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A PROJECT ON
Digital Media Marketing

“NOKIA CHANNELS OF DISTRIBUTIONS”

SUBMITED TO PILLAI’S COLLEGE OF ARTS , COMMERCE AND SCIENCE SYBMS’B’

Submitted To: Mrs. Prerna Sharma Faculty Guide

Submitted By: NISHA PRASAD Roll. No.2363

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ACKNOWLEDGEMENT

I express my thanks to Mrs. PRERNA SHARMA (faculty Guide) for granting me the permission to work on the brand Nokia. Who guided and helped me in all possible ways they could, at every stage of the project.

I would also like to thank the respondents for providing us all the required information which helped us a lot in our project

I would also like to thank all the team members of Nokia who provided all the relevant information and their kind support, on the basis of which this report has been prepared.

NISHA PRASAD

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STUDENT DECLARATION

I NISHA PRASAD student of SYBMS‟B‟ hereby declare that the Project work entitled “NOKIA-CHANNELS OF DISTRIBUTIONS" is compiled and submitted under the guidance of Mr. PRERNA SHARMA (faculty guide), and company’s official website (Company guide), is my original work.

Whatever information furnished in this project report is true to the best of my knowledge.

SUBMITTED BY:

NISHA PRASAD

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PREFACE

As a student of management in Business administration, it is very important to understand the practical way of doing work in an organization. The project report provides student the opportunity to study the organization and try to correlate the theoretical and practical aspects of working in a real business environment.

A distribution system is a key external resource for any company or firm. Normally it takes years to build, and it is not easily change. The choice before an organization to have, indirect or joint distribution depends upon the degree of control; flexibility depends upon the degree of control, flexibility, cost and financial requirements.

For example, indirect distribution, there is less of control but is more economical. In this sort of distribution lesser funds are tied up and there is low fixed variable cost of managing the channel. On the other hand in personal selling, there is better control but is more expensive.

Today most of the TELECOM companies including Nokia used intensive distribution, which consists of manufacture placing the goods or services in as many outlets as possible. Generally for the product it requires great deal of location convenience. Management generally needs to search for distribution economics in inventory control, warehouse location and transportation modes. Distribution play the vital for the success of any product in the market, out of 4 p‟s of
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marketing mix one is place which clearly indicate that consumers and customers needs, wants and demand.

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Table of content

Topic

Page No.

1. Executive
summary……………………………………………………….…………………………8

2. Introduction …………………………………………………………………………….12

3. Research methodology………………………………………………………………….46

4. Method of collection…………………………………………………………………….54

5. Questionnaire……………………………………………………………………………63

6. Conclusion……………………………………………………………………………….68

7. Limitations……………………………………………………………………………….69

8. Suggestions………………………………………………………………………………..71
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9. Bibliography………………………………………………………………………………..72

10.Appendix………………………………………………………………………………….73

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EXECUTIVE SUMMARY

For this project, we have chosen the company NOKIA. Nokia is a mobile telecommunications company, and offers far more than just mobile phones for everyday use. They offer networking solutions for businesses that help businesses stay connected and communicate with each other at all times and places. For them, Nokia also offers special mobile phones with exquisite and unique functions and options. In this project, we will first talk about what Nokia is and what they do. We will talk about their history, and how they came to where they are today. Vision, goals, and their strategy are discussed, as well as their wide variety of products and services offered for the regular consumer, businesses, and service providers. Nokia‟s success benefits were some advantages they had in the market. These also include the advance technology and features, as well as services they offer to their consumers. However, like most other companies, Nokia has some weaknesses, but we consider these to be very minimal, and almost only come down to their competition. Lastly, we will talk about their informational business model. This model includes Nokia‟s work organization, control system, industrial relations, human resources, business strategy, and finally, enterprise organization. We will look closely at and discuss all of these elements, and why we think that they are relevant to Nokia.

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Nokia has recently undergone a major organizational restructure. As a result of this restructuring, Nokia has revised it goal, mission and strategy into clear and specific objectives. On Nokia‟s website they state, “Our goal is to be a good corporate citizen wherever we operate, as a responsible and contributing member of society. We take part in long-term projects aimed at helping young people create their own place in the world, for example through our global youth programs.” They hope to fulfill their goal by following their mission statement that is, “By connecting people, we help fulfill a fundamental human need for social connections and contact. Nokia builds bridges between people – both when they are far apart and face-to-face – and also bridges the gap between people and the information they need.” Nokia plans to achieve its goal and pursue its mission by implementing its strategy of, “Expand mobile voice, drive consumer multimedia and bring extended mobility to enterprises.” There are many different products Nokia offers within a common product line. This common product line is cellular phones and accessories. Nokia offers many different cell phones with many different features. Nokia, however, is more than just a manufacturer. In addition to its manufacturing base, Nokia offers cellular phone and digital television service though in limited areas. It may seem that Nokia has a limited product line but when include with the research and development of these areas, their service and manufacturing portfolios become more impressive.

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As it can be assumed the cellular phone market is very lucrative. In 2003, according to The Journal.com, Nokia had sales of $37.1 billion and profit of $4.53 billion. This encompasses all revenue and profit areas, with a market share in the phone industry of nearly 35%. This market share has declined, at least in the first quarter of this year, to 29%. Rival phone manufacturers are stealing market share away from Nokia, while Nokia failed to meet the demand for its phones in the first quarter. More recent estimations of market share where not available as of November 2004. Technology is absolutely crucial to the prosperity of Nokia. Technology is what sets Nokia apart from its competitors. As a pioneer in the development of cell phone capabilities, Nokia uses cutting edge technology in mobile instant messaging, browsing, video, imaging, music, and emailing. Security while using the features is also one of their primary concerns. With new bluetooth technology, Nokia is providing peace of mind in information transfers. Data synchronization and wireless Internet capabilities are also part of Nokia‟s advanced mobile technology. Also using advanced technology is the digital television service they provide, but pioneers in this field they are not. As can be imagined with any large employer, Nokia offers many different employment opportunities. These opportunities are available for almost every educational level, with jobs varying from janitor to research development specialist. As both a manufacturer, service
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provider and research development firm there are many different positions available. In the service field there are phone assistance that work with customers and their accounts, while actual technicians work in the field fixing disruptions in service and connecting accounts. The research department creates new technology for the manufacturing sector to put into

production. Obviously, there are the necessary departments such as accounting and human resources that facilitate the everyday operation of the company. The management team coordinates the focus and strategy of the overall company and works to improve upon existing procedure. The entire employment structure is tiered in the fact that each member of each department is accountable to an overseeing authority. In fact, even the chief executive officer of the company is accountable to the board of directors. This accountability forces the ethical behavior of each member of Nokia, since the board is ultimately accountable to the stakeholders of the company. The entire structure is similar to and umbrella in shape, funneling together towards the peak, but then funnels back out to the stakeholder at the top. Everyone is accountable. Nokia‟s group structure is slightly different than its employment structure. The business structure is entirely segmented while the employment structure is segmented but yet connected through the manufacturing process. The structure is actually segmented with separate functions in each area .
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INTRODUCTION

Nokia has played a pioneering role in the growth of cellular technology in India, starting with the first-ever cellular call a decade ago, made on a Nokia mobile phone over a Nokia-deployed network.

Nokia started its India operations in 1995, and presently operates out of offices in New Delhi, Mumbai, Kolkata,Jaipur,Lucknow,Chennai, Bangalore, Hyderabad, Pune and Ahmedabad. The Indian operations comprise of the handsets business; R&D facilities in Bangalore, Hyderabad and Mumbai; a manufacturing plant in Chennai and a Design Studio in Bangalore.

Over the years, the company has grown manifold with its manpower strength increasing from 450 people in the year 2004 to over 15000 employees in March 2008 (including Nokia Siemens Networks).

Objectives: Our objectives behind doing this project was to know,

1. Why customers prefer Nokia over other Brands?

2. The areas in which Nokia performs better?

3. How the Brand Nokia effect the consumers Psychology?

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4. Strategies to be adapted by Nokia to be the to keep their market base?

5. To analyze the brand NOKIA acceptability by the customers.

Results: we came to know that people prefer Nokia because of mainly it‟s range of products,
Availability, durability and user friendliness. It is facing close competition from other players like Motorola, Samsung, LG etc.we also came to know the strategies adapted by Nokia to maintain it‟s market position as number one. We also came to know that NOKIA Brand name matters when a person purchase nokia mobile handsets. Other findings are discussed in details in the main body.

Conclusion: During the course of research on this project (Preference of Nokia mobiles over
other cell-phones) we have come to know a lot of interesting facts and Information regarding Nokia. Nokia is undoubtedly the market leader in the cell-phone market. Nokia still dominates the world cell-phone market share. Nokia leads the market with 38.6% stake, beating its nearest rival Samsung which has 16.2% stake. Motorola and LG are tied with 8.3% each. Nokia enjoys this status of being no. 1 because of its qualities, features, price range it provides to its customers compared to its competitors.
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Recommendation: Through our collaborative research, we have found out some areas where
Nokia should emphasize more so that it continues to be the market leader and have an edge over its competitors. These include further focus on –

1. Product competitiveness: - The products of Nokia should be superior or at least at par with the competitors‟ regarding technology, designing and features etc.

2. Customer satisfaction: - Nokia should come up with more value added products and effective after-sales services.

3. Research and Development: - In order to retain the position of a market leader Nokia should incorporate the latest technological innovations into their handsets and should put stress on further development.

4. Demand and Supply: - A strong demand and supply network should be established for smooth availability of products to the customers.

5. End to End capability: - Stress should be given on end to end capability by integrating mobile devices applications and infrastructure.

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Devices business

Nokia has established itself as the market and brand leader in the mobile devices market in India. The company has built a diverse product portfolio to meet the needs of different consumer segments and therefore offers devices across five categories ie. Entry, Live, Connect, Explore and Achieve. These include products that cater to first time subscribers to advanced business devices and high performance multimedia devices for imaging, music and gaming.

Nokia has been working closely with operators in India to increase the geographical coverage and lower the total cost of ownership for consumers. Today, Nokia has one of the largest distribution network with presence across 1,30,000 outlets. In addition, the company also has Nokia Priority Dealers across the country and Nokia „Concept stores‟ in Bangalore, Delhi, Jaipur, Hyderabad, Chandigarh, Ludhiana, Chennai, Indore and Mumbai to provide customers a complete mobile experience.

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Services business

With the global launch of Ovi, the company's Internet services brand name, Nokia is renewing itself to be at the forefront of the convergence of internet and mobility. From being a product centric company, Nokia is now focusing to become solutions centric. The strategic shift is built on Nokia‟s bid to retain consumers and empower Nokia device owners to realise the full potential of the Internet. Nokia will build a suite of Internet based services like Nokia Maps, the Nokia Music Store and Nokia N-Gage around its Ovi brand.

Infrastructure business

Nokia Siemens Networks is a leading global enabler of communications services. The company provides a complete, well-balanced product portfolio of mobile and fixed network infrastructure solutions and addresses the growing demand for services with 20,000 service professionals worldwide. Its operations in India include Sales & Marketing, Research & Development, Manufacturing and Global Networks Solutions Centre. Headquartered in Gurgaon, Nokia Siemens Networks has 47 offices and presence in over 170 locations across the country.

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R & D centers

Nokia has three Research & Development centers in India, based in Hyderabad, Bangalore and Mumbai. These R&D hubs are staffed by engineers who are working on next-generation packetswitched mobile technologies and communications solutions to enhance corporate productivity.

The Center in Bangalore, the biggest R&D site in the country comprises S60 Software Organization, Common Technologies, Next Generation now called Maemo Software, Productization and Software & Services.

INDUSTRY OVERVIEW

Nokia Corporation is a Finnish multinational communications corporation that is headquartered in Keilaniemi, Espoo, a city neighboring Finland's capital Helsinki.Nokia is engaged in the manufacturing of mobile devices and in converging Internet and communications industries, with over 123,000 employees in 120 countries, sales in more than 150 countries and global annual revenue of EUR 41 billion and operating profit of €1.2 billion as of 2009 It is the world's largest manufacturer of mobile telephones: its global device market share was about 39% in Q4 2009, up from 37% in Q4 2008 and 38% in Q3 2009, and its converged device market share was about 40% in Q4, up from 35% in Q3 2009. Nokia produces mobile devices for every major market

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segment and protocol, including GSM, CDMA, and W-CDMA (UMTS). Nokia offers Internet services such as applications, games, music, maps, media and messaging through its Ovi platform. Nokia's subsidiary Nokia Siemens Networks produces telecommunications network equipment, solutions and services Nokia is also engaged in providing free digital map information and navigation services through its wholly-owned subsidiary Navteq.

Nokia has sites for research and development, manufacture and sales in many countries throughout the world. As of December 2009, Nokia had R&D presence in 16 countries and employed 37,020 people in research and development, representing approximately 30% of the group's total workforce. The Nokia Research Center, founded in 1986, is Nokia's industrial research unit consisting of about 500 researchers, engineers and scientists. It has sites in seven countries: Finland, China, India, Kenya, Switzerland, the United Kingdom and the United States. Besides its research centers, in 2001 Nokia founded (and owns) INdT – Nokia Institute of Technology, a R&D institute located in Brazil. Nokia operates a total of 15 manufacturing facilities located at Espoo, Oulu and Salo, Finland; Manaus, Brazil; Beijing, Dongguan and Suzhou, China; Farnborough, England; Komárom, Hungary; Chennai, India; Reynosa, Mexico; Jucu, Romania and Masan, South Korea Nokia's Design Department remains in Salo, Finland.

Nokia is a public limited liability company listed on the Helsinki, Frankfurt, and New York stock exchanges. Nokia plays a very large role in the economy of Finland; it is by far the largest
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Finnish company, accounting for about a third of the market capitalization of the Helsinki Stock Exchange (OMX Helsinki) as of 2007, a unique situation for an industrialized country. It is an important employer in Finland and several small companies have grown into large ones as its partners and subcontractors. Nokia increased Finland's GDP by more than 1.5% in 1999 alone. In 2004 Nokia's share of the Finnish GDP was 3.5% and accounted for almost a quarter of Finland's exports in 2003.

In recent years, Finns have consistently ranked Nokia as one of the best Finnish brands. In 2008, it was the 27th most respected brand among Finns, down from sixth place in 2007.] The Nokia brand, valued at $34.9 billion, is listed as the fifth most valuable global brand in the Interbrand/BusinessWeek Best Global Brands list of 2009 (first non-US company). It is the number one brand in Asia (as of 2007) and Europe (as of 2009), the 41st most admirable company worldwide in Fortune's World's Most Admired Companies list of 2010 (third in Network and Other Communications Equipment, seventh non-US company), and the world's 85th largest company as measured by revenue in Fortune Global 500 list of 2009, up from 88th the previous year. As of 2009, AMR Research ranks Nokia's global supply chain number six in the world.

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Some firsts for Nokia in India

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

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

2000 - First phone with Hindi menu (Nokia 3210)

2002 - First Camera phone (Nokia 7650)

2003 - First Made for India phone, Nokia 1100

2004 - Saral Mobile Sandesh, Hindi SMS on a wide range of Nokia phones

2004 - First Wi-fi Phone- Nokia Communicator (N9500)

2005 – Local UI in additional local language

2006 – Nokia manufacturing plant in Chennai

2007 – First vernacular news portal

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Some Achievements for Nokia

 

Ranked No 1 Most Trusted Brand Survey by Brand Equity, 2008 Ranked the No 1. MNC in India by Business world, India‟s leading business weekly, 2006



Ranked as the No. 1 telecommunications equipment vendor in the country by Voice & Data for five consecutive years –2008, 2007, 2006,2005 and 2004

  

Ranked as the 9th most powerful brand by Millward Brown‟s BrandZ 2008 Ranked world‟s 4th most valuable brand by Interbrand, 2007 Ranked Asia‟s most trusted brand by the Media-Synovate, 2006

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Handset Market Share

    

Nokia: 59.5% Sony: 8.1% Samsung: 7% Motorola: 5.9% Nokia said on Friday the cellphone market totaled 1.26 billion phones last year, above its earlier forecast of 1.14 billion, and reduced its share of sales to 34 percent from an earlier forecast of 38 percent.



Research group Gartner said the grey market -- mostly in China, India and Latin America -- totaled 145 million phones last year.



Nokia said new measurement tools enable it to better estimate the number of handsets being sold by some new players.



"These include vendors of legitimate, as well as unlicensed and counterfeit, products with manufacturing facilities primarily centered around certain locations in Asia and other emerging markets," Nokia said.



Nokia repeated it expected the overall 2010 phone market to grow 10 percent while its market share would be unchanged at 34 percent.
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The comments boosted Nokia shares, which trimmed an earlier high of 10.91 euros to settle at 10.80, up 2 percent, by 1539 GMT.



"This is a good thing for Nokia because it is really showing that they want to measure the real market and grey market has been a big driver in 2009," said Gartner analyst Carolina Milanesi.



"It is an opportunity for them to go after and try and actually win over users in that segment as well," he said.

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The State Of The Worldwide Mobile Phone Market, 2009

Gartner just released a report highlighting the state of the mobile phone worldwide market for 2009. In terms of units sold, Nokia leads, unsurprisingly, given its history. In the smartphone market share segment, Nokia, through its Symbian operating system, leads again, again unsurprisingly. What is again unsurprising is the fact that Nokia lost market share both in terms of the units shipped, as well as smartphone market share. In terms of units shipped, Nokia lost 2.2%, and 5.5% in terms of its smartphone market share.

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Worldwide Mobile Terminal Sales to End Users in 2009 (Thousands of Units)

2009

2008

Market Company 2009 Sales 2008 Sales

Market

Share (%)

Share (%)

Nokia

440,881.6 36.4

472,314.9 38.6

Samsung

235,772.0 19.5

199,324.3 16.3

LG

122,055.3 10.1

102,789.1 8.4

Motorola

58,475.2

4.8

106,522.4 8.7

Sony Ericsson 54,873.4

4.5

93,106.1

7.6

Others

299,179.2 24.7

248,196.1 20.3

Total

1,211,236.6 100.0

1,222,252.9 100.0

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Worldwide Smartphone Sales to End Users by Operating System in 2009 (Thousands of Units)

2009

2008

Market Company 2009 Units 2008 Units

Market

Share (%) 46.9

Share (%) 52.4

Symbian

80,878.6

72,933.5

Research In Motion

34,346.6

19.9

23,149.0

16.6

iPhone OS

24,889.8

14.4

11,417.5

8.2

Microsoft Windows Mobile 15,027.6

8.7

16,498.1

11.8

Linux

8,126.5

4.7

10,622.4

7.6

Android

6,798.4

3.9

640.5

0.5

WebOS

1,193.2

0.7

NA

NA

Other Oss

1,112.4

0.6

4,026.9

2.9

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Total

172,373.1 100.0

139,287.9 100.0

Nokia Still Top Dog In Smartphone Market, But Is Bleeding Share

Gartner, a global market research firm, reported the smartphone market segment results recently for the whole of 2008. As expected, Nokia shipped the most units, with around 61 million units (that‟s not a lot is it, judging by the fact that a high percentage of the world‟s population now own cellphones, but this is the smartphone market we‟re talking about, so the market is much smaller). This translates to around 44% market share, more than twice the share of its closest competitor, Research in Motion – “RIM” (makers of the Blackberry) with around 17%. However, Nokia‟s market share has been declining of late, as in 2007, its market share was around 49% and has been in steady decline recently. Bad news for Nokia indeed, but not especially surprising, given that its competitors have introduced a slew of new products and new competitors have been slowly building their own momentum.

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In particular, Apple and RIM recorded impressive year-on-year growth, which mainly came at Nokia‟s expense. Gartner reports that Nokia higher end N-series smartphones are facing increasingly stiff competition from RIM‟s Blackberries as well as Apple‟s iPhone. When Palm‟s Pre is finally unleashed, I think it‟s safe to say that Nokia‟s market share is going to decline even further. It‟s probably in Nokia‟s best interests to get the latest N series phones out the door as quickly as possible. Perhaps its flagship E series phones need to be refreshed as well. The other
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challenge comes in the form of the very gloomy outlook for the global economy – so it looks like Nokia is facing a double whammy of increasingly serious competition and a tough operating environment (although, to be fair, its competitors are facing this as well). The surprising item in the market share list was the inclusion of Samsung – from a share of 1.8% the previous year, it jumped to 4.2% last year, due to the success of its Omnia handset. If that‟s what they can do with only one handset, imagine what can happen if Samsung put their minds to it and releases more smart handsets. More headache for Nokia, especially seeing that Samsung is going to position its OmniaHD product directly against the Nokia N97. If Samsung manages to make this happen quickly, and a reasonable price point, I foresee Nokia‟s mindshare in the eyes of consumers quickly evaporate. Come on Sammy – get it out the door quickly, and show us what the OmniaHD can do, and if it can do it better than Nokia‟s own N97!

Fredrik Idestam,

Statesman Leo Mechelin,

founder of Nokia. co-founder of Nokia.

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The Nokia House, Nokia's head office located by the Gulf of Finland in Keilaniemi, Espoo, was constructed between 1995 and 1997. It is the workplace of more than 1,000 Nokia employees.[23]

Networking equipment

In the 1970s, Nokia became more involved in the telecommunications industry by developing the Nokia DX 200, a digital switch for telephone exchanges. In 1982, a DX 200 switch became the world's first microprocessor controlled telephone exchange and the first fully digital exchange to be taken into service in Europe. The DX 200 became the workhorse of the network equipment division. Its modular and flexible architecture enabled it to be developed into various switching products. In 1984, development of a version of the exchange for the Nordic Mobile Telephony network was started.

For a while in the 1970s, Nokia's network equipment production was separated into Telefenno, a company jointly owned by the parent corporation and by a company owned by the Finnish state.
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In 1987, the state sold its shares to Nokia and in 1992 the name was changed to Nokia Telecommunications.

In the 1970s and 1980s, Nokia developed the Sanomalaitejärjestelmä ("Message device system"), a digital, portable and encrypted text-based communications device for the Finnish Defence Forces. The current main unit used by the Defence Forces is the Sanomalaite M/90 (SANLA M/90).

First mobile phones

The Mobira Cityman 150, Nokia's NMT-900 mobile phone from 1989 (left), compared to the Nokia 1100 from 2003. The Mobira Cityman line was launched in 1987.

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The technologies that preceded modern cellular mobile telephony systems were the various "0G" pre-cellular mobile radio telephony standards. Nokia had been producing commercial and some military mobile radio communications technology since the 1960s, although this part of the company was sold some time before the later company rationalization. Since 1964, Nokia had developed VHF radio simultaneously with Salora Oy. In 1966, Nokia and Salora started developing the ARP standard (which stands for Autoradiopuhelin, or car radio phone in English), a car-based mobile radio telephony system and the first commercially operated public mobile phone network in Finland. It went online in 1971 and offered 100% coverage in 1978.

In 1979, the merger of Nokia and Salora resulted in the establishment of Mobira Oy. Mobira began developing mobile phones for the NMT (Nordic Mobile Telephony) network standard, the first-generation, first fully-automatic cellular phone system that went online in 1981. In 1982, Mobira introduced its first car phone, the Mobira Senator for NMT-450 networks.

Nokia bought Salora Oy in 1984 and now owning 100% of the company, changed the company's telecommunications branch name to Nokia-Mobira Oy. The Mobira Talkman, launched in 1984, was one of the world's first transportable phones. In 1987, Nokia introduced one of the world's first handheld phones, the Mobira Cityman 900 for NMT-900 networks (which, compared to NMT-450, offered a better signal, yet a shorter roam). While the Mobira Senator of 1982 had weighed 9.8 kg (22 lb) and the Talkman just under 5 kg (11 lb), the Mobira Cityman weighed
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only 800 g (28 oz) with the battery and had a price tag of 24,000 Finnish marks (approximately €4,560). Despite the high price, the first phones were almost snatched from the sales assistants‟ hands. Initially, the mobile phone was a "yuppie" product and a status symbol.

Nokia's mobile phones got a big publicity boost in 1987, when Soviet leader Mikhail Gorbachev was pictured using a Mobira Cityman to make a call from Helsinki to his communications minister in Moscow. This led to the phone's nickname of the "Gorba".

In 1988, Jorma Nieminen, resigning from the post of CEO of the mobile phone unit, along with two other employees from the unit, started a notable mobile phone company of their own, Benefon Oy (since renamed to GeoSentric). One year later, Nokia-Mobira Oy became Nokia Mobile Phones.

Involvement in GSM

Nokia was one of the key developers of GSM (Global System for Mobile Communications), the second-generation mobile technology which could carry data as well as voice traffic. NMT (Nordic Mobile Telephony), the world's first mobile telephony standard that enabled international roaming, provided valuable experience for Nokia for its close participation in
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developing GSM, which was adopted in 1987 as the new European standard for digital mobile technology.

Nokia delivered its first GSM network to the Finnish operator Radiolinja in 1989. The world's first commercial GSM call was made on July 1, 1991 in Helsinki, Finland over a Nokia-supplied network, by then Prime Minister of Finland Harried Holkeri, using a prototype Nokia GSM phone. In 1992, the first GSM phone, the Nokia 1011, was launched The model number refers to its launch date, 10 November. The Nokia 1011 did not yet employ Nokia's characteristic ringtone, the Nokia tune. It was introduced as a ringtone in 1994 with the Nokia 2100 series.

GSM's high-quality voice calls, easy international roaming and support for new services like text messaging (SMS) laid the foundations for a worldwide boom in mobile phone use. GSM came to dominate the world of mobile telephony in the 1990s, in mid-2008 accounting for about three billion mobile telephone subscribers in the world, with more than 700 mobile operators across 218 countries and territories. New connections are added at the rate of 15 per second, or 1.3 million per day.

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Milestones and releases

Reduction in size of Nokia mobile phones.

Evolution of the Nokia Communicator. Models 9000, 9110, 9210 and 9500 shown.

Nokia opened its Komárom, Hungary mobile phone factory on May 5, 2000.

In March 2007, Nokia signed a memorandum with Cluj County Council, Romania to open a new plant near the city in Jucu commune. Moving the production from the Bochum, Germany factory to a low wage country created an uproar in Germany.
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In May 2007, Nokia announced that its Nokia 1100 handset, launched in 2003, with over 200 million units shipped, was the best-selling mobile phone of all time and the world's top-selling consumer electronics product.

In November 2007, Nokia announced and released the Nokia N82, its first (and currently, only) Nseries phone with Xenon flash.

At the Nokia World conference in December 2007, Nokia announced their "Comes With Music" program: Nokia device buyers are to receive a year of complimentary access to music downloads. The service became commercially available in the second half of 2008.

In April 2008, Nokia began finding new ways to connect people, asking the "audience" to use their creativity and their mobile devices to become Nokia‟s production company – to take part in filming, acting, editing and producing a collaborative film. Nokia Productions was the first ever mobile filmmaking project directed by Spike Lee. This was a collaborative experience that existed across borders and perspectives, working off a common script. The film premiered in October 2008.

In 2008, Nokia released the Nokia E71 which was marketed to directly compete with the other BlackBerry devices offering a full keyboard and cheaper prices.

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Nokia announced in August 2009 that they will be selling a high-end Windows-based mini laptop called the Nokia Booklet 3G.

On September 2, 2009, Nokia launched two new music and social networking phones, the X6 and X3. The Nokia X6 features 32GB of on-board memory with a 3.2" finger touch interface and comes with a music playback time of 35 hours. The Nokia X3 is a first series 40 Ovi Storeenabled device. The X3 is a music device that comes with stereo speakers, built-in FM radio, and a 3.2 megapixel camera.

On September 10, 2009, Nokia unveiled a new handset 7705 Twist, a phone with a sports square shape that swivels open to reveal a full QWERTY keypad.[77] The new mobile, which will be available exclusively through Verizon Wireless, features a 3 megapixel camera, web browsing, voice commands and weighs around 3.44 ounces.

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Devices

The Nokia N900, a Maemo 5 Linux based mobile Internet device and touchscreen smartphone from Nokia's Nseries portfolio.

The Devices division is responsible for developing and managing Nokia's mobile device portfolio, including the sourcing of components, headed by Kai Öistämö. The division consists of the previous mainline Mobile Phones division with the separate subdivisions Multimedia (Nseries devices) and Enterprise Solutions (Eseries devices) as well as formerly centralized core devices R&D – called Technology Platforms.

This division provides the general public with mobile voice and data products across a wide range of mobile devices, including high-volume, consumer oriented mobile phones and devices, and more expensive multimedia and enterprise-class devices. The devices are based on GSM/EDGE, 3G/W-CDMA and CDMA cellular technologies. Nokia's Nseries Multimedia Computers extensively uses Symbian OS.
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In the first quarter of 2006 Nokia sold over 15 million MP3 capable mobile phones, which means that Nokia is not only the world's leading supplier of mobile phones and digital cameras (as most of Nokia's mobile telephones feature digital cameras, it is also believed that Nokia has recently overtaken Kodak in camera production making it the largest in the world), Nokia is now also the leading supplier of digital audio players (MP3 players), outpacing sales of devices such as the iPod from Apple. At the end of the year 2007, Nokia managed to sell almost 440 million mobile phones which accounted for 40% of all global mobile phones sales.

Services

The Services division operates in five areas of consumer Internet services: music, maps, media, messaging and games. The division consists of the previous enterprise and consumer driver services businesses previously hosted in Multimedia and Enterprise Solutions divisions, as well as a number of new acquisitions (Loudeye, Gate5, Enpocket, Intellisync, Avvenu and OZ Communications), headed by Niklas Savander.

The group works with companies outside the telecommunications industry to make advances in the technology and bring new applications and possibilities in areas such as online services, optics, music synchronization and streaming media.

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Solutions

Solutions is responsible for Nokia's offering of solutions, where the mobile device, personalized services and content are integrated into a package for the consumer. The unit is led by Alberto Torres.

Markets

The Markets division, the successor organization to Nokia's Customer and Market Operations division, is responsible for the management of the supply chains, sales channels, brand and marketing functions of the company, headed by Anssi Vanjoki.

.

40

FEATURES

Mobi and the Mobile Web

Nokia was the first proponent of a Top Level Domain (TLD) specifically for the Mobile Web and, as a result, was instrumental in the launch of the .mobi domain name extension in September 2006 as an official backer. Since then, Nokia has launched the largest mobile portal, Nokia.mobi, which receives over 100 million visits a month. It followed that with the launch of a mobile Ad Service to cater to the growing demand for mobile advertisement.

Ovi

Nokia Ovi logo.

Ovi, announced on August 29, 2007, is the name for Nokia's "umbrella concept" Internet services. Centered on Ovi.com, it is marketed as a "personal dashboard" where users can share photos with friends, download music, maps and games directly to their phones and access third41

party services like Yahoo's Flickr photo site. It has some significance in that Nokia is moving deeper into the world of Internet services, where head-on competition with Microsoft, Google and Apple is inevitable. The services offered through Ovi include the Ovi Store (Nokia's application store), the Nokia Music Store, Nokia Maps, Ovi Mail, the N-Gage mobile gaming platform available for several S60 smartphones, Ovi Share, Ovi Files, and Contacts and Calendar. The Ovi Store, the Ovi application store was launched in May 2009. Prior to opening the Ovi Store, Nokia integrated its software Download! store, the stripped-down MOSH repository and the widget service WidSets into it.

My Nokia

Nokia offers a free personalised service to its subscribers called My Nokia (located at my.nokia.com). Registered My Nokia users can avail free services as follows:

 

Tips & tricks alerts through web, e-mail and also mobile text message. My Nokia Backup: A free online backup service for mobile contacts, calendar logs and also various other files. This service needs GPRS connection.



Numerous ringtones, wallpapers, screensavers, games and other things can be downloaded free of cost.

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Comes With Music

On December 4, 2007, Nokia unveiled their plans for the "Nokia Comes With Music" initiative, a program that would partner with Universal Music Group International, Sony BMG, Warner Music Group, and EMI as well as hundreds of Independent labels and music aggregators to bundle 12, 18, or 24 months worth of unlimited free music downloads with the purchase of a Nokia Comes With Music edition phone. Following the termination of the year of free downloads, tracks can be kept without having to renew the subscription. Downloads are both PC and mobile-based.

Nokia Messaging

On August 13, 2008, Nokia launched a beta release of "Nokia Email service", a new push e-mail service, since graduated as part of Nokia Messaging.[135]

Nokia Messaging operates as a centralised, hosted service that acts as a proxy between the Nokia Messaging client and the user's e-mail server. It does not allow for a direct connection between the phone and the e-mail server, and is therefore required to send e-mail credentials to Nokia's servers. IMAP is used as the protocol to transfer emails between the client and the server.

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 Distribution Channel Flows :

1. PHYSICAL FLOW

Suppliers

Transporters

Manufacture

Warehouse re

Distribu ters

Dealers

Customer

2. TITLE FLOW

Suppliers

Manufacture

Distribu ters

dealers

Customers

Channel Levels :

The producer and the final customer are of part of every channel. We will use the number of inte4rmediary levels to designate the length of a channel. The above figure illustrates several consumer goods marketing channels of different lengths. Collectibles through mail order. Shearson-Lehman brokers use the telephone to prospect for new customers some exercise equipment manufacturers sell through TV commercial or hour-long “information‟s”. Amazon sells books on line, and Gateway sells computers through its own stores.

3. One Level Channel : It contains one selling intermediary, such as a retailer.
44

4. Two- Level Channel : It contains two selling intermediaries. In consumer markets, these are typically a wholesaler and a retailer.

5. Three-Level Channel : It contains three intermediaries.

About end users and exercising control becomes more difficult as the number of channel levels increases.

End users and exercising control becomes more difficult as the number of channel levels.

45

Research Methodology

Research methods may be understood as all those methods or techniques that are used for the conduction of research. Research methods and techniques, thus refer to the methods are researcher use in performing research operations.

In other words, all those methods, which are used by the researcher during the course of studying his research problem, are termed as research methods. Since the object of research, particularly the applied research is to arrive at the solution for a given problem, the available data and the unknown aspects of problem have to related to each other make a solution possible.

Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the search methods or techniques but also the methodology.

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Research Process

Research process consists of a number of closely related activities. The various steps in a research process are as follows:

1. FORMULATING THE RESEARCH PROBLEM ;- The first step in research is formulating a research, as poorly defined 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.

2. EXTENSIVE LITERATURE SURVEY ;- Once the problem is formulated, the next step is to write down a brief summary. For this the researcher should undertake extensive literature survey connected with the problem. For this purpose, the abstracting and indexing journals and published and unpublished bibliographies are the first place to go to.

3. DEVELOPMENT OF WORKING HYPOTHESIS :- Working hypothesis is attentive assumption made in order to draw out and test its logical or empirical consequences. As such the manner in which research hypothesis are developed is particularly important since they provide the focal point for research.
47

Working hypothesis can be developed by using the following approach.



Discussion with colleagues and experts about the problem, its origin and the objectives in seeking a solution.



Examination of data and records.



Review of similar studies in the area or of the studies on similar problems; and



Exploratory personal investigation, which involves original field interviews on a limited scale with interested parties and individuals with a view to secure insight into the practical aspects of the problems.

4. PREPARING THE RESSEARCH DESIGN :- Research design is the conceptual structure with in which research should be conducted. A research design specifies the method and procedures for conducting a particular study. It is of three types :-



EXPLORATORY RESEARCH: - An exploratory research focuses on the discovery of ideas and is generally based on secondary data. It is preliminary investigation, which does not have a rigid designs.

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DESCRIPTIVE RESEARCH :- A descriptive study us undertaken when the researcher wants to know the characteristics of certain groups such as age sex, educational level, income occupation, etc.



CASUAL RESEARCH :- A casual research is undertaken when the researcher is interested in knowing the cause and effect relation between two or more variables. Such studies are based on reasoning along well-tested lines.

Consideration should be made during the preparation of research design

  

The means of obtaining the information. The availability and skills of the researcher and staff (if any) Explanation of the way in which selected means of obtaining information will be organized and the reasoning leading to the selection.

 

The time available for research. The cost factors relating to research, i.e., the finance available for the purpose.

5 Determining Sample Design: All the items under consideration in any field of inquiry constitute a „universe‟ or population‟. Some important sample designs which should be consider for the research are:
49



Deliberate Sampling: Also known as purposive or non-probability sampling this sampling method involves purposive or deliberate selection of the particular unit of the universe for constituting a sample which represents the universe.



Convenience sampling: When Population elements are selected for inclusion in the sampling based on the case of access, it can be called as convenience sampling.



JUDGEMENT SAMPLING ;

The researcher‟s judgment is used for selecting

items, which he considers as representative of the population.  SIMPLE RANDOM SAMPLING ; Also called as “Chance Sampling” or „Probability Sampling‟ wherfre each and every item in the population has an equal chance of inclusion in the sample and each one of the possible samples.  SYSTEMATIC SAMPLING; Where an element of randomness id introduce by using random numbers to pick up the unit with which to start, this process of sampling known as systematic sampling  STRATIFIED SAMPLING; In this method, the population is stratified into a number of non-overlapping subpopulation or strata and samples items is based on simple random sampling the entire procedure, first stratification and the simply random sampling, is known as strategies random sampling.

50



QUOTA SAMPLING: In stratified sampling the cost of taking random samples from individual strata is often so expensive that interviewers are simply given quota to be filled from different strata, the actual selection of items for sample being left to the interviewer‟s judgment. This is called quota sampling.



CLUSTER SAMPLE : Cluster sampling involves grouping the population and then selecting groups or the clusters rather than individual element for inclusion in the sample.



AREA SAMPLING: When the total geographical area of interest is big one, then area sampling method is taken. We first divide the total area into a number of smaller nonoverlapping areas, then a number of these smaller areas are randomly selected and all units in these small areas are included in the sample.



MULTI-STAGE SAMPLING : This technique is meant fir big inquires extending to a considerably large geographical area like an entire country. The first stage is to select large primary sampling units such as states, then districts, then towns and finally certain families within towns.



SEQUENTIAL SAMPLING : In this the ultimate size of the sample is not fixed in advance but is determined according to mathematical decisions on the basis of information yielded as survey progresses. This design is usually adopted under

acceptance sampling plan in the context of statistic quality control.
51

6. COLLECTION OF DATA ; The next step is to determine the source of data to be used. The researcher has to decide whether he 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.

7. EXECUTION OF THE PROJECT: The researches should see that the project is executed in a systemmatic manner and in time. A careful watch should be kept for unanticipated factors in order to keep the survey as such realistic as possible. This means that steps should be taken to ensure that the survey is under statistical control so that the collected information is in accordance with the pre-defined standard of accuracy.

8. ANALYSIS OF DATA: The analysis of data requires a number of closely related operations such as establishment of categories, the application of these categories to raw date through coding, tabulating and then drawing statistic inferences.

9. HYPOTHESIS TESTING : In this , the researcher has to test the hypothesis, various tests, such as Chi-Square test, t-test, f-test, have been developed by statisticians for the purpose.

10. GENERALIZATION AND INTERPRETATION: When hypothesis is tested and upheld several times, it may be possible for the researcher to arrive at generalization, i.e.
52

to build a theory. If the researcher had no hypothesis to start with, he might seek to explain his finding on the basis of some theory.

11. PREPARATION OF THE REPORT : For the preparation of the report following principles should be adopted by the researcher.



There should be objectivity, coherence and clarity in the presentation of ideas.



Report should be written in a concise and in simple language



Charts and illustrations in the report should be used.

53

Methods Of Data Collection

The task of data collection begins after a research problem has been defined and research design/planed out. The primary data are those , which are collected a fresh and for the first time, and thus happen to be original in character. The secondary data. on the other hand, are those which have already been collected by someone else and which have already been through the statistical process.

Collection Of Primary Data

We collect primary data during the course of doing experiments in an experimental research but in case we do research of the descriptive type and perform surveys, whether sample surveys or census survey, then we can obtain primary data either through observation of through direct communication with respondents in one form or another or through personal interviews. This in another words means that there are several method of collecting a primary data particularly in surveys and descriptive researches important ones are, collecting primary data, particularly in surveys and descriptive researches. Some important ones are :-.

54

1. Observation Method. 2. Interview Method. 3. Through Questionnaire. 4. Through Schedules.

Observation Methods :

The observation method is the most commonly used method especially in studies relating to behavioral science. In a way we all observe things around us, but this sort of observation is not scientific observation. Observation becomes a scientific tool and the method of data collection for the researcher, when it serves a formulated research purpose , is systematically planned and recorded and is subjected to checks and controls on validity and reliability. Under the

observation method, the information is sought y way of investigator‟s own direct observation without asking from the respondent.

55

The main advantages of this method are :



Subject bias is eliminated, if observation is done accurately.



The information obtained under this method relates to what is currently happening : it is not complicated by either the past behavior or future or attitudes.



This method is independent of respondent‟s willingness to respond.

Such is relatively less demanding of active cooperation on the part of respondents as happens to be the case in the interview or the questionnaire method. However, observation method has various.

56

Limitations :



It is expensive method.



The information provided by this method is limited.



Sometimes unforeseen factors may interfere with the observational task.

If the

observer observes by making himself, more or less, a member of the group experience, the observation is called as the participant observation. Emissary without any attempt on his part to experience through participation what other feels, the observation of this type is often termed as non – participant observation. There are several merits of the participant type of observation.



The research is enabled to record the natural behavior of the group.



The research can even gather information, which could not easily be obtained if he observes in a disinterested fashion.



The researcher can even verify the truth of statements made by informants in the context of a questionnaire or a schedule. But there are also certain demerits of this type of observation viz.

57



The observer may lose the objectivity to the extent he participants emotionally; the problem of observation control is not solved; and may narrow-down the research‟s range of experience.

Interview Methods :

The interview method of collection data involves presentation of oral-verbal stimuli and reply in terms of oral-verbal responses. This method can be used through personal interview and, if possible, through telephone interview.

Personal Interviews : Personal method requires a person known as the interviewer asking questions generally in a face-to-face contact to the other person or persons. This soft interview may be in the form of direct personal investigation or it may be an indirect oral investigation. In the case of direct personal from the source concerned. He has to be on the spot and has to meet people from whom data have to be collected.

The method of collecting information through personal interviews usually carried out in a structured way. As such we call the interview as structured interviews.

58

The chief merits of the interview methods are as follows:

1. More information and that too in greater depth can be obtained. 2. Interviewer by his own skill can overcome the resistance, if any, or the respondent; the interview method can be made to yield an almost perfect sample of the general population. 3. There is grater flexible under this method as the opportunity to restructure questions is always there, especially in case of unstructured interviews. 4. Samples can be controlled more effectively as there arise no difficulty of the dismissing returns: non-response generally remains very lows. 5. The language of the interview can be adapted to ability or education level of the person interviewed and as such misinterpretations concerning questions can be avoided.

59

Weakness Of Interview Method :-

1.

It is a very expensive method, especially when large and widely spread geographical sample is taken.

2.

There remains the possibility of the bios of interviewer as well as that of the respondent, there also remains the headache of supervision and control of interviewers.

3.

This method is relatively more time consuming, especially when the sample is large and re-calls upon the respondent are necessary,. systematic errors. Interviewing at times also introduce

4.

Effective interview presuppose proper report with respondents that would facilitate free and frank response. This is often very difficult requirement.

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Collection Of Data Through Questionnaire :

This method of data collection is quite popular, particularly in case of big enquires. It is being adopted by private individuals, research workers, private and public organizations and even by government. A questionnaire consists of a number of questions printed or typed in a definite order on a form or set of form. The questionnaire is mailed to respondents who are expected to read understand the questions and write down the reply in the space meant for the purpose in the questionnaire itself. The respondents have to answer the questions on their own.

The merits are:



There is low cost even when the universe is large and is widely spread geographically.



It is free from the bias of the interviewer, answers are in respondents.



Respondents have adequate time to give well through out answers.



Large samples can be made use of thus the result can be made more dependable and reliable.

Demerits Are :-



It can be used only when respondents are educate and cooperating.
61

 

The control over questionnaire may be lost once it is sent. It is difficult to known to whether willing respondents are truly representative.

62

QUESTIONNAIRE
“PREFERENCE OF NOKIA HANDSETS OVER OTHER HANDSETS”

1. Do you think Nokia handsets are updated with the latest features? a)YES b) NO 2. Are Nokia mobiles readily available in the markets? a) YES b) NO 3. Do you think Nokia mobiles are user friendly? a) YES b) NO 4. Do Nokia provide good after sales service compared to other mobile phones? a) YES b) NO 5. Nokia is costlier as compared to other mobile handsets that provides same features as Nokia, but still why do you prefer Nokia? a) NOKIA BRAND NAME b) BETTER FEATURES
63

c) USER FRIENDLY d) ALL THE ABOVE 6. Does a Nokia phone come with reasonable price? a) YES b) NO 7. If a mobile company offers same features, quality and price as Nokia, will u still go Nokia? a) YES b) NO 8. Except Nokia your other preferred mobile phone brands? a) SAMSUNG (b) LG (c) MOTOROLLA (d) OTHERS 9. Will you go for other mobile phone brand with less price and more features? a) YES b) NO 10. How do you rate the after sale service of Nokia? a) VERY GOOD (b) GOOD (c)NEITHER GOOD NOR BAD (d) BAD VERY BAD (e)

64

Results:

We asked total 10 questions, which were mainly close ended questions. out of 10 ,8 were answerable in either YES or NO. And the remaining 2 questions had 5 options for each. The results of the question NO are below, Number 1,2,3,4,6,7 and 8 which are answerable in Either YES or

Question No.

Yes %

No %

1

87.5

12.5

2

87.5

12.5

3

100

0

4

62.5

37.5

6

75

25

7

50

50

9

37.5

62.5

65

In question number 5 we asked that Nokia is costlier as compared to other mobile handsets that provides same features as Nokia, but still why do you prefer Nokia?

57% people told that because it is user friendly.

29% people told that it is because of the NOKIA Brand Name.

Where 14% people told that it is because of better features.

Nokia Brand name 29%

User Friendly 57%

Better Features 14%

In question number 8 we asked that Except Nokia what are your other preferred mobile phone brands?

25% people told that they prefer Samsung, 12.5% told LG, 37.5% told Mot25%told Motorola and remaining 25% told they prefer other brands.

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8 4

12 8

Samsung

LG

Motorola

Others

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CONCLUSIONS

On the basis of above analysis with reference of tables and charts, I reached to the conclusion that distribution system is a key external resource for any company or firm including Nokia

Normally distribution channel takes several year to build and it is not easily changed. From all the above tables and charts it is clear that distribution or availability of Nokia is on the top.

I also conclude that the Nokia has to target on that distributors, sub-distributors and retailers who has closed his selling‟s , they have to find out the problems of switching off and switching to other brands. So that the customer and consumer remain brand loyal to their products.

To achieve and to maintain the goodwill of the Nokia and its products, Nokia has to discover some innovative products which will maintain the brand loyalty and goodwill of the Nokia with the help of distributors, sub-distributors, retailers and customers/consumers.

For raising the sells of Nokia, the distribution channel must be kept tight so that each and every channel of distribution ( i.e. Distributors, Sub-Distributors, retailers and customers / consumers ) will be benefited maximum from the Nokia and its products.
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LIMITATIONS


Generally our outlets use to purchase Nokia mobiles daily, so there is a possibility that my visiting day is not alternate day.



Sometimes the delivery Van has delayed the stock delivery etc. but outlets demanding so under this situation are quite difficult to get exact figure of availability.



Since most of the person of the outlets is not aware of English language so questions of questionnaire are asked to them and then filled by me. So there may be a chance of communication gap or biasness.



Most of the outlets are busy to there customers. So there is possibility of some irrelevant answers. Some retailers were not in the mood to give response. So some refuse while did not give answer to some questions.



Some retailers give response half-heartedly of error.



Through at most care has been taken for collecting the data yet it is not as final proof elimination the error of sampling.



Dealers do not cover all area of the own region.

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Fair dealers cover 20 % area of the market and they created problem to the dealers.



Sales man does not cover the each retailers or shopkeepers. They cover only daily purchases retailers.

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Suggestions



Dealer‟s relationship should be improved. They should be given more facility and should be provided with novelties.



Company repetitive should give regular visits to the dealers. Annual or half yearly meeting should be hold by the company of all the dealers where they can put up their problems.



Publicity should be done heavily so as to make people aware of the products and painting, hoarding, television and radio are the best media for advertising.

 

Dealers network should be properly available to the dealers. Dealer‟s liabilities to cover all area through the area sales man each retailers or shopkeeper.

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BIBLIOGRAPHY

  

www.Nokia.com www.wekipedia.com www.google.com BOOKS:

 

Marketing Management -Study Material Principles of Marketing-P.Kotler & Armstrong

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Appendix:

We also came to know how the duty free cheap mobile handsets are affecting the growth of branded mobile sets such as NOKIA, SAMSUNG, and MOTOROLA etc.

These cheap handsets are offering very low priced handsets and thus are attracting many customers who were inclined towards NOKIA and other branded handsets.

We also found that Nokia has to improve its after sales service. Many respondents were not satisfied with Nokia‟s after sales service.

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