project on nokia
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Introduction to Project:-
This Project deals with Various Marketing Strategies used in NOKIA. This Project mainly
focuses on Various Strategies that are been used by Nokia Co Ltd in the Market in
India.Nokia is also known as a powerfull company in the mobile segment , and have also
remains at position first .
● Data and Methodology :-
For the purpose of the present study, both primary data and secondary data were used.
Primary data is collected by visiting “NOKIA PRIORITY DEALER SHOP” [NEW
DELHI]
Secondary data are collected from Books, Internet, Magazines
Objective of the Study :-
The objectives of the present study are:-
1) To get the better view of Various Marketing Strategies used in NOKIA
2) To know the facilities provided by Nokia Company to its Customers
3) To know the special schemes designed by the Nokia Company &
especially for the benefit of the Customers.
● Limitations of Study :-
1) The study is based on the information provided by Nokia ‘s Mobile
Strategy
2) The present study suffers from all the limitations of
case study method.
INTRODUCTION
The company I have chosen to analyse in my project is the Finnish mobile phone giant
NOKIA. This Chapter tells us briefly what Nokia actually is, its company structure and
overall view on the size and sales of the company & also the Various Marketing Strategies
followed by them. Since January 2004, Nokia Group has consisted of four different
business groups: Mobile Phones, Multimedia, Enterprise Solutions and Networks. “In
addition, there are two horizontal groups that support the mobile device business groups:
Customer and Market Operations and Technology Platforms.”2 In the year 2004 Nokia’s
net sales for mobile phones were 18 507 million euro, which went down 12% from 2003.
Nokia’s market areas were Europe/Africa/Middle East (55% of net sales), Asian Pacific
and China (25%) and Americas (20%). Nokia’s market share in Europe was 45,8% in
2003, in 2004 it was 34,8% and in the third quarter of 2005 it was 36%.3 The average
number of personnel for 2004 was 53 511. At the end of 2004, Nokia employed 55 505
people worldwide. In 2004, Nokia′s
personnel increased by a total of 4 146 employees. Nokia’s turnover for the third quarter of
2005 was 8403 million euro from which mobile phones brought in 62%, multimedia 17%,
Enterprise solutions 2% and Networks 9%. “The year 2004 was demanding for Nokia. In
response, the company set five top priorities in the areas of customer relations, product
offering, R&D efficiency, demand-supply management and the company’s ability to offer
end-to-end solutions. Nokia is making good progress in these areas,
and is now better positioned to meet future challenges.
On 11 February 2011, Nokia's CEO Stephen Elop, a former head of Microsoft business
division, unveiled a new strategic alliance with Microsoft, and announced it would
replace Symbian and MeeGo with Microsoft's Windows Phone operating system except
for mid-to-low-end devices, which would continue to run under Symbian. Nokia was also
to invest into the Series 40 platform and release a single MeeGo product in 2011.
As part of the restructuring plan, Nokia planned to reduce spending on research and
development, instead customising and enhancing the software line for Windows Phone 7.
Nokia's "applications and content store" (Ovi) becomes integrated into the Windows
Phone Store, and Nokia Maps is at the heart of Microsoft's Bing and AdCenter. Microsoft
provides developer tools to Nokia to replace the Qt framework, which is not supported by
Windows Phone 7 devices.
Symbian became described by Elop as a "franchise platform" with Nokia planning to sell
150 million Symbian devices after the alliance was set up. MeeGo emphasis was on
longer-term exploration, with plans to ship "a MeeGo-related product" later in 2012.
Microsoft's search engine, Bing was to become the search engine for all Nokia phones.
Nokia also intended to get some level of customisation on WP7.
After this announcement, Nokia's share price fell about 14%, its biggest drop since July
2009.
As Nokia was the largest mobile phone and smartphone manufacturer worldwide at the
time, it was suggested the alliance would make Microsoft's Windows Phone 7 a stronger
contender against Android and iOS. Because previously increasing sales of Symbian
smartphones began to fall rapidly in the beginning of 2011, Nokia was overtaken by
Apple as the world's biggest smartphone maker by volume in June 2011.In August 2011
Chris Weber, head of Nokia's subsidiary in the U.S., stated "The reality is if we are not
successful with Windows Phone, it doesn't matter what we do (elsewhere)." He further
added "North America is a priority for Nokia (...) because it is a key market for
Microsoft.".
Nokia reported "well above 1 million" sales for its Lumia line up to 26 January 2012, 2
million sales for the first quarter of 2012,and 4 million for the second quarter of 2012. In
this quarter, Nokia only sold 600000 smartphones (Symbian and Windows Phone 7) in
North America. For comparison, Nokia sold more than 30 million Symbian devices
world-wide still in Q4 2010 and the Nokia N8 alone sold almost 4 million in its first
quarter of sale. In Q2 2012, 26 million iPhones and 105 million Android phones have
been shipped, but only 6.8 million devices with Symbian and 5.4 million with Windows
Phone
While announcing an alliance with Groupon, Elop declared "The competition... is not
with other device manufacturers, it's with Google."
European carriers have stated that Nokia Windows phones are not good enough to
compete with Apple iPhone or Samsung Galaxy phones, that "they are overpriced for
what is not an innovative product" and that "No one comes into the store and asks for a
Windows phone".
In June 2012, Nokia chairman Risto Siilasmaa told journalists that Nokia had a back-up
plan in the eventuality that Windows Phone failed to be sufficiently successful in the
market.
On October 29, 2012, Nokia said its high-end Lumia 820 and 920 phones, which will run
on Microsoft's Windows Phone 8 software , will reach first operators and retail outlets in
some European markets including France and Britain and later in Russia and Germany as
well as other select markets.
On December 5, 2012, Nokia introduced two new smartphones, the Lumia 620 and
Lumia 920T. The 620 was released in January 2013.
In January 2013, Nokia reported 6.6 million smartphone sales for Q4 2012 consisting of
2.2 million Symbian and 4.4 million sales of Lumia devices (Windows Phone 7 and 8). In
North America, only 700,000 mobile phones have been sold including smartphones.
COMPANY PROFILE
Nokia's history started in year 1865, when engineer Fredrik Idestam established a wood-
pulp mill in Southern Finland and started manufacturing paper. Due to the European
industrialization and the growing consumption of paper and cardboard Nokia soon became
successful. In 1895 Fredrik
Idestam handed over the reins of the company to his son-in-law. Nokia was Actually
founded in 1965 by Fredrik Idestam in Finland as a paper manufacturing company. In
1920, Finnish Rubber Works became a part of the company, and later on in 1922, Finnish
Cable Works joined them. All
the three companies were merged in 1967 to form the Nokia Group. Nokia created the
NMT mobile phone standard in 1981 and launched the first NMT phone, Mobira Cityman,
in 1987. The company delivered the first GSM network to Radkilinia, a Finnish company
in 1991, and in 1992, Nokia
1011 - a precursor for all Nokia’s current GSM phones - was introduced. In the 1990s,
Nokia provided GSM services to 90 operators across the world. Another significant move
of the company during this period was the divestment of its non-core operations like IT.
The company focused on two core businesses - mobile phones and telecommunications
networks. In the
1990s, Nokia provided GSM services to 90 operators across the world. Another significant
move of the company during this period was the divestment of its non-core operations like
IT. The company focused on two core businesses - mobile phones and telecommunications
networks.
Nokia's history contains many achievements that were the first of their kind in the world.
Many milestones have been experienced in the mobile phone business since the 80’s. The
success with the NMT and GSM technologies and the products they spawned secured
Nokia's position as the world's
leading telecommunications company. The list of Nokia's milestones
provided a good insight in the history of wireless communications. Nokia has been
involved in making the world's first NMT network and the world's first pocket-sized
mobile phone. The world's first device to use the Symbian OS was also produced by
Nokia. Nokia was able to offer advanced
products from the beginning of the 90s. Early investments in R&D were thus handsomely
rewarded. Nokia ensured its continued growth by reforming its production in the
middle of the 90s. The new phone models and standardized technical solutions made it
possible to produce an increasingly extensive product range more effectively. The
extensive range of mobile phone models, covering all user groups, is one of the reasons
why Nokia became the
market leader. First mobile phone :
The Mobira Cityman 150, Nokia's NMT-900 mobile phone from 1989 (left), compared to
the Nokia 1100 from 2003. The Mobira Cityman line was launched in 1987.
The technologies that preceded modern cellular mobile telephony systems were the
various "0G" pre-cellular mobile radio telephony standards. Nokia had been producing
commercial and some military mobile radio communications technology since the 1960s,
although this part of the company was sold some time before the later company
rationalization. Since 1964, Nokia had developed VHF radio simultaneously with Salora
Oy. In 1966, Nokia and Salora started developing the ARP standard (which stands for
Autoradiopuhelin, or car radio phone in English), a car-based mobile radio telephony
system and the first commercially operated public mobile phone network in Finland. It
went online in 1971 and offered 100% coverage in 1978.
In 1979, the merger of Nokia and Salora resulted in the establishment of Mobira Oy.
Mobira began developing mobile phones for the NMT (Nordic Mobile Telephony)
network standard, the first-generation , first fully automatic cellular phone system that
went online in 1981. In 1982, Mobira introduced its first car phone , the Mobira Senator
for NMT-450 networks.
Nokia bought Salora Oy in 1984 and now owning 100% of the company, changed the
company's telecommunications branch name to Nokia-Mobira Oy. The Mobira Talkman,
launched in 1984, was one of the world's first transportable phones. In 1987, Nokia
introduced one of the world's first handheld phones, the Mobira Cityman 900 for NMT-
900 networks (which, compared to NMT-450, offered a better signal, yet a shorter roam).
While the Mobira Senator of 1982 had weighed 9.8 kg (22 lb) and the Talkman just
under 5 kg (11 lb), the Mobira Cityman weighed only 800 g (28 oz) with the battery and
had a price tag of 24,000 Finnish marks (approximately €4,560). Despite the high price,
the first phones were almost snatched from the sales assistants' hands. Initially, the
mobile phone was a "yuppie" product and a status symbol
Nokia's mobile phones got a big publicity boost in 1987, when Soviet leader Mikhail
Gorbachev was pictured using a Mobira Cityman to make a call from Helsinki to his
communications minister in Moscow. This led to the phone's nickname of the "Gorba".
In 1988, Jorma Nieminen, resigning from the post of CEO of the mobile phone unit,
along with two other employees from the unit, started a notable mobile phone company
of their own, Benefon Oy (since renamed to GeoSentric).One year later, Nokia-Mobira
Oy became Nokia Mobile Phones.
On 22 September 2003, Nokia acquired Sega.com, a branch of Sega which became the
major basis to develop the Nokia N-Gage device.
On 16 November 2005, Nokia and Intellisync Corporation , a provider of data and PIM
synchronization software, signed a definitive agreement for Nokia to acquire Intellisync.
Nokia completed the acquisition on 10 February 2006.
On 19 June 2006, Nokia and Siemens AG announced the companies would merge their
mobile and fixed-line phone network equipment businesses to create one of the world's
largest network firms, Nokia Siemens Networks. Each company has a 50% stake in the
infrastructure company, and it is headquartered in Espoo, Finland. The companies
predicted annual sales of €16 bn and cost savings of €1.5 bn a year by 2010. About
20,000 Nokia employees were transferred to this new company.
On 8 August 2006, Nokia and Loudeye Corp. announced that they had signed an
agreement for Nokia to acquire online music distributor Loudeye Corporation for
approximately US $60 million.The company has been developing this into an online
music service in the hope of using it to generate handset sales. The service, launched on
29 August 2007, is aimed to rival iTunes. Nokia completed the acquisition on 16 October
2006.
In July 2007, Nokia acquired all assets of Twango, the comprehensive media sharing
solution for organizing and sharing photos, videos and other personal media.
In September 2007, Nokia announced its intention to acquire Enpocket, a supplier of
mobile advertising technology and services.
In October 2007, pending shareholder and regulatory approval, Nokia bought Navteq , a
U.S.-based supplier of digital mapping data, for a price of $8.1 billion. Nokia finalized
the acquisition on 10 July 2008.
In September 2008, Nokia acquired OZ Communications, a privately held company with
approximately 220 employees headquartered in Montreal, Canada.
On 24 July 2009, Nokia announced that it will acquire certain assets of cellity, a privately
owned mobile software company which employs 14 people in Hamburg, Germany. The
acquisition of cellity was completed on 5 August 2009.
On 11 September 2009, Nokia announced the acquisition of "certain assets of Plum
Ventures, Inc, a privately held company which employed approximately 10 people with
main offices in Boston, Massachusetts. Plum will complement Nokia's Social Location
services".
On 28 March 2010, Nokia announced the acquisition of Novarra, the mobile web
browser firm from Chicago. Terms of the deal were not disclosed. Novarra is a privately
held company based in Chicago, IL and provider of a mobile browser and service
platform and has more than 100 employees.
On 10 April 2010, Nokia announced its acquisition of MetaCarta , whose technology was
planned to be used in the area of local search, particularly involving location and other
services. Financial details of acquisition were not disclosed.
Nokia has acquired Smarterphone in 2012. Also Nokia acquired Scalado in 2012.
INTRODUCTION TO MARKETING
"Marketing is the process of planning and executing the conception, pricing, promotion,
and distribution of ideas, goods, services, organizations, and events to create and maintain
relationships that will satisfy individual and organizational objectives." The new definition
of marketing, as released by the American Marketing Association is:-
Marketing is an organizational function and a set of processes for creating, communicating
and delivering value to customers and for managing customer relationships in ways that
benefit the organization and its stakeholders.
"Marketing is a social and managerial process by which individuals and groups obtain
what they need and want through creating and exchanging products and value with others."
(Kotler & Armstrong 1987) The Mission of marketing is satisfying customer needs . That
takes place
in a social context. In developed societies marketing is needed in order to
satisfy the needs of society's members. Industry is the tool of society to produce products
for the satisfaction of needs . Marketing is one of the most important functions in business.
It is the
discipline required to understand customers' needs and the benefits they seek. Academics
does not have one commonly agreed upon definition. Even after a better part of a century
the debate continues. In a nutshell it
consists of the social and managerial processes by which products (goods or services) and
value are exchanged in order to fulfill the needs and wants of individuals or groups.
Although many people seem to think that
"Marketing" and "Advertising" are synonymous, they are not. Advertising is
simply one of the many processes that together constitute Marketing. Marketing is the
process of communicating the value of a product or service to customers. Marketing
might sometimes be interpreted as the art of selling products, but sales is only one part of
marketing. As the term "Marketing" may replace "Advertising" it is the overall strategy
and function of promoting a product or service to the customer.
From a societal point of view, marketing is the link between a society’s material
requirements and its economic patterns of response. Marketing satisfies these needs and
wants through exchange processes and building long term relationships. The process of
communicating the value of a product or service through positioning to customers.
Marketing can be looked at as an organizational function and a set of processes for
creating, delivering and communicating value to customers, and managing customer
relationships in ways that benefit the organization and its shareholders. Marketing is the
science of choosing target markets through market analysis and market segmentation, as
well as understanding consumer buying behavior and providing superior customer value.
There are five competing concepts under which organizations can choose to operate their
business; the production concept, the product concept, the selling concept, the marketing
concept, and the holistic marketing concept. The four components of holistic marketing
are relationship marketing, internal marketing, integrated marketing, and socially
responsive marketing. The set of engagements necessary for successful marketing
management includes, capturing marketing insights, connecting with customers, building
strong brands, shaping the market offerings, delivering and communicating value,
creating long-term growth, and developing marketing strategies and plans
FUNCTIONS OF MARKETING:-
Distribution
Selling
Financing
Market Information Management
Pricing
Product/Service Managemnt
Promotion
In modern society production and consumption are apart from each other. Marketing
connects them. From the societal point of view, marketing is a philosophy which shows
how to create effective production systems and consequently prosperity.
Business is a subsystem of society, which has both a social and an economic role. Thus, a
company must operate in a way that will make possible the production of benefits for
society and, at the same time, produce profits for the company itself. (Davis, K. et al.
1980) The role of marketing in society means also responsibilities. In addition to economic
and social responsibility, ecological responsibility is nowadays emphasized. According to
some definitions, environmental responsibility is part of social responsibility.
Improvement of marketing is related to the changing emphases of economic, social and
environmental responsibility.
Advantages
identifies needs and wants of consumers
determines demand for product
aids in design of products that fulfill consumers needs
outlines measures for generating the cash for daily operation, to
repay debts and to turn a profit
identifies competitors and analyzes your product's or firm's
competitive advantage
identifies new product areas
identifies new and/or potential customers
allows for test to see if strategies are giving the desired results
Disadvantages
identifies weaknesses in your business skills
leads to faulty marketing decisions based on improperly analyzed
data
creates unrealistic financial projections if information is interpreted
incorrectly
identifies weaknesses in your overall business plan
Nature and role of marketing
All modern organisations engage in marketing so as to be able to please and win the loyal
support of their customers. Gillette engages in marketingto find out about the needs and
requirements of shavers,
banks engage in marketing research to find out about its customers financial services
requirements, and the Inland Revenue engages in market research to find out about the
needs and requirements of taxpayers and other clients.The Chartered Institute of
Marketing uses the following definition of marketing:
'Marketing is the management process responsible for identifying, anticipating and
satisfying consumer requirements profitably.'
The definition places consumers at the centre of the organisation's activities - whether
they be consumers of Kellogg's Special K, the pupils or parents of children at the local
school, or people queuing up to watch Nottingham Panthers play ice hockey.
Some organisations are very close to their consumers - for example, a post office in a
small town. For other organisations consumers may be thousands of miles away - for
example, Cadbury Schweppes selling confectionery and soft drinks around the world.
The principle that the 'Consumer is King and Queen' is just as relevant to the organisation
engaged in international marketing. As we’ve seen the key objective of an organization’s
marketing efforts is to develop satisfying relationships with customers that benefit both
the customer and the organization. These efforts lead marketing to serve an important
role within most organizations and within society.
At the organizational level, marketing is a vital business function that is necessary in
nearly all industries whether the organization operates as a for-profit or as a not-for-
profit. For the for-profit organization, marketing is responsible for most tasks that bring
revenue and, hopefully, profits to an organization. For the not-for-profit organization,
marketing is responsible for attracting customers needed to support the not-for-profit’s
mission, such as raising donations or supporting a cause. For both types of organizations,
it is unlikely they can survive without a strong marketing effort.
Marketing is also the organizational business area that interacts most frequently with the
public and, consequently, what the public knows about an organization is determined by
their interactions with marketers. For example, customers may believe a company is
dynamic and creative based on its advertising message.
At a broader level marketing offers significant benefits to society. These benefits include:
Developing products that satisfy needs, including products that enhance society’s quality
of life
Creating a competitive environment that helps lower product prices
Developing product distribution systems that offer access to products to a large number
of customers and many geographic regions
Building demand for products that require organizations to expand their labor force
Offering techniques that have the ability to convey messages that change societal
behavior in a positive way (e.g., anti-smoking advertising)i
There are a number of key ingredients to the Chartered Institute of Marketing definition:
Identifying - This will involve answering questions such as 'How do we find out what
the consumer's requirements are?' and 'How do we keep in touch with their thoughts and
feelings and perceptions about our good or service. This is a key purpose of market
research.
Anticipating - Consumer requirements change all the time. For example, as people
become richer they may seek a greater variety of goods and services. Anticipation
involves looking at the future as well as at the present. What will be the Next Best Thing
(NBT) that people will require tomorrow.
Satisfying - Consumers want their requirements to be met. They seek particular benefits.
They want the right goods, at the right price, at the right time in the right place.
Profitability - Marketing also involves making a margin of profit. An organisation that
fails to make a profit will have nothing to plough back into the future. Without the
resources to put into ongoing marketing activities, it will not be able to identify,
anticipate or satisfy consumer requirements.
Levels of Marketing
Strategic Marketing attempts to determine how an organization competes against its
competition in a market place. In particular, it aims at generating a competitive advantage
relative to its competition. Operational Marketing executes marketing functions to attract
and keep
customers and to maximize the value derived from them, as well as to satisfy the customer
with prompt services and meeting the customer expectations. Operational Marketing
includes the determination of the marketing mix.
The Social Function of Marketing
In modern society production and consumption are apart from each other.
Marketing connects them. From the societal point of view, marketing is a
philosophy which shows how to create effective production systems and
consequently prosperity.
Business is a subsystem of society, which has both a social and an economic role. Thus, a
company must operate in a way that will make possible the production of benefits for
society and, at the same time, produce profits for the company itself. (Davis, K. et al.
1980) The role of marketing in society means also responsibilities. In addition to economic
and social responsibility, ecological responsibility is nowadays emphasized. According to
some definitions, environmental responsibility is part of social
responsibility. Improvement of marketing is related to the changing emphases of
economic, social and environmental responsibility. Goodpaster and Matthews (1982)
analyse three patterns of
thought which can be distinguished for a company's social responsibility:
1. The invisible hand;
2. The hand of government; and
3. The hand of management.
1. The invisible hand view (promoted by e.g. Milton Friedman) concludes that the only
social responsibilities of business organizations are to make profits and to obey laws. Free
and competitive market-place will ensure the moral behaviour of companies. The common
good is best served when individuals and organizations pursue competitive advantage.
2. The hand of government view (promoted by e.g. John Kenneth
Galbraith) concludes that companies are to pursue rational and purely economic
objectives. It is the regulatory hand of the law and political process which guides these
objectives towards common good.
3. The hand of management view (presented by Goodpaster & Matthews) would put the
responsibility of a company's actions into the hands of the company itself. It is concluded
that the moral responsibilities of an individual may be projected into an organization, and
that the concepts of an individual's responsibility and a company's responsibility are
largely
parallel. Therefore, organizations should be no less or no more responsible than ordinary
persons.
The Traditional and Integrated Functions of Marketing
Traditionally, marketing has been seen as a link between production and customer. The
situation could be captured better by using the term selling.
Selling is associated to the so- called "Production and Sales Eras of Marketing". Slogans:
"Make what you can make" and "Get rid of what you have made" describe the traditional
view of marketing/selling. The following figure shows the role of traditionally oriented
marketing in
(traditionally oriented) management.
Marketing was born out of a need to take better into consideration the demand factors in
production planning. The function of marketing is to channel information of consumer
needs to the production and satisfaction of needs to consumers. The basic power of
marketing is the aspiration to
produce and sell only that kind of products which have demand. Marketing integrates the
whole company to serve this demand. Marketing aims at effective production systems,
where information is transmitted effectively between production and consumption.
Market Segmentation
Market segmentation is one of two general approaches to marketing; the other is mass-
marketing. In the mass-marketing approach, businesses look at the total market as though
all of its parts were the same and market accordingly. In the market-segmentation
approach, the total market is
viewed as being made up of several smaller segments, each different from the other. This
approach enables businesses to identify one or more appealing segments to which they can
profitably target their products and
marketing efforts. The Market-Segmentation process involves multiple steps. The first is to
define the market in terms of the product's end users and their needs. The second is to
divide the market into groups on the basis of their characteristics and buying behaviors.
Possible bases for dividing a total market are different for consumer markets than for
industrial markets. The most common elements used to separate consumer markets are
demographic factors,characteristics, geographic location, and perceived product benefits.
Demographic Segmentation involves dividing the market on the basis of statistical
differences in personal characteristics, such as age, gender, race, income, life stage,
occupation, and education level. Clothing manufacturers, for example, segment on the
basis of age groups such as
teenagers, young adults, and mature adults. Jewelers use gender to divide markets.
Cosmetics and hair care companies may use race as a factor; home builders, life stage;
professional periodicals, occupation; and so on.
Psychographic Segmentation is based on traits, attitudes, interests, or lifestyles of potential
customer groups. Companies marketing new products, for instance, seek to identify
customer groups that are positively disposed to new ideas. Firms marketing
environmentally friendly products would single out segments with environmental
concerns. Some financial
institutions attempt to isolate and tap into groups with a strong interest in
supporting their college, favorite sports team, or professional organization through logoed
credit cards. Similarly, marketers of low-fat or low-calorie products try to identify and
match their products with portions of the market that are health-or weight-conscious.
Geographic Segmentation entails dividing the market on the basis of where people live.
Divisions may be in terms of neighborhoods, cities, counties, states, regions, or even
countries. Considerations related to geographic grouping may include the makeup of the
areas, that is, urban, suburban, or rural; size of the area; climate; or population. For
example, manufacturers
of snow-removal equipment focus on identifying potential user segments in areas of heavy
snow accumulation. Because many retail chains are dependent on high-volume traffic, they
search for, and will only locate in, areas with a certain number of people per square mile.
Product Benefit Segmentation is based on the perceived value or advantage consumers
receive from a good or service over alternatives. Thus, markets can be partitioned in terms
of the quality, performance, image, service, special features, or other benefits prospective
consumers
seek. A wide spectrum of businesses—from camera to Automobile Marketers—rely on
this type of segmentation to match up with customers Many companies even market
similar products of different grades or different accompanying services to different groups
on the basis of productbenefi preference.
Factors used to segment industrial markets are grouped along different lines than those
used for consumer markets. Some are very different; some are similar. Industrial markets
are often divided on the basis of organizational variables, such as type of business,
company size,
geographic location, or technological base. In other instances, they are segmented along
operational lines such as products made or sold, related processes used, volume used, or
end-user applications. In still other instances, differences in purchase practices provide the
segmentation base. These differences include centralized versus decentralized
purchasing; policy regarding number of vendors; buyer-seller relationships; and similarity
of quality, service, or availability needs. Although demographic, geographic, and
organizational differences enable marketers to narrow their opportunities, they rarely
provide enough specific
information to make a decision on dividing the market. Psychographic data,
operational lines, and, in particular, perceived consumer benefits and preferred business
practices are better at pinpointing buyer groupings—but they must be considered against
the broader background. Thus, the key is to gather information on and consider all
segmentation bases before making a decision.
Once potential market segments are identified, the third step in the process
is to reduce the pool to those that are (1) large enough to be worth pursuing, (2) potentially
profitable, (3) reachable, and (4) likely to be responsive. The fourth step is to zero in on
one or more segments that are the best targets for the company's product(s) or capacity to
expand. After the selection is made, the business can then design a separate marketing
mix for each market segment to be targeted. Adopting a market-segmentation approach
can benefit a company in several specific areas. First, it can give customer-driven direction
to the
management of current products. Second, it can result in more efficient use of marketing
resources. Third, it can help identify new opportunities for growth and expansion. At the
same time, it can bring a company the broad benefit of a competitive advantage.
MARKET SEGMENTATION FOR NOKIA:
The decibel levels in the cellular market are increasing with service providers stepping on
the gas. Not to be left behind, handset manufacturers
are using precise segmentation to carve up their share. Divide and rule seems to be
working!
According to a report published in May 2001, the all-India cellular subscriber figures stand
at 38,71,514. With aggressive marketing by service providers, this figure is expected to
increase at a very rapid rate. If current decibel levels in the market are anything to go by,
these
expectations are well on the way to being met. However, amidst this entire
melee one cannot ignore the efforts of the handset manufacturers. Both service providers
and handset manufacturers have been complementing each other well with each fuelling
the demand for the other.
Industry observers attribute the success of handset manufacturers to shrewd market
segmentation. The big three of the mobile handset market - Nokia, Ericsson and Motorola,
have studied the market and segmented it precisely.
SEGMENTATION OF NOKIA AND SEGMENTATION MODEL
FOLLOWED BY COMPETITORS
Connecting people!
Nokia, arguably the biggest player in the world, has divided the market into
four segments:
* Hi-fliers: The biggest segment as far as Nokia is concerned consists of 'Hi-Fliers',
corporate executives who use a mobile phone to increase productivity at work. Aged
between 25-45, the segment looks for data transmission and other business-related
features. In most cases, the
company sponsors the handset, hence price is not a major consideration.
* Trendsetters: In any technology adoption cycle, the first segment to adopt an emerging
technology is dubbed as 'the early adopters'. For Nokia, these early adopters are
'Trendsetters' who are most receptive to advanced models. This was the segment at which
WAP-enabled models were aimed.
* Social contact: The third segment for Nokia is the upwardly mobile, socially-conscious
segment that uses a mobile to stay in touch. Today's youth and affluent housewives
constitute two major chunks of the segment.
* Assured: The fourth and last segment as defined by Nokia comprises of CEOs, high-
profile celebrities, industrialists and other high "net worth" individuals. The fact that the
segment cannot do without a mobile phone makes it the 'assured' segment.
MARKETING STRATEGIES
Introduction to Marketing Strategies
“STRATEGY” is a very broad term which commonly describes any thinking that looks at
the bigger picture. Successful companies are those that focus their efforts strategically. To
meet and exceed customer satisfaction, the business team needs to follow an overall
organizational
strategy. A successful strategy adds value for the targeted customers over the long run by
consistently meeting their needs better than the competition does.
Strategy is the way in which a company orients itself towards the market in which it
operates and towards the other companies in the marketplace against which it competes. It
is a plan an organization formulates to gain a Sustainable Advantage over the competition.
The Marketing Concept of building an organization around the profitable
satisfaction of customer needs has helped firms to achieve success in highgrowth,
moderately competitive markets. However, to be successful in markets in which economic
growth has leveled and in which there exist many competitors who follow the marketing
concept, a well-developed marketing strategy is required. Such a strategy considers a
portfolio of
products and takes into account the anticipated moves of competitors in the market.
Consumers seek certain attributes in products and these attributes lead to certain benefits
for them. When the benefits matter to them, over time they learn to choose products which
possess those attributes that lead to the relevant consequences.
Understanding these linkages between product attributes, their consequences and their
ultimate consumer ‘values’ are important if one has to arrive at a positioning that the
consumer can relate to. Benefit Laddering refers to a technique which focuses on product
attributes and
hence provides a link for the changing value proposition of a product. It
helps the company to communicate its final value proposition to the consumer and hence
help the company to arrive at the desired positioning of the product in the market.
Price / Selling Effort Strategies : A firm that follows a skimming strategy seeks to be
the first to introduce a product with very good performance, selling it to the innovator
market segment and charging a premium price for it. It makes as much profit as possible,
then
moves on when the competition arrives. The price is likely to fall over time as competition
is encountered. Such a skimming strategy contrasts with a penetrating strategy, which
seeks to gain market share by sacrificing short-term profits, and increasing the price over
time as market share is gained.
Competitors have certain strengths and abilities. To succeed, a firm must leverage its
own unique abilities.
A firm should prepare defensive strategies before potential threats arrive. If the
competition surprises a firm with the introduction of a vastly superior product, the firm
should resist the temptation to proceed with its mediocre product. A firm never should
introduce a
product that is obsolete when it hits the market.
The competition's probable response to a firm's actions should be
considered carefully.
Nokia's new strategy in US market
I, and other much wiser bloggers, have already written about how unsuccessful Nokia had
been in selling phones on the US market. It seems that American people are resistant to
smart phones, they're simply satisfied with text messaging and using their phones mainly
for voice calls.
Unfortunately, the carriers didn't make it easy for Nokia to be the #1 in
North-America, either. But that might change over time. As Nokia reported in their press
release, they are trying to find new ways to sell their phones, but this time without
involving the carriers. I hope that Ewan's prediction will come true and users are now
ready to buy and use such advanced mobile gadgets. Especially if they are from the
business segment: first, it's more likely that those users can afford cell phones for hundreds
of $s, second, they might even use more than 10% of the provided functionality.
NOKIA’S VARIOUS MARKETING STRATEGIES
Local services easily:
With the Nokia Local Marketing Solution, consumers will be able to easily discover and
easily initiate services. A phone call to the nearest taxi stand, opening a WAP or HTTP
connection to the local movie theatre portal can be made with just a few clicks. Rather than
having to browse through multiple menus, the special application in the phone makes it
possible for the consumer to discover locally relevant services from service advertisements
collected in the background by the special phone application while the consumer moves
around.
Nokia Local Marketing
Solution:
With the Nokia Local Marketing Solution mobile operators and service providers can
promote their own or partnered SMS and data services. Even local businesses could easily
advertise their own services in relevant places at relevant times. The solution creates
demand for building new,
really local services thus offering a new revenue opportunity area. The
solution consists of:
• an application in the phone – Local Info,
• a mountable, approx. A5 sized device called the Nokia Service Point LMP
10 used for sending over Bluetooth service advertisements to the
consumers’ phones and
• The Nokia Service Manager LMM 10, which is a back-end server for content and service
point management. Services are advertised via Bluetooth to consumers’ phones when they
pass a are automatically saved to the Local Info service point. These service
advertisements phone
application. Since the area where service is advertised is well defined, the solution enables
the advertisement and provision of services to have a relation to Mobile operators have
made big investments to make it possible to provide mobile data services. It is difficult for
the mobile operator to inform its consumers when there is a new mobile data service
available.
The potential of using Bluetooth has not yet been utilized by mobile operators as a mean to
market services. Content owner needs
In this context, a content owner is hence there is no need for local LAN cabling a company
providing any type of content to consumers through mobile phones. Currently, the most
typical content owners are companies providing, for example news, sports, stock, and
weather reports. These companies typically provide WAP and/or SMS based-services, but
also provide WWW-pages customized for access from mobile phones. Virtually any
company providing their services for consumers could be a content owner, including
different kinds of stores, kiosks, restaurants, shopping centers, movie theatres, video
rentals, retailers etc. These companies could provide access to services through phones, for
example advertising their toll-free numbers and WWW addresses, special offers,
campaigns and competitions. Unfortunately, there are only a limited number of channels
for effectively advertising digital services. Although the mobile
phone services of content owners are accessible and can be advertised in
newspapers, on television, on the radio in posters, the consumers have to enter SMS codes
and URLs manually in their phones to access these services. For or White Paper a certain
place. Service advertisements can be time-specific and be valid for a limited period. When
the validity of an advertisement expires, it disappears from the consumer’s phone. The
consumer can set preferences on several criteria, thus set preferences on several criteria, is
most interested in Exist activates the service, the UI informs the phone applications are
used for service access. Before the consumer consumer the service type and price. From
the user-interface, the consumer can set preferences, for example which category of
service
advertisements to receive and, most important, to select which service providers they wish
to receive the adverts from.The actual usage of cellular voice and data related services
happens over cellular network by just clicking the service icon from the phone application.
The solution supports the activation of voice, SMS, WAP/HTML browsing and streaming
services.
The solution also makes it possible to have embedded content behind the
service icon, for example to show a coupon, an HTML/WAP file or play an audio/video
clip. The service advertisement are created and managed with the Nokia Service Manager
LMM 10, which uploads these to the local service points. The connection between the
service points and the central, back-end service manager is over GPRS hence there is no
need for local
LAN cabling.
Digital Marketing Strategies
Interactive Marketing
With the advent of the internet, mobile communications and digital
interactive Television (iTV), consumers have ensured that at almost every moment of their
waking lives they have the opportunity to interact, participate, decide, and provide
feedback. A marketer's dream, or so one would think. Unfortunately, marketing in many
companies still remains a nebulous soft function. The 'build it and they will come' attitude
to multimillion
pound marketing campaigns appears to prevail in too many organisations.
Many companies that have used internet and mobile advertising claim that they have been
disappointed with the results. Executives still stuck within the traditional media paradigm
have yet to understand the full value of
interactive advertising and immediate customer response. In addition, they rarely have the
necessary information infrastructure in place to capture and extract value from interactive
campaigns and the customer feedback they provide. As a result, it is no surprise that
marketers by and large fail to take advantage of the opportunities that the internet or the
mobile platform
provide, either individually or in conjunction with other digital channels. If companies
contemplating the use of iTV follow a similar pattern there is a significant risk that this
platform too will be either underutilised or misused.
There are a number of companies however, that are emerging as veritable maestros of
interactive marketing. They see the opportunity and take advantage of the potential of each
channel to add value. They embrace the digital customer, and they know exactly what
roles the internet, the mobile, and digital TV play in their customers' lives, as well as how
and when these
technologies are used. These companies understand that traditional media, internet, mobile
telephony, and iTV provide complementary marketing channels that can be used to
influence customer behaviour at the different stages of the purchasing cycle.
The Dynamic Customer
By being constantly connected, consumers are allowing marketers access to parts of their
lives that not long ago would have been much more difficult to penetrate. Digital
technologies, and the content they deliver, have added dynamic segmentation and targeting
capabilities to more traditional methods. Customers needs, attitudes and propensity to
purchase evolve and change by the minute, as the influences that surround them alter their
desires, perspectives and physical state. With the introduction of so many communication
options (e.g. e-mail, fixed line, mobile phone, mail, face to face, iTV) the consumers
preferred method of
response has also evolved. The comparatively blunt 'traditional media' instruments of TV,
press, radio and outdoor, that have looked to influence consumer trends over time, have
been supplemented by media that can instantly respond to desires and needs.
Savvy marketers are learning to use this knowledge to hone their customer segmentation
and targeting strategies, contemplating which platform to use in order to capture the
customer at the optimum time. Organisations are
increasingly looking to use interactive media to create strong associations between their products and
services and specific aspects of their customers' lives. A good example is Domino's Pizza who is
deliberately associating its brand with specific content (The Simpsons, family show), at a particular
time of day (dinnertime) with a highly distinctive signature ( jarring, loud sounding siren to denote
heat). The pizza delivery service must surely rank as a perfect real life example of
Pavlov's conditioned reflex experiment. Just the sound of the siren most likely suffices today to have masses
across Britain salivating for 'hmmm... Simpsons... dinner... Domino's'.
The campaign simultaneously creates awareness, an impulse and the opportunity to
purchase. The red interactive button on the television remote allows viewers to act on
their impulse immediately, minimising the opportunity to change their mind.
Moreover, Domino's administers the marketing coup de grace by making it easier over
time to use the service. Cookies keep track of previous orders and choices and literally
allow customers to have dinner delivered to their door at the touch of a button ('same as
last time?'). For Domino's, the interactive television remote control has proven to be a
magic wand. Not surprisingly, sales through online channels now reach a significant
£300,000 per month from 20,000 orders. The pizza delivery service could go further still,
though, by extending its
presence to additional digital platforms. Mobile phones come to mind immediately as a
channel that can prove as sticky as American cheese. Using SMS (Short Message Service),
the text messaging service to offer electronic coupons would, for example, allow Domino's
to further increase loyalty and pervasiveness in its customers' lives. Learning how to
capitalise on obvious synergies between the various channels is key to getting the
most out of digital marketing campaigns! Exploiting Platform Synergies
The organisations that successfully use several digital channels in a complementary
fashion will unlock the full value of digital marketing. To do so, they will need to have a
thorough grasp of the strengths of each platform, the context in which they are best used,
the content/offers that are appropriate to both the platform and the customer segment as
well as the fulfillment expectation for each platform. Not a task to be taken lightly. So
what are these strengths?
Digital interactive Television
Traditional TV has for a long time been an awareness creation tool par excellence.
However, traditional TV forced viewers to file away that interest until the next purchase
opportunity, or make the effort of noting down a number and picking up a phone - quite a
lot of effort for your average viewer. Now iTV brings a new interactive dimension.
Viewers can enter a separate interactive area, whilst still watching their current
programme, and have access to more information and/or an opportunity to purchase. So
iTV has now evolved as a vehicle that can inform, persuade and provide the opportunity to
purchase in one fell swoop.
Internet on the PC
The PC is the information vehicle of choice; a recent Forrester report revealed that by 2005
US consumers will research $378 billion in cars, trips, and clothes online before buying.
The higher the cost of a product or service, the greater the importance of the internet as a
step in the purchasing cycle. Another Forrester survey amongst retail companies estimated
that 25% of purchases were sparked by their internet site against 2% of sales actually
purchased on the internet.
Mobile Telephony
Cell phones and other mobility devices (PDAs etc.) are ideal for location-based advertising
and as a tool to remind consumers of specific products and services. The pervasiveness of
these devices makes them an excellent vehicle for marketers looking to create
stickiness and improve customer loyalty. SMS-based marketing has proven very effective
for stimulating purchase of low cost location based offerings. Digital novelties like
electronic coupons are helping to create an ever more constant presence for products and
services.
As an example, BTCellnet's SMS-based marketing campaign around the Channel 4
programme, Big Brother has proven very successful. SMS information teasers raised WAP
usage by a significant 20%. Lastminute.com is also adopting an increasingly sophisticated
digital marketing programme. Through its multi-platform strategy
the company has successfully achieved higher brand visibility by creating an impression of
omni-presence. In addition, Lastminute.com ensured a high level of service (anytime,
anywhere), and enhanced customer intimacy by targeting the right customers, at the right
time. The company's digital marketing strategy is designed around platform peak-times:
internet peaktimes around lunch-hour, digital TV peak-times around home/family/dinner
time, and WAP/GPRS peak-times during weekend leisure time. Being available on the
most suited platform at the most promising time allows Lastminute.com to deliver highly
targeted messages to tightly segmented audiences. This strategy has enabled
Lastminute.com to maximise its revenue by allowing the customer to use their response
mechanism of choice.
NOKIA STRATEGIC MARKETING IN INDIA
Nokia redefines fashion phones in India with the latest L'Amour collection Nokia has
introduced a collection of three trend-inspired mobile phones, the Nokia 7360, Nokia 7370
and Nokia 7380. Each model in Nokia's the L'Amour Collection offers a beautiful mix of
contrasts infusing cultural and ethnic influences with luxurious touches of the unexpected.
Hints of vintage and craftsmanship, are fused with natural materials, colours and patterns,
all carefully crafted and layered with a passion for detail. In the design and development of
the L'Amour Collection, Nokia's Design team has looked to materials such as amber,
ceramic, turquoise, silk and enamel for inspiration. Craft techniques such as enamelling
and etching added a creative spark to the graphics, finishes and colours selected for
each model in the collection.
Nokia 7380: With etched mirrored surface and discreet keyless dial, the Nokia 7380 comes
with a leather cover and a mirrored display. The technology includes a 2-megapixel
camera and intuitive voice dialing.
Key features:
Keyless dial
2-megapixel camera, 4x zoom
Enhanced Voice Commands
MP3 player
Nokia 7370: The Nokia 7370 "swivels" open to reveal its elegantly hidden keypad.
Beautiful patterns into the elegant metal trims are contrasted by leather-inspired faceplates.
The Nokia 7370 is available in two colour schemes, coffee brown and warm amber, with
each model offering a distinct set of graphics, screensavers and even dedicated camera
keys.
Key features:
1.3 megapixel camera, 8x zoom
2-inch QVGA colour screen (320 x 240 pixels)
Stereo speakers with 3D sound effects
Video ring tones
FM Radio
Nokia 7360: Trend-conscious men and women will appreciate the Nokia 7360's mixture of
patterns and textures, which are perfectly complemented by elegant accessories, including
straps and carrying pouches. The Nokia 7360 is also available in two signature L'Amour
Collection colour schemes, coffee brown and warm amber. Nokia has jumped into the
growing market of online distribution of tones, graphics and games downloads in India and
is offering a choice of 120 games which can be downloaded at Rs 50 per game. However,
users will have to shell out an additional Rs 10-25 for the airtime depending on the
size of the game.
Nokia claims to be the first handset manufacturer to enter this business in
India and the first company to launch games downloads in the Indian market. So far, only
online content and utility services companies such as MSN and Yahoo have been offering
ringtones and graphics downloads to mobile phone enthusiasts.
The business of offering ringtones and graphics is growing almost by 100 per cent,
according to industry experts. The download business for the calendar year 2003 was
estimated to be around Rs 10 crore and is expected to touch Rs 20 crore this year. These
estimates do not take airtime charges paid by the users for downloads.
“Nokia is not entering this business to make money. In fact, a large part of the revenue will
be shared by the service operators and content providers. Our interest is to help mobile
service operators to increase their average revenue per user (ARPU) and to influence
mobile phone users to upgrade to the latest models being launched by the company,”
Nokia India marketing head Gautam Advani said.
Mr Advani claimed that the company launched a game named ’Makhan Chor’ during
’Janmasthmi Utsav’ last month and the response was very encouraging.
Nokia India has already tied up with with Bollywood production houses such as Harry
Baweja, Rajshri Pictures and RS Entertainment for graphics and movies.
It has also entered into an agreement with Indian Performing Rights Society for ringtones.
PROMOTIONAL STRATEGIES:
"Push or Pull"
Marketing theory distinguishes between two main kinds of promotional
strategy - "push" and "pull".
Push
A “push” promotional strategy makes use of a company's sales force and trade promotion
activities to create consumer demand for a product. The producer promotes the product
to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to
consumers.
A good example of "push" selling is mobile phones, where the major handset
manufacturers such as Nokia promote their products via retailers such as Carphone
Warehouse. Personal selling and trade promotions are often the most effective promotional
tools for companies such as Nokia – for example offering subsidies on the handsets to
encourage retailers to sell higher volumes.
A "push" strategy tries to sell directly to the consumer, bypassing other distribution
channels (e.g. selling insurance or holidays directly). With this type of strategy, consumer
promotions and advertising are the most likely promotional tools.
Pull
A “pull” selling strategy is one that requires high spending on advertising and consumer
promotion to build up consumer demand for a product. If the strategy is successful,
consumers will ask their retailers for the product, the retailers will ask the wholesalers, and
the wholesalers will ask the producers.
A good example of a pull is the heavy advertising and promotion of children's’ toys –
mainly on television. Consider the recent BBC promotional campaign for its new pre-
school programme – the Fimbles.
Aimed at two to four-year-olds, 130 episodes of Fimbles have been made and are featured
everyday on digital children's channel CBeebies and
BBC2.
As part of the promotional campaign, the BBC has agreed a deal with toy maker Fisher-
Price to market products based on the show, which it hopes will emulate the popularity of
the Tweenies. Under the terms of the deal, Fisher-Price will develop, manufacture and
distribute a range of Fimbles products including soft, plastic and electronic learning toys
for the UK and
Ireland.
PRICING STRATEGIES
Ultra low cost phones--less than Rs 2,000--are fuelling demand in costsensitive India,
where more than 4 million new users are entering the 85.4 million strong wireless sector
each month. The number of mobile services users surged 47 percent in 2005, and now
exceeds the population of Germany. India is expected to be the world's third largest mobile
market by the end of this year, behind China and the
United States.
"We anticipate that there will be a long-term sustainable demand for mobile telephony in
the fast-growing Indian market," Chief Executive Jorma Ollila said at the launch of the
plant in Sriperumbudur, on the outskirts of
Chennai. Bundles: Another category where penetration is next to negligible is the fast-
growing mobile telephony market — penetration stands at roughly 5%. Here, even as price
continues to be a significant factor for determining the choice of handset or service
provider, the value equation, according to Sanjay Behl, marketing head of Nokia India, is
even more imperative. Nokia found success with its ‘Made in India’ Nokia 1100, which
incorporated unique features such as a torchlight, a dust-resistant keypad and an anti-slip
grip to appeal to the semi-urban markets. Importantly, Behl says that even applications and
software — such as T9 or language
interface and text input — have to be customised to meet consumer needs. The 1100,
which currently retails at Rs 2,700, is the largest selling handset in India with a market
share of about 25% in terms of volumes, and 16% in terms of value. On the other hand,
another Nokia phone, the 2600, priced at Rs 4,200, is the highest selling colour model in
India, with a 7% market share. In the colour segment alone, the 2600 has a 17% share.
“Clear evidence of how features (colour screen) and price have been cleverly
bundled to drive penetration,” says Behl.
Four P’s
In popular usage, "Marketing" is the promotion of products, especially Advertising and
Branding. However, in professional usage the term has a wider meaning which recognizes
that marketing is customer centered. Products are often developed to meet the desires of
groups of customers or even, in some cases, for specific customers. E. Jerome McCarthy
divided marketing into four general sets of activities. His typology has become so
universally recognized that his four activity sets, the Four P’s, have passed into the
language.
The Four P’s are:
Produc t : The product aspects of marketing deal with the specifications of the actual
good or service, and how it relates to the end-user's needs and wants. The scope of a
product generally includes supporting elements such as warranties, guarantees, and
support.
Pricing : This refers to the process of setting a price for a product, including
discounts. The price need not be monetary - it can simply be what is exchanged for the
product or service, e.g. time, or attention.
Promotio n : This includes advertising, Sales promotion, Publicity, and personal
selling, and refers to the various methods of promoting the product, brand, or company.
Placemen t: refers to how the product gets to the customer; for example, point of sale
placement or Retailing. This fourth P has also
sometimes been called Place, referring to the channel by which a product or service is sold
(e.g. online vs. retail), which geographic region or industry, to which segment (young
adults, families, business people), etc.
PRODUCTS OFFERED BY NOKIA
There are Various Ranges of Products that Nokia Offers. Especially in Mobile phones
Nokia is the Leading Manufacturer in it. Nokia Offers various Mobile Phones with varie
Quality, Shape, Size, Colour, etc. Nokia Offers a Varied Range of Mobile Phones & Other
accessories with it. All Mobile phones are having Different Specifications in it. Nokia is
Launching a New Products Every Year.It First Does Analysis of Market & according to
Taste of Consumers It Launches its Products in Market. Till now Nokia has Launched a
No. of Products in Market & It had been very Successful for Nokia after launching so
many products. Nokia has Strengthened it Strategy of Working in Market. It has
Revolutionised all sectors in Market. No one is So Powerful as Nokia in Field of Mobile
Phones in India. There are so many Mobile Phones been in Market by Nokia. Several New
Techniques & Upgradation is being done to enhance & launch a new product every time in
Market. Nokia’s R& D Department is very much in Progress for working over bringing a
special change in every mobile phone its launching in market. After Launching Various
Mobile phones in market till now, Nokia is now Launching various new Models of Mobile
Phones i.e it is bringing new changes in the series of Mobile Phones. Firstly All Mobile
Phones used to have only Black& White/ Colour Display, Messaging. But now Nokia has
launched Various New Models of Mobile Phones in Mobile Series that it Has Rocked the
Market. The New Models are having various Greater, Advanced Facilities from that of
other phones till now. These New Models Which Nokia is going to Launch in market is
having all Types of
Features/Facilities like:-
1) WINDOW 8
2) FULL AMOLED DISPLAY
3) CAMERA UPTO 40 MP ,720 FPS
4) WIFI
5) ENHANCED GPS SYSTEM
6) 4.3” INCH DISPLAY
7) ULTRA SLIM
Product Portfolio
First generation
The Nokia Lumia series was first introduced to the market in November 2011 with the
release of two phones. While the Nokia Lumia 800 targets the high-end of the
smartphone marketplace, the Nokia Lumia 710 was intended to target the midrange
(feature phone) by offering an entry-level device at a lower price point.[1] The series
consists of Nokia's Windows Phone devices. Each phone comes in a variety of different
colours and specifications.
The Nokia Lumia 800 (codenamed Sea Ray) is a Windows Phone 7-OS powered
smartphone, first unveiled on 26 October 2011 at the Nokia World 2011 event with an
original pay as you go price of £400 SIM-free.[2] It was Nokia's first mobile phone to run
the Windows Phone OS and marked the company's shift of focus in favor of Windows
Phone for its premium-priced phones. The Lumia 800 shares its hardware design with the
previously released Meego-based Nokia N9 although there are some differences. The
most obvious difference is that Nokia has added a dedicated button for the camera on the
right hand side of the phone and has moved a dual LED flash directly above the Carl
Zeiss camera lens.[3] Despite a similar exterior, the Lumia 800 has a different interior than
N9. Lumia 800's chipset comes from Qualcomm, whereas the N9 is based on a Texas
Instruments OMAP chipset and CPU.[4][5]
The screen diagonal is 3.7 inches (800 x 480 pixels) which is smaller than Nokia's
previous phone with 3.9 inches (854 x 480 pixels) for N9, to conform with the Windows
Phone specifications list, which includes three capacitive softkeys placed under the glass.
A through-colored unibody shell is made from polycarbonate plastic. Nokia outsourced
the production of its Qualcomm-based Lumia 800 to Compal Electronics. According to
Nokia, this was due to time constraints and Compal's experience with the chipset. [4][6]
According to the same source future models, beginning with the 710 model, would be
built within a Nokia factory.[4] Devices for the European and Northern American markets
are configured, tested and packed by Nokia's factory in Salo, Finland.[7]
The Nokia Lumia 710 was released in the UK on the 1st of February 2012 with an initial
release price of £300 SIM-free. The main difference externally is the weight of the phone
weighing in at 125.5 grams a whole 15.5 grams lighter than its predecessor. Although the
Lumia 710 is the lighter of the two phones, it also is larger. The Lumia 710 dimensions
are (119 x 62.4 x 12.48mm) whereas the Lumia 800 has slightly smaller dimensions of
(116.5 x 61.2 x 12.1mm). The size and resolution of the screen does not differ though
with a size of 3.7 inches and a resolution of (800 x 480 pixels). Although the Nokia
Lumia 710 is limited to a ClearBlack TFT compared to the ClearBlack AMOLED on the
Nokia Lumia 800. The Nokia Lumia 710 has a removable rear cover which enables the
battery to be replaced, a feature the Nokia Lumia 800 does not provide. [8] The battery life
also differs substantially. The Lumia 710 offers a 1300 mAh Li-Ion battery compared to
the 1450 mAh Li-ion battery on offer with the Lumia 800. This results in a talk time of
6.9 hours for the Lumia 710 whereas the Lumia 800 offers 13 hours of talk which is
nearly double. The stand-by time of the Lumia 710 is 400 hours which oddly is greater
than the 265 hours on offer with the Lumia 800. The trend is similar when you take into
account 3G. The talk-time(3G) on offer with the Lumia 710 is 7.6 hours which is
significantly lower than the 9.5 hours on offer with the Lumia 800. The stand-by
time(3G) for the Lumia 710 is 400 hours which is higher than the 335 hours on offer with
the Lumia 800. Whilst playing music the Lumia 710 will last around 38 hours which is a
lot lower than the 55 hours which the Lumia 800 will last.[9]
Second release
The first Nokia Lumia series continued in April 2012 with the release of a further two
mobile phones. The Lumia 900 (a high end phone) was released on April 8, 2012
whereas the Lumia 610 (an entry level phone) was released in the first week of June. The
latter of the two is aimed at the budget market meaning the specifications of the phone
will be a lot less impressive than the Lumia 900 which is aimed at the higher end of the
market.
On release the Lumia 900 was priced at £399 SIM-free which is similar to the price of
the Lumia 800.[10] The lumia 900 is physically larger than the 800 with a screen size of
4.3 inches compared to the 3.7 inches of the Lumia 800. The resolution of the screens is
the same (480 x 800 pixels) although pixel densities are different with the Lumia 900
providing 217ppi and the Lumia 800 providing 252ppi. This means that the Lumia 900
weighs 160 grams compared to the slightly lighter 142 grams of the Lumia 900. Once
again the battery life is a major difference between the two phones. The lumia 900 offers
a 1830 mAh Li-Ion compared to the 1450 mAh Li-Ion battery provided by the Lumia
800. Surprisingly the Lumia 800 offers a larger talk time by providing 13 hours of talk
before running out of battery. This is substantially longer than the 7 hours of the Lumia
90o. But the Lumia 900 offers a longer stand-by time of 14.6 days compared to the 11
days of with the Lumia 800. It also provides a longer music playback time of 60 hours
compared to the 55 hours of the Lumia 800. The system chip found in the Lumia 900 is
the Qualcomm Snapdragon S2 APQ8055 which differs from the Qualcomm Snapdragon
S2 MSM8255 of the Lumia 800 (although the processor, graphics processor, system
memory and built in storage doeos not differ). The main difference when it comes to
taking images is that the Lumia 900 offers a 1.3 megapixel front-facing camera which is
a feature not provided with the Lumia 800. The music player in the Lumia 900 supports
several formats that the Lumia 800 does not. These include M4A (Apple lossless), M4B
and AMR. The Lumia 800 provides Facebook as a built-in online service which the
Lumia 900 does not provide.[11]
On release the Lumia 610 was priced at £150 (U.K price) SIM-free, which is half the
price of the Lumia 710.[12] This will mean that the Lumia 610 will most likely offer fewer
features than the Lumia 710. At first glance the phones look similar. The main difference
is the set of controls beneath the screen. The Lumia 710 has hardware buttons on a single
rocker-styled piece, while the 610 goes for three separate capacitive keys. There are also
some differences in the location of controls and connectivity ports. The Lumia 710 has
the power/lock key at the top while in the Lumia 610 it's on a side. [13] The physical size of
the phones is similar. The Lumia 610 weighs 132 grams which is only 6 grams heavier
than the 126 grams of the Lumia 710. The size and resolution of the screens are the same,
with each phone having a screen size of 3.7 inches and a resolution of 480 x 800 pixels.
The screens offer a pixel density of 252ppi. The colors on offer with the Lumia 610 is 65
536 which is a lot less than the 16 777 216 colors that the Lumia 710 can display. The
battery life of the phones does not differ much. Each offers a 1300 mAh Li-Ion battery.
The talk time life of the Lumia 610 is 6.5 hours, a little less than the 6.9 hours of the
Lumia 710. The stand-by time of the Lumia 610 is 24.2 days, significantly higher than
the 16.7 days of the Lumia 710. The music playback time of the Lumia 610 is 35 hours,
slightly less than the 38 hours of the Lumia 710. The system chip in the Lumia 610 is the
Qualcomm Snapdragon S1 MSM7227A. This differs from the Qualcomm Snapdragon S2
MSM8255. The processor in the Lumia 610 is the single core, 800 MHz, ARM Cortex-
A5. The Lumia 710 single core, 1400 MHz, Scorpion. The sytem memory contained
within the Lumia 610 is 256 MB RAM which is half the memory contained with the
Lumia 710. Both phones offer 8GB of built-in storage. The resolution of the camcorder
within the Lumia 610 has a resolution of 640x480 (VGA) (30 fps). This is less than the
1280x720 (720p HD) (30 fps) in the Lumia 710. The built-in online services provided
with the Lumia 610 are Facebook and Twitter. The Lumia 710 provides these services as
well as YouTube(upload), Flickr and Picasa.[14]
Third release
The Nokia Lumia first generation series continues with the release of the Nokia Lumia
510, which is expected in November 2012. The phone was specifically designed for
developing markets, such as China, India, Asia-Pacific and Latin America[15] and is
expected to cost around $199.[16] The Lumia 510 weighs 129 grams which is slightly less
than the 132 grams which the Lumia 610 weighs. The physical display size of the Lumia
510 is 4 inches which is larger than the 3.7 inches on offer with the Lumia 610 despite
weighing less. The screen resolution of each phone is the same (480 x 800 pixels) but the
Lumia 510 has a pixel density of 233ppi compared to the 252ppi on offer with the Lumia
610. The technology used with the Lumia 510 screen is LCD which differs from the TFT
used within the screen of the Lumia 610. Both mobiles can display 65 536 colors. Both
phones offer a 1300 mAh Li-Ion battery. The Lumia 510 offers 6.2 hours of talk time
before needing recharged which is slightly less than the 6.5 hours on offer with the
Lumia 610. The Lumia 510 offers a larger stand-by time of 30.8 days which is
significantly higher than the 24.2days on offer with the Lumia 610. The Lumia 510
provides 38 hours of music playback and 7.4 hours of video playback which is slightly
higher than 35 hours and 7 hours on offer with the Lumia 610. The only difference with
the hardware of the phones is that the Lumia 510 offers 4GB of built in storage which is
half of the 8GB on offer with the Lumia 610.[17] The main issues of the Lumia 510 are it
offers too little RAM memory, the camera lacks a flash, offers low resolution video
capture, no front facing camera and the phone lacks a microSD slot for storage
expansion.[18]
Second generation
In September 2012, Nokia announced its first Windows Phone 8 devices, the Nokia
Lumia 920 and 820. Both devices feature a dual-core processor, wireless charging, and
are 4G enabled, among other new features. Changes in the design of each model of Nokia
Lumia phone allowed each phone in the series to target a specific market area.
The Nokia Lumia 820 was released on November 9[19] with an initial prce of £380 SIM-
free.[20] The Lumia 820 weighs 160 grams and has a display size of 4.3 inches. The screen
resolution of the phone is (480 x 800 pixels) and the pixel density is 217ppi. The screen
is able to display 16 777 216 colors. The Li-Ion battery that is provided with the Lumia
820 has a capacity of 1650 mAh. This results in a fairly large talk time of 14 hours before
the battery needs charged. The battery also provides 13.8 days of stand-by time. The
sytem chip found within the Lumia 820 is the Qualcomm Snapdragon S4 Plus
MSM8960. The processor is the dual core, 1500 MHz, Krait and there is 1024 MB RAM
conatined within the system memory. The Lumia 820 provides 8 GB of built-in storage
which can be expanded to 64 GB with the use of microSD, microSDHC and
microSDXC. The camera provided offers 8 megapixels with a dual LED flash. The
camcorder offers 1920x1080 (1080p HD) (30 fps) and offers continuous autofocus in a
video or video call. The phone also has a front-end camera which provides 0.3
megapixels VGA. The phone uses Internet Explorer 10 compared to the previous version
of Internet Explorer 9 which was used in the first generation of phones. The Lumia 820
offers the same built-in online services as the Lumia 710.
The Nokia Lumia 920 was released on November 2[21] with a release price of somewhere
around £475 SIM-free.[22] The Lumia 920 weighs 185 grams a whole 25 grams heavier
than the Lumia 820. The Lumia 920 also has a slightly larger screen than the Lumia 820
with a display size of 4.5 inches. The resoultion of the Lumia 920 screen is also of higher
quality with a resolution of 768 x 1280 pixels. The pixel density of the screen is also
significantly greater than the Lumia 820 with a pixel density of 332ppi compared to
217ppi. Both mobiles are able to display 16 777 216 colors. The Lumia 920 offers a 2000
mAh Li-Ion battery which means a talk time of 17 hours is possible before the battery
needs to be charged. This is substantially greater than the 14 hours provided by the
Lumia 820. The Lumia 920 battery also offers a larger stand-by time of 16.7 days. The
only difference of the hardware between the two phones is that the Lumia 920 offers 32
GB of built-in storage which is four times the amount provided with the Lumia 820. The
camera provided with the Lumia 920 offers 8.7 megapixels with a dual LED flash. The
camcorder is the same as the one provided with the Lumia 820 but the front facing
camera that the Lumia 920 provides offers 1.3 megapixels which is a whole megapixel
above the front facing camera provided by the Lumia 820. The Lumia 920 also provides
Internet Explorer 10 as well as the same built-in services as the Lumia 820.[23]
In December 2012, Nokia announced its first mid range Windows Phone 8 devices, the
Nokia Lumia 620. It is expected to sell in January 2013 in Asia, followed by Europe and
the Middle East at an estimated street price of USD 249.
These were all above were Some of Features of New Upcoming Models of
Nokia. Now let us Study Some of the Nokia New Models& its Features in
Detail. They are as Follows:-
NEW UPCOMING MODELS OF NOKIA
Nokia Lumia 920 (Black)
PRICE: 40699
Nokia Lumia 920 (Black)
PRICE: 40699
Nokia Lumia 920 (Yellow)
PRICE: 40699
Nokia Lumia 820 (Red)
PRICE: 31699
Nokia Lumia 820 (White)
PRICE: 31699
DATA ANALYSIS
SWOT ANALYSIS OF COMPANY NOKIA
I) MODERN SWOT ANALSYIS
A SWOT analysis conducts an external and internal scan of Nokia's business environment,
it is an important part of the strategic planning process. Environmental factors internal to
the firm usually can be classified as strengths (S), or weaknesses (W), and those external to
the firm can be classified as opportunities (O) or threats (T). Such an analysis of the
strategic environment is referred to as a SWOT analysis.
The SWOT analysis provides information that is helpful in matching the firm's resources
and capabilities to the competitive environment in which it operates. As such, it is
instrumental in strategy formulation and selection.
STRENGTHS
-Is a dominant player in the smartphone market via its majority ownership of Symbian and
its propritary Series 60 user interface which are projected to represent majority of the
100M smartphones in 2004,5,6…….
- 35% market share still the largest cell phone vendor by far, with double the market share
of nearest competitor .
- Size should enable Nokia to amortize R&D costs and to get cost advantages
- Brand position: probably one of the top 20 brands in the world
WEAKNESSES
-Some lumia and e-series phone come to flop .
- Being the market leader and its increase role in Symbian is giving Nokia a
bad image, much like Microsoft in the PC industry.
- Slow to adopt new ways of thinking: like Samsung adopted android and becoming no.1 .
OPPORTUNTIIES
- Increase their presence in the CDMA market, which they are just entering, as well as 3G
and Edge
- New growth markets where cell phone adoption still has room to go,
including India and other countries.
- windows phones are not selling more in india but still according to records nokia lumia is
going to be successfull.
THREATS
- Late in the game in 3G creates a risk to be displaced by leaders like
Samsung ,htc , lg etc
- Samsung, htc , lg who have already entered the market very aggressively with their
android as an OS leads to fails of nokia phones.
- ODMs (HTC , Samsung and others) enabling carriers to leverage their customer, power
bypassing the handset vendor. Operators want to lessen their dependency on handset
vendors and the dominance of Nokia.
CONCLUSION
From the Above Project I Had Come to this Conclusion That Nokia has Implemented
Various Strategies in Developing It Products on a Large Scale & and try to becoming No.1
Leader in The World of Mobile Phones. Nokia has used various Techniques to implement
its products into the market. As per my Opinion Nokia had introduced various schemes to
attract people & gain more goodwill into market. I would like to conclude that Nokia had
been launching various new products & Strategies throughout the year like lumia
. Many people around the globe are purchasing Nokia phones as they are very cheap, good
& efficient to operate. Nokia had used various marketing strategies to enhance its
products into market & also they have used better & efficient market segmentation
strategies to market its products according to various segments of customers in the market.
Nokia as such has used all Modern
& Good techiques to tackle problems of customers in market. Customer Care & Feedback
is also given more importance to increase the sales of product. Better, Efficient &
Advanced Techniques are used to increase the sales of product. Also Nokia is largest
manufacturer of mobile phones in India. Various Promotional Strategies are being enrolled
into the market to promote the products. New Models & their Strategies are being well
utilized to enhance the product.
RECOMMENDATIONS:-
I would like to Provide Certain Recommendations towards this Project Report. There are
various Recommendation required to be done in this Report. They are as Follows:-
1) I would like to suggest that the Marketing areas for Sales should be
increased. They should try to adopt new strategies like to change the operating system
to android or to develop new OS ,so that it will work faster than android.
2) As far as Launching of New Models is concerned, The Company
should try to offer sales of lumia products at a affordable Price.
3) The Company should try to bring attractive offers & discounts to the
customers to make them more Brand Loyal towards them.
4) Research should be carried out on a large scale & in selected areas.
CUSTOMER QUESTIONAIRE
AGE: __________
GENDER: MALE / FEMALE
MARITIAL STATUS: SINGLE / MARRIED
FAMILY SIZE
( ) JUST MYSELF
( ) TWO
( ) THREE
( ) FOUR
( ) FIVE and more
INCOME RANGE (Rs per annum)
( ) BELOW 1,00, 000
( ) 1,00,000 - 2,00,000
( ) 2,00,000 - 5,00,000
( ) ABOVE 5,00,000
WHO ARE THE MAJOR INFLUENCERS IN YOUR BUYING DECISION?
( ) FAMILY ( ) FRIENDS ( ) NEIGHBOURS
( ) COLLEGUES ( ) CHILDREN ( ) OTHERS
DO YOU OWN A Smartphone? YES / NO
WHICH IS YOUR FAVOURITE SMARTPHONE BRAND? ___________
HOW DO YOU LOOK AT YOUR SMARTPHONE
( ) A CONVEYENCE INSTRUMENT
( ) A NEED FOR A LIFE IN DELHI
( ) IT IS ALWAYS GOOD TO HAVE MY OWN SMARTPHONE
( ) A SYMBOL OF AFFLUENCE
( ) AN IMPORTANT ADDITION TO MY LIFESTYLE
IN CASE OF YOUR BUYING A SMARTPHONE, WHO ALL DO YOU THINK
WILL BE INVOLVED IN THE DECISION
( ) SPOUSE
( ) CHILDREN
( ) FRIENDS
( ) COLLEGUES
( ) OTHERS
HOW IMPORTANT DO YOU FEEL IS BRAND AS BUYING CRITERIA?
( ) IT IS THE MOST IMPORTANT CRITERION
( ) IT IS IMPORTANT
( ) IT IS ONE OF THE CRITERIONS I WOULD LOOK AT
( ) NOT VERY IMPORTANT, BUT HIGHER THE BETTER
( ) IT DOES NOT BOTHER ME
HOW MUCH SIGNIFICANCE DO YOU ATTACH TO THE BRAND OF THE
SMARTPHONE?
( ) NOT THE LEAST
( ) I AM AWARE OF THE BRANDS BUT THAT DOESN’T SOLE AFFECT MY
CHOICE
( ) BRAND MAKES A GLOBE OF DIFFERENCE
PLEASE RATE THE FOLLOWING PARAMETERS IN THE ORDER OF
IMPORTANCE (1 IS THE HIGHEST ORDER, 10 IS THE LOWEST)
( ) PHYSICAL DESIGN ( ) SIZE
( ) OPERATIONS
( ) FEATURES ( ) PRICE
( ) AFTER- SALES SATISFACTION( ) BRAND IMAGE
( ) HAND SET DURABILITY
GIVEN A PRICE RANGE OF RS 10000 to RS 15000 WHICH BRAND WILL YOU
PREFER?
( ) Nokia
( ) Sony Ericson
( ) Samsung
( ) Motorola
( ) LG
( ) Blackberry
PLEASE MARK THE FOLLOWING PARAMETERS ACCORDING TO
WHETHER YOU AGREE OR DISAGREE AS TO WHETHER SAMSUNG
SMARTPHONE DELIVERS THAT PARTICULAR VALUE
2: STRONGLY DISAGREE
3: DISAGREE
4: NEUTRAL
5: AGREE
6: STRONGLY AGREE
7: VERY STRONGLY AGREE
BIBLIOGRAPHY:-
1. MARKETING MANAGEMENT
BY N.G KALE
REVISED SECOND EDITION
2. INTRODUCTION TO MARKETING MANAGEMENT
BY PHILIP KOTLER
REVISED THIRD EDITION
3. WORLD OF MARKETING
DIGITAL ARTS
WEBLIOGRAPHY:-
1. www.google.com
2. www.wikipedia.org
3. www.metacrawler.com
4. www.icfai.org
4. www.nokia
i
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