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A Contemporary Report

Nokia: The Brand and its Future in India

MBA: 2nd semester

A report submitted in partial fulfillment of the requirements of PG program


Submitted to:-
Siddharth Institute of Modern Management
Jaipur (Raj.)-302033

Seminar on Contemporary Management issue is an integral part of the course curriculum for
the degree of Master in MBA. It provides valuable experience to management student, this
expose them to functional areas of management.

It also provides them an opportunity to be a part of real corporate world with the same object;
I took my Contemporary Management issue at Nokia India Pvt Ltd. The main points on
which I laid stress were:-

• To gain depth knowledge about the actual working of the company.

• To gain familiar with sales process & strategies of NOKIA in India.

• To know how to do direct marketing and personal selling for the company.

• To know the purchasing behaviour of consumers.

• To know about the competitors of Nokia in India.

• To know about the future of Nokia in India.

The knowledge I have gained has been presented in the form of report has been made in a
manner such that it is easy for the reader to know maximum details in minimum time.

This is to certify that the project report entitled “Nokia: The Brand and Its Future in India”
submitted for the practical fulfillment of paper on contemporary Issues in Semester II
(MBA Program-2009-2011) Pacific Institute of Technology is a record carried out by Sameer
Aggarwal my supervision and guidance.

This is an original piece of work and all references taken have been mentioned in the report.
The literacy presentation of the project is satisfactory.

(Prof. Avantika Srivastavaa)

Head-Management Studies

Jaipur (Raj.)

Perseverance, Inspiration and Motivation have always played a key role in the success of any
venture. Working on this project was a challenge. It is often difficult to understand wide
spectrum of knowledge without proper guidance and advice.

I wish to express my gratitude to Mrs Avantika Srivastava who assigned me this project.
She has been constant source of guidance and encouragement in exploring the nuances of the
project. She took special interest in the study and gave me his guidance and pertinent

Last, but not the least I would like to thank for intellectual simulation, moral support and
constant source of inspiration throughout the project and I gratefully acknowledge the
continuous assistance and inspiration given to me by her.

It has been a privilege and pleasure working under the guidance and experience which will
be cherished for a long time to come.
This acknowledgement is incomplete without rendering impartial gratitude to all those who
has helped me directly or indirectly in making this project a success.

S. No. TOPICS Page No.

1 Introduction 05

2 Objective of the study 06

Company profile 07

 Company Description 8
 Nokia Strategy
➢ Secrets To Nokia’s Strategic Success 9


3 The Indian Mobile Phone Industry 12

4 Nokia in India 14

5 Competitors of Nokia in India 17

6 Future of India 19

7 Literature Review 21

8 Research methodology 23

9 Conclusion 26

10 Recommendation 27
11 Bibliography 30


Nokia is the world leader in cellular phone communications, driving the growth and
sustainability of the broader mobility industry. Nokia, the brand is synonymous with
innovation-some of its innovative products include cellular phones, devices and solutions for
imaging, games and media. Nokia also provides equipment, solutions and services for
network operators and corporations.

Nokia is one of the top cellular brands in India and its one of the most trusted brands in India
according to ET Brand Equity Survey. Nokia has been the favorites brand among different
categories of people in India, since its entry into India; it is the 4th most trusted brand in 2007;
ranked the most respected company in the Indian consumer durables as of 2007 by business
world; one of the most leading telecommunications equipment vendor in the country by
Voice and Data; the Brand of the Year at the Confederation of Indian Industry (CII) Brand
Summit held in Chennai on 16th and 17th February, 2005.

 To analyze the role of brand image in sustaining market leadership

 To analyze the Competitive scenario in the cellular market in India

 To discuss the strategies of Nokia in India

 To analyze the localization strategy of Nokia as a major tool for gaining market

 To analyze the future of the Nokia brand in India


Nokia's history started in year 1865, when engineer Fredrik Idestam established a wood-pulp
mill in Southern Finland and started manufacturing paper. Due to the European
industrialization and the growing consumption of paper and cardboard Nokia soon became
successful. In 1895 Fredrik Idestam handed over the reins of the company to his son-in-law.
Nokia was actually founded in 1965 by Fredrik Idestam in Finland as a paper manufacturing
company. 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 receivers.

Nokia provides mobile communication equipment for every major market and protocol,
including GSM, CDMA, and WCDMA.

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 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; unfortunately, the
company ran afoul of serious financial problems in the 1990s and streamlined its
manufacturing of mobile phones, mobile phone infrastructure, and other telecommunications
areas, divesting itself of other items, such as televisions and personal computers.

In 2004, Nokia resorted to similar streamlining practices with layoffs and organizational
restructuring, although on a significantly smaller scale. This, however, diminished Nokia's
public image in Finland, and produced a number of court cases along with, at least, one
television show critical of Nokia.

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.

Olli-Pekka Kallasvuo
Chairman, President and CEO of Nokia Corporation

Esko Aho
Executive Vice President, Corporate Relations and Responsibility

Timo Ihamuotila
Executive Vice President, Chief Financial Officer

Mary T. McDowell
Executive Vice President, Chief Development Officer

Niklas Savander
Executive Vice President, Services

Richard A. Simonson
Executive Vice President, Mobile Phones, Devices

Alberto Torres
Executive Vice President, Solutions

Anssi Vanjoki
Executive Vice President, Markets


The Nokia Strategy continues to focus on three activities to expand mobile communications
in terms of volume and value:

• Expand mobile voice

• Drive consumer multimedia
• Bring extended mobility to enterprises

Expand mobile voice: We can further the mobile voice market – both in markets where
mobile telephony is just taking off as well as in more mature markets. Nokia estimates the
total global mobile subscriber base to reach two billion by the end of 2005and hit three billion
by 2010.Nokia’s position in mobile voice is strong thanks to our key assets and excellent
logistics capabilities.

Drive consumer multimedia: Nokia is playing a key role in shaping this emerging complex
market by focusing on the fastest growth areas: imaging, music, and games, to name a few.

Bring extended mobility to enterprises: Nokia will provide a range of competitive,

specifically targeted handsets, platforms, and connectivity solutions so enterprises can boost
productivity through the power of mobility.

One can analyze the secrets behind how an enigmatic Finnish Company got an edge over the
Indian giants to triumph as the global leader in mobile communications.

Bold Strategic Intent – While others debate and agonize over first –mover strategies,
Nokia rushes for new opportunities and products. Growing up as a small Finnish
Company with few resources and no incumbent privileges, Nokia is accustomed to
moving swiftly and decisively to claim its share of worldwide markets- from
infrastructure to handsets and software applications.

Innovation through Value Chain – Through technology, innovation and segmentation,

branding and design, Nokia makes innovation a top priority. Like Proctor & Gamble,
it has shrewdly filled the shelves with innovative new products to dominate
categories. Like Sony, it has used its umbrella brand to sell new products and services
and to create footholds in new markets. Unlike its direct rivals (Motorola, Ericsson),
Nokia’s innovation extends from technology innovation to marketing activities.

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

Entrepreneurial Spirit – Like the best Silicon startups, Nokia encourages

entrepreneurialism throughout the ranks and views failure as a learning experience.
Incentives, rewards and lifelong learning permeate the entire company. Humility is
taken seriously at Nokia as in the technology sector, the arrogant of today are
considered losers of tomorrow.
Collective leadership – Nokia relies on its executive board, with each member bringing
something unique

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

Competition and Co-operation – By managing its corporate and government relations

with diplomacy and consideration, Nokia has been able to avoid high profile and
costly anti-trust actions and competition policy struggles. Instead of trying to buy or
crush potential rivals, Nokia works to cooperate with suppliers, partners, clients, even
direct competitors.

Customer Focus – The most enduring factor is Nokia’s ability and willingness to listen
to the customer –a fact apparent in its strategy, structure and resource allocation and
also in its products and services. Due to its foresight, Nokia can not only finger at the
pulse of the market – it often knows what the customer wants even if the customer is
not yet aware of this.

The mobile phones industry made a slow start in India in 1995. Several private players who
had entered the industry in 1995 exited in the next few years due to the unfriendly telecom
policies of the Indian government, high licensing fees and absence of a proper telecom
regulatory body. The growth in the subscriber base of mobile phones remained sluggish
initially, reaching the 1 million milestones in 1998. In 1999, the Government of India
announced a new telecom policy. This policy planned to provide telephones on demand by

Among other things, the policy allowed unrestricted private entry into almost all mobile
service sectors. The government allowed cellular mobile service providers to share
infrastructure with other operators. It also allowed existing operators to migrate from fixed
license fee to one-time entry fee with revenue sharing. This policy helped many private
operators to break even faster. By 2001, the demand for mobile services was growing well.
The private companies concentrated on providing basic telephone services to consumers. The
number of mobile phones crossed five million by 2001 and doubled to 10 million in 2002.

According to the data from the ‘Indian Cellular Phone Market 2006’, a statistical handbook,
India has become the third largest population to use cellular phones in the world by year 2007
having 100 million users.

India is the world’s fastest growing cellular phone market and is set to emerge as the second
largest hub for global cellular handsets leader Nokia. India had 166 million cellular phone
subscribers in 2006 and will soon surpass US. Most of these subscribers are in urban areas.
Large cellular phone service providers have identified the rural market as the next
opportunity. The government is also subsidizing roll-outs of cellular phone services in rural
markets. The growth of the cellular phone subscriber’s base has increased at a rapid place
between 1995 & 2006 in India.
Cellular phone services in India continue to grow faster and the companies have added over
5.4 million subscribers in June 2007. At the end of 2007, total GSM customers stood at
1360.6 million. There was an overall growth of 4.12% over the previous month and 5.4
million new user additions during June 2007.


Nokia has played a pioneering role in the growth of cellular technology in India. Nokia
started its Indian operations in 1995 and presently operates its offices in five main cities
namely, New Delhi, Mumbai, Kolkata, Bangalore, Ahmadabad. Its Indian operations include
handsets and network infrastructure business in which Nokia Siemens (Nokia merged its
telecom network operations with Siemens. They also agreed to merge their equipment
division into a joint company) has made a significant progress in realizing business
opportunities and increasing market share. The Nokia Siemens Network is a key supplier to
all the top GSM operators including Bharti, BSNL, Vodafone, IDEA, BPL. Since then the
Nokia brand has been steadily growing and has gained wide acceptance in the Indian market.
Indai is the third largest market for Nokia, in terms of its net sales as of 2006. It is the most
trusted brand in India and leads other cellular phone brands in terms of market share,
advertising and customer service.

In April 2005, Nokia India, a subsidiary of Finland-based Nokia, announced that it was
setting up a manufacturing facility for mobile devices in Chennai, the state capital of Tamil
Nadu in southern India. Nokia planned to invest US$ 100-150 million in the facility, where
the production was expected to begin in the first half of 2006.

Pekka Ala-Pietilä, President and Head of Customer & Market Operations, Nokia Corporation
said, “Establishing a new factory in India is an important step in the continuous development
of our global manufacturing network.” India was ideal for Nokia's new production facility.
Each mobile handset has more than 400 parts and the average production capacity of each
manufacturing unit of Nokia is around 20 million units.

This level of manufacturing involves a total of 8 billion components per annum, requiring
strong logistical support. Nokia's manufacturing facility needed to be located close to a major
international airport or sea port for quick supply of components. India met all these
requirements, and also enjoyed cheap manpower costs and proximity to the rapidly growing
Asia Pacific markets.

Besides, Nokia was the market leader in mobile communication devices in India. The
company has been carrying out sales & marketing, customer care and research &
development activities in the country. Nokia considers India to be one of its most important
markets. The company's Code Division Multiple Access (CDMA) facility is located in
Mumbai and provides software and technical support to CDMA consumers in India and other
Asia Pacific countries. In 2004, Nokia was chosen as ‘the most respected consumer durables
company' by Business world. The magazine wrote, “This Finnish Company’s debut at the top
of the heap says two things.

In 2005, Nokia was recognized as the ‘Brand of the Year' by the Confederation of Indian
Industry, India's apex industry association. The company was chosen for this award because
of its high brand recall, well established distribution channels and being 'most preferred' by
the consumers.
A survey on consumer awareness was conducted by ‘The Environment Protection and
Consumer Rights Organization’ (ECOCON), a student body of Symbiosis Society’s Law
College. The survey has acted an effective tool in their attempt to understand the mind of the
consumer. In the cellular phone handset category, Nokia is clearly the most preferred brand.
The other comparing brands were nowhere in the foray, not even touching a double-digit

Some firsts for Nokia in India

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


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

2000 - First phone with Hindi menu (Nokia 3210)

2002 - First Camera phone (Nokia 7650)

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


In the fast growing Indian cellular phone market, competition between cellular phone
manufacturers is highly increasing and retaining the brand position becomes a major task for
the companies. The major competitors started offering specialized products to specific
segment. The major competitors of Nokia brand in India are Motorola, Sony Ericsson and
Samsung. For instance, the competitors started offering Cyber Shot cellular phones targeting
the customers looking for camera phones. Sony Ericsson on product range, competitive
pricing, and good distribution lead, and continues to lead the competitors.

In 2007, Nokia launched 33 models; Motorola launched 18 models and Sony Ericsson
launched 17 models. The remaining players launched close to 53 models. Nokia’s new
models 2007 which include Nokia Barracuda, Nokia 1200 and Nokia 2630 face competition
from the Samsung’s SGH-C300 and Motorola’s W215, W209, W205 and the F3 cellular
phones which do not have a camera or Bluetooth. All these popular brands have a price
advantage. However, analysts suggest that by the time Nokia’s new low-priced phone enter
the market, cellular addicts would have used the other brand models and would have started
looking forward to a change.

Motorola had a commanding lead in the analog cell phone market, but failed to jump on the
digital bandwagon. Motorola has always been one of the most trusted brands in cellular phone
communications. Motorola cellular phones are reported to have lesser breakdown than the
cellular phones. In 2007, Motorola entered the music phone market. MotoRokr was the
answer to Nseries and Walkman. MotoRokr made its presence felt in the market not because
of the product but because of its advertising strategy. The advertisements for MotoRokr were
hilarious and striking.

Sony Ericsson is one of the leading players in the cellular phone market. Cellular phone
manufactured by Sony Ericsson have not only the attracted the existing customers but also
made a striking impact on investors in the Indian market. Their solutions are at par with the
market requirements and their product plans are strategized on the growing needs of the
customers. Sony Ericsson cellular phones are stylish, and technology used makes them
compete with the best in the market. Some applications in Sony Ericsson cellular phone like
UIQ. World mate 2006 professional edition for UIQ 3, SMS guard, etc., carry Sony Ericsson
cellular phones to contemporary standards. The variety and quality provided by Sony
Ericsson’s cellular phones have appealed to consumer tastes.

Samsung has a strong association with the Indian commercial market. Technology has been
skillfully implemented in Samsung cellular phones. Samsung conducts a continuous survey
on customer needs and produces the products in the market. Good designs, imperessive
technology and harmonious features are some of the predominating parameters that slot
Samsung as one of the topmost contender in the cellular phone market scenario. Samsung
cellular phones embody new technologies like dual camera, 3G, Bluetooth, 4G, etc.

Even though Nokia faces competition from these industry players, it has managed to hold on
its leading positions. But the situation is getting tougher by the day.

Market share of Cellular Phone Handset

Manufacturers In India

Market Share of Nokia

Company 2008 2009

1. Nokia 70.8% 61.2%

2. Motorola 5.6% 11.6%

3. Sony Ericsson 8.1% 11.7%

4. Samsung 6.4% 5%

5. LG 2.5% 1.4%

6. Others 6.6% 9.1%

In the list of advertisers of cellular phones in India, Nokia came first by 45% share, Sony
Ericsson comes second with 20% share followed by Motorola with 14% share. And the rest
was captured by Samsung and LG with 9% and 7% respectively.


Nokia Siemens Networks will invest up to $100 million in India in a move to strengthen its
grip on one of the fastest-growing markets for telecommunications equipment. The
investment includes setting up a manufacturing plant for wireless network equipment in the
southern state of Tamil Nadu and establishing offices in cities across India. The company will
also boost the operations of its research centre in Bangalore.

Nokia focuses on providing consumers with a technology that is intuitive, a joy to use, and
unusual appearance. Nokia’s strategy relies on growing, transforming, and building the Nokia
business to ensure its future success. Nokia would continue to invest ‘heavily’ in retail, field
force, network, marketing and research.

Nokia decided to rework its 10-year alliance with its distribution partner HCL Info systems.
The new agreement has led to Nokia venturing into direct distribution and sales for the first
time since its entry into India a decade ago. Even a HCL Info system continue to remain its
sole distributor and marketing partner, till 2011. Nokia expects its broad sales network, brand
cachet and commanding market share to keep it ahead in India despite an aggressive push by
rivals into the world’s fastest-growing cellular phone market. With more than 6 million new
customers in India each month, many attracts by call rates as low as 1 US cent a minute,
rivals such as Samsung and Sony Ericsson have rolled out low-cost models and expanded
their footprints by signing up new retailers. By the end of 2010 Nokia expects 300 million
new cell phone users in India.

India is finally catching up with the leading Chinese market. The Indian government is on
talk about having 500 million phones by 2010. According to the Telecom Regulatory
authority of India, India has about 170 million phone subscribers. In September 2006 alone,
India has added about 6.1 million cellular phone connections.

Inevitably, the global telecom majors are taking notice and Nokia, LG and Motorola have put
up factories to manufacture cellular phones in India because of Indian market which supplied
their products from other countries for so many years in the past. Nokia’s former chairman
was quite clear about their reasons for moving towards India. ”Nokia estimates that India will
became the world’s second biggest cellular phone device market when measured by volumes
in year 2010.” Other market research companies have estimated that India will, in fact,
overtake China when it comes to selling cellular phones instruments by around 2010.

Predictions reveal an unceasing cellular phone phenomenon for the years to come. Market
foresees tremendous growth in this technology, and targets potential markets like the youth
market and business sectors steadily employing cellular phones in their routines. The targets
influence the market in a great way and help combat tough competition. Cellular services
segment in India is expected to more than double to USD 8.95 billion and is expected to reach
USD 25.617 billion by 2011, growing at a Compounded Annual Growth Rate (CAGR) of
18.4%. Cellular market penetration is also projected to increase focus on the rural market. By
2011, it is expected that 58% of the rural population and 95% of the urban population will be
covered with cellular phone connections.

With more marginal users in the market, low service costs and inexpensive handsets may help
to facilitate adoption of cellular phone services. The growth, however, would be restrained
because of inadequate investment in or upgrading of networks. This could have an impact on
expansion plans and the quality of service. There are indications that there is still scope for
reducing cellular phone tariff, although call rates have reduced to about 2.6 cents per minute,
it is still high compared with fixed line rates at 0.9 cents per minute. The rural market
presents immense growth opportunities, as cellular phone penetration was just 2%. Many
companies are planning to tap this market by introducing handsets that costs below USD 25.
In this competitive Indian cellular phone market, can Nokia retain its success and reach the
top position in the ET Brand Equity Survey in future?

In recent years, the adoption of the mobile phones has been exceptionally rapid in many parts
of the world and e especially in India, where cellular phones are nowadays almost as common
as wrist watches.

Although it is evident that the large players in the telecommunication business constantly
conduct market research, the problem is that the results are obtained are usually kept inside
company walls and therefore consumer behaviour in mobile phone industry is an unexamined
genre in academic literature.

The trend that mobile phones are purchased earlier and earlier was verified with the data.
While looking at oldest surveyed group three (older university students) majority of them
bought their first mobile phone at the age of 18 (24%), followed by the age of 19 (23%) and
20 (15%). In comparison, 33% of the youngest group (secondary school students), acquired
their first mobile phone at the age of 15.

Price and properties were regarded as the most important motives affecting the decision to
purchase current mobile phone model among the respondents as displayed. According to the
survey close to 80 percent and over 85 percent, for price and properties respectively, felt that
price and properties had affected their decision making at least relatively much.

Price might have dominated the decision making in the sample more than it does for the
whole population, as the average net income in the target group was relatively low.
Conclusion - The exploratory study was conducted to increase our understanding of the
mobile phone market in general and analyse consumer decision making in particular. The
study attempted to cast light on the much unexamined area of the mobile phone purchase,
operator choice, and use of the mobile phone services.

The main result of the study indicates that:-

1. First of all the age of purchasing a mobile phone among young Indian has lowered in just
few years from 18-19 to 14-15.

2. Secondly, the factors underlying purchase of a mobile phone were found to be

manufacturer, market condition, and influential persons. For the choice of operator the factor
were found to be features and brand, components in pricing, quality and influential persons.

3. Thirdly, only about 15% of the respondents felt that their use of mobile services would
increase in the next 12 month.

Research methodology is a systematic way to solve the research problems; it refers to search
for knowledge, a scientific and systematic search for information. Marketing research is the
systematic design, collection, analysis and reporting of data and finding relevant to a specific
marketing design, collection, analysis and reporting of data and finding relevant to a specific
marketing situation facing the company.

Data collection

Data collection means collections of information, facts or figures for the problem.

Primary data collection- Primary data is the first hand information obtained by investigator.
Primary source is one itself collects the data.

Primary data can be collected by observation, by interviews, by face to face questioning, by

using questionnaire, when the needed data do not exist or are dated, inaccurate, incomplete,
or unreliable.

Secondary data collection – Secondary data is collected by others already and the researcher
is using that information for his own research purpose. Secondary data can be collected from
published reports , newspaper, websites, journals, publications of national and international

Sampling plan:

Sampling unit - Walk-in customers

Sample size - 50

Sampling Instruments- Questionnaire, face to face interview

Data Analysis

Findings from the Questionnaire:-

Q.1: Which company’s handset preferred by people?

Q.2: Why people prefer Nokia mobiles?

Q.3: Which age group mostly preferred Nokia handsets?

Q.4: Is the prices of Nokia handsets are according to the features of handsets?

According to the survey and analysis performed, the result concluded that that Nokia is the
most preferred brand among all the companies.

It is providing a huge variety of services to the lower, middle and upper citizens making an
overall winning performance in the Indian cell phone market.

Other companies also providing a good variety of mobile phones but they are not competent
to the Nokia.

Nokia is Preferred because:

➢ Wide Range of mobile handsets

➢ Prices that suits to all category of people
➢ Customer satisfaction
➢ After sale service
➢ Market position
➢ Features

However, now the sales of Nokia is continually falling because of Chinese mobiles and other
local Indian mobile cellular phone manufacturers but most of the people still preferred Nokia
mobile because of good market position and customer satisfaction level. Nokia have still lots
of opportunities to grab. The company continually doing market research and soon it will
again make growth in the market.

Nokia can do an excellent job to make the mobile phone easy to use. In order to maintain the
leader position of mobile phone market, the company should closely focus on the tendency of
marketing development.

It would be good for Nokia to make out specialized products for enterprise markets. These
specialized products’ functions would be to make the connection more quickly and handily
than before. The enterprises could involve big companies, hospitals, government
organizations etc.

Some advantages attached to this approach are:

1. The group market is a long run market. The enterprise wouldn’t change these products
easily and they may require updating after a period of time.

2. This group market may get further marginal profits than the individual market and the
rate of return over cost will be improved as well this is because the competitors will
be less in the group market than the individual market.

Analyzing the current business situation, Nokia needs to:

✔ Differentiate its products capability between the old and new category.

✔ Enhance its products with computer IT compatible, focusing on new technology users.

✔ Maintain its price reasonable.

✔ Follow, practice and promote its environment policies.

It is also essential to treat the services and the products as equally important. The provision of
a service can be attractive in itself. Developing a good understanding of how your products
and services will be used and how they will change is important. Operators may well find
themselves positioning R&D as a means to promote the use of bandwidth and focusing on
service creation.
While remaining flexible and alert to change, a company should build on standards. In a
world where services will be delivered across a variety of components, one needs their
component to ‘fit in.’

Other Recommendations

1. Nokia has to control market skimming as it negatively attacks the brand

2. Nokia is the market leader and it should try to increase the growth rate as it had become
flatter in 2007 & in 2010 its sales starts decreasing.

3. Nokia should be innovative on style and looks front of the cell phones as it has recently
sprung up in the present in order to attract youth.

4. High end mobile phones from Nokia have a hanging problem they must be tweaked to
perform as desired.

5. The price of Nokia cell phones is high as compared to the grown up twins available so the
buyer is unable to buy the latest available.

6. Nokia should work on a phone for the masses as it has a lot of scope, just like bird and
Motorola did.

7. The infrared present on the low end phones of Nokia lack compatibility with the non
Nokia phones.

8. Nokia should work upon their combination of price and features in an instrument.

9. The user interfaces present in both brands of phones are each of a type and are acceptable
by the users.


en.wikipedia.org/wiki/Nokia www.nokia.com/