PROJECT REPORT

On

Submitted by

Rajnish Kumar Dubey

Batch: 2009-2011

IILM Institute for Higher Education

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 INTRODUCTION
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 Ahmadabad. 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

The company has built a diverse product portfolio to meet the needs of different consumer
segments and therefore offers devices across five categories i.e. 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.

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 realize 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.

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.

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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.

MAJOR COMPETITORS
(According to the market share standings)

Samsung
Sony Ericsson
LG
Micromax
Spice
XpressMusic is a brand name for a line of Nokia phones that are specially designed for music
playback. All of Nokia's XpressMusic come with expandable MicroSD memory slots, so these
phones can also be used as MP3 players. The XpressMusic range of phones was launched to
compete with the Walkman brand series of Sony Ericsson.

In September 2009, Nokia announced the X3 and X6 globally & in India June 2010. The new
Xseries will replace the XpressMusic brand which has been applied to 5000 series

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 100
90
80
70
60
50
SPICE 3.9%
40
NOKIA 52.2%
30
20
10
0
Nokia Samsung Sony LG Micromax Spice
Ericsson

Nokia becomes No.1 Music Player in India

Nokia launched OVI Music Unlimited (OMU), a bank of 4 million legal digital tracks,
including 1 million Indian songs - latest and largest catalogue - available to music buffs free
for a year. This makes Nokia India's biggest music company in terms of the number and
variety of songs that we are offering.

Consumers who buy a Nokia Ovi Music Unlimited enabled device will be able to download
millions of tracks for free, direct to their mobile phone or to their PC from the Ovi Music
Store for 12 months.

And they will get to keep all their downloaded music forever. Tracks can also be shared
between OMU users via Bluetooth technology. New songs by major labels will also be
available when released in India.

However there is a catch. This service will be available only on a select set of model (X2,
X6, 5800 XM, 5530, 5235 and 5130), and after a year if the user wants to renew the service
he will have to buy a new phone. Their existing phone will not support this service.

The new service created specifically for the Indian market will offer more than four million
tracks from across 19 genres including Rock, Rap, Hip Hop, Pop, Bollywood, Sufi, Indi-
pop, Indian Classical, Devotional, Ghazals, Malayalam, Tamil, Gujarati, Bengali, Punjabi
and Bhojpuri, amongst others.

This service will also address key challenges of accessibility, affordability and piracy that
have existed around music consumption.

India is the 30th market to launch this service after the recent launches in China and
Indonesia. The service will include catalogues from major global labels Universal Music
Group, Sony Music Entertainment, Warner Music Group and EMI Music. Nokia’s local

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partnership with Indian Music Industry (IMI) brings a consortium of more than 150 music
companies - Hungama that represents major labels including Yash Raj, Tseries, Eros; and
SIMCA (South Indian Music Companies Association), amongst others.

The service is free for one year, but Nokia is looking at lots of revenue possibilities, besides
new phones that users will have to buy if they want to renew their service. According to a
recent KPMG survey of Indian youth, 83 per cent of respondents said music is as essential
to them as food and air, and 39 per cent respondents wanted music on their mobile phone.

The survey also revealed that over 80 per cent of the respondents are okay to receive ads if
they get music free. Similarly, if Nokia starts to charge for downloading songs and there
are enough buyers, once the free period offer is over, it could be the biggest music company
in India in terms of revenues too

Nokia’s strategy for Indian market

Nokia's strategy combined focusing on the mobile phone market, establishing crucial distribution
partnerships, making early investments in manufacturing and brand-building, and developing
innovative product features -- such as mobile phones that could double as flashlights.

Focus played a key role in the company's growth in India. All the other companies had
something else to focus on, some other business. Nokia was completely focused on mobile
phones; others had consumer electronics, home appliances, etc. Nokia's focus was not just on
handsets, of course. The mobile infrastructure business -- then part of Nokia India -- was equally
important.

Being ahead of the curve was another component of Nokia's strategy. Nokia invested before
everybody else -- in the brand, in people, in distribution. Nokia invested in each vertical of the
handset ecosystem -- manufacturing, distribution and design R&D.

The Distribution Edge - Investment in people is difficult to judge; every company claims to
have the best talent in the business. But when it comes to distribution, Nokia's lead is clear.
Today, India has some 95,000 outlets that sell mobile phones. In 50,000 of them -- and that's a
conservative estimate -- only one brand is available, Nokia. Nokia has begun to set up concept
stores in Indian cities.

Investment in Manufacturing - The other big investment area that has set Nokia apart from
other telecom firms is manufacturing facilities and R&D. Nokia has several R&D centers and
labs in India.

Products for India – The Nokia story in India has not been about grafting a model that has
worked abroad. In fact some of its models – the handsets, not the strategies – are unique to India.
Consider this example: It would probably be inconceivable to mobile phone users in the U.S. or

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Europe that their mobile phones should incorporate a flashlight, or torch. But in India – where
large numbers of the rural population do not have electricity, and power cuts are commonplace
even in the cities – having a torch built into a mobile phone is a distinct and tangible benefit. The
Nokia 1100, the first made-for-India phone, has been a runaway success. Manufactured at
Chennai, it is also being exported. The 1100 incorporates a torch, an alarm clock and a radio.
Innovation is something which consumers reward in this market.

The company that was to become JWT was founded by William James Carlton in 1864.
Carlton's company was renamed by James Walter Thompson in 1877 to The James Walter
Thompson Company, which eventually became J. Walter Thompson. It was acquired by WPP
Group in 1987. In 2005, the agency was "relaunched" by dropping the name J. Walter Thompson
in exchange for JWT.

JWT claims to be the first agency to:

 build the first full-service advertising agency

 Create the first international network. Its London office opened in 1899. By 1930, the
agency had established offices in some 30 countries.
 Pioneer ad careers for women. It hired the first female creative director in 1908.
 Create the first-ever testimonial ad (it was for Pond's Cold Cream), in 1925.
 Invent the grilled cheese sandwich for its client Kraft in 1930.
 Produce the first-ever TV commercial in 1939.
 Develop account planning in 1968. Stephen King is considered the father of account
planning.
 create the first advertisement in Second Life (Ford Argentina)
 be the first agency to create its own television Christmas special in 2009, Macy's "Yes,
Virginia" (JWT New York)

Company’s Clients

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Key Clients:

 Johnson & Johnson

 Kraft
 Microsoft
 Nestle
 Rolex
 Unilever
 Nokia
 Pepsi

And many MORE

Consumer Response Model

Conative
This stage of consumer response model is all about making the consumer do the action. Make the
consumer buy the product. Nokia is a market leader with a market share of 52.2%. The
competitors such as Sony Ericsson, Samsung etc. are no where even close to Nokia. At this stage
Nokia will apply the Conative stage of consumer response model because it is a market leader
currently & the reason for this dominant leadership is that since 1995, Nokia has been
concentrating only on two factors, how to make the customer aware about the brand & how to
make the customer like the brand. It made the customer aware about the brand by -

Nokia makes people aware by advertising, such as TVC, Print ad.

Nokia’s best strategy to make people aware about the brand was to start THE RECYCLE
campaign. This campaign made people think that Nokia is a brand who also think about the
environment. The advertising for this campaign was done by JWT for which it won The
Global Nokia Innovation and Excellence award for the best creative campaign.

Nokia also makes the customer like the brand or product by making some humorous ads, ads
which relate to people’s life, popular brand ambassador’s (Sharman Joshi), ads so simple that
conveys the message to the common man in simple words.
Nokia recently introduced the Ovi Music Unlimited service which allows the customers to
download 4 million tracks absolutely free for 1 year. This service is launched so that the
customer gets a complete package under one roof. Nokia was only into handsets market now this
is the first service launched by it in the Indian market with a view to provide the customers the
whole package under one roof (handset & service).This step of Nokia will definitely create the
interest & liking for the brand and also loyalty.

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Now, Nokia as being the market leader Nokia has this advantage of just placing the product in
the market correctly & set a target, the customer would get attracted.

The target consumer & the brand positioning

The Nokia XpressMusic series has been targeted to the young customers. But customers who
love music even if they are in their early 30’s can surly enjoy these phones.
For example – Nokia 5800 XpressMusic, this phone comes with a feature of social networking,
Wi-Fi which adds more value to it.
Now Nokia has come up with the X series which specifically meant for music segment.
Currently Nokia’s most popular phone is X6 16GB which is coming with the Ovi Music
Unlimited service, providing the customer a complete package.

This product of Nokia, the XpressMusic series and the X series is positioned by product
attribute/benefit.
The XpressMusic series and the X series have the feature of good quality music. Actually these
two series are meant for music segment. Therefore, Nokia is positioning these two series by its
attributes/benefits so that the customer can relate itself to the brand perfectly.

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 Source/Message/Channel factors for the brand
Nokia had Shah Rukh Khan as the brand ambassador which worked really well for them when he
was smashing hits after hits at the box office. But currently most of his films are not working
well and also one of the biggest reasons of why Nokia has changed its brand ambassador because
Shah Rukh Khan flashes in every second ad on TV. The customers are not getting attracted
towards the product that he stands for because he promotes everything.

Therefore, Nokia decided to change its brand ambassador to Sharman Joshi to promote their new
phones (Nokia 5233), which is coming in the market with the Ovi Music Unlimited service
voucher & also a touch screen phone.
Nokia is targeting the youngsters for their XpressMusic series & Xseries coming with the Ovi
Music Unlimited service and for that they needed a brand ambassador who is a young popular
celebrity & also fits their budget. Therefore they picked Sharman Joshi who very nicely and in a
very humorous and in a simple way conveys Nokia’s message ‘Share your feelings through
music by using Nokia 5233’ which in the ad comes as ‘DIL KI BAAT EK TOUCH SE
SUNAO’.

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 Objectives for the brand

 Nokia approaches to the customer in a more horizontal

fashion

 Targets each and every user segment, make something for

somebody (actually everything for everybody)

 More phones means more chances of more customers

buying Nokia phones.

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  And in the end, all you get is plethora of options with
marginal difference between the phones.

THE fcb grid

Thinking Feeling

1 2
Informative Affective
High The Thinker The Feeler
Involvement

3 4
Low Habit formation Self Satisfaction
Involvement The Doer The Reactor

The self-satisfaction strategy is for low-involvement/feeling products where appeals to

sensory pleasures and social motives are important. Again, the DO FEEL or

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DO LEARN hierarchy is operating, since product experience is an important part of the
learning process. Some minimal level of awareness (passive learning) may precede purchase of
both types of low-involvement products, but deeper, active learning is not necessary.

Nokia being the market leader has already placed itself in the mind of the customer. It does not
need to spend more time and money to make the customer aware and then like the brand or
product as compared to a new entrant. People are already aware about the brand & like it that is
why it is a dominant market leader.
It can make the customer aware about the new products through Billboards, Newspaper, Point of
sale and sometimes through TVC (in case of a new product launch).

Integrated Marketing communication tools

The Integrated Marketing Communication tools for Nokia are –

ADVERTISING
Pervasiveness
Amplified Expressiveness
Impersonality

Advertising is defined as any paid form of non-personal communication about an

organization, product, service, or idea by an identified sponsor. The paid aspect of
this definition reflects the fact that the space or time for an advertising message
generally must be bought.

The non-personal component means that advertising involves mass media (e.g.,
TV, radio, magazines, newspapers) that can transmit a message to large groups of
individuals, often at the same time.
As Nokia has launched a new campaign of Ovi Music Unlimited, for that
advertising is the marketing communication mix which is being used by Nokia to
reach the customers.
The only reason is that it captures large part of the population. Nokia wants the
consumer to become aware about the campaign & also develop the interest in it so
that the action of the consumer is fast.
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 Sales Promotion
The best Sales Promotion option for Nokia for its new campaign is CREATIVE & RESEARCH.
As the campaign is all about music segment and targeted to the youngsters, therefore, the sales
promotion option should also be according to the liking of the youth.

Today’s youth believe in creativity, therefore, Nokia should use the CREATIVE & RESEARCH
option for its sales promotion. Research is all time useful. It can anytime tell how the target
consumers are behaving & whether they are getting attracted to the campaign or not.

Following is the analysis of a survey done with the customers & dealers in Metropolitan Mall
(Gurgaon), after Nokia launched its campaign, where Nokia did apply the option of creativity in
the mall by putting a lot of banners & posters.

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Sa le o f No kia p h o n e s in a
d a y ( ta rg e t o f 15)

100%
Sa le o f No kia X6 16G B p ho ne
(ta rg e t o f 5)
60%

With the intro d uc tio n o f O vi 80%

Music Unlim ite d se rvic e , the
sa le o f Xp re ssMusic p ho ne s
(ta rg e t o f 5) 60-70%

De a le rs like the 0%
20%
c a m p a ig n 40%
60%
80%
100%

C usto m e rs w ho use
No kia

C usto m e rs w ho a re usin g
a d iffe re nt b ra nd &
80%
w o uld like to shift to
No kia 50%
C usto m e rs w ho like
Xp re ssMusic se rie s 20%

C usto m e rs w ho a re
a w a re a b o ut O vi Music 75%
Unlim ite d se rvic e & like s it
0%
20%
40%
60%
80%
100%

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