Promotional Activities of Nokia

Ch 1
Industry Profile:

1.1) History of Mobile Phones:

Although mobile phones have taken over our current society, they have
been around for several decades in some form or another. Beginning in the late
1940s, the technology that would later be used in today’s cell phones was
created and the idea of a mobile phone was introduced. This cell technology
was first used in mobile rigs which were mainly used in taxis, police cars and
other emergency vehicles and situations. Truckers also used a form of this
technology to communicate with each other. Little did they know how far their
idea would advance to make it accessible to the majority of the population.

The first mobile phones, referred to as First Generation or 1G, were

introduced to the public market in 1983 by the Motorola Company. These first
mobile phones used analog technology which was much less reliable than the
digital technology we use today. The analog phones also had a great deal
more static and noise interference than we are accustomed to today. The first
mobile phones during this era were confined to car phones and they were
permanently installed in the floorboard of automobiles. After a few years, they
became mobile and consumers could take the phones with them outside of the
car. However, they were the size of a large briefcase and very inconvenient.
The main purpose of this First Generation technology was for voice traffic, but
consumers felt insecure about people listening in on their conversations. These
new mobile phones were also rather expensive, many of them costing hundreds
of dollars. They were more of a status symbol during the decade rather than a
means of convenience.

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During the 1990s, great improvements were made in the mobile phone
technology. These phones used Second Generation, or 2G technology. In
1990, the first cell phone call was made using the new digital technology that
became characteristic of this era. The Second Generation cellular phone
technology was faster and much quieter than its analog predecessor. As a result,
it became even more popular than previous models, too. The new technology
also made them capable of being smaller rather than the large briefcase-sized
units from the 1980s. Smaller batteries and other technology that made the
phones more energy-efficient helped contribute to their smaller sizes and their
popularity. Companies also strived to make the prices more affordable than the
mobile phones of the 1980s. You could buy a decent cell phone with 2G
technology for approximately $200 along with an airtime service. The cell phone
industry was beginning to take of. The Third Generation technology, or 3G, is
what many people currently use in their digital cellular phones today. This
technology was created very soon after the excitement that the 2G technology
created. This new technology is not only capable of transferring voice data
(such as a phone call), but it is also able to transfer other types of data, including
emails, information and instant messages. These capabilities have helped to
increase the amount of sales and the popularity of these new phones. Many
users prefer to use the instant messaging capabilities to “text” other users rather
than call them in the form of a traditional phone call. Many cell phone companies
offer free and very affordable phones for consumers who sign-up with their
airtime service for a contractual period. Prices for the services range but the
competition in the industry is helping to keep them more affordable than they
have been in previous years.

You would think that there is little more that you could do with cellular
phone technology. This is, however, not the case. There are currently plans in
place to develop a Fourth Generation – 4G – technology. Goals for this new

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set of standards include a combination of technologies that will make information

transfer and internet capabilities faster and more affordable for cellular phones.
At this time, there is no one definition that can be attributed to 4G technology
because researchers are still striving to make advances and build upon the
technology that already exists.

The mobile phone industry continues to grow by leaps and bounds as it

has in the past few decades. Even though it started a little more than 20 years
ago, manufacturers have created an abundance of new technologies that keep
cell phone users coming back for more. They continue to increase the number of
capabilities and services to accommodate the growing needs of today’s “on the
go” culture. Waiting anxiously is the only way to find out what they will think of
next.

As the number and quality of WI/FI points become available and with the
growth of Smart Phones that not only provide the basic functions expected in a
mobile phone but provide so much more the market is changing and brand new
players have entered the market including Apple with the successful Iphone and
Research Machines with the equally successful Blackberry. In 2008 a new player
enters the market providing an open source operating system for mobile phones
that manufacturers can use and adapt, the new player is Google who make the
Android operating system available and the first phone to appear is the G1 from
T-Mobile, because the OS is open source the number of applications available is
expected to grow and sites like The Android Library who provide a library of the
latest free and commercial applications will grow.

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1.2) Mobile Phone Market in India:

Mobile Industry, after the slump has shown signs of recovery and as per
IDC India’s latest report, India’s mobile handset market touched 100.9 million units
in the year ended June 2009, recording a growth of 6.7%* from 94.6 million units in
the previous year ended June 2008.

In terms of units shipped, Nokia had the largest share (*) of 56.8%, followed
by Samsung with a 7.7% share while LG stood third with a 5.4% share in the 12-
month period ended June 2009.

According to Deepak Kumar, associate vice president, research, IDC India,

"The number of emerging mobile handset vendors in the India market has grown to
reach 26 in Q2 CY2009 and their contribution to overall shipments in terms of units
crossed 6.3 per cent for the first time during the 12-month period ended June '09.
This is as against only 11 emerging vendors representing a share of 1.2 per cent of
overall shipments during the previous 12 months.

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"We see the market getting further crowded, especially in the lower- and
mid-market segments. At the same time, an accelerated evolution of the market is
at work, as the rising competition forces vendors to offer newer, richer features at
attractive price points. In other words, a combo of volume and value is at work,"
Deepak added.

A number of new vendors entered the India mobile handsets market in the
last 12 to 18 months to carve a niche for themselves by offering feature-rich (dual
SIM card, full QWERTY keyboard) and application-rich (IM enabled) mobile
handsets at attractive price points. They also introduced entry-level models for the
'price sensitive' Indian consumer. This development shows that even in a crowded
market there is room for vendors to enter with the right product-feature-price mix,
as per IDC.

The year 2008-09 saw the launch of high-end smart-phones (such as

Apple's iPhone 3G, the Blackberry Storm), latest entry-level as well as mid-market
models, addressing needs of both the 'price conscious' and 'value conscious'
Indian consumer. The 'Marine' handset from Samsung, and the Micromax phone
with a 30-day standby time were launched for the adventure enthusiast and the
semi-urban and rural buyers respectively.

According to Naveen Mishra, lead analyst, communications research, IDC

India, "With the mobile handsets market in India growing in volumes, device
manufacturers have started focusing on niche and emerging segments based on
lifestyle profiling of buyers.

Overall, this trend points to the growing maturity of the India mobile
handsets market. Consumers bought nearly 700,000 high-end phones (in the
quarter ended June 2009) also referred to as smart handheld devices," Naveen
added.

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Chapter 2

Company Profile

History of Nokia:

• Nokia’s First Century: 1865-1967

The first Nokia century began with Fredrik Idestam's paper mill on the banks of the
Nokianvirta river. Between 1865 and 1967, the company would become a major
industrial force; but it took a merger with a cable company and a rubber firm to set the
new Nokia Corporation on the path to electronics.

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1865: The birth of Nokia

Fredrik Idestam establishes a paper mill at the Tammerkoski Rapids in south-western
Finland, where the Nokia story begins.

1898: Finnish Rubber Works founded

Eduard Polón founds Finnish Rubber Works, which will later become Nokia's rubber
business.

1912: Finnish Cable Works founded

Arvid Wickström starts Finnish Cable Works, the foundation of Nokia's cable and
electronics businesses.

1937: Verner Weckman, industry heavyweight

Former Olympic wrestler Verner Weckman becomes President of Finnish Cable Works.

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1960: First electronics department

Cable Works establishes its first electronics department, selling and operating
computers.

1962: First in-house electrical device

The Cable Works electronics department produces its first in-house electrical device - a
pulse analyzer for nuclear power plants.

1967: The merger

Nokia Ab, Finnish Rubber Works and Finnish Cable works formally merge to create
Nokia Corporation.

• The move to mobile: 1968-1991

The newly formed Nokia Corporation was ideally positioned for a pioneering role in the
early evolution of mobile communications. As European telecommunications markets
were deregulated and mobile networks became global, Nokia led the way with some
iconic products...

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1979: Mobira Oy, early phone maker

Radio telephone company Mobira Oy begins life as a joint venture between Nokia and
leading Finnish television maker Salora.

1981: The mobile era begins

Nordic Mobile Telephone (NMT), the first international mobile phone network, is built.

1982: Nokia makes its first digital telephone switch

The Nokia DX200, the company’s first digital telephone switch, goes into operation.

1984: Mobira Talkman launched

Nokia launches the Mobira Talkman portable phone.

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1987: Mobira Cityman – birth of a classic

Nokia launches the Mobira Cityman, the first handheld NMT phone.

1991: GSM – a new mobile standard opens up

Nokia equipment is used to make the world’s first GSM call.

• Mobile Revolution:1992-1999:

In 1992, Nokia decided to focus on its telecommunications business. This was

probably the most important strategic decision in its history. As adoption of the GSM
standard grew, new CEO Jorma Ollila put Nokia at the head of the mobile telephone
industry’s global boom – and made it the world leader before the end of the decade...

1992: Jorma Ollila becomes President and CEO

Jorma Ollila becomes President and CEO of Nokia, focusing the company on
telecommunications.

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1992: Nokia’s first GSM handset

Nokia launches its first GSM handset, the Nokia 1011.

1994: Nokia Tune is launched

Nokia launches the 2100, the first phone to feature the Nokia Tune.

1994: World’s first satellite call

The world’s first satellite call is made, using a Nokia GSM handset.

1997: Snake – a classic mobile game

The Nokia 6110 is the first phone to feature Nokia’s Snake game.

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1998: Nokia leads the world

Nokia becomes the world leader in mobile phones.

1999: The Internet goes mobile

Nokia launches the world's first WAP handset, the Nokia 7110.

• Nokia Now: 2000-today

Nokia’s story continues with 3G, mobile multiplayer gaming, multimedia devices and a
look to the future...

2002: First 3G phone

Nokia launches its first 3G phone, the Nokia 6650.

2003: Nokia launches the N-Gage

Mobile gaming goes multiplayer with the N-Gage.

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2005: The Nokia Nseries is born

Nokia introduces the next generation of multimedia devices, the Nokia Nseries.

2005: The billionth Nokia phone is sold

Nokia sells its billionth phone – a Nokia 1100 – in Nigeria. Global mobile phone
subscriptions pass 2 billion.

2006: A new President and CEO – Nokia today

Olli-Pekka Kallasvuo becomes Nokia’s President and CEO; Jorma Ollila becomes
Chairman of Nokia’s board. Nokia and Siemens announce plans for Nokia Siemens
Networks.

2007
Nokia recognized as 5th most valued brand in the world. Nokia Siemens Networks
commences operations. Nokia launches Ovi, its new internet services brand.

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2008
Nokia's three mobile device business groups and the supporting horizontal groups are
replaced by an integrated business segment, Devices & Services.

CH 3
Theoretical Framework:

What is Sales Promotion?

Sales promotion is the key ingredient in marketing campaigns,

consists of a collection of incentive tools, mostly short term,
designed to stimulate quicker or greater purchase of particular
products or services by consumers or the trade.

Whereas the advertising offers reason to buy, sales promotion

offers an incentive to buy.

Importance of Sales Promotion:

Sales promotion tools vary in their specific objectives. A free sample stimulates
consumer trial, whereas a free management-advisory service aims at cementing a long-
term relationship with the retailer.

Sellers use incentive type of promotion to attract new triers, to reward loyal
customers and to increase the repurchase rate of occasional users. Sales promotion
also attracts the brand switchers, who are primarily looking for low price, good value or
premiums. If some of them would not have otherwise tried the brand, promotion can
yield long term increase in market share.

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Sales promotion in markets of high brand similarity can produce high sales
response in the short run but little permanent gain in the brand preference in the long
term. In the markets of high brand dissimilarity, they may be able to alter market shares
permanently. In addition to brand switching, consumer may engage in stock piling-
purchasing earlier than usual or purchasing extra quantities. But the sales may hit the
post promotion dip.

A number of sales promotion benefits flow to manufacturers and consumers.

Manufacturers can adjust to short term variations in supply and demand and test how
high the list price they can charge, because they can always discount it. Promotions
induce consumers to try new products and lead to more varied retail formats, such as
everyday low pricing and promotional pricing. For retailers, promotion may increase the
sales of complimentary categories as well as induce store switching. They promote
greater consumer awareness of prices. They help manufacturers sell more than normal
at the list price and adapt programs to different consumer segments. Service marketers
also employ sales promotions to attract new consumers and establish loyalty.

Major Decisions:

In using sales promotion, a company must establish its objectives, select the
tools, develop the program, implement and control it, and evaluate the results.

Establishing Objectives:

Sales promotion objectives derive from broader promotion objectives, which

derive from more basic marketing objectives for the product. For consumers, objectives
include encourage the purchase of larger size of units, building trial among consumers
would have short run sales impact as well as long run brand equity effects. For retailers
objectives include persuading retailers to carry new items and higher level of
competitive promotions, building brand loyalty, and gaining entry into new retail outlets.

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Selecting Consumer promotion tools:

The main consumers promotional tools are as follows:

1. Samples:

Offer of a free amount of product or service delivered door-to-door, sent in

the mail, picked up in a store, attached to another product, or featured in
an advertising offer.

2. Coupons:

Certificates entitling the bearer to stated saving on purchase of a specific

product: mailed, enclosed in other products or attached to them or inserted in
magazine and news paper ads.

3. Cash reduction offers:

Provide a price reduction after purchase rather than at the retail shop:
Consumer sends a specified “proof of purchase” to the manufacturer who
“refunds” part of the purchase price by mail.

4. Price Packs:

Offers to consumers of savings off the regular price of a product, flagged

on the label or package. A reduced price pack is a single pack sold at a low
price. A banded pack is the two related products banded together.

5. Premiums:

Merchandise offered at a relatively low cost or free as an incentive to

purchase a particular product. A with-pack premium accompanies the product

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inside or on the package. A free in-the-mail premium is mailed to consumers who

send in the proof of purchase, such as box top or UPC code. A self liquidating
premium is sold below its normal retail price to consumers who request it.

6. Frequency programs:

Programs providing rewards related to the consumer’s frequency and

intensity in purchasing the company’s products and services.

7. Prizes:

Prices are the offers of the chance to win cash, trips or merchandise as a
result of purchasing something. A contest calls for consumers to submit an entry
to be examined by a panel of judges who will select the best entries. A
sweepstakes asks consumers to submit their names in drawing. A game
presents consumers with something every time they buy.-bingo numbers,
missing letters-which might help them win a prize.

8. Patronage Awards:

Value in cash or in other forms that are proportional to patronage of a

certain vendor or group of vendors.

9. Free trails:

Invite prospective purchases to try the product without cost in the hop that
they will buy.

10. Product warranties:

Explicit or implicit promises by manufacturer that the product will perform

as specified or that the manufacturer has programmed it, otherwise manufacturer
will refund the money or replace the part during the specific period.

11. Tie - in promotions:

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Two or more brands or companies team up on coupons, refunds, and

contests to increase pulling power.

Selecting Trade Promotion Tools:

• To persuade the retailer or dealer to carry out the brand

• To persuade the retailer or dealer to carry more units than normal amount

• To induce retailers to promote the brand by displaying, featuring and price

reduction and

• To stimulate retailers or dealers and their sales clerks to push the product.

The main promotional tools of Nokia for retailers and dealers are as follows:

1. Price-off: A straight discount off the list price on each case purchased during
a stated time period.

2. Allowance: An amount offered in return for the retailer’s agreement to feature

the manufacturer’s products in some way. An advertising allowance
compensates retailers for advertising the manufacturer’s brand. A display
allowance compensates retailers for carrying special product display.

3. Free goods: Offers of extra cases of merchandise to intermediaries who buy a

certain quality or who feature certain flavor of size.

4. Trade shows and conventions:

Industry associations organize annual trade shows and conventions.

Business marketers may spend as much as 35% of their annual promotion
budget on trade shows. Participating vendors expect several benefits,

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including generating new sales leads, maintaining customer contacts,

introducing new products, meeting new customers, selling more to present
customers, and educating customers with publications, videos, and other
audiovisual materials.

Chapter 4

Research Methodology :
Objectives of the study:

Primary Objective:

The objective of this project is to study the Promotional

activities of Nokia. The expanded objective of the study of the
Promotional activities is to analyze the sales promotion
activities, use of different promotional tools of the company and
its impact on the customers.

Secondary Objective:

1. To identify the importance of promotional activities of the company.

2. To study the impact of promotional activities on the customers.
3. To study the impact of these activities on sales and market share of the
company.

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Importance of the study:

Since there has been an enormous increase in the use of

Promotional activities by marketers in recent years, we can conclude
that sales promotion, if use correctly, can dramatically improve the
fortunes of brand and company.

So it is necessary for every company to study the components

of sales promotion to cover more market share and to gain more
profitability. This study will help the marketers of the company to
evaluate their Sales promotional strategies and to find out any faults
if there are.

This study is also helpful to those students who may undergo

for a training in the future to understand the Promotional activities.
This study can be helpful to them as a reference for the further
research.

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Research:

According to Philip Kotlar, “Research is the systematic design, collection,

analysis and reporting of data and findings relevant to a specific marketing situation
facing the company.” Following are the steps of research process.

There are mainly two types of nature of research which are as follows:

1. Basic Research
2. Applied Research

Basic Research:

Basic research implies that it helps in knowledge enhancement of the person who will
do the research methodology in a particular field.

Applied Research:

Applied research implies that it would checks the solution in a particular field which he
may get from various respondents from the activity of a survey.

From the above researches I have selected the basic research which helps in
knowledge enhancement regarding the Promotional activities of the company. It will

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also provide a benchmark to other users who may use this project as a reference in the
future.

Research Process:

1. Formulation of research problem

2. Choice of research design
3. Determining sources of data
4. Designing data collection forms
5. Determining sampling design and sampling size
6. Organizing and conducting the field survey
7. Processing and analyzing the collected data
8. Preparing the research report
9. Conclusion

Formulation of research problem

The first step in research is formulating a research problem. It is most

important stage in applied research, as poorly defined problems will not yield useful
results. It is rightly said that “a problem well defined is half solved”. Poorly defined
problems cause confusion and do not allow the researcher to develop a good research
design.

In this project report my objective is to study the Promotional activities of

Nokia and its impact on coustomers, so that it is an effort to explore unnoticed
opportunities. Following is the complete problem definition of these projects report.

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Unit of analyses
In my research, unit for “Promotional activities of Nokia” are the people
who are using mobile phones.

Characteristics of interest
The main aim for the survey was to know The impact of Promotional
activities of Nokia on coustomers.

Time and space boundaries

In these project the time was given is two month for the completion of the
project report. In these project I have covered some areas of Surat city such as
Bhatar, City light and Bharthana.

 Choice of research design:

A research design specifies the methods and procedures for conducting a

particular study. The researcher should specify the approach he intends to use with
respect to the proposed study. Broadly speaking, research design can be grouped into
three categories, exploratory research which focuses on the discovery of ideas and is
generally based on secondary data. Descriptive research which is undertaken when the
researcher wants to know the characteristics of certain groups such as age, sex,
education, income, occupation, etc. Third is Causal research, which is undertaken when
the researcher is interested in knowing the cause and effect relationship between two or
more variables.

This research study will be undertaken on the basis of both Exploratory research
and Causal research, as I have to discover the ideas behind the Promotional Activities
of Nokia and to find out the effect of such activities on consumers.

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 Determining sources of data:

The next step is to determine the sources of data to be used. The marketing
researcher has to decide whether he has to collect primary data or depend exclusively
on secondary data. Sometimes, the research study is based on both secondary and
primary data.

In this project report both the sources of data are used, primary as well as secondary.

 Designing data collection forms:

Once the decision in favour of collection of primary data is taken, one has to
decide the mode of collection. The two methods available are observational method,
and survey method.

In this project report I have used survey method. There are various ways
through which survey can be done, these are

 Personal survey

 Telephone survey

 Mail survey and

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 Diary survey

In this project report personal survey is used. My objective is to know

Promotional activities of Nokia and its impact on customers in Surat city so I choose
personal survey because it is the most reliable method for getting information.

 Determining sampling design and sampling size:

Another aspect which forms a part of research process is the sampling plan.
When the marketing researcher has decided to carry out a field survey, he has to
decide whether it is to be a census or sample survey. In this project sample survey is
used.

The object of sampling is to choose a sample which faithfully reproduces

the characteristics of the population or universe. In this project report I have taken 100
samples. It is very obvious that 100 samples are not enough to know the behavour of
Surat city but I tried my best and covers as many areas as I can.

 Organizing and conducting the field survey:

Having prepared the questionnaires and selected the sample design and
size of sample, the next step is to organize and conduct the field survey. Two important
aspects should be looked into first is interviewing and another is the supervision of the
fieldwork. The task of interviewing seems to be simple but, in reality, it is one of the
most difficult tasks in marketing research. I also faced some problems during my survey
but I overcome with it.

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Other promotional activities related data are taken from internet, local news
papers and magazines.

 Processing and analyzing the collected data:

Once the field survey is over and questionnaires have been received, the
next task is to aggregate the data in a meaningful manner. A number of tables are
prepared to bring out the main characteristics of the data. The researcher should have a
well thought out framework for processing and analyzing data, and this should be done
prior to the collection.

In order to derive meaningful results from the statistical tables, the

researcher may use one or more of the following four steps. The first step is to calculate
relevant measures of central tendency as also of dispersion, highlighting the major
aspects of the data. The second is to cross tabulate the data to ascertain some useful
relationship. The third is to calculate the correlation coefficient and undertake a
regression analysis between variables. The fourth is to undertake a multivariate
analysis.

 Preparing the research report:

Once the data have been tabulated, interpreted and analyzed, the marketing
researcher is required to prepare his report embodying the findings of the research
study and his recommendations. As a poor report on an otherwise good research will

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considerably undermine its utility, it is necessary that the researcher gives sufficient
thought and care to its preparation.

Although report writing needs some skill, which can be developed with
practice, the researcher should follow the main principles of writing a report. Some of
these principles are objectivity, coherence, clarity in the presentation of ideas and use of
charts and diagrams. The essence of good research report is that it effectively
communicates its research findings.

Ch 5

Findings and Analysis:

5.1) Consumer promotion tools of Nokia in Surat:

People at Nokia study the market, sales promotion objectives, competitive
conditions, and each tool’s cost effectiveness. Nokia uses the following
consumer promotional tools:

1. Coupons: certificate entitling the bearer to stated saving on purchase of a

specific product: mailed, enclosed in other products or attached to them or
inserted in magazine and news paper ads.

Nokia provides this kind of coupons through mail or other print media. In
which a person can get the specific product for free or at discount rate.

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Image 1: Diwali Promotional coupon of Nokia

2. Cash Refunds: Nokia provides cost reduction on purchase of some of specified

products. Consumers have to send the proof of purchased product and then
Nokia sends refund money by mail.

3. Price Packs: Offers to consumers of savings off the regular price of a product,
flagged on the label or package. A reduced price pack is a single pack sold at a
low price. A banded pack is the two related products banded together.

Nokia offers saving on regular priced product through price packs on

promotional schemes. Recently Nokia has offered free downloading of your
favorite songs on from mobile net on the purchase of Nokia 5800 xpress music
phone.

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Image 2: Nokia 5800 xpress music price pack

4. Premiums: Merchandise offered at a relatively low cost or free as an incentive to

purchase a particular product. A with-pack premium accompanies the product
inside or on the package. A free in-the-mail premium is mailed to consumers who
send in the proof of purchase, such as box top or UPC code. A self liquidating
premium is sold below its normal retail price to consumers who request it.

In the Christmas season Nokia introduced gift vouchers on the purchase

of its listed products. Many times Nokia provides these kinds of offers and
schemes. In Gujrat region it provides such schemes on festivals like Navratri,
Diwali, Holi, etc.

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Image 3: Nokia promotional gift pack on Christmas

5. Prizes: Prices are the offers of the chance to win cash, trips or merchandise as a
result of purchasing something. A contest calls for consumers to submit an entry
to be examined by a panel of judges who will select the best entries. A
sweepstakes asks consumers to submit their names in drawing. A game
presents consumers with something every time they buy.-bingo numbers,
missing letters-which might help them win a prize.

Nokia introduces this kind of promotions on festivals. Few months ago

Nokia introduced a scheme in which you can win Nokia1661 or Nokia 1208 by
completing the puzzle you got on the purchase on Nokia accessories.

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Image4: Promotional contest of Nokia

6. Product warranties: Explicit or implicit promises by manufacturer that the

product will perform as specified or that the manufacturer has programmed it,
otherwise manufacturer will refund the money or replace the part during the
specific period.

Nokia provides warranty on batteries, speakers and other important parts of the
mobile products. If any damage found then Nokia will be ready to replace the
particular part.

7. Tie-in promotions: Two or more brands or companies team up on coupons,

refunds and contests to increase pulling power.

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Nokia has many tie ups. Nokia offers Vodafone of Airtel connection on the
purchase of its specified products. It also offers CDMA connection of Reliance on
the purchase of its CDMA phones.

Image 5: Nokia and Vodafone tie up for the promotion of N97

5.2) Trade Promotional tools of Nokia in Surat:

Nokia use a number of trade promotion tools to motivate the retailers and
dealers. Nokia awards money to the retailers and dealers to perform following tasks.

• To persuade the retailer or dealer to carry out the brand

• To persuade the retailer or dealer to carry more units than normal amount

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• To induce retailers to promote the brand by displaying, featuring and price

reduction and

• To stimulate retailers or dealers and their sales clerks to push the product.

The main promotional tools of Nokia for retailers and dealers are as follows:

1. Price-off: A straight discount off the list price on each case purchased during
a stated time period.

Nokia provides this kind of promotion to the dealers and retailers when
they purchase any stock during the festivals or other preferred seasons. It
gives price of on the listed products and newly launched products.

2. Allowance: An amount offered in return for the retailer’s agreement to

feature the manufacturer’s products in some way. An advertising allowance
compensates retailers for advertising the manufacturer’s brand. A display
allowance compensates retailers for carrying special product display.

Nokia gives allowance to the retailers who advertise Nokia products

and display them more than other brands. In surat city Nokia provides this
kind of allowance to the Bhatia mobile shop and Havmor mobile shop.

5.3) Promotional activities of Nokia in India:

Events and Experiences:

Sponsoring events provides companies with opportunities to obtain

wider exposure for their brands and influencing attitudes towards brands.
Daily encounter with brands may also affect consumers’ brand attitudes
and beliefs.

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Nokia also provides sponsorship and events in India. There are

many events which are sponsored by Nokia. Motives behind providing
sponsorship are as follows.

Importance of Events and Sponsorship:

1. To identify with a particular target market or lifestyle

2. To increase awareness of company or product name

3. To create reinforcement perceptions of key brand image

associations

4. To enhance corporate image

5. To create experiences and evoke feelings

6. To express commitment to the community or on social

issues

7. To entertain key clients or reward employees

8. To permit merchandising or promotional opportunities

As cricket is a favorite sport of India Nokia provides sponsorship for

Kolkata Knight Riders an Indian Premier League (IPL) team. It also
sponsors events like Star Screen Awards etc.

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Image 6: Nokia sponsoring Kolkata Knight Riders

5.4) Nokia’s Strategies in India:

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Nokia's strategy relies on growing, transforming, and building the Nokia

business to ensure its future success.

Nokia entered the Indian market in 1994. The first ever GSM call in India
was made on a Nokia 2110 mobile phone on its own network in 1995. When
Nokia entered India, the telecom policies were not conducive to the growth of the
mobile phone industry. The tariffs levied on importing mobile phones were as
high as 27%, usage charges were at Rs.16 per minute and, at these high rates,
consumers did not take to mobile phones. Nokia also had to face tough
competition from other powerful global players like Motorola, Sony, Siemens and
Ericsson etc.

Nokia - Made in India

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.

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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 magazine.

Bouncing Back

Nokia was quick to learn from its mistakes and adopted strategies to
regain its lost market share. Globally, during the first quarter of 2005, the
company’s sales reached 7.4 billion Euros, with the company selling 54 million
phones during the period. In India, Nokia continued its leadership in GSM with a
market share of 74% in March 2005. Nokia also surpassed Samsung in color
mobiles in the GSM segment, recording a share of 55% in the same month
(Refer Table VIII for share of major mobile phone brands in the GSM segment
and their market shares). Nokia reorganized itself at the global level in 2004. At
this point, a multimedia division was formed. The division’s Indian operations
concentrated on promoting the concept of high-end telephones in smaller towns
while going in for higher volumes in larger cities. The marketing division of the
company concentrated on making distributors in small towns sells high-end
products. Though, the distributors were skeptical to start with, by the end of
2004, the process was streamlined and the results started to show.

The Future Prospects

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According to industry analysts, by 2010, the mobile phones industry in

India will be driven by voice, multimedia and mobile services for organizations.
The tele-density in India was estimated to increase to 18.2% by March 2009, with
mobile subscription rising to 148.77 million by that time. In many instances, the
cell phone has become the only basic telephone link of a household/enterprise in
India, rather than a landline phone. It was turning out to be more economical and
efficient than fixed line telephones. So, there was great scope for further
expansion with reduction in the cost of ownership.

5.5) Reasons behind the success of Nokia in India:

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RESEARCH AT NOKIA:

Nokia believes that effective research and development is vital to

remaining competitive in the mobile communications industry. As of December
31, 2005, Nokia employed 20 882 people in research and development in 26
countries, representing approximately 36% of Nokia’s total workforce. R&D
expenses totaled EUR 3825 million in 2005, representing 11.2% of Nokia’s net
sales in 2005, compared to 12.9% of net sales in 2004. We invest a substantial
portion of our resources in research and development activities within our
principal business groups, Technology Platforms, and in the Nokia Research
Center. Nokia Research Center drives Nokia's technological competitiveness and
renewal in technology areas vital for the company's future success. Interacting

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closely with all Nokia business groups, the research center supports Nokia's
evolving core businesses by:

• providing expertise in strategically important areas

• developing new concepts, technologies and applications
• developing disruptive technologies beyond the current product
horizon

NO COMPROMISE WITH QUALITY:

Quality is at the heart of Nokia’s brand promise, very human technology.

Nokia wants their customers to know that Nokia is the best quality company in
the industry. Their goal is to have the industry’s best products and services, most
loyal customers and most efficient operational mode. Nokia believes that quality
is about meeting and exceeding customer expectations. At Nokia, they view
quality holistically and as an integral part of business management. The quality of
products and customer experiences depends on the quality of processes, which
in turn is tied to the quality of management Nokia’s key quality targets are:

• For Nokia to be number one in customer and consumer loyalty

• For Nokia to be number one in product leadership

• For Nokia to be number one in operational excellence

Focused Mobile Marketing:

The Nokia Local Marketing Solution is a unique solution providing

significant benefits for the service operator. It offers an interesting and
competitive alternative to marketing both owned and partnered cellular and non-
cellular services. With the solution, the mobile operator can boost usage of
existing service and create new business by providing advertising space for local
business owners.

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5.6) MARKET SHARE OF NOKIA:

Nokia owns 79% of the GSM market share in India

Finnish handset major Nokia has retained the top slot in Indian GSM market
with 79 per cent share, while US giant Motorola has more than doubled its share to
seven per cent this year, according to a study. Motorola has been able to
significantly improve its share by to seven per cent this year from three per cent in
2005, according to the latest annual TNS CellTrack 2006 study. It said the US
company’s gain was possibly the loss of South Korean handset maker Samsung,
whose market share dropped to four per cent in 2006 from six per cent a year ago.
In the CDMA market, LG has consolidated its position as the market leader with 49
per cent market share this year against 43 per cent in 2005, the study said. While
Nokia managed to retain its share in CDMA handsets, Samsung and Motorola lost
market share from 17 per cent to 8 per cent and 12 per cent to 4 per cent
respectively.
In Surat

The market share of Nokia is found to be almost 75% here where as Spice
has 9%, Motorola has 7%, Sony Ericsson and Samsung both have 4%, LG has 3%
and others have 2%. Spice is lowering Nokia sales especially in low price segment
and its arch rival Motorola is hampering the sales somewhat by taking advantage
of the lack of attractive look in Nokia.

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5.7) Impact of Promotional activities on customers:

To identify the effect of promotional activities of Nokia on customers I have

done a survey in which question related to their choice of mobile phones and
impact of the brand promotion was asked and I got following figures. 100
customers were surveyed.

Objective 1: To know how long the customers are using the mobile phones:

Table:
Response Percentage (%)
Less than a year 6
1-2 years 18
2-5 years 22
Above 5 years 54
Total: 100
Graph:

Chart: 1

Interpretation:

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6 % people are using the phone from last one year while 18% people are
using mobiles from last 1 -2 years,22% people are using mobiles since 2-5 years
and 54% people are using cell phones past 5 years. This shows how important
mobile phones are in daily life.

Objective 2: Toknow Which brand customers will prefer most while

purchasing mobile:

Table:

Response Percentage
Nokia 49
Sony 10
Motorola 11
Samsung 21
LG 6
Others 3
Total 100

Graph:

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Chart: 2

Interpretation:

The graph shows the popularity of Nokia in mobile phone market.49%

people are using Nokia while others legs behind. Samsung comes second with
21% consumers while Motorola, Sony, LG comes with 11%, 10% and 6%. There
are only 3% consumers who uses others brands.

Objective 3: If customer has purchased Nokia mobile in last two months:

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Table:

Response Percentage
Yes 44
No 56
Total 100

Graph:

Chart: 3

Interpretation:

There are 44% people who have purchased Nokia mobile in last two months.

Objective 4: To identify with which scheme customer has purchased Nokia

mobile:

Interpretation:

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As this was an open ended question so there are different answers from each
respondent but majority of people has purchased their mobile with life time
validity SIM card offer. Some people has purchased with Diwali schemes and
other festival offers.

Objective 5: To know which brand the customer was using previously:

Table:

Response Percentage
Nokia 38
Sony 23
Motorola 10
Samsung 19
LG 9
Others 1
Total 100

Interpretation:

As we can see the Nokia is favorite once again with 38% usage of Nokia
phones, while Sony comes second with 23 users and then Samsung and
Motorola with 19 and 10 users. LG is least popular among this top brands and
there is hardly one user who is using others brands.

Graph:

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Chart: 4

Objective 6: To know why the customer is still using Nokia:

Table:

Response Percentage

Price 21

Features 16

Quality 23

Durability 11

Style and looks 17

Other Reasons 12

Total 100

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Interpretation:

In this survey 21% people thinks about price when it comes to mobile,
16% believe in better features, 23% demands durability, 17% concerns about
style while 12% looks for extra features.

Graph:

Chart: 5

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Objective 7: To know why did customer switch to other brands?

Table:

Response Percentage

Price 33

Features 9

Quality 11

Durability 11

Style and looks 22

Other Reasons 14

Total 100

Interpretation:

The table shows that major reason behind switching to other brand is
price, than looks affects the choice of consumers, Features, quality and durability
creates impact on 9%, 11% and 11% consumers. There are 14% people who
concerns about other reasons.

Graph:

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Chart: 6

Objective 8: To know the source of information of Nokia products among

customers:

Table:

Response Percentage

Retailers 20

Television 30

Print media 25

Internet 5

Friends & 19
Relatives

Others 1

Total 100

Graph:

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Chart: 7

Interpretation:

As we can see consumers are getting most of the information from TV.
While 25% people gets data from print media, retailers provides information to
20 people,19% people gets information from their relatives and friends and only
5 people uses internet while only 1% people depends on other sources.

Objective 9: To know most reliable sources of information among

consumers:

Table:

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Response Percentage

Retailers 20

Television 25

Print media 15

Internet 8

Friends & 30
Relatives

Others 2

Total 100

Interpretation:

Consumers believe in their relatives and friends as 30 people rely on

them, 25% people rely on TV ads, 20 people rely on retailers, while 15% people
believe on print media, 8% people thinks they can get reliable information from
internet and only 2 people depends on other sources.

Graph:

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Chart: 8

Objective 10: To know whether the consumer can recall any Hordings, TV
commercials and Print Media advertisements:

The research shows that TV commercials starring Shahrukh Khan and

Priyanka Chopra are favorite among the consumers, while recent Hordings
featuring Nokia 5233 mobile is popular and Print media advertisements of special
schemes are favorite. After that TV commrecial of Nokia N97 is recalled by many
consumers, Print Media advertisement of Nokia E71 and E65 is remembered by
many consumers. Hordings of Nokia N82 are also stuck in the minds of
consumers.

Objective 11: To know most reliable retailer of Nokia in Surat:

In this research Bhatia was most reliable retailer of Nokia, other than that
Havmor mobile, Nokia priority, Umiya mobile are also choosen by respondents.

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CHAPTER 6
Conclusions and Recommendations

In first objective I come to know that mobile is one of the most important things in
human life as more than 50 percent people were using mobile from last 5 years. So I
recommend to mobile manufacturers to provide one of the best products to customers.

In second objective we can see that Nokia is most preferred brand for mobile. As
49% people prefer Nokia first. So I recommend to Nokia to continue its current strategy
and plans to achieve even higher standards.

There are 44% people who have purchased mobile in last two months. In fourth
objective people have described many schemes and offers which shows that Nokia is
providing good promotion to its customers. I recommend that Nokia should provide
more schemes on festivals like Diwali, Holi, etc.

In fifth objective as we can see the Nokia is favorite once again with 38%
usage of Nokia phones, while Sony comes second with 23 users and then Samsung
and Motorola with 19 and 10 users. LG is least popular among this top brands and there
is hardly one user who is using others brands.

In sixth objective 21% people thinks about price when it comes to Nokia mobile,
16% believe in better features, 23% demands durability, 17% concerns about style
while 12% looks for extra features. So I recommend that Nokia should apply even better
pricing policies so that they can attract more customers.

This seventh objective shows that major reason behind switching to other brand
is price, than looks affects the choice of consumers, Features, quality and durability
creates impact on 9%, 11% and 11% consumers. There are 14% people who concerns
about other reasons. Nokia should work hard on its pricing policies and style and looks
of its products.

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In next objective we can see that consumers get most of the information from TV
and they rely most on their friends and relatives suggestions so I would recommend that
Nokia should make better TV commercials and satisfy their customers with best
qualities so that they can suggest other person to buy Nokia products.

The ninth objectives show that brand ambassadors like Priyanka Chopra and
Sharukh Khan attracts the customers more so Nokia should feature them more. Media
advertisements and hoardings have equal popularity.

Last objective shows that Bhatia Mobile is a favorite destination to buy Nokia
mobiles. Nokia should provide better guidance to retailers about selling the Nokia
products, So that they can attract more customers.

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Bibliography:

Books:

• Marketing Management by Philip Kotler, 13th Edition, Prentice Hall

P; 372, PP; 501 – 519

• Modern Marketing Management by K.C. Nair, Himalaya Publications

3rd Edition, PP; 215 – 247
• Modern Marketing Management by R.S.N Bhagwati and Pillai, Sultan
Chand & Sons, 3rd Edition, PP; 314 – 328

Internet:

• http://www.google.co.in/search?
q=nokia+mobile&sourceid=ie7&rls=com.microsoft:en-us:IE-

• http://www.nokia.co.in/

• http://en.wikipedia.org/wiki/Nokia

• http://www.gsmarena.com/

• http://www.fonearena.com/nokia-phones.html

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Annexure:

Questionnaire:
Respected sir, madam
My name is Parth Patel. I am a student of Navnirman
Institute of Management Surat. I am doing a survey on “Impact of
Promotional activities of Nokia on customers”. This project is a curricular
requirement of B.B.A programme run by Veer Narmad South Gujarat
University.
Please help me to make my survey successful and provide
with accurate answers. I will be thankful if you co-operate with me in
this survey.
Thank You

Parth Patel

1. Name: …………………………………………………

2. Age:

[ ] 15 – 20 years [ ] 20 – 30 years

[ ] 30 – 40 years [ ] Above 40 years

3. Gender:

[ ] Male [ ] Female

4. Profession: …………………………………………

5. Income:

[ ] Below 10,000 [ ] 10,000 – 25,000

[ ] 25,000 – 50,000 [ ] Above 50,000

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6. Contact No: ……………………………………………

7. How long you have been using the mobile phone?

[ ] Less than a year [ ] 1 - 2 Years

[ ] 2 – 5 Years [ ] Above 5 Years

8. Which brand you will prefer most while purchasing mobile?

[ ] Nokia [ ] Sony

[ ] Motorola [ ] Samsung

[ ] LG [ ] others

9. Have you purchased Nokia mobile in last two months?

[ ] Yes [ ] No

10. Under which scheme you did purchased Nokia mobile?

………………………………………………………………………………………………………
…..

………………………………………………………………………………………………………
…..

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………………………………………………………………………………………………………
…..

11.Before that which mobile you were using?

[ ] Nokia [ ] Sony

[ ] Motorola [ ] LG

[ ] Samsung [ ] Others

12.Why do you stick to Nokia brand?

[ ] Prize [ ] Features

[ ] Quality [ ] Durability

[ ] Style and looks [ ] other reasons

OR

13.Why do you switch over to Nokia brand?

[ ] Prize [ ] Features

[ ] Quality [ ] Durability

[ ] Style and looks [ ] other reasons

14.From where did you get information about Nokia mobile phones?

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[ ] Retailers [ ] Television Commercial

[ ] Print media [ ] Internet

[ ] Friends or Relatives [ ] other sources

15.Which source of information influence you the most while purchasing Nokia
mobile?

[ ] Retailers [ ] Television Commercial

[ ] Print media [ ] Internet

[ ] Friends or Relatives [ ] other sources

16.Can you recall any hoardings of Nokia mobile?

………………………………………………………………………………………………………
…………..

………………………………………………………………………………………………………
…………..

17.Can you recall any Television commercial of Nokia mobile?

………………………………………………………………………………………………………
………….

………………………………………………………………………………………………………
………….

18.Can you recall any Print Media advertisement of Nokia mobile?

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………………………………………………………………………………………………………
…………

………………………………………………………………………………………………………
…………

19.Give name of Nokia seller or retailer in Surat whom you rely?

………………………………………..

………………………………………..

………………………………………..

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