for example advertising
their toll-free numbers and WWW addresses, special offers, campaigns
and competitions. Unfortunately, there are only a limited number of
channels for effectively advertising digital services. Although the mobile
phone services of content owners are accessible and can be advertised in
newspapers, on television, on the radio in posters, the consumers have to
enter SMS codes and URLs manually in their phones to access these
services. For or White Paper a certain place. Service advertisements can
be time-specific and be valid for a limited period. When the validity of an
advertisement expires, it disappears from the consumer’s phone. The
consumer can set preferences on several criteria, thus set preferences on
several criteria, is most interested in Exist activates the service, the UI
informs the phone applications are used for service access. Before the
consumer consumer the service type and price. From the user-interface,
the consumer can set preferences, for example which category of service
advertisements to receive and, most important, to select which service
providers they wish to receive the adverts from.The actual usage of cellular
voice and data related services happens over cellular network by just
clicking the service icon from the phone application. The solution supports
the activation of voice, SMS, WAP/HTML browsing and streaming services.
The solution also makes it possible to have embedded content behind the
service icon, for example to show a coupon, an HTML/WAP file or play an
audio/video clip. The service advertisement are created and managed with
the Nokia Service Manager LMM 10, which uploads these to the local
service points. The connection between the service points and the central,

back-end service manager is over GPRS hence there is no need for local
LAN cabling.
Digital Marketing Strategies

Interactive Marketing

With the advent of the internet, mobile communications and digital

interactive Television (iTV), consumers have ensured that at almost every
moment of their waking lives they have the opportunity to interact,
participate, decide, and provide feedback. A marketer's dream, or so one
would think. Unfortunately, marketing in many companies still remains a
nebulous soft function. The 'build it and they will come' attitude to multi-
million pound marketing campaigns appears to prevail in too many
organisations.

Many companies that have used internet and mobile advertising claim that
they have been disappointed with the results. Executives still stuck within
the traditional media paradigm have yet to understand the full value of
interactive advertising and immediate customer response. In addition, they
rarely have the necessary information infrastructure in place to capture and
extract value from interactive campaigns and the customer feedback they
provide. As a result, it is no surprise that marketers by and large fail to take
advantage of the opportunities that the internet or the mobile platform
provide, either individually or in conjunction with other digital channels. If
companies contemplating the use of iTV follow a similar pattern there is a
significant risk that this platform too will be either underutilised or misused.
There are a number of companies however, that are emerging as veritable
maestros of interactive marketing. They see the opportunity and take
advantage of the potential of each channel to add value. They embrace the
digital customer, and they know exactly what roles the internet, the mobile,
and digital TV play in their customers' lives, as well as how and when these
technologies are used. These companies understand that traditional media,
internet, mobile telephony, and iTV provide complementary marketing
channels that can be used to influence customer behaviour at the different
stages of the purchasing cycle.

The Dynamic Customer

By being constantly connected, consumers are allowing

marketers access to parts of their lives that not long ago
would have been much more difficult to penetrate. Digital
technologies, and the content they deliver, have added
dynamic segmentation and targeting capabilities to more
traditional methods. Customers needs, attitudes and
propensity to purchase evolve and change by the minute, as the influences
that surround them alter their desires, perspectives and physical state. With
the introduction of so many communication options (e.g. e-mail, fixed line,
mobile phone, mail, face to face, iTV) the consumers preferred method of
response has also evolved. The comparatively blunt 'traditional media'
instruments of TV, press, radio and outdoor, that have looked to influence
consumer trends over time, have been supplemented by media that can
instantly respond to desires and needs.
Savvy marketers are learning to use this knowledge to hone their customer
segmentation and targeting strategies, contemplating which platform to use
in order to capture the customer at the optimum time. Organisations are
increasingly looking to use interactive media to create strong associations
between their products and services and specific aspects of
their customers' lives.

A good example is Domino's Pizza who is deliberately

associating its brand with specific content (The Simpsons,
family show), at a particular time of day (dinnertime) with a highly distinctive
signature ( jarring, loud sounding siren to denote heat).

The pizza delivery service must surely rank as a perfect real life example of
Pavlov's conditioned reflex experiment. Just the sound of the siren most
likely suffices today to have masses across Britain salivating for 'hmmm...
Simpsons... dinner... Domino's'.

The campaign simultaneously creates awareness, an impulse and the

opportunity to purchase. The red interactive button on the television remote
allows viewers to act on their impulse immediately, minimising the
opportunity to change their mind.

Moreover, Domino's administers the marketing coup de grace by making it

easier over time to use the service. Cookies keep track of previous orders
and choices and literally allow customers to have dinner delivered to their
door at the touch of a button ('same as last time?'). For Domino's, the
interactive television remote control has proven to be a magic wand. Not
surprisingly, sales through online channels now reach a significant
£300,000 per month from 20,000 orders.

The pizza delivery service could go further still, though, by extending its
presence to additional digital platforms. Mobile phones come to mind
immediately as a channel that can prove as sticky as American cheese.
Using SMS (Short Message Service), the text messaging service to offer
electronic coupons would, for example, allow Domino's to further increase
loyalty and pervasiveness in its customers' lives. Learning how to capitalise
on obvious synergies between the various channels is key to getting the
most out of digital marketing campaigns!

Exploiting Platform Synergies

The organisations that successfully use several digital channels in a

complementary fashion will unlock the full value of digital marketing. To do
so, they will need to have a thorough grasp of the strengths of each
platform, the context in which they are best used, the content/offers that are
appropriate to both the platform and the customer segment as well as the
fulfillment expectation for each platform. Not a task to be taken lightly. So
what are these strengths?

 Digital interactive Television

Traditional TV has for a long time been an awareness

creation tool par excellence. However, traditional TV forced
viewers to file away that interest until the next purchase
opportunity, or make the effort of noting down a number and
 picking up a phone - quite a lot of effort for your average viewer. Now
iTV brings a new interactive dimension. Viewers can enter a separate
interactive area, whilst still watching their current programme, and
have access to more information and/or an opportunity to purchase.
So iTV has now evolved as a vehicle that can inform, persuade and
provide the opportunity to purchase in one fell swoop.

 Internet on the PC

The PC is the information vehicle of choice; a recent Forrester report

revealed that by 2005 US consumers will research $378 billion in
cars, trips, and clothes online before buying. The higher the cost of a
product or service, the greater the importance of the internet as a
step in the purchasing cycle. Another Forrester survey amongst retail
companies estimated that 25% of purchases were sparked by their
internet site against 2% of sales actually purchased on the internet.

 Mobile Telephony

Cell phones and other mobility devices (PDAs etc.) are ideal for
location-based advertising and as a tool to remind consumers of
specific products and services. The pervasiveness of these devices
makes them an excellent vehicle for marketers looking to create
stickiness and improve customer loyalty. SMS-based marketing has
proven very effective for stimulating purchase of low cost location-
based offerings. Digital novelties like electronic coupons are helping
to create an ever more constant presence for products and services.
As an example, BTCellnet's SMS-based marketing campaign around
 the Channel 4 programme, Big Brother has proven very successful.
SMS information teasers raised WAP usage by a significant 20%.

Lastminute.com is also adopting an increasingly sophisticated digital

marketing programme. Through its multi-platform strategy
the company has successfully achieved higher brand
visibility by creating an impression of omni-presence. In
addition, Lastminute.com ensured a high level of service
(anytime, anywhere), and enhanced customer intimacy by
targeting the right customers, at the right time. The company's digital
marketing strategy is designed around platform peak-times: internet peak-
times around lunch-hour, digital TV peak-times around home/family/dinner
time, and WAP/GPRS peak-times during weekend leisure time. Being
available on the most suited platform at the most promising time allows
Lastminute.com to deliver highly targeted messages to tightly segmented
audiences. This strategy has enabled Lastminute.com to maximise its
revenue by allowing the customer to use their response mechanism of
choice.

NOKIA STRATEGIC MARKETING IN INDIA

Nokia redefines fashion phones in India with the latest L'Amour collection

Nokia has introduced a collection of three trend-inspired mobile phones,

the Nokia 7360, Nokia 7370 and Nokia 7380. Each model in Nokia's the
L'Amour Collection offers a beautiful mix of contrasts infusing cultural and
ethnic influences with luxurious touches of the unexpected. Hints of vintage
and craftsmanship, are fused with natural materials, colours and patterns,
all carefully crafted and layered with a passion for detail.

In the design and development of the L'Amour Collection, Nokia's Design

team has looked to materials such as amber, ceramic, turquoise, silk and
enamel for inspiration. Craft techniques such as enamelling and etching
added a creative spark to the graphics, finishes and colours selected for
each model in the collection.

Nokia 7380: With etched mirrored surface and discreet keyless dial, the
Nokia 7380 comes with a leather cover and a mirrored display. The
technology includes a 2-megapixel camera and intuitive voice dialing.

Key features:

 Keyless dial
 2-megapixel camera, 4x zoom
 Enhanced Voice Commands
 MP3 player

Nokia 7370: The Nokia 7370 "swivels" open to reveal its elegantly hidden
keypad. Beautiful patterns into the elegant metal trims are contrasted by
leather-inspired faceplates. The Nokia 7370 is available in two colour
schemes, coffee brown and warm amber, with each model offering a
distinct set of graphics, screensavers and even dedicated camera keys.
Key features:
 1.3 megapixel camera, 8x zoom
 2-inch QVGA colour screen (320 x 240 pixels)
 Stereo speakers with 3D sound effects
 Video ring tones
 FM Radio

Nokia 7360: Trend-conscious men and women will appreciate the Nokia
7360's mixture of patterns and textures, which are perfectly complemented
by elegant accessories, including straps and carrying pouches. The Nokia
7360 is also available in two signature L'Amour Collection colour schemes,
coffee brown and warm amber.
Nokia has jumped into the growing market of online distribution of tones,
graphics and games downloads in India and is offering a choice of 120
games which can be downloaded at Rs 50 per game. However, users will
have to shell out an additional Rs 10-25 for the airtime depending on the
size of the game.

Nokia claims to be the first handset manufacturer to enter this business in

India and the first company to launch games downloads in the Indian
market. So far, only online content and utility services companies such as
MSN and Yahoo have been offering ringtones and graphics downloads to
mobile phone enthusiasts.
The business of offering ringtones and graphics is growing almost by 100
per cent, according to industry experts. The download business for the
calendar year 2003 was estimated to be around Rs 10 crore and is
expected to touch Rs 20 crore this year. These estimates do not take
airtime charges paid by the users for downloads.

“Nokia is not entering this business to make money. In fact, a large part of
the revenue will be shared by the service operators and content providers.
Our interest is to help mobile service operators to increase their average
revenue per user (ARPU) and to influence mobile phone users to upgrade
to the latest models being launched by the company,” Nokia India
marketing head Gautam Advani said.

Mr Advani claimed that the company launched a game named ’Makhan

Chor’ during ’Janmasthmi Utsav’ last month and the response was very
encouraging.

Nokia India has already tied up with with Bollywood production houses
such as Harry Baweja, Rajshri Pictures and RS Entertainment for graphics
and movies.

It has also entered into an agreement with Indian Performing Rights

Society for ringtones.
PROMOTIONAL STRATEGIES:

"Push or Pull"

Marketing theory distinguishes between two main kinds of promotional

strategy - "push" and "pull".

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 producer promotes the product to wholesalers, the wholesalers

promote it to retailers, and the retailers promote it to consumers.

A good example of "push" selling is mobile phones, where the major

handset manufacturers such as Nokia promote their products via retailers
such as Carphone Warehouse. 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.
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.

A good example of a pull is the heavy advertising and promotion of

children's’ toys – mainly on television. Consider the recent BBC
promotional campaign for its new pre-school programme – the Fimbles.
Aimed at two to four-year-olds, 130 episodes of Fimbles have been made
and are featured everyday on digital children's channel CBeebies and
BBC2.

As part of the promotional campaign, the BBC has agreed a deal with toy
maker Fisher-Price to market products based on the show, which it hopes
will emulate the popularity of the Tweenies. Under the terms of the deal,
Fisher-Price will develop, manufacture and distribute a range of Fimbles
products including soft, plastic and electronic learning toys for the UK and
Ireland.
PRICING STRATEGIES

Ultra low cost phones--less than Rs 2,000--are fuelling demand in cost-

sensitive India, where more than 4 million new users are entering the 85.4
million strong wireless sector each month.

The number of mobile services users surged 47 percent in 2005, and now
exceeds the population of Germany. India is expected to be the world's
third largest mobile market by the end of this year, behind China and the
United States.

"We anticipate that there will be a long-term sustainable demand for mobile
telephony in the fast-growing Indian market," Chief Executive Jorma Ollila
said at the launch of the plant in Sriperumbudur, on the outskirts of
Chennai.

Bundles: Another category where penetration is next to negligible is the

fast-growing mobile telephony market — penetration stands at roughly 5%.
Here, even as price continues to be a significant factor for determining the
choice of handset or service provider, the value equation, according to
Sanjay Behl, marketing head of Nokia India, is even more imperative.
Nokia found success with its ‘Made in India’ Nokia 1100, which
incorporated unique features such as a torchlight, a dust-resistant keypad
and an anti-slip grip to appeal to the semi-urban markets. Importantly, Behl
says that even applications and software — such as T9 or language
interface and text input — have to be customised to meet consumer needs.
The 1100, which currently retails at Rs 2,700, is the largest selling handset
in India with a market share of about 25% in terms of volumes, and 16% in
terms of value. On the other hand, another Nokia phone, the 2600, priced
at Rs 4,200, is the highest selling colour model in India, with a 7% market
share. In the colour segment alone, the 2600 has a 17% share. “Clear
evidence of how features (colour screen) and price have been cleverly
bundled to drive penetration,” says Behl.
Four P’s

In popular usage, "Marketing" is the promotion of products, especially

Advertising and Branding. However, in professional usage the term has a
wider meaning which recognizes that marketing is customer centered.
Products are often developed to meet the desires of groups of customers
or even, in some cases, for specific customers. E. Jerome McCarthy
divided marketing into four general sets of activities. His typology has
become so universally recognized that his four activity sets, the Four P’s,
have passed into the language.
The Four P’s are:

 Product: The product aspects of marketing deal with the

specifications of the actual good or service, and how it relates to the
end-user's needs and wants. The scope of a product generally
includes supporting elements such as warranties, guarantees, and
support.

 Pricing: This refers to the process of setting a price for a product,

including discounts. The price need not be monetary - it can simply
be what is exchanged for the product or service, e.g. time, or
attention.

 Promotion: This includes advertising, Sales promotion, Publicity, and

personal selling, and refers to the various methods of promoting the
product, brand, or company.

 Placement: refers to how the product gets to the customer; for

example, point of sale placement or Retailing. This fourth P has also
sometimes been called Place, referring to the channel by which a
product or service is sold (e.g. online vs. retail), which geographic
region or industry, to which segment (young adults, families, business
people), etc.
PRODUCTS OFFERED BY NOKIA

There are Various Ranges of Products that Nokia Offers. Especially in

Mobile phones Nokia is the Leading Manufacturer in it. Nokia Offers
various Mobile Phones with varied Quality, Shape, Size, Colour, etc. Nokia
Offers a Varied Range of Mobile Phones & Other accessories with it. All
Mobile phones are having Different Specifications in it. Nokia is Launching
a New Products Every Year.It First Does Analysis of Market & according to
Taste of Consumers It Launches its Products in Market. Till now Nokia has
Launched a No. of Products in Market & It had been very Successful for
Nokia after launching so many products. Nokia has Strengthened its
Strategy of Working in Market. It has Revolutionised all sectors in Market.
No one is So Powerful as Nokia in Field of Mobile Phones in India. There
are so many Mobile Phones been in Market by Nokia. Several New
Techniques & Upgradation is being done to enhance & launch a new
product every time in Market. Nokia’s R& D Department is very much in
Progress for working over bringing a special change in every mobile phone
its launching in market. After Launching Various Mobile phones in market
till now, Nokia is now Launching various new Models of Mobile Phones i.e it
is bringing new changes in the series of Mobile Phones. Firstly All Mobile
Phones used to have only Black& White/ Colour Display, Messaging. But
now Nokia has launched Various New Models of Mobile Phones in Mobile
Series that it Has Rocked the Market. The New Models are having various
Greater, Advanced Facilities from that of other phones till now. These New
Models Which Nokia is going to Launch in market is having all Types of
Features/Facilities like:-

1) Instant Messaging
2) Brighter/Broader Enhanced Colour Display
3) Large Screen
4) Touch Screen System
5) Enhanced Radio Facility
6) Mp3 System
7) Internet/GPRS 2.0
8) Support for Ms-Office
9) Cool Applications & Games
10) Bluetooth Connectivity
11)Wireless Earphones
12) Slim Body
13) 2.0 Mega pixel Camera etc
Product Portfolio

Nokia launches handsets to drive mobility

NEW DELHI -- Nokia launched two new affordable handsets models, 1110
and 1600, which target first-time buyers and have talking alarm and clock in
five regional languages along with innovative features for ‘ease of use’.
With these new mobile phones, Nokia has expanded its entry-level portfolio
in India.

The Nokia 1110 (black and white display) and Nokia 1600 (coloured
display) are ideal for first time users as they have an inbuilt graphical demo
mode which allow users to access and familiarise themselves with the main
functions of the handset, even without inserting a SIM card. Another stand
out feature of these new handsets is the unique Talking Alarm and Clock in
five regional languages including Hindi, Tamil, Bengali, Marathi and
Gujarati.

Nokia handsets are renowned for their ease of use and the Nokia 1110 and
1600 phones continue this tradition with a new intuitive user interface that
makes full use of graphical icons and large font sizes and the built-in
hands-free speaker. With the new menu structure accessing basic features,
such as managing calls and contacts become easier. In addition to
polyphonic and MP3-grade sound ringtones, the Nokia 1110 and Nokia
1600 also feature a unique cost-management feature, such as Nokia
Prepaid Tracker support to help users monitor their phone usage. This will
be an operator dependent service.
Reiterating Nokia’s intent to drive affordable mobility in India and grow the
base of mobile phone users. Sanjeev Sharma, Managing Director, Nokia
Mobile Phones, said: “With the introduction of these new handsets we have
further strengthened our entry level product portfolio by bringing in feature
rich handsets with localised applications. Only 5 percent of the population
understands the English language. Nokia has always tried to reach out to
the masses, which has been demonstrated by our past endeavours in
introducing Hindi SMS and even in our earlier campaigns. These handsets
are yet another example of Nokia’s innovation and commitment to
introduce products that are relevant for Indian consumers. The Nokia 1110
and 1600 announce the dawn of a new age. Its unique talking alarm will
wake up millions of Indians, not only to their daily lives, but also to a new
era of mobility which has been captured in our campaign called Jaago India
Jaago,”

Detailing the rationale behind the Jaago India Jaago advertising campaign,
Sharma said: “Indians are extremely proud of how the country has been
progressing. The growth of mobility is one of the key indicators of the
economic progress in India. The advertising campaign therefore uses the
‘Talking Alarm’ functionality of the Nokia 1110 and 1600 as a metaphor to
convey how more and more Indians were waking up to mobility through
Nokia handsets and participating in the progress.”

Both these handsets also offer much longer talk time than the current entry
phones. Nokia 1110 and Nokia 1600 phones have excellent voice quality
and coverage based on state-of-the-art radio software. The new technology
enables operators to add voice capacity within their networks smoothly and
cost-efficiently while improving network capacity and call quality.
These were all above were Some of Features of New Upcoming Models of
Nokia. Now let us Study Some of the Nokia New Models& its Features in
Detail. They are as Follows:-

NEW UPCOMING MODELS OF NOKIA

1) Nokia 2630

Key Features

 Ultra-slim design measuring at only 9.9 mm

 Capture and share photos with a VGA camera with 4x digital zoom
  Share and transfer data via Bluetooth, GPRS, email and Internet

 Listen to FM Radio in an instant with a one-touch key

 Personalize your Ringtone with any MP3 Audio File

2) Nokia 2760

Key Features

 Refreshing, trendy design that’s progressively stylish

 Capture stills or videos with a VGA camera or tune in to FM Radio for
music enjoyment

 Enjoy larger user memory for storing more photos, MP3 ringtones
and entries into phonebook

 Connect to the world via Bluetooth, GPRS and email

 3) Nokia 6110

Key Features

 One touch navigation button provides easy access to GPS function

and maps
 With HSDPA for fast web browsing and downloading of maps

 2 megapixel camera and QVGA TFT 2.2" screen

 Keeping your images crystal clear with lens slide protection screen

 Listen to your messages read aloud with Message reader

4) Nokia E90
Key Features

 Browse the Internet and transfer media-rich files via HSDPA (up to
3.6 Mbit/s enabled) and 3G high-speed mobile broadband
 Increase mobile productivity with applications for viewing and editing
documents

 Talk on every continent with quad-band GSM and automatic switching

between bands

 Access voice and data functions quickly and easily with convenient
shortcut keys

 Locate meeting venues, restaurants, and places of interest with the

integrated GPS

 Send images captured with the integrated 3.2 megapixel camera with
flash and autofocus

4) Nokia 1650
Key Features

 Easy one-touch key to activate FM radio in an instant

 Enjoy easy viewing with the 65,536 colors, large screen display and
large font type when dialing

 Personalize your phone ring with quality MP3-grade and 32

Polyphonic ringtones

 Extend your talk time with Power Saver mode

Convenient one-touch key to switch on built-in flashlight

5) Nokia 2355
Key Features

 Vibrant 128 x 128 pixels display in 65,536 colors

 Sleek polished fold design

 Integrated FM radio

 Integrated flashlight

 Internet ready with WAP 2.0 browser

 Multimedia messaging (MMS) functionality

6) Nokia 1325

Key Features

 Slim 15.2mm design

 Brilliant 65,536 color display (96 x 65 pixels)

 Convenient Integrated Handsfree Speaker

 32-chord/voice polyphonic MIDI ringing tones

 Large phonebook with 400 contacts and 5 entries per contact

7) Nokia 1208
Key Features

 Experience enhanced visual with the 65,536 color display

 Dust and splash proof with rubberized keypad and anti-slippery back
cover

 Bright flashlight for convenience and emergency

 Timer tracker feature helps you controls the duration of each call

 Multiple phonebook makes sharing phone easier

Easy–to-use menu in multi languages with calendars

8) Nokia 1200

Key Features
  Dust and splash proof with rubberized keypad and anti-slippery back
cover
 Bright flashlight for convenience and emergency

 Timer tracker feature helps you controls the duration of each call

 Multiple phonebook makes sharing phone easier

 Easy–to-use menu in multi languages with calendars

9) Nokia 2505

Key Features

 Sleek and elegant at a slim 16.65mm

 Quick-press flashlight

 65,536 colors with 128 x 160 pixels display

  Two-way handsfree speakerphone

 32-polyphonic MIDI speaker

 Popular Nokia user interface with 4-way scroll and center-select key

 Store up to 300 contacts in phonebook, with 5 entries per contact

SWOT ANALYSIS

Introduction

In this part of my investigation I am constructing a SWOT analysis for

Nokia. I will have to Analyse the external factors that may prevent Nokia
from re-launching WAP enabled mobile phones onto the market.

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 COMPANY NOKIA

I) MODERN SWOT ANALSYIS

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 smartphone market via its majority ownership
of Symbian and its propritary 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 share of nearest competitr
- Size should enable Nokia to amortize R&D costs and to get cost
advantages
- Brand position: probably one of the top 20 brands in the world

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, LG, NEC and others.
- Asian OEMs who are entering the market very agressively (TCL, nGo
Bird)
- 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 Had Come to this Conclusion That Nokia has
Implemented Various Strategies in Developing It Products on a Large Scale
& Becoming No.1 Leader in The World of Mobile Phones. Nokia has used
various Techniques to implement its products into the market. 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 had used various marketing strategies to enhance its
products into market & also they 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 techiques to tackle problems of customers in market. Customer
Care & Feedback is also given more importance to increase the sales of
product. 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 Promotional Strategies are being
enrolled into the market to promote 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. There are various Recommendation required to be done in this
Report. They are as Follows:-
 1) 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.

2) As far as Launching of New Models is concerned, The Company

should try to offer sales of such products at a affordable Price.

3) The Company should try to bring attractive offers & discounts to the
customers to make them more Brand Loyal towards them.

4) Research should be carried out on a large scale & in selected areas.

BIBLIOGRAPHY:-

1. MARKETING MANAGEMENT

BY N.G KALE

REVISED SECOND EDITION

2. INTRODUCTION TO MARKETING MANAGEMENT

BY PHILIP KOTLER

REVISED THIRD EDITION

 3. WORLD OF MARKETING

DIGITAL ARTS

WEBLIOGRAPHY:-

1. www.google.com

2. www.wikipedia.org

3. www.metacrawler.com

4. www.icfai.org

ANNEXURE

Q1) WHO IS FOUNDER OF COMPANY?

Q2) WHEN IS COMPANY ESTABLISHED?

Q3) WHO ARE HEAD PERSONS OF THE COMPANY ?

Q4) LOCATION OF THE COMPANY UNIT ?

Q5) CENTERS OF THE UNIT OF COMPANY ?

Q6) WHAT ARE PRODUCTS IT OFFERS TO CUSTOMERS?

Q7) HOW MANY MODELS THE COMPANY LAUNCHES IN A YEAR?

Q8) WHAT ARE PRICING RANGE OF ALL MODELS?

Q9) WHICH ARE THE HIGH SELLING PRODUCTS IN MARKET?

Q10) WHERE ARE CONSUMER COMPLIANTS FORUM ESTABLISHED?

Q11) WHAT ARE MARKETING STRATEGIES OF NOKIA ?

Q12) WHAT IS MARKET SEGMENTATION DONE FOR ALL THE

PRODUCTS ?

Q13) WHICH OF ALL PRODUCTS IS SOLD TO WHICH CUSTOMERS ?

Q14) INFORMATION ABOUT NEW STRATEGIES ADOPTED BY NOKIA ?

Q15) PRICING & SALES STRATEGIES OF NOKIA ?

Q16) INFORMATION ON ADVERTISEMENT STRATEGIES USED BY

NOKIA ?