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Term Report
On
Submitted by
Yasir Rafiq
MBA – 3C
Reg No - 6086
Submitted to
Sir Raza Syed
Date of Submission
30 December, 2009
Dear Sir,
I am pleased to inform you that the marketing report you assigned for 30th
December 2009 has been completed.
I have chosen a Nokia Mobile Phone as the topic for the report. This report as
per your instruction has covered all the authentic areas of concern and
contains all the relevant information about the company’s marketing
environment, marketing mix in detail, competitor’s analysis, etc.
I would dearly like to thank you for the faith you showed in our capabilities &
the encouragement you gave us when assigning us the report.
In this report you will experience concise idea about this report in the
executive summary attached. I have tried my best to gather as much
information as possible.
All rules and regulations for the preparation of the formal & marketing report
have been taken into consideration.
Thank you
Yasir Rafiq
MBA - 3C
This project is related with the new product of Nokia-corporation i-e new cell
phone E91 (mobile phones with USB flash drive). The E-series is called
Enterprise series and this new mobile is especially designed for business
professionals and executives hence this segment is its target market. The
E91 is also helpful to the students although it is expensive one. Besides the
features of attaching USB flash drive, it has a complete computer system
with 9GB memory, music system, portable charger and distinguished colors.
The product has been passed through different processes such as customer
Testing, conjoint analysis, BCG analysis.
To work on such a new creative idea was not an easy task. I would like to
thank Mr. Irfan, an expert in mobile technology, on his support.
Among many others who helped with the project, I would like to
acknowledge the great assistance of Sir Mazhar.
Executive summary
Nokia Corporation, a Finland based company incorporated in 1967, is an
international communication company in global leader in mobile hand set
telephones. Nokia has a world wide share of about 40%. Nokia focused on
the key growth areas of wire lines wireless telecommunications. Nokia
produces mobile phones for every major market segments and protocol
including GSM, CDMA, and W-CDMA (UMTS). The corporation also produces
telecommunication network equipment for application such as mobile and
fixed-line voice telephone ISON, broad band access, voice over IP, and
wireless LAN. Nokia’s group structure is slightly different than its
employment structure. Nokia Mobile Phones (NMP) is the world’s largest
mobile phone manufacturer. With its comprehensive product portfolio
covering all consumer segments and standards, Nokia is one of the pioneers
of Mobile Information Society. Nokia’s mission is to enable people to connect
with one another and to information sources regardless of time or place.
Nokia’s technology and applications are designed for human needs and
based on solutions that function seamlessly and effectively together Nokia
Corporation consists mainly of Nokia Mobile Phones, Nokia Networks and
Nokia Ventures. Nokia has an advanced research and development
organization.
This project is related with the new product of Nokia-corporation i-e new cell
phone E 91 (a mobile phone with USB flash drives). The E-series is
called Enterprise series and this new mobile is especially designed for
business professionals and executives hence this segment is its target
market. The E91 is also helpful to the students although it is expensive one.
Besides the features of attaching USB flesh derive, it has a complete
computer system with 9GB memory, music system, portable charge and
distinguished colours.
Nokia music fans will appreciate the dedicated quick cover keys on the
Nokia, which let them quickly and easily control the device’s music features
from the outside of the folded device, for instant tunes wherever they are.
With the advancement of technologies, new and innovative handsets are
being launched in the market from time to time. Among all the widgets
present, the Nokia E Series mobile phones perfectly meet the requirements
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Sciences
and expectations of all the individuals and its huge popularity among the
masses is a clear indication of its greatness. The stunning colours and
amazing designs make them more beautiful and their mind blowing features
are highly capable of fulfilling the requirements of all the professionals and
business executives. We have clearly mentioned the key features of all the
available Nokia E Series phones, so that you don't face any difficulties while
selecting the best ones for you.
The project starts with the market analyses that comprise both the internal
and external environment. This portion is followed by consumer analyses
that include market segmentation, target market, needs evaluation. The
product has been passed through the conjoint analysis The marketing
strategy with its four elements designed for Pakistani business professionals
have also been discussed. Sales have been projected for five years (2009 to
2010) along with cash flow statements. BCG analysis and SWOT analysis of
the new mobile will tell you the position of E 91.
NOKIA
Nokia Corporation, a Finland based company incorporated in 1967, is an
international communication company in global leader in mobile hand set
telephones. Nokia has a world wide share of about 40%. Nokia focused on
the key growth areas of wire lines wireless telecommunications. Nokia
produces mobile phones for every major market segments and protocol
including GSM, CDMA, and W-CDMA (UMTS). The corporation also produces
telecommunication network equipment for application such as mobile and
fixed-line voice telephone ISON, broad band access, voice over IP, and
wireless LAN. Nokia’s group structure is slightly different than its
employment structure. Nokia started of as a pulp, rubber and cable
manufacturing company to a major manufacturer of mobile devices. It’s the
leading manufacturer of mobile devices. Nokia offers a wide range of mobile
devices with the experience in music, video, imaging, gaming and a lot
more. It also provides the services for network operators. Company recorded
revenues of 41,121 Million € in 2007 about 20.3 % increase from 2006.
.NOKIA PAKISTAN
After years of managing Pakistan market from Middle East, Nokia presence
in Pakistan in April of 2008. Imran Khalid Mahmood, Country General
Manager Nokia Pakistan & Afghanistan, said that the opening of this locally
centralized office reflects Nokia’s strong commitment to Pakistan. The Nokia
website still includes Pakistan in the Middle East region though. Many
reasons could be given for Nokia’s move: sixth largest mobile phone market
Some believe that a big reason why Nokia moved in to Pakistan was to
counter the threat of fake Chinese phones. The low-end knock-offs of Nokia
(and other brands) from China had flooded the market and threatened to
erode Nokia’s market share and to dilute its brand. Smuggling of Nokia
phones is another problem. Another positive development is that Nokia
opened customer care centers in Lahore and Karachi. As we wrote before, it
will strengthen their image and promote brand loyalty.
The idea starts with thoughts of cell phone then it linked with next
association i.e. USB flash drive and Nokia book. It is found that the
transference of data every where is not possible. One has to keep lap top
and other necessary equipment with you all the time. This problem is
addressed while conceiving the new product idea. A quick view of data and
all computer functions in a cell phone for business professionals and
students. Conversion of data from USB to cell phone where and when you
want will facilitate business professionals and students at reasonable price
The new idea of adding new features to Nokia E series mobile phone has
been conceived by customer preferences for new features, employee’s
suggestions and creative technique i.e. mind mapping.
RS
Prices 65990 70000
60000
Portable
Yes No
charger
RESULTS
Attribute Portable
Prices Brands Memory
s Charger
Rs
|||
60,000
Rs
|
65,990
Rs
|
70,000
E-series |||
N-series |
8 GB |
8.5 GB |
9 GB |||
Yes |||
No |
Decision to Go for Nokia E91 came out of a latest study conducted by Nokia
pointed out that the people in Pakistan prefer style more than the need of
being connected The study said that for innovation conscious users ‘we need
to offer intelligent and entertaining multimedia functionality in an easy to
use, ultra slim package’. Cell phone users in Pakistan were involved more in
style, which was beyond their expectations. Users in Pakistan needed style
and design more than other features. Youngsters demanded innovation in
multimedia computer that brings the complete experience to a sleeker body.
Nokia has created a very eye-catching device using premium materials to
enclose world-class features and experiences.
Innovators
They are the first to adopt a new idea. They are eager to try a new product
and are willing to take risks.
Early adopters
Are well respected by their peers and are often opinion leaders. They tend to
be younger, more mobile and more creative than later adopters.
Early majority
They avoid risks and delays trying a new product.
Late majority
They are cautious about new ideas.
Laggards or Non-adopters
They prefer to continue past behaviour and are suspicious of new ideas.
Following figure shows the adoption curve for a typical E 91.
The profile for Nokia E-91 customer consists of the following geographic and
demographic:
Geographic:
Demographic:
POSITIONING STRATEGY
When Nokia E-91 positions its brand in the crowded mobile phone
marketplace, its message must clearly bring together the technology and
human side of its offer in a powerful way. The specific message that is
conveyed to consumers in every advertisement and market communication
(though not necessarily in these words) is "Only Nokia Human Technology
enables you to get more out of life “In many cases, this is represented by the
tag line, "We call this human technology". This gives consumers a sense of
trust and consideration by the company, as though to say that Nokia
understand what they want in life, and how it can help. And it knows that
technology is really only an enabler so that you-the customer-can enjoy a
better life. Nokia thus uses a combination of aspirational, benefit-based,
emotional features, and competition-driven positioning strategies. It owns
the "human" dimension of mobile communications, leaving its competitors
wondering what to own (or how to position themselves), having taken the
best position for itself.
➢ Nokia logo
➢ Slogan “Know our past. Create the future”
MARKETING MIX
Price
The skimming price is used for E 91.
Apart from giving the cheap Nokia E Series phones, Nokia also loves to
amaze its customers by showering on them exciting free gifts and interesting
deals. One can get exciting free gifts like laptops, games and many more
and thus, nowhere will you
get such thrilling and exciting gifts along with handsets. These superb
gadgets come with plenty of high-end features like video recorder, camera,
music player, Bluetooth Technology and many more and with the help of
QWERTY keyboard, one can access many more interesting features on these
astounding Nokia phones. Our dedicated 'Customer Care Centre' efficiently
pays heed to all the queries of our esteemed customers. Make efficient use
of this opportunity and so, just hurry and purchase all these exciting latest
Nokia E Series phones along with lucrative free gifts from Nokia. Nokia has
been doing its share of marketing: the signs and hoardings on the road and
media advertisement.
Advertising:
1. Though TV , Sign boards , Bill boards , Radio and Newspaper
2. Broachers , Posters ,Dummies and display stands
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Personal selling:
By product training to Distributer(what is product)
Sale promotion:
1. Gift like Yamaha bike , Philips TV , Mitsubishi split AC , watches and
digital diary
2. With N73 mobile offer 2500Rs original Blue tooth free
3. With 6220 offer leather Wallet
4. With 6300 offer caps and shirts
Premium performance.
The E91 is reliable and durable like other products of Nokia.
Complete information.
Complete information is given on the ads regarding the concerned products.
Counter offensive defense
Nokia has competition with Samsung, Ericsion, Motorola, and Sony Ericsion.
Nokia has to adopt counter Offensive defense by launching innovative
products. E91 is the best example of such strategy.
Nokia has competition with Samsung, Ericsion, Motorola, and Sony Ericsion.
Nokia has to adopt counter Offensive defense by launching innovative
products. E91 is the best example of such strategy. Nokia is the major
supplier of phones and at is located in one of the smallest countries of the
world (5.2 million populations) and one of the most remote countries in the
western economy. Nevertheless, it has grown enormous enterprise by simply
being cost leader and using its advantage to constantly bring about product
innovation and participate aggressively in the market places. Similarly,
people who download music (or the modern day equivalent, if there is a
thing) want an I Pod. In spite of the presence of big names in consumer
electronics like Samsung, LG, Sony-Ericsson and Motorola, Nokia really rules
the mobile phone market all over the world with nearly 40% of the market
share with no close competitors. Nokia is certainly the king when it comes to
brand value, service and experience. The Finnish mobile giant is clearly No. 1
choice in South East Asia including India and China. How they could reach
the top position? Let’s find out.
1. Call Quality
Nokia is known for its circuitry to handle the RF Reception and providing the
best call reception quality. You won’t see users complaining much about the
noise or the disturbances within Nokia phones unless its a problem of the
Nokia's giant production plants will take in an average of around 275 million
components and then spit out 900,000 finished mobile phones at the other
end of the line. Over the past decade-and-a-half Nokia has turned high-tech
manufacturing and logistics into one of its core competencies. Nokia
approached information technology and manufacturing planning. Company
operates nine major handset factories—three in Europe, three in Asia, and
three in the Americas—and it is ramping up a 10th facility in India that will
be able to produce tens of millions of phones per year. A vast and
sophisticated software system manages the procurement and delivery of
those 100 billion parts, which range from basic electronics such as resisters
and capacitors, to pricey processors and color LCDs, to mechanical pieces
such as screws, keypad buttons, and covers. About one-fifth of Nokia's
66,000 employees work in manufacturing.
Nokia corporation place high priority towards Product safety and Consumer
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safety. For Nokia, product and consumer safety is the #1 priority. Some of
the safety issues which are related to E series Mobile phones include battery
related issues.. Four types of batteries are currently available for consumers
ENERGY EFFICIENCY
In our product creation as well as our own operational activities, an
important area for continuous performance improvement is in energy
efficiency. We have consistently been able to reduce the energy intensity of
our products.
FINANCIAL EVALUATION
BUDGETING FOR THE NEW PRODUCT.
Marketing dept of Nokia should allocate 45% from its budget to launch the
new products. This amount will be spent on the following stages;
1. Idea screening 6%
2. Concept testing 10%
3. Product development 20%
4. Test marketing 9%
For strategic reasons, Nokia does virtually all this work itself, rather than
farming it out. Why? To ensure control over the process and keep costs
down. The formula
seems to work. On average, it costs Nokia 69 euros ($87.63) to make a
phone, and on average it sells phones for 102 euros ($129.54), leaving a
gross margin of nearly 33%, better than its rivals can muster.
S
Items 2009 2010 2011 2012 2013
#
36300000 41100000
1 Sales revenue 0 261000000 324000000 516000000
0 0
28500000 32325000
3 Gross profit 0 255150000 253800000 395100000
0 0
-
4 Development cost 300000 0 0 0 0 0
0
-
23055000 26160000
7 Gross contribution margin 300000 216000000 205200000 317700000
0 0
0
8 Supplementary contribution 0 0 0 0 0 0
-
9 Net contribution 300000 21750000 27000000 30250000 34250000 43000000
0
-
1 Discounted contribution 19247787. 23893805. 19889866. 19582548. 21378601.
300000
0 (13%) 61 31 03 66 61
0
-
1 Cumulative discounted cash 16247787. 40141592. 60031458. 79614007. 100992609
300000
1 flow 61 92 95 61 .2
0
ROI = 20%
DEVELOPMENT STAGE
PROTOTYPE PROCESS
The R&D dept has developed the following PROTOTYPE of the product. The
goal is to find a prototype that embodies the key attributes described in the
product test statement that performs safely under normal and conditions
and that could be produced within the budgeted manufacturing costs.
PROTOTYPE PRODUCT
Screen
The screen of Nokia E91 is identical to the screen N96 8GB, featuring the
largest diagonal among all Nokia – 2.8’’, TFT, some of the best screen
quality around. Compare this one to the screen of Nokia N85, powered by the
AM-OLED technology. N85 is notable for much more vivid colors, yet the
palette is more natural with N96, also the latter seems to display a better
behavior in direct sunlight, bringing about less annoying glare. We can’t
Page 26 of 31 Bahria Institute of Management & Computer
Sciences
really say that the screen of N96 is worse than the N85 screen; it’s just in a
way different.
Controls and Keyboard
The block of controls is remarkable for the use of dedicated media buttons;
unlike N85 those are operable outside the player mode. You can use them to
switch tracks or start/stop playback at any moment in any menu, which is
immensely handy. The buttons aren’t of the touch kind; they are mechanical
and very responsive, bringing no trouble at all.
A Navi Wheel is traditionally available, remaining active in all menus and
lists. The sensitive area of the wheel is limited to a thin limbo running along
the perimeter of the navigation element. Moving your finger clockwise or
counter-clockwise allows for rapid playlist browsing in a corresponding
direction. The light indicator sits right in the center of the Navi Wheel and
can be easily turned off. It doesn’t carry out any special functions like a
message or a call reminder, a feature still available on some older Nokia
models.
Connectivity
The availability of Wi-Fi also means the availability of the WLAN Wizard
application, which essentially is a simple program intended to help the user
to arrange network connections in a semi-automatic mode. There are but a
few options, once a network is detected the user is prompted to submit a
number of settings. Network filtering is available, the security standards
include WEP, WPA and WPA2. The scanning period during which WLAN
networks are searched and detected is also adjustable in the options. The
USB version is 2.0, the Mass Storage mode is fully supported, the user is free
to choose from Mass Storage, PC Suite, Image Print or Media Player on
establishing a phone-to-PC connection. Both the memory card and onboard
memory storage are accessible from the PC. During Mass Storage sessions,
the phone doesn't go offline, you can still use its potential to the full. The
Home Media application allows for interaction between the phone and
various devices supporting the UnPNP technology. It has seen some serious
improvements from earlier versions used in N95 and N93. If the only option
available in the initial version was the one allowing to share content stored
on the device, now the smartphone can play content opened from remote
source. We tested this functionality both on a phone-to-PC bundle and
between two different phones as well (N82-to-N95), and found no problems
at all. After adjusting all the necessary settings in the Gallery, the 'broadcast
over home network' options became available, letting browse and play the
content stored on remote devices.
Page 27 of 31 Bahria Institute of Management & Computer
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Battery
Nokia E91 is equipped with a relatively old battery, the same with the
original Nokia N95. It’s a BL-5F unit sporting a 950 mAh power output
capacity. The choice is easily explainable: no higher capacity batteries were
available when the development of N96 started, save for a few samples too
big to fit into the battery bay. The existing battery is on a comparable size
scale with the newer BL-5K battery (1200 mAh, used by Nokia N85), but is a
bit smaller. Neither BL-5K nor BL-6F can fit into the battery bay of N96.
Nevertheless, the smart phone can keep running for a long time regardless
of the relatively low battery capacity, it can run longer than N95, and makes
world records in media recording or playback modes. Not only Feature Pack
2 contributes to this, but mainly the power-saving STMicroelectronics
chipset.
Memory
Once the device has booted, the remaining amount of free memory available
to the user is 90 Mb; the total RAM size equals to 128 Mb, which is quite an
adequate score for a modern smartphone. Heap Size and Jar Size for Java
applications are unlimited.
The onboard storage is divided into two unequal parts: the disk labeled C: is
128 Mb large, of which about 70 are free and the rest occupied by system
files, - this is the place where all the contact and PIM records are stored. The
disk labeled D: is where the various multimedia files are kept. You can safely
format it without causing any damage to the operating system, just take it
for a dumb file container. The D: disk is 16 Gb large. With such a huge
storage massive onboard, it would be interesting to look at the data transfer
speeds:
Multimedia
The player interface looks quite standard, exposing almost no difference
from Nokia N85 or N78; the same interface is used by all latest devices
basing off S60v3 Feature Pack 3. The extra controls come in handy, both the
buttons around the navigation button and the extra buttons on the upper
half of the slider are used for rewinding, playing and pausing. Here we have
a huge advantage over Samsung i8510 which isn't equipped with any extra
player buttons, a flaw which is hardly compensated by the unmatched audio
quality provided by this model.
The audio quality of N96 has been discussed before, proven to be one of the
best among the currently available solution, and absolutely unmatched in
the whole range of S60 Nokia phones. The sound is better than with N78 or
CUSTOMER TESTING
Customer testing has been measured through MONADIC RATING. This
method asks the consumer to rate liking of the product characteristics on a
scale.
Rating
V Hig Averag Lo V
Characteristics
High h e w Low
E-series |||
Memory 9GB || |
Computer
|||
system
Songs and
||| ||
videos
Colours
Blue |||
Black |||
Red ||
COMMERCIALIZATION STAGE
The new Nokia E 91 has carefully been debugged, and is now ready to be
launched. With the advancement of technologies, new and innovative
TIMING
Since Nokia is leader in mobile hand sets therefore wants its each and every
product
to rule the market. Nokia- Pakistan is launching its new product as “first
mover
advantage” thus locking up key distributors and customers and gaining
Leadership.
WHERE
The E 91 will be launched in Karachi, Lahore and Islamabad first. Since
Nokia
corporation is an international org. it will also launch its new product in
Europe,
India, and USA.
➢ Ages 25-50, this is the segment that makes up 80% of the Nokia
mobile phone market according to the NOKIA Ltd.
REFERENCES
1. http://dsl.nokia.co.nz/ni200/index.htm
2. http://dsl.nokia.co.nz/ni500/index.htm
3. http://www.europe.nokia.com/nokia/0,,2375,00.html
5. http://press.nokia.com/PR/200510/1015195_5.html
7. http://press.nokia.com/PR/200605/1051798_5.html
8. http://www.nokia.com/A4136001?newsid=1104232. Retrieved on
2007-02-14