1

A PROJECT REPORT ON
MARKET SEMENTATION
NOKIA
SUBMITTED TO:
UNIVERSITY OF MUMBAI
ACADEMIC YEAR
(2015-16)
SUBMITTED BY:
ANAGHA PURANIK
ROLL NO: 16
M.COM PART-II (BUSINESS MANAGEMENT)
(SEMESTERIII)
PROJECT GUIDE:
PROF.MRS.SMITA BHIDE
VPMS
K.G. JOSHI COLLEGE OF ARTS &
N.G. BEDEKAR COLLEGE OF COMMERCE
(THANE)

DECLARATION
I, ANAGHA PURANIK a student of K.G.Joshi Bedekar College Of Arts &
N.G.Bedekar College Of Commerce Of M.COM PART-II (BUSINESS
MANAGEMENT) hereby declare that I have completed this project on
MARKET SEGMENTATION-NOKIA in the academic year 2015-16.
The information submitted in this project by me is true & original to my best
knowledge.

PLACE: THANE
DATE:

SIGNATURE:

ANAGHA PURANIK
(M.COM PART-II
BUSINESS
MANAGEMENT)

ACKNOWLEDGEMENT
It is a matter of prestige to be able to submit the project on MARKET
SEGMENTATION- NOKIA in the academic year 2015-16. The project is
required to be done for the partial fulfilment of the course of studies.
I would take the opportunity to thank my guide at K.G.Joshi Bedekar
College of Arts & N. G. Bedekar College of Commerce, Prof. SMITA
BHIDE for offering me with the necessary guidance required for the project.
I am grateful to the Principal Dr.Mrs.Shakuntala Singh & the Co-ordinator
Mr.D.M.Murdeshwar for their support. I would also like to thank the library
staff of the college for providing me the necessary books & references for
the completion of this project.

INDEX
SR NO.
1
2
3
4
5
6
7
8
9
10
11

PARTICULARS
INTRODUCTION
WHAT IS MARKET SEGMENTATION
DIFFERENT MARKET VARIABLES
PATTERN OF MARKET SEGMENTATION
THE SEGMANTATION PROCESS
COMPANY PROFILE
SWOT ANALYSIS
MARKET SEGMENTATION OF NOKIA
CONCLUSION
RECOMMENDATION
BIBLIOGRAPHY

INTRODUCTION
Introduction to Marketing

PAGE NO.
5
8
13
20
21
23
27
30
41
42
43

"Marketing is the process of planning and executing the conception, pricing,

promotion, and distribution of ideas, goods, services, organizations, and
events to create and maintain relationships that will satisfy individual and
organizational objectives." The new definition of marketing, as released by
the American Marketing Association is:Marketing is an organizational function and a set of processes for creating,
communicating and delivering value to customers and for managing
customer relationships in ways that benefit the organization and its
stakeholders.
"Marketing is a social and managerial process by which individuals and
groups obtain what they need and want through creating and exchanging
products and value with others." (Kotler & Armstrong 1987)
The Mission of marketing is satisfying customer needs. That takes place in a
social context. In developed societies marketing is needed in order to satisfy
the needs of society's members. Industry is the tool of society to produce
products for the satisfaction of needs.
Marketing is one of the most important functions in business. It is the
discipline required to understand customers' needs and the benefits they
seek. Academics do not have one commonly agreed upon definition. Even
after a better part of a century the debate continues. In a nutshell it consists
of the social and managerial processes by which products (goods or services)
and value are exchanged in order to fulfill the needs and wants of individuals
or groups. Although many people seem to think that "Marketing" and

"Advertising" are synonymous, they are not. Advertising is simply one of the
many processes that together constitute Marketing.
What is Marketing?
The term marketing has changed and evolved over a period of time, today
marketing is based around providing continual benefits to the customer,
these benefits will be provided and a transactional exchange will take place.
The Chartered Institute of Marketing define marketing as The management
process responsible for identifying , anticipating and satisfying customer
requirements profitability
If we look at this definition in more detail Marketing is a management
responsibility and should not be solely left to junior members of staff.
Marketing requires co-ordination, planning, implementation of campaigns
and a competent manager(s) with the appropriate skills to ensure success.
Marketing objectives, goals and targets have to be monitored and met,
competitor strategies analysed, anticipated and exceeded. Through effective
use of market and marketing research an organisation should be able to
identify the needs and wants of the customer and try to delivers benefits that
will enhance or add to the customers lifestyle, while at the same time
ensuring that the satisfaction of these needs results in a healthy turnover for
the organisation.

Advantages

Identifies needs and wants of consumers

Determines demand for product
Aids in design of products that fulfill consumers needs
Outlines measures for generating the cash for daily operation, to repay
debts and to turn a profit
Identifies competitors and analyzes your product's or firm's
competitive advantage
Identifies new product areas
Identifies new and/or potential customers
Allows for test to see if strategies are giving the desired results

Disadvantages
Identifies weaknesses in your business skills
Leads to faulty marketing decisions based on improperly analyzed
data
Creates unrealistic financial projections if information is interpreted
incorrectly
Identifies weaknesses in your overall business plan

MARKET SEGMENTATION
Market segmentation is one of two general approaches to marketing; the
other is mass-marketing. In the mass-marketing approach, businesses look at
the total market as though all of its parts were the same and market
accordingly. In the market-segmentation approach, the total market is
viewed as being made up of several smaller segments, each different from
the other. This approach enables businesses to identify one or more
appealing segments to which they can profitably target their products and
marketing efforts.
The Market-Segmentation process involves multiple steps. The first is to
define the market in terms of the product's end users and their needs. The
second is to divide the market into groups on the basis of their
characteristics and buying behaviors.
Possible bases for dividing a total market are different for consumer markets
than for industrial markets. The most common elements used to separate
consumer markets are demographic factors, characteristics, geographic
location, and perceived product benefits.
Considerations for Market Segmentation

To identify segments, marketers examine consumers' interests, tastes,

preferences, and socioeconomic characteristics in order to determine their
patterns of consumption and how they will respond to various marketing
strategies. The primary information marketers seek is why consumers
purchase specific products or services but not others. Catalog retailers and
direct-marketing firms make up some of the key users of market
segmentation, although many other kinds of companies and organizations
use this technique.
To whom do you sell and how do you promote sales?
Market segmentation, however, works effectively only for certain kinds of
products and services.
First, to determine whether to segment a market, marketers must find out if
the market can be identified and measured, which entails determining which
consumers belong to specific market segments.
Second, marketers must determine if the segments are large enough to be
profitable. While marketers can easily divide the total market into smaller
groups, these groups might be so small that they do not justify the expenses
associated with market segmentation.
Third, marketers must be able to reach the segments through their
advertising. If the members of a particular segment do not share interest in a
common magazine or television show, for example, then marketers have no
way of reaching the segment and so the segment is superfluous.

10

Fourth, marketers must gauge the responsiveness of the segments and find
out if a proposed segment would likely respond to a marketing campaign. If
it is not probable that a segment will react to a promotion, then the segment
is not useful.
Fifth, marketers must determine if the segments will change in the near
future. Since it takes time to prepare a marketing strategy for specific
segment and since it takes time for market segmentation to be profitable,
creating segments where consumer needs and wants are likely to change
would not be productive.
Representation of Market Segment
Market Demand
Aggregate of the demands of all potential customers (market participants)
for a specific product over a specific period in a specific market.
Market segment
Identifiable group of individuals, families, firms, or organizations, sharing
one or more characteristics or needs in an otherwise homogenous market.
Market segments generally respond in a predictable manner to a marketing
or promotion offer.
1. Set of potential customers:

Who have similar needs

Who reference each other when buying

11

2. Are alike in the way they:

Perceive value

View products and services

Purchase products and services

Why Define A Market Segment?

Easier to understand customer needs

Focus whole solution to a narrower set of customer needs

Easier to become a leader in a smaller market (Big fish in small pond)

More effective use of marketing dollars

Generally more profitable

Why Market Segmentation?

A major key to a companys success is its ability to select the most
appropriate market segmentation because a company cannot target whole
market. There are general guidelines for selection of target markets:

Target market should be compatible with the organization goals

12

and image.

The target market should match the marketing opportunity with

the companys resources.

An organization should consciously seek markets that will

generate a sufficient sales volume at a low cost to result in a
profit.

A company should select a market wherein the number of

competitors and their size are small.

The total markets for many products is to varied-too heterogeneous.

This variation Is due to the differences in buying habits ways to use
the products motives for buying etc. Market segmentation takes these
difficulties into account.
Benefits of Market Segmentation
Better marketing job and efficient use of marketing resources.
Small firm with limited resources can compete effectively in one or
two market segments.
A company can design products that really match the market
demands.
Advertising media can be used more effectively toward each segment
of market.

13

Drawbacks of Market Segmentation upto some extent

It is an expensive proposition in both the production and marketing of
products.
Segmentation increases marketing expenses in several ways i.e.
Inventory cost goes up, advertising cost goes up, administrative
expense goes up.

DIFFERENT MARKET VARIABLES

Geographic segmentation
Geographic basis focus on preferences contingent on regional factors, such
as region (e.g., North or South), county, population density, urban or rural
location, and climate. Collecting and analyzing information according to the
physical location of the customer or other data source.
Geographic segmentation is often used in marketing, since companies
selling products and services would like to know where their products are
being sold in order to increase advertising and sales efforts there.
Geographic segmentation calls for dividing the market into different
geographical units such as nation, states, regions, countries, cities, or
neighborhoods . The company can operate in one or a few geographic areas,
or operate in all but pay attention to local variations .
Demographic Segmentation

14

Market segmentation based on differences in demographic factors (which

normally match consumer wants and needs) of different groups of
consumers. It is one of the five common segmentation strategies, and aims to
define specific niches that require custom-tailored promotion.
Demographics include personal characteristics such as gender, age, marital
status, social attributes (such as ethnicity and religion), and income level.
In demographic segmentation , the market is divided into groups on the basis
of variables such as age , family life cycle , gender , income , occupation ,
education , religion , race , generation , nationality , and social class.
Demographic variables are the most popular bases for distinguishing
customer groups. One reason is that consumer wants, preferences, and usage
rates are often associated with demographic variables. Another is that
demographic variables are easier to measure.
Age and Life-Cycle Stage
Consumer wants and abilities change with age. Age and life cycle can be
tricky variables. For example, the Ford Motor Company designed its
Mustang automobile to appeal to young people who wanted an inexpensive
sports car . But Ford found that many mustangs were purchased by older
buyers. It then realized that its target market was not the chronologically
young but the psychologically young.
Life Stage
Person in the same part of the life cycle may differ in their life stage. Life
stage defines a persons major concern, such as going through a divorce,

15

going into a second marriage, taking care of older parents, deciding to

cohabit with another person, deciding to buy a new home, and so on.
Gender
Men and women tend to have different attitudinal and behavioral
orientations, based partly on genetic makeup and partly on socialization
practices.
Gender differentiation has long been applied in clothing, hairstyling,
cosmetics and magazines. The automobiles industry is beginning to
recognize gender segmentation, since there are now more women car
owners, some manufacturers are designing features to appeal to women,
although they stop short of advertising the cars as womens cars.
Income
Income segmentation is long- standing practice in such products and
services categories as automobiles, boats, clothing, cosmetics, and travel.
However, income does not always predict the best customers for a given
product.
Generation
Many researchers are now turning to generation segmentation. Each
generation is profoundly influenced by the times in which it grows up- the
music, movies, politics, and defining events of that period. Demographers
call these groups cohorts.
Social Class

16

Social class has a strong influence on preference in cars, clothing, home,

furnishings, leisure activities, reading habits, and retailers. Many companies
design products and services for specific social classes.

Psychographic Segmentation
The division of a heterogeneous market into relatively homogeneous groups
on the basis of their attitudes, beliefs, opinions, personalities and lifestyles;
sometimes called "State-of-Mind" Segmentation.
Personality the distinctive character of an individual; used as a basis for the
psychographic segmentation of a market in which individuals of relatively
similar personality, with similar needs or wants, are grouped into one
segment.
In psychographic segmentation, buyers are divided into different groups on
the basis of lifestyle or personality or values. People within the same
demographic group can exhibit very different psychographic profiles.
Lifestyle
People exhibit many more lifestyles than are suggested by the seven social
classes. People differ in attitudes, interest, activities, and these affect the
goods and services they consume. Companies making cosmetics and
furniture are always seeking opportunities in lifestyles segmentation, but
lifestyle segmentation does not always work.

17

Personality
Markers have used personality variables to segment markets. They endow
their products with a brand personality that corresponds to a target
consumer personality. The company utilizes product features, services, and
image making to transmit the products personality.
Values
Some markers segment by core values. Core values go much deeper than
behavior or attitude, and determine, at a basic level, peoples choices and
desires over the long term.
Behavioral Segmentation
Market segmentation based on differences in the consumption behavior of
different groups of consumerstheir life-styles, patterns of buying and
using, patterns of spending money and time, etc. One of the five common
segmentation strategies, its objective is to define specific niches that require
custom tailored promotion. In behavioral segmentation, buyers are divided
into groups on the basis of their knowledge of, attitude toward, use of, or
response to a product. Many marketers believe that behavioral variablesoccasions, benefits, user status, usage rate, loyalty status, buyer-readiness
stage, and attitudeare the best starting points for constructing market
segments.
Occasions

18

Buyers can be distinguished according to the occasions when they develop a

need, purchase a product, or use a product. Occasions segmentation can help
firms expand product usage. For example in Pakistan tea is usually
consumed at breakfast. A company can consider occasions of critical life
events or transitions-marriage, childbirth, illness, relocation, career change
as giving rise to new needs.

Benefits
Buyers can be classified according to the benefits they seek, people vary
considerably in the benefits they seek from the same product.
1. Road Warriors: premium products and quality service. (16%)
2. Generation F: fast fuel, fast service, and fast food. (27%)
3. True Blues: branded products and reliable service. (16%)
4. Home bodies: convenience. (21%)
5. Price Shoppers: Low price. (20%)
User Status
Markets can be segmented into nonuser, ex-users, potential users, first time
users, and regular users of a product. Market-share leaders tend to focus on
attracting potential users because they have the most to gain. Smaller firms
focus on trying to attract current users away from the market leader.

19

Usage Rate
Markets can be segmented into light, medium, and heavy product users.
Heavy users are often a small percentage of the market but account for high
percentage of total consumption
Loyalty Status
Consumers have varying degrees of loyalty to specific brands, stores, and
companies. Buyers can be divided into four groups according to brand
loyalty status:
1. Hard-core loyals: Consumers who are buy one brand all the
time.
2. Split loyals: Consumers who are loyal to two or three brands.
3. Shifting loyals: Consumers who shift from one brand to
another.
4. Switchers: Consumers who show no loyalty to any brand.
Buyer-readiness stage
A market consists of people in different stages of readiness to buy a product.
Some are unaware of the product, some are aware, some are informed, some
are interested, some desire the product, and some intend to buy. The relative
numbers make a big difference in designing the marketing program.
Attitude

20

Five attitude groups can be found in a market: enthusiastic, positive,

indifferent, negative, and hostile. Door-to-door workers in political
campaign use the voters attitude to determine how much time to spend with
that voter. They thank to enthusiastic voters and remind them to vote; they
reinforce those who are positively disposed; they try to win the votes of
indifferent voters; they spend no time trying to change the attitudes of
negative and hostile voters.

PATTERNS OF MARKET SEGMENTATION

Market segments can be build up in many ways, one way is to identify
preference segments. For example cookies buyers are asked how much they
value sweetness and saltiness in biscuits as two product attributes. Three
different patterns can emerge.
1. Homogeneous Preferences: shows a market where all the consumers
have roughly the same preferences. The market shows no natural
segments. We would predict that existing brands would be similar and
cluster around the middle of the scale in both sweetness & saltiness.
2. Diffused Preferences: At the other extreme, consumer preferences
maybe scattered throughout the space, indicating that customers vary

21

greatly in their preferences. The first brand to enter the market is

likely to position in the center to appeal to the most people.
3. Clustered Preferences: The market might reveal distinct preference
clusters, called natural market segments. The first firm in this market
has three options. It might position in the center, hoping to appeal to
all groups. It might position in the largest market segment
(concentrated marketing).It might develop several brands, each
positioned in a different segment. If the first firm developed only one
brand, competitors would enter and introduce brands in the other
segments.

THE SEGMENTATION PROCESS

Once a company has gathered information from these segmentation bases, it
must decide how to divide the market, bearing in mind that market
segmentation seeks to minimize the differences within a segment and
maximize the differences among segments. Consequently, depending on the
product or service to be marketed, simple divisions along age, gender, or
geographic lines alone may yield segments that are too vague to be of use.
Instead, marketers may have to consider several characteristics or clusters of
characteristics in order to divide the market into useful segments.
For example, when considering beer consumption, marketers must look at
both age and gender: the majority of beer drinkers are both young and male.

22

To begin segmenting the market, marketing managers must select the

segmentation bases they will use to develop the segments, depending
on the products or services to be marketed. Marketers may select a
few segmentation bases they believe are the most relevant at the
outset and develop market segments using them. On the other hand,
they may compile a large array of information using all the
segmentation bases and use this information to group consumers in
various segments.
Next, marketers conduct any primary market analysis they may need,
by preparing questionnaires and samples and by assessing the
response to them. Using this information, marketers try to determine
the most fruitful segmentsthe ones with greatest similarities within
them. Because this process can be labor-intensive and require
advanced knowledge of statistics, companies often rely on outside
firms or artificial intelligence technology to produce meaningful
market segments.
Once relevant, stable, reachable, profitable market segments are
established, marketers can target the segments they believe will offer
the best opportunities for growth given their products and resources
and the ones they believe that correspond to the products being
marketed the best. Finally, marketers can develop and launch
advertising campaigns that appeal to the various segments.
Companies tend to choose the largest segments, although the segments with
the most consumers are not always the most profitable and usually have the
most competition. Consequently, marketers might benefit from considering

23

targeting smaller segments or segments ignored by competitors, such as lowincome consumers, which is frequently referred to as niche marketing.

COMPANY PROFILE
Nokia- Connecting People !
Nokia Corporation (NYSE: NOK)
the

world's

largest

telecommunications

equipment

is one of

manufacturers.
With headquarters in Keilaniemi of Espoo, Finland, this Finnish
telecommunications company is best known today for its leading range of
mobile phones. Nokia also produces mobile phone infrastructure and other
telecommunications equipment for applications such as traditional voice
telephony, ISDN, broadband access, professional mobile radio, voice over
IP, wireless LAN and a line of satellite receivers.

24

Nokia provides mobile communication equipment for every major market

and protocol, including GSM, CDMA, and WCDMA.
Nokia was established in 1865 as a wood-pulp mill by Fredrik Idestam on
the banks of Nokia rapids. Finnish Rubber Works established its factories in
the beginning of 20th century nearby and began using Nokia as its brand.
Shortly after World War I Finnish Rubber Works acquired Nokia wood mills
as well as Finnish Cable Works, a producer of telephone and telegraph
cables. All three companies were merged as Nokia Corporation in 1967. The
name Nokia originated from the river which flowed through the town of the
same name (Nokia).
In the 1970s Nokia became more involved in the telecommunications
industry by developing the Nokia DX 200, a digital switch for telephone
exchanges. In the 1980s, Nokia offered a series of personal computers called
MikroMikko. However, these operations were sold to International
Computers, Ltd. (ICL), which was later merged with Fujitsu-Siemens AG.
Nokia also began developing mobile phones for the NMT network;
unfortunately, the company ran afoul of serious financial problems in the
1990s and streamlined its manufacturing of mobile phones, mobile phone
infrastructure, and other telecommunications areas, divesting itself of other
items, such as televisions and personal computers.
In 2004, Nokia resorted to similar streamlining practices with layoffs and
organizational restructuring, although on a significantly smaller scale. This,
however, diminished Nokia's public image in Finland, and produced a
number of court cases along with, at least, one television show critical of
Nokia.

25

Recently, Nokia joined other mobile phone manufacturers to embrace

Taiwanese Original Device Manufacturers. Nokia signed a contract with
BenQ, a Taiwanese Original Device Manufacturer, to develop three high-end
mobile phones, which are scheduled to retail by the end of 2005.

Nokia Vision/Mission Statement

Our Vision
A world where everyone can be connected.
In 2015, 5 billion people always connected, and 100 fold more network
traffic.
Its a world of experiences, shared experience
Nokia Corporation
Type

Julkinen osakeyhti
(Public company)

Traded as

OMX: NOKIA
NYSE: NOK

Industry

Telecommunications equipment

26

Computer software
Founded

May 12, 1865; 150 years agoTampere, Grand

Duchy of Finland
incorporated in Nokia (1871)

Founder

Fredrik Idestam

Leo Mechelin
Headquarter Espoo, Uusimaa, Finland
s
Area served
Key people

Worldwide

Risto Siilasmaa (Chairman)

Rajeev Suri (President and CEO)

Products
Revenue

Timo Ihamuotila (CFO)

List of Nokia products
12.73 billion (2014)

Operating

1.63 billion (2014)

income
Profit

1.17 billion (2014)

Total assets

21.06 billion (2014)

Total equity

8.67 billion (2014)

Number of

61,656 (Q4/2014)

employees
Subsidiaries

Nokia Networks

Website

Nokia Technologies
Nokia

27

SWOT ANALYSIS
SWOT Analysis, is a Strategic planning tool used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a Project or in a
Business venture. It involves specifying the objective of the business venture
or project and identifying the internal and external factors that are favorable
and unfavorable to achieving that objective.
SWOT Analysis of Nokia
A SWOT analysis conducts an external and internal scan of Nokia's business
environment, it is an important part of the strategic planning process.
Environmental factors internal to the firm usually can be classified as
strengths (S), or weaknesses (W), and those external to the firm can be
classified as opportunities (O) or threats (T). Such an analysis of the
strategic

environment

is

referred

to

as

SWOT

analysis.

The SWOT analysis provides information that is helpful in matching the

firm's resources and capabilities to the competitive environment in which it
operates. As such, it is instrumental in strategy formulation and selection.

28

Strengths
Is a dominant player in the smart phone market via its majority
ownership of Symbian and its proprietary Series 60 user interface
which are projected to represent majority of the 100M smartphones
sold in the next 4 years.
33% market share still the largest cell phone vendor by far, with
double the market

share of

nearest

competitr

Size should enable Nokia to amortize R&D costs and to get cost
advantages
Brand position: probably one of the top 20 brands in the world
Weaknesses
The

N-Gage

is

considered a

flop

Being the market leader and its increase role in Symbian is giving
Nokia a bad image, much like Microsoft in the PC industry.
Slow to adopt new ways of thinking: a good example are clamshell
phones which are preferred by many customers. Nokia was reluctant
to produce a clamshell until this year, when it launched its first model.
Opportuntiies
Increase their presence in the CDMA market, which they are just
entering, as well as 3G and Edge
New growth markets where cell phone adoption still has room to go,
including India and other countries.

29

Leverage its infrastructure business to get preference and a stronger

position with carriers
Threats
Late in the game in 3G creates a risk to be displaced by leaders like
Motorola,

LG, NEC and

others.

Asian OEMs who are entering the market very aggressively (TCL,
nGo Bird)
ODMs (HTC and others) enabling carriers to leverage their customer
power bypassing the handset vendor. Operators want to lessen their
dependency on handset vendors and the dominance of Nokia. Orange,
O2, and many other operators globally are selling their own brand of
phones.

30

MARKET SEGMENTATION - NOKIA

Nokia is a world leader in mobile communications, driving the growth and
sustainability of the broader mobility industry. Nokia connects people to
each other and the information that matters to them with easy-to-use and
innovative products like mobile phones, devices and solutions for imaging,
games, media and businesses. Nokia provides equipment, solutions and
services for network operators and corporations.
Marketing is one of the most important functions in business. It is the
discipline required to understand customers' needs and the benefits they
seek. Academics does not have one commonly agreed upon definition. Even
after a better part of a century the debate continues. In a nutshell it consists
of the social and managerial processes by which products (goods or services)
and value are exchanged in order to fulfill the needs and wants of individuals
or groups.
Market segmentation is the process of identifying key groups or segments
within the general market that share specific characteristics and consumer

31

habits. Once the market is broken into segments, companies can develop
advertising programs for each segment, focus advertising on one or two
segments or niches, or develop new products to appeal to one or more of the
segments. Companies often favor this method of marketing to the one-sizefits-all mass marketing approach, because it allows them to target specific
groups that might not be reached by mass marketing programs.
The market can be divided into segments by using four "segmentation
basis":

Psychographic,

behavioristic,

geographic,

and

demographic

basis.The basic criteria for segmenting a market is are customer needs. To

find the needs of the customers in the market it is important to undergo a
market research.Psychographic
and behavioristic bases are used to determine
research.
preferences and demand for a product and advertising content, while
geographic and demographic criteria are used to determine product design
and regional focus.
The decibel levels in the cellular market are increasing with service
providers stepping on the gas. Not to be left behind, handset manufacturers
are using precise segmentation to carve up their share. Divide and rule seems
to be working!
According to a report published in May 2001, the all-India cellular
subscriber figures stand at 38,71,514. With aggressive marketing by service
providers, this figure is expected to increase at a very rapid rate. If current
decibel levels in the market are anything to go by, these expectations are
well on the way to being met. However, amidst this entire melee one cannot
ignore the efforts of the handset manufacturers. Both service providers and

32

handset manufacturers have been complementing each other well with each
fuelling the demand for the other.
Industry observers attribute the success of handset manufacturers to shrewd
market segmentation. The big three of the mobile handset market - Nokia,
Ericsson and Motorola, have studied the market and segmented it precisely.
Segmentation of Nokia
Connecting people!
Nokia, arguably the biggest player in the world, has divided the market into
four segments:
Hi-fliers: The biggest segment as far as Nokia is concerned consists
of 'Hi-Fliers', corporate executives who use a mobile phone to
increase productivity at work. Aged between 25-45, the segment looks
for data transmission and other business-related features. In most
cases, the company sponsors the handset, hence price is not a major
consideration.
Trendsetters: In any technology adoption cycle, the first segment to
adopt an emerging technology is dubbed as 'the early adopters'. For
Nokia, these early adopters are 'Trendsetters' who are most receptive
to advanced models. This was the segment at which WAP-enabled
models were aimed.
Social contact: The third segment for Nokia is the upwardly mobile,
socially-conscious segment that uses a mobile to stay in touch.

33

Today's youth and affluent housewives constitute two major chunks of

the segment.

34

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
Behavioural
Benefits Quality
Loyalty status Strong

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Lifestyle and Psychographic Basis for Nokia

The descriptors of segmentation are:
Activities
Interests
Opinions
The Segmentation of Nokia conducted on the basis of Price
The price ranges are as follows:
1000 5000
5000 9000
9000 15000
15000 21000
21000 - 30000
30000 - above
Range 1: (1000 5000) Workers and labourers
nokia 1650: rs 3,750
nokia 1200: rs 2,400
nokia 1208: rs 3,000

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nokia 2610: rs 3,950

nokia 2626: rs 4,100
nokia 2310: rs 3,650
nokia 1112: rs 2,800
nokia 1600: rs 3,050
nokia 1110i: rs 2625
nokia 3110: rs 4750
Features:
The nokia phones falling in this range are mostly used by the manual
workers because they cannot afford a high price mobile phone.
Some students also use cell phone from this range as they have the
fear of snatch of mobile phone.
Mobile phones falling in this category are simple phones who only
meet the purpose of messaging and calling. These phones do not have
additional features such as camera, blue tooth or infra red.
The only feature available in this phone is FM radio, which is most
preferred by laborers, security and watch men.
Range2: (5000 9000) middle managers
Nokia 2630; Rs 6250
Nokia 6080; Rs 5800
Nokia 6070; Rs 5350

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Nokia 6020; Rs 5850

Nokia 7360; Rs 7050
Features:
The main users of this segment are middle managers because they
have limited and average salary and cannot afford to spend it on
unnecessary expenses.
They do not keep mobile for show off purpose.
The core feature of this segment is Audio Video Player, FM Radio
Camera, EDGE, GPRS and Expandable Memory.
This segment offers up to maximum 3 hours of talk time.
The need to remain in connection with internet, this segment offers
EDGE connectivity so they can faster access information, including
emails or news clips.
With the VGA camera, users can capture special moments with
images and video clips or connect to their colleagues using push to
talk technology.
Affordable, business tool for any occasion.
Range 3: (9000 15000) university students
Nokia 5200; Rs 9400
Nokia 6151; Rs 9750
Nokia 7610; Rs 10150
Nokia 6111; Rs 10500
Nokia E50; Rs 11350

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Nokia 6230i; Rs 11350

Nokia 6131; Rs 11700
Nokia 5300; Rs 11900
Nokia 7500 Prism; Rs 12000
Nokia 6233; Rs 12300
Nokia 6300; Rs 12650
Nokia N72; Rs 13500
Nokia E62; Rs 13200
Nokia 7373; Rs 13500
Nokia 6120 Classic; Rs 14900
Features:
The cell phones falling in this range are mostly used and popular in
university or college students.
These cells have a stylish look and have all the essential features such
as Audio Video Player, FM Radio, Bluetooth, Camera, EDGE, GPRS
and Expandable Memory.
They are popular among this group because they have high resolution
mega pixel camera, they like to click photos of family and friends and
they want to save their memories.
They have high memory, so they can download songs videos and
share it with their friends.
They are stylish phones usually used to show off their personality and
attitudes.

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Range 4: (15000 21000) music lovers/ high memory

Nokia N70 Music Edition; Rs 16000
Nokia 5310; Rs 16400
Nokia 6288; Rs 16750
Nokia 3250 (1GB);Rs 16750
Nokia 7390; Rs 17300
Nokia 5700; Rs 18400
Nokia E51i; Rs 20000
Nokia N73; Rs 20000
Nokia 5610; Rs 20500
Features:
This segment contains cell phones for music lovers.
These mobile phones are specifically optimized for entertainment,
music and games.
These Music phones offer dedicated music or gaming keys, expanded
memory, large LCD screen and extended battery performance to
provide quick and easy access to entertainment content.
These phones offer up to 18 hours of music playback, memory for up
to 3,000 songs on an optional 4GB microSD card and dedicated music
keys.
Range 5: (21000 30000) communicator/ high and young business
people

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Nokia E65; Rs 21300

Nokia N73 Music Edition; Rs 21500
Nokia E61; Rs 22500
Nokia 9300i; Rs 22700
Nokia E70; Rs 22700
Nokia 6500 slider; Rs 23300
Nokia 7900 Prism; Rs 23250
Nokia E61i; Rs 25950
Nokia N76; Rs 26800
Nokia N81; Rs 27200
Features:
Young and energetic business men fall into this category of age 30
40.
These people are young and adapt new changes quickly.
They are busy most of the time so they want quick solutions for their
problems
They want easy access to everything. They like challenging and new
things.
The cell phones falling in this category are business phones including
communicators and high memory storage phones.
These phones enable to connect the business people to one another.
They have a lot of storage space and connect to GPRS anywhere.
They can take their office work with them and can even download
heavy files.

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Range 6: (30000 - above) educated politician

Nokia N95; Rs 36750
Nokia N93i; Rs 39750
Nokia 8600; Rs 41000
Nokia N82; Rs 44300
Nokia N95i; Rs 44300
Nokia E90; Rs 49700
Nokia 8800; Rs 50800
Features:
It is both a mobile phone and media player rolled into one. Similar as
the N95 and G600, the candy bar N82 is packed with lots of advanced
function and features such as HSDPA, Bluetooth 2.0 with A2DP, WiFi, integrated GPS, FM radio, microSD and TV-out.

42

43

CONCLUSION
Nokia has implemented various segmentation strategies for its products on a
large scale & becoming no.1 leader in the world of mobile phones. Nokia
segments its market according to various variables. The main segmentation
is done on the basis of price. As per my opinion Nokia had introduced
various schemes to attract people & gain more goodwill into market. I would
like to conclude that Nokia had been launching various new products &
strategies throughout the year but still it is the no.1 brand leader in mobile
phones. Many people around the globe are purchasing Nokia phones, as they
are very cheap, good & efficient to operate. Nokia have used better &
efficient market segmentation strategies to market its products according to
various segments of customers in the market. Nokia as such has used all
modern & good techniques to tackle problems of customers in market.
Customer care & feedback is also given more importance. Better, efficient &
advanced techniques are used to increase the sales of product. Also Nokia is
largest manufacturer of mobile phones in India & also the no.1 leader in it.
Various segmentation strategies are being enrolled into the market to
increase the sales of the products. New models & their strategies are being
well utilized to enhance the product.

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RECOMMENDATIONS
I would like to provide certain recommendations towards this Project report.
They are as follows:
I would like to suggest that the Marketing areas for Sales should be
increased. They should try to adopt new strategies to regain whole
sales force in the market.
As far as launching of new models is concerned, the Company should
try to offer sales of such products at an affordable Price.
The Company should try to bring more attractive offers & discounts
to the customers of segments to make them more brand loyal towards
them.

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BIBLIOGRAPHY
-www.nokia.com
http://www.nokia.com/about-nokia/company
www.google.com

http://www.google.co.in/#hl=en&source=hp&q=market+segmentation+of+n
okia&meta=&aq=7&aqi=g10&aql=&oq=market+se&gs_rfai=&fp=fe4cbc8
54b7cd67d