EXECUTIVE SUMMARY

The project aims at understanding the Marketing strategies of Nokia and its impact on the Indian Mobile Handset industry. Research has demonstrated conclusively that it is far more costly to win a new customer than it is to maintain an existing one. And there is no better way to retain a customer than to exceed his expectations. For this purpose it is essential to know the level of customer satisfaction. The focus of my research was the

measurement of customer satisfaction level for the products provided by Nokia. The research was done for the corporate clients of Nokia. My job was not only to represent the Corporate Sales Dept. and collect the feedback from the clients but also to get the major complaints resolved through internal counseling. There can be no better opportunity to interact with the external as well as the internal customers of an organization. Finally the results of the research verify the fact that keeping the customer satisfied is the best strategies to not only retain the existing customers but also to

expand the business to new horizons

MOBILE HANDSET INDUSTRY

With rapid consumerism sweeping the country, India has emerged as the second largest mobile handset market, poised for explosive growth by 2008. Industry observers are of the view that market within the 2006-07 could well become a global hub for mobile handset manufacturers. With an eye on the impending growth opportunities, RNCOS's market research report India Mobile

Handset Market (2005) analyzes the current market scenario and the technological developments driving the demand graph.

The report, quoting the experts view, estimates that the total market value worth Rs.8.05billion (US $2billion) as of 2004/05 will surge by 62% with approximately 100-million subscribers

nationwide in 2008. The study further reveals that Indian mobile subscribers are willing to pay for upgrades, value-based services, and advanced models that provide better services. Dominated largely by Nokia with a total market share of 59%, followed by Samsung (13%) and Motorola (7%) respectively, Indian mobile handset market is currently catering to 45 million

subscribers (2005). Recent records show that Indian GSM cellular user base has grown from 43 million, as estimated in May, to 45 million in 2005, representing a growth of 3.50% in the month under review, witnessing large and propitious foreign investors flooding the market eyeing for large chunks. In addition, recent changes imbibed in the government policies that price mobile handsets at a lower end with flexible custom-duty for new entrants are startling the market with multiple models largely aimed to higher and middle-income groups.

INTRODUCTION
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, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations. Nokia is a broadly held company with listings on four major exchanges.

HISTORICAL BACKGROUND OF NOKIA

NOKIA was established in 1865 as a wood-pulp mill by Knut Fredrik Idestam on the banks of the Tammerkoski rapids in the town of Tampere, in south-western Finland. The company was later relocated to the town of Nokia by the Nokianvirta river, which had better resources for hydropower production. That is where the company got the name that it still uses today. The name Nokia originated from the river which flowed through the town. The river itself, Nokianvirta, was named after the old Finnish word originally meaning a dark, furry animal that was locally known as the nokia, or sable, or later pine marten. 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. These three companies were merged to form Nokia Corporation in 1967. The new company was involved in many sectors, producing at one time or another paper products, bicycle and car tires, footwear (including Wellington boots), personal computers, communications cables, televisions, electricity generation machinery, capacitors, aluminium, etc.

The first Nokia century began with Fredrik Idestam's paper mill on the banks of the Nokianvirta river. Between 1865 and 1967, the company would become a major industrial force; but it took a merger with a cable company and a rubber firm to set the new Nokia Corporation on the path to electronics...

1865: The birth of Nokia Fredrik Idestam establishes a paper mill at the Tammerkoski Rapids in south-western Finland, where the Nokia story begins.

1898: Finnish Rubber Works founded Arvid Wickstrm founds Finnish Rubber Works, which will later become Nokia's rubber business.

1912: Finnish Cable Works founded Eduard Poln starts Finnish Cable Works, the foundation of Nokia's cable and electronics businesses.

1937: Verner Weckman, industry heavyweight Former Olympic wrestler Verner Weckman becomes President of Finnish Cable Works.

1960: First electronics department Cable Works establishes its first electronics department, selling and operating computers.

1962: First in-house electrical device The Cable Works electronics department produces its first in-house electrical device - a pulse analyzer for nuclear power plants.

1967: The merger Nokia Ab, Finnish Rubber Works and Finnish Cable works formally merge to create Nokia Corporation.

The newly formed Nokia Corporation was ideally positioned for a pioneering role in the early evolution of mobile communications. As European telecommunications markets were deregulated and mobile networks became global, Nokia led the way with some iconic products...

1979: Mobira Oy, early phone maker Radio telephone company Mobira Oy begins life as a joint venture between Nokia and leading Finnish television maker Salora. 8

1981: The mobile era begins Nordic Mobile Telephone (NMT), the first international mobile phone network, is built.

1982: Nokia makes its first digital telephone switch The Nokia DX200, the companys first digital telephone switch, goes into operation.

1984: Mobira Talkman launched Nokia launches the Mobira Talkman portable phone.

1987: Mobira Cityman birth of a classic Nokia launches the Mobira Cityman, the first handheld NMT phone.

1991: GSM a new mobile standard opens up Nokia equipment is used to make the worlds first GSM call.

In 1992, Nokia decided to focus on its telecommunications business. This was probably the most important strategic decision in its history. As adoption of the GSM standard grew, new CEO Jorma Ollila put Nokia at the head of the mobile telephone industrys global boom and made it the world leader before the end of the decade...

1992: Jorma Ollila becomes President and CEO Jorma Ollila becomes President and CEO of Nokia, focusing the company on telecommunications.

1992: Nokias first GSM handset Nokia launches its first GSM handset, the Nokia 1011.

1994: Nokia Tune is launched Nokia launches the 2100, the first phone to feature the Nokia Tune.

1994: Worlds first satellite call The worlds first satellite call is made, using a Nokia GSM handset.

10

1997: Snake a classic mobile game The Nokia 6110 is the first phone to feature Nokias Snake game.

1998: Nokia leads the world Nokia becomes the world leader in mobile phones.

1999: The Internet goes mobile Nokia launches the world's first WAP handset, the Nokia 7110.

Nokias story continues with 3G, mobile multiplayer gaming, multimedia devices and a look to the future...

2002: First 3G phone Nokia launches its first 3G phone, the Nokia 6650.

2003: Nokia launches the N-Gage Mobile gaming goes multiplayer with the N-Gage.

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2005: The Nokia Nseries is born Nokia introduces the next generation of multimedia devices, the Nokia Nseries.

2005: The billionth Nokia phone is sold Nokia sells its billionth phone a Nokia 1100 in Nigeria. Global mobile phone subscriptions pass 2 billion.

2006: A new President and CEO Nokia today Olli-Pekka Kallasvuo becomes Nokias President and CEO; Jorma Ollila becomes Chairman of Nokias board. Nokia and Siemens announce plans for Nokia Siemens Networks.

2007 Nokia recognized as 5th most valued brand in the world. Nokia Siemens Networks commences operations. Nokia launches Ovi, its new internet services brand.

2008 Nokia's three mobile device business groups and the supporting horizontal groups are replaced by an integrated business segment, Devices & Services.

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STRUCTURE OF NOKIA

The Devices unit is responsible for developing and managing our mobile device portfolio, including the sourcing of components. Nokia is increasing its offering of consumer Internet services, in five areasmusic, maps, media, messaging and gamesand working to deliver those services in an easily accessible manner to consumers. The Services unit is responsible for developing this part of our business. The Markets unit is responsible for the management of our supply chains, sales channels, brand and marketing activities. The three units receive operational support from our Corporate Development Office, which is also responsible for exploring corporate strategic and future growth opportunities. Nokia Siemens Networks provides wireless and fixed network infrastructure, communications and networks service platforms, as well as professional services to operators and service providers. NAVTEQ is a leading provider of comprehensive digital map data for automotive navigation systems, mobile navigation devices, Internet-based mapping applications, and government and business solutions. NAVTEQs map data will be an important part of the Nokia Maps service that brings downloadable maps, voice-guided navigation and other context-aware web services to peoples pockets. 13

PRODUCTION UNITS

Networks technology China Finland Germany India Mobile devices and technology Brazil China Finland Great Britain Hungary India Mexico Romania South Korea

14

MISSION STATEMENT, STRATEGY AND PURPOSES OF NOKIA

Mission Statement Customer To maintain customer confidence by

continuing to provide quality service specifically designed to meet their needs. Market To be recognised as a market innovator in the mobile phone industry to continuing to improve our business practice. Business To ensure the team has a complete

understanding of all Mobile Network Internal Systems and Procedures and that each team member is responsible for compliance with the Business Management System. Training To develop on going training strategies to empower personnel with skill levels essential for future company success. The Team To create the best possible working

environment, promoting career enhancement and job security, encouraging trust in the company and loyalty to the customer.

15

MARKETING STRATEGY
Nokias corporate responsibility strategy is to engage,

improve and be accountable. They constantly measure and review their performance in economic, environmental and social issues. They engage in stakeholder dialogue and form partnerships that serve the areas they want to improve upon. They pursue focused and practical improvement programs in relevant

organizational or geographical areas as part of business operations this involves business planning, internal communications, training. They increase accountability to stakeholders through reporting, and informative internal and external communications activities. What makes them unique is the way they do it. Based on the same approach that guides the rest of their activity The Nokia Way their corporate responsibility is developed through logical steps, with much of the work concentrated inside the company, much of the work built on existing programs, and many stages taken forward in parallel. According to them it is essential to drive corporate responsibility through the company-wide strategy process, support issue owners in building business cases for ethical improvement and implementation, and increase accountability to both internal and external stakeholders. 16

For them, corporate responsibility is an integral and continuous part of decision-making in all parts of their business; taking

responsibility for the consequence of their actions. Its a belief that by focusing on issues over which they have most influence and which their stakeholders consider important, they will be able to mobilize more of company resources, be more proactive, and ensure long-term programs. The Nokia Strategy continues to focus on three activities to expand mobile communications in terms of volume and value: Expand mobile voice Drive consumer multimedia Bring extended mobility to enterprises
Expand Mobile Voice

We believe that many opportunities for growth exist in the mobile voice market, and we intend to continue to focus on this area. In doing so, we aim to capitalize on our demonstrated efficiency and skill in execution and demand-supply chain management, and our history of innovation. The markets on which we intend to focus include markets with low mobile subscription rates relative to the size of the population, geographic areas where it is more costeffective to build wireless infrastructure than fixed-line networks, and heavily populated areas, where factors such as poor housing infrastructure or theft of materials tilt the scales in favor of wireless 17

solutions. We also intend to focus on markets where the need for network capacity is growing as a result of mobile network operators promoting the replacement of fixed networks with wireless.
Drive Consumer Mobile Multimedia

They intend to enter new product and service niches, which we expect will emerge as technologies from diverse industries start to converge, especially in the area of consumer multimedia. Our strategy is to explore, identify and extract revenue from the most profitable and fastest growing segments of the consumer

multimedia business and its value chain by anticipating consumer needs in this area, and developing innovative products and services. In the near term, we intend to focus on imaging and games, where we have already introduced a number of products. Our strategy to drive consumer multimedia will also involve leverage of our strong position in the consumer voice market.
Bring Extended Mobility to Enterprise

We intend to capture profitable segments of the corporate market by offering products and services that will benefit companies and individual business people alike, including a diverse handset range as well as security and mobile connectivity solutions specifically tailored for enterprise needs. As we do this, we intend to capitalize on companies' needs for mobility and seamless mobile connectivity

18

in their operations, and also expect to collaborate with leading technology and systems integration partners. Business Objective Nokias business objective is to strengthen their position as a leading systems and products provider. Their strategic intent, as the trusted brand, is to create personalized communication technology that enables people to shape their own mobile world. Nokia innovates technology to allow people to access Internet applications, devices and services instantly, irrespective of time and place. Achieving interoperability of network environments, terminals and mobile services is a key part of their objective. They intend to capitalize on their leadership role by continuing to target and enter segments of the communications market that they believe will experience rapid growth or grow faster than the industry as a whole. By expanding into these segments during the initial stages of their development, Nokia has been established as one of the world's leading players in wireless communications and significantly

influenced the way in which voice and other services have been transferred to a wireless, mobile environment.

19

As demand for wireless access to an increasing range of services accelerates, they plan to lead the development and

commercialisation of the higher capacity networks and systems required to make wireless content more accessible and rewarding to the end user. In the process, they plan to offer their customers unprecedented choice, speed and value. In addition, they will continue to be active in IP convergence. Nokia has established alliances with other service providers in order to make mobile access to services easier for the end user.

20

AREAS OF FOCUS
To achieve their business objective, their strategy focuses on: being the preferred provider of solutions for mobile communications; creating personalized communication technology; driving open mobile architecture enabling a non-fragmented global mobile services market; strengthening and leveraging Nokia, the trusted brand; and expanding our business and market position on a global basis. Mobile CommunicationsThe aim is to position Nokia as the preferred provider of products and solutions for mobile communications by providing lseading communications networks that enable end-to-end service delivery for both cellular and broadband networks. They develop leading high-capacity cellular networks, Internet, platforms end-to-end and user applications access for the solutions mobile and

broadband

Professional Mobile Radio systems. Personalized TechnologyThey want to strengthen their leadership position in converging personal digital terminal

solutions. They build on their core competencies in various key areas, including design and and product innovations, brand network

development,

effective

demand/supply

21

management, to services to market. Driving Open

bring new product concepts and associated

Mobile

ArchitectureNokias

key

commitment is to create a global and open mobile software and services market. They aim to achieve this through strong partnering with customers, suppliers and industry participants, and solid focus on end-to-end solutions in all their development activities. Strengthening the Brand--According to a variety of

consumer surveys, the Nokia brand is associated with welldesigned, high quality and technologically advanced products and customer services that are also user-friendly. Having invested considerable resources in establishing the Nokia name as the leading brand in mobile communications, they intend to sustain and enhance the brand through aggressive advertising, sponsorship and other marketing activities in all of their principal markets. Its a belief that the leading market position provides significant opportunities for Nokia to better understand and respond to the usage patterns of end users, and thus enhance the Nokia brand. Expanding The Business-- For more than a decade, they have actively expanded their business globally. As a result, the network systems, equipment and wireless terminals are 22

produced and sold throughout the world. They, therefore benefit from strong economies of scale throughout the organization. Nokias strategy is to continue focused pursuit of global business opportunities by cultivating a strong local presence in all growing markets and pursuing partnering and acquisition opportunities in order to obtain complementary technologies and market

positions. At Nokia, one of the top priorities is to continue to strengthen their leading market position in a profitable way. They believe that further market share gains are key to expanding the customer base and developing the future business potential. Their leading position also enhances the positive effects of their economies of scale, which they believe should strengthen their competitive position in the next generation of mobile

communications.

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STRATEGIC MANAGEMENT
This report outlines the mission statement, strategy and purposes of Nokia .It analyses the impact of the external and internal influences on the business strategies of Nokia. It also emphasizes the strengths, weaknesses, opportunities and threats in context of Nokias operating and marketing activities. Nokia has established its leadership in the mobile phone market owing to its successful marketing strategies and internal

management. Nokias philosophy is to learn continuously, to satisfy customers and to respect individual and pursue professionalism.

24

SECRETS TO NOKIAS STRATEGIC SUCCESS

One can analyze the secrets behind how an enigmatic Finnish Company got an edge over the US and Asian giants to triumph as the global leader in mobile communications. Bold Strategic Intent While others debate and agonize over first mover strategies, Nokia rushes for new opportunities and products. Growing up as a small Finnish Company with few resources and no incumbent privileges, Nokia is accustomed to moving swiftly and decisively to claim its share of worldwide marketsfrom infrastructure to handsets and software

applications. Innovation through Value Chain Through technology, innovation and segmentation, branding and design, Nokia makes innovation a top priority. Like Proctor & Gamble, it has shrewdly filled the shelves with innovative new products to dominate categories. Like Sony, it has used its umbrella brand to sell new products and services and to create footholds in new markets. Unlike its direct rivals (Motorola, Ericsson), Nokias innovation extends from technology innovation to marketing activities. Flat Organization Prior to its worldwide expansion, Nokia extended the use of IT throughout the company. As it became a 25

process

organization,

it

has

shunned

hierarchies

and

bureaucracy. Even the senior executives have been rotated from one work task to another. The organization chart looks hierarchic but teams and networking reigns. Entrepreneurial Spirit Like the best Silicon startups, Nokia encourages entrepreneurialism throughout the ranks and views failure as a learning experience. Incentives, rewards and lifelong learning permeate the entire company. Humility is taken

seriously at Nokia as in the technology sector; the arrogant of today are considered losers of tomorrow. Collective leadership Nokia relies on its executive board, with each member bringing something unique Global R & D Networks Nokias R&D efforts reflect extensive collaboration with vital research institutions worldwide. The company invests less in technology development than its rivals, but often exploits new knowledge more efficiently. Through technology coalitions it has managed to internalize new knowhow while neutralizing competitive threats. Competition and Co-operation By managing its corporate and government relations with diplomacy and consideration, Nokia has been able to avoid high profile and costly anti-trust actions and competition policy struggles. Instead of trying to buy 26

or

crush

potential

rivals,

Nokia

works

to

cooperate

with

suppliers, partners, clients, even direct competitors. Customer Focus The most enduring factor is Nokias ability and willingness to listen to the customer a fact apparent in its strategy, structure and resource allocation and also in its products and services. Due to its foresight, Nokia can not only finger at the pulse of the market it often knows what the customer wants even if the customer is not yet aware of this.

27

SWOT ANALYSIS OF NOKIAS STRATEGY

There are various tools which can be employed to understand the effectiveness of a companys strategies. SWOT Analysis outlines the Strengths, Weaknesses, Opportunities and Threats facing the operating strategy of a company. Analysing the effectiveness of strategies, strength and weaknesses can be defined as internal to an organisation. The businesses do not necessarily have to correct all its weaknesses however, it should be able to retain its strengths. The key success factor for operating in the targeted market depends on the external factor. ie.

Opportunity. Nokia has numerable opportunities to enlarge its market share, however, they could be faced with a threat which could be challenge posed by an unfavourable trend or development that may lead into absence of defensive marketing action and thus diminish sales and profit.

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SWOT ANALYSIS
Strengths Global Products and Image Nokia is a global company. It not only sells its products to 130 countries but also sets up research and development departments in fifteen countries to produce its products in different culture and language needs, e.g. English, Dutch, German and Chinese. High Quality Products Nokia concerns about product quality which is the most important factor to satisfy customers needs. Nokia adds features more to values the by superior quality it or also

differentiated

market.

Meanwhile,

continuously improves upon the existent markets. Serving new designs and trends Nokia launched a wireless game which by use of sms, tv, print media, radio and internet provides clues to help players to solve a mystery. This helps Nokia to attract customers to use its products. Wide range of products Nokia has the highest number of product line(more than 10 models) compared to its competitors Samsung, Erickson, Motorola etc. Product Warrantee Worldwide No matter where Nokias customers are, if they got a problem with their mobile phones, 29

they can approach any of the Nokias centres. Thus, ensuring a good customer service. Weaknesses High Price Nokia offers a good range of high quality products at high prices Though the high prices may be justified in terms of the costs to the company but this can act as a weakness in certain sections of the market e.g. the middle-low income group people. Demand is skyrocketing but the price pressure is high. New product developing problems Although Nokia provided colour screen mobile phones in September 2002, this was late as compared with its competitors such as Sony Ericsson and Samsung. This acted as a weakness as the people had already accepted the range introduced in the market and didnt want to switch. Opportunities Joint venture in Technology Nokia has joined with Hewlett Packard(HP) Company in technology which has a very good reputation for many years. Nokia thus, has a considerable opportunity to enlarge their market size into PC users who prefer mobile phones compatible with PC device.

30

 Product launch continuously - Nokia uses Total Quality Management (TQM) which mentions more about training worker program, and makes product of high quality. All employees are well-trained and motivated and consecutively production

processes are also developed as well. Nokia has established Research and Development department (R&D) which develops its product line into modern modification as well quality as the existing products. New Software Market As known, the amount of data traffic in mobile networks is growing at a tremendous rate. People around the world are using new mobile services, which are directly relevant to personal needs. Nokia has already added value through MMS for Messaging and E-mail, Java for download any applications and HTML especially for content search. may attract those businessmen and teenagers who So it are

interested in the new software market. Easy Availability - Many mobile phone retail stores, such as, the link, Phone4U and Carphone warehouse, have spread across London in every street. And, of course, every store have not

missed the opportunity to choose Nokia as their product line. Consequently, all the customers can be guaranteed that any damage or loss of Mobile phone will be serviced through these retail shops. Likewise, in opportunity aspect, Nokia has an 31

opportunity to convince the prospects of buying Nokia in the plenty of stores around the town. However the key to success of Nokia will be the flexible changing capabilities. Threats Threats in PC Markets - Due to fierce competition in mobile phone market it has caused new technology compatible with PC computer. Sony Erickson specializes on PC computer now. Sony applied their computer system into mobile phone as well as PC computer on hand at the same time. Furthermore, nowadays people are interested in advance of computer as similar as mobile phone market. In this sharp competition, it is going to be harder for Nokia to grasp customers attention and they will have to focus on outstanding imagination and creativity in their marketing plans. Fluctuations in Euro exchange rates Most of the European countries have joined the European Union and thus because of the varied economic conditions, the currency will fluctuate a lot finally effecting the profits of the company. Blurring of product boundaries This implies new entrants in the same industry like Sony, Motorola etc. who are producing almost the same product range as Nokia and thus, there is a need to change their models.

32

Keeping in mind the weaknesses and threats, Dan Steinbeck in an article called the Nokia revolution outlines the secrets behind the success of Nokia. Apart from the SWOT analysis, the effectiveness of Nokias strategies can also be analysed looking at the environment in which it operates.

33

PEST ANALYSIS
Nokia, is an international organisation which requires to focus on macro environmental factors. Macro Environmental factors comprise Political, Economical, Society and Technology, viz., PEST Analysis. In view of the different culture and different external factors between different countries, Nokia has to adjust its strategic plan in order to develop international market. Political Factors It is important of a company to acquire certain kind of policies from its government, such as the economic policy, and science and technology policy. Finnish policies assist Nokia to advance its products. The Finnish policies are the most important factors behind Nokias success. To operate efficiently, a modern is knowledgeand

technology-based

economy

that

highly

specialized,

internationalized and undergoing rapid structural change requires active support from the public sector. In its widest sense industrial policy and science and technology (S&T) policy comprise all those measures by which the public sector shapes the operating

environment for business and thus fosters public welfare. Both policies pursued by Finnish government and the Parliament are

34

crucial for the development of both, the Finnish Economy and of national information society. General macroeconomic stability, low interest rates, stable currency conditions and the international competitiveness of the tax system form the foundation for the growth of business and improvement in employment. As the result of this, not only Finnish Government but also international companies, such as Nokia, have to play very important roles to develop their information society and national technology strength.

Economic Factors
According to the fact that Russian Federation was collapsed in early 1990s and it clashed with Finnish economics. Nokia also faced problems, and changed its functions from single market and overall products to global market and focusing mobile phone market. During the first half of the year 2001, Nokia continued to perform strongly in the global mobile communications market and was able to strengthen its leading market position. However, the general economic slowdown in the US has recently shown signs of extending to other regions and to the wireless telecommunications industry as a whole. The slowdown could be a result of a general market deterioration - driven by economic uncertainty, the ongoing

35

technology operators.'

transition

and

less

aggressive

marketing

by

the

In a press release on June 12, 2001 it was quoted that Nokia saw slower market growth affecting second quarter results and was to take up actions to expand leadership while

maintaining strong profitability. Nokia will continue to take determined actions in all areas of the business to align its operations with the changing market

conditions. Previously announced moves to increase the companys efficiency and competitiveness include operational changes to further enhance customer focus in Nokia Networks. While market deterioration has had an inevitable impact on Nokia's sales growth, their products have remained strong, their market position has strengthened and they have been able to find further efficiencies through tight control of their own performance.

Nokia has countered changing market conditions by accelerating ongoing programs and generating efficiencies and cost savings. This, in combination with the current financial health and proven performance, should enable them to exit the current slowdown in a stronger position than before.

36

Society At Nokia, their whole business is based around communication and connecting people. One of Nokia's aims is to make it as easy as possible for their people to be satisfied working with them. Thus, it keeps various stakeholders interests in mind. Nokia develops products and services that encourage

communication and learning among people and societies. They are using their strengths - connecting and communicating - to help make a difference. It complements the core business and their vision to be involved with the youth and education issues around the world, preparing young people for their future. The goal is to be a good corporate community member wherever they operate, as a responsible and contributing member of society. Sharing in the belief that prevention is better than cure, they take part in long-term projects aimed at helping young people to create a firm foundation for themselves and to find their place in the world. Technological Factors In the 1980s, there was a trend towards microcomputers and Nokia tried to match this tendency by producing its main products as

computers, monitors and TV sets. Due to the changes in 1990s, Nokia also changed its functions to mobile phone market. .

37

Sustainable various

development on the

and

environmental of the

protection

have

effects

operation

innovation

system.

Innovation also creates new opportunities for promoting sustainable development. Nokia always improve their product line through Research and development process, beside this Nokia also has multimedia compatible improvement with mobile at the same time, such as, GPRS and WAP Service. Nokia has numerous technologies which can satisfy those end-users need, such as, Bluetooth, Symbian, SYNCML, M2M, Wireless LAN and Java. Nokia employed more than 17,000 people in R&D department over fourteen countries

worldwide. They also provided customers to choose the features and service that they personally want and need. It means Nokia also improve

does not develop only their product line, but they

their service process to provide the most appropriate service to those customers efficiently.

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PRODUCTS OF NOKIA HANDSETS

The Nokia 1100 is compact, reliable and easy to use. All your calling, messaging, and menu functions can be easily accessed with its Navi key, 2way scroll, large display and userfriendly buttons. With its anti-slip grip and built-in flashlight, you can take it virtually wherever you go. The reminder function keeps you up to date with your daily schedule.

Easy to Use Reliable and Practical Fun with Personalization Messaging Made Easy Other Features Call Management Dimensions

Easy to Use 2-way scroll and NaviTM key - easy to use interface

39

Large black & white display - 96x65 pixels display, up to 4 lines text messaging Silicon key mat with large keys for easy calling and messaging Selectable font size Localized menu language1 & predictive text input1

Reliable and Practical Built-in flashlight Internal phone book with up to 50 entries Anti-slip grip Vibration alert Date and time screensaver Reminder function Automatic key guard Alarm Stopwatch Countdown timer Fun with Personalization Full screen animated screensavers Picture messaging - to send a picture greeting Built-in games - Snake II and Space Impact+ Ringing tone composer Xpress-onTM Color Covers2

40

Messaging Made Easy Easy SMS with local input method SMS distribution list SMS storage - saves up to 50 text messages Concatenated SMS for long text messages Speed dialing for SMS sending SMS chat Predictive text input1 SMS template

Call Management Speed dialing of up to 9 numbers Last number redial from dialed calls list ('Scroll up' brings out the dialed calls list) Automatic redial (up to 10 attempts) Call waiting, call hold, call divert, call timer Automatic and manual network selection

Other Features GSM 900/1800 Screensavers, templates and smileys Chinese Lunar calendar support1 Additional language support: Thai T9, Vietnamese T9, Hindi T9

41

Dimensions Volume: 72cc Weight: 86g with BL-5C Length: 107mm Width: 46mm Thickness: 20mm

Nokia 1108 is a reliable and compact phone, it has features like a built-in flashlight and anti-slip grip so you'll be ready for anything.

Display & User Interface Messaging Made Easy Reliable and Practical Personalization Games Call Management Dimensions

Display & User Interface 2-way scroll and NaviTM key for easy-to-use interface Large black-and-white display within 96x65 pixels display White LED backlit screen and keypad for an enhanced view 42

Silicon

keypad

with

large

keys

for

easy

calling

and

messaging Up to 4 lines for text messaging Localized menu language Selectable font size

Messaging Made Easy SMS templates for quick and easy sending of pre-defined messages Send a picture greeting with picture messaging SMS distribution list for sending a single message to many people Easy SMS with local input method SMS storage saves up to 50 text messages Concatenated SMS for long text messages Speed dialing for SMS sending SMS chat Predictive text input

Reliable and Practical Dual-band operation (GSM 900/1800) Chinese Lunar calendar support (selected markets) Anti-slip grip for a firmer grasp Long lasting battery Built-in flashlight Internal phonebook with up to 50 entries 43

Date and time screensaver Automatic key guard Reminder function Vibration alert Countdown timer Stopwatch Alarm clock

Personalization Full-screen animated screensaver Fixed ringing tones (1 Nokia tone and 34 monophonic buzzer tones) Ringing tone composer Xpress-on Color Covers

Games Pre-installed games (Snake II and Space Impact)

Call Management Speed dialing of up to 9 numbers Last number redial from dialed calls list ('scroll up' brings out the dialed calls list) Automatic redial (up to 10 attempts) Call waiting, call hold, call divert and call timer Automatic and manual network selection 44

Dimensions Volume: 72cc Weight: 86g with BL-5C Length: 107mm Width: 46mm Thickness: 20mm

Nokia 1110 It has a talking alarm, simplified icon menu with intuitive navigation and a 4-way scroll

allows. The demo mode lets one experience phone's features at a

glance. Also holds new inverted black and white display and

polyphonic ringtones.

Operating Frequency Display and User Interface (UI) Messaging Games Voice Features Time Management

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Key Features Talking alarm and clock in your language. Available in English, Hindi, Tamil, Gujarati, Marathi and Bengali * Built-in hands free Icon-based phonebook with simplified menu navigation 20-chord polyphonic ringing tones with MP3-grade sound New inverted black and white display Graphical demo mode for phone features both with and without SIM card Analog clock display Call management (timers, counters) Internal antenna Changeable Xpress-on color covers Picture messaging to send a picture greeting Three built-in games 4-way scroll key Easy deletion of multiple messages Undo item in SMS editor * The phone supports a maximum of 3 languages. Supported languages may vary. Full Specifications Size Weight: 80 g Dimensions: 103.8 x 43.8 x 17 mm, 69 cc 46

Operating Frequency Dual-band GSM coverage (GSM 900/1800)

Display and User Interface (UI) New inverted black and white display Reversed monochrome, 96 x 68 pixels Simplified menu and navigation with 4-way keys make making phone calls easier Graphical demo mode of basic features, accessible also without SIM card - efficient for self-study Icon menu - less dependent on text, makes the call more easily Large contact storage - up to 200 entries in built-in phonebook with up to another 250 stored in the SIM card (SIM card dependent)

Messaging SMS and picture messaging Concatenated SMS for long text messages Over the air ringing tones and logos (over SMS) Support up to 60 SMS on SIM card (SIM card dependent) Speed dialing for SMS sending Large SMS storage on phone - up to 60 SMS Multiple SMS deletion Undo item in SMS editor - to avoid accidental deletions, improving the SMS use efficiency 47

Games Snake Xenzia, Dice Games, Pocket Carrom

Language Support Asia Pacific: Menu and predictive text input in English, Bahasa Indonesia, Bahasa Malaysia, Simplified Chinese, Traditional Chinese, Hindi, Thai, Filipino(Tagalog), Vietnamese

Voice Features Integrated hands free Talking clock and alarm Polyphonic ringing tones with MP3-grade sound

Time Management Alarm clock Analog/digital clock - make your own choice as your prefer Reminders

Phone Features Handy size - easy to carry Changeable Xpress-on color covers - refresh the look of your phone Large keys - easier on the eyes 48

Built-in hands free speaker useful for hands free operation or teleconference 20-chord polyphonic ringing tones with MP3-grade sound for you to distinguish your phone in the crowd Stopwatch Composer Number screening for messaging and call

Sales Package Contents Nokia 1110 phone Nokia Battery BL-5CA Quick Guide and User Guide Nokia Standard Charger ACP-7/Nokia Travel Charger ACP-12 (varies by region)

49

OBJECTIVES
Mobile industry has been major focused area for any business economy mobile as a communication instrument is going to be a compulsory good for a consumer. Objective this study is to examine the different market strategies of mobile manufacturers in the case Nokia, a big manufacturers a of mobile phone. To analysis inter firm comparison of the mobile industry, by analyzing Nokia.

SECONDARY OBJECTIVES 1. Analysis of consumer satisfaction and competitive analysis Nokia, Data collection 2. To find and list the factor that affect buying decisions. 3. To find the awareness of Nokia.

50

SCOPE OF STUDY
The methodology adopted for this project is exploratory in nature since there is no hypothesis that has to be tested. The conclusions have been drawn by exploratory research work.

There have been two sources of information collected: a) Primary Sources I have met retailers of the Airtel of the company and have been able to get first hand information regarding the product, its features and the buying patterns of the product. Their input has been valuable.

b) Secondary Sources Secondary source has played a vital role to play in this report. A good amount of data has been collected from various published articles and reports found in magazines and journals. Another vital source has been the Internet and particularly the companies own website.

51

DATA COLLECTION
In this project both primary data as well as secondary data are used. Primary data

Primary data used in this project is collected through two methods, namely, QUESTIONNAIRE METHOD and DIRECT PERSONAL INTERVIEW METHOD. Both these method proved to be great help in getting the required information.

Secondary data

It is not possible to collect first hand information for each & every thing so, secondary data from various sources like Internet, D.K Neilsons report on Jan, 2008, Information from television channels like CNBC, Z Business, NDTV Profit etc. and Indian Info line website were used.

52

STATISTICAL & PRESENTATION TOOLS USED

PRIMARY DATA is: First classified i.e. grouped qualitatively and

quantitatively according to the situation or the type of the data which was collected. After classifying is represented in the form of tables i.e. systematically arranged in columns and rows. Some of the data is also graphically represented in the form of PIE DIAGRAM.

SECONDARY DATA is represented: In the form of tables. By the way of BAR GRAPHS and PIE CHARTS

53

LIMITATIONS

1. The study is restricted only to Delhi. 2. The population size is very small as compare to population size so. 3. There can be errors in sampling 4. Time constraints were present. 5. People might give their biased option

54

MARKETING STRATEGY
There are many priorities within a business, but in a marketing orientated company like Nokia, many of the following principles will be high on the agenda:

1. Customer satisfaction: Market research must be used to find out whether customers' expectations are being met by current products or services.

2. Customer perception: this is based on the images consumers have of the organization and its products, this can be based on; value for money, product quality, fashion and product reliability.

3. Customer needs and expectations: This is anticipating future trends and forecasting for future sales. This is vital to any organization if they wish to keep their entire current market share and develop more.

4. Generating income or profit: This principle clearly states that the need of the organization is to be profitable enough to generate income for growth and to satisfy stakeholders in the business. Although satisfying the customer is a big part of a

55

companies plans they also need to take into account their own needs, such as:

5. Making satisfactory progress: Organizations need to make sure that their product is developing along with the market, if a product is developing well, then income should increase, if not then the marketing strategy should be revised.

6. Be aware of the environment: An organization should always know what is happening within their designated market, if it is changing, saturation, technological advances, slowing down or rapidly growing, being up to date on this is essential for companies to survive.

There are also certain external factors that a company should be very aware of, such as P.E.S.T factors (political, environmental, social and technological) and also S.W.O.T (strength, weakness, opportunity and threat). A business must take into account all

these constraints when designing and introducing a marketing strategy.

P.E.S.T: Political factors- Legal constraints (such as the G3 technology 56

constraints that Nokia have to take into consideration) must be taken into account because many businesses aim to make a profit so they may be tempted to mislead their customers about prices, quality of products and the availability of their products. They may also try to cut expenditure by using lesser quality materials in their products (such as weaker materials for Nokia cases and batteries), also some companies may also dispose their waste in ways that damage the environment (pollution) and not ensuring high

standards of hygiene and safety in the workplace and outlet stores, all of these are illegal and can leave companies in big legal trouble.

The governmental bodies in the U.K have introduced new laws into the business environment, which ensure that none of these procedures take place; if a company is to be successful they must follow all of these laws.

Environmental social and ethical factors- some businesses view profits are more valuable then a strong ethical code and this can govern behaviour and business conduct. Some un-ethical practices are against the law and companies can not become involved in them (I have mentioned these above) but there are also some practices that aren't illegal by law but are considered highly unethical by the consuming public, companies who engage in these practice's can lose a lot of market share if they are found out. An 57

example of this is cosmetic testing on animals, it is legal but some of the consuming public are not happy about it and boycott Certain products because of it, companies must be very careful about how they conduct themselves.

Nokia have managed to be quite environmentally friendly and have not done anything that the consuming public have taken huge offence to, they have been very careful about this and this is one of the reasons they are such a popular brand of mobile phones.

Technological- In the communications market technology is perhaps the most important factor that companies like Nokia have to take into consideration. They have to keep up to date with all the newest

technological advances (like camera and motion capture phones) if they are going to capture the biggest market share and stay ahead of their competitors (Sony and Siemens).

S.W.O.T SWOT analysis is also another way of deciding on a successful marketing scheme, we must look at strength, weakness,

opportunity and threat. Strength (internal factors)- Is looking at the companies current market share and researching how recognised Nokia is amongst 58

consumers in the target market. Nokia is currently one of the most popular Mobile communications companies in the industry,

generating over 52,000 sales in 1997, which was a 34% increase from 1996. Nokia's net sales for the October-December period in 1997 came to a total of FIM 15 857 million (FIM 12 669 million in 1996).

Weakness (internal factors)- This is basically looking at where the product is failing or not doing as well as it should in the market. Nokia's problems are that: 1. They are currently aiming their products at a saturated market segment. 2. Their wage costs are forever rising. 3. Higher import charges have now been put into place.

4. There are some quite high supply chain costs that Nokia are currently paying.

Opportunity (external factors)- This is the area in which Nokia can make more profit, or gain more market share. There are 2 ways in which Nokia can currently do this:

1. Improve the technology that they are using to make their phones and use in their products, for example, camera phones and 59

advanced picture messaging would attract new consumers to purchase phones under the Nokia brand name. 2. Using innovation to re-invent their products, change and develop within the market to offer something none of the competitors have. Also the fact that phone call charges are being forced to fall should prove to be an opportunity for Nokia to sell to the people, who previously may have not purchased a phone because of higher call charges.

Threat (external factors)- This is looking mainly at the competition that are taking away Nokia's current market share and also government legislations (the total costs of 3G licensing in Europe is 110 billion euros) that could hinder Nokia's development as a company.

For an existing product it is often useful to draw up an Ansoff's matrix, in order for Nokia to grow as a business we must look at: Market penetration Market development Product development and Diversification

Market penetration- the aim of market penetration is to sell existing

60

products to an existing market, to do this Nokia must do a few things: 1. Change the pricing scheme (for example, penetration or competitor based) 2. Introduce discounting 3. Start up a different advertising campaign or consider changing an

existing one. Market developmentTo complete market development

successfully, Nokia must look into the following: Researching and selling to a different market (in case of saturation

or poor market share) Change times that television adverts are aired at and alter the places in which print adverts are being displayed (this can help your

products appeal to a whole new market segmentation) Lower current prices to help the products appeal to a wider range of consumers.

Product development- This area of the Ansoff's matrix involves keeping up to date with the latest technologies available in your chosen market and using them to appeal to different people (for

61

example, WAP phones are aimed at more professional people while Camera phones are aimed at the youth market) Diversification- This refers to developing technology that offers consumers something new or different, this is the most common way of companies trying to gain greater market share and increase their profits.

Market research A businesses success is based on whether they can give the customer what they want and when they want it. Market research involves the collection, collation and analysis of data relating to the consumption and marketing of relevant goods and services.

The purpose of market research is really to find out whether there is

a gap in the market for your product or service or whether you can make customers want your product through persuasive adverting. We already know that there is a market for mobile phones but the current market gap has become saturated (or if not saturated, almost saturated) so Nokia need to find a new market segment to aim their products at. In order to classify the wants and needs of the consuming population, companies need to gather information on the following:

62

 Consumer behaviour- How do customers react to advertising? Whether they are partial to prize give-always or free gifts? What are their reactions to new and developed products? Buying patterns and sales trends- Organizations need to look at how buying trends and patterns are affected by class, gender, religion and region. They also need to understand how buying patterns change over time and what markets are expanding and are worth trying to enter and obviously which markets are contracting and companies shouldn't aim to enter into.

Consumer preferences- What customers are looking for in a product, for example, style, colour, technology, amount of outlets, customer service and promotional styles.

Activities of competitors in the market- Nokia need to examine how their rivals are adapting their prices and products to meet the consumers need's, how well the rivals are selling and what marketing strategies they are using.

Market research should supply the company with all the information

they require about consumers preferences, whether they buy certain products, what design features are preferable and what kind 63

of retail outfits are most frequently used for purchasing certain products.

64

Sources of marketing information

The information that companies collect through market research can be in one of two forms, either quantitative or qualitative data.

1. Quantitative data refers to data presented in numerical form, usually figures, for example, Nokia's operating profit in the 4th quarter of 1997 was 830 million.

2. Qualitative data is the information concerning the motives and attitudes of consumers; for example, more people buy Nokia phones then Sony phones because Nokia phones are more reliable.

The two main sources of market research information are primary research (where the company has gathered the information about the markets themselves) and secondary research (when

researchers use information that has been discovered by other companies).

The marketing mix

The marketing mix refers to the combination of elements within a companies marketing strategy, these are designed to give the

65

customer what they want and in the long term are designed to maximize profits.

The marketing mix is based around the idea of the 4 P's:

Product-The product is the centre of the marketing mix and the other three P's are based around it. Consumers purchase goods and services for a variety of individual reasons and a company must be aware of all of these when selling a product (that is why they conduct market research).

Price-Is a key factor in the selling of a product, and is usually the one that is open to the most change based on different pricing strategies, for example, competitor based, penetration or skimming.

The three main factors affecting the amount charged for a product or service, are; the cost of production, customer demand and competition.

Place-This refers to the chosen outlets for a product or service, for a product to be very successful it must be easy to access, Mobile phones are very easy to access nowadays, they are sold in supermarkets, specialised outlets (either by network or brand) and all major department stores. 66

Promotion-This involves providing information to the customer over a variety of media platforms, using radio, television and print advertising as well as using other promotional tools such as "money

off deals" and "free giveaways".

The stages of marketing

1. Market and product research:

* Finding out what your customers want

* Technical research

2. Product launch

* Test market

* Pricing

* Branding

* Packaging 67

3. Product promotion

* Advertising

* Merchandising

* Publicity and P.R

* Sales promotion

4. Sales and distribution

* Managing the sales force

* Type and amount of sales outlets

* Local, national or international sales?

* Transportation of goods

5. Monitoring and analyzing the sales

* Meeting customer satisfaction? 68

* Does the product need modifying or replacing?

* Is a profit being made?

* Is customer service satisfactory?

* Have the sales targets been met?

* Is the promotion and distribution policy effective?

If a company gets to section 5 of the marketing cycle and a substantial amount of the goals haven't been met then they will have to consider re-launching the product or taking it out of the market completely and placing it in a different market or changing it to meet the needs of the current market.

69

COMPARATIVE STUDY
Nokia: Company Profile in Brief
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, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations. Nokia is a broadly held company with listings on four major exchanges.

FEATURES OF NOKIA CAMERA PHONE

The exciting new Nokia Camera phone is a complete tool for capturing and sharing experiences. Take pictures or video with the built-in camera and then share them with their friends or family using multimedia messaging technology.

Play video clips and movie trailers with streaming or local playback using Real One Player.

Tailor

the

functionality

of

their

Nokia

Camera

phone

by

downloading Symbian and Java applications.

70

They can truly personalize your Nokia Camera phone with images, colorful changeable covers, and polyphonic ringing tones.

Display and User Interface

High-resolution, full-color display (4096 colors) 176 x 208 pixels 5-way scroll key Symbian operating system Midi and WAV ringing tones Ringing tone composer Predictive text input S60 software on Symbian OS

Integrated Digital Camera

Image capture at 640 x 480 resolution Phone display used as a viewfinder Photo album Video capture: H.263 video inside 3GP file format Video playback: Real One player; formats: H.263 and MPEG-4 video inside 3GP file format; RealAudio and Real Video inside Real Media format

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Streaming and local playback

Memory

3.4 MB internal

dynamic memory

for phone numbers,

messages, and photos

External memory on 3V MMC memory card

Wireless Connectivity

Infrared Bluetooth Connect phone wirelessly to a compatible phone or a compatible PC

Send/receive pictures, video clips, and graphics Play games

Java Technology

Support for Java MIDP 1.0 Download new Java games and applications

Messaging

Combine picture, video, text, and voice clip and send by MMS or email to compatible phone or PC

Email over GSM data, HSCSD, and GPRS Email protocols: SMTP, POP3, IMAP4 Concatenated SMS messages, picture messaging 72

Data Transfer

Up to 43.2 kilobits per second in high-speed circuit switched data networks

Up to 40.2 kilobits per second in GPRS networks

Voice Features

Voice dialing Voice recorder Integrated hands free speaker

Browsing

XHTML browser over GSM data, HSCSD, and GPRS

Games

Java and Symbian games Multi-player games over infrared and Bluetooth between compatible phones

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74

SONY ERICSSON
Sony Ericsson Mobile Communications

Sony Ericsson, a 50:50 joint venture of Sony Corporation and Ericsson AB, established in October 2001. Its mission is to establish Sony Ericsson as the most attractive and innovative global brand in the mobile handset industry. Ericsson Market share is 6.2%. Sony

75

76

DIFFERENCES BETWEEN NOKIA CAMERA PHONE AND SONY ERICKSSON CAMERA PHONE MODEL: NOKIA 7650 SONY ERICKSSON P800

Dimensions, weight and autonomy. The phones are quite comparable to each other by these features. P800 weighs 158g against Nokia, which weighs 154g. The form-factor is also similar. P800 has a lithium-polymer battery of 1000 mAh capacity to decrease the weight of the phone, Nokia is equipped by BLB-2 battery of 750 mAh capacity. We saw such type of battery in older models, in Nokia 8210 for instance. In respect to the autonomy, these two handsets resemble to each other too. In case of similar talk time and time of using of additional applications the phones work about 2 days, it's the optimal autonomy without re-charging. So, P800 has the parity with Nokia 7650 in dimensions, form-factor and autonomy.

77

Screen and text input. Large energy consumption in P800 is caused by technical characters, firstly, because of the screen. It can display up to 4096 colours like Nokia 7650 but P800 has a touch screen, which allows to input information with a help of on-screen keyboard and to lighten a menu navigation. You can easily scroll the lists by a stylus and select the desired menu items. Only a usual keypad (as in many other handsets) can be used in Nokia 7650 to input the information. As a result it's approximately impossible to input large texts. P800 can be compared in convenience to any PDA, what is really a step forward. So if you are going to make notes in your smart phone, choose P800.

If you don't like on-screen keyboard, you can use a usual one, it is placed on the removable flip cover of the phone.

The screen of the 7650 measures 35x41mm and has a resolution of 176x08 pixels, while P800 measures 40x61mm and has a resolution of 208x320 pixels. As you see the size of the screen in P800 is larger. The information is clearly visible on the displays of both phones in all lighting conditions, no considerable differences.

Vibrating alert and ringing tones. A user has an excellent choice to decide which ringing tone he likes most of all. Both of these phones support the most common formats (in reality, all

78

formats supported by smart phones). But 7650 as well as P800 has problems with the vibrating alert, it is rather weak. In both cases you touch the screen while talking, it gets dirty very quickly, especially 7650 has such a problem. It's possible to use a hands free mode in P800 but the volume of the loud speaker is very low.

User's interface. Both devices are worked under Symbian OS, so, the interface has much in common. Both are handy, no difficulties while working. Notable, that 7650 has OS in 6.1 version and P800 - in 7.0 version. The last version doesn't give any considerable advantages to the consumer, only few extra features which don't mean much. Of course, if to say about longterm outlook, the 7. version is the winning, but the platform 60 will be also long-life. Hence, here is also the parity.

The main navigation key in the 7650 is 5-directional joystick, P800 has a Jog Dial. The rate of moving through the menu is rather high in both cases, but P800 has also a stylus-based navigation. Besides, you can work with P800 even when the flip is closed, in this case you have an access to 9 the most often used applications. So, if to say about navigation capabilities, they are definitely in favour of P800.

Standard applications and the memory. To say the truth, none of these devices has unique software, which can be the

79

strong case for this or that model. The devices offer similar features and the comfort of viewing the information (P800 has better text input). The applications occupy almost the same memory space in both handsets, the only differences is that Sony Ericsson has 3 times more memory space (12Mb) than 7650 (4Mb). Furthermore, Sony Ericsson has an additional memory slot Memory Stick Duo, which extends greatly the phone's capabilities. Now there are almost no limits of the internal memory volume, data bases and rarely used

applications, musical and video files can be kept on the memory cards. The slot is placed on the right-hand side of the phone, it is always available. It is one more advantage of P800.

Bluetooth. Bluetooth can be used only for data transmission in Nokia 7650, you can't switch it to the phone, it's really a shortcoming. One can transmit both data and voice via blue tooth in P800.

Data synchronization. You can do it via IR-port or blue tooth in both models. Also, in the standard kit of P800 cable (RS232) is included. You can create reserve data copies, synchronize notes of organizer, phone book, mail client with the most popular applications from PC. Both devices are quite capable. I forgot to say that both handsets had SyncML support.

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WAP. Nokia7650 has WAP-browser in 1.2.1 version, the rival product has version 2.0 It doesn't play any role today, but in future, in a year or year and half it can be crucial.

Camera. Internal cameras of both devices are similar by quality and picture resolution. You could look at the pictures taken by this cameras in reviews of these smart phones.

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CONCLUSION
P800 has more features than Nokia 7650, though form-factor and approximate work time are similar. The standard kit of P800 is also better. But the price of the 7650 goes down little by little, while P800 will appear only in December. It's interesting that the price competition will be impossible by that time, 7650 would cost Rs. 19350 approx. while the price of P800 would be Rs. 25000 approx. The classical situation emerges, when the new advanced product is more expensive. P800 can be a real rival to the 7650 if the price parity is reached, but it's impossible. Hence, P800 - a potential leader - turns into a usual model, which will have a pressure from Nokia and other

manufacturers. After Nokia 3650, which will be launched in February, the other smart phones on the platform 60 will appear, it's also necessary to take Motorola with the model Paragon II and Samsung into account. This segment of the market (Smartphone) is not great and only the most quick and aggressive companies will be successful. Sony Ericsson loses Nokia now, though it has the technological advantage. Every day more applications from the third companies appear for 7650, of course, they are created for P800 too, but slowly. On the other hand, the life of P800 will be longer because the phone has a high potential to develop. As you see the decisive point is the market policy of Sony Ericsson, one mistake and P800 will become a common model, but if the company comes to decision to decrease the price of the model as much as possible, P800 will be the leader of the market.

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MOTOROLA

Motorola is known around the world for innovation and leadership in wireless and broadband communications. Inspired by their vision of Seamless Mobility, the people of Motorola are committed to helping you get and stay connected simply and seamlessly to the people, information, and entertainment that you want and need. They do this by designing and delivering the "must have" products, "must do" experiences and powerful networks - along with a full complement of support services. A Fortune 100 company with

global presence and impact, Motorola had sales of $36.8 billion in 2005.

83

Connected Home Solutions Provides integrated, end-to-end systems that reliably deliver digital entertainment, information, and communications services over a variety of wired and wireless broadband network architectures. The world's leading provider of digital Home video set-tops and cable by

modems, Connected

Solutions empowers

consumers

connecting their homes, keeping the people, content, and services important to them always within their reach. Government and Enterprise Mobility Solutions A leading provider of integrated radio communications and

information solutions, with more than 65 years of experience in meeting the mission-critical requirements of public safety,

government and enterprise customers world-wide. It also designs, manufactures and sells automotive and industrial electronics

systems and telematics systems that enable automated roadside assistance, automobiles. navigation and advanced safety features for

84

Mobile Devices Offers market-changing icons of personal technology - transforming the device formerly known as the cell phone into a universal remote control for life. A leader in multi-mode, multi-band communications products and technologies, Mobile Devices designs, manufactures, sells and services wireless subscriber and server equipment for cellular systems, portable energy storage products and systems, servers and software solutions and related software and accessory products. Networks Delivers proven capabilities in cellular, wireless broadband and wire line access technologies, with recognized leadership in integrating core networks through wireless IP, wireless soft switch and IP multimedia subsystems. The Networks group is advancing

seamless mobility with innovative technology solutions, as well as a billion dollar services business with an expanded portfolio delivering support, integration, applications and management.

85

FEATURES OF MOTOROLA CAMERA PHONE

Motorola RAZR V3 Phone (T-Mobile) Product Description Thin is definitely in. At just over a half-inch thick, the Motorola RAZR V3 is the perfect combination of sleek design and powerful features. With long-range Bluetooth, support for video playback, a VGA (640 x 480) camera and a gorgeous color screen, the RAZR V3 is everything you're looking for in a stylish mobile companion. Get the most out of your T-Mobile service with this impressive quadband phone.

86

Design Bluetooth Wireless Technology Stay connected without wires. Choose from a range of optional Bluetooth

accessories. MPEG4 Video Playback Download and watch sports action and music clips. They're all beautifully

displayed on the large 2.2 color display. Built-in Speakerphone Keeps the conversation flowing when you're busy by going hands-free? Or exchange ideas in a conference call. Anodized Aluminum Case The ultra-thin Moto Razor V3 has the distinctive metallic luster of anodized aluminum. Digital Camera Capture your world in style. Create memorable images with the effective 4 x digital controls. The RAZR V3's design takes the standard clamshell form factor to the next level with an impressive, anodized aluminium construction. A large 176 x 220 colour display with 262,000 colours dominates the inside of the top cover. The outside cover of the handset sports 87 zoom and quick exposure

a supplementary 96 x 80 full-colour display that can display pictures, time, call information, battery and signal strength, and more. The VGA camera lens is housed above this display. Up/down buttons are placed on the left side for volume control while a voice button on the right side of the unit allows you to enter voice memos and create voice dialing profiles. Most of the phone's features and on-screen menus are controlled by a five-way center button on the handset's backlit control pad, which is precision cut from a single sheet of nickel-plated copper alloy. A charging port and USB data cable port is placed on the bottom of the phone. Calling Features The RAZR V3's internal phone book can hold up to 1000 contacts while the phone's picture ID system allows you to assign pictures to your most common callers. It also supports polyphonic ringtones as well as MP3 ringers, allowing you to use portions of your favourite songs to alert you to incoming calls. A number of ringtones come preloaded on the phone and more ringtones can be downloaded from T-Mobile's t-zones service. There's even an included

application, MotoMixer, that lets you mix your own ringtones. For times when you want to be discreet, there's a vibrating alert. A built-in speakerphone makes it easy to talk without having the phone to your ear while voice activated dialing makes calling your friends, family and associates as easy as saying their names.

88

Because the RAZR V3 is Bluetooth enabled, wireless headsets can be configured with the phone for total hands free operation.

89

Messaging, Internet and Tools The RAZR V3 is a messaging and wireless Internet powerhouse. Support is built in for sending and receiving pictures, text, graphics, sound and video via messages. When used in combination with the phone's built-in still and video camera, MMS opens up a whole new world of messaging fun. Instant messaging is also supported (TMobile messaging charges apply) and the phone ships with a built-in email client with support for POP3, IMAP4 and SMTP protocols.

Thin is in: The RAZR's keypad is precision cut from a single sheet of nickel-plated copper alloy. There's also a built-in web browser for t-zones downloads and mobile web browsing. T-Mobile's t-zones service lets you receive and send emails, read news headlines, get weather updates, download games and ringtones, and more. iTap text entry, which is a technology that makes it easier for people to enter words and text on handsets, is built into the unit-- a plus for mobile email and text messaging users. When used with a T-Mobile data plan and the

90

phone's Bluetooth or USB data capability, the phone can be used as a wireless modem for laptops and PDAs. A number of handy software tools are bundled with the RAZR V3 including a voice memo recorder, a calculator with currency converter, a calendar and an alarm clock. Use the phone's Bluetooth capability to set up a wireless link with a Bluetooth accessory or connect to a computer or hand-held device to exchange and synchronize data. The phone also supports the SyncML PC

synchronization standard, can be used with Motorola's Mobile Phone Tools PC application to manage and synchronize contacts, calendar and other data with your PC. Imaging and Entertainment With 5 MB of internal memory storage, the RAZR V3 shines in the entertainment department. The phone's VGA camera features a 4x zoom, image quality options, and an auto-timer so you can be in your pictures, too. Capture stills and then send them to your friends via MMS messaging or email, or to your PC via USB or Bluetooth. The phone is capable of MPEG4 video playback when you receive a video message, or if you upload video to the phone via USB or Bluetooth. The RAZR V3 also supports custom graphics for wallpapers so you can dress up the phone to suit your fancy. Support for gaming is built into the phone and games are available for download via the T-Mobile t-zones service. 91

Operating the RAZR Battery Door The RAZR V3's battery cover is designed to have a very tight fit with the phone case. You may need to use your fingernail or a very thin instrument to depress the small battery cover release button. When replacing the cover, make sure the cover securely snaps into place before operating the phone. Vital Statistics The Motorola RAZR V3 weighs 3.35 ounces and measures 3.86 x 2.09 x .54 inches. Its lithium-ion battery is rated at up to 6.67 hours of digital talk time, and up to 250 hours of digital standby time. It runs on the 850/900/1800/1900 MHz GSM/GPRS

frequencies. The phone comes with a one year limited warranty.

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MARKET SHARE

Dominated largely by Nokia with a total market share of 59%, followed by Sony Erickson (13%) and Motorola (7%) respectively.

Others 21% Motorola 7%

Sony Ericksson 13%

Nokia 59%

FINDINGS AND ANALYSIS

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Based on survey using questionnaire method and answers taken from a group of 50 individuals of different ages. All data in percentage.

Q.1 Do you use a mobile phone?

YES 94

NO 6

100 80 60 40 20 0

YES

NO

Q.2 Which mobile phone do you use?

94

Nokia 59

Sony Ericsson 13

Motorola 7

Others 21

Nokia Sony Ericsso Motorola Others

95

Q.3

Which mobile handset company is the best according to you?

Nokia 46

Sony Ericsson 30

Motorola 16

Others 8

Nokia Sony Ericss Motorola Others

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Q.4 How much satisfied are you with the products of Nokia? Dissatisfied 16 Satisfied 52 Very Satisfied 32

60 50 40 30 20 10 0 Dissatisfied Satisfied Very Satisfied

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Q.5 How would you rate the marketing policy of Nokia? Good 56 Ordinary 36 Terrible 8

60 50 40 30 20 10 0 Good Ordinary Terrible

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Q.6

How would rate Nokia on the basis of being user friendly? Good 60 Ordinary 34 Terrible 6

60 50 40 30 20 10 0 Good Ordinary Terrible

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Q.7 Rate Nokia on the basis of following: 1. Performance Good 52 Ordinary 36 Terrible 12

60 50 40 30 20 10 0 Good Ordinary Terrible

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2. Durability Good 50 Ordinary 38 Terrible 12

50 40 30 20 10 0 Good Ordinary Terrible

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3. Technology

Good 56

Ordinary 40

Terrible 4

60 50 40 30 20 10 0 Good Ordinary Terrible

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4. Looks Good 60 Ordinary 38 Terrible 2

60 50 40 30 20 10 0 Good Ordinary Terrible

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Q.8 Who do you think is Nokias biggest competitor? Sony Ericsson 54 Motorola 34 Others 12

60 50 40 30 20 10 0 Sony Ericsson Motorola Others

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Q.9

How would you rate Nokia on the basis of its pricing policy? Good 50 Ordinary 40 Terrible 10

50 45 40 35 30 25 20 15 10 5 0 Good Ordinary Terrible

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RECOMMENDATIONS
Nokia can do an excellent job to make the mobile phone easy to use. In order to maintain the leader position of mobile phone market, the company should closely focus on the tendency of marketing development. It would be good for Nokia to make out specialized products for enterprise markets. These specialized products functions would be to make the connection more quickly and handily than before. The enterprises could involve big companies, hospitals, government organizations etc. Some advantages attached to this approach are: 1. The group market is a long run market. The enterprise wouldnt change these products easily and they may require updating after a period of time. 2. This group market may get further marginal profits than the individual market and the rate of return over cost will be improved as well This is because the competitors will be less in the group market than the individual market.

Analyzing the current business situation, Nokia needs to :

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 Differentiate its products capability between the old and new category. Enhance its products with computer IT compatible, focusing on new technology users. Maintain its price reasonable. Follow, practice and promote its environment policies. It is also essential to treat the services and the products as equally important. The provision of a service can be attractive in itself. Developing a good understanding of how your products and services will be used and how they will change is important. Operators may well find themselves positioning R&D as a means to promote the use of bandwidth and focusing on service creation. While remaining flexible and alert to change, a company should build on standards. In a world where services will be delivered across a variety of components, one needs their component to fit in.

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OTHER RECOMMENDATIONS

1. Nokia has to control market skimming as it negatively attacks the brand 2. Nokia is the market leader and it should try to increase the growth rate as it had become flatter in 2005. 3. Nokia should be innovative on style and looks frint of the cell phones as it has recently sprung up in the present in order to attract youth. 4. High end mobile phones from Nokia have a hanging problem they must be tweaked to perform as desired. 5. The price of Nokia cellphones is high as compared to the grown up twins available so the buyer is unable to buy the latest available. 6. Nokia should work on a phone for the masses as it has a lot of scope, just like bird and motorola did. 7. The infrared present on the low end phones of nokia lack compatibility with the non0 nokia phones. 8. Nokia should work upon their combination of price and features in an instrument. 9. The user interface present in both brands of phones are each of a type and are acceptable by the users.

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CONCLUSION
The findings of the research I found that nokia is the market leader in the mobile phone industry in india Nokia has storng brand image to influence and create large customer base. Nokia should Launch new mobile phones that are an optimum balance between price and features Strengths and opportunities of Nokia suggest that high quality, advanced technology, worldwide service and continuous new products are the essential factors for Nokias product

development. Nokia concerns on its enterprise culture. In the company the relationship between individuals is mutual trust, fair and openness. Nokia makes courses to train its employees regularly which will assist Nokia in achieving its higher goal.

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BIBLIOGRAPHY
Websites
http://www.news.bbc.co.uk/1/hi/sci/tech/1723738.stm http://www.amanet.org/books/catalog/081440636x_history.h tm http://www.nokia.com http://reinholm.com/strategic%20management.htm

Magazines
Network Magazine SDA Asia Magazine

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QUESTIONNAIRE
Q.1 Do you use a mobile phone? Yes No

Q.2 Which mobile phone do you use? a) Nokia b) Sony Ericsson c) Motorola d) Other Q.3 Which mobile handset company is the best according to you? a) Nokia b) Sony Ericsson c) Motorola d) Other

Q.4 How much satisfied are you with the products of Nokia? a) Dissatisfied b) Satisfied c) Very Satisfied

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Q.5 How would you rate the marketing policy of Nokia? a) Good b) Ordinary c) Terrible Q.6 How would rate Nokia on the basis of being user friendly? a) Good b) Ordinary c) Terrible Q.7 Rate Nokia on the basis of following: 1) Performance a) Good b) Ordinary c) Terrible 2) Durability a) Good b) Ordinary c) Terrible 3) Technology a) Good b) Ordinary c) Terrible 112

4) Looks a) Good b) Ordinary c) Terrible Q.8 Who do you think is Nokias biggest competitor? Sony Ericsson Motorola Other Q.9 How would you rate Nokia on the basis of its pricing policy? a) Good b) Ordinary c) Terrible

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