Emerging Markets Strategy: Nokia Life Tools for Rural Markets
|
Case Code: BSTR349 Case Length: 23 Pages Period: 2003-2009 Pub Date: 2009 Teaching Note: Not Available |
Price: Rs.400 Organization: Nokia Corporation Industry: Mobile Phones Countries: India Themes: Emerging Markets |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Targeting the Indian Rural Market
Nokia had always been at the forefront in coming out with products that would cater to the needs of the Indian consumers. While it focused on launching products for the urban market, it also focused on serving the rural population. In 2002, Nokia announced its emerging market strategy under which it planned to lower the initial costs of owning a mobile phone in addition to lowering the operating costs...
Nokia Life Tools
The Pilot Program
Taking its rural thrust forward, Nokia planned to offer VAS through its mobile handsets to the rural consumers. The company felt that adding content that would benefit the rural consumers while offering the mobile handset at an affordable price would help it further tap the rural market...
Launching Nokia Life Tools
Buoyed by the success of the NLT pilot program, Nokia launched the service commercially in Maharashtra, on June 12, 2009. The company signed a Memorandum of Understanding (MOU) with the Maharashtra State Agriculture Marketing Board (MSAMB)...
The Benefits
Experts lauded Nokia for launching VAS (which, till then, had been mostly offered to the young urban customers) through its mobile phone for the rural people. According to Naresh Priyadarshi (Priyadarshi), head of Synovate Business Consulting India , "VAS will definitely be the driving factor, but what is important is the end-offering customized to appeal to the target segment. It is very important to understand the needs of the rural population to ensure that the services are aligned on those lines. Vernacular content is already a differentiating factor, considering the wide language diversity in the rural population which a lot of handset manufacturers are already exploiting."..
The Challenges
One of the biggest challenges that Nokia faced with its NLT service was in offering timely and accurate information to the subscribers, according to experts. Some experts also felt that the growth of this service would be limited since it was offered only in some areas such as agriculture, education, and entertainment...
The Road Ahead
As of 2009, Nokia was the dominant player in the Indian mobile phone market. Experts felt that its product innovations coupled with its ability to appeal to various segments of consumers were the reasons for its success...
Exhibits
Exhibit I: Business Week/Interbrand List of 100 Best Global Brands
Exhibit II: Nokia's Worldwide Financials
Exhibit III: A Note on the Indian Rural Mobile Phone Market
Exhibit IV: Top Ten Most Trusted Brands in India
Buy this case study (Please select any one of the payment options)
| Price: Rs.400 |
Price: Rs.400 | PayPal (9 USD) |
