I QAMRUZZAMA SIDDIQUI student of MBA hereby declared that the Project report titled “Brand Positioning of Nokia at Delhi/NCR” is completed and submitted is my original work.
The imperial finding in this report are based on the data collected by me. I have not submitted this Project report to U.P. Technical University, Lucknow or any other university for the purpose of compliance of any requirement of any examination or degree.
|DAte |QAMRUZZAMA SIDDIQUI | | |MBA (IV SEm.) |
The research report will be incomplete without acknowledge giving my sincere, gratitude to all persons who have helped me in the preparation of this dissertation.
First of all, I thank “GOD ALIMIGHTY” for the blessings showered on me throughout this research project work, which has helped me in the successful completion of the training.
I take this opportunity to extend my sincere gratitude and profound obligation towards my guidance Mr. Anurag Sharma (Faculty of MBA Department) for giving me valuable suggestions & his inestimable help rendered to me throughout the research project and all other faculty members for without their encouragement and continuing support, this research project would not have been possible.
MBA (IV SEm.)
Research project is an integral part of management courses. Research project experience refers to knowledge and skills acquired by a student by participation in activities performed by professional. It is distinct from an education in which theoretical knowledge is acquired.
The ability to develop solutions to practical through application of theoretical knowledge is acquired by management students in the course of their research project . It also helps the students to develop professional competence and related skills as also to imbibe certain ethical values and norms expected of professionals.
The IT industry has entered to booming phase and cell phones are available everywhere like water. To monopolize market powerful projects are undertaken. This project is an endeavor in that direction. EXECUTIVE SUMMARY
The wide ambit of the project, which is the internal part of the MBA course, guaranteed me extensive exposure to various concept of GSM,CDMA ,Flip and other camera and video technologies among other things. Apart from these technical and non-technical aspect, I learnt the all important skills of team work ,official communication, work ethic and responsibility.
During the course of training we were expected to use and apply our academic knowledge to gain a valuable insight with all its environmental operational complexities. The said training offered a valuable opportunity to us to meet the academic knowledge and transform it into practical one.
I undertook the said training at Nokia. During the training I did a survey aims at studying and analysis the current market scenario of mobiles, requirements of the customers about the features and its pros and cons, future needs of various mobile companies.
I had the unique privilege to assume an assortment of role including problem identification, theoretical framework, research design, experimental design and setup, data collection, analysis and interpretation, observing findings and providing suggestions and recommendations etc. and also gained valuable experience of working in a formal industrial setup which would go a long way in building a sound career in marketing field in future. Also its is my heartful gratitude to Nokia for providing me their world class facilities and delightful work environment and ambience.
In the report I have put my best efforts to compile the data to the highest level of accuracy and give my views to best of my judgment.
NATURE OF THE STUDY
The development of IT market it is necessary to touch all areas and should be available in rural areas as well as in urban areas, now the companies are focusing on brand perception and the strategies for that are made and market research for the promotion is needed.
To grab the rural market share, all the players are doing continues innovation on every front of marketing mix ranging form product, place,
prince, promotions and packaging in various colors, sizes, flavors & packages.
In the process of marketing distributors, retailers & consumers all are considered as major elements, on the motivation of these channels have gained a lot of importance.The contents of this report have been carefully planned. All the analysis is based on primary data. The report has been written in lucid language and necessary data and chart are used for easy understanding.
I am hopeful that the reader will find this project useful in preparing strategy for rural areas.
Nokia remains the world’s number one manufacturer of mobile phones, although its position is under threat from other manufacturers, particularly Sony Ericsson and Samsung. Nokia have the advantage of outstanding loyalty from its traditional customers, together with a perceived reputation for reliability and user-friendliness. One of Nokia’s problems is its difficulty in competing against electronics giants like Sony and Samsung with their unparalleled expertise in technologies like digital photography and LCD displays. As these technologies become more and more important in modern phones, the gap between Nokia and its rivals becomes more apparent. Nokia’s response is to focus more on innovative design and the concept of a “fashion” phone. However, at the top end of the market, Nokia has a dominant position in the smartphone market with its Series 60 platform.
Click on any of the Nokia phones below to read a full review (plus independent reviews by consumers), and to find the best place to buy in the UK. Nokia N-Gage – phone & games console in one!
Nokia 1100 – entry-level phone, designed with simplicity and reliability in mind Nokia 2100 – practical and fun phone
Nokia 2300 – very basic phone
Nokia 2600 – entry-level colour phone
Nokia 2650 – odd-looking clamshell phone with basic features Nokia 3100 – colour phone with glow-in-the-dark cover
Nokia 3200 – entry-level camera phone with custom covers
Nokia 3220 – fun camera phone aimed at teenagers
Nokia 3230 – review coming soon!
Nokia 3300 – music phone with MP3 player, stereo FM radio, and a digital recorder Nokia 3310 – very popular pay as you go phone
Nokia 3410 – replacement for the Nokia 3330, with lots of new features Nokia 3510 – similar to the 3410, with polyphonic ringtones, but lacking Java b Nokia 3510i – best of the 3410/3510 series
Nokia 3650 – multimedia phone with digital camera and video camera Nokia 3660 – enhanced version of the 3650 with 65k colour screen Nokia 5100 – hard-wearing phone with colour display & built-in radio Nokia 5140 – durable phone designed for sport and outdoor use Nokia 5210 – hard wearing, versatile phone
Nokia 6100 – advanced feature-rich lightweight phone
Nokia 6170 – excellent value clamshell camera phone with metal case and a good range of features Nokia 6220 – business class phone that also includes features like an integrated digital camera, video recorder and FM radio Nokia 6230 – improved version of the 6220 with 65k colour display Nokia 6230i – review coming soon!
Nokia 6260 – advanced clamshell-design smartphone
Nokia 6310 – replacement for the classic 6210
Nokia 6310i – adds triband and Java™ capability to the Nokia 6310 Nokia 6510 – advanced phone, with similar features to the 8310 Nokia 6600 – smart phone with 65k colour display, camera, camcorder and Symbian operating system Nokia 6610 – all the features of the 7210 in a more conventional design Nokia 6610i – adding a digital camera to the 6610
Nokia 6630 – first 3G smartphone
Nokia 6670 – multimedia smartphone with megapixel camera
Nokia 6800 – brand new phone with full QWERTY keyboard
Nokia 6810 – full QWERTY keyboard, Bluetooth wireless connectivity and high
speed data Nokia 6820 – messaging device with QWERTY keyboard and multimedia features Nokia 7200 – Nokia’s first clamshell phone
Nokia 7210 – hot new phone with colour display, triband, Java™ and polyphonic ringtones Nokia 7250 – similar to the 7210, but with an integrated digital camera Nokia 7250i – enhanced version of the Nokia 7250
Nokia 7260 – Art-Deco inspired camera phone
Nokia 7270 – fashion phone with MP3 ringtones and viceo camera Nokia 7280 – review coming soon!
Nokia 7600 – 3G phone
Nokia 7610 – multimedia smartphone with megapixel camera
Nokia 7650 – amazing multimedia phone with colour display
Nokia 8310 – most popular Nokia phone, widely regarded as the best currently available Nokia 8910i – exclusive phone with stunning looks
Nokia 9210 – heavy-duty mobile communications device
Nokia 9210i – updated Communicator with more memory and improved internet support Nokia 9300 – review coming soon!
Nokia 9500 – latest Communicator with more memory, improved display, and WiFi support.
Objective of study
Objective of study
The purpose of research is to discover answers to questions through the application of the scientific procedures the main aim is to find out the truth which is hidden and which is not been discovered yet.
Our main objective is to find out the problems which are the main barriers in the promotion of NOKIA in NCR market. Our others objective are: • To find out the sources of promotion in NCR/Delhi market. • To find out perception of NCR/Delhi people about NOKIA brand • To locate the potential NCR/Delhi market for NOKIA
The research program is designed for the promotion of NOKIA in NCR/Delhi area and overcome the main barriers for brand in market of NCR/Delhi , the work which is being done for this is described as fallows . To find out the areas where perception is positive and where is negative ; initially we see that how many areas are positive and how many are negative responded . Problem faced in the market because they are in the in the direct contact of consumer and know their liking and disliking in a better way, Problems and their solution in NCR/Delhi market ; ultimately we have to increase the sale of Nokia in this areas for this it is mandatory to remove the problems like consumer awareness . These problems could be find out by doing survey of that particular area .
Duration of the Study
The four phases into which the project was divided were
1. Retail Tracking2 Weeks
2. Each Distributor survey3 Weeks
3. Each SD survey1 Week
4. Analysis of finding and observations2 Week
scope of study
We don’t think that the signals in the last two years mean that Nokia lost the leading role in the mobile market. Probably there is another truth behind it: Nokia, as a lot of other brands, is still trying to digest the fall down of mobile forecast. The problem is always the same people talk enough using the mobile and all the sector needs is something that has real value for customers (business and consumer) and for corporate and that speeds up market growth. If you see the numbers, you will see that just Samsung grew in last two years.
Motorola, Ericsson, Sony Ericsson, Panasonic and others are still floating in the market. I think that without an answer to the main question (what will make the value’s market speed up?), leaders like Nokia will have some problems to increase the leadership.
In this report we have analyze that Nokia is having a very great position in present scenario and in the coming years as well and other companies have to do very well to remove the Nokia brand from the customers mindset. Limitations of the research
This research was subjected to following limitation:
1. The survey cannot be termed 100% accurate due to lack of time and time and cost only 500 users and 50 retailers and whole sellers had been studied. Thus the scope of study is limited in terms of no. of respondent.
2. The lack of candidness of respondent towards answering the questionnaire in few cases may have reduced the accuracy of survey to some extent.
3. Despite the unbiased opinion and efforts the possibility of technical exceptions cannot be ruled out.
4. The statistical analysis with various automated tools might have computational errors.
Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on specific topic. In fact research is an art of scientific topic. Some people consider research as a movement, a movement from the known to unknown. Research is an academic activity and as such the term should be used in a technical sense. Research comprises defining and redefining problems, formulating hypothesis or suggested solutions ; collecting ,organizing and evaluating data making deduction and reaching conclusion ; and at last care fully testing the conclusion to determine whether they fit the formulating hypothesis . social science define the research as the manipulation of things , concepts or symbol s for purpose of generalization to extend ,correct or verify the knowledge aids in construction of theory or in the practice of an art .research is thus an original contribution to t existing stock of know ledge making for its advancement . The systematic approach concerning generalization and the formulation of the theory is also research.
Defining the Problem:
Quite often we all here that problem half solved. This statement signifies the need research problem properly is a perquisite for any study and is a step of highest important. In fact formulation of problem is mire essential than its solution. In Brand Positioning by NOKIA our main problem is how to create the brand image of NOKIA in NCR/Delhi areas and strengths the roots of NOKIA Company in the industry. A part from this we have it cores the national capital region in a peoples way in terms of approach.
Objective of research
Our main objective is to find out the problems, which are the main barriers in the promotion of NOKIA in NCR/Delhi market. Our others objective are: • To find out the sources of promotion for NCR/Delhi market. • To find out the Brand perception on people.
• To locate the potential market for NOKIA.
A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to research purpose with economy in procedure. Here we have used descriptive research design. Since the aim is to obtain complete and accurate information in the said studies.
The process had to be started from the grass root level and it was very important to understand the market for this IT product, which is very fast in production, distribution and consumption.
The entire process was more of a Descriptive Research type and incorporated a formal study of the specific problems faced by most IT companies an exploring the opportunities in the untapped market. The survey was conducted on the basis of NOKIA’s product preference and evaluation of sales forecast in the new and underdeveloped market including the evaluation of the advertising and promotional measures. The data collected had to be systematically arranged, analyzed and reported in a form congenial to take on the spot decisions
The entire set of various segments in the population comprises all the retail store and outlets each retail store in the sampling frame constitute the sampling unit in brief we can say overall sampling is based on 100 people.
A sample design is a definite plan for obtaining a sample from a given population. If it refers to the technique or the procedure the researcher would adopt in selecting items for the sample. Sample design may as well lay down the no of items to be included in the sample. The researcher must prepare the sample design which should be reliable for research study.
The universe is finite universe where number of items is finite in the given problem the universe is infinite and whole NCR/Delhi area of NCR/Delhi.
Decision is taken after concerning the sampling unit, sampling unit may be a geographical one such as state district village etc or a construction unit such as house flat or it may be a social unit a club or school. Here selected sampling unit for study is outlet of NOKIA.
It contains all the items of universe in case of infinite universe it is also known as sampling frame.
Size of sample
It refers to the no. of items selected from the universe to constitute a sample. The size of sample is 100 people of NCR/Delhi.
Collections of primary data
The task of data collection begins after a research problem has been defined and research plan chalked out. The primary data are those which are collected a fresh and for the first time and thus happen to be original in character.
We collect the primary data during the course of doing experiments. In given problem the descriptive research is used so we can obtain primary data either through observation or through direct communication with respondent or through personal interviews.
For collecting primary data we used observation method, interview method and interview through questionnaire.
The entire project was divided into five phases and each phase had its individual significance and supplemented each other.
The four phases into which the project was divided were
1. Retail Tracking
2. Each Distributor survey
3. Each SD survey
4. Analysis of finding and observations
• BUSINESS STANDARD
• ECONOMIC TIMES
• BUSINESS & ECONOMY
• BUSINESS TODAY
INTRODUCTION OF NOKIA GROUP
Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations. Nokia is a broadly held company with listings on four major exchanges.
The world’s first international cellular mobile telephone network NMT was opened in Scandinavia in 1981 with Nokia introducing the first car phones for the network Or, that the world’s first NMT hand portable, the Nokia Cityman, was launched in 1987.
Nokia introduced the world’s first 30-channel PCM (Pulse Code Modulation) transmission equipment conforming to the standards of CCITT (Consultative Committee on International Telegraphy and Telephony).
The world’s first international cellular mobile telephone network NMT opened in Scandinavia with Nokia introducing the first car phones for the network.
Europe’s first digital telephone exchange, the DX 200.
The world’s first portable NMT car telephone, the Nokia Talkman.
The world’s first NMT handportable, the Nokia Cityman.
The world’s first ISDN (Integrated Services Digital Network) exchange conforming to CCITT standards, manufactured by Nokia, was brought into use in Finland.
The world’s first Actionist trucking mobile radio network was brought into operation. The world’s first fast-poll 14,400 bps (bits-per-second) modem.
The world’s first Radio Data System (RDS) and Mobile Search (MBS) text pagers.
The first manufacturer to have a large-scale production-ready GSM phone.The world’s first genuine GSM call made using Radiolinja’s network, supplied by Nokia.
The Nokia 1011, the first digital handportable phone for GSM networks.The Nokia 100 series, the first family of handportale phones for all analog networks.
The first Personal Communications Network based on GSM 1800 standard delivered by Nokia.The world’s first SMSC (Short Message Service Centre) taken into commercial use in Europolitan’s Nokia network.The world’s first credit card size cellular modem card developed with AT&T Paradyne.
The first offical GSM call in the People4s Republic of China made on a Nokia phone on Beijing TA4s network, supplied by Nokia.The first European manufacturer to start selling mobile phones in Japan.The world’s first Data Communications Server (DaCS), providing fully digital, fast access to corporate LANs.The world’s first digital cellular data products, including the Nokia PC Card and the Nokia Cellular Data Card.Inmarsat made the world’s first satellite telephone call with Nokia’s pocket-size GSM handset.The first manufacturer to launch series of handportable phones for all digital standards (GSM, TDMA, PCN, Japan Digital). The Nokia 2100 was the world’s smallest and lightest family of digital products.
The world’s first integrated wireless payphone.The new joint venture, Beijing Nokia Mobile Telecommunications Ltd., was established: the first factory to manufacture large scale GSM systems and equipment in China.
The first digital multimedia terminal in the world, the Nokia Mediamaster.The Nokia 8100 product family, the first with an innovative, ergonomically comfortable design. Chinese character short messaging service and Chinese user interface were launched in the Nokia 8110 mobile phone. Nokia was the first manufacturer to offer both simplified and traditional character sets in the same phone.
The Nokia 2160, the first available dual mode AMPS/TDMA phone.
The Nokia 9000 Communicator, the world’s first all-in-one mobile communications tool introduced at the CeBIT exhibition.
The world’s first four TETRA networks were delivered by Nokia. A new handset for the NMT 450 standard, the Nokia 540, which is the world’s first NMT phone with Navi Key. The next generation GSM product family, the Nokia 6100 series. New standards for operating times and a set of innovative industry-first features, including audio quality and an entirely new Profile function which enables users to adjust the phone settings according to various situations. Next generation half-rate hand portable for the digital PDC standard in Japan. With this introduction, Nokia is the first company to demonstrate an entirely new, innovative feature for PDC handsets, which enables calling by voice activation. The world’s first GSM dual band base station, the Nokia GSM 900/1800 Dual Band BTS. This provides the possibility to integrate GSM 1800 transceivers (TRXs) into an existing GSM 900 Base station(BTS). The first call on the Helsinki City Energy Company’s digital TETRA network was made. The network, called officially Helen Net by Helsinki City Energy Company, is the world’s first network taken into operative use, according to the TETRA standard.’
The Nokia 3810, the first mobile phone specially designed for Asian consumers.
Nokia delivered world’s first ETSI standard ADSL and IP network to Telecom New Zealand, thereby marking the start of commercial delivery of broadband data services using the ADSL network.
The Nokia 9110 Communicator, the first hand-held mobile device supporting wireless imagining. The Nokia 5100 series, the first mobile phones with user-changeable covers. The world’s smallest NMT 450 phone, the Nokia 650, sets a new benchmark for NMT 450 technology. As a special additional feature and first in the market, the Nokia 650 has a built-in FM radio.
Nokia introduced the world’s first high-speed data terminal for wireless networks: the Nokia Card Phone 2.0 brings about a four-fold increase in data transmission speed. Nokia completed the world’s first WCDMA (Wideband Code Division Multiple Access) phone call through a public switched telephone network.
Nokia announced the world’s first media phone that is based on the Wireless Application Protocol (WAP) in Mobile Media Mode. The Nokia 7110 dual band GSM 900/1800 media phone has been designed to enable easy access to Internet content from a mobile phone.
GROWTH AND DEVELOPMENT
Nokia introduced the world’s first IPv6-enabled end-to-end GPRS network. Operators can use Nokia GPRS networks to provide their customers with new types of services that bring benefits offered by IPv6, such as global reachability and end-to-end security.
Nokia introduced the world’s first TETRA WAP browser which brings powerful WAP applications to TETRA professional mobile radio networks. WAP over TETRA provides a new method of data communication for professionals. It enables real-time direct access to various customer and technical databases in only a few seconds.
Nokia has combined the versatility of WAP with the power of TETRA to introduce the world’s first WAP services for digital professional mobile radio users. The new WAP services have been developed in co-operation with Finnish companies Helsinki Energy and Tekla Corporation. Nokia and Sonera have completed tests that bring roaming capabilities for IP traffic between GPRS networks for the first time in the world. Nokia and Scandinavian Airlines Systems announced a partnership to bring Nokia mobile phones to the selection of goods sold on all international SAS flights. This is the first time mobile phones will be sold on airplanes.
Nokia launched the Nokia LiveSite platform, the world’s first WCDMA implementation which is compatible with the latest 3GPP standards for third generation networks. Nokia successfully carried out the world’s first WAP service over a trial WCDMA system. The tests were completed in Beijing, China, where Chinese language WAP services were transmitted via the WCDMA system and radio network. Nokia, a founding member of the SyncML initiative, announced that it had successfully demonstrated the world’s first wireless Internet synchronization using the SyncL protocol. Nokia is the first vendor in the world to bring full mobile IP packet data functionalities into TETRA networks. Nokia TETRA IP significantly enhances access to WAP services and more efficient WAP service development is
possible with new TETRA IP functionalities.
Nokia announces world’s first GPRS roaming between M1 Singapore and Cable and Wireless HKT Mobile Services, Hong Kong. This is the first announcement of its kind in the world for GPRS inter-operator roaming.
Nokia introduces the industry first multimedia messaging solution, the Nokia Artuse (TM) MMS (Multimedia Messaging Service) Center, a high-capacity platform for the next wave of mobile messaging. The solution enables operators to introduce multimedia messaging services combining new rich content, such as audio and video clips, photographs and images with the traditional text messaging.
Nokia and the Finnish operator Sonera conducted the world’s first Wireless LAN roaming based on GSM technology. Sonera is making use of Nokia technology that allows mobile operators to offer broadband wireless Internet services in Wireless LAN access zones.
Nokia succesfully made the first 3G WCDMA packet data calls between its commercial network infrastructure and terminals in its laboratories in Finland. The Nokia 3G WCDMA network and terminal used were based on the commercial standard level known as 3GPP (3rd Generation Partnership Research research project) Release 99 June 2001 version. This was the first time that packet data has been transmitted end-to-end on a commercial system based on the above mentioned commercial standard.
Nokia announced that the world’s first cdma2000® 1xEV-DV high-speed packet data phone call was completed at Nokia’s CDMA product creation center in San Diego. The call, achieving a peak data rate of 3.09 Mbps, was made between a test set based on a commercially available Nokia 2285 handset upgraded with a Nokia 1xEV-DV chipset and a Racal Instruments, Wireless Solutions Group, 1xEV-DV basestation emulator. This chipset is the world’s first to support complete 1xEV-DV Release C functionality.
Using Nokia’s CDMA Dual-Stack handset, Nokia demonstrated the industry’s first Mobile IPv6 call at the 3G World Congress Convention and Exhibition in November. The demonstration highlighted real-time streaming video with seamless handoff between two CDMA access networks using Mobile IPv6. Nokia announced the Nokia NFC (Near Field Communication) shell, the latest step in the development of innovative products for mobile communications, in November. With the Nokia NFC shell on their phone, consumers will be able to easily access a variety of services and conveniently exchange information with a simple touch gesture utilizing NFC technology. In October, Nokia and TeliaSonera Finland successfully conducted the world’s first EDGE-WCDMA 3G packet data handover in a commercial network.
Achieving a first for the Asia-Pacific region, Nokia, MediaCorp Technologies, M1 and the Media Development Authority of Singapore jointly showcased a live end-to-end mobile phone TV broadcast over a DVB-H (Digital Video Broadcast – Handheld) network at the Nokia Connection event in Singapore.
Nokia and Texas Instruments Incorporated introduced the first pre-integrated and validated Series 60 Reference Implementation based on TI’s OMAP(TM) processor-powered reference design in February. The Reference Implementation is available immediately to Series 60 licensees.
The Nokia 6630 imaging smartphone has as the first device in the world achieved global GCF 3G WDCMA Certification. The certification was achieved based on the requirements defined by Global Certification Forum (GCF), an independent industry body which provides network compliancy requirements and testing for GSM/WCDMA mobile devices. SBS Finland’s Kiss FM became the first radio station in the world to begin Visual Radio broadcasts. This unique new concept developed by Nokia offers the listeners the possibility to give feedback and to participate in programs easier than ever before.
Nokia introduced a new product for secure mobile contactless payments and ticketing. The world’s first Near Field Communications (NFC) product for payment and ticketing will be an enhanced version of the already announced Nokia NFC shell for Nokia 3220 phone.
o N81 8GB
o N95 8GB
o 7900 Prism
o 7500 Prism
o 8600 Luna
o 6500 slide
o 6500 classic
o 3500 classic
Meaning of Marketing
Marketing is societal processes by which individuals and group obtain what they need and want through creating, offering and freely exchange the products and services of valve with others. For a managerial definition, marketing has often been described as “the art of selling products’’, but people are surprised when they hear that the most important part of the marketing is not selling! Selling is only tip of marketing iceberg. The American marketing association offers the following definition : marketing is the process of planning and executing the conception ,pricing , promotion and distribution of ideas , goods and services to create exchanges that satisfy the individual and organizational goals. Marketing Research System
Marketing managers often commission formal marketing studies of specific problems and opportunities. They may request a marketing survey, a product performance test , a sales forecast by reason, or an advertising evaluation. It is the job of marketing researcher to produce customer insight into problem. we define the marketing research as the systematic design ,collection , analysis , and report of data and findings relevant to specific marketing situation facing the company.
People started realizing that mobile phones are becoming very powerful and are likely to become a dominant device for CCC ( communication, computing and content). Computing people got into action and now you have started seeing increasing number of computer like phones appear in market. These devices even have full keyboards for interfacing with Internet and for e-mail. What is equally interesting is that these devices are suppose to be used for browsing Internet, in addition to regularly getting your e-mail, and getting even documents on these devices. I have nothing against people using inappropriate devices in some situation – like using a knife as a screwdriver – so we should not be surprised about people trying to use phones for accessing their e-mail. In general, however, a phone is a poor substitute for a lap top computer. But more and more phones are taking exactly the form of a laptop. Just try putting a modern phone, particularly the clam models, next to a laptop and you will see that the phone is nothing but a smaller version of a laptop.
Branding is a major issue in product strategy. As Russell Hanlin, the CEO of Sunkist Grower, observed : ”An orange is an orange………is an orange. Unless……that orange happens to be Sunkist, a name80% of consumers know and trust. ”well-known brands command a price premium. Japanese companies such as Sony and Toyota have built a huge brand loyal-market. At the same time, developing a branded product requires a great deal of long-term investment, especially for advertising, promotion, and packaging.
Companies need to research the position their brand occupies in the customer’s minds. According to Kevin Keller, “ What distinguishes a brand from its unbranded commodity counterparts is the consumer perceptions and feelings about the product’s attributes and how they perform. Ultimately, a brand resides in the mind of the Consumers”.
Consumer learning occurs in mature markets as well. Product differentiation is one such example. The classic view of product differentiation is that it is about discovery: finding a relevant, widely valued but unmet dimension. This approach implicitly assumes that buyers value some aspects of the product that have simply been ignored. Once all valuable aspects have been discovered, further
Differentiation is Impossible.
A consumer learning perspective suggests, in contrast, that differentiation can be successful even if no undiscovered dimension of preference exists. Differentiation is possible so long as a new dimension exists that buyers can learn. The differentiating attribute need not be relevant. The strategy of “meaningless differentiation” is widespread. For example, Alberto Culver differentiated its Natural Silk shampoo by adding silk and advertised that it “puts silk in a bottle”. Culver, however, later said that silk does nothing for hair. Throughout the evolution of the marketing concept, the basic notion that Competitive advantage can be created by giving customers what they want has remained unchanged. All that has changed is the way in which customers are satisfied. Today’s organizations are gaining a deeper understanding of customers.
They are learning about the goals they hope to achieve in their lives and then creating powerful links between these goals and their brands.
Access to customers
When a pioneering product appears in the market, it simply steals the show and it captures more attention of the customers and distributors than any other late entrant. Moreover, advertisement of the product that takes the lead is not cluttered by the messages from rivals. Even in the later stag, the followers must continue to spend more on advertising to achieve the same effect as pioneers. The first entrants can also set standards for distribution, occupy the best locations or select the best distributors, which can give it easier access to customers. For instance, Starbucks, as the pioneer, was able to open coffee parlors in more prominent locations than its rivals. Switching costs
Switching costs arises when investments are required that would be lost while switching over to another product. To site an example, if one has developed skill in the traditional QWERTY keyboard, switching to a more efficient Dvorak keyboard would require relearning how to type, an investment that in many cases would exceed the expected efficiency gains.
Pioneering products have the first chance to become the trusted brand. And the late entrants would need to convince the buyers to bear the costs and risk of switching to an untried brand of unknown quality.
The value to buyers of many high-technology products depends not only on their attributes but also on the total number of users. The value of videophone, for instance, depends on the number of people using it. The first entrant surely has the opportunity to build a large installed base before competitive entry. This reduces the followers’ ability to introduce differentiated products.
Operation/cost-based sources of pioneering advantage fall into three main categories as follows:
Experience effects and economies of scale. Taking the lead into the market means that pioneers can build production volume and accumulate research and market experience before any other rival. This potential cost advantage can be used to achieve higher margins or to protect customer-based advantages through lowering prices to discourage rivals from entering the market.
Measuring competitive interaction
In previous studies, four approaches have been used to measure the competitive interaction between market-players: reaction function estimation, menu approaches, conjectural variation models and time series casual approaches.
To collude effectively, companies must send information to each other. Or else the cartel falls apart. Managers can simply call a competitor on the telephone or meet in an office or some other discreet location. Companies have also used a number of less obvious means of communication which include announcing pricing plans over online networks (US airlines were caught doing this using their reservation systems): using “meet or beat” pricing announcements over public broadcasting media – these serve to establish price floors; organizing joint trade events, symposiums, workshops and association meetings.
In order for the cartel to survive, it is essential that all of the players have a similar sense of constraints. Consider the simple case where the actual sales potential for a given market is $500 million. Company A correctly perceives the potential as $500 million but Company B perceives the potential to be at least $ 900 million. Each of the two companies starts with a 50 percent market share. Company B will be erroneously tempted to engage in aggressive marketing in order to expand its total revenue to absorb some of the perceived excess demand. While doing so, it will cut into the share of Company A. Company A will, surely, retaliate and the covert cartel will crumble. A number of facilitators help to ensure that market constraints are similarly perceived by competitors. This include the formation of trade associations, workshops, seminars, industry-level training courses and other forums open to all players within the same industry. These lead to discussion of historical and future industry prospects and even in some cases to the publication or sharing of data among cartel members.
Confusion requires that consumers, employees, regulators and potential entrants should not fully understand the working o the cartel. This involves elaborate use of peripheral cues or signals. One of the most common coordination schemes – Round Robin collusion – generates such signals. This scheme works as follows. Let us suppose there is a covert cartel of seven companies in the chemical industry. Al the companies sell to clients around the Pacific Rim. This is a case of multi-market contact. The same companies compete against each other at different, rather disparate locations. Suppose all the seven companies meet and decide to increase prices throughout the region to monopolistic levels. Company A will volunteer to increase its price in, say, Indonesia, citing a plausible reason. Its own market share will fall in Indonesia and everyone else’s share will rise. The other competitors will use the same story in other Pacific Rim countries, each taking its turn as the “bad guy” in order to help the others out. With the four Cs in place, a number of companies have been able to maintain the illusion that there is no collusion in their sector for a long time. They have been so successful that citizens in countries where no price-fixing laws exist often do not realize that price-fixing is a daily event for most of the products they purchase.
The above article has been abstracted / condensed from the views of the following professors in Mastering Marketing published by Business Standard in partnership with Financial Times. All rights of the authors and publishers are reserved. * Philip Kotler, Professor of International Marketing at the Kellogg Graduate School of Management, Northwestern University * Gregory Carpenter, Professor of Marketing at the Kellogg Graduate School of Management, Northwestern University * Venkatesh Shankar, Assistant Professor of Marketing and director of Quality Enhanced Systems and Teams (Quest) at the Smith School of Business, University of Maryland * William Putsis, Jr, Associate Professor of Marketing at London Business School * Philip Parker, Professor of Marketing, Insead
1. For Nokia, it is a strategic issue to decrease churn & increase customer loyalty for this they have organized and prepared the solution based on the local culture of the countries they are operating in. 2. Nokia tries to reach very good levels of performance by setting and meeting performance targets, transferring competence, providing customized service and setting up new reporting methods which provide more visibility on actual status & needs of the consumers. 3. Nokia innovative technology guarantees not only the highest quality standards but also the most efficient network management system worldwide. 4. Nokia regularly gives its engineers training in the will equipped laboratories. It also provides the trainees, study material which is clearly written and is very effective in the operations of the Co. 5. Nokia strictly concentrates on the quality of service the stability of its products and the future proof technology in order to be the leader in telecommunications market. 6. Along with some other leading lompanies in telecommunications like Mobile Com. In Austria Nokia has done comprehensive evaluation and optimization of GPRS core networks, for better and improved end-to-end performance of certain applications like MMS.
1. In early 1870’s, due to European industrialization and the growing consumption of paper and cardboards, Nokia started manufacturing paper and became successful. 2. In 1920’s, sensing their growth prospects in rubber works, the company established a rubber factory and manufactured rubber for footwear, tyres, bands and raincoats. 3. After the world war II, a company “FINISH RUBBER WORKS” bought the majority of shares of the co. “finnish cable works”. It was a company that had grown very quickly due to increasing need for power x-mission and telephone networks. In 1967 both the companies were merged with the Nokia group which head to the plantation of seeds of Nokias global success. 4. In late 1960’s, Nokias electronics department started conducting research into semiconductor technology which was the beginning of Nokias Journey into telecommunications. 5. In 1970’s most of the telephone exchange had analog switches for data x-mission sensing & need for digital switches, Nokia began developing digital switches, which became a success. 6. In 1988, Nokia was a large Television manufacturer and the largest information technology company in the Nordic Countries. 7. In 1995 their strategic goal was to sell 5,00,000 units, but they were able to sell 20 million.
1. To constantly produce and introduce new innovative product according to the changing needs of consumer.
2. To invest in experience and expertise.
3. The concept of 3 dimensional games and features like a screen sever of fish aquarium are very popular these days so the strategy should be continuously providing new features like this to its consumers.
4. To promote sell and delivered products of services over a world wide web.
5. Nokia thinks that there is a need to develop the most competent workforce in the industry by targeting strategic and systematic market development for all it employees. INTRODUCTION OF CELL PHONES INDUSTRY IN INDIA
An exciting new world – dating services, online games, streaming video – is about to open up for mobile phone users as cell phone service providers gingerly tip-toe into the data business Calling all mobile phone users — your world is about to change dramatically in a few months.
If you’re an ordinary mobile user, you’ll be able to seek assistance on your phone to find a house or a friend or to locate emergency services. Indeed, mobile phone technology could soon be used to run the mobile ATMs of banks, to find yourself a husband (if you’re a woman) or wife (if you’re a man), play online games, zip photographs through your mobile to your friends’ mobile phones, for video conferencing and accessing streaming video and downloading short video clips.
Indeed, the mobile phone data business is already here. Experiments with a range of new enhanced short messaging service (SMS) uses are already on – SMS for the interactive contests of TV channels and for corporate surveys, dating services (you can chat with someone who fits your profile), to name a few. BPL Mobile, for example, tied up with MTV for choosing the winners in a VJ Hunt and also for free tickets to a Deep Purple live concert. It is now planning to tie up with Star TV and Radio Mirchi for similar contests. Not long ago, BPL Mobile also tied up with Hindustan Lever to poll its subscribers on Rexona soap. Bharti has tied the knot with the Aaj Tak channel for polling Bharti’s subscribers.
Indeed, it makes sense for mobile service providers to partner TV channels and companies in SMS, because both sides share the revenue. For TV channels, SMS is a cheap and effective way of reaching viewers and helps make TV programmers interactive. For mobile service companies, the deals spell money for jam – typically, they offer around 20 per cent of the revenue from such deals to the channel if the tie-up generates over a million SMS, and they keep the rest.
Nearly all cell phone service providers, including Bharti and BPL Mobile, have also introduced some form of dating and friendship SMS service (Track Ur mate, in Bharti’s case) after introducing 32 K SIM cards. In the works too is the introduction of multimedia messaging services (MMS — for example, you’ll be able to e-mail photos clicked on an in-built camera in your phone to another mobile number for Rs 6 to Rs 7).
That’s not all. Mobile phone technology will also be harnessed for several business uses. If you’re a truck driver, you will be using your mobile phone to keep your company informed of your truck’s position, without even making a call, thanks to a new SIM card being developed that will transmit only data, not voice. And if you’re a salesman at a fast moving consumer goods company, you may be providing information to your office on inventory levels at a retail outlet and booking orders by punching in a few numbers.
As a result, SMS – the hottest new data application on the mobile phone – as we now know it could become passe, though it could come roaring back in a new avatar. If a brave new world awaits mobile phone users, it’s because cellular service providers still earn most of their revenue from voice (telephone calls) — and cut throat competition and dramatic tariff cuts are forcing them to take a harder look at generating extra revenue from mobile data-based value-added services. Two key developments are pushing service providers into India’s fledgling data market. One, global systems for mobile communications (GSM) -based cellular operators across the nation propose to launch the general packet radio system(GPRS – 2.5 G) services in the next few months. The second is the introduction of CDMA-based limited mobile services by business groups like Reliance which are set to offer both 2.5G as well as 3 G services from late December.
Unlike existing mobile phones, 2.5 G and 3 G offer platforms which make it possible to transmit data at very high speeds. This could radically change the mobile data market, making innovative corporate mobile data services a reality and high speed e-mail a distinct possibility. It would also give SMS a new lease of life because mobile users will be able to send pictures and videos to other mobile users or elsewhere. Right now, pictures cannot be transmitted through SMS – though icons or graphics can – and SMS faces the disadvantage of being restricted to a limited number of characters. Notes Kobita Desai, telecom analyst at Gartner, the research firm: “Content, which will hold subscribers, will be a key factor for the development of the data market. We will see a lot of niche content addressing the needs of various market segments.”
While few are ready to share their data market strategy, India’s mobile phone service companies are unquestionably either working on, or have launched, the following:
A GPRS-powered sales force automation system for FMCG as well as insurance companies is being developed. Salesmen or saleswomen will, for instance, be able to update new orders on their GPRS-enabled phones and transmit the data to their head offices or warehouses, so ensuring better inventory management and quick delivery. Sales staff can also get into the warehouse database to check whether the products ordered are available or not. And insurance agents can key in the data required for a new policy on a GPRS-enabled mobile phone and, with the press of a button, send data to the central office where the policy will get processed in double quick time.
A fleet management system where truck drivers will be able to use their mobile phones to transmit data on their positions to the central monitoring office. The Bharti group held discussions with trucking companies and large FMCGs to sell its fleet management system, but realised that companies were concerned that the phones could be misused by drivers to make personal calls. So the Bharti group is now working with vendors to develop a SIM card that can transmit only data.
BPL Mobile realised that GPRS connectivity can be used as a replacement for small aperture satellite-based systems (V-sats) for data communications. It has tied up with Zee. Over 200 of Zee’s PlayWin lottery mobile kiosks spread across Mumbai are powered by GPRS links to a central location where the draw takes place.
Talks are also on with banks to use GPRS connectivity for running mobile ATM centres. Says a senior BPL mobile executive: “V-sat connectivity has numerous reliability problems. GPRS connectivity is an answer to these. This usage is peculiar to India.”
CDMA-based operators will be launching the latest CDMA2000ix phones with 3G services. These include position location services (for around Rs 3), picture downloads (Rs 2 to Rs 3), video conferencing, on-line gaming, streaming video and short video clip downloads. Expect too a range of e- commerce solutions.
Cellular service providers, meanwhile, are convinced that the SMS market will explode. BPL Mobile, for example, expects its SMS traffic to go up from 1.2 million paid messages a day to 2 million at the end of this year. Hutchison Max too sees a huge opportunity here. Says Sudarshan Banerjie, CEO of Essar-Hutchison in Delhi: “About 5 per cent of our revenues come from data and the number of messages sent is virtually doubling every year”. Hutch is planning to slash SMS prices to Rs 1.20 (from Rs 1.50) in Delhi to expand the market further. Data services accounted for about 2.5 per cent of the Bharti group’s revenue last year; this year, the figure is expected to go up to 3.5 per cent.
To be sure, the number of SMS messages sent every month per subscriber is much lower than the world average of 40 and the Philippines’ average of 200. But US research firm Gartner says that Indian subscribers who use SMS regularly already send over 40 messages a month and the numbers are going up dramatically every month (see chart).
They could go up by leaps and bounds — mobile service providers see a rich vein to tap in vernacular language SMS services. They’ve joined with mobile phone manufacturers to introduce vernacular SMS. Bharti, for instance, is experimenting with Hindi, Bengali and Gurmukhi and Nokia has introduced a phone with vernacular key pads and software that recognises Indian languages. Says Anil Nayar, head of mobility at Bharti Televentures: “Vernacular languages will go a long way in pushing SMS usage in the country.”
With all this going on, Gartner thinks that in 2006 data services will account for 17 per cent of the revenue of mobile service companies, up from a mere 3.75 per cent last year. A Merril Lynch report forecasts that Indian operators will earn over US $ 76 million (over Rs 372 crore) from data by 2005, a figure that represents a compound annual growth rate of 69 per cent from 2000 revenue (see chart).
Expanding the data market makes economic sense for mobile service companies. Margins in SMS are a high 90 per cent or so of the tariff. That’s because service providers don’t have to share revenue from SMS with the government, unlike in the case of voice calls. The only cost incurred is on setting up a messaging centre. Says Rohit Bhatia, head of new products at the Bharti group : “Earlier, data applications were seen as something good for the brand and as something that would reduce customer churn. But with voice tariffs coming down, data services are seen as contributing to revenue.”
Still, the mobile data market has its fair share of Cassandras too. Says a senior executive of a US-based telecom company: “Considering the low penetration of phones in India, the first step is to ensure that more people have a phone for simple voice usage. Data is a luxury, meant for advanced markets, not for India.”
The mobile data business is, of course, in its infancy in developed markets. In Europe, mobile data accounts for around 11 per cent of operators’ revenues. In the US, the figure is as low as three per cent. And even in markets like China, data weighs in with less than two per cent of revenue. What is more, despite well over a billion plus mobile subscribers in the world, only five million are hooked on to 3G phones.
While voice will still remains the predominant source of revenue at least for the next few years, the potential revenue from data services can’t be ignored. So most mobile phone operators are using a combination of strategies — aggressive pricing, building specialised GPRS-based products for the corporate sector relevant to India and promoting value-added SMS services — to expand the data market. Still, GPRS hasn’t yet taken off in India. BPL Mobile, for example, the first to launch GPRS in India, has some 4,000 subscribers in Mumbai — its goal this year is 10,000 — partly because GPRS-enabled mobile phones weren’t ready in the first few months. But the company is still hopeful.
Says F B Cardosa, president and CEO of BPL Mobile : “We expect to increase revenue earnings from non voice (including GPRS) services from 10 per cent of the revenue to 15 per cent by the end of this year.” That’s close Gartner’s 17 per cent research research projection for data services in 2005.
So mobile data may still be a fledgling business here, but expect this fledgling to grow up pretty quickly.
Asia will lead the charge
Mobile data may not as yet provide substantial revenue to cell operators worldwide, but that could change dramatically. A Merril Lynch report forecasts that revenue from mobile data (including 3 G services) will more than double to 27 per cent of a cellphone service provider’s revenue in Europe by 2005, from around 11 per cent in 2002. What is more, around 17 per cent of this will come from data carried on 2.5 and 3 G services.
In the US, mobile data has yet to catch on. But the US mobile data market too is expected to grow substantially, if not dramatically. The Mobile Data Association expects the number of cellular data users to top 28 million by the end of 2003 and generate over US $ 2.6 billion in revenue.
Leading the mobile data charge will, however, be Asia. i-Mode, DoCoMo’s sweepingly successful service in Japan, expects 25.8 per cent of its revenues to come from data by 2002 end, though the hot growth rates could plateau.
In China, cellular service providers get just two per cent of their revenues from data, but the market could explode. The Yankee group estimates that China’s wireless data market will balloon to US $ 5.68 billion by 2005 from only $ 2.72 million in 1999. It expects as much as 40 per cent of mobile phone users to use data.
In the Philippines, SMS accounts for over 22 per cent of an operator’s revenue (on an average, a cellphone service subscriber sends 11.2 SMS every day, thanks to low prices and the free SMS packages operators offer). Note too that around Asia and in the US, CDMA-based cellular service operators who offer 2.5 G services have taken a lead over operators who offer GSM-based GPRS services in the mobile data arena. That’s because their services are cheaper and handsets are easily available and are more affordable. In Korea, for instance, Morgan Stanley research research projects that 9.2 per cent of S K Telecom’s (which offers CDMA services) revenue will come from data by 2002 end. It also believes that over 12.8 million Koreans will subscribe to CDMA 2.5 G-based services, with the figure going up to 19.7 million by 2003.
PROMOTION STRATEGY FOR NOKIA MOBILE
PROMOTION STRATEGIES FOLLOWED BY NOKIA
Promotion is an element in an organization Marketing Mix that serves to Inform, persuade and/or remind people about an organization’s or individual’s goods, service, Image, ideas, community, involvement or impact on society. Promotion is used in hopes of influencing the recipient’s feeling beliefs, or behaviour, through any form of communication.
Promotion for Dealers:
o Whole Seller: Promotion by Nokia to whole seller have given the credit facility and discount in bulk purchase. o Retailer: Commission and after sales service give to the retailer to promote their product.
PROMOTION OF CUSTOMERS
Nokia has given to the different product to the different customer using different techniques of promotion like product differentiation.
TYPES OF PROMOTION FOLLOWED BY NOKIA
2. Personal Selling
3. Sales Promotion
5. Public Relations
6. Word of Mouth
7. Direct Mail
Competitive Analysis On the basis of the Questionnaire
Q1. Do you have Mobile phone?
|Yes |85 | |No |15 |
Source: Interview of respondents through questionnaire
Q2. Which is the most popular Brand?
Source: Interview of respondents through questionnaire
Q.3 Have you ever purchased Nokia handset?
|Yes |70 | |No |30 |
Source: Interview of respondents through questionnaire
Q.4 what are the qualities you look for in a Mobile Phone?
Source: Interview of respondents through questionnaire
Q5. Among the following of latest Nokia handsets, which all have you heard about and you want to purchase?
Source: Interview of respondents through questionnaire
Q6. Rank the following models of Nokia handsets in order of your preference for personal use.
Source: Interview of respondents through questionnaire
Q.7 What is the reason behind your preference for the above particular Handset?
Source: Interview of respondents through questionnaire
Q8. Which is the most popular market player according to you?
Source: Interview of respondents through questionnaire
Q9. What is the reason behind your preference for the above particular Market player?
Source: Interview of respondents through questionnaire
Q10. For how long you are using your handset?
Source: Interview of respondents through questionnaire
Analysis of Data
A paradoxical situation prevails in the fledgling cellular mobile services industry in India. On the one hand, the service providers have collectively brushed aside negative growth of the past two-three years and are quite gung-ho about prospects. Their combined subscriber base has crossed the 2.5 million mark last month and despite threat of local competition from government-controlled players like MTNL, these service providers are a happy lot. One would automatically expect the handset providers to be on Cloud Nine. Things could not have been better for these global players as an Indian competition is yet to emerge in their territory and every time a mobile service provider lands a customer, they should benefit too. Curiously, the euphoria seems to have bypassed them!
Be it the rugged Motorola, the sleek Nokia, the sturdy Siemens or the highly sophisticated Ericsson, a pall of gloom seems to have enveloped all these giants in the competitive mobile handset industry. Make no mistake. It is the large and unruly grey market that has wiped away the smile from their faces at a time when the cellular service industry has already gotten on to the high growth expressway. Says Ranjitjeev Singh, Director (Consumer Products) at Ericsson India Limited: “Indian subsidiaries of the global cellular handset brands are finding it difficult to improve their sales. We have no real estimate of the grey market and are in no position to plan ahead because of this.” He is dead right. It is almost impossible to measure the share that the grey market takes way from the cellular handset makers. Singh hazards a safe guess to peg it anywhere in the region of 65 to 70%. Naturally the Indian subsidiaries of Ericsson, Nokia, Motorola and a host of other manufacturers are left scrambling for a nibble of the already shrunken cake. The overbearing presence of the grey market has another interesting facet. It has unleashed a price war where, at the end of the day, the losers and the gainers are one and the same company. Sounds illogical, isn’t it?
Well, if one were to be aware of the skewed import policies that the government puts in place, one wouldn’t be surprised at the above statement. Currently, the price was is not between rival brands, but between Ericsson and Ericsson, Nokia and Nokia, Motorola and Motorola, Siemens and Siemens and Samsung and Samsung. While the Indian subsidiaries of these transnational companies watch helplessly, their parents make hay on the strength of highly competitive pricing which is, as compared to the products available through the Indian subsidiaries, at least 30 per cent cheaper, says Ajay Sachdev, Head of Marketing, Motorola India Ltd.
The plain fact behind the price differential is that while Indian subsidiaries are subjected to an accumulated import duty of 26-28 per cent, hiking the price of handsets in that proportion, their parents are exempt. The mobile handsets from foreign shores are smuggled into the country by grey market operators. The impact of this grey market operation is huge. Frustration has come to stay for the Indian managers of these global brands. Queries about the current scenario solicit the predictable volley of accusations against the government’s import policy. By imposing a high import duty whom is the government protecting? The handsets are neither manufactured nor assembled in India.
In fact, government is caught in its own web. Since high tariff level has resulted in large scale smuggling of handsets, the government loses almost 70 per cent of the revenue it would have collected. By a logical extension, a lower tariff would not only enable the Indian companies combat the grey market, it would also increase revenues. The recent 5% reduction in basic import duty on handsets is indicative that realization has dawned. However, in the current market matrix this tariff cut remains a futile exercise as the grey market continues to be cheaper by almost 30%.
But then, skewed policies seem to characterize the Indian government. Barely a year ago the government demonstrated its strange ways by withdrawing duty exemption on import of wireless-in-local loop (WLL) to “protect the domestic industry”, in full awareness that there was none to protect. The government’s frequency allocation policy too adds to market inefficiencies. In the developed economies, service providers are allowed to operate on two, even three frequency bands – 900 MHz, 1800 MHz and 2700 MHz – whereas in India only the 900 Hz frequency band is available to operators. As a consequence, the handset vendors worldwide have phased out single band handsets in favor of dual and treble band phones. The technological backwardness has proved to be a boon for grey market operators who smuggle the discarded handsets and dump them in India at a throwaway price, ranging from Rs.3500 to Rs.5000.
If government is aiding grey market by creating inefficiencies in the marketplace, the service operators are not far behind either. They themselves restrict the proliferation and popularity of handsets by refusing to pass on the benefits of falling operational costs to the customer. Obsessed as they are with the ‘business class’, the service providers have stubbornly maintained high tariff levels. Though after switching over to revenue share, the cost of providing a mobile connection has fallen to 1/5th of that of a landline connection, the airtime charges for cell phone users remain 12 times higher as compared to fixed phone users. In the past, high license fees justified high airtime rates. At present, the metro cellular operators need not bring down rates as their networks can hardly accommodate more customers. But since the high end user business class is anyway hooked to cell phones, investment in network expansion is not a priority for most of the operators.
The average middle classes have, as a result, kept away from cell phones. The loser again is the handset vendor. ”If the turnover increases, the cost gets amortized over a period of time. In that case we can afford to lower the prices and still maintain the profit levels”, says Ranjitjeev Singh. That, in turn, will help them compete with the grey market, albeit from a disadvantaged position.
That scenario appearing remote, the handset vendors have embarked on other marketing strategies. The buzzwords of this strategy are ‘replacement’ and ‘segmentation’ of the handset market. “The point is to outwit the grey market operators by offering tailor-made handsets to each customer segment,” says Ajay Sachdeva. At the user level the market is maturing fast. Clear segments of users are emerging which are differentiated on the basis of tariff, service or handset types.
Nokia was the first to recognize this segmentation. Subsequently, the company launched a plethora of feature-rich handsets. The strategy was to tap the replacement market. People were fed up with black and grey handsets. They wanted something new. Nokia made this newness visible by introducing many colors as well as shapes. As a result it was able to corner almost 90 per cent of the replacement market, which typically accounts for 15 per cent of the total subscriber base in the country. In the process, it not only beat the grey market, it beat every other vendor by cornering over 30 per cent of the market share. Though it has launched handsets for other segments as well, Nokia continues to focus on entry-level and mid-level customers, which according to its head of marketing and strategy, Sanjeev Sharma, are the fastest growing segments. Ericsson, on its part, was focused more on the technology or on what was inside the handsets, and so lost its No. 1 position to Nokia by the end of 1997. The company has now woken up to the new mantra. According to Singh, Ericsson’s strategy revolves around ART where A signifies first-time users, R stands for techno-savvy users who want to replace their handsets with feature-rich colorful ones and T denotes style-lovers. In keeping with this strategy Ericsson has launched A1018, R320, R190, T28 and T10.
Ericsson is also banking on ever reducing lifecycle of handsets. As Singh says, the average lifecycle of a handset has already come down to 7-8 months. With simultaneous global launches and competitive pricing becoming the order of the day, the grey market will have problems with ever more finicky customers. Similarly, as a result of a global study commissioned by Motorola, the company has concluded that there are four broad segments – (1) the techno-savvy, who like to be at the cutting edge of technology and so want features like e-mail and WAP on the handset, (2) the productivity-focused, normally onto their second phone, who like features such as stock-market quotes on the cell phone, (3) the people focused on style and glamour, the status-conscious who flaunt their handsets as if they were fashion accessories and (4) the security-conscious, who would have a cell phone to know if the kids and the wife are okay. Motorola also plans to appoint dealers in crucial cities. This is aimed to help the service retailers keep well stacked with handsets, so that customers no longer complain about the scarcity of their favorite model. Hopefully, the handset vendors will be able to outwit the grey market. Whether they can marginalize it for good, in spite of the government and the smug service-providers, still remains to be seen. Till such time, the bells will continue to toll for the grey market.
OF THE STUDY
Findings of study
Position of Nokia Brand in consumer’s mind
The world of parity has hit the mobile phone market just as it has many other technology product categories. The products range from the simple to the complex, but every manufacturer offers, of course, the latest features. Leapfrogging in sales between brands frequently occurs based on design. But overall the market is predictable, with Nokia, Motorola, and Ericsson fighting it out at the top and several less successful brands like Samsung, Philips, Siemens and Panasonic trying hard to make inroads into their top competitors’ market share. So what makes the difference between the most successful and less successful brands? It certainly is not what product features are offered. How, then, do consumers choose? The answer seems to be what the brand names mean to them. Nokia Group the Finland-based manufacturer of mobile phones, has been steadily working on its corporate brand name and the management of consumer perceptions over the last few years. Its efforts have paid off, because it is now the number one brand in many markets around the world, effectively dislodging Motorola from that position.
The brand has been built using the principles described above, and has been consistently well managed across all markets. Nokia has succeeded in lending personality to its products, without even giving them names. In other words, it has not created any sub-brands but has concentrated on the corporate brand, giving individual products a generic brand personality. Only numeric descriptors are used for the products, which do not even appear on the product they. Such is the strength of the corporate brand. Nokia has succeeded where other big brand names have so far failed, chiefly by putting across the human face technology-taking and dominating the emotional high ground. It has done so in the following way.
Nokia Brand Image
Nokia has detailed many personality characteristics for its brand, but employees do not have to remember every characteristic. They do, however, have to remember the overall impression of the list of attributes, as you would when thinking about someone you have met. As the focus is on customer relationships, the Nokia personality is like a trusted friend. Building friendship and trust is at the heart of the Nokia brand. And the human dimension created by the brand personality carries over into the positioning strategy for the brand.
Nokia Brand Positioning
When Nokia positions its brand in the crowded mobile phone marketplace, its message must clearly bring together the technology and human side of its offer in a powerful way. The specific message that is conveyed to consumers in every advertisement and market communication (though not necessarily in these words) is “Only Nokia Human Technology enables you to get more out of life”
In many cases, this is represented by the tag line, “We call this human technology”. This gives consumers a sense of trust and consideration by the company, as though to say that Nokia understand what they want in life, and how it can help. And it knows that technology is really only an enabler so that you-the customer-can enjoy a better life. Nokia thus uses a combination of aspirational, benefit-based, emotional features, and competition-driven positioning strategies. It owns the “human” dimension of mobile communications, leaving its competitors wondering what to own (or how to position themselves), having taken the best position for itself.
Nokia Product Design
Nokia is a great brand because it knows that the essence of the brand needs to be reflected in everything the company does, especially those that impact the consumer. Product design is clearly critical to the success of the brand, but how does Nokia manage to inject personality into product design? The answer is that it gives a great deal of thought to how the user of its phones will experience the brand, and how it can make that experience reflect its brand character. The large display screen, for example, is the “face” of the phone. Nokia designers describe it as the “eye into the soul of the product”. The shape of phones is curvy and easy to hold. The faceplates and their different colors can be changed to fit the personality, lifestyle, and mood of the user. The soft key touch pads also add to the feeling of friendliness, expressing the brand personality. Product design focuses on the consumer and his needs, and is summed up in the slogan, “human technology.”
Nokia now accounts for over half of the value of the Finland stock market, and has taken huge market share from its competitiors. According to one brand valuation study carried out in mid-1999, it ranked 11th on the world’s most valuable brand list, making it the highest-ranking non-U.S. brand. As has been pointed out, it has unseated Motorola. Nokia achieved its brilliant feat through consistent branding, backed by first-class logistics and manufacturing, all of which revolve around what consumers want.
Some Nokia Phones with latest features
One of the most impressive handset is the Nokia 9210i Communicator (Price: 37,599), a phone cum personal digital assistant (PDA). At 244 grams it is almost obese compared to other PDAs but it has an awesome range of features. The company bills it as a portable office which includes phone, fax, e-mail, calendar, contacts, Word Processor, Spreadsheet, Presentation viewer, WAP, WWW. You can edit and send Word Processor and spreadsheet documents, view MS PowerPoint slides in full colour.
It has a high quality 4,096 color screen. Photos can be transferred from a compatible digital camera, viewed and then forwarded by fax or e-mail. You can also view streaming videos on the Internet and flash animations.
There is however a snag, Worksheets can be created on it but the presentation tools can only view previously loaded PowerPoint slides. As if to make up for these, there is the streaming software from Real Networks (audio and video player) to view internet media content. The 9210i Communicator effectively serves as an office in your pocket. Another latest in the Indian market is the Nokia 6610 (Price: Rs 16,399). One of its main features is the multimedia messaging service (MMS) which allows users to incorporate sound, images, and other rich content into their messages. The model also has an integrated FM radio. Its triband GSM access means ability to connect anywhere in the world, anytime. Plus there’s pre-installed Java applications on the Nokia 6610 which include a Converter (for currencies, temperature, weight and other measures) and a Portfolio Manager (to track stocks and other securities). The calendar notes can take up to 250 entries and the Phonebook Memory (phone + SIM) up to 300 entries.
Another model selling well in the Indian market is the Nokia 7250 (Price: Rs 26,299). It has an integrated digital camera allowing you to capture, store and share pictures. Plus there’s MMS, triband GSM, an integrated stereo FM radio, downloadable personal applications via Java technology, WAP 1.2.1 Browser. Memorywise, the phone book supports up to 300 entries, SMS up to 150 text messages and calendar notes up to 250 entries. Thanks to an ultra thin battery, the Nokia 6100 (Price: Rs 20,099) is one of the slimmest full featured phones on display in Indian shops. Features include MMS, downloadable Java games, WAP 1.2.1 browser, delightful polyphonic ring tones, triband GSM support. The 6100 even has an electronic wallet, though it will be some time before people start using this feature in India. The 6100 sports a 4,096-colour, 128×128 pixels resolution screen and its large display is handy, whether you are typing SMS messages or viewing an MMS message.
The Nokia 3650 (Price: Rs 23,399) is equipped with an integrated video player and a RealOne Player to download video clips. Also, its integrated digital camera can capture images at 640 x 480 resolution and the phone display can be used as a viewfinder. It has high-end features like Bluetooth9 and Infrared capabilities which allows wireless connectivity to your PC and laptop. You can download new Java games and applications. Data transfer can be as fast as 43.2 kilobits per second.
The Nokia 8910 (Price: Rs 35,499) is heavy on looks with a titanium casing and chrome finish keys. Activating the side triggers sets the phone in motion, rising from the handgrip cover to put the many phone functions at your fingertips. Features include Voice Commands, Bluetooth wireless connectivity to other compatible devices, mobile Internet connectivity, Organiser and To-Do lists, on top of your pre-requisite phone functions.
Nokia 7650 (Price: Rs 26,999) is a phone and colour camera rolled into one with MMS capabilities. It has 3.6 MB of memory to store files and applications. The 7650 comes with only a WAP (Wireless Application Protocol) browser, limiting you to text-based content. It has infrared and Bluetooth capabilities for connecting to PDAs and notebook computers.
1. Company should invest money on advertising through media, Internet and personal selling to promote the products, to increase awareness in the market. 2. Holdings on outlets and publication in the prominent magazines help in increasing its awareness among the consumer to evoke the demand of their brand. 3. Policy of replacing problem arising sets should be done timely and the retailer should be accommodated immediately. 4. More attention and concern should be given to the highest selling outlets of NOKIA and the chain should reach to the consumer as well. 5. Allurement and discount schemes should be given to the highest selling outlets of NOKIA and the chain should reach to the consumer as well. 6. More glow sign and broad should be installed.
7. Contests sweep stakes and games should be arranged on regular basis for the consumer involving incentives and prizes. 8. The sales executive should go to each outlet of their route once in a week and try to cover outlet that are in a distributor network. 9. The net and free sample scheme should be the same for net every retailers by the company. 10. Some credit facilities should be given to good sales providing outlets. 11. The company should try to influence the wholesalers of NOKIA in the city offering more profitable scheme and confidence building measures. In metropolitan areas. 12. Company should make proper schedule or particular days for hearing the complaints of their customer and retailers. 13. No of outlets and service centers should be open.
As per the research work done by us, we conclude that Cell phone industry is growing with a very great pace and has a very remarkable prospect in future. Nokia is leading player in the cellular industry and is very much ahead from its competitors like LG, Samsung, Panasonic, and Sony who are still trying to compete with it. In any markets there are market leaders and followers, and in most cases market leaders lose market share to followers, for many reasons such as pricing, availability, “user-friendliness”, relevance to the target audience etc. It’s inevitable. Can Nokia be beaten? On one hand, it is up to Nokia’s marketing department, and its agencies. So far the brand has established itself well in many markets, and consumers have identified with what the brand has to offer. But that does not mean they cannot lose the brand battle. To remain at the front of the pack, one must constantly be innovative, the minute you lose that edge competitors will definitely overtake. On the other hand it also depends on the competitors. How far are they willing to stretch? Are they willing to take Nokia head-on? How? What will the outcome be?
For the same reason that Nokia has managed to gain market share and be ranked number 6 in the Global Brand Scoreboard, certainly someone else can do the same? Nokia is a very creative designer. How could it be beat if the creator is so creative — unless the competitors could find Nokia threats and weaknesses In market, it can be seen that most of the young generation, even the medium-age people, like to use Nokia as it is user-friendly, with a lot of features that the young generation likes. But in the future we could not think of Nokia’s performance as IT is unpredictable. If we could predict 100% of what will happen, then there will be no challenges in the future. Can Nokia be beat? This is a good question that could not be answered precisely. It only depends on what humans think of and what they expect. In short it looks very difficult for every competitor to get the same position which Nokia is currently prevailing with in the market so it is concluded that it will be hard to defeat Nokia at present and in near future in terms of market share.