SUMMER INTERNSHIP REPORT

ON

DISTRIBUTION EFFICACY OF NOKIA IN NOIDA AND

GHAZIABAD

REPORT SUBMITTED FOR THE REQUIREMENT OF

BBA ( CAM) PROGRAMME(INDRAPRASTHA UNIVERSITY DELHI)

(2008-2010 )

SUBMITTTED TO: SUBMITTED BY: ALOK KUMAR BBA (CAM) 3rd Semester

JSS ATE NOIDA C-20/1, SECTOR-62, NOIDA-201301

ACKNOWLEDGEMENT

The satisfaction and euphoria that accompany the successful

completion of any task would be incomplete without the

mention of the people who made it possible and whose

constant guidance and encouragement heads all efforts with

success.

I extend my gratitude and thankful to Mr. Abhyanand , HOD,

BBA Department , JSS ATE, Noida, who gave the valuable

time and guided me with the sense of humor deeply, without

his guidance and support, this report would not have been a

possibility to completion.

Also my gratitude to all my colleagues at my institute for their

valuable advice and moral support during my research report.

ALOK KUMARBBA (CAM) 3rd Semester

2

ABSTRACT

Nokia is the leader in the mobile phone market and has the most widespread distribution

system which is handled by HCL. Over the past few years the competition in the mobile

phone industry has been increasing making it difficult for Nokia to retain its market

share(71%).The customer base that Nokia has is very huge but the distribution plays a

critical role in deciding the position of the brand in the market.

The aim of this project was to study the market areas in Noida and Ghaziabad so as to

assess the distribution efficacy of Nokia, to identify the loop holes in the distribution

pattern to and suggest solution for the problems identified in the distribution . To

understand the market scenario, attitude of the retailers towards Nokia and the efficacy of

Nokia’s distribution a survey were conducted and conclusions were drawn. The results of

the project provide an insight about position of Nokia in the market & its market share,

its product offerings, effectiveness of it promotional schemes; prefer ability of the

brand, effectiveness of its distribution with respect to the competition existing in the

market. It also highlights the major problems faced by the retailers in the market with

respect to Nokia like delivery issues, unequal flow of information, customer complaint

responsiveness etc and certain solutions have been suggested and recommendations have

been given. The issues like retailers influence on the customer and the impact of the

promotion on sales have been touched briefly. In a nutshell the research is an excellent

tool to know the facts about the reach of Nokia in the market, its popularity, the strength

of the brand, the complaints regarding its distribution and the changes that the retailers

expect form the distribution system.

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The survey provides with a clear picture of the strengths and weaknesses of the brand and

the threats that are prevailing in the market for the brand due to increasing competition.

The final recommendations were drawn on the basis of this survey to increase the

effectiveness of Nokia’s distribution as well as the dealer satisfaction.

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TABLE OF CONTENTS

Sno. Content

1 Chapter -1 – INTRODUCTION

1.1 ABOUT HCL

Hcl infosystems

Hcl infinet

Hcl and Nokia

1.2 Mobile phone industry

1.3 About Nokia

1.3a Products of nokia

1.3b Product classification

1.3c Handsets Designs

1.3d Distribution system

1.3e Organised trade network

1.4 Major competition mobile phone brands

2 Chapter -2- RESEARCH DESIGN AND METHODOLOGY

2.1 Rationale

2.2 Scope

2.3 Problem formulation

2.4 Research problem

2.4a Objective

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2.4b Deliverables

2.4c Variables under study

2.5 Research design

2.5a Research Methodology

2.6 Data collection methods and forms

2.7 Sampling procedures

2.7a Target population

2.7b Sampling Frame

2.7c Sampling Technique

2.7d Sampling size

3 Chapter 3- ANALYSIS AND INTERPRETATION

3.1 Analysis

Q.1. Sales of 6 major brands brand

Q.2 Brand preference

Q.3 Retailers influence on customers

Q.4 Performance of Nokia in music category phones

Q.5 Brand preference in music category phones

Q.6 Effect of promotional schemes on sales

Q.7 Scheme preference

Q.8 Number of Sales visits by executives

Q.9 Help attained by these sales visits

Q.10 Issues regarding distribution of Nokia

3.2 Comparison of product offerings of different phone brands

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3.3 Current problems faced buy the retailers regarding distribution

of Nokia

3.4 Threats faced by Nokia in the market

4 Chapter 4- SUGGESTIONS AND RECOMMENDATIONS

Conclusion

5 Chapter 5- APPENDICES

Appendix 1- Questionnaire used in research

Appendix 2 – Excel tables

6 Chapter 6- REFERENCES

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LIST OF TABLES AND FIGURES

Sno. Tables and Figures

1 Table 1- Mobile handsets of Nokia

2 Table 2- Reasons for preference of Nokia

3 Table 3- Reasons for preference of Sony

4 Table 4- Reasons for preference of Sony in music category phones

5 Table 5- Reasons for preference of Nokia in music category phones

6 Table 6- Areas of improvement regarding distribution of Nokia

7 Table 7- Comparison of popular phones of various brands

8 Fig 1 – Handsets designs

9 Fig 2 – Distribution network for Nokia

10 Fig 3 – Distribution network for organised trade

11 Fig 4 – Sales of Nokia

12 Fig 5- Sales of Sony

13 Fig 6 – Sales of Samsung

14 Fig 7- Sales of Motorola

15 Fig 8- Sales of LG

16 Fig 9 – Sales of Spice

17 Fig 10- Sale of others

18 Fig 11 – Brand preference

19 Fig 12- Retailers influence on customers

20 Fig 13- Performance of Nokia in music phone category

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21 Fig 14- Brand preference in music phone category

22 Fig 15- Reasons for preference of Sony in music category

23 Fig 16- Effect of promotion on sales

24 Fig 17 – Preference of schemes by retailers

25 Fig 18- Sales visits by executives

26 Fig 19- Help given by executives through sales visits

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CHAPTER 1

INTRODUCTION

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1.1 ABOUT HCL

HCL is a leading global Technology and IT Enterprise with annual revenues of US$ 4.9

billion. The HCL Enterprise comprises two companies listed in India, HCL

Technologies and HCL Infosystems .The 3 decade old enterprise, founded in 1976, is

one of India's original IT garage start ups. Its range of offerings span R&D and

Technology Services, Enterprise and Applications Consulting, Remote Infrastructure

Management, BPO services, IT Hardware, Systems Integration and Distribution of

Technology and Telecom products in India. The HCL team comprises 53,000

professionals of diverse nationalities, operating across 18 countries including 360 points

of presence in India. HCL has global partnerships with several leading Fortune 1000

firms, including several IT and Technology majors.

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Source: www.hcl.in

HCL INFOSYSTEMS :

HCL Infosystems Ltd is one of the pioneers in the Indian IT market , with its origins in

1976. For over quarter of a century, it has developed and implemented solutions for

multiple market segments, across a range of technologies in India. It has been in the

forefront in introducing new technologies and solutions.

HCL Infosystems ( HCLI) draws it's strength from 30 years of experience in handling the

ever changing IT scenario , strong customer relationships , ability to provide the cutting

edge technology at best-value-for-money and on top of it , an excellent service & support

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infrastructure. Today HCL is country's premier information enabling company . It offers

one-stop-shop convenience to its diverse customers having an equally diverse set of

requirements. Be it a large multi-location enterprise, or a small/medium enterprise, or a

small office or a home, HCLI has a product range, sales & support capability to service

the needs of the customer. Last 30 years apart from knowledge & experience has also

given the company continuity in relationship with the customers, thereby increasing the

customer confidence in them.

HCL Infosystems strengths can be summarized as:

- Ability to understand customer's business and offer right technology

- Long standing relationship with customers

- Pan India support & service infrastructure

- Best-value-for-money offerings

Source: www.hclinfosystems.in

HCL INFINET:

HCL InfiNet is a 100% subsidiary of HCL Infosystems Ltd, India's premier information

enabling company. HCL InfiNet focuses on the ever-growing segment in Imaging,

Telecom and Communication products solutions and services. Now it has an exclusive

sale and support partnership with Toshiba Corporation, Japan, for sales and servicing of

its imaging and photocopier products. HCL InfiNet's product portfolio covers a range of

other office automation and communication products through alliances with world

leaders - including mobile communication products from Nokia, Duprinters from Duplo,

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LCD projectors from InFocus, Mass Mailing solutions from Pitney Bowes and voice and

telecommunication solutions from Ericsson. Through the pioneering presence of the HCL

group companies and the vast experience of the markets, HCL InfiNet has propelled itself

to the path of "Total Technology Integration". HCL InfiNet has established state-of-the-

art ATM / Frame-Relay IP based network infrastructure across 43 cities in the country

and offers an entire range of managed service.

HCL AND NOKIA:

HCL Infinet Ltd. tied up with world leaders in the mobile phone industry - Nokia in the

year 1995 for sale and service of Nokia Mobile Phones in India. The strong and customer

friendly product line from Nokia and the distribution strength and reach of HCL Infinet

Ltd. have helped in making Nokia Mobile Phones the most preferred brand of mobile

phones in India. The product portfolio includes complete range of GSM mobile phones

from Nokia, data products and mobile enhancements. HCL Infinet Ltd. over a period of

time has put in place a strong and dedicated retail network of Nokia Professional Centres,

Nokia Priority Dealers and Re-distribution Stockiests across the country.

The strong product line from Nokia and customer friendly service and national

distribution strength and reach of HCL Infinet Ltd. have helped in making Nokia Mobile

Phones the most preferred brand of mobile phones in India. HCL Infinet Ltd. over a

period of time has put in place a strong and dedicated retail network of Nokia

Professional Centres, Nokia Priority Dealers and Re-distribution Stockiest across the

country. HCL Infinet Ltd. also offers complete customer care solutions for any mobile

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phone related problems, through its nation wide network of Nokia Care Centres which

are manned by highly skilled technicians.

Source: www.hclinfinet.com

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1.2ABOUT MOBILE PHONE INDUSTRY IN INDIA:

With rapid consumerism sweeping the country, India has become the second largest

mobile handset market. More and more player are entering into the market and

establishing a strong position for themselves. Industry observers are of a view that India

has become a global hub for the mobile handset market because of the diversity of the

consumers in the country. The current market scenario is changing so rapidly because of

the introduction of new and more advanced mobile technologies and various VAS (value

added services) provided by the service providers. The market is growing so rapidly

because of customer today is willing to pay for upgrades , advanced models, value based

services etc. The Indian handset market is largely dominated by Nokia with a market

share of 71%, followed by Sony Ericsson (13%), Samsung (7%) and Motorola (5%)

others (4%) respectively.

The mobile phone industry in India is divided on the basis of the two mobile technologies

GSM (Global System for Mobile Communication) and CDMA (Code Division

Multiple Access). The main market player in market of GSM handsets are Nokia, Sony

Ericsson, Samsung , Motorola whereas other players like LG, Spice , Fly , Vodafone

have also entered this segment and are trying to make a position for themselves.

In the CDMA segment the market leaders are Reliance and Tata Indicom and now all the

other brands like Nokia , LG etc are also trying to enter this segment. Each brand is

giving a tough competition to one another and trying various schemes offers and most

importantly improving and expanding their product offering in order to increase their

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customer base. This rapid growth in the handsets market in India can be attributed to

many reasons.

Mobile phones have gained a lot of popularity and are considered to be great multimedia

tools. Mobile phones are being used for entertainment purposes due the introduction of

new features everyday. They have become more than just call making and receiving

devices. Mobile phone handsets now have more business-friendly applications that can

enhance anybody’s business. With emerging technology, mobile phones have become

more than communication devices; they are the tools to stay ahead of competitors and

peers in the present times. The consumers needs have changed drastically and this is the

major reason why the market and the handsets sales are escalating. The consumer

nowadays demand added features like Bluetooth, FM Radio, GPRS, EDGE, Camera,

MP3 Player etc.

With the increasing and changing demand of the consumers leading brands like Nokia are

finding it hard to retain their market share as the increasing demand in the market is

attracting new entrants. The mobile phone industry in the past few years has seen

entrance of new brands like Fly , Blue , Benque , HTC, etc.

The latest trend that the mobile handset industry has seen is the emergence of CHINESE

MOBILE handsets in the market. Which satisfy the two major needs of the customers-

advanced features and affordable pricing. This has emerged as a major thereat for the

existing leading mobile phone brands like Nokia, Sony etc. Along with this rapid increase

there are many complexities that are attached with the Indian market. The reason for the

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complexities are the type of customers, government regulations, regional/geographical

wireless infrastructure, and the purchasing power. Basically, in Indian market consumers

look at mobile handsets as a status symbols. And due to this there is a huge rise in the

demand for flashier and costlier phones.

The consumers are one aspect of the industry and the distribution is another. Mobile

phone industry is a part of the mobile phone Ecosystem in which the distribution channel

plays an important part of being the link between the consumer and the manufacturer.

This distribution generally involved distributors which provide material to retailers and

retailers sell it to consumers. For the product to be presented nicely and to be represented

as the best choice the retailer has to be satisfied. Retailer being the only link between the

consumer and the manufacturer it has become important for the leading players to

increase the efficacy of their distribution and dealer satisfaction in order to retain their

market share.

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FUTURE TRENDS IN THE MARKET:

As mobile handsets increasingly become commodities, low-cost competitors with a me-

too strategy will be entering the market. Size will be an advantage for them but not a

requirement. In mature markets, network operators will likely provide the necessary

distribution channels because they are looking for white label phones. In growth markets,

low-cost competitors will probably compete only locally because they will not have the

necessary market access and global reach. Their success will be threatened, but mostly by

new players offering even cheaper devices.( source- www.accenture.com) The big player

will continue to dominate the market with special emphasis on research and development

and distribution network for the wide reach.

In a nutshell innovation has been driving the industry. Today’s devices are much more

than simply mobile handsets. They offer a variety of features, ranging from PDA to

gaming functions to digital photography—and that is only the beginning. Wireless is

going broadband and setting the scene for video-telephony and more, based on 3G, Wi-

Fi, WiMax, and VoIP. Unrelated industries have become competitors overnight. Each of

these advances—and others like them—is reshaping the industry as a result competition

will intensify; price pressure will increase.

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1.3 ABOUT NOKIA

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

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

Nokia-deployed network. Nokia started its India operations in 1995, and presently

operates out of offices in New Delhi, Mumbai, Kolkata, Bangalore, Hyderabad and

Ahmedabad. The Indian operations comprises of the company’s handsets and network

infrastructure businesses, R&D facilities in Bangalore, Hyderabad and Mumbai and

manufacturing plant in Chennai.  The handset business is supported by a team of

professionals across 3 business groups namely Mobile Phones, Multimedia and

Enterprise solutions.

The company has grown manifold over the years with its manpower strength increasing

from 450 people in the year 2004 to close to 6000 people currently. 

Mobile phones

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

in India. The company has built a diverse product portfolio to meet the needs of different

consumer segments, ranging from entry level phones for first time subscribers to

advanced business devices and high performance multimedia devices for imaging, music

and gaming.

India is a very important country for Nokia and is amongst the top three markets for it

globally.  Nokia has been working closely with operators in India to increase

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geographical coverage and lower the total cost of ownership for consumers. The

company has also launched seven Nokia ‘Concept stores’ in Bangalore, Delhi, Jaipur,

Hyderabad, Chandigarh, Ludhiana and Chennai to provide customers a complete

experiential mobile experience. 

Infrastructure business

In the infrastructure business, Nokia Networks (now called Nokia Siemens Network) has

made significant progress in realizing business opportunities and increasing its market

share in India. Nokia Networks is now a key supplier to all the top five GSM operators

including Bharti, BSNL, Hutchison, IDEA and BPL.

Nokia has also set-up it’s Global Networks Solutions Center in Chennai, India. The

Solutions Center performs network operation tasks for selected operator customers in the

Asia Pacific region as well as Europe, the Middle East and Africa. 

Research & Development centers

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

Bangalore and Mumbai. These R&D hubs are staffed by engineers who are working on

next-generation packet-switched mobile technologies and communications solutions to

enhance corporate productivity.

Manufacturing in India

Nokia has set up its 10th manufacturing facility in Chennai, India to meet the burgeoning

demand for mobile devices in the country.

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Source: www.nokia.co.in

1.3 a. PRODUCT PORTFOLIO OF NOKIA:

Mobile phones: Everyone has a need to communicate and share. Nokia helps people to

fulfill this need and we help people feel close to what matters to them. We focus on

providing consumers with very human technology – technology that is intuitive, a joy to

use, and beautiful.

We are living in an era where connectivity is becoming truly necessary. Nokia is the

world leader in mobility, driving the transformation and growth of the converging

Internet and communications industries. Nokia makes a wide range of mobile devices and

provides people with experiences in music, navigation, video, television, imaging, games

and business mobility through these devices. Nokia also provides equipment, solutions

and services for communications networks.

Outline of the product ( mobile handsets) currently offered by Nokia in Indian

market: TABLE 1

Basic models Music phones N-Series E-Series

Nokia 1200

Nokia 1208

Nokia 1209

Nokia 1600

Nokia 5220

Nokia 5310

Nokia 5610

Nokia 5300

Nokia N-72

Nokia N-73

Nokia N-70

Nokia N- 76

Nokia E-50

Nokia E- 51

Nokia E- 61

Nokia E-61i

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Nokia 1650

Nokia 1680 classic

Nokia 2680

Nokia 2626

Nokia 2600 classic

Nokia 2630

Nokia 2760

Nokia 3110c

Nokia 3120

Nokia 3500classic

Nokia 3600

Nokia 5200

Nokia 5300

Nokia 5070

Nokia 5000

Nokia 6070

Nokia 6080

Nokia 6085

Nokia 6110

Nokia 6210

Nokia 6220 classic

Nokia 6233

Nokia 6288

Nokia 5320

Nokia 5700

Nokia N-70 music

edition

Nokia N-73 music

edition

Nokia N-78

Nokia N-81

Nokia N-81 8GB

Nokia N-82

Nokia N-95

Nokia N-95 8GB

Nokia N-96

Nokia E-65

Nokia E-66

Nokia E-71

Nokia E-90

communicator

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Nokia 6300

Nokia 6500 classic

Nokia 6500 slide

Nokia 6600 slide

Nokia 7500 prism

Nokia 7610

1.3b PRODUCT CLASSIFICATION OF NOKIA:

Nokia has divided its products in to the following five categories with respect to the

target market.

1. ENTRY SEGMENT – This segment includes phones with basic features. These phones

or handsets are designed for first time users and do not have any complex features , are

very easy to use and are provided to the customers at very affordable prices. This

segment includes handsets like 1200, 1208, 2626, 1650 etc.

2. CONNECT SEGMENT – This segment includes handsets which are especially designed

for people who want enhanced features and are very style conscious. The phones in this

segment have enhanced features like a basic camera, GPRS, etc. this segment focuses on

features, style and appeal and includes handsets like 3500, 3110c, 6233 etc.

3. LIVE SEGMENT - This segment offers handsets that are more design specific than just

style. This category of handsets comprise of the innovation segment which offers phones

24

that have different and intricate designs. This segment includes phones like 7500 prism,

5200, 5300 etc.

4. EXPLORE SEGMENT – This segment offers handsets which have enhanced multi

media features. This segment targets customers who enjoy and use various kinds of high

end multimedia features like EDGE, MMS, GPRS, MUSIC PLAYER, etc. This segment

includes all N- series phones offered by Nokia.

5. ACHIEVE SEGMENT- This segment offers all high end phones. Nokia also classifies

these phones as business phones and are targeted towards users that not only use a mobile

phone for multimedia features but also extensively use it for business purposes. The

handsets offered under this segment not only have multimedia features but also have

Microsoft Office etc. This includes all the E- series phones offered by Nokia.

25

1.3c HANDSETS OF NOKIA: Handsets of Nokia are divided into three basis designs:

FIG. 1 HANDSETS DESIGN

HANDSETS

CANDY

This style refers to the basis Bar phones and Nokia is heavily into this design.

CLAMSHELL

This design refers to the flap phones and very few models of this design is offered by Nokia. Motorola is heavily into flap phones

SLIDER

This refers to the slide phones and Nokia again does not offers many handsets in this design. LG is heavily into this design

26

1.3d DISTRIBUTION NETWORK OF NOKIA:

NOKIA – PARENT COMPANY

HCLDistribution Partner

RDS

Re- distribution Stockists

RDS – MDRe- Distribution Stockists

for Micro distributors

Dealers / Retailers

MRDSMicro Re-Distribution

Stockists

Dealers / Retailers

27

FIG. 2- Nokia’s Distribution Network

Mobile phones come under the category of consumer durable product and in this sector

effective distribution plays a very important and crucial role because it is through

distribution network only that the goods or services can be displayed or sold to the buyer

or the user. Distribution also play an important role as mobile phones need to be handled

with care as they are water, shock sensitive.

1. NOKIA- It is the parent company which manufactures the phones and delivers or sends

them to HCL for their further distribution in the market. Nokia has 10 manufacturing

units in India itself. HCL takes care of all the distribution function for Nokia.

2. HCL- It is the distribution partner of Nokia in India for GSM segment and provides all

distribution related services. It is HCL that handles the entire distribution network selects

the distributors which provide the goods to the retailers which further sell it in the market

to the consumers. The distribution network provided by HCL has enabled Nokia to have

such a wide reach in the market.

3. RE- DISTRIBUTION STOCKISTS- After receiving goods from Nokia HCL provide

goods to its wholesale buyers who are known as Re- distribution stockists. These

stockists buy the goods in bulk and further distribute them to retailers in the required

quantity.

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4. RE- DISTRIBUTION STOCKISTS FOR MICRO DISTRIBUTORS – HCL also has

certain Re distribution stockists that take care of micro distributors these are known as

Re- distribution stockists for micro distributors ( micro re-distributor stockists). These

stockists provide goods to various micro distributors who further provide goods to

retailers.

5. MICRO RE- DISTRIBUTOR STOCKISTS- These are various micro distributors who

come under or are taken care by one Re distribution stockists and buy goods from the

same and further distribute them to various retailers. This system helps in areas where

wider reach is required.

6. DEALERS/ RETAILERS- They purchase their goods from the distributors and perform

all the activities in selling the goods directly to the consumers.

DEALERS OF NOKIA IS DIVIDED IN TWO CATEGORIES:

1. NOKIA EXCLUSIVE DEALERS- They are also know as Nokia Priority Dealers and

sell only Nokia mobile phones and no other brands.

2. NON- EXCLUSIVE DEALERS – They are the multibrand dealers. They are the retailers

that sell all the brands along with Nokia.

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1.3e ORGANISED TRADE DISTRIBUTION CHANNEL:

Nokia also has organised trade distribution channel. Organised trade refers to selling the

goods through certain retail chains like Hot spot, Subhiksha. Etc.

FIG.3. Organised Trade.

For the distribution of Nokia mobile phones to certain retail chains HCL appoints

distributors who supply goods to these retail chains ( hot spot etc.) on a margin and

provide them with different and also better schemes than regular retailers.

1.4 MAJOR COMPETITORS OF NOKIA IN THE MARKET:

NOKIA- PARENT COMPANY

HCL- DISTRIBUTION PARTNER

APPOINTED DISTRIBUTORS

ORGANISED TRADE

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Indian market has seen a great growth in them mobile phone market recently. Many new

and big brands are entering the market and are making the mobile phone industry very

competitive. Currently Nokia is the most preferred brand in the market and has the

maximum market share but with the entry of more and more brands it is facing tough

competition. Major competitors in the market are:

1. SONY ERICSSON-

Sony Ericsson made its first joint mobile phone offering in India in March 2002 and now

offers a whole variety of mobile handsets to suit the needs of various target customers.

Its first series was T series which included low budget phones. Its J series has good sound

quality, they are amazingly small and are without camera. Sony Ericsson introduced the

Walkman-branded W series music phones. The W series include W300, W550, W600,

W700, W710, W800, W810, W850, W900 and W950. Sony Ericsson is the most strong

competitor of Nokia in the music phones category.

2. SAMSUNG –

Samsung is a very well known name in the electronics sector and it diversified its

business into the industry of telecommunications also. Samsung also offers a wide range

of mobile to suit the various needs of the customers and its main USP is the style and

31

design of the product. Samsung as a company heavily focuses on innovation and R&D

and thus emphasises on providing something new to its customers.

3. MOTOROLA -

Motorola India is headquartered at Gurgaon, Haryana, with offices at Delhi, Mumbai and

Bangalore. Motorola is known around the world as an innovator and leader in wireless

and broadband communications. As a pioneer in wireless communications, Motorola has

transformed the cell phone into an icon of personal technology — an integral part of daily

communications, data management and mobile entertainment. Motorola designs,

manufactures, sells and services wireless handsets. Motorola is a strong competitor and

its USP in the market is the flap phones and the slim design and look that it offers.

4. L.G –

LG is another very well known name in the electronics industry. It diversified itself into

the telecommunications business and offers customers a wide range of both GSM and

CDMA phones. Though due to tough competition from well known brands like Nokia it

has not been able to create a substantial market share for itself but in the CDMA category

it is very popular and has created a place for itself. LG is known for the innovative style

and design of its handsets.

6. SPICE-

32

Spice is another upcoming name in the mobile phone industry. It is very popular in the

CDMA segment but is still trying to fit in the GSM segment. Spice is known for its

affordable prices and unique offers.

33

CHAPTER -2

RESEARCH DESIGN AND

METHODOLOGY

34

2.1 RATIONALE:

The business advantage of this study are:

1. To help in understanding the market standing of Nokia in Noida and Ghaziabad markets

in comparison to the competition in the market.

2. To understand the factors that govern prefer ability of a mobile phone brand in the

market.

3. To understand till what extent is the wide distribution of Nokia helping

4. It helps to highlight the loopholes in the distribution network of Nokia on which the

brand can work in order to improve dealer satisfaction.

5. It provides an insight about the issues that the retailers face regarding Nokia’s

distribution. And also identifies the areas where the competition is gaining.

6. It highlights ways in which dealer satisfaction can be increased.

7. Helps to assess the efficacy of Nokia’s wide spread promotion.

8. Finally, after the market has been scanned and the analysis drawn suitable

recommendation could be made to improve the effectiveness of Nokia’s distribution

2.2 SCOPE:

The scope of my study is limited to the following brands who are the major players in the

mobile handsets market:

35

Nokia

Sony Ericsson

Samsung

Motorola

Spice

Fly

LG

Nokia is the most preferred and trusted mobile phone brand in the market with the

maximum market share and a wide spread network of retailers in Noida and Ghaziabad

who sell Nokia along with other major brands. As it is not possible to collect information

from all of them I have collected data about Nokia and other brands from 170 retailers

located in Noida and Ghaziabad. On the basis of this data I will be able to assess the

position of Nokia in comparison to the competition brand and also will be able to assess

the distribution efficacy of Nokia in Noida and Ghaziabad. This will help the company to

know the shortcomings of the distribution network and also till what extent is the wide

spread distribution helping the brand.

2.3 PROBLEM FORMULATION:

The business problem here would be to study the market because of the rising intense

competition in the mobile phone industry so as to assess Nokia as a brand in comparison

to its competitors in Noida and Ghaziabad in terms of the product offering, market

36

position, effectiveness of distribution and promotion, prefer ability of the brand in the

market. After a suitable pilot study representative of the whole market scenario, a

systematic questionnaire needs to be developed so as to conduct the final survey.

This project is restricted to the markets of Noida and Ghaziabad and the issues faced by

the retailers in the same region. The study however can be replicated across other

locations with basic changes.

This project only addresses the mobile phones offered by the above mentioned brands

in the market. It does not include any other products manufactured by them like

electronics, memory cards, etc.

RESEARCH PROBLEM:

2.4a Objective:

Primary Objective: To assess the distribution efficacy of Nokia in Noida and Ghaziabad

in comparison to the competition brands present in the market.

Secondary Objective: To assess the market position, product offering, promotional

effectiveness and prefer ability of the Nokia in comparison to competition brands.

Nokia has a large and wide spread distribution and a lot has been said about Nokia’s

reach in terms of its distribution. But with the increasing competition it became essential

to analyse the effectiveness of this distribution system in Noida and Ghaziabad. For

37

studying the distribution system it was important to study the brand. For this particular

study the goal was to assess the brand Nokia and its product offering in comparison to the

competition in the market and finally to assess the distribution efficacy of the existing

distribution network and to see whether there are any shortcomings that exist and if so

what these shortcoming and problems are, How these problems can be rectified , and

what are the specific issues of the retailers with Nokia’s distribution.

2.4b Deliverables:

1. To understand the effectiveness of distribution of Nokia in Noida and Ghaziabad

2. To understand the issues regarding the distribution of Nokia.

3. To understand the retailers perception and reason for prefer ability for various brands.

4. Also to understand the effectiveness of the current promotions of Nokia and the

comparison of its product offerings with other brands.

2.4c Variables under study:

1. Distribution effectiveness

2. Market position / sales

3. Market share

4. Product offering

5. Product attributes

6. Dealer satisfaction

38

7. Awareness

8. Sales visits by sales personnel( frequency)

9. Efficiency of sales personnel

10. Promotion effectiveness

11. Brand comparison

12. Brand preference

13. Retailer influence on customers

14. Shortcomings in distribution

15. Schemes

RESEARCH DESIGN

2.5a Research Methodology:

Selection of correct Methodology is very crucial to any research. Selecting the correct

methodology is the first step in getting a good result. It should be a method that helps in

extracting required and correct information from the population under study. To start

with a pilot study was conducted of 50 retailers in Noida and Ghaziabad. The purpose of

this study was to know the factors that affect the effectiveness of the distribution and

factors that constitute of major retailer attributes and dealer perception . The main factors

that were found based on the frequency of the response were then chosen to prepare a

structured questionnaire which was used to conduct the survey in Noida and Ghaziabad

39

The Research Objective was to ASSESS THE DISTRIBUTION EFFICACY OF

NOKIA IN NOIDA AND GHAZIABAD AND ALSO REVIEW THE PRODUCT

OFFERING AND EFFICACY OF ITS PROMOTION. The research design that was

adopted to achieve this objective was Exploratory Design as the study required indepth

analysis of various aspects of the brand and its distribution in order to determine the

effectiveness of the distribution of Nokia in Noida and Ghaziabad. Exploratory

Research is on the discovery of insights. Exploratory research is helpful in breaking

large problems statements into smaller more precise statements ( Source: Gilbert

A.Churchil, Jr, and Dawn Iacobucci MARKETING RESEARCH- Methodological

Foundation-9th Edition)

This design was best suited for such research as detailed information regarding the

retailers and their preferences, what brand are they promoting etc. were required and also

insights were required on the front whether distribution is effective or not, whether the

sales visits are timely or not and how effective and helpful are they . For the study a

structured questionnaire was designed by me which was filled by various retailers in the

area of Noida and Ghaziabad.

The data collected through the questionnaire will be analysed with the help of Microsoft

Excel.

2.6. RESEARCH AND DATA COLLECTION METHODS AND FORMS

The data that was collected for the research was first hand data i.e. PRIMARY DATA.

First hand data was required to find out the opinion and attitude of the retailers about the

40

distribution and services of Nokia. For the purpose of collection of data a

COMMUNCATION TECHNIQUE was used and a STRUCTURED( fixed alternatives

given) AND UNDISGUISED questionnaire was designed by using a combination of

Nominal and Ordinal scale of measurement. Ordinal scale was used for questions

where respondents had to rate the choices given. Two scales were used as the

organisation wanted the retailers to identify as well as rank certain attributes of the brand.

The questionnaire had structured questions with fixed alternatives and same questions

were asked to all the retailers. The research method included asking questions stated in

the questionnaire to such retailers and noting the responses. The responses of each retailer

were arranged in an organised manner using Excel and analysed with respect to finding

out the attitude of the retailers towards Nokia’s distribution. Finally, an overall analysis

was performed to correlate the responses of the retailers.

2.7SAMPLING PROCUDURE AND SAMPLE DESIGN:

2.7a Target Population:

The population is basically the sample size that provides the information about which

inferences are drawn. It should be clearly defined who should be included as a

prospective sample in the research to get the inference that has to be made. In my project

the target population includes:

MULTIBRAND REATAILERS IN NOIDA AND GHAZIABAD EXCLUDING

REATIL CHAINS.

41

2.7b Sampling Frame:

It is a representation of the elements of the target population. In my project I was given

the specified areas and the type of retailers that need to be surveyed.

2.7c Sampling technique:

The sampling technique that was adopted was that of Non Probability- JUDGEMENT

SAMPLING as the process of sampling involved personal judgment as there was no way

of estimating the probability of including a sample from such a wide frame.

The sample comprised of the retailers selected on the basis of certain factors 1) they

should be in the Noida and Ghaziabad region, 2) they should be multi brand outlets, 3)

the sample should not include retail chains. The main focus was on selecting a sample

which can provide some perspective on the research question and was being catered

through the same distribution network about which the research had to be done.

2.7d Sample Size:

The sample size was already determined by the organization and was communicated to

me. The sample size was of 170 retailers which included both retailers from Noida and

Ghaziabad.

42

CHAPTER – 3

ANALYSIS AND INTERPRETATION

43

3.1 ANALYSIS

A survey of 170 mobile phone dealers/ retailers was conducted which included 100

retailers from Noida and 70 from Ghaziabad. The survey was conducted to assess the

distribution efficacy of Nokia in the two of the major areas Noida and Ghaziabad. The

survey included retailers from both Noida and Ghaziabad.

Q.1. THE CONTRIBUTION THAT EACH BRAND MAKES TO THE SALES?

Nokia

0%0%

18%

61%

18%

1%0%

2%

less than 10%

10%

20%

30%

40%

50%

60%

60%and above

FIG. 4 SALE OF NOKIA

44

Finding: For 61% percent of the retailers said that 60% sales done are that of Nokia and

for 18% retailers sales of Nokia is more than 60% and for 18% retailers sales of Nokia is

50% and rest 50% is of the other existing brands. A very small percentage i.e. 2% of the

retailers say that Nokia has 40% sales.

Inference : The highest selling brand in the market is still Nokia and contributes mostly

to 60% of the sales of the retailers but a lot of other competition brands are also creating

market for themselves and are being liked and preferred by consumers and the reason

why became evident in the survey.

THE MAXIMUM THAT OTHER BRANDS CONTRIBUTE TO THE SALES IS

GIVEN BELOW:

45

Sony Ericsson

39%

44%

1%0% 0%

0%

0%

1%

15%less than 10%

10%

20%

30%

40%

50%

60%

60%and above

FIG.5 SALE OF SONY ERICSSON

Finding: Sony Ericsson is the one that comes closer to Nokia but still has not been able

to acquire as much of the market due to high popularity of Nokia in the market. 44% of

the retailers say that Sony Ericsson has 20% sales and 39% of them say that it has 10%

sales. Inference: Sony is the brand that has sales after Nokia but the difference between

the two is huge as Nokia sells around 60% and Sony maximum sells 20-25%

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FIG.6. SALE OF SAMSUNG

Finding: The maximum that Samsung contributes to the sales is 10% as 58% retailers

say that sales of Samsung is 10% and only 29% say that it is 20%..

Inference: Samsung is not a very good selling brand only a very small section of people

purchase Samsung and it mostly the sales go upto 10% only.

47

FIG.7 SALE OF MOTOROLA

Finding: Motorola almost like Samsung contributes 10% to the sales as the maximum

number of retailers (57%) say that sales of Motorola is 10% and the remaining 41% say

that it sells less than 5%. Samsung scores over Motorola as sales of Samsung go till 20%

also.

48

FIG.8 SALE OF LG

Finding: As far as LG is concerned the maximum it contributes to the sales of a retailer

is less than 5% . Thus it can be inferred that sale of LG does not go beyond

49

FIG.9. SALE OF SPICE

Finding: Spice is not a very good selling brand because 97% of the retailers say that it

sells less than 5% and only 3% say that it sales go till 10%.

50

others

0%

83%

1%

12%

1% 0%0%

0%3%

less than 10%

10%

20%

30%

40%

50%

60%

60%and above

FIG.10. SALE OF OTHER BRANDS

Q.2. WHICH BRAND DO YOU PREFER THE MOST? AND WHY?

51

FIG 11. BRAND PREFRENCE

Finding: The following graph depicts that Nokia is the most preferred brand not only by

customers but also by retailers as 135 out of 170 retailers( 80%) prefer Nokia and this can

be attributed to a lot of factors which became evident in the survey. The next brand that is

preferred is Sony( 18%) and then Samsung(2%). The likeness for other brands like Spice,

Motorola is very less.

Inference: Nokia is not only popular amongst the customers but the maximum number of

retailers prefer it because of its huge customer base in the market.

WHY IS NOKIA PREFERRED THE MOST? RATE THE ATTRIBUTES FROM 1

TO 8.

Finding: (TABLE-2 )

RANK ATTRIBUTE

1 Customer Preference

2 Better Product Quality

3 Better Product Features &Price

4 Good Distribution &Services

5 Better Margins

6 Better Promotion

52

7 Back End Support

8 Customer Care Support

Inference: The most important reason why retailers in Noida and Ghaziabad prefer

Nokia is because it

Is the most popular and preferred brand amongst the customers and the customers

demand Nokia as they consider it to be a reliable and user friendly brand.

Other than that Nokia also offers a good quality product with good features at an

affordable price which makes it easy to sell to the customers.

Then Nokia has a good distribution and provides good services like schemes to

retailers, credit services , good delivery . ensuring flow of information etc.

It can be clearly seen that instead of Margin being the driving force for preferring a

brand it is the demand of the customers on the basis on which favourability is based.

Thus it can be said that retailers are not entirely happy with Nokia as they want more

margin to be earned as it sells the most. This problem can be attributed to less availability

for schemes for retailers.

Nokia also has an advantage of effective and wide spread promotion

But there are certain attributes that do not add to the positive aspects of Nokia i.e.

Customer Care support. Most of the retailers said that Nokia has a very large customer

base but it doesn’t provide good customer care services and even the retailers cannot

support the brand on that as the customers are not satisfied with the services provided and

this can be a major reason for the customer to shift to another brand. Nokia really needs

to concentrate on providing after sale services to its customers along with a good product.

53

The customer care is not efficient because there is a single channel for customer

complaints which gets blocked due to the volume of complaints received.

Another reasons why Nokia is preferred is that are that it is USER FRIENDLY, EASY

TO UNDERSTAND, EXPLAIN AND SELL, HAS A GOOD POSITIVE IMAGE WITH

IN THE MARKET, AND OFFERS A WIDE RANGE OF HANSETS IN VARIOUS

PRICE RANGES.

Though maximum number of retailers preferred Nokia but a small percentage of

retailers i.e. 18% of the retailers said that they prefer SONY ERICSSON and

because of the following reasons it is better than Nokia.

Finding:

TABLE-3

RANK ATTRIBUTE

1 Better Product Quality

2 Better Margins

3 Good Distribution &Services

4 Customer Preference

5 Better Product Features &Price

6 Back End Support

7 Customer Care Support

8 Better Promotion

54

Inference: Certain retailers prefer Sony as it scores more than Nokia in certain areas:

Sony takes over Nokia in case of Quality of the product like it has better battery

backup, better sound quality etc.

The most important reason why certain retailers prefer Sony is the margin they earn on.

Though Sony does not have a huge customer base like Nokia but still the margin the

retailers earned was more.

A lot of retailers said that the distribution and services provided by Sony were better

than Nokia and that an executive visited very frequently to give information about the

new handsets and their demos.

Though Sony does not have a huge customer base as Nokia but due to good distribution

and quality a lot of retailers can convince and also do convince customers to buy Sony

Ericsson phones.

A very small percentage of retailers 2%s said that they prefer SAMSUNG that to

because the brand comes out with very stylish handsets in an affordable range.

55

Q.3. TO WHAT EXTENT YOU INFLUENCE THE PURCHASE OR BUYING

DECISION OF YOUR CUSTOMER?

FIG 12. RETAILER INFLUENCE ON CUSTOMERS

Finding: 32% of the retailers say that they can influence buying decision of the customer

up to 50-60% and 24% of the retailers say that they can influence a customers buying

decision 60% and above i.e. they can fully convince or influence the buying decision of

the customers. 28% of the retailers say that they can only influence the buying decision

upto 40-50% as a customer has certain fixed preferences. The remaining 16% say that

they are only able to influence the customer upto20-40%.

Inference: Through this graph it can be clearly seen that retailers not only sell brands but

also have the capability of influencing the decisions and changing the preferences of the

customers as maximum number of retailers can influence the decision of the customer up

to 60% . Retailers to a certain extent have the power of changing the decision of the

customer like if a customers has a preference towards Nokia but the retailer can influence

him and convince him to buy a Sony phone. It can be seen that the decision to buy a

56

0%0%13%

28%

32%

24%

3%

Less than 10%

10%-20%

20%-30%

30%-40%

40%-50%

50%-60%

60%aand above

certain phone brand is not only the customers decision alone retailers play a huge role in

making that decision.

57

Q.4. HOW DO YOU RATE NOKIA MUSIC SERIES PHONE? HOW ARE THEY

DOING IN THE MARKET?

58

1%

32%

48%

16%3%

Exceptionally good

Excellent

Very good

Good

Average

FIG13. PERFORMANCE OF NOKIA IN MUSIC PHONES CATEGORY

Finding: 48% of the retailers said that Nokia music phones are doing good in the market,

32% said they are doing very good , whereas 16% retailers said Nokia music phones are

doing average in the market. Whereas a very small percentage of retailers said that it is

doing exceptionally good.

Inference: Nokia is the leading mobile phone brand, but in case of music phones

maximum retailers think it is doing good in the market in comparison to other

competition brands. This reflects that other brands are doing better and giving Nokia

strong competition in the market as a very less percentage of retailers said that Nokia

music phones are doing exceptionally good. The reason why other brand is doing well

than Nokia or comes near Nokia in the music category became evident in the survey.

59

Q.5 WHICH BRAND IS MOST PREFERRED IN MUSIC CATEGORY IN

COMPARISON TO NOKIA?

91%

6% 3% 0%

SONY ERICSSON

SAMSUNG

MOTOROLA

LG

FIG.14 BRAND PREFRENCE IN MUSIC PHONE CATEGORY

60

Finding: 91% retailers said that Sony Ericsson is the brand which is preferred in music

category phones in comparison to Nokia and only 6% retailers said it is Samsung that is

preferred in music phone category and only 3% said that Motorola is preferred.

Inference: This graph depicts that in music phone category Nokia faces tough

competition from Sony Ericsson and that Sony is very popular in this category and the

reason why became evident in the survey and are discussed below. Thus first brand

preferred is Sony, Nokia, Samsung, Motorola.

WHY SONY ERICSSON IS PREFERRED?

61

FIG 15. REASONS FOR PREFRENCE OF SONY

Finding: TABLE-4

RANK ATTRIBUTE

1 Speaker Quality

2 Loudness

3 Consumer Pull

4 Pricing

Inference: Sony Ericsson is preferred mainly because its speaker quality and loudness is

better in comparison to Nokia music category phones. Most of the retailers say that Nokia

gains on consumer pull whereas Sony gains on the speaker quality and loudness of its

music phones and thus Sony is the brand which is preferred in music category phones in

comparison to Nokia. Most of the retailers say that when it comes to music phones

customers tend to prefer Sony and it becomes easier to sell Sony because the quality is

better than Nokia but still in comparison to Nokia Sony still does not have as huge as a

consumer base as Nokia.

62

FOR NOKIA IN CASE OF MUSIC PHONES THE RANKING IS

TABLE-5

RANK ATTRIBUTE

1 Consumer Pull

2 Speaker Quality

3 Loudness

4 Pricing

Q.6 HOW MUCH ANY PROMOTIONAL SCHEME HELPS YOU INCREASING

YOUR SALES VOLUME?

FIG.16. EFFECT OF SCHEMES ON SALES

63

Finding: 58% retailers said that promotional schemes help in increasing the sales by 10%

whereas 21% retailers said it helps in increasing the sales by only 5% and 12% said that it

helps in increasing the sales by 15% a very less percentage of retailers said that it

increases the sales by 20% or more.

Inference: Promotional schemes do help in increasing the sales to an extent but not to a

very large extent. Maximum number of retailers said that it only increases the sales upto

10%. This happens because maybe the schemes given are not very luring and effective in

attracting more customers and also because main focus of the customers is on the quality

and the price of the product and not on the schemes. Schemes only act as an incentive for

the customers and not as the main reason to buy therefore they are unable to increase the

sales to a large extent.

64

Q.7. WHAT SCHEMES DO YOU PREFER THE MOST?

35%

47%

18%

CONSUMER FOCUSEDSCHEMES

PURCHASE CENTRICSCHEMES

BOTH

FIG 17 . PREFERENCE OF SCHEMES

Finding: 47% of the retailers said they prefer purchase centric schemes and 35% of the

retailers said they prefer consumer focussed schemes and some retailers i.e. 18% said

they would like to have both types of schemes.

Inference: Most of the retailers prefer purchase centric schemes as they would like to

buy at lower prices and sell at higher to earn maximum profit. Thus Nokia should focus

more on providing purchase centric scheme and to an extent try to achieve a balance

between customer and purchase centric schemes.

65

Q.8. HOW MANY TIMES AN EXECUTIVE VISITS YOUR OUTLET IN A

WEEK?

15%

22%

28%

35%ONCE

TWICE

THRICE

DAILY

FIG.18. SALES VISIT

Finding: 35% of the retailers said that an executive visits them daily, 28% said an

executive visits them thrice a week, 15% retailers said and executive visits them once a

week only and 22% said an executive visits them twice a week.

Inference: Most of the retailers are visited by an executive daily but these retailers also

said that its mostly the salesperson that visits them for delivery of the handsets and that

doesn’t really help a lot in solving their problems. Certain retailers said that an executive

66

visit them only once a week and would like if the executive could visit them more

frequently. This less visit contribute to less effective distribution and this might occurs

because of geographical limitations.

67

Q.9 HOW DOES THE VISIT OF AN EXECUTIVE HELP YOU?

6%

28%

25%

14%

18%

9% PLACING ORDERS

GETTING INFORMATION

SCHEME UPDATE

PROBLEM SOLUTION

FEEDBACK OFPERFORMANCE

DOES'NT HELP

FIG 19. HELP GIVEN BY SALES PERSON

Finding: 28% of the retailers said that the executive helps them in getting information,

25% said it helps them in getting scheme update, 9% of the retailers said that the visit of

the executive only helps in delivery purpose and does not help in any other way. 18%

said that it helps is giving the feedback of performance, and 14% said it helps in solving

their problems.6% said it helps in placing orders because orders are generally placed on

the phone and the executive comes to deliver.

Inference: Visit of an executive helps the retailers in a lot of ways especially in getting

information about the latest handsets, about new models to be introduced, the executives

68

also help in providing information about the customer schemes and also new purchase

schemes and offer them new schemes on which they can buy the handsets. But still a

certain segment of retailers complaint that the executive does not help in any way except

delivering the handsets because most of them are salespersons and are not well informed

about any other aspect like schemes etc and they just deliver the goods and sometimes

check the sales only and also because of certain geographical constraints the executive is

only able to reach the retailers once in a week.

69

Q.10. WHAT ARE THE AREAS THAT YOU WOULD LIKE NOKIA TO

IMPROVE UPON? RATE IN ORDER OF PREFERENCE?

Finding:

TABLE 6

RANK AREA OF IMPROVEMENT

1 Customer Care

2 Margin

3 Delivery

4 Flow of Information

5 Material or Model Availability

Inference:

The maximum number of people said that they want Nokia to improve its customer

care because with such a large market share it should be able to cater to its customers

properly.

In the survey it also became clear that major sales are from Nokia and thus the retailers

want that they should earn more margin on it.

Delivery and flow of information is also an area where the retailers are not very

satisfied mainly because the retailers desire quicker delivery so that they do not loose out

on customers.

70

TABLE-7

3.2 POPULAR SELLING MODELS OF ALL THE BRANDS IN VARIOUS

PRICE BANDS IN THE MARKET

NOKIA SAMSUNG SONY LG MOT

OROLA

FLY SPICE

Sub 2000 1209

1208

1650

1200

B-100

2000-3000 2626 M-600 J-230i

K-310i

Bullet L-7

3000-5000 3110c

2630

E-250 ( slider

and mobile

tracker)

W-200i (music

phone)

5000-7000 3500

6233

E-210 ( has very

stylish looks)

W-380i

W-350i

Z-550i

LG

shine

7000-

10000

5310

N-72

W-580i

W-610i

71

Other

N series

phones

W-550i

10000-

12000

5610

N-73

E-65

i 450 ( music

phone)

D-880 (dual sim)

12000-

15000

N-76

N-81

W-890i

W910i

15&above N-95

N-82

Nokia sells the most in all the price bands but in case of music phone Sony provides a

better range with its walkman series. The models given above are the popular models of

each brand but as compared to Nokia no brand sells more except in music phone category

Sony is very popular and is the most preferred brand.

72

FINDINGS

73

3.3 CURRENT PROBLEMS WITH NOKIA’S DISTRIBUTION AS STATED BY

THE RETAILERS:

1.During the survey many retailers complained about the operational problem of the

distribution like delivery not being done on time, credit notes not being cleared on time

by the distributors, problems not being catered to etc.

2. Certain respondents also faced problems with irregular visits of the executives and o

face to face interaction with the retailers.

3. One of the recurring complaint was that of the customer care services. Most of the

respondents said that the complaints of the customers were not catered to in an efficient

manner.

4. Another recurring complaint was that of less margin being earned in comparison to

other brands. Many retailers said that as Nokia is the most selling brand and thus the

Margin earned should be better.

5. Many respondents complained about the less number of Purchase schemes offered to

them. They said that more schemes should be given so that they can earn more margin on

sales of Nokia.

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6. The customer schemes which are mass marketed lack punch and thus as it became

evident in the survey are unable to attract more customer and increase the sales

drastically.

7. Nokia to an extent fails to effectively communicate the customer schemes to the

retailers as maximum number of retailers could not recall any scheme offered by Nokia.

8. It also became evident in the survey that there is unequal flow of information as

many retailers complained about the unequal and improper flow of information specially

about introduction o new mobile sets.

9. Many retailers complaint that no executive comes to give training about the features

of the high end phones and demo of the new handsets being introduced.

10. Another issue that was highlighted through the survey was that of Nokia not having

good dealer relationship as a lot of retailers said that certain retailers are preferred over

others by the distributors and are given more credit leverage and better schemes.

11. A lot of respondents raised the problem of distribution of Nokia through Organised

trade – retail chains like HotSpot, Mobile Store etc. and how it is affecting the small

scale retailers as better offers are given to these retail chains.

75

12. Another problem that is faced by the retailers and acts as a hindrance for them in

keeping high end Nokia phones in their shop is that of PRICE PROTECTION. Many

retailers said that Nokia should increase the time period for price protection.

MODEL SPECEFIC PROBLEMS DISCUSSED:

1. Some retailers also pointed out that Nokia should introduce more models and

replace N- series so that something new is there to attract more customers.

2. Nokia’s model 6300 is a good phone but has a very bad battery backup, something

should be done about this so that the sales are not held back.

3. Some of the retailers complained that Nokia has a vide range but not enough in the

price band of 3000-5000.

4. Another issue that was raised by the retailers was that Nokia should experiment with

more styles and shapes for its handsets. Eg. like in 3000-5000 SamsungE-250 is popular

because it has a new style and look( slider).

3.4 THREATS FOR NOKIA IN THE MARKET:

1. The entry and popularity of the Chinese mobiles in the market. As they offer a lot of

features at affordable prices. Many retailers still selling multi brands have started

76

marketing themselves as Chinese mobile retailers to attract more customers. Eg.

MOBILE CARE ( BAZARIA, GHAZIABAD)

2. Inefficient Customer Care is the biggest limitation of Nokia and is the most recurring

complaint and also a reason why people shift to other brands.

3. Competition brands especially Sony is trying to bank upon the weak points of Nokia

like giving a longer price protection period , higher margin , better services etc. But still

Sony still hasn’t been able to create a huge customer base for itself so this still gives

Nokia the time to work on these issues.

4. Sony Ericsson is becoming very popular especially in the music category and offers a

wider range of mobile in the same category as compared to Nokia and is the most

preferred brand in the music phone category.

5. In terms of competition Motorola , Samsung are offering phones in lower price

brands which are very stylish and nowadays looks and style matter a lot especially

amongst the use. This is to an extent increasing the popularity of these brands.

6. It became evident in the survey that Nokia is mainly preferred because of the high

customer preference and Sony on the other hand is preferred for its quality and services

thus Nokia needs to work on creating a loyal set of retailers as their customers.

77

Most of the retailers commented especially in Noida that because of a huge market share

Nokia as a brand has become over- confident and not providing adequate services as

compared to other brands. This negative attitude of the retailers can be a threat to the

brand.

78

CHAPTER- 4

RECOMMENDATIONS AND

CONCLUSION

79

SUGGESTIONS AND RECOMMENDATIONS

1. Nokia needs to fill up these loop holes that exist in its distribution; what is evident

from the survey is that Customer Services remains a major problem for the brand. In

order to retain the market share we need to excel in customer services and customer

complaint responsiveness. There are various ways to address this issue:

Have a multiple complaint channels as channels tend to get choked due to the bulk of

complaints coming in everyday. Nokia Priority dealers can be used as centres where

complaints can be registered and can be dealt in an organised way.

The customer care personnel need be to trained properly for any kind of problem

handling and customer care executives should have updated database.

Usually the complaint is about the time it takes to rectify the problem. If a particular

complaint is taking time to get solved ; the customer should be kept in the loop and

should be intimated about the progress.

2. Nokia needs to provide better purchase centric schemes to the retailers. These schemes

can be given on a sales basis so that they solve dual purpose increasing the sales and

acting as an incentive for the retailers.

80

3. Nokia should come up with separate schemes for lower end or small retailers to maintain

a positive image with the retailers.

4. Quality of personnel is another issue. The brand needs to make sure that the various

distributors hire some executives who are well trained about the terminologies and

mobile technologies and the features of the new brands and can go and provide demo’s so

that the retailers are well informed and feel taken care of.

5. Nokia can aim at training the existing sales personnel to have a good interaction with the

retailers they visit so as to take an account of the problems faced by them.

6. Nokia also seems to lose out on communication with its customers when it comes to

promotional schemes and offers. Though Nokia is the most advertised brand but it lacks

that punch. The brand needs to focus more on the target audience specific schemes

because Nokia has this advantage of brand awareness and should use it to its advantage.

7. In the category of Music phones Nokia should introduce certain models which are stylish

and have better sound quality as Nokia has the consumer base and even if it has to give

that on a slightly higher price it should be justified by good and top quality.

8. Certain schemes that can be given to the customers are:

Lower end phones can be given with a free life time connection

81

Certain accessories can be given with the phone like mobile phone covers- also in

certain models like 6300 where mobile phone is given with a cover – THESE

ACCESSORIES SHOULD BE ADVERTISED by the retailers SO THAT THEY ARE

ABLE TO ATTRACT THE CUSTOMERS.

9. The distribution network of Nokia is very wide there are certain areas where other brands

have not reached like sector -3,4, Harola market in Noida , Govind puram in Ghaziabad ,

Certain areas on GT road, but in these areas distribution is not very effective and thus

Nokia should work on its distribution in these areas.

10. In the department of delivery the distributor can divide the sales force area wise so that

each area has and effective set of personnel carrying out the distribution service

effectively and timely delivery can be ensured.

11. Special segment of supervisors can be made who can periodically check on the

performance of the retailers, proper flow of information , etc.

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CONCLUSION

Nokia has 75-80% of the market share with the most wide spread distribution and still

has the maximum sales and is most preferred by the customers and the retailers because

of its huge market share. The project was aimed at assessing the distribution efficacy of

Nokia in Noida and Ghaziabad. The survey provided an insight about the various aspects

of Nokia’s distribution like delivery, dealer relation, Margin, Customer Care , Product

Quality etc. and unfolded the problems that the retailers faced regarding the distribution

and the changes they would like to take place. The survey also helped me to recognise

certain threats that the brand faced in the market. The conclusions drawn or the results

that were found out gave an insight about the effectiveness of Nokia’s distribution and

how satisfied the retailers are.

The main findings that were derived from the research were that Nokia is the highest

selling brand and is most preferred by the retailers because of its huge customer demand.

The brand that comes second to Nokia is Sony and is giving Nokia a good competition

especially in the Music category. In terms of distribution the retailers play an important

role and act as a major influencing power in the buying decision of the customers.

Another important aspect of the brand is its promotional schemes. Nokia is the most

highly promoted brand in terms of advertising but the promotional schemes offered by

the brand to its retailers lack the punch and are not able to increase the sales to a large

extent. The survey helped to find out certain loop holes that exist in the distribution of

Nokia related to the inefficient customer care service,

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unequal flow of information , irregular visits by the executive, lack of new purchase

schemes etc. To rectify these problems certain recommendations were given to develop

multiple channel network to handle the customer complaints. For the retailers it was

suggested that more purchase centric schemes should be offered on the basis of sales so

that they act as incentive. Suggestion regarding proper training of the existing personnel

was given so that they are well equipped to cater to the problems of the retailers.

Suggestions regarding proper flow of information, providing better services to low-end

retailers , and giving new customer schemes were also given.

In a nutshell Nokia still is the market leader but has to address certain problems of

distribution in order to increase dealer satisfaction and retain its market share.

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CHAPTER-5

APPENDICES

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APPENDIX 1

QUESTIONNAIRE USED IN THE STUDY:

1. How long have you been in the mobile phone dealership business?

- Less than a year - 1-3years - 3-6years

- 6- 9years - 10 years or above

2. What all mobile phone brands do you sell. And what is the share of each brand in the

sale?

10% 20% 30% 40% 50% 60% 60% &Above

Nokia

Samsung

LG

Spice

Motorola

Sony

Ericsson

Fly

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Any other –

3. Why do you prefer this brand the most? Rank in order of preference.1 being the most

imp. Factor & 8 being the least.

1 2` 3 4 5 6 7 8

Better quality of product

Good distribution &service

Back end support

Customer preference

Better margins

Better product features&

price

Better promotion

Customer care support

Any other-

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4. Which brand sells the most in the following price bands? And which model of each

brand sells the most?

Nokia Samsung Sony

ericsson

LG Motorola Fly Spice Any other

Sub 2000

2000-3000

3000-5000

5000-7000

7000-10000

10000-12000

12000-15000

15000 and

above

5. To What an extent you influence the purchase or buying decision of your customers?

Less than 10%

10% - 20%

20%-30%

30%-40%

40%-50%

50%-60%

60% and above

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6. How many days of stock you maintain for each brand?

1- 2

days

2-3 3-4 4-5 5-6 6 -8 Above

8

Nokia

Samsung

LG

Motorola

Spice

Fly

Sony

Ericsson

Any other-

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7. Do you sell Nokia Music series?? If Yes, how would you rate Nokia phones with

competition.

Exceptionally good

Excellent

Very good

Good

Average

8. Which other Brand is most preferred in music category after Nokia or near to Nokia,

and why – rate in order of preference.

Speaker

quality

loudness Consumer

pull

Pricing

Nokia

Samsung

Motorola

Sony Ericsson

LG

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9 .How much any promotional scheme helps you in increasing your sales volumes of a

specific brand.

5%

10%

15%

20%

Or More

10.What schemes do you prefer most?

Consumer focused schemes

Purchase centric schemes

11.Can you recall any major scheme in last 6 months of any Brand

12. How many times an executive visits your outlet in a week?

Once

Twice

Thrice

More than that specify-

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13. How does the visit of the executive help you?

Placing orders

Getting information

Scheme update

Problem solution

Feedback of performance

14. What are the areas that you would like Nokia improve upon. Rate in order of

importance?

1 2 3 4 5

Delivery

Customer care

Margin

Flow of information

Material or model availability

Any other -

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CHAPTER-6

REFERENCES

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WEBSITES:

www. Hcl.in

www.hclinfosystems.in

www.infinet.com

www. Nokia.co.in

www.univercell.in

www.gsmareana.com

ORGANISATION SOURCES:

Hcl infosytems database

Hcl Infosystems pricing list

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BOOKS:

Marketing research- Naresh Malhotra

Gilbert A.Churchil, Jr, and Dawn Iacobucci MARKETING RESEARCH-

Methodological Foundation-9th Edition)

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