A Report on CRM Strategies of Nokia

Submitted to:

Prof. Mukesh Chaturvedi

Submitted by:

Pratik Chandra (08DM071) Saumil Singh (08DM094) Subhadip Bagchi (08DM103) Tarun Goel (08DM108)

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About Nokia Vision A world where everyone is connected The Nokia Way A flat, networked organization, as well as speed and flexibility in decision-making, characterize the Nokia Way of working. Equal opportunities and openness towards people and new ideas are also key elements it nourishes. Nokia is straightforward when dealing with customers and suppliers, and always looks for innovative ways of creating and introducing products and solutions to the market. It provides individuals with a platform for personal growth in a challenging environment with a clear vision, goals and shared management principles - the Nokia Way. The Nokia Way brings together talented individuals who share these principles, and therefore share success. The values of the company make it different. They provide a sense of direction for consistent behavior as employees and citizens of the world, and in the quest to be a great company. Through extensive employee engagement, Nokia has renewed the values that reflect its business and changing environment. They act as a foundation for its evolving culture and are the basis of its operational mode. Living them every day is the shared philosophy of the Company. The following are the four pillars of the Nokia Way.

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Engaging you At every step of the way, we need to engage all our stakeholders, including employees, in what the company stands for in the world and how we meet the needs of our customers.

Achieving together We can all achieve on our own, we can do things together, but doing both in other words succeeding through collaboration and partnership shows the true potential of Nokia.

Passion for innovation We are at our most innovative when we tap into peoples desire to live their dreams, releasing the courage to make the leap into the future through new and improved ways and through better understanding the world around us.

Very human This applies to what we offer customers, how we do business and the impact of our actions and behavior on people and the environment. It is about being very human in the world making things simple, respecting and caring, even in tough business situations.

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Nokia India Nokia has played a pioneering role in the growth of cellular technology in India, starting with the firstever cellular call a decade ago, made on a Nokia mobile phone over a Nokia-deployed network. Nokia started its India operations in 1995, and presently operates out of offices in New Delhi, Mumbai, Kolkata, Jaipur, Lucknow, Chennai, Bangalore, Hyderabad, Pune and Ahmedabad. The Indian operations comprise of the handsets business; R&D facilities in Bangalore, Hyderabad and Mumbai; a manufacturing plant in Chennai and a Design Studio in Bangalore. Over the years, the company has grown manifold with its manpower strength increasing from 450 people in the year 2004 to over 15000 employees in March 2008 (including Nokia Siemens Networks). Today, India holds the distinction of being the second largest market for the company globally. Devices business Nokia has established itself as the market and brand leader in the mobile devices market in India. The company has built a diverse product portfolio to meet the needs of different consumer segments and therefore offers devices across five categories i.e. Entry, Live, Connect, Explore and Achieve. These include products that cater to first time subscribers to advanced business devices and high performance multimedia devices for imaging, music and gaming. Nokia has been working closely with operators in India to increase the geographical coverage and lower the total cost of ownership for consumers. Today, Nokia has one of the largest distribution network with presence across 1,30,000 outlets. In addition, the company also has Nokia Priority Dealers across the country and Nokia Concept stores in Bangalore, Delhi, Jaipur, Hyderabad, Chandigarh, Ludhiana, Chennai, Indore and Mumbai to provide customers a complete mobile experience. Services business With the global launch of Ovi, the company's Internet services brand name, Nokia is renewing itself to be at the forefront of the convergence of internet and mobility. From being a product centric company, Nokia is now focusing to become solutions centric. The strategic shift is built on Nokias bid to retain consumers and empower Nokia device owners to realize the full potential of the Internet. Nokia will build a suite of Internet based services like Nokia Maps, the Nokia Music Store and Nokia N-Gage around its Ovi brand. Infrastructure business Nokia Siemens Networks is a leading global enabler of communications services. The company provides a complete, well-balanced product portfolio of mobile and fixed network infrastructure solutions and addresses the growing demand for services with 20,000 service professionals worldwide. Its operations in India include Sales & Marketing, Research & Development, Manufacturing and Global Networks CRM | PGDM 2008-10 4

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Solutions Centre. Headquartered in Gurgaon, Nokia Siemens Networks has 47 offices and presence in over 170 locations across the country. R & D centers Nokia has three Research & Development centers in India, based in Hyderabad, Bangalore and Mumbai. These R&D hubs are staffed by engineers who are working on next-generation packet-switched mobile technologies and communications solutions to enhance corporate productivity. The Center in Bangalore, the biggest R&D site in the country comprises S60 Software Organization, Common Technologies, Next Generation now called Maemo Software, Productization and Software & Services. Design Studio Nokia has set up its first Design Studio in Bangalore in partnership with Srishti School of Art, Design and Technology. The first of its kind, the design studio will give Nokia designers and Indias talented youth the opportunity to work together on new design ideas for India and the global markets. Manufacturing in India Nokia has set up its mobile device manufacturing facility in Chennai, India to meet the burgeoning demand for mobile devices in the country. The manufacturing facility is operational with an investment of USD 210 million and currently employs 8000 people. Nokia has recently announced fresh investments to the tune of US $ 75 million towards its manufacturing plant in Sriperumbudur, Chennai for the year 2008. Some firsts for Nokia in India 1995 First mobile phone call made in India on a Nokia phone on a Nokia network 1998 - Saare Jahaan Se Acchha, first Indian ringtone in a Nokia 5110 2000 - First phone with Hindi menu (Nokia 3210) 2002 - First Camera phone (Nokia 7650) 2003 - First Made for India phone, Nokia 1100 2004 - Saral Mobile Sandesh, Hindi SMS on a wide range of Nokia phones 2004 - First Wi-fi Phone- Nokia Communicator (N9500) 2005 Local UI in additional local language 2006 Nokia manufacturing plant in Chennai 2007 First vernacular news portal

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Some Achievements for Nokia India

Ranked No 1 Most Trusted Brand Survey by Brand Equity, 2008 Ranked the No 1. MNC in India by BusinessWorld, 2006 Ranked as the No. 1 telecommunications equipment vendor in the country by Voice & Data for five consecutive years 2008, 2007, 2006,2005 and 2004 Ranked as the 9th most powerful brand by Millward Browns BrandZ 2008 Ranked worlds 4th most valuable brand by Interbrand, 2007 Ranked Asias most trusted brand by the Media-Synovate, 2006

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Nokias Employee Policies Paving Way to Internal CRM Nokia provides employees with market competitive rewards through a flexible global structure, which can address diverse and changing business and employment environments, as well as specific individual preferences. Its Total Compensation Package is tailored for each country and typically consists of elements such as annual base salary, incentives, bonuses, possible stock options or performance shares, flexible Work-Life balance solutions, and other local benefits. Nokia rewards employees for good performance, competence development, and for overall company success. This creates a positive and encouraging environment with opportunities for employees to optimize their potential and be rewarded fairly. Higher performance and contribution will lead to higher rewards. The Nokia global market competitive rewards structure addresses the need for flexibility, personalization, empowerment and commitment. The basic salary is set to meet market conditions, the demands of the job and individual competence and performance. The variable part may consist of incentives or bonuses and other compensation, such as overtime pay and call-out pay. Bonus System Employees have the opportunity to share in the success of Nokia. Short-term incentive programs such as individual, team, project/program incentives and the Nokia Connecting People Bonus allow Nokia to offer immediate rewards for employee and team achievements. The Stock Option Plan is a long-term reward that allows employees to share in sustained company success. Eligibility for an incentive, bonus or stock option plans is defined by the content and nature of each individual's job. Local Benefits Additional local rewards and benefits are also developed to complement the global programs and to ensure that the local market conditions are met (ex. Festival bonuses, etc.) Annual Reviews Nokia has implemented a global process, where the change in the pay level for each employee is based on the results of the annual performance review.

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Health Nokia takes care of its employee right throughout the cycle of their working life: from induction and training, through development and advancement, and on to retirement. Nokia's Work-Life balance solutions mean that health benefits and possible local retirement benefits are tailored to individual needs according to factors such as tenure, contribution, performance, roles and responsibilities. Commitment to Self-development People at Nokia continuously look for ways to improve their performance in order to stay at the forefront of technology and to develop their own competencies. Employees are encouraged to create their own development plan and take advantage of the variety of available learning solutions and methods. On-the-job learning is also heavily encouraged. Coaching Coaching is regarded as a vital part of continuous learning. Highly skilled employees at Nokia provide their counterparts with rich sources of experience and knowledge. Receiving coaching and participating in different teams fuels employees development as well as give them the opportunity, every day, to share ideas and goals with innovators and industry leaders. Learning Solutions and Training Nokias employees have access to a wide variety of training activities. Through its global network of Learning Centers, it aims to offer a consistent standard of training and development to all its employees. The Learning Market Place Intranet contains information on all Nokias learning solutions including elearning as well as classroom training programs. Management Training Nokia places particular focus on developing managers in management and leadership skills. It is one of the key areas in competence development. There is a full range of training available from new managers programs to senior programs for its more experienced personnel. Internal Job Market All of its employees are invited to look at the job opportunities available inside Nokia. All vacancies, with the exception of very senior positions, are advertised internally. Employees are encouraged to improve their competencies through changing their positions. Internal job opportunities, the possibility to register to its internal candidate pool and other services for job-seeking inside the company are available through the Internal Job Market Intranet. This aims to give Nokia people the opportunity to manage their own careers. CRM | PGDM 2008-10 8

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Performance Management Nokia has a performance management system across the whole company called Investing In People (IIP). This system is closely aligned to the company strategy and planning processes and involves biannual formalized discussions between employees and their managers. Employees are encouraged to be active and to "own" their IIP. In this way, employees always understand what is expected from them, how their individual achievements support the Nokia overall strategy, and how they are rewarded. Work Life Balance The well-being of its employees is important and also fundamental to the Nokia Way. As an employer it recognizes the importance of the balance between work content and personal interests and needs, as well as the impact of that balance on employee well-being. Nokia is offering services, programs and guidelines to support employees possibilities to maintain worklife balance according to their changing needs and life situations. These work-life balance solutions vary by country according to local needs, legislation, employment market situation and common practices. Typically they include e.g. teleworking, mobile working, flexible working hours, sabbaticals, study leaves, health care services as well as recreational activities and other activity clubs. Flexible Working Mobile Working and Teleworking: We recognize the diverse needs of the individuals in the different phases of their lives. We can provide our employees with innovative solutions aiming at having positive effects on the overall quality of life, job satisfaction and job performance. Depending on the situation and needs, flexible working solutions can provide alternative modes of working such as teleworking at home or at other locations (e.g. working at remote sites). Flexi Time: Depending on the local market conditions, employees may take advantage of flexi time including flexible working hours and part-time working. Time Off: Nokias flexible working solutions can include unpaid time off and sabbaticals. These solutions support Nokias philosophy of Employee Personal Growth and Self-management and enable employees to take extended leave from work. CRM | PGDM 2008-10 9

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Volunteering Volunteering is yet another way to help create a balance between personal convictions and professional lives. Nokia's global volunteer program Nokia Helping Hands gives employees a chance to contribute their time and effort to worthy causes in their communities. Nokia employees can use 1-2 working days per year for Nokia Helping Hands volunteering. Other Services It offers fitness facilities and programs as well as other sporting, social and cultural activities, which promote workplace relationships as well as personal development and comfort. These well-being services may also include laundry service, cafeteria, take-away food, day care and on-site concierge services, among others.

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Nokias Customer Policies Nokia aims to provide innovative, high-quality products and services which help people connect. It intends to meet the needs of all users, including people with physical, sensory or cognitive limitations. Product and service development takes account of social and environmental issues, including privacy concerns associated with the convergence of mobile and internet technology. It sells the vast majority of products through distributors, network operators and Nokia branded stores which are owned and operated by its retail partners. Some sales are made direct to users through Nokia Online. Nokia is also creating a chain of flagship stores in India's premier shopping locations which offer Nokia products and services in a fashionable, interactive environment and with a highly-trained staff. Research among customers and consumers continues to show high levels of satisfaction. Trade customer satisfaction levels in 2008 remained high despite increasing competition. Understanding its Customers Nokia aims to provide products and services which meet the needs of trade customers and consumers. It researches the views of both groups to understand where it is succeeding and how it can do better. Primarily the Nokia customers can be segregated as under. Trade customers Nokia researches trade customers views on it through the Listening to Trade Customers survey. An independent research company carries out the survey each year. It reaches executive and operational contacts in a sample of customers that accounts for around 80% of Nokias revenue each year. In 2008 about 1,000 contacts from 300 customer companies in 90 countries took part in the trade customer satisfaction survey. The responses showed satisfaction with Nokia had remained very high despite increasing competition. Comparison with others in the industry placed it in the top 10% of telecommunications companies globally and ahead of all key mobile competitors. The research revealed the following Nokia strengths driving customer satisfaction:

Diversity of product range Ease of use of products Relationships with its account teams Logistics CRM | PGDM 2008-10 11

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The consolidated feedback is used to understand where systematic improvements are needed. Nokia Account Managers discuss initial survey results with their teams and customers, and take action relevant to individual accounts. Customers are informed of the key local actions relevant to their account and receive a response letter highlighting the overall key findings and improvements planned by Nokia. Individual Consumers Nokia Care provides support services to consumers through online, email and call center services, supported by a network of authorized service centers. The support includes basic product information, guides and demonstrations, discussion boards, software updates, advice on specific issues, and warranty repairs. It also helps consumers to find out where to recycle their old products. It aims at getting a wide picture of consumer experience by using different consumer feedback channels, and respond with targeted improvement actions. The main feedback channels include consumer satisfaction surveys, feedback through independent market research companies and Nokia Care contacts. Network Operators Nokia primarily deals with its Service Operator Customers through its Nokia-Siemens Networks arm. Nokia enquires and assesses requests about performance from its network operator customers. It responds to these requests through its customer account management interface.

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Nokias way towards CRM Nokia, owing to its vast portfolio of products and services and multiple channels has corresponding ways of answering to a successful CRM. Its strategies include: Product development through Customer-Centricity (in product designing). Distribution- Company owned and third party. Ease of Servicing. Ease of Product Knowledge.

Product Development For a Company that envisages a connected world, Nokia develops a wide spectrum product range especially designed to meet the requirements of its customers. Be that Business or Individual. It evolves its product and services portfolio in tandem with the evolving needs of its customers. A Nokia product is not only a benchmark in its class of products but also ensures that when a customer goes in for a repeat purchase it again opts for a Nokia. Some of the key features of a Nokia product (in this case its mobile handsets) include: Ease of product usage. Ease of product triability. Impeccable product quality and build. Ease of software up-gradation and third party software usage. Locally developed product range (ex. Nokia 1100 for the Indian Tier 2 and 3 cities). Multiple language options. Convergence (internet, PDA and multimedia bundled into a handheld device). Right product at the right price.

Nokia Way Jam was a massive online discussion aimed at understanding the customers better. It had over 9000 registered participants worldwide and over 36000 viewed its strategy and value videos and discussions. The key findings were used in while developing its Ovi services and subsequent product range leading to co-creation.

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Some of the features that Nokia has included to ensure that its products are essentially customer centric.

Distribution Traditionally, distribution is not considered to be a part of CRM but Nokia believes that by ensuring a deep penetration in the market it can cater to the customer best and ensure retention as well. This would not only ensure a better reach but also ensure an arms length in case any customer faces any problems pertaining to the product. Thus, aiding in developing better client relationships. Nokia primarily deals in with company owned and third party stores. Based on distribution strategy the corresponding stations of experience vary, they would be discussed in details in the subsequent sections of the report. Ease of Servicing The product is as good as it is easy to service, this holds true for Nokias products. In the rare occasion that the products need to be serviced (other than the consumable parts like the battery) the product can be easily repaired at any of the local Nokia or third party stores. Ease of Product Knowledge Nokia thoroughly believes in the power of knowledge. Thus it provides easy access to all product relevant information through its website, stores and company sales executive. Through its user reviews and forums on its website Nokia allows customers to comment and review the products.

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Stations of Experience The stations of experience vary with the channel through which the customer comes in contact with Nokia. The channels are, namely: Online Store Nokia Company Stores Nokia Third Party Stores Company sales interface (in case of B2B sales)

Online Store

Website Loading
Quick (+ve)

Website Layout
Well Categorized (+ve) Detailed info about products & services (+ve) In depth details about various topics (+ve)

Customer Services
All info provided with ease of access (+ve)

Discussions and Forums

Open ended (+ve) Negative as well as positive reviews available. Thus, giving an exact picture (+ve)

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Nokia Company Stores

Genuine Product and Accessories with Nokia warranty and bill. (+ve)

Large assortment of Models available. (+ve) Some models were not available (ve)

Convenient Store Layout (+ve)

Sales force informed and technically sound. (+ve)

Value added services (music, software, etc.). (+ve)

Though the problem with the Nokia Priority Dealers was that they were located only in the Tier 1 and Tier 2 cities of India. In the smaller towns the customers are still left to the misery of third party vendors.

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Store Layout & Staff Queue manageme nt system for tackling customers. (+ve) Convenient (+ve) Specific Sections for different customer needs .(+ve) Staff well informed, courteous and trained. (+ve)

Hardware Repair Zone Customers can see the repairing work. (+ve) Customer informed about the fault and problem area. (+ve) Expensive (ve)

Service Support Zone Easy upgradation of firmware software. (+ve). Easy loading of third party software. (+ve) Customer can see the progress of work. (+ve)

Learning Zone Human and automated product bays. (+ve) In depth and customer friendly product and service information . (+ve).

Waiting Lounge Comfortabl e Seats (+ve) Soft Music Welcome drinks and refreshmen ts (+ve)

The Nokia care centers are still few in number and the Company intends to open more such stores in the coming years.

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Nokia Third Party Dealerships and Vendors The third party dealerships are monitored by Nokia but their functioning and working varies from store to store. Due to lack of any standardized store policy the customers are left to the accord of these stores and the customer experience varies from store to store. Nokia Sales Interface The Nokia Sales interface primarily deals with institutional clients and is majorly associated with the Nokia-Siemens Networks. As it is completely a B2B format the experiences are more formal and process governed rather than on a one on one client basis. Some of Nokias clients in the Telecom Service Provider domain in India include BSNL, Airtel, Vodafone, Aircel and Idea. Computer aided (Software based) CRM The Customer Data Master or CuDM is Nokias answer to a software based customer information management system. It not only aids in managing B2B clients but also B2C customers.

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Advantages of CuDM Tangible benefits (Quantified/monetary value) Increased productivity Low operational costs Reduce workforce, including external & vendor costs Lower computer expenses Reduce rate of growth in expenses Reduce facility costs

Intangible benefits (e.g. efficiency increased) Improved asset utilization Improved resource control More timely information More information Legal requirements attained Increase job satisfaction Improved operations Better corporate image Higher client satisfaction

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An Example of Nokia Handling Mass Scale Product Fallout BL5C Battery (excerpts from the Company website)

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The BL5C Debacle The users had faced overheating problems with the batteries. Nokia offered to replace 46 million BL 5C batteries worldwide. The company provided free replacement of batteries and logistical support. The company provided customized online services to find out whether the battery is defective or contact the nearest Nokia centre.

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Customer Testimonials Positive My Nokia 5800 Xpress Music takes me into an express way that has no speed limits and I keep riding with no fear of being fined. Its really a machine worth having and I would recommend it to anyone thats interested in acquiring a mobile technology that separates the new school from the old school. Its a great fun to hold. Forget about the feminine look and the designs. Its absolutely rugged and value for money. -A Nokia 5800 user after 3 months of product usage

Negative I bought a new Nokia 6700c model in Rs. 12,629 in November 2009 having 1 year warranty. But after 3 days it had stopped working. Each time we rush to Nokia care they upload the new software but it doesnt works. The phone automatically switches off after a minute or so. They sent to Kolkata office for repair twice but that has not helped either. I dont know what to do now -Dewashish Gupta

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