Nokia Case Study
Presented by Rajneesh Kumar Rohit Banthia Rahul Sharma Rajendra Mishra Riya Verma Presentation Include ? Why Nokia ? ? History ? Mission statement ? Target Market ? Positioning ? 4Ps ? Brand personality ? Market Segmentation ? BCG Matrix ? SWOT analysis ? Nokia Corporation is a Finland based multinational company ? Headquarter — Keilaniemi, Espoo, city neighboring Finland’s capital Helsinki. ? CEO — Olli-Pekka Kallasvuo ? Chairman — Jorma Ollila. ? Founder — Fredrik Idestam in 1865. ? Nokia started as a pulp, rubber and cable manufacturer ” Nokia is world third richest company “LOGOS… NOKIA Company logo, 1966.
The NOKIA “arrows” logo before its Connecting People logo. “Connecting People” slogan, invented by Ove Strandberg. Present Logo 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 , Korea and India Financial… • Revenue €50. 722 bn (2008) • Operating income €4. 66 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 (June 30, 2009) 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 Nokia products… • Military communications and equipment – Message device system” • ADSL modems Digital television – (digital set-top boxes) • Personal computers (1980) Nokia products… • Mini laptops – On August 24, 2009, Nokia announced that they will be entering the PC business with a high-end mini laptop called the Nokia Booklet 3G • Internet Tablet • GPS products Global Positioning System 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 ffice: desk stands, imaging, wireless digital pens, wireless keyboards, mobile TV receivers • Power: batteries, chargers, charger adapters 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, and touch to create a multiscensory environment for the caller. • Scentsory would be able to detect smells as well as radiate colors, lighting, and temperature of the caller with Dual screens and hidden camera Product life cycle of NOKIA Maturity Nokia Symbian ; N- SeriesNokia 30 ; 40 Series Decline Growth Nokia E- series Sales curve Introduction The Concept Phones Time 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 in some 150 countries • They merge their mobile and fixed-line phone network equipment businesses to create 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 by 2010.Acquisitions… • Since December 1997, Nokia has acquired 37 companies or businesses • On August 5, 2009, Nokia acquire Cellity, a mobile software company • In September, 2008, Nokia acquired OZ Communications of Canada Acquisitions… • In July 10, 2008, Nokia bought Navteq, a U. S. based supplier for a price of $8. 1 billion • In September 2007, Nokia acquire Enpocket, a supplier of mobile advertising technology • In July 2007, Nokia acquired Twango Net Sales 2009 Nokia Mobile Phones net sales by region Europe & Africa 46% Americas 35% Asia Pacific 18% 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 research and development, representing approximately 31% of the group’s total workforce • 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.
• Handset Market Share ? ? ? ? ? Nokia: 49. 5% Sony: 10. 1% Samsung: 12% Motorola: 9. 9% Others: remaining 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 Macro Enviroment of NOKIA POLITICAL FACTOR: Nokia reported spending $5.
4 million on lobbying in the U. S. in 2007 and $2 million on lobbying in 2008. ECONOMIC FACTOR: Nokia had to change its functions from single market to global market due to collapse of Russian Federation. SOCIAL FACTOR:Nokia has been a member of the United Nations Global Compact since 2001 Macro Enviroment of NOKIA TECHNOLOGICAL FACTOR: Improvement or Changes in technology LEGAL FACTOR: Patents right on technology ENVIRONMENTAL FACTOR: Environmentally ethical considerations amongst suppliers.
Life cycle impact of NOKIA throughout the supply chain Segmentation Strategy ?Geographic: o Nokia immediate geographic target is rural India. o The total targeted population is estimated at 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 Consumer Segment Light Users • Medium Users • Heavy Users BCG Matrix of NOKIA N-Series Premium Series Stars Question Mark Cash Cows Entry Level Dogs N-Gage ?Nokia uses a pricing strategy that best suits the product. ?Market Penetration- Nokia 1100. ?Market Skimming- N-95.
?Hence, The Strategy which was used for N-Series & E-Series was Market Skimming. Estimating cost – Experience Curve Theory : P1 P2 Price /Cost P3 Experience Curve T1 T2 T 3 Time Period / Units Produced • Nokia has opened its retail outlet ‘Nokia Priority’ as well as many authorized dealers at various places. Consumer Manufacturer Dealer • AIDA in Nokia – : A – Attention : attract the attention of the customer. • I – Interest : raise customer interest by demonstrating features, advantages, and benefits. • D – Desire : convince customers that they want and desire the product or service and that it will satisfy their needs. • A – Action : lead customers towards taking action and/or purchasing.
Supply Chain Management ?Channels: Nokia > Distributer >> Whole seller >>> Retailer >>>> Customer Product Promotion… ?Advertising: Through TV, Sign boards, Bill boards, Radio, Newspaper, Broachers, Posters, Dummies and display stands ?Discounts are provided to online Nokia purchasers through Nokia discount coupons or coupon codes ? Commission is also provided to retailers on the sale of every Nokia cell phones and accessories. • Public Relations ( PR )… Nokia has strong PR. They keep on doing some or the other new events, programmes and publicity, so as to keep up with the brilliant image of the company and also to enhance the brand equity. • Direct Marketing : • Nokia does not perform Direct Sales activities on its official website www. nokia.
com. • Nokia use DEMO style of Direct Marketing. • Nokia does not use Direct Mail or Telemarketing styles of Direct Marketing.Packaging… Packaging is important because it protects products as they make their way from factory to customers. ? Attractive, Good & Secure Packing ? During 2007, 15,000 ton packaging material has been saved by using smaller packaging. ? Nokia have reduced the amount of printed material inside the box, ? In 2007 Nokia began to increase the level of recycled content Branding… Nokia built its brand with high-end multimedia handsets for upscale buyers and low-priced phones for emerging countries.
• Branding Decisions : ? Nokia follows Umbrella branding “N Series” & “E Series” ? Logo shows their brand personality ?Nokia focused on building customer, relationship and trust ? Building friendship and trust is the heart Nokia brand Quality… Quality is at the heart of Nokia’s brand promise, very human technology. • Nokia’s key quality targets are: ? For Nokia to be number one in customer and consumer loyalty. ? For Nokia to be number one in product leadership. ? For Nokia to be number one in operational excellence. Emerging Markets… • 1. Break out of cities to rural areas: Focus on areas, where the cost of building wireless infrastructure is more cost effective than in building a fixed line (China/India) • 2.
Focus on Youth: Imaging and games (China/India) Lifecycle … • Globally Nokia’s market is at maturity, where as in India it is still in the Growth stage. Globally Placed Here In India Rs. Placed here Time Product life cycle THREATS ?China Mobile made Copy Of NOKIA Sets. ?Looking mainly at the competition that are taking away Nokia’s market share. ?Orange, Vodafone and O2 and many other operators are globally selling their own brands of phone.
?Higher import charges. Production Unit : Networks Technology China Finland India Mobile Devices and Enhancements Brazil China Finland Great Britain Hungary India Mexico Romania South Korea