The Nokia Success

By most accounts, India is among the world's fastest-growing markets for mobile phones. The country has some 270 million subscribers after China and adds 10 million each month. Nokia's market share in India is as high as 70%.
How did Nokia take the lead in the Indian mobile phone market, ahead of companies such as Ericsson, Motorola, LG and Samsung? According to me, Nokia's strategy combined focusing on the mobile phone market, establishing crucial distribution partnerships, making early investments in manufacturing and brand-building, and developing innovative product features -- such as mobile phones that could double as flashlights.
Nokia was completely focused on mobile phones; others had consumer electronics, home appliances, etc. They invested before everybody else -- in the brand, in people, in distribution
Nokia started distributing its phones through a partnership with HCL (formerly Hindustan Computers Ltd.), which had already built an extensive network for its own products. Recently, Nokia has decided to supplement some markets with its own distribution efforts and some markets jointly.
The other big investment area that has set Nokia apart from other telecom firms is manufacturing facilities and R&D. Nokia has several R&D centers and labs in India. More importantly, it established a $150 million handset manufacturing facility in Chennai in 2005.
Building the Brand…………………..
Another crucial aspect of Nokia's investment strategy focused on building its brand. The Nokia range available in India extends from Rs 1499 at the lower end to Rs 45,000 at the high end. Marketing theory says a brand cannot be all things to all people. This is the reason that Hindustan Unilever, with quality built around its brand, refused to match Nirma, which came out with a cheap detergent.
Instead, Nokia is promoting platforms -- music, for instance. With this approach, one model can replace another while the branding remains the same, or is extended slightly with the E series and N series. "Nokia has done well to focus on the 'mother' brand rather than on 'another' brand. Nokia has understood the Indian market by across all segments: the high, the middle and the low end.
In fact some of its models -- the handsets, not the strategies -- are unique to India having a torch built into a mobile phone is a distinct and tangible benefit. Innovation is something which consumers reward in this market.
A cell phone is a huge style icon for the Indian masses: 62% of Indians buy a cell phone because of its looks. That is something that is not true anywhere else in the world. It's as huge a style statement as your watch, pen, cufflinks or bag. Hence, the brand matters quite a lot.
"It is also a driver of a lot of economic activity. It is also the ultimate entertainment device. You have music on it now, in terms of radio and stored music. The day is not far when you will see movie clips and TV.
Being number one also comes with the responsibility to expand the market. You have to show strong innovation and strong initiatives. You have to look at the future and say, 'this is where the future will be and this is how we have to plan for it.'
So it’s a great challenge for Nokia to retain its position.