...32516 Part 1: Sales and Distribution Structure of Nokia Nokia manufactures its mobile in Chennai manufacturing plant and then it transfers to nokia’s mother depot which is located in Gurgaon, HCL will start distributing Nokia’s product from here on. HCL takes order from all the distributers in the region and then it supply the product to the retailers with the help of RDSS (Re-Distribution stockiest supplier). RDSS are further divided in to two types based on quantity distributed and geographic nature as RDSS city and RDSS MD (Micro Distributers), RDSS city caters to large cities and supply directly to the retailers whereas RDSS MD will supply to its micro distributers to carter small towns and through them it will be supplied to retailers. The above mentioned distribution channel structure of Nokia – HCL is restricted to north and east part of India. For west and south India Nokia has developed its own distribution channel which takes responsibility of transferring handsets to end users apart from that Nokia also takes responsibilities like recruiting sales force, training and developing. Stock norms of Nokia- HCL says that how many days stock should be maintained in each level of distribution in the supply chain which are as, HCL – 7, RDSS city – 5, RDSS MD – 4 and MD – 3. Anything below this number of days would be replenished immediately to avoid stock out. Distributors in India are HotSpot, Mobile Store, Univercell and Subhikshah. Apart from this Nokia have their own New Concept...
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...wish to explore the current Sales & Distribution set-up (including internal S&D organization structure, channel partners and their functions), identify challenges and gaps in the current distribution strategy and propose areas of improvement. Why is the topic interesting? Nokia has currently slipped to the second position in Mobile phone market. Google’s Android in software and Samsung’s smartphones in hardware are posing a major threat to their market position. Recently, it encountered a reseller boycott (mostly the mobile operators) which hampered its smart phone sales leading to a drastic fall in their market share and sales volume. All these events have made Nokia to reassess its current channels, identify alternatives based on creative combinations of value-adding channel functions, and evaluate the alternatives within a broad context that highlights potential competitive advantages. The downgrading in the firm’s leadership in distribution gives us an interesting opportunity to understand how channel redesign and restructuring happen to cater to the changing consumer needs and other major market forces such as technology. How will you go about the project? Scope of the project: The project would broadly cover the following aspects: 1. Evolution of Nokia India’s Sales and Distribution network over time 2. Understanding the Sales and Distribution strategies at the company level 3. Identifying various channel entities, the functions each type performs...
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...Table of Contents Introduction 4 Mobile phone industry in India 4 Nokia in India 5 Nokia distribution structure in India 6 Role of Channel Partners 8 Margins at each level 10 Distributors Coverage Plan 11 Infrastructure required by distributor 11 Support provided by the company to the distributor 13 Credit/ Payment terms 14 Major Problems Faced by the distributors 14 Major Points of conflict 15 Major Problems/ Issues identified 16 Recommendations 17 Refrences 18 People Contacted 19 Terms and Abbreviations used Nokia - Nokia India Pvt. Ltd. RDSS – Redistribution Stockist Supplier HCLI – HCL Infosystems Dealers – Mobile phone retailers rajesh 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...
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...distribution channels Nokia’s global developer program, Forum Nokia connects developers to the tools,technical information, support, and distribution channels they can use to build and marketapplications around the globe. Through its website and from offices in the US, Europe,Japan, China, and Singapore, Forum Nokia provides technical and business developmentsupport to developers and operators to assist them in achieving their goal of successfullylaunching applications and services to consumers and enterprises..Nokia uses Dangaard Telecom. Dangaard Telecom , headquartered in Padborg, in southern Jutland and Europe'slargest distributor of mobile phones, aims to become the world's largest distributor in thenext 12 months by cultivating new markets and developing new business areas. DangaardTelecom says that record revenues and profits in the latest fiscal year have fuelled itsgrowth plans.Steen Folmer Pedersen, group director of Dangaard Telecom says: "In the last 12 monthswe have earned more money than ever before. It has enormous importance to us and tosouthern Jutland, and the fine earnings should naturally be invested in new strong growthin all our areas". i2 the biggest mobile distribution company in africa & middle east. Nokia , Motorola &Sony Ericsson have made contract with i2. Accessibility Almost one in five of the world’s population lives with some kind of recognizeddisability, including those related to ageing. Nokia is committed to providingaccessibility for...
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...the international business (IB) context there are very few academic studies that seek to analyze and compare the different geographical mobile phone markets from the viewpoint of competition. This thesis examines competition in the mobile phone markets of the United States and Europe in light of interviews and secondary data covering years 2002 - 2011. The framework used for the analysis is founded on concepts drawn primarily from industrial organization (IO) economics, IB theory and microeconomics. The first part of the thesis gives an overview of the U.S. and European mobile phone markets and the second part focuses specifically on Nokia, its actions and performance on the U.S. market. The findings reveal that the U.S. and European mobile phone markets are fundamentally different. Firstly, while in Europe several parallel sales channels exist, the U.S. market is dominated by mobile operators that control access to the end customer. Secondly, in the U.S. market phones are generally sold heavily subsidized and bundled, and either under the operator brand or co-branding agreements. In addition, the U.S. market has historically split in...
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...the international business (IB) context there are very few academic studies that seek to analyze and compare the different geographical mobile phone markets from the viewpoint of competition. This thesis examines competition in the mobile phone markets of the United States and Europe in light of interviews and secondary data covering years 2002 - 2011. The framework used for the analysis is founded on concepts drawn primarily from industrial organization (IO) economics, IB theory and microeconomics. The first part of the thesis gives an overview of the U.S. and European mobile phone markets and the second part focuses specifically on Nokia, its actions and performance on the U.S. market. The findings reveal that the U.S. and European mobile phone markets are fundamentally different. Firstly, while in Europe several parallel sales channels exist, the U.S. market is dominated by mobile operators that control access to the end customer. Secondly, in the U.S. market phones are generally sold heavily subsidized and bundled, and either under the operator brand or co-branding agreements. In addition, the U.S. market has historically split in...
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...Within the international business (IB) context there are very few academic studies that seek to analyze and compare the different geographical mobile phone markets from the viewpoint of competition. This thesis examines competition in the mobile phone markets of the United States and Europe in light of interviews and secondary data covering years 2002 - 2011. The framework used for the analysis is founded on concepts drawn primarily from industrial organization (IO) economics, IB theory and microeconomics. The first part of the thesis gives an overview of the U.S. and European mobile phone markets and the second part focuses specifically on Nokia, its actions and performance on the U.S. market. The findings reveal that the U.S. and European mobile phone markets are fundamentally different. Firstly, while in Europe several parallel sales channels exist, the U.S. market is dominated by mobile operators that control access to the end customer. Secondly, in the U.S. market phones are generally sold heavily subsidized and bundled, and either under the operator brand or co-branding agreements. In addition, the U.S. market has historically split in two technologies,...
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...infrared, camera with video recorder and MMS for sending and receiving photos and video, MP3 player, radio and GPS (Wikipedia 2001a). Due to globalisation and the introduction of new state of the art technology, newer and newer mobile phone is being produced everyday making competition among providers stiff. This in turn would result in the reduction of prices of mobile phone and thus will be beneficial for us as customers. The company chosen for this case study is Nokia Corporations through its local marketing agent, Eritel Telecommunication Trading Company (hereinafter called as Eritel). Nokia Corporations is a Finnish multinational corporation. It is engaged in the manufacturing of mobile devices and in converging Internet and communications industries. It is currently the largest manufacturer of mobile telephone and is listed as the fifth most valuable brand in the world. (Wikipedia, 2001b) According to Nokia (2002), the company has a Vision where everyone in the world can be connected. 1.2 Objectives The purpose of this report is to uncover my customer marketing experience...
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...together as team, therefore we had decided that Nokia product (7210) would be the choice for our research. I. COMPONENTS OF MARKETING PLAN: Company Background: The enormous telecommunication giant Nokia was founded by Fredrik Idestam in 1865. In 1992, Nokia is focused on wireless and wired telecommunications business. In 2002 Nokia launches its first 3G phone (Nokia 6650). In 2007 Nokia recognized as 5th most valued brand in the world. Nokia Siemens Network produce telecommunications network equipments, solutions and new internet services brand. Now Nokia had 112,262 employees in 120 countries, sales in more than 150 countries and global annual revenue of 51.1 billion Euros and operating profit of 8.0 billion as of 2007. It is the world's largest manufacturer of mobile telephones: its global device market share was about 39% in 2008. Nokia produces mobile phones for every major market segment and procedure, including GSM, CDMA, and W-CDMA. In the phone industry, Nokia are the world's best selling phone Nokia’s strengthened. It’s lead as the No. 1 wholesaler in the market during 2000 with shipments growing 66 percent over 1999. Some of the company's success was attributed to a strong second half in 2000 when 59 percent of sales happened. Table below which shows market share of Nokia: 1. Nokia (34.7%) 2. Motorola(15.5%) 3. Samsung(9.6%) 4. Siemens(8.8%) 5. Sony-Ericsson(6.4%) Competition in the market: Nokia will have lots of competition in the phone market...
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...Distribution channel structure Nokia understood that from big businesses to every day consumers they needed to offer a variety of packages to choose from. In having these different options people don’t have to immediately go with the most expensive phone with the highest rates attached to them. People are able to pick and choose if they want internet, 4g, 3g, Bluetooth capability, voicemail and a hodgepodge of other options. This variety allows customers to buy the phones they are looking for and not spend money on extra functions that they may never use based on Geographic World region – Asia Country – India Cities – Reach out maximum places Demographic Age – All age group Gender – Male, Female Income – All income groups Occupation – Every sector Religion – Irrespective of religion Psychographic Social class – All class of people Lifestyles – Urban, rural, and even far villages Behavioral Benefits – Quality Loyalty status – Strong Nokia has mainly targeted: Target Market for the Nokia Mobile Phone is between 20-50 years. Who wants to use something different. Teenagers and Business Class People. Targeting Strategy Business to Customer Nokia has a huge market; almost 5 billion people own a mobile phone in the world, and Nokia has about a third of all handsets sold. Nokias biggest customer group at the moment would have to be young people. It shows it Nokias ads, they are very colorful, fun and show connectivity. Today’s youth wants connectivity and social media in...
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...An Overview of Mobile Phone Distribution Channels in China February 2003 TABLE OF CONTENTS 1 CHINA MOBILE PHONE MARKET ...........................................................................2 2 CLASSIFICATION OF CURRENT HANDSET DISTRIBUTION CHANNELS ..................3 2.1 2.2 2.3 2.4 Conventional Handset Distribution Channels .....................................................................3 Conventional IT Distribution Channels...............................................................................4 Household Appliances Chains .............................................................................................4 Number of Distributors/Retailers ........................................................................................6 3 OPERATIONS OF CHINA HANDSET DISTRIBUTION CHANNELS ..............................5 3.1 3.2 3.3 Inter-Channel Relationship..................................................................................................5 Distribution Modes for GSM Handsets................................................................................7 Distribution Modes for CDMA/GPRS Handsets..................................................................8 4. 4.1 4.2 4.3 4.4 CHARACTERISTICS OF HANDSET DISTRIBUTION CHANNELS IN CHINA ........9 High-end vs Low-end Handsets ...........................................................................................9 Major cities vs medium-to-small cities ......................
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...INDUSTRIAL INTERNSHIP REPORT ON “A STUDY ON ENHANCEMENT OF DISTRIBUTION CHANNEL” A summer training project report submitted in partial fulfillment of the requirement of Post-Graduation Diploma in Management SUBMITTED BY: G.SRIVIDYA ROLL NO. 2T4-17 SUPERVISED BY: MRS.V.ANNAPURNA (ASST. PROFESSOR) SIVA SIVANI INSTITUTE OF MANAGEMENT SECUNDERABAD-500100 2014-2016 COLLEGE CERTIFICATE COMPANY CERTIFICATE ACKNOWLEDGEMENT I would take this opportunity to express my sincere gratitude to everyone for their valuable assistance and support during my Industry Internship Program (IIP) at Microsoft Mobiles Kakinada & Rajahmundry. I would like to heartily thank my company guide, Mr. Subair (Regional Sales Manager), at Microsoft Mobiles, Hyderabad for giving me an opportunity to work at Microsoft Mobiles and for his valuable guidance during the course of my internship. His inputs and suggestions have played a very crucial role at every stage in the development of the project and my knowledge as a whole. I would also like to thank corporate guide Mr.Satya Sundhar, (Area sales manager) and for helping me throughout and guiding me and Mr.Kiran, Team leader corporate guide, for teaching me and coaching me with each and every small detail required to successfully complete my project, their guidance at the grass root level and helping me overcome every little problem I faced. I would also like to acknowledge, Mrs.v.Annapurna (Asst. Professor) Siva...
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...analysis presented in this paper is as of May 2012. Part I: Company Background History of Obopay Obopay is one of the first companies to provide mobile payment solutions, integrating mobile technology with money services. The concept behind Obopay and the mobile wallet came to Carol Realini while traveling to Africa where she saw how many people despite not having access to basic banking services did own mobile phones (“TLP SV Speakers for Nov 4: Obopay and Venrock”). Founded by Carol Realini in 2005, Obopay was designed to make banking services as pervasive as mobile phones by partnering with financial institutions and mobile service providers. In the last seven years, Obopay has established partnerships with organizations such as Nokia, MasterCard, AT&T, Verizon, Essar, Union Bank of India, Yes Bank in India, Citibank and Société Générale (“Obopay Overview”). Today, Obopay has between 150 – 200 employees, the majority of which are located in Bangalore, India (O’Brien). Mission Statement Obopay’s mission statement is, “To provide a broad range of services including money transfer, mobile and online commerce, top up, bill pay, and disbursements,” (“Obopay...
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...Sales and Distribution Management Program Credit Course Code : PGPM : 3 : SL MM 606 Class of Sessions : 2012 : 30 Objective To make the student aware of issues related to sales force management focusing on ―selling‖ as a tool of Marketing Communication. The study of Channel Management offers an appreciation of logistics of information and goods, and exposes students to the types of systems required to optimize organizational efficiency through this function. Learning Objective: The aim is to prepare students to manage sales and channel teams for different types of selling, with the purpose of enhancing value based output and productivity Learning Outcomes: REFERENCE BOOKS Sales Management - Decisions, Strategies and Cases. 5ed Marketing Channels: A Relationship Approach Sales & Distribution Management Sales Management Sales and Distribution Management – Text & Cases Retailing Management – Text & Cases, 2 nd AUTHOR / PUBLICATION Richard R Still, Edward W Cundiff, Norman A, P Govoni- PCI Coughlan, 7th ed IUP Panda / Sahadev Havaldar / Cavale. Tata Mcgraw Hill - 2007 Pradhan, Swapna. Tata McGraw-Hill - 2006 e Faculty teaching the subject in all PGPM Campuses should refer Articles, Journals, Websites. Detailed Syllabus Introduction: Emerging Trends in S & D, Linking S & D Role & Responsibility of Sales person: - Cross Functional Linkages, Types of selling, Value Proposition, Lifetime Customer Value Creation- Key Accounts Management. Selling Skills: Communication...
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...Strategic Management Apple & Nokia Case Analysis 1. Table of Contents 1.0 EXECUTIVE SUMMARY OF APPLE AND NOKIA CASE 2 2.0 QUESTION 1 3 2.1 Competitive analysis of Apple and Nokia – who is stronger? 3 2.1.1 Competitive Analysis 3 2.1.1.1 SWOT Analysis 5 1.1.1 Strengths of Apple 6 2.1.1.2 Value Chain Analysis 9 2.1.1.3 Resourced Base View Tool 11 3.0 QUESTION 2 14 3.1 PESTEL analysis tool 15 3.2 Porter’s Five Forces 17 3.3 The Implications for Strategic Development are; 21 4.0 QUESTION 3 21 4.1 Critical Analysis Lessons from Apple’s risky but profitable strategy 21 5.0 REFERENCE: 23 1.0 EXECUTIVE SUMMARY OF APPLE AND NOKIA CASE Apple chalked some initial success with its invention of the Macintosh (Mac) computer but with the introduction of the Windows 1.0 from its rival company (Microsoft), it was faced with a threat in the industry. Their earlier strategic decision of not cooperating with rivals in the industry was seen as a weakness which Microsoft capitalized on to make their software available to other computer manufacturers for a license fee. Apple, diversifying into a new market (mobile telephone industry) with the introduction of user friendly products sought industry cooperation when it came to the launch of subsequent products including the iPod and iPhone. This strategic decision was inspired by its past...
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