Case Study of Nokia Distribution Network-Delhincr

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case study of nokia distribution network-delhincr

2010

2010

NOKIA DISTRIBUTION Network
NOKIA DISTRIBUTION Network

Submitted to :
Mr.Asif Zameer
Assisstant Professor, Marketing
FORE School of Management, New Delhi
Submitted to :
Mr.Asif Zameer
Assisstant Professor, Marketing
FORE School of Management, New Delhi
Submitted by :
Ashutosh Kumar Jha (91011)
Faraz Khan (91033)
Nishant Singh (91039)
Roshan Sonthalia (91045)
Smriti Gupta (91054)
Stuti Gupta (91056)
Submitted by :
Ashutosh Kumar Jha (91011)
Faraz Khan (91033)
Nishant Singh (91039)
Roshan Sonthalia (91045)
Smriti Gupta (91054)
Stuti Gupta (91056)

Table of Contents

Introduction4
Mobile phone industry in India4
Nokia in India5
Nokia distribution structure in India6
Role of Channel Partners8
Margins at each level10
Distributors Coverage Plan11
Infrastructure required by distributor11
Support provided by the company to the distributor13
Credit/ Payment terms14
Major Problems Faced by the distributors14
Major Points of conflict15
Major Problems/ Issues identified16
Recommendations17
Refrences18
People Contacted19

Terms and Abbreviations used
* Nokia - Nokia India Pvt. Ltd.
* RDSS – Redistribution Stockist Supplier
* HCLI – HCL Infosystems
* Dealers – Mobile phone retailers

Introduction
Integral part of 4P’s f marketing mix is ‘place’. Having a great product is useless till its made available to potential customers at right places and at right time. Considering a country like India with not only a large but also economically, climatically and socially diverse landscape to be covered amplifies the problem manifolds. A distribution network for products rises above importance levels to become bare necessity for the existence of any company. The success of the channel design depends upon the reach and efficiency of the network any organization develops and maintains and ease with which any potential customer is able to find the product. Efficiency of the distribution cost and type of channel partners form and integral part of this. Mobile phone industry in India

The mobile phones industry made a slow start in India in 1995. Several private players who had entered the industry in 1995 exited in the next few years due to the unfriendly telecom policies of the Indian government, high licensing fees and absence of a proper telecom regulatory body. The growth in the subscriber base of mobile phones remained sluggish initially, reaching the 1 million milestone in 1998. In 1999, the Government of India announced a new telecom policy. This policy planned to provide telephones on demand by 2002. Among other things, the policy allowed unrestricted private entry into almost all mobile service sectors. The government allowed cellular mobile service providers to share infrastructure with other operators. It also allowed existing operators to migrate from fixed license fee to one-time entry fee with revenue sharing. This policy helped many private operators to break even faster. By 2001, the demand for mobile services was growing well. The private companies concentrated on providing basic telephone services to consumers. The number of mobile phones crossed five million by 2001 and doubled to 10 million in 2002. Since then, India has reached almost 35% teledensity with metros having 100% teledensity and over 450mn mobile connections across India.

Nokia in India
Nokia entered the Indian market in 1994. The first ever GSM call in India was made on a Nokia 2110 mobile phone on its own network in 1995. When Nokia entered India, the telecom policies were not conducive to the growth of the mobile phone industry. Nokia also had to face tough competition from other powerful global players like Motorola, Sony, Siemens and Ericsson. Nokia as a company has expanded at a very fast pace in India. Over the past decade, Nokia has captured nearly 60% of India’s $5.6 billion handset market, of...
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