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The mobile phone industry in India

Paper Type: Free Essay Subject: Marketing
Wordcount: 4092 words Published: 25th Apr 2017

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This marketing project undertaken by me is about the mobile phone Industry and the market which I have chosen is India.

Initially there is brief information about the India’s mobile phone industry with its brief history. Then report covering some statistical data about industry growth which is fast growing in India. The company’s information and its competence are mentioned clearly. Additionally company’s market share added followed by is the Pest analysis and SWOT analysis. Nokia’s new innovative solar mobile phone is new revolution in rural India. The benefit and details of the products are mentioned and using my marketing knowledge I have done its segmentation and 4C’s and 4P’s. Then a Perceptual Mapping is also undertaken by me to show its positioning. New products targeted segmentation which is rural India will cover its positioning and finally new product’s marketing mix states its strategy.

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21st century brings innovation, more productive, cost effective and maximum customer satisfaction with telecommunication revaluation with it. Globe become shrink and mankind comes together to enjoy the other invention which was not seen ever before. Meanwhile global economy moves toward developing countries where most of the part of mankind live without basic modern facility like electricity which a kind of energy. Everybody knows sun is a fundamental source of all kind of energy but man invented some other type of energy like electricity to protect human life and comfort. Around the debate of save energy and environment, multinational telecommunication company tries to create some option with that human living without basic energy facility can enjoy new invention like mobile connection which assist to share feeling, information, essential data etc. India is a new emerging fast growing economy around the globe and to serve and capture the telecommunication market solar energy supported mobile phones would be a good idea. In this study I would like to explain my views and make some argument to support my new proposed product which is Nokia-1000. In the following section you will see some evidence and facts that how Nokia may be a essential product to support communication requirement of rural India as well as a huge sharing of telecommunication market.

II. Situation analysis-


An industry can be defined as:

“It is part of a chain from raw materials to finished product to service sector, and service sector to research and development.” (Sheffrin, M. 2003)

The mobile industry is an example of industry where each component (Battery, memory-card, chip, body etc.) may be produced by a different company, before it goes to the assembling plant. Means final product might be excellent peace of instrument because each of supplying company may have excellence in their production. A company business (firm or enterprise) is legally recognized organization designed to provide goods, services, or both to customers or tertiary business in exchange for money.

In the era of globalization international company needs to fulfill the demands of consumer oriented economy across the Asia. In which Indian Mobile industry is a part of the telecommunication sector of India. Mobile phones were formally launched in India on August 1995 in Kolkata. After the introducing these phone in the global telecommunication market many companies (including Nokia) have entered into the Indian market. Technological advances and new technology in mobile industry is rapidly growing than other sector and every week we can see new applications and features in mobile handset which entitle those phones as smart phones. According to Telecom regulatory Authority of India, India is the world’s fastest growing Mobile handset market, with 771 Million mobile phone subscribers as on February 2011. Per capita consumption (phones per 100 people) has recently touched up to 60.99 and surprisingly every month approximately 17.1 million mobiles adding into mobile users in India. Indian mobile industry has a traditional channel for marketing where companies imports mobile phone by shipping, then they passes to wholesalers and wholesalers supply to retailer, who sells to grass route customers.

To control the complexity and economic cohesion within various sectors Government of India emerged some regulatory steps like TRAI. According to Ministry of Telecommunication, Govt. of India- “this is important that with the entry of the private sector in the provision of telecommunication services a need was felt by Government to have an independent regulatory Body”. Telecom Regulatory authority of India (TRAI) has established by Govt. of India in 1997 to regulate the telecommunications Business in India.

The Company-

According to Nokia.com Nokia started its India operations in 1995 from Kolkata, and has played a revolutionary role in the growth of cellular technology in India. Nokia always offers a wide & quite varied line of cell phones. For mobile phones used simply for voice communication to mobile phones that provides good cameras, picture taking & sending technology, internet, radio, TV, X-press music and many more features.

Nokia’s Current market share in India is rapidly increasing. According To IDC India (Research-firm) over 100 million cell-phones were sold in India in 2009. Nokia has biggest share of the mobile sales at 60.1 %.

Nokia grows very faster rather than other phone makers. Nokia captured 38% of the total worldwide phone market share in last year. In India the most selling brand in the market is Nokia. Many people are familiar with using Nokia handsets. Company traditionally straightforward operating system has helped establish Nokia reputation as a manufacturer of solid, cheaper & reliable handsets.

Nokia has market share in India with other major players. (Source- cyber media voice & data top 100 surveys June 2010.) According to this figure Nokia has 52.2 % market share, despite a 15% Revenue dip to Rs. 14000 Crore ( Down From Rs. 16567 Crore in 2008-09). Nokia market share Gobbled by Indian brand, and by Samsung. However Nokia launched 22 Devices including 1280 in the last year.


Environmental Analysis- External analysis:

PEST analysis- pest analysis is very useful for know market growth or decline. This analysis will focus the macro-economic factors that might affect Nokia.

Political Analysis- Nokia has recently shifted its production unit to India. Nokia faced 2 week strike from its employee. In the India at the moment mobile industry is highly regulated and ministry of telecom intervention is does take place. In the de-regulated market telephone operators and manufacturers are free to act independently of govt. intervention.

Economical- economy has a key role in profitability of the mobile industry. India’s growing economy & people’s income which is rising is positive factor for Nokia. There is only few affect by recession on Indian economy.

Sociological- In India mobile users are more aware of mobile handset choice & advancement. Indian young generation and youth are focusing maximum feature’s mobile handset. Indian rural residents like farmers are focusing low cost handset.

Technological- Mobile industry is marked by drastic technological changes. Indian markets are more technological advanced then European counterparts, Ex.- 8 years ago 4% mobiles had cameras, whereas in India 90% did. Nokia has updated themselves with advanced technology like camera, internet, GPRS, MMS, WAP, Wlan etc. In India all handset manufacturers have to keep up to date with all newest technological advances, if they want to capture & share the market.

D. Other analysis- SWOT analysis

Nokia SWOT analysis is intended to give a perspective on the strengths, weaknesses, opportunities & threats to business.


142 years global experience, well-known corporate brand.

Focused high quality product which is imp. Factor to satisfy customer needs.

All products being user friendly & it have wide range of products for all class.

Mobile’s resell value is high compared to other cell company, long battery.

Strong financial position, 1.4 billion $ spent in R & D, effective advertisement & marketing communication. Always focus on innovative products.

Catching the pulse of their customers, offering good design & attractive products, it has strong customer relation.


Nokia can’t sustain its growth at its current rate.

Lapse has opened up space for smaller competitors.

Recently Microsoft’s entry in to mobile manufacturing industry

Not all products are user friendly, low voice quality and heavy sets.

Service center in India are few and not good enough. Due to this after sales, service like repairing is not fast. Customers have to wait for repairing their handset.


India has increased the purchasing power of the people, so Nokia has to target customer at right time to gain the most out of the situation.

Nokia had joint-venture with Siemens which is good opportunity for Nokia to expand its business.

According to third quarter of global cell industry, it will grow by 14.6 %.

Indian mobile market is one the fastest growing in the world & Nokia has enormous demand potential in new developing markets ex. India, china.

Nokia providing value at a reasonable life time cost.


Nokia lose its 11.8% market share in India due to Samsung & some local brand including Chinese.

Nokia facing strong price pressure from its competitors.

Indian consumers are becoming more complicated in the choice of handset. They want more fashionable & stylish mobile phone.

So many Chinese & local Indian brand has entered in the Indian mobile industry.

Complacency is the biggest threat.

III. Introduction of the new product Nokia-1000 Handset

III. The new product(Nokia-1000 solar phone):-

Nokia is always looking new innovation for its existing and new customers, therefore Nokia launching the first solar-charged mobile phone in to the Indian market. This environmental friendly branded handset made from recycled materials and it will have solar panel in back-side which will charge mobile phone with using the sun rays. It will be available in the market with affordable price (with RS. 1500). This type of phone is necessary requirement of India, where one fourth population does not have access to the power grid. Company is launching this product for those who living in those areas where supply of electricity are unbalanced. With this new idea customer can stay touch with their friends without electricity. This new concept will definitely motivate to Indian rural population to purchasing the mobile phone because in India only few people knew regarding alternative ways of charging for their phones. When they will know about this different and new greener phone they will definitely attract to purchase it.My new product will be dedicated to rural India.

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Nokia-1000, first solar mobile by Nokia

IV.The new product marketing mix and 4 P’s analysis-

Product (Quality) –

The product is the centre of the marketing mix and the other three P’s are based around it. Customers buy products and services for a range of personal needs and a Nokia must be aware of all of these whilst selling goods. Nokia does precisely the similar and comes up with innovative handset approximately every 6 months. Any new handset that company launches has some new features or price variation, therefore attractive to the consumer. In respect to the solar energy which is highest available in India, Nokia-1000 will be suitable. This would be absolutely new innovations by Nokia’s in terms of the mobile usage. The Medium quality Nokia Solar-1000 comes in a solid design with all necessary mobile phone features such as FM radio, powerful Torch, MP3 ring tones, 500 entries phone book, embedded games and available in the market in the black and brown colors. This solar phone will provide Mobile prayer facility which is a specialized feature for different religion’s people in India to pray their god. This will be attractive feature for Indian multi-religion and multicultural society. For customer safety, the solar phone offers Mobile Tracker capacity, which automatically alerts while the SIM will be change. It will available in Hindi language menu with good packaging with 1 year warranty including after sales service.

Price( Affordability)-

Price is a second most important aspect in the selling of any goods or services, and it is depend on competitor based, penetration or skimming. The 3 major factors affecting the price charged for a goods or service, are; Competition, cost of production and customer demand. Since its starting into Indian market in 1995, it paying attention on developed of handsets based on GSM technology. Company has skimming price strategy. Company built a strong brand image with focused strong distribution network and marketing. Nokia focusing on the low-priced handset segment for rural areas, although, faced hard competition its competitors who also started offering low-cost mobile. At the moment company has approached with the wonderful prices for each and every customer in India.

Nokia-1000 price will influence by its costs and demand and Segmentation. Initially its launching price will be approx. 1500 Rs. which is equivalent to £ 22.It is definitely affordable to its targeted segment which is rural India. Nokia-1000 is a first solar mobile phone to hit the Indian market. It is low cost, medium quality mobile which main focus is poor rural or urban slum area with irregular or no electricity. It will allow users to charge the phone everywhere the sun is shining and in India, that’s most places.

Place (Availability)-

It means outlets, for success of new product it must be easy to access. In India Nokia handsets are very simple to access nowadays, they are sold in Nokia Care, specialized outlets, supermarkets, Nokia Priority dealer, electronic shops etc. With the release of its new solar powered handset, Nokia is trying to help public to handle the problem of keeping the battery of their mobile handsets charged in Rural India. Hence its customer definitely looks it at their nearest shop/dealer. By internet Nokia has helped to its customer to find nearest retail shop where they can buy any Nokia handset. If any customer goes to www.nokia.co.in/find-a-store then specify product and city then it will display all the nearest local shop.

Promotion ( Advertising & communication)-

Promotion includes giving information to the consumer over a range of media platforms, using print advertisement, TV, and radio, in addition to using additional publicity tools such as free gift, discount on special occasion, and money off deals. The ads that Nokia comes up with are very popular in focusing the consumers in a rural market.

The advertisements are made in such a way that it appeals to the psychology of the consumer. Nokia also have various sale promotion schemes like offering discounts on special occasions and giving free gifts along with a purchase of a mobile phone.

V. segmentation analysis of Nokia-

Baines at el states “market segmentation is the process of dividing a market in to groups, known as segments, of customers with similar needs or characteristics who are likely to exhibit similar purchase behavior. It is the identification of portions of the marketplace that are changed from one another. It allows the organization to well satisfy the requirements of its potential consumers.”

Nokia market can be segmented using several bases:

Such as Demographics, Geographic, Psychographic, consumer, Buying-behavior, Psycho-graphics.

Nokia has 52.2 % market share in the GSM handset market in India and the company has started a different way of linking with its consumers. According to. (Source- cyber media voice & data top 100 surveys June 2010.) Nokia has embarked upon a brand new retail strategy that is based on the arrangement of its consumers into 4 main Groups that segment customers in terms of handset usage, their earnings level and standard of living.

The 1st segment is first time users whose basic requirement is to stay in touch with his relatives/friends with voice or text. This Segment would be served basic handsets like 1280,

1616, 1800, 2690. All are low on features and technology. Starting price is 1100 Rs.to 1500 Rs. This is affordable by poor family & farmer also. The main target group is lower income group. This segment covers more than 50% population of India.

Nokia 2nd segment Connect includes more advanced customers who are looking for

Extra features and function. This segment would be served with camera, audio/video player, games, Blue-tooth GPRS. The starting price for this segment is 2000 Rs. to 5000 Rs. This segment called medium income group. This segment covers 25% population of India.

The 3rd and 4th segments Achieve and Explore, includes very advance, updated consumers. Achieve segment covers corporate managers who want to have professional functionalities in

Their handset. Nokia N -series and E-series (Enterprise series) is targeted at this segment with high quality, high price handset. After this Explore segment which is prominent segment focus on high quality video-camera (5 megapixels), high speed downloading, I-pod quality music, mobile TV, Etc. this segment belong from high lifestyle users, elite class people, higher income group, rich people can afford this type of hand set. Prices range from 10000 Rs. to 30000 Rs. This segment also covers 25% cover population of India.

VI. New product target segment

New product target segment would be on demographic (age, gender, income, family size), and geographic like urban area and rural area.

Age factor-

the age group between 15-50 years, who are living in the rural area would be the target for Nokia solar mobile phone.

Income factor-

this is low cost and affordable (Rs. 1500) handset. Special focus would be on lower income group like labor class, farmer and poor family. Consumers from lower class to middle class are targeted based on their income level.

Geographic factors-

Nokia will target for this product towards rural area. Due to electricity problem rural India will be prioritize segmentation by Nokia. According to update of census of India at the moment approximately 65% population is residing in rural India and rest 35% in urban area.

The reason for select demographic and geographic segment is that Rural India does not have high availability of many basic facilities and one of them is power-supply. In some rural area even mobile charging activity started as a business. This solar phone will solve all this type of problem. Secondly rural population is spending their maximum time in their farm house where they can charge their mobile phone by sun light. This handset has capability to deliver around 10 to 20 minutes of talk time with one hour of solar charging. For full charging it will take 4 to 6 hours. Furthermore, the solar energy charging system allows its customers to save their money from electricity bill and energy consumption on old-fashioned electrical charging.

VII. New product targeting and positioning

In my study I primarily targeted to rural area because of its specific charging system. Also it is targeted to lower income group to medium income group in urban area. The product will be given a specific facility so it may be targeted for travellers and tourist who prefer regular journey. It is very important that we create awareness about the product and position it well in our consumer minds. Also with the starting of this solar phone we are directly competing with other companies like Samsung and Vodafone because Samsung and Vodafone have introduced their solar mobile phone in India.

VIII. New product perceptual map

Low Quality

Nokia Samsung

LG Sony

The Positioning of Nokia solar phone will be made using the 4 C’s Model

IX. The 4 C’s model


Nokia with its new product, the solar phone will initially target the rural area; in future company can target it to urban area. For long time playing R & D and Investment can help Nokia to consistency innovate and come up with new products.


Nokia as a brand, is a well-recognized and reliable trademark by many peoples, all the innovative handsets that the Nokia launches goes through a regress testing, so that the end user gets a product which last long. The brand Nokia is supposed by publics as a high quality handset and this handset with give more creditability to the brand as it shows a reliable concern.


Clear Statement to the consumer is essential as to communicate whatever the different offerings to the consumers are. Several different methods of communication can be accepted for the solar mobile for communication with its customer. These can be rural mobile van, special event, campaigns, internet, TV, newspapers, in person, sponsoring events, campaigns.

Competitiveness- Nokia has satisfied that it’s all handsets fully fulfil his consumer’s needs; therefore Nokia does not facing tough competition from its competitor. However there are a number of competitors in the market such as LG, Samsung, Sony, Motorola, HTC etc.

X. Conclusion

In the era of globalization Information technology played a vital role to reduce the cost and geographical barrier in the history of mankind. In respect of this Multinational mobile phone producer company became the medium of transformation of generation particularly in south Asia Nokia become the top mobile producer across the region and it produced a range of convenient, cost effective, community needs oriented mobile phones in the Indian subcontinent. More then 50% of the households in India are not well electrified and where electricity exists, the grid is unpredictable. Nokia-1000 provides a natural way to avoid these difficulties and support people to access 100% free solar energy.

To perform well in the competitive world Nokia has been emerging the new and innovative technology with new expression each quarter. Nokia handset brings the revolution in the cell phone business through its credibility, quality and durability. At the moment Nokia has cell phone for everyone (from poor rural farmer to top industrialist). With the launch of Nokia-1000, the Nokia is aiming a completely new and innovative product. Company is confident regarding success of their new solar handset and this will show once again that Nokia continuously lead the telecommunication production sector. Nokia solar phone’s costs are well suits to the pockets of its consumers. There are several other handset manufacturing brands are available in the market however no one can compete with the Nokia handsets in India. Company’s major focus is customer care of its existing and new customers.

The main aim of this new innovative product is to save electricity, easy access to cheaper communication facility in the rural India, a positive message to environment protection campaign and create a contribution into the energy preservation movement across the globe and finally to give a solution of Indian electricity crisis and suggest people to follow this innovative thought in their other part of life like solar vehicle, solar cooker and other solar equipment.

Definitely all huge impact is the result of a tiny spark of idea. I would suggest this product to Indian mobile sector to expand their ability to communicate the world and express their idea and rapid economic growth through Nokia-1000.


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