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PREFACE
Research Project is the first step into the Industry and this of vital importance
because it provides first hand practical knowledge of business environment.
The Project helps us to get acquainted with the horizon of the corporate
activities like how the company is organized, what it produces, how the
products are manufactured, how the products are marketed, what is the
Distribution channel, how the department of marketing is organized and
managed.
I got the opportunity to do the Research Project on “NOKIA MOBILE INDIA
LTD” in the field of Marketing. The title of my Project is “PRODUCT
DESIGNING & THE PROMOTION MEASURES ADOPTED BY NOKIA IN
INDIA”. In this report Firstly, I am trying to analyse Market for mobile company
& their services in demographics of Lucknow. Secondly, I have also made a
Data Base which gives complete information about different industries, it’s
products and projects. Finally there are some recommendations, which I think
if implemented definitely will be fruitful for the company.
KIRTI DIXIT
M.B.A 4th SEM
ACKNOWLEDGEMENT
I express my profound gratitude to all my faculty members. It is their
valuable efforts, inspirations and suggestions which has helped me to acquire
a great deal of confidence and enrich this type of complicated knowledge.
Their continuous inspiration and support that made my summer training a
memorable and a great learning experience. I started my project under the
guidance of him and he showed me the direction of movement to achieve my
objectives.
I am also thankful to MS.Juhi Madan,RBMI Bareilly for their able guidance
at every steps of my project report work.
I am also thankful to our parents, family members, seniors & friends for their
support in completing my project.
Last but not the least, my heart also feels to thank and offer a grateful
appreciation to every one whom I could not mention here but have directly or
indirectly supported and helped me to face this challenge and complete this
project right in time.
KIRTI DIXIT
M.B.A 4th SEM
CANDIDATE’S DECLARATION
2
I do hereby declare that the piece of desertion research report entitled (A
STUDY OF THE PRODUCT DESIGNING AND THE PROMOTION
MEASURES ADOPTED BY NOKIA IN INDIA) has been prepared by me.
Under the guidance and supervision of, Under Guidance of Mis Juhi
Madan,RBMI Bareilly fulfillment for the requirement of the Degree in Master
of B,usiness Administration under U.P. Technical University during the
session 2010-2011.To the best of my knowledge and believe, this is my own
work and has not Been submitted any where earlier for any other degree.
KIRTI DIXIT
M.B.A 4th SEM
3
TABLE OF CONTENTS
S.NO TOPICE PAGE NO
1. EXECUTIVE SUMMERY 1
2. INDUSTRY PROFILE 7
3. COMPANY PROFILE 23
4. GROWTH OF MOBILE 51
5. FUTURE OF MOBILE 54
6. PRODUCT PROFILE 60
7. OBEJICTIVE OF THE STUDY 63
8. MARKETING RESARCH 68
9. RESEARCH METHODLOGY 72
10. FINDING & ANALYSIS 76
11. SUGESTIONS & RECOMMENDATIONS 84
12. CONLUSION 87
13. BIBILOGAPHY 89
14. ANNEXURE 91
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5
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INDUSTRY PROFILE
The telecom network in India is the fifth largest network in the world meeting
up with global standards. Presently, the Indian telecom industry is currently
slated to an estimated contribution of nearly 1% to India’s GDP.
Introduction
The Indian Telecommunications network with 110.01 million connections is
the fifth largest in the world and the second largest among the emerging
economies of Asia. Today, it is the fastest growing market in the world and
represents unique opportunities for U.S. companies in the stagnant global
scenario. The total subscriber base, which has grown by 40% in 2005, is
expected to reach 250 million in 2007.
According to Broadband Policy 2004, Government of India aims at 9 million
broadband connections and 18 million internet connections by 2007. The
wireless subscriber base has jumped from 33.69 million in 2004 to 62.57
million in FY 2004-2005. In the last 3 years, two out of every three new
telephone subscribers were wireless subscribers. Consequently, wireless now
accounts for 54.6% of the total telephone subscriber base, as compared to
only 40% in 2003. Wireless subscriber growth is expected to bypass 2.5
million new subscribers per month by 2007.
The wireless technologies currently in use are Global System for Mobile
Communications (GSM) and Code Division Multiple Access (CDMA). There
are primarily 9 GSM and 5 CDMA operators
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Providing mobile services in 19 telecom circles and 4 metro cities, covering
2000 towns across the country.
Evolution of the industry-Important Milestones
History of Indian Telecommunications
1851 First operational land lines were laid by the Government near Calcutta
(seat of British Power).
1881 Telephone service introduced in India.
1883 Merger with the postal system.
1923 Formation of Indian Radio Telegraph Company (IRT).
1932 Merger of ETC & IRT into the Indian Radio and Cable Communication
Company (IRCC).
1947 Nationalization of all foreign telecommunication companies to form the
Posts, Telephone and Telegraph (PTT), a monopoly run by the government’s
Ministry of Communication.
1985 Department of Telecommunications (DOT) Established, an exclusive
provider of Domestic and long distance service that would its own regulator
(separate from postal system).
1986 conversion of DOT into two wholly government – owned companies:
8
The Videsh Sanchar Nigam Limited (VSNL) for International
telecommunications and Mahan agar Telephone Nigam Limited (MTNL) for
services in Metropolitan areas.
1997 Telecom Regulatory Authority of India created.
Cellular Services are launched in India. New National Telecom policy is
adopted.
2000 DOT becomes a corporation, BSNL.
.
9
MAJOR PLAYERS IN THE MARKET
There are three types of players in telecom services:
• -State owned companies (BSNL and MTNL)
• -Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)
• -Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures,
Escotel, Idea Cellular, BPL Mobile, Spice Communications)
BSNL:
On October 1, 2000 the Department of Telecom Operations, Government of
India became a corporation and was renamed Bharat Sanchar Nigam Limited
(BSNL). BSNL is now India’s leading Telecommunications Company and the
largest public sector undertaking. It has a network of over 45 million lines
covering 5000 towns with over 35 million telephone connections. The state-
controlled BSNL operates basic, cellular (GSM and CDMA) mobile, Internet
10
and long distance services throughout India (except Delhi and Mumbai). BSNL
will be expanding the network in line with the Tenth Five-Year Plan (1992-97).
The aim is to provide a telephone density of 9.9 per hundred by March 2007.
BSNL, which became the third operator of GSM mobile services in most
circles, is now planning to Bharti to become the largest GSM operator in the
country. BSNL is also the largest operator in the Internet market, with a share
of 21 per cent of the entire subscriber base
BHARTI:
Established in 1985, Bharti has been a pioneering force in the telecom sector
with many firsts and innovations to its credit, ranging from being the first
mobile service in Delhi, first private basic telephone service provider in the
country, first Indian company to provide comprehensive telecom services
outside India in Seychelles and first private sector service provider to launch
National Long Distance Services in India.
Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting
investments in telecommunications services. Its subsidiaries operate telecom
services across India.
Bharti’s operations are broadly handled by two companies:
The Mobility group, which handles the mobile services in 16 circles out of a
total 23 circles across the country; and the Infotel group, which handles the
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NLD, ILD, fixed line, broadband, data, and satellite-based services. Together
they have so far deployed around 23,000 km of optical fiber
cables across the country, coupled with approximately 1,500 nodes, and
presence in around 200 locations. The group has a total customer base of
6.45 million, of which 5.86 million are mobile
and 588,000 fixed line customers, as of January 31, 2004. In mobile, Bharti’s
footprint extends across 15 circles. Bharti Tele-Ventures' strategic objective is
“to capitalize on the growth opportunities the company believes are available
in the Indian telecommunications market and consolidate its position to be the
leading integrated telecommunications services provider in key markets in
India, with a focus on providing mobile services”.
MTNL:
MTNL was set up on 1st April 1986 by the Government of India to upgrade the
quality of telecom services, expand the telecom network, and introduce new
services and to raise revenue for telecom development needs of India’s key
metros – Delhi, the political capital, and Mumbai, the business capital. In the
past 17 years, the company has taken rapid strides to emerge as India’s
leading and one of Asia’s largest telecom operating companies. The company
12
has also been in the forefront of technology induction by converting 100% of
its telephone exchange network into the state-of-the-art digital mode. The
Govt. of India currently holds 56.25% stake in the company. In the year 2003-
04, the company's focus would be not only consolidating the gains but also to
focus on new
areas of enterprise such as joint ventures for projects outside India, entering
into national long distance operation, widening the cellular and CDMA-based
WLL customer base, setting up internet and allied services on an all India
basis.
MTNL has over 5 million subscribers and 329,374 mobile subscribers. While
the market for fixed wire line phones is stagnating, MTNL faces intense
competition from the private players—Bharti, Hutchison and Idea Cellular,
Reliance Infocomm—in mobile services. MTNL recorded sales of Rs. 60.2
billion ($1.38 billion) in the year 2002-03, a decline of 5.8 per cent over the
previous year’s annual turnover of Rs. 63.92 billion.
RELIANCE INFOCOMM:
Reliance is a $16 billion integrated oil exploration to refinery to power and
textiles conglomerate (Source: http://www.ril.com/newsitem2.html). It is also
an integrated telecom service provider with licenses for mobile, fixed,
domestic long distance and international services. Reliance Infocomm offers a
complete range of telecom services, covering mobile and fixed line telephony
13
including broadband, national and international long distance services, data
services and a wide range of value added services and applications. Reliance
India Mobile, the first of Infocomm initiatives was launched on December 28,
2002. This marked the beginning of Reliance's vision of ushering in a digital
revolution in India by becoming a major catalyst in improving quality of life and
changing
the face of India. Reliance Infocomm plans to extend its efforts beyond the
traditional value chain to develop and deploy telecom solutions for India's
farmers, businesses, hospitals, government and public sector organizations.
Until recently, Reliance was permitted to provide only “limited mobility”
services through its basic services license. However, it has now acquired a
unified access license for 18 circles that permits it to provide the full range of
mobile services. It has rolled out its CDMA mobile network and enrolled more
than 6 million subscribers in one year to become the country’s largest mobile
operator. It now wants to increase its market share and has recently launched
pre-paid services. Having captured the voice market, it intends to attack the
broadband market.
14
TATA TELESERVICES:
Tata Teleservices is a part of the $12 billion Tata Group, which has 93
companies, over 200,000 employees and more than 2.3 million shareholders.
Tata Teleservices provides basic (fixed line services), using CDMA technology
in six circles:
Maharashtra (including Mumbai), New Delhi, Andhra Pradesh, Tamil Nadu,
Gujarat, and Karnataka. It has over 800,000 subscribers. It has now migrated
to unified access licenses, by paying a Rs. 5.45 billion ($120 million) fee,
which enables it to provide fully mobile services as well.
The company is also expanding its footprint, and has paid Rs. 4.17 billion ($90
million) to Dot for 11 new licenses under the IUC (interconnect usage charges)
regime. The new licenses, coupled with the six circles in which it already
operates, virtually gives the CDMA mobile operator a national footprint that is
almost on par with BSNL and Reliance Infocomm. The company hopes to
start off services in these 11 new circles by August 2004. These circles
include Bihar, Haryana, Himachal Pradesh, Kerala, Kolkata, Orissa, Punjab,
Rajasthan, Uttar Pradesh (East) & West and West Bengal.
VSNL:
On April 1, 1986, the Videsh Sanchar Nigam Limited (VSNL) - a wholly
Government owned corporation - was born as successor to OCS. The
company operates a network of earth stations, switches, submarine cable
15
systems, and value added service nodes to provide a range of basic and
value added services and has a dedicated work force of about 2000
employees. VSNL's main gateway centers are located at Mumbai, New Delhi,
Kolkata and Chennai. The international telecommunication circuits are derived
via Intelsat and Inmarsat satellites and wide band submarine cable systems
e.g. FLAG, SEA-ME-WE-2 and SEA-ME-WE-3.
The company's ADRs are listed on the New York Stock Exchange and its
shares are listed on major Stock Exchanges in India. The Indian Government
owns approximately 26 per cent equity,
M/s Pantone Finevest Limited as investing vehicle of Tata Group owns 45 per
cent equity and the overseas holding (inclusive of FIIs, ADRs, and Foreign
Banks) is approximately 13 per cent and the rest is owned by Indian
institutions and the public. The company provides international and Internet
services as well as a host of value-added services. Its revenues have declined
from Rs. 70.89 billion ($1.62 billion) in 2001-02 to Rs. 48.12 billion ($1.1
billion) in 2002-03, with voice revenues being the mainstay. To reverse the
falling revenue trend, VSNL has also started offering domestic long distance
services and is launching broadband services. For this, the company is
investing in Tata Telservices and is likely to acquire Tata Broadband.
16
HUTCH:
Hutch’s presence in India dates back to late 1992, when they worked with
local partners to establish a company licensed to provide mobile
telecommunications services in Mumbai. Commercial operations began in
November 1995. Between 2000 and March 2004, Hutch acquired further
operator equity interests or operating licences. With the completion of the
acquisition of BPL Mobile Cellular Limited in January 2006, it now provides
mobile services in 16 of the 23 defined licence areas across the country.
Hutch India has benefited from rapid and profitable growth in recent years. it
had over 17.5 million customers by the end of June 2006.
IDEA:
Indian regional operator IDEA Cellular Ltd. has a new ownership structure and
grand designs to become a national player, but in doing so is likely to become
a thorn in the side of Reliance Communications Ltd.
IDEA operates in eight telecom “circles,” or regions, in Western India, and has
received additional GSM licenses to expand its network into three circles in
Eastern India -- the first phase of a major expansion plan that it intends to fund
through an IPO, according to parent company Aditya Birla Group.
17
COMPANY MARKET SHARES:
Company Million Subs (Nov 2003) % share
BSNL 40.3 58.8
Reliance 6.1 8.9
Bharti 5.7 8.3
MTNL 4.9 7.2
Hutchison 2.9 4.2
Idea Cellular 2.1 3.0
BPL 1.4 2.1
Tata Teleservices 1.3 1.9
Spice 1.0 1.4
Escotel 0.8 1.1
Aircel 0.9 1.4
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MAJOUR MARKET TRENDS:
The telecoms trends in India will have a great impact on everything from the
humble PC, internet, broadband (both wireless and fixed), and cable, handset
features, talking SMS, IPTV, soft switches, and managed services to the local
manufacturing and supply chain. This report discusses key trends in the
Indian telecom industry, their drivers and the major impacts of such trends
affecting mobile operators, infrastructure and handset vendors.
Higher acceptance for wireless services:
Indian customers are embracing mobile technology in a big way (an average
of four million subscribers added every month for the past six months itself).
They prefer wireless services compared to wire-line services, which is evident
from the fact that while the wireless subscriber base has increased at 75
percent CAGR from 2001 to 2006, the wire-line subscriber base growth rate is
negligible during the same period.
In fact, many customers are returning their wire-line phones to their service
providers as mobile provides a more attractive and competitive solution. The
main drivers for this trend are quick service delivery for mobile connections,
affordable pricing plans in the form of pre-paid cards and increased
purchasing power among the 18 to 40 years age group as well as sizeable
middle class – a prime market for this service.
19
Some of the positive impacts of this trend are as follows. According to a study,
18 percent of mobile users are willing to change their handsets every year to
newer models with more features, which is good news for the handset
vendors. The other impact is that while the operators have only limited options
to generate additional revenues through value-added services from wire-line
services, the mobile operators have numerous options to generate non-voice
revenues from their customers. Some examples of value-added services are
ring tones download, colored ring back tones, talking SMS, mobisodes (a brief
video programmers episode designed for mobile phone viewing) etc.
Moreover, there exists great opportunity for content developers to develop
applications suitable for mobile users like mobile gaming, location based
services etc. On the negative side, there is an increased threat of virus –
spread through mobile data connections and Bluetooth technology – in mobile
phones, making them unusable at times. This is good news for anti-virus
solution providers, who will gain from this trend.
Constraints:
Slow pace of the reform process. It would be difficult to make in-roads into the
semi-rural and rural areas because of the lack of infrastructure. The service
providers have to incur a huge initial fixed cost to make inroads into this
market. Achieving break-even under these circumstances may prove to be
difficult.
20
The sector requires players with huge financial resources due to the above
mentioned constraint. Upfront entry fees and bank guarantees represent a
sizeable share of initial investments. While the criteria are important, it tends
to support the existing big and older players. Financing these requirements
require a little more liberal approach from the policy side. Problem of limited
spectrum availability and the issue of interconnection charges between the
private and state operators.
21
Indian Telecommunication story: From 10 million to 150 million mobile
subscribers in 5 years.
Yes, that’s true. Indian telecommunication Industry is one of the fastest
growing telecom market in the world. The mobile sector has grown from
around 10 million subscribers in 2002 to reach 150 million by early 2007
registering an average growth of over 90% yoy. The two major reasons
that have fuelled this growth are low tariffs coupled with falling handset prices.
Surprisingly, CDMA market has increased it market share up to 30% thanks to
Reliance Communication. However, across the globe, CDMA has been
loosing out numbers to popular GSM technology, contrary to the scenario in
India.
The other reason that has tremendously helped the telecom Industry is the
regulatory changes and reforms that have been pushed for last 10 years by
successive Indian governments. According to Telecom Regulatory Authority of
India (TRAI) the rate of market expansion would increase with further
regulatory and structural reforms.
Even though the fixed line market share has been dropping consistently, the
overall (fixed and mobile) subscriber has risen to more than 200 million
by first quarter of 2009.
The telecom reforms have allowed the foreign telecommunication companies
to enter Indian market which has still got huge potential. International telecom
companies like Vodafone have made entry into Indian market in a big way.
22
23
COMPANY PROFILE
Nokia has played a pioneering role in the growth of cellular technology in
India, starting with the first-ever cellular call a decade ago, made on a Nokia
mobile phone over a Nokia-deployed network.
Nokia started its India operations in 1995, and presently operates out of
offices in New Delhi, Mumbai, Kolkata, Jaipur, Lucknow, Chennai, Bangalore,
Hyderabad, Pune and Ahmadabad. The Indian operations comprise of the
handsets business; R&D facilities in Bangalore, Hyderabad and Mumbai; a
manufacturing plant in Chennai and a Design Studio in Bangalore.
Over the years, the company has grown manifold with its manpower strength
increasing from 450 people in the year 2004 to over 15000 employees in
March 2008 (including Nokia Siemens Networks). Today, India holds the
distinction of being the second largest market for the company globally.
DEVICES BUSINESS
Nokia has established itself as the market and brand leader in the mobile
devices market in India. The company has built a diverse product portfolio to
meet the needs of different consumer segments and therefore offers devices
across five categories i.e. Entry, Live, Connect, Explore and Achieve.
24
These include products that cater to first time subscribers to advanced
business devices and high performance multimedia devices for imaging,
music and gaming.
Nokia has been working closely with operators in India to increase the
geographical coverage and lower the total cost of ownership for consumers.
Today, Nokia has one of the largest distribution network with presence across
1, 30,000 outlets. In addition, the company also has Nokia Priority Dealers
across the country and Nokia ‘Concept stores’ in Bangalore, Delhi, Jaipur,
Hyderabad, Chandigarh, Ludhiana, Chennai, Indore and Mumbai to provide
customers a complete mobile experience.
SERVICES BUSINESS
With the global launch of Ovi, the company's Internet services brand name,
Nokia is renewing itself to be at the forefront of the convergence of internet
and mobility. From being a product centric company, Nokia is now focusing to
become solutions centric. The strategic shift is built on Nokia’s bid to retain
consumers and empower Nokia device owners to realize the full potential of
the Internet. Nokia will build a suite of Internet based services like Nokia
Maps, the Nokia Music Store and Nokia N-Gage around its Ovi brand.
25
INFRASTRUCTURE BUSINESS
Nokia Siemens Networks is a leading global enabler of communications
services. The company provides a complete, well-balanced product portfolio
of mobile and fixed network infrastructure solutions and addresses the
growing demand for services with 20,000 service professionals worldwide. Its
operations in India include Sales & Marketing, Research & Development,
Manufacturing and Global Networks Solutions Centre. Headquartered in
Gorgon, Nokia Siemens Networks has 47 offices and presence in over 170
locations across the country.
R & D CENTERS
Nokia has three Research & Development centers in India, based in
Hyderabad, Bangalore and Mumbai. These R&D hubs are staffed by
engineers who are working on next-generation packet-switched mobile
technologies and communications solutions to enhance corporate productivity.
The Center in Bangalore, the biggest R&D site in the country comprises S60
Software Organization, Common Technologies, and Next Generation now
called Maemo Software, Productization and Software & Services.
26
DESIGN STUDIO
Nokia has set up its first Design Studio in Bangalore in partnership with Srishti
School of Art, Design and Technology. The first of its kind, the design studio
will give Nokia designers and India’s talented youth the opportunity to work
together on new design ideas for India and the global markets.
MANUFACTURING IN INDIA
Nokia has set up its mobile device manufacturing facility in Chennai, India to
meet the burgeoning demand for mobile devices in the country. The
manufacturing facility is operational with an investment of USD 210 million and
currently employs 8000 people. Nokia has recently announced fresh
investments to the tune of US $ 75 million towards its manufacturing plant in
Sriperumbudur, Chennai for the year 2008.
SOME FIRSTS FOR NOKIA IN INDIA
1995 – First mobile phone call made in India on a Nokia phone on a Nokia
network
1998 - Saare Jahaan Se Acchha, first Indian ringtone in a Nokia 5110
2000 - First phone with Hindi menu (Nokia 3210)
2002 - First Camera phone (Nokia 7650)
2003 - First Made for India phone, Nokia 1100
27
2004 - Saral Mobile Sandesh, Hindi SMS on a wide range of Nokia phones
2004 - First Wi-fi Phone- Nokia Communicator (N9500)
2005 – Local UI in additional local language
2006 – Nokia manufacturing plant in Chennai
2007 – First vernacular news portal
SOME ACHIEVEMENTS FOR NOKIA
Ranked No 1 Most Trusted Brand Survey by Brand Equity, 2008
Ranked the No 1. MNC in India by Business world, India’s leading
business weekly, 2006
Ranked as the No. 1 telecommunications equipment vendor in the
country by Voice & Data for five consecutive years –2008, 2007,
2006,2005 and 2004
Ranked as the 9th most powerful brand by Millward Brown’s Brands
2008
Ranked world’s 4th most valuable brand by Interbrand, 2007
Ranked Asia’s most trusted brand by the Media-Synovate, 2006
28
COMPANY VISION
Project Aware isn’t just about tackling the big social and environmental issues
of the day. It’s also about making sure that we take a duty of care and do the
best for our:
People
Treatment and welfare of our current and future
Partners
Our ethics regarding how we choose our suppliers and how we work with
them
Customers
Being the consumers champion, thinking about the inclusivity of our
products and services
Communities
Using time, resource and business expertise to support communities
around the world
Environment
Minimizing the environmental impact of our operations to address a long-
term, sustainable future
Project Aware isn’t a policy on a shelf. We want it to be lived and breathed
by every member of staff so that we know Nokia companies across the world
29
are constantly striving to meet and exceed their responsibilities as good
corporate citizens.
Project Aware isn’t a separate head office function since we strongly believe
that responsible business practice can only be truly achieved through its
integration into every area and level of the business.
The first Nokia century began with Fredrik Ides tam’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 Ides tam establishes a paper mill at the Tammerkoski Rapids in south-
western Finland, where the Nokia story begins.
1898: Finnish Rubber Works founded
Arvid Wickström founds Finnish Rubber Works, which will later become
Nokia's rubber business.
30
1912: Finnish Cable Works founded
Eduard Polón 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.
31
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.
1981: The mobile era begins
Nordic Mobile Telephone (NMT), the first international mobile phone network,
is built.
32
1982: Nokia makes its first digital telephone switch
The Nokia DX200, the company’s 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 world’s first GSM call.
Nokia’s story continues with 3G, mobile multiplayer gaming, multimedia
devices and a look to the future...
33
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.
2005: The Nokia Series is born
Nokia introduces the next generation of multimedia devices, the Nokia Series.
2005: The billionth Nokia phone is sold
Nokia sells its billionth phone – a Nokia 1100 – in Nigeria. Global mobile
phone subscriptions pass 2 billion.
34
2006: A new President and CEO – Nokia today
Olli-Pekka Kallasvuo becomes Nokia’s President and CEO; Jorma Ollila
becomes Chairman of Nokia’s 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.
35
BOARD OF MEMBER
Audit Committee
The Audit Committee consists of a minimum of three members of the Board
who meet all applicable independence, financial literacy and other
requirements of Finnish law and the rules of the stock exchanges where Nokia
shares are listed, including the Helsinki Stock Exchange and the New York
Stock Exchange. Since May 8, 2008, the Committee consists of the following
four members of the Board: Georg Ehrnrooth (Chair), Lalita D. Gupte, Risto
Siilasmaa and Keijo Suila.
The Audit Committee is established by the Board primarily for the purpose of
overseeing the accounting and financial reporting processes of the company
and audits of the financial statements of the company. The Committee is
responsible for assisting the Board’s oversight of (1) the quality and integrity of
the company’s financial statements and related disclosure, (2) the external
auditor’s qualifications and independence, (3) the performance of the external
auditor subject to the requirements of Finnish law, (4) the performance of the
company’s internal controls and risk management and assurance function, (5)
the performance of the internal audit function, and (6) the company’s
compliance with legal and regulatory requirements. The Committee also
maintains procedures for the receipt, retention and treatment of complaints
received by the company regarding accounting, internal controls, or auditing
matters and for the confidential, anonymous submission by employees of the
company of concerns regarding accounting or auditing matters.
36
Under Finnish law, Nokia’s external auditor is elected by Nokia’s shareholders
by a simple majority vote at the Annual General Meeting for one fiscal year at
a time. The Committee makes a proposal to the shareholders in respect of the
appointment of the external auditor based upon its evaluation of the
qualifications and independence of the auditor to be proposed for election or
re-election. Also under Finnish law, the fees of the external auditor are
approved by Nokia’s shareholders by a simple majority vote at the Annual
General Meeting. The Committee makes a proposal to the shareholders in
respect of the fees of the external auditor, and approves the external auditor’s
annual audit fees under the guidance given by the shareholders at the Annual
General Meeting.
The Committee meets at least four times a year based upon a schedule
established at the first meeting following the appointment of the Committee.
The Committee meets separately with the representatives of Nokia’s
management, head of the internal audit function, and the external auditor in
connection with each regularly scheduled meeting. The head of the internal
audit function has at all times direct access to the Audit Committee, without
involvement of management.
The Audit Committee convened seven times in 2007. One of the meetings
was held through technical equipment.
37
THE PERSONNEL COMMITTEE
The Personnel Committee consists of a minimum of three members of the
Board who meet all applicable independence requirements of Finnish law and
the rules of the stock exchanges where Nokia shares are listed, including the
Helsinki Stock Exchange and the New York Stock Exchange. Since May 8,
2008, the Personnel Committee consists of the following members of the
Board: Per Carlson (Chair), Henning Kagermann and Marjorie Scardino.
The primary purpose of the Personnel Committee is to oversee the personnel
policies and practices of the company. It assists the Board in discharging its
responsibilities relating to all compensation, including equity compensation, of
the company’s executives and the terms of employment of the same. The
Committee has overall responsibility for evaluating, resolving and making
recommendations to the Board regarding (1) compensation of the company’s
top executives and their employment conditions, (2) all equity-based plans, (3)
incentive compensation plans, policies and programs of the company affecting
executives and (4) other significant incentive plans. The Committee is
responsible for overseeing compensation philosophy and principles and
ensuring the above compensation programs are performance-based, properly
motivate management, support overall corporate strategies and are aligned
with shareholders’ interests. The Committee is responsible for the review of
senior management development and succession plans.
The Personnel Committee convened three times in 2007.
38
The Corporate Governance and Nomination Committee
The Corporate Governance and Nomination Committee consists of three to
five members of the Board who meet all applicable independence
requirements of Finnish law and the rules of the stock exchanges where Nokia
shares are listed, including the Helsinki Stock Exchange and the New York
Stock Exchange. Since May 8, 2008, the Corporate Governance and
Nomination Committee consists of the following three members of the Board:
Marjorie Scardino (Chair), Georg Ehrnrooth and Per Carlson.
The Corporate Governance and Nomination Committee’s purpose is (1) to
prepare the proposals for the general meetings in respect of the composition
of the Board and the director remuneration to be approved by the
shareholders, and (2) to monitor issues and practices related to corporate
governance and to propose necessary actions in respect thereof.
The Committee fulfills its responsibilities by (i) actively identifying individuals
qualified to become members of the Board, (ii) recommending to the
shareholders the director nominees for election at the Annual General
Meetings, (iii) monitoring significant developments in the law and practice of
corporate governance and of the duties and responsibilities of directors of
public companies, (iv) assisting the Board and each committee of the Board in
its annual performance self-evaluations, including establishing criteria to be
used in connection with such evaluations, and
39
(v) developing and recommending to the Board and administering Nokia’s
Corporate Governance Guidelines.
The Corporate Governance and Nomination Committee convened four times
in 2007. One of the meetings was held through technical equipment.
April 2007
Our articles of association provide for a Group Executive Board, which is
responsible for managing the operations of Nokia. The Chairman and the
members of the Group Executive Board are appointed by the Board of
Directors. Only the Chairman of the Group Executive Board can be a member
of both the Board of Directors and the Group Executive Board. The current
members of our Group Executive Board are set forth below.
Chairman
Olli-Pekka Kallasvuo
President and CEO of Nokia Corporation
Esko Aho
Executive Vice President, Corporate Relations and Responsibility
Robert Andersson
Executive Vice President, Devices Finance, Strategy and Sourcing
Simon Beresford-Wylie
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Chief Executive Officer, Nokia Siemens Networks
Timo Ihamuotila
Executive Vice President, Sales
Mary T. McDowell
Executive Vice President, Chief Development Officer
Hallstein Moerk
Executive Vice President, Human Resources
Tero Ojanperä
Executive Vice President, Services
Niklas Savander
Executive Vice President, Services
Richard A. Simonson
Executive Vice President, Chief Financial Officer
Anssi Vanjoki
Executive Vice President, Markets
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SUCCESS MANTRA OF NOKIA
At Nokia Mobile India, we want to work hard and play even harder –so the
party never ends! more than any other element, fun is the secret of Nokia
success but we also take our work pretty seriously. Well, you have to when we
have got customers to take care of.
Of course, at Nokia Mobile, we are always going to be around for you. If you
need something, give us a shout.
You have the right to:
Be seen and heard
Ask questions
Share ideas
Be as unique as you are
Hear the words ‘thank you’
An unforgettable party
A balanced life
Learn and develop your career
Be treated with respect
Give and receive feedback
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GROWTH OF MOBILE
16 February 2002
India's fast-growing mobile phone industry kept up its pace of heady growth in
January with subscriber base jumping nearly 75 percent over the same month
last year, data released by an industry body showed.
Figures from the Cellular Operators Association of India showed that the
industry had 5.725 million subscribers, up from 3.27 million at the end of
January 2001 and 5.48 million subscribers at the end of 2001.
The data showed that the industry added 246,281 users in January, led by the
four main city markets of Bombay, New Delhi, Madras and Calcutta, which
together added 93,070 customers.
This was three percent less than the number of customers added in the
previous month, but up 48 percent over January 2001 levels.
Among firms which provide services in these four cities, New Delhi operator
Bharti Cellular, a unit of the soon-to-be-listed Bharti Tele-Ventures, recorded
the highest increase of nearly 31,000
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Customers during the month. COAI said the country's telecom market with the
lowest subscriber potential - called "C" circles - grew the fastest, but on a
much lower subscriber base.
The Indian government classifies the country's telecoms market into "metro"
and "A", "B" and "C" circles or zones, based on subscriber potential.
According to COAI data, the subscriber base in "C" circles leapt 99 percent
while in the lucrative "metro" market, it grew 81 percent.
The subscriber base in "A" circles grew 87 percent while the "B" circle grew
nearly 49 percent.
At the end of January, metro circles had 2.25 million subscribers, "A" circles
1.96 million, "B" circles 1.3 million and "C" circles 200,656 subscribers, the
data showed.
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47
FUTURE OF MOBILE
As per the latest reports, number of mobile subscribers in India has crossed
the 250 million mark. By April 2009, India is projected to become the second
largest wireless market in the world.
So, is it time to pop that bottle of champagne and celebrate?
Definitely. Second largest wireless market in the world -WOW!!! That’s indeed
an incredibly mind blowing statistic.
But the celebration will probably be short-lived.
Why?
Because as the graph below shows, even though we are well on way to
become the world’s second largest mobile market, our average ARPU
remains one of the lowest in the world.
As per the latest performance reports from TRAI, all India blended ARPU for
GSM at the end of the latest quarter was Rs 261 while that for CDMA was Rs.
176.
If you look at the stats over the past 9 months, they appear even bleaker.
Over the past 9 months, ARPU has dropped 17.41% for GSM while it has
dropped 10.20% for CDMA. Minutes of Use (MOU) per subscriber has
increased by a measly 2.2% over the past 9 months for GSM players while it
dropped by 11.56% for CDMA players.
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So, will 3G be the saving grace?
Globally, operators have yielded huge revenue gains from 3G rollout. Almost
all have seen an uptick in data usage and in several cases (KDDI, DoCoMo, 3
UK, O2 UK etc.), data services are contributing more than 30% to the overall
ARPU.
Will a 3G rollout in India exhibit similar behavior? I’d definitely like to believe
so.
But there are a number of challenges for 3G to be successful in India:
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Clear revenue sharing guidelines between operator and content
producers. Currently, operators get a 60% chunk of the revenue, while
the content owners get about 25% and 15% goes to the copyright
owner. This breakup seems to unfairly skew in favor of the operators.
Seems like some progress is already happening on this front.
High percentage of prepaid customers. About 90% of all GSM & CDMA
subscribers in India are prepaid customers. Prepaid customers are low
usage customers and contribute only 25-30% ARPU’s as compared to
the post-paid segment (for GSM, post-paid customers contributed Rs
628 in ARPU while pre-paid customers contributed only Rs 219. for
CDMA, post-paid customers contributed Rs 499 in ARPU while pre-
paid customers contributed only Rs. 140). As mentioned earlier, the
introduction of number portability will further worsen the attrition
scenario, since it’ll make easy for users to change operators and keep
their same number. Operators will have to devise means and offer
plans to retain subscribers and also convert some of the pre-paid
customers to post-paid ones.
More choices for affordable, 3G capable handsets. While there exists a
subset of subscribers who would pay more for a premium phone,
affordability would be an issue for quite large section of the subscriber
base. Currently, only 5% of all handsets in India are 3G capable.
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Copyright and piracy issues need to be addressed. The proposed
amendments to the Indian IT Act will most likely take care of this point.
Getting users out of the vice like grip of SMS will be a challenging task
Inspite of all the hurdles, the challenges seem puny as compared to the
benefits that India stands to gain from the 3G deployment. Rollout of 3G will
give the much needed bandwidth that all
Stakeholders are hoping for. Without 3G (read high speed network), the
clichéd term “Mobile will be the Internet platform in India” will never become a
reality.
Operators like Bharti Airtel seem to be raring to go - they’ve successfully
tested 3G services in Delhi, Mumbai and Bangalore and are waiting for the
spectrum to be allocated. Mobile users, of course, can hardly wait for 3G to go
live in India.
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53
PRODUCT PROFILE
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55
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OBJECTIVE OF THE STUDY
The objective of study in Nokia India Limited.
1. To study the availability of the product in dealers in the market.
2. To study the tastiest product in the market of mobile.
3. To study the distribution channel of the nokia.
4. To study the promotion backup of product.
5. To study the satisfactions level of product.
6. To take suggestion from dealers which help in increasing sale value.
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GRAPHICAL REPRESENTATION OF CUSTOMER’S RESPONSES
DURING CANOPY ACTIVITY:
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59
MARKETING RESEARCH
Market research and marketing research are often confused. ‘Market’
research is simply research into a specific market; it is a very narrow concept.
‘Marketing’ research is much broader. It not only includes ‘market’ research
but also areas such as research into new products or modes of distribution
such as via the Internet. Here are a couple of definitions.
Marketing research is the function that links the consumer, costumer, and
public to the marketer through information – information used to identify and
define marketing opportunities and problems; generate, refine, and evaluate
marketing actions; monitor marketing performance; and improve
understanding of marketing as a process. Marketing research specifies the
information required to address these issues, design the methods for
collecting information, manages and implements the data collection process,
analyzes , and communicates the findings and implication.
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RESEARCH PROCESS
Define research objective
Intensive literature Survey
Research Design
Collection of Data
Analysis of Data
Report Writing
Research Design: data was collected using a descriptive cross sectional
research design.
Collection of Data:
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1. Secondary Data:
It is information, which has been already collected for other purpose and is
readily available in some form. Its advantage is that it is readily available and
cheap while its disadvantage is that the data may be irrelevant.
2. Primary Data:
It is the data collected first hand relating to specific queries& problem. Its main
advantage is that the information it’s up to date. On the other it is expensive
and time consuming.
Source of Collecting Secondary data
Internal Process- responded selected from dealers provided by the company.
Source of Collecting Primary data :-
The primary data is the collected using questionnaires. Face to face
interviewing using structured questionnaires.
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63
RESEARCH METHODOLOGY
To achieve the objective of project there was some information which was to
be gathered and accordingly some decision had to be taken. This project tries
to be growth of E.V.D. of Nokia Mobiles. For this purpose a descriptive
research design was used which would ascertain magnitudes.
Customer Satisfaction is the crux of the success of any company. To achieve
success, the foremost thing is to be in pace with the customer needs. Clear,
consistent and systematic improvement is necessary to demonstrate that
customer satisfaction is a strategic Business objective.
Continuous improvement implies that Business philosophies must change to
meet ever- increasing expectations of the customers, and no doubt it is a
challenging job.
To find out new customer, new market continuously for it’s products and
services is also a very important and critical phenomena for the success of
any small, medium size or large company.
Last but not the least one phenomena is also have a very big role in the
success of any organization and that is to keep continuous eye on it’s
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competitors and to know their strengths and weaknesses and plan in such a
manner to get competitive edge over it’s competitors.
Hence, a research should be a step towards the awareness of the expanding
needs of the customers and thereby to meet them and to find out new
potential and prospects and to observe its
competitors. Just as many dissatisfied customers do not register formal
complaints, satisfied customers may not provide the feedback necessary to
understand as to why the satisfaction has occurred. Hence, a detailed
research is required to know as to what is lacking in the system and what can
be done thereof.
A recent study of the corporate world has clearly established the fact that only
such of those corporations which have given their customers maximum value
for their money, have survived and further, only such of those companies that
have gone beyond the stage of satisfying the customers into delighting them
by exceeding their expectations have really grown beyond one’s wildest
dreams. Various Methods used in preparation of report are as follows:
1. RESEARCH OBJECTIVE: The objective of this research is product
designing and promotion measures adopted by nokia.
2. SAMPLE SIZE:50 Retailers visits in the 19 geographical market of
Lucknow city
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3. METHODS OF DATA COLLECTION: Data were collected through
Questionnaire.
4. RESEARCH DESIGN: Exploratory.
4. DATA SOURCE:
Different-different management person in the different-different
industries located in different-different geographical region.
Primary Data- Face to face interviews using structured questionnaire.
Secondary Data- Respondents selected from database of dealer
provided by the company
Sampling method- Judgment sampling of dealers
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67
FINDINGS AND ANALYSIS
According to 36% retailers there is tremendously high market
potential for Nokia Mobile.
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Range of Nokia Products
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Almost 40% Mobiles of Rs. 2000- 5000 sells more than any Range of the
Mbiled
MARKET POTENTIAL FOR HIGH PRICE PRODUCT
According to 48% retailer’s market potential for High Priced product is
high
Market Potetial for High Price Product
Low
Medium
High
Can't Say
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High Price Product
OPINION ABOUT NOKIA MOBILE PRODUCTS IN COMPARISION TO
OTHER BRAND
General opinion about Nokia Mobile Product among retailers is
satisfactory.
VARIOUS PROMOTIONAL ACTIVITIES DISTRUBUTORS ARE DOING TO
PROMOTE NOKIA MOBILE PRODUCTS
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There are a number of promotional activities which distributors
are doing to promote Nokia Mobile Products, but the most
preferred are Road Shows, Insertion & Add in Newspaper.
Distributor Satisfaction Feedback
Various Promotional Activities Distributors are doing To promote Virgin Mobile Products
Insertion
Add in Newspaper
Road Show
Direct Selling
Banners
Just Diles
Cable Add
Customer Scheme
Tata Yellow Pages
Direct Mailers
Word of Mouth
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Doing To Promote NOKIA Mobile
If Distributor is advertising through print Media than Times
of India is the most Preferred Media
Retailers Satisfaction Feedback
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Almost 57% Retailers are Satisfied with Commission on Nokia
Mobile.
Opinion about Service offered by NOKIA CARE
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Almost 54% retailers are satisfied with Service offered by NOKIA
CARE
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SUGGESTIONS AND RECOMMENDATIONS
Company should do advertisement in Hindi being the most effective
language in Indian scenario. In India, the Mother tongue is Hindi and
most of the people do not know English so the advertisements must be
in Hindi.
The schemes & compensation of retailer should be provided with
utmost discipline.
Company should provide the trained FOS who regulates the multimedia
handsets.
Nokia have large number of retailers but it is not supporting and take
care all of them equally which results in increasing discontentment
among all the retailers because it is not possible for a company to
support all of them equally. Company should take some positive action
against it.
Company’s executive should visit at retailers and distributers on regular
basis.
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Need of customer care center as the consumer base of Nokia Mobile is
increasing with tremendously fast pace
Proper attention should be paid for advertisement planning otherwise it
may lead to problem for distributer as well as company.
Company should tie up some event management company to organize
various promotional activities like canopy, carnivals.
.
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CONCLUSION
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Nokia Mobile is a Finland based company. It is a group of 375 companies and
it came to India in march, 08. Working for Nokia Mobile India Ltd. for two
month is a big opportunity for me. In the duration of two month, it has been
concluded that the Indian telecom industry is very tuff market. In the telecom
industry, survival is very difficult for new company because there are already
six giant companies present.
As for as Nokia Mobile India Ltd. is concern, it is comparatively a very new
company and it is difficult to place its products and services to the retail outlet
initially. There was shortage of advertisement by the company that result lack
of awareness among public about the company. But later, by introducing
some good schemes and proper advertisements, company is able to gain its
position among the common mass. Company would definitely acquire a good
share of market in the coming future.
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..
BIBILIOGRAPHY
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BOOKS
Kothari, C.R, Research Methodology, New Delhi, Vikas Publishing
House PVT LTD. 2005
G.C. Berry, Marketing research, New Delhi, 2005
WEBSITE
www.Nokiamobile.in
www.google.co.in
www.wikipedia.com
www.altavista.com
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ANNEXURE
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1. What is your view on the Market potential Nokia product?
Low
Medium
High
2. What your promotion activity for product and service?
Road Shows
Direct
selling
Cable Add
Banners
Customer
scheme
Word of mouth
Ad in
newspaper
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3. How much you’re satisfied with Nokia product & service?
Satisfactory
Unsatisfactory
Can’t say
4. Which promotion activity is most effective?
insertion
Canopy
Ad in
Newsp
aper
Direct marketing
Depend upon
Market condition
5. Do you satisfying with commission and schemes of Nokia Mobiles?
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Satisfactory
Unsatisfactory
No Comments
.
6. Which range of the Nokia product you sell more?
Below Rs. 2000
2000-5000
5000-10000
10000-15000
Above Rs. 15000
7. which print Media do you prefer more to advertise?
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Local Magazines
Times of India
Hindustan times
others
8. Are you satisfied with the services offered by NOKIA CARE?
Highly satisfied
Satisfied
Neutral
Unsatisfied
Highly Unsatisfied
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