Vivek college commerce

MARKET SEGMENTATION OF NOKIA Introduction of Nokia

Nokia is the innovation of long term plans in mobile industry in Pakistan as well as in international mobile industry Pakistan. Introduction of Nokia is the basic need of that time and having the biggest mobile exposure in information technologys world. Nokia is come up with the name of inventions and realities behind the ITs world. Fredrik Idestam established a wood- pulp mill and started manufacturing paper in southern in 1865 in southern Finland near the banks of a river. Those were the days when there was a strong demand for paper in the industry, the companys sales achieved its high-stakes and nokia grew faster. Nokia-Connecting People: this slogan is known all over the world. Nokia employs 50, 000 people in 120 countries. Currently every third mobile phone sold in the world is a Nokia. The Nokia Company is today one of the worlds leading high tech companies. Its rapidly growth in the 1990s coincided with a basal structural change of the Finnish economy and industry. In this restructuring process Nokia played an important role. Despite the fact that Nokia is a leading multinational company, a major part of its business is located in Finland. Nokia plays a significantly role in the economic growth of Finland, which has been one of the fastest in whole Europe. A lot of brands selling and manufacturing cell phones and mobiles are in the market but Nokia cell phones are the leaders in the race. With over a dozen varieties and models lining up every day the customer is left in confusion as to what to buy. With the market gearing up with new companies in the foray Nokia manufactures have accepted the challenge. They are coming up with latest technologies being put to test. The company believes in customer satisfaction and that is the success of their being the leaders in cell phones.

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Vivek college commerce Nokia has a number of models to offer like the Nokia 1000series, Nokia 2000series, Nokia 3000series, Nokia 5000series, Nokia6000series, Nokia 7000series, Nokia8000series,

Nokia9000series, Nokia E series, Nokia N series, and others. These cells come in slides, flips, smart phone and standard models. The brand boasts of varied features like Bluetooth, color screen, 3G, GPRS, GPS, IRDA, Infrared, Java enabled, MMS enabled, MP3 player, Polyphonic ring tones, Radio, Snap on cover, USB, Streaming video, Vibration, etc along with cameras with VGA camera, 1-1.9 mega pixels, 2-3.5 mega pixels, 3.5mega pixels and more. The Nokia cell phones has something in terms of design and its userfriendly features are unremarkable. The Nokia Company also provides a host of accessories which come along with the hand sets like chargers, batteries, ear phones /headset and the manual which describes how to use the piece. There are other accessories like cases and pouches, chargers, data cables, enhancements, faceplates, Hands free headsets. You can also buy other accessories which enhance your set. The other fancy accessories are chains, flashers, holders, LCD screens, Scratch guard, stylus, memory card readers, etc. Nokia mobile phones have a wide price range. Depending on the price are the different features installed. But the basic purpose is served whatever be the price. Nokia phones are a must own gadget these days The company I have chosen to analyse in my project is the Finnish mobile phone giant NOKIA. This Chapter tells us briefly what Nokia actually is, its company structure and overall view on the size and sales of the company &also the Various Marketing Strategies followed by them. Since January 2004, Nokia Group has consisted of four different business groups: Mobile Phones, Multimedia, Enterprise Solutions and Networks. In the year 2004 Nokias net sales for mobile phones were 18507 million euro, which went down 12% from 2003.

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Vivek college commerce The, N o k i a e m p l o y e d 5 5 5 0 5 p e o p l e w o r l d w i d e . I n 2 0 0 4 , N o k i a s pers onnel increased by a total of 4 146 employees. Nokias turnover for the t h i r d q u a r t e r o f 2 0 0 5 w a s 8 4 0 3 m ill i o n e u r o f r o m w h i c h m o b i l e p h o n e s brought in 62%, multimedia 17%, Enterprise solutions 2% and Networks 9%. The year 2004 was demanding for Nokia. In response, the company set five top priorities in the areas of customer relations, product offering, R&D efficiency, demand-supply management and the companys ability to offer end-to-end solutions. Nokia is making good progress in these areas, and is now better positioned to meet future challenges.

Nokia Corporation is a Finnish multinational communications corporation that is headquartered in Keilaniemi, Espoo, a city neighbouring 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: Nokia produces mobile devices for every major market segment

Nokia is a public limited liability company listed on the Helsinki, Frankfurt, and New York stock exchanges. 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.

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Even as overall sales for mobile phones remained flat for the third quarter, smart phone sales continue to show double digit growthas they have ever since the market was redefined by Apple's iPhone. Apple's share of the market continues to climb and is edging close to rival RIM, while market leader Nokia continues its slow decline according to the latest data from market research firm Gartner. "Smart phones continued to represent the fastest-growing segment of the mobile-devices market and we remain confident about the potential for smart phones in the fourth quarter of 2009 and in 2010," said Gartner research director Carolina Milanesi in a statement. "Given the higher margins, smart phones offer the biggest opportunity for manufacturers. It is the fastest-growing market segment and the most resistant to declining [average selling prices]."

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Vivek college commerce The big winners in smart phone market share are Apple and RIM. Both companies had nearly 50 percent year-over-year growth in unit sales, and both companies posted their highest share of the smart phone market. RIM is doing well with 20.8 percent share, while Apple is quickly closing the gap between the two with 17.1 percent. HTC managed a whopping 60.6 percent year-overyear growth in unit shipments, though the Taiwanese company isn't going at anywhere near the pace that Apple is. The iPhone's higher margins and its fast-growing sales volume are the factors that made Apple the most profitable mobile handset maker this past quarter as well.

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About the Company

Nokia- Connecting People Nokia also produces mobile phone infrastructure and other teleco m m u n i c a t i o n s equipment for applications such as traditional voice teleph o n y, I S D N , broadband access, professional mobile radio, voice over IP, wireless LAN and a line of satellite receivers. Nokia provides mobile communication equipment for every major market and protocol, including GSM, CDMA, and WCDMA. Nokia was established in 1865 as a wood-pulp mill by Fredrik Idestam on the banks of Nokia rapids. Finnish Rubber Works established its factories in the beginning of 20th century nearby and began using Nokia as its brand. Shortly after World War I Finnish Rubber Works acquired Nokia wood mills a s w e l l a s F i n n i s h C a b l e W o r k s , a p r o d u c e r o f t e l e p h o n e a n d t e l e g r a p h cables. All three companies were merged as Nokia Corporation in 1967.

The name Nokia originated from the river which flowed through the town of the same name (Nokia).I n t h e 1 9 7 0 s N o k i a b e c a m e m o r e i n v o l v e d i n t h e t e l e c o m m u n i c a t i o n s industry by developing the Nokia DX 200, a digital switch for telephone exchanges. In the 1980s, Nokia offered a series of personal computers called M i k r o Mikko. However, these operations were sold tointernational

Computers, Ltd. (ICL), which was later merged with Fujitsu -SiemensAG.

Nokia also began developing mobile phones for the NMT net work unfortunately, the company ran afoul of serious financial problems in

the1990s and streamlined its manufacturing of mobile phones, mobile phone infrastructure, and other telecommunications areas, divesting itself of other items, such as televisions and personal computers. Market Segmentation Of Nokia
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Vivek college commerce In 2004, Nokia resorted to similar streamlining practices with layoffs and organizational restructuring, although on a significantly smaller scale. This, a

however, diminished Nokia's public image in Finland, and produced

number of court cases along with, at least, one television show critical of Nokia. R e c e n t l y, N o k i a Manufacturer, to develop three high-end mobile phones, which are scheduled to retail by the end of

2005.j o i n e d o t h e r m o b i l e p h o n e m a n u f a c t u r e r s t o e m b r a c e Taiwanese Original Device Manufacturers. Nokia signed a contract with BenQ, a Taiwanese Original Device.

History of Nokia
Nokia's history started in year 1865, when engineer Fredrik Idesta m established a wood-pulp mill in Southern Finland and started manufacturing paper. Due to the European industrialization and the growing consumption o f p a p e r a n d c a r d b o a r d N o k i a s o o n b e c a m e s u c c e s s f u l . I n 1 8 9 5 F r e d r i k Idestam handed over there ins of the company to his son-in-law.

Actually founded in 1965 by Fredrik Idestam in Finland as a p a p e r 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. Nokia created the NMT mobile phone standard in 1981 and launched the first NMT p h o n e , M o b i r a C i t ym a n , i n 1 9 8 7 . T h e c o m p a n y d e l i v e r e d t h e f i r s t G S M network to Radkilinia, a Finnish company in 1991, and in 1992, Nokia 1011- a precursor for all Nokias current GSM phones - was introduced. In the1 9 9 0 s , N o k i a p r o v i d e d G S M s e r v i c e s t o 9 0 o p e r a t o r s across the world.

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Vivek college commerce Another significant move of the company during this period was t h e divestment of its non-core operations like IT. The company focused on two core businesses mobile phones and telecommunications networks. In the 1 9 9 0 s , N o k i a

p r o v i d e d G S M s e r v i c e s t o 9 0 o p e r a t o r s a c r o s s t h e w o r l d . The company focused on two core businesses - mobile phones and telecommunications networks. Nokia's history contains many achievements that were the first of their kind in the w o r l d . M a n y m i l e s t o n e s h a v e b e e n e x p e r i e n c e d i n t h e m o b i l e p h o n e busines s since the 80s. The success with the NMT and GSM

technologiesa n d t h e p r o d u c t s t h e y s p a w n e d s e c u r e d N o k i a ' s p o s i t i o n a s t h e world'sl e a d i n g t e l e c o m m u n i c a t i o n s c o m p a n y . T h e l i s t o f N o k i a ' s m i l e s t o n e s provided a good insight in the history of wireless communications. Nokia has been involved in making the world's first NMT network and the world's first pocket-sized mobile phone. The world's first device to use the Symbian OS was also produced by Nokia. Nokia was able to offer advanced

productsf r o m t h e b e g i n n i n g o f t h e 9 0 s . E a r l y i n v e s t m e n t s i n R & D w e r e t h u s handsomely rewarded. Nokia ensured its continued growth by reforming its production in them i d dle of the 90s. The new phone models and standardized technicals olutions made it possible to produce an increasingly extensive productr a n ge more effectively. The extensive range of mobile phone models,c overing all user groups, is one of the reasons why Nokia became the market leader.

COMPANY PROFILE

Nokia's history started in year 1865, when engineer Fredrik Idesta m established a wood-pulp mill in Southern Finland and started manufacturing paper. Due to the European industrialization and the growing consumption of paper and cardboard Nokia

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Vivek college commerce soon became successful. In 1895 Fredrik Idestam handed over the reins of the company to his son-in-law.

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. Nokia created the NMT mobile phone standard in 1981 and launched the first N M T p h o n e , M o b i r a C i t ym a n , i n 1 9 8 7 .

T h e c o m p a n y d e l i v e r e d t h e f i r s t GSM network to Radkilinia, a Finnish company in 1991, and in 1992, Nokia1011 a precursor for all Nokias current GSM phones - was introduced. In the 1990s, The company focused on two core businesses

m o b i l e p h o n e s a n d t e l e c o m m u n i c a t i o n s n e t w o r k s . Nokia's history contains many achievements that were the first of their kind in the world. Many milestones have been experienced in the mobile phone business since the 80s. The success with the NMT and GSM technologies and the products they spawned secured Nokia's position as the

world'sl e a d i n g t e l e c o m m u n i c a t i o n s c o m p a n y. T h e l i s t o f N o k i a ' s m i l e s t o n e s provided a good insight in the history of wireless communications. Nokia has been involved in making the world's first NMT network and the world's first pocket-sized mobile phone.

Product details
The Nokia Asha 311 is a colour ful, compact touch screen device that comes with all the features you'd expect for a fun and easy mobile experience. It boasts a bright and colour ful, scratch resistant capacitive glass screen with polarization filters ensuring users get the best experience from the unique and visually entertaining user interface. The Nokia Asha 311 also features a 3.2MP camera and pre-installed Nokia Maps, in addition to the 15 level pre-bundled version of Angry Birds. Market Segmentation Of Nokia
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Vivek college commerce The pre-loaded social client makes accessing Face book, Twitter and many other global social networks simple while Nokia Browser makes using mobile internet fast and affordable. It also includes the most popular messaging services. "Whats App has a clear vision of creating a reliable and easy to use cross-platform messaging application that enables people to stay in touch with their family and friends from all around the world," said, Brian Acton, Co-Founder of Whats App Inc. "By partnering with Nokia whose worldwide reach in mobile is well established, Whats App becoming available for the Asha Touch devices will enable us to further realize our core mission". The Nokia Asha 305 is a fun and entertaining Easy Swap dual SIM phone, helping users make the most of their phone while retaining control of their costs. The phone features a bright and colorful 3" WQVGA resistive touch screen along with Bluetooth and Dual Band connectivity. Forty EA games are available for download with every phone as well as a 2MP camera, Nokia Maps and the revolutionary Nokia Browser which helps significantly lower data costs. The Nokia Asha 306 is the sister device to the Nokia Asha 305. Along with all the great

features that come with its sister, such as bright and colorful, 3" WQVGA resistive touch screen and 40 EA games for download - a Nokia exclusive offer, the Nokia Asha 306 also provides WLAN, enabling users to stay connected while on the move. It also supports video streaming through both GPRS and WLAN, meaning this handset truly is a fun way to stay in touch. The estimated retail price for Nokia Asha 305 is EUR 63 and it's expected to start shipping in the second quarter of 2012. The estimated retail price for Nokia Asha 306 is EUR 68. The Nokia Asha 311 has an estimated retail price of EUR 92. Both devices are expected to start shipping in the third quarter of 2012. Above mentioned prices exclude taxes and subsidies. Nokia phones tend to include all the latest technology and a lot of the consumers favorite aspects such as text messaging and games like Snake and Memory. When the phones came out they were big and bulky and quite unattractive but now they are all quite sleek and stylish with phones now getting small enough to fit in the palm of your hand as standard.

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Vivek college commerce Most of the phones produced nowadays have accessories that consumers must buy with them (carry cases, hands free kits and in-car chargers) these generate Nokia a lot of profit, as they are very high priced. Nokia's marketing mix has worked very well until recently as the market they are aiming at has become more and more saturated and after looking at all the mobile phone sales figures, it looks as if the phone companies can aim at this same youth market for about another 2 years until they need to change, but they should change sooner so they can start making a bigger profit and get a head start on the competition who will also have to change the market they are aiming at. Nokia's current promotional strategy is working very well as they are able to "talk to" a large number of consumers in different markets rather then the niche markets the old promotional strategies where restricted to.

Nokia Product Design

Nokia is a great brand because it knows that the essence of the brand needs to be reflected in everything the company does, especially those that impact the consumer. Product design is clearly critical to the success of the brand, but how does Nokia manage to inject personality into product design? The answer is that it gives a great deal of thought to how the user of its phones will experience the brand, and how it can make that experience reflect its brand character.

The large display screen, for example, is the "face" of the phone. Nokia designers describe it as the "eye into the soul of the product". The shape of phones is curvy and easy to hold. The faceplates and their different colors can be changed to fit the personality, lifestyle, and mood of the user. The soft key touch pads also add to the feeling of friendliness, expressing the brand personality.

Product design focuses on the consumer and his needs, and is summed up in the slogan, "human technology." Market Segmentation Of Nokia
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Vivek college commerce Nokia now accounts for over half of the value of the Finland stock market, and has taken huge market share from its competitors. According to one brand valuation study carried out in mid1999, it ranked 11th on the world's most valuable brand list, making it the highest-ranking nonU.S. brand. As has been pointed out, it has unseated Motorola

Introduction to Marketing
"Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services, organi zations, and events to create and maintain relationships that will satisfy individual and organizational objectives.

" The new definition of marketing, as released by the American Marketing Association is:Marketing is an organizational function and a set of processes for creating, communicating managing and delivering value in to ways customers that and for the

customer

relationships

benefit

o r g a n i z a t i o n a n d i t s stakeholders.

"Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others."(Kotler & Armstrong 1987)The Mission of marketing is satisfying customer needs. That takes place in a social context. In developed societies marketing is needed in order to satisfy the needs of society's members. Industry is the tool of society to produce products for the satisfaction of needs. M a r k e t i n g i s o n e o f t h e m o s t important functions in business.

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Vivek college commerce It is the discipline required to understand customers' needs and the b e n e f i t s t h e y seek. Academics do not have one commonly agreed upon definition. Even after a better part of a century the debate continues. In a nutshell it consists of the social and managerial processes by which products (goods or services) and value are exchanged in order to fulfill the needs and wants of individuals o r g r o u p s . A l t h o u g h m a n y people seem to think that "Marketing" and "Advertising" are

synonymous, they are not. Advertising is simply one of the many processes that together constitute Marketing.

What is Marketing?
The term marketing has changed and evolved over a period of time, today marketing is based around providing continual benefits to the customer, these benefits will be provided and a transactional exchange will take place. The Chartered Institute of Marketing define marketing as The management process responsible for identifying , anticipating and satisfying customer requirements profitability

If we look at this definition in more detail Marketing is a management responsibility and should not be solely left to junior members of staff. Marketing requires co-ordination, planning, implementation of campaigns and a competent manager(s) with the appropriate skills to ensure success. M a r k e t i n g o b j e c t i v e s , g o a l s a n d t a r g e t s h a v e t o b e m o n i t o r e d a n d m e t , competitor strategies analysed, anticipated and exceeded.

Through effective u s e o f m a r k e t a n d m a r k e t i n g r e s e a r c h a n o r g a n i s a t i o n s h o u l d b e a b l e t o identify the needs and wants of the customer and try to delivers benefits that w i l l e n h a n c e o r a d d t o t h e c u s t o m e r s l i f e s t y l e , w h i l e a t t h e s a m e t i m e ensuring that the satisfaction of these needs results in a healthy turnover for the organisation.

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Vivek college commerce Philip Kotler defines marketing as satisfying needs and wants through a n exchange process Within this exchange transaction customers will only exchange what they value (money) if they feel that their needs are being fully satisfied, clearly t h e greater the benefit provided the higher transactional value an organisation can charge .P.Tailor of www.learnmarketing.net suggests that

'Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer.

The identification of individuals or organizations with significant

similar characteristics that have

implications for the determination of marketing strategies.

Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. ...to respond with appropriate marketing strategies that satisfy the different preferences of each chosen segment. Market segmentation is one of two general approaches to marketing; the other is mass-marketing. In the mass-marketing approach, businesses look at t h e t o t a l m a r k e t as though all of its parts were the same and market

a c c o r d i n g l y. I n t h e m a r k e t - s e g m e n t a t i o n a p p r o a c h , t h e t o t a l m a r k e t i s viewed as being made up of several smaller segments, each different from t h e other. This approach enables businesses to identify one or more

appealing segments to which they can profitably target their products and marketing efforts.The Market-Segmentation process involves multiple steps. The first is to define the market in terms of the product's end users and their needs. The second is to divide the market into groups on the

basis of their

characteristics and buying behaviors.

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Possible bases for dividing a total market are different for consumer markets than for industrial markets. The most common elements used to separate c o n s u m e r m a r k e t s a r e d e m o g r a p h i c f a c t o r s , c h a r a c t e r i s t i c s , g e o g r a p h i c location, and perceived product benefits.

Demographic Segmentation involves dividing the market on the basis of statistical differences in personal characteristics, such as age, gender, race, income, life stage, occupation, and education level. Clothing manufacturers, for example, segment on the basis of age groups such as teenagers, young adults, and mature adults. Jewelers use gender to divide markets. Cosmetics and hair care companies may use race as a factor; home builders, life stage; professional periodicals, occupation; and so on. Psychographic Segmentation is based on traits, attitudes,

i n t e r e s t s , o r lifestyles of potential customer groups. Companies marketing new products, for instance, seek to identify customer groups that are positively disposed to new ideas. Firms marketing environmentally friendly products environmental concerns. would single out segments with

S o m e f i n a n c i a l i n s t i t u t i o n s attempt to isolate and tap into groups with a strong interest in supporting t h e i r c o l l e g e , f a v o r i t e s p o r t s t e a m , o r p r o f e s s i o n a l o r g a n i z a t i o n t h r o u g h logged credit cards. Similarly, marketers of low -fat or lowcalorie products try to identify and match their products with portions of the market that are health-or weight-conscious.

Geographic Segmentation entails dividing the market on the basis of where people live. Divisions may be in terms of neighborhoods, cities, counties, s t a t e s , r e g i o n s , o r e v e n c o u n t r i e s . C o n s i d e r a t i o n s r e l a t e d t o g e o g r a p h i c grouping may include

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Vivek college commerce the makeup of the areas, that is, urban, suburban, or rural; size of the area; climate; or population.

For example, manufacturers of snow-removal equipment focus on identifying potential user segments in a r e a s of heavy snow accumulation. Because

m a n y r e t a i l c h a i n s a r e dependent on high-volume traffic, they search for, and will only locate in areas with a certain number of people per square mile.

Product Benefit Segmentation is based on the perceived value or advantage consumers receive from a good or service over alternatives. Thus, market sc a n b e p a r t i t i o n e d i n t e r m s o f t h e q u a l i t y, p e r f o r m a n c e , i m a g e , s e r v i c e , s p e c i a l f e a t u r e s , o r other benefits prospective consumers seek.

A w i d e spectrum of businessesfrom camera to Automobile

Marketersrely on

t h i s t yp e o f s e g m e n t a t i o n t o m a t c h u p w i t h c u s t o m e r s . M a n y c o m p a n i e s even market similar products of different grades or different accompanying services to different groups on the basis of product-benefit preference. Factors used to segment industrial markets are grouped along different lines than those used for consumer markets. Some are very different; some are similar. Industrial markets are often divided on the basis of organizational variables, such as type of business, company size, geographic location, or technological base.

In other instances, they are segmented along operation allines such as products made or sold, related processes used, volume used, or e n d - u s e r a p p l i c a t i o n s . I n s t i l l o t h e r instances, differences in purchase p r a c t i c e s p r o v i d e t h e s e g m e n t a t i o n base. These differences include centralized versus decentralized
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Vivek college commerce purchasing; policy regarding number of v e n d o r s ; b u ye r - s e l l e r r e l a t i o n s h i p s ; a n d s i m i l a r i t y o f q u a l i t y, s e r v i c e , o r availability needs.

Although demographic, geographic, and organizational differences enable marketers to narrow their opportunities, they rarely provide enough specific information to make a decision on dividing the market. Psychographic data, o p e r a t i o n a l lines, and, in

p a r t i c u l a r , p e r c e i v e d c o n s u m e r b e n e f i t s a n d preferred business practices are better at pinpointing buyer groupings but they must be considered against the broader background. Thus, the key is to gather information on and consider all segmentation bases before making a decision.

Once potential market segments are identified, the third step in the process is to reduce the pool to those that are , large enough to be worth pursuing, potentially profitable, reachable, and likely to be responsive. The fourth step is to zero in on one or more segments that are the best targets for the company's product(s) or capacity to expand.

After the selection is made, t h e b u s i n e s s c a n t h e n d e s i g n a s e p a r a t e m a r k e t i n g m i x f o r e a c h m a r k e t segment to be targeted. Adopting a market-segmentation approach can benefit a company in several s p e c i f i c areas. First, it can give

c u s t o m e r - d r i v e n d i r e c t i o n t o t h e management of current products. Second, it can result in more efficient use o f m a r k e t i n g r e s o u r c e s . T h i r d , i t c a n h e l p i d e n t i f y n e w o p p o r t u n i t i e s f o r growth and expansion.

At the same time, it can bring a company the broad benefit of a competitive advantage. A company cannot serve all customers in a broad market such as computers or soft drinks. The customers are too numerous and diverse in their buying requirements. A company needs to identify the market segments it can serve e f f e c t i v e l y . H e r e w e w i l l e x a m i n e levels of segmentation, patterns o f segmentation, market segment

procedures, bases for segmenting consumer and business markets, and requirements for effective segmentation. Many c o m p a n i e s a r e e m b r a c i n g t a r g e t m a r k e t i n g . Market Segmentation Of Nokia
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H e r e s e l l e r s d i s t i n g u i s h t h e major market segments, target one or more of these segments, and develop products and marketing programs tailored to each instead of scattering. Market segmentation is the process of identifying key groups or segments within the general market that share specific characteristics and consumer habits. Once the market is broken into segments, companies can develop a d v e r t i s i n g p r o g r a m s f o r e a c h s e g m e n t , f o c u s a d v e r t i s i n g o n o n e o r t w o segments or niches, or develop new products to appeal to one or more of the segments.

There are also certain variables that can affect peoples buying habits, they include: Age Gender Area they live in Religion Lifestyle Fashion and preferences.

Market segmentation refers to the different areas of the population that companies can aim their products towards.

The market segment that Nokia has chosen to aim is the youth market focusing on students aimed 13-19 as market research has shown that some of the youth market are receiving large amounts of pocket money and most have no real commitments to spend it on and that means they have lots of disposable income and will be able to spend a lot money on new mobile phones.

As a big company Nokia are able to do a lot of promoting and advertising that smaller, less successful companies, may not be able to afford, such as television advertising and sponsoring lots of events that will be viewed or heard by large amounts of people in their chosen market segment (events such as music festivals and music awards are a goldmine for companies as they are viewed by millions of people worldwide).

Adverts such as television and print adverts will be put into certain areas so that they can attract their chosen market segment, Nokia tend to put a lot of their print adverts in men's magazines such as FHM and Loaded so they can appeal to all of their readers instead of a smaller percentage of the readers they would attract in magazines such as Lifestyle and Good Housekeeping. I think Nokia's way of promoting is very good as they can appeal to mass markets Market Segmentation Of Nokia
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Vivek college commerce and large amounts of people in their chosen market segmentation with certain advertisement's and with sponsoring large events like the ones I have previously mentioned.

Market Segmentation Of Nokia

This Project deals with Various Market Segmentation done in Mobile Industries. This Project mainly focuses on Various Market Segmentation done by Nokia Co. Ltd. in the Market. Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations.

Marketing is one of the most important functions in business. It is the discipline required to understand customers' needs and the benefits they seek. Academics does not have one commonly agreed upon definition. Even after a better part of a century the debate continues. In a nutshell it consists of the social and managerial processes by which products (goods or services) and value are exchanged in order to fulfill the needs and wants of individuals or groups.

Market segmentation is the process of identifying key groups or segments within the general market that share specific characteristics and consumer habits. Once the market is broken into segments, companies can develop advertising programs for each segment, focus advertising on one or two segments or niches, or develop new products to appeal to one or more of the segments. Companies often favor this method of marketing to the one-size-fits-all mass marketing approach, because it allows them to target specific groups that might not be reached by mass marketing programs. The market can be divided into segments by using four "segmentation

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Vivek college commerce basis": Psychographic, behavioral, geographic, and demographic basis. The basic criteria for segmenting a market is are customer needs.

Market Segmentation For Nokia

The decibel levels in the cellular market are increasing with service providers stepping on the gas. Not to be left behind, handset manufacturer are using precise segmentation to carve up their share. Divide and rule seems to be working! According to a report published in May 2001, the all-India cellular subscriber figures stand at 38,71,514. With aggressive marketing by service providers, this figure is expected to increase at a very rapid rate. If current decibel levels in the market are anything to go by, these expectations are well on the way to being met. However, amidst this entire melee one cannot ignore the efforts of the handset manufacturers. Both service providers and handset manufacturers have been complementing each other well with each fuelling the demand for the other .Industry observers attribute the success of handset manufacturers to shrewd

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Vivek college commerce market segmentation. The big three of the mobile handset market -Nokia, Ericsson and Motorola, have studied the market and segmented it precisely

NOKIA STRATEGIC MARKETING IN INDIA

Nokia redefines fashion phones in India with the latest L'Amour collection Nokia has introduced a collection of three trend-inspired mobile phones, the Nokia 7360, Nokia 7370 and Nokia 7380. Each model in Nokia's the L'Amour Collection offers a beautiful mix of contrasts infusing cultural and ethnic influences with luxurious touches of the unexpected. Hints of vintage and craftsmanship, are fused with natural materials, colours and patterns, all carefully crafted and layered with a passion for detail. In the design and development of the L'Amour Collection, Nokia's Design team has looked to materials such as amber, ceramic, turquoise, silk and enamel for inspiration. Craft techniques such as enamelling and etchingadded a creative spark to the graphics, finishes and colours selected for each model in the collection

TheN o k i a 7 3 8 0 c o m e s w i t h a l e a t h e r c o v e r a n d a m i r r o r e d d i s p l a y . T h e technology includes a 2-megapixel camera and intuitive voice dialing. Key features: Keyless dial 2-megapixel camera, 4x zoom Enhanced Voice Commands MP3 player Nokia 7370:

The Nokia 7370 "swivels" open to reveal its elegantly hidden keypad. Beautiful patterns into the elegant metal trims are contrasted by leather

inspired faceplates. The Nokia 7370 is available in two colour s c h e m e s ,

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Vivek college commerce c o f f e e b r o w n a n d w a r m a m b e r , w i t h e a c h m o d e l o f f e r i n g a distinct set of graphics, screensavers and even dedicated camera keys. Key features: 1.3 megapixel camera, 8x zoom 2-inch QVGA colour screen (320 x 240 pixels) Stereo speakers with 3D sound effects Video ring tones FM Radio

Nokia 7360: Trend-conscious men and women will appreciate the Nokia 7360's mixture of patterns and textures, which are perfectly complemented by elegant accessories, including straps and carrying pouches. The Nokia7360 is also available in two signature L'Amour Collection colour schemes, coffee brown and warm amber.

Nokia has jumped into the growing market of online distribution of tones ,g r a p h i c s a n d g a m e s d o w n l o a d s i n I n d i a a n d i s o f f e r i n g a c h o i c e o f 1 2 0 games which can be downloaded at Rs 50 per game.

However, users will have to shell out an additional Rs 10 -25 for the airtime depending on the size of the game .Nokia claims to be the first handset manufacturer to enter this business in India and the first company to launch games downloads in the Indian market. So far, only online content and utility services companies such as MSN and Yahoo have been offering the c a l e n d a r y e a r ringtones and graphics downloads to mobile phone enthusiasts.

Nokia Market Segmentation

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Vivek college commerce Market Segmentation is a process of dividing a market into meaningful, relatively similar, and identifiable segments or groups. It helps the marketer to distinguish what marketing mix will be more appealing for a particular group of consumers. Segmentation approach helps in more effective strategic planning, because it helps utilize necessary resources and power in order to reach the ultimate sales.

Nokia is one of the few global corporations that has been successfully practicing multi segment targeting. Nokia segment groups are separated by various number of variables. Geographic Segmentation. In terms of geography company is using regional approach to be able to appeal to the local population and gain their respect and trust. Nokia keeps opening its flagship stores all over the Asian and Middle Eastern rural regions to be able to bring their customers all the latest innovations and provide them with quality support services.

Demographic

Segmentation. Nokia has many mobile and smart phone devices to appeal to all

the age categories (from kids to seniors), all income categories, different family cycles (singles and married couple households), people of different religions and occupations. Unlike Apple Nokia has a distinct recognition of women as a major target market. Almost every serie of phones comes in pink or gold color. Nokia Roxo was designed for women and young teenage girls. "Treat her like a lady" - a logo that stated that Nokia wants women to have their own phone and not just use a unisex device.

Psycographic corporate

Segmentation. Nokia products indulge the tastes of people of working class and

CEO's. Different models of mobile devices appeal to customers with various

lifestyles. For example, Nokia N79 was marketed as a sports phone thanks to a wireless heart monitor implemented from Polar. The wireless Polar Bluetooth Wear Link heart rate belt helps monitor a heart rate along with a speed and distance while you are enjoying your jog.

Benefit Segmentation. Most of the Nokia consumers have strong loyalty to the companies products because they are able to find the best quality for their money. Among benefits Nokia

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Vivek college commerce has to offer great power life, various number of applications for different needs and wants, durable and practical design.

Because of the large number of consumers Nokia has to keep its target market excited with new releases. In such multi segment strategy cannibalization occurs very often. To slow this process Nokia is trying launch new products by the region rather then globally.

Various segmentation strategies made Nokia into a global phone manufacturer. Ability to meet the expectations of different buyers is the ultimate goal for the company.

Market Targeting
The target market of NOKIA is very wide. Its products are demanded world wide and are given preference at any other cellular company in the world. They have comparatively low rates than the other companies and have a very good and interactive performance and interesting features, so because of these features, people prefer NOKIA than the other companies.

Especially in Asia, Europe, America and the Middle East, NOKIA has a very big market. It is manufacturing GSM and AMPS technologies cellular sets which are meeting every kind of consumers requirements.

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Vivek college commerce In 2002, Nokia's largest markets were US, UK, China, Germany, Italy, France, UAE, Thailand, Brazil and Poland. Now from the last few years the Nokia has got a vast place in the mobile industry of Pakistan. The target market of Nokia in Pakistan is almost the classes because they have produced their mobiles right from high upper class to lower class of the economy. But if we talk of N97 this is specially for the upper class in the economy. The fashion adapting class of the country specially the young generation of high class has been targeted through this product My revised strategy has a lot of advantages over Nokia's previous strategy, and I have listed them below.

My target market is one that has never been entered before, so Nokia will instantly gain 100% market share, whereas the current target market is saturated and competition for market share is very strong.

The products that are being released do not need to be as technically advanced as the ones in the current market, because my market research showed that the 40+ market do not want phones that are to complicated and hard to use. If product research and development is not needed as much anymore then Nokia can afford to decrease its employment numbers and this would save Nokia a lot of money every year.

When entering a new market with no competition a company can charge whatever prices they want, Nokia's prices can be higher then they currently are and this will increase income and profitability.

The Gap In Market Segmentation

products at the people and just see who buys what, if What is the point of market segmentation? Really, what is the point? As my Uncle Jim used to say, "If you throw enough dirt on the wall some of it is going to stick, ain't it?" So why don't companies just throw a bunch of good anything at all? That might have worked along time ago, but now, the answer in short, is competition. Today, there are to types of companies, those that are profitable and those that are profitable. Market Segmentation Of Nokia
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Vivek college commerce

My point is, companies don't have time to keep "throw in' dirt," they have to find that one piece of dirt that sticks and keep using it. Anderson and Vincze in Strategic Marketing Management, (pg 226) define market segmentation as "the process of dividing a large market into smaller groups or clusters of customers with similar characteristics." Basically, market segmentation is the filter that determines what dirt sticks, and what doesn't. In addition, if I understood one point that has been repeated over and over in class, it's that the key to success in business in the future is the relationship between the buyer and seller. Segmentation permits closer relationships between buyer and seller and the ability to identify new marketing opportunities as Gap Incorporated has done with me.

The first time that I remember being able to go shopping for my own clothes, with my own money, was when I was hired for my second job at the age of 16 (working in my grandparents' florist). Boy was I proud of myself. So, where was a 16 year old to get some cool clothes at a cheap price? Old Navy, "Duhhhhhh!" Then later as I matured in the last couple of years of high school, the Gap was "the bomb!" As college started, I began my first real office job as a stock broker (A.G. Edward's, Inc.). preppy. The guys in the office were more mature, young and

Conclusion

From the above project I have come to this conclusion that Nokia has implemented various segmentation strategies for its products on a large scale & its

becoming no.1 leader in the world of mobile phones. Nokia s e g m e n t s

m a r k e t a c c o r d i n g t o v a r i o u s v a r i a b l e s . T h e m a i n segmentation is done on the basis of price. As per my opinion Nokia had introduced various schemes to attract people & gain more goodwill into market.

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Vivek college commerce I would like to conclude that Nokia had been launching various new products & strategies throughout the year but still it is theno.1 brand leader in mobile phones. Many people around the globe are purchasing Nokia phones, as they are ver y cheap, good & efficient to o p e r a t e . segmentation Nokia have used better & efficient market

strategies to market its products according to various

s e g m e n t s o f customers in the market.

Nokia as such has used all modern & good techniques to tackle problems of customers in market. Customer care &feedback is also given more importance. Better, efficient & advanced t e c h n i q u e s a r e u s e d t o i n c r e a s e t h e s a l e s o f p r o d u c t . A l s o N o k i a i s largest manufacturer of mobile phones in India & also the no.1 leader in it.

Various segmentation strategies are being enrolled into the market to increase the sales of the products. New models & their strategies are being well utilized to enhance the product. Nokia Group the Finland-based manufacturer of mobile phones has been steadily working on its corporate brand name and the management of consumer perceptions over the last few years. Its efforts have paid off, because it is now the number one brand in many markets around the world, effectively dislodging Motorola from that position.

The brand has been built using the principles described above, and has been consistently well managed across all markets. Nokia has succeeded in lending personality to its products, without even giving those names. In other words, it has not created any sub-brands but has concentrated on the corporate brand, giving individual products a generic brand personality.

Only numeric descriptors are used for the products, which do not even appear on the product they. Such is the strength of the corporate brand.Nokia has succeeded where other big brand names have so far failed, chiefly by putting across the human face technology-taking and dominating the emotional high ground. It has done so in the following way.

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Bibliography
Websites visited: www.nokia.com http://www.nokia.com/aboutnokia/company www.google.com http://www.google.co.in/#hl=en&source=hp&q=market+segmentation+of+nokia&meta=&aq= 7&aqi=g10&aql=&oq=market+se&gs_rfai=&fp=fe4cbc854b7cd67d www.scribd.com http://www.scribd.com/search? Market Segmentation Of Nokia
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