Assignment

On
Customer Driven Marketing Strategy
Of

1
 Assignment
On
Customer Driven Marketing Strategy
Of

Principles of Marketing (MKT 101)

Summer 2010

Submitted To
Kashfia Ahmed
Senior Lecturer
Department of Business Administration
East West University

Submitted by
Md.Mehedi Hasan 2009-3-10-076
Arman Khan 2009-3-10-034
Md.Nazmul Hasan Bhuyan 2009-3-10-022
Amit Saha 2009-3-10-024
Benzir Ahmed 2009-3-10-013

Date of Submission: July 15, 2010

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 LETTER OF TRANSMITTAL
December 08, 2009
Kashfia Ahmed
Senior Lecturer
Department of Business Administration
East West University

Subject: Submission of Assignment.

Dear Sir:

We are very pleased to submit this assignment on “Warid” as you have authorized us to
in this semester.

We are honored to prepare this assignment under your guidance since it gave us the
opportunity to know the current Management Objectives of “Warid” and analyze its
business performance nad competitive advantage.

We tried our level best to accumulate the information for you as comprehensive as
possible. We will be obliged to provide further clarification on this report whenever
necessary.

Sincerely Yours,

Md. Mehedi Hasan [2009-3-10-076] ________________

Arman Khan [2009-3-10-034] ________________
Md. Nazmul Hasan Bhuyan [2009-3-10-022] ________________
Amit Saha [2009-3-10-024] ________________
Benzir Ahmed [2009-3-10-013] ________________

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 ACKNOWLEDGEMENT

We would like to express our gratitude and indebtedness to our honorable faculty, Ms.
Kashfia Ahmed, Senior Lecturer, Department of Business Administration, East West
University (EWU). With her inexhaustible guidance, valuable advice, continuous
inspiration, constructive criticism and generosity she helped us to carry out this report
successfully.

We would also like to express our gratitude to the website that helped us to gather all the
necessary information.

Finally, we would like to thank to all group members that directly or indirectly helped us
to provide and accumulate all the necessary information for the accomplishment of this
assignment.

4
 Table of Content

Seria Topic Name Page Number

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1 Executive Summery 06

2 Introduction 07

3 About The company -Nokia 08

4. Nokia’s Application of Marketing Concept 09

5. Market Segmentation for Nokia 10

5.1 The Segmentation of Nokia conducted on the basis of
Consumer Markets: 11
5.2 The Segmentation of Nokia conducted on the basis of Price: 12

6. Market Targeting of Nokia: 14

6.1. Evaluation the market segments 14
6.2. Selecting Target market Segments 14

7. Positioning and Differentiation of Nokia 15

7.1. Nokia Positioning 15
7.2. Nokia Brand Personality 15
7.3. Nokia Positioning – Product 15
7.4. Nokia Positioning – Price 16
7.5. Nokia Positioning – Place 16
7.6. Nokia Positioning – Promotions 17
7.7. Nokia Positioning Maps 18
7.8. Developing Positioning Statement 18
7.9. Overall Positioning Strategy of Nokia 19
7.10. Differentiation policy of Nokia 20
7.11. Differentiation criteria of Nokia 20

8. Conclusion 21

9. Bibliography 22

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1. EXECUTIVE SUMMARY

Nokia is one of the world’s largest cell phone companies who follow a particular
customer driven marketing strategy, which can be considered as a model for other
company. Nokia segmented the market of world according to their economic condition
and then try to targeting as much as they can. Suppose, Nokia itself launch varieties
models of mobiles at varieties prices and positioning itself as more for more, the same for
less and less for much less. They also try to bring their product differentiation, service
differentiation provide new classic models, features and long lasting batteries. We
hopefully say that, this particular customer driven marketing strategy should be widely
followed to achieve the unified whole.

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2. Introduction

The company we have chosen to analyze in our assignment is the mobile phone giant
Nokia. This assignment tells us briefly what Nokia actually is, its Customer driven
marketing strategy, how they create value for target customer view on the size and sales
of the company and also the Various Market segmentation Strategies, target market
strategies and differentiation and positioning their products to desired market with
customer satisfaction.

Since January 2004, Nokia Group has consisted of four different business groups: Mobile
Phones, Multimedia, Enterprise Solutions and Networks. “In addition, there are two
horizontal groups that support the mobile device business groups: Customer and Market
Operations and Technology Platforms.” In the year 2004 Nokia’s net sales for mobile
phones was 18507 million euro, which went down 12% from 2003. Nokia’s market areas
were Europe/Africa/Middle East (55% of net sales), Asian Pacific and China (25%) and
Americas (20%). Nokia’s market share in Europe was 45.8% in 2003, in 2004 it was
34.8% and in the third quarter of 2005 it was 36%. The average number of personnel for
2004 was 53511. At the end of 2004, Nokia employed 55505 people worldwide. In 2004,
Nokia′s personnel increased by a total of 4146 employees. Nokia’s turnover for the third
quarter of 2005 was 8403 million euro from which mobile phones brought in 62%,
multimedia 17%, Enterprise solutions 2% and Networks 9%. “The year 2004 was
demanding for Nokia. In response, the company set five top priorities in the areas of
customer relations, product offering, R&D efficiency, demand- supply management and
the company’s ability to offer end-to-end solutions. Nokia is making good progress in
these areas, and is now better positioned to meet future challenges.

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3. About the Company

Nokia- Connecting for every major market and

People! protocol, including GSM,
CDMA, and WCDMA.

Nokia Corporation is one

of the world's largest
telecommunications
equipment manufacturers.
With headquarters in
Keilaniemi of Espoo,
Finland, this Finnish
telecommunications
company is best known
today for its leading range
of mobile phones. Nokia
also produces mobile
phone infrastructure and
other telecommunications
equipment for applications
such as traditional voice
telephony, ISDN,
broadband access,
professional mobile radio,
voice over IP, wireless
LAN and a line of satellite Figure 1: Nokia
receivers. Headquarter

Nokia provides mobile

communication equipment

Nokia was established in 1865 as a wood-pulp mill by Fredrik

Idestam on the banks of Nokia rapids. Finnish Rubber Works
established its factories in the beginning of 20th century
nearby and began using Nokia as its brand. Shortly after
World War I Finnish Rubber Works acquired Nokia wood
mills as well as Finnish Cable Works, a producer of telephone
and telegraph cables. All three companies were merged as
Nokia Corporation in 1967. The name Nokia originated from
the river which flowed through the town of the same name
(Nokia).

In the 1970s Nokia became more involved in the

telecommunications industry by developing the Nokia DX

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200, a digital switch for telephone exchanges. In the 1980s,
Nokia offered a series of personal computers called
MikroMikko. However, these operations were sold to
International Computers, Ltd. (ICL), which was later merged
with Fujitsu-Siemens AG. Nokia also began developing
mobile phones for the NMT network.

In 2004, Nokia resorted to similar streamlining practices with

layoffs and organizational restructuring, although on a
significantly smaller scale. Recently, Nokia joined other
mobile phone manufacturers to embrace Taiwanese Original
Device Manufacturers.Nokia signed a contract with BenQ, a
Taiwanese Original Device Manufacturer, to develop three
high- end mobile phones, which are scheduled to retail by the
end of 2005.

4. Nokia’s Application of Marketing Concept

Nokia knows the needs that will satisfy its customers. Part of
the marketing strategy of the company is giving solutions to
its consumers on its demand regarding the mobile services
they need not just in home but also in their business and to the
other aspect of their lives (Nokia Corporation).

Currently, the Nokia had released it new innovation of the

series of mobile phones which are called the N-series. This is
to fulfill its mission of becoming the ultimate manufacturer of
converged mobile devices which offers music players with
cameras and high speed internet access that can be use in the
business services. According, the Tapio Hedman, the Vice-
President of the multimedia marketing, that the advantage of
these digital channels are not only for the purpose of
communication but also as the establishment of the N series
particularly the N95 to be the major brand of its own right.

In order to accelerate the purchasing cycle as well as to divert

the versatility of the mobile phones, the company decided to
have something different in their products as part of the
marketing strategy of the company. This N series product will
definitely be something new and something different compare
to the past mobile phone units. This had resulted to be the
sixth biggest brand in the world; this is according to the 2006
Interbrand survey. The company also explores the more high
tech gadgets as the mp3, the camera, the video graphs and the
multimedia. But, the company doesn’t stop there and it has

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still the planned of moving forward and meet the expectations
of not just the company but also its consumers

5. Market Segmentation for Nokia

Our assignment deals with customer driven marketing

strategy done in leading mobile phone company Nokia. This
part mainly focuses on various market segmentation done by
Nokia Co. Ltd. in the market.

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.

Market segmentation is the process of identifying key groups

or segments within the general market that share specific
characteristics and consumer habits. Once the market is
broken into segments, companies can develop advertising
programs for each segment, focus advertising on one or two
segments or niches, or develop new products to appeal to one
or more of the segments. Companies often favor this method
of marketing to the one-size-fits-all mass marketing approach,

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because it allows them to target specific groups that might not
be reached by mass marketing programs.

The market can be divided into segments by using four

"segmentation basis": Psychographic, behaviorist,
geographic, and demographic basis. The basic criteria for
segmenting a market is are customer needs. To find the needs
of the customers in the market it is important to undergo
market research. Psychographic and behaviorist bases are
used to determine preferences and demand for a product and
advertising content, while geographic and demographic
criteria are used to determine product design and regional
focus.

Nokia, arguably the biggest player in the world, has divided

the market into four segments:

Hi-fliers: The biggest segment as far as Nokia is concerned

consists of 'Hi-Fliers', corporate executives who use a mobile
phone to increase productivity at work. Aged between 25 to
45, the segment looks for data transmission and other
business-related features. In most cases, the company
sponsors the handset, hence price is not a major
consideration.
Trendsetters: In any technology adoption cycle, the first
segment to adopt an emerging technology is dubbed as 'the
early adopters'. For Nokia, these early adopters are
'Trendsetters' who are most receptive to advanced models.
This was the segment at which WAP-enabled models were
aimed.

Social contact: The third segment for Nokia is the upwardly

mobile, socially-conscious segment that uses a mobile to stay
in touch. Today's youth and affluent housewives constitute
two major chunks of the segment.

Assured: The fourth and last segment as defined by Nokia

comprises of CEOs, high-profile celebrities, industrialists and
other high "net worth" individuals. The fact that the segment
cannot do without a mobile phone makes it the 'assured'
segment.

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5.1 The Segmentation of Nokia conducted on the basis of
Consumer Markets:

Geographic

World region – Asia, China

Country – Bangladesh
Cities – Reach out maximum places

Demographic

Age – All age group

Gender – Male, Female
Income – All income groups
Occupation – Every sector
Religion – Irrespective of religion

Psychographic
Social class – All class of people
Lifestyles – Urban, rural, and even far villages

Behavioral
Benefits – Quality
Loyalty status – Strong

5.2 The Segmentation of Nokia conducted on the basis of

Price:
The price ranges are as follows:

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Range 1: (1000tk – 5000tk) Workers and laborers:

• The nokia phones falling in this range are mostly used

by the manual Workers because they cannot
afford a high price mobile phone.
• Some students also use cell phone from this range as
they have the fear of snatch of mobile phone.
• Mobile phones falling in this category are
simple phones who only meet the purpose of
messaging and calling. These phones do not
have additional features such as camera, blue
tooth or infra red.
• The only feature available in this phone is FM radio,
which is most preferred laborers, security and
watch men

Range2: (5000tk – 9000tk) middle manager

• The main users of this segment are middle managers
because they have limited and average salary
and cannot afford to spend it on unnecessary
expenses.
• They do not keep mobile for show off purpose.
• The core feature of this segment is Audio Video
Player, FM Radio, Camera, EDGE, GPRS and
Expandable Memory.
• This segment offers up to maximum 3 hours of talk
time.
• The need to remain in connection with internet, this
segment offers EDGE connectivity so they can
faster access information, including emails or
news clips
• With the VGA camera, users can capture special
moments with images and video clips or
connect to their colleagues using push to talk
technology.
• Affordable, business tool for any occasion.
•

Range 3: (9000tk – 15000tk) university students:

• The cell phones falling in this range are mostly used

and popular in
university or college students.
• These cells have a stylish look and have all the
essential features such

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 as Audio Video Player, FM Radio, Bluetooth,
Camera, EDGE, GPRS
and Expandable Memory.
• They are popular among this group because they have
high resolution mega pixel camera, they like to
click photos of family and friends and they
want to save their memories.

• They have high memory, so they can download songs

videos and share it with their friends.
• They are stylish phones usually used to show off their
personality and attitudes

Range 4: (15000tk – 21000tk) music lovers/ high memory

• This segment contains cell phones for music lovers.

• These mobile phones are specifically optimized for
entertainment, music and games.
• These Music phones offer dedicated music or gaming
keys, expanded memory, large LCD screen
and extended battery performance to provide
quick and easy access to entertainment
content.
• These phones offer up to 18 hours of music
playback, memory for up to 3,000 songs on an
optional 4GB microSD card and dedicated
music keys

Range 5 (21000tk – 30000tk) Communicator/ high and young

business people

• Young and energetic business men fall into this

category of age 30 – 40.
• These people are young and adapt new changes
quickly.
• They are busy most of the time so they want quick
solutions for their problems
• They want easy access to everything. They like
challenging and new things.
• The cell phones falling in this category are business
phones including communicators and high
memory storage phones.
• These phones enable to connect the business people to
one another.

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They have a lot of storage space and connect to GPRS
anywhere. They can take their office work with them and can
even download heavy files.

Range 6: (30000tk - above) Higher Class Executive

• It is both a mobile phone and media player

rolled into one. Similar as the N95 and
G600, the candy bar N82 is packed with lots of
advanced function and features such as
HSDPA, Bluetooth 2.0 with A2DP, Wi- Fi,
integrated GPS, FM radio, microSD and TV-
out.

6. Market Targeting of Nokia:

Through the consistent releasing if the new units of the

mobile phones with different services and difference feature,
the company has its target market that expected to support the
kind of products and services. The company is very optimistic
that their new line of products will going to support by the
target market as the sports enthusiast persons for the sports
services that the phone is offering. To the specified fashion
fanatic for the latest trend and for the updated fashion design
suitable for every their daily lives. The music driven
consumers segment is also the company top target market due
to the music service that the new products have offering.
Including in the said music services are the radio, the mp3,
the XpressMusic, and the music player. In market targeting
we have two jobs:

During market targeting Nokia consider two types targeting

job

1. Evaluation the market segments

2. Selecting Target market segment

6.1. Evaluation the market segments: In evaluation Nokia

follow 3 criteria. Such as-

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Segments Size and growth of Nokia:

Nokia divide their segments on basis of the size of segments.

For each segments they introduce different types of product.
They divide the market according to the financial condition.
For that they are able to sell their product to middle and lower
class people.

Structural Attractiveness of Market Segments:

Nokia looks at the attractiveness of each segment and launch

the desirable products. For instance they had launched
NOKIA 1100 for lower class people and N70 for middle class
people.

Company Objectives and Resources:

Nokia balance their supply on the basis of their company’s

target and available resources.

6.2. Selecting Target market Segments

After doing all evaluation Nokia decide to choose

differentiated marketing policy. They launch different
products for each segment. For example, NOKIA1100-Lower
middle class, 5300-Higher middle class, N-95-High class
executives.

7. Positioning and differentiations of Nokia:

7.1. Nokia Positioning

When Nokia positions its advertisement and market

brand in the crowded communication (though
mobile phone marketplace, not necessarily in these
its message must clearly words) is "Only Nokia
bring together the Human Technology
technology and human enables you to get more
side of its offer in a out of life"
powerful way. The specific
message that is conveyed
to consumers in every

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 Figure-3: Nokia Logo

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 aspiration, 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.

7.2. Nokia Brand Personality

Nokia has detailed many personality characteristics for its

brand, but employees do not have to remember every
characteristic. They do, however, have to remember the
overall impression of the list of attributes, as you would when
thinking about someone you have met. As the focus is on
customer relationships, the Nokia personality is like a trusted
friend. Building friendship and trust is at the heart of the
Nokia brand. And the human dimension created by the brand
personality carries over into the positioning strategy for the
brand.

7.3. Nokia Positioning - Product

The product of the Nokia goes to the high end quality

controls to give its client high tech and quality worth of a
product. Including in the top-end devices of the company is
the new release number of unit which is considered safe and
has the quality of the materials as well as the design and
together its features. Mobile phones accessories as the
headset, the memory card and its features as the camera and
video were some of the clients want in their mobile phones.
To be able to keep abreast to the faster world, it is much
important to determine the updated phones so that the

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company will also be up to date and cannot overcome by its
competitors.

Nokia Product Design

Nokia is a great brand "eye into the soul of the

because it knows that the product".
essence of the brand needs
to be reflected in
everything the company
does, especially those that
impact the consumer.
Product design is clearly
critical to the success of
the brand, but how does
Nokia manage to inject
personality into product
design? The answer is that
it gives a great deal of
thought to how the user of
its phones will experience
the brand, and how it can
Figure-3: Nokia
make that experience various product
reflect its brand character.
The large display screen,
for example, is the "face"
of the phone. Nokia
designers describe it as the

7.4. Nokia Positioning - Price

In cooperation of the local mobile operators, the company

offers a solution which was designed for the low cost of the
ownership and the providing affordable mobile phones. In
this manner, though the products offers a wide range of high
tech features, the company maintains its prices in order for
the consumers can afford the said products. These strategic
prices that the company is offering will benefit not only the
consumers but also the company itself due to the affordable
prices in their service that their company is offering. In this
regard, the company will accommodate and can enhance to its
consumers a good quality the products with an affordable
prices.

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7.5. Nokia Positioning - Place

Through the plan of diversifying its products and its services,

the company offers its business in the United States,
Venezuela, in India, Brazil, Indonesia and to the other parts of
the world which focus on the establishments of the of the
luxury mobile phones, as well as the communication
products. In this manner, the products and the service of the
company will be well-known all throughout the world.
Furthermore, upon diversification the company will expect to
come up for the ample income return. In this manner, the
company also merged and shared its products to the other
service provider company as the awing to have a strong team
building for the promotions and for the continuous providing
high quality services to its consumers.

Then, these companies will provide a technology as well as

the services that will allow the brands and the products to
execute, to plan, to create, measures, and to optimize the
mobile advertisements worldwide. Regarding this team-up,
the products will go to be a high end by providing its
consumers a media sharing solution as well as the
organizations of the shared photos.

7.6. Nokia Positioning - Promotions

There are many promotions that Nokia is doing in order for

them to have a market. Advertisements are the first thing that
the company had done. These advertisements can be through
the television, to the newspapers, to the radio, to the prints
and to the others as the posters. Some of the advertisements
are the worldwide promotions in order for the consumer to
know and the latest trends in the field of the mobile phones.
Promotions are also the strategy of Nokia in order to enhance
the consumers. Distribution of these products also to the other
part of the world will help for the promotions and to the
knowledge of the consumers in the other part of the world.
Providing the quality services and the high technology
products is the bet for the promotions because the consumers
will determine the quality of the products the special and
unique features they will have in the said products.

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The demand of the consumers had pushed Nokia in pursuing
its plan to serve its consumers for the services they want and
they need. Since communication is the ultimate way of
transaction whether formal or in the business sector or the
informal one as the family and the friendly communication.
Regarding this, it will obviously determined that the mobile is
part of every people for whatever reason that is the Nokia is
always and never stop in giving quality services and updating
its products for the benefit of the its consumers.

7.7. Nokia Positioning Maps:

In planning their products differentiation and strategies nokia

of a prepare perceptual positioning maps which show
consumer perception to their particular model verses other
models.

Service

Better Less

High
Apple iphone

N900

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 Price
Sony Ericson W995

Nokia 1100

Low

Figure-04: Nokia positioning Map

The figure shows us that Nokia produce 1100 for lower

income people and N70 for middle class people and N900 for
higher class people.

7.8. Developing Positioning Statement of Nokia

To- Several classes people

Our-

Is- Connect people

That- high featured, durable and economic prices

Positioning Statement: Nokia- Connecting People!

7.9. Overall Positioning Strategy of Nokia: Nokia follows

three types of positioning strategy such as more for more, the
same for less and less for much less.

Price

More The same

Less

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 More

Benefits The same

More More More

for for for
more the same Less
The
same for
less
Less for
much
less
Less

More for more

Nokia offers high performance handsets for much higher
price such as Nokia E series , N series.

Same for Less

In contrast to their competitors nokia offers same features
service for less price. Such as Nokia produces 5300 handsets
for much less price while their competitors like Sony
Ericson , Samsung offer same features for less price.

Less for much less price

Considering lower income people, Nokia produces handsets
with less features for much less prices. Nokia 1100, 1200,
1208 produces to provide least features but high quality at
much less price.

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7.10. Differentiation policy of NOKIA

Product differentiation of Nokia: Nokia launches different

types of models. They have enormous number of mobile.
Especially they have targeted all classes of people abd
launches different models which is totally absent in other
mobile companies. Their products have shaped that easy to
hold, soft key, expressing personality, life styles and mode of
user.

Service differentiation: Nokia is reputed for their long

lasting battery. They also have larger number of dealer
around the world. Recently they started to operate service
center in every district named “NOKIA CARE CENTER”.
By those outlets they provide customers with great service.
These types of differ them from others.

Channel Differentiation: Nokia maintain a huge number of

outlet and distributor. This is one of the strategy by which
they occupy strongest place in south asian country

People differentiation: Nokia’s employees have reputation

for their well behavior and skilled performance. They provide
service the whole world with high reputation for several
years.

Image differentiation: Nokia have particular logo, music,

state like “CONCENTRATE PEOPLE”. All these things
work as image of Nokia and promote their market.

7.11. Criteria for Differentiation of Nokia

Important: Nokia Offer the Consumer to Connect the over

Communicating Network.
Distinctive: Nokia offer the difference from other company
the size, shape, model etc.
Superior: The difference is superior that’s way that Nokia
mobile using process is very easy and comfortable.

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Communicable: Nokia’s Differentiation is communicable
and visible all over the world because it is top mobile selling
company of the world.
Preemptive: Competitors cannot easily copy the difference
because Nokia has serial number, IMEI number and Code
number.
Affordable: Buyers are not paying the differentiation cost of
Nokia mobile. Nokia charge suitable price of each mobile.
Profitable: Nokia have many difference to attract buyers and
finally Nokia try to earn profit.

8. Conclusion

From the above assignment we have come to this conclusion

that Nokia has implemented various segmentation strategies
for its products on a large scale & becoming no.1 leader in the
world of mobile phones. Nokia segments its market according
to various variables. The main segmentation is done on the
basis of price. As per our opinion Nokia had introduced
various schemes to attract people & gain more goodwill into
market. I would like to conclude that Nokia had been
launching various new products & strategies throughout the
year but still it is the no.1 brand leader in mobile phones.
Many people around the globe are purchasing Nokia phones,
as they are very cheap, good & efficient to operate. Nokia
have used better & efficient market segmentation strategies to
market its products according to various segments of
customers in the market. Nokia as such has used all modern
& good techniques to tackle problems of customers in market.
Customer care & feedback is also given more importance.
Better, efficient & advanced techniques are used to increase
the sales of product. Also Nokia is largest manufacturer of
mobile phones in India & also the no.1 leader in it. Various
segmentation strategies and positioning and differentiating
strategies are being enrolled into the market to increase the
sales of the products. New models & their strategies are being
well utilized to enhance the product.

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9. Bibliography

1. www.nokia.com
2. En.wikipedia.org
3. www.scribd.com
4. Principles of marketing –Philip Kotler and
Gary Armstrong, 13th Edition

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