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Executive Summary

Mobile phone market in India is going through major changes. Key players are losing market share while new and young companies, mostly from Asian countries, are coming to the market. At the same time the market is slowly expanding when people are buying more phones than ever. The whole process of buying mobile phones has changed in the last few years. People no longer carry the same phone year in year out, change is the fast technological development of the phones. But also consumers but they change their phone every year, some even twice a year. One reason for these attitudes towards mobile phones has changed. Mobile phones are no longer seen as expensive, hi-tech products, but they have become accessories like jewelry or a piece of clothing. Here we can mention about nokia the worlds number one mobile phone company and this discussion is going through about this company. This report gives an overview on what is happening on the mobile phone market today and analyses Nokias market position in the growing market. This report includes a brief introduction to Nokia followed by an environmental analysis, SWOT analysis of the company.

History

The roots of Nokia go back to the year 1865 with the establishment of a forest industry enterprise in South-Western Finland by mining engineer FredrikIdestam. Elsewhere, the year 1898 witnessed the foundation of Finnish Rubber Works Ltd, and in 1912Finnish Cable Works began operations. Gradually, the ownership of these two companies and Nokia began to shift into hands of just a few owners. Finally in 1967the three companies were merged to form Nokia Corporation. At the beginning of the 1980s, Nokia strengthened its position in the telecommunications and consumer electronics markets through the acquisitions of Mobira, Salora, Televa and Luxor of Sweden. In 1987, Nokia acquired the consumer electronics operations and part of the component business of the German Standard Elektrik Lorenz, as well as the French consumer electronics company Oceanic. In 1987, Nokia also purchased the Swiss cable machinery company Maillefer. In the late 1980s, Nokia became the largest Scandinavian information technology company through the acquisition of Ericsson's data systems division. In 1989, Nokia conducted a significant expansion of its cable industry into Continental Europe by acquiring the Dutch cable company NKF. Since the beginning of the 1990's, Nokia has concentrated on its core business, telecommunications, by divesting its information technology and basic industry operations. Nokia is a communications based company, which focuses on mobile telephone technology. When mobile phones first became available on the market the models were very basic with the best technology being SMS messaging (sending written "text messages" from one phone to another).Then the next advance in technology was being able to

put different faces on your phone (different style covers for the front and back of your mobile device) and after that the technological advances have come thick and fast, with advances such as: * MMS * WAP (internet) * Polyphonic ringtones * Predictive SMS (where the phone will finish off a word for you if it can guess what you are typing) * Camera phones and * Video recorders

Organization Nokia comprises four business groups: Mobile Phones, Multimedia, Enterprise Solutions and Networks. Mobile Phones connect people by providing expanding mobile voice and data capabilities across a wide range of mobile devices. We seek to put consumers first in our product-creation process and primarily target high-volume category sales. Multimedia brings connected mobile multimedia experiences to consumers in the form of advanced mobile devices and applications. Our products give people the ability to create access and consume multimedia, as well as share their experiences with others through a range of radio technologies. Mobile Phone Market in India NOKIAs hegemony in the GSM handset segment has increased during last six months. NOKIAs market share (in terms of unit sold) has grown to 74% in March 06 from 61.5% in October 05. In the colour segment too, Nokia has increased its market share to55% in March 06 from 33.7% in

March 05.In terms of value, Nokias overall market share has jumped to70.5 % in march 06 from 57.7% in October 05. In the colour phone category, its market share (in terms of value) has increased to 59.3% in march 06 from40.9% in October 05, according to ORG GFK estimates.

Nokia Mobile Phones in 2002 Nokia Mobile Phones continued to renew its industry-leading product line-up, launching a record 33 new products during 2002, in corporating colour, imaging, multimedia, mobile games and polyphonic ring tones. Of the total new phones launched, 14 had colour screens and multimedia capability. This attests to the growing share of feature-rich phones offering advanced mobile services in the company's product portfolio. During the year, Nokia launched its first WCDMA mobile phone, the Nokia 6650, which began deliveries to operators for testing in October2002. The company also commenced shipments of its first CDMA2000 1Xmobile phones in the Americas. These included the Nokia 6370, the Nokia 6385, the Nokia 3585, and the Nokia 8280.In imaging, Nokia began shipping its iconic camera phone, the Nokia7650, expanding the scope of the mobile market from voice to visual communications. Feedback from customers and users across the board has been extremely positive. In the enterprise segment, the company expanded its product offering from the Nokia Communicator 9200 series to include the Nokia 6800 messaging device, with full QWERTY keypad optimized for personal and enterprise mobile e-mail.

In entertainment, Nokia announced it would bring mobility to gaming by offering console quality games for its new mobile game deck device category. Under a collaboration agreement with world leading games publisher, Sega, the two companies will develop games for the new

Nokia N-Gage mobile game deck, which will run on the Nokia Series60 platform and the Symbian operating system.

For the full year 2002, Nokia volumes reached a record level of 152million units, representing faster than market growth of 9%, compared with 2001. Backed by Nokia's ongoing product leadership and user brandp reference, Nokia has again increased its market share for the fifthconsecutive year reaching about 38% for the full year 2002, bringingthe company closer to its target of 40%.

During the year, Nokia Mobile Phones took steps to accelerate growth and enhance both agility and scale benefits with the introduction of anew operational structure. From May 1, nine new business units were each made responsible for product and business development within a defined market segment. This allowed Nokia to optimize its activities in these vertically focused areas, while continuing to achieve broad economies of scale from horizontal functions such as application software development and the company's market-leading demand-supply network.

Nokia Networks in 2002 During the year, Nokia Networks signed 20 GSM network deals in Asia, China, Europe and the US, including three new customers. Mobile Multimedia Messaging Services (MMS) became a reality in 2002,with its rapid implementation into most GSM operator networks. By year-end, Nokia Networks had delivered MMS solutions to well over 40operators.WCDMA 3G technology implementation moved to pre-commercial and commercial phase towards the end of 2002. Nokia signed 10 new 3G deals in Austria, Belgium, Germany, Ireland, Japan, the UK and Taiwan.

In September, Nokia became the first vendor to commence volume deliveries of EDGE hardware across all major GSM bands and in all continents

In broadband access, Nokia signed nine new contracts in 2002, and launched the Nokia D500 next generation multiservice broadband access platform for the US and ETSI markets.

The company also further strengthened its GSM/EDGE/WCDMA product family with several new products and solutions. Key launches included a high-availability server platform for use in All-IP mobility networks, and the Nokia LTX, a linear transceiver product family of base station modules that support the definition of Open IP Base Station Architecture.

During the year, Nokia took measures to align its operations to better reflect current market capacity and conditions, reducing the number of employees in its delivery and maintenance services as well as in production. Nokia also streamlined its professional mobile radio unit to reflect the slower than expected take-off of this market.

Mission and Vision:

1 Vision Our customers continue to our First Priority Nokias future success depends on delivering great experiences to our customers by creating products and solutions that work seamlessly and are appealing.

2 Mission In a world where everyone can be connected, we take very human approach to technology Connecting is about helping people to feel close to what matters. Wherever, whenever, Nokia

believes in communicating, sharing, and in the awesome potential in connecting the 2 billion who do with the 4billion who dont. If we focus on people, and use technology to help people feel close to what matters, then growth will follow. In a world where everyone can be connected, Nokia takes a very human approach to technology.

Competition in the market With all this technology available in the communications market it is obvious that Nokia will have lots of competition, they include: * Sony Ericsson * Samsung * Motorola * Siemens * Panasonic * NEG * Sagem and * Toplux With all of these competitors in the market Nokia must keep ahead of the game by running successful marketing strategies, to do this Nokia must focus on the principles of marketing. At the moment Nokia are the world's best-selling phone company (see table below which shows market share). Nokia strengthened its lead as the No. 1 vendor in the market during 2000 with shipments growing 66 percent over 1999. Some of the company's success was attributed to a strong second half in 2000 when59 percent of sales occurred.

1. Nokia 37.2% (34.7% 1Q02) 2. Motorola 17.3% (15.5%) 3. Samsung 9.8% (9.6%) 4. Siemens 8.5% (8.8%) 5. Sony-Ericsson 5.2% (6.4%)

Marketing principles There are many priorities within a business, but in a marketing orientated company like Nokia, many of the following principles will be high on the agenda: 1. Customer satisfaction: Market research must be used to find out whether customers' expectations are being met by current products or services. 2. Customer perception: this is based on the images consumers have of the organization and its products, this can be based on; value for money, product quality, fashion and product reliability. 3. Customer needs and expectations: This is anticipating future trends and forecasting for future sales. This is vital to any organization if they wish to keep their entire current market share and develop more. 4. Generating income or profit: This principle clearly states that the need of the organization is to be profitable enough to generate income for growth and to satisfy stakeholders in the business. Although satisfying the customer is a big part of accompanies plans they also need to take into account their own needs. 5. Making satisfactory progress: Organizations need to make sure that their product is developing along with the market, if a product is developing well, then income should increase, if not then the marketing strategy should be revised. 6. Be aware of the environment: An organization should always know what is happening within their designated market, if it is changing, saturation, technological advances, slowing down or rapidly growing, being up to date on this is essential for companies to survive.

There are also certain external factors that a company should be very aware of, such as P.E.S.T factors (political, environmental, social and technological) and also S.W.O.T (strength,

weakness, opportunity and threat). A business must take into account all these constraints when designing and introducing a marketing strategy.

P.E.S.T: Political factors- Legal constraints (such as the G3 technology constraints that Nokia have to take into consideration) must be taken into account because many businesses aim to make a profit so they may be tempted to mislead their customers about prices, quality of products and the availability of their products. They may also try to cut expenditure by using lesser quality materials in their products (such as weaker materials for Nokia cases and batteries), also some companies may also dispose their waste in ways that damage the environment (pollution) and not ensuring high standards of hygiene and safety in the workplace and outlet stores, all of these are illegal and can leave companies in big legal trouble.

The governmental bodies in the U.K have introduced new laws into the business environment, which ensure that none of these procedures take place; if a company is to be successful they must follow all of these laws.

Environmental social and ethical factors- some businesses view profit sare more valuable than a strong ethical code and this can govern behavior and business conduct. Some un-ethical practices are against the law and companies cannot become involved in them (I have mentioned these above) but there are also some practices that aren't illegal by law but are considered highly un-ethical by the consuming public, companies who engage in these practices can lose a lot of market share if they are found out. An example of this is cosmetic testing on animals, it is legal but some of the consuming public is not happy about it and boycott certain

products because of it, companies must be very careful about how they conduct themselves.

Nokia have managed to be quite environmentally friendly and have no done anything that the consuming public have taken huge offence to, they have been very careful about this and this is one of the reasons they are such a popular brand of mobile phones. Technological- In the communications market technology is perhaps the most important factor that companies like Nokia have to take into consideration. They have to keep up to date with all the newest technological advances (like camera and motion capture phones) if they are going to capture the biggest market share and stay ahead of their competitors (Sony and Siemens).

SWOT Analysis Nokia is at an important crossroads in its history. Having architected many of the key tenets for growth during the formative years of the mobile phone industry, the market with which Nokia is so familiar may be adopting different rules, ones that it may not fully understand. The situation Nokia faces may be similar to the period in the PC industry when Dell Computer surpassed perennial leaders IBM, Hewlett-Packard and Compaq Computer. Why might this happen? Because Nokia's strengths are so well-understood by its competitors, they are welltargeted and improved upon. The wireless market's evolution has slowed, making it easier to challenge the incumbents. Also, the progress of technology has made many of Nokia's early advantages easier to overcome. Nokia's leadership position is a result of paying persistent attention to market needs and taking the right chances at the right time.

Nokia was the first to acknowledge fashion as an important element in mobile phone purchases, and it is solidly behind the push for Multimedia Messaging Service, which could become the first data service beyond Short Message Service to be deemed successful. There is a significant gap between Nokia and startups, which makes it difficult to compete against Nokia. Nokia's tie to operators has kept its products solidly in consumers' view. Yet, Nokia faces some serious challenges. Strengths Nokia has long established identity (1898); lots of available resources (financial, etc.)

Nokia has high penetration rate in Europe, especially in Northern countries (close to 100%) Nokia Consumer Electronics has access to innovative technology through group companies Weakness Lack of centralized marketing strategy and champion; completely different positioning strategy depending on the country Too many brand names (100) in one market; problem trying to find balance Corporate culture is highly technical and operational: So what if the customer does not understand!; lack of customer service priority

Opportunities Potential for brand name sales in Europe and Asia-pacific Growing replacement and supplement television market NCE has opportunity of using its technology to enhance user-friendliness Threats The market for color TVs and VCRs is a mature/saturated market; consumers are buying less often and only to replace older units (same trend for all countries across Europe) Cant differentiate based on technical advance mentor price; competitors too fast to match Impact of recent purchases (for example, Sony) and mergers is unknown; competitors are getting large rand integrating supply chains Competitors (Samsung, Gold star, Daewoo) quickly and successfully building brand name and image Branding Strategy In the color TV market, neither technology nor price provides a competitive advantage. The decision a consumer makes to purchase is primarily motivated by emotion, and is driven largely by comfort level with a particular brand. A successful branding strategy for NCE is, therefore, critical to gaining a competitive advantage. Specifically, NCE should brand for the following reasons: Competitive advantage is gained through brand name (not technology or price)

According to brand awareness studies, Nokia is recognized most of the time (in Germany, France, Italy, UK and Norway), but not necessarily affiliated with consumer electronics such as TVs and VCRs Consumers buy televisions based on emotion Consumers perceive value in features that are marketed as user-friendly. In the past Nokia has relied heavily on its ability to innovateit is a strong technology company. However, it is not good at introducing or packaging this technology for consumers. It must introduce a new mindset to NCE; a strategic shift that encourages customer service and international marketing. Internal Management Challenge faces at least two challenges within NCE that he must address immediately: 1. Lack of a marketing champion in corporate headquarters 2. A continued reliance on technology as the main marketing approach. For example, the remote control TV mouse is centered on technology and may frighten away potential customers who may perceive it as too technical.

Market segmentation Market segmentation refers to the different areas of the population that companies can aim their products towards. The market segment that Nokia has chosen to aim is the youth market focusing on students aimed13-19 as market research has shown that some of the youth market are receiving large amounts of pocket money and most have no real commitments to spend it on and that means they have lots of disposable income and will be able to spend a lot money on new mobile phones .As a big company Nokia are able to do a lot of promoting and advertising that smaller, less successful companies, may not be able to afford, such as television advertising and sponsoring lots of events that will be viewed or heard by large amounts of people in their chosen market segment (events such as music festivals and music awards are a goldmine for companies as they are viewed by millions of people worldwide). Adverts such as television and print adverts will be put into certain areas so that they can attract their chosen market segment, Nokia tend to put a lot of their print adverts in men's magazines such as FHM and Loaded so they can appeal to all of their readers instead of a smaller percentage of the readers they would attract in magazines such as Lifestyle and Good Housekeeping. I think Nokia's way of promoting is very good as they can appeal to mass markets and large amounts of people in their chosen market segmentation with certain advertisement's and with sponsoring large events.

In order to plan their product Nokia must look at what area of the market they want to aim the products at, as the current youth market is more or less saturated. Nokia will have to research into a new market, I suggest the 55+ market as they will have lots of disposable income and my research shows that most people aged 55+ do not currently own a mobile device and could be persuaded to buy one by certain promotions and a good advertising campaign, also the drop in call prices should attract a lot of people who may have previously been hesitant due the high costs. Below is a table showing the population in terms of social grouping of INDIA: Socio-economic group A-Upper class B- Middle class C1- Lower middle class C2- Skilled working class D- Working class E-Low income earners % Of population 2.8% 18.6% 27.5% 22.1% 17.6% 11.4%

I think that Nokia should aim their products at the socio- economic group B (middle class) event though they aren't the biggest group they are the group that is most likely to spend their money on a mobile telephone as my questionnaire results showed. As the main aim of market research is to develop an idea of market opportunities, an important part of this research must be to track sales in order to identify those products, which are likely to experience a rise in sales and to look at those in which the sales are likely to fall. Changes in customer demand, which continue in the same direction for more than 2 years, show a long-term trend or saturation is occurring within the market. This is definitely a bad market for businesses to be in (the mobile phone market is in the first year of a continuing trend) and the company must consider changing their market or product to a market or product that is currently showing a continuing upwards trend. MAKETING STRATEGY Marketing strategy of a company in a new country plays a vital role in determining its future in that country. Knowing that Indian market is very different from other markets it was already operating in, Nokia came up with an Indiaspecific strategy or a global strategy. It adapted the

to Indian conditions by launching new products and enhancing the products with features designed specifically for local customers, as well as promotional campaigns targeted at Indian audience to gain a foothold in the market. To capture the widespread Indian market, it developed an extensive distribution network which also helped it take its products to rural markets in India. Here, to discuss the strategy, we consider the simple concept of 4 Ps, namely; product (customization), price, place (distribution) and production. Product 1998 was 51st year of Indian independence, hence Nokia provided the ring tone of National son Saare Jahan se Achha ye Hindustan Hamara in 5110 model. The introductory offer for this model also had inter-changeable covers. The success of 5110 initiated Nokia to focus on feature-specific localization. In1999, Hindi (national language, and mother tongue of 43% Indians) user interface was provided in Nokia 3210. Also, Nokia also tied up with Sony music for top 20 hit songs as ring tones. Nokia 3210 became an instant hit. The model 3610 was launched with an enhancing Hindi text messaging facility in 2001. The most successful customization came in 2003 when Nokia came with 1100 and 1108 specifically designed for Indian market. It had features of anti-slip grip, dust resistance and torchlight. Since, in India people dont know English in villages; Nokia came up with Saral Mobile Sandesh (SMS in Hindi). Nokia sales increased from 58.2% in July 2003 to 59.6% in July 2004. Nokia was also the first handset manufacturer to launch games download in India in 2003. It had spearheaded the industry in online distribution of tones, graphics and game downloads. These services did not just increase their sale of mobile phones but were also fruitful as they made huge profits by selling the games. In 2005, Nokia also launched games based on Indian mythology namely Makhan chor and Swayamvar. Both were arcade games involving two most of the famous characters namely, Lord Krishna and Arjun. Another feature that Nokia came up with attract youth was one which enabled the customer to slide in his or her photograph or for that matter the loved ones,' in the picture frame behind the phone. This was a part of Nokia 2112 model (CDMA), wherein the message is clearpersonalize your phone. Earlier they had a similar feature in GSM handset Nokia 2100. "We have made a personality statement through the campaign. The feel of the campaign is such that it would evoke a 'sense of being,'" said Sanjay Behl, Head of Marketing, Nokia India. Menon, M. (2005)

Nokia also tied up with Bharti cellular in 2005 to customize its handsets through which its users could access multimedia services by using an additional key on the mobile phone. Also since many FM channels were introduced in India in early 2000s, Nokia banked on the opportunity by coming with FM phones attracting a lot of youth. Later on in 2005, Nokia came with SMS services in other Indian languages including Marathi, Tamil, Bengali and Kannada. In November 2007, Nokia came with Bollywood classic movie Sholay preloaded in N95 8GBand N81. This gave opportunity to cinema buffs to now watch the movie Sholay on the go. The N series is a multimedia sub-brand of Nokia. "It is one of the biggest blockbusters that the Hindi film industry has churned out. There could have been no better option than this flick, which is liked by every age group equally," said Vineet Taneja, business director of multimedia, Nokia India. As part of its strategy to connect with the young population in India, Nokia has been associating with youth passions like Cool Sports, Music, and Fashion. In the genre of Cool Sports, Nokia hosted the Ngage QD Gaming Championship, Defend Your Turf, the first ever futsal Championship. Over the last few years, in music Nokia has brought several world class music artists including, Shakira, Shaggy, Mark Knopfler, Sting and Enrique Iglesias to India. In Fashion, Nokia has a strong association with Wills Lifestyle India Fashion Week and N series lifestyle led campaigns amongst others. In another attempt to give India handsets which will enable them to use more features, Nokia is in process of making cheap GPRS enabled handset. In this handset, the users can surf the net at a very reasonable price. Again targeting the low and middle income class, who are interested in using the new facilities available? "We are planning to bring internet access to all the mass in India through our low-cost handsets... the company is working diligently towards it," said Nokia's Senior Vice President - Entry Business Unit (Mobile Phones Business Group) Soren Peterson in an interview. Pricing Pricing of the phones was of prime importance for success in India. Being a developing country, the purchasing power of the people was not high as compared to other developed countries. Research unveiled that phones of lower price range (below Rs8000 or $200 approx.) amounted for 65% of the total sales in India. Nokia depended majorly on rural market; therefore, pricing was a major success factor for the company. Nokia did achieve success in India, in spite of the fact, that its handsets were not the cheapest in the market. Nokia 1100, which was specially launched for India, was priced at Rs.4000. This price, although was at a premium as compared to entry level phones, but was enhanced with several special features which were not available in other phones of the same price. The head of marketing at

Nokia India, Sanjay Behl said, The phone is a combination of product benefits and pricing. This model further became the best-selling model ever in India. It also increased the brand preference of Nokia from 66% to 77% within 9 months of its launch. This show how nature of Indian consumer is value sensitive. The major strategically move by Nokia in this regard was that it charged a lower price in India than most of other countries for the same model. Nokia's current pricing strategy is based on 2 main theories: 1. Penetration pricing- although this strategy is usually for companies that are trying to gain instant market share in a new market, companies who are already well known in the market still do it with new products that carry new technologies so they can take more market share form their competitors. 2. Competitor based pricing- this is used when there is a lot of competition in the market and a company is looking to take another companies market share by offering the same or similar products for a lower price, this happens a lot in the communications market and this strategy is used by every mobile phone producing company that is still in business. Nokia's pricing strategy has proven very effective, this is down to the fact that they first sell their products for high prices and have very limited sales but make big profits on each sale, they then lower the price of their product and have lots more sales but they make less profit, but they still make a large profit due to the amount of sales, the other reason that they are so successful is that they offer high quality products and they sell them for the same price and sometimes even lower prices than the competition and have now built up the highest market share, they currently have 37.2% of the mobile phone market share and are the biggest selling mobile phone company in the world. Place (Distribution) Mobile phones in India are considered as to be consumer durable, hence they are not just sold through exclusive telecom retailers but also through general retailers. Nokia designed modeled its distribution strategy on lines of FMCG business. An important reason for the success of mobile phones in India was limited reach of the landline phones in several parts of the country. By mid-2005 the mobile phone sales in smaller towns and cities was higher than those of the metropolitans. The sales in these urban markets were beginning to saturate. The distribution in these small towns called for non-traditional channels. Nokia strengthened their distribution network, and selected distributors from FMCG line or experience holders for durables or automobiles. In fact, about a fifth of the mobile phone sales in India were consumer durables or service providers shops.

In 1995, Nokia tied up with HCL Infinet for sales and distribution of its phones and appointed them as Nokia distributor for GSM handsets in India. HCL Infinet provided a complete range of Nokias GSM mobile phones, data products and mobile services. The retail network they developed was very strong and dedicated. They came up with Nokia Professional Centers (NPCs), Nokia Priority Dealers (NPDs) and redistribution stockiest all over India. NPCs were one stop shops for the complete range of Nokia mobile phones, batteries, chargers, accessories, covers, hands free kits and car kits amongst others. It also provided the after sales services for Nokias handsets. NPCs were multibrand retails 56 outlets with 60% of their area dedicated to Nokia. While redistribution stockiest were for supplying handsets across India. HCL also came with Nokia Care Centers (NCCs) for providing solutions to mobile related problems. These were spread all over the country and provided phone repairing software upgradation services. They also displayed complete range mobile phones, data products and complete mobile phones accessories. Another effective concept that Nokia up with in 2005 was that of Nokia Concept Store in Bangalore in south India. It was located in the city Centre, MG Road. This concept store is being set up with an objective to provide Indian consumer with a truly enhanced mobility experience through its cast and exciting range of Nokia products and mobile accessories. We are keen to lead a unique mobile retailing experience for consumers through these touch points Sanjay Behl, Head Marketing, Nokia India . Details as per Nokia website are given below. Nokia Concept Store in Bangalore was the country's first concept store in India to provide customers a complete experiential mobile experience. The store measures approximately 2,000 square feet and is designed to reflect the design ethic of the Nokia brand. The layout and design of the store follows the same pattern as Nokia Concept Stores around the world to guarantee an easy and informative shopping experience. With a simple-to-navigate setup, open doorways and low-glare lighting, the store provides a relaxed and satisfying customer experience. The high-tech display terminals and dedicated areas for Imaging, Smart, Multimedia, Business and Entry phones make it easy for the public to keep up to date on the latest technologies and trends in the mobile industry. Nokia today has eight Nokia 'Concept stores' in Bangalore, Delhi, Jaipur, Hyderabad, Chandigarh, Ludhiana, Chennai and Indore. Nokia kept its promise of enhancing the mobile experience of its customers. In October 2007, they launched the first 'global format' Nokia Concept Store in Western India at Indore. Located at MG road and spread over 3500 sq. feet, square feet, the state-of-the-art Nokia Concept Store will provide mobile phone consumers in Indore a world class interactive and informative shopping experience, allowing them to get a first-hand experience before making a purchase

decision. Nokias vast distribution network covered almost every city or town where mobile network was available. Promotion Nokia entered India with one for mobile services to start, and had to establish its non-popular brand. To build credentials the company used both print and television campaigns. In the early days, print media concentrated on Nokias status, global R&D and international awards won to establish brand awareness. Even after the market grew, Nokias advertisements concentrated on product attributes. Gaining acceptance of Indian consumer is not as simple as other countries. India is a multicultural country, where people have strong believe in their mythology, nationality and cultures and to add to it, their purchasing power was not as high as other countries where Nokia was operating. Hence, to achieve approval of the mobile consumers in India, Nokia decided to localize its products heavily. For the purpose of developing the products specifically for markets with high population and low penetration, Nokia developed a team called Mobile Entry Business Unit. Until 2003, Nokia used all their international advertisements with slight modifications in India. For instance, the advertisement for NGAGE showed two young persons getting bored stuck in traffic jam and then they show them combat with super natural powers. It showed how NGAGE could help them pass their time. But it did not have a very good effect on the Indian audience as they could not relate themselves to the people over there. There was needed to make special advertisements for India. Nokia India marked its special presence in advertisement world with Made for India ad campaign on the launch of Nokia 1100. This was the fourth advertisement created in India but created maximum stir in the industry. The advertisement showed that the Nokia 1100 was launched first in India and addressed all the concerns of Indian consumers. The advertisement made a clear deviation from hitherto hip urban-focused advertisements that Nokia are known for. It aimed at highlighting the broad appeal of mobile phones across all socio-economic segments of India. The aim was to highlight Nokias Indian image. Analysts believed that Nokia would lose the top end consumers who attached lot of importance to mobile phones as a style statement. Sanjeev Sharma, Managing Director, Nokia Mobile Phones India, said No, not in the least does the latest piece o communication create dissonance in the minds of consumers with regard to Nokias brand image. The technology driven ads have created a rub-off on the entire Nokia range. And fashion and lifestyle products create a desire at all levels, be it the first-time urban or rural user. The advertisement was a success, and Nokia 1100 went on to become best seller not just in India but also worldwide.

The major reason for handset was, Nokia was expecting exponential growth in small towns and rural areas. The company planned to build brand loyalty amongst this segment. They conducted research to get to know the needs and concerns of the users of this segment. As Sanjeev Sharma said, One of the things we found out was that the torch is of high value. Besides that a major concern was dust People feared that dust might penetrate through the gaps of their keypad, and that explains the extensive use of handset covers in India. Another major concern was the grip of the phone, because of the climatic conditions in this country people usually have sweaty palms, and therefore the, what if the handset slips? One advertisement that Nokia made in 2000 was a public interest advertisement, urging users to switch off their cell phones while watching movies. It showed a clip where hero picks up an argument with person sitting in front row in a movie theatre. One of the advertisements was for Nokia 2280 which was offered in bundle with reliance mobile connection. This was a simple one which educated the audience of availability of cheap handset with bundled airtime. Cricket is considered a religion in India. Nokia has had a strong association with the sport through its advertisements. In an advertisement released during cricketing season of 2003, a cricket fan was watching cricket with his daughter and a prospective groom walks in, the father throws the ball to him, which he is unable to catch. The dejected young lad starts to walk away, just then the television gets blank. The enthusiast fan is frantically trying to find the score. The boy gets a message of latest score update on his Nokia mobile phone, impressing the father. The advertisement targeted the middle class youth of India. Recently, Nokia sponsored the ICC World Twenty20 2007 in South Africa. To its luck, India won the world cup and this format of the game was an instant hit in India. In 2007 itself, Nokia was the 'on air' sponsor for the West Indies World Cup and for the Champions Trophy held in India, 2006. In 2004, network provider Hutch came up with television on mobile phone. Clips from these 13 television channels can be accessed by Hutch and Orange users through their EDGE-enabled mobile phones, said Mr Harit Nagpal, Chief Marketing Officer, Hutch (Web 18). Hutch then came with an advertisement showing people watching television on Nokia 6630 which was EDGE enabled. This helped Nokia to increase its sales. Another successful, India-specific campaign was the one where phones with Saral Mobile Sandesh (Hindi SMS) were promoted. It targeted the rural India, where mobile penetration is low. The advertisement showed a postman giving a mobile to a girl which was sent to her by her brother so that she can exchange Hindi SMSes with her brother. It was a audience specific advertisement and encouraged the use of Hindi SMS amongst the rural population Nokia was not the market leader in colored handsets. To regain its share, it came up with advertisement Har Jeb mei Rang (color in every pocket) for Nokia 2600. It was a very colorful

advertisement, showing colors spreading out of Nokia phone. It showed the idea of color spreading happiness in every life. Nokia came up with some good advertisements around the end of 2007. One of them starring the superstar of Hindi cinema, Shah Rukh Khan calling Nokia as his friend and companion for 10 years. He expresses how it brings and spreads happiness and how it has been with him through the ups and downs of his life. Other advertisements have been model specific as Nokias advertisements have always been. Other advertisements include Nokia 7900 Prism, The new edge in fashion and Nokia E series, Success is the name of the game. Another advertisement shows Nokia 1650 with features of cricket game, alarm amongst others at a very reasonable price. As a part of its strategy to enrich mobile user experience, Nokia announced its association with Bollywood's most awaited multi star blockbuster, Om Shanti Om (OSO). As a part of this tie-up, Nokia users can exclusively watch OSO movie clips, behind the scenes videos, ring tones and wallpapers on their mobile phones. Nokia has created a special 'OSO Crazy mobisode', animated characters of 'OM' (played by Indian superstar Shah Rukh Khan) that can be downloaded exclusively on all Nokia GPRS enabled handsets by dialing 55555 or from www.nokia.co.in/oso, a special website created for Nokia and OSO association. Nokia followed model-specific advertising for most part. Different advertisements were made for each model of Nokia, making it easy to target the specific audience, which will demand that model. Even different media was used according to the audience. Nokia even faced the problem of brand identification in the early stages as there were no specific signs suggesting that it was an advertisement from Nokia. Since 2005, Nokia has embarked a new advertising plan to consolidate its ad campaigns and strengthen its brand identity. Market research Nokia's business strategy (statement taken from www.nokia.com) "Our business objective is to strengthen our position as a leading communications systems and products provider. Our strategic intent, as the trusted brand, is to create personalized communication technology that enables people to shape their own mobile world. Nokia are currently creating innovative technology to allow people to access Internet applications, devices and services instantly, irrespective of time or place. Achieving interoperability of network environments, terminals and mobile services is a key part of our intent.

Nokia need to capitalize on our leadership role by continuing to target and enter segments of the communications market that we believe will experience rapid growth or grow faster than the industry as a whole. By expanding into these segments during the initial stages of their development, Nokia have established themselves as one of the worlds leading players in wireless communications and significantly influenced the way in which voice and other services have been transferred to a wireless, mobile environment. As demand for wireless access to an increasing range of services accelerates, Nokia are planning to lead the development and commercialization of the higher capacity networks and systems required to make wireless content more accessible and rewarding to the end user. In the process, we plan to offer our customers unprecedented choice, speed and value. Nokia has a history of contributing to the development of new technologies, products and systems for mobile communications. Recent examples include: the commitment to the open mobile alliance; the co-development of the new operating system for the future terminals with Symbian ; short-range wireless connectivity with Bluetooth ; the development of wireless LANs for enabling local mobility in fixed LANs; and MMS for enabling mobile multimedia messaging. In addition, Nokia have continued to be active in IP convergence. They have established alliances with other service providers in order to make mobile access services easier for the end user.