MULUND COLLEGE OF COMMERCE

ACADEMIC YEAR
2015-2016

PROJECT REPORT ON
SEGMENTATION STRATEGY (NOKIA)

RIDDHI DANI
1510708
B.COM (BANKING & INSURANCE)
TYBCBI
SEM VI

INTERNATIONAL BUSINESS
PROF . ARCHANA KADAM

INDEX

PG

SR.N
O

CONTENTS

INTRODUCTION

INFORMATION

4-7

CONCLUSION

REFERENCE

NO

INTRODUCTION
Thi s Project dea l s wit h Var ious Market Segmen tati on done
in
Mob i le Industries. This Project mainly focuses on Various Market
Segmentation done by Nokia Co. Ltd. in the Market. Nokia is a world
leader in mobile communications, driving the growth and sustainability
of the broader mobility industry. Nokia connects people to each other
and the information that matters to them with easy-to-use and innovative
products like mobile phones, devices and solutions for imaging,
games, medi a and busi nesses . Noki a pro vi des equip ment , soluti o
ns and services for network operators and corporations. Market ing i s one
of the most i mpor tant funct ions i n business. It is
t hedi s ci pl ine required to und er st and cust omer s' nee ds and t he be
nefi ts they seek. Academics does not have one commonly agreed upon
definition. Even after a better part of a century the debate continues. In a
nutshell it consists of the social and managerial processes by which products
(goods or services)and value are exchanged in order to fulfill the needs and
wants of individuals
Marketing is the process of planning and executing the conception,
pricing, promotion,
and distribution of ideas, goods, services, organizations, and
events
to create and maintain relationships that will satisfy individual and
organizational objectives
The Mission of marketing is satisfying customer needs. That takes place in a
social context. In developed societies marketing is needed in order to satisfy the
needs of society's members. Industry is the tool of society to
produce products for the satisfaction of needs. M a r k e t i n g i s o n e o f t h e
most
important
functions
in
business.
It
is
thediscipline required to understand customers' needs and the
b e n e f i t s t h e y seek. Academics do not have one commonly agreed
upon definition. Even after a better part of a century the debate continues. In
a nutshell it consists of the social and managerial processes by which products
(goods or services)
M a r ke t i n g o b j e c t i v e s , g o a l s a n d t a r g e t s h a v e t o b e
m o n i t o re d a n d m e t , competitor
strategies
analysed,
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anticipated and exceeded. Through effective u s e o f m a r ke t

a n d m a r ke t i n g re s e a rc h a n o rg a n i s a t i o n s h o u l d b e
a b l e t o identify the needs and wants of the customer.

Market Segmentation
Market Segmentation
Market segmentation is one of two general approaches to marketing;
the other is mass-marketing. In the mass-marketing approach, businesses look
att h e t o t a l m a r k e t a s t h o u g h a l l o f i t s p a r t s w e r e t h
e s a m e a n d m a r k e t a c c o r d i n g l y. I n t h e m a r k e t - s e g m e n t a t i o n
a p p r o a c h , t h e t o t a l m a r k e t i s viewed as being made up of several
smaller segments, each different
fromt h e o t h e r . T h i s a p p r o a c h e n a b l e s b u s i n e s s e s t o
i d e n t i f y o n e o r m o r e appealing segments to which they can
profitably target their products and marketing efforts .The MarketSegmentation process involves multiple steps. The first is to define
the market in terms of the product's end users and their needs.

Thes e c o n d i s t o d i v i d e t h e m a r k e t i n t o
g r o u p s o n t h e b a s i s o f t h e i r characteristics
and buying behaviours .Possible bases for dividing a total
market are different for consumer markets than for industrial
markets.
The
most
common
elements
used
to
separatec o n s u m e r m a r k e t s a re d e m o g r a p h i c f a c t o r s ,
c h a r a c t e r i s t i c s , g e o g r a p h i c location,
and
perceived
product benefits. Demographic Segmentation involves
dividing the market on the basis of statistical diff erences
in personal characteristics, such as age, gender,
race ,income, life stage, occupation, and education level.
Clothing manufacturers, for example, segment on the basis
of age groups such as teenagers, young adults, and
mature adults. Jewelers use gender to divide markets.
Cosmetics and hair care companies may use race as a factor;
home builders, life stage; professional periodicals, occupation;
and so on

Psychographic Segmentation is based on traits,

a t t i t u d e s , i n t e r e s t s , o r lifestyles of potential customer
groups. Companies marketing new products,for instance, seek
to identify customer groups that are positively disposed to new
ideas. Firms marketing environmentally friendly products would
singleo u t s e g m e n t s w i t h e n v i ro n m e n t a l c o n c e r n s . S o
m e fi n a n c i a l i n s t i t u t i o n s attempt to isolate and tap into
groups
with
a
strong
interest
in
supporting
t h e i r c o l l e g e , f a v o r i t e s p o r t s t e a m , o r p ro f e s s i o n a l
o rg a n i z a t i o n t h ro u g h logged credit cards. Similarly,
marketers of low-fat or low-calorie products try to identify
and match their products with portions of the market that are
health-or weight-conscious .Geographic Segmentation entails
dividing the market on the basis of where people live.
Divisions may be in terms of neighborhoods, cities,
counties,s t a t e s , re g i o n s , o r e v e n c o u n t r i e s . C o n s i d e r
a t i o n s re l a t e d t o g e o g r a p h i c grouping may include the
makeup of the areas, that is, urban, suburban, or rural;
size of the area; climate; or population. For example,
manufacturers of snow-removal equipment focus on
identifying
potential
user
segments
ina r e a s o f h e a v y s n o w a c c u m u l a t i o n . B e c a u s
e many retail chains are
dependent on highvolume traffi c, they search for, and will only locate in,
areas with a certain number of people per square mile .Product
Benefit Segmentation is based on the perceived value or
advantage consumers receive from a good or service over
alternatives. Thus, market sc a n b e p a r t i t i o n e d i n
terms
of
the
quality,
performance,
image,
s e r v i c e , s p e c i a l f e a t u re s , o r o t h e r b e n e fi t s p ro s p e c t i
v e c o n s u m e r s s e e k . A w i d e spectrum of businesses

from camera to Automobile Marketersrely on t h i s t y p e

of segmentation to match up with customers.

even market similar products of different grades or different accompanying

services to different groups on the basis of product-benefit preference. Factors
used to segment industrial markets are grouped along different lines than those
used for consumer markets. Some are very different; some are similar.
Industrial markets are often divided on the basis of organizational
variables, such as type of business, company size, geographic
location, or technological base. In other instances, they are segmented along
operational lines such as products made or sold, related processes used, volume
used, or e n d user applications. In still other instances, differences in purch
ase p r a c t i c e s p r o v i d e t h e s e g m e n t a t i o n b a s e . T h e s e d i f f e
r e n c e s i n c l u d e centralized
versus decentralized purchasing; policy regarding number of v e n d o r s
; b u y e r - s e l l e r r e l a t i o n s h i p s ; a n d s i m i l a r i t y o f q u a l i t y, s e r v i c e ,
o r availability needs. Although demographic, geographic, and
organizational differences enable marketers to narrow their opportunities,
they rarely provide enough specific information to make a decision on dividing
the market. Psychographic
data,o p e r a t i o n a l l i n e s , a n d , i n p a r t i c u l a r , p e r c e i v e d c o n s
u m e r b e n e f i t s a n d preferred business practices
are better at pinpointing buyer groupingsbut they must be considered
against the broader background. Thus, the key is to gather information on and
consider all segmentation bases before making a decision. Once potential
market segments are identified, the third step in the process is to reduce the
pool to those that are (1) large enough to be worth pursuing, (2)
potentially profitable, (3) reachable, and (4) likely to be responsive. The fourth
step is to zero in on one or more segments that are the best targets for

the company's product(s) or capacity to expand. After the selection is made ,t h e

business can then design a separate marketing mix for each
m a r k e t segment to be targeted. Adopting a market-segmentation approach can
benefit a company in
severals p e c i f i c a r e a s . F i r s t , i t c a n g i v e c u s t o m e r
- d r i v e n d i r e c t i o n t o t h e management of current products.
Second, it can result in more efficient use o f m a r k e t i n g r e s o u r c e s .
T h i r d , i t c a n h e l p i d e n t i f y n e w o p p o r t u n i t i e s f o r growth and
expansion. At the same time, it can bring a company the broad benefit
of a competitive advantage .A company cannot serve all customers in a broad
market such as computers or soft drinks. The customers are too numerous
and diverse in their buying requirements. A company needs to identify the
market segments it can
servee f f e c t i v e l y . H e r e w e w i l l e x a m i n e l e v e l s o f s e g m e n t
a t i o n , p a t t e r n s o f segmentation, market segment procedures,
bases for segmenting consumer and business markets, and
requirements for effective segmentation.
Manyc o m p a n i e s a r e e m b r a c i n g t a r g e t m a r k e t i n g . H e r e s e l l e r s d
i s t i n g u i s h t h e major market segments, target one or more of these
segments, and develop products and marketing programs tailored to
each instead of scattering. Market segmentation is the process of
identifying key groups or segments within the general market that
share specific characteristics and consumer habits. Once the market is
broken into segments, companies can develop a d v e r t i s i n g p r o g r a m s
f o r e a c h s e g m e n t , f o c u s a d v e r t i s i n g o n o n e o r t w o segments or
niches, or develop new products to appeal to one or more of the segments.

Considerations for Market Segmentation

To i d e n t i f y s e g m e n t s , m a r k e t e r s e x a m i n e c o n s u m e r s ' i n t e r e s t s ,
t a s t e s , preferences, and socioeconomic characteristics in order to
determine their patterns of consumption and how they will respond
to various
marketings t r a t e g i e s . T h e p r i m a r y i n f o r m a t i o n m a r k e t e r s s
e e k i s w h y c o n s u m e r s purchase specific products or services but
not others. Catalog retailers andd i r e c t marketing firms make up some of the key users
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o f m a r k e t segmentation, although many other kinds of companies

and organizations use this technique.

CONCLUSION
From the above project I have come to this conclusion
t h a t N o k i a h a s implemented various segmentation strategies for its
products on a large scale & becoming no.1 leader in the world of mobile
phones.
Nokias e g m e n t s i t s m a r k e t a c c o r d i n g t o v a r i o u s v a r i a
b l e s . T h e m a i n segmentation is done on the basis of price. As per
my opinion Nokia had introduced various schemes to attract people & gain
more goodwill into market. I would like to conclude that Nokia had
been launching various new products & strategies throughout the year but still
it is theno.1 brand leader in mobile phones.

REFERENCES
Websites visited:
www.nokia.comhttp://www.nokia.com/aboutnokia/companywww.google.comhttp://www.google.co.in
/#hl=en&source=hp&q=market+segmentation+of+no
kia&meta=&aq=7&aqi=g10&aql=&oq=market+se&gs_
rfai=&fp=fe4cbc854b7cd67d
www.scribd.com

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