About Nokia 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 ($0.40). 38Another problem faced by Nokia was highly competitive environment in the industry. Powerful global players like Motorola, Siemens, Sony and Ericsson already had there presence in India in consumer durables, electronics and engineering sectors, and hence were aware conditions prevailing in Indian market. However, overcoming all odds, Nokia India came out as the market leader with 56% share in 2003-04 and still continues to lead with 80% in 2007 (Indu P., 2005) (Web 4). Asia is the fastest growing market for Nokia. Competitors such as Samsung, Motorola nad Sony Ericsson have captured huge market shares. The consumer is going for high technology at reasonable prices. They respect any provider who gives the best combination of both. Nokia has retained the top spot for quite some time in India, the recent figures are; Finnish handset major Nokia has retained the top slot in Indian GSM market with 79 per cent share in 2006(Web 5) Nokia came from behind to stun the likes of Ericsson and Motorola and corner nearly 80% of the GSM handset market in 2007(Web 4) Nokia in 2006, Started a manufacturing in Sriperumbudur, Chennai. His plant as on December 2007 employed approximately 6000 people. The current investment on this is about US$ 210 million in the plant since January 2006. Nokia announced to further invest US$ 75 million in year 2008. 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. (Web 3 and Web 23)

. MARKETING STRATEGY __________________________________________________________________________________ _______________ 5.1 Introduction 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 Indiaspecific strategy or a glocal strategy. It adapted the to 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 Ps, namely; product (customization), price, place (distribution) and production. 5.2 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 52tones. 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 dont 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) 53Nokia 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 2000s, 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) As part of its strategy to connect with the young population in India, Nokia has been associating with youth passions like Cool Sports, Music, and Fashion. In the genre of Cool Sports, Nokia hosted the Ngage QD Gaming Championship, Defend Your Turf, the first ever futsal Championship. Over the last few years, in music Nokia has brought several world class music artists including, Shakira, Shaggy, Mark Knopfler, Sting and Enrique Iglesias to India. In Fashion, Nokia has a strong association with Wills Lifestyle India Fashion Week and Nseries lifestyle led campaigns amongst others. (Web 12)

54In 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) 5.3 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 market 5.4 Place (Distribution) 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 modeled 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 Nokias GSM mobile phones, data products and mobile services. The retail network they developed was very strong and dedicated. They came up with Nokia Professional Centers (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 Nokias handsets. NPCs were multibrand retails 56outlets with 60% of their area dedicated to Nokia. While redistribution stockists were for supplying handsets across India. HCL also came with Nokia Care Centers (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 thouch 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 lowglare lighting, the store provides a relaxed and satisfying customer experience.