A Project on Marketing Strategy and Sales of Nokia in Assam

8/11/2019 A Project on Marketing Strategy and Sales of Nokia in Assam

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ROJECT ON MARKETING STRATEGY AND SALES OF NOKIA IN ASSAM


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NTENTS

NOKIA : AN INTRODUCTION - - - - - - - - - - PAGE 1-11

DETERMINATION OF PROBLEM AREA - - - - PAGE 12

COLLECTION OF DATA - - - - - - - - - - - - - - - - PAGE 13

DATA ANALYSIS - - - - - - - - - - - - - - - - - - - - - PAGE 14

FINDINGS - - - - - - - - - - - - - - - - - - - - - - - - - - - PAGE 15

MARKETING STRATEGY OF NOKIA - - - - - PAGE 17-23

MARKET SHARE OF NOKIA - - - - - - - - - - - - PAGE 24-25

FINANCIAL INFORMATIONS - - - - - - - - - - - PAGE 26-32

RECOMMENDATIONS - - - - - - - - - - - - - - - - PAGE 33-34

CONCLUSION - - - - - - - - - - - - - - - - - - - - - - - - PAGE 35

ACKNOWLEDGEMENTS - - - - - - - - - - - - - - - - PAGE 36

BIBLIOGRAPHY - - - - - - - - - - - - - - - - - - - - - - - PAGE 37

PAGE 1

KIA : AN INTRODUCTION

ryone has a need to communicate and share. Nokia helps people to fulfill this need and they help people feel close ters to them. They focus on providing consumers with very human technology technology that is intuitive, a joybeautiful.


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ory of nokia

KIAS FIRST CENTURY: 1865-1967

first Nokia century began with Fredrik Idestam's paper mill on the banks of the Nokianvirta river. Between5 and 1967, the company would become a major industrial force; but it took a merger with a cable companya rubber firm to set the new Nokia Corporation on the path to electronics...

5: The birth of Nokiarik Idestam establishes a paper mill at the Tammerkoski Rapids in south-western Finland, wherethe Nokia

y begins.

8: Finnish Rubber Works foundedd Wickstrm founds Finnish Rubber Works, which will later become Nokia's rubber business.

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2: Finnish Cable Works foundedard Poln starts Finnish Cable Works, the foundation of Nokia's cable and electronics businesses.

7: Verner Weckman, industry heavyweightmer Olympic wrestlerVerner Weckmanbecomes President of Finnish Cable Works.

0: First electronics departmente Works establishes itsfirst electronics department,selling and operating computers.
http://www.nokia.com/A4303003http://www.nokia.com/A4303003http://www.nokia.com/A4303004http://www.nokia.com/A4303005http://www.nokia.com/A4303005http://www.nokia.com/A4303004http://www.nokia.com/A4303003http://www.nokia.com/A4303003


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2: First in-house electrical deviceCable Works electronics department produces its first in-house electrical device - a pulse analyzer forear power plants.

7: The merger

ia Ab, Finnish Rubber Works and Finnish Cable works formally merge tocreate Nokia Corporation.

E MOVE TO MOBILE: 1968-1991

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

9: Mobira Oy, early phone makero telephone company Mobira Oy begins life as a joint venture between Nokia and leading Finnish

vision maker Salora.

1: The mobile era beginsdic Mobile Telephone (NMT), thefirst international mobile phone network,is built.

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2: Nokia makes its first digital telephone switch

Nokia DX200, the companys first digital telephone switch, goes into operation.

4: Mobira Talkman launched

ia launches the Mobira Talkman portable phone.

7: Mobira Cityman birth of a classicia launches the Mobira Cityman, thefirst handheld NMT phone.
http://www.nokia.com/A4303006http://www.nokia.com/A4303008http://www.nokia.com/A4303009http://www.nokia.com/A4303009http://www.nokia.com/A4303008http://www.nokia.com/A4303006


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1: GSM a new mobile standard opens upia equipment is used to make theworlds first GSM call.

BILE REVOLUTION: 1992-1999

In 1992, Nokia decided to focus on its telecommunications business. This was probably thet important strategic decision in its history.

As adoption of the GSM standard grew, new CEO Jorma Ollila put Nokia at the head of the

ile telephone industrys global boom and made it the world leader before the end of the decade...

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

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

4: Nokia Tune is launchedia launches the 2100, the first phone to featurethe Nokia Tune.

4: Worlds first satellite callworlds first satellite call is made, using a Nokia GSM handset.

7: Snake a classic mobile gameNokia 6110 is the first phone to featureNokias Snake game.

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8: Nokia leads the worldia becomes theworld leader in mobile phones.

9: The Internet goes mobileia launches the world's first WAP handset, the Nokia 7110.
http://www.nokia.com/A4303010http://www.nokia.com/A4303010http://www.nokia.com/A4303010http://www.nokia.com/A4303012http://www.nokia.com/A4303013http://www.nokia.com/A4303014http://www.nokia.com/A4303014http://www.nokia.com/A4303014http://www.nokia.com/A4303015http://www.nokia.com/A4303015http://www.nokia.com/A4303014http://www.nokia.com/A4303013http://www.nokia.com/A4303012http://www.nokia.com/A4303010


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KIA NOW: 2000-TODAY

Nokias story continues with 3G, mobile multiplayer gaming, multimedia devices and a look

e future...

2: First 3G phoneia launches itsfirst 3G phone,the Nokia 6650.

3: Nokia launches the N-Gage

ile gaming goes multiplayer with the N-Gage.

5: The Nokia Nseries is bornia introduces the next generation of multimedia devices, theNokia Nseries.

5: The billionth Nokia phone is soldia sells its billionth phonea Nokia 1100in Nigeria. Global mobile phone subscriptions pass 2 billion.

6: A new President and CEO Nokia todayPekka Kallasvuo becomes Nokias President and CEO; Jorma Ollila becomes Chairman of Nokias board.

ia and Siemens announce plans for Nokia Siemens Networks.

6: The birth of Nokia Eseries

ultimate handheld communicator mobiles (Enterprise series) are launched.

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RUCTURE OF THE COMAPANY:
http://www.nokia.com/A4303018http://www.nokia.com/A4303019http://www.nokia.com/A4305125http://www.nokia.com/A4305125http://www.nokia.com/A4305125http://www.nokia.com/A4303019http://www.nokia.com/A4303018


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kia comprises three business groups:

bile Phonesconnect people by providing expanding mobile voice and data capabilities across a wide rangemobile devices.

ltimedia gives people the ability to create, access, experience and share multimedia in the form ofanced mobile multimedia computers and applications with connectivity over multiple technology standards.

erprise Solutions offers businesses and institutions a broad range of products and solutions, includingrprise grade mobile devices, underlying security infrastructure, software and services.

business groups are supported by various horizontal entities:

tomer and Market Operationsis responsible for sales and marketing, manufacturing and logistics, andrcing and procurement for mobile devices from Mobile Phones, Multimedia and Enterprise Solutions.

hnology Platforms delivers leading technologies and platforms to Nokia's business groups and externalomers.


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PAGE 6

ny other Nokia-wide horizontal units drive and manage specific Nokia assets. These include Brand and

ign, Developer Support, Research and Venturing, and Business Infrastructure.

rporate functions(support Nokia's businesses with company-wide strategies and services)

kia Siemens Networks,which started operations on April 1, 2007, combines Nokias networks business

Siemens carrier-related operations for fixed and mobile networks into a company owned approximately% by each of Nokia and Siemens, and consolidated by Nokia.

SSION OF NOKIA:

mission of venturing activity: the renewal of Nokia.

Venturing at Nokia contributes to Nokia's renewal by identifying andloping new businesses. The Nokia Ventures Organization and the other venturing teams throughout Nokia

working on new businesses that extend beyond the scope or current focus of Nokia's core business units.ia is expanding their interests towards new areas, but still working within Nokia's broad vision of "Life

s Mobile." This venturing activity triggers new developments that play a significant role in the renewal ofcompany.

oration and experimentation are at the core of venturing, and Nokia recognizes that innovation does nothappen within Nokia. Their innovation networks extend beyond the company and include research centers,emics and business partners, and entrepreneurs.

oughout its history, Nokia has renewed its core businesses and created innovative businesses in entirely news. Nokia's venturing activity has created independent businesses, contributed to the growth and profit of thebusinesses of Nokia, provided financial returns on investments, and has produced intangible assets and

ghts.
http://www.nokiasiemensnetworks.com/http://www.nokiasiemensnetworks.com/http://www.nokiasiemensnetworks.com/


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SEARCH AT NOKIA:

Nokia believes that effective research and development is vital to remainingmpetitive in the mobile communications industry. As of December 31, 2005, Nokia employed 20 882 people

esearch and development in 26 countries, representing approximately 36% of Nokias total workforce. D expenses totaled EUR 3825 million in 2005, representing 11.2% of Nokias net sales in 2005, compared

2.9% of net sales in 2004. We invest a substantial portion of our resources in research and developmentvities within our principal business groups, Technology Platforms, and in the Nokia Research Center.

kia Research Center drives Nokia's technological competitiveness and renewal in technology areas vital forcompany's future success. Interacting closely with all Nokia business groups, the research center supports

kia's evolving core businesses by:

providing expertise in strategically important areas developing new concepts, technologies and applications developing disruptive technologies beyond the current product horizon

Only 'R' But 'D'

ia Research Center acts as a link between basic industry research and product development - as well as respondin

uct development needs of Nokia's business groups, they are also responsible for carrying out Nokia's longer-term r

main booster for this is our pioneering funding and operational model. About 70 per cent of our annual budgetm selling contracted research directly to Nokia's business groups. The research center must churn out tangible re

ects for our businesses and react fast to changes in the business envir

ability to react to sudden changes is developed through long-term research. Another factor in our successnizational culture, which consciously cultivates the innovative spirit and encourages individual initiative. At rmation and people are moving constantly around the company, radiating knowledge and assisting internal benchm

PA

sequently, they have learned to focus on research for the future, while generating new technologies useful for the pr


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ding Research Collaboration

ia Research Center manages and coordinates both research cooperation and standardization for the company. In

peration in pre-competitive research and active standardization are prerequisites for a healthy mobile communness, where only fully compatible products and services can enlarge existing markets and open up new ones.

ia is able to keep its soft signal antenna up through venturing and standardization as well as continual external netw

business communities, customers, product users, and a range of other stakeholders.

e Spectrum of Sciences

ia Research Center's laboratories are the backbone of the flexible R&D framework:

Software & Application Technologies laboratory

Multimedia Technologies laboratory

Computing Architectures laboratory

Networking Technologies laboratory

Radio Technologies laboratory

rating in six countries, Nokia's corporate research unit employs nearly 1,100 staff, with one in five employeesing a PhD. The best, most knowledgeable people attract others like them and our diverse teams bring together both

comers and distinguished experts. Our success is shown by the fact that Nokia Research Center generates half ofessential patents of the company.

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COMPROMISE WITH QUALITY:
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Quality is at the heart of Nokias brand promise, very human technology.

ia wants their customers to know that Nokia is the best quality company in the industry.

ir goal is to have the industrys best products and services, most loyal customers and most efficient

rational mode.

ia believes that quality is about meeting and exceeding customer expectations. At Nokia, they view qualitystically and as an integral part of business management. The qual i ty of products and customer exper iencesnds on the quality of processes, which in turn is tied to the quality of management

ias key quality targets are:

For Nokia to be number one in customer and consumer loyalty

For Nokia to be number one in product leadership

For Nokia to be number one in operational excellence

quality and reliability of our products and services are among the most important factors driving customerfaction and loyalty. Designing good quality products begins with understanding customer requirements and

ting the best user experience. The whole chain, from suppliers through to R&D, operations, sales andibution to customers, impacts the end-resulteverybody in the chain has a role to play in achieving quality.

products and customer experiences are the results of our everyday processes. Process management meansng the simplest way of operating, in order to create customer value in a lean manner. Our process thinkingrs everything we do, and processes are continuously improved based on the measures and the feedback weive from our customers.

lity in management is vital for leveraging innovations globally and improving productivity in general. Ouroach to this is platform thinking, process management and combining fact-based management with value-

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d leadership. We have developed a key framework for improvement at Nokia, which we call the 'Self-

ulating Management System'. It's about management practices that allow them to run their business in aistent, effective and fact-based manner.

mmitment to quality improvement is a continuous management process. It is both a business strategy and a

onal responsibility, and it is a part of Nokias culture and values. But at the end of the day, quality


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rovement is much more than something they can quantify in words or pictures. It is an attitudea mindset.

aking quality personally they are able to deliver world-class quality to our customers. It is their source ofiration, energy and excitement.

e quality personally!

ODUCTION UNITS OF NOKIA:

works Technology

China,Finland,India

bile Devices and Enhancements Brazil,China,Finland,India,Germany,UK,Hungary,Mexico,Southea

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OUP EXECUTIVE BOARD OF NOKIA:


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rman

Pekka Kallasvuoident and CEO of Nokia Corporation

ert Andersson

cutive Vice President, Customer and Market Operations

on Beresford-Wylief Executive Officer, Nokia Siemens Networks

o Ihamuotilacutive Vice President, Sales and Portfolio Management, Mobile Phones

y T. McDowellcutive Vice President and General Manager of Enterprise Solutions

stein Moerkcutive Vice President, Human Resources

Ojanperacutive Vice President, Chief Technology Officer

as Savandercutive Vice President, Technology Platforms as of April 1, 2006

hard A. Simonsoncutive Vice President, Chief Financial Officer

Sundbackcutive Vice President, Corporate Relations and Responsibility of Nokia Corporation

si Vanjokicutive Vice President and General Manager of Multimedia

Kai Oistamocutive Vice President and General Manager of Mobile Phones

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http://www.nokia.com/A4126339http://www.nokia.com/A4126337http://www.nokia.com/A4126338http://www.nokia.com/A4388202http://www.nokia.com/A4126341http://www.nokia.com/A4126342http://www.nokia.com/A4126344http://www.nokia.com/A4126345http://www.nokia.com/A4126346http://www.nokia.com/A4126347http://www.nokia.com/A4126348http://www.nokia.com/A4126348http://www.nokia.com/A4126347http://www.nokia.com/A4126346http://www.nokia.com/A4126345http://www.nokia.com/A4126344http://www.nokia.com/A4126342http://www.nokia.com/A4126341http://www.nokia.com/A4388202http://www.nokia.com/A4126338http://www.nokia.com/A4126337http://www.nokia.com/A4126339


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ermination of problem area

survey on Nokia was specially concentrated in its marketing strategy and its recent sales in Assam. I went to a nuealers and customers of Guwahati, Tezpur and Nagaon district to get a clear concept about the performance of No

almost a good response from most of the dealers and customers. Only a few dealers and customers are too busy to fquestionnaire. Few dealers are also not interested because of the low sale of Nokia in their outlet. I found them ested with other mobile companies such as Spice. In case of customers, I found all the Nokia users very co-oper

helpful to me. They all are willing to see Nokia as the undisputed leader in mobile making. They helpe

endously with their much valuable feedback and ideas. But some non-Nokia users were too much harsh and not warticipate in the survey. But, I was helped by most of the people by and large.

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ection of data

this project, data have been collected by following means from customers and dealers:

Sales data have been mostly collected from the dealers.The survey is mainly concentrated in lower Assam as the data collection has been done in Guwahati, TezpNagaon district.

User feedback has been taken from existing Nokia users.Nokia sales updates have been taken from Sales Executives of Nokia and Micro distributors in Nagaon and TezpFinancial data have also been taken from Sales Executives.Sales Executives also helped me to gain knowledge about existing mobile phones and upcoming phones of Nok

Few dealers also helped me to know more about current market trend of Nokia in Assam and in their area.I also gathered knowledge of cell phones from books e.g. THE CELLPHONE by Heather A. Horst and

Miller, MOBILE COMMUNICATIONSby Chul-Hee Kongand Jaiyung Leeetc.Marketing knowledge has been gathered from the book MARKETING MANAGEMENTby Keller, Kotler, and Jha.Financial information about Nokia has been gathered fromwww.nokia.com

Indian market strategies has been gathered fromwww.economictimes.comWebsites such as www.india-cellular.com and www.nokia.comprovide me the knowledge about the his

Nokia.Knowledge about the technical features of Nokia phones has been gathered from www.nokia.co.i

www.gsmarena.comA user poll is going on inwww.orkut.comin the community NOKIA INDIA PVT LTD.

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a analysis
http://www.nokia.com/http://www.nokia.com/http://www.nokia.com/http://www.economictimes.com/http://www.economictimes.com/http://www.economictimes.com/http://www.india-cellular.com/http://www.india-cellular.com/http://www.nokia.com/http://www.nokia.com/http://www.nokia.co.in/http://www.gsmarena.com/http://www.gsmarena.com/http://www.orkut.com/http://www.orkut.com/http://www.orkut.com/http://www.orkut.com/http://www.gsmarena.com/http://www.nokia.co.in/http://www.nokia.com/http://www.india-cellular.com/http://www.economictimes.com/http://www.nokia.com/


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ata analysis has been done over the collected data from the dealers, customers, micro-distributors, sales executiv

ne related books and websites.

Basic multimedia handsets are not available in low price segment (around Rs. 4000) as Sony Ericsson is hamsales in this price range by its handset K310i.Less advertisement in local news papers about the new offers.Non-availability of MP3 handsets in low price range.

Voice-recording memory is not much in low priced handsets whereas the S-5 model of Spice is providing it.Poor sound quality in low priced handsets.

Too much time taken for the activation of the offer SIM cards.Non-availability of replacement parts in the Nokia Care except those in Guwahati. So too much servicinrequires.

No brand ambassadors.No demo sets for the dealers.Less schemes and offers for the dealers whereas Motorola often provides handsome schemes for its dealers.Nokia lacks attractive looks in their handsets. But, this problem is going to be solved soon as it is going to

some lucrative phones in next few months such as 7500 Prism, 8600 Luna, N77, N76, E90, 6500 Slide, 6500 C3500 Classic etc.

Nokia is still the leader in worldwide mobile industry.No other mobile companies can match with Nokias quality.Only Nokia has extensive research facilities in every corner of world to provide better technology to its customthe mobile industry.

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DINGS


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findings of the data analysis are given below:

The market share of Nokia is found to be almost 75% here where as Spice has 9%, Motorola has 7%, Sony E

and Samsung both has 4%, LG has 3% and others have 2%. So spice is hampering Nokia sales especially in lorange and Motorola is hampering the sales somewhat by taking the advantage of the lack of attractive look in NoNow LG is producing a low cost MP3 handset without camera. So, it also steals the customers who require a l

MP3 handset which can hold a few of their favorite music.Almost 90% of the dealers think that they are getting less profit in Nokia than other companies. Regardingsurvey, the truth behind this fact is that there is too much Nokia dealers in the market. Thats why excompetition lowers the selling price of Nokia in the market as there is no minimum selling price is givencompany. So in search for more profit they are selling mobiles other than Nokia.Almost 90% of the dealers think that Nokia should have a brand ambassador.Most of the customers and dealers think that the after sales service of Nokia is too much slow and time-taking.

Almost 50% of the dealers say that the Nokia sale falls in recent past.Almost all the dealers want the time of price drop adjustments to be extended to 2-3 weeks at least.Almost 60% of the dealers do not have demo sets.

Almost 75% of the dealers want more offers and schemes for them and the customers.

Almost all the dealers want an exchange sale offer.70% of dealers think that the sale of Nokia handsets falls in the price range of Rs. 4000-8000 whereas 30%dealers think it to be in the price range of Rs. 1500-4000. This is because of non-availability of basic mulphones, poor sound quality, fewer features than its other counterparts and also very low price of Spice phones.

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RKETING STRATEGY OF NOKIA


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kia's strategy relies on growing, transforming, and building the Nokia business to ensure its future success.

ia's Strategy in India

kia entered the Indian market in 1994. The first ever GSM call in India was made on a Nokia 2110 mobile phone n network in 1995. When Nokia entered India, the telecom policies were not conducive to the growth of the mne ind

tariffs levied on importing mobile phones were as high as 27%, usage charges were at Rs.16 per minute and, ath rates, consumers did not take to mobile phones. Nokia also had to face tough competition from other powerful gyers like Motorola, Sony, Siemens and Ericsson...

ia - Made in India

April 2005, Nokia India, a subsidiary of Finland-based Nokia, announced that it was setting up a manufacturing facbile devices in Chennai, the state capital of Tamil Nadu in southern India. Nokia planned to invest US$ 100-150 mi

facility, where the production was expected to begin in the first half of

ka Ala-Pietil, President and Head of Customer & Market Operations, Nokia Corporation said, Establishingory in India is an important step in the continuous development of our global manufacturing network. India was id

kias new production facility. Each mobile handset has more than 400 parts and the

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rage production capacity of each manufacturing unit of Nokia is around 20 million units.


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s level of manufacturing involves a total of 8 billion components per annum, requiring strong logistical support. nufacturing facility needed to be located close to a major international airport or sea port for quick supply of compa met all these requirements, and also enjoyed cheap manpower costs and proximity to the rapidly growing Asiakets.

ides, Nokia was the market leader in mobile communication devices in India. The company has been carrying out keting, customer care and research & development activities in the country. Nokia considers India to be one of iortant markets. The companys Code Division Multiple Access (CDMA) facility is located in Mumbai and pware and technical support to CDMA consumers in India and other Asia Pacific countries. In 2004, Nokia was chmost respected consumer durables company by Businessworld.

ncing Back

kia was quick to learn from its mistakes and adopted strategies to regain its lost market share. Globally, during rter of 2005, the companys sales reached 7.4 billion euros, with the company selling 54 million phones during the

ndia, Nokia continued its leadership in GSM with a market share of 74% in March 2005. Nokia also surpassed Samor mobiles in the GSM segment, recording a share of 55% in the same month (Refer Table VIII for share of major ne brands in the GSM segment and their market shares).

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kia reorganized itself at the global level in 2004. At this point, a multimedia division was formed.


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divisions Indian operations concentrated on promoting the concept of high-end telephones in smaller towns whil

or higher volumes in larger cities. The marketing division of the company concentrated on making distributors ins sells high-end products. Though, the distributors were skeptical to start with, by the end of 2004, the proce

amlined and the results started to show...

Future Prospects

ording to industry analysts, by 2010, the mobile phones industry in India will be driven by voice, multimedia andices for organizations. The tele-density in India was estimated to increase to 18.2% by March 2009, with cription rising to 148.77 million by that time. In many instances, the cell phone has become the only basic telephohousehold/enterprise in India, rather than a landline phone. It was turning out to be more economical and effici

d line telephones. So, there was great scope for further expansion with reduction in the cost of ownership...

den+Kennedy chosen as the lead strategic and creative agency for Nokia's mobile phones

den+Kennedy (W+K) has recently been appointed as the global lead agency for Mobile Phones group in Nokia. Ws the strategic global driving creative excellence across Mobile Phones' marketing, and will be responsible for the cdevelopment of all global campaigns.

ile Phones marketing are currently changing its mode of operation with a focus on planning and increasctiveness and efficiency of all marketing activities. The agency review has been an integral part of the marketing

ess.

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trong emphasis to choose an agency that is best positioned to support the Mobile Phones strategy and birements over time were key to the selection process. Additionally, a diverse repertoire of knowledge and experien


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key p

eden and Kennedy's track record demonstrated strength in creative thinking and the potential to be a strong strate

ness marketing advisor with a solid commitment to Nokia's business priorities and amibitions. We expect this relatelp take us to our goal of becoming the most loved and admired iconic brand", says Jo Harlow, Senior Vice Pr

keting, Mobile Phones, Nokia.

K will begin working on marketing projects in the fall, with full execution beginning on January 1, 2008.

y Nokia is No. 1 in India, China

asn't hard for Wang Ninie to decide on a mobile phone. In early March the twenty-something Beijing entrepreneuen Nokia handset with a flower pattern etched into the trim, one of the company's 'L'Amour' line of high-end d

nes.

ll in love with it," she says. At $470, the phone wasn't cheap, and she had to wait a few hours for delivery since th't have one in stock. No matter. Wang knew she had to have it. "I didn't even look at other phones," says Wang, wmmended the handset to friends.

anlal Pitodia is equally smitten with Nokia. The 27-year-old Bombay (Mumbai) fruit vendor used to spend hnding the pavement in the city's alleys, hawking oranges, apples, and bananas.

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t September, Pitodia ponied up $56 for his first handset, a simple but sturdy Nokia 1100. Now he sits under a cch umbrella, earning as much as $10 a day taking orders by phone for both him and nearby vendors.

ied many phones, but Nokia is the most user-friendly," says Pitodia. "I am the only one in the footpath with a mobis proudly.

re than any other handset maker, Nokia Corp. has connected with the likes of Wang and Pitodia and their billintrymen. In both China and India, the Finnish company is the top brand.

China last year, it had nearly 31% of a crowded market, well ahead of the 10% controlled by No. 2 Motorola Inc. Ns in Greater China (the mainland, Hong Kong, and Taiwan) jumped by 28%, to $4.5 billion.

region today is the company's biggest market, accounting for 11% of global revenues, compared with 8% in the Ua, Nokia has a 60% share, with sales last year of about $1 billion. By 2010 the company expects India to be itsket.

kia isn't letting up: On Mar. 11 it opened its first Indian factory, a $150 million facility near the southern city of Mennai) that will turn out as many as 20 million inexpensive phones annually both for the local market and for expocompany is doubling the size of its plant in the Chinese city of Dongguan, near Hong Kong.

two Asian giants are of fundamental importance for Nokia. The Finnish company has played catch-up in the U.S.,torola has beaten it with hot-selling models such as the ultra-thin RAZR. But the U.S. market is nearly saturated.


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company that can control Asia's Big Two will have a lead in the global handset wars. Today, China is the world'

ular market, with some 400 million users and growth last year of 20%. While India is far smaller, with just 81 mrs in February, handset sales are expected to double this year and total users could hit 500 million by 2010.

ina and India are critical to Nokia's overall strategy and they can only get more important," says Neil Mawston, asctor of consultancy Strategy Analytics.

ght off guard

a few years ago, Nokia faced big troubles in both countries. In India, growth was sluggish. Nokia was an early mcountry's first cell-phone call was made on one of its handsets -- but regulation hindered expansion.

China, Nokia not only trailed Motorola but was threatened by ascendant domestic players such as TCL and Ningbwcomers to the business that had quickly gobbled up almost half of the market with their inexpensive but well-d

dsets.

Finns "were caught off guard by the rise of the domestic vendors," says Ted Dean, managing director at BDA Chineijing consulting firm. "Suddenly, Nokia was struggling."

ight back, Giles pushed through big changes. Nokia decentralized, going from three Chinese sales offices in 200y. Instead of eight national distributors, Nokia now has 50 provincial ones.


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d since rivals were having great success with handsets designed for mainland users, Nokia introduced its own cific models. For instance, since many rural Chinese aren't familiar with the Romanized transliteration system thphones use to input Chinese for text messages, Nokia developed two phones with software that lets them write cha

h a stylus.

d Nokia invested in new computer systems that provide detailed sales data. "Tomorrow, I will be able to tell yopened today in the top 4,500 outlets," Giles boasts. "In a week's time, I will be able to tell you about 30,000 outlet

ult: Nokia sold 27.5 million handsets in China last year, triple what it sold in 2003. Now, the company is planning

nch of 3G in China, expected this year.

ce 2002, when India's cellular market took off, Nokia has drawn on its China experience to consolidate its lead. In 2mpany launched two India-specific models, which included a flashlight, dust cover, and slip-free grip (handy duringrching, sweaty summers).

kia introduced software in seven regional languages for non-Hindi speakers and added ring-tones of patriotic sonhe nationalist hymnIndia Is the Best. And the company's marketers pitched the phones through ads tailored to Ind

e early campaign showing burly truck drivers calling home on Nokia handsets.

e invested when the market was nothing," says Robert Andersson, who oversees manufacturing, sales, and mark

kia. "We have been able to harvest the fruits of that commitment in the last four years."

ce rivals

kia has also reaped the fruits of rivals' missteps. Motorola was slower in reacting to the threat from the Chinese lochad a tougher time bouncing back. "Motorola didn't change its strategy for a long time," says Chris Han, an aning at Norson Telecom Consulting.


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PAGE 23

Chinese upstarts, meanwhile, have suffered sharp reversals due to disappointing quality. In India, Motorola didn't fmarket early enough, says Pankaj Mohindroo, president of the Indian Cellular Assn., a trade group. Today its share 5% or so.

als say the time is right to eat into Nokia's lead. Samsung in the past focused solely on the middle to high end of thendia but began selling lower-cost phones last year. And on Mar. 7 the Korean company opened a new factory in G

Delhi.

orola has revamped its structure in China, expanding its sales force and strengthening its distribution network to cos. By February, Motorola had boosted its market share by several percentage points.

've done a lot of the blocking and tackling," says Michael Tatelman, Motorola's China chief. And in India, Motning to market phones costing as little as $35. Motorola Vice-President Allen Burnes calls India "pivotal" and spany will open its first factory there in 18 months. Of course, that's 18 months behind Nokia, giving the Finns ortunity to solidify their lead in Asia's Big Two.

used Mobile Marketing

Nokia Local Marketing Solution is a unique solution providing significant benefits for the service operator. It oesting and competitive alternative to marketing both owned and partnered cellular and non-cellular services. W


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tion, the mobile operator can boost usage of existing service and create new business by providing advertising sp

l business owners.

PAGE 24

RKET SHARE OF NOKIA

ia owns 79% of the GSM market share in India

ish handset major Nokia has retained the top slot in Indian GSM market with 79 per cent share, while US giant Mmore than doubled its share to seven per cent this year, according to a study.

orola has been able to significantly improve its share by to seven per cent this year from three per cent in 2005, ace latest annual TNS CellTrack 2006 study.

id the US companys gain was possibly the loss of South Korean handset maker Samsung, whose market share droper cent in 2006 from six per cent a year ago.

he CDMA market, LG has consolidated its position as the market leader with 49 per cent market share this year agcent in 2005, the study said.

le Nokia managed to retain its share in CDMA handsets, Samsung and Motorola lost market share from 17 per ccent and 12 per cent to 4 per cent respectively.

Assam


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market share of Nokia is found to be almost 75% here where as Spice has 9%, Motorola has 7%, Sony Erics

sung both have 4%, LG has 3% and others have 2%. Spice is lowering Nokia sales especially in low price segmentrival Motorola is hampering the sales somewhat by taking advantage of the lack of attractive look in Nokia.

PAGE 25

KIA IN WORLD MARKET

a is Nokias 3rdlargest market in terms of mobile phone sales whereas China and United states occupying 1 stand 2

ectively.

major markets, net sales

2006 EURm 2005 EURm 2004 EURm

China 4913 3403 2678

USA 2815 2743 3430

India 2713 2022 1369

UK 2425 2405 2269

Germany 2060 1982 1730

Russia 1518 1410 946

Italy 1394 1160 884

Spain 1139 923 768

Indonesia 1069 727 ------

Brazil 1044 614 ------


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PAGE 26

ANCIAL INFORMATIONS

ia reports Q1 2007 net sales of EUR 9.9 billion and EPS of EUR

fitability strong for the quarter - driven by a sequential increase in gross margin

NOKIA IN THE FIRST QUARTER 2007

EUR million Q1/2007* Q1/2006**Change

%

Net sales 9 856 9 507 4

Mobile Phones 5 583 5 869 -5

Multimedia 2 252 1 758 28Enterprise Solutions 326 186 75

Networks 1 697 1 699 0

Operating profit 1 272 1 367 -7

Mobile Phones 936 1 085 -14

Multimedia 424 323 31

Enterprise Solutions -38 -66

Networks 78 149 -48

Common Group Expenses -128 -124

Operating margin (%) 12.9 14.4

Mobile Phones (%) 16.8 18.5

Multimedia (%) 18.8 18.4

Enterprise Solutions (%) -11.7 -35.5

Networks (%) 4.6 8.8

Net profit 979 1 048 -7


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EPS, EUR

Basic 0.25 0.25

Diluted 0.25 0.25

PAGE 27

ST QUARTER 2007 HIGHLIGHTS

Estimated industry device volumes of 253 million units, down 13% sequentially and up 18% year.

Nokia device volumes of 91.1 million units, down 14% sequentially and up 21% year on year. Nokia estimated device market share 36%, at the same level as Q4 2006 and up from 35% in Q1 Nokia device ASP of EUR 89, at the same level as Q4 2006. Nokia gross margin of 33.1%, up sequentially from 32.4% in Q4 2006. Nokia operating margin of 13.6%, up sequentially from 13.3% in Q4 2006, excluding special item Nokia diluted EPS of EUR 0.26 excluding special items. Nokia operating cash flow of EUR 1.6 billion.

Multimedia and Enterprise Solutions net sales strong, up sequentially from Q4 2006. Key products started shipping: Nokia 6300, Nokia N95 and Nokia E65.

USTRY AND NOKIA OUTLOOK FOR THE SECOND QUARTER AND FULL YEAR 2007

Nokia expects industry mobile device volumes in the second quarter 2007 to be slightly up seque We expect Nokia's device market share in the second quarter 2007 to be approximately at the sam

sequentially. Nokia continues to expect industry mobile device volumes in 2007 to grow by up to 10% f

approximately 978 million units Nokia estimates for 2006.


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Pacific

NorthAmerica

4.8 8.4 -42.5 5.9 -19.0

Latin

America7.3 7.1 2.4 12.5 -41.8

Total 91.1 75.1 21.4 105.5 -13.7

PAGE 29

ed on Nokias preliminary market estimate, Nokia's market share for the first quarter 2007 was 36%, compared wi

he first quarter 2006 and 36% in the fourth quarter 2006. Nokia's year on year market share increase was driven prtrong gains in Asia-Pacific and Europe that more than offset a significant market share decline in North America. Y

r market share was approximately at the same level in China, Latin America and Middle East & Africa. Seque

kia's market share was approximately at the same level as in fourth quarter 2006, globally as well as in each geoa. The sequential decline in first quarter industry volumes was similar to previous years, however they believe thn an impact in the market from the excess inventory of certain of their competitors' products.

kia's average selling price in the first quarter 2007 was EUR 89, down from EUR 103 in the first quarter 2006 ane level as in the fourth quarter 2006. The lower year on year ASP in the first quarter 2007 was primarily the res

nificantly higher proportion of entry-level device sales, where the industry growth especially in the emerging markn strong and where Nokia's share has been growing. In addition, certain ageing higher end products in their portfolwed as less competitive in various markets. Sequentially, first quarter 2007 ASPs were impacted by a higher perceny-level device sales. That sequential development was offset by strong sales of our higher ASP devices, particularMultimedia business group.

iness Groups

bile Phones:First quarter 2007 net sales decreased 5% to EUR 5.6 billion, compared with EUR 5.9 billion in rter 2006. Strong overall volume growth was not enough to offset a significant ASP decline year on year, driven pra higher proportion of entry-level sales. Net sales decreased in all regions except Asia-Pacific. Net sales wernificantly in North America and to a lesser degree in Latin America, Middle East & Africa, Europe and China.

bile Phones reported operating profit in the first quarter 2007 decreased 14% to EUR 936 million, compared with Eon in the first quarter 2006, with an operating margin of 16.8% (18.5%). Reported first quarter 2007 operatinuded total charges of EUR 35 million, of which EUR 25 million was related to the restructuring of a subsidiary co

EUR 10 million was mainly related to restructuring in Customer and Market Operations. First quarter 2006 rrating profit included a EUR 14 million initial restructuring charge for the CDMA business. Operating profit for trter 2007 excluding the charges was EUR 971 million, with an operating margin of 17.4% (18.7%). The decrrating profit for the first quarter 2007, excluding the special items, was primarily caused by lower sales of highher margin devices, and an increase in sales and marketing expenses, compared to the first quarter 2006.


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PAGE 30

ltimedia:First quarter 2007 net sales increased 28% to EUR 2.3 billion, compared with EUR 1.8 billion in the first6. Net sales increased year on year in all regions except North America, where net sales continued at a lowltimedia net sales year on year growth was fastest in Latin America and China. Net sales growth was driven bumes of Nokia Nseries multimedia computers, especially the Nokia N73 and Nokia N70, combined with a stable Ayear.

ltimedia reported operating profit in the first quarter 2007 grew 31% to EUR 424 million, compared with EUR 323

he first quarter 2006, with an operating margin of 18.8% (18.4%). Reported first quarter 2007 operating pltimedia included restructuring charges of EUR 3 million. Operating profit for the first quarter 2007 excludinrges was EUR 427 million, with an operating margin of 18.7%. Operating profit growth in the first quarter 20en by strong net sales growth and effective operating cost control, compared to the first quarter 2006.

erprise Solutions:First quarter 2007 net sales increased 75% to EUR 326 million, compared with EUR 186 millioquarter 2006. Net sales increased year on year in all regions except North America and China, where net sales dec

erprise Solutions net sales more than doubled year on year in Europe, Latin America and Asia-Pacific. Net saletively impacted by strong year on year volume growth of the Nokia Eseries.

he first quarter 2007, Enterprise Solutions had a reported operating loss of EUR 38 million, compared with a r

rating loss of EUR 66 million in the first quarter 2006. The reported first quarter 2007 operating loss inructuring charges of EUR 17 million. Excluding these charges, the operating loss for the first quarter 2007 was Eion. The reported first quarter 2006 operating loss included a EUR 8 million restructuring charge. The signiroved operating performance for the first quarter 2007, excluding these charges, reflected strong net sales growctive operating cost control compared to the first quarter 2006.


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PAGE 31

2007 OPERATING HIGHLIGHTS

bile Phones

First shipments of the slim and stylish Nokia 6300. Announcement of the Nokia 6110 Navigator, an HSDPA (High Speed Downlink Packet Access) devi

GPS (Global Positioning System) and AGPS (Assisted Global Positioning System). Announcement of the Nokia 6131 NFC phone, the world's first fully integrated, commercial NFC

Field Communications) handset. It enables information sharing, service initiation, and payment and tcapability with a single tap of the device.

Expansion of Nokia's music phone offering with the Nokia 5700 XpressMusic (a 3G converged devia dedicated audio chip, iconic twist design, music player, 2 megapixel camera and video calling),

Nokia 5070 (with integrated FM radio, a VGA camera, pre-installed java games and a built in web br The enhancement of the popular L'Amour collection with the introduction of the Nokia 7373 Special

in two contemporary colors paired with signature Giambattista Valli phone accessories; and the first model in the L'Amour Collection, the Nokia 7088.

Introduction of the Nokia 3110 classic, a triband GSM phone in a robust and durable design witmegapixel camera, music player with expandable memory, and an FM stereo radio.

timedia

Product launches included the Nokia N76, Nokia N93i, Nokia N77 and Nokia N800 multimedia comincluding features such as DVB-H for mobile TV, DVD like-quality video, music players and touch

functionality. First shipments of the Nokia N95, featuring connectivity over GPS, HSDPA and WLAN. Nokia announced new games, publishers and developers for its new N-Gage mobile gaming platform

new developments will help to bring connected mobile gaming experiences to millions of Nokiadevice owners worldwide starting in September 2007.

Nokia announced cooperation with YouTube that allows people to enjoy YouTube videos on theNokia Nseries devices. Nokia also announced cooperation with Six Apart to make it easy for peupload video and photos, and update their blogs directly from their compatible Nokia Nseries deviceVox blogging service.

PAGE 32


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erprise Solutions

Second generation Nokia Eseries products - Nokia E61i, Nokia E65 and Nokia E90 Communicatorlaunched at the 3GSM World Congress in February.

The launch of Intellisync Mobile Suite 8.0, the first major update to the Intellisync platform si

Intellisync acquisition, with several major feature and performance enhancements including a poweremail experience for S60 devices.

PAGE 33COMMENDATIONS


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r completing my survey, I would like to recommend a few things to Nokia to regain its previous market share espssam. Those recommendations are discussed below:

I. Nokia should produce a basic multimedia handset (around Rs. 4000) to get the customers of Sony EK310i.

II. Nokia should provide demo sets to all of its dealers.III. There should be more advertisements in local news papers and FM radio channels about the new offersIV. Nokia should produce a MP3 handset at low segment (around Rs.3000) without camera and with at

memory of 128 mb. This will definitely increase Nokia sales in low segment tremendously.V. Nokia should provide more memory for voice recording in low price segment.

VI. Nokia should produce more handsets with fine attractive looks to fight with its arch rivals, Motor

Samsung. (Handsets like 8800, 7500 Prism, 8600 Luna, N76, N95, 6500 Classic etc.)VII. Nokia can produce a handset less than Rs.1000 or around Rs.1000. But, there may be problem with qu

it lowers the price this much. But, there is a easy solution for this problem. Let us see the exampleNokia handset model XXXX has a manufacturing cost of Rs.1400. If they sale it at Rs.1000, then thloss of Rs.400. But, this loss can be covered by taking some extra money from the customers whohandset of more than Rs.10000 or 15000. So, in this way Nokia can provide better quality in low pricits other competitors. Automatically Nokia sale will increase.

VIII. Nokia can think over about the matter of an exchange offer to regain its old customers.

PAGE 34IX. Nokia should provide better and clearer sound quality in low price segment.X. After sales service should be improved. It should be more prompt. Replacement parts should alw

available in all Nokia Cares, not only the ones in Guwahati.XI. Nokia should provide special offers for the staffs of Nokia Priority Dealer depending on the sale o

outlet.XII. Stock handsets which are having problem should be replaced to dealers quickly.


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XIII. A dealer in Nagaon gets a Nokia 1110 without battery and one gets an empty N73 pack. So packidelivering of products should be done under proper and strict vigilance.

XIV. Nokia sales has fallen in recent days because most the dealers are not willing to sale Nokia handsets are getting much profit in other companys phones. This is because of too much competition in the mNokia dealers are allowed to sell the handsets right at the dealer price. So for the sake of competition t

lessening the prices very near to the dealer price. So Nokia should give a minimum price outlinedealers such as selling price = dealer price + 3%-5%, so that the dealers can have a handsome margselling Nokia. If this can be done by the company then I think automatically dealers will sell Nokia pmore than other phones to make a good profit. This will also stabilize the market price.

XV. Most of the dealers want the price drop cover to be increased. Now-a-days, it is one week. Nokia canover this matter and it can be increased to two or three weeks if possible.

XVI. And finally, Nokia should endorse a brand ambassador. Most of the people think a bollywood cewould be appropriate for it. Otherwise in Assam, the Music edition and Xpress Music phones of Nokiaadvertised by a well-known local music celebrity e.g. Zubeen Garg. This type of advertisemendefinitely boost the sale.

XVII. Most of the people think that the Nokia Eseries phones are not getting sufficient advertisement. The co

should think over it as it is launching some high-end ultimate communicator devices like E90 in this se

PAGE 35clusion


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r my survey, I have reached the conclusion that the sale of Nokia has fallen in Assam in recent days. Previousket share for Nokia was around 85%. But, now it is almost 75%. The downfall is occurring because of some of thenes and very high competitive market. The market price is also not stable. The company has to think over this main its market share. Keeping an eye on the feedback of customers and dealers, I have also recommended a few thious pages.

PAGE 36KNOWLEDGEMENTS


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m very grateful to following persons who helped me enormously in this project. Without their assistance it

e been impossible for me to complete my work. Heartiest thanks to all of the following persons:

Mr. Amit Kundu, Nokia Sales Manager (Lower Assam) Mr. Arnab Choudhury, Nokia Sales Manager (Upper Assam) Mr. Neelav Nath Dutta, Multimedia Sales In-charge (Nokia, RDS-level)

Mr. Pankaj Sharma (Prop. Shree Marketing, Nagaon) Mr. Aparup Bordoloi, Nokia Sales Executive (Nagaon)

PAGE 37

LIOGRAPHY


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this project, I have collected knowledge and data from the following books and websites:

www.nokia.com

www.gsmarena.com

www.economictimes.com

www.india-cellular.com

www.minformation.com

Mobile Communications by Chul-Hee Kang and Jaiyung Lee

The Cellphone by Heather A. Horst and Daniel Miller

Marketing Management by Keller, Kotler, Koshy and Jha

The Businessworld

The Hindu
http://www.nokia.com/http://www.gsmarena.com/http://www.economictimes.com/http://www.india-cellular.com/http://www.minformation.com/http://www.minformation.com/http://www.india-cellular.com/http://www.economictimes.com/http://www.gsmarena.com/http://www.nokia.com/


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Documents

A Project on Marketing Strategy and Sales of Nokia in Assam