CONFIDENTIAL
Presented by
Muhammad Yasir
Presentation Include
Why Nokia ? Target Market
History Positioning
Mission statement 4Ps
Brand personality BCG Matrix
Market Segmentation 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 €4.966 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 (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 office: 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
Sales or
Profits
Maturity
Nokia Symbian
& N- Series
Decline
Nokia 30 & 40 Series
Growth Sales curve
Nokia E- series
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 Americas
& Africa 35%
46%
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
Entry Level 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
T
T1 T2 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
[Link].
• 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
