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Literature Review on

“Nokia’s Marketing Strategy in India”


INDEX

Topics Page
No.

1. Intro
ducti
on 4
2. Abou
t the
comp
any
Nokia
5

3. Nokia
in
India
7
4. SWO
T
Analy
sis 10
5. Mark
eting
Strat
egy
12
5.1 Product 13
5.2 Pricing
16
5.3 Place 18
5.4 Promotion 21
6. Produ
ct
Life
Cycle
27
7. Concl
usion
30
8. Reco
mme
ndati
ons
32
9. Biblio
graph
y 34
Introduction

Day by day, mobile phones are turning into more of necessity


then a luxury. The benefits of the mobile phone are far too
many. Ease of communication, the anywhere, anytime contact -
with friends, relations, colleagues and in theory at least the
efficiency brought to busy lives (Web 21). Nokia’s growth in
India has been substantial. They have led the market with 70%
share for long time now. What is interesting is that there is
further scope of improvement in sales. It is a high technology
market and India being developing country, will see more and
more subscribers to this technology in the future.
This research aims at studying the strategies applied by Nokia
in India, the product life cycle of nokia products and the
conclusions drawn therein.

About Nokia

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 [1], 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. Recently, Nokia joined other mobile
phone manufacturers to embrace Taiwanese Original Device
Manufacturers.

Nokia’s Vision:
Their ‘Connecting People’ tagline states their vision to create a
world where everybody is connected every
moment, everywhere and at any time. Their goal is to build
great mobile products that enable billions of people worldwide
to enjoy more of what life has to offer. Their challenge is to
achieve this in an increasingly dynamic and competitive
environment.

Nokia in India
Nokia has been the pioneer of mobile telephony in India, the
existence here is from 1994. As noted above, the first ever GSM
call in India was made on a Nokia 2110 on its own network.
Although the conditions in Indian telecom industry were not
very conducive, Nokia maintained an aggressive strategy.
Import of mobile phones was not easy and the tariff applied on
them was as high as 27%. Consumers too were not interested
in purchasing mobile phones as call rates were as high as Rs16
per minute ($0.40).
Another problem faced by Nokia was highly competitive
environment in the industry. Powerful global players like
Motorola, Siemens, Sony and
Ericsson already had their presence in India in consumer
durables, electronics and engineering sectors, and hence were
aware conditions
prevailing in Indian market.
The industry got a new life in 1999, when the
Government of India announced a new telecom policy. The plan
was to provide telephones on demand by 2002. A major point
of the policy was to allow unrestricted private entry into almost
all mobile service sectors. The mobile service providers were
allowed to share their infrastructures with other operators. It
also helped the private operators to break even faster by
allowing them to migrate from fixed license to one-time entry
fee with revenue sharing.

However, by 2001, there was steady increase in the demand for


mobile services. The private companies concentrated on
providing basic telephonic services to consumers. By 2002, the
industry was on a high, and with the popularity of mobile
phones the customers started demanding better services and
lower prices. This led to new innovations and come out with
better products.

Nokia’s manufacturing facility in Chennai, Tamil Nadu


(South India) exports half its production to more than 59
countries. Nokia has invested $250 million since its launch in
2006. However, overcoming all odds, Nokia India came out as
the market leader with 49.3% share in 2010 and still continues
to lead with 39%in 2011 (Indu P., 2005) (Web 4). Asia is the
fastest growing market for Nokia. Competitors such as
Samsung, Motorola and Sony Ericsson have captured huge
market shares. The consumer is going for high technology at
reasonable prices. They respect any provider who gives the
best combination of both. Nokia has retained the top spot for
quite some time in India

Nokia's key strategy has always been to lead


the market on the basis of technology as it has always held.
The difference it holds is the capability to be more sensitive to
the people with lower purchasing power which hold the major
share of these growing and developing countries market.
The Korean mobile phone company Samsung is quickly growing
its market share during the last few years. It reported a
revenue growth of 21.7% during last year as against Nokia’s
flat revenue growth. Nokia’s revenue during 2011 was Rs
12929 cr against Rs 12900 cr during 2010.

SWOT Analysis
Strengths:
 Experience – 142 years of History
 Strong Financial Support for R&D
 Largest Network of Selling and Distribution
 Strong Customer Relation
 Wide Range of Product for all class
 High Resale Value compared to other competitors
 Durability
 Long Battery Life
 User Friendly
 Global Expansion

Weakness:
 NGage is a flop
 Low Voice Quality
 Less Stylish in low priced products.
 Heavy Sets
 Market Skimming Prices of High Sets
 Unlike I-Phone, N97 is complex, tough and not user
friendly.

Opportunities:
 Increase their presence in the CDMA market, is still
dominated by LG, also concentrate on 3G and Edge
 New growth markets where cell phone adoption still has
room to go, including India and other countries.
 Other Hand Held Devices
 Improvise on Quality of Camera
 Mini Notebooks

Threats:
 China Mobiles – it has made exact copy of Nokia N96
 Cheap and Wide Range Models from Motorola
 I-phone Apple – A fierce competitor for Nokia N97.
Marketing Strategy
Marketing strategy of a company in a new country plays a vital
role in determining its future in that country. Knowing that
Indian market is very different from other markets it was
already operating in, Nokia came up with an India–specific
strategy or a glocal strategy. It adapted to the Indian
conditions by launching new products and enhancing the
products with features designed specifically for local customers,
as well as promotional campaigns targeted at Indian audience
to gain a foothold in the market. To capture the widespread
Indian market, it developed an extensive distribution network
which also helped it take its products to rural markets in India.
Here, to discuss the strategy, we consider the simple concept
of 4 P’s, namely; product (customization), price, place
(distribution) and promotion.

PRODUCT:
1998 was 51st year of Indian independence, hence Nokia
provided the ring tone of National son “Saare Jahan se
Achha ye Hindustan Hamara” in 5110 model. The
introductory offer for this model also had inter-changeable
covers. The success of 5110 initiated Nokia to focus on
feature-specific localization. In1999, Hindi (national
language, and mother tongue of 43% Indians) user
interface was provided in Nokia 3210. Also, Nokia also tied
up with Sony music for top 20 hit songs as ring tones. Nokia
3210, became an instant hit. The model 3610 was launched
with an enhancing Hindi text messaging facility in 2001.
The most successful customization came in 2003 when
Nokia came with 1100 and 1108 specifically designed for Indian
market. It had features of anti-slip grip, dust resistance and
torchlight. Since, in India people don’t know English in villages,
Nokia came up with “Saral Mobile Sandesh” (SMS in Hindi).
Nokia sales increased from 58.2% in July 2003 to 59.6% in July
2004.
Nokia was also the first handset manufacturer to launch
games download in India in 2003. It had spearheaded the
industry in online distribution of tones, graphics and game
downloads. These services did not just increase their sale of
mobile phones but were also fruitful as they made huge profits
by selling the games. In 2005, Nokia also launched games
based on Indian mythology namely ‘Makhan chor’ and

‘Swayamvar’. Both were arcade games involving two most of


the famous characters namely, Lord Krishna and Arjun.
Another feature that Nokia came up with attract youth
was one which enabled the customer to slide in his or her
photograph or for that matter the loved ones,' in the picture
frame behind the phone. This was a part of Nokia 2112 model
(CDMA), wherein the message is clear-personalize your phone.
Earlier they had a similar feature in GSM handset Nokia 2100.
"We have made a personality statement through the campaign.
The feel of the campaign is such that it would evoke a 'sense of
being,'" said Sanjay Behl, Head of Marketing, Nokia India.
Menon, M. (2005)
Nokia also tied up with Bharti cellular in 2005 to
customize its handsets through which its users could access
multimedia services by using an additional key on the mobile
phone. Also since many FM channels were introduced in India in
early 2000’s, Nokia banked on the opportunity by coming with
FM phones attracting a lot of youth. Later on in 2005, Nokia
came with SMS services in other Indian languages including
Marathi, Tamil, Bengali and Kannada.

In November 2007, Nokia came with Bollywood


classic movie ‘Sholay’ preloaded in N95 8GBand N81. This gave
opportunity to
cinema buffs to now watch the movie Sholay on the go. The N
series is a multimedia sub-brand of Nokia. "It is one of the
biggest blockbusters

that the Hindi film industry has churned out. There could have
been no
better option than this flick, which is liked by every age group
equally," said Vineet Taneja, business director of multimedia,
Nokia India. (Web 11)
In another attempt to give India handsets which will
enable them to use more features, Nokia is in process of
making cheap GPRS enabled handset. In this handset, the
users can surf the net at a very reasonable price. Again
targeting the low and middle income class, who are interested
in using the new facilities available. "We are planning to bring
internet access to all the masses in India through our low-cost
handsets... the company is working diligently towards it," said
Nokia's Senior Vice President - Entry Business Unit (Mobile
Phones Business Group) Soren Peterson in an interview. (Web
13)
PRICING:
Pricing of the phones was of prime importance for success in
India. Being a developing country, the purchasing power of the
people was not high as compared to other developed countries.
Research unveiled that phones of lower price range (below
Rs8000 or $200 approx.) amounted for 65% of the total sales in
India. Nokia depended majorly on rural market, therefore,
pricing was a major success factor for the company. Nokia did
achieve success in India, in spite of the fact, that its handsets
were not the cheapest in the market.
Nokia 1100, which was specially launched for India, was
priced at Rs. 4000. This price, although was at a premium as
compared to entry level phones, but was enhanced with several
special features which were not available in other phones of the
same price. The head of marketing at Nokia India, Sanjay Behl
said, “The phone is a combination of product benefits and
pricing” (Web 14). This model further became the best selling
model ever in India. It also increased the brand preference of
Nokia from 66% to 77% within 9 months of its launch. This
show how nature of Indian consumer is value sensitive. The
major strategical move by Nokia in this regard was that it
charged a lower price in India than most of other countries for
the same model.

Nokia's current pricing strategy is based on 2 main theories:


1. Penetration pricing- although this strategy is usually for
companies that are trying to gain instant market share in a new
market, companies who are already well known in the market
still
do it with new products that carry new technologies so they can

take more market share from their competitors.

2. Competitor based pricing- this is used when there is a lot


of
competition in the market and a company is looking to take
another
companies market share by offering the same or similar
products
for a lower price, this happens a lot in the communications
market
and this strategy is used by every mobile phone producing
company
that is still in business.
Nokia's pricing strategy has proven very effective, this
is down to
the fact that they first sell their products for high prices and
have
very limited sales but make big profits on each sale, they then
lower
the price of their product and have lots more sales but they
make less
profit, but they still make a large profit due to the amount of
sales,
the other reason that they are so successful is that they offer
high
quality products and they sell them for the same price and
sometimes
even lower prices than the competition and have now built up
the
highest market share, they currently have 37.2% of the mobile
phone
market share.
PLACE:
Mobile phones in India are considered as to be consumer
durable, hence they are not just sold through exclusive telecom
retailers but also through general retailers. Nokia designed
modelled its distribution strategy on lines of FMCG business.
An important reason for the success of mobile phones in
India was limited reach of the landline phones in several parts
of the country. By mid 2005 the mobile phone sales in smaller
towns and cities was higher than those of the metropolitans.
The sales in these urban markets were beginning to saturate.
The distribution in these small towns called for non traditional
channels. Nokia strengthened their distribution network, and
selected distributors from FMCG line or experience holders for
durables or automobiles. In fact, about a fifth of the mobile
phone sales in India were consumer durables or service
providers’ shops.
In 1995, Nokia tied up with HCL Infinet for sales
and distribution of its phones and appointed them as Nokia
distributor for GSM handsets in India. HCL Infinet provided a
complete range of Nokia’s GSM mobile phones, data products
and mobile services. The retail network they developed was
very strong and dedicated. They came up with Nokia
Professional Centres (NPCs), Nokia Priority Dealers (NPDs) and
redistribution stockiest all over India. NPCs were one stop shops
for the complete range of Nokia mobile phones, batteries,

chargers, accessories, covers, hands free kits and car kits


amongst
others. It also provided the after sales services for Nokia’s
handsets. NPCs were multi brand retails outlets with 60% of
their area dedicated to Nokia. While redistribution stockists
were for supplying handsets across India.
HCL also came with Nokia Care Centres (NCCs) for providing
solutions to mobile related problems. These were spread all
over the country and provided phone repairing software up-
gradation services. They also displayed complete range mobile
phones, data products and complete mobile phones
accessories.
Another effective concept that Nokia up with in 2005,
was that of Nokia Concept Store in Bangalore in south India. It
was located in the city centre, MG Road. “This concept store is
being set up with an objective to provide Indian consumer with
a truly enhanced mobility experience through its cast and
exciting range of Nokia products and mobile accessories. We
are keen to lead a unique mobile retailing experience for
consumers through these touch points” Sanjay Behl, Head
Marketing, Nokia India (Web 15). Details as per Nokia website
are given below.
Nokia Concept Store in Bangalore was the country's first
concept store in India to provide customers a complete
experiential mobile experience. The store measures
approximately 2,000 square feet and is

designed to reflect the design ethic of the Nokia brand. The


layout and
design of the store follows the same pattern as Nokia Concept
Stores around the world to guarantee an easy and informative
shopping experience. With a simple-to-navigate setup, open
doorways and low-glare lighting, the store provides a relaxed
and satisfying customer experience. The high-tech display
terminals and dedicated areas for Imaging, Smart, Multimedia,
Business and Entry phones make it easy for the public to keep
up to date on the latest technologies and trends in the mobile
industry.
Nokia today has eight Nokia 'Concept stores' in
Bangalore, Delhi, Jaipur, Hyderabad, Chandigarh, Ludhiana,
Chennai and Indore” (Web 12).
Nokia kept its promise of enhancing the mobile experience of
its customers. In October 2007, they launched the first 'global
format' Nokia Concept Store in Western India at Indore. The
state-of-the-art Nokia Concept Store will provide mobile phone
consumers in Indore a world class interactive and informative
shopping experience, allowing them to get a first-hand
experience before making a purchase decision.
Nokia’s vast distribution network covered almost every city or
town where mobile network was available.

PROMOTION:
Nokia entered India with one for mobile services to start, and
had to establish its non-popular brand. To build credentials the
company used both print and television campaigns. In the early
days, print media concentrated on Nokia’s status, global R&D
and international awards won to establish brand awareness.
Even after the market grew, Nokia’s advertisements
concentrated on product attributes.
Gaining acceptance of Indian consumer is not as simple
as other
countries. India is a multicultural country, where people have
strong believe in their mythology, nationality and cultures and
to add to it, their purchasing power was not as high as other
countries where Nokia was operating. Hence, to achieve
approval of the mobile consumers in India, Nokia decided to
localize its products heavily. For the purpose of developing the
products specifically for markets with high population and low
penetration, Nokia developed a team called Mobile Entry
Business Unit.
Until 2003, Nokia used all their international
advertisements with slight modifications in India. For instance,
the advertisement for NGAGE showed two young persons
getting bored stuck in traffic jam and then they show them
combat with super natural powers. It showed how NGAGE could
help them pass their time. But it did not have a very good
affect on the Indian audience as they could not relate
themselves to the people over there. There was needed to
make special advertisements for India.

Nokia India marked its special presence in


advertisement world with ‘Made for India’ ad campaign on the
launch of Nokia 1100 . This was the fourth advertisement
created in India but created maximum stir in the industry. The
advertisement showed that the Nokia 1100 was launched first
in India and addressed all the concerns of Indian consumers.
The advertisement made a clear deviation from hitherto hip
urban-focused advertisements that Nokia are known for. It
aimed at highlighting the broad appeal of mobile phones across
all socio-economic segments of India. The aim was to highlight
Nokia’s Indian image.
Analysts believed that Nokia would lose the top end
consumers who attached lot of importance to mobile phones as
a style statement. Sanjeev Sharma, Managing Director, Nokia
Mobile Phones India, said “No, not in the least does the latest
piece o communication create dissonance in the minds of
consumers with regard to Nokia’s brand image. The technology
driven ads have created a rub-off on the entire Nokia range.
And fashion and lifestyle products create a desire at all levels,
be it the first-time urban or rural user.” (Dixit, 2004). The
advertisement was a success, and Nokia 1100 went on to
become best seller not just in India but also worldwide.
The major reason for handset was, Nokia was
expecting exponential growth in small towns and rural areas.
The company planned to build brand loyalty amongst this
segment.

They conducted research to get to know the needs and


concerns of the users of this segment. As Sanjeev Sharma said,
“One of the things we found out was that the torch is of high
value. Besides that a major concern was dust… People feared
that dust might penetrate through the gaps of their keypad,
and that explains the extensive use of handset covers in India.
Another major concern was the grip of the phone, because of
the climatic conditions in this country people usually have
sweaty palms, and therefore the, what if the handset slips?”

One advertisement that Nokia made in 2000 was a public


interest advertisement, urging users to switch off their cell
phones while watching movies. It showed a clip where hero
picks up an argument with person sitting in front row in a movie
theatre. One of the advertisements was for Nokia 2280 which
was offered in bundle with reliance mobile connection. This was
a simple one which educated the audience of availability of
cheap handset with bundled airtime.
Cricket is considered a religion in India. Nokia has had a
strong association with the sport through its advertisements. In
an advertisement released during cricketing season of 2003, a
cricket fan was watching cricket with his daughter and a
prospective groom walks in, the father throws the ball to him,
which he is unable to catch. The dejected young lad starts to
walk away, just then the television gets blank. The enthusiast
fan is frantically trying to find the score. The boy

gets a message of latest score update on his Nokia mobile


phone, impressing the father. The advertisement targeted the
middle class youth of India. Recently, Nokia sponsored the ICC
World Twenty20 2007 in South Africa. To its luck, India won the
world cup and this format of the game was an instant hit in
India. Nokia also telecast its advertisements during big sports
events like FIFA world cup, ICC world cup etc. To get the
maximum eyeballs for all the advertisements, they make sure
that the ad-films are interesting and sophisticated.
Nokia also does on-line marketing a lot. You can see
Nokia pop-ups or as-boxed on various websites whenever they
launch a new product. They also have tie-ups with many online
retailing websites. These websites market and sell Nokia
products as a part of the deal. Recently launched x2 was
heavily advertised online on various websites. Nokia have tie-
up with Google and other advertising agencies.

Another successful, India-specific campaign was the one


where
phones with Saral Mobile Sandesh (Hindi SMS) were promoted.
It targeted the rural India, where mobile penetration is low. The
advertisement showed a postman giving a mobile to a girl
which was sent to her by her brother so that she can exchange
Hindi SMSes with her brother. It was an audience specific
advertisement and encouraged the use of Hindi SMS amongst
the rural population.

Nokia was not the market leader in coloured handsets. To


regain its share, it came up with advertisement ‘Har Jeb mei
Rang’ (colour in every pocket) for Nokia 2600. It was a very
colourful advertisement, showing colours spreading out of
Nokia phone. It showed the idea of color spreading happiness in
every life. Nokia came up with some good advertisements
around the end of 2007. One of them starring the superstar of
Hindi cinema, Shah Rukh Khan calling Nokia as his friend
and companion for 10 years.

Nokia followed model-specific advertising for


most part. Different advertisements were made for each model
of Nokia, making it easy to target the specific audience, which
will demand that model. Even different media was used
according to the audience. Nokia even faced the problem of
brand identification in the early stages as there were no
specific signs suggesting that it was an advertisement from
Nokia. Nokia India sets a national record certified by the Limca
Book of Records 2012 for organizing the largest gathering of
twins in India at a single venue. ‘Nokia’s Twins Day Out’, a
first-of-its-kind festival organised to unveil Nokia’s new dual SIM
phones Nokia C2-00 and Nokia X1-01 – saw the presence of 63
pairs of twins of different age groups under one roof on June4,
2011 in New Delhi.

Nokia ran a digital and radio campaign for about four weeks
inviting the twins in the city to launch the new Nokia dual SIM
phones and become Nokia’s Brand Ambassadors for a day. The
festival saw the presence of twins aged between 15 months to
48 years enjoying themselves as they participated in games
and various fun activities organized by Nokia. The event was
especially designed and themed around ‘the twin power’.
PRODUCT LIFE CYCLE OF NOKIA PRODUCTS
 Development: When mobile phones were first introduced
they were low quality technology (bad reception, poor
reliability and had a short battery life), high priced (around
£100 for a basic model) and consumers had to be
persuaded to buy mobile telephones, as they were not yet
established as a necessity. When products are first
released, companies can expect high promotion fee's as
the public are probably not yet familiar with the product.
Also when mobile phones were first released they were
bulky and hard
to use, as product design and development are a key
figure in success, Nokia had to design phones that were
smaller and simpler for consumers to use. As people had
paid a lot for earlier, more primitive products they were
obviously not going to pay the same high prices for later
products so Nokia had to develop phones that could be
sold for less and would last longer, this is where
companies can expect to pay high production costs.
Nokia typically gives a seven day window to its
exclusive stores which showcase the product and create
the required hype.

 Growth: Sales are high and margin contributions are


quite good. The product would probably be the category
leader and demand would be high. In the growth stage of
the product life cycle,

companies can expect advertising and promotional costs


to be as
high as in the introduction stage as more companies will
enter the market and competition for market share will
increase. Advertising is a proven way of promoting
technological advanced within a market. The growth stage
is also the stage that companies will start to make a profit,
based on good market research and a strong sense of
branding and a successful marketing scheme. In the
growth stage profit isn't the only thing that will start to
develop, as there are more companies in the market it is
obvious that more technology will be developed and that
will drive prices higher, this is how companies start to
make profits. Consumers have accepted the product, in
Nokia's case, mobile phones, as a necessity they will be
more willing to pay higher prices for new phones that
emerge in the market.

 Maturity: When a product enters the maturity stage,


advertising and promotional prices should decrease, as
consumers are more aware of the product and will
research new additions to the market instead of being told
what is new. During this stage Nokia creates a product
platform depending on the success of the product and
would introduce an extension with mere cosmetic changes
but at different price points.

 Decline: At this point phone sales will be decreasing and


promotion and advertising costs will start to rise again as
companies fight for the remaining market share and
struggle
to make a profit. Once the new introduction has increased
in terms of volume and value contribution, its predecessor
would eventually be phased out. If a company has entered
decline it needs to look at the S.W.O.T forms of analysing
their market strategy
However Nokia also prolongs a products maturity stage by
introducing new packaging, colour or even enhancements and
accessories

Product Life Cycle of Nokia in India

CONCLUSION:
 With the launch of Nokia in the Indian Market it followed
an aggressive marketing campaign through constant
advertisements on television and newspapers. Its tag line
“Connecting People” states connecting people near and
far in various geographical locations with the help of a
Nokia mobile. An impressive strategy by Nokia was to
flood the Indian mobile market with various mobile models
so that Indian mobile enthusiasts can find mobile handsets
which suit their requirements and life style. With the help
of this strategy Nokia captured the Indian market and
became the household name and one of the most
preferred brands in the country. Unique Taglines of Nokia
mobiles
 I – capture moments – first Nokia handset 7650i to feature
camera, “I” referred to camera
 Made in India – used for the handset Nokia 1100 and this
was the first mobile to feature a torch on a mobile’s top
the advertising strategy was aimed at the low end
consumer
 Mobile Phones no longer for talking – this campaign was
used for the re-launch of handset Nokia 6600 it simply
defined all gaps mobiles have bridged in terms of
technology advancements, distance coverage and
entertainment and conveyed that mobiles are no longer a
device only to talk.
 A New Life – this was used for Nokia N series (handsets)
and became an instant hit

 Nokia’s strategy combined focusing on mobile market,


establishing crucial distribution partnerships, making early
investments in manufacturing and brand building and
constantly came up with innovative products.
 Nokia followed the “First Mover Advantage” strategy and
constantly bought mobiles with new designs, features and
technology and targeted the right customer segment, it
provided value-for-money to its users and a robust brand
loyalty for Nokia mobiles was witnessed. Key feature of all
Nokia mobile was standardized operation in mobile
without any complexity in functions which made the
mobile user friendly.
 Nokia was ahead of its Competitors since its inception
rivals like Sony Ericsson, Motorola and Samsung were not
able to penetrate the mobile market due to complex
mobile function and lack of promotional activity thus
succumbing to Nokia’s aggressive marketing strategy and
letting Nokia successfully capture the Indian mobile
market.

RECOMMENDATIONS:
I have found out some areas where Nokia should emphasise
more so that it continues to be the market leader and have an
edge over its competitors. These include further focus on –

1) Product competitiveness: -
The products of Nokia should be superior or at least at par with
the competitors’ regarding technology, designing and features
etc.

2) Customer satisfaction: -
Nokia should come up with more value added products and
effective after-sales services i.e., service centres should be
well-equipped to handle customer concerns and there should
be proper co-ordination between them. It should focus on
customization to gain greater customer satisfaction.

3) Research and Development: -


In order to retain the position of a market leader Nokia should
incorporate the latest technological innovations into their
handsets and should put stress on further development.

4) Demand and Supply: -


A strong demand and supply network should be established for
smooth availability of products to the customers. So that the
customers get the product as and when they require it.
5) End to End capability: -
Stress should be given on end to end capability by integrating
mobile devices applications and infrastructure. Efficient,
manufacturing, logistics and high quality products and services
should be maintained

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