NOKIA’S MARKETING STRATEGIES IN INDIA

VIT BUSINESS SCHOOL

BHOPAL

(SESSION 2024-25)

MAJOR PROJECT REPORT

A project report Submitted in partial fulfilments of the requirement for. The award of the
degree of Bachelor of Business Administrations.

By
ASHISH RATHORE
(Reg no. 22BBA10050)

Under the guidance of

DR. Abhishek RAJ

Assistant director

VIT Bhopal University, Madhya Pradesh

 DECLARATION

Ashish Rathore, a bonafide student of the VIT Business School, VIT University, Bhopal, hereby declare that the
Project report submitted in the partial fulfillment of Bachelor of Business Administration of the VIT University, is
my original work.
Date:
Place: Bhopal

Name: Ashish Rathore

 Acknowledgement

With immense pleasure, I Ashish Rathore submit my major project report as a part of the curriculum of
‘Bachelor of Business Administration’. I wish to thank all the people who gave me unending support.

I express my profound thanks to our major Project guide Dr. Abhishek Raj and all those who have directly
and indirectly guided and helped me in preparation of this major project report file.
Ashish Rathore- 22ƁBA10050
 Abstracts

This research studies the marketing strategies of Nokia, a high technology company in a
developing country India. The study attempts to check the role of marketing activities in
success of Nokia in India. After studying the past of the company and the history of Indian
mobile industry, Nokia’s marketing strategies are examined through secondary resources. Then
to check the effect on the consumers, semi-structured interviews of a few mobile phone dealers
in India are taken. Here, interviews as a tool of qualitative research is adopted to create a deep
understanding of the customers perceptions. To get a generalised view, mobile phone dealers
are interviewed as they deal with many consumers and can give the opinion of the market as a
whole. The findings advised that consumers preferred Nokia over all other brands due to
features of the phone. Features such as user friendliness, rough and tough body, long life etc
were believed to be the reasons of success. Though the marketing strategies have been
aggressive, they were not the reasons for high market share of the company.
 Table of Contents

ACKNOWLEDGEMENT

ABSTRACT

1. INTRODUCTION
• Introduction and Objective
• Outline of the Chapters
2. LITERATURE REVIEW
Introduction
• Country of Origin Effect
• Cultures
• Initialization and Globalization Theories
3. PIERCING AND DISTRIBUTIONS
• Pricing
• Distribution
* INDUSTRIAL ANALYSIS
• Mobile Phone Industry in India
• About Nokia
• Nokia in India
• Swot Analysis
4. RESEARCH METHODOLOGY
Introduction
• Primary data
• Secondary data
5. DATA INTERPRETATION
6. CONCLUSIONS
 Chapter 1
INTRODUCTION

1. INTRODUCTION AND OBJECTIVE

Day by day, mobile phones are turning into more of necessity then a luxury. The benefits of the
mobile phone are far too many. Ease of communication, the anywhere, anytime contact with
friends, relations, colleagues and in theory at least the efficiency brought to busy lives (Web
21).

Nokia’s growth in India has been substantial. They have led the market with 70% share for
long time now. What is interesting is that there is further scope of improvement in sales. It is a
high technology market and India being developing country, will see more and more subscribers
to this technology in the future.

As noted by, Olli-Pekka Kallasvuo, the president and chief executive of Finnish telecom giant
Nokia “India is now Nokia's second-largest market, displacing the U.S. and behind only China”
(Web 22). This research aims at studying the strategies applied by Nokia in India, and
analysing the effects of these strategies on the sales of the company.

For this purpose, secondary data in form of case studies and news articles have been used to
gather the information about the marketing strategies that were applied by Nokia in India. Then
dealers on Nokia in different parts of India were interviewed with semi-structured interviews to
check the impact of these strategies. The objective was to study the main reasons of success of
the market leader Nokia, and also to study the drawbacks of the company. It was intended to
study the areas where there was scope of improvement and note down some recommendations.
 CHAPTER 2

LITERATURE REVIEW

1. Introduction
“Reviewing the literature on a topic can… provide an academically enriching experience but
only if it is done properly.” Hart (1998) According to Hart, Literature review is of prime
importance to the research. To achieve this, review should be regarded as a process of
fundamental to any worthwhile research or development work in any subject irrespective of
discipline. It is the responsibility of the research student to find out what already exists in the
area in which research is intended to be done before doing the research itself. The researcher
will define framework of his work with the help of ideas and work of others.
As Burger says, ‘A literature review summarises the major findings of scholars and
researchers who have conducted research in the area you are interested in investigating’. The
literature review for this research will have its prime stress on theories of globalisation, effects
of culture on marketing of a product internationally, COO effect, comparison of Global and
Global strategies, pricing and distribution strategies for international firm strategy for
International brands. Here the attempt is to make a note of what has been written in context of
international marketing strategies of brands. 10 Instead of being specific, the review here is of
more of international marketing as whole instead of specifically on Nokia. What is noteworthy
is Nokia forms a part of the upcoming electronics industry and has an important role to play in
the developing markets of countries such as India.

2. Country of Origin (COO) Effect

As prion says, in developing a corporate imagery of a product, the importance of various

marketing mix variables (e.g. product appearance, brand name, price) is firmly established, as
well as that of the imagery elicited by a product’s COO. Hence now we need to define the
COO effect. In words of Mort & Duncan (2000), “COO effects can be summarised as the
effects generated by a product’s perceived geographic origin on the part of the customer and
how it affects the latter’s purchasing patterns”. It’s a tendency of consumers to generalise their
attitudes and opinions across products from a given country, the basis of this generalisation is
products familiarity and background with the country, and their own personal experiences of
product attributes such as “technological superiority”, “product quality”, “design”, “value for
money”, “status and esteem”, and “credibility of country-of origin” of a brand (Kinra,2006).
Systematic research for COO effect began in 1965 with Schooler’s article “Product bias in
central American common market”. It was considered to communicated by the phrase, “Made
in (name of country)” in 1980s, as noted by Bilkey and Nes (1982).
Influence of COO on the product quality perception was indicated by both empirical
observations and experiments in their research. As the research continued in the field, new
perspective developed new concepts. As Johansson et. al. (1985) believed, COO has been
defined as the country where the corporate headquarters of the company marketing the product
or brand is situated. Chao (1998), stressed on examining the multidimensional constructs of
the country concept and how they impact consumer evaluations of product and design
qualities. Specifically, country-of-assembly, country-of-design, and parts-source country are
incorporated into the research design. The reason for division of country of origin into
country-of assembly, country-of-design, and parts-source country is basically the trends
followed by global brands. Today most of the brands have production processes in developing
countries as the labour is cheap in such countries. Therefore, country of origin of brand may
not be the country of origin of the product.
3. Culture
It is a universally accepted fact that, ‘Management is the art of getting things done through (other)
people’. Here the stress is on work to be done and effort of others. Hence, the
pre-requisite for it to happen is that one knows both works to be done and the people through
which it has to be done. To understand people, it is very important to understand their back ground,
so that, present and future behaviour can be predicted. Their background can be determined by
having knowledge of the culture they belong to. (Hofstede, 1994)

“Culture may be reflected in general tendencies of persistent preference for particular states of
affairs over others, persistent preferences for specific social processes over others, and general
rules for selective attention, interpretation of environmental cues, and responses. It is generally
known that culture may provide detailed prescriptions (norms) for specific classes of situations
while leaving other domains relatively unregulated.” (Tse et al 1998).
Hofstede (1994) identified five dimensions of national culture, namely Appendix 1);
1. Power Distance – This is defined by the degree to which the less powerful people of the
organisation or institution accept and expect the power to be distributed unequally. The more
the power distance, the more is inequality. However, it is defined from below (less powerful
members) and not from above (more powerful members). It is a sign that inequality in the
society has been approved by the leaders as well as followers. This important as power and
inequality are particularly fundamental.

2. Individualism versus Collectivism – This is the degree to which individuals are integrated
into groups. The individualist societies are the ones where ties between individuals are loose.
It is expected that everyone will look after himself/herself and their immediate family.
Whereas in the collectivist societies, people are integrated into strong, unified in-groups,
usually extended families (with uncles, aunts and grandparents) from birth. These groups
continue protecting these people in exchange for unquestioning loyalty. This difference by
noted to be high amongst the countries and hence is of extreme significance.

3. Uncertainty Avoidance – It refers to society’s tolerance for uncertainty and ambiguity. This tells
us how much the members of society feel either uncomfortable or comfortable in
unstructured situations. These situations are novel, unknown, surprising and different from
usual. In cultures that avoid uncertainty, there is an attempt to minimise9 the possibility of
such situations by strict laws and rules, safety and security measures. These people tend to
be more emotional and motivated by inner nervous energy. It is exactly the opposite in
uncertainty accepting countries.
3.4. Internationalisation and Globalisation theories

Even though the concept of globalisation has been around for long, it was only in early 1980’s that it
became a topic of serious discussion among academics. Since then, the term has become a ubiquitous
and potent symbol of the age. Nevertheless, the exact meaning and significance of globalisation has been
and remains an intensely debatable topic across the academic

community, and beyond. In fact, in Jessop’s (1999) view, the definitions of globalisation in literature
remains “chaotic”. It is believed, that the reason for this probably is that globalisation is studied 18
independently from a number of disciplinary perspectives, each with its own disciplinary filter (Clark &
Knowles, 2003). Vignale (2001), defined Globalisation the best, “Globalisation involves developing
marketing strategies as though the world is a single entity, marketing standardised products in the same
way everywhere.

The internationalisation theories concentrate on decision to internationalise or deciding on which market

to enter and how to enter. Different approaches have been taken by different authors to solve this
problem of internationalisation. Though all the theories, to some extent depend on existence of market
information to inform internationalisation decisions.
 CHAPTER 3:
Pricing and Distribution

According to Solberg et. al. (2006), until their research, the literary topic of international pricing had not
been completely ignored by the scholars. However, the studies published till then stressed chiefly on the
normative dimension of international pricing. Hence, the emphasis had been laid on ‘how pricing
decisions ought to be made’ (Cavusgil 1988, 1996; Walters 1989; Weekly 1992).

They say that though a few of these studies have been based empirical evidence, the major drawback
amongst most of them had been that they have been less generalised. Either too broad and examined
only general nature of international pricing; too specific, focusing on a specific country’s exporter or
focused on issues such as the impact of technology international pricing, pricing in emerging markets,
the development of grey markets, and the control of the pricing mechanism under different
environmental conditions. International pricing decisions are inclined to be a function of the relationship
between the external, market-related complexities that shape firm operations and the capabilities of the
firm to respond effectively to these contingencies.

The importance of international pricing is going to improve. One of the reasons being ‘dynamics that
govern international marketing activities are likely to accelerate rather than slow down as a function of
faster technological progress, the proliferation of new products and services, intensifying global
competition, rapid changes in the global legal environment, and the economic uncertainty that these will
generate. To maintain the firm’s financial prosperity under these conditions, a better understanding of the
economic and competitive environment, the development of more sophisticated pricing strategies, and
the effective execution of these will become more important’ (e.g., Monroe 2003; Myers, Cavusgil,
and Diamantopoulos 2002).

Another reason being complexity, even though acts such as internet, regionalisation and attempt made
towards price harmonisation should make international pricing easier, but decision making in
international pricing will remain complex enterprise (Samiee and Anckar 1998).
Pricing acts as an essential function in the internationalising firm’s effort to be globally integrative yet
locally responsive. conducted at international However, the international pricing as a research topic as
been underdeveloped. The importance of role played by information in international pricing decision is
critical in nature. The vital reason behind this is, when the business is level, it is utmost important to
monitors wide array of influences that can affect the pricing decision and vary across markets.
[Link]
Once a corporation is well established in its market, it starts looking for new international markets. In
such cases chances are that it forays into an emerging market and to limit its exposure appoints a local
distributor. In the beginning, sales take off, revenues grow, and the entry is praised as a smart move. But
after a while, stagnation sets in and sales plateau. These partnerships nearly always blow up in the end.
Much of the blame lies with the multinationals themselves. What remains missing is the need to
understand how their new partners (local distributors) are different from the ones at home. The other
reason that can be noted is fault from the local distributors. The managers of the corporation observe that
the major hindrance in the path of growth is that the local distributor that got the company to a flying
start has run out of ideas. Mostly it is the management which finds faults in the work of distributor.
Some examples quoted by Arnold (2000) are: "The distributor didn't know how to grow the market” "The
distributors didn't invest in business growth” "The distributor just wasn't ambitious enough."

In both the cases the actual problem is difference in thinking of the company and the distributor. Neither
the multinational nor the distributor invests sufficiently in strategic marketing or in aggressive business
development in these ‘less developed’ markets. To work together it is important to be unidirectional and
go hand in hand.

Arnold (2000) discusses what goes wrong and why. According to him, most multinationals stumble onto
a stepwise strategy for penetrating markets in emerging countries through a series of unplanned actions to
reinvigorate sales. As the pattern recurs with entries into subsequent markets, this approach, dubbed the
"beachhead strategy," becomes official policy in many organisations. Hence, he laid seven rules of
international distribution.
Select distributors. Don't let them select you – Objective market assessment should lead to
strategic decision of entry into a new international market. However, Arnold (2000) noted that it
was not the case usually. His studies revealed that companies moved into new market as reaction
to proposals from prospective distributors. In fact, the most eager potential distributors may be
precisely the wrong people to partner with. So there is a need to find distributors, one should the
market led approach rather than distributor led.

1. Look for distributors capable of developing markets, rather than those with a few
obvious customer contacts –Multinational’s long-term goals should be kept in mind and
given prime importance while choosing the distributor and de-icing the terms of relationship.
As Arnold (2000) noted, "The most obvious distributor is not necessarily the best partner for
the long term". Hence

2. Treat the local distributors as long-term partners, not temporary market-entry

vehicles – There is a need to structure the relationships in such a way that the distributors
become marketing partners. Thus, will be willing to invest in long-term market
development.

3. Support market entry by committing money, managers, and proven marketing

ideas – It is very important for the multinational to maintain strategic control. For this
purpose, multinationals must commit adequate corporate resources. It holds particular
importance at the time of market entry, as the multinational are least certain about their
prospects in new countries.
4. From the start, maintain control over marketing strategy – Distributors should be
allowed to adapt a multinational's strategy to local conditions. However, multinationals should
pilot the planning sessions about the decision making. This helps the multinational to exploit
the full potential of a global marketing network.
5. Build links among national distributors at the earliest opportunity -The key
objective for the multinational establish a customer base in the new country. However, it is
important to create links among its national distributors as soon as possible. This will lead to
transfer of ideas and hence provide a better and consistent performance in the
implementation of internet.
 INDUSTRY ANALYSIS

3.2. Mobile phone industry in India

Mobile telephony was introduced in India in 1995. The first call was made by Nokia 2110 on
its own network. The start to this industry in India, however, was very slow. The Indian
government was not supportive to the new companies of the industry. As a result of unfriendly
telecom policies, high licensing fees and absence of a proper telecom regulatory body lead to
exit of these private players in the next few years.

The industry got a new life in 1999, when the Government of India announced a new telecom
policy. The plan was to provide telephones on demand by 2002. A major point of the policy
was to allow unrestricted private entry into almost all mobile service sectors. The mobile
service providers were allowed to share their infrastructures with other operators. It also helped
the private operators to break even faster by allowing them to migrate from fixed license to
one-time entry fee with revenue sharing.

However, by 2001, there was steady increase in the demand for mobile services. The private
companies concentrated on providing basic telephonic services to consumers. By 2002, the
industry was on a high, and with the popularity of mobile phones the customers started
demanding better services and lower prices. This led to new innovations and come out with
better products and services. In 2002, the industry’s growth got fuelled as incoming calls on
mobile phones were made free. The sudden increase in growth on mobile phone subscriber can
be seen in the following table:

Growth of mobiles phone subscriber

[Link] mobiles subscriber Time Taken

0 – 1 million 1995-1998

1-5 million 1998-2001

5-10 million 2001-2002

3.3. SWOT ANALYSIS

Strength
Dominant player in the smartphone market via majority ownership of Symbian and proprietary Series 60 user
interface.

• Projected to represent the majority of the 100M smartphones sold in the next 4 years.

• Huge market share.

• Large size enables

• Amortisation of Research and Development costs.

• Cost advantages.

• Strong brand position

• Second most popular brand in India.

Weaknesses:
• N-Gage is considered a flop.

• Increased role in Symbian gives Nokia a negative image, similar to Microsoft’s in the PC industry.

• Slow to adopt new trends:

• Example: Reluctance to produce clamshell phones, which are preferred by many customers.

• First clamshell model only launched this year.

Opportunities:
• Expand presence in the CDMA market (currently dominated by LG).

• Focus on emerging technologies like 3G and EDGE.

• Growth potential in new markets where cell phone adoption is still rising:

• Including India and other developing countries.

• Leverage infrastructure business:

• To gain preference and stronger positioning with carriers.

Threats:

• Delayed entry into the 3G sector:

• Risk of being displaced by competitors like Motorola, LG, NEC, etc.

• Aggressive market entry by Asian OEMs (e.g., TCL, Ningbo Bird).

• Rise of ODMs (e.g., HTC) enabling carriers to:

• Leverage customer power.

 CHAPTER 4: RESEARCH METHODOLOGY

4.1 Introduction
According to Malhotra (2005), Secondary data are data that are collected for some purpose
other than the problem at hand. Usually journals, existing reports, and statistics by public and
private authorities are used collect Secondary data. Here, the secondary data have been
collected using marketing journals and other existing reports that were based on the topic.
Specifically, a case study from ICFAI, India on “Nokia’s Strategy in India”. Secondary data
in this particular case helped the researcher to comprehend marketing strategies implemented
by Nokia in India. As a general rule stated by Malhotra (2005), “Examination of available
secondary data is a prerequisite to the collection of primary data. Start with secondary data.
Proceed to primary data only when the secondary data sources have been exhausted or yield
managerial returns.” The study hence, involved collection and analysis of primary data in
foundation with the secondary data.

According to Malhotra (2005), Secondary data are data that are collected for some purpose
other than the problem at hand. Usually journals, existing reports, and statistics by public and
private authorities are used collect Secondary data. Here, the secondary data have been
collected using marketing journals and other existing reports that were based on the topic.
Specifically, a case study from ICFAI, India on “Nokia’s Strategy in India”. Secondary data in
this particular case helped the researcher to comprehend marketing strategies implemented by
Nokia in India. As a general rule stated by Malhotra (2005), “Examination of available
secondary data is a prerequisite to the collection of primary data. Start with secondary data.
Proceed to primary data only when the secondary data sources have been exhausted or yield
managerial returns.” The study hence, involved collection and analysis of primary data in
foundation with the secondary data.
 CHAPTER 5

DATA REPRESENTATION AND INTERPRETATION

1. Gender of the Respondents

Male: 66.67%
Female: 33.33%

Sales

MALE FEMALE

2. Age Group of the Respondents

18-25: 80.95%
26-35: 19.05%

AGE PERCENTAGE

18- 25 80.95 %

26- 35 5. %
3 .Occupation of the
Respondents

Student: 76.19%
Working Professional: 23.81%
Sales

Student working pro 23.81%

4. Familiarity with Nokia as a Brand

Very familiar: 71.43%

Somewhat familiar: 28.57%
Sales

1st Qtr 2nd Qtr

f
5. Usage of Nokia Mobile Phones
Used in the past, but not now:
71.43% Yes, currently using:
19.05%
Never Used: 9.52%
Sales

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

6. Opinion on Nokia's Pricing Strategy in India
Reasonable: 52.38%
Affordable: 28.57%
Not Sure: 14.29%
Too expensive: 4.76%

Sales

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

7. Platforms Where Nokia Advertisements Are Recalled
I have not seen any Nokia advertisements:
20.00% TV Ads: 12.00%
Print Media (Newspapers: 10.00%
Magazines): 10.00%
Social Media (Instagram: 10.00%
Facebook: 10.00%
YouTube: 10.00%
etc.): 10.00%
Billboards &
Posters: 4.00% Online
Ads
(Google: 2.00% E-
commerce sites): 2.00%

Sales

TV Ads Newspaper 10.00% Magzines

Instagram Facebook Youtube
Posters Online Ads E-commerce
8. Perception of Nokia Competing with Other Brands
No: 71.43%
Yes: 14.29%
Not Sure: 14.29%

Sales

NO YES Not Sure

 5.1 Summary of survey
• Age Group Distribution:

o The majority of respondents (17) fall in the 18-25 age group, while only 4 respondents
belong to the 26-35 age group.

• Gender Breakdown:

o The survey had a higher participation of males (14 respondents) compared to females (7
respondents).
• Familiarity with Nokia:

o A large number of respondents (15) reported being very familiar with Nokia, while 6
respondents indicated that they were somewhat familiar with the brand.

• Perception of Nokia's Brand Image Improvement:

o When asked whether Nokia’s brand image has improved, 12 respondents said No, 5
respondents believed it had improved, and 4 were unsure.

• Past or Current Usage of Nokia Phones:

o Most respondents (15) had used Nokia phones in the past but no longer use them.
Currently, only 4 respondents still use Nokia phones, and 2 mentioned that they have
never used a Nokia phone.

• Effectiveness in Competing with Other Brands:

o A significant majority (15 respondents) felt that Nokia is not effectively competing with
other brands, while only 3 believed it is, and 3 were unsure.

5.2.: Hypothesis Testing Hypotheses and Results:

o Exploring Gender and Perception of Brand Improvement

o Null Hypothesis (H0): There is no significant relationship between gender and perception of
Nokia's brand improvement.

o Alternative Hypothesis (H1): There is a significant relationship between gender and

perception of Nokia's brand improvement.

o Result:

▪ The p-value was 0.638, which is greater than 0.05, meaning the result is statistically
insignificant.

▪ We fail to reject the null hypothesis.

▪ Conclusion: There is no significant relationship between gender and perception of

 o Alternative Hypothesis (H1): There is a significant relationship between age group and
perception of Nokia effectively competing with other brands.

o Result:

▪ The p-value was 0.574, which is also greater than 0.05, indicating a lack of statistical
significance.

▪ We fail to reject the null hypothesis.

▪ Conclusion: There is no significant relationship between age group and perception of

Nokia’s effectiveness in competing with other brands.

[Link] Research
“any kind of research that produces findings not arrived at by means of statistical procedures or
other means of quantification” (Golafshani, 2003).
It is believed that qualitative research originated in recent times. However, as noted by
Milliken (2001) noted, Hamilton (1994), believed that the real roots of qualitative research
could be traced back to an eighteenth – century disruption that occurred in the fortunes of
quantitative research.
Here, in order to explore the selected topic of the study, qualitative research is selected as the
means for research. Gephardt has defined three methodologies of qualitative research.
Positivism and post positivism are based on realism and involve comparisons of results and
findings with preliminary propositions. Interpretive research aims at understanding the actual
production of meanings and concepts used by social actors in real settings. Whereas, critical
postmodernism is a combination of critical theory and postmodern thought, which assumes that
realities are value laden and contain contradictions. Gephart(2004).

“A qualitative study is defined as an inquiry process of understanding a social or human

problem, based on building a complex, holistic picture, formed with words, reporting detailed
views of informants, and conducted in a natural setting” (Cresswell, 1994). Another way of
defining it is to say it focuses on "quality", a term referring to the essence or ambience of
something (Berg 1989). Others would say it involves a subjective methodology and yourself as
the research instrument (Adler & Adler 1987). A variety of empirical material is needed to be
collected and studied for the purpose of qualitative research. These include, case study,
personal experience, introspective, life story interview, observational, historical, interactional,
and visual texts that describe routine and problematic moments and meaning in individuals'
lives.
[Link] Research

Quantitative research methods are the orthodox way of researching. In very technical terms,
“Quantitative data is data expressing a certain quantity, amount or range. Usually, there are
measurement units associated with the data, e.g. meters, in the case of the height of a person. It
makes sense to set boundary limits to such data, and it is also meaningful to apply arithmetic
operations to the data” (UNECE). Quantitative Research methods are important and the
traditional form of data collection and analysis. We need to develop some understanding of this
them.

Quantitative research provides a more general outcome rather than more specific. Since the
answer is made exactly to what the question is, there is no scope extra input from the
interviewee. Also, there is no personal touch to encourage the interviewee to give concentrate
and give answer. Another problem being one cannot check the genuineness of data very easily.
However, when the sample is large or more generalized views are needed than quantitative
research method is a better option.

5.5. MARKETING STRATEGY

Marketing strategy of a company in a new country plays a vital role in determining its future in
that country. Knowing that Indian market is very different from other markets it was already
operating in, Nokia came up with an India–specific strategy or a global strategy. It adapted the
to Indian conditions by launching new products and enhancing the products with features
designed specifically for local customers, as well as promotional campaigns targeted at Indian
audience to gain a foothold in the market. To capture the widespread Indian market, it
developed an extensive distribution network which also helped it take its products to rural
markets in India. Here, to discuss the strategy, we consider the simple concept of 4 P’s,
namely; product (customization), price, place (distribution) and production.
[Link]
1998 was 51st year of Indian independence, hence Nokia provided the ring tone of National
song Sare Jahan Se Achha” in 5110 model. The introductory offer for this model also had
inter-changeable covers. The success of 5110 initiated Nokia to focus on feature-specific
localization. In1999, Hindi (national language, and mother tongue of 43% Indians) user
interface was provided in Nokia 3210. Also, Nokia also tied up with Sony music for top 20 hit
songs as ringtones. Nokia 3210, became an instant hit. The model 3610 was launched with an
enhancing Hindi text messaging facility in 2001.
The most successful customization came in 2003 when Nokia came with 1100 and 1108
specifically designed for Indian market. It had features of anti-slip grip, dust resistance and
torchlight. Since, in India people don’t know English in villages, Nokia came up with “Saral
Mobile Sandesh” (SMS in Hindi). Nokia sales increased from 58.2% in July 2003 to 59.6% in
July 2004.
Nokia was also the first handset manufacturer to launch games download in India in 2003. It
had spearheaded the industry in online distribution of tones, graphics and game downloads.
These services did not just increase their sale of mobile phones but were also fruitful as they
made huge profits by selling the games. In 2005, Nokia also launched games based on Indian
mythology namely ‘Makhan chor’ and ‘Swayamvar’. Both were arcade games involving two
most of the famous characters namely, Lord Krishna and Arjun.
Another feature that Nokia came up with attract youth was one which enabled the customer to
slide in his or her photograph or for that matter the loved ones,' in the picture frame behind the
phone. This was a part of Nokia 2112 model (CDMA), wherein the message is
clear-personalizing your phone. Earlier they had a similar feature in GSM handset Nokia 2100.
"We have made a personality statement through the campaign. The feel of the campaign is such
that it would evoke a 'sense of being,'" said Sanjay Biehl, Head of Marketing, Nokia India.
Menon, M. (2005).

Nokia also tied up with Bharti cellular in 2005 to customize its handsets through which its
users could access multimedia services by using an additional key on the mobile phone. Also
since many FM channels were introduced in India in early 2000’s, Nokia banked on the
opportunity by coming with FM phones attracting a lot of youth. Later on in 2005, Nokia came
with SMS services in other Indian languages including Marathi, Tamil, Bengali and Kannada.

[Link]
Pricing of the phones was of prime importance for success in India. Being a developing
country, the purchasing power of the people was not high as compared to other developed
countries. Research unveiled that phones of lower price range (below Rs8000 or $200 approx.)
amounted for 65% of the total sales in India. Nokia depended majorly on rural market,
therefore, pricing was a major success factor for the company. Nokia did achieve success in
India, in spite of the fact, that its handsets were not the cheapest in the market.
Nokia 1100, which was specially launched for India, was priced at Rs. 4000. This price,
although was at a premium as compared to entry level phones, but was enhanced with several
special features which were not available in other phones of the same price. The head of
marketing at Nokia India, Sanjay Biehl said, “The phone is a combination of product benefits
and pricing” (Web 14). This model further became the best-selling model ever in India. It also
increased the brand preference of Nokia from 66% to 77% within 9 months of its launch. This
show how nature of Indian consumer is value sensitive. The major strategical move by Nokia
in this regard was that it charged a lower price in India than most of other countries for the
same model.

[Link] (Distribution)
Mobile phones in India are considered as to be consumer durable, hence they are not just sold
through exclusive telecom retailers but also through general retailers. Nokia designed model its
distribution strategy on lines of FMCG business.
An important reason for the success of mobile phones in India was limited reach of the landline phones in
several parts of the country. By mid2005 the mobile phone sales in smaller towns and cities was higher
than those of the metropolitans. The sales in these urban markets were beginning to saturate. The
distribution in these small towns called for non-traditional channels. Nokia strengthened their distribution
network, and selected distributors from FMCG line or experience holders for durables or automobiles. In
fact, about a fifth of the mobile phone sales in India were consumer durables or service providers’ shops.

In 1995, Nokia tied up with HCL Infinite for sales and distribution of its phones and appointed
them as Nokia distributor for GSM handsets in India. HCL Infinite provided a complete range
of Nokia’s GSM mobile phones, data products and mobile services. The retail network they
developed was very strong and dedicated. They came up with Nokia Professional Canters
(NPCs), Nokia Priority Dealers (NPDs) and redistribution stockiest all over India. NPCs were
one stop shops for the complete range of Nokia mobile phones, batteries, chargers, accessories,
covers, hands free kits and car kits amongst others. It also provided the after sales services for
Nokia’s handsets. NPCs were multi brand retails outlets with 60% of their area dedicated to
Nokia. While redistribution stockists were for supplying handsets across India.

“Nokia Concept Store in Bangalore was the country's first concept store in India to provide
customers a complete experiential mobile experience. The store measures approximately 2,000
square feet and is designed to reflect the design ethic of the Nokia brand. The layout and
design of the store follows the same pattern as Nokia Concept Stores around the world to
guarantee an easy and informative shopping experience. With a simple-to-navigate setup, open
doorways and low glare lighting, the store provides a relaxed and satisfying customer
experience. The high-tech display terminals and dedicated areas for Imaging, Smart,
Multimedia, Business and Entry phones make it easy for the public to keep up to date on the
latest technologies and trends in the mobile industry.
[Link]
Nokia entered India with one for mobile services to start, and had to establish its non-popular
brand. To build credentials the company used both print and television campaigns. In the early
days, print media concentrated on Nokia’s status, global R&D and international awards won to
establish brand awareness. Even after the market grew, Nokia’s advertisements concentrated on
product attributes. Gaining acceptance of Indian consumer is not as simple as other countries.
India is a multicultural country, where people have strong believe in their mythology,
nationality and cultures and to add to it, their purchasing power was not as high as other
countries where Nokia was operating. Hence, to achieve approval of the mobile consumers in
India, Nokia decided to localize its products heavily. For the purpose of developing the
products specifically for markets with high population and low penetration, Nokia developed a
team called Mobile Entry Business Unit. Until 2003, Nokia used all their international
advertisements with slight modifications in India. For instance, the advertisement for NGAGE
showed two young persons’ getting bored stuck in traffic jam and then they show them combat
with super natural powers. It showed how NGAGE could help them pass their time. But it did
not have a very good effect on the Indian audience as they could not relate themselves to the
people over there. There was needed to make special advertisements for India. Nokia India
marked its special presence in advertisement world with ‘Made for India’ ad campaign on the
launch of Nokia 1100 (Appendix

3). This was the fourth advertisement created in India but created maximum stir in the industry.
The advertisement showed that the Nokia 1100 was launched first in India and addressed all
the concerns of Indian consumers. The advertisement made a clear deviation from hitherto hip
urban-focused advertisements that Nokia are known for. It aimed at highlighting the broad
appeal of mobile phones across all socio-economic segments of India. The aim was to
highlight Nokia’s Indian image.

[Link] and the Brand

Nokia was once the undisputed king of the mobile phone market. In 2007, it had a global
market share of over 40%. However, the company's success ended abruptly in the early 2010s,
as it was slow to adapt to the rise of smartphones. By 2013, Nokia had lost its market
leadership and was forced to sell its mobile phone business to Microsoft.

There are a number of reasons for Nokia's downfall. One reason was its resistance to change.
Nokia was content with its dominance in the feature phone market and was slow to embrace
the smartphone revolution. As a result, it was quickly overtaken by Apple and Samsung, who
were more innovative and customer-centric.

Another reason for Nokia's decline was its ineffective marketing strategies. The company's
marketing campaigns were often confusing and did not resonate with consumers. In contrast,
Apple and Samsung were very effective in marketing their products, creating a sense of
excitement and desire around their brands.
Finally, Nokia's relationship with Microsoft was also a factor in its downfall. The two
companies partnered in 2011, with Microsoft providing Nokia with the Windows Phone
operating system for its smartphones. However, the partnership was not a success. The
Windows Phone operating system was not popular with consumers, and Nokia's smartphone
sales continued to decline.
Despite its downfall, Nokia has since made a comeback. In 2016, the company acquired
Alcatel-Lucent, a leading provider of telecommunications networks. This acquisition has
helped Nokia to regain its position as a major player in the telecommunications industry. Nokia
is also now back in the smartphone market, with its latest devices running on the Android
operating system.

The success of the Nokia brand is a testament to the company's resilience. Nokia has faced
many challenges over the years, but it has always managed to bounce back. The company's
future is uncertain, but it is clear that Nokia is still a force to be reckoned with in the
telecommunications industry.

Here are some of the key factors that contributed to Nokia's success:

• Innovation: Nokia was always at the forefront of innovation in the mobile phone
market. The company was one of the first to introduce features like colour screens,
cameras, and internet connectivity to its phones.
• Quality: Nokia phones were known for their high quality and durability. This made
them a popular choice for consumers around the world.
• Branding: Nokia had a strong brand image that was associated with quality, innovation,
and reliability. This helped the company to build a loyal customer base.
• Distribution: Nokia had a strong distribution network that allowed it to sell its phones
in countries all over the world.

These factors helped Nokia to become the world's leading mobile phone manufacturer in the
early 2000s. However, the company's success came to an end as it was slow to adapt to the rise
of smartphones. Nokia's feature phones were no match for the iPhone and Android
smartphones, which offered a more user-friendly experience and a wider range of features.
Nokia's downfall is a cautionary tale about the importance of innovation and adaptation in the
tech industry. Companies that fail to keep up with the latest trends are likely to be left behind.
Nokia is now trying to make a comeback in the smartphone market, but it faces an uphill battle
against Apple, Samsung, and other major players.
 CHAPTER 6
Conclusion

NOKIA is the reckoned name in the mobile handset company. NOKIA is the India's largest
selling mobile handset company. This project report will be immensely helpful to NOKIA in
enhancing total customer demand & also to satisfy customers of different markets. This report
will help the company to determine the area where it has to concentrate for optimum customer
satisfaction & maximize its market share. To retain the leading position in the mobile handset
market, NOKIA should improve some of its handset features such as sound & display quality
and camera quality and also its look. From the project report, it is clear that over 46% of the
consumers use NOKIA handset, while the rest use handsets of other companies. The reason
behind this is that the sound systems of the NOKIA handset are not up to the mark rather not
standard and also NOKIA handset doesn't have an attractive look; they are very simple in
appearance. From the study it is also clear that a certain percentage of consumers have changed
their NOKIA handset and switched over to phones of other companies, because sound and
display are not good, as well as some customers are change the NOKIA handset for his
passion. So, NOKIA should improve their sound and display quality, and attractive look of
give their mobile a stylish look to attract customers. But this is fortunate, that a huge
percentage customer use NOKIA handset due to its battery legibility, low price, easy operation
and a good re - sale value.
So, from the above discussion it is clear that, an average group of customers use NOKIA
handsets. It is found from the study that many prospective customers are interested to buy
NOKIA handsets during promotional offers. So, if the company gives such promotional offers
then the sale will suddenly increase.

1. RESULT AND FINDING

1.1. Introduction
Nokia has been a well-known brand in India for decades. However, with the rise of
competitors like Samsung, Xiaomi, and OnePlus, its market position has changed
significantly. This report presents the findings of a consumer survey conducted to assess
Nokia’s marketing strategies, brand perception, and areas for improvement in India.
2. Key Findings
2.1. Brand Awareness & Perception
2.2. Familiarity: A majority (X%) of respondents are familiar with Nokia, with
many associating it with durability and reliability.
2.3. First Impressions: Common responses to the brand included “strong build
quality,” “nostalgic,” and “outdated”—indicating mixed perceptions.
2.4. Brand Image: Only Y% of respondents believe Nokia’s brand image has
improved in recent years, while Z% think it remains stagnant or has declined.
 ANNEXURE

QUESTIONS:

[Link]’s your age group?

• Below 18
• 18-25
• 26-35
• 36-45
• Above 45
[Link] do you identify?
• Male
• Female
• Other
[Link]’s your current occupation?
• Student
• Working Professional
• Business Owner
• Homemaker
• Other (Please specify)
[Link] well do you know Nokia as a brand?
• Very familiar – I know a lot about it!
• Somewhat familiar – I’ve heard of it but don’t know much.
• Not very familiar – Just a name I’ve come across.
• Never heard of it before.
[Link]’s the first thing that comes to your mind when you hear the name Nokia? (Feel free to

share your thoughts!)

[Link] your opinion, has Nokia’s brand image in India improved in recent years?
• Yes, they’ve made a comeback!
• No, not really.
• Not sure.

7◻ Have you ever used a Nokia phone?

• Yes, I’m using one right now!
• I used one in the past, but not anymore.
• Nope, never owned one.
8How do you feel about Nokia’s pricing in India?
• Too expensive
• Reasonable
• Affordable
• Not sure
[Link] have you seen Nokia ads? (Select all that apply)
• TV Ads
• Social Media (Instagram, Facebook, YouTube, etc.)
• Print Media (Newspapers, Magazines)
• Billboards & Posters
• Online Ads (Google, E-commerce sites)
• Haven’t seen any Nokia ads.
10. What features would make you consider buying a Nokia phone? (Tell us what you’d love
to see!)
11. Do you think Nokia is keeping up with brands like Samsung, Xiaomi, and OnePlus in
India?
• Yes, they’re competing well!
• No, they’re falling behind.
• Not sure.
[Link] would you suggest to Nokia to improve its market presence in India? (We’d love to
hear your ideas!)
BIBLIOGRAPHY:

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