10 cellular industry in india

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CONTENTS

Executive Summary

Introduction

Company Profile

Nokia

Sony

Motorola

Objective of Study

Methodology

Marketing strategy

Market mix

Competitors Analysis

Competitors Marketing Strategy Analysis

SWOT analysis

Findings & Analysis

Conclusion & Recommendation

Bibliography


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EXECUTIVE SUMMARY

THE INDIAN MOBILE PHONES INDUSTRY

The mobile phones industry made a slow start in India in 1995.

Several private players who had entered the industry in 1995

exited in the next few years due to the unfriendly telecom

policies of the Indian government, high licensing fees and

absence of a proper telecom regulatory body. The growth in the

subscriber base of mobile phones remained sluggish initially,

reaching the 1 million milestone in 1998. In 1999, the

Government of India announced a new telecom policy. This policy

planned to provide telephones on demand by 2002.Among other

things, the policy allowed unrestricted private entry into almost

all mobile service sectors. The government allowed cellular

mobile service providers to share infrastructure with other

operators. It also allowed existing operators to migrate from

fixed license fee to one-time entry fee with revenue sharing. This

policy helped many private operators to break even faster. By

2001, the demand for mobile services was growing well. The


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private companies concentrated on providing basic telephone

services to consumers. The number of mobile phones crossed

five million by 2001 and doubled to 10 million in 2002.

According to mobile phone industry body, GSMA, the mobile

phone industry is globally growing at the rate of one million

subscriptions per day. Of these new subscribers an estimated

85% live in emerging markets.

Markets like India and China are likely to continue developing

rapidly in the coming years. It is estimated that these markets

will account for nearly 12% of the entire global mobile handset

sales by the year 2010. Nearly 100 Million migrant workers in

China rely on their mobile phones, to speak to their families

settled in rural China.

In Asia/Pacific region, an increase in demand of mobile phones

from emerging markets such as, India and China, and growing

replacement markets, contributed to high growth in the 1st

quarter of the year 2006. Total mobile handset sales resulted


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64.4 Million units in this period, 36% up from the 1st quarter of

2005.

According to experts, the global mobile handset sales, reached

the 224 Million units mark in the 1st quarter of 2006, a 23.8%

increase from the same duration in 2005, and are expected to

grow by familiar figures in 2007.

Mobile handset manufacturers are looking for new emerging

markets, where people are not used to telephones, as

penetration rates in European regions have already crossed 90

percent.

The number of global mobile phone subscribers is around 2.2

Billion presently. Experts expect that it will become 3 Billion by

this 2007 end as the number of subscribers is increasing in

China, India, Latin America and Africa. Manufacturers believe

that there exists a big potential of earnings in these areas, as

only 1/3 people have cell phone in such developing mobile

markets.

There still exist challenges with the present infrastructure, such


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as putting adoption driving services in place and coming up with

low cost mobile phones. But the total number of potential mobile

subscribers makes emerging markets an expected source of

mobile market development.

HISTORY OF CELLULAR TELEPHONY IN INDIA

Cellular Telephony

The technology that gives a person the power to communicate

anytime, anywhere - has spawned an entire industry in mobile

telecommunication. Mobile telephones have become an integral

part of the growth, success and efficiency of any business /

economy.

The most prevalent wireless standard in the world today, is GSM.

The GSM Association (Global System for Mobile Communications)

was instituted in 1987 to promote and expedite the adoption,

development and deployment and evolution of the GSM standard

for digital wireless communications.


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The GSM Association was formed as a result of a European

Community agreement on the need to adopt common standards

suitable for cross border European mobile communications.

Starting off primarily as a European standard, the Groupe

Speciale Mobile as it was then called, soon came to represent the

Global System for Mobile Communications as it achieved the

status of a world-wide standard. GSM is today, the world's

leading digital standard accounting for 68.5% of the global digital

wireless market.

The Indian Government when considering the introduction of

cellular services into the country, made a landmark decision to

introduce the GSM standard, leapfrogging obsolescent

technologies / standards.

Although cellular licenses were made technology neutral in

September 1999, all the private operators are presently offering

only GSM based mobile services. The new licensees for the 4th

cellular licenses that were awarded in July 2001 too, have opted

for GSM technology to offer their mobile services.


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CELLULAR INDUSTRY IN INDIA

The Government of India recognizes that the provision of a

world-class telecommunications infrastructure and information is

the key to rapid economic and social development of the country.

It is critical not only for the development of the Information

Technology industry, but also has widespread ramifications on

the entire economy of the country. It is also anticipated that

going forward, a major part of the GDP of the country would be

contributed by this sector. Accordingly, it is of vital importance to

the country that there be a comprehensive and forward looking

telecommunications policy which creates an enabling framework

for development of this industry.

New Telecom Policy 1999

Telecommunications is now universally recognized as one of the

prime movers of the modern economy; hence it's vital

importance for a developing country like India. The availability of

adequate infrastructure facilities is critical for acceleration of the

economic development of any country. In fact international


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studies have established that for every 1% increase in tele-

density, there is a 3% increase in the growth of GDP.

Accordingly, the Government of India has accorded the highest

priority to investment and development of the

telecommunications sector.

Telecom requires very heavy investment and it was not possible

for the Indian Government to organize public funding of this

sector on such a massive scale. In fact the national telecom

Policy 1994, estimated a resource gap of Rs. 23,000 crores to

meet the telecom targets of the eighth five-year plan of the

Government of India (1992-97).

It was for this reason to bridge the resource gap between

government funding and the total projected funds requirement

and to provide the additional resources to achieve the nation's

telecom targets that the telecommunications sector was

liberalized in 1992 and the Government invited private sector

participation in telecommunications.


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Cellular mobile services were one of the first areas to be opened

up to private competition.

The whole country was divided into the 4 metropolitan cities and

19 telecom circles, which were roughly analogous with the States

of India.

Cellular Licenses were awarded to the private sector - first in the

metropolitan cities of Delhi, Mumbai, Kolkata and Chennai in

1994 and then in the 19-telecom circles in 1995.

The first metro cellular network started operating in August 1995

in Calcutta.

When cellular mobile services were first introduced in 1994 it was

as a duopoly (that is a maximum of two cellular mobile operators

could be licensed in each telecom circle), under a fixed license

fee regime and for a license period of 10 years.

The initial response of the private sector was very encouraging.

The attractiveness of the Indian market - the low tele density,

the high latent demand and a burgeoning middle class - brought

in some of the largest global telecom players, foreign institutional


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investors and the major Indian industrial houses to invest in

telecom, especially the Indian cellular industry.

Telecom proved to be a powerful attractor of foreign investment.

The cumulative FDI inflow into telecom since 1993 has exceeded

Rs. 43,000 Million. Within telecom, the cellular industry has

attracted most of the foreign investment since 1993, accounting

for almost 50% of the FDI inflow into telecom - representing

amongst the biggest investments in any one sector in India.

Annual foreign investment in telecom increased steadily from an

insignificant Rs. 20.6 Million in 1993 to Rs. 17,756.4 Million in

1998.

However, the attractiveness of the Indian market did not last for

very long, as by 1997-98, the private cellular operators were

confronted with a series of problems that threatened their very

viability and survival.

As a result of this, FDI inflow into telecom dropped sharply,

declining by almost 90% to Rs. 2126.7 Million in 1999. This


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dropped further in Year 2000 - as until June 2000, only Rs. 918

Million had flown into the country.

One of the key factors responsible for the critical state of the

telecom sector & consequently also the cellular industry was that

liberalization / deregulation was undertaken in an inverted

manner vis--vis international practices and generally accepted

norms. Usually, deregulation is preceded by tariff rebalancing,

institution of a strong and independent regulator and only then is

private sector participation invited.

In India, private sector participation was invited in 1992, the

Regulatory Authority was set up in 1997 and the tariff

rebalancing exercise commenced in 1999 and is still far from

complete. Further, even when the regulatory authority was set

up, there was considerable ambiguity on its powers, which

resulted in virtually each and every order of the Authority being

challenged by the Licensor / incumbent. The ambiguities in the

jurisdiction of TRAI resulted in a limbo in the industry.


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Another important factor was the basic approach of the

Government towards liberalization. Consumer benefit was given

the go-by and the telecom sector was viewed as a revenue

generator / cash cow for the Government exchequer.

NTP 94 was basically a good policy. It clearly identified that the

primary objective of the policy was to make available affordable

telecom services. However, in actual policy implementation, this

key / fundamental objective was disregarded. Licenses were

granted through an auction process and the enthusiastic private

sector deluded by the seemingly huge potential of the Indian

market were lured into bidding exorbitant sums of money for

cellular licenses.

The huge license fees paid by the private operators resulted in a

high cost structure leading to un-affordable tariffs and lower

growth of the market. By end-1998, the cellular industry was on

the verge of bankruptcy and at that time it appeared that the

liberalization dream was over & the nightmare had begun.


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It was under the above circumstances that the Government

undertook a review of telecom policy & the role of the regulatory

authority. The result was NTP 99, which was announced in March

1999 & the amendment of the TRAI Act in January 2000.

NTP 99 is an extremely forward-looking policy. It significantly

changed the dynamics of the Indian telecom industry as it not

only replaced the high cost fixed licensing regime with a lower

cost licensing structure through revenue sharing, but also

provides for greater degree of competition and more flexibility in

choice of technologies.

The amendments in the TRAI Act resulted in a considerable

strengthening of the Regulator & greater clarity on its role and

powers. It also put in place a separate dispute settlement

mechanism in the form of the Telecom Dispute Settlement and

Appellate Tribunal to expeditiously deal with and resolve issues

relating to the telecom sector.

Existing private cellular operators migrated to the new telecom

policy regime with effect from August 1999. There can be no


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doubt that migration to a more beneficial regime translated into

tangible consumer benefits - lower tariffs, greater subscriber

uptake & increased coverage.

Cellular tariffs have dropped by over 90% since May 1999 - a

feat unparalleled by any other sector or industry in India. The

average airtime tariff in Year 2002 is prevailing at around Rs. 2

per minute as against the peak ceiling tariff of Rs. 16.80 per

minute when NTP 99 was announced.

Parallely, there has also been a significant drop in the cost of

mobile handsets. Cellular handsets that were available for around

Rs. 25-30,000 in the initial days of cellular have now dropped

significantly, with a base level handsets being available for as

little as Rs. 2,000 upwards. This has come about as a result of

increased volumes and some degree of rationalization of

government levies.

As a result of improved affordability, there has been an increased

take-up of the service and the cellular operators were able to

venture into more and more cities & towns of the country. In fact


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cellular services are now available in almost 1400 cities & towns

of India.

With the lower tariffs and increased coverage, there was also a

resultant increase in the number of cellular subscribers. The point

of inflexion for subscriber take-off is clearly post NTP-99. From

1.2 million subscriber in April 1999, to almost 2 million by April

2000, the number of cellular subscriber have now grown to

almost 6.5 million by the end of March 2002.

By March 2001, the industry had invested nearly Rs. 16,000

crores in cellular infrastructure and it is estimated that these

investments will grow to Rs. 20,000 crores in the next 4-5 years.

The year 2001 also saw the entry of BSNL and MTNL as the third

cellular operators as had been mandated in NTP 99. Further, in

July 2001, cellular licenses were awarded to the 4th cellular

operators in different telecom circles. With this the number of

cellular operators has gone up to 89 licenses.

As of March 2002, the Indian cellular mobile industry had 42

networks on air, serving over 1400 towns and cities and covering


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thousands of villages and serving almost 6.5 million subscribers

across the country.

The quality of the service is widely accepted to be of international

standards and till date there has been no waiting period involved

in availing of this service.

The cellular industry has been growing at an average rate of 85%

per annum and it is hoped that the industry will be able to

sustain this growth in the coming years. The Working Group on

the Telecom Sector set up by the Government of India for the

tenth five-year plan, has estimated that over the next five years,

around 31.55 million cellular subscribers would be added all over

India. To achieve this growth, the Working Group has also

estimated that resources to the tune of about Rs. 25,240 crores

will be required over the next five years.

However, to attract foreign investments into India, it is

imperative to ensure the predictability and stability of the policy

and regulatory regime of the country. Policy flip-flops &

regulatory ambiguity have plagued the Indian telecom sector


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since the introduction of privatization. This has had the unhappy

result of putting the entire sector into a state of limbo as

investors - both foreign & domestic await clarity on the final

direction that the policy will take. In the meantime, foreign

investors, who have not committed themselves to the Indian

market, will divert their interest & investments to competing and

more attractive FDI destinations.

Further, for the industry to attract the requisite investments and

to reach the growth targets set for the tenth five-year plan, it is

imperative that a few crucial industry issues that have been

plaguing the industry, be resolved on an urgent footing. This

includes most importantly.


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INTRODUCTION

CELLULAR COMPANIES V\S CELL MANUFACTURERS

What do cellular phone companies have in common with

betel leaves?

Not much. But one Indian mobile phone company is using the

humble spice-laden, red-staining betel leaf called "paan" that is

used as a digestive aid to go mass market.

It represents the fledgling mobile industry's effort to shake off

the popular view that mobile phones are only for the rich.

"Saada (ordinary) paan -- 3 rupees, Airtime Rate -- 1.78

rupees," declared an advertisement of Hutchison Essar in

Wednesday's edition of New Delhi's Hindustan Times newspaper.

The price represents a real comedown for an industry which

charged up to 16 rupees a minute when it started in 1994.

"The idea is to expand the category of users. Earlier only the

breadwinner of a family could have a cellular phone. Today he

can think of phones for his wife, his two kids and probably even


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his driver," said Sudershan Bannerjee, chief executive officer of

Hutchison Essar.

"We want people with cellular phones to talk more and those who

do not want them to go and buy them," he said.

Hutchison Essar, in which Hong Kong's Hutchison Whampoa and

India's Essar group hold stakes, earlier this week introduced new

plans to lure customers with 40 percent lower tariffs.

The New Delhi-based cellular operator introduced Talk295, a plan

which allows customers to make and get calls at 1.78 rupees a

minute for a minimum monthly billing commitment of 295

rupees.

It unveiled two other plans, Talk Easy and Talk795, which have

tariffs pegged at 1.98 rupees and 1.48 rupees a minute for

varying minimum monthly billing commitments.

Hutchison is not alone here. Mobile companies across India,

especially in the cities, are mounting aggressive drives to attract

customers by introducing tailor-made plans with attractive tariffs.


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Late last month, the two main cellular companies in Bombay --

Hutchison Max Telecom and BPL Mobile -- flagged off the race for

lower tariffs by announcing cuts in various tariff plans in a bid to

expand their market.

Hutchison Essar's main rival in New Delhi, Bharti Cellular, quickly

followed suit Tuesday, introducing a range of new subscriber

plans.

Under its new "dream plan," Bharti will charge 1.15 rupees for

every 30 seconds of incoming and outgoing airtime. Bharti also

announced a slew of tariffs plans for various customer profiles.

"We are targeting fence-sitters who have stayed away from

owning a mobile because of a perception that it's expensive,"

said Sanjay Kapoor, chief executive officer of Bharti Cellular.

Both Hutchison Essar and Bharti have slashed security deposit

charges for new connections to 1,500 rupees from 2,000 bringing

down another major entry barrier for first-time users.

Mobile tariffs have been falling since the late 1990s and have

helped the industry expand its subscriber base. In February,


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mobile firms in the two main cellular markets of Bombay and

New Delhi slashed tariffs to around 2.80 rupees a minute from

four.

India's mobile subscriber base grew 88.7 percent year-on-year to

3.7 million at end-April 2001 but analysts and industry officials

say the numbers are still way too low for its billion-plus

population.

Analysts say the numbers spell potential for huge growth and not

surprisingly firms are pulling out all stops to exploit it.


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INDIA ADDS RECORD 6.6M MOBILE PHONE

SUBSCRIBERS IN OCTOBER

Cellular phone subscribers rose in India by a record 6.6 million in

October, keeping the countrys place as the worlds fastest-

growing mobile phone market, according to data released over

the weekend.

Subscribers for the GSM network grew by 4.7 million in

September, while the number of mobile phone subscribers using

CDMA technology increased by 1.9 million.

The Cellular Operators Association of India, which includes mobile

phone companies offering services on the GSM network, said the

country now has about 96 million GSM-based phone connections.

CDMA phone service providers say they now have about 40

million subscribers.

The total number of mobile phones in the country stands at

about 136 million at the end of October.
http://www.lirneasia.net/2006/11/india-adds-record-66m-mobile-phone-subscribers-in-october-2/http://www.lirneasia.net/2006/11/india-adds-record-66m-mobile-phone-subscribers-in-october-2/http://www.lirneasia.net/2006/11/india-adds-record-66m-mobile-phone-subscribers-in-october-2/http://www.lirneasia.net/2006/11/india-adds-record-66m-mobile-phone-subscribers-in-october-2/


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However, India still lags far behind China, which has more than

420 million mobile phones, the most in the world.

T.V. Ramachandran, CEO of the Cellular Operators Association of

India, said New Delhi topped Indian cities with just over 10

million subscribers.

The introduction of mobile services in India in the 1990s

coincided with a period of rapid economic growth. Intense private

sector competition, coupled with falling tariffs and ease in getting

a connection, led to a surge in subscriptions.

India Adds a Mobile Phone User Every Second

India's mobile phone industry is expanding exponentially, adding

one new subscriber every second to take the total telephone

subscriber base to 250 million by 2007, Communications and IT

Minister Dayanidhi Maran said on Thursday.

"India's telecommunications industry is on a very high growth

trajectory. We have already crossed the 185 million subscribers

mark, and by 2007 India will have 250 million phone


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subscribers," the minister said at India Telecom 2006,

inaugurated by President A.P.J. Abdul Kalam at the Pragati

Maidan fairground here.

"Our mobile subscriber base is increasing phenomenally each

year, adding almost six million new subscribers a month, which

means one customer is added every second," Maran told the

conference attended by the who's who of Indian telecom.

The conference is being organised by Ministry for

Communications and Information Technology, in association with

Federation of Indian Chambers for Commerce and Industry

(FICCI) and Telecom Equipment Manufacturers Association

(TEMA).

Over 200 companies are participating in the exposition, including

biggies like Bharti Airtel Limited, BSNL, C-Dot, Hutchison Essar

Mobile Services Ltd, COAI, Qualcomm India Pvt Ltd and Reliance

Communication Ltd.

Among the international participants are various small and

medium telecom companies from Canada, China, Singapore,


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Hong Kong, Italy, Taiwan, South Korea and the United States.

"By 2010, India will have more than 500 million mobile

subscribers from the current base which is more than 140

million," Maran said.

"This year we have already had investments of up to $17 billion

in IT and telecom, of which $1.5 billion have been in telecom

alone," the minister said.

He said an investment of $2 billion had been made in telecom

manufacturing only. "And more investments are on the anvil."

However, Maran expressed concern over slow growth of

broadband connectivity and said that one million more

subscribers would be added to the current three million by the

end of this fiscal


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COMPANY PROFILE

NOKIA

Nokia was founded in 1965 by Fredrik Idestam in Finland as a

paper manufacturing company. In 1920, Finnish Rubber Works

became a part of the company, and later on in 1922, Finnish

Cable Works joined them. All the three companies were merged

in 1967 to form the Nokia Group.

In the late 1970s, Nokia started taking an active interest in the

power and electronics businesses and by 1987, consumer

electronics became Nokias major business. Nokia created the

NMT mobile phone standard in 1981 and launched the first NMT

phone, Mobira Cityman, in 1987. The company delivered the first

GSM network to Radkilinia, a Finnish company in 1991, and in

1992, Nokia 1011 - a precursor for all Nokias current GSM

phones - was introduced.

In the 1990s, Nokia provided GSM services to 90 operators

across the world. Another significant move of the company

during this period was the divestment of its non-core operations


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like IT. The company focused on two core businesses - mobile

phones and telecommunications networks. Between 1992 and

1996, the company exited from the rubber and cable businesses

as well

Nokia in India

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

Nokia Corporation (Nokia) is a manufacturer of mobile devices.

The Company offers mobile network equipment, solutions and

services to corporate customers. Nokia operates in four business


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segments: Mobile Phones, Multimedia, Enterprise Solutions and

Networks. The Mobile Phones segment connects people by

providing mobile voice and data capabilities across a range of

mobile devices. The Mobile Phones segment offers mobile phones

and devices based on global cellular technologies, such as global

system for mobile communications (GSM)/enhanced data for

GSM evolution (EDGE), third generation/wideband code division

multiple access (3G/WCDMA) and code division multiple access

(CDMA). The Multimedia segment provides mobile multimedia

experiences to consumers in the form of advanced mobile

devices and applications with connectivity over GSM,

3G/WCDMA, wireless local area network (WLAN), Bluetooth and

other standards. The Enterprise Solutions segment offers

businesses and institutions a range of products and solutions,

including enterprise-grade mobile devices, underlying security

infrastructure, software and services. The Networks segment

provides network infrastructure, communications and networks

service platforms, as well as professional services to operators

and service providers.


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In October 2006, the Company completed the acquisition of

gate5 AG, a supplier of mapping, routing and navigation software

and services, and Loudeye Corp., digital music platforms and

digital media distribution services company. In February 2006,

Nokia acquired Intellisync Corporation (Intellisync). Intellisync is

a provider of mobility software, and delivers wireless e-mail and

other applications over an array of devices and application

platforms across carrier networks. The Company has two

horizontal groups, Customer and Market Operations, and

Technology Platforms, which support and service Nokia's mobile

device business groups. Customer and Market Operations is

responsible for marketing, sales, sourcing, manufacturing and

logistics for mobile devices from Mobile Phones, Multimedia and

Enterprise Solutions. Technology Platforms supports Nokia's

overall technology management and development by delivering

technologies and platforms to Nokia's business groups, as well as

to external customers.


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Mobile Phones

Nokia's product portfolio includes features and functionality

designed to appeal to the mass market, such as megapixel

cameras, music players and color screens. During the year ended

December 31, 2005, Mobile Phones introduced its first

3G/WCDMA products, which included the Nokia 6280, the Nokia

6233, the Nokia 6234 (for Vodafone) and the Nokia 6282 (for the

Americas). During 2005, Nokia shipped a total of 28.5 million

smart phones and more than 40 million mobile devices with an

integrated music player. The Mobile Phones business group has

five units: Broad Appeal, Entry, Lifestyle Products (formerly

known as Focused Appeal), CDMA and Vertu.

The Broad Appeal unit focuses on mid-range products. The

majority of Nokia's product portfolio falls into this category.

During 2005, the products introduced by the Company included

the Nokia 3250, a music-optimized device supporting one

gigabyte of memory; the Nokia 6280, a 3G/WCDMA phone with a


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two-megapixel camera, and Nokia 6230i. Under the Entry unit,

Nokia's products include the Nokia 2600 monoblock and the

Nokia 2652 clamshell, both with color screens, and the Nokia

1100. During 2005, the Company introduced the Nokia 1110 and

the Nokia 1600. The Lifestyle Products unit focuses on top-end

products. During 2005, the Lifestyle Products unit introduced the

Nokia 8800 phone, featuring a sliding stainless steel case; the

L'Amour collection of mobile phones, which come in three

different form factors and two color schemes, and the Nokia

5140i outdoor mobile phone featuring thermometer, compass

and flashlight.

The CDMA unit supports operators that use CDMA technology.

During 2005, products introduced by the CDMA unit included the

Nokia 6265 slide design phone with a two-megapixel camera and

Bluetooth connectivity, and the Nokia 6155, a CDMA mid-range

phone for the Americas. The Vertu unit offers luxury

communications products. Products offered in the Vertu unit

include the Signature Diamond Collection of tri-band GSM


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phones, including a model inlaid with 700 diamonds. The Vertu

unit also offers White Special Edition and Motorsport Limited

Edition phones, both of which are handcrafted from leather and

stainless steel with a custom-developed, scratch-resistant alloy,

and include tri-band GSM and Bluetooth connectivity.


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Multimedia

During 2005, the products introduced by the Multimedia segment

included Nokia 6630 and Nokia 6680 3G/WCDMA devices, and

the Nokia 6600 and the Nokia 7610 imaging devices. In April

2005, Nokia announced a sub brand, the Nokia Nseries, for a

category of advanced multimedia computers that offer

consumers the ability to shoot video and still pictures, print-

quality images, watch television, listen to music, and access the

Web and e-mail. In addition to supporting 3G/WCDMA

connectivity, certain Nokia Nseries multimedia computers also

feature non-cellular connectivity, including WLAN, frequency

modulation (FM) radio, digital video broadcasting-handheld

(DVB-H) and Bluetooth. The Multimedia segment has two units,

the Multimedia Computers unit and the Multimedia Experiences

unit.

The Multimedia Computers unit focuses on managing, delivering

and expanding the Nokia Nseries multimedia computer portfolio,


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as well as developing and marketing accessory products and car

communications solutions. During 2005, the Company began

shipping the Nokia N90, featuring Carl Zeiss optics for video and

still imaging, and the Nokia N70, a small device with a two-

megapixel camera. Upcoming products in the Nokia Nseries

range include the Nokia N71, featuring a quarter video graphics

array (QVGA) display and music capabilities; the Nokia N80,

featuring a three-megapixel camera and WLAN connectivity, and

the Nokia N91, featuring a four-gigabyte hard disk and WLAN

connectivity. In November 2005, the Company announced the

Nokia N92, a mobile device with an integrated DVB-H receiver

that enables television broadcast services on a mobile device.

The Multimedia Experiences unit develops and markets

multimedia applications and solutions in various areas, which

include mobile photography, mobile music, mobile computing,

mobile television and mobile games. Under the mobile

photography area, Nokia is developing imaging applications for

Nokia Nseries products that help in capturing, editing, printing,

sharing and storing of photos and video. Under the mobile music


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area, the Company is developing music applications and features

that deliver audio and enable music management. Under the

mobile computing area, Nokia is developing applications for

Nokia Nseries products in four areas, personal productivity,

Internet services, software additions and digital home

connectivity. For the mobile television area, it is developing

applications for the DVB-H standard. For the mobile games area,

the Company is developing the N-Gage platform and N-Gage

Arena gaming community, as well as the Nokia scalable network

application platform (SNAP) mobile gaming platform, to support

the population of Java-based mobile phones.

Enterprise Solutions

Under the Enterprise Solutions segment, the Company

collaborates with a range of companies to provide fixed-Internet

protocol (IP) network security, mobilize corporate e-mail and

extend corporate telephone systems to Nokia's mobile devices.

During 2005, the products introduced by Nokia included the

Nokia Business Center, a software that combines and manages


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corporate mobile e-mail, personal organizer, voice and other

business applications in a mobile device, and the Nokia Eseries, a

line of devices designed for business users and the information

technology (IT) organizations that support them. During 2005,

the Company also introduced the Nokia 9300 and Nokia 9300i

enterprise smart phones, and the Nokia 9500 Communicator,

each of which features a range of corporate mobile e-mail

solutions from a number of vendor companies. The WLAN-

enabled Nokia 9300i enterprise smart phone was introduced in

November 2005. In 2005, Nokia introduced the Nokia 6708, a

device focused on the requirements of the Chinese market.

The Enterprise Solutions segment consists of four main units,

Mobile Devices, Mobility Solutions, Security and Mobile

Connectivity, and Sales, Marketing and Services. The Mobile

Devices unit produces mobile devices specifically designed for

business use. The Company's product portfolio contains devices

with both cellular, such as GSM and 3G/WCDMA, and non-cellular

connectivity, such as WLAN. Its products include the Nokia E60,

the Nokia E61 and the Nokia E70, as well as the Nokia 9300,


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Nokia 9300i and Nokia 9500 devices. These mobile devices are

designed to address the security and manageability concerns of

corporate IT departments. The Mobility Solutions unit is

developing a suite of software solutions. The unit also works with

external vendors, such as Research in Motion, Microsoft, IBM,

Good, Visto and Seven, to make Nokia's mobile devices

compatible with their solutions. In addition, the unit works with

vendors, such as Avaya and Cisco on other applications, such as

connecting the Company's mobile devices to corporate fixed-line

telephone networks over WLAN technology.

The Security and Mobile Connectivity unit has a range of

application and secure connectivity offerings designed to help

enterprise customers grant employees access to corporate

information and connect their mobile devices to their corporate

network. These offerings consist primarily of firewall gateways

and software-based tools that operate with both Nokia and non-

Nokia devices, as well as with other existing IT infrastructures.

Nokia's firewall gateways run software from Checkpoint


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Corporation. The Sales, Marketing and Services unit is

responsible for sales to corporate customers, the management of

relationships with IT distributors, systems integrator and value-

added resellers (VARs), as well as for specialized sales resources

for selling Enterprise Solutions products to operator customers.

The unit is also responsible for management of the services

business, which includes support services for corporate

customers and resellers, as well as professional services to help

corporate customers with mobility solutions.

Networks

The Networks segment focuses on the GSM family of radio

technologies, and GSM, EDGE and 3G/WCDMA networks. It also

focuses on core networks with IP and multi-access capabilities.

As of December 31, 2005, the Networks segment had more than

150 mobile network customers in more than 60 countries, with

its systems serving in excess of 400 million subscribers. During

2005, Nokia delivered GSM/EDGE technology to more than 130


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customers in more than 60 countries. In 2005, the Company

supplied 3G/WCDMA technology to a total of 44 operators that

had launched commercial 3G/WCDMA services.

The Networks segment has five units: Radio Networks, Core

Networks, Services, Networks Customer and Market Operations,

and Delivery Operations. Radio Networks develops GSM, EDGE

and 3G/WCDMA radio access networks and cellular transmission

for operators and network providers. The main products offered

by Radio Networks are base stations, base station controllers and

cellular transmission equipment. Core Networks develops core

network solutions for operators. The main products are switches

and different kinds of network servers. Many of Nokia's core

network products can be used in both fixed and mobile networks.

Services offers operators a range of services, from network

planning and implementation to network optimization, care,

managed services and operations outsourcing. Networks

Customer and Market Operations deals with operator customers,

and is responsible for sales and marketing, as well as for overall


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customer relationships. Delivery Operations is responsible for the

sourcing, manufacturing and distribution of network products, in

addition to network delivery and services.

The Company competes with LG, Motorola, Samsung, Siemens,

Sony Ericsson, Apple, Canon, Dell, HP, Microsoft, Palm, Research

in Motion and Sony.


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MOTOROLA

Motorola is known around the world for innovation and leadership

in wireless and broadband communications. Inspired by our

vision of Seamless Mobility, the people of Motorola are

committed to helping you get and stay connected simply and

seamlessly to the people, information, and entertainment that

you want and need. We do this by designing and delivering the

"must have" products, "must do" experiences and powerful

networks along with a full complement of support services. A

Fortune 100 company with global presence and impact, Motorola

had sales of US$35.3 billion in 2005.

Connected Home Solutions

Provides integrated, end-to-end systems that reliably deliver

digital entertainment, information, and communications services

over a variety of wired and wireless broadband network

architectures. The world's leading provider of digital video set-

tops and cable modems, Connected Home Solutions empowers


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consumers by connecting their homes, keeping the people,

content, and services important to them always within their

reach.

Mobile Devices

Designs, manufactures, markets and services market-changing

icons of personal technology transforming the device formerly

known as the cell phone into an integral part of daily

communication, data access and management, and mobile

entertainment. Mobile Devices' portfolio of market-leading

innovations "must have" designs that deliver "must do"

experiences such as mobile music and mobile video

encompasses all cellular and wireless systems and includes an

array of software, applications and the industry's leading portfolio

of Bluetooth-enabled accessory products.

Networks & Enterprise

A leading provider of end-to-end infrastructure, integrated voice

and data communications, and information solutions, Networks &


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Enterprise delivers mission critical secure two-way radio, cellular

and wireless broadband systems to meet the needs of public

safety, government, private, service provider and enterprise

customers worldwide. Networks & Enterprise is advancing

seamless mobility with innovative technology solutions and a

services business that helps our customers integrate, optimize

and manage their networks to keep people connected as they

move about their daily lives.

Motorola in India

Motorola India is headquartered at Gurgaon, Haryana, with

offices at Delhi, Mumbai and Bangalore. It has research and

development centers at Bangalore and Hyderabad. Motorola's

operations in India are divided into three businesses: Mobile

Devices, Networks & Enterprise, Connected Home Solutions. The

Companys focus areas include, Mobile handsets, Wireless

Infrastructure, Managed and Hosted Services, Broadband


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Equipment (wired as well as wireless), Trunking & Two Way

Radios, Software Development, Applied Research and

Development on Seamless Mobility/Convergence technologies.

Networks & Enterprise Solutions

n India, Motorola is a leader in Trunking & Two Way Radios and

serves key government and non-government customers.

Motorola India has leading multi service operators as its

customers for Voice and Data solutions. The Company is also the

leading provider of integrated communications and information

solutions, trusted to meet mission-critical requirements and

improve the operations of public safety, government and

enterprise customers worldwide

It has proven capabilities in cellular, wireless broadband and

wireline access technologies, with recognized leadership in

integrating core networks through wireless IP, wireless softswitch

and IP multimedia subsystems. The Networks & Enterprise group

is advancing seamless mobility with innovative technology

solutions, and services business with an expanded portfolio


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delivering support, integration, applications and management. It

provides integrated radio communications and information

solutions. Network & Enterprise also designs, manufactures and

sells automotive and industrial electronics systems . Motorola

India enjoys a key position in the wireless infrastructure segment

and offers cutting edge end-to-end solutions across GSM and

CDMA technologies. It is a dominant player in GSM technologies;

the only one to have set-up networks in all metros and India's

first GPRS and CDMA network. All major carriers (GSM and

CDMA) are Motorola customers.

Motorolas CanopyTM, is an internationally proven, always on,

high speed broadband solution for cost-effective, secure and

flexible connectivity for networks, government, institutions,

homes and internet service providers. It enables a secure,

flexible and reliable wireless broadband connectivity and a cost-

effective means for "last mile" high speed internet and data

access for building, enhancing and extending broadband

networks, services and related applications.


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Mobile Devices

Motorola is amongst the leading handset players in India. Its

varied portfolio of products caters to every market segment.

From iconic products like the MOTOPEBL, MOTORAZR and SLVR

series, its mass market products are known for their reliability

and economy, and include several models on the C 11x and

related platforms. And leading offerings in Linux based PDA

phones.

India is also the global headquarters for Motorola's High Growth

Markets division.

Connected Home

Provides a scalable, integrated end-to-end system for the

delivery of broadband services that keep consumers informed,

entertained and connected. Its technology enables network

operators and retailers to create and execute on new business

opportunities by providing innovative products and services to

the home. The business is also known for high definition IP TV,


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set-top boxes, wireless modems, wireling broadband products

and home security solutions.

Motorola Software Group

Motorola Software Group's India center is the oldest and largest

center for research and development of software. It was the first

commercial software organization in the world to achieve SEI

Level 5 in 1993 and also the first organization in the world to be

assessed at SEI CMMI Level 5 on a continuous model. The

Motorola Software Group in India develops custom software and

solutions for Motorola's existing, and next generation wireless

systems and technologies.


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SONY

Ericsson has been associated with the Indian telecom industry for

more than 100 years. Headquartered in the National Capital

Region of New Delhi, Ericsson today has more than 1250

employees across 22 offices in the country. From Basic

Telephony, GSM, CDMA, Intelligent Networks, Datacom and the

most advanced computer telecom integration to mobile office

applications, multimedia communications and Software

Development, Ericsson offers a complete spectrum of telecom

solutions. Ericsson has played a key role in spreading the cellular

revolution in the country.

In India, Ericsson has clearly established itself as a Wireless

Infrastructure Leader. With 57 GSM and CDMA Networks,

Ericsson India has a market share of 33% in the Wireless

domain. The telecom market in India is currently growing at a

fast pace and is expected to more than double every year.

Latest phones


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K790i K550i W610i J110i

J120i K220i K200i K810i
http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10409http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10745http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10747http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10816http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10819http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10802http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10799http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10804http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10804http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10799http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10802http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10819http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10816http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10747http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10745http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10409http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10409http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10745http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10747http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10816http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10819http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10802http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10799http://www.sonyericsson.com/spg.jsp?cc=in&lc=en&ver=4000&template=pip1&zone=pp&pid=10804


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OBJECTIVE OF STUDY

The main objectives of the project are

The objective of the study is to have a study on the Handset

industry in India. Also studying about the trends and the different

players in the handset industry. The major object is to identify

and learn the marketing strategies of different players in the

industry. Also to study the market trends in the Indian market.

1) To understand the marketing and advertising strategies of

Nokia.

2) To analyze the strategies and its effect on the corporate

profile of the company

3) To compare the strategies of Nokia with its competitors and

to analyze its strengths.

4) To realize the role being played by advertising and

promotion on the change in sales volume of the company

5) To understand the future trends in advertising and

marketing in mobile handsets sector especially.

To understand the international operations of the company


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RESEARCH METHODOLOGY

TYPES OF RESEARCH:

Exploratory research: In well established fields of study,

hypotheses usually are drawn from the ideas developed in

previous research studies or are derived from theory.

Design of Exploratory Study

Study of Secondary Data: The quickest and the most economical

way for researchers to find possible hypothesis is to take

the advantage of the work done earlier and thus utilize their

efforts. (Refer Bibliography for the names of books,

magazines and websites consulted).

We would be using different sites , journal, Magazines, past

researches , publication houses, CII report to do this project. The

primary source of data will be secondary data. This will help us in

also studying the market trend across the country and not

restrict us to India only.


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MARKETING STRATEGY

NOKIA

Nokia started operations in India in 1995. In 2005, India is

among the top 5 markets for Nokia worldwide! Nokia has

developed major efforts in adapting its products and advertising

to the specificities and tastes of the Indian market:

- 1998- 1st Indian ringtone

- 2000- First Hindi User Interface

- 2002 -First Hindi text input

- 2003- First Made for India phone (Nokia 1100)

- 2004 -Hindi SMS campaign

- 2005 Local User interface in additional local languages


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Nokia's retail strategy in India involves classifying

consumers in to one of 4 categories

The mobile handset manufacturer has embarked upon a brand

new retail strategy that is based on a classification of its

consumers into four major groups that separates people in terms

of usage, income level and lifestyle.

The classification is based on an extensive survey the Nokia

Segmentation Study that was carried over two years involving

42,000 consumers from 16 countries. It studied the impact

lifestyle choices and attitudes have on the mobile devices

consumers buy and how they use them.

The strategy, which was announced globally in June last year, is

being unfolded in India now. While the nitty-gritty of the new

strategy is still being worked out, it is likely that the company

would follow separate marketing strategies for the four different

segments. The advertising campaigns could be different for the

segments.


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Nokias entire product portfolio has now been re-aligned towards

these four groups to address the specific needs of each. The first

of these segments Live, aimed a first time users whose basic

need is to stay in touch with voice as the main driver, would have

basic handsets low on features and price.

These may be functional phones but the target group for these

phones range from SEC C (low socio-economic class) to SEC A1+

(very high socio-economic class) markets, says Nokia India

marketing head Devinder Kishore. The second segment Connect

looks at more evolved users who look for more functionality and

features and connectivity. Accordingly, phones in this segment

would have GPRS, camera and music capabilities.

The next two categories, Achieve and Explore, are aimed at high-

end users and have Nokias top-end handsets. For example,

Achieve segment looks at enterprise users who need to have

business functionalities in their phones. Nokias new E-series has

been put under this segment with handsets having QWERTY

keyboards and full Internet capabilities.


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Aimed at high-end lifestyle users, Explore would be the most

prominent segment for the company in the coming years. Says

Nokia India multimedia business director Vineet Taneja, This

segment would see the most vibrant growth in the coming year.

It will look at five different areas applications, imaging, mobile

TV, music and gaming. We are fast developing the ecosystem to

support these areas.

PLACEMENT OF NOKIA

At Nokia, they like to make customers buying experience as

convenient as using their mobile phones. Nokia has a retail chain

across the country, to meet all the mobile phone needs. The

chain consists of exclusive flagship stores and important mobile

phone shops in all major Indian cities.

Nokia Professional Centres : These are Nokia flagship stores

that offer a full range of Nokia mobile phones and accessories in

an international retail environment, which helps the customers in

their decision making. NPCs also provide "Nokia Care", their


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branded after sales services, provided by specially trained staff.

The NPC is truly a one-stop centre for all your mobile phone

needs.

Nokia Priority Dealers : These key outlets allow the company

to come closer to the customers. Spread across the country, and

expanding rapidly in terms of reach, the NPD chain ensures that

you get the latest Nokia mobile phones and genuine accessories,

quickly and conveniently.

DISTRIBUTION CHANNEL OF NOKIA IN INDIA

Nokia has a very simple distribution channel in India and its very

similar to its competitors and is working to the advantage of the

industry as a whole . As of the distribution channel company has

used different networks to reach to the masses and their

distribution channel is

Priority dealers: They are the people who represent the

company . They have all the latest models and have information

about future introductions by the company . Here customers


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normally find the personnel of nokia. In India the total number of

priority dealers is around 8 only and they are located at major

cities of the country .

Showrooms: The company makes sure that their products are

available at leading electronics shops like Agrani Switches ,

Airtel shops e.t.c. They are the most crucial part of the supply

chain. The company has normally Tie up with these chain of

retailers who display and sell the models of Nokia and also act as

a place of service stations as their trained personnel are trained

by Nokia staff

RETAILERS: They normally form the lower end of the

distribution chain. They sell the max volume of the mobile

phones for the company. The are located at different strategic

locations and customers mostly purchase these from here only.

GREY MARKET: Its a very important distribution channel used

by the company. Nokias India`s operation may not be using this

channel as its illegal sorts but lots of Nokias products are


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available in these markets .We can understand the volume by the

fact that grey market sells 75% of the total turnover of the

mobile phones sold


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MARKET MIX

PRODUCT

The Latest Style

When people walk into a shop, many of them have already made

up their minds when they reach out their hand towards a Nokia

mobile phone and say, I want that one. They might ask about

data connections or operating times, but they have made their

choice because they like the design. They choose a Nokia phone

because its style is part of their lifestyle.

The latest technology

The first hand portable GSM phone, the first WAP phone, the first

mobile terminal with Web and email capability. Technology is

moving fast, and Nokia is moving even faster.

Or put it another way. The first digital GSM phone that let you

call home without having to look for a phone booth. The first

phone that let you check flight schedules over the Internet. And


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the first mobile terminal that let you check your email without

having to stop at the office.

Introducing the new Nokia 9210i a Genetic Breakthrough in

business tools. Cutting edge features like real-time video and

audio streaming, Flash animation player, fax, email, Internet

WAP, Word Processor, Spreadsheet, Presentations, Calendar and

Contacts give you more than a phone. They give you a distinct

competitive edge.

Introducing the new Nokia 9210i a Genetic Breakthrough in

business tools. Cutting edge features like real-time video and

audio streaming, Flash animation player, fax, email, Internet

WAP, Word Processor, Spreadsheet, Presentations, Calendar and

Contacts give you more than a phone. They give you a distinct

competitive edge.

Full Specifications

Cellular mobile phone (handsfree, handset and headset

use)

Desk application with background image and links


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Messaging includes SMS, Fax, E-mail

Internet includes WWW and WAP

Contacts

Calendar

Office includes Word Processor, Spreadsheet and

Presentation viewer

Extras: Calculator, Clock, Recorder, RealOne Player,

Imaging (Digital camera connectivity), Control panel, Data

mover, Internet startup, Help, Fax modem, Cell broadcast,

Calculator

There are also additional applications available on the CD-ROM,

like games and Flash Player. VPN support available as additional

software. Additional Nokia OK software available.

Real Audio and Real Video

You can stream video from services that use the RealNetworks

codec RealAudio 7&8 and RealVideo 7&8 (RA7, RA8, RV7, RV8).

In addition the service must be available with bit rates suitable


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for your HSCSD connection. You may find some material that is

only designed for wide band Internet access and this kind of

material cannot be viewed on the Nokia 9210i Communicator.

Flash: Flash Player renders Flash 5 content. Not all Flash 5

content is optimised for mobile devices. Therefore, some content

may be unsuitable for use in your Nokia 9210i Communicator.

Size

Dimensions: 158 x 56 x 27 mm

Weight: 244 g

Technical data

Dual band: EGSM 900/1800

32-bit ARM9-based RISC CPU

Operating system: Symbian OS

Data speed up to 43.2 kbps (HSCSD)

Memory Card slot (MultiMediaCard standard)

Connectivity: IrDA, Ir-TranP, Cable (DLR-2L)


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Low power consumption

E-mail protocols

POP3, IMAP4, SMTP (SSL,TLS)

PC Suite for Nokia 9210 Communicator

For use in Microsoft Windows 95/98/2000 and Microsoft

Windows NT 4.0 environments

Memory

Total memory: 40MB

Application memory: 16MB

User memory: 16MB (contains 6 MB preinstalled

applications)

Execution memory: 8MB (SD-RAM)

64MB Memory card available as an accessory


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Battery Performance

Talk/Data/Fax

time

Standby,

phone on

Standby,

phone off

Charging

time

High power

Battery BLL-3

1300 mAh Li-

Ion

4-10h 80-230h up to 400h 180min


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PRICE

Nokia`s strategy as of pricing is very simple . They are trying to

target everyone from a 12 year old teenager to 60 yr old man .

Their pricing fits the pocket of everyone from a middle class

income family to the super premium league.

The base model of Nokia in India as of now is 5210 which is sold

at a price of Rs 5,000 appx. Where as the costliest model of

Nokia commands a price of 50,000 + Indian Rs .Nokia has a very

unique approach towards pricing in south east Asia especially

India where a new product when launched is sold at a very high

price but as and when the time passes by they reduce these

prices considerably. It helps the company to maximize its profits

initially and in later parts of product cycle the phone is sold at

only variable cost plus profit. The company has divided its range

on the basis of price as follows

Below 10,000- base products.

!0,00020,000---- products with few unique features

20,00030,000--- products having latest technology


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30-000---- 50,000---- mobiles with cutting edge technology

Initially the Nokia products are priced at a premium range in

order to skim the market but in later stages in order to

penetrate in to the market deeper the company reduces its

prices, generally this happens after six months of the launch . In

terms of Pricing Nokia products are bit on the higher side if we

compare it with competitor products.

Placement of Nokia

At Nokia, they like to make customers buying experience as

convenient as using their mobile phones. Nokia has a retail chain

across the country, to meet all the mobile phone needs. The

chain consists of exclusive flagship stores and important mobile

phone shops in all major Indian cities.

Nokia Professional Centres : These are Nokia flagship stores that

offer a full range of Nokia mobile phones and accessories in an

international retail environment, which helps the customers in

their decision making. NPCs also provide "Nokia Care", their

branded after sales services, provided by specially trained staff.


71/154

The NPC is truly a one-stop centre for all your mobile phone

needs.

Nokia Priority Dealers : These key outlets allow the company to

come closer to the customers. Spread across the country, and

expanding rapidly in terms of reach, the NPD chain ensures that

you get the latest Nokia mobile phones and genuine accessories,

quickly and conveniently.

Distribution Channel of Nokia In India

Nokia has a very simple distribution channel in India and its very

similar to its competitors and is working to the advantage of the

industry as a whole . As of the distribution channel company has

used different networks to reach to the masses and their

distribution channel is

Priority dealers: They are the people who represent the company

. They have all the latest models and have information about

future introductions by the company . Here customers normally

find the personnel of nokia. In India the total number of priority


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dealers is around 8 only and they are located at major cities of

the country .

Showrooms: The company makes sure that their products are

available at leading electronics shops like Agrani Switches ,

Airtel shops e.t.c. They are the most crucial part of the supply

chain. The company has normally Tie up with these chain of

retailers who display and sell the models of Nokia and also act as

a place of service stations as their trained personnel are trained

by Nokia staff

RETAILERS: They normally form the lower end of the distribution

chain. They sell the max volume of the mobile phones for the

company. The are located at different strategic locations and

customers mostly purchase these from here only.

GREY MARKET: Its a very important distribution channel used by

the company. Nokias India`s operation may not be using this

channel as its illegal sorts but lots of Nokias products are

available in these markets .We can understand the volume by the


73/154

fact that grey market sells 75% of the total turnover of the

mobile phones sold

PROMOTION

Nokia is a very techno savvy and market savvy and friendly

company. As of the advertisement expenditures, Nokia spends

maximum amount on advertising as compared to its

competitors and is closely followed by Samsung. The company

uses mix of Public relations, promotions, advertising and

personnel selling and the major focus is on the advertising.

The company spends 50 %of its total revenue on

advertisements and the rest in other tools. Nokia has been

ranked as one of the top 5 brands in world telecommunication

and in mobile industry it holds the premier position in terms of

brand recall ,customer satisfaction etc . Different

advertisement campaigns have been launched from time to

time by Nokia and more often at the time of launch of a new

model.


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PRINT CAMPAIGNS:-

The thing to observe in their advertisement is that all their

campaigns are targeted at youth or at professionals which

form the core of all the campaigns. The Nokia hasn`t kept

using particular colours in their campaigns but they have used

a mix of it - yellow in case of 8310 ,red in case of 8810. But

one thing is common that is they are flashy, very attractive

and attention garners.

Their partner Bates Advertising company in India has done a

wonderful job. Another thing observed is that their campaigns in

print target more on product features that is that their campaigns

have product centric appeals.

ADVERTISEMENTS IN TVS:-

We have observed that strategy in television is entirely different

when Nokia decides to start its marketing inniotaitive on tv. The

focus is more on emotional appeal and the most commonly

appeal used by Nokia is the life style .who can forget the soup ad

of Nokia and their latest campaign on Nokia 8810. The most


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preferred channel in India for Nokia is CNBC followed by star and

then SONY

PUBLIC RELATIONS:

Mostly it is done by South East Asia operations and it deals with

printing of articles in magazines which mainly deal with business,

leisure and newspapers. The articles are mainly written by

prominent personalities about their product and its features.

Another form of public relations being used is the use of

bollywood stars. Nokia has sponsored certain scenes in few

movies which are targeted at upper class with the actors

possessing the latest models of Nokia. It is a very successful tool

and has helped Nokia in building the brand name.

PROMOTIONS :-

Promotions are normally done by sponsoring the events which

are mostly related to sports and games like golf, Polo, Cricket

And sponsoring of other events like fashion shows, movies, Co

promotions Etc. This tool has been second most preferred tool

used by Nokia in India.


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LOCAL COMMUNITY INVOLVEMENT INTERNATIONALLY

Nokias country organization support various local community

programs. In the US, for example, these include:

Class Link a project that uses wireless technology to

connect students, teachers and parent.

Vision one an initiative in which Nokia provided 38,700

wireless phones worth US$3 million to four Native American

tribes in Arizona.

The United Way to America an organization bringing

diverse people and resources together to address community

issues.

In the UK, Nokia supports Men cap, a leading charity working

with children and adults with learning disabilities, and in China,

Nokia Thinking Corner is a series of road shows and activities

is schools, encouraging creativity and innovation amongst young

people.


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Disaster relief

Following the events of September 11, 2001, Nokia provided an

initial grant of US$ 1 million to establish the Nokia Education

Fund that contributes to the college education needs of children

who lost one or both parents, regardless of their nationality.

In co-operation with the International Red Cross, it has also

contributed to:

Humanitarian assistance in the Kisovo crisis.

Relief after the Venezuelan floods.

Relief and reconstruction after the earthquake in Gujarat,

India.

Relief after the volcano eruption in the Congo and Rwanda.

MOTOROLA

Motorola India is entering the new year with a whole new team of

top management. The company had recently roped in ex-Tata

group veteran Firdose Vandrevala as its new chairman, Lloyd


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Mathias as its marketing director and a new head of marketing

communication, Jatin Ahluwalia. The company is now learnt to be

looking for a managing director for mobile devices.

While the new man will be part of the global divisional reporting

structure technically, he will be under the newly-appointed

chairman. A company source said Motorola has appointed a

global search agency with the mandate to look for the executive.

The change in top deck of `Team India comes in the wake of a

new-found focus on India for Motorola. This follows the India visit

of global chief Ed Zander, who disclosed the blueprint of a multi-

pronged strategy to pull up its Indian operations, which has been

languishing under single-digit market share, despite being

present in the market for a long time.

While the strategy for the Indian subsidiary is already under the

supervision of Motorolas emerging marketing expert Allen

Burnes, the new team is expected to bring a fresh approach in

implementation of the plans. The company has charted an


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aggressive plan to capture a bigger pie of the mobile handset

market in the country with a revamped product strategy to tap

both the top end and entry level markets.

Motorola announced a series of steps to help drive the companys

growth in India.

It announced the C115, one of the companys hottest-selling

mass-market handsets, will now have a Made in India label.

The company expects the first Motorola C115 handsets

assembled in India will be available by mid-December this year.

Assembly in India is the first step in a multi-phase manufacturing

strategy being deployed by Motorola in India.

Motorola also announced that it has selected India as the first

market to launch its new ultra-sleek and ultra-chic Motorola L6

mobile handset.

It has also entered into a strategic relationship with Bharti

Teletech to drive rapid expansion and brand presence.


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The Made in India handset is not the only happening thing with

Motorola India. The US-based telecom giant is entering the new

year with a whole new team of top management. While the

company had inducted a new marketing director a few months

back and had recently roped in ex-Tata group veteran Firdose

Vandrevala as its new chairman for India, the company is now

learnt to be looking for a managing director for mobile devices.

While the new man will be part of the global divisional reporting

structure technically, he will be under the newly-appointed

chairman. A company source said Motorola has appointed a

global search agency with the mandate to look for the executive.

Its learnt that initially Motorola had also given the mandate to

search a country head for India, but had eventually gone ahead

and appointed Firdose Vandrevala independently. With the new

MD, the Indian arm of the telecom equipment giant will have a

new team to push forth its growth strategy in the country. A few

months back, Motorola had roped in Lloyd Mathias as its


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marketing director, who had spent more than 10 years at

PepsiCo India. Two months back, Motorola had also roped in a

new head of marketing communication, Jatin Ahluwalia.

The change in top deck of `Team India comes in the wake of a

new-found focus on India for Motorola. This follows the India visit

of global chief Ed Zander, who disclosed the blueprint of a multi-

pronged strategy to pull up its Indian operations, which has been

languishing under single-digit market share, despite being

present in the market for a long time.

While the strategy for the Indian subsidiary is already under the

supervision of Motorolas emerging marketing expert Allen

Burnes, the new team is expected to bring a fresh approach in

implementation of the plans. The company has charted an

aggressive plan to capture a bigger pie of the mobile handset

market in the country with a revamped product strategy to tap

both the top end and entry level markets.


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Motorola-Bharti tie-up to boost sales

Motorola announced a strategic tie-up with Bharti Teletech to

boost the sales of its phones in India. The company says it wants

to break the Indian consumers mindset for Nokia phones.

Alan Burnes, Motorola vice president for high growth markets,

while unveiling the tie-up with Bharti Teletech, also shied away

from stating the market share the company hoped to achieve in

the next few years.

As Bharti goes after the lower socio-economic segment, Motorola

can provide the mass-market handsets like C113a. It has stylish

models like the Razr and Pebl in the higher-end segment.

Bharti Teletech is Indias largest manufacturer of fixed line

phones and the tie-up will open its 200 distributors and 12,000

retail outlets countrywide to Motorola, which currently has 6,000

outlets of its own. Bharti hopes to expand its network to 300

distributors and 15,000 retailers by March 2006.
http://www.mobilepundit.com/2005/11/14/motorola-bharti-tie-up-to-boost-sales/http://economictimes.indiatimes.com/articleshow/1294817.cmshttp://beetel.net/http://www.mobilepundit.com/2005/11/14/motorola-bharti-tie-up-to-boost-sales/http://economictimes.indiatimes.com/articleshow/1294817.cmshttp://beetel.net/


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Motorola launches Motofone globally from India

29 November 2006

New Delhi: Global wireless communications major Motorola, Inc.

(NYSE: MOT), has announced the global launch of its ultra-slim

Motofone handset from India, enabling Indian consumers, for

once, to be the first to own and operate a global product.

Motorola says it will use the Motofone to connect the next billion

mobile phone users. The product is available for the GSM mobile

technology while the CDMA version will be out before the end of

the year.

The new handset was unveiled jointly by K.Sridhara, member,

Technology, Telecom Commission, government of India, and

Allen Burnes, corporate vice president, high growth markets,

mobile devices, Motorola.

As Motorola's thinnest phone yet at approximately 9mm,

Motofone is positioned as a value-priced handset with an


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extensive core feature set, while appealing to sophisticated

design tastes and incorporates a flat keypad, a range of colours

and innovative materials.

The product is based on Motorola's new SCPL design platform

and will be "the first of a new breed of handsets designed to

disrupt today's communications landscape by cutting across price

tiers, product segments and international markets," says

Motorola.

"Today's global debut of Motofone in India marks a major

milestone as Motorola continues its drive to connect the next

billion handset users," said Burnes. "Innovatively designed to

meet the needs and tastes of consumers such as those right here

in India, Motofone is a signature handset that specifically

addresses the universal desire for connectivity."

Specifically for the Indian market, Motorola is further enhancing

Motofone's features by providing voice prompt options, apart


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from English and Hindi, in another six local languages Hindi,

Punjabi, Tamil, Telegu, Kannada, Malayalam and Bengali.

Motofone offers an intuitive interface built with icons and voice

versus text, as well as voice prompts in local languages, the

handset makes it easier and friendlier for first-time users to

navigate, place a call, and retrieve messages. Its large, high

contrast screen, powered by a revolutionary ClearVision display,

provided by E Ink Corporation, makes it easier to use the phone

outdoors as its changeable electronic ink display is just as easy

to read in bright sunlight or dimly lit environments from virtually

any angle - just like paper.


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SONY ERICSSON

Watch out for Sony Ericsson handsets in the movie Spiderman 3

that is set to hit the theatres next year. According to Mr Dee

Dutta, Corporate Vice-President, Head of Marketing, Sony

Ericsson, some of the company's mobile phones will feature in

the movie, which is now under production.

This is in sync with Sony Ericsson's strategy to ride on the plank

of "entertainment through music, movies and sport," said Mr

Dutta.

While handsets T230 and Z200 were featured in Spiderman 2,

James Bond was seen using the K800 model in Casino Royale.

And just about every phone used in Da Vinci Code was a Sony

Ericsson model.

India strategy

But it's not just Hollywood that Sony Ericsson is trying to tap.

The company is also in talks with a few Indian moviemakers for a


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possible association. While the company would not reveal the

movie names, the scoop is that they are scheduled for release in

April.

Recently, Sony Ericsson tied up with Kabhi Alvida Na Kehna for a

360-degree promotion around the movie by offering wallpapers,

audio and video content, apart from launching an entire media

campaign.

According to Mr Dutta, India is a key market for the company

among the top five markets that comprises Brazil, Mexico, China

and the UK. (Globally, Sony Ericsson has an 8-9 per cent market

share in terms of mobile phone subscription.)

As part of its India campaign, the company is looking to feature

Indian music in a big way; it is talking to Indian artistes for

exclusive tracks on Sony Ericsson handsets (this is similar to its

global initiative featuring singer Robbie Williams and Christina

Aguilera ). It also has associated itself with sports by announcing


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a women's tennis tournament in Bangalore featuring Sania Mirza

and Serena Williams.

The company recently set up four `experience stores' in Delhi,

Rajkot, Pune and Guwahati. These are exclusive Sony Ericsson

showrooms retailing not only its products but also offering a

complete brand experience, including live demonstrations. The

company plans to have 25 `experience stores' by the end of

2006.

Only a few years ago it would have sounded very nearly crazy.

But when Sony Ericsson Mobile Communications President Miles

Flint told the press last October that his company would be

among the top three mobile phone makers within five years, it

seems he wasn't just blowing smoke.

Sony Ericsson's recently released fourth-quarter results confirm

that in the last two and a half years, the joint venture between

Japan's Sony and Sweden's Ericsson has transformed itself into

the rising star of the mobile industry. Boosted by sales of its


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Walkman and Cyber-shot phones last year, the London-based

company posted record quarterly revenues of 3.78 billion ($4.9

billion), up 64%, and more than tripled its quarterly net income

to 447 million ($581 million).

For the year, revenues hit nearly 11 bi

10 cellular industry in india

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