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Submitted In Partial Fulfillment of Requirements for the Award of the Degree Of BBA Of Punjab Technical University Under The Guidance Of MR. JAGJIT SINGH

Submitted by Bhupinder Narang Roll no.104142461752



Certificate of supervision

This is to certify that Mr. Bhupinder Narang S/o S. Ram Nath Narang Roll No 104142461752 has completed the research project COMPARATIVE STUDY OF NOKIA MARKETING under my supervision in partial fulllfilment of BBA degree approved by ACITE of PTU.

Signature of supervision Place: Date: SHRUTI BATRA

Seal of Dean

I hereby declare that the research project COMPARATIVE STUDY OF NOKIA MARKETING titled is my own original work and this report has not been submitted to any university and institute for award of any professional degree/diploma.

Date : Place: Signature of candidate Bhupinder Narang Roll No: 104142461752

Table of Contents
1- Dedication ---------------------------------------2- Preface ---------------------------------------3- Acknowledgement ---------------------------------------4- Introduction to Organization ------------------------1.1 1.2 History of Nokia Company --------------------Nokia Introduction ----------------------------

LIST OF NOKIA PRODUCTS---------------------------5- Organizations Network ----------------------------------------

6- Marketing Objectives -------------------------------MARKETING CONCEPT ------------------------------CONSUMER BUYING BEHAVIOUR-----------------------------------CUSTOMER DRIVEN MARKET STRATEGY---------------------------Article I. Article II. Article III. Article IV. Article V. Market Segmentation Market Targeting Market Positioning Market Mix 4Ps Positioning Strategy (slogan, logo.)


7- Target Market ---------------------------------------8- Portfolio Analysis ---------------------------------------9- Micro & Macro Environment ------------------------10- Competitive Analysis --------------------------------11- Marketing strategy ---------------------------------------12- Suggestions ---------------------------------------13- References ----------------------------------------

In this era, where the technology is growing in a very faster speed and every positive change is bringing new and enhanced features with them, the cellular phones are at the very hot issue in this growing technology . The technologies in these cellular/mobile phones are enhancing and developing day by day, including new features of entertainment, and multiple options like imaging facilities, movie/animation features, sound technologies etc.

When the technology is the matter, every consumer/user prefers the latest, best and interacting featured technologies and also prefers these facilities in less cost. So, in this view, there is a very big and fast competition between many companies/manufacturers of cellular phones at the world level.


I gratefully acknowledge the succor, support and favor extended to me and my project guide Mr. Jagjit Singh (Branch Manager), whose continuous supervision, expert guidance, ceaseless motivation and unfailing courtesy stood by me in executing this arduous work from its conception to completion. I wish to thank all department-heads who in spite of their pre occupation and busy schedule in the office, left no stone unturned in enhancing my knowledge, skills and will to achieve the desired target. The purpose of this acknowledgement will be incomplete if I fail to mention the continuous inspiration and support offered by the faculty of BBA of B.I.S Group Of College. This project has given me the opportunity to work and observe from close quarters, the functioning of one of Indias largest and most prestigious companies. The completion of this project fills me with a sense of achievement and satisfaction.

Bhupinder Narang

Introduction to the Organization Company Information:NOKIA is the world leader in mobile communications backed by its experience, innovation, user-friendliness and secure solutions.It is a very well knowned company having its vast offices world wide. Their specialized product is cellular phones. They have many house hold items as well. A lot of brands selling and manufacturing cell phones and mobiles are in the market but Nokia cell phones are the leaders in the race. With over a dozen varieties and models lining up every day the customer is left in confusion as to what to buy. With the market gearing up with new companies in the foray Nokia manufactures have accepted the challenge. They are coming up with latest technologies being put to test. The company believes in customer satisfaction and that is the success of their being the leaders in cell phones.

Who are the Nokia company?

"Nokia is the world's leading mobile phone supplier and a leading supplier of mobile and fixed telecom networks including related customer services." That is a quote directly from their web site Nokia.com. That is a big statement so are they really as big as they claim. Especially considering the emergence of Apple into the phone market. Nokia are a multinational corporation from Finland with a global annual revenue of over 40 billion euros and over 130000 employees world wide.

What are Nokia?

Nokia are the worlds largest manufacturer of mobile phones with around 30% global market share.

Where are Nokia?

Headquarters are in Kelaniemi in Espoo near to Helsinki. They are multinational having employers in over 120 countries. THey are also found on the internet at Nokia.com and also on many of the country specific sites.

A brief history of Nokia

Nokia is one of the world's biggest manufacturers of mobile phones. In the 2nd quarter of 2008, it was able to grab 80% share from the global market. It elevated Finland to being an even wealthier country accounting for 30% of it's GDP. Nevertheless, the success of Nokia started from its modest launching. Nokia was born in 1895 when Frederick Idestam built a pulp mill. Originally located in Tampere, a southwestern city in Finland, the company transferred to the town of Nokia so it could utilize the river of Nokianvirta. The company took its name from this river, which was used for the production of hydroelectric power. Nokia as we know it today begins in 1967 with the aquisition of the Finish Cable Works, a telegraph and telephone cables company. Nokia started producing lots of products ranging from newspapers, footwear, bicycles, car tires, televisions and communication cables t personal computers, aluminum capacitors and electricity generation equipment, etc. The decision to alter its operations to mobile communication gadgets started in the 60s. The 1960s saw Nokia creating military and marketable mobile radio communications. Together with Salora Oy, Nokia created the first VHF radio in 1964. From then on, these two companies combined their efforts and started creating mobile phones following the NMT network standard. Senator Mobira, their first car phone weighing 9.8 kg, was launched in 1982. The merging of Nokia and Salora Oy in 1984 saw the emergence of Nokia-Mobira Oy that concentrated on telecommunications. The initial mobile phone was introduced in the same year - the Mobita Talkman. Nokia launched the best mobile phone on the planet at that time, the Mobira Cityman 900, in 1987. Weighing 800g, Mobira Cityman 900 was the lightest phone on the market. Even though it was sold at about ?4,500, Cityman still gained wide acceptance. From Nokia Oy Mobira, Nokia was born in 1988. Deciding to concentrate on the telecommunications division in 1992, Nokia introduced the Nokia 1011, its first GSM handset in the same year. Two years after that launch, the company introduced their Nokia tune. The tune was featured in the Nokia 2100 model. Nokia's triumph carried on until the 1st world satellite phone call was made using a Nokia mobile phone in 1994 and in 1997 Nokia introduced its first game on a mobile - Snake. Nokia the largets manufacturer of mobile phones in 1998. Their 1st WAP ready mobile phone was launched in 1999 via Nokia 7110. Nokia's first 3G phone, the Nokia 6650, was launched in 2002 and it made them billions of dollars. And so the story continued - rigt up until the smartphone takes hold of the market. At the presnt time Nokia have some major problems as they are losing market share to several

rivals. Only time will tell if Nokia can survive in its present form. But history tells us that this dynamic, innovative company should bounce back at some stage. No, we don't repair Nokia phones. But, we can help you get photos off your phone and onto your computer if you're having problems.


Nokia Introduction
Nokia is the world leader in mobility. They make a wide range of mobile devices, services and software that enable people to go beyond communications to navigation, music, video and more. Nokia is not only the world leader in mobile phones. They are also the worlds largest camera manufacturer and a leader in digital music. Mobility has the power to help economies grow and societies develop. It is changing the world, in developed and developing countries alike. Their vision is to release this potential by extending mobile access and allowing people to do more on their mobile devices. Nokia is a truly global company, headquartered in Finland. They have sales in more than 150 countries. Nokia has worked in partnership with WWF since 2003 to raise environmental awareness among our employees and on other environmental activities. Nokia joined several other major mobile manufacturers in 2007 to sign a voluntary agreement based on the results of the European Commissions Integrated Product Policy pilot project on mobile phones. The project focused on finding how the mobile phone industry can reduce the environmental impact of its products throughout their lifecycle. The agreement includes three key commitments: Produce an index of environmental facts for each mobile product to enable consumers to compare products easily. Increase consumer communications about unplugging the chargers and safe disposal of phones. Include a default on-screen message on all new products to unplug chargers once the phone is fully charged. While buying a product consumers are prone to various demographic changes. These changes affect their buying behaviour.


Youngsters- their buying decision is influenced mainly by the fashion or trend, latest model,
prestigious brand etc., basically for them its the need of fashion , style. their buying decision is influenced by their peer group , friends and relatives.

30 TO 45 YEARS- their buying decision is always affected by the need. Their buying is
someway affected by the going on trend but in the boundary of their purchasing power. Their buying decision is influenced by the price , quality etc.

SENIOR CITIZENS- their buying decision is affected by the need of being connected with
others. It is the need of their age.


METROPOLITAN CITIES-as life is very fast in metropolitan cities their buying decision
is influenced by their high lifestyle, wealth, their status in the society and moreover the fashion or trend. In most cases they are least bother about the price for them fashion ,trend, quality comes first.

RURAL SECTOR- their buying decision is influenced by the income. Nokia offers product
range of varying prices from low to high helps the consumer in their buying decision according to their purchasing power. Their buying decision is influenced by the price , affordability, ease of use, services providing good value etc.

URBAN SECTOR- their buying decision is influenced by the need of the hour, their purchasing
power, available model. Their buying decision is influenced by the fashion, trend also as some of the population in urban sector is influenced by the fashion


Nokia Corporation is a Finnish multinational communications corporation that is headquartered in Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki. Nokia is engaged in the manufacturing of mobile devices and in converging Internet and communications industries, with over 123,000 employees in 120 countries, sales in more than 150 countries and global annual revenue of EUR 41 billion and operating profit of 1.2 billion as of 2009. It is the world's largest manufacturer of mobile telephones: Nokia produces mobile devices for every major market segment Nokia is a public limited liability company listed on the Helsinki, Frankfurt, and New York stock exchanges. It is an important employer in Finland and several small companies have grown into large ones as its partners and subcontractors Nokia increased Finland's GDP by more than 1.5% in 1999 alone. In 2004 Nokia's share of the Finnish GDP was 3.5% and accounted for almost a quarter of Finland's exports in 2003. In recent years, Finns have consistently ranked Nokia as one of the best Finnish brands. In 2008, it was the 27th most respected brand among Finns, down from sixth place in 2007.

(The Nokia House, Nokia's head office located by the Gulf of Finland in Keilaniemi, Espoo, was constructed between 1995 and 1997. It is the workplace of more than 1,000)


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. It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding: A) the timing of product and solution deliveries; B) our ability to develop, implement and commercialize new products, solutions and technologies; C) expectations regarding market growth, developments and structural changes; D) expectations regarding our mobile device volume growth, market share and prices, E) expectations and targets for our results of operations; F) the outcome of pending and threatened litigation; and G) statements preceded by "believe," "expect," "anticipate," "foresee," "target," "designed" or similar expressions are forward-looking statements. Because these statements involve risks and uncertainties, actual results may differ materially from the results that we currently expect. Factors that could cause these differences include, but are not limited to: 1) the extent of the growth of the mobile communications industry and the new market segments in which we have recently invested; 2) price erosion and cost management; 3) timing and success of the introduction and roll-out of new products and solutions; 4) competitiveness of our product portfolio; 5) our failure to identify key market trends and to respond timely and successfully to the needs of our customers; 6) the impact of changes in technology and the success of our product and solution development; 7) the intensity of competition in the mobility industry and changes in the competitive landscape; 8) our ability to control the variety of factors affecting our ability to reach our targets and give accurate forecasts; 9) the availability of new products and services by network operators and other market participants; 10) general economic conditions globally and in our most important markets; 11) our success in maintaining efficient manufacturing and logistics as well as the high quality of our products and solutions; 12) inventory management risks and ramping up or down production at our facilities, which result from shifts in market demand; 13) our ability to source interruption and at acceptable prices;

quality components without



Nokia is looking to commit business all over the world and in this regard it has got lot of success and now this is the world leader in the mobile phone industry. Pakistan is one of its target market and it has launched many mobile products in Pakistan.

Nokia N97 to begin selling in Pakistan Today

Earlier, Nokia N97 was officially launched on 12th June at a grand launch ceremony held at Marriott Karachi. Along with a tilting 3.5 touch display, QWERTY keyboard and a fully customizable home screen, the Nokia N97 promises to offer instant access to the full range of Ovi services. The device was announced at a glamorous press event where two European models brought the phone at the venue and the Finnish First Secretary, Deputy Head of Mission H.E Miia Rainne handed over the phone to the GM Nokia Pakistan Imran Khalid Mahmood.

"Delivering on Nokias vision and thought leadership based on mobile convergence, Nokia Nseries has aimed to present the best in class mobile computers to its internet savvy consumers. " said Imran Khalid Mahmood, GM Nokia Pakistan. "Today, we take great pride in introducing the newest addition to Nokia Nseries Nokia N97.


The Nokia N97 is a S60 5th Edition mobile computer with a large 3,5, bright nHD (640 x 360 pixels and 16:9 aspect ratio) TFT color display with resistive touch screen and tactile feedback. The device provides excellent user experience for internet and entertainment by combining qwerty keyboard with touch UI and Home screen functionality. Use the N97 to connect to mobile broadband using WLAN or HSDPA (3.5G). Find directions and locations with the integrated A-GPS and included maps. Additional features include game titles with N-Gage, a 5 mega pixel camera with dual LED flash and automatic geotagging of images and videos. Nokia has announced that the N97 touch screen smart phone is available to U.S.

Nokia N97 gallery


SWOT analysis is also another way of deciding on a successful marketing scheme, we must look at strength, weakness, opportunity and threat.

Strength (internal factors)Is looking at the companies current market share and researching how recognised Nokia is amongst consumers in the target market. Nokia is currently one of the most popular Mobile communications companies in the industry, generating over 52,000 sales in 1997, which was a 34% increase from 1996. Nokia's net sales for the October-December period in 1997 came to a total of FIM 15 857 million (FIM 12 669 million in 1996).

Weakness (internal factors)This is basically looking at where the product is failing or not doing as well as it should in the market. Nokia's problems are that: 1. They are currently aiming their products at a saturated market segment. 2. Their wage costs are forever rising. 3. Higher import charges have now been put into place. 4. There are some quite high supply chain costs that Nokia are currently paying.


Opportunity (external factors)This is the area in which Nokia can make more profit, or gain more market share. There are 2 ways in which Nokia can currently do this: 1. Improve the technology that they are using to make their phones and use in their products, for example, camera phones and advanced picture messaging would attract new consumers to purchase phones under the Nokia brand name. 2. Using innovation to re-invent their products, change and develop within the market to offer something none of the competitors have. Also the fact that phone call charges are being forced to fall should prove to be an opportunity for Nokia to sell to the people, who previously may have not purchased a phone because of higher call charges.

Threat (external factors)This is looking mainly at the competition that are taking away Nokia's current market share and also government legislations (the total costs of 3G licensing in Europe is 110 billion euros) that could hinder Nokia's development as a company. For an existing product it is often useful to draw up an Ansoff's matrix, in order for Nokia to grow as a business we must look at: Market penetration Market development Product development and Diversification


These cells come in slides, flips, smart phone and standard models. The brand boasts of varied features like Bluetooth, color screen, 3G, GPRS, GPS, IRDA, Infrared, Java enabled, MMS enabled, MP3 player, Polyphonic ring tones, Radio, Snap on cover, USB, Streaming video, Vibration, etc along with cameras with VGA camera, 1-1.9 mega pixels, 2-3.5 mega pixels, 3.5mega pixels and more. The Nokia cell phoneshas something in terms of design and its userfriendly features are unremarkable.

The Nokia Company also provides a host of accessories which come along with the hand sets like chargers, batteries, ear phones /headset and the manual which describes how to use the piece. There are other accessories like cases and pouches, chargers, data cables, enhancements, faceplates, Handsfree headsets. You can also buy other accessories which enhance your set. The other fancy accessories are chains, flashers, holders, LCD screens, Scratch guard, stylus, memory card readers, etc.


Maketing Objectives:-

Marketing objectives presents a brief summary of the main goals and the recommendations of the plan for management review, helping top management to find the plans major points quickly. In marketing objectives, following areas are included 1. 2. 3. 4. 5. 6. 7. Current marketing situation Threats and opportunity analysis Objectives and issues Marketing strategy Action programs Budgets control


Organizations Network:
Nokia is manufacturing its products world wide in following countries

1. Austria 2. Bahrain 3. Belgium 4. Bosnia-Herzegovina 5. Croatia 6. Cyprus 7. Czech Republic 8. Denmark 9. Finland 10. France 11. Germany 12. Greece 13. Gulf countries 14. Hungary 15. Italy 16. Kuwait 17. Lebanon 18. Luxembourg 19. Malta 20. Monaco 21. Norway 22. Oman 23. Poland 24. Portugal 25. Qatar 26. Saudi Arabia 27. Serbia and Montenegro 28. Slovakia 29. Turkey 30. UAE



Some of the major mobile products of Nokia are shown below in the table. Besides these major products Nokia is also producing many other mobiles series.

Nokia mobile phones by series

Nokia C series
C3 C5 C6 Nokia E series E5 E50 E51 E52 E55 E60 E61/E61i E62 E63 E65 E66 E70 E71 E72 E75 E90 Communicator

Nokia Nseries
N70 N71 N72 N73 N75 N76 N78 N79 N8 N80 (Internet Edition) N81 (N81 8GB) N82 N85 N86 8MP N90 N91 (N91 8GB) N92 N93 N93i N95 N95 8GB N96 N97 Nst-4

Nokia X series
X2 X3 X5 X6



Nokia is a consumer led company. There is a progressive and continuous increase in consumer involvement with technology and communications globally. People are broadening their modes of communication to include the web and, social networks are becoming central to how people communicate. People want to be truly connected, independent of time and place, in a way that is very personal to them. And, Nokias promise is to connect people in new and better ways. Nokias strategy is to build trusted consumer relationships by offering compelling and valued consumer solutions that combine beautiful devices with context enriched services.

Trusted consumer relationship Maximize nokias lifetime value to consumer

Best mobile devices everywhere Take share and drive value across price bands and geographies Enhance and capture market growth in emerging markets

Context enriched services

Take share of the internet services market by delivering winning solutions. Take share of business mobility market.



Consumer decision making varies with the type of buying decision. complex and expensive purchase are likely to involve more buyer deliberation and more participants Various types of consumer buying behaviour-

Complex buying behaviour

The buyer develops a believe about the product. He develops attitude about the product. Lastly, he makes a thoughtful choice.

Reducing buying behaviour. Sometimes the consumer is highly involve in purchase because it is risky, expensive, and infrequent. But sees little different in brand.

Variety seeking buying behaviour

Some buying situations have low involvement but significant brand differencesconsumer do a lot of brand switching.




The buyer enquires about the available companies offering the mobile products. After scrutinizing, he/she comes out with the selective company .


It is in the nature of consumer that he/she involves themselves in the matters of expensive buying. Mobile products are the products which are infrequent and people think about the durability and reliability of products in the sense of risk involve in it.


As we know mobile products are the products which are of infrequent buying behaviour and are expensive so a normal consumer cannot afford to buy habitually. But a consumer of upper class income buy habitually to maintain their status in the society.



It is in the blood of consumer that before making purchase they ask for variety of the products. Before buying the mobile products, the consumer ask for the variety and features available and after going through all the variety and features make the final decision i.e purchase.


Nokia has successfully operated its functions in order to meet the dynamic changing needs, demands and requirements of the customers. That is why; today in the mobile sector Nokia holds a large area of customers all over the world. The Nokia has adopted the following key strategies to capture a large number of buyers. Market Segmentation Market Targeting Market Positioning Market Mix 4Ps Positioning Strategy (slogan, logo.)



In order to make effective market segmentation, the Nokia tends to seek the customers on the basis of following attributes: What type of product they buy How much they buy How often they buy

There are also certain variables that can affect peoples buying habits, they include: AgeGender Area they live in Religion Lifestyle Fashion and preferences. Market segmentation refers to the different areas of the population that companies can aim their products towards. The market segment that Nokia has chosen to aim is the youth market focusing on students aimed 13-19 as market research has shown that some of the youth market are receiving large amounts of pocket money and most have no real commitments to spend it on and that means they have lots of disposable income and will be able to spend a lot money on new mobile phones. As a big company Nokia are able to do a lot of promoting and advertising that smaller, less successful companies, may not be able to afford, such as television advertising and sponsoring lots of events that will be viewed or heard by large amounts of people in their chosen market segment (events such as music festivals and music awards are a goldmine for companies as they are viewed by millions of people worldwide). Adverts such as put a lot of their television and print adverts will be put into certain areas so that they can attract their chosen market segment, Nokia tend to print adverts in men's magazines such as FHM and Loaded so they can appeal to all of their readers instead of a smaller percentage of the readers they would attract in magazines such as Lifestyle and Good Housekeeping. I think Nokia's way of promoting is very good as they can appeal to mass markets and large amounts of people in their chosen market segmentation with certain advertisement's and with sponsoring large events like the ones I have previously mentioned.



The target market of NOKIA is very wide. Its products are demanded world wide and are given preference at any other cellular company in the world. They have comparatively low rates than the other companies and have a very good and interactive performance and interesting features, so because of these features, people prefer NOKIA than the other companies. Especially in Asia, Europe, America and the Middle East, NOKIA has a very big market. It is manufacturing GSM and AMPS technologies cellular sets which are meeting every kind of consumers requirements. In 2002, Nokia's largest markets were US, UK, China, Germany, Italy, France, UAE, Thailand, Brazil and Poland. Now from the last few years the Nokia has got a vast place in the mobile industry of Pakistan. The target market of Nokia in Pakistan is almost the classes because they have produced their mobiles right from high upper class to lower class of the economy. But if we talk of N97 this is specially for the upper class in the economy. The fashion adapting class of the country specially the young generation of high class has been targeted through this product My revised strategy has a lot of advantages over Nokia's previous strategy, and I have listed them below: My target market is one that has never been entered before, so Nokia will instantly gain 100% market share, whereas the current target market is saturated and competition for market share is very strong. The products that are being released do not need to be as technically advanced as the ones in the current market, because my market research showed that the 40+ market do not want phones that are to complicated and hard to use. If product research and development is not needed as much anymore then Nokia can afford to decrease its employment numbers and this would save Nokia a lot of money every year. When entering a new market with no competition a company can charge whatever prices they want, Nokia's prices can be higher then they currently are and this will increase income and profitability.



When Nokia positions its brand in the crowded mobile phone marketplace, its message must clearly bring together the technology and human side of its offer in a powerful way. The specific message that is conveyed to consumers in every advertisement and market communication (though not necessarily in these words) is Only Nokia Human Technology enables you to get more out of life"

In many cases, this is represented by the tag line, "We call this human technology". This gives consumers a sense of trust and consideration by the company, as though to say that Nokia understand what they want in life, and how it can help. And it knows that technology is really only an enabler so that you-the customer-can enjoy a better life. Nokia thus uses a combination of aspirational, benefit-based, emotional features, and competition-driven positioning strategies. It owns the "human" dimension of mobile communications, leaving its competitors wondering what to own (or how to position themselves), having taken the best position for itself.



The marketing mix

The marketing mix refers to the combination of elements within a companies marketing strategy, these are designed to give the customer what they want and in the long term are designed to maximise profits. The marketing mix is based around the idea of the 4 P's:

1. 2. 3. 4.

Price Place Promotion Product


The phones that Nokia produce are usually sold at high prices(new phones can be expected to enter the market at around 200+, if they carry the latest technology). The price of the new phones usually decreases after an introductory period, which is usually around 2 months long.Nokia's prices are usually competitor based, in such a way as, they try to keep their prices a bit lower then those of the closest competitors, but not as low as the "smallest" competition as consumers do not mind paying the extra money for the "extra quality" PLACE Nokia phones are generally sold at all established mobile phone dealerships such as Car phone Warehouse and The Link, although they are also sold at other retailers such as Dixon's and other Electrical suppliers. The products are only sold in the electrical suppliers and store other then dedicated phone dealerships after the introductory period so the phones can remain limited edition, as this will encourage younger consumers to buy them.

This refers to the chosen outlets for a product or service, for a product to be very successful it must be easy to access, Mobile phones are very easy to access nowadays, they are sold in supermarkets, specialised outlets (either by network or brand) and all major department stores.



.Nokia tend to promote the new technologies and mobile devices they create using one big
advertising campaign that focuses on a singular technology instead of each individual handset so they can appeal to a lot of different markets with one campaign.

Nokia phones tend to include all the latest technology and a lot of the consumers favorite aspects such as text messaging and games like Snake and Memory. When the phones came out they were big and bulky and quite unattractive but now they are all quite sleek and stylish with phones now getting small enough to fit in the palm of your hand as standard. Most of the phones produced nowadays have accessories that consumers must buy with them (carry cases, hands free kits and in-car chargers) these generate Nokia a lot of profit, as they are very high priced. Nokia's marketing mix has worked very well until recently as the market they are aiming at has become more and more saturated and after looking at all the mobile phone sales figures, it looks as if the phone companies can aim at this same youth market for about another 2 years until they need to change, but they should change sooner so they can start making a bigger profit and get a head start on the competition who will also have to change the market they are aiming at. Nokia's current promotional strategy is working very well as they are able to "talk to" a large number of consumers in different markets rather then the niche markets the old promotional strategies where restricted to.

Positioning Strategy


Thus, the Nokia Connecting People slogan was born with the Nokia logo. The slogan of Nokia logo provides the brand with an exceptionally strong elevated altitude in the communication industry. The slogan explains the company goal to connect people without any barricade and with total comfort.

Nokia logo, like the company, is tantamount to contemporary mobile technology, high tech gadgets and fashionable ways to communicate and explore. Nokia Co. has offered every endeavor to decode the mission intended by the company through its brilliant logo design.


Product life cycle- Mobile phones

When mobile phones where 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. When Mobile phones were first introduced they were not such a popular item and there weren't as many competing companies in the market. So Nokia and a few other companies (Sony and Panasonic) could charge higher prices then they would in the highly competitive market that they are in today, as there aren't so many companies competing for market share.



39% Europe

22% Asia- Pacific 14%Middle east & Africa 12% China 8% Latin merica 5% North America


Competition in the market

With all this technology available in the communications market it is obvious that Nokia will have lots of competition, they include: * Sony Ericsson * Samsung * Motorola * Siemens * Panasonic * NEG * Sagem and * Toplux With all of these competitors in the market Nokia must keep ahead of the game by running successful marketing strategies, to do this Nokia must focus on the principles of marketing. At the moment Nokia are the world's best selling phone company (see table below which shows market share). Nokia strengthened its lead as the No. 1 vendor in the market during 2000 with shipments growing 66 percent over 1999. Some of the company's success was attributed to a strong second half in 2000 when 59 percent of sales occurred.
1. Nokia 37.2% (34.7% 1Q02) 2. Motorola 17.3% (15.5%) 3. Samsung 9.8% (9.6%) 4. Siemens 8.5% (8.8%) 5. Sony-Ericsson 5.2% (6.4%)



Nokia has detailed many personality characteristics for its brand, but employees do not have to remember every characteristic. They do, however, have to remember the overall impression of the list of attributes, as you would when thinking about someone you have met. As the focus is on customer relationships, the Nokia personality is like a trusted friend. Building friendship and trust is at the heart of the Nokia brand. And the human dimension created by the brand personality carries over into the positioning strategy for the brand. Most forms of promotion are based around the idea of having an image to go with the product. Brand imaging plays a dominant part in an organizations marketing strategy. This is because people make a purchase they aren't just buying a product, they are buying a lifestyle or an image. If branding can make people believe that the branded product is better then an un-branded product, more people will buy it and they will also be willing to pay higher prices for the "extra quality" and lifestyle they are receiving with the product. Because a lot of rival products are more or less the same (Pepsi and Coke) the main way of making your product stand out is through aggressive branding, This is usually achieved by companies using slogans, logos and distinctive packaging.



Nokia is a great brand because it knows that the essence of the brand needs to be reflected in everything the company does, especially those that impact the consumer. Product design is clearly critical to the success of the brand, but how does Nokia manage to inject personality into product design? The answer is that it gives a great deal of thought to how the user of its phones will experience the brand, and how it can make that experience reflect its brand character. The large display screen, for example, is the "face" of the phone. Nokia designers describe it as the "eye into the soul of the product". The shape of phones is curvy and easy to hold. The faceplates and their different colors can be changed to fit the personality, lifestyle, and mood of the user. The soft key touch pads also add to the feeling of friendliness, expressing the brand personality. Product design focuses on the consumer and his needs, and is summed up in the slogan, "human technology."

Nokia now accounts for over half of the value of the Finland stock market, and has taken huge market share from its competitors. According to one brand valuation study carried out in mid1999, it ranked 11th on the world's most valuable brand list, making it the highest-ranking nonU.S. brand. As has been pointed out, it has unseated Motorola. Nokia achieved its brilliant feat through consistent branding, backed by first-class logistics and manufacturing, all of which revolve around what consumers what.




Rs. 7000 to 12000- Physiological needs Rs. 13000 to 20000- Social needs Rs.21000 to 40000-Esteem needs


Nokia is currently the world's largest manufacturer of mobile telephones, with a global device market share Nokia commits high quality products and excellent backup batteries to their customers. It adds status to the customers lifestyle as its featured products are very expensive. It offers some products which add status and style to customer lifestyle .


Rs.7000 TO 12000 PHYSIOLOGICAL NEEDS When the people is in the need of the phone because of his/her nature of work and his /her requirements of life and with the feeling of remain connected with his/her family, close relatives and colleagues. Due to his low income he will prefer low range products which are affordable, reliable and he/she was not able to think about luxury, extra features in the mobile products. Examples of products Nokia5300 , NokiaN72 etc . Rs.13000 TO 20000 SOCIAL NEEDS When the basic needs of people are already fulfilled then he/she thinks about the connectivity, relationship, contacting people etc. in this range he/she thinks over and above the necessity of life. Examples of products-Nokia 7610supernova, Nokia E Series E61i etc.

Rs.21000 TO 40000 ESTEEM NEEDS When all needs are already fulfilled and he/she has remained with extra purchasing power which implies him/her to think about the status in the society, luxury (extra features in the mobile products like high megapixels camera, high sound system etc) and reputation. Examples of products - Nokia N81 .




PROBLEM RECOGNITIONThe buying process starts when a buyer recognize a problem or a need.

INFORMATION RESEARCH Through personal source (family, friends etc) Commercial source (advertising, dealers, salesperson) Public source (mass media, consumer rating organizations) Experimental source (handling, examining, using i.e testing the product)

EVALUATION OF ALTERNATIVESThis is done by comparing the characteristics of the alternatives available to satisfy the need.

PURCHASE DECISIONThe consumer forms preferences among the brand in the choice set. The consumer may also form an intention to buy a particular brand but there are two things that influence them 1). Attitude of others 2). Unanticipated situation factors

POST PURCHASE BEHAVIOURIf a product performance falls short off expectations the consumer is dissatisfied. If the performance is as expected , the consumer is satisfied and if the performance is more than expectation the consumer is delighted.



Nokia is one of the most valued consumer brands in the world. They take a human approach to designing mobile devices, with the goal of creating stylish products that work just the way people like them to. Their emphasis is on the experiences people want rather than the objects they use. Nokia company target all age groups people (youngsters, housewives, working men and women, old people). They are operating globally . Nokia produces mobile phones for every major market segment and protocol, including GSM, CDMA, and W-CDMA. Nokia company plans to focus on rural cities also and creating products keeping in mind their needs ,income groups etc.(products offered like nokia1100,1110 and so on.)


Keeping in mind the need and preferences of the consumers the nokia company provide various products of different price range which complements the income, lifestyle, status, required features of the concerned consumer. Some products that complements the need of different classes

Lower income group-

Phone :Nokia 2330 classic Manufacturer: Nokia Price (Indian Rupees): Expected Price:Rs.3100

Description: Affordable handset which supports ovi mail and

life tools. It got Radio and a web browser. Has an inbuilt VGA camera offer support for applications.


Middle income group-

Phone: Nokia 5300 Manufacturer: Nokia Type: Slide Price:Rs.5500 Features: Bluetooth, Colour Screen, GPRS, MMS enabled, MP3 Player, Polyphonic ringtones, Radio, Snap on cover, Streaming video, USB, Vibration. Camera: 1 - 1.9 Megapixels Bundled Items: Data Cable, Headset, Memory, Charger.

Phone: Nokia N72 Manufacturer: Nokia Price: Rs.7500 Features: In pearl pink or gloss black, the new nokia N72
has high-perfomance multimedia at its core, wrapped in a beautiful design. It offers the benefits of versatile photography, entertainment and personal productivity to people who value style as much as high performance. A powerful yet stylish multimedia device, the Nokia N72 is equipped with a 2-megapixel camera and integrated digital music player, with dedicated capture and music player keys, an integrated browser, FM radio and support for Visual Radio.

Upper income groupNokia: 7610 Supernova Manufacturer: Nokia Price: Rs. 11000 Description: The Nokia 7610 Supernova is a slide quad-band
phone with a 3.2 Mega Pixel Camera, VGA Video recording , TV

out and more.

Model: Nokia E Series E61i Type: Smartphone Manufacturer: Nokia Price: Rs. 14,300.00 Description: Colour Screen, 3G, Vibration, Streaming
video, Polyphonic ringtones, MMS enabled, Bluetooth, Java enabled, IRDA, Infrared, MP3 Player, GPRS.

Bundled Items: Data Cable, Headset, Charger, Software, Memory, Battery


Target Market:-

The target market of NOKIA is very wide. Its products are demanded world wide and are given preference at any other cellular company in the world. They have comparatively low rates than the other companies and have a very good and interactive performance and interesting features, so because of these features, people prefer NOKIA than the other companies.

Specially in Asia, Europe, America and the Middle East, NOKIA has a very big market. It is manufacturing GSM and AMPS technologies cellular sets which are meeting every kind of consumers requirements.

In 2002, Nokia's largest markets were US, UK, China, Germany, Italy, France, UAE, Thailand, Brazil and Poland.


Portfolio Analysis:-

The major activity in srategic management is business portfolio analysis whereby management evaluates the business making up the company. The company will want to put strong resources into its most profitable business and phase down or drop its weaker ones.

So while analyzing the portfolio of NOKIA, it was found that its product of cellular phones, especially its GSM sets were making more profit to the company as compare to its other products. So the company invested more budget in this area and started development on this area to earn the maximum profit. But in the mean while, the company didnt neglected their other products and invested more money on the development of those products.


Marketing Strategy
As we move into the Mobile World, we remain committed to strong growth, profitability and responsible market leadership. Strategic Direction:The mobile phone is fast becoming the centerpiece of personal communication, allowing us access to an ever-widening range of services. Today, we are moving from voice services to services driven by data and multimedia.


Business Environment:Nokia competes in the global telecommunications industry in general and in the mobile industry in particular, each of which has exhibited rapid growth, change and convergence in recent years.

Micro and Macro Environmental Factors Effecting Business

The actions and forces outside marketing that affect marketing managements ability to develop and maintain successful transactions within target customers, is called the marketing environment. Environmental considerations are integrated into every area of company life and at every phase of our products' life cycle. We believe in eco-efficiency and sustainability - to respect nature and the needs of future generations. Nokia's new Environmental Report 2002 states the company's understanding of the environmental aspects and impacts of its activities. There are two categories of marketing environment: 1. Microenvironment 2. Macroenvironment


Micro Environment:Following are the microenvironmental factors which affects the company: 1. 2. 3. 4. 5. 6. The company Suppliers Marketing intermediaries Customers Competitors Publics

Microenvironment:Following are the macroenvironmental factors which affects the company:

1. 2. 3. 4. 5. 6.

Demographic environment Economic environment Natural environment Technological environment Political environment Cultural environment


Research Methodology
The entry of Nokia in the Chinese market, as established in the earlier parts of this paper, will inevitably encounter intense competition in the area of handheld personal communicators. Brands, both local and foreign, implement their respective strategies which vary from product differentiation to cost leadership. Drejer (2002) However, one must also take into account the fact that Nokia, being the forerunner in the telecommunications industry tend to have an advantage with its brands reputation and evident popularity. The earlier parts of this paper discussed the different strategies of the company in its entry and operation in Chinas market. First of all, the company have to establish the marketing mix that they anticipate in China. (Fuller 1999) This way, they can maximise the returns of their investments with minimal loss. Along with this endeavour, ascertaining the environment of the market on which they intend to penetrate should fit their general marketing objectives. To ensure that the Nokia will find ways to adjust to the Chinese market, market research will be required. (Baines and Chansarkar 2002) Specific methods like market segmentation and addressing the behaviour of consumers particularly the target market of Nokia. Lastly, the company will also have to contend with its competitors. (Beal 2000) As maintained earlier, the competition is expected to be intense. Thus, a strategy fit for this market would be akin to product differentiation so as to deal with the subtle changes in the behaviour of the market. Seeing as the methods of entering the market has been specified, it is also important to highlight the need of the company to sustain development and ensure that growth will take place in their venture in the Chinese market.


Growth Strategy
Established in the earlier claims, Nokia is a well-known brand, possibly one of the most recognisable names in the mobile phone industry. However, the presence of competitors tends to pose a consistent threat to their overall market share. Thus, Nokia is not exempt in finding a way to leverage their assets and existing people to sustain a consistent trend of growth and development. The following

highlights the proposed growth strategy of Nokia in China.

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Got this information from one my friends and thought of sharing with you people. Suppose you have a number stored in your Nokia cell phone with the Name of the number holder. Have you noticed that, if you dial the number with first three digits changed, same Name appears? Same is the case when you receive a call from a number whose last seven digits are the same as this number. For example, take a number 98450 98450 for instance. I guess, its stored as Airtel in your cell. When you dial a number XXX50 98450, it will display Calling Airtel. When you receive a call from a number XXX50 98450 it will display Airtel Calling. I dont know whether you call it a bug or limitation, but it does exist in Nokia handsets. I tried with SonyEricson cell phones also, but they turned out to be smarter than Nokia.



Visually, there is no any key competitor to NOKIA as comparing its vast market and demand, but still, we can consider the following companies as its competitors:-

1. Ericson

2. Motorola

3. Samsung

4. Siemens

5. Sony

These competitors of NOKIA has also a big market, but as compared to NOKIA, we cannot say that they can compete this organization at the same level of competition.


Nokia opened its Komrom, Hungary mobile phone factory on 5 May 2000. In March 2007, Nokia signed a memorandum with Cluj County Council, Romania to open a new plant near the city in Jucu commune.[88][89][90] Moving the production from the Bochum, Germany factory to a low wage country created an uproar in Germany. Nokia recently moved its North American Headquarters to Sunnyvale. In April 2003, the troubles of the networks equipment division caused the corporation to resort to similar streamlining practices on that side, including layoffs and organizational restructuring. This diminished Nokia's public image in Finland,[94][95] and produced a number of court cases and an episode of a documentary television show critical of Nokia.[96] On February 2006, Nokia and Sanyo announced a memorandum of understanding to create a joint venture addressing the CDMA handset business. But in June, they announced ending negotiations without agreement. Nokia also stated its decision to pull out of CDMA research and development, to continue CDMA business in selected markets.[97][98][99] In June 2006, Jorma Ollila left his position as CEO to become the chairman of Royal Dutch Shell and to give way for Olli-Pekka Kallasvuo. In May 2008, Nokia announced on their annual stockholder meeting that they want to shift to the Internet business as a whole. Nokia no longer wants to be seen as the telephone company. Google, Apple and Microsoft are not seen as natural competition for their new image but they are considered as major important players to deal with. In November 2008, Nokia announced it was ceasing mobile phone distribution in Japan.Following early December, distribution of Nokia E71 is cancelled, both from NTT docomo and SoftBank Mobile. Nokia Japan retains global research & development programs, sourcing business, and an MVNO venture of Vertu luxury phones, using docomo's telecommunications network. In February 2012, Nokia anonunced it was laying off 4000 employees to move manufacturing from Europe and Mexico to Asia. In March 2012, Nokia annonunced it was laying off 1000 employess from its Salo, Finland factory to focus on software


Though the NOKIA is the worlds largest cellular phone company and has the very efficient features and facilities but there are some suggestions by me after analyzing and researching about this company. It should decrease its prices of the sets so that the sets may become in reach of every user and the market may increase and become the cause of increasing profit rate. Its spare parts should be available in its every market. There should be replace warrenty in case of defection. Memory capacity should be increased to save the different entertaining materials in the sets.



With all this technology available in the communications market it is obvious that Nokia willhave lots of competition, they include: Sony Ericsson Samsung Motorola Siemens Panasonic NEG and Toplux With all of these competitors in the market Nokia must keep ahead of the game by running successful marketing strategies, to do this Nokia must focus on the principles of marketing. At the moment Nokia are the world's best selling phone company (see table below which shows market share). Nokia strengthened its lead as the No. 1 vendor in the market during 2000 with shipments growing 66 percent over 1999. Some of the company's success was attributed to a strong second half in 2000 when 59 percent of sales occurred.


Though the NOKIA is the worlds largest cellular phone company and has the very efficient features and facilities but there are some suggestions by me after analyzing and researching about this company. It should decrease its prices of the sets so that the sets may become in reach of every user and the market may increase and become the cause of increasing profit rate. Its spare parts should be available in its every market. There should be replace warranty in case of defection. Memory capacity should be increased to save the different entertaining materials in the sets .



Nokia is a consumer led company. People are broadening their modes of communication to include the web and, social networks are becoming central to how people communicate. People want to be truly connected, independent of time and place, in a way that is very personal to them. And, Nokias promise is to connect people in new and better ways. Nokias strategy is to build trusted consumer relationships by offering compelling and valued consumer solutions that combine beautiful devices with context enriched services. Nokia provides all the range of products thus making it convenient for consumers to purchase according to their income, lifestyle, preferences etc.

Nokia Group the Finland-based manufacturer of mobile phones has been steadily working on its corporate brand name and the management of consumer perceptions over the last few years. Its efforts have paid off, because it is now the number one brand in many markets around the world, effectively dislodging Motorola from that position. The brand has been built using the principles described above, and has been consistently well managed across all markets. Nokia has succeeded in lending personality to its products, without even giving those names. In other words, it has not created any sub-brands but has concentrated on the corporate brand, giving individual products a generic brand personality. Only numeric descriptors are used for the products, which do not even appear on the product they. Such is the strength of the corporate brand.Nokia has succeeded where other big brand names have so far failed, chiefly by putting across the human face technology-taking and dominating the emotional high ground. It has done so in the following way.



Nokia sales point, Chandni chowk, Murree Road, Rawalpindi.

Baines, P. and Chansarkar, B. (2002) Introducing Marketing Research. New York: Wiley. p18

Beal, R. (2000) "Competing Effectively: Environmental Scanning, Competitive Strategy, and Organizational Performance in Small Manufacturing Firms." Journal of Small Business Management. 38(1), 27.

Fletcher, H. and Smith, D. (2004) "Managing for Value: Developing a Performance Measurement System Integrating Economic Value Added and the Balanced Scorecard in Strategic Planning." Journal of Business Strategies. 21(1), 1.

Fuller, D. (1999) "Marketing Mix Design-for-Environment (Dfe): A Systems Approach." Journal of Business Administration and Policy Analysis. p309.

Hayes, M. (2001) "Get Close to Your Clients: You Already Have CRM Capacity. Now Put It to Work." Journal of Accountancy. 201(6), 49.



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