Nokia

Presentation Include Ø Introduction

Ø Strategies Adopted

Ø Brand Personality

Ø Competitors

Ø Marketing Mix

Ø Issues

Ø Product Mix

Ø SWOT Analysis

Ø Macro Environment

Ø CSR

HISTORY OF NOKIA Ø It also provides the services for network operators. Ø Company recorded revenues of 41,121 Million € in 2007 about 20.3% increase from 2006. Ø Company offers its products in 150 countries. Its HQ is in Ø Espoo, Finland and employees about 68,500 people . Other Ø company of Nokia are in China , Hungry , Germany , Korea and India

Introduction Ø Evolution of Mobile Ø History Ø Mission Ø Vision Ø Why Nokia on Top ?

History

A leading player in mobile communications all over the world, NOKIA first started operations in the early 1980s

NOKIA Company logo. Founded in Tampere in 1865, logo 1966.

Finnish Rubber Works Ltd, Helsinki:1898

The NOKIA "arrows" logo before its Connecting People logo.

"Connecting People" slogan, invented by Ove Strandberg.

History of NOKIA Ø Nokia is a Finland based company, incorporated in 1967. Ø Nokia started of as a pulp, rubber & cable manufacturing company by Knut Fredrik Idestam in 1865. Ø Finnish Rubber Works acquired Nokia Wood Mills Telephone & Telegraph cables. Ø Nokia Corporation created -

1967 - paper

History of NOKIA… Ø Nokia began developing the digital switch (Nokia DX 200) which became a success. Ø In 1970, Nokia started taking an active interest in the power & electronics businesses. Ø In 1987, consumer electronic became Nokia’s major business. Ø 1991 Nokia - agreements to supply GSM networks - nine European countries.

History of NOKIA… Ø Between 1992 & 1996, the company exited from the rubber and cable businesses Ø August 1997 Nokia - GSM systems to 59 operators in 31 countries. Ø It’s the leading manufacturer of mobile devices. Ø Nokia offers a wide range of mobile devices with the experience in music, video, imaging,

Some First for NOKIA in INDIA

Entered in 1994 Nokia 2110 – first ever GSM call Operating office – New Delhi, Mumbai, Kolkata, Bangalore, Hyderabad, and Ahmadabad R&D facility in Bangalore, Hyderabad and Mumbai 1995 – First mobile phone call made in India on a Nokia phone on a Nokia network. 1998 – Saare Jahaan Se Acchha, first Indian ringtone in a Nokia 5110

Some First for NOKIA in INDIA…. 2004 – Saral Mobile Sandesh, Hindi SMS on a wide range of Nokia phones 2004 – First Wi-Fi Phone- Nokia Communicator (N9500) 2005 – Local UI in additional local language 2006 – Nokia manufacturing plant in Chennai 2007 – First vernacular news portal

Mission “In a world where everyone can be connected, we take very human approach to technology” Connecting is about helping people to feel close to what matters. Wherever, whenever, Nokia believes in communicating, sharing, and in the awesome potential in connecting the 2 billion who do with the 4 billion who don’t. If we focus on people, and use technology to help people feel close to what matters, then growth will follow. In a world where everyone can be

Vision The Vision of Nokia: “Our vision is a world where everyone can be connected. Our vision is to ensure that 5 billion people are always connected at any given point and to achieve 100 fold more network traffic”

Why NOKIA on Top ? Developing affordable mobile devices that can contribute to increased economic growth and quality of life Constant innovation. Focusing on human technology; enhancing communication and exploring new ways to exchange information. That’s why Nokia will never stop finding new ways of connecting people.

Brand Personality Ø Nokia focused on building customer, relationship and trust. Ø Building friendship and trust is the heart Nokia brand. Ø Logo shows their brand personality.

Marketing Mix : 4Ps Product Ø Variety In every series of Nokia there are large number of sets thus large variety. e.g. entry level include 1200,1208,1100,1110,1110i,1112 etc Ø Quality Nokia gain brand personality and market

4Ps…. Ø Design Nokia sets are of various design such as Flip sets , Flat sets, Slide sets , Sets with rotating camera etc Ø Features Each set of Nokia has its own features . The models of Nokia are

4Ps…. Ø Brand Name Brand name is written on each set. Ø Packaging On packaging of Nokia set detail information about the set is given and packing is made attractive by picture. Each set has its own booklet with information about its features.

Price Ø Price targeting both the ends Ø Price range from Rs999 to RS 42700 Ø Pricing strategy Ø Nokia also offer cash allowances.

Promotion

Ø Advertising: qThough TV , Sign boards , Bill boards , Radio and Newspaper qBroachers , Posters ,Dummies and display stands Ø Personal selling: qBy product training to Distributer.

Place Ø Channels Nokia > Distributer > Whole seller > Retailer > Customer Ø Coverage Nokia is widely available all over INDIA

Product Mix of Nokia • 1000–9000 series • Nokia 2000 series – Basic series

• Nokia 3000 series – Expression series

• Nokia 5000 series – Active series

• Nokia 6000 series –

Classic Business series

• Nokia 7000 series –

Fashion and Experimental series

• Nokia 8000 series – Premium series

• Nokia 9000 series –

Macro Environment of Nokia

Ø POLITICAL FACTOR

Ø ECONOMIC FACTOR Ø SOCIAL FACTOR Ø TECHNOLOGICAL FACTOR Ø ENVIRONMENTAL FACTOR:

Segmentation Strategy Ø Geographic: o Nokia immediate geographic target is rural India. o The total targeted population is estimated at 100 million. Ø Demographic: o Male and female. o Ages 25-50, this is the segment that makes up 80% of the Nokia mobile phone market according to the NOKIA

Consumer Segment • Light Users • Medium Users • Heavy Users

Heavy Users Our target segment is heavy users Ø We chose this Category because heavy user have ability to buy our product. Ø In this category users like latest products with latest features. Ø Heavy users want something new and stylish.

Target Market Nokia has mainly targeted Ø Target market for the Nokia mobile phone is between ages 20-40. Ø Who want to use Something Special Ø International Students Ø Teenager and Business class

POSITIONING OF Nokia Nokia has created a distinct position in customer mind by Ø Nokia logo…..> Ø Slogan……> the future”

“Know our past. Create

Ø Latest Ring Tone

Competitors Many Competitors in this area • • • • • •

Motorola Sony Ericsson Samsung LG Sharp Panasonic

% Share

• • • • •

Nokia 37.2% Motorola 17.3% Samsung 9.8% Siemens 8.5% SonyEricsson5.2%

RIVALRY AMONG COMPETITORS • INDUSTRY GROWTH RATE: The industry has grown

by just 10% during 2007. This is down from the 23% growth rate seen in 2006. • CONCENTRATION AND BALANCE: The major players are BenQ-Siemens, LG, Motorola, Samsung and Sony Ericsson. • INFORMATIONAL COMPLEXITY: Devices are becoming more complex and getting features (picture, audio, video) that are outside the core competencies of traditional manufacturers.

BARGAINING POWER OF BUYERS • BUYER INFORMATION: Buyers have comparative

information about the product in terms of price and features.

• BUYER CONCENTRATION: Network operators are

relatively concentrated and large service providers such as Orange and Vodafone have high bargaining power.

• SWITCHING COSTS: Individual buyers have low switching costs and are price or feature sensitive.

• PRODUCT DIFFERENCES: Low degree of product

differentiation and any new feature or technology is quickly

BARGAINING POWER OF SUPPLIERS •

SWITCHING COSTS: A large number of suppliers for non critical components. For critical components suppliers work closely with companies as they involve joint development of specialty inputs and subsystems.

•

IMPACT ON DIFFERENTIATION : Companies could switch suppliers for non critical components but are closely tied to them for critical components and sub-systems.

•

THREAT OF FORWARD INTEGRATION: Suppliers do not pose any credible threat of forward integration even though

THREAT OF NEW ENTRANTS -ENTRY BARRIERS • • • • • •

PROPRIETARY PRODUCT DIFFERENCES: Technology and product designs are protected by patents. BRAND IDENTITY: Powerful brand identity of the existing players developed through advertising and product excellence. ECONOMIES OF SCALE: High fixed costs means that volume is essential to companies. CAPITAL REQUIREMENTS: Activities such as R&D and advertising requires large capital commitments. EXPECTED RETALIATION: Existing competitors have the financial clout to deter new entrants. ACCESS TO NECESSARY INPUTS: Suppliers work closely with existing companies and therefore critical components may only be available at a premium.

Basis of Competitive Advantage • Product competitiveness : Nokia profitably competes in • • • •

all mobile device segments from entry-level to high-end. It has the broadest product portfolio in the market. Customer satisfaction : Nokia uses customization to gain greater customer satisfaction R&D effectiveness: Nokia spent about USD 3.4 Billion on R&D. Demand-supply network alignment : Nokia captures its potential upside in high-demand situations by aligning its demand-supply network.  End-to-end capability : Nokia systematically leverages its end-to-end capability by integrating mobile devices, applications and infrastructure

STRATEGIES

• Price Strategy • Market Strategy Push Pull • Battery Strategy

PRICING STRATEGY

• • • • •

Pricing Strategy Matrix Premium Pricing Penetration Pricing Economy Pricing PRICE Skimming

BATTERY ISSUE Three types of batteries are currently available for consumers • Original Nokia batteries. • Batteries manufactured by third parties sold under own brand or no-brand • Counterfeit batteries

Nokia Batteries Meet ALL International Safety Standards • Continuous control of the production and intensive • •

product testing. Original Nokia batteries comply with all international standards, such as UL2054, UL1642,IEC 60950 etc. Manufactured with safety circuit, highest quality materials, correctly designed safety vent and clean, stable manufacturing process.

Cases of Exploding Batteries • 30-40 cases globally of exploding non-original • • •

batteries. Primary root cause of non-original battery failure is internal short circuit in the cell. Vast majority of short circuits caused by “traumatic event” (i.e., dropping the phone) which jeopardizes integrity of poorly manufactured batteries. In each and every case, the battery in question has proved to be a non-original battery (either third-party or counterfeit) which did not include industry standard safety measure.

Nokia’s Response to Faulty & Illegal Batteries • Nokia took all possible actions to ensure customer • •

safety and satisfaction. Launched customer service program to help consumers and retailers recognize non original batteries. Replaced the batteries that were manufactured during that period with original one & that too free of cost.

SWOT ANALYSIS STRENGTHS

• The Leader in the Industry • High quality and professional team in the • • •

HRD Dept and a very strong R&D Unit. Strong Financial Backing. Great features of Nokia Handsets. Strong Customers Relation.

WEAKNESS • Heavy in weight ( Most Models ). • Expensive than other competitors. • Big in Size ( Difficult Handling )

OPPORTUNITIES

• Targeting right customers at right time. • Increase their presence in the CDMA market, which • •

they are just entering, as well as 3G and Edge. Can increase their Growth rate by reducing their profit ratio. Tax Reduction

THREATS

• Strong Competition. • Saturation in Current Market • Challenges of Continuous Technological Development.

CORPORATE SOCIAL RESPONSIBILITY Environment -Recycling -Packaging -Transporting Nokia helping hands -Blood donations -Fund raising -Volunteering at hospitals -Arranging activities for under privelege

CSR contd…………… Ø Corporate giving -Disaster relief *drought in Euthopia *Sichuan earthquake in China *Cyclone nargis in Myanmar -Disaster recovery *Southeast asian Tsunami *Earthquake in Pakistan

Conclusion • Targeting Millions of internet users • Low cost web enabling by 2010 • Focusing on the lower end of the society.

THANK YOU!!!