CRM

STRATEGIES OF
NOKIA
A Brief Report

Towards the partial

fulfillment of PGP
Program at IILM,
Gurgaon

ABDUL WADOOD (PGS

20090063)
4/8/2011

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Contents

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Executive Summary.....................................................................................................3
1. INTRODUCTION.....................................................................................................4
1.1 About Nokia........................................................................................................4
1.2 Understanding its Customers.............................................................................5
1.3 Network Operators.............................................................................................6
1.4 Nokia’s way towards CRM..................................................................................6
1.5 Product Development.........................................................................................6
1.6 Distribution..........................................................................................................6
1.7 Ease of Servicing................................................................................................7
1.8 Ease of Product knowledge................................................................................7
1.9 Stations of Experience........................................................................................7
1.10 Nokia Sales Interface.......................................................................................7
1.11 Computer aided CRM.......................................................................................7
2. METHODOLOGY.....................................................................................................8
2.1 Research Design................................................................................................8
2.2 Data Collection Methods....................................................................................8
2.3 Sampling.............................................................................................................8
2.4 Field Work...........................................................................................................8
2.5 Data Analysis......................................................................................................8
3. Conclusions and Recommendations.....................................................................14
3.1 Conclusions......................................................................................................14
3.2 Recommendations............................................................................................17
3.3 Limitations.........................................................................................................17
3.3 Limitations
Figure 1........................................................................................................................5

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Executive Summary
The primary objective of the study will be to analyse the CRM strategies of Nokia
India and to see how Nokia India has been able to maintain a positive image in the
minds of the consumer by studying the perception of its customers. 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 aims to provide products and services which meet
the needs of trade customers and consumers. It researches the views of both
groups to understand where it is succeeding and how it can do better. Its CRM
strategies are focused around Product development through Customer-Centricity
(in product designing), Distribution- Company owned and third party, Ease of
Servicing, Ease of Product Knowledge. The Customer Data Master or CuDM is
Nokia’s answer to a software based customer information management system.
It not only aids in managing B2B clients but also B2C customers.

This study aims to understand the customer centric practices of Nokia and ensure
maximum customer satisfaction. A market survey was conducted using the
questionnaire method and responses from the chosen sample mobile customers
were collected and analysed. The analysis helped us understand the weaknesses
and strengths of Nokia. The study revealed data about how customers believe Nokia
lags far behind in terms of innovation, despite the fact that Nokia prides itself on
Innovation. This has led customers to shed Nokia to its buy its competitors’
products. Distribution is considered by customers as one of the biggest strengths of
Nokia. Perhaps the most surprising finding of the market study was that the
respondents felt Nokia mobiles were overpriced. The after-sales service of Nokia
was regarded as excellent by the respondents. User-friendly interfaces of mobiles
and brand name were the top most factors for buying a Nokia Mobile. Although the
study has its own limitations, the study has helped make a set of recommendations
for Nokia India to sustain its market leadership position in India.

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 1. INTRODUCTION
1.1 About Nokia

Vision
“A world where everyone is connected”

Nokia India
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, Pune and Ahmedabad. The Indian operations
comprise of the handsets business; R&D facilities in Bangalore 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). Today, India holds the distinction of being the second largest
market for the company globally.

Manufacturing in India
Nokia has set up its mobile device manufacturing facility in Chennai, India to meet
the burgeoning demand for mobile devices in the country. The manufacturing facility
is operational with an investment of USD 210 million and currently employs 8000
people. Nokia has recently announced fresh investments to the tune of US $ 75
million towards its manufacturing plant in Sriperumbudur, Chennai for the year 2008.
The Nokia way

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 Figure 1

Nokia’s Customer Policies

Nokia aims to provide innovative, high-quality products and services which help
people connect. It intends to meet the needs of all users, including people with
physical, sensory or cognitive limitations. Product and service development takes
account of social and environmental issues, including privacy concerns associated
with the convergence of mobile and internet technology. It sells the vast majority of
products through distributors, network operators and Nokia branded stores which
are owned and operated by its retail partners. Some sales are made direct to users
through Nokia Online. Nokia is also creating a chain of flagship stores in India's
premier shopping locations which offer Nokia products and services in a
fashionable, interactive environment and with a highly-trained staff.

1.2 Understanding its Customers

Nokia aims to provide products and services which meet the needs of trade
customers and consumers. It researches the views of both groups to understand
where it is succeeding and how it can do better. Primarily the Nokia customers can
be segregated as under.

Trade customers
Nokia researches trade customers’ views on it through the Listening to Trade
Customers survey. An independent research company carries out the survey each
year. It reaches executive and operational contacts in a sample of customers that
accounts for around 80% of Nokia’s revenue each year. Nokia Account Managers
discuss initial survey results with their teams and customers, and take action
relevant to individual accounts. Customers are informed of the key local actions
relevant to their account and receive a response letter highlighting the overall key
findings and improvements planned by Nokia.

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Individual Consumers
Nokia Care provides support services to consumers through online, email and call
centre services, supported by a network of authorized service centres. The support
includes basic product information, guides and demonstrations, discussion boards,
software updates, advice on specific issues, and warranty repairs. It also helps
consumers to find out where to recycle their old products. It aims at getting a wide
picture of consumer experience by using different consumer feedback channels, and
respond with targeted improvement actions. The main feedback channels include
consumer satisfaction surveys, feedback through independent market research
companies and Nokia Care contacts.

1.3 Network Operators

Nokia primarily deals with its Service Operator Customers through its Nokia-
Siemens Networks arm. Nokia enquires and assesses requests about
performance from its network operator customers. It responds to these requests
through its customer account management interface.

1.4 Nokia’s way towards CRM

Nokia, owing to its vast portfolio of products and services and multiple channels has
corresponding ways of answering to a successful CRM. Its strategies include:
➢ Product development through Customer-Centricity (in product designing).
➢ Distribution- Company owned and third party.
➢ Ease of Servicing.
➢ Ease of Product Knowledge.

1.5 Product Development

A Nokia product is not only a benchmark in its class of products but also ensures
that when a customer goes in for a repeat purchase it again opts for a Nokia. Some
of the key features of a Nokia product (in this case its mobile handsets) include:
➢ Ease of product usage.
➢ Ease of product trial.
➢ Impeccable product quality and build.
➢ Ease of software up-gradation and third party software usage.

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 ➢ Locally developed product range (ex. Nokia 1100 for the Indian Tier 2 and 3
cities).
➢ Multiple language options.
➢ Convergence (internet, PDA and multimedia bundled into a handheld device).
➢ Right product at the right price.

1.6 Distribution
Traditionally, distribution is not considered to be a part of CRM but Nokia believes
that by ensuring a deep penetration in the market it can cater to the customer best
and ensure retention as well. This would not only ensure a better reach but also
ensure an arm’s length in case any customer faces any problems pertaining to the
product. It helps to develop better client relationships. Nokia primarily deals in with
company owned and third party stores.

1.7 Ease of Servicing

The product is as good as it is easy to service, this holds true for Nokia’s products.
In the rare occasion that the products need to be serviced (other than the
consumable parts like the battery) the product can be easily repaired at any of the
local Nokia or third party stores.

1.8 Ease of Product knowledge

Nokia thoroughly believes in the power of knowledge. Thus it provides easy access
to all product relevant information through its website, stores and company sales
executive. Through its user reviews and forums on its website Nokia allows
customers to comment and review the products.

1.9 Stations of Experience

The stations of experience vary with the channel through which the customer comes
in contact with Nokia. The channels are, namely:
➢ Online Store
➢ Nokia Company Stores
➢ Nokia Third Party Stores
➢ Company sales interface (in case of B2B sales)

1.10 Nokia Sales Interface

The Nokia Sales interface primarily deals with institutional clients and is majorly
associated with the Nokia-Siemens Networks. As it is completely a B2B format the

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experiences are more formal and process governed rather than on a one on one
client basis. Some of Nokia’s clients in the Telecom Service Provider domain in
India include BSNL, Airtel, Vodafone, Aircel and Idea.

1.11 Computer aided CRM

The Customer Data Master or CuDM is Nokia’s answer to a software based
customer information management system. It not only aids in managing B2B
clients but also B2C customers.

Customer
Create Customer visit, such as to Web site or facility; account created
Read Contextualized views based on credentials of viewer
Update Address, discounts, phone number, preferences, credit accounts
Destroy Death, bankruptcy, liquidation, do-not-call.
Search CRM system, call-centre system, contact-management system
Table-1

2. METHODOLOGY
2.1 Research Design
For the purpose of this market study, a questionnaire has been prepared. We
identified potential customers who can be approached and our sample size was 153.
The answers to these questionnaires from the respondents are the primary inputs to
this market research. We collected all the data from the field directly. The sample for
the survey was primarily students and working professionals in the age group of 15
to 40.
2.2 Data Collection Methods
Survey research was used to collect data from the respondents. The primary mode
of obtaining the responses was through direct interview and email. For this project
both primary and secondary data were the sources of information. Primary data was
collected from the questionnaire. Secondary sources were collected from the various
journals, websites and research papers.

2.3 Sampling
Sampling Technique: The initial draft of the questionnaire was prepared after
discussions between the team members. A pilot study was done for this
questionnaire and subsequently changes were made to the questionnaire based on
the feedback from the pilot study. Changes were done in the rating scales to make it
easier for respondents to answer. The sampling technique followed was ‘convenient
sampling’.

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Sampling Unit: The respondents who were asked to fill out questionnaire are the
sampling units. The sampling units for this exercise were students and working
professionals.

Sampling Area: The area of the research for sample companies was in and around
Katwaria Sarai, Sarojini Nagar, Lajpat Nagar, Malviya Nagar.

Sample Size: The sample size was around 153. All of them were users of mobile
phones.

2.4 Field Work

The survey was done in public places like restaurants, outside offices and near
colleges.

2.5 Data Analysis

We took a sample size of 153 people out of which 101 people used Nokia phones.
So we used this data for our analysis.
Questionnaire
Q.1 Do you think Nokia handsets are equipped with the latest features?
a)Always b) many times c) sometimes d) Never
Analysis:

Choice Responses
Always 14
Many times 41
Table 1: Responses to: Are Nokia
Some times 43 handsets equipped with latest features?

Never 3

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 Chart 1: Responses to availability of Nokia handsets in the market

Close
to 83% of the total Nokia handset owners said that Nokia is equipped is equipped
with new features, which indicates that Nokia still lacks behind in innovation
compared to its competitors.

Q2. Are Nokia mobiles readily available in the markets?

a) YES b) NO
Responses:

Choice Responses
Yes 98
No 3
Table 2: Responses to availability of Nokia handsets in the market
This question was primarily asked to see whether Nokia has ample availability of its
handsets, which is a direct consequence of the location of the retailers through
which Nokia sells its products. Almost all the respondents felt that Nokia is readily
available in the market showing the efficiency with which it places its products in the
market.

Q3. Do you think Nokia mobiles are user friendly? Rate it on a scale from 1 to 5 (1
being the lowest and 5 being the highest).

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a) 1 b)2 Responses
Choice
c)3 d)4
e)5 1 0

Responses: 2 7

3 15

4 14

5 65

Ta
ble
3:
Us
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frie
ndl
ine
ss
of
No
kia
Mo
bil
e
Ph
on
es

Chart 2: User friendliness of Nokia mobile phones

Close
to 64%
of the total Nokia handset users gave it a ranking of 5(highest) on its user
friendliness. This re-confirms the fact that Nokia handset’s user interface remains
the key differentiating factor which is highly rated by its users.

Q.4 How do you rate Nokia’s after sales service compared to other companies?
(Rate it on a scale from 1 to 5 (1 being the lowest).
a)1 b) 2 c)3 d) 4 e) 5

Responses:

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 Choice Responses
1 3
2 5
3 13
4 21
5 59
Table 4: Rating of Nokia’s after sales service

Chart 3: Rating of Nokia’s after sales service

Just like the responses received for the previous question, close to 60% of the total
Nokia handset users reaffirmed the fact Nokia provides superior after sales service
and continues to cater to after sales problems effectively and efficiently.

Q5. Why did you prefer Nokia over other phones?

a) Nokia brand name
b) Better features
c) User friendly
d) All the above
e) Any other reason
Responses:

Choice Responses
Nokia brand name 31

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 Better features 11
User friendly 34
All the above 22
Any other reason 3
Table 5: Reasons for choosing nokia over other companies

Chart 4: Reasons for choosing nokia over other companies

In this question the Nokia handset users gave the highest rating to the brand name
and the user friendliness (Close to 64%). However a major shortcoming of Nokia
was exposed in this question which was “better features”.

Q6. Are Nokia phone available with a reasonable price?

a) YES b) NO
Responses:
Choice Responses
Yes 35
No 66
Ta
ble
6:
Re
This question sp was asked to check the perception of the Nokia handset users
vis-a-vis its on pricing policy. It was found that close to 2/3rd of its customers
felt that Nokia se phones were not priced reasonably.
s
to
ch
ec
Q7.Except k
Nokia what are your other preferred mobile phone brands?
Sony b) LG wh c) Motorola d) Micromax e)BlackBerry f)Others
eth
Responses: er
the Choice Responses
pri
ce
s
are Page | 14
rea
so
na
ble
or
not
 Sony 27
LG 21
Motorola 9
Micromax 19
Blackberry 17
Others 8
Table 7: Other preferred mobile phone brands

Chart 5: Other preferred mobile phone brands

This question was asked to see what other alternatives the Nokia handset users had
in their mind, it was found that a majority of the users(~48%) preferred Sony or LG
mobile handsets over others available in the market. New entrants like Micromax
made us to present this as an option in our questionnaire and as expected close
19% of the total Nokia handset users said that they would have preferred it as an
alternative. Perhaps with time as these new entrants build their brand equity they
would erode into Nokia’s market share.

Q8. If a mobile company offers same features, quality and price as Nokia, will u still
go with Nokia?
a) Yes
b) No
Responses:

Choice Responses
Yes 45
No 56
Table8: Checking whether current users would shift to another brand

This is another question to which we received mixed received a mixed response, but
we can say that with the entry of new players in this market the number of Nokia

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handset users saying NO to this question would increase, as more number of
alternatives would be available with them.
Of the remaining 52 respondents who owned a mobile handset of some other
company, the following questions were asked from them:

Q9. Did you own a Nokia mobile handset before?

a) Yes b) No
Responses:

Choice Responses
Yes 16
No 36
Table 9: Checking how many were previous Nokia mobile phone users (but not current)

A majority of the total respondents had not owned a Nokia handset before, and in
order to find the reason behind changing/not owning a Nokia handset the next
question was asked.

Q10. What was the primary reason behind changing/not owning a Nokia handset?
a) Availability of other mobile phones with better features
b) Nokia handsets were too costly
c) Brand loyalist to some other brand
d) Bad service Encounter(only for those who had owned a Nokia handset in the
past)
e) Any other reason
Responses:

Choice Response
Availability of other mobile phones with better features 11
Nokia handsets were too costly 18
Brand loyalist to some other brand 13

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 Bad service Encounter
2
(only for those who had owned a Nokia handset in the past)
Any other reason 8
Table 10: Reasons behind shifting to another brand

It was found that a majority of the respondents thought that roughly 1/3rd of the
respondents thought that the Nokia handsets were too costly. While only 2 out of the
16 who had owned a Nokia handset before had experienced a bas service
encounter. Other reasons could be certain offers available with a particular handset
or peer pressure etc.

3. CONCLUSIONS AND RECOMMENDATIONS

3.1 Conclusions
a. Responses from the sample indicate Nokia lacks far behind its competitors in
terms of innovation and new features.
b. Respondents found the Nokia phones are readily available. Hence distribution is
one the strengths of Nokia India
c. Majority of the responses indicate that Nokia has done pretty well in the facet of
user friendliness in its mobiles.
d. More than half of the respondents felt Nokia provides an excellent after sales
service.
e. User-friendly interfaces of mobiles and brand name were the top most factors for
buying a Nokia Mobile.
f. Surprisingly, close to 2/3rd of the respondents felt that Nokia Mobiles were
overpriced.
g. Sony and LG were the preferred alternatives when Nokia mobile is unavailable.
New entrant like Micromax was not far behind.
h. High price and brand loyalty to competitors’ brands were the main reasons of
respondents for not owning Nokia Mobiles.

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3.2 Recommendations
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.
However, Nokia is facing certain challenges that have affected its sales at present.
Nokia has predicted low sales for 2009 and that is due to the global economic
slowdown which has resulted in sharp pull back in global consumer spending. The
sales of Nokia have also been affected quite badly by the recent launch of some
duty-free cheap cell phones. Moreover, there are some areas where its competitors
are giving a run for their money like product designing, modifications etc. Through
our collaborative research, we have found out some areas where Nokia should
emphasise 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 i.e., service centers should be
well-equipped to handle customer concerns and there should be proper co-
ordination between them. It should focus on customization to gain greater customer
satisfaction.
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. End to End capability: Stress should be given on end to end capability by
integrating mobile devices applications and infrastructure.
5. Efficient, manufacturing, logistics and high quality products and services should
be maintained
6. Nokia should focus on bringing out new features and should not fall behind on
fast-paced innovation.
7. Nokia should launch more variety of models targeting the price-sensitive
customers as customers want more value for money.3.3 Limitations
1. During interview I found out that the customers have a blind faith regarding Nokia
India which we could not explain in quantitative terms.

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2. The respondents were biased to some extent with the respective brands
3. The research was limited to only 153 respondents whereas in reality the universe
is too big. Hence statistical data might change if we further increase the sample size.
4. The accuracy of the some data is indeterminate as few respondents were
ignorant and hesitant towards their response.
5. Time and money was another constraint in my project completion.

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