nokia approach

8/12/2019 Nokia Approach

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CONFIDENTIAL


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Rajneesh Kumar Rohit anthia Rahul Sharma

Rajendra Mishra Riya Verma

Presented by


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Presentation nclude

Why Nokia ?

History

Mission statement

Brand personality

Market Segmentation

Target Market

Positioning

4Ps

BCG Matrix

SWOT analysis


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Nokia Corp orat ion is a Finland basedmultinational companyHead q u arter -- Keilaniemi, Espoo , cityneighboring Finland's capital Helsinki.

CEO -- Olli-Pekka Kallasvuo Chairman -- Jorma Ollila .

Founder -- Fredrik Idestam in 1865 .

Nokia started as a pulp, rubber and cablemanufacturer
http://en.wikipedia.org/wiki/Olli-Pekka_Kallasvuohttp://en.wikipedia.org/wiki/Jorma_Ollilahttp://en.wikipedia.org/wiki/Fredrik_Idestamhttp://en.wikipedia.org/wiki/Fredrik_Idestamhttp://en.wikipedia.org/wiki/Jorma_Ollilahttp://en.wikipedia.org/wiki/Olli-Pekka_Kallasvuohttp://en.wikipedia.org/wiki/Olli-Pekka_Kallasvuohttp://en.wikipedia.org/wiki/Olli-Pekka_Kallasvuo


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Nokia is world third richestcompany


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LOGOS

NOKIA Company logo, 1966.

The NOKIA

"arrows" logobefore itsConnecting Peoplelogo.

"ConnectingPeople" slogan,invented by OveStrandberg.
http://en.wikipedia.org/wiki/Image:Nokia_Connecting_People.svghttp://en.wikipedia.org/wiki/Image:Nokia_arrows_logo.svg


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Present Logo


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HISTORY OF NOKIA

It also provides the services for network operators.

Company recorded revenues of 41,121 Million in 2007

about 20.3% increase from 2006.

Company offers its products in 150 countries. Its HQ is in

Espoo, Finland and employees about 68,500 people .Other

company of Nokia are in China , Hungry , Germany , Koreaand India


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Financial Revenue 50.722 bn (2008)

Operating income 4.966 bn (2008)

Net income 3.988 bn (2008)

Total assets 39.582 bn (2008)

Total equity 16.510 bn (2008)

Employees 120,827 in 120 countries (June30, 2009)


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Nokia Industries Paper products Tires (car and bicycle ) Footwear (including Wellington boots ) Communications cables Consumer electronics such as televisions

Personal computers Electricity generation machinery Military technology and equipment Robotics Capacitors Plastics Aluminium Chemicals
http://en.wikipedia.org/wiki/Paperhttp://en.wikipedia.org/wiki/Tirehttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Bicyclehttp://en.wikipedia.org/wiki/Footwearhttp://en.wikipedia.org/wiki/Wellington_boothttp://en.wikipedia.org/wiki/Cablehttp://en.wikipedia.org/wiki/Consumer_electronicshttp://en.wikipedia.org/wiki/Televisionhttp://en.wikipedia.org/wiki/Personal_computerhttp://en.wikipedia.org/wiki/Electricity_generationhttp://en.wikipedia.org/wiki/Military_technology_and_equipmenthttp://en.wikipedia.org/wiki/Roboticshttp://en.wikipedia.org/wiki/Capacitorhttp://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Aluminiumhttp://en.wikipedia.org/wiki/Chemical_substancehttp://en.wikipedia.org/wiki/Chemical_substancehttp://en.wikipedia.org/wiki/Aluminiumhttp://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Capacitorhttp://en.wikipedia.org/wiki/Roboticshttp://en.wikipedia.org/wiki/Military_technology_and_equipmenthttp://en.wikipedia.org/wiki/Electricity_generationhttp://en.wikipedia.org/wiki/Personal_computerhttp://en.wikipedia.org/wiki/Televisionhttp://en.wikipedia.org/wiki/Consumer_electronicshttp://en.wikipedia.org/wiki/Cablehttp://en.wikipedia.org/wiki/Wellington_boothttp://en.wikipedia.org/wiki/Footwearhttp://en.wikipedia.org/wiki/Bicyclehttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Tirehttp://en.wikipedia.org/wiki/Paper


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Nokia products Military communications and

equipment Message device system

ADSL modems

Digital television (digital set-topboxes )

Personal computers (1980)
http://en.wikipedia.org/wiki/Set-top_boxhttp://en.wikipedia.org/wiki/Set-top_boxhttp://en.wikipedia.org/wiki/Set-top_boxhttp://en.wikipedia.org/wiki/Set-top_boxhttp://en.wikipedia.org/wiki/Set-top_boxhttp://en.wikipedia.org/wiki/Set-top_box


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Mini laptops

On August 24, 2009, Nokiaannounced that they will be enteringthe PC business with a high-end minilaptop called the Nokia Booklet 3G

Internet Tablet

GPS products Global PositioningSystem

Nokia products
http://en.wikipedia.org/wiki/Netbookhttp://en.wikipedia.org/wiki/Netbookhttp://en.wikipedia.org/wiki/Nokia_Booklet_3Ghttp://en.wikipedia.org/wiki/Nokia_Booklet_3Ghttp://en.wikipedia.org/wiki/Netbookhttp://en.wikipedia.org/wiki/Netbook


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NOKIA Accessories Carrying and styling: carrying cases,

phone jewellery Car solutions: car kits, car phones, mobile

holders Headsets: audio adapters, bluetooth

headsets, wired headsets, loopsets Memory cards and cables Music related products: speakers Navigation: navigation kits, car navigation

Home and office: desk stands, imaging,wireless digital pens, wireless keyboards,mobile TV receivers

Power: batteries, chargers, charger

adapters


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Concept Phones Nokia is working on future of mobile

with their new concept Nokia"Scentsory". This new mobile device uses the

sense of smell , sight , hearing , andtouch to create a multiscensoryenvironment for the caller.

Scentsory would be able to detectsmells as well as radiate colors,lighting, and temperature of the callerwith Dual screens and hiddencamera


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Time

Growth

Maturity

Decline

Introduction

Sales curve

The Concept Phones

Nokia E- series

Nokia Symbian& N- Series

Nokia 30 & 40 Serie

Product life cycle of NOKIA


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Joint Venture Nokia Siemens Networks is a joint venture

between Nokia and Siemens AG on 19 June 2006 . Nokia Siemens Networks services division is

based in INDIA

Nokia Siemens Networks has operations insome 150 countries They merge their mobile and fixed-line

phone network equipment businesses tocreate one of the world's largest network

Both company has a 50% stake The companies predicted annual sales of

16 bn and cost savings of 1.5 bn a year by2010.
http://en.wikipedia.org/wiki/Siemens_AGhttp://en.wikipedia.org/wiki/June_19http://en.wikipedia.org/wiki/2006http://en.wikipedia.org/wiki/1000000000_(number)http://en.wikipedia.org/wiki/1000000000_(number)http://en.wikipedia.org/wiki/2006http://en.wikipedia.org/wiki/June_19http://en.wikipedia.org/wiki/Siemens_AGhttp://en.wikipedia.org/wiki/Mergers_and_acquisitions


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Acquisitions

Since December 1997, Nokia has acquired 37companies or businesses

On August 5, 2009, Nokia

acquire Cellity, a mobile softwarecompany

In September, 2008, Nokiaacquired OZ Communications ofCanada
http://en.wikipedia.org/wiki/Mergers_and_acquisitionshttp://en.wikipedia.org/wiki/Mergers_and_acquisitionshttp://en.wikipedia.org/wiki/Mergers_and_acquisitions


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In July 10, 2008, Nokia bought Navteq , a U.S.-based supplier for a price of $8.1 billion

Acquisitions

In September 2007, Nokiaacquire Enpocket , a supplier ofmobile advertising technology

In July 2007, Nokia acquiredTwango
http://en.wikipedia.org/wiki/Navteqhttp://en.wikipedia.org/wiki/Mergers_and_acquisitionshttp://en.wikipedia.org/wiki/Enpockethttp://en.wikipedia.org/wiki/Technologyhttp://en.wikipedia.org/wiki/Twangohttp://en.wikipedia.org/wiki/Twangohttp://en.wikipedia.org/wiki/Technologyhttp://en.wikipedia.org/wiki/Enpockethttp://en.wikipedia.org/wiki/Mergers_and_acquisitionshttp://en.wikipedia.org/wiki/Navteq


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Net Sales 2009Nokia Mobile Phones

net sales by region

Europe& Africa46%

Americas35%

Asia Pacific18%


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Statistics World's largest manufacturer of mobile

phone since 1998

Market share -- 38% in Q2 2009

Sales volume 210 million units in 2008(total market volume 520 million units)

employed 39,350 people in researchand development, representingapproximately 31% of the group's total

workforce
http://en.wikipedia.org/wiki/Market_sharehttp://en.wikipedia.org/wiki/Workforcehttp://en.wikipedia.org/wiki/Workforcehttp://en.wikipedia.org/wiki/Market_share


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Number of mobile subscribers in INDIA has crossed

the 250 million mark. Mobile phone production in India was expected to

grow from 51 million units to 110 million units by 2011.

Hand set Market Share

Nokia: 49.5% Sony: 10.1% Samsung: 12% Motorola: 9.9%

Others: remaining


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Marketing Strategies Nokia Focused on Handset Manufacture only

Enhance Product Portfolio Increase Distribution Channels Adjust Preferences for specific markets

Customer Satisfaction Focused on Replacement Increase Commitment to Emerging Market Improve Collaboration on Designs Ensure Accountability and Quality Aggressive Pricing


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Macro Enviroment of NOKIA

POLITICAL FACTOR:

ECONOMIC FACTOR :

SOCIAL FACTOR :

Nokia has been a member of the UnitedNations Global Compact since 2001

Nokia reported spending $5.4 million on lobbyingin the U.S. in 2007 and $2 million on lobbying in2008.

Nokia had to change its functions from singlemarket to global market due to collapse ofRussian Federation .


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TECHNOLOGICAL FACTOR:

LEGAL FACTOR:

Patents right on technology

ENVIRONMENTAL FACTOR :

Environmentally ethical considerationsamongst suppliers.Life cycle impact of NOKIA throughout the

supply chain

Improvement or Changes in technology

Macro Enviroment of NOKIA


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Segmentation Strategy

Geographic:

o Nokia immediate geographic target is ruralIndia.

o The total targeted population is estimatedat 100 million.

Demographic:

o Male and female.o Ages 25-50, this is the segment that

makes up 80% of the Nokia mobile phone

market


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Consumer Segment

Light Users

Medium Users Heavy Users


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Stars QuestionMark

CashCows Dogs

BCG Matrix of NOKIA

Premium SeriesN-Series

Entry Level N-Gage


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Nokia uses a pricing strategy thatbest suits the product .

Market Penetration- Nokia 1100. Market Skimming- N-95 .

Hence, The Strategy which wasused for N-Series & E-Serieswas Market Skimming.


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Est imating c os t Exp er ien ce Curv eTh eor y :

P1

P2

P3

Price /Cost

Time Period / Units Produced

Experience Curve

T1 T2 T3


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Nokia has opened its retail outlet NokiaPriority as well as many authorized dealersat various places.

Consumer

Manufacturer Dealer


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AIDA in Nok ia : A At ten t ion : attract the attention of the

customer.

I Int erest : raise customer interest bydemonstrating features, advantages, and benefits.

D Desire : convince customers that they want

and desire the product or service and that it willsatisfy their needs.

A A c t i o n : lead customers towards taking

action and/or purchasing.


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Supply Chain Management

Channels:Nokia > Distributer >> Whole seller>>> Retailer >>>> Customer

P d P i


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Disco u n t s are provided to onlineNokia purchasers through Nokiadiscount coupons or coupon codes

C o m m i s s i o n is also provided toretailers on the sale of every Nokiacell phones and accessories.

Product Promotion Advertising: Through TV, Sign boards, Bill boards,Radio, Newspaper, Broachers, Posters, Dummies anddisplay stands


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Public Relations ( PR ) Nokia has strong PR. They keep on doing some or the

other new events, programmes and publicity, so as tokeep up with the brilliant image of the company andalso to enhance the brand equity.

Direct Marketing : Nokia does not perform Direct Sales

activities on its official websitewww.nokia.com.

Nokia use DEMO style of Direct Marketing.

Nokia does not use Direct Mail orTelemarketing styles of Direct Marketing .

P k i


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During 2007, 15,000 ton packagingmaterial has been saved by usingsmaller packaging.

Nokia have reduced the amount of printed material inside the box,

In 2007 Nokia began to increase the

level of recycled content

Packaging Packaging is important because it protects products as

they make their way from factory to customers.

Attractive, Good & Secure Packing


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Branding Decisions :

Nokia follows Umbrella branding N Series& E SeriesLogo shows their brand personality Nokia focused on building customer,relationship and trust

Building friendship and trust is the heartNokia brand

Branding Nokia built its brand with high-end multimediahandsets for upscale buyers and low-pricedphones for emerging countries.

Q li


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Nokias key quality targets are:

For Nokia to be number one in customerand consumer loyalty .

For Nokia to be number one in productleadership .

For Nokia to be number one in operationalexcellence .

Quality Quality is at the heart of Nokias brand promise, very

human technology .

E gi g M k t


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Emerging Markets 1. Break out of cities to rural

areas: Focus on areas, where thecost of building wirelessinfrastructure is more cost effectivethan in building a fixed line(China/India)

2. Focus on Youth: Imaging andgames (China/India)

Lifecycle


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Lifecycle Globally Nokias market is at maturity, where as in

Ind ia i t i s s t i l l in th e Grow th s tage .

Globally Placed

Here In India

Placed here Rs.

Time

Product life cycle


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THREATSChina Mobile made Copy Of NOKIA

Sets.

Looking mainly at the competitionthat are taking away Nokias marketshare.

Orange, Vodafone and O2 and many

other operators are globally sellingtheir own brands of phone.

Higher import charges.


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Production Unit :NetworksTechnology

ChinaFinlandIndia

M obil e Devices andEnhancements

BrazilChinaFinlandGreat Bri tainHungaryIndiaMexicoRomaniaSouth Korea


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nokia approach

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