Global Shared Feature: Collect the Information

When Nokia wanted to develop a mobile handset especially suited for Indian conditions, it conducted a market research wherein senior executives of the company interacted with customers and studied the usage patterns of mobile handsets in India. With information, insights, and a deep understanding developed through extensive consumer research, Nokia developed its 1100 model. The model offered the benefits of an integrated torch, dust protection through a sheath-covered key pad and a slip-free grip along with a number of software features, which enhanced the handling experience of handset and made it the largest selling mobile handset in India.

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Nokia, one of the first companies to enter the Indian market for mobile handsets, through its high quality and a wideproduct range became the undisputed market leader. However, instead of relying on importing products with technologies proven in the European and American markets, it went on to study the specific needs of the Indian customers through market research and developed products based on customer insights. As a result, the Nokia 1100 model, the first model to be designed considering Indian conditions, proved to be a big hit and helped to maintain Nokias dominance in the Indian market. Nokia launched the 1100 model after months of market research and studying the emerging new market carefully. As Nokia foresaw the mobile phone becoming a mass-market product, the senior executives of the company interacted with customers, studied the usage patterns of mobile handsets, and conducted market research. They followed the customers into their homes and workplaces to observe things such as how people hold their phones, how they charge them, and the difference in their interaction with their phones based on their educational background. Information, insights and a deep understanding developed through extensive consumer research indicated that customers, particularly in the rural areas, occasionally use the mobile handset as mini-torchlight in dark during Indias frequent power outages. Consumers also use the handset in very dusty conditions that often prevail in many parts of the country and they tend to attribute dust accumulation in the handset as indicative of poor quality and low functional performance. They also became knowledgeable about the handling of mobile phones in sweaty palms due to the hot and humid weather in India. Based on an understanding of customer's specific needs, Nokia designed their model- 1100 handset for the mass market, offering the benefits of an integrated torch, dust protection through a sheath-covered key pad, and a slip-free grip. Apart from the unique physical characteristics, which were built-in keeping in mind Indian conditions, Nokia also incorporated several features that enhanced the handling experience of the model. Apart from introducing a user interface in Hindi, which is spoken by about 23 percent of Indias population, Nokia included software in seven regional languages for non-Hindi speakers and added ring-tones of patriotic songs. Also, a long-life batterybuilt for more advanced models that have increased power needs for their feature was provisioned for the model, which ensured a long standby and talk-time between charges. The handset was advertised as Made for India highlighting the Indian conditions and product benefits. One key challenge of the advertisement was the portrayal of the fit of the product with the Indian lifestyle instead of highlighting the technical benefits as the research showed that mobile phones were moving from being an urban product to a mass-market product. Accordingly, they highlighted the three core benefits of the phone dust-resistant, torchlight and an anti-slip gripin the ad storyline, which was typically Indian and captured the rustic setting. Even though the Nokia 1100 was not the cheapest phone in the market, it offered plenty of features for a comparable price range and quickly became one of the largest selling models in the Indian GSM-handset market. Subsequently, the handset was also introduced in other Asian and African markets and went on to sell more than 200 million units, making it one of the most successful product launches.

Sources Abhijit Joshi, In the top spot, http://www.indiabrandequityfund.org Bruce Einhorn and Nandini Lakshman, Why Nokia is No. 1 in India, China, Businessweek, http://inhome.rediff.com/money/2006/mar/23nokia.htm; http://www.answers.com/topic/nokia-1100?cat=technology Neha Kaushik, The desi appeal, The Hindu BusinessLine, http://www.thehindubusinessline.com/catalyst/2004/05/06/stories/2004050600100300.htm, May 6, 2004 Nokia official Web site: http://www.nokia.co.in/A4537052 Rajeev Dubey, No. 1 Nokia India Thinking Local, Businessworld, http://www.businessworldindia.com/nov0804/consumer_durables.asp T. R. Vivek, India Inc gung-ho about middle India, Business Standard, http://inhome.rediff.com/money/2004/aug/16spec.htm

Take home assignment

As a take-home assignment, the students might be given questions, which require application of the concepts in the chapter to the case. A few tentative questions for take-home assignment could be as below:

Nokia executives, in the course of collecting the data interacted with customers and studied the usage patterns of mobile handsets. Based on your understanding of the chapter, what could be the other different research approaches they could have followed for data collection?

Explain, with reference to development of Nokia 1100 model, how Nokia overcame some of the barriers against the use of market research.