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

Abstract

In mid 2009, Finland-based telecom giant, Nokia Corporation (Nokia) launched its Nokia Life Tools (NLT) service in the state of Maharashtra in India. Analysts viewed it as the company's bid to expand its rural base in the country. Targeted at the rural consumers, the NLT service offered a range of services in the areas of agriculture, education, and entertainment. In doing so, Nokia not only tapped the growing potential offered by the rural population but also sought to address the information gaps in the rural community.

Nokia began its focus on the rural markets in India in 2003 when it launched a mobile handset with features such as longer battery life, one-touch flashlight, etc., that catered to the needs of the rural consumers.

Over the years, it extended its support to the rural markets by launching several low-end phones that rural consumers found affordable. Taking its rural thrust forward, Nokia planned to offer value added services (VAS) through its mobile handsets to the rural consumers. Subsequently, in November 2008, the company launched a pilot program for testing its NLT service in Maharashtra. The results of the test phase showed that farmers and students, in particular, had benefited through this service. The farmers could access the latest information on crops, weather, market prices of seeds, fertilizers, and pesticides, etc. The students benefited by learning the English language and gaining local, national, and international general knowledge.

Nokia planned to roll out the NLT service in more states of India and also in other emerging markets.

Issues

The case is structured to achieve the following teaching objectives

• Study Nokia's emerging markets strategy with reference to India
• Analyze the Nokia Live tools initiative and understand how it contributes to its emerging markets strategy
• Understand the issues and challenges faced by global companies operating in emerging markets
• Understand the issues and challenges faced by companies in targeting the rural/ Bottom of the Pyramid (BoP) customers
• Understand the reasons for success of Nokia's strategy in India and discuss whether the company can leverage on this learning in other emerging markets

Contents

Introduction
Background Note
Targeting the Indian Rural Market
Nokia Life Tools
The Benefits
The Challenges
The Road Ahead
Exhibits

Keywords

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