Market Survey Report

On

“Factors responsible for declining market share of Nokia”

Submitted in Partial Fulfillment for the Award of

Post Graduate Diploma in Management

(Session 2009-11)

Submitted to: Submitted By:

Mr. Balraj Mr. Anil Kumar

PGD09022

PGDM – 2nd yr

DEPARTMENT OF MANAGEMENT

INSTITUTE OF MANAGEMENT STUDIES, NOIDA

A UGC Recognized Institute

A-8B, Plot –C, Sector-62, Noida

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DECLARATION

I hereby declare that this Project Report entitled: Factors responsible for declining market share of Nokia in India. Submitted by me to IMS Noida is a bonafide work undertaken by me and it is not submitted to any other University or Institution for the award of any degree diploma / certificate or published any time before.

Name: Anil Kumar

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ACKNOWLEDGEMENT

I would like to thank Nokia Care, for constant guidance to conduct the present arduous project

and untiring cooperation which they extended to me throughout my market survey.

Getting a project ready requires the work and effort of many people. I would like all those who

have contributed in completing this project. First of all, I would like to send my sincere thanks to

Mr. Balraj for their helpful hand in the completion of my project.

Last but not the least I am grateful to all the respondents who spared their valuable time &

responded my questions. This project would not be completed without their support & help.

I would like to take an opportunity to thank all the people who helped me in

collecting necessary information and making of the report. I am grateful to all of

them for their time, energy and wisdom.

(Anil

Kumar)

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Preface

As a part of course curriculum of PGDM we were asked to undergo a market survey on any

organization so as to give us exposure to practical management to get us familiar with various

activities taking place outside the organization.

I have put my sincere efforts to accomplish my objectives within the stipulated time. Despite all

limitations, obstructs, hurdles and hindrances, I have toiled and worked to my optimum potential

to achieve desired goals. Being a researcher in the highly competitive world of business, I came

across some difficulties to make my objective a reality. Now with the kind help and genuine

interest and the guidance of my supervisor, I am presenting this hand carved effort. I tried my

level best to conduct a research to gain a thorough knowledge about the project on topic,

“Factors responsible for declining market share of Nokia”. I put the best of my efforts and

have also tried to be justice with available. If anywhere something is found unacceptable or

unnecessary to the theme; you are welcomed with your valuable suggestions.

Anil Kumar

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TABLES OF CONTENTS

Chapter No. Chapter Name Page No.

01 Executive Summary 5

02 Introduction of project 6

03 Objectives 7

04 Research design & methodology 8

05 Data collection & sampling plan 9

06 Cell phone & Nokia’s History 14

07 Nokia in India 27

08 Product mix & market segmentation 31

09 Nokia climate strategy 34

10 Expanding market 37

11 Competitors 40

12 Data analysis & interpretation 42

13 Smartphone market share 51

14 Findings 53

15 Limitations 54

16 Recommendations & conclusion 55

17 Bibliography 56

18 Questionnaire 57

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EXECUTIVE SUMMARY

This report is based on the facts that have been come out during the market survey. It tells us

about the factors which are responsible for declining market share of Nokia. This report also

provides details about the Nokia Company with the data extracted from the company website &

the information received from consumers.

On the basis of a questionnaire, respondents were interviewed, which is present at the end of the

report. The results of each question are presented in the form of graphs. On the basis of answers

a conclusion is obtained. And on the basis of that recommendations are made for the

consumption of the company.

And I hope that company finds this report useful & it helps company in expanding its market

share by implementing the changes recommended in the report.

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INTRODUCTION OF THE PROJECT

This market survey is related to identify the factors which are responsible for declining market

share of Nokia. It means that why market share of Nokia is declining every quarterly.

Under this survey I interviewed with many respondents.

This survey was assigned me to find out:-

1. To find out the factors responsible for declining market share..

2. To study the buying preferences of consumers..

For attaining the objectives of the survey & I had to fill up questionnaire by contacting

respondents. This project is based on primary data. The data collected through survey provide

better results..

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Objectives

1. To find out the various reasons/factors responsible for the declining market share of

Nokia in Indian market.

2. To study the buying preferences of consumers.

3. Customer perception about Nokia & other’s with respect to price, features, quality.

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RESEARCH DESIGN / METHODOLOGY

Research methodology/ Design mean the procedure used & method applied for the collection of

data used in the completion of the project report. The research design spell out how you are

going to achieve the stated research objectives. The way in which researchers develop research

designs is fundamentally affected by whether the research question is descriptive or explanatory.

It affects what information is collected.

Data collection Method.

Specific research instrument.

The sampling plan that the researcher uses for collecting the data.

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DATA COLLECTION METHOD

For preparing this report the researcher used primary data which was gathered through market

survey by using questionnaire. Since the researcher had to prepare this report on the basis of

current market position of Nokia. So the researcher decided to gather the primary data rather

taking help from the secondary data gathered by the researchers in the past. The researcher had

visited different retailers & colleges to gather the information for completing this project.

The researcher had another options also to collect the primary data e.g. Telephonic interview or

oral interview. But he selected survey method using questionnaire to gather the required

information because the researcher found it the best among other method available to me.

The researcher found it easier to approach the retailers by going directly to them at the time

when they are free specially in the lunch hour or in the evening when they are free to spare their

time to respond to my questions rather than asking them on telephone to spare some time for

responding or taking appointment & fixing the meeting. It would be a time consuming process.

So the researcher decided to do for market survey using questionnaire.

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RESEARCH INSTRUMENT

The researcher had used Questionnaire, as the research instrument to conduct the market survey.

The questionnaire consisted of a mixture of open & closed questions designed in such a way that

it should gather maximum information possible.

The questionnaire was a combination of 10 questions. The researcher had designed more closed

ended questions because the dealers do not have much time to respond from their own. If choices

are given it is easier for the respondent from the choices rather they think & reply also takes

lesser time. Because they keep on responding & one has tick mark the right choice accordingly.

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SAMPLING PLAN

Sample plan means the area you selected to gather the information.

Information was gathered from a sample drawn from students.

Atta Market

IMS Noida

3C Company

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SAMPLING UNIT

Sample unit refers to the respondents from whom a researcher is going to gather the information.

It is very important for a researcher that he chooses a right unit from whom the required

information can be gathered. Selections of wrong unit can spoil the whole report.

The researcher’s objective was to find out the reasons responsible for declining market share. So

retailers & students were the best source from where the researcher could get the desired

information.

The researcher referred students, youngsters‘s data to select the unit for survey.

SAMPLING SIZE:-

Sample size refers to the numbers of respondents the researcher have selected for the survey..

Universe sampling size = 50

Researcher has selected = 30

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SELECTION OF SAMPLING UNITS

It means on what basis the researcher have selected the sample unit.

SAMPLING MEDIA:-

My sampling media is questionnaire, consisting of 10 questions .Questionnaire was selected as

the sampling media because in such kind of survey where the respondents don’t have time to

respond. It is better to approach them with a prepared list of questions in the form of

questionnaire, so as to save the time of your respondents as well as yours.

Analysis of the data (Data analysis):-

After gathering the data from various sources the researcher has to analyze it to sort out relevant

information. The unwieldy data should necessarily be condensed in to a few manageable groups

and tables for further analysis.

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Cell phone History

Dr. Martin Cooper of Motorola, made the first US analogue mobile phone call on a larger

prototype model in 1973.

First generation

On April 3, 1973, Motorola employee Dr. Martin Cooper placed a call to Dr. Joel S. Engel, head

of research at AT&T's Bell Labs, while walking the streets of New York City talking on the first

Motorola DynaTAC prototype in front of reporters. Motorola has a long history of making

automotive radios, especially two-way radios for taxicabs and police cruisers.

Second generation

In the 1990s, 'second generation' (2G) mobile phone systems such as GSM, IS-136 ("TDMA"),

iDEN and IS-95 ("CDMA") began to be introduced. In 1991 the first GSM network (Radiolinja)

opened in Finland. 2G phone systems were characterized by digital circuit switched transmission

and the introduction of advanced and fast phone-to-network signaling. In general the frequencies

used by 2G systems in Europe were higher than those in America, though with some overlap. For

example, the 900 MHz frequency range was used for both 1G and 2G systems in Europe, so the

1G systems were rapidly closed down to make space for the 2G systems. In America the IS-54

standard was deployed in the same band as AMPS and displaced some of the existing analog

channels.

Coinciding with the introduction of 2G systems was a trend away from the larger "brickle"

phones toward tiny 100–200g hand-held devices, which soon became the norm. This change was

possible through technological improvements such as more advanced batteries and more energy-

efficient electronics, but also was largely related to the higher density of cellular sites caused by

increasing usage levels. This decreased the demand for high transmission powers to reach distant

towers for customers to be satisfied.

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The second generation introduced a new variant to communication, as SMS text messaging

became possible, initially on GSM networks and eventually on all digital networks. The first

machine-generated SMS message was sent in the UK in 1991. The first person-to-person SMS

text message was sent in Finland in 1993. Soon SMS became the communication method of

preference for the youth. Today in many advanced markets the general public prefers sending

text messages to placing voice calls.

2G also introduced the ability to access media content on mobile phones, when Radiolinja (now

Elisa) in Finland introduced the downloadable ring tone as paid content. Finland was also the

first country where advertising appeared on the mobile phone when a free daily news headline

service on SMS text messaging was launched in 2000, sponsored by advertising.

Third generation

Not long after the introduction of 2G networks, projects began to develop third generation (3G)

systems. Inevitably there were many different standards with different contenders pushing their

own technologies. Quite differently from 2G systems, however, the meaning of 3G has been

standardized in the IMT-2000 standardization processing. This process did not standardize on a

technology, but rather on a set of requirements (2 Mbit/s maximum data rate indoors, 384 kbit/s

outdoors, for example). At that point, the vision of a single unified worldwide standard broke

down and several different standards have been introduced.

The first pre-commercial trial network with 3G was launched by NTT DoCoMo in Japan in the

Tokyo region in May 2001. NTT DoCoMo launched the first commercial 3G network on

October 1, 2001, using the WCDMA technology. In 2002 the first 3G networks on the rival

CDMA2000 1xEV-DO technology were launched by SK Telecom and KTF in South Korea, and

Monet in the USA. Monet has since gone bankrupt. By the end of 2002, the second WCDMA

network was launched in Japan by Vodafone KK (now Softbank). In March the first European

launches of 3G were in Italy and the UK by the Three/Hutchison group, on WCDMA. 2003 saw

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a further 8 commercial launches of 3G, six more on WCDMA and two more on the EV-DO

standard.

During the development of 3G systems, 2.5G systems such as CDMA2000 1x and GPRS were

developed as extensions to existing 2G networks. These provide some of the features of 3G

without fulfilling the promised high data rates or full range of multimedia services. CDMA2000-

1X delivers theoretical maximum data speeds of up to 307 kbit/s. Just beyond these is the EDGE

system which in theory covers the requirements for 3G system, but is so narrowly above these

that any practical system would be sure to fall short.

By the end of 2007 there were 295 Million subscribers on 3G networks worldwide, which

reflected 9% of the total worldwide subscriber base. About two thirds of these are on the

WCDMA standard and one third on the EV-DO standard. The 3G telecoms services generated

over 120 Billion dollars of revenues during 2007 and at many markets the majority of new

phones activated were 3G phones. In Japan and South Korea the market no longer supplies

phones of the second generation. Earlier in the decade there were doubts about whether 3G might

happen, and also whether 3G might become a commercial success. By the end of 2007 it had

become clear that 3G was a reality and was clearly on the path to become a profitable venture.

Live streaming of radio and television [1] to 3G handsets is one future direction for the industry,

with companies such as RealNetworks [2] and Disney [3] recently announcing services.

Nokia’s History

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Introduction of Nokia:

Nokia Corporation is a Finnish multinational communications corporation that is headquartered

in Keilaniemi, Espoo, a city neighboring Finland's capital Helsinki. Nokia is engaged in the

manufacturing of mobile devices and in converging Internet and communications industries, with

over 123,000 employees in 120 countries, sales in more than 150 countries and global annual

revenue of EUR 41 billion and operating profit of €1.2 billion as of 2009.It is the world's largest

manufacturer of mobile telephones: its global device market share was about 39% in Q4 2009,

up from 37% in Q4 2008 and 38% in Q3 2009, and its converged device market share was about

40% in Q4, up from 35% in Q3 2009. Nokia produces mobile devices for every major market

segment and protocol, including GSM, CDMA, and W-CDMA (UMTS). Nokia offers Internet

services such as applications, games, music, maps, media and messaging through its Ovi

platform. Nokia's subsidiary Nokia Siemens Networks produces telecommunications network

equipment, solutions and services. Nokia is also engaged in providing free digital map

information and navigation services through its wholly-owned subsidiary Navteq.

Nokia has sites for research and development, manufacture and sales in many countries

throughout the world. As of December 2009, Nokia had R&D presence in 16 countries and

employed 37,020 people in research and development, representing approximately 30% of the

group's total workforce. The Nokia Research Center, founded in 1986, is Nokia's industrial

research unit consisting of about 500 researchers, engineers and scientists. It has sites in seven

countries: Finland, China, India, Kenya, Switzerland, the United Kingdom and the United States.

Nokia is a public limited liability company listed on the Helsinki, Frankfurt, and New York stock

exchanges.Nokia plays a very large role in the economy of Finland; it is by far the largest

Finnish company, accounting for about a third of the market capitalization of the Helsinki Stock

Exchange (OMX Helsinki) as of 2007, a unique situation for an industrialized country. It is an

important employer in Finland and several small companies have grown into large ones as its

partners and subcontractors.Nokia increased Finland's GDP by more than 1.5% in 1999 alone. In

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2004 Nokia's share of the Finnish GDP was 3.5% and accounted for almost a quarter of Finland's

exports in 2003.

So,I select Nokia corporation as my project topic, and I will study finance ,marketing , human

resource deparments of nokia corporation and discuss how change mangement enters in nokia

corporation and how it whats are its effects on both the internal and external environment of the

company.

Nokia’s first century: 1865-1967

The first Nokia century began with Fredrik Idestam's paper mill on the banks of the Nokianvirta

river. Between 1865 and 1967, the company would become a major industrial force; but it took a

merger with a cable company and a rubber firm to set the new Nokia Corporation on the path to

electronics...

1865: The birth of Nokia

Fredrik Idestam establishes a paper mill at the Tammerkoski Rapids in south-western Finland,

where the Nokia story begins.

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1898: Finnish Rubber Works founded

Eduard Polón founds Finnish Rubber Works, which will later become Nokia's rubber business.

1912: Finnish Cable Works founded

Arvid Wickström starts Finnish Cable Works, the foundation of Nokia's cable and electronics

businesses.

1937: Verner Weckman, industry heavyweight

Former Olympic wrestler Verner Weckman becomes President of Finnish Cable Works.

1960: First electronics department

Cable Works establishes its first electronics department, selling and operating computers.

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1962: First in-house electrical device

The Cable Works electronics department produces its first in-house electrical device - a pulse

analyzer for nuclear power plants.

1967: The merger

Nokia Ab, Finnish Rubber Works and Finnish Cable works formally merge to create Nokia

Corporation.

The newly formed Nokia Corporation was ideally positioned for a pioneering role in the early

evolution of mobile communications. As European telecommunications markets were

deregulated and mobile networks became global, Nokia led the way with some iconic products...

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1979: Mobira Oy, early phone maker

Radio telephone company Mobira Oy begins life as a joint venture between Nokia and leading

Finnish television maker Salora.

1981: The mobile era begins

Nordic Mobile Telephone (NMT), the first international mobile phone network, is built.

1982: Nokia makes its first digital telephone switch

The Nokia DX200, the company’s first digital telephone switch, goes into operation.

1984: Mobira Talkman launched

Nokia launches the Mobira Talkman portable phone.

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1987: Mobira Cityman – birth of a classic

Nokia launches the Mobira Cityman, the first handheld NMT phone.

1991: GSM – a new mobile standard opens up

Nokia equipment is used to make the world’s first GSM call.

Mobile revolution:1992-1999

In 1992, Nokia decided to focus on its telecommunications business. This was probably the most

important strategic decision in its history.

As adoption of the GSM standard grew, new CEO Jorma Ollila put Nokia at the head of the

mobile telephone industry’s global boom – and made it the world leader before the end of the

decade...

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1992: Jorma Ollila becomes President and CEO

Jorma Ollila becomes President and CEO of Nokia, focusing the company on

telecommunications.

1992: Nokia’s first GSM handset

Nokia launches its first GSM handset, the Nokia 1011.

1994: Nokia Tune is launched

Nokia launches the 2100, the first phone to feature the Nokia Tune.

1994: World’s first satellite call

The world’s first satellite call is made, using a Nokia GSM handset.

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1997: Snake – a classic mobile game

The Nokia 6110 is the first phone to feature Nokia’s Snake game.

1998: Nokia leads the world

Nokia becomes the world leader in mobile phones.

1999: The Internet goes mobile

Nokia launches the world's first WAP handset, the No

Nokia :2000-2001

Nokia’s story continues with 3G, mobile multiplayer gaming, multimedia devices and a look to

the future...

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2002: First 3G phone

Nokia launches its first 3G phone, the Nokia 6650.

2003: Nokia launches the N-Gage

Mobile gaming goes multiplayer with the N-Gage.

2004: The Nokia Nseries is born

Nokia introduces the next generation of multimedia devices, the Nokia Nseries.

2005: The billionth Nokia phone is sold

Nokia sells its billionth phone – a Nokia 1100 – in Nigeria. Global mobile phone subscriptions

pass 2 billion.

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2006: A new President and CEO – Nokia today

Olli-Pekka Kallasvuo becomes Nokia’s President and CEO; Jorma Ollila becomes Chairman of

Nokia’s board. Nokia and Siemens announce plans for Nokia Siemens Networks.

2007

Nokia recognized as 5th most valued brand in the world. Nokia Siemens Networks commences

operations. Nokia launches Ovi, its new internet services brand.

2008

Nokia's three mobile device business groups and the supporting horizontal groups are replaced

by an integrated business segment, Devices & Services.

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Nokia In India

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

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

network.

Nokia started its India operations in 1995, and presently operates out of offices in New Delhi,

Mumbai, Kolkata,Jaipur,Lucknow,Chennai, Bangalore, Pune and Ahmedabad. The Indian

operations comprise of the handsets business; R&D facilities in Bangalore and Mumbai; a

manufacturing plant in Chennai and a Design Studio in Bangalore.

Over the years, the company has grown manifold with its manpower strength increasing from

450 people in the year 2004 to over 15000 employees in March 2008 (including Nokia Siemens

Networks). Today, India holds the distinction of being the second largest market for the company

globally.

Devices business

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

The company has built a diverse product portfolio to meet the needs of different consumer

segments and therefore offers devices across five categories ie. Entry, Live, Connect, Explore

and Achieve. These include products that cater to first time subscribers to advanced business

devices and high performance multimedia devices for imaging, music and gaming.

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Nokia has been working closely with operators in India to increase the geographical coverage

and lower the total cost of ownership for consumers. Today, Nokia has one of the largest

distribution network with presence across 1,30,000 outlets. In addition, the company also has

Nokia Priority Dealers across the country and Nokia ‘Concept stores’ in Bangalore, Delhi,

Jaipur, Hyderabad, Chandigarh, Ludhiana, Chennai, Indore and Mumbai to provide customers a

complete mobile experience.

Services business

With the global launch of Ovi, the company's Internet services brand name, Nokia is renewing

itself to be at the forefront of the convergence of internet and mobility. From being a product

centric company, Nokia is now focusing to become solutions centric. The strategic shift is built

on Nokia’s bid to retain consumers and empower Nokia device owners to realise the full

potential of the Internet. Nokia will build a suite of Internet based services like Nokia Maps, the

Nokia Music Store and Nokia N-Gage around its Ovi brand.

Infrastructure business

Nokia Siemens Networks is a leading global enabler of communications services. The company

provides a complete, well-balanced product portfolio of mobile and fixed network infrastructure

solutions and addresses the growing demand for services with 20,000 service professionals

worldwide. Its operations in India include Sales & Marketing, Research & Development,

Manufacturing and Global Networks Solutions Centre. Headquartered in Gurgaon, Nokia

Siemens Networks has 47 offices and presence in over 170 locations across the country.

R & D centers

Nokia has three Research & Development centers in India, based in Bangalore and Mumbai.

These R&D hubs are staffed by engineers who are working on next-generation packet-switched

mobile technologies and communications solutions to enhance corporate productivity.

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The Center in Bangalore, the biggest R&D site in the country comprises S60 Software

Organization, Common Technologies, Next Generation now called Maemo Software,

Productization and Software & Services.

Design Studio

Nokia has set up its first Design Studio in Bangalore in partnership with Srishti School of Art,

Design and Technology. The first of its kind, the design studio will give Nokia designers and

India’s talented youth the opportunity to work together on new design ideas for India and the

global markets.

Manufacturing in India

Nokia has set up its mobile device manufacturing facility in Chennai, India to meet the

burgeoning demand for mobile devices in the country. The manufacturing facility is operational

with an investment of USD 210 million and currently employs 8000 people. Nokia has recently

announced fresh investments to the tune of US $ 75 million towards its manufacturing plant in

Sriperumbudur, Chennai for the year 2008.

Some firsts for Nokia in India

1995 – First mobile phone call made in India on a Nokia phone on a Nokia network

1998 - Saare Jahaan Se Acchha, first Indian ringtone in a Nokia 5110

2000 - First phone with Hindi menu (Nokia 3210)

2002 - First Camera phone (Nokia 7650)

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2003 - First Made for India phone, Nokia 1100

2004 - Saral Mobile Sandesh, Hindi SMS on a wide range of Nokia phones

2004 - First Wi-fi Phone- Nokia Communicator (N9500)

2005 – Local UI in additional local language

2006 – Nokia manufacturing plant in Chennai

2007 – First vernacular news portal

Some Achievements for Nokia

Ranked No 1 Most Trusted Brand Survey by Brand Equity, 2008

Ranked the No 1. MNC in India by Businessworld, India’s leading business weekly, 2006

Ranked as the No. 1 telecommunications equipment vendor in the country by Voice &

Data for five consecutive years –2008, 2007, 2006,2005 and 2004

Ranked as the 9th most powerful brand by Millward Brown’s BrandZ 2008

Ranked world’s 4th most valuable brand by Interbrand, 2007

Ranked Asia’s most trusted brand by the Media-Synovate, 2006

Products Mix of Nokia

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Offered to customer are

Nokia N90Nokia 6300 Nokia 95

Nokia 7710

Nokia 7280Nokia N 81

Nokia 5300

Nokia 6681

Nokia 6680 Nokia 6670 Nokia 3600 Nokia 6260

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Nokia 6255 Nokia 6235 Nokia 6230i

Nokia 3230

Nokia 1100 Nokia 2100 Nokia 2690

Market Segmentation of Nokia

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Nokia’s Climate Strategy

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Nokia aims to be a leading company in environmental performance. The way we address the

global challenge of climate change through energy efficiency in our products and operations is

an integral part of our overall environmental strategy.

Although Nokia is not an energy intensive company and most of the CO2 emissions take place

either in component manufacturing by our suppliers or in the use phase of our products, we want

to show leadership. We do this by reducing our own CO2 footprint, raising consumer awareness

on measures they can take to reduce their own footprint, driving best practices in our industry

and influencing other industries to make full use of the potential of ICT and mobility in reducing

emission.

Nokia's climate strategy includes specific targets covering areas that contribute to our direct and

indirect CO2 emissions. The four main areas are:

Nokia products and services

Nokia operations

Nokia facilities

Leveraging mobile and virtual tools in the way of working and management practices.

We provide a statement of verification for some key targets.

To participate rasing public awareness Nokia signed an international communiqué, along with

over 150 other global organizations, ahead of the December 2007 United Nations Climate

Change Conference in Bali, Indonesia. It urged world leaders to develop policies and measures

for the business sector to contribute to building a low carbon economy to help tackle climate

change. Nokia's participation demonstrates our support for the belief that the benefits of strong,

early action on climate change outweigh the costs of doing nothing.

Since January 2008, Nokia has been a member of WWF's Climate Savers, a programme where

WWF and businesses collaborate to address climate change. Being a member of this programme

reinforces our commitment to energy saving in our operations, ways of working and products.

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Minimising our environmental footprint

Nokia's environmental work is based on life cycle thinking. This means that we aim to minimise

the environmental impact of our products throughout our operations, beginning with the

extraction of raw materials and ending with recycling, treatment of waste, and recovery of used

materials. We achieve this by better product design, close control of the production processes,

and greater material reuse and recycling.

Our environmental efforts focus on four issues:

Substance management. We work closely with our suppliers and require full declaration

of the substances we use in our devices. Our work is based on the precautionary principle

and we aim at continuously reducing the amount of substances of concern. In addition,

we explore the opportunities for using new, more environmentally friendly materials,

such as bioplastics or recycled metals and plastics.

Energy efficiency. We make sure our devices use as little energy as possible. We also

work to reduce the energy consumption of our operations, and agree on energy efficiency

targets with our key suppliers.

Take back and recycling. We want to increase consumer awareness of recycling, offer

superior recycling in all markets and promote the recycling of used devices through

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specific initiatives and campaigns. The backbone of Nokia's take-back programs are the

collection points of used devices in 5000 Nokia care centres in 85 countries.

Promoting sustainability through services and software. We have developed eco

services for our phones to help people to make sustainable choices and consider the

environment in their everyday lives. A variety of eco services are freely downloadable to

Nokia devices via Ovi store.

Basic principles

Our environmental work is based on global principles and standards. Our targets are not driven

by regulatory compliance but go way beyond legal requirements. Environmental issues are fully

integrated in our business activities and are everyone's responsibility in Nokia. It is a part of

everything we do.

An Expanding Market

The Indian market for mobile phones, in addition to its base of 170 million subscribers, is also

one of the most cost-effective in the world. Call rates in India are among the lowest anywhere --

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making a mobile phone call costs two cents in India, compared with about four cents in China.

The market also has tremendous growth potential. So far, most of the growth has been

penetration-led, which means placing devices in consumers' hands. The bulk of the growth going

forward will be replacement-led, where consumers come back for more. In India, consumers tend

to change their phones faster than in most other places. And whenever they change their phone,

60% are willing to pay a higher price.

Shivakumar offers examples of future services that might be delivered over cell phones. "The

cell phone could be the future bank -- a full branch of the bank. You don't need 20 people, a

security guard or a vault. This is a passbook plus bank rolled into one. It can be your payment

system." Another possible use is navigation, where cell phones could be used to provide maps of

an area where the user is based. Such services, whenever they are launched, could help Nokia

keep going and growing in India.

Work Performed By Marketing Channels

Today, the markets use to delegate some of the selling jobs, to intermediaries for the

effective distribution of the products at the right time, at right place and right customers.

Delegation means relinquish some control over how and whom the products are sold, but

producers do again several advantages by using intermediaries :

Many producers lack the financial resources to carry out direct marketing. For example,

General Motors sells its cars through more than 8,100 dealer outlets in North America

alone. Even General Motors would be hard-pressed to raise the cash to buy out its

dealers.

In some cases direct marketing simply is not feasible. The William Wrigley Jr. Company

would not find it practical to establish small retail gum shops through the world or to sell

gum by mail order. It would have to sell gum along with many other small products and

would end up in the drugstore and grocery store business. Wrigley finds it easier to work

through the extensive network privately owned distribution organizations.

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Producers who do establish their channels can often earn a greater return by increasing

their investment in their main business. If a company earns a 20 percent rate of return on

manufacturing and only a 10 percent return on retailing. It does not make sense to

undertake its own retailing Intermediaries normally achieve superior efficiency in

making goods widely available and accessible to target markets. through their contracts,

experience, specialization, and scale of operation, intermediaries usually offer the firm

more than it can achieve on its own.

Intermediaries smooth the flow of goods and services. This procedure is necessary in

order to bridge the discrepancy between the assortment demanded by the produce a large

quantity of a limited variety of goods, whereas consumers usually desire only a limited quantity

of a wide variety of goods.

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Distribution Channel Flows :

1. PHYSICAL FLOW

2. TITLE FLOW

Channel Levels :

The producer and the final customer are of part of every channel. We will use the

number of inte4rmediary levels to designate the length of a channel. The above figure illustrates

several consumer goods marketing channels of different lengths. Collectibles through mail order.

Shearson-Lehman brokers use the telephone to prospect for new customers some exercise

equipment manufacturers sell through TV commercial or hour-long “information’s”. Amazon

sells books on line, and Gateway sells computers through its own stores.

3. One Level Channel : It contains one selling intermediary, such as a retailer.

4. Two- Level Channel : It contains two selling intermediaries. In consumer markets, these are

typically a wholesaler and a retailer.

5. Three-Level Channel : It contains three intermediaries.

About end users and exercising control becomes more difficult as the number of channel

levels increases.

End users and exercising control becomes more difficult as the number of channel levels.

40

Suppliers Transporters Manufacture Warehouse

re

Distributers

Dealers Customer

Suppliers Manufacture Distributers

dealers Customers

Competitors of Nokia in INDIA

Nokia is getting a lot of competition by Indian companies & as well as from new foreign

companies.

41

42

DATA ANALYSIS

&

INTERPRETATION

43

Q.1 Do you have a mobile?

Ans. Yes = 30

No = 00

Nokia Samsung

0

1

2

3

4

5

6

7

8

9

10

Series1

44

Q.2 Which mobile phone you are using

Ans. Nokia = 13

Samsung = 9

Micromax= 3

Sony Ericsson = 4

Alcatel = 1

NokiaSamsungSony EricssonMicromaxBlackberry

45

Q.3 What are the reasons for using above mentioned mobile phone?

Ans. Quality = 11

Technology= 10

Features= 9

Nokia Samsung Sony Ericsson

0

1

2

3

4

5

6

7

8

9

10

Series1

46

Q.4 Do you like Smartphone?

Ans. Yes = 26

No = 4

NokiaSamsung

47

Q.5 If you get a chance to buy a Smartphone then which would you prefer…..

Ans. Blackberry = 13

Apple ipad = 8

Google Android= 6

Nokia symbian = 3

Nokia Samsung Sony Ericsson Micromax0

1

2

3

4

5

6

7

8

9

10

Series1

48

Q.6 What you like in Smartphone?

Ans. Quality = 8

Technology= 13

Features = 9

NokiaSamsungSony Ericsson

49

Q.7 Which will you prefer to buy with same features & at same price?

Ans. Nokia mobile = 7

Smartphone = 23

Nokia Samsung0

1

2

3

4

5

6

7

8

9

10

Series1

50

Q.8 Which is your favorite brand?

Ans. Nokia = 9

Samsung = 4

Sony Ericsson=5

Micromax =1

Blackberry = 11

NokiaSamsungSony EricssonMicromaxBlackberry

51

Smartphone market share in 2010

52

53

54

Findings by market survey

As we know that market share of Nokia is declining because of many reasons. These

reasons are followings…..

1. If we talk about rural market, people like Chinese & domestic mobiles because of low

price & more features.

2. Those who know about Smartphone they always like to buy blackberry, apple ipad,

android etc.

3. New foreign companies & Indian mobile companies are also giving a lot of

competition to Nokia because of low price & more features.

4. Many people want to purchase Blackberry, Android & Apple ipad due to its

technology.

5. Nokia’s mobile are costly while Chinese or other mobiles companies like Lava, G5

are providing same feature mobile in low price.

55

Limitations

1. The researcher visited so many retailers & talks to respondents but due to lack of free

time some retailers & respondents have not given their response.

2. Sample size of 50 was very less.

3. Many respondents did not want to show their proper information regarding the company

products.

4. Some of them were not providing the information by using telephone calls.

56

Conclusion & Recommendations

After analyzing the questionnaires and findings I would like to recommend the following points

to the company so that it could be helpful to the company to increase their market share and a

brand image in the mind of the potential customers of company’s products.

1. I would like to suggest that the Marketing areas for Sales should be increased. They

should try to adopt new strategies to regain whole sales force in the market.

2. As far as Launching of New Models is concerned, The Company should try to offer sales

of such products at a affordable Price.

3. The Company should try to bring attractive offers & discounts to the customers to make

them more Brand Loyal towards them.

4. Research should be carried out on a large scale & in selected areas.

5. Company should focus on rural market also.

During market survey the researcher had realized that India has vast potential for the mobile

industry and it needs aggressive marketing strategies to tap the untouched area and to withhold

position in the market.

57

Bibliography

1. www.google.com

2. www.wikipedia.org

3. www.nokia.com

4. www.scribd.com

58

JAI MATA DI

Questionnaire of Nokia.

Q.1 Do you have a mobile?

Ans. (a) Yes (b) No

Q.2 Which mobile phone you are using

Ans. (a) Nokia (b) Samsung (c) Sony Ericsson (d) Micromax (e) LG

(f) Motorola (g) Blackberry (h) Alcatel (i) G5 (j) Lava

Q.3 How long you are using mobile phone?

Ans. (a) Less than 1 year (b) 1-2 years (c) 2-4 years (d) Above 4 years

Q.4 What are the reasons for using above mentioned mobile phone?

Ans. (a) Quality (b) Design (c) Features (d) Brand Name (e) Technology

Q.5 Latest Mobile facilities which you are aware of…

Ans. (a) 3G (b) GPRS (c) Video call (d) Internet

Q.6 Do you like smartphone?

Ans. (a) Yes (b) No

Q.7 If you get a chance to buy a smartphone then which would you prefer…..

Ans. (a) Blackberry (b) Apple ipad (c) Google Android

(d) Nokia symbian

Q.8 What you like in smartphone?

Ans. (a) Quality (b) Technology (c) Design (d) Features

(e) Brand Name

59

Q.9 Which will you prefer to buy with same features & at same price

Ans. (a) Nokia (b) Smartphone (c) Other mobiles

Q.9 Which is your favorite brand? (Please choose your three favorite brands in order of

preference from the brands in the table below. 1-most favorite, 2-favorite, 3-least favorite, 4-not

favorite)

1 2 3 4

Nokia

Samsung

Sony Ericsson

LG

Motorola

Apple iPhone

BlackBerry

Google Android

G5

Micromax

Q.10 Do you think that Nokia mobiles are more costly than other mobiles?

Ans. (a) Yes (b) No

Name..

Age…..

Occupation…….

C. NO.-

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