Segmentation: Nokia Phones

Executive Summary
In recent years, mobile service usage increase rapidly following the emerging use of smart phone technology by the mobile users. The increase use of smart phones poses challenge for actors in mobile ecosystem to constantly meet the dynamic change of needs and requirement of mobile users. Through market segmentation, we are able to distinguish behavior usage or preferences of smart phones for each market segment and use this information to design or offer specific product that meet the behavior or preferences of the user in each market segment. This project helps in developing a segmentation scheme for Nokia Phones with the help psychographic segmentation. Our findings show that the resulted market segment can be identified based on the prices of the phones, interests, opinions and activities of the consumer.

Contents
Executive Summary
1. Introduction
2. Description About The Segment
3. Analysis and Interpretation
4. Conclusion
References
Introduction
This Project is done to develop a market segmentation scheme. This Project mainly focuses on defining various segments entertained by Nokia 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 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.
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, behaviorist, 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 behaviorist 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.

Description About The Segment

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 (phones selected randomly):

Range1: (5000 – 9000) middle class people

Nokia 5233; Rs 6250
Nokia Asha 302; Rs 5800
Nokia 301; Rs 5350
Nokia Asha 311; Rs 5850
Nokia Lumia 610; Rs 8450 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.

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.

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 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.

Range 2: (9000 – 15000) students

Nokia Lumia; Rs 9400
Nokia C6; Rs 9750
Nokia Lumia 620; Rs 10150
Nokia E52; Rs 11500
Nokia Lumia 800; Rs 13500

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, 3G, WIFI, GPRS and Expandable Memory.

Activities:
These students spend most of their time in universities and their friends.
Their main hobby is to sleep, watch movies, listening to music, going out with friends and partying.
Their main source of entertainment is internet, they like net surfing, chatting and watching movies.

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.

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.

Range 3: (15000 – 21000) music & entertainment lovers

Nokia E6; Rs 16000
Nokia Pure view 808; Rs 16400
Nokia Lumia 625; Rs 16750
Nokia N8;Rs 17750
Nokia X7; Rs 17300

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.

Activities:
They like to listen to music and download songs from the internet. They download movies and share it with their friends.
They like to take part in music events such as concerts or functions.
They like to play games on their mobile phones.

Interests:
Their social circle includes people who are also interested in music and movies.
They are the most fashion conscious people. They spend their pocket money on buying products that show attitude and their image.

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.

Range 4: (21000 – 30000) Top class people

Nokia limia 925; Rs 29300
Nokia lumia 920; Rs 25500
Nokia lumia 900; Rs 31000

Features:

These people are young and adapt new changes quickly.
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 internet 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.

Interests:
They have small and growing families.
They have houses in posh and popular areas.
They are future oriented.

Opinions:
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. Analysis & Interpretation
Analysis And Interpretation

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

Strengths
Brand image of Nokia is good as its products are user friendly.
Nokia is considered to be the producer of most durable cell phones.
Perception of customers toward Nokia is positive.
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

Weaknesses
Operating software of Nokia is not competitive.
Being the market leader and its increase role in Symbian is giving Nokia a bad image.
Slow to adopt new ways of thinking: a good example are clamshell phones which are preferred by many customers.
Nokia Lumia is not a hit.

Opportunities
Increase their presence in the CDMA market, which they are just entering, as well as 3G and 4G.
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 Apple, Samsung, Sony and others.
Its customers are shifting towards other brands like Apple
Samsung, sony.

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. 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 not 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.

Psychographic Market Segmentation Done on Nokia

Made By- Akshay Kumar Gupta Roll No.- C-34

References: Range1: (5000 – 9000) middle class people Nokia 5233; Rs 6250 Range 2: (9000 – 15000) students Nokia Lumia; Rs 9400 Range 3: (15000 – 21000) music & entertainment lovers Nokia E6; Rs 16000