A Project Report On Nokia
A Project Report On Nokia
A Project Report On Nokia
Topics Page
No.
1. Intro
ducti
on 4
2. Abou
t the
comp
any
Nokia
5
3. Nokia
in
India
7
4. SWO
T
Analy
sis 10
5. Mark
eting
Strat
egy
12
5.1 Product 13
5.2 Pricing
16
5.3 Place 18
5.4 Promotion 21
6. Produ
ct
Life
Cycle
27
7. Concl
usion
30
8. Reco
mme
ndati
ons
32
9. Biblio
graph
y 34
Introduction
About Nokia
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. Recently, Nokia joined other mobile
phone manufacturers to embrace Taiwanese Original Device
Manufacturers.
Nokia’s Vision:
Their ‘Connecting People’ tagline states their vision to create a
world where everybody is connected every
moment, everywhere and at any time. Their goal is to build
great mobile products that enable billions of people worldwide
to enjoy more of what life has to offer. Their challenge is to
achieve this in an increasingly dynamic and competitive
environment.
Nokia in India
Nokia has been the pioneer of mobile telephony in India, the
existence here is from 1994. As noted above, the first ever GSM
call in India was made on a Nokia 2110 on its own network.
Although the conditions in Indian telecom industry were not
very conducive, Nokia maintained an aggressive strategy.
Import of mobile phones was not easy and the tariff applied on
them was as high as 27%. Consumers too were not interested
in purchasing mobile phones as call rates were as high as Rs16
per minute ($0.40).
Another problem faced by Nokia was highly competitive
environment in the industry. Powerful global players like
Motorola, Siemens, Sony and
Ericsson already had their presence in India in consumer
durables, electronics and engineering sectors, and hence were
aware conditions
prevailing in Indian market.
The industry got a new life in 1999, when the
Government of India announced a new telecom policy. The plan
was to provide telephones on demand by 2002. A major point
of the policy was to allow unrestricted private entry into almost
all mobile service sectors. The mobile service providers were
allowed to share their infrastructures with other operators. It
also helped the private operators to break even faster by
allowing them to migrate from fixed license to one-time entry
fee with revenue sharing.
SWOT Analysis
Strengths:
Experience – 142 years of History
Strong Financial Support for R&D
Largest Network of Selling and Distribution
Strong Customer Relation
Wide Range of Product for all class
High Resale Value compared to other competitors
Durability
Long Battery Life
User Friendly
Global Expansion
Weakness:
NGage is a flop
Low Voice Quality
Less Stylish in low priced products.
Heavy Sets
Market Skimming Prices of High Sets
Unlike I-Phone, N97 is complex, tough and not user
friendly.
Opportunities:
Increase their presence in the CDMA market, is still
dominated by LG, also concentrate on 3G and Edge
New growth markets where cell phone adoption still has
room to go, including India and other countries.
Other Hand Held Devices
Improvise on Quality of Camera
Mini Notebooks
Threats:
China Mobiles – it has made exact copy of Nokia N96
Cheap and Wide Range Models from Motorola
I-phone Apple – A fierce competitor for Nokia N97.
Marketing Strategy
Marketing strategy 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 India–specific
strategy or a glocal 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.
Here, to discuss the strategy, we consider the simple concept
of 4 P’s, namely; product (customization), price, place
(distribution) and promotion.
PRODUCT:
1998 was 51st year of Indian independence, hence Nokia
provided the ring tone of National son “Saare Jahan se
Achha ye Hindustan Hamara” in 5110 model. The
introductory offer for this model also had inter-changeable
covers. The success of 5110 initiated Nokia to focus on
feature-specific localization. In1999, Hindi (national
language, and mother tongue of 43% Indians) user
interface was provided in Nokia 3210. Also, Nokia also tied
up with Sony music for top 20 hit songs as ring tones. Nokia
3210, became an instant hit. The model 3610 was launched
with an enhancing Hindi text messaging facility in 2001.
The most successful customization came in 2003 when
Nokia came with 1100 and 1108 specifically designed for Indian
market. It had features of anti-slip grip, dust resistance and
torchlight. Since, in India people don’t know English in villages,
Nokia came up with “Saral Mobile Sandesh” (SMS in Hindi).
Nokia sales increased from 58.2% in July 2003 to 59.6% in July
2004.
Nokia was also the first handset manufacturer to launch
games download in India in 2003. It had spearheaded the
industry in online distribution of tones, graphics and game
downloads. These services did not just increase their sale of
mobile phones but were also fruitful as they made huge profits
by selling the games. In 2005, Nokia also launched games
based on Indian mythology namely ‘Makhan chor’ and
that the Hindi film industry has churned out. There could have
been no
better option than this flick, which is liked by every age group
equally," said Vineet Taneja, business director of multimedia,
Nokia India. (Web 11)
In another attempt to give India handsets which will
enable them to use more features, Nokia is in process of
making cheap GPRS enabled handset. In this handset, the
users can surf the net at a very reasonable price. Again
targeting the low and middle income class, who are interested
in using the new facilities available. "We are planning to bring
internet access to all the masses in India through our low-cost
handsets... the company is working diligently towards it," said
Nokia's Senior Vice President - Entry Business Unit (Mobile
Phones Business Group) Soren Peterson in an interview. (Web
13)
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 market, 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” (Web 14). 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. This
show how nature of Indian consumer is value sensitive. 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.
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 Nokia’s status, global R&D
and international awards won to establish brand awareness.
Even after the market grew, Nokia’s advertisements
concentrated on product attributes.
Gaining acceptance of Indian consumer is not as simple
as other
countries. India is a multicultural country, where people have
strong believe in their mythology, nationality and cultures and
to add to it, their purchasing power was not as high as other
countries where Nokia was operating. Hence, to achieve
approval of the mobile consumers in India, Nokia decided to
localize its products heavily. For the purpose of developing the
products specifically for markets with high population and low
penetration, Nokia developed a team called Mobile Entry
Business Unit.
Until 2003, Nokia used all their international
advertisements with slight modifications in India. For instance,
the advertisement for NGAGE showed two young persons
getting bored stuck in traffic jam and then they show them
combat with super natural powers. It showed how NGAGE could
help them pass their time. But it did not have a very good
affect on the Indian audience as they could not relate
themselves to the people over there. There was needed to
make special advertisements for India.
Nokia ran a digital and radio campaign for about four weeks
inviting the twins in the city to launch the new Nokia dual SIM
phones and become Nokia’s Brand Ambassadors for a day. The
festival saw the presence of twins aged between 15 months to
48 years enjoying themselves as they participated in games
and various fun activities organized by Nokia. The event was
especially designed and themed around ‘the twin power’.
PRODUCT LIFE CYCLE OF NOKIA PRODUCTS
Development: When mobile phones were first introduced
they were low quality technology (bad reception, poor
reliability and had a short battery life), high priced (around
£100 for a basic model) and consumers had to be
persuaded to buy mobile telephones, as they were not yet
established as a necessity. When products are first
released, companies can expect high promotion fee's as
the public are probably not yet familiar with the product.
Also when mobile phones were first released they were
bulky and hard
to use, as product design and development are a key
figure in success, Nokia had to design phones that were
smaller and simpler for consumers to use. As people had
paid a lot for earlier, more primitive products they were
obviously not going to pay the same high prices for later
products so Nokia had to develop phones that could be
sold for less and would last longer, this is where
companies can expect to pay high production costs.
Nokia typically gives a seven day window to its
exclusive stores which showcase the product and create
the required hype.
CONCLUSION:
With the launch of Nokia in the Indian Market it followed
an aggressive marketing campaign through constant
advertisements on television and newspapers. Its tag line
“Connecting People” states connecting people near and
far in various geographical locations with the help of a
Nokia mobile. An impressive strategy by Nokia was to
flood the Indian mobile market with various mobile models
so that Indian mobile enthusiasts can find mobile handsets
which suit their requirements and life style. With the help
of this strategy Nokia captured the Indian market and
became the household name and one of the most
preferred brands in the country. Unique Taglines of Nokia
mobiles
I – capture moments – first Nokia handset 7650i to feature
camera, “I” referred to camera
Made in India – used for the handset Nokia 1100 and this
was the first mobile to feature a torch on a mobile’s top
the advertising strategy was aimed at the low end
consumer
Mobile Phones no longer for talking – this campaign was
used for the re-launch of handset Nokia 6600 it simply
defined all gaps mobiles have bridged in terms of
technology advancements, distance coverage and
entertainment and conveyed that mobiles are no longer a
device only to talk.
A New Life – this was used for Nokia N series (handsets)
and became an instant hit
RECOMMENDATIONS:
I have found out some areas where Nokia should emphasise
more so that it continues to be the market leader and have an
edge over its competitors. These include further focus on –
1) Product competitiveness: -
The products of Nokia should be superior or at least at par with
the competitors’ regarding technology, designing and features
etc.
2) Customer satisfaction: -
Nokia should come up with more value added products and
effective after-sales services i.e., service centres should be
well-equipped to handle customer concerns and there should
be proper co-ordination between them. It should focus on
customization to gain greater customer satisfaction.