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A PROJECT REPORT ON

“Distribution Mapping and Dealer Satisfaction Survey for Nokia


Mobile Phones at New Delhi and Gurugram”

Project Report Submitted in Partial

fulfillment of the requirements for the award of Degree of

BACHELOR OF BUSINESS

ADMINISTRATION (BBA)

Submitted by

Abhay singh

1408006185

Under the guidance of

Ajay kaundal

SIKKIM MANIPAL UNIVERSITY (SMU)

DIRECTORATE OF DISTANCE EDUCATION

August, 2018
BONAFIDE CERTIFICATE

Certify that this project report titled “Limitaions of the study” is the
bonafide work of “Abhay singh” who carried out the project work under my
supervision in the partial fulfillment of the requirements for the award of the
MBA degree.

Ajay Kaundal

MBAHP0546
DECLARATION BY THE STUDENT

I Abhay Singh bearing Reg. No. 140800615 hereby declare that the Project
entitled “Distribution Mapping and Dealer Satisfaction Survey for
Nokia Mobile Phones at New Delhi and Gurugram” has been prepared by
me towards the partial fulfillment of requirement of Bachelor of Business
Administration (BBA) Degree under the guidance of Mr Ajay kaundal

I also declare that this project report is my original work and has not Benn
previously submitted for the award of any Degree, Diploma, Fellowship, or
other similar titles.

Place: New Delhi

Date: 23/08/2018

ABHAY SIGH

1408006185
ACKNOWLEDGEMENT

Many persons have contributed to make this project report on “Distribution


Mapping and Dealer Satisfaction Survey for Nokia Mobile Phones at
New Delhi and Gurugram” a reality. I would especially like to express my
appreciation to AJAY KAUNDAL for his unstinted support, encouragement and
his painstakingly and meticulous effort towards developing this project.

I acknowledge the help and cooperation received from all the faculty members
of Nokia. Several colleagues and students have contributed directly and
indirectly to the contents of this project, as they had given me numerous ideas.
Their criticism gave me the much-needed hints about the areas that needed
elaboration and amendments and also to present them with greater clarity.

Finally, I wish to express my sincere thanks to all my family members, especially


my Parents for their constant moral support and Encouragement.

I would Welcome Constructive Suggestions to improve this project report,


which can be implemented in my further attempts.

Thanking you!

Abhay Singh

1408006185
INDEX

Topics Page
No.

1. Introd
uction
And
objec
tives
4
company Nokia 5
2. Nokia
in
India
7
3. SWOT
Analy
sis
9
4. Resea
rch
metth
odolo
gy 10
5. Mark
eting
Strate
gy 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
on
9. Limita
tions
10. bibilio
graph
y
PREFACE

This is well known saying “knowledge without application is a waste”.

So it is very necessary to provide the practical knowledge along with the

theoretical knowledge. It is very easy to study the fundamental of management.

But is some how to implement them with in the through of the actual

atmosphere of business. No doubt classroom study is in important part for the

knowledge of Business Environment, but practical exposure provide some extra

knowledge about the rhetorical concept. My project is directed towards

“Distribution Mapping and Dealer Satisfaction Survey for Nokia Mobile

Phones at New Delhi and Gurugram.”. For this I have conducted the survey

and find out the relevant information.


Introduction:

A channel of distribution or trade channel is defined as the path or


route along which goods move from producers or manufacturers to
ultimate consumers or industrial users. In other words, it is a
distribution network through which producer puts his products in the
market and passes it to the actual users. This channel consists of :-
producers, consumers or users and the various middlemen like
wholesalers, selling agents and retailers(dealers) who intervene
between the producers and consumers. Therefore, the channel
serves to bridge the gap between the point of production and the
point of consumption thereby creating time, place and possession
utilities.

Purpose of the study

• To study the factors affecting dealer satisfaction


• To understand the theory of distribution mapping
• To review the existing literature
• To provide recommendations to improve the dealer satisfaction

Context of the Study :

An entrepreneur has a number of alternative channels available to


him for distributing his products. These channels vary in the number
and types of middlemen involved. Some channels are short and
directly link producers with customers. Whereas other channels are
long and indirectly link the two through one or more middlemen.

Nokia

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 Distribution Mapping and Dealer Satisfaction
Survey for Nokia Mobile Phones at New Delhi and Gurugram.

objective of the study:


Primary Objectives: Distribution mapping and Dealer satisfaction
survey for Nokia Mobile phones at New Delhi and Gurugram.

Secondary Objectives:

• Analyze services providing by Nokia to satisfy dealer to increase


its sales.
• Curiosity to find the mapping of distribution system of Nokia in
India.
• Understand the dealer point of view about the selling of Nokia’s
product in New Delhi and Gurugram.

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. 12929cr against Rs. 12900cr
during 2010.
RESEARCH METHODOLOGY

Research is defined as human activity based on intellectual


application in the investigation of matter. The primary aim for applied
research is discovering, interpreting, and the development of
methods and systems for the advancement of human knowledge on
a wide variety of scientific matters of our world and the universe. It is
exploratory and often driven by the researcher’s curiosity, interest,
and intuition. It is conducted without any practical end in mind,
although it may have unexpected results pointing to practical
applications.
“Research means search for knowledge” some times it may
refer to a scientific and systematic search for pertinent information
on a specific topic. In fact research is an art of scientific investigation.

Red men and man define research as a


“Systematized effort to gain knowledge”.

• Methodology and References


Research design methodology can be the analysis of the principles of
methods, rules, and postulates employed by a discipline.
Research is primarily focus on two categories of research: primary
and secondary.
Secondary research provides knowledge gathered from within the
business or already published information from outside of the
business.

Primary research is collected with specific purpose of creating a


marketing strategy for the business conducting the research.

For my report, I decide to go with primary data collection method by


approaching different distributors for collecting the exact and
suitable data for my report. It is the easiest way to know about the
dealer satisfaction and strategies mapping by the Nokia in New Delhi
and Gurugram.

Secondary data collection method is referring to various websites, for


collecting information regarding project under study.

In research method there are many researches such as exploratory,


descriptive, applied, and historical and many more. But I am going to
use very easy and useful research method, Questionnaire.

Questionnaire- It is best, easier and less expensive way to collect the


data directly with the distributor of mobile phones and along with
the retailer.
About Questionnaire, in this I ask hybrid question to many
distributor. This is the best way to collect data in huge quantity.
Distributor show their interest to fill that form because it is in hybrid
form and all question relate to their products. I am going to show my
whole data along with questionnaire in my project report.

New Delhi and Gurugram is the most favorable place for me to


collect the data from the distributor because there are almost 50
distributor and many of the retail shopkeeper of Nokia Mobiles
Phone.

After collect all the data and it shows that Nokia’s distribution
mapping strategy is very helpful for them to spread their business in
different areas and dealer of Nokia is very happy to sale their
products in very large quantity. That’s why Nokia again spread their
business and show their power in Mobile phone market.

At the end I will show all the data and description report in my
project work. It is really very helpful for me to understand Nokia in
Indian market.

TYPES OF RESEARCH:
To accomplish the objective of the study, descriptive research
design is adopted to collect the data from the consumers of the
different brands. Descriptive research simply describes things such as
demography characteristics of consumers who use the product. The
descriptive study is typically concerned with determining frequency
with which same thing occurs. This study is typically guided by initial
hypothesis.

DATA COLLECTION METHODS:


To accomplish the objective of the study, descriptive research
design is adopted to collect the data from the consumers of the
different brands. Descriptive researches simply describe things such
as demography characteristics of consumers who use the product.
The descriptive study is typically concerned with determining
frequency with which same thing occurs. This study is typically
guided by initial hypothesis.
For any research these two types of data are necessary:
1. Primary data
2. Secondary data
Primary Data:

For this project the primary data is collected in four ways:

a) Through observations

b) Through discussion ( Department Heads &


Executives )

c) Through questionnaires

d) Through Sampling procedure

Secondary Data:
The secondary data is collected from various sources
available with in the organization like,

a)Organizational web site

b)Company Past records

c) Library books

d)Internet

e)Annual reports

f) Consulting administrative staff.

g)Consulting marketing Managers

SAMPLING:
“Sampling may be defined as the selection of an aggregate or
totally on the basis of which a judgment of reference about the
aggregate of totally is made. “Sampling is used in conducting
surveys and in studying various problems concerning production
management, time and motion studies, market research, various
areas of accounting and finance and the like.
 Sample size:
For the project 50 customers were taken into consideration
and they were selected on the random basis.
 Method of sampling:
The method of sampling, which selected, is “non probability
convenience sampling “. In this method the sample insights are
chosen primarily on basis of my convenience.
The sample technique adopted for carrying out the survey is
stratified random.

STATISTICAL TOOLS:
Statistical techniques are to obtain findings and average
information in logical sequence from the raw data collected. After
tabulation of data research have used the following quantitative
technique.

 Percentage analysis
 Charts

 PERCENTAGE ANALYSIS
Percentage refers to special kind of ratio. This method is used
as making comparsion between two or more services of data.
Persenatage are used to decidable relationship. Persentage can also
used to compare thge relative terries, the distribution of two or
more services of data
 CHARTS
Bar charts and pie charts are used to get a clear look at the
tabulated data.
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, Shahrukh 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.
LIMITATIONS OF THE STUDY
The limitations occur when the project is done at HCL Technologies
Limited.

1. Method of data collecti on was through personal interview and


therefore personal bias becomes a major limitati on.

2. Due to the ti me constraints only a sample of 100 were


interviewed, hence the data collected may not be a representative of
the entire population

3. The scope of study is restricted only to the twin citi es.

4. The respondents have answered the questionnaire with their level of


knowledge that may not be indicative of the actual situation.

5. Even though enough care was taken to make research error-free some
errors may have crept in.
6. Non-availability of the consumers at the time when the survey was
conducted

7. The sample size was restricted because of less private buyers.

8. Only the Industries are using the Products.

9. Not all the respondents answered in an unbiased manner.

10.Access to all the records and files of the company were not possible at
all the times.

11.Interaction with higher-level officials was limited due to their very busy
schedules.
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

BIBLIOGRAPHY

Reference Books

 Marketing Management by Philip Kolter

 Research methodology by C.R.KOTHARI

MAGAZINES / JOURNALS / NEWSPAPERS

 Business World
 Business Today
 The Financial Express
 The Times of India
 The Hindu

Search Engines

 Company Website: www.Nokia.com

 Company Manuals (News papers)


 www.google.com

 www.Nokia.in

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