nokia analysis of marketing strategies with respect to nokia

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SUMMER TRAINING PROJECT CONSUMER PREFERENCE Undertaken at NOKIA PVT LTD

ACKNOWLEDGMENTI am grateful to my mentor Mr.Rohit Gupta who has helped me in the completion of this project. He has been a constant guiding force and source of motivation for me. It is entirely because of him that this project has attained its final shape. I would like to thank him for his valuable advice and guidance. I am also thankful to all the respondents who spared their valuable time for filling up the questionnaires and helped me out with this project. Finally, I would like to thank officers at NOKIA for there cooperation, which helped me in completing the project.

VAIBHAV SHAH

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CONTENTSExecutive Summary Chapter 1 : Introduction to the Industry Chapter 2 : Introduction to the company Chapter 3 : Research Objective and Methodology Chapter 4 : Data Analysis Chapter 5 : Recommendations and Conclusion Bibliography Annexure 6 7 12 34 39 51 55 57

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EXECUTIVE SUMMARYResearch has demonstrated conclusively that it is far more costly to win a new customer than it is to maintain an existing one. For this purpose it is essential to know the level of customer satisfaction. The focus of my research was the measurement of customer satisfaction level for the products provided by Nokia. The research was done for the corporate clients of Nokia.. Finally the results of the research verify the fact that keeping the customer satisfied is the best strategies to not only retain the existing customers but also to expand the business to new horizons.

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CHAPTER 1 INTRODUCTION TO THE INDUSTRY

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HISTORY OF MOBILES IN INDIA MobilesThe technology that gives a person the power to communicate anytime, anywhere - has spawned an entire industry in mobile communication. Mobile phones have become an internal part of the growth and efficiency of any business .The most prevalent wireless standard in the world today, is GSM. The GSM Association (Global System for Mobile Communications) was instituted in 1987 to promote and enlargen the adoption, development and development and evolution of the GSM standard . The GSM Association was formed as a result of a European Community agreement on the need to adopt common standards suitable for cross border European mobile communications. Starting off primarily as a European standard, the Group Special Mobile as it was then called, soon came to represent the Global System for Mobile Communications as it achieved the status of a world-wide standard. GSM is today, the world's leading digital standard accounting for 68.5% of the global digital wireless market. The Indian Government when considering the introduction of cellular services into the country, made a landmark decision to introduce the GSM standard, leapfrogging obsolescent technologies .

Although cellular licenses were made technology neutral in September 2005, all the private operators are presently offering only GSM based mobile services. The new licensees for the 4th cellular licenses that were awarded in July 2001 too, have opted for GSM technology to offer their mobile services.

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INDUSTRY PROFILEIn the early 1990s, the Indian government adopted a new economic policy aimed at improving India's competitiveness in the global markets and the rapid growth of exports. Key to achieving these goals was a world-class telecom infrastructure.

In India, the telecom service areas are divided into four metros (New Delhi, Mumbai, Chennai and Kolkata) and 20 circles, which roughly correspond to the states in India. The circles are further classified under "A," "B" and "C," with the "A" circle being the most attractive and "C" being the least attractive. The regulatory body at that time the Department of Telecommunications (DOT) allocated two cellular licenses for each metro and circle. Thirty-four licenses for GSM900 cellular services were auctioned to 22 firms in 1995. The first cellular service was provided by, Modi Telstra in Kolkata in August 1995. For the auction, it was stipulated that no firm can win in more than one metro, three circles or both. The circles of Jammu and Kashmir and Andaman and Nicobar had no bidders, while West Bengal and Assam had only one bidder each.

In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the Lok Sabha, and the president officially announced the TRAI ordinance on 25 January 2003. The government decided to set up TRAI to separate regulatory functions from policy formulation, licensing and telecom operations. Prior to the creation of TRAI, these functions were the sole responsibility of the DOT.

High license fees and excessive bids for the cellular licenses put tremendous financial burden on the operators, diverting funds away from network development and enhancements. As a result, by 2005 many operators failed to pay their license fees and were in danger of having their licenses withdrawn. In March 2005, a new telecom policy was put in place (New Telecom Policy 2005). Under this new policy, the old fixed-licensing regime was to be replaced by a revenue-sharing scheme whereby between 8-12 percent of cellular revenue were to be paid to the government.

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MOBILE HANDSET INDUSTRY

With rapid consumerism sweeping the country, India has emerged as the second largest mobile handset market, poised for explosive growth by 2008. Industry observers are of the view that market within the 2006-07 could well become a global hub for mobile handset manufacturers. With an eye on the impending growth opportunities, RNCOS's market research report India Mobile Handset Market (2005) analyzes the current market scenario and the technological developments driving the demand graph. The report, quoting the experts view, estimates that the total market value worth Rs.8.05billion (US $2billion) as of 2004/05 will surge by 62% with approximately 100million subscribers nationwide in 2007. The study further reveals that Indian mobile subscribers are willing to pay for upgrades, value-based services, and advanced models that provide better services.

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Dominated largely by Nokia with a total market share of 59%, followed by Samsung (13%) and Motorola (7%) respectively, Indian mobile handset market is currently catering to 45 million subscribers (2005). Recent records show that Indian GSM cellular user base has grown from 43 million, as estimated in May, to 45 million in 2005, representing a growth of 3.50% in the month under review, witnessing large and propitious foreign investors flooding the market eyeing for large chunks. In addition, recent changes imbibed in the government policies that price mobile handsets at a lower end with flexible custom-duty for new entrants are startling the market with multiple models largely aimed to higher and middle-income groups.

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CHAPTER 2 INTRODUCTION TO THE COMPANY

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COMPANY PROFILEABOUT NOKIANokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations. Nokia is a broadly held company with listings on four major exchanges.

HISTORICAL BACKGROUND At the beginning, Nokia was a manufacturer of paper in 1865. After World war II, the requirement of industrial products increased substantially. Nokia changed its function to an industrial enterprise and produced products like chemicals and rubbers. Until 1960s Nokia had set electronic department and focussed on developing transmission systems. The Journey into Tele-communications Nokias Cable Works Electronics Department started to conduct research into semiconductor technology in the 1960s.Nokia began to develop the digital switch (Nokia DX 200) which became a success. This was equipped with the high level computer language and Intel micro processors gradually evolved into the multifaceted platform that is still the basis for Nokias network infrastructure today.

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Focussing on Telecommunications During the deep recession in Finland at the beginning of the 1990s, the telecommunications and mobile phones divisions were the only supporting pillars of the Nokia. In May 1992,Nokia made the strategic decision to divest its non- core operations and focus on telecommunications. The companys 2100 series phone was an incredible success. Nokia Today Today, Nokia is a world leader in digital technologies, including mobile phones, telecommunications networks, wireless data solutions and multimedia terminals .Backed by its experience, innovation, user friendliness and secure solutions, the company has become the leading supplier of mobile phones ,fixed broadbands and IP networks. By adding mobility to the internet, Nokia creates new opportunities for companies and further enriches the daily lives of people.

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GROWTH

Nokia continued its recovery by taking 31.9 per cent of the market, up from 29.6 per cent a year ago. Motorola consolidated its strong second place, grabbing 17.9 per cent share, up from 15.7 per cent a year ago. The leading two sold 60.7m and 34m handsets respectively.

The gains came at the expense of third tier manufacturers and Siemens, which saw real unit shipments fall from 10.8m to 8.89m, a dramatic dip from 6.9 per cent share to 4.7 per cent share. On these figures, analysts must question the wisdom of BenQ's acquisition of the German giant's handset division.

Emerging markets in Asia, Eastern Europe and Africa led the way. But interest in replacing trusted handsets with 3G features wasn't particularly strong, notes Gartner.

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