UNIVERSITY OF MUMBAI

PROJECT ON
“MARKET SEGMENTATION OF NOKIA”

SUBMITTED
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE AWARD OF THE DEGREE OF
BACHELOR OF MANAGEMENT

PAL SUJIT SHIVSHANKAR

PROJECT GUIDE
PROF.SUJATA YADAV
BACHELOR OF MANAGEMENT STUDIES
SEMESTER-VI
(2018-19)
A.E KALSEKAR COLLEGE OF COMMERCE AND
MANAGEMENT,
NAWAYAT NAGAR, NALLASOPARA (WEST)-401203
1
 DECLARATION

I, the undersigned, MR. PAL SUJIT SHIVSHANKAR, a student of A.E KALSEKAR

College of Arts & Commerce, NALLASOPARA (West) T.Y.B.M.S. SEMESTER – VI
hereby declare that the work embodied in this project work titled “STUDY OF
MARKET SEGMENTATION OF NOKIA“, forms my own contribution to the
research work carried out under the guidance of Prof. SUJATA YADAV a result of my
own research work and has not been previously submitted to any other University for any
other Degree/Diploma to this or any other University.
Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.
I, hereby further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Name and Signature of the student

Certified by
Name and Signature of the Guiding Teacher

2
SHURPARAKA EDUCATIONAL & MEDICAL TRUST’S

M. B. HARRIS COLLEGE OF ARTS &

A. E.KALSEKAR COLLEGE OF COMMERCE &
MANAGEMENT.
(Affiliated to the University of Mumbai)

CERTIFICATE

We hereby certify that Mr./ Miss ________________________

__________ of S.E.M. Trust’s M.B. Harris College of Arts & A. E. Kalsekar
College of Commerce & Management studying in T.Y.B.M.S. has completed project on
________________ in the academic year 2018-19. The information submitted in the
project is true & original to the best of our knowledge.

_____________ _____________
Project Guide Principal

Internal Examiner: ________

External Examiner: __________ College Seal

3
 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the depth is
so enormous.
I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.
I would like to thank my Principal Dr. M.K AHMAD providing the necessary facilities
required for completion of this project.
I take this opportunity to thank our Chief Coordinator ELAKSHI TAVDE Course
Coordinator Prof. SUJATA YADAV their moral support and guidance.
I would like to thank my College Library, for having provided various reference books
and magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped me
in the completion of the project especially myParents and Peers who supported me
throughout my project.

4
 INDEX
SR.NO PARTICULAR PAGE.NO

INTRODUCTION 6

REVIEW OF LITREATURE 7

PROBLEM OF STUDY 8

OBJECTIVE OF STUDY 9

NOKIA VISION AND MISION 11

HISTORY OF NOKIA 14

COMPANY PROFILE 20

SWOT ANALYSIS 23

INTRODUCTION TO MARKETING 34

MARKET SEGEMENTATION 35

MARKET SEGEMENTATION OF NOKIA 46

ANALYSIS 68

CONCLUSION 72

RECOMMENDATION 73

BIBLIOGRAPHY 74

5
 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 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 basis":
Psychographic, behavioristic, geographic, and demographic basis.T
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.Psychographic and behavioristic

6
bases are used to determine preferences and demand for a product and advertising
content, while geographic and demographic criteria are used to determine product design
and regional focus.

Review of Literature

This literature review will analyze the project on ‘Market Segmentation of Nokia’ and on
past and current research that has been done which relates to the market segmentation.
This critical analysis of literature contains data about marketing and segmentation
strategies collected from various sources.

It is important to understand why people and market needs to be divided into different
segments. A segmented market is seen as an opportunity to effectively focus on particular
customers. This appeals to potential customers and also marketers, as they know that this
is what they will have to do.

This study also shows how Nokia, a mobile giant, segments its market and focuses its
products efficiently towards the customers of a particular segment. This gives a
competitive advantage to the company by serving its customers well.

7
 PROBLEM OF STUDY

WRONG DECISIONS:

While the entire smartphone OS industry was evolving, manufacturers moved on and
adopted various operating systems like Android, Windows, Bada, Meego, et cetera,
Nokia decided to stick to Windows OS only.As Android and iOS became more popular,
Nokia and its windows phones failed to attract any attention.Though the new
technologies developed by Nokia were ground breaking, they were not promising
enough.

The statement of problem under this study is to know the challenges and the
reasons for the ffailure of nokia in the international industrial marketand to know the
satisfaction level of nokia mobiles among the people in coimbatore city with respect
toR.S.Puram area by taking 50 respondents . This study tries to figure out the problems
and issues releated with failure and prefrence level of buyers of nokia mobiles.

8
Objective of the Study

The objectives of the present study are:-

1) To know about Nokia Company.

2) To know about the strengths, weaknesses, opportunities and threats of Nokia.
3) To know about marketing.
4) To know about market segmentation.
5) To know the market segmentation used by Nokia.

Methodology

Research always starts with a question or a problem. Its purpose is to question through
the application of the scientific method. It is a systematic and intensive study directed
towards a more complete knowledge of the subject studied. Marketing research is the
function which links the consumer, customer and public to the marketer through
information- information used to identify and define marketing opportunities and
problems generate, refine, and evaluate marketing actions, monitor marketing actions,
monitor marketing performance and improve understanding of market as a process.

There are two types of data collection method use in my project report.
– Primary data
– Secondary data.

For my project, I decided on primary data collection method by approaching customers

directly and through references to know their views about the company.

Secondary data collection method was used by referring to various websites, for
collecting information regarding project under study.

9
LIMITATIONS OF THE STUDY

• An interpretation of this study is based on the assumption that the respondents

have given correct information.
• The study is based on secondary data, the information provided 2nd hand about
Nokia
• As the study has been limited to 50 respondents, the analyses may not be exact or
accurate.
• The present study suffers from all the limitations of case study method
• Besides the study has the limitation of time, place and resources.

10
Nokia Vision/Mission Statement

Our Vision

• A world where everyone can be connected.

• In 2015, 5 billion people always connected, and 100 fold more network traffic.

• It’s a world of experiences, shared experiences.

Our Promise

• We help people feel close to what matters to them.

• One of our basic needs as human beings is the need to communicate and share.
• Our promise is to help fulfil this need, to help them feel close to what matters to them.

Our Approach

• Consumer understanding drives us.

• We observe first, then design. We act on our consumer insights.

• We take a very human approach to technology

1. Simple

2. Reliable

3. Intuitive

4. Experiences to fall in love with.

• Internet is our quest. Internet innovation, creativity, media and services will be available
anytime, anywhere.

11
•Nokia wants to bring the best of internet to mobile

.
Our Resolution-Grow, Transform, Build

• Grow the number of people using nokia devices.

•Transform the devices people use.

• Build new businesses

• Our business and people’s expectations for mobile devices and services are changing.
Nokia’s promise is to help people feel close to what matters to them.

About the Company

Nokia- Connecting People !

Nokia Corporation (NYSE: NOK) is one of the world's largest telecommunications

equipment manufacturers. With headquarters in Keilaniemi of Espoo, Finland, this
Finnish telecommunications company is best known today for its leading range of mobile
phones. Nokia also produces mobile phone infrastructure and other telecommunications
equipment for applications such as traditional voice telephony, ISDN, 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 as well as Finnish Cable Works, a producer of
telephone and telegraph cables. All three companies were merged as Nokia Corporation

12
in 1967. The name Nokia originated from the river which flowed through the town of the
same name (Nokia).

In the 1970s Nokia became more involved in the telecommunications industry by

developing the Nokia DX 200, a digital switch for telephone exchanges. In the 1980s,
Nokia offered a series of personal computers called MikroMikko. However, these
operations were sold to International Computers, Ltd. (ICL), which was later merged
with Fujitsu-Siemens AG. Nokia also began developing mobile phones for the NMT
network; unfortunately, the company ran afoul of serious financial problems in the 1990s
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.

In 2004, Nokia resorted to similar streamlining practices with layoffs and organizational
restructuring, although on a significantly smaller scale. This, however, diminished
Nokia's public image in Finland, and produced a number of court cases along with, at
least, one television show critical of Nokia.

Recently, Nokia joined other mobile phone manufacturers to embrace Taiwanese

Original Device Manufacturers. Nokia signed a contract with BenQ, a Taiwanese
Original Device Manufacturer, to develop three high-end mobile phones, which are
scheduled to retail by the end of 2005.

13
History of Nokia

Nokia's history started in year 1865, when engineer Fredrik Idestam 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 soon
became successful. In 1895 Fredrik Idestam handed over the reins of the company to his
son-in-law. Nokia was Actually founded in 1965 by Fredrik Idestam in Finland as a paper
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 phone, Mobira Cityman, in 1987. The company
delivered the first GSM network to Radkilinia, a Finnish company in 1991, and in 1992,
Nokia 1011 - a precursor for all Nokia’s current GSM phones - was introduced. In the
1990s, Nokia provided GSM services to 90 operators across the world. Another
significant move of the company during this period was the divestment of its non-core
operations like IT. The company focused on two core businesses - mobile phones and
telecommunications networks. In the 1990s, Nokia provided GSM services to 90
operators across the world. Another significant move of the company during this period
was the divestment of its non-core operations like IT. 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 world. Many milestones have
been experienced in the mobile phone business since the 80’s. The success with the NMT
and GSM technologies and the products they spawned secured Nokia's position as the
world's leading telecommunications company. The list of Nokia's milestones 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 products from the beginning of the 90s. Early investments in R&D
were thus handsomely rewarded.

Nokia ensured its continued growth by reforming its production in the middle of the 90s.
The new phone models and standardized technical solutions made it possible to produce

14
an increasingly extensive product range more effectively. The extensive range of mobile
phone models, covering all user groups, is one of the reasons why Nokia became the
market leader.

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 Polón founds Finnish Rubber Works, which will later become Nokia's rubber
business.

1912: 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.

15
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.

16
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.

17
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

18
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.

19
SWOT Analysis

SWOT Analysis, is a Strategic planning tool used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a Project or in a Business venture. It involves
specifying the objective of the business venture or project and identifying the internal and
external factors that are favorable and unfavorable to achieving that objective.

SWOT Analysis of Nokia

Modern SWOT Analysis

A SWOT analysis conducts an external and internal scan of Nokia's business
environment, it is an important part of the strategic planning process. Environmental
factors internal to the firm usually can be classified as strengths (S), or weaknesses (W),
and those external to the firm can be classified as opportunities (O) or threats (T). Such
an analysis of the strategic environment is referred to as a SWOT analysis.
The SWOT analysis provides information that is helpful in matching the firm's resources
and capabilities to the competitive environment in which it operates. As such, it is
instrumental in strategy formulation and selection.

Strengths
 Is a dominant player in the smart phone market via its majority ownership of
Symbian and its proprietary Series 60 user interface which are projected to
represent majority of the 100M smartphones sold in the next 4 years.
 33% market share still the largest cell phone vendor by far, with double the
market share of nearest competitr
 Size should enable Nokia to amortize R&D costs and to get cost advantages
 Brand position: probably one of the top 20 brands in the world

20
Weaknesses

 The N-Gage is considered a flop

 Being the market leader and its increase role in Symbian is giving Nokia a bad
image, much like Microsoft in the PC industry.
 Slow to adopt new ways of thinking: a good example are clamshell phones which
are preferred by many customers. Nokia was reluctant to produce a clamshell
until this year, when it launched its first model.

Opportuntiies

 Increase their presence in the CDMA market, which they are just entering, as
well as 3G and Edge
 New growth markets where cell phone adoption still has room to go, including
India and other countries.
 Leverage its infrastructure business to get preference and a stronger position with
carriers

Threats

 Late in the game in 3G creates a risk to be displaced by leaders like Motorola,

LG, NEC and others.
 Asian OEMs who are entering the market very aggressively (TCL, nGo Bird)
 ODMs (HTC and others) enabling carriers to leverage their customer power
bypassing the handset vendor. Operators want to lessen their dependency on
handset vendors and the dominance of Nokia. Orange, O2, and many other
operators globally are selling their own brand of phones.

21
Production Units

Networks technology

 China
 Finland
 Germany
 India

Mobile devices and technology

 Brazil
 China
 Finland
 Great Britain
 Hungary
 India
 Mexico
 Romania
 South Korea

22
 Introduction to Marketing

"Marketing is the process of planning and executing the conception, pricing, promotion,
and distribution of ideas, goods, services, organizations, 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 and delivering value to customers and for managing customer
relationships in ways that benefit the organization and its 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.

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 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 or groups. Although many 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.

23
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.

Marketing objectives, goals and targets have to be monitored and met, competitor
strategies analysed, anticipated and exceeded. Through effective use of market and
marketing research an organisation should be able to identify the needs and wants of the
customer and try to delivers benefits that will enhance or add to the customers lifestyle,
while at the same time ensuring that the satisfaction of these needs results in a healthy
turnover for the organisation.

Philip Kotler defines marketing as ‘satisfying needs and wants through an 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 the 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’.

24
Advantages

 Identifies needs and wants of consumers

 Determines demand for product
 Aids in design of products that fulfill consumers needs
 Outlines measures for generating the cash for daily operation, to repay debts and
to turn a profit
 Identifies competitors and analyzes your product's or firm's competitive advantage
 Identifies new product areas
 Identifies new and/or potential customers
 Allows for test to see if strategies are giving the desired results

Disadvantages

 Identifies weaknesses in your business skills

 Leads to faulty marketing decisions based on improperly analyzed data
 Creates unrealistic financial projections if information is interpreted incorrectly
 Identifies weaknesses in your overall business plan

Levels of Marketing

Strategic Marketing

Strategic Marketing attempts to determine how an organization competes against its

competition in a market place. In particular, it aims at generating a competitive advantage
relative to its competition.

25
Operational Marketing

Operational Marketing executes marketing functions to attract and keep customers and to
maximize the value derived from them, as well as to satisfy the customer with prompt
services and meeting the customer expectations. Operational Marketing includes the
determination of the marketing mix.

Functions of Marketing

 Market research
 Advertising and sales promotion
 Public Relations
 Selling
 Servicing
 Methods of payment and credit

The Social Function of Marketing

In modern society production and consumption are apart from each other. Marketing
connects them. From the societal point of view, marketing is a philosophy, which shows
how to create effective production systems and consequently prosperity.

Business is a subsystem of society, which has both a social and an economic role. Thus, a
company must operate in a way that will make possible the production of benefits for
society and, at the same time, produce profits for the company itself. (Davis, K. et al.
1980) The role of marketing in society means also responsibilities. In addition to
economic and social responsibility, ecological responsibility is nowadays emphasized.
According to some definitions, environmental responsibility is part of social
responsibility. Improvement of marketing is related to the changing emphases of

26
economic, social and environmental responsibility. Goodpaster and Matthews (1982)
analyzed three patterns of thought, which can be distinguished for a company's social
responsibility: 1. The invisible hand; 2. The hand of government; and 3. The hand of
management.

1. The invisible hand view (promoted by e.g. Milton Friedman) concludes that the only
social responsibilities of business organizations are to make profits and to obey laws.
Free and competitive market-place will ensure the moral behaviour of companies. The
common good is best served when individuals and organizations pursue competitive
advantage.

2. The hand of government view (promoted by e.g. John Kenneth Galbraith) concludes
that companies are to pursue rational and purely economic objectives. It is the regulatory
hand of the law and political process which guides these objectives towards common
good.

3. The hand of management view (presented by Goodpaster & Matthews) would put the
responsibility of a company's actions into the hands of the company itself. It is concluded
that the moral responsibilities of an individual may be projected into an organization, and
that the concepts of an individual's responsibility and a company's responsibility are
largely parallel. Therefore, organizations should be no less or no more responsible than
ordinary persons.

27
The Traditional and Integrated Functions of Marketing

Traditionally, marketing has been seen as a link between production and customer. The
situation could be captured better by using the term selling. Selling is associated to the
so- called "Production and Sales Eras of Marketing". Slogans: "Make what you can
make" and "Get rid of what you have made" describe the traditional view of
marketing/selling.

The following figure shows the role of traditionally oriented marketing in (traditionally
oriented) management.

Marketing was born out of a need to take better into consideration the demand factors in
production planning. The function of marketing is to channel information of consumer
needs to the production and satisfaction of needs to consumers. The basic power of
marketing is the aspiration to produce and sell only that kind of products which have
demand. Marketing integrates the whole company to serve this demand. Marketing aims
at effective production systems, where information is transmitted effectively between
production and consumption.

28
Market Segmentation

Market segmentation is one of two general approaches to marketing; the other is mass-
marketing. In the mass-marketing approach, businesses look at the total market as though
all of its parts were the same and market accordingly. In the market-segmentation
approach, the total market is viewed as being made up of several smaller segments, each
different from the 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.

Possible bases for dividing a total market are different for consumer markets than for
industrial markets. The most common elements used to separate consumer markets are
demographic factors, characteristics, geographic location, and perceived product benefits.

29
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, interests, or 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 would single out segments with environmental
concerns. Some financial institutions attempt to isolate and tap into groups with a strong
interest in supporting their college, favorite sports team, or professional organization
through logged credit cards. Similarly, marketers of low-fat or low-calorie 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, states, regions, or even
countries. Considerations related to geographic grouping may include 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 areas of heavy snow accumulation. Because many retail chains are
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, markets can be partitioned in
terms of the quality, performance, image, service, special features, or other benefits
prospective consumers seek. A wide spectrum of businesses—from camera to
Automobile Marketers—rely on this type of segmentation to match up with customers.

30
Many companies 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 operational lines such as products made or sold, related processes used,
volume used, or end-user applications. In still other instances, differences in purchase
practices provide the segmentation base. These differences include centralized versus
decentralized purchasing; policy regarding number of vendors; buyer-seller relationships;
and similarity of quality, service, or 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, operational lines, and, in particular,
perceived consumer benefits and 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 (1) large enough to be worth pursuing, (2) potentially profitable,
(3) reachable, and (4) 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, the business can then design a separate marketing mix for
each market segment to be targeted.

Adopting a market-segmentation approach can benefit a company in several specific

areas. First, it can give customer-driven direction to the management of current products.
Second, it can result in more efficient use of marketing resources. Third, it can help

31
identify new opportunities for 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 effectively. Here we will
examine levels of segmentation, patterns of segmentation, market segment procedures,
bases for segmenting consumer and business markets, and requirements for effective
segmentation. Many companies are embracing target marketing. Here sellers distinguish
the 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 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.

Considerations for Market Segmentation

To identify segments, marketers examine consumers' interests, tastes, preferences, and

socioeconomic characteristics in order to determine their patterns of consumption and
how they will respond to various marketing strategies. The primary information
marketers seek is why consumers purchase specific products or services but not others.
Catalog retailers and direct-marketing firms make up some of the key users of market
segmentation, although many other kinds of companies and organizations use this
technique.

32
To whom do you sell and how do you promote sales?

Market segmentation, however, works effectively only for certain kinds of products and
services.

First, to determine whether to segment a market, marketers must find out if the market
can be identified and measured, which entails determining which consumers belong to
specific market segments.

Second, marketers must determine if the segments are large enough to be profitable.
While marketers can easily divide the total market into smaller groups, these groups
might be so small that they do not justify the expenses associated with market
segmentation.

Third, marketers must be able to reach the segments through their advertising. If the
members of a particular segment do not share interest in a common magazine or
television show, for example, then marketers have no way of reaching the segment and so
the segment is superfluous.

Fourth, marketers must gauge the responsiveness of the segments and find out if a
proposed segment would likely respond to a marketing campaign. If it is not probable
that a segment will react to a promotion, then the segment is not useful.

Fifth, marketers must determine if the segments will change in the near future. Since it
takes time to prepare a marketing strategy for specific segment and since it takes time for
market segmentation to be profitable, creating segments where consumer needs and
wants are likely to change would not be productive.

33
Representation of Market Segment

Market Demand

Aggregate of the demands of all potential customers (market participants) for a specific
product over a specific period in a specific market.

Market segment

Identifiable group of individuals, families, firms, or organizations, sharing one or more

characteristics or needs in an otherwise homogenous market. Market segments generally
respond in a predictable manner to a marketing or promotion offer.

1. Set of potential customers:

 Who have similar needs

 Who reference each other when buying

2. Are alike in the way they:

 Perceive value
 View products and services
 Purchase products and services

Why Define A Market Segment?

 Easier to understand customer needs

 Focus “whole solution” to a narrower set of customer needs
 Easier to become a leader in a smaller market (Big fish in small pond)
 More effective use of marketing dollars
 Generally more profitable

34
Why Market Segmentation?

A major key to a company’s success is its ability to select the most

appropriate market segmentation because a company cannot target whole market. There
are general guidelines for selection of target markets:

• Target market should be compatible with the organization goals and

image.

• The target market should match the marketing opportunity with the
company’s resources.

• An organization should consciously seek markets that will generate a

sufficient sales volume at a low cost to result in a profit.

• A company should select a market wherein the number of competitors and

their size are small.

The total markets for many products is to varied-too heterogeneous. This

variation Is due to the differences in buying habits ways to use the products
motives for buying etc. Market segmentation takes these difficulties into account.

Benefits of Market Segmentation

 Better marketing job and efficient use of marketing resources.

 Small firm with limited resources can compete effectively in one or two market
segments.
 A company can design products that really match the market demands.
 Advertising media can be used more effectively toward each segment of market.

35
Drawbacks of Market Segmentation upto some extent

 It is an expensive proposition in both the production and marketing of products.

 Segmentation increases marketing expenses in several ways i.e. Inventory cost
goes up, advertising cost goes up, administrative expense goes up.

Segmentation Basis

The market can be divided into segments by using four "segmentation basis":
Psychographic, behavioristic, 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.

Psychographic and behavioristic bases are used to determine preferences and demand for
a product and advertising content, while geographic and demographic criteria are used to
determine product design and regional focus.

36
Different market variables

Geographic segmentation

Geographic basis focus on preferences contingent on regional factors, such as region

(e.g., North or South), county, population density, urban or rural location, and climate.
Collecting and analyzing information according to the physical location of the customer
or other data source.

Geographic segmentation is often used in marketing, since companies selling products

and services would like to know where their products are being sold in order to increase
advertising and sales efforts there.

Geographic segmentation calls for dividing the market into different geographical units
such as nation, states, regions, countries, cities, or neighborhoods . The company can
operate in one or a few geographic areas, or operate in all but pay attention to local
variations .

Demographic Segmentation

Market segmentation based on differences in demographic factors (which normally match

consumer wants and needs) of different groups of consumers. It is one of the five
common segmentation strategies, and aims to define specific niches that require custom-
tailored promotion.

Demographics include personal characteristics such as gender, age, marital status, social
attributes (such as ethnicity and religion), and income level.

In demographic segmentation , the market is divided into groups on the basis of variables
such as age , family life cycle , gender , income , occupation , education , religion , race ,
generation , nationality , and social class. Demographic variables are the most popular
bases for distinguishing customer groups. One reason is that consumer wants,

37
preferences, and usage rates are often associated with demographic variables. Another is
that demographic variables are easier to measure.

 Age and Life-Cycle Stage

Consumer wants and abilities change with age. Age and life cycle can be tricky variables.
For example, the Ford Motor Company designed its Mustang automobile to appeal to
young people who wanted an inexpensive sports car . But Ford found that many
mustangs were purchased by older buyers. It then realized that its target market was not
the chronologically young but the psychologically young.

 Life Stage

Person in the same part of the life cycle may differ in their life stage. Life stage defines a
person’s major concern, such as going through a divorce, going into a second marriage,
taking care of older parents, deciding to cohabit with another person, deciding to buy a
new home, and so on.

 Gender

Men and women tend to have different attitudinal and behavioral orientations, based
partly on genetic makeup and partly on socialization practices.

Gender differentiation has long been applied in clothing, hairstyling, cosmetics and
magazines. The automobiles industry is beginning to recognize gender segmentation,
since there are now more women car owners, some manufacturers are designing features
to appeal to women, although they stop short of advertising the cars as women’s cars.

38
  Income

Income segmentation is long- standing practice in such products and services categories
as automobiles, boats, clothing, cosmetics, and travel. However, income does not always
predict the best customers for a given product.

 Generation

Many researchers are now turning to generation segmentation. Each generation is

profoundly influenced by the times in which it grows up- the music, movies, politics, and
defining events of that period. Demographers call these groups “cohorts”.

 Social Class

Social class has a strong influence on preference in cars, clothing, home, furnishings,
leisure activities, reading habits, and retailers. Many companies design products and
services for specific social classes.

Psychographic Segmentation

The division of a heterogeneous market into relatively homogeneous groups on the basis
of their attitudes, beliefs, opinions, personalities and lifestyles; sometimes called "State-
of-Mind" Segmentation.

Personality the distinctive character of an individual; used as a basis for the

psychographic segmentation of a market in which individuals of relatively similar
personality, with similar needs or wants, are grouped into one segment.

39
In psychographic segmentation, buyers are divided into different groups on the basis of
lifestyle or personality or values. People within the same demographic group can exhibit
very different psychographic profiles.

 Lifestyle

People exhibit many more lifestyles than are suggested by the seven social classes.
People differ in attitudes, interest, activities, and these affect the goods and services they
consume. Companies making cosmetics and furniture are always seeking opportunities in
lifestyles segmentation, but lifestyle segmentation does not always work.

 Personality

Markers have used personality variables to segment markets. They endow their products
with a “brand personality” that corresponds to a target consumer personality. The
company utilizes product features, services, and image making to transmit the product’s
personality.

 Values

Some markers segment by core values. Core values go much deeper than behavior or
attitude, and determine, at a basic level, people’s choices and desires over the long term.

Behavioral Segmentation

Market segmentation based on differences in the consumption behavior of different

groups of consumers—their life-styles, patterns of buying and using, patterns of spending
money and time, etc. One of the five common segmentation strategies, its objective is to
define specific niches that require custom tailored promotion. In behavioral segmentation,
buyers are divided into groups on the basis of their knowledge of, attitude toward, use of,

40
or response to a product. Many marketers believe that behavioral variables-occasions,
benefits, user status, usage rate, loyalty status, buyer-readiness stage, and attitude—are
the best starting points for constructing market segments.

 Occasions

Buyers can be distinguished according to the occasions when they develop a need,
purchase a product, or use a product. Occasions segmentation can help firms expand
product usage. For example in Pakistan tea is usually consumed at breakfast. A company
can consider occasions of critical life events or transitions-marriage, childbirth, illness,
relocation, career change—as giving rise to new needs.

 Benefits

Buyers can be classified according to the benefits they seek, people vary considerably in
the benefits they seek from the same product.

1. Road Warriors: premium products and quality service. (16%)

2. Generation F: fast fuel, fast service, and fast food. (27%)
3. True Blues: branded products and reliable service. (16%)
4. Home bodies: convenience. (21%)
5. Price Shoppers: Low price. (20%)

 User Status

Markets can be segmented into nonuser, ex-users, potential users, first time users, and
regular users of a product. Market-share leaders tend to focus on attracting potential users
because they have the most to gain. Smaller firms focus on trying to attract current users
away from the market leader.

41
  Usage Rate

Markets can be segmented into light, medium, and heavy product users. Heavy users are
often a small percentage of the market but account for high percentage of total
consumption

 Loyalty Status

Consumers have varying degrees of loyalty to specific brands, stores, and companies.
Buyers can be divided into four groups according to brand loyalty status:

1. Hard-core loyals: Consumers who are buy one brand all the time.
2. Split loyals: Consumers who are loyal to two or three brands.
3. Shifting loyals: Consumers who shift from one brand to another.
4. Switchers: Consumers who show no loyalty to any brand.

 Buyer-readiness stage

A market consists of people in different stages of readiness to buy a product. Some are
unaware of the product, some are aware, some are informed, some are interested, some
desire the product, and some intend to buy. The relative numbers make a big difference in
designing the marketing program.

 Attitude

Five attitude groups can be found in a market: enthusiastic, positive, indifferent, negative,
and hostile. Door-to-door workers in political campaign use the voter’s attitude to
determine how much time to spend with that voter. They thank to enthusiastic voters and
remind them to vote; they reinforce those who are positively disposed; they try to win the
42
votes of indifferent voters; they spend no time trying to change the attitudes of negative
and hostile voters.

Usage Segmentation

There are two ways of carrying out usage segmentation; firstly customers are split
according to their weight of use. - heavy users/buyers being more important targets than
light users.

This segmentation can be carried out directly on customer databases and can be
extremely powerful in focusing activity based on the value to the business, not just the
number of contacts.

43
Segmentation Variables Data

Geographic
World region Asia
Country Pakistan
Cities All major cities of Pakistan
Density Urban
Climate Hot and Dry
Demographic
Age All ages
Gender Male, Female
Family size 1-2, 3-4, 5+
Family life cycle Young, Single; Young, Married, no children; Young, Married with
children; Older, Married with children; Older, Married with no
children under 18; Older, Single; Other
Income Rs.30,000+
Occupation From middle class to upper class
Education Schools, Colleges, Universities
Religion Major religion of Islam, Christianity and Hinduism and small
percentage of others
Race Asian
Nationality Pakistani
Psychographic
Social class Working class, Middle class, Upper class.
Lifestyle Actualizes, Fulfilled, Believers, Achievers, Strivers, Experience’s
makers and Strugglers
Behavioral
Occasions Parties, Birthdays, Sports and Regular Occasions
Benefits Quality, Taste, Economy, Health
User status First time user
Attitude towards product Positive
44
Patterns of Market Segmentation

Market segments can be build up in many ways, one way is to identify preference
segments. For example cookies buyers are asked how much they value sweetness and
saltiness in biscuits as two product attributes. Three different patterns can emerge.

1. Homogeneous Preferences: shows a market where all the consumers have

roughly the same preferences. The market shows no natural segments. We would
predict that existing brands would be similar and cluster around the middle of the
scale in both sweetness & saltiness.

2. Diffused Preferences: At the other extreme, consumer preferences maybe

scattered throughout the space, indicating that customers vary greatly in their
preferences. The first brand to enter the market is likely to position in the center to
appeal to the most people.

3. Clustered Preferences: The market might reveal distinct preference clusters,

called natural market segments. The first firm in this market has three options. It
might position in the center, hoping to appeal to all groups. It might position in
the largest market segment (concentrated marketing).It might develop several
brands, each positioned in a different segment. If the first firm developed only one
brand, competitors would enter and introduce brands in the other segments.

The Segmentation Process

Once a company has gathered information from these segmentation bases, it must decide
how to divide the market, bearing in mind that market segmentation seeks to minimize
the differences within a segment and maximize the differences among segments.
Consequently, depending on the product or service to be marketed, simple divisions
along age, gender, or geographic lines alone may yield segments that are too vague to be
45
 of use. Instead, marketers may have to consider several characteristics or clusters of
characteristics in order to divide the market into useful segments.

For example, when considering beer consumption, marketers must look at both age and
gender: the majority of beer drinkers are both young and male.

 To begin segmenting the market, marketing managers must select the

segmentation bases they will use to develop the segments, depending on the
products or services to be marketed. Marketers may select a few segmentation
bases they believe are the most relevant at the outset and develop market
segments using them. On the other hand, they may compile a large array of
information using all the segmentation bases and use this information to group
consumers in various segments.
 Next, marketers conduct any primary market analysis they may need, by
preparing questionnaires and samples and by assessing the response to them.
Using this information, marketers try to determine the most fruitful segments—
the ones with greatest similarities within them. Because this process can be labor-
intensive and require advanced knowledge of statistics, companies often rely on
outside firms or artificial intelligence technology to produce meaningful market
segments.
 Once relevant, stable, reachable, profitable market segments are established,
marketers can target the segments they believe will offer the best opportunities for
growth given their products and resources and the ones they believe that
correspond to the products being marketed the best. Finally, marketers can
develop and launch advertising campaigns that appeal to the various segments.

Companies tend to choose the largest segments, although the segments with the most
consumers are not always the most profitable and usually have the most competition.
Consequently, marketers might benefit from considering targeting smaller segments or
segments ignored by competitors, such as low-income consumers, which is frequently
referred to as “niche marketing.”

46
Method of Segmentation

A company also may opt to target just one segment of the market, employing the
market segmentation method of concentration. After considering various segmentation
bases and conducting research, a company might find that its competitors are not reaching
specific segments and decide to target this segment or niche exclusively. A computer
maker, for instance, could concentrate solely on the home-user segment of the market and
ignore the needs of the other segments. To do so, the computer maker would have to offer
products that meet home-user needs at prices these consumers could afford. Since
concentrated marketing costs less than differentiated marketing, it may appeal to small
businesses in particular.

After choosing a method of market segmentation, marketers must integrate the method
into an overall marketing strategy. The marketing strategy will try to make the target
product or service appeal to the target segment through an advertising campaign
developed based on segmentation information such as age, gender, or location. Marketers
also consider what a company's strategic position in a market is—e.g., if it is a computer
supplier to home users or businesses—and creates a marketing program that will help a
company achieves or maintain this position. If the segment is properly defined for a
specific product or service, then developing promotional strategies and reaching the
target segment should be relatively easy. The information used to help create the market
segments should help marketers choose among promotional techniques (e.g., direct
marketing, advertising, publicity, and sales promotion), pricing strategies, and
distribution strategies. This information also should help marketers choose among
various advertising media.

After collecting a large amount of information about their customers, marketers can plan
promotions and products that will appeal to various segments over a long time by
determining what products a segment wants in the future and offering them at the
appropriate time

47
Target Costing

Is a disciplined process that uses data and information in a logical series of steps to
determine and achieve a target cost for the product. In addition, the price and cost are for
specified product functionality, which is determined from understanding the needs of the
customer and the willingness of the customer to pay for each function.

The Basic Process: the basic stages in the Target-Costing process:

1. define the product

2. set the target
3. achieve the target
4. maintain competitive cost

The stages are market-driven:

 Define the Product answers the fundamental questions of “What are you selling?”
“To whom?” “What do they want it to do?”

 Set the Target addresses the issue of “What will they pay for it?” “What should it
cost to produce?”

 Achieve the Target is concerned with “How can we get there?” “Are we getting
there?”

 Maintain Competitive Cost deals with “How can we stay ahead?”

Entrepreneurial Strategy:

 Define market segment small enough to allow you to capture 25% to 30% share
 Be a “Big fish in small pond”
 Ideal: Be the only supplier in a very narrowly defined market.

48
Effective Segmentation

Not all segmentation is useful. For example, table salt buyers could be divided into blond
and brunette customers, but hair color is not relevant to the purchase of salt. Furthermore,
if all salt buyers buy the same amount of salt each month, believe all salt is the same, and
would pay only one price for salt, this market would be minimally segmentable from a
marketing point of view.

To be useful, market segment must be:

Measurable: The size, purchasing power, and characteristics of the segment can be
measured.

Substantial: The segments are large and profitable enough to serve. A segment should be
the largest possible homogeneous group worth going after with a tailored marketing
program. It would not pay, for example, for an automobile manufacturer to develop cars
for people who are under four feet tall.

Accessible: The segments can be effectively reached and served.

Differentiable: The segments are conceptually distinguishable and respond differently to

different marketing-mix elements and programs. If married and unmarried women
respond similarly to a sale on perfume, they do not constitute separate segments.

Actionable: Effective programs can be formulated for attracting and serving the
segments.

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 manufacturers are using precise segmentation to
carve up their share. Divide and rule seems to be working!

49
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 market

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

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.

50
 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.

51
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

Behavioural

 Benefits – Quality

 Loyalty status – Strong

52
Nokia mobile phones by Series

 Nokia 1000 series

1011 · 1100/1101 · 1110/1110i · 1112 · 1200 · 1208 · 1600 · 1610 · 1650

 Nokia 2000 series

2110i · 2115i · 2310 · 2600 · 2600 classic · 2610 · 2630 · 2650 · 2651 · 2700 classic ·
2730 classic · 2760

 Nokia 3000 series

3100/3100b/3105 · 3110 · 3110 classic · 3120 · 3120 classic · 3155 · 3200/3200b/3205 ·

3210 · 3220 · 3230 · 3250 · 3310 · 3315 · 3330 · 3410 · 3500 classic · 3510/3590/3595 ·
3510i · 3600/3620/3650/3660 · 3600 slide · 3720 classic

 Nokia 5000 series

5070 · 5100 · 5110 · 5130 Xpress Music · 5200 · 5210 · 5220 Xpress Music · 5230/5235
· 5300 · 5310 Xpress Music · 5320 · 5330 Mobile TV Edition · 5500 Sport · 5510 ·
5530 · 5610 · 5700 · 5730 · 5800

 Nokia 6000 series

6010 · 6020/6021 · 6030 · 6070 · 6085 · 6100 · 6101 · 6103 · 6110/6120 · 6110
Navigator · 6111 · 6120/6121/6124 classic · 6131/6133 · 6136 · 6151 · 6170 · 6210 ·
6210 Navigator · 6220 classic · 6230 · 6233 · 6255i · 6260 Slide · 6265 · 6270 · 6275i ·
6280/6288 · 6290 · 6300 · 6300i · 6301 · 6303 classic · 6310i · 6315i · 6500 classic ·
6500 slide · 6555 · 6600 · 6600 fold · 6600 slide · 6610i · 6620 · 6630 · 6650 · 6650
fold · 6670 · 6680 · 6681/6682 · 6700 classic · 6710 Navigator · 6720 classic · 6730 ·
6800 · 6810 · 6820 · 6822

53
  Nokia 7000 series

7110 · 7160 · 7210 · 7250 · 7280 · 7360 · 7380 · 7390 · 7500 Prism · 7600 · 7610 ·
7650 · 7700 · 7710 · 7900 Prism

 Nokia 8000 series

8110 · 8210 · 8250 · 8310 · 8600 Luna · 8800 · 8850 · 8910

 Nokia Communicator

9000/9110/9110i · 9210/9290 · 9210i · 9300/9300i · 9500

 Nokia Cseries

C6

 Nokia Eseries

E50 · E51 · E52 · E55 · E60 · E61/E61i · E62 · E63 · E65 · E66 · E70 · E71 · E72 ·
E75 · E90 Communicator

 Nokia Nseries

N70 · N71 · N72 · N73 · N75 · N76 · N78 · N79 · N80 (Internet Edition) · N81 (N81
8GB) · N82 · N85 · N86 8MP · N90 · N91 (N91 8GB) · N92 · N93 · N93i · N95 · N95
8GB · N96 · N97

 Nokia Xseries

X3 · X6

 Internet Tablet

770 · N800 · N810 (WiMAX Edition) · N900

54
  N-Gage

Classic · QD · QD Silver Edition

 Others

 Vertu luxury phones

 Concept
 Nokia Morph · Nokia Aeon · Nokia 888 · Nokia Eco Sensor · Nokia SURV1

55
 Lifestyle and Psychographic Basis for Nokia

The descriptors of segmentation are:

 Activities
 Interests
 Opinions

The Segmentation of Nokia conducted on the basis of Price

The price ranges are as follows:

 1000 – 5000
 5000 – 9000
 9000 – 15000
 15000 – 21000
 21000 - 30000
 30000 - above

Range 1: (1000 – 5000) Workers and labourers

 nokia 1650: rs 3,750

 nokia 1200: rs 2,400
 nokia 1208: rs 3,000
 nokia 2610: rs 3,950
 nokia 2626: rs 4,100
 nokia 2310: rs 3,650
 nokia 1112: rs 2,800

56
  nokia 1600: rs 3,050
 nokia 1110i: rs 2625
 nokia 3110: rs 4750

Features:

 The nokia phones falling in this range are mostly used by the manual workers
because they cannot afford a high price mobile phone.
 Some students also use cell phone from this range as they have the fear of snatch
of mobile phone.
 Mobile phones falling in this category are simple phones who only meet the
purpose of messaging and calling. 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, which is most preferred by
laborers, security and watch men.

Activities:

 These people are mostly laborers, plumbers, security guards and watchman.
 They work in places like factories, construction sites and houses etc.
 They have hobbies like listening to radio. They have no other special hobby, as
they don’t get spare time for themselves.
 They only celebrate events like Eid Ramzan and weddings.
 They don’t have any vacations as they belong to the lower class who works day
and night to earn money. They work to on daily and hourly basis.
 They cannot afford any special entertainment but the only entertainment available
to them within their range is FM radio.
 They have no club memberships
 They only shop for things that are essential and required for daily use.

57
Interests:

 They have big families.

 They live in areas like lyari, lalokheth and landhi etc.
 They work in factories, construction site and are not well paid. They often work
on daily or hourly basis.
 The only recreation facility available to them is zoological garden, small parks
and seaside.
 They don’t follow any fashion.
 They don’t spend money on hoteling.

Opinion:

 They are not concerned about themselves; their only priority is their family.
 They tend to act very emotionally towards social issues. They trust their leaders
blindly.
 They are not sure about their future so they tend to live in present and think only
about the present.
 They are strong followers of the culture. They pass their cultural values to their
ancestors and give great importance to them.

Range2: (5000 – 9000) middle managers

 Nokia 2630; Rs 6250

 Nokia 6080; Rs 5800
 Nokia 6070; Rs 5350
 Nokia 6020; Rs 5850
 Nokia 7360; Rs 7050
 Nokia 3110 Classic; Rs 8100


58
Features:

 The main users of this segment are middle managers because they have limited
and average salary and cannot afford to spend it on unnecessary expenses.
 They do not keep mobile for show off purpose.
 The core feature of this segment is Audio Video Player, FM Radio Camera,
EDGE, GPRS and Expandable Memory.
 This segment offers up to maximum 3 hours of talk time.
 The need to remain in connection with internet, this segment offers EDGE
connectivity so they can faster access information, including emails or news clips.
 With the VGA camera, users can capture special moments with images and video
clips or connect to their colleagues using push to talk technology.
 Affordable, business tool for any occasion.
Activities:
 They are mostly middle managers in factories and offices.
 They earn a reasonable amount of money which is limited and spent on their
personal and daily use.
 They spend most of their time surfing on internet.
 They are part of parties and dinners organized by friends or in offices. They tend
to spend their free and leisure time with their friends on dinner.
 They like to spend their vacations in their home. They do not go out of the city for
vacations as they want to relax and get a break from office work.
 For entertaining themselves, they go out with friends on dinners and parties. They
like to watch movies and internet surfing is also common.
 They go out on places like Tariq road, Sadder etc to shop for themselves. Most of
their salaries are spent on their personal use.
 Cricket and games like FIFA are of their major interest.

59
 Interests:
 They are the earning members of their family but their salaries are spent mostly
on their personal use.
 They go out to eat at places like bundoo khan, KFC, McDonalds.
 They are moderate followers of fashion. They tend to adopt fashion which are in
their range and suitable to them.

Opinions:
 They are self oriented, spend their salary on themselves. They are confident are
have a strong belief in themselves.
 They are not politically loyal to any specific group neither are they affected by the
political movements of the group.
 The have a strong focus on the work they are doing. They are highly determined
and focused about their work.
 They have education of bachelors or bcom degree.
 Their main focus is on their future development. They are always thinking about
profit maximization. They want to achieve success in short time.
 They are not strong followers of culture.

Range 3: (9000 – 15000) university students

 Nokia 5200; Rs 9400

 Nokia 6151; Rs 9750
 Nokia 7610; Rs 10150
 Nokia 6111; Rs 10500
 Nokia E50; Rs 11350
 Nokia 6230i; Rs 11350
 Nokia 6131; Rs 11700

60
  Nokia 5300; Rs 11900
 Nokia 7500 Prism; Rs 12000
 Nokia 6233; Rs 12300
 Nokia 6300; Rs 12650
 Nokia N72; Rs 13500
 Nokia E62; Rs 13200
 Nokia 7373; Rs 13500
 Nokia 6120 Classic; Rs 14900

Features:
 The cell phones falling in this range are mostly used and popular in university or
college students.
 These cells have a stylish look and have all the essential features such as Audio
Video Player, FM Radio, Bluetooth, Camera, EDGE, GPRS and Expandable
Memory.
 They are popular among this group because they have high resolution mega pixel
camera, they like to click photos of family and friends and they want to save their
memories.
 They have high memory, so they can download songs videos and share it with
their friends.
 They are stylish phones usually used to show off their personality and attitudes.

Activities:
 These students spend most of their time in universities and their friends.
 They like to keep these cell phones to show off and to give impression about their
status.
 Their main hobby is to sleep, watch movies, listening to music, going out with
friends and partying.
 They are active members of societies made in universities and college.

61
  Their main source of entertainment is internet, they like net surfing, chatting and
orkutting and watching movies.
 They are fashion conscious and shop from places like dolmen mall, forum etc.
 They play internet games and cricket.

Interests:

 The university students have high level affiliation for their friends. They spend
less time with their families due to their busy schedules.
 They do not have any job as they are studying, they sometimes do internships.
 They go out to places like arena, millennium mall and snooker clubs etc.
 They are most fashion conscious people; they adapt themselves with the latest
fashion.
 They like to eat junk food. They go out to hoteling on regular basis, pizzas,
burgers, tikkas are their favorites.

Opinion:
 They are the most self-confident people, they like to be popular and recognized.
 They have social issues like conflict between friends, disagreement with family or
parents on various issues. For e.g. spending nights at friends place and coming to
home at late hours.
 They use foreign products of high quality which shows status and image.
 They are care free and do not spend time worrying about their future.
 They are less culture oriented. They easily adapt to western culture.

62
Range 4: (15000 – 21000) music lovers/ high memory

 Nokia N70 Music Edition; Rs 16000

 Nokia 5310; Rs 16400
 Nokia 6288; Rs 16750
 Nokia 3250 (1GB);Rs 16750
 Nokia 7390; Rs 17300
 Nokia 5700; Rs 18400
 Nokia E51i; Rs 20000
 Nokia N73; Rs 20000
 Nokia 5610; Rs 20500

Features:
 This segment contains cell phones for music lovers.
 These mobile phones are specifically optimized for entertainment, music and
games.
 These Music phones offer dedicated music or gaming keys, expanded memory,
large LCD screen and extended battery performance to provide quick and easy
access to entertainment content.
 These phones offer up to 18 hours of music playback, memory for up to 3,000
songs on an optional 4GB microSD card and dedicated music keys.

Activities:
 They like to listen to music and download songs from the GPRS. They download
movies and share it with their friends.
 They like to take part in music events such as concerts or functions.
 They spend their vacations surfing on net, watching TV and listening to music.

63
  They are most fashion conscious people; they are trend followers and like to
adopt fashion that is most popular and unique.
 They go out for shopping at places like forum, dolmen, and millennium mall.
 They like to play games on their mobile phones.

Interests:
 Their social circle includes people who are also interested in music and movies.
 For entertainment purpose, they go out to concerts and attend various functions
 They are the most fashion conscious people. They spend their pocket money on
buying products that show attitude and their image.
 They are fond of eating pizzas, burgers, donuts etc.

Opinions:
 They are highly confident and are mostly wannabe’s.
 They have social issues of recognition and self esteem.
 They use high quality products that show off their image.
 They look themselves as future singer and their main focus is on becoming
another singing idol.

They are most weak followers of culture. They easily adopt western culture. And forget
their cultural values.

Range 5: (21000 – 30000) communicator/ high and young business people

 Nokia E65; Rs 21300

 Nokia N73 Music Edition; Rs 21500
 Nokia E61; Rs 22500
 Nokia 9300i; Rs 22700
 Nokia E70; Rs 22700
 Nokia 6500 slider; Rs 23300

64
  Nokia 7900 Prism; Rs 23250
 Nokia E61i; Rs 25950
 Nokia N76; Rs 26800
 Nokia N81; Rs 27200

Features:

 Young and energetic business men fall into this category of age 30 – 40.
 These people are young and adapt new changes quickly.
 They are busy most of the time so they want quick solutions for their problems
 They want easy access to everything. They like challenging and new things.
 The cell phones falling in this category are business phones including
communicators and high memory storage phones.
 These phones enable to connect the business people to one another. They have a
lot of storage space and connect to GPRS anywhere. They can take their office
work with them and can even download heavy files.

Activities:
 They are young business people who are business oriented. The have most
emphasis on achieving their targets in the shortest means time.
 Their hobbies are surfing on internet and finding out knowledge about latest
technology etc.
 They attend business meetings and business ceremonies.
 They go out to foreign countries for vacation as they want to spend some time
away from work and relax.
 They member of various clubs such as Karachi club, country creek club, golf club
etc.
 They buy foreign products and shop from foreign country. They mostly buy
branded products.
 They play sports such as golf and yachting etc.

65
Interests:
 They have small and growing families.
 They have houses in posh and popular areas.
 They are future oriented and tend to maximize profits.
 They are very conscious about their diet. They go out to dinner on restaurants like
bar b Q tonite and hotels like PC, AVARI etc.

Opinions:
 They are future oriented their main emphasis is on profit maximization.
 They give less importance to political issues.
 They are highly concerned about the economic conditions in the country.
 They use high quality and branded products.

Range 6: (30000 - above) educated politician

 Nokia N95; Rs 36750

 Nokia N93i; Rs 39750
 Nokia 8600; Rs 41000
 Nokia N82; Rs 44300
 Nokia N95i; Rs 44300
 Nokia E90; Rs 49700
 Nokia 8800; Rs 50800

Features:

 It is both a mobile phone and media player rolled into one. Similar as the N95 and
G600, the candy bar N82 is packed with lots of advanced function and features

66
 such as HSDPA, Bluetooth 2.0 with A2DP, Wi-Fi, integrated GPS, FM radio,
microSD and TV-out.

Activities:
 The segment using these cell phones are mostly educated politician.
 Their hobbies are hunting, horse riding, clubbing and yachting.
 They spend their vacations in foreign countries.
 They have membership in Karachi club, creek club etc.
 They shop from foreign countries and mostly buy expensive and branded
products.

Interests:
 They have small families and usually they are mostly less family oriented, they
spend less time with their families.
 They live in highly posh areas such as Defence and Clifton etc.
 They have highly reputed ranks in the society.
 They go out to clubs and for horse riding, golfing etc.
 They buy products that are branded and most expensive.
 They like to eat continental, Chinese and Italian foods.
 They take high interest in media. They keep themselves up to date with the latest
news related to politics, business and society.
 They are economically and financially well-off.
 They get education from foreign countries and also send their children abroad for
higher education.
 They are not concerned or followers of their culture. They change themselves as
the society progresses and trend changes.

67
Analysis and Interpretation

We asked total 10 questions, which were mainly close-ended questions. Out of 10, 7 were
answerable in either YES or NO. And the remaining 3 questions had options for each.
The results of the question Number 1,2,3,4,6,7 and 9, which are answerable in either
YES or NO are below,
Question No. Yes % No %
1. 87.5 12.5
2. 87.5 12.5
3. 100 0
4. 62.5 37.5
6. 75 25
7. 50 50
9. 37.5 62.5

In question number 5, I asked that Nokia is costlier as compared to other mobile handsets
that provides same features as Nokia, but still why do you prefer Nokia?
57% people told that because it is user friendly.
29% people told that it is because of the NOKIA Brand Name.
Where 14% people told that it is because of better features.
In question number 8 I asked that Except Nokia what are your other preferred mobile
phone brands?
25% people told that they prefer Samsung, 12.5% told LG, 37.5% told
Motorola and remaining 25% told they prefer other brands.

68
Q1. Do you think Nokia handsets are updated with the latest features?

13%

yes
no

87%

Q2. Are Nokia mobiles readily available in the markets?

13%

yes
no

87%

Q3. Do you think Nokia mobiles are user friendly?

0%

yes
no

100%

69
Q4. Do Nokia provide good after sales service compared to other mobile
phones?

30%

yes
no
70%

Q6. Does a Nokia phone come with reasonable price?

25%

yes
no

75%

Q7. If a mobile company offers same features, quality and price as Nokia, will u still go
for Nokia?

yes
50% 50%
no

70
Q9. Will you go for other mobile phone brand with less price and more features?

38%
yes
no
62%

Q5. Nokia is costlier as compared to other mobile handsets that provides same features as
Nokia, but still why do you prefer Nokia?

user friendly
32%

brand nam e
52%

better
features
16%

Q8. Except Nokia your other preferred mobile phone brands?

25% 25%
sam sung
LG
m otorola
13%
others

37%

71
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 & 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. As per my opinion Nokia had
introduced various schemes to attract people & gain more goodwill into market. I would
like to conclude that Nokia had been launching various new products & strategies
throughout the year but still it is the no.1 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.

72
Recommendations

I would like to provide certain recommendations towards this Project report. They are as
follows:
 I would like to suggest that the Marketing areas for Sales should be increased.
They should try to adopt new strategies to regain whole sales force in the market.

 As far as launching of new models is concerned, the Company should try to offer
sales of such products at an affordable Price.

 The Company should try to bring more attractive offers & discounts to the
customers of segments to make them more brand loyal towards them.

73
 Bibliography

Websites visited:

www.nokia.com

http://www.nokia.com/about-nokia/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?cat=redesign&q=project+on+nokia&sa.x=43&sa.y=15

74