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A

SUMMER TRAINING PROJECT REPORT

Entitled

MARKETING SEGMENTATION OF NOKIAAt

(NOKIA)

Submitted in partial fulfillment of the requirement for the awardof degree of

MASTERS OF BUSINESS ADMINISTRATION

SESSION (2012-14)

SUBMITTED TO: SUBMITTED BY:

GARIMA SHARMA ANIL KUMAR

Roll No: 1215870302

Janhit Institute of Education Information

(College Code-158)

Affiliated to Uttar Pradesh Technical University

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CERTIFICATE FROM THE COMPANY/ORGANISATION

This is to certify that ANIL KUMARhas prepared his summer training

project report titled "(MARKETING SEGMENTATION OF NOKIA), at(Area)under my supervision and guidance from (20thJune 2013 to 03rd

Aug. 2013)The work is original and has been done independently by thestudent.

I further confirm that Mr. (ANIL KUMAR) bears a good moral

character.

Corporate Guide

Shami Uzzama

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TABLE OF CONTENTS

S NO. TOPICS PAGE

NO.

1 EXECUTIVE SUMMARY 6

2 INTRODUCTION 10

3 COMPANY PROFILE 12

4 LITERATURE REVIEW 15

5 RESEARCH METHODOLOGY 91

6 GRAPHICAL DATA INTERPRETATION

7 FINDINGS & ANALYSIS 92

8 RECOMMENDATIONS & SUGGESTIONS 111

10 CONCLUSION 113

11 BIBLIOGRAPHY 114

12 ANNEXUREQUESTIONNAIRE 123

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INTRODUCTION

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In the above listing, "product" refers to both physical products and services. The size of the

market is not necessarily fixed. For example, the size of the available market for a product can be

increased by decreasing the product's price, and the size of the qualified available market can be

increased through changes in legislation that result in fewer restrictions on who can buy the

product.

The market is the first step in analyzing it. Since the market is likely to be composed of

consumers whose needs differ,market segmentation is useful in order to better understand those

needs and to select the groups within the market that the firm will serve.

Marketing is an integrated communications-based process through which individuals and

communities discover that existing and newly identified needs and wants may be satisfied by the

products and services of others.

Marketing is defined by theAmerican Marketing Association as the activity, set of institutions,

and processes for creating, communicating, delivering, and exchanging offerings that have value

for customers, clients, partners, and society at large. The term developed from the original

meaning which referred literally to going to market, as in shopping, or going to a market to buy

or sell goods or services.

The Chartered Institute of Marketing, which is the world's largest marketing body, defines

marketing as "The management process responsible for identifying, anticipating and satisfying

customer requirements profitably." Marketing practice tended to be seen as a creative industry in

the past, which included advertising, distribution and selling. However, because marketing

makes extensive use of social sciences, psychology, sociology, mathematics, economics,

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anthropology and neuroscience, the profession is now widely recognized a science, allowing

numerous universities to offer Master-of-Science (MSc) programmes. The overall process starts

with marketing research and goes through market segmentation, business planning and

execution, ending with pre and post-sales promotional activities. It is also related to many of the

creative arts. The marketing literature is also infamous for re-inventing itself and its vocabulary

according to the times and the culture. Seen from a systems point of view, sales process

engineering views marketing as a set of processes that are interconnected and interdependent

with other functions, whose methods can be improved using a variety of relatively new

approaches.

THE MARKETING CONCEPT

The term marketing conceptpertains to the fundamental premise of modern marketing. This can

be laid out as recognizing consumer needs/wants, then designing products and services that

correlate with consumer desires.

MARKETING ORIENTATIONS

An orientation, in the marketing context, relates to a perception or attitude a firm holds towards

its product or service, essentially concerning consumers and end-users. There exist several

common orientations:

PRODUCT ORIENTATION

A firm employing a product orientation is chiefly concerned with the quality of its own product,

and not in necessarily ascertainingconsumer desires. A firm would also assume that as long as

its product was of a high standard, people would buy and consume the product.

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However, utilizing a product orientation has a prime disadvantage of making a firm lose out to

competitors, who may produce technologically superior goods that engender higher consumer

demand and thus market share. A product orientation may perhaps work best in a monopolistic

market form,due to the inherent highbarriers to entry within amonopoly.

SALES ORIENTATION

A firm using a sales orientation focuses primarily on the selling/promotion of a particular

product, and not determining new consumer desires as such. Consequently, this entails simply

selling an already existing product, and using promotion techniques to attain the highest sales

possible.

Such an orientation may suit scenarios in which a firm holds dead stock, or otherwise sells a

good that is in high demand, with little likelihood of changes in consumer tastes diminishing

demand.

PRODUCTION ORIENTATION

A firm focusing on a production orientation specializes in producing as much as possible of a

given good. Thus, this signifies a firm exploitingeconomies of scale,until theminimum efficient

scale is reached.

A production orientation may be deployed when a high demand for a good exists, coupled with a

good certainty that consumer tastes do not rapidly alter (similar to the sales orientation).

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MARKETING COMMUNICATIONS

Marketing communications breaks down the strategies involved with marketing messages into

categories based on the goals of each message. There are distinct stages in converting strangers

to customers that govern the communication medium that should be used.

I. PERSONAL SALES

Oral presentation given by a salesperson that approaches individuals or a group of potential

customers:

Live, interactive relationship Personal interest Attention and response Interesting presentation Clear and thorough.

II. SALES PROMOTION

Short-term incentives to encourage buying of products:

Instant appeal Anxiety to sell

An example is coupons or a sale. People are given an incentive to buy, but this does not build

customer loyalty or encourage future repeat buys. A major drawback of sales promotion is that it

is easily copied by competition. It cannot be used as a sustainable source of differentiation.

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CUSTOMER FOCUS

Many companies today have a customer focus (or market orientation). This implies that the

company focuses its activities and products on consumer demands. Generally there are three

ways of doing this: the customer-driven approach, the sense of identifying market changes and

the product innovation approach.

In the consumer-driven approach, consumer wants are the drivers of all strategic marketing

decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of a

market offering, including the nature of the product itself, is driven by the needs of potential

consumers. The starting point is always the consumer. The rationale for this approach is that

there is no point spending R&D funds developing products that people will not buy. History

attests to many products that were commercial failures in spite of being technological

breakthroughs.

A formal approach to this customer-focused marketing is known as SIVA (Solution, Information,

Value, Access). This system is basically the four Ps renamed and reworded to provide a

customer focus.

The SIVA Model provides a demand/customer centric version alternative to the well-known 4Ps

supply side model (product, price, place, promotion) of marketing management.

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Product Solution

Promotion Information

Price Value

Placement Access

THE FOUR ELEMENTS OF THE SIVA MODEL ARE:

Solution: How appropriate is the solution to the customer's problem/need? Information: Does the customer know about the solution? If so, how and from whom do

they know enough to let them make a buying decision?

Value: Does the customer know the value of the transaction, what it will cost, what arethe benefits, what might they have to sacrifice, what will be their reward?

Access: Where can the customer find the solution? How easily/locally/remotely can theybuy it and take delivery?

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PRODUCT LINE FOCUS

In a product innovation approach, the company pursues productinnovation,then tries to develop

a market for the product. Product innovation drives the process and marketing research is

conducted primarily to ensure that profitable market segment(s) exist for the innovation. The

rationale is that customers may not know what options will be available to them in the future so

we should not expect them to tell us what they will buy in the future. However, marketers can

aggressively over-pursue product innovation and try to overcapitalize on a niche. When pursuing

a product innovation approach, marketers must ensure that they have a varied and multi-tiered

approach to product innovation. It is claimed that if Thomas Edison depended on marketing

research he would have produced larger candles rather than inventing light bulbs. Many firms,

such as research and development focused companies, successfully focus on product innovation.

Many purists doubt whether this is really a form of marketing orientation at all, because of the ex

post status of consumer research. Some even question whether it is marketing.

An emerging area of study and practice concernsinternal marketing,or how employeesare trained and managed to deliver the brand in a way that positively impacts the

acquisition and retention of customers (employer branding).

Diffusion of innovations research explores how and why people adopt new products,services and ideas.

A relatively new form of marketing uses theInternet and is called Internet marketing ormore generallye-marketing,affiliate marketing,desktop advertising oronline marketing.

It tries to perfect the segmentation strategy used in traditional marketing. It targets its

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audience more precisely, and is sometimes calledpersonalized marketing or one-to-one

marketing.

With consumers' eroding attention span and willingness to give time to advertisingmessages, marketers are turning to forms of permission marketing such as branded

content,custom media andreality marketing.

The use of herd behavior in marketing.

The Economistreported a recent conference in Rome on the subject of the simulation of

adaptive human behavior.[7] It shared mechanisms to increase impulse buying and get

people "to buy more by playing on the herd instinct." The basic idea is that people will

buy more of products that are seen to be popular, and several feedback mechanisms to get

product popularity information to consumers are mentioned, including smart-cart

technology and the use of Radio Frequency Identification Tag technology. A "swarm-

moves" model was introduced by a Florida Institute of Technology researcher, which is

appealing to supermarkets because it can "increase sales without the need to give people

discounts." Marketing is also used to promote business' products and is a great way to

promote the business.

Other recent studies on the "power of social influence" include an "artificial music

market in which some 14,000 people downloaded previously unknown songs" (Columbia

University,New York); aJapanese chain of convenience stores which orders its products

based on "sales data from department stores and research companies;" a Massachusetts

company exploiting knowledge of social networking to improve sales; and online

retailers who are increasingly informing consumers about "which products are popular

with like-minded consumers" (e.g.,Amazon,eBay).

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COMPANY PROFILE

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COMPANY PROFILE

The first Nokia century began with Fredrik Idestam's paper mill on the banks of the Nokianvirta

river. Between 1865 and 1967, the company would become a major industrial force; but it took a

merger with a cable company and a rubber firm to set the new Nokia Corporation on the path to

electronics...

At the beginning, Nokia was a manufacturer of paper in 1865. After World war II, the

requirement of industrial products increased substantially. Nokia changed its function to an

industrial enterprise and produced products like chemicals and rubbers. Until 1960s Nokia had

set electronic department and focused on developing transmission systems.

Nokias Cable Works Electronics Department started to conduct research into semiconductor

technology in the 1960s.Nokia began to develop the digital switch (Nokia DX 200) which

became a success. This was equipped with the high level computer language and Intel micro

processors gradually evolved into the multifaceted platform that is still the basis for Nokias

network infrastructure today.

During the deep recessionin Finland at the beginning of the 1990s, the telecommunications and

mobile phones divisions were the only supporting pillars of the Nokia. In May 1992,Nokia made

the strategic decision to divest its non- core operations and focus on telecommunications. The

companys 2100 series phone was an incredible success.

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NOKIA TODAY

Today, Nokia is a world leader in digital technologies, including mobile phones,

telecommunications networks, wireless data solutions and multimedia terminals .Backed by its

experience, innovation, user friendliness and secure solutions, the company has become the

leading supplier of mobile phones, fixed broadband and IP networks. By adding mobility to the

internet, Nokia creates new opportunities for companies and further enriches the daily lives of

people.

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GROWTH

Nokia continued its recovery by taking 31.9 per cent of the market, up from 29.6 per cent ayear ago. Motorola consolidated its strong second place, grabbing 17.9 per cent share, up

from 15.7 per cent a year ago. The leading two sold 60.7m and 34m handsets respectively.

The gains came at the expense of third tier manufacturers and Siemens, which saw real unitshipments fall from 10.8m to 8.89m, a dramatic dip from 6.9 per cent share to 4.7 per cent

share. On these figures, analysts must question the wisdom of BenQ's acquisition of the

German giant's handset division.

Emerging markets in Asia, Eastern Europe and Africa led the way. But interest in replacingtrusted handsets with 3G features wasn't particularly strong, notes Gartner.

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MISSION STATEMENT, STRATEGY AND

PURPOSES OF NOKIA MISSION STATEMENT

Customer To maintain customer confidence by continuing to provide quality servicespecifically designed to meet their needs.

MarketTo be recognized as a market innovator in the mobile phone industry to continuingto improve our business practise.

BusinessTo ensure the team has a complete understanding of all Mobile Network InternalSystems and Procedures and that each team member is responsible for compliance with the

Business Management System.

Training To develop on going training strategies to empower personnel with skill levelsessential for future company success.

The Team To create the best possible working environment, promoting careerenhancement and job security, encouraging trust in the company and loyalty to the customer.

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HISTORICAL LOGOS

Nokia Company

logo. Founded in

Tampere in

1865, logo 1966.

Nokia Finnish

Rubber Works

Ltd, founded in

Helsinki in 1898.

Logo 1965

1966.

The Nokia

"arrows" logo

before its

Connecting

People logo.

Nokia introduced

its "Connecting

People"

advertising

slogan, coined

by Ove

Strandberg.

The current

logo's slogan

uses Nokia's

proprietary

Nokia font. This

earlier font

shown here was

Times Roman

SC (Small

Caps).[51]

Nokia Siemens

Networks logo.

Nokia has played a pioneering role in the growth of cellular technology in India, starting with the

first-ever cellular call a decade ago, made on a Nokia mobile phone over a Nokia-deployed

network.

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Nokia started its India operations in 1995, and presently operates out of offices in New Delhi,

Mumbai, Kolkata, Jaipur ,Lucknow, Chennai, Bangalore, Hyderabad, Pune and Ahmedabad.

The Indian operations comprise of the handsets business; R&D facilities in Bangalore,

Hyderabad and Mumbai; a manufacturing plant in Chennai and a Design Studio in Bangalore.

Over the years, the company has grown manifold with its manpower strength increasing from

450 people in the year 2004 to over 15000 employees in March 2008 (including Nokia Siemens

Networks). Today, India holds the distinction of being the second largest market for the company

globally.

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NOKIA OPERATIONS

Nokia has established itself as the market and brand leader in the mobile devices market in India.

The company has built a diverse product portfolio to meet the needs of different consumer

segments and therefore offers devices across five categories i.e. Entry, Live, Connect, Explore

and Achieve. These include products that cater to first time subscribers to advanced business

devices and high performance multimedia devices for imaging, music and gaming.

Nokia has been working closely with operators in India to increase the geographical coverage

and lower the total cost of ownership for consumers. Today, Nokia has one of the largest

distribution network with presence across 130,000 outlets. In addition, the company also has

Nokia Priority Dealers across the country and Nokia Concept stores in Bangalore, Delhi,

Jaipur, Hyderabad, Chandigarh, Ludhiana, Chennai, Indore and Mumbai to provide customers a

complete mobile experience.

SERVICES BUSINESS

With the global launch of Ovi, the company's Internet services brand name, Nokia is renewing

itself to be at the forefront of the convergence of internet and mobility. From being a product

centric company, Nokia is now focusing to become solutions centric. The strategic shift is built

on Nokias bid to retain consumers and empower Nokia device owners to realise the full

potential of the Internet. Nokia will build a suite of Internet based services like Nokia Maps, the

Nokia Music Store and Nokia N-Gage around its Ovi brand.

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INFRASTRUCTURE BUSINESS

Nokia Siemens Networks is a leading global enabler of communications services. The company

provides a complete, well-balanced product portfolio of mobile and fixed network infrastructure

solutions and addresses the growing demand for services with 20,000 service professionals

worldwide. Its operations in India include Sales & Marketing, Research & Development,

Manufacturing and Global Networks Solutions Centre. Headquartered in Gurgaon, Nokia

Siemens Networks has 47 offices and presence in over 170 locations across the country.

R & D CENTERS

Nokia has three Research & Development centers in India, based in Hyderabad, Bangalore and

Mumbai. These R&D hubs are staffed by engineers who are working on next-generation packet-

switched mobile technologies and communications solutions to enhance corporate productivity.

The Center in Bangalore, the biggest R&D site in the country comprises S60 Software

Organization, Common Technologies, Next Generation now called Maemo Software,

Productization and Software & Services.

DESIGN STUDIO

Nokia has set up its first Design Studio in Bangalore in partnership with Srishti School of Art,

Design and Technology. The first of its kind, the design studio will give Nokia designers and

Indias talented youth the opportunity to work together on new design ideas for India and the

global markets.

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MANUFACTURING IN INDIA

Nokia has set up its mobile device manufacturing facility in Chennai, India to meet the

burgeoning demand for mobile devices in the country. The manufacturing facility is operational

with an investment of USD 210 million and currently employs 8000 people. Nokia has recently

announced fresh investments to the tune of US $ 75 million towards its manufacturing plant in

Sriperumbudur, Chennai for the year 2008.

SOME FIRSTS FOR NOKIA IN INDIA

1995First mobile phone call made in India on a Nokia phone on a Nokia network

1998 - Saare Jahaan Se Acchha, first Indian ringtone in a Nokia 5110

2000 - First phone with Hindi menu (Nokia 3210)

2002 - First Camera phone (Nokia 7650)

2003 - First Made for India phone, Nokia 1100

2004 - Saral Mobile Sandesh, Hindi SMS on a wide range of Nokia phones

2004 - First Wi-fi Phone- Nokia Communicator (N9500)

2005Local UI in additional local language

2006Nokia manufacturing plant in Chennai

2007First vernacular news portal

..

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phone network,is built.

1982: Nokia makes its first digital telephone switchThe Nokia DX200, the companys firstdigital telephone switch, goes into operation.

1984: Mobira Talkman launchedNokia launches the Mobira Talkman portable phone.1987: Mobira Cityman birth of a classicNokia launches the Mobira Cityman, the firsthandheld NMT phone.

1991: GSMa new mobile standard opens upNokia equipment is used to make theworldsfirst GSM call.

Mobile Revolution1992 - 1999

In 1992, Nokia decided to focus on its telecommunications business. This was probably the most

important strategic decision in its history.

As adoption of the GSM standard grew, new CEO Jorma Ollila put Nokia at the head of the

mobile telephone industrys global boom and made it the world leader before the end of the

decade...

1992: Jorma Ollila becomes President and CEO

Jorma Ollila becomes President and CEO of Nokia, focusing the company on

telecommunications.

1992: Nokias first GSM handset

Nokia launches its first GSM handset, the Nokia 1011.

1994: Nokia Tune is launched

Nokia launches the 2100, the first phone to featurethe Nokia Tune.

1994: Worlds first satellite call

The worlds first satellite call is made, using a Nokia GSM handset.

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1997: Snakea classic mobile game

The Nokia 6110 is the first phone to featureNokias Snake game.

1998: Nokia leads the world

Nokia becomes theworld leader in mobile phones.

1999: The Internet goes mobile

Nokia launches the world's first WAP handset, the Nokia 7110.

Nokia Now2000 to Today

Nokias story continues with 3G, mobile multiplayer gaming, multimedia devices and a look to

the future...

2003: Nokia launches the N-Gage

Mobile gaming goes multiplayer with the N-Gage.

2005: The Nokia Nseries is born

Nokia introduces the next generation of multimedia devices, theNokia Nseries.

2006: A new President and CEONokia today

Olli-Pekka Kallasvuo becomes Nokias President and CEO; Jorma Ollila becomes Chairman of

Nokias board. Nokia and Siemens announce plans for Nokia Siemens Networks.

2007Nokia recognized as 5th most valued brand in the world. Nokia Siemens Networks commences

operations. Nokia launches Ovi, its new internet services brand.

2008

Nokia's three mobile device business groups and the supporting horizontal groups are replaced

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by an integrated business segment, Devices & Services.

ACHIEVEMENTS & REWARDS

Ranked No 1 Most Trusted Brand Survey by Brand Equity, 2008

Ranked the No 1. MNC in India by Businessworld, Indias leading business weekly, 2006

Ranked as the No. 1 telecommunications equipment vendor in the country by Voice &Data for five consecutive years2008, 2007, 2006,2005 and 2004

Ranked as the 9th most powerful brand by Millward Browns BrandZ 2008

Ranked worlds 4th most valuable brand by Interbrand, 2007

Ranked Asias most trusted brand by the Media-Synovate, 2006

.

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FUTURE ZONE OF NOKIA

NOKIA - THE WAY WE LIVE NEXT

By 2015, we believe that communications technology will have totally adapted to your personal

needs, anticipating what you want to do. The technology will be invisible, the user interface

seamless and intuitive. This means you wont need to learn about the technology to get the most

out of your mobile device or service. In fact, your communications tools and services will learn

from you. Nokia is developing highly personalized and contextually relevant solutions that

will connect you to wherever you want to be, whenever you want to be there. These innovative

solutions will provide the intuition and power to share our feelings and experiences as they

happen.

In this new era of mobile communications, each of us will be able to be connected to a universe

of shared experiences that transcend the boundaries of time and geography. Mobile solutions

combining devices and serviceswill be aware of our social network and lifestyle, and sensing

our location, purpose and even our mood, will point and lead us to people, places and

information that are uniquely relevant to us. Being connected to the people and things that

matter most to us is fast becoming a natural and essential part of our everyday lives.

NOKIATURNING FUTURE IDEAS INTO REALITY

You find yourself in Barcelona, Spain and you come across a beautiful building, an object like

nothing else you have ever seen. Naturally, you want to find out more. You could break the

moment and use your device to browse the internet, or you could simply point your device at

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the building and let the technology find the information for you, almost like live TV. The same

could go for a movie poster. You point your device at the poster, and it instantly plays you the

movie trailer, checks seat availability at the nearest movie theatres, and lets you buy tickets. It

also tells you which of your friends or family are nearby, and helps you purchase tickets for

them too. These are just two examples of how mobile solutions will soon make your life easier

and more fun, made possible when your mobile device combines your social contacts with your

physical location. We call this Social Location, or SoLo for short. And its just around the

corner. Think of it as your mobile phone, the internet and PC coming together to form one easy-

to-use wholeworking together as a kind of sixth sense.

SMART SERVICES

Solo, combined with micro-blogging tools, allows you to socialize and share by letting your

friends know where you are, how you are feeling and what youre doing. This is just one

possibility that comes from combining the real world dimension with the virtual world of the

internet, digital maps and the contacts in your phone. Whatever you do, you will always be in

control. You will be able to modify, engage or stop these features at will. You decide.

NOKIA - WHY LIVE IN DIFFERENT WORLDS?

Many of us regularly tap into three different digital worlds: the PC, the web and the mobile

world. Nokia is working to remove the artificial barriers that have long existed between them.

Imagine you want to travel somewhere new. You may go online, download a map and print out

a hard copy to take with you. But wouldnt it be simpler just to let your mobile device call up

the map and have its navigation system give you turn-by-turn directions on how to get there?

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Your mobile device knows what you want to do, and combines all the relevant information to

help you do it. You will soon be able to apply this approach to all walks of life. Nokia is helping

to create a world where you can do this wherever you are, whenever. Forget the constraints of

your PC and time-consuming internet searches. Welcome to the freedom of your truly mobile

computer.

NOKIAINNOVATIONS THAT TAKES US TOMORROW

NOKIA 5800 EXPRESS MUSIC

The Nokia 5800 XpressMusic, our first mass-market touchscreen device sold more than one

million units in just a few months after it went on sale in selected markets. Making the most of

touchscreen technology, the Nokia 5800 XpressMusic delivers easy and fast access to all music,

video and photos through a one-touch Media Bar menu. The Media Bar also offers a direct

link to the web and to online media sharing.

NOKIAN97

The Nokia N97 instantly became a new benchmark for our industry. This mobile computer

integrates our Ovi services with many unrivalled features, including 32 GB of onboard storage,

a high resolution 3.5-inch touch screen and a fully customizable homescreen.

Ovi, the consumer brand for Nokia internet services, brings together your online world, your

mobile device and your PC into an easy-to-use and consistent experience. With Ovi you can

easily manage, sync and share your personal files or information, as well as access Nokia

services in media sharing, maps, games, music and messaging.

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Nokia E 71

The Nokia E 71 is an impressive performer, which last year drove shipments of the whole E

Series range over the 10 million mark. The Nokia E 63 continues with the same slender form

factor and is available globally for the equivalent of less than 200 euros. With IBM Lotus Notes

Traveler and Microsoft Mail for Exchange, Nokia E series devices connect to 90% of the worlds

corporate e-mail systems without the need for middleware. Nokia messaging provides the best

connection to the worlds leading consumer e-mail products.

MOBILE SOLUTIONS

Nokia is connecting people to what matters most to them most by seamlessly integrating

devices and smart services. You will no longer need to worry about whether different features

fit together, or when, where and how they can be used. All thats left is an irresistible consumer

experience; a new and exciting way to connect people to what matters.

NOKIAOUR WAY OF DOING BUSINESS - TRULY GLOBAL

Our innovations and understanding of peoples needs are based on studies of more than 100,000

consumers in almost 30 countries. These studies represent an unparalleled amount of insight,

some 12 billion data points to be exact. But we dont just look at data. Our designers and

anthropologists go out into the real world to see exactly how people are using mobile and

Internet technology as part of their everyday lives. All this quantitative and qualitative data are

fed directly back into our portfolio management and design, so that our products and services

are as inclusive and useful to people as possible. Our employees from design engineers and

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software programmers to product line specialists and sales staffcan be found across the globe.

We know we can only fully understand the wide diversity of peoples needs, and work to meet

them, by being close to our customers. Local presence on a worldwide scale means we can offer

our customers a broad portfolio of devices and services. Our assets include a worldwide

distribution network, flexibility and efficiency in logistics and the trust that comes from one of

the worlds leading brands.

CONNECTING OVER A BILLION PEOPLE EVERY DAY

The global four billion mobile subscriber milestones were reached in early 2009, according to

the GSM Association, an industry trade group. More than one billion people place their trust in

Nokia devices and services each and every day. In fact, Nokia was ranked the fifth best brand in

the world by Interbrand in 2008, for the second consecutive year. Connecting People is at the

heart of the Nokia brand. This increasingly means connecting people to what matters most, to

give them the power to make the most of every moment.

Our vision of the world is already becoming a reality. We are providing the gateway for people

to join this connected world through popular services such as Ovi Maps, Ovi Mail and Comes

with Music. And if you wish to use your Nokia device to access other navigation, email, social

net-work, photo-sharing and other sites, you can. Corporate email inboxes are also on the device

menu with ninety per cent of clients (Microsoft Mail for Exchange and IBM Lotus Notes

Traveller) being fully compatible and easy to set up.

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NOKIATHINKING INSIDE AND OUTSIDE THE BOX

We consider the environment by developing a range of environmental practices across all our

operations. This includes:

Phasing out the use of materials like PVC. Reducing charger no load power consumption by up to 95%. Adding alerts to remind you to unplug your charger once the battery is full. Making up to 80% of Nokia devices recyclable. Creating eco services to inspire more sustainable behavior.

NOKIAOUR STRATEGY

Mobility and the internet continue to converge. As a truly consumer-led company, we create

value by combining smart services and the best devices to deliver irresistible solutions, while

growing our high-volume product business.

Our Strategic objectives are

Irresistible solutions and vibrant ecosystems

Direct and continuous consumer relationships

Best devices

Smart services

To achieve our vision, we will strengthen our trusted consumer relationships by moving from

discrete transactions to a dynamic dialogue with the consumer. We are committed to building

direct and continuous consumer relationships. We will drive for continued growth in our

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devices business and our goal is to broaden our geographic reach and to address all price points

by creating the best devices. Our broad device base will be the bedrock of our growing Services

business. We will invest in creating relevant, personalized services that blend the dimensions of

people and places. Our target is to have 300 million people using our smart services by 2012.

With our devices and services, we will be able to deliver irresistible solutions with seamless and

delightful consumer experiences thereby connecting people to what matters most in their lives.

NOKIAVISION AND STRATEGY

Nokia will empower everyone to share and make the most of their life by offering

irresistible personal experiences.

March 2010

The convergence of the mobile, internet and PC are a reality. Consumers want complete

solutions not just devices, and technology to be invisible. Consumer relationships are the new

unit of value in this converged industry as consumers "consume" services as they are created.

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Our vision of the future

"Connecting people" is now connecting people to what matters - whatever that means for each

person - giving them the power to make the most of every moment, everywhere, any time.

Connecting the "we" is more powerful than just the individual. That's how Nokia is needed to

help make the world a better place for everyone.

OUR STRATEGY

To do this we will become the leading provider of mobile solutions. Our solutions strategy

leverages one of our greatest assets - a portfolio of outstanding devices, with unmatched scale

and geographic reach. We couple them with smart services, integrated via an intuitive and

seamless user experience. We differentiate these solutions offerings based on our in-depth

consumer understanding, with a strong focus on social location (people and places). In a worldwhere connecting people to what matters, empowers them to make the most of every moment.

Our ambition is to become the leading provider of mobile solutions

NOKIASTRUCTURE

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The Devices unit is responsible for developing and managing our mobile device portfolio,

including the sourcing of components. Nokia is increasing its offering of consumer Internet

services, in five areasmusic, maps, media, messaging and gamesand working to deliver

those services in an easily accessible manner to consumers. The Servicesunit is responsible for

developing this part of our business.

The Marketsunit is responsible for the management of our supply chains, sales channels, brand

and marketing activities. The three units receive operational support from our Corporate

Development Office, which is also responsible for exploring corporate strategic and future

growth opportunities.

Nokia Siemens Networksprovides wireless and fixed network infrastructure, communications

and networks service platforms, as well as professional services to operators and service

providers.

NAVTEQ is a leading provider of comprehensive digital map data for automotive navigation

systems, mobile navigation devices, Internet-based mapping applications, and government and

business solutions. NAVTEQs map data will be an important part of the Nokia Maps service

that brings downloadable maps, voice-guided navigation and other context-aware web services to

peoples pockets.

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LATEST PRESS RELEASES BY NOKIA

April 27, 2010

Nokia N8. Connect. Create. Entertain.

April 26, 2010Pepsi adds refreshing content to Nokia's Ovi Store

April 23, 2010

Nokia extends its offering in the TD-SCDMA market

April 22, 2010

Nokia Q1 2010 net sales EUR 9.5 billion, non-IFRS EPS EUR 0.14 (reported EPS EUR 0.09)

April 15, 2010

Nokia to publish first quarter 2010 results on April 22, 2010

April 13, 2010

Social networking and messaging brought to life with the Nokia C3, Nokia C6 and Nokia E5

April 09, 2010

Nokia completes acquisition of Novarra

April 09, 2010

Nokia acquires MetaCarta Inc.

April 08, 2010

Unlimited music download service redefines China's mobile digital music landscape

March 26, 2010

Nokia acquires Novarra

March 26, 2010

Nokia in 2009

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NOKIA - QUARTERLY AND ANNUAL INFORMATION

Nokia Q1 2010 net sales EUR 9.5 billion, non-IFRS EPS EUR 0.14 (reported EPS EUR

0.09)

Growth in year-on-year net sales, operating profit and EPS (non-IFRS and reported)

Non-IFRS first quarter 2010 results1

EUR million Q1/2010 Q1/2009 YoY Change Q4/2009 QoQ Change

Net sales 9 522 9 276 3% 11 988 -21%

Devices &Services

6 663 6 173 8% 8 179 -19%

NAVTEQ 189 134 41% 225 -16%Nokia SiemensNetworks

2 718 2 990 -9% 3 625 -25%

Operating profit 820 514 60% 1 473 -44%Devices &Services

804 642 25% 1257 -36%

NAVTEQ 41 5 720% 54 -24%Nokia SiemensNetworks

15 -122 201 -93%

Operating margin 8.6% 5.5% 12.3%Devices &Services

12.1% 10.4% 15.4%

NAVTEQ 21.7% 3.7% 24.0%Nokia SiemensNetworks

0.6% -4.1% 5.5%

EPS, EUR Diluted 0.14 0.10 40% 0.25 -44%

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Reported first quarter 2010 results

EUR million Q1/2010 Q1/2009 YoY Change Q4/2009 QoQ Change

Net sales 9 522 9 274 3% 11 988 -21%Devices &

Services 6 663 6 173 8% 8 179 -19%NAVTEQ 189 132 43% 225 -16%Nokia SiemensNetworks

2 718 2 990 -9% 3 625 -25%

Operating profit 488 55 787% 1 141 -57%Devices &Services

831 547 52% 1 219 -32%

NAVTEQ -77 -120 -56Nokia SiemensNetworks

-226 -361 17

Operating margin 5.1% 0.6% 9.5%

Devices &Services

12.5% 8.9% 14.9%

NAVTEQ -40.7% -90.9% -24.9%Nokia SiemensNetworks

-8.3% -12.1% 0.5%

EPS, EUR Diluted 0.09 0.03 200% 0.26 -65%

FIRST QUARTER 2010 HIGHLIGHTS

Nokia net sales of EUR 9.5 billion, up 3% year-on-year and down 21% sequentially (up1% and down 21% at constant currency).

Devices & Services net sales of EUR 6.7 billion, up 8% year-on-year and down 19%sequentially (up 7% and down 19% at constant currency).

Services net sales of EUR 148 million, down 12% sequentially; billings of EUR 228million, up 1% sequentially.

Nokia total mobile device volumes of 107.8 million units, up 16% year-on-year anddown 15% sequentially.

Nokia converged mobile device (smartphone and mobile computer) volumes of 21.5million units, up 57% year-on-year and up 3% sequentially.

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Nokia mobile device ASP (including services revenue) of EUR 62, down from EUR 64in Q4 2009.

Devices & Services gross margin of 32.4%, down from 33.8% in Q1 2009 and 34.3% inQ4 2009.

Devices & Services non-IFRS operating margin of 12.1%, up from 10.4% in Q1 2009and down from 15.4% in Q4 2009.

NAVTEQ non-IFRS net sales of EUR 189 million, up 41% year-on-year and down 16%sequentially (up 46% and down 18% at constant currency).

Nokia Siemens Networks net sales of EUR 2.7 billion, down 9% year-on-year and down25% sequentially (down 12% and 27% at constant currency).

Nokia Siemens Networks non-IFRS operating margin of 0.6%, up from -4.1% in Q12009 and down from 5.5% in Q4 2009.

Nokia operating cash flow of EUR 1.0 billion. Total cash and other liquid assets of EUR 9.7 billion at the end of Q1 2010. Nokia taxes were unfavorably impacted by Nokia Siemens Networks taxes as no tax

benefits are recognized for certain Nokia Siemens Networks deferred tax items. If

Nokias estimated long-term tax rate of 26% had been applied, non-IFRS Nokia EPS

would have been approximately 1 Euro cent higher.

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NOKIA - UPCOMING INNOVATIONS

Technological details on upcoming innovations from Nokia. Find out about the new experiences

Nokia is working on and how they work.

Indoor Positioning

Today, you can already use your mobile outdoors to navigate to your destination. In

the future, indoor positioning will make it possible to find your way indoors, so you can find

your favourite fashion outlet in the shopping mall or that need-to-see painting in the museum.

Traffic Works

Nokia Research with Navteq, Berkeley, University California and the California

transportation authority CalTrans are driving innovation to free us from traffic jams for good.

Personalized Web Widgets

Web widgets help to make the best use of your time, take care of those little but

important practicalities, and keep you up to date. One press brings up a simple application

personalized to your needs.

Mobile Journalism

Have you ever found yourself experiencing something extraordinary without having

any means to capture and share it? Now all you need to do is take your Nokia device from your

pocket.

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Sense your location

With the new Nokia 6210 Navigator, you are always heading in the right direction.

Sensor technologies enhance the navigation experience providing greater awareness and

understanding of your surroundings.

Nokia Connected Home

There are many electronics devices at home such as computers, TVs, stereos, printersand servers. Your Nokia mobile can today wirelessly control and access many of these home

electronics items.

Nokia Multiscanner

During your trips abroad, have you ever found yourself in a situation where you With

NFC (Near Field Communications) technology, you can leave your wallet at home When

buying coffee or a newspaper, you pay by simply touching your mobile to a reader on the

counter.

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DISTRIBUTION STRATEGIES ADOPTED BY NOKIA

Mobile phones have become a major part of our everyday life. On the one hand, Indias Mobile

phone market has grown rapidly in the last few years on the back of falling phone tariffs and

handset price, making it one of the fastest growing globally.

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, device and solutions for

imaging, games, media and businesses. Nokia provides equipment, solutions and services for

Network operators and corporations.

Nokia held a global market share of 34.2 percent at the end of January, according to consultants

strategy Analysis, while Motorola had 18.3 percent, Samsung 11.1 percent, and LG and Sony

Ericsson 6.6 percent each. To illustrate Nokias performances, more than one third worlds

phone users use a Nokia phone. In India Nokia is the market leader, with a manufacturing

facility in Chennai.

Understanding of distribution channel used by Nokia Distribution is the life blood for an

organization in order to make sales. The products are required to reach the outlets for sales based

on the demand for the product. Only if distribution channel is effective products can reach the

consumers, as well maintain or increase their market share. This is very important, as there is

intense competition in the market from various other players, in order to stay ahead and meet the

competition we need to provide goods on time to the dealers to make sales and earn profits for

both company as well as outlets. Availability of goods and time is an essential for any

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organization this could be done only by having good distributors and redistributors stockiest.

Further the company should take care of goods manufactured reach the distributor & the

redistributors stockiest on time. The company requires to have a regular check on these channels

if they working efficiently and take steps to further step to improve. The company only stay

ahead in profits, market share etc, only if their products reach the outlets on time as well based

on Demand.

The project began with the basic understanding of how distribution of mobile phones takes in the

market by Nokia. Nokia works with the distribution of mobile phones takes in the market by

Nokia. Nokia works with the distributor, re distributor stockiest (R.D.S) and finally the retailer

from whom the product is sold to the consumer. Five forms of outlets sell Nokias products:

DISTRIBUTORS-:

i. HCL infosystem

ii. Bright point.

OUTLETS-:

i. Nokia priority dealers

ii. Multi Brand outlets

iii. Reliance web world

iv. Reliance web world express

v. Tata true value shop

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NOKIA DISTRIBUTION CHANNELS

DISTRIBUTORS:

a) HCL Infosystem:During the last ten years, the HCL-Nokia relationship has witnessed strong

growth in the Indian GSM handset market resulting in a significant market share gain for Nokia,

and the increased need for a distribution Network that will meet the projected market growth of

200 million subscribers by 2007. The relationship with Nokia has been a very satisfying one, and

the agreement between Nokia and HCL reaffirms Nokias commitment to the growing Indian

Market, to ensure that mobile devices are accessible to more consumers in the cities and towns

India.

Mobile penetration is getting into the next phase of growth of which a major portion is expected

to come from smaller towns and remote locations. There is clear pick up ion demand. The

challenges ahead would be to penetrate deeper, preserve market and in order to have much

greater depth, align to global policy of balanced channel mix and also to ensure that all possible

channels are included, and channel partners are well served so that growth opportunities are

captured.

The two companies have extended their agreement for another five years. This strong

relationship between these two players plays a crucial role in increasing the sales as well to hold

the market leader position in the market. Both entering the distribution channels will in fact help

the consumer to get the best product in the nearest location in any part of the country.

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b) Bright point : It offers the most comprehensive selction of brands and products in the

wireless industry. Handset, Integrated devices, PDAs, etc. They also provide full selection of

OEM and aftermarket accessories, Modems and software. It distributes product manufactured by

the worlds leading handset manufacturer.

OUTLETS:

a) Nokia priority dealers are exclusive show rooms for buying Nokia products. These outlets are

directly under the control and supervision of Nokia, which makes them solely accountable to

Nokia. NPDs are preferred outlets to buy Nokia products, as they are their genuine dealers of its

products. These outlets have the complete portfolio of Nokia products existing in the market. The

buying experience the consumer enjoys is the better than any other outlet in the city.

b) Multi brand outlets are the outlets, which deal with all the company products in the market.

They provide service and space to all the competitors as they sell all the products in the market.

The major purpose is not to dissatisfy the consumers entering the outlet and provide them with

all the brands asked by him. The amount of sales made is higher as well the profit earned is

higher. The numbers of these outlets are higher in the city.

c) Reliance web world are exclusive reliance outlets. They deal with reliance products of

providing connections and billing of the connections. These outlets also sell mobile phones of

various brands. The major aspect in these outlets is the stock reaches these outlets directly from

the company itself. The RDS has no role to play other than providing these providing these

outlets POS materials to these outlets.

d) Reliance web world express are also exclusive reliance outlets but are the franchise outlets of

Reliance. They also deal with reliance products of providing connections and billing of the

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connections. These outlets also sell mobile phones of various brands. The major difference

between web world and express are the stock that reaches these outlets. The RDS and his sales

men provide both stocks as well POS materials to these outlets.

e) Tata true values Shoppe are also exclusive Tata outlets but are the franchised outlets. They

also deal with Tata products providing connections and billing of the connections. These outlets

also sell mobile phones of various brands. The RDS and his sales men provide both stocks as

well POS materials to these outlets.

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NOKIA MARKET SEGMENTS

How Nokia has segmented its markets or in other words help the consumer to shortlist or select

phones according to their needs is shown in the diagram below. In this the customer choice is notdescriptive.

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Nokia - Finding DevicesA Detailed Segmentation

Nokia has given the customer a wide choice of products varying their need. Nokia has helped the

customer to choose the best phone by choosing the wide options of features displayed below. A

customer can choose from the list of features they need and Nokia shortlists the phone to matchthe customer needs. Nokia helps to compare the similar products to choose the best from the rest.

Here the customer choice gets descriptive and selective.

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NOKIA - ACCESSORIES

Nokia also provides compatible accessories with phone to maximize the usage of the phone and

its features. Nokia provides a wide option of accessories to its customer for every phone they

produce such as wireless receiver, speakers, headset, etc.

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NokiaRecommendation Option

Nokia helps the existing Nokia users to find their next phone by having the recommendation

option which matches the current phone with the upcoming or newly launched phones features.

Nokia helps the customer to get the new phone launched with the similar needs i.e. the featuresand style.

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NOKIA CURRENT MARKET SEGMENTATION OF PHONES

Series NokiaMobile Phones by Series

Nokia 1000 series 10111100/11011110/1110i111212001208160016101650

Nokia 2000 series 2110i2115i231026002600classic26102630265026512700 classic2730classic2760

Nokia 3000 series 3100/3100b/310531103110

classic31203120classic31553200/3200b/32053210

32203230325033103315333034103500 classic3510/3590/3595Nokia35303510i3600/3620/3650/36603600 slide3720 classic

Nokia C series C1C2C3C5C6

Nokia 5000 series 5070510051105130 Xpress Music520052105220

Xpress Music5230/5235 53005310 Xpress

Music53205330 Mobile TV Edition

5500 Sport5510 5530 56105630570057305800

Nokia 6000 series 60106020/6021 603060706085610061016103

6110/61206110 Navigator61116120/6121/6124

classic6131/613361366151617062106210

Navigator6220 classic62306233/62346255i6260

Slide6260626562706275i6280/628862906300

6300i63016303 classic6310i6315i6500

classic6500 slide655566006600 fold6600

slide6610/6610i6620663066506650

fold667066806681/66826700 classic6710

Navigator 6720 classic67306800681068206822

Nokia 7000 series 711071607210725072807360738073907500Prism760076107650770077107900 Prism

Nokia 7000 series Supernova7100 Supernova7210 Supernova 7310 Supernova7510Supernova7610 Supernova

Nokia 8000 series 81108210825083108600 Luna880088508910

Nokia Communicator 9000/9110/9110i9210/92909210i9300/9300i9500