Group MembersAakriti juneja (001) Amit Sharma(013) Ekta Chawla(052) Gaurav Chaudhary(058) Gaurav Sharma(059)

Flow of presentationy Reasons for chosing Nokia. y Indian handset market. y Indian telecom industry. y Indian handset market

y y y y

Introduction y Tagline y Product life cycle Product Pricing Promotion Distribution

Reasons to choose Nokiay Nokia has established itself as a household product not only in urban

parts of India but rural as well.y The most fascinating aspect of this brand being the accessibility and

affordability. Whether it s a beach or a remote hill station brand Nokia is available everywhere.y Others brands like Samsung and LG have started gaining immense

popularity but that they are only restricted to urban. Whereas Nokia going rural.y As against all the other brands which have associated themselves

to specific tags such as Sony Ericsson seen as camera , Blackberry seen as business Samsung seen as music .

Indian Handset Market : General Statementsy Is expected to record sales of 138.6 million in the current year y Fierce competition from local and Chinese manufacturers in the low cost segment y Fast changing consumer demand and shortening product life cycle times y 3G-enabled handsets are expected to account for 16.7 % of total sales in 2010, up from 9.2 % in 2009. y Rising demand for dual-sim phone

Indian Telecom IndustryAt 110.01 million connections ' Indian Telecom Industry' is the fifth largest and fastest growing in the world

The availability of the 3G spectrum has given hopes of finding about 275 million Indian subscribers using 3G-enabled services , exepected to take up the number of 3G-enabled handsets to reach near to 395 million by the end of 2013. Whereas the number of landlines is found gradually decreasing. Three types of players exists in ' Telecom Industry India ' community

1.State owned companies like - BSNL and MTNL. 2. Private Indian owned companies like - Reliance Infocomm and Tata Teleservices. 3. Foreign invested companies like - Hutchison-Essar, IdeaCellular,

Indian Handset Market : Actorsy Nokia market leader y Samsung is a very strong actor too y Home- grown handset maker: Spice, Micromax and Karbonn = 14% of the market in India

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kia has ma age t cater t every segme t a accessible prices.

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About the Companyy Nokia is the world largest telecommunication equipments manufacturers listed in NYSE as NOK. y Nokia Corporation is a Finland based multinational Company. y Fredrick Idestam found Nokia in 1865 and the current CEO is Olli Pekka Kallasvuo.

Place where you can find Nokia

Tagline conveys

This Idea of Connecting People by Nokia provides Service to people with the help of the Products

Nokia wants to convey that when you buy a nokia phone, you get access to all the services like:

Share on Ovi Nokia Friend View Nokia Messaging

The PLC of Nokia Handsetsy Development: Nokia typically gives a seven day window to its exclusive

stores which showcase the product and create the required hype.y Growth: Sales are high and margin contributions are quite good. The

product would probably be the category leader and demand would be high.y Maturity: During this stage Nokia creates a product platform depending on

the success of the product and would introduce an extension with mere cosmetic changes but at different price points .y Decline: Once the new introduction has increased in terms of volume and

value contribution, its predecessor would eventually be phased out. However Nokia also prolongs a products maturity stage by introducing new packaging, color or even enhancements and accessories.

Product

Nokia Segmentation of the Indian Markety Nokia lans its rod cts across all segments of the Indian demogra hics and they la nch atleast one rod ct in each arter for all its segments. y Nokia has een a le cater to majority of the Indian o lation. y Each arter is re ared kee ing demogra hical, sychological or hysiological factors.

For example: The E series is planned for the young executive though it has the E90 to cater to more senior people such as CEO, Entrepreneurs, etc.

The N series which is a multimedia segment is aimed to capture the college going and school children.

Nokia has makes consistent changes according to the market demands.

Nokia Portfolioy The portfolio of Nokia phones is divided into ten series each with distinct features. y As each series evolves additional benefits and experience are added to the same to give it an additional look and feel. y At a glance the brand portfolio looks like the following

Series 1 -Nokia 1xxx (basic) series Nokia's most affordable phones. Includes basic features like SMS text messages, alarm clock, reminders, etc.

Series 2 2xxx series (basic series) 2000 series are also entry-level phones. Contains more advanced features than the 1000 series Features color screens , Bluetooth and even A-GPS, such as in the case of the Nokia 2710.

Series 3 3xxx series Expression series Mid-range phones targeted towards the youth market. Some models targeted towards young male users, in contrast with the more unisex business-oriented 6000 series and the more feminine fashion-oriented 7000 series.

Series 4 5xxx series Active series Similar in features to the 3000 series, Features a rugged construction or contain extra features for music playback.

Series 5 6xxx series classic business series Nokia's largest family of phones. Consists mostly of mid-range to high-end phones containing a high amount of features. Notable for their conservative, unisex designs, which make them popular among business users.

Series 6 7xxx series Fashion and experimental series Family of Nokia phones with two uses. Targeted towards fashion-conscious users, particularly towards women. Considered to be a more consumer-oriented family of phones when contrasted to the business-oriented 6000 series.

Series 7 Modern series N series Nokia's most advanced smartphone series. For people who wish to have advanced multimedia and connectivity features and as many other features as possible into one device.

E series Enterprise-class series and includes business-optimized smart phones. C series Affordable series optimized for social networking and sharing. C1-00 and C2-00 are Dual-SIM phones, but for the Nokia C1-00, both SIM cards cannot be utilized at the same time.

X series Targets a young audience with a focus on music and entertainment.

Nokia product portfolio.xls

Nokia Product Portfolio-Introductiony Plans for each quarter in advance y R&D is done in Mumbai and Bangalore y Each product caters to a functional need y Nokia categorization criteria

Value Multimedia Lifestyle Business

Nokia Product Portfolio Descriptiony Nokia 1650: basic color, FM Radio - Value category y Nokia E51: business function (e-mail, doc editor, 2MP Camera) - Business category. y Nokia N-gage: gaming phone, a rage in amongst the youth y ALL the phones are designed keeping the behaviouristic segmentation in mind with the price people are wiling to pay.

Range of ProductsThe Connect Range Activities Lower income families Don t spend money on frivolous purposes Strong followers of culture The Explore Range Good purchasing power Young, want to have features choice Frequent changers of phones The Live Range Follow style The Achieve Range Power centric

Interests

More Like to own the confortable best gadgets with the unconventional Want to have their own signature style Like being conncted with the world

Opinion

Nokia Range of Products - Analysisy Nokia has traded up the models from entry level launches of less than 2k to increasingly at 2-3k y Nokia has changed its portfolio from simple multimedia to smarphones y Defensive position for dual sim phones y Nokia should prune its line and remove some phones

Launched a Rs 6000 handset loaded with full qwerty keypad, mobile e-mail service and access to social networking to counter competition challenge BB in the smartphone segment Using prices quite aggressively to counter and regain the lost market shares Nokia PLC: prolongs a product maturity stage by introducing new packaging, color etc s travel back

Pruning its Product Potfolioy BCG Matrix

Dogs products have to be pruned of the portfolio and the question mark have to be discussed. The Cash cows are not sustainable but supply cash for innovation

Pricingy Main criteria for buying any consumer electronic device in India. y Today the principle is low prices for perceived highend features. y Nokia s low cost models sparse on features. y Nokia caters to all segments of market

Nokia 1100 for lower segment of the market. Nokia 7600 & 3600 series as lifestyle phones Nokia has introduced high end sets like N900, N97 & many others to protect its market share in the high end business & smart phones. It has introduced Express music handsets in every price range category for those people who love music. Nokia has introduced low priced touch screen smart phones like N5233 , N5230 etc. to counter Samsung.

Pricing strategies that Nokia follow1. Market skimming Nokia 8250

2. Penetration Pricing Nokia 1100 3. Value Pricing Nokia E 63 Mobile

4. Product form pricing

5. Promotional Pricing1. Special Event Pricing 2. Low-Interest financing 3. Psychological Discounting

Blackberry v/s Nokia pricing strategies.Nokia has traded up the models from entry level launches of less than 2k to increasingly at 2-3k. Blackberry has made changes to its existing model to reposition. Both Explore and Live have fully loaded handsets in as minimum as in a price bracket of 4-6k The difference in the extension strategies for Nokia and Blackberry.

Nokia has traded up the models from entry level launches of less than 2k to increasingly at 2-3k Blackberry has also made changes in its product line by introducing the 8520 Gemini Curve which has helped reposition Blackberry from being an enterprise to multimedia solution. The Gemini offered at about 12k in the market has helped Blackberry to compete with the entire multimedia array of Nokia and other handset manufacturers. Nokia has increased the ASP of its existing product portfolio since the volumes were dwindling Nokia has taken a shift to value sales Nokia has clearly been changing its product portfolio from simple multimedia to smart phones.

Blackberry has also introduced some of the recent launches in less than Rs 20k which was quite uncommon for Blackberry. Introduced new design options such as the flip, slide and touch screen and all these point out only one thing, which Blackberry is evolving only in its software but also design and utility.

Blackberry launches conservatively and this helps the company focus more on each launch and also prevents internal cannibalization.

Blackberry also positions its product such that it can be compared across multiple Nokia products. Blackberry Bold was introduced and it gave competition Nokia E71 and E63. The products are such that they can be compared across many price points of Nokia.

Nokia has launched both defensively as well as offensively to undermine the products being made available by other brands and it is using its price quite aggressively as a strategy to counter and regain its lost market share. Nokia has strong product development resources and also has enough resources to operate in multiple segments simultaneously. The handsets market has many players and has shifted to being a loosely segmented market Pricing strategy of local & Chinese manufacturers.

Promotion

Promotion Mix Advertising.

Discounts.

Public Relation.

Direct Marketing.

The communication strategy of Nokia is to focus mainly on print and TV advertisements highlighting the emotional aspect to touch the lives of all.

y Nokia uses strongly integrated tools. y Nokia has a brand personality which it attracts customers who want to project the similar personality

y Creative concept:Nokia since years have kept the same tag line

CONNECTING PEOPLE .y Nokia is having a big target audience and so have had many different kinds of advertisement but never deviated from its main objective.

Priyanka Chopra ad in which the ad refers to easiness with which a person can connect with friends.

Nokia shahrukh Ad

Functional and psychological benefits Communication is the functional benefit of the ad. Shahrukh Khan is having a huge fan following in world and people feel satisfied and elevated after buying a product that is associated with their favourite celebrity.

Description The advertisement associates Nokia with Sharukh Khan and different periods in his life are shown to depict that he is a loyal and old consumer of Nokia and the message communicated was simply that the brand remained in the different successes of his life

This advertisement was launched during the Diwali with the tagline of Khareedo now ya Pachhtaao programmed keeping in mind the behaviour of the Indian consumer to buy during Diwali.

y Whatever the occasion maybe Nokia is Har Khushi Me Shamil y Nokia has been able to realise that it needs to overcome the cross cultural barriers and it truly has through its product design as well as its promotion strategies. y India is a family oriented culture. Nokia has used an element of relationships in all its commercials.

Postioning nokia for Lower middle class people Self Explainatory from picture

Advertising on virtual forums. E.g. Facebook

Nokia E90

y A young executive or any other corporate would prefer to buy a Nokia E90 simply because it reflects on his lifestyle and aspirations associate him with certain traits which are inherent with him.

Nokia 1650/2626 Ad

Functional benefits Digital FM radio Entry level Colour phone Games

Psychological benefits Style Self fulfilment Brand name , image and repute

Place.

Distributiony Nokia enjoys approximately 36 % market share and has over 200000

outlets with 700 support centers across 400 towns and cities to ensure that their handsets are available to their customers.y In rural India it enjoys 45% market share considering its high image of

quality and after sales service.y The most popular phone of Nokia in the rural market is the Nokia 1100

which has a torch, alarm and radio facility. y In April 2010, Nokia is believed to have crossed the 350 million mark of handset production.y There are three main distribution channels used by Nokia are as follows

Using the medium of distributor to superstockist to retailer who sells it to the final consumer

Via Nokia s own stores called the Nokia priority stores.

Via organized retail channels like Mobilestore to name a few.

Nokia Priority Centre at GIP Sector 18

Consumer Surveyy On the basis of consumer preference, majority of the peoples are

preferred NOKIA.y On the basis of occupation, the students are highly sensitive about

using cell phone y Social class impact on the evaluations of the attributes as people belonging to higher income group seem to be more technology savy and mobile sensitive . y New technical properties increase consumer willingness to acquire new phone models.

y The major option consumer consider when buying a mobile phone are y y y

y y

desired feature quality and brand . When choosing a brand a major factor taken into account is the trust . When choosing between different mobile phone models, especially lower income consumers have a price limit that restricts the choice to fewer models. In a price range ,Also, when choosing between different mobile phone models, consumers value familiar brands When choosing a brand a major factor taken into account is the trust of the brand

ConclusionNokia losing market share in high-end and high-margin smart phones to rivals. Nokia has recognized this and has hence launched most of its products in the smart phone category.

The above trend-line does show the effect of the revised product platform on its sales.

But with the coming of Chinese companies and local Indian companies Nokia has a huge threat because these companies offer much more than Nokia phones in terms of the functionality within this range. The lifecycle of Nokia phones is short than that it keeps coming out with newer models in short spans and keeps on discontinuing the older models so that the newer get acceptance. The transition from one phone to the other becomes smooth and doesn t let the share of one product to be eaten by the other. Nokia s late reaction to rapidly increasing market share market of dual sim mobile phones.

Recommandations for NokiaShould work on a localized launch such as that of nokia 1100 success ( made for india ) High price range phones are facing serious technical problem like hanging, it force the selling of that product to lower than expectation. As urban market is penetrated completely , more focus should be given to rural market to regain the earlier status of company with 2/3rd of market in hand. Overview of prices, it should be lower in comparison to other companies. More focus should be given on value for money. The ultimate test for nokia will be if it can replicate the tenacity, speed and consumer insight that won it leadership status in the handset space.