Consumer Behavior Study for Mobile Phone Brand Preference

A
Project Study Report
On
“A study on consumer behavior for preference of brands
in cellular phones with reference to Nokia”
Nokia India Pvt. Ltd.
Submitted in partial fulfillment for the
Award of degree of
Master of Business Administration
Submitted By: - SubmittedTo:-
Bharati Nama Nimisha Soni
MBA IVth Sem. Lecturer,
(MBA department)
2009-2011
GOVERNMENT ENGINEERING COLLEGE JHALAWARGOVERNMENT ENGINEERING COLLEGE JHALAWAR
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Project Report Evaluation
It is to certify that Ms Bharati Nama of MBA IV Sem, her title for the project report was “A
study on consumer behavior for preference of brands in cellular phones with reference
to Nokia”
I/ We have evaluated the project report and her Project work is satisfactory.
Signature of External examiner Signature of Internal examiner
Date:
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PREFACE
Management of Modern business requires an opportunity of multidisciplinary concept
and in depth knowledge of specific analytical tools, geared to the solution the real life
problems. No doubt every real situation is unique but a set of theoretical tools of knowledge,
itself based on empirical foundation can help in developing the mechanism for handling such
situation. So the MBA curriculum has been desired to provide to the future manager sample
practical exposures to the business world.
Project study report is essential for the fulfilment of MBA curriculum. It provides an
opportunity to the student to understand the industry with special emphasis on the
development of skills in analysing interpreting practical problems through application of
management.
The essential aim of management should be to assist management in decision making
and improving the efficiency of the organisation.
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Acknowledgement
I express my sincere thanks to my project guide, Miss. Nimisha Soni Designation Lecturer,
MBA Department, Government Engineering Collage Jhalawar for guiding me right from the
inception till the successful completion of the project. I sincerely acknowledge her for extending
their valuable guidance, support for literature, critical reviews of project and the report and above
all the moral support he/she/they had provided to me with all stages of this project.
I would also like to thank the supporting staff MBA Department, Government Engineering
Collage Jhalawar, for their help and cooperation throughout our project.
(BHARATI NAMA)
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Executive Summary
Mobile phone market in India is going through major changes. Key players are losing market
share while new and young companies, mostly from Asian countries, are coming to the market.
At the same time the market is slowly expanding when people are buying more phones than
ever. The whole process of buying mobile phones has changed in the last few years. People
no longer carry the same phone year in year out, change is the fast technological development
of the phones. But also consumer’s but they change their phone very year, some even twice a
year. One reason for these attitudes towards mobile phones has changed. Mobile phones are
no longer seen as expensive, hi-tech products, but they have become accessories like
jewellery or a piece of clothing. “Nokia is still the largest mobile phone company in the world,
but its long-term dominance is now challenged more than ever. Observers have begun asking
whether the cutting edge that has turned Nokia into the No 1 vendor still exists, as Nokia’s
market share and revenues have been on the decline. Falling average sales prices (ASPs) and
market share have had an impact and forced Nokia to further re-think its strategy towards
developed and emerging markets.” This report gives an overview on what is happening on the
mobile phone market today and analyses Nokia’s market position in the growing market. This
report includes a brief introduction to Nokia followed by an environmental analysis, SWOT
analysis of the company. Half way through the report you can find information about consumer
behavior and segmentation. At the end, this report introduces the main strategies and
objectives of Nokia for the competitive market. Finally we try to make a conclusion of the topics
discussed and attempt to give some possible answers to the question at hand.
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CONTENTS:
CHAPTER
NO.
TOPIC PAGE NO.
1 Introduction to the industry 6
2 Introduction to the organization 19
3 Research methodology
 Research methodology Meaning
 Type of Research use in project
53
4 Topic of the project consumer behavior
• Title of the Study
• Duration of the project:-
• Objective of Study:
• Scope of Study
• Limitations
55
5 Analysis and interpretation 59
6 SWOT analysis 70
7 Conclusion 73
8 Recommendation and suggestion 75
9 Bibliography 77
Questionnaire 78
CHAPTER -1
INTRODUCTION TO THE INDUSTRY
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 Introduction of Cellular/Mobile phone
 History of mobile phones
 Features of mobile
 Market of mobile
 Mobile as a Media channel
 Restriction on usage
 Need For The Study
INTRODUCTION OF CELLULER/MOBILE PHONE:-

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A mobile telephone or cellular telephone is a long-range, portable electronic device used for
mobile communication. In addition to the standard voice function of a telephone, current mobile
phones can support many additional services such as SMS for text messaging, email, packet
switching for access to the Internet, and MMS for sending and receiving photos and video.
Cellular telephone, sometimes called mobile telephone, is a type of short-wave analog or
digital telecommunication in which a subscriber has a wireless connection from a mobile
telephone to a relatively nearby transmitter. The transmitter's span of coverage is called a cell.
Generally, cellular telephone service is available in urban areas and along major highways. As
the cellular telephone user moves from one cell or area of coverage to another, the telephone
is effectively passed on to the local cell transmitter.
A cellular telephone is not to be confused with a cordless telephone (which is simply a phone
with a very short wireless connection to a local phone outlet).
The first cellular telephone for commercial use was approved by the Federal Communications
Commission (FCC) in 1983. The phone, a Motorola DynaTAC 8000X, weighed 2 pounds,
offered just a half-hour of talk time for every recharging and sold for $3,995.
HISTORY OF MOBILE PHONE
The history of mobile phones begins with early efforts to develop radio telephone technology
and from two-way radios in vehicles and continues through to emergence of the modern
mobile phone and its associated services
The introduction of hexagonal cells for mobile phone base stations, invented in 1947 by Bell
Labs engineers at AT&T, was further developed by Bell Labs during the 1960s. Radiophones
have a long and varied history going back to the Second World War with military use of radio
telephony links and civil services in the 1950s, while hand-held cellular radio devices have
been available since 1983. Due to their low establishment costs and rapid deployment, mobile
phone networks have since spread rapidly throughout the world, outstripping the growth of
fixed telephony.
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In 1945, the 0G generation of mobile telephones were introduced. 0G mobile telephones, such
as Mobile Telephone Service, were not officially categorized as mobile phones, since they did
not support the automatic change of channel frequency in the middle of a call, when the user
moved from one cell (base station coverage area) to another cell, a feature called "handover".
In 1970 Amos Joel of Bell Labs invented the "call handoff" feature, which allowed a mobile-
phone user to travel through several cells during the same conversation. Martin Cooper of
Motorola is widely considered to be the inventor of the first practical mobile phone for handheld
use in a non-vehicle setting. Using a modern, if somewhat heavy portable handset, Cooper
made the first call on a handheld mobile phone on April 3, 1973. At the time he made his call,
Cooper was working as Motorola's General Manager of its Communications Division.
Fully automatic cellular networks were first introduced in the early to mid-1980s (the 1G
generation). The first fully automatic mobile phone system was the 1981 Nordic Mobile
Telephone (NMT) system. Until the early 1990s, most mobile phones were too large to be
carried in a jacket pocket, so they were usually permanently installed in vehicles as car
phones. With the advance of miniaturization and smaller digital components, mobile phones
got smaller and lighter.
.
FEATURES & GROWTH OF MOBILE
Although mobile phones have long had the ability to access data networks such as the
Internet, it was not until the wide spread availability of good quality 3G coverage in the mid
2000s that specialized devices appeared to access the mobile internet. These devices (or
dongles) plugged directly into laptops through the USB port.
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Some manufacturers started to embed the mobile data function directly into the laptop so a
dongle isn't needed. The SIM card is inserted directly into the device itself to access the mobile
data services.
1) Uses
Mobile phones are used for a variety of purposes, including keeping in touch with family
members, conducting business, and having access to a telephone in the event of an
emergency.
Organizations that aid victims of domestic violence may offer a cell phone to potential victims
without the abuser's knowledge. These devices are often old phones that are donated and
refurbished to meet the victim's emergency needs.
Child predators have taken advantage of cell phones to secretly communicate with children
without the knowledge of their parents or teachers.
The advent of widespread text messaging has resulted in the cell phone novel; the first literary
genre to emerge from the cellular age via text messaging to a website that collects the novels
as a whole. Paul Levinson, in Information on the Move (2004), says "...nowadays, a writer can
write just about as easily, anywhere, as a reader can read" and they are "not only personal but
portable".
2) Multiple phones
Individuals may have multiple cell phones for separate purposes, such as for business and
personal use. Multiple phones (or multiple SIM cards) may be used to take advantage of the
benefits of different calling plans—a particular plan might provide cheaper local calls, long-
distance calls, international calls, or roaming. A study by Motorola found that one in ten cell
phone subscribers have a second phone that often is kept secret from other family members.
These phones may be used to engage in activities including extramarital affairs or clandestine
business dealings.
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3) Sharing
Cell phone sharing is a phenomenon which exists around the world. It is prevalent in urban
India, as families and groups of friends often share one or more mobiles among their
members. Two types of sharing which exist are "conspicuous" and "stealthy" sharing. An
example of conspicuous sharing takes place when someone calls the friend of the person they
are trying to reach in hopes of being able to talk to that individual; stealthy sharing occurs
when an individual uses another's cell phone without their knowledge. Phone sharing does not
only take place because of its economic benefits, but also often due to familial customs and
traditional gender roles.
Another example of cell phone sharing occurs in Burkina Faso. There it is not uncommon for a
village to only have access to one cell phone. This cell phone is typically owned by a person
who is not natively from the village, such as a teacher or missionary. Although the cell phone is
the sole property of one individual, it is the expectation that other members of the village are
allowed to use the cell phone to make necessary calls. Although some may consider this a
burden, it can actually be an opportunity to engage in reciprocal obligations. This type of cell
phone sharing is an important for the small villages in Burkina Faso because it allows them to
keep up with the expectations of the globalizing world.
4) Handset
There are several categories of mobile phones, from basic phones to feature phones such as
music phones and camera phones. There are also Smartphone’s, the first Smartphone was
the Nokia 9000 Communicator in 1996 which incorporated PDA functionality to the basic
mobile phone at the time. As miniaturisation and increased processing power of microchips
has enabled ever more features to be added to phones, the concept of the Smartphone has
evolved, and what was a high-end Smartphone five years ago, is a standard phone today.
Several phone series have been introduced to address a given market segment, such as the
RIM BlackBerry focusing on enterprise/corporate customer email needs; the SonyEricsson
Walkman series of musicphones and Cybershot series of cameraphones; the Nokia N-series
of multimedia phones, the Palm Pre the HTC Dream and the Apple iPhone.
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5) Features
Mobile phone features and Smartphone
Mobile phones often have features extending beyond sending text messages and making
voice calls, including call registers, GPS navigation, music (MP3) and video (MP4) playback,
RDS radio receiver, alarms, memo and document recording, personal organiser and personal
digital assistant functions, ability to watch streaming video or download video for later viewing,
video calling, built-in cameras (1.0+ Mpx) and camcorders (video recording), with autofocus
and flash, ringtones, games, PTT, memory card reader (SD), USB (2.0), infrared, Bluetooth
(2.0) and WiFi connectivity, instant messaging, Internet e-mail and browsing and serving as a
wireless modem for a PC, and soon will also serve as a console of sorts to online games and
other high quality games. Some phones also include a touchscreen.
Nokia and the University of Cambridge are demonstrating a bendable cell phone called the
Morph.
6) Power supply
Mobile phones generally obtain power from rechargeable batteries. There are a variety of ways
used to charge cell phones, including USB, portable batteries, mains power (using an AC
adapter), cigarette lighters (using an adapter), or a dynamo. In 2009, wireless charging
became a reality, and the first wireless charger was released for consumer use.
7) Standardization of Micro-USB connector for charging
Starting from 2010, many mobile phone manufacturers have agreed to use the Micro-USB
connector for charging their phones. The mobile phone manufacturers who have agreed to this
standard include:
• Apple
• LG
• Motorola
• Nokia
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• Research In Motion
• Samsung
• Sony Ericsson
On 17 February 2009, the GSM Association announced that they had agreed on a standard
charger for mobile phones. The standard connector to be adopted by 17 manufacturers in the
Open Mobile Terminal Platform including Nokia, Motorola and Samsung is to be the micro-
USB connector (several media reports erroneously reported this as the mini-USB). The new
chargers will be much more efficient than existing chargers. Having a standard charger for all
phones, means that manufacturers will no longer have to supply a charger with every new
phone.
8) Charger efficiency
The world's five largest handset makers introduced a new rating system in November 2008 to
help consumers more easily identify the most energy-efficient chargers
The majority of energy lost in a mobile phone charger is in its no load condition, when the
mobile phone is not connected but the charger has been left plugged in and using power. To
combat this in November 2008 the top five mobile phone manufacturers Nokia, Samsung, LG
Electronics, Sony Ericsson and Motorola set up a star rating system to rate the efficiency of
their chargers in the no-load condition. Starting at zero stars for >0.5 W and going up to the top
five star rating for <0.03 W (30 mW) no load power.
A number of semiconductor companies offering flyback controllers, such as Power Integrations
and CamSemi, now claim that the five star standard can be achieved with use of their product.
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9) Battery
Formerly, the most common form of mobile phone batteries were nickel metal-hydride, as they
have a low size and weight. lithium ion batteries are sometimes used, as they are lighter and
do not have the voltage depression that nickel metal-hydride batteries do. Many mobile phone
manufacturers have now switched to using lithium-polymer batteries as opposed to the older
Lithium-Ion, the main advantages of this being even lower weight and the possibility to make
the battery a shape other than strict cuboid. Mobile phone manufacturers have been
experimenting with alternative power sources, including solar cells and Coca Cola.[30]
10) SIM Card
addition to the battery, GSM mobile phones require a small microchip, called a Subscriber
Identity Module or SIM Card, to function. Approximately the size of a small postage stamp, the
SIM Card is usually placed underneath the battery in the rear of the unit, and (when properly
activated) stores the phone's configuration data, and information about the phone itself, such
as which calling plan the subscriber is using. When the subscriber removes the SIM Card, it
can be re-inserted into another phone that is configured to accept the SIM card and used as
normal.
Each SIM Card is activated by use of a unique numerical identifier; once activated, the
identifier is locked down and the card is permanently locked in to the activating network. For
this reason, most retailers refuse to accept the return of an activated SIM Card.
Those cell phones that do not use a SIM Card have the data programmed in to their memory.
This data is accessed by using a special digit sequence to access the "NAM" as in "Name" or
number programming menu. From here, one can add information such as a new number for
the phone, new Service Provider numbers, new emergency numbers, change their
Authentication Key or A-Key code, and update their Preferred Roaming List or PRL. However,
to prevent someone from accidentally disabling their phone or removing it from the network,
the Service Provider puts a lock on this data called a Master Subsidiary Lock or MSL.
The MSL also ensures that the Service Provider gets payment for the phone that was
purchased or "leased". For example, the Motorola RAZR V9C costs upwards of CAD $500.
Depending on the carrier, such a phone may be available for as little as $200. The difference is
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paid by the customer in the form of a monthly bill. If the carrier did not use an MSL, then they
may lose the $300–$400 difference that is paid in the monthly bill, since some customers
would cancel their service and take the phone to another carrier.
The MSL applies to the SIM only so once the contract has been completed the MSL still
applies to the SIM. The phone however, is also initially locked by the manufacturer into the
Service Providers MSL. This lock may be disabled so that the phone can use other Service
Providers SIM cards. Most phones purchased outside the US are unlocked phones because
there are numerous Service Providers in close proximity to one another or have overlapping
coverage. The cost to unlock a phone varies but is usually very cheap and is sometimes
provided by independent phone vendors.
Having an unlocked phone is extremely useful for travelers due to the high cost of using the
MSL Service Providers access when outside the normal coverage areas. It can cost
sometimes up to 10 times as much to use a locked phone overseas as in the normal service
area, even with discounted rates. T-Mobile will provide a SIM unlock code to account holders
in good standing after 90 days according to their FAQ.
MARKET OF MOBILE
The world's largest individual mobile operator is China Mobile with over 500 million mobile
phone subcribers. The world's largest mobile operator group by subscribers is UK based
Vodafone. There are over 600 mobile operators and carriers in commercial production
worldwide. Over 50 mobile operators have over 10 million subscribers each, and over 150
mobile operators have at least one million subscribers by the end of 2008 (source wireless
intelligence).
In mobile phone handsets, in Q3/2008, Nokia was the world's largest manufacturer of mobile
phones, with a global device market share of 39.4%, followed by Samsung (17.3%), Sony
Ericsson (8.6%), Motorola (8.5%) and LG Electronics (7.7%). These manufacturers accounted
for over 80% of all mobile phones sold at that time.
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MOBILE AS A MEDIA CHANNEL
The mobile phone became a mass media channel in 1998 when the first ringtones were sold to
mobile phones by Radiolinja in Finland. Soon other media content appeared such as news,
videogames, jokes, horoscopes, TV content and advertising. In 2006 the total value of mobile
phone paid media content exceeded internet paid media content and was worth 31 Billion
dollars (source Informa 2007). The value of music on phones was worth 9.3 Billion dollars in
2007 and gaming was worth over 5 billion dollars in 2007.
The mobile phone is often called the Fourth Screen (if counting cinema, TV and PC screens as
the first three) or Third Screen (counting only TV and PC screens). It is also called the Seventh
of the Mass Media (with Print, Recordings, Cinema, Radio, TV and Internet the first six). Most
early content for mobile tended to be copies of legacy media, such as the banner
advertisement or the TV news highlight video clip. Recently unique content for mobile has
been emerging, from the ringing tones and ringback tones in music to "mobisodes," video
content that has been produced exclusively for mobile phones.
The advent of media on the mobile phone has also produced the opportunity to identify and
track Alpha Users or Hubs, the most influential members of any social community. AMF
Ventures measured in 2007 the relative accuracy of three mass media, and found that
audience measures on mobile were nine times more accurate than on the internet and 90
times more accurate than on TV.
i) Privacy
Cell phones have numerous privacy issues associated with them, and are regularly used by
governments to perform surveillance.
Law enforcement and intelligence services in the UK and the US possess technology to
remotely activate the microphones in cell phones in order to listen to conversations that take
place nearby the person who holds the phone.
Mobile phones are also commonly used to collect location data. The geographical location of a
mobile phone can be determined easily (whether it is being used or not), using a technique
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known multilateration to calculate the differences in time for a signal to travel from the cell
phone to each of several cell towers near the owner of the phone.
RESTRICTION ON USAGE
There exists a growing body within the scientific community which believes mobile phone use
represents a long-term health risk, particularly to young children. Certain countries, including
France, restrict the use and sale of cell phones to minors for this reason. The
telecommunications insdustry rejects such claims, claming there is no proof of long-term
adverse health effects. Groups of scientists, however, such as the U.S. - based group
"Bioinitiative argue that because mobile phone use is recently-introduced technology, long-
term 'proof' has been impossible - and use should be restricted, or monitored closely, while the
technology is still new. The very first generation of cell-phone users, for example, are only now
entering middle-age. Studies in Europe, for example, are only now emerging which link long-
term cell phone use to brain tumours. Other studies link cell-phone use to child-diabetes,
concentration difficulty, and sleep disorders.
1) Use While Driving
Mobile phone use while driving is common but controversial. Being distracted while operating a
motor vehicle has been shown to increase the risk of accident. Because of this, many
jurisdictions prohibit the use of mobile phones while driving. Egypt, Israel, Japan, Portugal and
Singapore ban both hand-held and hands-free use of a mobile phone whilst many other
countries –including the UK, France, and many US states– ban hand-held phone use only,
allowing hands-free use.
Due to the increasing complexity of mobile phones –often more like mobile computers in their
available uses– it has introduced additional difficulties for law enforcement officials in being
able to tell one usage from another as drivers use their devices. This is more apparent in those
countries who ban both hand-held and hands-free usage, rather those who have banned hand-
held use only, as officials cannot easily tell which function of the mobile phone is being used
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simply by visually looking at the driver. This can mean that drivers may be stopped for using
their device illegally on a phone call, when in fact they were not; instead using the device for a
legal purpose such as the phones' incorporated controls for car stereo or satnav usage – either
as part of the cars' own device or directly on the mobile phone itself.
Cases like these can often only be proved otherwise by a check of the mobile operators phone
call records to see if a call was taking place during the journey concerned. Although in many
countries the law enforcement official may have stopped the driver for a differing offence, for
example, for lack of due care and attention in relation to their driving.
2) Schools
Some schools limit or restrict the use of mobile phones. Schools set restrictions on the use of
mobile phones because of the use of cell phones for cheating on tests, harassment and
bullying, causing threats to the schools security, distractions to the students and facilitating
gossip and other social activity in school. Many mobile phones are banned in school locker
room facilities, public restrooms and swimming pools due to the built-in cameras that most
phones now feature.
A recently published study has reviewed the incidence of mobile phone use while cycling and
its effects on behaviour and safety.
NEED FOR THE STUDY
The mobile subscriber base is growing at a scorching pace in India, India is now the 5th
country in the world to have crossed the 100 million mark in subscriber base and has in the
last two months become the fastest growing mobile market in the world.
As average revenue per user decrease from voice drops, and voice becomes commoditized,
Telecom companies are increasingly looking at data as an additional revenue stream. The end
users have also embraced VAS and it contributes between 5-10% of the revenues of different
Telecom Companies. Thus Mobile VAS has become an important element in the growth of
mobile telephony in India.
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Yet it is also equally true that there is little clarity on business issues and growth seems to be
driven by more by inherent market momentum than a concentrated effort on the part of the
stakeholders; differences exist even on basic issues like definition for Mobile VAS
Major Players :
There are three major player in this industry:
(1) Nokia (Finlend)
(2) Samsung (South Korea)
(3) Motorola (American)
(4) Sony Ericsson (Japan)
(5) Lg (South Korea)
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CHAPTER -2
Introduction to the organization:
 Nokia an Introduction
 Corporate Affairs
 Online Services
 Different Technology
 product of Nokia & its features
 Nokia Mobile Phone Market strategies
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NOKIA - AN INTRODUCTION
In 1865, an engineer named Fredrik Idestam established a wood-pulp mill and started
manufacturing paper in southern Finland near the banks of a river. Those were the days when
there was a strong demand for paper in the industry, the company’s sales achieved its high-
stakes and Nokia grew faster and faster. The Nokia exported paper to Russia first and then to
the United Kingdom and France. The Nokia factory employed a fairly large workforce and a
small community grew around it. In southern Finland a community called Nokia still exists on
the riverbank of Emäkoski.
Finnish Rubber Works, a manufacturer a Rubber goods, impressed with the hydro-electrcity
produced by the Nokia wood-pulp (from river Emäkoski), merged up and started selling goods
under the brand name on Nokia. After World War II, it acquired a major part of the Finnish
Cable Works shares. The Finnish Cable Works had grown quickly due to the increasing need
for power transmission and telegraph and telephone networks in the World War II. Gradually
the ownership of the Rubber Works and the Cable Works companies consolidated. In 1967, all
the 3 companies merged-up to form the Nokia Group. The Electronics Department generated 3
% of the Group’s net sales and provided work for 460 people in 1967, when the Nokia Group
was formed.
In the beginning of 1970, the telephone exchanges consisted of electro-mechanical analog
switches. Soon Nokia successfully developed the digital switch (Nokia DX 200) thereby
replacing the prior electro mechanical analog switch. The Nokia DX 200 was embedded with
high-level computer language as well as Intel microprocessors which in turn allowed computer-
controlled telephone exchanges to be on the top and which is till date the basis for Nokia’s
network infrastructure.
Introduction of mobile network began enabling the Nokia production to invent the Nordic
Mobile Telephony(NMT), the world’s very first multinational cellular network in 1981. The NMT
was later on introduced in other countries. Very soon Global System for Mobile
Communication (GSM), a digital mobile telephony, was launched and Nokia started the
development of GSM phones. Beginning of the 1990 brought about an economic recession in
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Finland. (Rumour has it that Nokia was offered to the Swedish telecom company Ericsson
during this time which was refused) Due to this Nokia increased its sale of GSM phones that
was enormous. This was the main reason for Nokia to not only be one of the largest but also
the most important companies in Finland. As per the sources, in August 1997, Nokia supplied
GSM systems to 59 operators in 31 countries.
Slowly and steadily, Nokia became a large television manufacturer and also the largest
information technology company in the Nordic countries. During the economic recession the
Nokia was committed to telecommunications. The 2100 series of the production was so
successful that inspite of its goal to sell 500,000 units, it marvellously sold 20 million.
Presently, Nokia is the number 1 production in digital technologies, it invests 8.5% of net sales
in research and development. Also has its annual Nokia Game.
Enter to Global System Communication
Nokia Corporation (Nokia), a Finland based company incorporated in 1967, is the leading
manufacturer of mobile devices and mobile networks in the world. Over the years, Nokia has
evolved from a pulp, rubber and cables manufacturing company to a major manufacturer of
wireless devices and networks. Nokia offers a wide range of mobile devices with experiences
in music, navigation, video, television, imaging, games and business mobility. It also provides
equipment, solutions and services for network operators, service providers and corporations.
The company offers its products in 150 countries across the world. It is headquartered in
Espoo, Finland and employs about 68,500 people.
The company recorded revenues of E41, 121 million during the fiscal year ended December
2006, and an increase of 20.3% over 2005. The operating profit of the company was E5, 488
million during fiscal year 2006, an increase of 18.3% over 2005. The net profit was E4, 306
million in fiscal year 2006, an increase of 19.1% over 2005.
Nokia Corporation manufactures mobile devices principally based on global system for mobile
communications, code division multiple access (CDMA), and wideband CDMA (WCDMA)
technologies. The company operates in three divisions: Multimedia, Enterprise Solutions, and
Networks. The Multimedia division focuses on bringing connected mobile multimedia to
consumers in the form of advanced mobile devices, including 3G WCDMA mobile devices and
solutions. The Enterprise Solutions division enables businesses and institutions to extend their
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use of mobility from mobile devices for voice and basic data to secure mobile access, content,
and applications. Its solutions include business-optimized mobile devices for end users, a
portfolio of Internet portfolio network perimeter security gateways, and mobile connectivity
offerings. The Networks division provides network infrastructure, communications, and
networks service platforms and professional services to operators and service providers. Nokia
Corporation is based in Espoo, Finland.
NOKIA IN INDIA
Nokia India Private Limited first started operations in India in 1995, and presently operates out
of offices in Gurgaon, New Delhi, Mumbai, Kolkata, Bangalore, Hyderabad and Ahmedabad,
covering the whole of India for the company’s different businesses.
We wrote telecom history in India together with our customers, when the first GSM call in India
was made on a Nokia 2110 mobile phone on a Nokia-supplied network in 1995.
Today, our operations include both the handsets and infrastructure businesses, supported by
about 1200 personnel covering Mobile Phones, Multimedia, Enterprise solutions, and Network
infrastructure.
India is among the top 10 markets for Nokia worldwide today. In new growth markets such as
India, with mobile phone penetration being less than five per cent of its over one billion
population, Nokia is focused on working closely with operators to lower the total cost of
ownership and usage for consumers, by offering the right mix of affordable and attractive
handsets with relevant feature sets and essential mobile voice and messaging services, to
bring the benefits of mobile communication to end-users.
Over the years, Nokia has established itself as the market and brand leader in the mobile
device market. Nokia has a diverse product portfolio in India to meet the needs of different
consumer segments, ranging from advanced multimedia devices, to an affordable range of
entry level phones for first time subscribers
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Corporate Responsibility:-
Being a good corporate citizen means meeting responsibilities towards individuals, the
environment, and society in general. We are making corporate responsibility an integral part of
decision-making in all parts of our business.
Financial Factor:-
Nokia achieves excellent profitability in the first quarter 2003 and mobile phone volumes grow
faster than market.
Mission Statement:-
Many organizations develop formal mission statements that answer these questions. A mission
statement is a statement of the organization’s urpose—what it wants to accomplish in the
larger environment. A clear mission statement acts as an invisible hand that guides people in
the organization.
The mission statement of NOKIA is…
“ CONNECTING PEOPLE ”
Goals:-
The goal of NOKIA is “to be a good corporate citizen wherever we operate, as a responsible
and contributing member of society. We take part in long-term projects aimed at helping
young people create their own place in the world, for example through our global youth
programs.”
Digital Bridging:-
Digital Bridging is an integral part of everyday business. It is also an important part of the
company's Corporate Community Involvement activities that focus on youth and education.
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Target Market:-
The target market of NOKIA is very wide. Its products are demanded world wide and are given
preference at any other cellular company in the world. They have comparatively low rates than
the other companies and have a very good and interactive performance and interesting
features, so because of these features, people prefer NOKIA than the other companies.
Portfolio Analysis:
The major activity in strategic management is business portfolio analysis whereby
management evaluates the business making up the company. The company will want to put
strong resources into its most profitable business and phase down or drop its weaker ones.
So while analyzing the portfolio of NOKIA, it was found that its product of cellular phones,
especially its GSM sets were making more profit to the company as compare to its other
products. So the company invested more budget in this area and started development on this
area to earn the maximum profit. But in the mean while, the company didn’t neglected their
other products and invested more money on the development of those products.
Micro and Macro Environmental Factors
Effecting Business
The actions and forces outside marketing that affect marketing management’s ability to
develop and maintain successful transactions within target customers, is called themarketing
environment.
Environmental considerations are integrated into every area of company life and at every
phase of our products' life cycle. We believe in eco-efficiency and sustainability - to respect
nature and the needs of future generations. Nokia's new Environmental Report 2002 states the
company's understanding of the environmental aspects and impacts of its activities.
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There are two categories of marketing environment:
1. Micro environment
2. Macro environment
1- Micro Environment:-
Following are the micro environmental factors which affects the company:
· The company
· Suppliers
· Marketing intermediaries
· Customers
· Competitors
· Publics
2- Macro environment:-
Following are the macro environmental factors which affects the company:
· Demographic environment
· Economic environment
· Natural environment
· Technological environment
· Political environment
· Cultural environment
Competitive Analysis:-
Visually, there is no any key competitor to NOKIA as comparing its vast market and demand,
but still, we can consider the following companies as its competitors:-
· Ericson
· Motorola
· Samsung
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· Sony
These competitors of NOKIA has also a big market, but as compared to NOKIA, we cannot
say that they can compete this organization at the same level of competition.
Social Factors:-
Every Nokia employee has influence over Nokia's performance and reputation in issues of
health, safety, security, employee relations, corporate citizenship and human rights.
Marketing Strategy
As we move into the Mobile World, we remain committed to strong growth, profitability and
responsible market leadership.
Strategic Direction:-
The mobile phone is fast becoming the centerpiece of personal communication, allowing us
access to an ever-widening range of services. Today, we are moving from voice services to
services driven by data and multimedia.
Business Environment:-
Nokia competes in the global telecommunications industry in general and in the mobile
industry in particular, each of which has exhibited rapid growth, change and convergence in
recent years.
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CORPORATE AFFAIRS
1) Corporate Structure
A) Divisions
Since October 1, 2009, Nokia comprises three business
groups: Devices, Services, Solutions and Markets. The four units receive operational support
from the Corporate Development Office, led by Mary T. McDowell, which is also responsible
for exploring corporate strategic and future growth opportunities.
On April 1, 2007, Nokia’s Networks business group was combined with Siemens’ carrier-
related operations for fixed and mobile networks to form Nokia Siemens Networks, jointly
owned by Nokia and Siemens and consolidated by Nokia.
B) Subsidiaries
Nokia has several subsidiaries, of which the two most significant as of 2009 are Nokia
Siemens Networks and Navteq. Other notable subsidiaries include, but are not limited to Vertu,
a British-based manufacturer and retailer of luxury mobile phones; Qt Software, a Norwegian-
based software company, and OZ Communications, a consumer e-mail and instant messaging
provider.
Until 2008 Nokia was the major shareholder in Symbian Limited, a software development and
licensing company that produced Symbian OS, a smartphone operating system used by Nokia
and other manufacturers. In 2008 Nokia acquired Symbian Ltd and, along with a number of
other companies, created the Symbian Foundation to distribute the Symbian platform royalty
free and as open source.
C) Nokia Siemens Networks
Nokia Siemens Networks (previously Nokia Networks) provides wireless and wired network
infrastructure, communications and networks service platforms, as well as professional
services to operators and service providers. Nokia Siemens Networks focuses
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in GSM, EDGE, 3G/W-CDMA and Wi-MAX radio access networks; core networks with
increasing IP and multi access capabilities; and services.
On June 19, 2006 Nokia and Siemens AG announced the companies are to merge their
mobile and fixed-line phone network equipment businesses to create one of the world's largest
network firms, called Nokia Siemens Networks. The Nokia Siemens Networks brand identity
was subsequently launched at the 3GSM World Congress in Barcelona in February 2007.
As of March 2009, Nokia Siemens Networks serves more than 600 operator customers in
more than 150 countries, with over 1.5 billion people connected through its networks.
D) Navteq
Navteq is a Chicago, Illinois-based provider of digital map data for automotive navigation
systems, mobile navigation devices, Internet-based mapping applications, and government
and business solutions. Navteq was acquired by Nokia on October 1, 2007. Navteq’s map data
is part of the Nokia Maps online service where users can download maps, use voice-guided
navigation and other context-aware web services. Nokia Maps is part of the Ovi brand of
Nokia's Internet based online services.
2) Corporate Governance
The control and management of Nokia is divided among the shareholders at a general meeting
and the Group Executive Board (left), under the direction of the Board of Directors (right). The
Chairman and the rest of the Group Executive Board members are appointed by the Board of
Directors. Only the Chairman of the Group Executive Board can belong to both, the Board of
Directors and the Group Executive Board. The Board of Directors' committees consist of the
Audit Committee, the Personnel Committee and the Corporate Governance and Nomination
Committee.
The operations of the company are managed within the framework set by the Finnish
Companies Act, Nokia's Articles of Association and Corporate Governance Guidelines, and
related Board of Directors adopted charters.
3) Corporate Culture
The Nokia House, Nokia's head office in Keilaniemi,Espoo, Finland.
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Nokia's official corporate culture manifesto, The Nokia Way, emphasises the speed and
flexibility of decision-making in a flat, networked organization, although the corporation's size
necessarily imposes a certain amount of bureaucracy.
The official business language of Nokia is English. All documentation is written in English, and
is used in official intra-company spoken communication and e-mail.
Until May 2007, the Nokia Values were Customer Satisfaction, Respect, Achievement, and
Renewal. In May 2007, Nokia redefined its values after initiating a series of discussions
worldwide as to what the new values of the company should be. Based on the employee
suggestions, the new values were defined as: Engaging You, Achieving Together, Passion for
Innovation and Very Human.
ONLINE SERVICES
1) Mobi and the Mobile Web
Nokia was the first proponent of a Top Level Domain (TLD) specifically for the Mobile Web
and, as a result, was instrumental in the launch of the .mobi domain name extension in
September 2006 as an official backer. Since then, Nokia has launched the largest mobile
portal, Nokia.mobi, which receives over 100 million visits a month.]
It followed that with the
launch of a mobile Ad Service to cater to the growing demand for mobile advertisement.
2) Ovi
Ovi, announced on August 29, 2007, is the name for Nokia's "umbrella concept" Internet
services. Centered on Ovi.com, it is marketed as a "personal dashboard" where users can
share photos with friends, download music, maps and games directly to their phones and
access third-party services like Yahoo's Flickr photo site. It has some significance in that Nokia
is moving deeper into the world of Internet services, where head-on competition with Microsoft,
Google and Apple is inevitable.
The services offered through Ovi include the Ovi Store (Nokia's application store), the Nokia
Music Store, Nokia Maps, Ovi Mail, the N-Gage mobile gaming platform available for several
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S60 smartphones, Ovi Share, Ovi Files, and Contacts and Calendar. The Ovi Store, the Ovi
application store was launched in May 2009. Prior to opening the Ovi Store, Nokia integrated
its software Download! store, the stripped-down MOSH repository and the widget service
WidSets into it.
3) My Nokia
Nokia offers a free personalised service to its subscribers called My Nokia (located at
my.nokia.com). Registered My Nokia users can avail free services as follows:
• Tips & tricks alerts through web, e-mail and also mobile text message.
• My Nokia Backup: A free online backup service for mobile contacts, calendar logs and
also various other files. This service needs GPRS connection.
• Numerous ringtones, wallpapers, screensavers, games and other things can be
downloaded free of cost.
4) Comes With Music
On December 4, 2007, Nokia unveiled their plans for the "Nokia Comes With Music" initiative,
a program that would partner with Universal Music Group International, Sony BMG, Warner
Music Group, and EMI as well as hundreds of Independent labels and music aggregators to
bundle 12, 18, or 24 months worth of unlimited free music downloads with the purchase of a
Nokia Comes With Music edition phone. Following the termination of the year of free
downloads, tracks can be kept without having to renew the subscription. Downloads are both
PC and mobile-based.
5) Nokia Messaging
On August 13, 2008, Nokia launched a beta release of "Nokia Email service", a new push e-
mail service, since graduated as part of Nokia Messaging. Nokia Messaging operates as a
centralized, hosted service that acts as a proxy between the Nokia Messaging client and the
user's e-mail server. It does not allow for a direct connection between the phone and the e-mail
server, and is therefore required to send e-mail credentials to Nokia's servers. IMAP is used as
the protocol to transfer emails between the client and the server.
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DIGITAL SERVICES:-
A method of encoding information using a binary code of 0’s and 1’s. Most newer wireless
phones and networks use digital technology. In digital, the analog voice signal is converted into
binary code and transmitted as a series of on and off transmissions. One of digitals drawbacks
is that there are three digital wireless technologies, CDMA, TDMA, and GSM. Phones that
work with one technology may not work on another.
A) TDMA IS-136 (TIME DIVISION MULTIPLE ACCESS):-
It is an update to TDMA IS-54, also called Digital AMPS or D-AMPS. Released in 1994, TDMA
IS-136 uses the frequency bands available to the wireless network and divides them into time
slots with each phone user having access to one time slot at regular intervals. TDMA IS-136
exists in North America at both the 800 MHz and 1900 MHz bands. Major US carriers using
TDMA and AT & T wireless services, BELL SOUTH and SOUTH WESTERN BELL.
B) CDMA IS-95 (CODE DIVISION MULTIPLE ACCESS):-
It is based on a form of spread spectrum technology that separates voice signals by assigning
them digital codes within the same broad spectrum. CDMA type technology was used in
military communication systems because it was resistant to interface from enemy signals. The
Qualcomm Corporation began developing a CDMA wireless system in the late 1980’s that was
accepted as a s tandard in 1993 and went into a operation by 1996. CDMA also exists at both
the 800 MHz and 1900 MHz bands. The major US carriers using CDMA are AIR TOUCH,
BELL ATLANTIC / NYNEX, GTE, PRIMECO and SPRINT PCS.
C) GSM (GLOBAL SYSTEM FOR MOBILE COMMUNICATIONS):-
It is based on an improved version of TDMA technology. In 1982, the conference of European
posts and Telecommunications (CEPT) began the process of creating a digital cellular
standard that would allow users to roam from country to country in Europe. By 1987, the GSM
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standard was created based on a hybrid of FDMA (Analog) and TDMA (Digital) technologies.
GSM engineers decided to use wider 200 KHz channels instead of the 30 KHz channels that
TDMA used, and instead of having only 3 slots like TDMA, SM channels had 8 slots. This
allowed for fast bit rates and more natural-sounding voice- compression algorithms. GSM is
currently the only one of the three technologies that provides data services such as email, fax,
internet browsing, and intranet / LAN wireless access, and it’s also the only service that
permits users to place a call from either North America or Europe. The GSM standard was
accepted in the US in 1995. GSM-1900 cellular systems have been operating in the US since
1996, with the first network being in the Washington D.C. area. Major carriers of GSM 1900
include omni point, Pacific Bell, Bell South, Sprint Spectrum, Microcell, Western Wireless,
Powertel and Aerial.
DIFFERENT TECHNOLOGY:-
(A.) Bluetooth Technology:-
It is a technology for wireless communication between devices. It’s based on a lowcost short-
range radio link. Every decorator knows that cables and wires are unsightly and confusing.
Bluetooth connections allow wireless communication between devices within a range of about
30 feet (10 metres). Unlike infrared, you don’t have to point devices directly at each other, or
even have both devices in the same room. Blue tooth can initiate connections automatically
with paired devices, so you don’t even have to think about it. And no, you don’t have to pay for
a Bluetooth connection, no matter how much data you transfer. When two devices share
information, there are a few things that have to be worked out: firstly, how they will physically
connect through how many wires? Or none at all? – And then what are the agreed commands
that will make sense to both devices? Bluetooth is an industry standard that solves both of
these issues cheaply, and using very little battery power.
(B.) GPRS Technology:-
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General Packet Radio Service is a technology that allows your phone to transfer data at
moderate speeds. GPRS lets you send data faster than over a GSM data network, and it’s also
a lot more efficient. But “data” sounds pretty vague. To use GPRS, you need a phone that
supports it, a subscription from your network operator that supports GPRS, and the proper
settings. GPRS does what it says: it sends “packets” of data over a radio wave (on GSM
network). Packet switching works like a jigsaw puzzle: your data is split into many pieces, then
sent over the network and reassembled at the other end. GPRS is just one of the ways to
transport these jigsaw puzzles.
(C.) EDGE Technology:-
Enhanced Data rates for Global Evolution (EDGE) enables data connections three times faster
than GPRS within the same multi slot class. Like GPRS, you’re billed for the data you transfer,
not for the time you spend connected. EDGE opens up a lot of possibilities for connecting to
data networks on your mobile phone, making it far less frustrating to stream video and
download larger files. To use EDGE, you need a phone that supports it, a subscription from
your network operator that supports EDGE, and the proper settings. EDGE is based on
General Packet Radio Service, which sends “packets” of data over a radio wave. Packet
Switching works like a jigsaw puzzle: your data is split into many pieces, then sent over the
network and reassembled at the other end. GPRS is just one of the ways to transport these
jigsaw puzzles.
(D.) JAVA Technology:-
JAVA is both a programming language and a software platform, and its used to create and run
applications for Nokia phones. With JAVA applications, your phone can do more of the things
you’d like it to do. Downloading and installing applications is a relatively simple process (as is
uninstalling them), and there is a wide range of applications available. JAVA was originally
developed by Sun Microsystems. Enhancements and standardization of the JAVA platforms
are conducted by the JAVA Community Process (JCP), in which Nokia takes on active role
together with sun and othermembers. There are two parts to JAVA technology: a programming
language, and an environment in which those commands can be executed. You need an
environment where the language means something, so JAVA brings its own environment
along. JAVA enabled Nokia phones – most Nokia models on the market now-contain a JAVA
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Virtual Machine, which is ready to run applications written in JAVA. This makes using new
applications easy, because you usually don’t have to configure, load, or install anything else.
(E.) MMS Technology:-
MMS stands for Multimedia Messaging Service, a technology that allows you to create, send
and receive text messages that also include an image, audio, and / or video clips. MMS
messages are sent from one mobile phone to another, or to an email address. Multimedia
Messaging enriches your mobile messages in much the same way as inserting photos or
changing fonts and colours does in email – it’s both useful and expressive. MMS messages
are sometimes considered equivalent to so –called “Picture Messaging”, popularized by the
recent imaging phones boom, but other uses of the technology do exist.
You don’t need to have an imaging phone to send and receive MMS messages, just an MMS-
enabled mobile phone, an operator management that supports the service, and the correct
settings on your handset. Of course, an imaging phone gives you the option of creating and
passing on your original images. An MMS message is a multimedia presentation in a single
entry, unlike an email with attachments, making it easier to create and simpler to deliver than
an email with attachments. MMS is a scalable technology, which means it’s suitable for most
types of mobile phones. And MMS is compatible with fixed email addresses, so it is possible to
criss-cross back and forth over the mobile-PC border.
(F.) Mobile browsing network :-
A mobile browser is simply any program that lets you access and read content on network
from a mobile device – usually the Internet or some other mobile network service. As more
phones on the market boast high network connection speeds and colour screens, mobile
browsing is becoming more common (and a lot better looking). Many new Nokia models come
with an integrated XHTML or even HTML mobile browser, giving you the chance to surf without
being chained to a desktop computer. Today’s mobile browsers give you richer colours and
faster browsing than the original mobile browsers, and most importantly, a way to access the
web at your finger tips. network operator to a data service (GSM data, GPRS, EDGE,
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WCDMA, etc) and the correct settings on your phone. Then its up to other companies and
individuals to build the sites and services you can browse
PRODUCT OF NOKIA AND ITS FEATURES
Nokia 1208
Key Features
• Experience enhanced visual with the 65,536 color display
• Dust and splash proof with rubberized keypad and anti-slippery back cover
• Bright flashlight for convenience and emergency
• Timer tracker feature helps you controls the duration of each call
• Multiple phonebook makes sharing phone easier
• Easy–to-use menu in multi languages with calendars
Operating Frequency
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• GSM Dualband EGSM 900/1800 MHz
Messaging
• Text messaging: Supports concatenated SMS, picture messaging, SMS distribution
list
• Distribution list - create and manage your personal list
• Predictive Text Input: Support for all major languages in Europe and Asia Pacific
including Indian dialect
• Large SMS storage for up to 60 SMS on phone memory
Ringing Tones
• 32-chord/voice polyphonic ringing tones with MP3-grade sound
Voice Features
• Integrated handsfree speaker
Personal Information Management (PIM)
• Multi phonebook
• Alarm clock
• Analog/digital clock
• Reminders
• Stopwatch
• Calculator
• Calendar
• Converter
• Countdown timer
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Nokia 1100
Features
• 96 x 65 pixels Monochrome graphic Display
• 2G Network, GSM Network
• Ringtone composer
• Internal Antenna
• Picture messaging, SMS to many, Calculator, Stopwatch
• Downloadable monophonic ringtones
• Talk time Up to 4 h 30 min
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Nokia 1650
Key Features
• Easy one-touch key to activate FM radio in an instant
• Enjoy easy viewing with the 65,536 colors, large screen display and large font type
when dialing
• Personalize your phone ring with quality MP3-grade and 32 Polyphonic ringtones
• Extend your talk time with Power Saver mode
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• Convenient one-touch key to switch on built-in flashlight
Nokia 2626
Key Features
• Stand out from peers and friends with colored covers
• Listen to and share your FM radio music through the integrated handsfree speaker
• Record sound on the move and send to friends with Nokia Xpress Audio Messaging
• Download wallpapers & ringing tones via GPRS
• Stay updated on work and play with one inbox for SMS and MMS messages
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Nokia 2600 Classic
Key features
• Capture images and videos in dazzling color with the digital VGA camera and video
recorder
• Personalize your phone with MP3, ringtones and user-created ringtones
• Enjoy music and news on the move with the FM radio
• Monitor call times with Pre-paid Tracker
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• Share your photos and video clips with friends and family using Bluetooth
• Keep in contact with SMS, MMS, email, and Nokia Xpress Audio Messaging
• Keep all your contacts on hand with 1000-entry phone book
•
• photo and data sharing with Bluetooth 2.0
Nokia 3500 classic
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Key Features
• An elegant, large, glossy black 1.8" smoked screen makes viewing all your photos a
pleasure.
• A solid metal rim around the phone protects the screen from scratches
• Splitline coloring in the keymat adds a touch of color
• Benefit from easy connectivity with Bluetooth, and a mini-USB port to connect to a PC
• Save more of your moments with the option to use MicroSD memory cards up to 2GB
• Ensure you’re always in touch with up to 2,000 contacts.
• Stay entertained with a music player and FM radio
• Make your handset unique with MP3 ringtones
Nokia 6500 slide
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Key Features
Take high quality pictures with a 3.2 megapixel camera with Carl Zeiss optics, auto focus,
and 8x digital zoom
A powerful double LED flash makes indoor pictures perfect
Share pictures or videos with friends and family via TV-Out
3G video calling helps you feel even closer to the people you care about
Imaging and Video
• Integrated 3.2 megapixel camera with Carl Zeiss optics, auto focus, with up to 8x digital
$zoom
• Integrated double LED flash
• Macroshot, landscape mode, sequential shots, and dedicated 2-step capture key
• Horizontal mode with capture and zoom keys allows you to use the phone like a digital
camera
Nokia N72
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Key Features
• "Slide and shoot" print quality photos with 2 megapixel camera with up to 20x zoom
• Dedicated music keys for access to digital music player
• Ambient light detector optimizes display brightness
• Transfer data with Bluetooth wireless connectivity or via USB 2.0
.
Nokia N73
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Key Features
• 3.2 megapixel camera with Carl Zeiss optics
• Large, bright 2.4-inch display
• Advanced auto-focus and mechanical shutter
• Stereo FM and support for Visual Radio
• Download and stream videos with built-in RealPlayer
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Nokia 5233
Features:
• Display : Type TFT resistive touch screen, 16M colors , Size: 360 x 640 pixels, 3.2
inches.
• Handwriting recognition.
• Sound : Alert types Vibration, MP3 ringtones.
• Speakerphone: Yes.
• 3.5 mm audio jack.
• Memory.
• Phonebook: Practically unlimited entries and fields, Photocall.
• Call records: Detailed, max 30 days.
• Internal: 70 MB storage, 128 MB RAM.
• Camera : Primary 2 MP, 1600x1200 pixels.
• Video: Yes.
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• Messaging: SMS, MMS, Email
Nokia C-6
Features:
• 3.2 inches TFT resistive touchscreen display
• QWERTY keyboard
• 5MP Camera with Video recording facility
• Internal memory upto 240MB
• Multimedia Player with Stereo FM radio
• microUSB connectivity version 2.0
• Bluetooth version 2.0 with A2DP
• Talktime upto 7hrs
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NOKIA MOBILE PHONE MARKET STRATEGIES
In spite of the presence of big names in consumer electronics like Samsung, LG, Sony-
Ericsson and Motorola, Nokia really rules the mobile phone market all over the world with
nearly 40% of the market share with no close competitors. Nokia is certainly the king when it
comes to brand value, service and experience. The Finnish mobile giant is clearly No. 1 choice
in South East Asia including India and China. How they could reach the top position?
1. Call Quality
Nokia is known for its circuitry to handle the RF Reception and providing the best call reception
quality. You won’t see users complaining much about the noise or the disturbances within
Nokia phones unless its a problem of the telecom service provider. So, the primary objective of
a mobile phone i.e. to serve us with better and clearer sound when we talk , is served by Nokia
perfectly. And if you are a person who is accustomed to other mobile phone manufacturers,
then you know that even Apple iPhone and Sony Ericsson are guilty of it
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2. Hardware
You can be assured of the quality that Nokia provides in your phone hardware. The circuits are
far more durable and reliable than any of the other mobile phone available in the market. I am
using a single Nokia phone for 6 years and I had to take it to the service centre only once
during this period for a trivial problem. That speaks for the truth I am talking about.
3. Battery
The Battery life of Nokia mobile phones is longer than many other cellphones available in the
market. People who talk a lot prefer Nokia than any other brands. They always know that the
battery will not run out in the middle of the call. iPhone has had this problem with battery life in
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the past and that hasn’t been solved yet. Nokia leaves others miles behind when we consider
the longevity of the battery.
4. Robustness
Everyone knows that Nokia mobiles are truly rock solid. I want to share my experience with
respect to this. I dropped my Nokia the very next day I bought it. I dropped it on the staircase
and it bounced to nearly 12 steps down. My heart pumped out with the fear of losing the phone
on the second day. But what I found when I reached downstairs is that the phone is fully
functional and it only had a few scratch in its body. Since then, it slipped off my hand many a
times but it did not refuse to function. Thanks to Nokia for making such rugged phones. It
would really be the worst thing if I had to take my phone to service centre or had to buy a new
one every time I dropped my phone.
5. Wide Product Range
Nokia has a vast and huge list of mobile phones. Nokia mobile phones are available for every
consumer groups, starting from simple and durable phones for the low income groups and
high-end phones for those who can afford to spend money. So regardless of you being a
corporate honcho or a fresher into the world of economy, Nokia has something for you. The
sheer range of products is enviable and at the same time the success mantra of Nokia’s
dominance.
6. Customer Service
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The Customer Care of Nokia which they call the Nokia Care, handles the complaints very
efficiently satisfying their customers. I had a problem with the display of my Nokia Phone. I
took it to the Nokia Care and they very quickly fixed it and gave it back. Its just the trust they
implement on the customer’s mind, is really appreciable.
Hope you remember the battery bursting incidents of Nokia mobile phones in India. The BL-5C
battery, which was the culprit in this case, was promptly replaced with no questions asked.
They also helped people with a temporary site to go and put their unique manufacturing id and
see if they needed to change the battery or not. Believe me, the call wasn’t that easy keeping
in mind the number of battery parts they had to change.
7. Reliability
Nokia really has become a brand that people can trust upon. The error rates or crash rates of
Nokia phones are very low. It will not dump you when you need this phone. And petty may this
be but still, Nokia has this trust thing going in favour of it. People can blindly trust Nokia in
Asian Countries. and not to mention, Nokia has deservingly earned this place.
8. Price
The price tags of every Nokia mobile phone is very reasonable. I mean, I can still get a GSM
mobile phone for as less as Rs. 1200 in India with all the basic features and that will last long
enough to pay me back with my dues.
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9. Experience
Nokia is the largest cellphone manufacturer in the world with about 40% of market share with
its competitors nowhere near its sales volume. They know the world of mobile phone more
than any other. They have ages of experience, hundreds of success stories and dozens of
smart handsets in current portfolio. That helps them to evolve and thereby nourish our needs.
10. Marketing Strategy
One of the main reasons behind the success of their mobile phones is their marketing strategy.
The main source of earning is the popularity of their phones in the Asian market. China is
making phone designs/softwares specific for the region. For instance, since many rural
Chinese aren’t familiar with the romanized transliteration system that most cell phones use to
input Chinese for text messages, Nokia developed two phones with software that lets them
write characters with a stylus. And for India, Nokia launched two India-specific models, which
included a flashlight, dust cover, and slip-free grip (handy during India’s scorching, sweaty
summers). They also included some softwares in several regional languages which made
Nokia a success.
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Nokia Organization
Devices is responsible for developing the best device portfolio for the marketplace, including
sourcing of components
• Services & Software reflects our strategic emphasis on developing and growing our offering
of consumer Internet services and enterprise solutions and software
• Markets is responsible for management of our supply chains, sales channels, and brand &
marketing activities
• The Corporate Development Office focuses on our strategy and future growth, and provides
operational support for integration across all the units Our infrastructure and related services
business is conducted through Nokia Siemens Networks, a separate company jointly owned by
Nokia and Siemens and consolidated by Nokia..
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. NAVTEQ’s map data will be an important part of the Nokia Maps
service that brings downloadable maps, voice-guided navigation and other contextaware web
services to people’s pockets
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CHAPTER -3
Research Methodology
 Research methodology Meaning
 Type of Research use in project
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1) Research methodology Meaning
Research methodology is a systematic way to solve the research problems,It refers to search
for knowledge , a scientific and systematic search for information.
Marketing research is the systematic design , collection, analysis and reporting of data and
finding relevant to a specific marketing design, collection, analysis and reporting of data and
finding relevant to a specific marketing situation facing the company.
2) Type of Research use in project(Exploratory Research)
Data Collection
Data collection means collections of information, facts or figures for the problem.
Primary Data Collection- Primary data is the first hand information obtained by investigator .
Primary source is one itself collects the data. Primary data can be collected by observation , by
interviews, by face to face questioning , by using questionnaire, when the needed data do not
exist or are dated , inaccurate ,incomplete, or unreliable.
Secondary Data Collection –Secondary data is collected by others already and the
researcher is using that information for his own research purpose. Secondary data can be
collected from published reports , newspaper, websites, journals, publications of national and
international organization.
Sampling Plan & unit : Walk-in customers in retail outlet.
Sample size – 150
Method of selecting Sample : Questionnaire, face to face interview
Technique- Percentage Method
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CHAPTER -4
Consumer Behavior
• Title of the Study
• Duration of the project:-
• Objective of Study:
• Scope of Study
• Limitations:
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1) TITLE OF THE STUDY
A study on consumer behavior for preference of brands in cellular phones with a reference to
nokia
Meaning of Consumer Behavior:-
Consumer behavior is the study of how people buy, what they buy, when they buy and why
they buy. It blends elements from psychology, sociology, socio psychology, anthropology and
economics. It attempts to understand the buyer decision making process, both individually and
in groups. It studies characteristics of individual consumers such as demographics,
psychographics, and behavioral variables in an attempt to understand people's wants. It also
tries to assess influences on the consumer from groups such as family, friends, reference
groups, and society in general
Stages of the Consumer Buying Process :-
Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual
purchasing is only one stage of the process. Not all decision processes lead to a purchase. All
consumer decisions do not always include all 6 stages, determined by the degree of
complexity...discussed next.
The 6 stages are:
A) Problem Recognition (awareness of need) :
Difference between the desired state and the actual condition. Deficit in assortment of
products. Hunger--Food. Hunger stimulates your need to eat. Can be stimulated by the
marketer through product information--did not know you were deficient? I.E., see a commercial
for a new pair of shoes, stimulates your recognition that you need a new pair of shoes.
B) Information search :
Internal search, memory.
External search if you need more information. Friends and relatives (word of mouth). Marketer
dominated sources; comparison shopping; public sources etc. A successful information search
leaves a buyer with possible alternatives,
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C) Evaluation of Alternatives –
need to establish criteria for evaluation, features the buyer wants or does not want.
Rank/weight alternatives or resume search. May decide that you want to eat something spicy,
Indian gets highest rank etc. If not satisfied with your choice then return to the search phase.
Can you think of another restaurant? Look in the yellow pages etc. Information from different
sources may be treated differently. Marketers try to influence by "framing" alternatives.
D) Purchase decision –
Choose buying alternative, includes product, package, store, method of purchase etc
E) Purchase –
May differ from decision, time lapse between 4 & 5, product availability.
F) Post-Purchase Evaluation –
outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the right
decision. This can be reduced by warranties, after sales communication etc. After eating an
Indian meal, may think that really you wanted a Chinese meal instead
2) DURATION OF THE PROJECT:-
The present study was undertaken during the month of April 2011
3) OBJECTIVE OF STUDY:-
A) Primary Objective
• To understand the problem thoroughly.
• Rephrasing the same into meaningful terms from an analytical point of view.
B) Secondary Objective
• To fill the gap in knowledge.
• To resolve contradictory finding.
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• To test the theoretical prediction
4) SCOPE OF STUDY
• Nokia is already well establish in the market, but there are lots of others things that
has to be understand as a Sales Assistant.
• First the main thing I have learned how the supply chain process affect sales.
• The intensity of competition in the mobile communications industry and our ability to
maintain or improve our market position or respond successfully to changes in the
competitive landscape.
• Our ability to manage efficiently our logistics, as well as to ensure the quality, safety, security
and timely delivery of our products, services and solutions.
• I have worked as a Sales Assistant ,during the project I come to know that customers
are too price conscious they want a quality product in less amount.
• I have learned about consumer behavior how they respond in practical life. Consumers
always looks for better value proposition, they always compare the benefits of one company
to others.
5) LIMITATIONS:-
Limitations of the projects are to know the behavior of the customers, market segmentation,
product ,and pricing policy and the attitude, feeling and reaction of the consumer towards the
products.
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CHAPTER -5
Analysis and interpretation:
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Q. 1. What is your age?
Age No of respondents (150) % of respondents
Below 20 39 26%
20-40 60 40%
40-60 33 22%
Above 60 18 12%
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26%
40%
22%
12%
Age
below20
20-40
40-60
above 60
Q.2. Do you have own mobile?
Do u have own mobile No. of respondent (150) % of respondents
Yes 126 84
no 24 16
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84%
16%
people
yes
no
Q.3. Please mention the factor that had influenced you have cell phone.?
Factors No. of respondent (150) % of respondents
Reference 21 14%
Occupational 51 34%
Speedy communication 33 22%
Cost effectiveness 30 20%
other factor 15 10%
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14%
34%
22%
20%
10%
Influencing factor
Reference
Occupational
Speedy communication
Cost effectiveness
other factor
Q.4. Which Cell phone Company You Prefer?
Company name No. of respondent (150) % of respondents
Nokia 60 40%
Samsung 15 10%
Sony ericsson 9 6%
Motorola 24 16%
LG 12 8%
Others 30 20%
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40%
10%6%
16%
8%
20%
CompanyName
nokia
samsung
sony ericsson
motorola
LG
others
Q.5. Any Specific Reason for Buying Nokia Mobile?
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40
%
10%
30%
10%
10%
Reason
bluetooth
fm
mp3/mp4
memory
camera
Rasons No of respondents (150) % of respondents
Bluetooth 60 40%
Fm 15 10%
Mp3/mp4 45 30%
Memory 15 10%
Camera 15 10%
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Q.6. What Features you are looking for?
Features No of respondents (150) % of respondents
BATTERY BACK-UP 45 30%
EDGE/GPRS 30 20%
TRI BAND 21 14%
NAVIGATOR 24 16%
ANY OTHERS 30 20%
30%
20%
14%
16%
20%
Features
battery back-up
edge/gprs
tri band
navigator
any others
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Q.7. Budget for Purchasing Mobile?
Budget No of respondents (150) %of respondents
1000-3000 60 40%
3000-6000 36 24%
6000-10000 30 20%
10000-14000 15 10%
More than 14000 9 6%
40%
24%
20%
10%
6%
Price Budget
1000-3000
3000-6000
6000-10000
10000-14000
more than 140000
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Q.8. Which Advertisement Media Puts More Impact On Your Buying
Decision?
Media name No of respondents (150) % of respondents
TV. 60 40%
Magazines 30 20%
Newspaper 24 16%
Internet 21 14%
other 15 10%
40%
20%
16%
14%
10%
Media Name
T.V.
magazines
newspapers
internet
others
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Q.9. Degree of Appearance and Style of Mobile for You?
Appearance & style No of respondents (150) % of respondents
Important 87 58%
Natural 33 22%
Not important 30 20%
58%22%
20%
Appearance & Style
important
neutral
not important
Q.10. Degree of Reliability of Mobile for You?
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Reliability No of respondents (150) % of respondents
Important 99 66%
Natural 33 22%
Not important 18 12%
66%
22%
12%
Reliability
important
neutral
not important
CHAPTER -6
SWOT ANALYSIS:
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 Strength
 Weakness
 Opportunities
 Threats
Nokia was the first to acknowledge fashion as an important element in mobile phone
purchases, and it is solidly behind the push for Multimedia Messaging Service, which could
become the first data service beyond Short Message Service to be deemed successful. There
is a significant gap between Nokia and startups, which makes it difficult to compete against
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Nokia. Nokia's tie to operators has kept its products solidly in consumers' view. Yet, Nokia
faces some serious challenges.
The mobile landscape has fundamentally shifted, and some of Nokia's strengths and core
beliefs may no longer be valid. In the following research, we discuss Nokia's strengths and
challenges and provide advice for enterprises partnering with, purchasing from and working
with Nokia.
Strength
・ Nokia has long established identity (1898); lots of available resources (financial, etc.)
・ Nokia has high penetration rate in Europe, especially in Northern countries (close to 100%)
・ Nokia Consumer Electronics has access to innovative technology through group companies
Weakness
・ Lack of centralized marketing strategy and champion; completely different positioning
strategy depending on the country
・ Too many brand names (100) in one market; problem trying to find balance
・ Corporate culture is highly technical and operational: So what if the customer does not
understand! Lack of customer service priority
Opportunities
・ Potential for brand name sales in Europe and Asia-pacific
・ Growing replacement and supplement television market
・ NCE has opportunity of using its technology to enhance user-friendliness
Threats
・ The market for color TVs and VCRs is a mature/saturated market; consumers are buying
less often and only to replace older units (same trend for all countries across Europe)
・ Can’t differentiate based on technical advancement or price; competitors too fast to match
・ Impact of recent purchases (for example, Sony) and mergers is unknown; competitors are
getting larger and integrating supply chains Competitive advantage is gained through brand
name (not technology or price)
・ According to brand awareness studies, Nokia is recognized most of the time (in Germany,
France, Italy, UK and Norway), but not necessarily affiliated with consumer electronics such as
TVs and VCRs
・ Consumers buy televisions based on emotion .
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・ Consumers perceive value in features that are marketed as user-friendly. In the past Nokia
has relied heavily on its ability to innovate—it is a strong technology company. Internal
Management Challenge faces at least two challenges within NCE that he must
address immediately:
1. Lack of a marketing champion in corporate headquarters
2. A continued reliance on technology as the main marketing approach. For example, the
remote control TV mouse is centered on technology and may frighten away potential
customers who may perceive it as too technical.
CHAPTER -7
Conclusion:
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The way corporations interact with their customers has changed drastically in the past few
years. The era of mass marketing and mass communications is over. Customers have been
increasingly taking up widespread social media tools on the web and turned into the message
creators, driving the conversations around the products and services they use. Therefore,
corporations must join customers in these conversations. We need to be able to speak openly,
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honestly, and in a personal tone. We need to listen carefully without being defensive. We need
to respect those who speak to us and about us because of this only we come to know where
we are lacking , what we have to do to beat our competitors We need to understand that we no
longer control the conversation but are a part of it. For a few years now, Nokia have been
participating in the conversation with customers through various efforts, ranging from blogs by
people who work on S60, outreach to Nseries aficionados, support discussion boards, and a
site to download and discuss early state software from Nokia. This helps Nokia to know why
the market share of the company in India slip down and according to this only we can indentify
the problem.
Nokia’s most recent addition has been Nokia Conversations, a site dedicated to the stories in
and around the Nokia neighborhood. It’s not about the tech and specs, but about the people,
products, and ideas behind the news. Nokia Conversations highlights the best and most
important conversations about and around Nokia, whether it comes from inside Nokia or
outside. Our articles also add a mix of various elements, such as videos and photos. This is
the way Nokia trying to put all the information on net , so that consumers can refers to those
sites before purchasing the products.
CHAPTER -8
Recommendation and Suggestions:
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 CUSTOMERS RELATED:
 RETAILERS RELATED
CUSTOMERS RELATED:
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NOKIA products are used all over in India by the people of the every region. But now days the
people want more values for their money worth, it means a better designed product with quality
and they are most willing to buy the product frequently.
The positive suggestions are as follows:-
• As the others companies like Samsung. Motorola and others offers products in good packing,
so the product packaging must be made attractive so that the young generation willing to
accept it.
• The product line must be extended so that all the generation levels must be able to
use it as per their taste.
• Customers wants some fancy type or good looking mobiles.
• The main thing is the availability of the products at retail outlets.
• The product packaging must be changed time to time.
• The media marketing must be done highly and a good relationships should be made with the
customers by giving frequents offers and arranging various competitions.
RETAILERS RELATED:
• There must be regular supply of the products at least 2-3 days a week.
• The new outlets must be grabbed through providing some fruitful offers.
• The some untouched Parts of the area must be covered.
• Some credit facilities must be provided to the retailers.
• There should be discount given to the retailers on huge bulk purchasing to motivate him.
• The advertisement must be done through Hoardings, Posters, Banners, Radio Mirchi, FM
radio channels .
• There should be a meeting every month for to solve distributors and retailers problems.
Chapter 9
Bibliography:
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1) Web Resources:
· www.nokia.com
· www.google.com
· www.managementparadise.com
· www.motorola.com
· www.yahoo.com
www.digitalnuts.com
·
QUESTIONNAIRE
1.name:…………………………………….. Date……………………………
Contact no………………………
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2.sex
Male ( )
Female ( )
3.what is your age?
Below 20 ( )
20-40 ( )
40-60 ( )
Above 60 ( )
4.Occupation?
Student ( )
Service ( )
Self employed ( )
Others ( )
5. Do you have Mobile?
Yes ( )
No ( )
6.Please mention the factor that had influenced you have cell phone?
Reference ( )
Occupational ( )
Speedy communication ( )
Cost effectiveness ( )
7.Which company you prefer?
Nokia ( )
Samsung ( )
Sony ericsson ( )
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Motorola ( )
L.G ( )
Others ( )
8. Any specific reason for Buying Nokia Mobile?
Bluetooth ( )
F M ( )
MP3/MP4 ( )
Exapandable memory ( )
Camera ( )
9.What features you are looking for ?
GPRS ( )
EDGE ( )
Tri band/ Quad band ( )
Navigator ( )
Any Others ( )
10. Budget for purchasing a Mobile?
1000-3000 ( )
3000-6000 ( )
6000-10000 ( )
10000-14000 ( )
More than 14000 ( )
11. Which advertisement media puts more impact on your buying decision?
T.V. ( )
Magazines ( )
Newspapers ( )
Internet ( )
Others ( )
12.Degree of appearance and style of mobile for you?
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Important ( )
Neutral ( )
Not important ( )
13.Degree of reliability of mobile for you?
Important ( )
Neutral ( )
Not important ( )
Place: Signature
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