marketing strategy to increase the market share of nokia smartphone's
DESCRIPTION
Indian consumers once upon time entered into Mobile shop to Buy Nokia not just mobile phone but today Indian consumers are entering into mobile shops and coming out with Samsung,HTC and some other brands but not Nokia ...TRANSCRIPT
S tra teg i c Mark e t in gProje c t on
S MAR TPH ON E’s
GR OU P-6 Ad ars h a H
S i ra ju d du l l a Hu s sa i n k h anTree sa
Vi n ee th M
EXECUTIVE SUMMARY
Nokia Corporation is a Finnish multinational communications and information technology
corporation headquartered in Keilaniemi, Espoo, Finland. Its principal products are mobile
telephones and portable IT devices.Nokia is the first company to launch mobile phones in India
and became one of the most trustable brands in India. Though nokia is market leader in the
overall mobile handset industry but due to entry of Samsung, HTC and other local players in
android based smartphone and the lack of Nokia’s innovation in the smartphone segment they
started on a downward trend and started losing their market share in the Smartphone segment
because of this it’s competitor Samsung market share is increasing every month where Nokia’s
overall market share and smartphone Market share is also declining every month .
Through this project we were able to understand the current market scenario of Nokia
Smartphones and suggest them with strategies to help them revive the brand and help them
regain their market share by identify the gaps and limitations in their current strategies.
To understand the current market scenario of Nokia, we did analysis like Industry Analysis, STP
Analysis, PEST analysis, GAP analysis. We also studied the marketing mix of Nokia
Smartphone in detail and identified those features that create value. We identified the critical
success factors and also the core competencies.
We also conducted two surveys
Direct mail survey – To understand the customer trends, preferences when they are buying a
Smartphone and product features that influence their decision making
Personal survey – To understand the brand-price trade off
Based on our findings from the analysis and research, we recommended a strategy where Nokia
Should involve in more promotional activity to reach the mass and to eliminate the wrong
perception about nokia smart phones performance and Should involve in the IMC activity based
upon Educating the consumers about advantage of Smartphones and its purpose ,how
smartphone can increase their productivity and how it makes the user smarter than others.
NOKIA:
Nokia Corporation is a Finnish multinational communications and information technology
corporation headquartered in Keilaniemi, Espoo, Finland. Its principal products are mobile
telephones and portable IT devices. It also offers Internet services including applications, games,
music, maps, media and messaging through its Ovi platform, and free-of-charge digital map
information and navigation services through its wholly owned subsidiary Navteq. Nokia has a
joint venture with Siemens, Nokia Siemens Networks, which provides telecommunications
network equipment and services.
Nokia has around 122,000 employees across 120 countries, sales in more than 150 countries and
annual revenues of around €38 billion. As of 2012 it is the world's second-largest mobile phone
maker by unit sales (after Samsung), with a global market share of 22.5% in the first quarter
Nokia is a public limited-liability company listed on the Helsinki, Frankfurt, and New York
stock exchanges. It is the world's 143rd-largest company measured by 2011 revenues according
to the Fortune Global 500.
Nokia was the world's largest vendor of mobile phones from 1998 to 2012.However, over the
past five years it has suffered declining market share as a result of the growing use of
Smartphones from other vendors, principally the Apple iPhone and devices running on Google's
Android operating system. As a result, its share price has fallen from a high of US$40 in 2007 to
under US$3 in 2012.[9][10] Since February 2011, Nokia has had a strategic partnership with
Microsoft, as part of which all Nokia Smartphones will incorporate Microsoft's Windows Phone
operating system (replacing Symbian). Nokia unveiled its first Windows Phone handsets, the
Lumia 710 and 800, in October 2011.
First Mobile Phone:
The technologies that preceded modern cellular mobile telephony systems were the various "0G"
pre-cellular mobile radio telephony standards. Nokia had been producing commercial and some
military mobile radio communications technology since the 1960s, although this part of the
company was sold some time before the later company rationalization. Since 1964, Nokia had
developed VHF radio simultaneously with Salora Oy. In 1966, Nokia and Salora started
developing the ARP standard (which stands for Autoradiopuhelin or car radio phone in English),
a car-based mobile radio telephony system and the first commercially operated public mobile
phone network in Finland. It went online in 1971 and offered 100% coverage in 1978.
In 1979, the merger of Nokia and Salora resulted in the establishment of Mobira Oy. Mobira
began developing mobile phones for the NMT (Nordic Mobile Telephony) network standard, the
first-generation, first fully automatic cellular phone system that went online in 1981. In 1982,
Mobira introduced its first car phone, the Mobira Senator for NMT-450 networks.
Nokia bought Salora Oy in 1984 and now owning 100% of the company, changed the company's
telecommunications branch name to Nokia-Mobira Oy. The Mobira Talkman, launched in 1984,
was one of the world's first transportable phones. In 1987, Nokia introduced one of the world's
first handheld phones, the Mobira Cityman 900 for NMT-900 networks (which, compared to
NMT-450, offered a better signal, yet a shorter roam). While the Mobira Senator of 1982 had
weighed 9.8 kg (22 lb) and the Talkman just under 5 kg (11 lb), the Mobira Cityman weighed
only 800 g (28 oz) with the battery and had a price tag of 24,000 Finnish marks (approximately
€4,560).Despite the high price, the first phones were almost snatched from the sales assistants'
hands. Initially, the mobile phone was a "yuppie" product and a status symbol.
Nokia's mobile phones got a big publicity boost in 1987, when Soviet leader Mikhail Gorbachev
was pictured using a Mobira Cityman to make a call from Helsinki to his communications
minister in Moscow. This led to the phone's nickname of the "Gorba".
In 1988, Jorma Nieminen, resigning from the post of CEO of the mobile phone unit, along with
two other employees from the unit, started a notable mobile phone company of their own,
Benefon Oy (since renamed to GeoSentric). One year later, Nokia-Mobira Oy became Nokia
Mobile Phones.
SYMBIAN OS:
Symbian is a mobile operating system (OS) and computing platform designed for Smartphones
and currently maintained by Accenture. The Symbian platform is the successor to Symbian OS
and Nokia Series 60; unlike Symbian OS, which needed an additional user interface system,
Symbian includes a user interface component based on S60 5th Edition. The latest version,
Symbian^3, was officially released in Q4 2010, first used in the Nokia N8. In May 2011 an
update, Symbian Anna, was officially announced, followed by Nokia Belle (previously Symbian
Belle) in August 2011.
Symbian OS was originally developed by Symbian Ltd. It is a descendant of Psion's EPOC and
runs exclusively on ARM processors, although an unreleased x86 port existed. Some estimates
indicate that the number of mobile devices shipped with the Symbian OS up to the end of Q2
2010 is 385 million. By 5 April 2011, Nokia released Symbian under a new license and
converted to a proprietary model as opposed to an open source project.
WINDOWS OS:
On 11 February 2011, Nokia announced that it would migrate from Symbian to Microsoft's
Windows Phone OS. Nokia CEO Stephen Elop announced Nokia's first Windows phones at
Nokia World 2011: the Lumia 800 and Lumia 710. These phones were launched on 14
November 2011. On 22 June 2011 Nokia made an agreement with Accenture for an outsourcing
program. Accenture will provide Symbian-based software development and support services to
Nokia through 2016; about 2,800 Nokia employees became Accenture employees as of October
2011. The transfer was completed on 30 September 2011.
Windows Mobile is a mobile operating system developed by Microsoft for Smartphones and
Pocket PCs. Windows Mobile is the predecessor of Windows Phone, but they are not part of the
same continuum of operating system development and Windows Mobile cannot be updated to
Windows Phone. In February 2010, Microsoft announced Windows Phone to supersede
Windows Mobile, with the new operating system incompatible with Windows Mobile devices
and software. As a result, Windows Mobile has been discontinued.
The final version of Windows Mobile, released after the announcement of Windows Phone, was
6.5.5. Microsoft has stated that the Windows Phone operating system is incompatible with
devices designed for Windows Mobile as "Windows Mobile 6.x devices do not meet Windows
Phone hardware requirements designed to ensure a consistent user and developer
experience",and software designed for Windows Mobile is incompatible with the new operating
system. And the current operating system used for nokia lumia series is WINDOWS 7.5 and 8.
Smartphone:
A smartphone is a mobile phone built on a mobile operating system, with more advanced
computing capability and connectivity than a feature phone. The first Smartphones combined the
functions of a personal digital assistant (PDA) with a mobile phone. Later models added the
functionality of portable media players, low-end compact digital cameras, pocket video cameras,
and GPS navigation units to form one multi-use device. Modern Smartphones also include high-
resolution touchscreens and web browsers that display standard web pages as well as mobile-
optimized sites. High-speed data access is provided by Wi-Fi and mobile broadband.
The most common mobile operating systems (OS) used by modern Smartphones include
Google's Android, Apple's iOS, Nokia's Symbian, RIM's BlackBerry OS, Samsung's Bada,
Microsoft's Windows Phone, Hewlett-Packard's webOS, and embedded Linux distributions such
as Maemo and MeeGo.
Fall in market share but still a Global leader:
A decade back, Nokia’s leadership position in India and globally was almost unassailable. But
riding on the success of Android-based phones, South Korean handset maker Samsung
Electronics Co. Ltd has severely dented the Finnish company’s fortunes. Even though Nokia is
the market leader in Indian Mobile phone market, its dominance is under threat from other
MNCs like Samsung and Indian companies like Micromax, Karbonn, Lava etc. Nokia had
49.3% market share in 2010.The Korean mobile phone company Samsung is quickly growing its
market share during the last few years. It reported a revenue growth of 21.7% during last year as
against Nokia’s flat revenue growth. Nokia’s revenue during 2011 was Rs 12929 cr against Rs
12900 cr during the previous year.
The major reason for this low growth is due to absence of product ranges like dual Sims, which
are very popular in India. It is estimated that nearly 50% of the handsets sold in India are dual
sim phones, which were not produced by Nokia till recently. Indians didn't go to buy a mobile
phone. They went to buy a Nokia. Now many of them don't. Increasingly, Indians go to buy a
Nokia and come out with a BlackBerry, Samsung or Micromax. Samsung, however, lags behind
Nokia in unit shipments (volumes) in India.
In the overall mobile phone space in India, Nokia retained leadership with a 30% market share in
the October-December 2011 quarter, with Samsung following at 14.4%, according to shipment
numbers by Cyber Media Research. But the research firm also reveals that Nokia has been
steadily losing market share in India, dropping over the years: 2008 (55%), 2009 (54%), 2010
(49.3%), 2011 (39%).
NOKIA fall in Smartphone segment:
This year, not only did Samsung break Nokia’s 14-year record of being the world’s largest
handset maker by overtaking it in terms of unit shipments in the January-March quarter,
according to a report in April by research firm Strategy Analytics, it is also threatening to
upstage Nokia in the overall Indian mobile phone market.
It has already toppled Nokia in the Indian smartphone segment. Research firm Convergence
Catalyst pegs Samsung’s share in India in the January-March quarter at 45%, way above Nokia’s
25-30%. It estimates 9-9.5 million Smartphones to have been sold in India in 2011.
It is in this chunky and profitable category that Samsung has carved out a comfortable space for
itself. GfK-Nielsen puts Samsung's share at over 43 per cent of the smartphone market in
March's volume sales compared to the 29 per cent of Nokia. This is in line with the trend of the
last two years. While Samsung grew its share in Smartphones to 26.7 per cent in 2011 from 4.9
per cent the year before, Nokia saw its share shrink from 83.5 per cent 46.1 per cent in 2011.
Vision Statement:
Nokia wants to create a new world; to transform a big planet to a small village. Their vision is to
create, build, and encourage people from all countries to communicate with each other in order
to create a world where everybody is connected.
Mission:
To become market leader in smart phone category by end of 2013.
Objectives:
Increase the market share of Nokia smart phones fromo25.5% to 35.5% by end 2013.
Objectives of the study:
The main objective of the study is to help Nokia Smartphone’s by achieve the mission by
providing marketing strategies and a tactical plan for Nokia by identifying the gaps in their
current strategies.
INDUSTRY ANALYSIS
Structure of Mobile Market in INDIA
The mobile phones industry in India has been an attractive destination for the global as well as
domestic mobile phone manufacturers from the very start. It was thought in the beginning that
the mobile phones in India will serve the growing communication needs in the country.
Considering the growth of the industry in India, it can be said that the estimated results have
been achieved beyond expectations. Apart from mobile phone manufacturers, the industry has
also seen the growth of mobile phone carriers, mobile phone application developers, mobile
phone content providers and so on. It is expected that the industry is going to keep on growing to
attain the anticipated goals at a fast rate. There are two big reasons for the rapid growth of
mobile phones industry in India. First, there is a huge market for entry-level mobile phones. And
second, the high-end mobile phone buyers too exist in the Indian mobile phone market. These
reasons encourage the top mobile phone manufacturers to experiment their products from
different categories in the Indian market.
Potential growth rate:
Globally, Smartphone Market grew 61% in 2011 with total shipment volumes reaching 491.4
million units in 2011, a whopping increase of over 304.7 million units in 2010! Smartphones are
replacing features phones at much faster rate than expected, thanks to consistently falling
pricing.
In comparison to Global Smartphone Market, growth in India is expected to be even higher –
According to “India Smartphone Outlook for 2012” report released by Convergence Catalyst,
India will witness 100% growth in 2012, with total smartphone shipments expected to reach 20
million units.
Ease of entry of new firms into industry:
Entry Barriers:
A large number of barriers prevent entrance into the smart phone industry. Among the largest
are:
fixed costs – necessary research and development
Reputation of incumbent firms – people buy phones from companies they trust
Networking – people buy phones that their friends and acquaintances use
switching costs – switching phones and service costs money and time to users
Differentiation – limited ability to differentiate from other phones
On other end Industry estimates put the handset market at Rs 40,000 crore a year, which will
expand to Rs 50,000 crore next year. Every year 120 million handsets of 58 brands are sold.
Total population of India is 1.27 billion in which 97crore people were using mobile phones, out
of which only 2.7 Cr users are using Smartphone’s. Smartphone industry in India is growing at
the rate of 87% year of year (source: Cyber media research, INDIA). Competitors in India
Smartphone industry is less when compared to other Emerging markets like china.
India, will record compound annual growth rates above 30% through 2014. Understanding local
conditions will be vital for operators, Smartphone vendors and OS developers.
A McKinsey estimate puts the number of Smartphone’s in India at 450 million in 2015
So there is high level of opportunity for new firms to grow in Smartphone industry in India if
their product is more innovative and lower price than the current players in the Industry.
Intensity of competition among firms:
With new players coming in, the intensity of competition in the industry has increased, especially
over the last three years. The market share of the mobile companies reflects the fragmented
nature of the industry, with as more than 10 players in Smartphone industry.
Degree of product substitutability:
The degree of product substitutability for Smartphone is high
Substitute product for Smartphone may be normal 2 and 2.5G or feature phones , TABLETS
(TAB’s) and laptops depends on price and features.
Dependence of complementary or supporting products and services:
For smart phones, any application that works well with the phones is a
Complement. Nokia owns a large number of such applications
Some complements include:
Data manipulation applications (documents)
Maps and GPS
Organization applications
Other internet applications and essentially any software available on phones
Music and other media content
Computers (in order to install and manipulate software on the phone)
Products involved in travel and mobility
Degree of bargaining power:
Smart Phone firms have relatively weak bargaining power.
Some reasons include:
substitutes – many substitutes
Elastic demand – smart phones are not a necessary product; hence there is Elastic demand
for them.
Information – customers tend to research capabilities of smart phones due to price and
high reliance on the product
Differentiation – limited ability to differentiate from other competitors
Degree of Technological Sophistication in industry:
Innovation in the Smartphone market is moving at such an incredibly faster rate that original
equipment manufacturers are releasing new devices on regular intervals. And each new
Smartphone is more technologically advanced than the last.
The recent technology advancement in Smartphone industries are NFC, DLNA, 4G, AI, etc…
Rate of Innovation in industry:
The rate of innovation in Smartphone industry is significantly high.
General Level of Management Capability:
The managerial capability should be very high in this industry because the market is very
dynamic and the rate of innovation is also very high and fast so firm should have good R&D and
should be always in proactive mode to face the challenges in future.
Macro & Micro Environment:
Rupee depreciation and appreciation:
The increase or decrease of Value of Rupee against U.S dollar will affect the price of phone. If
Rupee value decreases against U.S dollar (1$=50 INR), then one individual would spend more
than when what he spends during value of Rupee Increases against U.S dollar (1$=45 INR).
Increase in service Tax:
Service Tax is a form of indirect tax imposed on specified services called "taxable services".
Service tax cannot be levied on any service which is not included in the list of taxable services.
Over the past few years, service tax been expanded to cover new services. The objective behind
levying service tax is to reduce the degree of intensity of taxation on manufacturing and trade
without forcing the government to compromise on the revenue needs.
Environmental Factors:
Mobile phones are not easily recycled, only 65% of recycling of mobile is possible. India
government has signed agreement with UNO in reduction of emission of carbon, usage of other
chemicals and IT wastages which would affect our environment by 2015. Due to this Indian
government may change its Industrial and environmental policies. This may affect the
production and sale of mobile phone in India.
Other micro environments like recession, stagflation, depression and slowdown in country
economy growth
Competitors from overseas (in smart phone category):
Sony
Apple
Samsung
HTC
Huawei
The legislations that will affect our business:
World Health Organization states that mobile phone radiation can possibly cause cancer so,
Indian government would take some changes in mobile industry policies, Which may affect
Nokia growth in India
Demographic affect:-
Smartphone’s are more techs complex and not user-friendly like other normal mobile phones
because of this complexity only 2% of 50+ age group are using Smartphone’s in India. If
Smartphone’s are made with less complexity and more user-friendly then there is chance of
increase in usage of Smartphone’s among 50+ age group in India.
The major player in this Industry is:
Nokia
Samsung
Apple
HTC
COMPETITION ANALYSIS
Global Smartphone Shipment-2012:
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2Q12 unit 2Q12 Market 2Q11 Unit 2Q11 Market Year-over-
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kia .2 6% .7 .4% 8.9%
Htc 8.8 5.7% 11.6 10.7% -24.1%
ZTE 8.0 5.2% 2.0 1.8% 300.0%
others 50.7 32.9% 39.2 36.2% 29.3%
Total 153.9 100.0% 108.3 100.0% 42.1%
Source: IDC Worldwide Mobile Phone Tracker, July 26, 2012
Smartphone market grew at 42.1 percent year-over-year in second quarter of 2012. Vendors
shipped 153.9 million smart phones in 2Q12 compared to 108.3 million units in 2Q11, IDC said.
Nokia is still lead in smart phone sector .It has seen a major fall in market share by 50% from
60%, at the start of the 2011 to sub 40% by the end of the year.
Vendor Nokia Samsun
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HTC Sony LG Motorola Apple Other
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Total
Market
-11
46.8% 27.4% 13.3% 4.3% 4.2% 0.5% 0.6% 2.4% 0.5% 100%
INDIA SMARTPHONE MARKET SHARE MARCH-2012:
Operating system (OS)-wise Smartphone market share:
OS Android Symbian Blackberry Ios Bada windows total
Market share 50.6% 23.3% 9.9% 2.4% 10.2% 3.6% 100%
Samsung on other hand is dominating player in Indian smart phone sector. It is close to 30% of
total smart phone sector. Indian vendors like Micromax, Lava & others have not been able to
replicate the same success in Smartphone segment as they did for feature phones.
This year, not only did Samsung break Nokia’s 14-year record of being the world’s largest
handset maker by overtaking it in terms of unit shipments in the January-March quarter,
according to a report in April by research firm Strategy Analytics, it is also threatening to
upstage Nokia in the overall Indian mobile phone market.
It has already Samsung toppled Nokia in the Indian Smartphone segment. Research firm
Convergence Catalyst pegs Samsung’s share in India in the January-March quarter at 45%, way
above Nokia’s 25-30%. It estimates 9-9.5 million smart phones to have been sold in India in
2011. Samsung had a 34.2% share of mobile phone retail revenue in March 2012 as against
Nokia’s 33.8%.
Major competitor: Samsung
Comparisons & Competition analysis:
Category -1 0 1 2 3 4 5
Quality of product
Reputation in the
eyes of customer
Price of the product
New product
launch/development
Factors made our competitors successful: Samsung
Wide range of smartphone
Smartphone starting price at 7k INR
ability to offer “something for everyone” – different Smartphones catering to different
demographics
A big display for Smartphones
product portfolio based on Windows, Android and Bada operating systems
Availability of 600,000 Android Apps with more than 2lakh free apps
The proper/excellent design (designed for human)
Samsung Electronics the world's largest information technology company (measured by 2011
revenues)
Tag Line:- What Next? Samsung is always considering its tag line and coming with various kinds
of new brand model.
Have re organized the business of company and channel around the sales channel the dedicated team for
channel management and product.
The change in sales approach will help the firm meet the needs of the large, widespread and growing
multi-brand outlet world as well the specialized needs of the large format retail channel.
The company tried out this channel-led strategy in the mobile phone business two years back, which led
to rapid expansion of market share. The move allowed the company to have better relationship with the
key sales partners, dealers and retailers, understand their need and build customized sales promotion
strategy around them.
Main competitor: Samsung
Samsung is biggest competitor for Nokia in year 2012. According to the Voice & Data study it has seen
that Samsung posted a growth of 27.5% and annual revenue recorded 5,720 cr in 2012 in India from
4,700 cr in last year. It has around 40% of market share in smart phone sector.
Using same operating system Symbian and windows to power their smartphone and future phone and
advanced operating system then nokia like
The study was conducted by Cyber Media Research, Samsung retained its charisma with 40.4 per cent
market share in smartphone handset category. Nokia on the other hand came second with 25.5 per cent
share.RIM came third with 12.3 per cent share. Smartphone makers like Sony and Motorola are still
playing niche game in a competitive smartphone category.
Weaknesses of Samsung:
Low manufacturing Base in India
Lack of Mobile handset R&D
Patent problem with Apple
Expansive
Software is fatal problem for feature and low end Samsung mobiles
Tracking competitor’s activities:
• monitoring competitors’ tactical and strategic developments
• analyzing those developments
• distributing analyses to appropriate members of your
• organization in the form of alerts Monitoring their investment on R&D
Secondary sources :
Searching newspaper and magazine articles and monitoring competitor and related Web sites on a daily
basis is a straightforward way to track competitors. You can save time and effort by using alerting tools
available from database vendors and search engine providers. These automated searches are available
from most database companies, such as Factiva and LexisNexis, as well as through major search engines
like Google and Yahoo!. They provide current and relevant findings based on a set of search criteria (that
you create) relevant to your competitors and/or their products and services. The more sophisticated tools
allow you to set up alerts to collect and deliver the information to you, often via e-mail, according to your
monitoring schedule. In addition to database and Web-based tracking and alerting, several new tools have
recently been introduced that can help you track changes in competitor Web sites. For example, Watch
That Page and Website-Watcher can alert you to changes in targeted sites.
Changes made by our major competitors in last 12 months:
Launched dual sim technology in smartphone category powered by Android OS.
Launched Samsung 4G enabled Galaxy S III which is better than i-Phone called killer of i-
phone 4S
British chipmaker CSR sold its mobile business to Samsung in a deal worth $310 million
Samsung have patent problem with apple due to which Samsung facing potential U.S. &
EU sales bans of its Galaxy Tab 10.1
Samsung turned as a key competitor to Apple in the smartphone market.
Samsung mobile phone business was the highest performer with revenue of 20.52 trillion
and won, up 75 percent year-on-year.
Samsung revenue and profit in mobile grew over the previous quarter due to an
improvement in its product mix, and an increase in sales of its high-end Smartphones.
HTC acquired streaming music service MOG
HTC Acquired 51% of Dre's Beats Electronics for $300 Million in august 2011
Business dependence
80% of our profit is dependent only on one product (Mobile Phone)
Nokia has around 122,000 employees across 120 countries, sales in more than 150 countries and
annual revenues of around €38 billion. As of 2012 it is the world's second-largest mobile phone
maker by unit sales. Nokia was the world's largest vendor of mobile phones from 1998 to 2012.
Products are mobile telephones and portable IT devices. It also offers Internet services including
applications, games, music, maps, media and messaging through its Ovi platform, and free-of-
charge digital map information and navigation services through its wholly owned subsidiary
Navteq.
Product Copy
Yes it is easy to copy the Hardware of any phone of Nokia but it is Impossible to copy Software.
We can easily find duplicate Nokia’s phone which is made in china. One of the recent survey
revealed that the duplicate market has been growing at a shocking rate of 12% per year in India.
This obviously is a bad sign for companies, consumers as well as the government.
Mobile Brand Original Price Duplicate phone price
Nokia lumia 900 30,000/- 3,500/-
Samsung Galaxy S3 40,900/- 3,000/-
Iphone 4S 42,000/- 3,700/-
Samsung Galaxy note 29,000/- 2,200/-
Following are some tips to Identify Original Nokia Hand Set :-
Price of a fake Nokia is almost half or one-third of its original counterpart.
Abnormally lightweight phones can be fake, so beware, for humans light weights are in
but not for phones
Fake mobile don’t have the blue colored 12-month warranty sticker. If the phone has the
sticker then use the other ways to identify fakes (this is my version)
Unavailability of or poorly printed Nokia Care tamper proof warranty stickers are sign of
a fake Nokia mobile handset
Genuine Nokia phones have a tamper-proof label at the back and they also have tamper-
proof warranty seal
Original Nokia phone have batteries with hologram showing Nokia “Connecting people”
logo and “Original Enhancements” written on them. If you slant the hologram left, right,
down, and up you will see 1,2,3 and 4 dots on each side.
The extent of product differentiation that nokia have achieved for Smartphone range of
product/services:
Nokia Drive:
Have maps data for more than 190 countries in more than 50 languages and navigation in
more than 110 countries
collecting information from Nokia Drive users and local authorities to provide traffic
alerts in 26 countries, and also allow dynamic rerouting
Have venue maps in over 4,600 shopping malls, train stations, airport, sports venues, etc.
in 35 countries
Support multi-modal routing: by car, on foot (including footpaths, shortcuts, etc. in over
400 cities) and by public transportation (over 100 cities)
Free-of-charge digital map information and navigation.
Windows 8 Operating system.
Nokia 808 PureView with 41 megapixel camera, first 41 megapixel camera phone in the world.
Nokia Music Store with more free songs for Music Express series of mobiles.
They want to become the biggest entertainment media network in the world. By (ibid). Nokia
offers devices to satisfy every budget and they are trying to make their products and services
indispensable. They sell mobile devices to the hundreds of millions of price-sensitive cell phone
users in India that cannot afford a data plan. For $1.30 per month rural users in India can receive
information on weather, agriculture, education, and Bollywood. They are also going after the
high-end market high bandwidth market and have developed Ovi, an iTunes type platform with a
variety of downloadable Smartphone applications.
Each Product Lifecycle of Nokia Smartphone’s:
Nokia has introduced Nokia Asha which is stunning phone designed with sophisticated materials
and metallic finishes. Entertainment and applications are also a core part of the Nokia Asha.
Nokia’s Smart phone Lumia is in sub introduction phase of Growth phase, which already
attracted the customers by its features and its low price as compare to Samsung’s smart phone.
Feature phones are like 2230, 2690, c2, c00, 1616 etc are in maturity phase. Nokia sells
approximately 14.4 million feature phones in India. As India has price sensitive market it has got
huge market in India because they are available in cheap price.
Sales of other feature phones like Nokia N series and E series have declined.
Product Benefits and customer Needs
Feature BENEFITS CUSTOMER NEEDS
3G enable high speed
connectivity
Video calls, Faster
Internet
3.7″ 16M-color AMOLED Big Screen Crystal clear visibility
capacitive touch screen of
480 x 800 pixel resolution
Feather touch easy to assess
Windows Phone 7.5 OS
(Mango) and windows 8
faster than symbian User friendly
Wi-Fi 802.11 b/g/n Access Internet any where Internet access if
the area is Wi-Fi enable
GPS receiver Route Map strange city
16GB on-board storage highly compact Store Data
55 hrs music playing Battery Life More Music
7 hrs video play Battery Life More Entertainment
Service and Warranty Of Nokia
The warranty period starts at the time of Product’s original purchase by the first end-user. The
Product may consist of several different parts and different parts may be covered by a different
warranty period (hereinafter “Warranty Period”). The different Warranty Periods are:
1) Twelve (12) months for the mobile device and accessories
2) Six (6) months for the following consumable parts and accessories: batteries, chargers, desk
stands, headsets, cables and covers.
3) Ninety (90) days for the media on which any software is provided, e.g. CD-rom, memory
card.
As far as your national laws permit, the Warranty Period will not be extended or renewed or
otherwise affected due to subsequent resale, repair or replacement of the Product. However,
repaired part(s) will be warranted for the remainder of the original Warranty Period or for sixty
(60) days from the date of repair, whichever is longer.
If you wish to make a claim under the Limited Warranty, you may call the Nokia call center
and/or where necessary, return your Product or the affected part to a Nokia care center or Nokia
designated service location.
Packaging of Nokia Phone
A mobile phone package should give a message about the product image for a customer. It
should also complete the experience that the product is providing for the user. Nokia uses
recyclable materials, mainly wood fibers in its product packages. Coloring and patterning help
cardboard to support products' image and their message. Some 35-100% of materials are also
made of recycled fibers. Their availability vary from region to region. New packaging materials
are sought continuously. High quality packages can be made of several natural fibers. Flax
packaging is already used, agricultural waste as a raw material as well as bioplastics is being
studied. The use of agricultural waste brings challenges related to uniform quality and seasonal
availability of raw materials, while bioplastics are not easily recycled. Bioplastics should be
composted, and cannot therefore be recycled with other plastics.
Important of packaging:
To protect a product from damage or contamination:
The product must be protected against being dropped, crushed, and the vibration it suffers during
transport. The product most also be protected against the climate, including high temperatures,
humidity, light and gases in the air.
To identify and differentiate the product from others:
Packaging is the main way products are advertised and identified. To the manufacturer, the
package clearly identifies the product inside and it is usually the package that the customer
recognizes when shopping.
Protection during Transport and Ease of Transport:
A package should be designed to make it easy to transport, move and lift. A regular shaped
package (such as a cuboids) can be stacked without too much space between each package being
wasted. This means that more packages can be transported in a lorry. Unusually shaped packages
can lead to space being wasted and this can be costly if thousands of the same packages are to be
transported.
To identify the features, specification and color of the product
Product perceived in relation to its Competitor
category Our product competitor’s product
Price 4 3
Performance 3 4
Packaging 4 4
Reliability 4 3
Durability 3 4
Quality 3 4
After sales service/ 5 3
Maintenance 4 3
Guarantees 4 4
Promotion/Advertising 3 4
Nokia distribution structure in India
When it comes to distribution, Nokia's lead is clear. Today, India has some 1,10,000 outlets that
sell mobile phones. Out of these, according to companies own conservative estimates, 50,000
stores have only one brand available – Nokia.
Nokia started distributing its phones through a partnership with HCLI (formerly Hindustan
Computers Ltd.), which had already built an extensive network for its own products. Recently,
Nokia has decided to supplement that with its own distribution efforts. Nokia believed that there
was a tremendous growth opportunity and it was best exploited when the resources utilization of
both companies was optimized. Nokia and HCLI have decided to develop a go-to-market
strategy to jointly address the coverage needs of the urban and widely dispersed rural areas,
while rest are handled individually. Nokia has always been secretive about its operation and
strategies and have not spelt out clearly how the two partners have divided the markets, but some
do clues exist in the way demand is shaping up. In the cities where the market is maturing,
buyers are looking at more sophisticated mobile phones, such as Nokia's E-series phones (which
serve business users) and the N-series (which have multimedia features). In rural India -- which
constitutes 70% of the population -- affordability is an issue. So there is a different range for this
constituency. Different types of retail fronts selling Nokia mobiles are :
Nokia concept stores
A one-stop shop for mobile users has been brought into existence to provide an opportunity for
consumers to “experience the product “before purchasing it. Trained Nokia personnel would
brief customers about various handsets and features. The store would have the entire range of
Nokia devices in all categories including latest range of mobile enhancements and exclusive
Nokia merchandise apart from handsets.
The new Nokia Concept Stores represent a rebranding of the previous Nokia Professional
Centers. Nokia has so far been rolled out 9 Concept Stores in India with only Mumbai and
Bangalore having 2 concept stores. Other Concept stores in India are located in Gurgaon, Indore,
Jaipur, Hyderabad and Chennai.
These stores would help Nokia strengthen it brand and at the same time save costs that it incurs
in distributing to the dealers. Although it would have to bear the costs of training the employees
but the transportation cost would be greatly reduced. It would also give the company the
advantage of exclusivity. Since it has been opened in only metro and important cities, therefore,
it would not be subject to state sales tax, if the CFA is located in the same city.
Nokia Priority Dealers
Nokia Exclusive Stores namely PRORITY DEALERS are all franchised outlets .The franchisee
must fulfill certain criteria, for example, in the case of an existing store that would be converted
to a priority dealer, there must be a certain number of footfalls, the location of the store should be
prime real estate in that region, and certain other standards.
Nokia provides support to these outlets in the form of help in visual merchandising, furniture etc.
against a certain deposit by the owner which is refundable at the end of the contract if need be.
Multi Brand Dealers
Apart from its Nokia Priority dealers and concept stores, the company distributes its product to
many organized multi-brand mobile stores with nation-wide presence in India and recognized for
their service and price discounts. Few of the major players are
Hotspot
Univercell
The Mobile store
RPG Cellucom
Besides these there are individual mobile retailing stores as well as wide variety of retail stores
like electronics goods dealers, Stationary shops, etc who have started selling mobile phones over
past few years. HCLI has also established over 150 Nokia Care Centers managed by HCLI and
franchisee operations.
Role of Channel Partners
Nokia
Nokia manufactures its mobile in Chennai manufacturing plant and
then it transfers to nokia’s mother depot which is located in
Gurgaon. They also provide assistance in selection of channel
partners like redistributors, Dealers, Franchisees, etc. Besides this
they provide monetary assistance in Store development for Nokia
Priority dealers, help in promotion of products on mass scale as
well as in store and training of the sales force of partners at every
level.
HCLI
HCLI Info has been handling distribution of Nokia phones for 10
years. The agreement was due for renewal in August, 2006 and
was renegotiated beforehand. Again on January28th’ 2009 a new
agreement for territory division was signed between Nokia and HCLI. Nokia business accounts
for 52% EBIT of HCLI.
HCLI currently has 30,000 channel partners (dealers), some of which it will transfer to Nokia.
The pilot phase was launched in Mumbai and Bangalore to test the new distribution model. The
absence of any other distribution partner ensures that there will be no price-cutting. In both the
territories, Nokia phones were made available for a uniform price.
HCLI starts distributing Nokia’s product from Gurgaon depot. HCLI takes order from 4
redistributors appointed in Delhi to cover North, South, East and West zones and then it supplies
the product to the dealers with the help of RDSS (Re-Distribution stockiest supplier).
.Re-Distribution stockiest supplier (RDSS)
There are 6 RDSS in Delhi NCR region with territories divided as North, South, East and West
Delhi, Noida and Gurgaon. RDSS are supposed to operate only in their designated territorial
zone. In case of conflict HCLI acts as the arbitrator.
RDSS, assisted by Nokia, also take responsibilities like recruiting sales force, training and
developing. Stocking norms of Nokia- HCLI agreement says that HCLI depot should have 7
days supply, RDSS in city should have 5 days of supply.
Dealers
Nokia Priority dealers, Multi brand and individual dealers in Delhi NCR are all served by RDSS.
Dealers are explained the features of every new launch mobiles, different schemes and offers by
Nokia’s representatives. Re-supplies are always just a phone call away and the delivery is made
within a few hours. Besides, Nokia assists most dealers in the region in the store set-up and
design. The price points sometimes dictate the type of outlet.
Stock norms define that for how many days worth of stock does any level in the supply chain
should have. These norms are defined by Nokia only. Given below are the stock norms:
The expected target to be fulfilled by the particular level is determined by the following formula:
Expected target = (30 / No. of working days) * Stock Norm for that level
Margins at each level
The margins for the Nokia distribution segment have not been disclosed separately but are
clubbed with the overall contribution of the office automation and telecom segment. Tentative
margins found on the basis of discussions with dealers were:
Margin not declared
18% Margin
10% Margin2% Margin 8% Margin
Nokia and HCLI have never publicly declared their margins. Nokia business is the largest
contributor to HCLI’s revenues and profits. Nokia product distribution was the largest
contributor to HCLI’s sales (about 72% in FY2009). As a percentage of PBIT however, the share
of Nokia distribution was at 61%. Since 2006, when Nokia took over 50% distribution channel
from HCLI, revenue growth has almost been flat.
When comparing with its competitors, Nokia offers almost half to one-eighth margins on its
phones. Compared to 2% offered to dealers by Nokia, LG and Motorola offer around 8-10% and
Samsung 18%. But still dealers prefer to go with Nokia as it has much more surer sales and have
excellent support from RDSS and the company.
Distributors Coverage Plan
HCLI being the first level intermediary between Nokia and dealers, HCLI collects the goods
from mother depot in Gurgaon and supplies to 5 RDSS across Delhi and Noida. Gurgain depot
itself functions as RDSS for the Gurgaon. HCLI agents deliver the ordered mobile sets to RDSS
within 4hrs of receiving orders. Mother depot maintains stock capable of catering to atleast 7
days of demand in its covered territory.
In turn, RDSS ensures the delivery of goods within 4 hrs of the order made, sometimes even
quicker. Night time orders are delivered net day morning. As each RDSS is given a small
geographic territory, making quick deliveries does not prove to be hard. Although territories are
geographically small, the number of retail stores in each zone make them commercially attractive
to operate in. The small delivery time and close-knit relations with RDSS allows dealers to even
order the mobile pieces as and when customer walks in demanding the handset.
Again compared to this, Nokia’s rivals have appointed much more number of distributors in each
region. Samsung has 15 or more distributors to cover Delhi NCR region. But Still Nokia
manages to give services better than its competitors.
Infrastructure required by distributor
Nokia’s sole distributor currently in India is HCLI. Their deal was first inked over a decade ago
just when Nokia was entering into Indian telecom market which was perceived to be ready to
take a big leap forward. Nokia wanted an established partner with proven record in handling
distribution across India. HCLI had an excellent wide-reaching distribution channel and support
centers. This partnership helped Nokia in having a focused approach towards increasing
penetration to Rural & Semi-urban areas and improvement in market share across the country.
Nokia-HCLI have not declared any of their agreement details on public domain and hence its not
known what infrastructure HCL is supposed to maintain as per the agreement or what
infrastructure they have dedicated or use for servicing Nokia. Few details available in public
domain are:
Service provider for the repair of Nokia Mobile Phones in India
Pan India service network in 21 L3 locations equipped with state of art equipments
Mobile care vans across the country to increase remote coverage
Nokia repair facility
100+ repair benches with 75K handsets/ month repair capacity
L4 repair capability
HCLI maintains the mother warehouse located Gurgaon.
Support provided by the company to the distributor
Nokia has an extensive support program dedicated to providing key benefits to HCLI and RDSS
agents and qualified mobile phone dealers throughout Delhi. Nokia offers qualified dealers
unprecedented access to Nokia's products and support services to better satisfy customer needs
for Nokia products. It offers the tools and point-of-purchase support dealers need to deliver the
best possible customer solutions to Nokia end users. Nokia also offers dealers extensive
merchandising support such as counter top displays, product brochures, demonstration phones
and a Nokia premier dealer plaque
Point of Sales(POS) system : Nokia provides point of sale systems and software to dealers to
help them manage their selling activity better. It encourages dealers to move away from their
cash registers to IT managed account system. Almost all the Priority dealers have moved from
cash registers to POS systems.
In-shop Branding
Schemes: The concept of mobile recycling was first introduced by Nokia, a campaign was
launched to encourage people to give their damaged Phones to Nokia care, & avail the discount
on buying a new one. Besides, Nokia offers multiple schemes to push sales of lagging mobile
models. These schemes come in form such as added cash bonus of Rs.300-1500/ set for selling a
5 specific lagging set in 4 days.
Retail element: Nokia assists priority dealers by assisting in the payments for the retail element
part of their stores while the dealer is supposed to take care of the expenditure incurred on the
services other than the retail element. The service charge payments for the retail element could
be split into 'core' and 'additional' elements, with dealers paying pro-rata with for only those
services they all have use of, and an additional element for any extras it specifically requires.
Sales Collaterals: Nokia provides promotional collaterals and brochures to the dealers directly
to help in promoting sales. They regularly send in posters and pamphlets of latest releases,
updated brochures and handset fact-sheets to assist dealers in closing the sales.
Training the dealers: Nokia sends in its executives to dealers to train them on the features and
selling points of new launches and handset models not performing to their potential. Mostly
these tasks are taken up by the delivery executives who also inform the dealers about their latest
launches and the feature sets of these phones.
Dealer encouragement schemes : Nokia has cash rewards to promote and motivate the dealers.
They offer cash rewards for making predetermined level of sales fortnight which may ranges
from Rs.500 to Rs.5000. For their high performing dealers they offer all expenses paid
local/foreign holiday trips.
Credit/ Payment terms
Nokia operates of quick delivery and quick payment terms with RDSS and mobile dealers.
Deliveries are made super-quick, 4-5 hrs, and payments are supposed to be made quickly
too.
Nokia and HCLI have been under long term contract which has been in place for over a decade
now, with terms and conditions having been revised twice in this period. Margin and credit
period agreement between Nokia and HCLI have never been declared publicly. But its
speculated that its revenue sharing model based on total sales in a particular period.
Nokia having a very strong brand and market presence, exhorts tremendous power in market. It
allows a very small credit period to the RDSS which in turn squeeze dealers, giving them equally
small credit period. RDSS are allowed a credit period of 7 days, which in turn give dealers also
7 days credit period only. Although dealers moan about the short credit period, the power Nokia
has in market and demand for Nokia phones makes it imperative that dealers carry Nokia mobile
phones in their stores.
Again on this front, Nokia has tighter norms compared to its rivals. Samsung and LG offer
double the credit period offered by Nokia. Samsung and LG offer 15 days credit period,
compared to Nokia’s 7 days.
Major Problems Faced by the distributors
Terms and condition of the deal between Nokia and HCLI has never been revealed in the public
domain. Hence, the problems faced by HCLI are not known publicly. Since, the deal to divide
distribution territories was signed in 2006, there has been some issues for HCLI. HCLI shares
have suffered on share market. Nokia has also refused to confirm or deny plans on appointing
distributors for the territories under its control after the revised agreement.
On its part RDSS are quite happy with their functioning. They are satisfied with the products,
quantum of sales and promotional support provided by the company.
Even dealers spoke very highly of Nokia. Multiple dealers were contacted and not a single one
had any problem with Nokia’s distribution or service. Some dealers in other states were also
contacted and they also had nothing to report on the problem front.
A few minor issues that possibly could become concern in future were :
Credit period given by Nokia is very low compared to its competitors – just 7 days
compared to 15 days offered by Samsung and LG
Margins offered are very low compared to competitors who could become larger player
over new few years. Nokia offers just 2% margin to dealers compared to around 10%
offered by LG and 18% offered by Samsung
The damage piece policy has been cause of concern for some dealers/ RDSS. Although
minimal damaged pieces have been reported over years, if any physically damaged handset
is found, it sometimes leads to dealer/RDSS having to bear with it.
Major Points of conflict
There has been no point of conflict reported by RDSS or the dealers over the years.
Nokia-HCLI have marked the territories very effectively and have been strict in ensuring
that territories are not encroached upon by dealers or RDSS. There has also been no
conflict amongst channel partners at different levels or channel partners at same level.
Payments, delivery of goods ordered and services have also been impeccable.
Relations between Nokia and HCLI are deeply ingrained in their system and if there has
ever been any conflict or disagreement, it has never been reported in any open forum.
Major Problems/ Issues identified
With market scenario changing, smart phones are increasing their share of total mobile
phones market. Although Nokia too has presence in this segment, but with multiple recent
offerings launched by Blackberry, Apple and Samsung market is set to become more
competitive for Nokia. Compared to Nokia all these companies are offering better credit
terms and margins and this may lead to dealers and RDSS moving over to these
competitors.
Dealers reported Nokia’s executives never try to pressurize them in keeping their phones
on prominent displays or push sales when customer walks into the store. On the contrary,
LG, Samsung and other rival brand’s sales executives repeatedly exhort dealers to keep
their products in prominent displays. They even ask the dealers to push their handsets when
customer asks for Nokia. Till now Nokia has done strong promotion and relied on the pull
of its products and brand to make the sales. But in future, as the market gets competitive,
Nokia will find this tougher and should start forming strategy to counter such moves of its
competitors.
Service centers of Nokia are managed by HCLI in assistance with Nokia personnel.
Although, defects and problems in handsets have been very low compared to competitors,
the handling of service has not been impeccable. Service centers usually take time and at
some centres have long waiting list. This makes customers to move to cheaper and
convenient local mobile repair shops. As parts used are not genuine and sometimes results
in handset damage, customers end up blaming Nokia as much as they blame Local shop.
Effect of Nokia’s sale if price of phone increase or decrease by 10%
They shipped 2.2 million Nokia Lumia phones last quarter. It would not affect the sales of
Nokia’s smart phone if the price is increased by 10%. People would not see only price before
they go to purchase a mobile phone. There are many other factors that customer would see.
Warranty, guarantee, quality, after sale service etc is being offered by company, although price is
one of the important factor before one would go to buy a mobile phone. Nokia has 1000 Nokia
care center for its customers. Sales of Nokia would increase if price is decrease by 10%.
Nokia’s warranty period after sale service:
The warranty period starts at the time of Product’s original purchase by the first end-user. The
Product may consist of several different parts and different parts may be covered by a different
warranty period (hereinafter “Warranty Period”). The different Warranty Periods are:
1. twelve (12) months for the mobile device and accessories (whether included in the
mobile device sales package or sold separately).
2. six (6) months for the following consumable parts and accessories: batteries, chargers,
desk stands, headsets, cables and covers; and
3. ninety (90) days for the media on which any software is provided,e.g. CD-rom, memory
card.
The Warranty Period will not be extended or renewed or otherwise affected due to subsequent
resale, repair or replacement of the Product. However, repaired part(s) will be warranted for the
remainder of the original Warranty Period or for sixty (60) days from the date of repair,
whichever is longer.
Qualification of being Nokia’s Retailer
1. Raise the capital collateral necessary to become a Priority Dealer. Nokia will want you to
prove that you have the financial wherewithal to be a strong distributor. The capital
requirements vary, based on the location.
2. Provide your background and experience. A history of successfully running electronics or
cell phone distribution shops is preferred to become a Priority Dealer.
3. Establish a location by signing a leasing, cleaning the shop and organizing the display
area. When you become a Priority Dealer, you can hire staff, order supplies and obtain Nokia
signage.
4. Sign the Priority Dealer contract with Nokia, and begin marketing and selling the phones.
Service output deliveries expect of out Nokia Retail shop.
Nokia Strengthens After-Sales Service Enhancing Customer facility with Online Repair
Status Checking.
Adequate amount of stocks of sphere parts should available; customer should not wait too
long time to get sphere parts.
Retailer should listen problems is being faced by customer and try to sought out as early
as possible, which would help to become long term relationship.
Should have customer care help line center.
Not giving false promises.
Mobile theft insurance.
Service for any malfunction in mobile phones.
Service for any failure of hardware or software of mobile phones.
Educating customers about product and features and how to use it
Zero per cent EMI scheme on smart phones
NOKIA IMC
Blown Away by Nokia Lumia:
Following the launch of the Nokia Lumia in mid-December 2011, Nokia's recent efforts have
been to demonstrate the social networking features of the Windows-based phones - on ground,
online and on air. The company had launched a ‘Blown away by Nokia Lumia challenge’
running in March and April 2012. This was inspired by the ‘Smoked by the Windows Phone’
challenge, a global initiative undertaken by Microsoft (at CES 2012).
The first legs of 'Blown Away by Nokia Lumia' aimed at creating awareness about the challenge,
driving traffic to malls, colleges and retail outlets. Buzz was generated using digital media and
radio, post which bloggers challenged consumers (on-ground) to test their smartphones against
Nokia Lumia 800 in the social networking space. Finally, the 'challenge' videos were seeded
online.
Post this stage, an online campaign featuring brand ambassador Priyanka Chopra was created by
JWT India, where she was shown as the Nokia Lumia challenger.
Amazing Everyday:
Nokia India has unveiled an integrated campaign to support the launch of its Windows-based
smart phone, Lumia that hit the Indian retail shelves on December 16.
Built around the creative concept, ‘Amazing Everyday’, the campaign aims to highlight the three
key components of Nokia’s smartphones – communication; internet and applications, which help
the target audience to constantly sync their physical and digital worlds.“They are not your
everyday smartphones; they help create small joys and amazing moments, moments that can be
captured and shared with friends,” said Viral Oza, director marketing, Nokia India. “The
campaign is hence aimed at reminding people that even everyday routine can be amazing and
there are little adventures waiting for us around every corner.”
Anticipated to be Nokia’s most visible campaign so far, the marketing blitz kick-started with pre-
launch activation in metros and mini metros in which ‘amazing on-ground experiences’ been
have been created for consumers: flash dance mobs in Delhi, Bangalore, Mumbai and
Hyderabad; an impromptu dance performance by an international dance troupe, dressed in neon
outfits in Nokia Lumia Colors at Blue Frog, Mumbai; Lumia Taxis in various cities; and Flash
Cricket – where a celebrity cricketer springs a surprise in a field created in a mall and plays a
short version of cricket with consumers. Experience zones in malls across key cities with giant
live devices and monster headsets have also been set up.
The television campaign comprises five short films, the first of which, hit the screens last week.
The TVC, that showcases some extraordinary moments in every-day situations, is a part of the
global campaign that has been adapted for India. The agency for all “Amazing” – on-ground
activation -- activities is Encompass, the digital agency is Wunderman and the
social/blogosphere bit is being handled by Nokia’s social agency, Blogger’s Mind.
As part of the digital initiatives, Facebook has been used to amplify the ‘Amazing Everyday’
campaign. “Consumers have been invited to visit the Nokia Facebook page
(http://www.facebook.com/NokiaIndia) and submit short stories, videos and photos on how they
have been able to turn their every day routine life into an ‘amazing day’. The best storytellers
stand to win five Nokia Lumia handsets and other exciting prizes,” said Oza.
The hand-set major had also run an interesting week-long internal campaign leading up to the
launch. Some initiatives included a giant life–size Lumia in office dispensing gifts such as
chocolates, laptop stickers and Rubik cubes; treasure hunt; and fun rides on Lumia scooties.
Satisfaction guaranteed (PR):
people are asked to take the device, use it for a week, after which they can decide to either keep it or
return it. Until more people start using it, we have to keep at it, do these things, to build awareness, to
build experience based strategies around the product.
Nokia urges consumers to recycle e-waste:
Nokia India has launched 'Take Back' campaign to educate mobile phone users on the
importance of recycling e-waste. Though this new campaign, Nokia aims to encourage users to
dispose their old handsets and accessories like charges and handsets (of any brand) at any of the
recycling bins set up across Nokia Priority Dealers and Nokia Care Centers in New Delhi. As a
part of the initiative, the company is going to plant a tree for every handset dropped into these
bins. The campaign will be spread to the other parts of the country gradually.
Nokia India has launched 'Take Back' campaign to educate mobile phone users on the
importance of recycling e-waste.
Though this new campaign, Nokia aims to encourage users to dispose their old handsets and
accessories like charges and handsets (of any brand) at any of the recycling bins set up across
Nokia Priority Dealers and Nokia Care Centers in New Delhi. As a part of the initiative, the
company is going to plant a tree for every handset dropped into these bins. The campaign will be
spread to the other parts of the country gradually.
Nokia has undertaken this initiative based on a consumer survey conducted across 6500
respondents in 13 countries, including India which highlighted that despite the fact that people
on average have each owned around five phones, very few of these are being recycled once they
are no longer used.
Nokia Ad Budget for smart phones:
Nokia Budget: $50 million
Microsoft Budget:$50 million
AT&T Budget :$150 million
Publicity studs by adopted by Nokia
Nokia Lumia in India :
Nokia adopted various strategies in various countries like giant handsets, free Xbox bundles and
private concerts. It has adopted a different strategy in India by during a number of publicity
stunts that include bringing the customers in through Mercedes and BMW cars, taking the
family/friends for a dinner on the boat and a private parasailing session. This does not sum up the
efforts on Nokia’s behalf. The way Nokia has approached India seems to be very different as it
has adopted different things in different metro politician cities.
Nokia Lumia across top cities in India
Across various metro politician cities, various events like a concert by famous artists New Delhi,
an artificial snow zone at PVR. In Mumbai, free food and drink offers at PVR, a dance
performance by a foreign troupe and so on. In Kolkata, a winter wonderland with artificial snow
at Salt Lake is being used to attract customers. In Bangalore, Chennai and Hyderabad, a lot of
activities like taking out friends in BMW cars and private parasailing session are being taken up.
Nokia is surely here to make a mark this time.
Different Publicity studs of Nokia in different cities –
New Delhi –
No toll tax for 15000 cars at Delhi- Noida DND Toll plaza.
Musical concert by leading artist at New Delhi.
Blue Santa’s distributed chocolates at selected Malls of New Delhi.
An artificial snow zone was created at PVR New Delhi.
Lucky Draw contest were arranged by Nokia and the price for lucky winner was
Nokia Lumia.
Mumbai –
Dance performance was organized by foreign dance troupe.
Free food and drinks were organized by Nokia at Mumbai PVR.
Kolkata –
Winter Wonderland covered with artificial snow was created at
Salt lake to Promote Nokia Lumia.
Bangalore –
Consumers were picked up in Mercedes and BMW and were
offered an aircraft ride.
BMW drive offered with friends.
A Candle light dinner for two followed by a personalized dance.
STP analysis of NOKIA:
Nokia understood that from big businesses to every day consumers they needed to offer a variety
of packages to choose from. In having these different options people don’t have to immediately
go with the most expensive phone with the highest rates attached to them. People are able to
pick and choose if they want internet, 4g, 3g, Bluetooth capability, voicemail and a hodgepodge
of other options. This variety allows customers to buy the phones they are looking for and not
spend money on extra functions that they may never use based on
Geographic
World region – Asia
Country – India
Cities – Reach out maximum places
Demographic
Age – All age group
Gender – Male, Female
Income – All income groups
Occupation – Every sector
Religion – Irrespective of religion
Psychographic
Social class – All class of people
Lifestyles – Urban, rural, and even far villages
Behavioral
Benefits – Quality
Loyalty status – Strong
Nokia has mainly targeted: Target Market for the Nokia Mobile Phone is between 20-50 years.
Who wants to use something different? Teenagers and Business Class People. Targeting Strategy
Business to Customer
Nokia has a huge market; almost 5 billion people own a mobile phone in the world, and Nokia
has about a third of all handsets sold.
Nokia biggest customer group at the moment would have to be young people. It shows it Nokias
ads; they are very colorful, fun and show connectivity.
Today’s youth wants connectivity and social media in their hand set, like access to face book,
twitter and other social networking sites.
Business to business
Nokia uses different companies in different market segments to reach their target market for a
specific product, service or series of a product (Series meaning e.g. N-series, E-series...).
Meaning that Nokia products created for people who are concerned with appearance would be
“tied” to other companies products that are in the same segment, for example using Dolce &
Cabanas hand bags to market the 8800 sirocco diamond edition, by promoting the phone with the
hand bag and then giving a discount for the phone with every hand bag purchase.
What is meant by this is that, marketing stylish phones to people would be accomplished by
cutting a short term marketing deal with, for example Dolce & Cabana, so when the customer
walks into the store and purchase the hand bag they will have an incentive to purchase that phone
because they would be saving some money.
Segmenting and targeting by purchase behavior
Nokia has a huge market with many different segments divided by needs, therefore Nokia has
come up with different product lines for different segments.
Some examples of Nokia’s product lines include the C-series, E-series, X-series, N-series and the
N-gages.
Nokia has a number of different product lines for its customer’s demands:
1000 series – the ultra basic and most affordable Nokia handsets, at first designed for developing
countries.
2000 series – Basic series is a small upgrade from the 1000 series; it may have a camera or
Bluetooth.
3000 series – Expression series is targeted at the youths; they are affordable and have all the
basic features plus a camera, gps, mp3 and additions of that price level.
5000 series – Active series phones are very similar to the 3000 series phones, but are targeted at
active individuals so their make might be stronger or they might be shock or water proof.
6000 series – Classic business series has phones from the lower range to higher range phones,
usually with a respectable amount of functions meant for business professionals.
7000 series – Fashion & experimental series is for fashion conscious users, and user that want
new features on their phones.
8000 series – Premium series consists phones are categorized by ergonomics and attractiveness.
9000 series – Communicator series has been discontinued but consisted of business
communicators with full keyboards, created for business professionals.
C series – is optimized for social networking and sharing, the c series phones are also meant to
be affordable to the younger market.
E series – (Enterprise class) Are phones optimized for business professionals.
N series – Has the most advanced smart phones, they are meant for people who want
connectivity and multimedia features, they have as much technology put into them as possible.
X series – Music & entertainment series that targets a young audience.
N-gage series – Gaming series that came out with two models and was then discontinued.
LUMIA series – high-end of the Smartphone marketplace with windows operating system
ASHA series - low-cost mobile phones that will offer more than just the basic telephony features
which delivers a smart phone-like experience. is aimed at helping young people in emerging
countries to get online, so that they can begin to enjoy the Internet and social networking.
Nokia has many different kinds of products that vary from each other; there are products for
young people like students which include Nokia’s xpress music, cheap models, and trendy
looking phones, as listed above.
A mobile phone for anyone, everyone
NOKIA’S CLOSE COMPETIOR
SAMSUNG
HTC
NOKIA’S CORE COMPETENCIES
Personality counts
Brand name/ Brand development
Research & development
Mass production
Personality counts:
The ability to find the "right" person to fit into the Nokia team is one of the company's core
competencies. Search for the talented software engineer or researcher requires the company to
pay great attention to personality and behavior. Nokia believes that technical skills are easier to
assess and to learn than personal skills, which play a critical role in the company's team-driven
culture. In 2012, Nokia has more than 123,000 + employees in over sales in more than 150
countries.
Brand name/ Brand development:
When hiring researchers and engineers, Nokia is almost as interested in temperament as it is
technical credentials. Nokia motto: You can teach technology in the company much easier than
you can teach interpersonal skills, if at all. Director of global strategic resourcing at Nokia's
headquarters in Espoo, Veli-Pekka Niitamo said. "We want people who can work in a team, who
can communicate and defend their ideas and, equally important, who can accept different
opinions."Nokia focus is not only on technical skills but also on attitudes and behaviors critical
to the creative spirit of the company.
The Trust Research Advisory has released the Brand Trust Report 2012. The Brand Trust Report,
India Study, 2012 (BTR 2012), lists India’s 1000 Most Trusted Brands.
Among the brands to make it to the top of the list Nokia and Tata have retained their first and
second positions from last year as India’s top two Trusted Brands this year..
For North India, Nokia continues to lead but Tata (second place for India) slips down to sixth
place. South India agrees with the rest of India as there's no change in the order of the top five
most trusted brands.
Three Nokia’s main market areas
Europe
Asia Pacific
America
Sales in Europe amounted to roughly half the total
While Asia and the United States for about a quarter each.
The euro zone developed pretty much as expected.
Nokia was among the first companies to adopt the common currency in its
accounting.
Research & Development
One of the most important success factors that has made Nokia the company it is today is their
heavy investment in research in development. They spend about 9,5% of revenues on
R&D .Nokia maintains global contacts to universities, research institutes and other companies
to monitor and influence developments in technology .
15,000 employees (32% of their workforce) work in 10 R&D centers all over the world. Each
of these research facilities has focus on a specific subject and technology. The diversity of
these locations allows Nokia to better prepare the company to compete well in the future.
Research centers
China, Beijing – They are working to take advantage of the largest mobile market
and the fastest growing economy in the world – China
India, Bangalore – This team focuses on market services for both urban and rural
India
Kenya, Nairobi – Understanding the unique needs of the African mobile phone users
and creating concepts and visions to fulfill these needs.
Finland, Helsinki – They study the fields of user experience, mobile security, power
management, computing architectures and intelligent context-aware radio
Finland, Tampere – Their research focus is on rich context modeling, new user
interface and high performance mobile platform
Switzerland, Lausanne –They are researching the field of pervasive sensing and
computing
United Kingdom, Cambridge – Here they develop nanotechnologies for wireless
communication and ambient intelligence
USA, Cambridge – Here they’re developing new technologies for rich context
modeling and new user interfaces
USA, Hollywood – The center is focusing its research on activities in context aware
social media, user interaction models, mixed reality experiences and the convergence
of the internet and mobility
USA, Palo Alto – Researching mobile internet services systems, mobile business
solutions, context-specific content and visual computing.
Mass production
One more Nokia’s core competency is its ability to mass produce products quickly and
cheaply to meet demands in the whole world. They have captured almost half of the total
market share for mobile phones which makes it difficult for new companies to penetrate the
market. The big number of factories around the world puts Nokia in a great position to meet
world demand.
PESTLE Analysis of Nokia
Introduction
After conducting a Porter's 5 forces model on Nokia, I felt a PESTLE analysis would analyse the
macro environment of Nokia. These are all the external forces that are out of Nokias' control but
have a significant effect on how the company operates and the strategic decision they make. This
model looks at the Political, Economical, Social, Technological, Legal and Environmental
factors relating to Nokia and the industry they operate in. To understand the macro environment
more this article will study each section in depth.
Political
The Political factors relates to the factors which the government also affects such as government
instability or rules and regulations which the business must follow. Nokia have recently moved
one of its manufacturing facilities to India, and because of this it is important that Nokia follow
the rules and regulations that are set in India, so that they can operate as efficiently as possible.
The types of things they will have to be aware of is the minimum wage, the maximum hours a
week employees can work and especially the Health and Safety regulations; this is to avoid any
bad press or revolt from employees that will ultimately damage the reputation of Nokia both
short term and long term. As well as foreign government it is vital that Nokia have a good
relationship with their government in Finland, as any political instability such as a change in
government or coalition may result in new laws being implemented, which will affect Nokia a lot
Economical
Nokia are vital to the Economy in Finland as it currently occupies a third of the market on the
Helsinki stock exchange. The organization is so important to the economy of Finland that the
government had to step in when the business, earlier this year Nokia planned job cuts in Finland
and with fears of what that would do to the economy the Finnish government stated they were
prepared to help find jobs for those who are sacked.
Nokia will also have to be aware of changes in exchange rates, as they operate on a global scale
and drastic changes in rates can have a devastating effect on the financial operations of the
company if the business do not take appropriate steps to ensure the effects are minimum. The
threat of recession on western economy has also had an effect on the interest rates in banks,
which means the cost of borrowing money for business activities has increased and Nokia will
need to be aware of the changes in interest rate.
Social
With Nokia mainly operating in the Western market it is important for them to fully understand
the social factors in these markets and the main factor they need to understand is the culture of
the society; which is to have the latest and most up to date phone, is considered a key fashion
icon. Consumers are always after the most innovative and best looking Smartphone because in
today’s culture people are judge on how fashionable they are by their choice of mobile phone.
The increasing trend in Smartphones means when consumers purchase new mobile phones less
and less consumers are choosing the standard mobiles phones over Smartphones because of the
social trend in today’s society. Nokia will be aware of this and may now spend the majority of
their efforts developing a Smartphone that can compete with their rivals’ products, in order to
keep up with the trends of their consumers.
Technological
The technological advances in the industry are vital to the success of any new Smartphone in the
market that is continually growing, as the level of competition rises Nokia must ensure that their
Smartphones are at the highest level of innovation. With functions such as camera, internet,
social networking and email all necessities on Smartphones Nokia will have to think of other
functions to help differentiate and stand out from its rivals. As well as function more and more
consumers are looking at the software running all the functions as a key indicator of the success
and quality of the Smartphone, so Nokia’s alliance with Microsoft for their latest Smartphone’s
seems a very good move as everyone are aware of the technological capabilities of Microsoft and
the value they can add to any technological product.
In the past Nokia were the market leaders in innovation in the mobile phone industry, however in
recent times they have seemed well off the mark and struggle to compete with their rivals. This is
why Nokia must consider their position in the industry and attempt to once again become the
market leader by offering a new innovative capability and get to the market before its rivals.
Legal
Intellectual property is the key to any technological business and must be cared for and protected
to the fullest amount to ensure the business does not lose out to rivals. Nokia operate in an
industry where it is very difficult to have a product that is different to its competitors, when they
do release a product with an innovative capability it is vital to protect the rights to it through
patents, copyright, trademarks or design to ensure they are not “stolen” by their competitors. Not
only are competitors a threat of intellectual, but Nokia must ensure they do not fall victim to
counterfeiters who claim to be a Nokia products but are cheap knock-offs.
As Nokia have manufacturing plants in a various countries it is extremely important that they
abide by the laws and regulations set by the different countries as the laws will differ depending
on the country, these can be employments laws, Health and Safety or even trade restrictions.
Environmental
In today’s culture it is very important for organizations to be seen as environmentally friendly
and ethical with its manufacturing, because of the global effect it has on global warming so
Nokia must ensure that they operate in an appropriate manner. With mobile phone recycling
organizations becoming more and more popular, this demonstrates how important people are
regarding it. The main issue with mobile recycling is the disposal of the batteries in the phones as
these can become dangerous if not disposed of appropriately.
MARKETING STRATEGIES FOR NOKIA TO REACH OUR OBJECTIVE
More promotion for Nokia and Windows mobile operating system
Samsung had promoted in such a way that smartphones means it’s only Samsung phonesNot only in smartphones but also whatever it is Smart means Samsung, in the minds of Indian consumers through our Mistry shopping in various shops in Bangalore we observed that the consumer are entering into shop with a mindset of buying Samsung or HTC Smartphones but not for Nokia and nokia is not at all in their consideration part and one more thing is that even the shopkeepers are also not forcing the customers to buy Nokia Smartphones so Nokia should invest more for its promotions and should increase the margin levels of the Nokia Dealers and Distributors.
Starting price of Nokia windows operating system Smartphones should be reduced so that
customer will ready to go for nokia then its competitor and customer can experience the
advantage of windows and nokia which may lead to high sales of Nokia Smartphone’s
where Samsung android based Smartphone’s starts from 7K inr so, the customers who
unable to offer 11k for Nokia’s windows Smartphone will go for Samsung Smartphones
where nokia will lose its sales and market share.
Present Nokia Brand Ambassador for India is priyanka chopra and we think that this
should be changed because we perceive that Smartphones are more technology oriented
and guys are more tech savvy then girls and Priyanka chopra as an ambassador will be an
good for any Home appliance based products but for Smartphones we perceive that either
the product itself should be an ambassador and for Smartphone it should be promoted
through a smartest person so our recommendation is Bollywood actor Amir Khan but he
is already associated with Nokia’s competitor brand Samsung so we think SharuKhan
will be the best option for promoting Nokia Smartphones and Sharuk have more fans and
famous then priyanka chopra.
Should involve more in experimental marketing which can remove the wrong perception
about nokia mobile phone where most of the times customer’s complained that nokia
mobile get hang.
Nokia expect lumia series all other mobile phones are powered by Symbian operating
system which is considered as one of the most user-friendly operating system for mobile
phones which was developed by Symbian ltd. And most of this Symbian operating
system powered Nokia phones always get hangs some the nokia mobiles having this
problem are Nokia N97 C6-00 C5-00 etc… so because of this even today customers have
wrong perception on Nokia Mobile phones performance so Nokia should involve in More
experimental marketing for its Smartphones so that user can experience the windows
Based Smartphone’s and its performance but this Experimental marketing will reach only
to few customers in order to reach the mass Nokia should provide the original (no
dummy) windows based Smartphones which should connected to the big LCD or LED
monitors through HDMI port so that user can experience the windows Smartphones in a
big screen which will create an different experience and also user can experience the
different features of windows Smartphones on the big screen with HD videos and photos
shooted from windows based nokia Smartphones where user can check the picture quality
and performance of the windows Smartphones and also Nokia can promote through High
GUI based interactive website where user can virtually experience all the features of any
Nokia mobile phones and this will be completely an new experience for the customers
and this will reach the mass very soon at very low cost.
Windows should develop and provide more mobile applications, where android is
providing more than 6-lakh app and more than 2 lakh apps are free out of that 6 lakh +
apps this is the one of the main reason that attracts the user towards Android
Smartphones where Nokia doesn’t have even single android based Smartphones in its
portfolio but windows is unique feature of Nokia Smartphones and more user-friendly
then android Smartphones so nokia has selected an correct platform for it’s Smartphones
the only thing that nokia and Microsoft want to do is to develop more app for it’s
windows Smartphones.
Promoting sales of Nokia Smartphone through 0% EMI.
Smartphones are basically priced high so everyone can’t offer for Smartphones and from
our research we came to know that most of them want to own Smartphones but they
unable to spent 20k or 10k in one installment and they are ready to own a Smartphones if
the company or retail offers a Smartphones through EMI but this features is already
available in many retails but not with 0% EMI so if nokia promotes it’s Smartphones
with 0% EMI through its Nokia priority shop where nokia can sell more Smartphones
than before.
Educating the customers about the usage of Smartphone’s apart from social networking
and E-mail checking. Today not only nokia many other brands also promoting their
Smartphones in TV Advertisement only by showing facebook photo sharing and other
Social networking features but apart from social networking Smartphones can do more
like Making presentation, Video calls, online shopping , Internet banking , Information
sharing, 3G & 4G features or High speed internet, online ticket booking, video chatting,
watching and recording High Definition videos, and many more features and uses of
NFC and DLNA.
Providing high end Nokia smart phones at very low price with 2 years contract with
leading mobile network service providers (eg : Airtel, Idea, Aircel, Reliance).
Today many people using same mobile service network for so many years so if nokia
sign a tie-up or contract with some leading Mobile network service provider of India with
the concept of providing the Smartphones at very low price to customers with an 2-3
contract of using same network under postpaid service .
Should increase the margin level of nokia dealers.
We interacted with many multi brand and nokia priority shop owners and managers to
know the margin level of them but none of them are ready to revel to us, So based upon
secondary data we came to know that the margin level between re-distributor and the
nokia dealer is just 2% which is very less, If nokia increase its dealers or retailers margin
level then the retailers will push the nokia mobiles to their customers.
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