Project-Report On Nokia
Project-Report On Nokia
Project-Report On Nokia
PROJECT REPORT
ON
PRODUCT AND SERVICES OF
NOKIA
SUBMITTED IN PARTIAL FULFILLMENT FOR
THE AWARD OF THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION
2009-2012
STUDENT UNDERTAKING
Prabhjot Kaur
(Name of the Student)
CERTIFICATE
This is to certify that the project titled Product and Services of
MR.RAVI BHUSHAN
(Name of the Faculty G
3
AKNOWLEDGEMENT
Success is an effort bounded activity that involves co-operation of
all.
I hereby take the opportunity to express my profound sense of
gratitude and reverence to all those who have helped and
encouraged me towards successful completion of the Project
Report. It has been a great experience working on the Product and
Services of Nokia. It gives me complete insight of this concept of
marketing and its application.
Executive Summary
The project aims at understanding the Product and Services of
Nokia and its impact on the Indian Mobile Handset industry.
Research has demonstrated conclusively that it is far more costly to
win a new customer than it is to maintain an existing one. And
there is no better way to retain a customer than to exceed his
expectations. For this purpose it is essential to know the level of
customer satisfaction. The focus of my research was the
measurement of customer satisfaction level for the products
provided by Nokia. The research was done for the complete insight
of this concept of marketing and its application of Nokia. My job
was only to represent the Corporate Sales Dept. and collect the
feedback from the clients. There can be no better opportunity to
interact with the external as well as the internal customers of an
organization. Finally the results of the research verify the fact that
keeping the customer satisfied is the best strategies to not only
TABLE OF CONTENTS
CHAPTER..:1-Introduction
1.1-History of cellular telephony in India
1.1.1-Cellular telephony
1.1.2-Cellular industry India
2-Industry profile
2.1-Key Players of Mobile Phone
2.7-Limitations
3-Company Profile
3.1-Story of Nokia
3.2-How it all began
3.3-Three companies which merge to form Nokia cooperation
3.4-Mobira city man: birth of a classic
3.13-Joint Ventures
3.14-Financial
3.14.1-Key data
3.14.2-Markets
3.14.3-10 Major markets, net sales
3.15-Personnel
3.15.1-10 Major countries, personnel
3.16- Acquisitions
3.17-Some of the Nokias major products
4-Marketing Strategies
4.1-Pricing
4.2-Production
4.3-Distribution
10
11
CHAPTER-1
Introduction
12
13
Cellular Telephony
The technology that gives a person the power to communicate
anytime, anywhere - has spawned an entire industry in mobile
telecommunication. Mobile telephones have become an integral
part of the growth, success and efficiency of any business /
economy.
The most prevalent wireless standard in the world today, is GSM.
The GSM Association (Global System for Mobile
Communications) was instituted in 1987 to promote and expedite
the adoption, development and deployment and evolution of the
GSM standard for digital wireless communications.
The GSM Association was formed as a result of a European
Community agreement on the need to adopt common standards
suitable for cross border European mobile communications.
Starting off primarily as a European standard, the Group Special
Mobile as it was then called, soon came to represent the Global
14
15
16
CHAPTER 2
Industry Profile
17
18
Industry Profile
Growth in India's mobile sector, from a humble start in the mid1990s, has really picked up pace in recent years, aided by higher
subscriber volumes, lower tariffs and falling handset prices. Home
to a clutch of global operators working with local companies, India
had almost 350 million mobile subscribers (including GSM &
CDMA) in early 2008.
The market was growing at an annual rate of around 60% and
while the ARPU has been steadily declining as competing
operators offer cheaper tariffs the usage levels have been high, thus
slowing the decline of ARPU. By 2008 there was a major push to
take mobile services into the poorer and rural areas of the country.
Driven by cheap call rates, low handset prices and rising incomes
among the estimated 300 million of the population that are
described as the country's middle class, the boom in India's mobile
market was continuing into 2008. Also operators were increasingly
eyeing the poorer rural areas a potential markets for their services.
India has continued to attract a lot of attention in the global
telecom sector, especially from foreign players interested in
entering the Indian market.
19
India's mobile market finished in the 2007 year strongly with over
233 million subscribers in the sector according to the telecom
regulator's figures which cover GSM, CDMA and Wireless Local
Loop (WLL). The Telecom Regulatory Authority (TRAI)
announced that the country had added a record 8.32 million
subscribers during November 2007, up from 8.05 million one
month previously. This was followed by 8.16 million in December.
By the end of 2004 and ten years after India had launched mobile
services, India had 47.4 million mobile subscribers, up from 28
million a year earlier, after the national subscriber base had grown
by 168per cent in 2004. A total of 19.2 million mobile subscribers
were added in 2004, compared with 17.5 million in 2003. GSM
operators added more than 1.5 million subscribers in 2004 to end
up with 37.4 million at the end of the year. CDMA operators had
9.9 million at end-2004, up from 6.2 million at the end of 2003.
In March 2005 it was reported that the average per minute charge
for mobile services in India declined by 58 per cent to 1.20 rupee
(US$0.27) during the quarter ending December 2005, compared
with 1.90 Rupee (US$0.043 during the previous quarter.
22
announced in April 2007, was 50 per cent higher that what had
been invested in the 12 year period to 2006. In anticipation of the
huge potential in both mobile penetration and the coverage area of
the networks, operators were planning a total capital expenditure of
US$10 billion each of fiscal 2008 and 2009. It was generally
agreed that significant growth opportunities existed in the rural
areas, where penetration remained around 1 per cent while
worthwhile growth prospects also remained in the urban areas
where penetration was running at 40 per cent at the time.
Furthermore, it was expected that mobile revenues would be
substantial enough to support the huge CAPEX committed to the
sector.
Although well behind China a terms of the total size of its mobile
subscriber base, a comparison of net growth by end 2006 was
interesting. Chain added a total of just fewer than 6.1 million
subscribers in December 2006, bringing the total additions for the
December quarter to just less than 18 million; India, by contrast,
added 6.25 million in December to being the total number of
additions to 19.5 million for the quarter.
25
Nokia
Motorola
Samsung Mobile
Tata Indicom
Reliance Infocomm.
Sony Ericsson
Virgin mobile
Sony
LG
26
27
28
Research Methodology
While making a study we very often look for what type of research
methodology is to be used in this type of study. For
implementation of a proper research methodology we have to first
understand the meaning of research.
29
Data collection
The word data means any raw information, which is either
quantitative or qualitative in nature, which is of practical or
theoretical use. The task of data collection begins after a research
problem has been defined and research design chalked out. While
deciding about the method of data collection, the researcher should
keep in mind that there are two types of data primary and
secondary.
1. Primary data
Primary data is the data which is collected by the researcher
directly from his own observations and experiences. For example,
if the researcher conducts a survey for the collected of data then it
is known as primary data.
Questionnaire method
For the collection of primary data I used questionnaire method. A
formal list of questions, which are to be asked, is prepared in a
questionnaire and questions are asked on those bases.
30
Sample Size
It gives the target population that will be sampled. This research
was carried in New Delhi & NCR. There were 25 respondents.
2. Secondary data
Secondary data is the data that have been already collected by and
readily available from other sources. Such data are cheaper and
more quickly obtainable than the primary data and also may be
available when primary data cannot be obtained at all.
The data collected for this project has been taken from the
secondary source.
Sources of secondary data are: Internet
Magazines
Publications
31
Newspapers
Broachers
32
LIMITATIONS
Research work was carried out in Delhi & NCR only.
The findings may not be applicable to the other parts of
the country because of social and cultural differences.
Shortage of time.
The views of the people are biased therefore it doesnt
reflect true picture.
Some of the respondents were not cooperative.
The sample size is confined to 25.
The consumers attitude may change in future due to change
in their
standard of living.
The reliability and scope of survey greatly relies on the
cooperation of the respondents.
33
34
Chapter 3
Company Profile
35
Story of Nokia
Follow the story of Nokia - a century and a half of innovation,
from a riverside paper mill in southwestern Finland to a global
telecommunications leader.
From roots in paper, rubber, and cables, in just over 100 years
Nokia becomes a powerful industrial conglomerate...
36
As mobile phone use booms, Nokia makes the sector its core
business. By the turn of the century, the company is the world
leader...
37
38
40
43
44
45
1981: The mobile era begins Nordic Mobile Telephone (NMT), the
first international mobile phone network, is built.
46
1982: Nokia makes its first digital telephone switch Nokia DX200,
the companys first digital telephone switch, goes into operation.
47
48
49
50
coupled
with
the
deregulation
of
European
What is GSM?
The Global System for Mobile communications (GSM) was
adopted in 1987 as the European standard for digital mobile
technology. This second generation mobile technology could carry
data as well as voice traffic.
GSMs high-quality voice calls, easy international roaming and
support for new services like text messaging (SMS) laid the
foundations for a worldwide boom in mobile phone use.
Nokia was in the vanguard of GSMs development, delivering its
first GSM network to the Finnish company Radiolinja in 1989.
Nokia launched its first digital handheld GSM phone, the Nokia
51
1011, in 1992. By the end of the 1990s, Nokia had supplied GSM
systems to more than 90 operators all over the world.
52
53
As adoption of the GSM standard grew, new CEO Jorma Ollila put
Nokia at the head of the mobile telephone industrys global boom
and made it the world leader before the end of the decade...
Nokia launches the 2100, the first phone to feature the Nokia Tune.
55
56
Ringtones have come a long way since 1994, and new phones offer
dozens of choices in a variety of formats. With the right phone,
you can even create your own.
57
59
2007
Nokia recognized as 5th most valued brand in the world. Nokia
Siemens Networks commences operations. Nokia launches Ovi, its
new internet services brand.
2008
Nokia's three mobile device business groups and the supporting
horizontal groups are replaced by an integrated business segment,
Devices & Services.
60
With 3G, mobiles can do much more than just make calls. 3G
means you can use your phone to:
Download music
Make video calls
61
Nokia today
Today, Nokia is still the worlds number one manufacturer of
mobile phones, and one of the leading makers of mobile networks.
In 2006, Olli-Pekka Kallasvuo, formerly Nokias Chief Financial
Officer, took over as CEO from Jorma Ollila, who became
chairman of Nokias Board of Directors.
The next step in Nokias continuing evolution is already under
way. In June 2006, Nokia and Siemens announced plans to merge
62
63
Structure of Nokia
64
Production Units
65
66
Networks technology
Mobile devices
and technology
China
Brazil
Finland
China
Germany
Finland
India
Great Britain
Hungary
India
Mexico
Romania
South Korea
Joint ventures
Nokia has entered into several joint ventures over time, particularly
in the areas of manufacturing and research and development.
67
Development
and
production
of
cellular
radio
network
Established 1992
Implementation of a DX 200 digital switching system project
Partner Sapura Holdings
72
Financial
Key Data
March 2009
2009
2008
Change
EURm
EURm
Net sales
50 710
51 058
-1
Operating profit
4 966
7 985
-38
4 970
8 268
-40
3 988
7 205
-45
5 636
73
2009%
2008 %
54.8
-62
74
MARKETS
march 2009
2009
2008
EURm
EURm
China
5 916
5 898
India
3 719
3 684
UK
2 382
2 574
Germany
2 294
2 641
Russia
2 083
2 012
Indonesia
2 046
1 754
Countries
75
USA
1 907
2 124
Brazil
1 902
1 257
Italy
1 774
1 792
Spain
1 497
1 830
Personnel
2009
2008
Change,
%
61 130 53 523 14
NAVTEQ
4 049
60 295 58 423 3
76
Corporate Common
Functions
Nokia Group
355
316
125
112
829
262
77
12
12
2009
2008
Finland
23 320
23 015
India
15 562
11 491
China
14 505
12 856
Germany
12 309
13 926
Brazil
8 557
8 527
USA
8 060
5 269
Hungary
7 541
6 601
UK
4 313
2 618
Mexico
3 559
3 056
Italy
2 007
2 129
78
Acquisitions
During the past few years Nokia has been actively acquiring
companies with interesting new technologies and competencies,
including also investments in minority positions. All of these
acquisitions and investments were targeted to enhance Nokia's
ability to help create the Mobile World.
Date
Acquisition Target
Nokia Unit
Services
December 2,
Nokia
2008
November 4,
2008
Symbian
OZ Communications
PLAZES
NAVTEQ
Trolltech
December 4,
2007
Corporation
Services &
Software
Services &
Software
Nokia
Corporation
Devices
Enterprise
Avvenu
solutions
79
October 8, 2007
Enpocket
Twango
Nokia
Corporation
Multimedia
Multimedia
Multimedia
Tahoe Networks
Networks
Enterprise
Solutions
Nokia
Corporation
Nokia Networks
Nokia Mobile
Phones
Nokia Internet
Eizel Technologies(TM)
Nokia Networks
Nokia Networks
F5 Networks Inc.
Nokia Internet
80
Communications
Communications
December 7,
2000
December 13,
1999
Nokia Internet
Communications
Nokia Mobile
Phones
Nokia Networks
Nokia Internet
Communications
Nokia Wireless
Network
Solutions
Nokia Internet
Communications
September 2,
Rooftop Communications
1999
Corp
Aircom International
Nokia Networks
Nokia Mobile
WARE Group
Phones
Nokia Networks
Nokia Wireless
In Talk Corp
Business
81
Communications
February 16,
Diamond Lane
1999
Communications
December 18,
1998
September
17,1998
NE-Products Oy
Nokia Networks
Nokia Internet
Communications
Nokia Mobile
Phones
Nokia
Communications
Products
Matra Nortel
Nokia Mobile
Communications
Phones
Nokia Networks
82
Nokia X3 Specifications
Network
Technology
Battery
Capacity
860 mAh
Standby
288 hours
Talk time
240 mins
Built
Dimensions
96x49.3x14.mm
Weight
103g
Form factor
Slide
Colors
Display
Size
Type
color : TFT
Colors
262144 colors
Camera
Resolution
2048x1536 pixels
Zoom
4x
83
Flash
No
Video recording
Video formats
Media
Audio playback
Yes
Audio formats
Ring tones
Streaming
Yes
F M radio
Yes
Memory
Inbuilt
46 MB
Memory slot
Brand
Nokia X6 Specifications
Network
Technology
Battery
Capacity
1320 mAh
Standby
Talktime
Built
Dimensions
111x51x13.8 mm
Weight
122g
Form factor
Candy bar
Colors
Touch screen
Yes
Display
Size
360x640 pixels
Type
color : TFT
Colors
16000000 colors
Camera
Camera
5.0 Megapixel
Resolution
2592x1944 pixels
Image formats
EXIF / JPEG
Zoom
4x
Video recording
Video formats
Secondary camera
Yes
Media
Audio format
Polyphonic
FM radio
Yes
Streaming
Yes
Memory
Inbuilt
32 GB
Yes
Brand
Technology
Battery
Capacity
1320 mAh
Standby
8 hours
Talk time
500 mins
Built
Dimensions
110.9x59.8x18(19.55) mm
Foam factor
Slide
Weight
181g
Colors
Black
Dedicated keys
Qwerty
Yes
86
Touch screen
Yes
Stylus
Yes
Music keys
Yes
Display
Size
480x800 pixels
Type
color : TFT
Colors
16000000 colors
Camera
Camera
5 MP
Resolutions
2584x1938 pixels
Image formats
EXIF / JPEG
Zoom
3x
Flash
Yes
Video recording
Yes 25 fps
Video formats
MPEG-4
Secondary camera
Yes
Media
Audio playback
Audio formats
Video formats
Ring tones
Yes
AAC / AAC+ / eAAC+ / MP3 / M4A /
WMA / WAV
MPEG-4 / 3GPP H.263 / H.264/AVC /
Xvid / WMV 9
wav,mp3, AAC, eAAC, wma
87
FM radio
Yes
Streaming
Yes
Memory
Inbuilt
32GB
Yes
88
Chapter 4
Marketing
Strategies
89
90
Marketing strategy
Marketing Strategies of a company in a new country plays a vital
role in determining its future in that country. Knowing that Indian
market is very different from other markets it was already
operating in, Nokia came up with an Indiaspecific strategy or a
global strategy. It adapted to the Indian conditions by launching
new products and enhancing the products with features designed
specifically for local customers, as well as promotional campaigns
targeted at Indian audience to gain a foothold in the market.
To capture the widespread Indian market, it developed an
extensive distribution network which also helped it take its
products to rural markets in India.
91
Pricing
Pricing of the phones was of prime importance for success in India.
Being a developing country, the purchasing power of the people
was not high as compared to other developed countries.
Research unveiled that phones of lower price range (below
Rs8000 or $200 approx.) amounted for 65% of the total sales in
India. Nokia depended majorly on rural markets, therefore pricing
was a major success factor for the company. Nokia did achieve
success in India, in spite of the fact, that its handsets were not the
cheapest in the market.
Nokia 1100, which was specially launched for India, was priced at
Rs. 4000. This price, although was at a premium as compared to
entry level phones, but was enhanced with several special features
which were not available in other phones of the same price. The
head of marketing at Nokia India,
Sanjay Behl said, The phone is a combination of product benefits
and pricing. This model further became the best selling model
ever in India. It also increased the brand preference of Nokia from
66% to 77% within 9 months of its launch.
The major strategical move by Nokia in this regard was that it
charged a lower price in India than most of other countries for the
same model.
Production
Some different ways of promotion were as.
92
Place (Distribution)
Mobile phones in India are considered as to be consumer durable,
hence they are not just sold through exclusive telecom retailers
but also through general retailers. Nokia designed modeled
its distribution strategy on lines of FMCG business.
An important reason for the success of mobile phones in India was
limited reach of the landline phones in several parts of the
country. By mid 2005 the mobile phone sales in smaller towns and
cities was higher than those of the metropolitans. The sales in these
93
Promotion
Nokia entered India with one for mobile services to start, and had
to establish its non-popular brand.
To build credentials the company used both print and
television campaigns.
In the early days, print media concentrated on Nokias status,
global R&D and international awards won to establish brand
awareness. Even after the market grew, Nokias advertisements
concentrated on product attributes.
94
96
97
98
Chapter 4
99
100
Number of persons
Percentage
20
80
20
25
100
Influence:
On the basis of the above analysis it has been concluded that
around 80% people have mobiles and 20% of them do not have
mobile phones.
101
Particulars
Percentage
Nokia
Number of
Persons
14
1
2
Samsung
28
Others
16
Total
25
100
56
Nokia
Samsung
others
Influence:
102
On the basis of the above analysis it has been inferred that around
56% are the users of Nokia from the sample study of 25 people.
103
Particulars
Number of
respondents
Friends
5
Advertisements 18
Family
2
Total
25
Percentage
20
72
8
100
Friends
Advertisements
Family
Influence:
104
Serial no.
Particulars
Design &
Looks
User Friendly
Brand Name
Total
2
3
Number of
Respondents
4
Percentage
7
14
28
56
100
105
16
Design
User Friendly
Brand Name
Influence:
It is understood that, majority of the respondents i.e., 56% of the
respondents preferred Nokia mobiles due to its brand image and
next majority, i.e. 28% of the respondents preferred it due to its
User Friendliness while remaining opted due to its design.
106
Serial no.
Particulars
Number of
Percentage%
Respondents
1
YES
21
84
NO
16
Total
100
YES
NO
Influence:
On the basis of the above analysis it has been inferred that around
84% thinks that Nokia is value for money.
107
108
Attributes
Number of
Percentage%
Respondents
1
Highly
10
40
satisfied
2
Satisfied
11
44
Not satisfied
16
Total
100
109
Influence:
Above study shows that 40% and 44% are highly satisfied &
satisfied with the Nokia respectively while 16% are not satisfied.
Attributes
Number of
Percentage%
Respondents
1
Highly
16
satisfied
2
Satisfied
13
52
Not satisfied
32
Total
100
110
Influence
:It is quite understood that on the basis of above study 52% of the
customers are satisfied with Nokia on the basis of its price.
Attributes
Number of
Percentage%
Respondents
1
Highly
20
satisfied
2
Satisfied
12
48
Not satisfied
32
Total
100
111
Influence:
On the basis of above study it is understood that majority of the
people are satisfied with the variety provided by Nokia.
Interpretation:
It is understood that the users of Nokia mobiles are quite satisfied
with the
Brand image of Nokia and with its pricing strategies, but
dissatisfied with the varieties.
112
113
Chapter 6
Conclusion &
Recommendation
114
Conclusion
Gaining and maintaining consumer preference is a battle that is
never really won. Continued and consistent branding initiatives
that reinforce the consumers purchase decision will, over time,
land the product in consumer preference sets. Most of the
consumers prefer Nokia mobiles due touts strong brand image, and
the main factor forcing the customers to buy Nokia mobiles is
advertisements through the print and electronic media.
Customers are brand loyal towards Nokia.
They are not shifting to any other company in-spite of
attractive offers.
Nokia is not targeting the rural market.
Market share of Nokia has been by the unorganized sector
but not to a great extent.
Nokia is not left behind in advertisements as compare to
other companies.
115
116
RECOMMENDATIONS:
TV advertisements can be renewed explaining the product
feature and aggressive marketing will help the company.
The company can adopt new strategies and policies to
overcome the competition.
Nokia needs to improve its marketing strategies as new
Indian mobile end features.
Nokia should also target the rural market to increase its
market share.
Nokia should improve its after sales services.
The company should bring the new varieties in all segments
of its products.
117
Bibliography
The above data is collected from the following sources:
Internet
www.nokia.world.com
www.sonyericsson.india.in
www.comparemyphone.com
www.mycellphone.com
Book
.T.N. Chabra and S.K. Grover, Marketing Management,
Dhapat Rai Publications.
Kotler Philip, Marketing Management South Asian
perspective , XII edition, published by pearson education.
C.B.GUPTA, Marketing management VIII Edition,
published by sultan chand & sons.
Kothari, C.R. Research methodology, 3rd edition, 1997,
Vikas Publishing House Pvt. Ltd, New Delhi
118
ANEXURE
QUESTIONNAIRE
Name: Prabhjot kaur__________________________
Age: ___20__ years
Occupation:_Student______________
Q1. Are you using a mobile?
a) Ye s
b) No
Q2. Which company handset are you using?
a) Nokia
b) Samsung
c) Motorola
d) Sony Ericsson
e) Others
Q3. Are you satisfied?
a) Ye s
b) No
Q4. Are you aware of the brand Nokia?
a) Yes
b) No
119
Q8. Do you think Nokia mobile phones are value for money?
a) Ye s
b) No
Q9. What according to you is the most important additional feature
that should be present in a
Mobile phone?
a) Integrated camera
b) Bluetooth
120
c) Mp3
d) MMS
e) Others
Q10. How important is after sales service in the mobile industry?
a) Very important
b) Important
c) Average
121