NOKIA PVT. LTD.

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (BBA)

CONUSMER AWARENESS TOWARDS FOR NOKIA

TRAINING SUPERVISOR

SUBMITTED BY NEHA
ENROLLMENT NO. :08514701710

SESSION: 2010-2011
MAHARAJA AGARASEN INSTITUTE OF MANAGEMENT STUDIES

ACKNOWLEDGEMENT
I am sincerely thankful to all of those people who have been giving me any kind of assistance in the making of this project report I express gratitude to Ms. Varsha who has vast experience and knowledge and has been able to guide me, both successfully and ably to the completion of this project. I would hear by make the most of the opportunities by expressing my sincerest thanks to all my faculty of MAIMS whose teachings have given me the conceptual understanding and clarity of comprehension, which ultimately made my job easier. Last of all but not the least I would like to acknowledge my gratitude to the respondent without whom this survey would have been incomplete.

(BRANCH HEAD)

PREFACE
The Nokia model is based on strong economic logic for the existence of each tier, meaning each higher tier must generate sufficient value to the satisfaction of its immediate lower tier. Interlocking system of control and ownership ensures that this logic is never lost of sight the owners of Nokia - namely, the peoples have ensured that the organization never loses its independence and autonomy, and that no internal or external stakeholder can take me system for a ride. In order to protect and promote the peoples' interests, Nokia has been always engaged in lobbying activities. In terms of forward linkages, however, Nokia approximates a Japanese Keiretsu, wherein the different stakeholders join hands with each other to maximize the value of the enterprise. By its pricing and quality strategies, Nokia is always striking a balance between the interests of the consumer with those of its producers. Because of Its larger appeal, Nokia has truly symbolized the Connecting People. Its innovative advertisements have further reinforced its competitive power and appeal. Professional management of Nokia, which is always accountable to the members, has ensured excellent economic and financial management. Probably the most important component of Nokia's success is its visionary and dedicated leadership, which has spent its private resources not only to solve free rider's problem at every stage of collective action but also to protect the organization from predatory attacks from the external environment. Naturally, longer term success and reliability of the Nokia model depends upon whether and to what extent such visionary leadership can be recreated in the coming years.

TABLE OF CONTENTS
S.NO. 1. INTRODUCTION 1.1 1.2 1.3 1.4 1.5 2. 2.1 2.2 2.3 2.4 2.5 2.6 3. 4. 5. 6. OVERVIEW OF THE INDUSTRY PROFILE OF THE COMPANY PROBLEMS OF THE COMPANY COMPETITION INFORMATION S.W.O.T. ANALYSIS SIGNIFICANCE MANAGERIAL USEFULNESS OF THE STUDY OBJECTIVE OF THE STUDY SCOPE OF THE STUDY METHODOLOGY LIMITATIONS TITLE PAGE NO. 1 2 5 15 16 16 19 20 21 22 23 23 29 30 37 58 62 66 69

RESEARCH METHODOLOGY

CONCEPTUAL DISCUSSION DATA ANALYSIS FINDINGS CONCLUSION AND RECOMMENDATIONS ANNEXURE BIBLIOGRAPHY

Chapter 1 INTRODUCTION

INTRODUCTION 1.1 OVERVIEW OF THE INDUSTRY HISTORY OF MOBILES IN INDIA

Mobiles
The 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.

In 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 revenuesharing scheme whereby between 8-12 percent of cellular revenue were to be paid to the government.

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 100-million 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.

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.

1.2

PROFILE OF THE COMPANY

ABOUT NOKIA
Nokia 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. 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.

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.

Mission Statement, Strategy and Purposes of Nokia Mission Statement Customer To maintain customer confidence by continuing to provide quality service specifically designed to meet their needs. Market To be recognised as a market innovator in the mobile phone industry to continuing to improve our business practise. Business To ensure the team has a complete understanding of all Mobile Network Internal Systems and Procedures and that each team member is responsible for compliance with the Business Management System. Training To develop on going training strategies to empower personnel with skill levels essential for future company success.

The Team To create the best possible working environment, promoting career enhancement and job security, encouraging trust in the company and loyalty to the customer.

ORGANIZATIONAL STRUCTURE BOARD OF DIRECTOR

MANAGING DIRECTOR

CHIEF GENERAL MANAGER

GENERAL MANAGER

ASSISTANT GENERAL MANAGER

EXECUTIVE

DEPUTY EXECUTIVE

ASSISTANT EXECUTIVE

SENIOR EXECUTIVE

JUNIOR EXECUTIVE

FIELD SALES REPRESENTATION

DISTRIBUTION CHANNEL

MEMBER UNION (PLANT)

DEPOT GODOWN

DISTRIBUTOR

RETAILERS

CONSUMER

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1.3

PROBLEMS OF THE ORGANIZATION

The company plans its raw material requirement from the sales projection, which was done by the marketing department of the company. At the end of every month, marketing department creates its budgeted sales for the existing product and new products. Marketing department creates its budgeted sales by considering demand of the product, actual sales in the previous month and the sales in the current month of the previous year.

Production, Planning and Material Control Department (PPMC) is based on the sales projection and calculates the requirement of the raw material for each department for each product. PPMC department authenticates raw material issued.

After the PPMC Department calculates the requirement of the raw materials, the purchasing department places an order to the vendor or supplier for each department. Then the supplier dispatches the material in the factory premises.

Now the raw material proceeds through the testing process. Here it is checked whether the raw material is as per the standard quality prescribed by company at the time of placing an order. At the time of testing they also allocate specific identification number to each material so that it can be referred at the time of production, if any defect occurs. Then raw materials are issued to the production department.

Company is following batch production process. They assign the batch number and lot number so that if any problem occurs while it is consumed they can detect the fault.

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1.4

COMPETITORS INFORMATION

Motorola India Ltd.

Motorola is a Fortune 100 global communications leader that provides Seamless Mobility products and solutions across broadband, embedded systems and wireless networks. Seamless Mobility harnesses the power of technology convergence and enables smarter, faster, cost-effective and flexible communication to reach the people, things and information you need at your home, auto, workplace and all spaces in between. Motorola is structured into the following three businesses: Mobile devices; networks & enterprise and connected home solutions. A leader in multi-mode, multi-band communications products and technologies, Mobile Devices division designs, sells and services wireless subscriber and server equipment for cellular systems, portable energy storage products and systems, servers and software solutions, related software and accessory products. The Networks & Enterprise group is advancing seamless mobility with innovative technology solutions, as well as a billion dollar services business with an expanded portfolio delivering support, integration, applications and management In connected home solutions, a scalable, integrated end-to-end system is provided for the delivery of broadband services that keep consumers informed, entertained and connected. Motorola has developed India as a global hub for cutting edge R&D work, including technologies and applications of the future, enabling the Seamless Mobility experience. India is also a major centre for sourcing software solutions.

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Some facts: Motorola opened its first R&D facility in India in 1991 and has 5 R&D centers in the country now. The R&D centers at Bangalore and Hyderabad are engaged in creating the technology, applications and unifying architecture to realize Motorola's vision of Seamless Mobility, and software development for the various communications solutions that Motorola offers globally. India is the hub for creating products for regional and emerging markets. India firsts First to launch sub US $40 handsets in India (April 2005). Deployed India's first commercial GPRS network in Mumbai in 2002. Set up the country's first WLL based CDMA network in Madhya Pradesh in 1998. Deployed India's single largest end-to-end GSM network for a region in South India in 2002-03. Commissioned India's first Tetra System with Delhi Metro Rail in 2002. Motorola Radios inducted by the Indian Army in 2002. Partnered with the state of Rajasthan to build a wireless broadband grid using its MOTOwi4 Canopy platform. First to launch sub-US$ 40 handset in the country. Sub-US$ 30 MOTOFONE premiered in November 2006.

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Sony Ericsson Mobile Communications

Ericsson, the world leader in telecommunications has been associated with the Indian telecom industry for nearly 100 years. Headquartered in Delhi, Ericsson today has more than 500 employees across 16 offices in the country. From Basic Telephony, Intelligent Networks, Datacom and the most advanced computer telecom integration to mobile office applications, multimedia communications and Software Design Centres, Ericsson offers a complete spectrum of telecom solutions.Ericssons first documented transaction in India (sale of an open wire system) was way back in 1903. Since then Ericsson has contributed in just about every facet of telecommunications in India. Since 1994, when cellular services came to India, Ericsson has envisioned being a key partner in the growth of countrys cellular revolution. It enjoys the unique ability to provide complete cellular solutions on a turnkey basis; from planning, engineering and supplying all constituent parts, to installation, training and field support. Today, Ericsson is fast upgrading and expanding the cellular services in the heart of India building a strong and reliable network. Ericsson has played a key role in spreading the cellular revolution in the country. With 23 out of 43 GSM networks established by Ericsson in India, the company today has a market share of more than 40%, establishing it as a one of the stronger players in GSM infrastructure network. Fly Mobile Limited

Fly Mobile Limited brings you the best value in mobile phones.

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All our phones look great, have all the latest features and are high quality - but most of all, are fantastic value. Every Fly phone is packed with up to the minute features, including camera, video camera, music player with memory card and Bluetooth to store and share your tunes, and many boast touch screen technology. Each one is rigorously tested to make sure that it works really well, keeping you in touch via both voice and text. Most importantly, each one is brought to you at the best possible price, so you can enjoy the latest technology without having to pay through the nose. SAMSUNG

Samsung Electronics supports 21st century information communication through its advanced telecommunication service including its ultramodern mobile phones and high-speed wireless broadband internet service. Especially, our mobile phones are widely used in Europe, America and Asia, and we have won many design awards. Samsungs mobile phones , which aim to be the Worlds first, worlds best, are appreciated for their functions and designs in many countries all over the world, as is seen from the fact that they are called the Benz of mobile phones in Europe and a symbol of wealth in China. Moreover, we have been an official sponsor of the Olympic Games in wireless communication equipments since 1998, and we support this peace festival through our own wireless communication system. "Anycall" is one of the most representative brands of Samsungs mobile phones. It was put on the Korean market in 1994, and obtained the highest market share in

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Korea the following year. Nowadays, this brand is one of the most popular worldwide. Moreover, the "Blue Black Phone", released in 2004, has become a hot-selling product in Europe with over 400,000 terminals sold during the first month of sale. It has become widely popular as one of the representative brands of the new Samsung, and it has been highly appreciated in various design award contests and trade fairs. In 2005, the sales amount of the telecommunication business of Samsung Electronics reached 18 trillion and 800 billion Korean Won, and its operating profit amounted to 2 trillion and 300 billion Won. Samsung was ranked the second in the world in sales and the third in the world in quantity sold. The telecommunication branch of Samsung is now preparing for the future, creating mobile phones and related next-generation technologies. We have launched into the field of the worlds third-generation mobile communication technologies including CDMA, WCDMA and TD-SCDMA, and we boast of our advanced technology in the areas of satellite and ground wave DMB which connects communication and broadcasting, and of portable internet service which allows us to use super high-speed internet service even while traveling. In addition, with a view to developing and standardizing fourth-generation mobile communication technology, we will continue to make efforts for the creation of a true "ubiquitous" era.

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MAJOR BRANDS THAT ARE DEALT BY DEALERS

Most of the executives who were surveyed had almost all the Brands of Mobile Handsets with them and the final analysis upon which I arrived at was that Nokia is the No.1 selling Handset in Delhi followed by Samsung, Motorola and Sony Ericsson.

Nokia no doubt has carved a niche for itself over the past 4-5 years with its superior technology and its loyalty towards the Indian customer which certainly makes it the most superior brand. The biggest advantage that has worked in Nokias favor is its marketing strategy, which focuses more on their state of the art Handsets. They were the first company to come with a mobile with an in-built camera in it and they surely knew how to sell their product. Today almost all mobile companies have followed suit and come out with their own in-built camera mobiles. Nokia is certainly a value for money mobile as more than 90% of the dealers interviewed agreed on this statement, not only is the after sale service excellent but also the quality and pricing of products is excellent. In such a scenario not only the existing companies but also the new entrants such as MOTOROLA, BenQ, Alcatel etc will have to justify their launch in the long run.

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1.5

S.W.O.T ANALYSIS

STRENGTHS Global Products and Image Nokia is a global company. It not only sells its products to 130 countries but also sets up research and development departments in fifteen countries to produce its products in different culture and language needs,e.g English, Dutch, German and Chinese. High Quality Products Nokia concerns about product quality which is the most important factor to satisfy customers needs. Nokia adds more values by superior quality or differentiated features to the market. Meanwhile, it also continuously improves upon the existent markets. Serving new designs and trends Nokia launched a wireless game which by use of sms, tv, print media, radio and internet provides clues to help players to solve a mystery. This helps Nokia to attract customers to use its products. Wide range of products Nokia has the highest number of product line(more than 10 models) compared to its competitors Samsung, Ericksson, Motorola etc. Product Warrantee Worldwide No matter where Nokias customers are, if they got a problem with their mobile phones, they can approach any of the Nokias centres. Thus, ensuring a good customer service. WEAKNESSES High Price Nokia offers a good range of high quality products at high prices Though the high prices may be justified in terms of the costs to the company but this can act as a weakness in certain sections of the market e.g the middle-low income group people. Demand is skyrocketing but the price pressure is high. New product developing problems Although Nokia provided colour screen mobile phones in September 2002,this was late as compared with its competitors

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such as Sony Ericsson and Samsung. This acted as a weakness as the people had already accepted the range introduced in the market and didnt want to switch. OPPORTUNITIES Joint venture in Technology Nokia has joined with Hewlett Packard(HP) Company in technology which has a very good reputation for many years. Nokia thus, has a considerable opportunity to enlarge their market size into PC users who prefer mobile phones compatible with PC device. Product launch continuously - Nokia uses Total Quality Management (TQM) which mentions more about training worker program, and makes product of high quality. All employees are well-trained and motivated and consecutively production processes are also developed as well. Nokia has established Research and Development department (R&D) which develops its product line into modern modification as well quality as the existing products. New Software Market As known, the amount of data traffic in mobile networks is growing at a tremendous rate. People around the world are using new mobile services, which are directly relevant to personal needs. Nokia has already added value through MMS for Messaging and E-mail, Java for download any applications and HTML especially for content search. So it may attract those businessmen and teenagers who are interested in the new software market. Easy Availability - Many mobile phone retail stores, such as, the link, Phone4U and Carphone warehouse, have spread across London in every street. And, of course, every store have not missed the opportunity to choose Nokia as their product line. Consequently, all the customers can be guaranteed that any damage or loss of Mobile phone will be serviced through these retail shops. Likewise, in opportunity aspect, Nokia has an opportunity to convince the prospects of buying Nokia in the plenty of stores around the town. However the key to success of Nokia will be the flexible changing capabilities.

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THREATS Threats in PC Markets - Due to fierce competition in mobile phone market it has caused new technology compatible with PC computer. Sony Ericksson specializes on PC computer now. Sony applied their computer system into mobile phone as well as PC computer on hand at the same time. Furthermore, nowadays people are interested in advance of computer as similar as mobile phone market. In this sharp competition, it is going to be harder for Nokia to grasp customers attention and they will have to focus on outstanding imagination and creativity in their marketing plans. Fluctuations in Euro exchange rates Most of the European countries have joined the European Union and thus because of the varied economic conditions, the currency will fluctuate a lot finally effecting the profits of the company. Blurring of product boundaries This implies new entrants in the same industry like Sony, Motorola etc. who are producing almost the same product range as Nokia and thus, there is a need to change their models. Keeping in mind the weaknesses and threats, Dan Steinbock in an article called the Nokia revolution outlines the secrets behind the success of Nokia. Apart from the SWOT analysis, the effectiveness of Nokias strategies can also be analysed looking at the environment in which it operates.

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Chapter 2 RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY
2.1 SIGNIFICANCE
Any Research has its own importance in any business organization. The research shows the real fact about product as well as organization. Research is a systematic and scientific investigation of any from a continuous basis for learning , descriptive. According to above definition research is a systematic and scientific investigation through which any organization try to find out its strength and weakness as well as opportunity and threat. As we know in the present era the business activities have become more complex and complicated due to modern technology , globalization and liberalization and in are highly conscious about In recent time products and brand . blind follower of a product. They are other hand today customer idea either precise or abstract it could be either exploratory or

customers are not

giving high priority to all feature like price, quality, innovative features etc. But after all this features brand becomes the inevitable parts of any product because it gives the complete identification of product so it is also the one most important part. My research work is highly focused on this issue, which is important for me as well as the organization. During research work I learnt retailers opinion about product and services. I learnt which factors affect the retailer to sale an individual product, this research gives me insight to understand the retailers problem as well their area of interest , in this I got the great experience about the market For company point of view I tried to find the serious drawback, which is highly, affected the sale of chocolates. I tried to find market share of Nokia

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Mobiles which is itself important .I tried to find the sale figure of Nokia Mobile in term of rupees, due to some hurdle I dont claim my research work is 100% accurate because so many factors was uncontrolled during the project .I tried to finish my research with 100% accuracy which is best available in market . So it is my strong believe that my research work is significant in all manner. This research is helpful for organization, retailers as well as consumer.

2.2

MANAGERIAL USEFULNESS OF THE STUDY

The research is a systematic investigation of any idea. The research is widely

used in the business world for analyzing & evaluation business policy as well as the analyzing & evaluates competitors activity and policy. The research is itself valuable. The research gives fact and figure, which is useful in planning. As it is obvious any business activity is based on to the 4 Ps of marketing viz. price, product, promotion, place all these Ps have its own importance and all are inter-related with each other but most importantly all the factor are independent in the nature. In any organization all factors are carefully formulated to gain a success in the market. It is very important for business analyst to evaluate the modern trend and market position. In the other hand it is vital for business operation to know the need and desire of customer. All the necessary information is received from market by research work. The study reveals many facts that have come up during my project and these facts can either be used as opportunities in exploring and expanding the business as well as can be used as safeguards against threats by the competitions. To prepare an effective marketing strategy a company must study it s competitors as well as its actual and potential retailer. A company should maintain good relation with their distributors and retailers keeping in view competitive orientation in todays global market. Company should neither put much emphasis on competitors positioning nor should it solely concentrate on its own products and policy. Rather it should find

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midway between these two extremes and adopt flexible policy. Companies should manage a good balance of declares retailer , consumer & competitors monitoring . The information will prove beneficial in taking proactive action for combating competition .the standing of the company and its competitors in the mind off the retailer in a vital factor in deciding the success of business the study also aims at finding out the market share in term of their sale, product penetration demand etc which is adjusted by retailer. This information is good guide to management as it brings out the strength of the competition their product penetration, product demand their promotion policy, which gives a overview where the company needs to improve. This study basically aimed at providing the management desired vital information about the market situation. It can be useful for adopting the proper marketing mix in respect of type of chocolate, distribution pattern, and market share. It can be useful to understand the consumer perception which is very vital for product mix as well as promotion mix. 2.3

OBJECTIVES

The primary objective would be:-

MAIN OBJECTIVE
To find inter firm comparison of the mobile industry, by analyzing Nokia, Sony Ericsson and Motorola The other objectives would be : To compare Nokia with its competitors in terms of sales figure. To make an analysis of the shortcomings of Nokia compared to its competitors.

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Finally to conclude the findings and suggest the necessary corrective measures and recommendations for improving the market position of Nokia.

2.4

SCOPE OF THE STUDY

The study is designed and focused primarily on identifying the present market

position of the Nokia. It also includes identification of its core competitors and enhancing efforts towards brand repositioning in present and in future. 2.5 METHODOLOGY Marketing research is the process collecting and analyzing marketing information and ultimately arrived at certain conclusion Management in any organization need information about potential marketing plans and to change in the market place. Marketing research includes all the activities that enable an organization to obtain the information. This research is very important in strategy formation and feed back of any organizational plan. There are many type of research some are conceptual, empirical, descriptive, explorative etc. each research type is being used for various purpose. In this research I have used descriptive research, I try to describe what are the factors, which affect the business plan of Nokia. Research design is the plan, structure and strategy of investigation conceived so as to obtained to research problem and control variances. It is the specification of methods and procedures for acquiring the information needed. It is overall operational pattern or framework of the project that stipulated what information is to be collected and from which source and by what procedure. RESEARCH DESIGN Different types of research design have emerged on account of the different perspectives from which a research study can be viewed. There are three fundamental categories that we used frequently are given below.

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1. EXPLORETARY RESEACH: - In the case of exploratory research, the focus is on the discovery of ideas. An exploratory study is generally based on the secondary data that are readily available. It does not have formal and rigid as the researcher may have to change his focus or direction, depending on new idea and relationships among variables. An exploratory research is in nature of a preliminary investigation. 2. DESCRIPTIVE RESEARCH: - The objective of such a study is to answer the who, what, when, where and how. Of the subject under investigation, descriptive studies are well structured and tend to be rigid and its approach can not be changed every now and then. It is therefore, necessary that the researcher give sufficient thought to farming research question and deciding the types of data to be collected and procedure to be used for this purpose. 3. CAUSAL RESEARCH :- A causal research investigates is cause and effect relationship between two or more variables. The causal research design is based on reason along well-tested line. We use inductive logic for confirming hypothesis with the help of future evidence. TYPE OF RESEARCH CARRIED OUT: In my project work I used exploratory research, as it aim to answering question about sale, brand availability, service quality, distribution pattern etc. DATA COLLECTION:To achieve the objectives, the primary as well as secondary sources of data are used. Primary source includes the retailers and companys officials through questionnaires. Secondary source of data includes the past records of company. The data were collected through the following methodical techniques in the present project work. 26

1. 2. 3. DATA SOURCES PRIMARY DATA SECONDARY DATA

Through questionnaires Through interview Through observation

PRIMARY DATA:Primary data is that kind of data which is collected by the investigator himself for the purpose of the specific study. The data such collected is original in character. The advantage of third method of collection is the authenticity. A set of question s was put together in the form of questionnaire with. Question. The method of sampling was the random method as it is unbiased. SECONDARY DATA:When an investigator uses the data that has been already collected by others is called secondary data. The secondary data could be collected from Journals, Reports and Various Publications. The advantages of secondary data can be economical, both in the term of money and time spent. The researcher of the reporter also did the same and collected secondary from various Internet sites like Google.com.altavista.com and many more. The researchers of the reporter also visited various libraries for collection of the introduction part. QUESTIONNAIRES DESIGN: Questionnaires consist of question printed or type in definite order on a form or set of form. It was questionnaire format firms tested on small sample then was modified and developed according to the environmental situation and other affecting

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factors. Each questionnaire is framed with systematic and modern technique to make useful in achieving the objectives up to a maximum possible limit. There are two types of questionnaires, the first one is standard questionnaire and the second is un-standard questionnaire. The authority or expert sets the standard questionnaire. In the other hand un-structured questionnaire is set according to objective of the study by researcher. In this research work I used un-structured questionnaire with my best ability and under the guidance of my institutes faculties and the project guide of the organization. After floor acing the questionnaire, the respondents (retailers and customers) were personally contacted. Each respondent was requested to answers the question with appropriate answer genuinely. All the questions were made very clear to them. The questionnaires were duly filled with the responses of all the respondents in the current project work. INTERVIEW METHOD: There is a fact to face interaction with most of the samples they were directly questioned and according personal and professional problem were collected from them for question are asked to the responded to flourish the questionnaire effectively and efficiently. In this project work I have made interview with almost respondent to know some extra data or fact, which was used in this project work. After using this method I tried to find the competitors policy and there strength after this method I was able to conclude all facts with competitors point of view. OBSERVATION METHOD: During the project work, I contact the retailers and consumers particularly and find their opinion about the Nokia.

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In the observation method the research himself collects necessary informations by observing the phenomena under this method. Observation may be conducted on in the natural field or in the form of experiment. After observation the data carefully noted in the questionnaire format. I used uncontrolled observation in this observation takes place in the natural setting. Retailer and customer are free to express their felling about the product and the company. The observation method give me an idea about the satisfaction level of customer and retailer in the other hand there precious knowledge about the market situation make me understand the business difficulties which help me a lot to carry out my project in a significant and effective manner. SAMPLE DESIGN SAMPLE DESIGN: - The sampling designs are mainly of two types non-probability sample designs and probability sample design. RANDOM SAMPLING: - a random sample gives every unit of population a known and non-probability of being selected. Since random sampling implies equal probability to every unit in the population; it is necessary that the selection of the sample must be free from human judgment. SYSTEMATIC SAMPLING: - In this method first a sampling fraction is calculated as N/n where N is total no. of units in the population and n is the size of sample.. STRATIFIED RANDOM SAMPLING: - A stratified random sampling is divided into mutually exclusive and mutually exhaustive strata or sub group and then a simple random sample is selected with in each of the strata or sub group. CLUSTER SAMPLING: - cluster sampling implies that instead of selecting individual units from the population entire groups or clusters are selected random.

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 QUOTA SAMPLING: - quota sampling involves the fixation of certain quotas, which are to be fulfilled by the interviewers, since quota sampling is not based on random selection it is not possible to calculate estimates of standard errors for the sample result. JUDGEMENTAL SAMPLING:- the main characterictics of judgemental sampling is that units or elements of the population are purposely selected it is because of this that judgment samples are also called purposive samples. Since the process of judgmental sampling is not based on random sampling it is also called non-probability sampling. DATA COLLECTION Data collection from retailers of different areas viz. south Delhi, North Delhi, East Delhi, West Delhi and Central Delhi 2.6 Sample size 100

Other information related to project has been taken from company website LIMITATIONS

Although all efforts were taken to make the result of survey as accurate as possible the survey had the following constraints: Retailers are not willing to give answers of the questions due to their busy schedules. Retailers hide the facts especially in the sales figure. A few retailers were not cooperating during the project survey. It was quite difficult to collect necessary data.

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Due to the time constraint and other imperative workload during the training period it could not be made possible to explore more areas of concern pertaining to project study.

The employee of Nokia were very hesitant and reluctant to give all information which was vital for my project work because some information were confidential in nature.

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CONCEPTUAL DISCUSSION STRATEGIC MANAGEMENT

This report outlines the mission statement, strategy and purposes of Nokia .It analyses the impact of the external and internal influences on the business strategies of Nokia. It also emphasises the strengths, weaknesses, opportunities and threats in context of Nokias operating and marketing activities. Nokia has established its leadership in the mobile phone market owing to its successful marketing strategies and internal management. Nokias philosophy is to learn continuously, to satisfy customers and to respect individual and pursue professionalism. SECRETS TO NOKIAS STRATEGIC SUCCESS One can analyze the secrets behind how an enigmatic Finnish Company got an edge over the US and Asian giants to triumph as the global leader in mobile communications. Bold Strategic Intent While others debate and agonize over first mover strategies, Nokia rushes for new opportunities and products. Growing up as a small Finnish Company with few resources and no incumbent privileges, Nokia is accustomed to moving swiftly and decisively to claim its share of worldwide markets- from infrastructure to handsets and software applications. Innovation through Value Chain Through technology, innovation and segmentation, branding and design, Nokia makes innovation a top priority. Like Proctor & Gamble, it has shrewdly filled the shelves with innovative new products to dominate categories. Like Sony, it has used its umbrella brand to sell new products and services and to create footholds in new markets. Unlike its direct rivals (Motorola, Ericsson), Nokias innovation extends from technology innovation to marketing activities.

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Flat Organization Prior to its worldwide expansion, Nokia extended the use of IT throughout the company. As it became a process organization, it has shunned hierarchies and bureaucracy. Even the senior executives have been rotated from one work task to another. The organization chart looks hierarchic but teams and networking reigns.

Entrepreneurial Spirit Like the best Silicon startups, Nokia encourages entrepreneurialism throughout the ranks and views failure as a learning experience. Incentives, rewards and lifelong learning permeate the entire company. Humility is taken seriously at Nokia as in the technology sector, the arrogant of today are considered losers of tomorrow.

Collective leadership Nokia relies on its executive board, with each member bringing something unique

Global R & D Networks Nokias R&D efforts reflect extensive collaboration with vital research institutions worldwide. The company invests less in technology development than its rivals, but often exploits new knowledge more efficiently. Through technology coalitions it has managed to internalize new know-how while neutralizing competitive threats.

Competition and Co-operation By managing its corporate and government relations with diplomacy and consideration, Nokia has been able to avoid high profile and costly anti-trust actions and competition policy struggles. Instead of trying to buy or crush potential rivals, Nokia works to cooperate with suppliers, partners, clients, even direct competitors. Customer Focus The most enduring factor is Nokias ability and

willingness to listen to the customer a fact apparent in its strategy, structure and resource allocation and also in its products and services. SWOT ANALYSIS OF NOKIAS STRATEGY

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There are various tools which can be employed to understand the effectiveness of a companys strategies. SWOT Analysis outlines the Strengths, Weaknesses, Opportunities and Threats facing the operating strategy of a company. Analysing the effectiveness of strategies, strength and weaknesses can be defined as internal to an organisation. The businesses do not necessarily have to correct all its weaknesses however, it should be able to retain its strengths. The key success factor for operating in the targeted market depends on the external factor. ie. Opportunity. Nokia has numerable opportunities to enlarge its market share, however, they could be faced with a threat which could be challenge posed by an unfavourable trend or development that may lead into absence of defensive marketing action and thus diminish sales and profit. PEST ANALYSIS Nokia, is an international organisation which requires to focus on macro environmental factors. Macro Environmental factors comprise Political, Economical, Society and Technology, viz., PEST Analysis. In view of the different culture and different external factors between different countries, Nokia has to adjust its strategic plan in order to develop international market. Political Factors It is important of a company to acquire certain kind of policies from its government, such as the economic policy, and science and technology policy. Finnish policies assist Nokia to advance its products. The Finnish policies are the most important factors behind Nokias success. To operate efficiently, a modern knowledge- and technology-based economy that is highly specialized, internationalized and undergoing rapid structural change requires active support from the public sector. In its widest sense industrial policy and science and technology (S&T) policy comprise all those measures by which the public sector shapes the operating environment for business and thus fosters public welfare. Both

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policies pursued by Finnish government and the

Parliament are crucial for the

development of both, the Finnish Economy and of national information society. General macroeconomic stability, low interest rates, stable currency conditions and the international competitiveness of the tax system form the foundation for the growth of business and improvement in employment. As the result of this, not only Finnish Government but also international companies, such as Nokia, have to play very important roles to develop their information society and national technology strength. Economic Factors According to the fact that Russian Federation was collapsed in early 1990s and it clashed with Finnish economics. Nokia also faced problems, and changed its functions from single market and overall products to global market and focusing mobile phone market. During the first half of the year 2001, Nokia continued to perform strongly in the global mobile communications market and was able to strengthen its leading market position. However, the general economic slowdown in the US has recently shown signs of extending to other regions and to the wireless telecommunications industry as a whole. The slowdown could be a result of a general market deterioration - driven by economic uncertainty, the ongoing technology transition and less aggressive marketing by the operators.' In a press release on June 12, 2001 it was quoted that Nokia saw slower market growth affecting second quarter results and was to take up actions to expand leadership while maintaining strong profitability. Nokia will continue to take determined actions in all areas of the business to align its operations with the changing market conditions. Previously announced moves to increase the companys efficiency and competitiveness include operational changes to further enhance customer focus in Nokia Networks.

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While market deterioration has had an inevitable impact on Nokia's sales growth, their products have remained strong, their market position has strengthened and they have been able to find further efficiencies through tight control of their own performance. Nokia has countered changing market conditions by accelerating ongoing programs and generating efficiencies and cost savings. This, in combination with the current financial health and proven performance, should enable them to exit the current slowdown in a stronger position than before. Society At Nokia, their whole business is based around communication and connecting people. One of Nokia's aims is to make it as easy as possible for their people to be satisfied working with them. Thus, it keeps various stakeholders interests in mind. Nokia develops products and services that encourage communication and learning among people and societies. They are using their strengths - connecting and communicating - to help make a difference. It complements the core business and their vision to be involved with the youth and education issues around the world, preparing young people for their future. The goal is to be a good corporate community member wherever they operate, as a responsible and contributing member of society. Sharing in the belief that prevention is better than cure, they take part in long-term projects aimed at helping young people to create a firm foundation for themselves and to find their place in the world. Technological Factors In the 1980s, there was a trend towards microcomputers and Nokia tried to match this tendency by producing its main products as computers, monitors and TV sets. Due to the changes in 1990s, Nokia also changed its functions to mobile phone market. . Sustainable development and environmental protection have various effects on the operation of the innovation system. Innovation also creates new opportunities for promoting sustainable development.

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Nokia always improve their product line through Research and development process, beside this Nokia also has multimedia compatible improvement with mobile at the same time, such as, GPRS and WAP Service.Nokia has numerous technologies which can satisfy those end-users need, such as, Bluetooth, Symbian, SYNCML, M2M, Wireless LAN and Java.Nokia employed more than 17,000 people in R&D department over fourteen countries worldwide. They also provided customers to choose the features and service that they personally want and need. It means Nokia does not develop only their product line, but they also improve their service process to provide the most appropriate service to those customers efficiently.

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MARKET SHARE
Dominated largely by Nokia with a total market share of 59%, followed by Sony Ericksson (13%) and Motorola (7%) respectively.

Others 21% Motorola 7%

Sony Ericksson 13%

Nokia 59%

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NOKIA CORPORATE RESPONSIBILITY

TOWARDS ENVIRONMENT
What's in a phone?

The use of chemicals in Nokia products and processes shall be safe to humans and the environment. Meeting health and environmental regulatory requirements is a priority and a basic requirement. Nokia's approach is based on the precautionary principle. Where we have reasonable grounds for concern over the possibility of severe or irreversible damage to health or the environment, we believe that lack of full scientific certainty should not be an obstacle to triggering actions to gather and assess additional data. That may lead us to voluntarily take steps, e.g. to substitute substances of concern with safer alternatives, where feasible alternatives are available.

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TOWARDS SOCIETY Targeting life skills As a global company, we recognize that young people everywhere can benefit from developing essential "life skills" that help them to succeed within todays fastchanging world. Such skills including confidence, teamwork, and conflict management are often not taught in schools. To meet this challenge, we support life skills education programs that address the specific needs of young people within individual countries Examples include: Conctate provides Colombian youth with training in information technology and at the same time develops their self-esteem, creative and critical thinking, and communication skills. Kapcsolodj be supports the efforts of young community volunteers in Hungary, while equipping them with project management and budget planning skills. Leadership for health develops leadership and life skills among Nigerian youth, who are trained to run HIV/AIDS-focused initiatives. Mudando a Histora - trains Brazilian youth to serve as reading mentors to disadvantaged children.

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Chapter 4 DATA ANALYSIS

Q.1 Do you use a mobile phone ? YES 94 NO 6

100 80 60 40 20 0 YES NO

YES

NO

Figure : 1 Interpretation The above graph shows that 95% of respondents having mobile phones.

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Q.2 Which mobile phone do you use ? Nokia 59 Sony Ericsson 13 Motorola 7 Others 21

Nokia

Sony Ericsson
Figure : 2

Motorola

Others

Interpretation The above graph shows that out of the 100 respondents 59 having Nokia mobile, 13 having Sony Ericsson, 7 having Motorola and remaining 12 having mobiles for other companies.

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Q.3 Which mobile handset company is the best according to you ? Nokia 46 Sony Ericsson 30 Motorola 16 Others 8

Nokia

Sony Ericsson
Figure : 3

Motorola

Others

Interpretation The above graph shows that the Nokia is the best handset company.

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Q.4 How much satisfied are you with the products of nokia ? Dissatisfied 16 Satisfied 52 Very Satisfied 32

60 50 40 30 20 10 0 Dissatisfied Satisfied Very Satisfied

Figure : 4 Interpretation The above graph shows that 52% of respondents are satisfied with Nokia products, 32% are very satisfied and remaining 16% are not satisfied with Nokia products.

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Q.5 How would you rate the Promotional strategy of Nokia? Good 56 Ordinary 36 Terrible 8

60 50 40 30 20 10 0 Good Ordinary Terrible

Figure : 5 Interpretation The above graph shows that 56% of respondents said that the promotional strategies of Nokia is good.

Q.6 How would rate Nokia on the basis of being user friendly? 45

Good 60

Ordinary 34

Terrible 6

60 50 40 30 20 10 0 Good Ordinary Terrible

Figure : 6 Interpretation The above graph shows that a large number of respondents i.e. 60% said that products of Nokia is user friendly.

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Q.7 How would you rate Nokia on the basis of Performance? Good 52 Ordinary 36 Terrible 12

60 50 40 30 20 10 0 Good Ordinary
Figure : 7 Interpretation The above graph shows that 52% of respondents said that the performance of Nokia is good.

Terrible

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Q-8 How would you rate Nokia on the basis of Durability? Good 50 Ordinary 38 Terrible 12

50 45 40 35 30 25 20 15 10 5 0

Good

Ordinary

Terrible

Figure : 8 Interpretation The above graph shows that the 50% of respondents said that the duration of the Nokia phone is good.

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Technology Good 56 Ordinary 40 Terrible 4

60 50 40 30 20 10 0 Good Ordinary Terrible

Figure : 9

Interpretation The above graph shows that the 56% of respondents said that Nokia having a good technology.

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Looks Good Ordinary Terrible

60

38

60 50 40 30 20 10 0 Good Ordinary Terrible

Figure : 10 Interpretation The above graph shows that the 60% of respondents said that the Look of Nokia Products is good and 38% said its look like ordinary mobile.

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Q.9 How would you rate nokia on the basis of its pricing policy ? Good 50 Ordinary 40 Terrible 10

50 45 40 35 30 25 20 15 10 5 0

Good

Ordinary

Terrible

Figure : 11 Interpretation The above graph shows that the 50% of respondents said that the pricing prolicy of Nokia is good.

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Chapter 5 FINDINGS AND RECOMMENDATIONS

FINDINGS
FINDINGS The findings of the research I found that nokia is the market leader in the mobile phone industry in india Nokia has storng brand image to influence and create large customer base. Nokia should launch new mobile phones that are an optimum balance between price and features Strengths and opportunities of Nokia suggest that high quality, advanced technology, worldwide service and continuous new products are the essential factors for Nokias product development. Nokia concerns on its enterprise culture. In the company the relationship between individuals is mutual trust, fair and openness. Nokia makes courses to train its employees regularly which will assist Nokia in achieving its higher goal.

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RECOMMENDATIONS
Nokia can do an excellent job to make the mobile phone easy to use. In order to maintain the leader position of mobile phone market, the company should closely focus on the tendency of marketing development. It would be good for Nokia to make out specialized products for enterprise markets. These specialized products functions would be to make the connection more quickly and handily than before. The enterprises could involve big companies, hospitals, government organizations etc. Some advantages attached to this approach are: 1. The group market is a long run market. The enterprise wouldnt change these products easily and they may require updating after a period of time. 2. This group market may get further marginal profits than the individual market and the rate of return over cost will be improved as well This is because the competitors will be less in the group market than the individual market. Analyzing the current business situation, Nokia needs to : Differentiate its products capability between the old and new category. Enhance its products with computer IT compatible, focusing on new technology users. Maintain its price reasonable. Follow, practise and promote its environment policies. It is also essential to treat the services and the products as equally important. The provision of a service can be attractive in itself. Developing a good understanding of how your products and services will be used and how they will change is important.

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Operators may well find themselves positioning R&D as a means to promote the use of bandwidth and focusing on service creation. While remaining flexible and alert to change, a company should build on standards. In a world where services will be delivered across a variety of components, one needs their component to fit in. OTHER RECOMMENDATIONS 1. Nokia has to control market skimming as it negatively attacks the brand 2. Nokia is the market leader and it should try to increase the growth rate as it had become flatter in 2005. 3. Nokia should be innovative on style and looks frint of the cell phones as it has recently sprung up in the present in order to attract youth. 4. High end mobile phones from Nokia have a hanging problem they must be tweaked to perform as desired. 5. The price of Nokia cellphones is high as compared to the grown up twins

available so the buyer is unable to buy the latest available. 6. Nokia should work on a phone for the masses as it has a lot of scope, just like bird and motorola did. 7. The infrared present on the low end phones of nokia lack compatibility with the non0 nokia phones. 8. Nokia should work upon their combination of price and features in an instrument. 9. The user interface present in both brands of phones are each of a type and are acceptable by the users.

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ANNEXURES

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QUESTIONNAIRE Name Age Place. Occupation.. Monthly income.

Q.1

Do you use a mobile phone? Yes No

Q.2 a) b) c) d) Q.3

Which mobile phone do you use? Nokia Sony Ericsson Motorola Other Which mobile handset company is the best according to you?

a) Nokia b) Sony Ericsson c) Motorola d) Other

Q.4 a) b) c) Q.5 a) b) c)

How much satisfied are you with the products of Nokia? Dissatisfied Satisfied Very Satisfied How would you rate the marketing policy of Nokia? Good Ordinary Terrible

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Q.6 a) b) c) Q.7 1)

How would rate Nokia on the basis of being user friendly? Good Ordinary Terrible Rate Nokia on the basis of following: Performance a) b) c) Good Ordinary Terrible Durability a) b) c) Good Ordinary Terrible Good Ordinary Terrible Good Ordinary Terrible

2)

3)

Technology a) b) c)

4)

Looks a) b) c)

Q.8 a) b) c)

Who do you think is Nokia's biggest competitor? Sony Ericsson Motorola Other

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Q.9 How would you rate Nokia on the basis of its pricing policy? a) b) c) Good Ordinary Terrible

Q.10 What are your recommendations for Nokia?

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BIBLIOGRAPHY

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BIBLIOGRAPHY
BOOKS: KOTLER PHILIP, MARKETIG MANAGEMENT, PRENTICE HALL OF INDIA, NEW DELHI. KOTHARI C.R., RESEARCH METHODOLOGY, PRENTICE HALL OF INDIA, NEW DELHI. WEB SITE : www.nokia.com www.nokia.in

MAGAZINES : BUSINESS WORLD BUSINESS TODAY

PREOIDICAL: ECONOMIC TIMES TIMES OF INDIA (DELHI EDITION)

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