A

STUDY ON

Consumer behavior towards cellular phones

with reference to

Nokia

Submitted in Partial Fulfillment for the Award of theDegree of Bachelor in Business Administration 2012-15

Under The Guidance Of: Submitted By: Dr. Neeru Gupta Rajan Sukhija Assistant Professor, MAIMS 12114701712

Maharaja Agrasen Institute of Management Studies

Affiliated to Guru Gobind Singh Indraprastha University, DelhiPSP Area, Plot No. 1, Sector 22, Rohini, Delhi 110086

i

STUDENT DECLARATION

This is to certify that I have completed the Project Report titled”A study on

consumer behavior towards cellular phones with reference to Nokia” under the

guidance of Dr..Neeru Gupta for partial fulfilment of the requirement for

the award of Degree of Bachelor of Business Administration at Maharaja

Agrasen Institute of Management Studies, Delhi. This is an original piece of

work & I have not submitted it earlier elsewhere.

Name:Rajan SukhijaEnrollment No.:12114701712

ii

CERTIFICATE

This is to certify that the project report titled ”A study on consumer behavior

towards cellular phones with reference to Nokia” is an academic work done by Rajan

Sukhija submitted in the partial fulfilment of the requirement for the award of the degree

of Bachelor of Business Administration at Maharaja Agrasen Institute of Management

Studies, Delhi, under my guidance & direction. To the best of my knowledge and belief

the data & information presented by him in the project has not been submitted earlier.

Dr. Neeru Gupta

Assistant Prof. MAIMS

Signature:

iii

ACKNOWLEDGEMENT

I owe my sincere thanks and gratitude to Ms.Neeru Gupta who inspired me

by her able guidance and was a constant guiding light during the course of

project study. The support and knowledge provided by her has been a great

value addition for me and will go a long way in building a promising career.

First of all I would like to thank Dr. C.S. SHARMA (Director of

MAIMS) who gave me this golden opportunity to learn something new

about project writing.

The help provided to me by the entire division of ”A study on consumer

behavior towards cellular phones with reference to Nokia”. also obliges me in

making this project to.

Rajan SukhijaBBA (GEN) 3rd YEAREnrolment No.:12114701712

iv

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 every year, some even twice a year. One reason for this attitude towards mobile

phones has changed. Mobile phones are no longer seen as expensive, hi-tech products,

but they have become accessories like jewelry 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.

v

CONTENTS

CHAPTER

NO.

TOPIC PAGE NO.

1 Introduction to the industry 1

2 Introduction to the organization 15

3 Research methodology

Research methodology Meaning

Type of Research use in project

39

4 Analysis and interpretation 42

5 SWOT analysis 59

6 Conclusion 62

7 Recommendation and suggestion 63

Bibliography

Questionnaire

1

CHAPTER -1

INTRODUCTION TO THE INDUSTRY

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

2

INTRODUCTION OF CELLULER/MOBILE PHONE :-

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

3

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.

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.

4

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.

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".

5

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.

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.

6

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.

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.

7

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

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

8

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.

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.

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

9

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 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.

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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.

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.

11

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 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-

12

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 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.

13

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.

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

14

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

15

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

16

economic recession in 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

17

(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 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 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.

18

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

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 purpose—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 ”

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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. 

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

20

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.

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

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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

· 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. 

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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.

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.

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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 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

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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.

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.

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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 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

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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.

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.

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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 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

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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.

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:-

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.

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(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 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.

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(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, WCDMA, etc) and the correct settings on your phone.

NOKIA MOBILE PHONE MARKET STRATEGIES

31

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

33

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 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

34

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

35

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

36

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.

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.

37

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.

38

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

39

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

CHAPTER - 3

Research

Methodology

40

RESEARCH METHODOLOGY

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 of people.

To analyze the reasons which influence the purchase of Nokia

products

To study Customer Satisfaction level towards the usage of Nokia

Products.

RESEARCH DESIGN

Determined the Information Sources: The data has been gathered through

primary sources.

PRIMARY DATA is collected through questionnaire, search and research

through place where today’s computer and office automation products has been

mostly used.

DATA COLLECTION

41

The data has been collected by gathering information through the personal interview,

telephonic interview.

DEVELOPED RESEARCH FRAME

This included deciding upon various aspects for the project on which the entire research

is based. The research frame included:

SAMPLING TECHNIQUE: The samples were taken on the basis of simple random and

convenient sampling. The tools used for the analysis are weighted average method, pie-

charts etc.

NATURE OF STUDY:

The project on which work is done is descriptive and inferential in nature.

DATA SOURCE:

I took the help of primary sources. Primary sources being interaction with people of the

selected company and institutes and filling up questionnaire by them.

INSTRUMENT USED:

A Questionnaire cum personal interview was used for market research for both the

segments horizontal and vertical. The company in which the research is done provided

the Questionnaire and an idea of its prospective clients.

SAMPLE SIZE Sample size for the research is fixed. It counts to 150. It includes both

corporate offices and institutes.

42

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 cost

only 150 users 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.

43

CHAPTER-4

Analysis and

Interpretation:

44

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%

45

INTERPRETATION: The sample size is of 150. Among which around 26% belongs to age group of below 20 years. 40% belongs to the age group of 20yrs-40yrs and 22% belong to age group of 40 yrs-60yrs. Majority of users are in the age group of 30yrs to 60yrs because this is the service class of higher job positions.

Q.2. Do you have own mobile?

Do u have own mobile No. of respondent (150) % of respondents

Yes 150 100

46

no 0 0

INTERPRETATION: The sample size is of 150. Among which around 100% of the respomdents have a mobile phone . Respondents are having mobile phones because of many reasons.

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%

47

Cost effectiveness 30 20%

other factor 15 10%

INTERPRETATION: The sample size is of 150. Among which around 14% belongs to those who have purchased a mobile phone with reference. 34% belongs to the group of people who have a mobile because of occupational needs. 22% belongs to the group of people who have a mobile because of their need of speedy communication . Majority of users are having a mobile phone because of occupational needs.

Q.4. Which Cell phone Company You Prefer?

48

INTERPRETATION: The sample size is of 150. Among which around 40% belongs to group of customers who prefer Nokia. 10% belongs to customers who prefer Samsung, 6% belong to customers who prefer Sony Ericsson , 16% belong to group who prefer Motorola and 28% customers prefer LG or other companies.

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%

49

Q.5 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%

50

INTERPRETATION: The sample size is of 150. Among which around 484% belongs to group of customers whose budget to but cell phone is less than 10,000. 16% belongs to customers whose budget to but cell phone is less than 10,000.

Q.6. 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%

51

INTERPRETATION: The sample size is of 150. Among which around 40% customers came to know about various Mobiles through Television Advertisements, 20% through Magazines, 16% through Newspaper , 14% through Internet and 10% through other media.

Q.7. Degree of Appearance and Style of Mobile for You?

Appearance & style No of respondents (150) % of respondents

Important 87 58%

Neutral 33 22%

Not important 30 20%

52

INTERPRETATION: The sample size is of 150. Among which around 66% belongs to group of customers for whom appearance and style of mobile phone is important. 22% belongs to the group of neutral customers regarding appearance and 12% belong to group of customers for whom appearance and style of mobile phone is not important.

Q.8. Degree of Reliability of Mobile for You?

53

Reliability No of respondents (150) % of respondents

Important 99 66%

Neutral 33 22%

Not important 18 12%

INTERPRETATION: The sample size is of 150. Among which around 66% belongs to group of customers for whom reliability of mobile phone is important. 22% belongs to the group of neutral customers regarding reliability and 12% belong to group of customers for whom reliability of mobile phone is not important.

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CHAPTER - 5

SWOT ANALYSIS:

Strength

Weakness

Opportunities

Threats

55

Nokia, as a one of the world’s largest telecommunications equipment manufactorers. In

telecommunication industry, nokia brand are famous and become a leading brand being

in MARKETS  and business that has expanded greatly in every area to fulfill the

customers needs. Nokia produces mobile and other telecomunications equiqment for

applications even for every main market and protocal which also include the GSM.

Strength

According to the Nokia, the strength of Nokia Company is the strong brand name they

have. Nokia release their products with more advantages than other because of the strong

name brand that acceptable, reliable and trustable for customers. Nokia also have a wide

network of promotion and selling their product which make Nokia stronger than the other

telecommunication company. Nokia Company has the group such as high quality and

professional teams in the Human Resource Development Department which make the

Nokia Company have a strong backed. Nokia’s product are user friendly and contain all

the accessories satisfy their customer, this is one of the reason that make Nokia become

No.1 selling mobile phones in the world. Their products are also affordable for all class

of people.

Weakness

Nokia Company is a successful company on the world but it still has some weakness. The

weakness like the product’s price that offered by the company. Although most of their

products are high quality and user friendly but the price is not. Some of the Nokia‘s

products are cannot afforded by some lower class of the society people. These led those

products hard to sell and make the MARKET of those product fail at the end.

Opportunity

Nokia has ample of opportunity to expand its business. With the wide range in products,

features and different price range for different people, it has an advantage over the

competitors around. With the opportunity like ‘Telecom penetration in India’ being at the

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peak time, Nokia has an opportunity to increase its sales as well as the MARKE T share.

As the standard of living in India has increased the purchasing power of the people as

increased as well, so Nokia has to target right customer at right time to gain the most out

of the situation.

Threats:

Nokia has many threats to tackle to maintain its position as MARK E T leader. The threats

like emerging of other mobile companies in the market. The companies like Motorola, 

Sony Eriksson, Cingular (U.S) etc. these companies have come to the stand of tough

competition with Nokia in the field of Mobile Phones. Threats can be like providing

cheap phones, new features, new style and type, good after sales service etc. So, Nokia

has to keep in mind the growing competition around. Nokia has to make strategies to

tackle problems in the present and the near future. The growing demand of WLL network

can cause drop in sales for Nokia, as Nokia provides many less CDMA phones to the

customer.

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CHAPTER - 6

Conclusion:

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, 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.

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CHAPTER - 7

Recommendation and Suggestions:

CUSTOMERS RELATED:

RETAILERS RELATED

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CUSTOMERS RELATED:

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.

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• 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.

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Bibliography

Test books

1.Kumar, Ramesh; Application Exercises in Management, Vikas Publishing House, 2004.

2.Varshney & Gupta; Marketing Management, Sultan Chand & Sons, 2005.

3.Kotler & Armstrong; Principles of Marketing Management, Prentice hall India, 2003

Websites

1. http://www.nokia.com/media-corporate%20profile

2. http://www.nokia.com/About%20nokia-Company%20History

3. http://www.indiainfoline.com/Markets/Company/Background/Company-Profile/nokia-

India-

Ltd/500096

4.

http://www.researchandmarkets.com/reports/2218915/nokia_india_limited_strategy_andr

eport

5. http://www.scribd.com/doc/36574274/ Nokia -Marketing-Strategies

6. http://www.slideshare.net/akash9453638626/copy-of- Nokia -2

7. http://www.studymode.com/subjects/marketing-mix-in- Nokia -page1.html

QUESTIONNAIRE

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1.name:…………………………………….. Date……………………………

Contact no………………………

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 ( )

63

Samsung ( )

Sony ericsson ( )

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?

64

T.V. ( )

Magazines ( )

Newspapers ( )

Internet ( )

Others ( )

12.Degree of appearance and style of mobile for you?

Important ( )

Neutral ( )

Not important ( )

13.Degree of reliability of mobile for you?

Important ( )

Neutral ( )

Not important ( )