Table of Contents
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
People Contacted 19
Terms and Abbreviations used
Nokia - Nokia India Pvt. Ltd.
RDSS – Redistribution Stockist Supplier
HCLI – HCL Infosystems
Dealers – Mobile phone retailers
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In 1999, the Government of India announced a new telecom policy. This policy planned to provide telephones on demand by 2002.
Among other things, the policy allowed unrestricted private entry into almost all mobile service sectors. The government allowed cellular mobile service providers to share infrastructure with other operators. It also allowed existing operators to migrate from fixed license fee to one-time entry fee with revenue sharing. This policy helped many private operators to break even faster. By 2001, the demand for mobile services was growing well. The private companies concentrated on providing basic telephone services to consumers. The number of mobile phones crossed five million by 2001 and doubled to 10 million in 2002. Since then, India has reached almost 35% teledensity with metros having 100% teledensity and over 450mn mobile connections across India.
Nokia in India
Nokia entered the Indian market in 1994. The first ever GSM call in India was made on a Nokia 2110 mobile phone on its own network in 1995. When Nokia entered India, the telecom policies were not conducive to the growth of the mobile phone industry. Nokia also had to face tough competition from other powerful global players like Motorola, Sony, Siemens and Ericsson.
Nokia as a company has expanded at a very fast pace in India. Over the past decade, Nokia has captured nearly 60% of India’s $5.6 billion handset market, of which about 25% are rural consumers. In 2006, Nokia set up a manufacturing facility in India, 2006, which allows it to manufacture and sell low-cost phones. It also adapted its phones to suit the local conditions. To further increase its popularity, the company has increased its number of customer care centers and caters to rural India with vans staffed with sales reps. It has also introduced social innovations such as access to crop prices, weather forecasts, and English lessons.
However due to staunch competition the market share has decreased slightly in 2006. However it is expected to grow as it has plans to expand in the rural market. India has around 95,000 outlets that sell mobile phones. In around 50,000 of them only one brand is available that is Nokia.
Achievements of Nokia:
• Nokia Company released first mobile with Hindi menu in 2000
• They have come up with Wi-Fi mobile which is called Nokia communicator in 2004
• In 2006 this company has started huge mobile manufacturing plant in Sriperambathur nearby Chennai.
• Nokia Company has joined with Malayalam Manorama to launch first India’s vernacular News.
Nokia distribution structure in India
When it comes to distribution, Nokia's lead is clear. Today, India has some 1,10,000 outlets that sell mobile phones. Out of these, according to companies own conservative estimates, 50,000 stores have only one brand available – Nokia.
Nokia started distributing its phones through a partnership with HCLI (formerly Hindustan Computers Ltd.), which had already...