New Product Development

Term Report
On

Submitted by
Yasir Rafiq
MBA – 3C
Reg No - 6086

Submitted to
Sir Raza Syed
Date of Submission
30 December, 2009

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 LETTER OF THANKS

Sir Reza Syed

Instructor
Bahria University Karachi
2nd October 2009.

Dear Sir,

I am pleased to inform you that the marketing report you assigned for 30th
December 2009 has been completed.

I have chosen a Nokia Mobile Phone as the topic for the report. This report as
per your instruction has covered all the authentic areas of concern and
contains all the relevant information about the company’s marketing
environment, marketing mix in detail, competitor’s analysis, etc.

I would dearly like to thank you for the faith you showed in our capabilities &
the encouragement you gave us when assigning us the report.

In this report you will experience concise idea about this report in the
executive summary attached. I have tried my best to gather as much
information as possible.

All rules and regulations for the preparation of the formal & marketing report
have been taken into consideration.

If there is anything else you wish to know. We will be glad to assist.

Thank you

Yasir Rafiq

MBA - 3C

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Preface
Innovation and invention has become the part & parcel of today’s life.
Technology, beyond the shadow of any doubt, has human made life easy.
Nokia, a Finland based corporation, has been using the latest technologies
in its products such as fixed line voice telephones broad bank access voice
over IP and wire less LAN.

This project is related with the new product of Nokia-corporation i-e new cell
phone E91 (mobile phones with USB flash drive). The E-series is called
Enterprise series and this new mobile is especially designed for business
professionals and executives hence this segment is its target market. The
E91 is also helpful to the students although it is expensive one. Besides the
features of attaching USB flash drive, it has a complete computer system
with 9GB memory, music system, portable charger and distinguished colors.
The product has been passed through different processes such as customer
Testing, conjoint analysis, BCG analysis.

To work on such a new creative idea was not an easy task. I would like to
thank Mr. Irfan, an expert in mobile technology, on his support.

I am happy to express my gratitude for helpful suggestions made by Zaeem

Khalid, Umer Saeed and Naveed Ahmed.

I am especially glad to record my appreciations to Salman Ahmed. He

continuously encouraged me with great intelligence and care.

Among many others who helped with the project, I would like to
acknowledge the great assistance of Sir Mazhar.

A special debt is owed to Nokia Corporation which allowed me to work for

them and enabled me to develop a new product the E91. I can only say
Nokia is surely connecting the people

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 Yasir Rafiq
MBA-3C

Executive summary
Nokia Corporation, a Finland based company incorporated in 1967, is an
international communication company in global leader in mobile hand set
telephones. Nokia has a world wide share of about 40%. Nokia focused on
the key growth areas of wire lines wireless telecommunications. Nokia
produces mobile phones for every major market segments and protocol
including GSM, CDMA, and W-CDMA (UMTS). The corporation also produces
telecommunication network equipment for application such as mobile and
fixed-line voice telephone ISON, broad band access, voice over IP, and
wireless LAN. Nokia’s group structure is slightly different than its
employment structure. Nokia Mobile Phones (NMP) is the world’s largest
mobile phone manufacturer. With its comprehensive product portfolio
covering all consumer segments and standards, Nokia is one of the pioneers
of Mobile Information Society. Nokia’s mission is to enable people to connect
with one another and to information sources regardless of time or place.
Nokia’s technology and applications are designed for human needs and
based on solutions that function seamlessly and effectively together Nokia
Corporation consists mainly of Nokia Mobile Phones, Nokia Networks and
Nokia Ventures. Nokia has an advanced research and development
organization.

This project is related with the new product of Nokia-corporation i-e new cell
phone E 91 (a mobile phone with USB flash drives). The E-series is
called Enterprise series and this new mobile is especially designed for
business professionals and executives hence this segment is its target
market. The E91 is also helpful to the students although it is expensive one.
Besides the features of attaching USB flesh derive, it has a complete
computer system with 9GB memory, music system, portable charge and
distinguished colours.

Nokia music fans will appreciate the dedicated quick cover keys on the
Nokia, which let them quickly and easily control the device’s music features
from the outside of the folded device, for instant tunes wherever they are.
With the advancement of technologies, new and innovative handsets are
being launched in the market from time to time. Among all the widgets
present, the Nokia E Series mobile phones perfectly meet the requirements
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and expectations of all the individuals and its huge popularity among the
masses is a clear indication of its greatness. The stunning colours and
amazing designs make them more beautiful and their mind blowing features
are highly capable of fulfilling the requirements of all the professionals and
business executives. We have clearly mentioned the key features of all the
available Nokia E Series phones, so that you don't face any difficulties while
selecting the best ones for you.

The project starts with the market analyses that comprise both the internal
and external environment. This portion is followed by consumer analyses
that include market segmentation, target market, needs evaluation. The
product has been passed through the conjoint analysis The marketing
strategy with its four elements designed for Pakistani business professionals
have also been discussed. Sales have been projected for five years (2009 to
2010) along with cash flow statements. BCG analysis and SWOT analysis of
the new mobile will tell you the position of E 91.

NOKIA
Nokia Corporation, a Finland based company incorporated in 1967, is an
international communication company in global leader in mobile hand set
telephones. Nokia has a world wide share of about 40%. Nokia focused on
the key growth areas of wire lines wireless telecommunications. Nokia
produces mobile phones for every major market segments and protocol
including GSM, CDMA, and W-CDMA (UMTS). The corporation also produces
telecommunication network equipment for application such as mobile and
fixed-line voice telephone ISON, broad band access, voice over IP, and
wireless LAN. Nokia’s group structure is slightly different than its
employment structure. Nokia started of as a pulp, rubber and cable
manufacturing company to a major manufacturer of mobile devices. It’s the
leading manufacturer of mobile devices. Nokia offers a wide range of mobile
devices with the experience in music, video, imaging, gaming and a lot
more. It also provides the services for network operators. Company recorded
revenues of 41,121 Million € in 2007 about 20.3 % increase from 2006.

.NOKIA PAKISTAN
After years of managing Pakistan market from Middle East, Nokia presence
in Pakistan in April of 2008. Imran Khalid Mahmood, Country General
Manager Nokia Pakistan & Afghanistan, said that the opening of this locally
centralized office reflects Nokia’s strong commitment to Pakistan. The Nokia
website still includes Pakistan in the Middle East region though. Many
reasons could be given for Nokia’s move: sixth largest mobile phone market

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in Pakistan (90 million users/Sims as of Sep 2008), increased competition
from Korean and Taiwanese competitors and better brand management.

Some believe that a big reason why Nokia moved in to Pakistan was to
counter the threat of fake Chinese phones. The low-end knock-offs of Nokia
(and other brands) from China had flooded the market and threatened to
erode Nokia’s market share and to dilute its brand. Smuggling of Nokia
phones is another problem. Another positive development is that Nokia
opened customer care centers in Lahore and Karachi. As we wrote before, it
will strengthen their image and promote brand loyalty.

INITIAL NEW PRODUCT STAGE

OPPORTUNITY IDENTIFIED

Nokia wants to offer intelligent and entertaining multimedia functionality in

an easy to use, ultra slim package’.A latest study conducted by Nokia
pointed out that the people in Pakistan prefer style more than the need of
being connected. The study says that the new devices combined with a
attractive fold design with quick cover keys is bringing out substance to
style, which is more acceptable in Pakistan as compared to other markets in
the region of Asia and Asia Pacific. The study said that for innovation-
conscious users ‘we need to offer intelligent and entertaining multimedia
functionality in an easy to use, ultra slim package’.

NEW PRODUCT IDEA

The idea starts with thoughts of cell phone then it linked with next
association i.e. USB flash drive and Nokia book. It is found that the
transference of data every where is not possible. One has to keep lap top
and other necessary equipment with you all the time. This problem is
addressed while conceiving the new product idea. A quick view of data and
all computer functions in a cell phone for business professionals and
students. Conversion of data from USB to cell phone where and when you
want will facilitate business professionals and students at reasonable price
The new idea of adding new features to Nokia E series mobile phone has
been conceived by customer preferences for new features, employee’s
suggestions and creative technique i.e. mind mapping.

INFORMATION FOR DECISION

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A statistical method has been used to determine the relative importance
consumers attach to salient attributes and the utilities they attach to the
levels of attributes. The technique is based on the premise that products and
services are made up of features or attributes that vary according to the
identified preferences of consumers. This technique is used to make the
decision of manufacturing the new idea of Nokia E-91.

RS
Prices 65990 70000
60000

Brand E series N series

Memory 8 GB 8.5 GB 9GB

Portable
Yes No
charger

RESULTS
Attribute Portable
Prices Brands Memory
s Charger

Rs
|||
60,000

Rs
|
65,990

Rs
|
70,000

E-series |||

N-series |

8 GB |

8.5 GB |

9 GB |||

Yes |||

No |

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 DECISION POINT

Decision to Go for Nokia E91 came out of a latest study conducted by Nokia
pointed out that the people in Pakistan prefer style more than the need of
being connected The study said that for innovation conscious users ‘we need
to offer intelligent and entertaining multimedia functionality in an easy to
use, ultra slim package’. Cell phone users in Pakistan were involved more in
style, which was beyond their expectations. Users in Pakistan needed style
and design more than other features. Youngsters demanded innovation in
multimedia computer that brings the complete experience to a sleeker body.
Nokia has created a very eye-catching device using premium materials to
enclose world-class features and experiences.

PRELIMINARY INVESTIGATION STAGE

MARKET ANALYSIS

INTERNAL BUSINESS ENVIRONMENTS

Nokia, one of the leading cell phone manufacturers, is renowned for its
organizational culture. Flexible and speedy decision making in a flat, net
work organization form. Since from the beginning, the company always tried
to shape a Culture of TRUST, RESPECT and OPENNESS. To effectively control
the internal business environment, Nokia conducts continual appraisals of
the business’s operations and readily act upon any factors which cause
ineffectiveness in any phase of the production and consumer process.

EXTERNAL BUSINESS ENVIRONMENTS

Changes In the external environment will create opportunities or threats in
the market place. Fluctuating economy, changing customer attitude and
values, and demographic patterns heavily influence the success of Nokia’s
product on the market and reception they receive from the consumers. Major
external and uncontrollable factors that influence an organization's decision
making, and affect its performance and strategies. These factors include the
economic, demographics, legal, political, and social conditions, technological
changes, and natural forces.

THE ADOPTION PROCESS

Research, on how markets accept new ideas, has led to the adoption curve
model. This demonstrates when different groups accept new idea,

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emphasizing the relationship between the groups and showing that there are
leaders in the acceptance of new ideas.

Innovators
They are the first to adopt a new idea. They are eager to try a new product
and are willing to take risks.

Early adopters
Are well respected by their peers and are often opinion leaders. They tend to
be younger, more mobile and more creative than later adopters.
Early majority
They avoid risks and delays trying a new product.
Late majority
They are cautious about new ideas.
Laggards or Non-adopters
They prefer to continue past behaviour and are suspicious of new ideas.
Following figure shows the adoption curve for a typical E 91.

PRODUCT LIFE CYCLE

2G Mobile
Years Karachi Islamabad Fixed line
Lahore

2009 90,000,000.00 96,000,000.00 75,000,000.00

Digital TV
108,000,000.0 120,000,000.0
2010 96,000,000.00
0 0
Broadband
120,000,000.0 135,000,000.0 108,000,000.0
2011 Portable music player
0 0 0
Games console
VOIP
135,000,000.0 150,000,000.0 126,000,000.0
2012 PVR
3G 0
Mobile 0 0

186,000,000.0 180,000,000.0 150,000,000.0

2013
0 0 0

Expected performance of Nokia E-91

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 MARKET SEGMENTATION
Entry level (Rs 2,500-6,000)
Nokia targeted low income people and first time mobile buyers in this series .
Sets include are 1200, 1208, 1100, 1110, 1112 etc
Classic Series:(Rs 7,000-17,000)
Nokia targeted decent people in this series . Sets include in this series are
6300,6233,6120,3120 etc
N gage series (Rs 8,000-16,000)
Nokia targeted game lovers in this series . These sets include game like play
station ,PSP and Xbox
Xpress music (Rs 13,000-35,000)
In this series music lover are targeted. Sets are 5220,5310,5800,5610,5320
etc
N-series (Rs 18,000-50,000)
This series is also called multimedia computer. Named as on step ahead
multimedia.Sets are N70, N73, N95 ,N96, N80, N81, N91 etc
E-series (Rs 18,000-60,000)
This series is for business people. Sets include are E51,E66, E71,E61i,E90 etc

Premium series (Rs 80,000-1,500,000)

In this series nokia targeted people which show visual status. Sets include in
this series are Sephira arte,8800Gold,8800arts etc

The profile for Nokia E-91 customer consists of the following geographic and
demographic:

Geographic:

➢ Nokia E-91 immediate geographic target is rural Pakistan.

➢ The total targeted population is estimated at 100 million.

Demographic:

➢ Male and female.

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 ➢ Ages 25-50, this is the segment that makes up 80% of the Nokia
mobile phone market according to the NOKIA Ltd.

➢ Professionals and College students.

POSITIONING STRATEGY
When Nokia E-91 positions its brand in the crowded mobile phone
marketplace, its message must clearly bring together the technology and
human side of its offer in a powerful way. The specific message that is
conveyed to consumers in every advertisement and market communication
(though not necessarily in these words) is "Only Nokia Human Technology
enables you to get more out of life “In many cases, this is represented by the
tag line, "We call this human technology". This gives consumers a sense of
trust and consideration by the company, as though to say that Nokia
understand what they want in life, and how it can help. And it knows that
technology is really only an enabler so that you-the customer-can enjoy a
better life. Nokia thus uses a combination of aspirational, benefit-based,
emotional features, and competition-driven positioning strategies. It owns
the "human" dimension of mobile communications, leaving its competitors
wondering what to own (or how to position themselves), having taken the
best position for itself.

E-91 has created a distinct position in customer mind by:

➢ Nokia logo
➢ Slogan “Know our past. Create the future”

➢ Latest Ring Tone

➢ New Messages Tunes
➢ The specific message that is conveyed to the customers in every
advertisement.

MARKETING MIX
Price
The skimming price is used for E 91.

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The expected price is from 60,000 to 70,000. This cell phone is related to E-
series. This series is also called ENTERPRISE series.
Distribution
Coverage: Nokia is widely available in al over Pakistan.
Distributor
Nokia main distributors are united mobiles, mobiles zone and Advance
telecom. Nokia mobiles are mostly available at every mobile outlet.
Promotion
With the advancement of technologies, new and innovative handsets are
being launched in the market from time to time. Among all the widgets
present, the Nokia E Series mobile phones perfectly meet the
requirements and expectations of all the individuals and its huge popularity
among the masses is a clear indication of its greatness. At 3mobileshop, the
users will get all the latest Nokia E Series phones at very reasonable rates.
The stunning colours and amazing designs make them more beautiful and
their mind blowing features are highly capable of fulfilling the requirements
of all the professionals and business executives. I have clearly mentioned the
key features of all the available Nokia E Series phones, so that customers
don't face any difficulties while selecting the best ones for you.

Apart from giving the cheap Nokia E Series phones, Nokia also loves to
amaze its customers by showering on them exciting free gifts and interesting
deals. One can get exciting free gifts like laptops, games and many more
and thus, nowhere will you
get such thrilling and exciting gifts along with handsets. These superb
gadgets come with plenty of high-end features like video recorder, camera,
music player, Bluetooth Technology and many more and with the help of
QWERTY keyboard, one can access many more interesting features on these
astounding Nokia phones. Our dedicated 'Customer Care Centre' efficiently
pays heed to all the queries of our esteemed customers. Make efficient use
of this opportunity and so, just hurry and purchase all these exciting latest
Nokia E Series phones along with lucrative free gifts from Nokia. Nokia has
been doing its share of marketing: the signs and hoardings on the road and
media advertisement.

Advertising:
1. Though TV , Sign boards , Bill boards , Radio and Newspaper
2. Broachers , Posters ,Dummies and display stands
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Personal selling:
By product training to Distributer(what is product)

Sale promotion:
1. Gift like Yamaha bike , Philips TV , Mitsubishi split AC , watches and
digital diary
2. With N73 mobile offer 2500Rs original Blue tooth free
3. With 6220 offer leather Wallet
4. With 6300 offer caps and shirts

ANALYZE THE COMPETITION

“Nokia is fundamentally changing its business model to transform both the

company and the industry. While Nokia continue to compete with the
traditional mobile device manufacturers, Nokia also are dealing with new
competitors entering the market from the PC and Internet industries. These
are the areas where the biggest opportunities lie.”With all this technology
available in the communications market it is obvious that Nokia will have
lots of competition, they include:
Sony Ericsson Motorola Samsung Siemens
Panasonic NEG Sagem Toplux
DEFENDING MARKET SHARE
While try to expand total market size. Nokia continuously defends its current
business. The most constructive response by Nokia to defend its shares is
continuous Innovation, and E 91 is an example of it. The new E 91 will
increase the competitive strength and value to customers.

Year 2007 2008

Nokia 34.7 38.8

Ericsion 11.3 14.3

LG Samsung 21.7 14.1

Motorola 7.5 9.2

Sony Electronics 6.4 7.2

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 Others 18.4 16.4

Total 100% 100%

Total growth of the

22.6 12.3
year

Following are the policies for E 91 designed by Nokia Corporation.

Premium performance.
The E91 is reliable and durable like other products of Nokia.
Complete information.
Complete information is given on the ads regarding the concerned products.
Counter offensive defense
Nokia has competition with Samsung, Ericsion, Motorola, and Sony Ericsion.
Nokia has to adopt counter Offensive defense by launching innovative
products. E91 is the best example of such strategy.

Nokia has competition with Samsung, Ericsion, Motorola, and Sony Ericsion.
Nokia has to adopt counter Offensive defense by launching innovative
products. E91 is the best example of such strategy. Nokia is the major
supplier of phones and at is located in one of the smallest countries of the
world (5.2 million populations) and one of the most remote countries in the
western economy. Nevertheless, it has grown enormous enterprise by simply
being cost leader and using its advantage to constantly bring about product
innovation and participate aggressively in the market places. Similarly,
people who download music (or the modern day equivalent, if there is a
thing) want an I Pod. In spite of the presence of big names in consumer
electronics like Samsung, LG, Sony-Ericsson and Motorola, Nokia really rules
the mobile phone market all over the world with nearly 40% of the market
share with no close competitors. Nokia is certainly the king when it comes to
brand value, service and experience. The Finnish mobile giant is clearly No. 1
choice in South East Asia including India and China. How they could reach
the top position? Let’s find out.

1. Call Quality
Nokia is known for its circuitry to handle the RF Reception and providing the
best call reception quality. You won’t see users complaining much about the
noise or the disturbances within Nokia phones unless its a problem of the

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telecom service provider. So, the primary objective of a mobile phone i.e. to
serve us with better and clearer sound when we talk is served by Nokia
perfectly. And if you are a person who is accustomed to other mobile phone
manufacturers, then you know that even Apple phone and Sony Ericsson are
guilty of it.
2. Hardware
You can be assured of the quality that Nokia provides in your phone
hardware. The circuits are far more durable and reliable than any of the
other mobile phone available in the market. I am using a single Nokia phone
for 6 years and I had to take it to the service centre only once during this
period for a trivial problem. That speaks for the truth I am talking about.
3. Battery
The Battery life of Nokia mobile phones is longer than many other cellphones
available in the market. People who talk a lot prefer Nokia than any other
brands. They always know that the battery will not run out in the middle of
the call. iPhone has had this problem with battery life in the past and that
hasn’t been solved yet. Nokia leaves others miles behind when we consider
the longevity of the battery.
4. Robustness
Everyone knows that Nokia mobiles are truly rock solid. I want to share my
experience with respect to this. I dropped my Nokia the very next day I
bought it. I dropped it on the staircase and it bounced to nearly 12 steps
down. My heart pumped out with the fear of losing the phone on the second
day. But what I found when I reached downstairs is that the phone is fully
functional and it only had a few scratch in its body. Since then, it slipped off
my hand many a times but it did not refuse to function. Thanks to Nokia for
making such rugged phones. It would really be the worst thing if I had to
take my phone to service centre or had to buy a new one every time I
dropped my phone.
5. Wide Product Range
Nokia has a vast and huge list of mobile phones. Nokia mobile phones are
available for every consumer groups, starting from simple and durable
phones for the low income groups and high-end phones for those who can
afford to spend money. So regardless of you being a corporate honcho or a
fresher into the world of economy, Nokia has something for you. The sheer
range of products is enviable and at the same times the success mantra of
Nokia’s dominance.
6. Customer Service

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The Customer Care of Nokia which they call the Nokia Care, handles the
complaints very efficiently satisfying their customers. I had a problem with
the display of my Nokia Phone. I took it to the Nokia Care and they very
quickly fixed it and gave it back. Its just the trust they implement on the
customer’s mind, is really appreciable. Hope you remember the battery
bursting incidents of Nokia mobile phones in India. The BL-5C battery, which
was the culprit in this case, was promptly replaced with no questions asked.
They also helped people with a temporary site to go and put their unique
manufacturing id and see if they needed to change the battery or not.
Believe me, the call wasn’t that easy keeping in mind the number of battery
parts they had to change.
7. Reliability
Nokia really has become a brand that people can trust upon. The error rates
or crash rates of Nokia phones are very low. It will not dump you when you
need this phone. And petty may this be but still; Nokia has this trust thing
going in favor of it. People can blindly trust Nokia in Asian Countries. And not
to mention, Nokia has deservingly earned this place.
8. Price
The price tags of every Nokia mobile phone are very reasonable. one can still
get a GSM mobile phone for as less as Rs. 1200 in Pakistan with all the basic
features.
9. Experience
Nokia is the largest cell phone manufacturer in the world with about 40% of
market shares with its competitors nowhere near its sales volume. They
know the world of mobile phone more than any other. They have ages of
experience, hundreds of success stories and dozens of smart handsets in
current portfolio. That helps them to evolve and thereby nourish our needs.

TECHNICAL FEASIBILITY ANALYSIS

PRODUCTION STEPS FOR MANUFACTURE
Nokia is one of the world's largest and most sophisticated manufacturers.
Though highly automated, the production process still involves significant
human intervention, from placing high-value components like digital camera
modules by hand, to visually inspecting and testing finished products, to
packing phones in boxes. For strategic reasons, Nokia does virtually all this
work itself, rather than farming it out. To ensure control over the process
and keep costs down. The formula seems to work. On average, it costs Nokia
69 euros ($87.63) to make a phone, and on average it sells phones for 102

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euros ($129.54), leaving a gross margin of nearly 33%, better than its rivals
can muster

The Stock Room

Parts pour into Nokia factories by the hundreds of millions every day. The
company sources virtually all its components from outside suppliers:
everything from memory chips and microprocessors to liquid-crystal
displays, keypads, and plastic cases. On arrival at the loading dock, the parts
are shuttled off on forklifts and cranes to gigantic storage areas, from which
they're later fetched as needed for production.
Preparing a Production Run
The first step in making a Nokia phone is to gather up all the needed parts.
Most electronic components, from resisters and capacitors to highly-
integrated circuits, are delivered by suppliers on reels of tape, protected in
circular plastic cases.

The Foundation: A Printed Circuit Board

At the heart of every Nokia phone is a slender strip of plastic covered with a
latticework of basic circuits and settings for the installation of chips and
other electronic components. Here, printed circuit boards enter the paste
printing machine, which lays down a patterned layer of solder paste, made
from a tin-copper-silver alloy. The paste is later melted in an oven to bind
electronic components to the board.
Providing the Parts
Reels of components are loaded onto spindles. From there, they feed into
automated "pick-and-place machines" that grab individual parts off the tape
and lay them precisely onto the printed circuit boards. Nokia uses mostly
"surface mount" components that lie flat on the board.
Laying Down the Basics
Circuit boards travel down a belt from one pick-and-place machine to the
next, and by the time they reach the end of the line, all the basic
components have been installed. After the parts are in place, the boards go
to an oven for seven minutes, where the solder paste is melted and the parts
become firmly attached.
Testing and Configuring
The first quality test takes place after the basic components have been
installed. The boards are advanced automatically on tracks into the "flash
and alignment" stage, where basic software is first installed into
programmable components.
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Does It Pass Muster?
A robotic arm lifts the board off the track and puts it into a bay. There, the
chips on the board are configured with low-level settings, such as what
power level the phone will operate on. Then, a series of electronic tests are
administered to ensure that the circuit board is perfect, all the parts work,
and that they have been correctly installed.
Time for the Delicate Stuff
At this stage, the hand work begins. Here, a worker plucks digital camera
modules from a reel and installs them with tweezers onto assembled, tested,
printed circuit boards. The expensive and fragile liquid-crystal display
screens are also added by hand.
Putting It All Together
A nearby worker performs another essential task by hand: sandwiching the
completed printed circuit board between front and back structural frames,
later adding the outside covers.
Adding a Personality
The last step in the production turns a generic phone into one customized to
the exacting specifications of mobile-phone users around the world. Each
handset is put into a cradle, where it is given a unique serial number, known
as its IMEI code. Then, depending on who the customer is, a unique batch of
software code is pumped into the phone. Vodafone will specify one set of
menus and features, as well as a Vodafone logo on the opening screen, while
Cingular will require a different appearance and capabilities. Finally, the
phone and installed software undergo a battery of diagnostic tests. From this
point forward, the IMEI code links each individual phone to its intended
customer.
Better Than Machine Vision
It seems quaint after all the high-tech assembly and testing, but before
every Nokia phone goes into a box, it's inspected one last time by an
unmatched resource: the human eye. Only a tiny fraction of phones fail this
final test. Then, before being packed, the phone is de-ionized to remove dust
and electrical charge from the surface.
Ready for Retail
Phones are packed into retail boxes by hand, with appropriate
documentation and accessories, and then logged into a tracking system
using a bar-code reader.

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Packing and Shipping
Batches of phones headed for the same destination are packed into boxes
and stored on palettes. Each palette contains hundreds of customized
phones intended for specific mobile operators.
Away They Go
Palettes are loaded into tractor-trailers on the loading dock, and trucks head
out to the airport, the port, or overland to deliver Nokia phones to carriers
and retailers around the world. Many phones from Salo go to the port in
nearby Turku, but some are flown from Helsinki, depending on the urgency
of the delivery.

ASSESS MANUFACTURING CAPABILITIES

Nokia's giant production plants will take in an average of around 275 million
components and then spit out 900,000 finished mobile phones at the other
end of the line. Over the past decade-and-a-half Nokia has turned high-tech
manufacturing and logistics into one of its core competencies. Nokia
approached information technology and manufacturing planning. Company
operates nine major handset factories—three in Europe, three in Asia, and
three in the Americas—and it is ramping up a 10th facility in India that will
be able to produce tens of millions of phones per year. A vast and
sophisticated software system manages the procurement and delivery of
those 100 billion parts, which range from basic electronics such as resisters
and capacitors, to pricey processors and color LCDs, to mechanical pieces
such as screws, keypad buttons, and covers. About one-fifth of Nokia's
66,000 employees work in manufacturing.

Fast-turnaround stage, called "assembly to order," Nokia pumps orders from

specific carriers into its production system and transforms the raw "engines"
into tens or even hundreds of thousands of built-to-order phones in a matter
of days. Each can have a unique faceplate, for instance, with the operator's
logo on it, or special keypad buttons that take users directly to certain
wireless services. The software inside also varies from one operator to
another, with different menus, features, branding, and languages.

DETERMINE SAFETY ISSUES

Nokia corporation place high priority towards Product safety and Consumer
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safety. For Nokia, product and consumer safety is the #1 priority. Some of
the safety issues which are related to E series Mobile phones include battery
related issues.. Four types of batteries are currently available for consumers

• Original Nokia batteries

• Batteries manufactured by third parties sold under own brand or no-brand
• Good or poor quality
• Counterfeit batteries

Recently around 30-40 cases globally of exploding non original batteries

have been occurred. Primary root cause of non-original battery failure is
internal short circuit in the cell. Vast majority of short circuits caused by
“traumatic event” (i.e., dropping the phone) which jeopardizes integrity of
poorly manufactured batteries. Nokia investigates EVERY reported case of an
exploding battery. In each and every case, the battery in question has
proved to be a non-original battery (either third-party or counterfeit) which
did not include industry standard safety measure. For these safety issues
Nokia place high emphasis on using original Nokia batteries, which are safe
and reliable. Original Nokia batteries are safe to use. Nokia has conducted a
consumer awareness program to help consumers identifying counterfeit
batteries. Nokia batteries meet all the international safety standards.
Original Nokia batteries are designed and manufactured to meet strict safety
measures. Very stringent requirements of the materials and insulations
used. Continuous control of the production and intensive product testing.
Original Nokia batteries comply with all international standards,

DETERMINE ENVIRONMENTAL ISSUES

Three important global issues remain at the forefront of much of Nokia’s

environmental work. They are substance management, arrangements for the
take back and recycling of end-of-life products, and energy efficiency.
SUBSTANCE MANAGEMENT
During the planning and design of our products, one of our main focus areas
is their material content. We are continuously analyzing the materials used
in our products with the aim of reducing the amount of potentially hazardous
or harmful content.
TAKE BACK AND RECYCLING
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 In take back and recycling, we have for years had in place our own
arrangements for mobile devices and accessories, as well as for mobile
network and IP network security equipment. All Nokia products are also
covered by the European Union's new Waste Electrical and Electronic
Equipment (WEEE) directive. Nokia is assuming product responsibility as
defined by the directive as it is implemented throughout Europe. In addition,
take back of Nokia mobile devices will also continue at authorized Nokia
Service Centers and Flagship stores in all markets where we do business.

ENERGY EFFICIENCY
In our product creation as well as our own operational activities, an
important area for continuous performance improvement is in energy
efficiency. We have consistently been able to reduce the energy intensity of
our products.
FINANCIAL EVALUATION
BUDGETING FOR THE NEW PRODUCT.
Marketing dept of Nokia should allocate 45% from its budget to launch the
new products. This amount will be spent on the following stages;

1. Idea screening 6%
2. Concept testing 10%
3. Product development 20%
4. Test marketing 9%

For strategic reasons, Nokia does virtually all this work itself, rather than
farming it out. Why? To ensure control over the process and keep costs
down. The formula
seems to work. On average, it costs Nokia 69 euros ($87.63) to make a
phone, and on average it sells phones for 102 euros ($129.54), leaving a
gross margin of nearly 33%, better than its rivals can muster.

LONG RUN PROJECTION OF SALES

Since the new Nokia E 91 has been designed to meet the need of the target
market, following sales forecast have been projected (in units and in Rupees)
in KARACHI, ISLAMABAD AND LOHORE for the first three years.

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 Projection of sales
(In units)
Years Karachi Islamabad Lahore

2009 1500 1600 1250

2010 1800 2000 1600

2011 2000 2250 1800

2012 2250 2500 2100

2013 3100 3000 2500

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 Projection of sales
(In Rupees)
Years Karachi Islamabad Lahore

2009 90000000 96000000 75000000

2010 108000000 120000000 96000000

2011 120000000 135000000 108000000

2012 135000000 150000000 126000000

2013 186000000 180000000 150000000

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 180000000 150000000

TOTAL INVESTMENT INCURRED;

Projected five year cash flow statement for E 91

S
Items 2009 2010 2011 2012 2013
#

36300000 41100000
1 Sales revenue 0 261000000 324000000 516000000
0 0

2 Cost of goods sold 0 5850000 70200000 78000000 87750000 120900000

28500000 32325000
3 Gross profit 0 255150000 253800000 395100000
0 0

-
4 Development cost 300000 0 0 0 0 0
0

5 Marketing costs 0 21750000 27000000 30250000 34250000 43000000

6 Allocated overhead 0 17400000 21600000 24200000 27400000 34400000

-
23055000 26160000
7 Gross contribution margin 300000 216000000 205200000 317700000
0 0
0

8 Supplementary contribution 0 0 0 0 0 0

-
9 Net contribution 300000 21750000 27000000 30250000 34250000 43000000
0

-
1 Discounted contribution 19247787. 23893805. 19889866. 19582548. 21378601.
300000
0 (13%) 61 31 03 66 61
0

-
1 Cumulative discounted cash 16247787. 40141592. 60031458. 79614007. 100992609
300000
1 flow 61 92 95 61 .2
0

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Cost incurred to design and develops the mobile Rs 39,000
Overhead allocated RS 4,000
Marketing costs Rs 5,000
Legal costs Rs 24,00
Total investment Rs 50,400
Revenue generated through each set Rs 60,000

ROI FOR THE FIRST YEAR (2009)

ROI = Revenue- cost incurred x 100

Cost incurred

ROI = 60,000 – 50400 x 100

50400

ROI = 20%

DEVELOPMENT STAGE
PROTOTYPE PROCESS
The R&D dept has developed the following PROTOTYPE of the product. The
goal is to find a prototype that embodies the key attributes described in the
product test statement that performs safely under normal and conditions
and that could be produced within the budgeted manufacturing costs.

PROTOTYPE PRODUCT

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 INTERNAL PRODUCT REVIEW
Design and Ergonomics
The company has been following a very monotonous design template as far
as their multimedia smart phones are concerned, yet it can’t be called an
unsuccessful one. The closest thing in appearance to the E-91 is a N81,
while N85 looks more elegant due to the rounded angles, a different plastic
of a better quality. The overall size of the handset is rather modest, only
making 103x55x18 mm, but the handset doesn’t give the hand a
comfortable feel because of the width and the thickness, N85 openly wins
the contest. On the other hand, it isn’t even nearly as bulky as Samsung
i8510, the Korean flagship handset is really huge in an open state, the size
being its chief weakest point.

Screen
The screen of Nokia E91 is identical to the screen N96 8GB, featuring the
largest diagonal among all Nokia – 2.8’’, TFT, some of the best screen
quality around. Compare this one to the screen of Nokia N85, powered by the
AM-OLED technology. N85 is notable for much more vivid colors, yet the
palette is more natural with N96, also the latter seems to display a better
behavior in direct sunlight, bringing about less annoying glare. We can’t
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really say that the screen of N96 is worse than the N85 screen; it’s just in a
way different.
Controls and Keyboard
The block of controls is remarkable for the use of dedicated media buttons;
unlike N85 those are operable outside the player mode. You can use them to
switch tracks or start/stop playback at any moment in any menu, which is
immensely handy. The buttons aren’t of the touch kind; they are mechanical
and very responsive, bringing no trouble at all.
A Navi Wheel is traditionally available, remaining active in all menus and
lists. The sensitive area of the wheel is limited to a thin limbo running along
the perimeter of the navigation element. Moving your finger clockwise or
counter-clockwise allows for rapid playlist browsing in a corresponding
direction. The light indicator sits right in the center of the Navi Wheel and
can be easily turned off. It doesn’t carry out any special functions like a
message or a call reminder, a feature still available on some older Nokia
models.
Connectivity
The availability of Wi-Fi also means the availability of the WLAN Wizard
application, which essentially is a simple program intended to help the user
to arrange network connections in a semi-automatic mode. There are but a
few options, once a network is detected the user is prompted to submit a
number of settings. Network filtering is available, the security standards
include WEP, WPA and WPA2. The scanning period during which WLAN
networks are searched and detected is also adjustable in the options. The
USB version is 2.0, the Mass Storage mode is fully supported, the user is free
to choose from Mass Storage, PC Suite, Image Print or Media Player on
establishing a phone-to-PC connection. Both the memory card and onboard
memory storage are accessible from the PC. During Mass Storage sessions,
the phone doesn't go offline, you can still use its potential to the full. The
Home Media application allows for interaction between the phone and
various devices supporting the UnPNP technology. It has seen some serious
improvements from earlier versions used in N95 and N93. If the only option
available in the initial version was the one allowing to share content stored
on the device, now the smartphone can play content opened from remote
source. We tested this functionality both on a phone-to-PC bundle and
between two different phones as well (N82-to-N95), and found no problems
at all. After adjusting all the necessary settings in the Gallery, the 'broadcast
over home network' options became available, letting browse and play the
content stored on remote devices.
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Battery
Nokia E91 is equipped with a relatively old battery, the same with the
original Nokia N95. It’s a BL-5F unit sporting a 950 mAh power output
capacity. The choice is easily explainable: no higher capacity batteries were
available when the development of N96 started, save for a few samples too
big to fit into the battery bay. The existing battery is on a comparable size
scale with the newer BL-5K battery (1200 mAh, used by Nokia N85), but is a
bit smaller. Neither BL-5K nor BL-6F can fit into the battery bay of N96.
Nevertheless, the smart phone can keep running for a long time regardless
of the relatively low battery capacity, it can run longer than N95, and makes
world records in media recording or playback modes. Not only Feature Pack
2 contributes to this, but mainly the power-saving STMicroelectronics
chipset.
Memory
Once the device has booted, the remaining amount of free memory available
to the user is 90 Mb; the total RAM size equals to 128 Mb, which is quite an
adequate score for a modern smartphone. Heap Size and Jar Size for Java
applications are unlimited.
The onboard storage is divided into two unequal parts: the disk labeled C: is
128 Mb large, of which about 70 are free and the rest occupied by system
files, - this is the place where all the contact and PIM records are stored. The
disk labeled D: is where the various multimedia files are kept. You can safely
format it without causing any damage to the operating system, just take it
for a dumb file container. The D: disk is 16 Gb large. With such a huge
storage massive onboard, it would be interesting to look at the data transfer
speeds:
Multimedia
The player interface looks quite standard, exposing almost no difference
from Nokia N85 or N78; the same interface is used by all latest devices
basing off S60v3 Feature Pack 3. The extra controls come in handy, both the
buttons around the navigation button and the extra buttons on the upper
half of the slider are used for rewinding, playing and pausing. Here we have
a huge advantage over Samsung i8510 which isn't equipped with any extra
player buttons, a flaw which is hardly compensated by the unmatched audio
quality provided by this model.

The audio quality of N96 has been discussed before, proven to be one of the
best among the currently available solution, and absolutely unmatched in
the whole range of S60 Nokia phones. The sound is better than with N78 or

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N79, the handset has a more realistic sounding even in comparison with
N85, though the difference is too little to matter for the majority. This
combined with a convenient system of controls (two sets of dedicated media
buttons, an optimal arrangement of slots) makes N96 one of the best
multimedia devices available from today’s market. Nokia N85 only wins in
the battery charge contest in playback mode. Samsung i8510 is the ultimate
music smartphone, it’s audio quality is unchallengeable by any other model
so far.

CUSTOMER TESTING
Customer testing has been measured through MONADIC RATING. This
method asks the consumer to rate liking of the product characteristics on a
scale.

Rating

V Hig Averag Lo V
Characteristics
High h e w Low

E-series |||

Memory 9GB || |

Computer
|||
system

Songs and
||| ||
videos

Colours

Blue |||

Black |||

Red ||

COMMERCIALIZATION STAGE
The new Nokia E 91 has carefully been debugged, and is now ready to be
launched. With the advancement of technologies, new and innovative

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handsets are being launched in the market from time to time. Among all the
widgets present, the Nokia E Series mobile phones perfectly meet the
requirements and expectations of all the individuals and its huge popularity
among the masses is a clear indication of its greatness. At 3mobileshop, the
users will get all the latest Nokia E Series phones at very reasonable rates.
The stunning colours and amazing designs make them more beautiful and
their mind blowing features are highly capable of fulfilling the requirements
of all the professionals and business executives. I have clearly mentioned the
key features of all the available Nokia E Series phones, so that customers
don't face any difficulties while selecting the best ones for you. Apart from
giving the cheap Nokia E Series phones, Nokia also loves to amaze its
customers by showering on them exciting free gifts and interesting deals.
One can get exciting free gifts like laptops, games and many more and thus,
nowhere will you get such thrilling and exciting gifts along with handsets.
These superb gadgets come with plenty of high-end features like video
recorder, camera, music player, Bluetooth Technology and many more and
with the help of QWERTY keyboard, one can access many more interesting
features on these astounding Nokia phones. Our dedicated 'Customer Care
Centre' efficiently pays heed to all the queries of our esteemed customers.
Make efficient use of this opportunity and so, just hurry and purchase all
these exciting latest Nokia E Series phones along with lucrative free gifts
from Nokia. Nokia has been doing its share of marketing: the signs and
hoardings on the road and media advertisement.

TIMING
Since Nokia is leader in mobile hand sets therefore wants its each and every
product
to rule the market. Nokia- Pakistan is launching its new product as “first
mover
advantage” thus locking up key distributors and customers and gaining
Leadership.

WHERE
The E 91 will be launched in Karachi, Lahore and Islamabad first. Since
Nokia
corporation is an international org. it will also launch its new product in
Europe,
India, and USA.

➢ Nokia E-91 immediate geographic target is rural Pakistan.

➢ The total targeted population is estimated at 100 million.

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TO WHOM (TARGET MARKET)
The product has especially been made for business executives particularly
and
students generally (for they are facing the problem of load shedding).

➢ Male and female.

➢ Ages 25-50, this is the segment that makes up 80% of the Nokia
mobile phone market according to the NOKIA Ltd.

➢ Professionals and College students.

REFERENCES

1. http://dsl.nokia.co.nz/ni200/index.htm

2. http://dsl.nokia.co.nz/ni500/index.htm

3. http://www.europe.nokia.com/nokia/0,,2375,00.html

4. Nokia (2005-10-12). New Nokia family of devices targeted at the

business world.

5. http://press.nokia.com/PR/200510/1015195_5.html

6. Nokia (2006-05-18). The smallest of Nokia Eseries, the Nokia E50

business
device for mobile professional’s Press release.

7. http://press.nokia.com/PR/200605/1051798_5.html

8. http://www.nokia.com/A4136001?newsid=1104232. Retrieved on
2007-02-14

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