INTRODUCTION
Introduction to Project 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 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
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 basis”: Psychographic, behavioral, geographic, and demographic basis. The basic criteria for segmenting a market is are customer needs. To find the needs of the customers in the market it is important to undergo a market research. Geographic Segmentation entails dividing the market on the basis of where people live. Divisions may be in terms of neighbourhoods, cities, counties, states, regions, or even countries.
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. Psychographic Segmentation is based on traits, attitudes, personality, interests, or lifestyles of potential customer groups. Behavioural segmentation divides customers into groups based on the way they respond to, use or know of a product. It can group customers in terms of occasions, benefits, user status, usage rate, loyalty status, readiness and attitude toward product. Company profile
Nokia’s first century:1865-1967 The first Nokia century began with Fredrik Idestam’s paper mill on the banks of the Nokianvirta river. Between 1865 and 1967, the company would become a major industrial force; but it took a merger with a cable company and a rubber firm to set the new Nokia Corporation on the path to electronics… 1865: The birth of Nokia Fredrik Idestam establishes a paper mill at the Tammerkoski Rapids in south-western Finland, where the Nokia story begins. 1898: Finnish Rubber Works founded Eduard Polon founds Finnish Rubber Works, which will later become Nokia’s rubber business. 912: Finnish Cable Works founded Arvid Wickstrom starts Finnish Cable Works, the foundation of Nokia’s cable and electronics businesses. 1937: Verner Weckman, industry heavyweight Former Olympic wrestler Verner Weckman becomes President of Finnish Cable Works. 1960: First electronics department Cable Works establishes its first electronics department, selling and operating computers. 1962: First in-house electrical device The Cable Works electronics department produces its first in-house electrical device – a pulse analyzer for nuclear power plants. 1967.
The merger Nokia Ab, Finnish Rubber Works and Finnish Cable works formally merge to create Nokia Corporation. The move to mobile:1968-1991 The newly formed Nokia Corporation was ideally positioned for a pioneering role in the early evolution of mobile communications. As European telecommunications markets were deregulated and mobile networks became global, Nokia led the way with some iconic products… 1979: Mobira Oy, early phone maker Radio telephone company Mobira Oy begins life as a joint venture between Nokia and leading Finnish television maker Salora. 1981.
The mobile era begins Nordic Mobile Telephone (NMT), the first international mobile phone network, is built. 1982: Nokia makes its first digital telephone switch The Nokia DX200, the company’s first digital telephone switch, goes into operation. 1984: Mobira Talkman launched Nokia launches the Mobira Talkman portable phone. 1987: Mobira Cityman – birth of a classic Nokia launches the Mobira Cityman, the first handheld NMT phone. 1991: GSM – a new mobile standard opens up Nokia equipment is used to make the world’s first GSM call. Mobile revolution:1992-1999 In 1992, Nokia decided to focus on its telecommunications business.
This was probably the most important strategic decision in its history. As adoption of the GSM standard grew, new CEO Jorma Ollila put Nokia at the head of the mobile telephone industry’s global boom – and made it the world leader before the end of the decade 1992: Jorma Ollila becomes President and CEO Jorma Ollila becomes President and CEO of Nokia, focusing the company on telecommunications. 1992: Nokia’s first GSM handset Nokia launches its first GSM handset, the Nokia 1011. 1994: Nokia Tune is launched Nokia launches the 2100, the first phone to feature the Nokia Tune. 1994:
World’s first satellite call The world’s first satellite call is made, using a Nokia GSM handset. 1997: Snake – a classic mobile game The Nokia 6110 is the first phone to feature Nokia’s Snake game. 1998: Nokia leads the world Nokia becomes the world leader in mobile phones. 1999: The Internet goes mobile Nokia launches the world’s first WAP handset, the Nokia 7110. Nokia now:2000-today Nokia’s story continues with 3G, mobile multiplayer gaming, multimedia devices and a look to the future… 2002: First 3G phone Nokia launches its first 3G phone, the Nokia 6650. 2003.
Nokia launches the N-Gage Mobile gaming goes multiplayer with the N-Gage. 2005: The Nokia Nseries is born Nokia introduces the next generation of multimedia devices, the Nokia Nseries. 2005: The billionth Nokia phone is sold Nokia sells its billionth phone – a Nokia 1100 – in Nigeria. Global mobile phone subscriptions pass 2 billion. 2006: A new President and CEO – Nokia today Olli-Pekka Kallasvuo becomes Nokia’s President and CEO; Jorma Ollila becomes Chairman of Nokia’s board. Nokia and Siemens announce plans for Nokia Siemens Networks. 2007 Nokia recognized as 5th most valued brand in the world.
Nokia Siemens Networks commences operations. Nokia launches Ovi, its new internet services brand. 2008 Nokia’s three mobile device business groups and the supporting horizontal groups are replaced by an integrated business segment, Devices & Services. Segmentation of Nokia Connecting people! Nokia, arguably the biggest player in the world, has divided the market into four segments: * Hi-fliers: The biggest segment as far as Nokia is concerned consists of ‘Hi-Fliers’, corporate executives who use a mobile phone to increase productivity at work.
Aged between 25-45, the segment looks for data transmission and other business-related features. In most cases, the company sponsors the handset, hence price is not a major consideration. * Trendsetters: In any technology adoption cycle, the first segment to adopt an emerging technology is dubbed as ‘the early adopters’. For Nokia, these early adopters are ‘Trendsetters’ who are most receptive to advanced models. This was the segment at which WAP-enabled models were aimed. * Social contact: The third segment for Nokia is the upwardly mobile, socially-conscious segment that uses a mobile to stay in touch.
Today’s youth and affluent housewives constitute two major chunks of the segment. * Assured: The fourth and last segment as defined by Nokia comprises of CEOs, high-profile celebrities, industrialists and other high “net worth” individuals. The fact that the segment cannot do without a mobile phone makes it the ‘assured’ segment. Major Segmentation variables in India: Geographic * World region – Asia * Country – India * Cities – Reach out maximum places Demographic * Age – All age group * Gender – Male, Female * Income – All income groups * Occupation – Every sector Religion – Irrespective of religion Psychographic * Social class – All class of people * Lifestyles – Urban, rural, and even far villages Behavioral * Benefits – Quality * Loyalty status – Strong The segmentation of Nokia conducted on the basis of Price range: Range Rs. 1000-2000 * Nokia 5030, Nokia 1800, Nokia 1616, Nokia 1280 * These phones do not have additional features such as camera, blue tooth or infra red. The only feature available in this phone is FM radio. * This range of mobile made for poor and lower middle class people. Range Rs. 2000-3000 * Nokia C1-01, Nokia C1-02, Nokia 2690 Features- mobile internet, e-mails, expandable micro SD memory, camera, Bluetooth, ovi life tools. * This range of mobiles made for middle class people who does not afford to spend money on extra expenses Range Rs. 3000-5000 * Nokia C2-01, Nokia X2, Nokia X2-01, Nokia 2730 classic, Nokia 2700 classic * Common feature- megapixel camera, stereo speakers, stylish look, music player * This range include 3G internet(Nokia C2-01), dual speakers and stylish look(Nokia X2, X2-01), Qwerty keyboard(Nokia X2-01) * Mobiles of this range made to target and attract modern and young people.
And also give them preference according to their choices for internet, style, music, entertainment etc. Range Rs. 5000-10000 * Nokia 5233, Nokia 5230, Nokia C3, Nokia C5-03, Nokia E5 * Features- wide touch screen, wi-fi internet, Touch and type with qwerty keypad(C3-00, E5) * The main users of this segment are upper middle class people who want to spend more amount for some extra features. Range Rs. 10000 and above * Nokia C7, Nokia C6, Nokia E-72, Nokia E7-00, Nokia E52, Nokia N8, etc. * High and expensive features like HD video, steal body The users of this segmentation are educated politician, business man, professional and educated people Nokia’s Segmentation for customer’s other preferences for using mobile: * Nokia for business- Nokia offer wide range of E-series business optimised devices for business users needs across form factors, input methods and price point * Nokia 3G- Nokia offers different 3G supported devices with different range and prices for 3G user customers. Nokia C7-00, C6-01, C6-00, C5, C3, E72, E7,
Conclusion
From the above project we have come to this conclusion that Nokia has implemented various segmentation strategies for its products on a large scale ; becoming no. 1 leader in the world of mobile phones. Nokia segments its market according to various variables. The main segmentation is done on the basis of price and features. As per my opinion Nokia had introduced various schemes to attract people ; gain more goodwill into market. We would like to conclude that Nokia had been launching various new products ; strategies throughout the year but still it is the no. brand leader in mobile phones. Many people around the globe are purchasing Nokia phones, as they are very cheap, good ; efficient to operate. Nokia have used better ; efficient market segmentation strategies to market its products according to various segments of 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 techniques are used to increase the sales of product.
Also Nokia is 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.
Bibliography
Websites visited:
* www. nokia. com * http://www. nokia. com *
* 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
