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Sachin Gupta Vivek

Kapoor

CONTENTS

> EXECUTIVE SUMMARY


> INTRODUCTION

❖ANALYSIS
Corn? gtAffieople
■ STP ANALYSIS
> LOOPHOLES

> RECOMMENDATION

❖CONCLUSION
EXECUTIVE SUMMARY

This project report analyses the marketing mix, PEST analysis


and STP analysis of Nokia. Nokia has adopted excellent techniques to
influence a consumer, the prices of their phones are reasonable.
Almost every shop dealing in mobiles sells Nokia phones apart from
their Nokia Care and Nokia priority outlets. Their products are also
well promoted.

The Segmentation, Targeting and Positioning of all their products


are discussed in a detailed manner. The success of
the company lies in
the fact that

Connecting
People
NOKIA: AN INTRODUCTION
Everyone has a need to communicate and share. Nokia helps
people to fulfill this need and they help people feel close to what
matters to them. They focus on providing consumers with very human
technology - technology that is intuitive, a joy to use, and beautiful

HISTORY OF NOKIA:-

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The first Nokia century began with Fredrik Idestam's
paper mill on the banks of the Nokianvirta river. Between 1865 and
1967, the company would become a major industrial force; but it

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took a merger with a cable company and a rubber firm to set the
new Nokia Corporation on the path to electronics.

> 1865: The birth of Nokia:-

Fredrik Idestam establishes a paper mill at the Tammerkoski


Rapids in south western Finland, where the Nokia story
begins.
> 1898: Finnish Rubber Works founded:-
Arvid Wickstrom founds Finnish Rubber Works, which will
later become Nokia's rubber business
> 1912: Finnish Cable Works founded:-
Eduard Polon starts Finnish Cable Works, the foundation of
Nokia's cable and electronics businesses.
1937: Verner Weckman, industry heavyweight:- ^1
^^^^^^^^ Form| Olympic wrestle^ /^^r
Weckma^J^rpe^^^((^
President of Finnish Cable Works.
>- 1960: First electronics department:- I

> 1962: First in-house electrical device:-.. .■ :


The Cable Works electronics department produces its first
in-house electrical device - a pulse analyzer for nuclear
power plants.
> 1967: The merger:-
Nokia Ab, Finnish Rubber Works and Finnish Cable works
formally merge to create Nokia Corporation .

THE MOVE TO MOBILE: 1968-1991

The newly formed Nokia Corporation was ideally positioned


for a pioneering role in the early evolution of mobile

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communications. As European telecommunications markets were
deregulated and mobile networks became global, Nokia led the
way with some iconic products...
1979: Mobira Oy, early phone maker
Radio telephone company Mobira Oy begins life as a joint venture
between Nokia and "leadingTinnish 1 television maker Salora.
1981: The mobile era begins |
Nordic Mobile Telephone (NMT), the first " international mobile
phone network, is built.
1982: Nokia makes its first digital telephone switch

1984: Mobira Talkman launched' ± ^


Nokia launches the Mobira Talkman portable phone.
1987: Mobira Cityman - birth of a classic
Nokia launches the Mobira Cityman, the first handheld
NMT phone .
1991: GSM - a new mobile standard opens up
Nokia equipment is used to make the world's first GSM call .
MOBILE REVOLUTION: 1992-1999

In 1992, Nokia decided to focus on its


telecommunications business. This was probably the most
important strategic decision in its history.
As adoption of the GSM standard grew, new CEO Jorma
Ollila put Nokia at the head of the mobile telephone industry's
global boom - and made it the world leader before the end of the
decade...
1992: Jorma Ollila becomes'President and CEO:-Jorma. Ollila becomes
President and CEO ■ of Nokia, focusing-the company on
telecommunications . 1992: Nokia's first GSM handset:-.
Nokia launches its first GSM handset, the Nokia 1011.
1994: Nokia Tune is launched:-
feature the Nokia
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1994: World's first satellite call:-

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The world's first satellite call is made, using a Nokia GSM
handset.
1997: Snake - a classic mobile game:-
The Nokia 6110 is the first phone to feature Nokia's Snake game .
1998: Nokia leads the world:-
Nokia becomes the world leader in mobile phones .
1999: The Internet goes mobile:-
Nokia launches the world's first WAP handset, the Nokia 7110.

NOKIA NOW: 2000-TODAY:-

Nokia's story continues with 3G, mobile multiplayer


gaming, multimedia devices and a look to the future...
2002: First 3G phone:- Nokia launches its first 3G phone , the Nokia
6650.
2003: Nokia launches the N-Gage:- Mobile gaming goes multiplayer with
the N-Gage.
2005: The Nokia Nseries is born:- Nokia introduces the next generation
of multimedia devices, the Nokia Nseries .
2005: The billionth Nokia phone is sold:- Nokia sells its billionth phone -
a Nokia 1100 - in Nigeria. Global mobile phone subscriptions pass
2 billion. • 1

2006: A new President and CEO:- Olli-Pekka Kallasvuo becomes Nokia's


President and CEO; jorma Ollila, becomes Chairman of . Nokia's
board. Nokia and Siemens announce plans for Nokia

handheld communicator mobiles (Enterprise series) are launched.


2007: Nokia recognized as 5th most valued brand in the world. Nokia
Siemens Networks commences operations. Nokia launches Ovi, its
new internet services brand. 2008: Nokia's three mobile device
business groups and the supporting horizontal groups are replaced
by an integrated business segment, Devices & Services.
THE 4P'S OF THE MARKETING MIX:

PRODUCT:-

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The product is the centre of the marketing mix and the other
three P's are based around it. Consumers purchase goods and
services for a variety of individual reasons and a company must
be aware of all of these when selling a product (that is why they
conduct market research). Nokia does exactly the same and
comes up with innovative phones almost every six months. The
new phones that Nokia launches have some new feature or price
difference, thus appealing to the consumer. Sometimes, Nokia
launches special and limited editions of its mobile phones, on
special occasions such as the Olympics. In short they offer phones
of great variety with various designs and high quality.

Connecting
People
Price :-
Price is a key factor in the selling of a product, and is usually
the one that is open to the most change based on different
pricing strategies, for example, competitor based, penetration or
skimming. The three main factors affecting the amount charged
for a product or service, are; the cost of production, customer
demand and competition. Since its entry into Indian mobile
market in 1995, it focused on manufacturing of mobile handsets
based on GSM technology. Nokia built a strong brand image with
focused marketing and distribution network. It started focusing on
the low-cost mobile phone segment for rural markets in India, but,
faced stiff competition from Sony Ericsson, Samsung, and
Motorola who also started offering low-cost handsets. Nokia has
come up with the perfect prices for each and every consumer
segment in the market. A lower middle-class person can go for a
Nokia 1200 costing around Rs. 1200 while an executive can opt
for N-96 costing around Rs. 33,000.
Place:-
This refers to the chosen outlets for a product or service, for
a product to be very successful it must be easy to access, Nokia
mobile phones are very easy to access nowadays, they are sold in
supermarkets, Nokia Priority, Nokia Care and specialized outlets
(eg. The Mobile Store).

Promotion:-

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This involves providing information to the customer over a
variety of media platforms, using radio, television and print
advertising as well" as using othefpromotional tools such,as
"money off "deals" and "free "giveaways". The advertisements-
"that Nokia comes up with are very successful in targeting the
customers in a consumer market. The advertisements are made
in such a way that it appeals to the psychology of the consumer.
They also have various sale promotion schemes like offering
discounts on special occasions and giving free

In the case of Nokia, it can be classified as international


organization. It is basic for global brand, which is required to
focus on macro environmental factors, such as Nokia. Macro
environmental factors comprise Political, Economics, Society, and
Technology, viz, PEST Analysis. It is necessary force that Nokia
has to concern and know what is happening in the other countries
at the moment. Because there are different culture and different
external factors between different countries, Nokia has to adjust
its strategic plan in order to develop international market.
It is important of a company to acquire resources from
government, such as economic policy, and science and
technology policy. The success of Nokia has obtaine the resources
from Finnish policies which assist Nokia to advance its products.
The Finnish policies are the most important factors of Nokia. To
operate efficiently, a modern knowledge- and technology-based
economy that is highly specialized, internationalized and
undergoing rapid structural change requires active support from
the public sector. In its widest sense industrial policy and science
and technology (S&T) policy comprise all those measures by
which the public sector shapes the operating environment for
business and thus fosters public welfare. Both policies used by
Finnish government and Parliament are crucial for the
development both of the Finnish Economy and of national
information
society.

Finnish government best facilitate the efficient functioning


of the economy by directing its resources to the reduction of
market failures. The state must also pursue an industrial and

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economic policy that provides a stable macroeconomic
environment for enterprises. General macroeconomic stability,
low interest rates, stable currency
conditions and the international competitiveness of the tax
system
form the foundation for the growth of business an improvement in
employment. As the result of this, not only Finnish Government
but also international companies, such as Nokia, have play very
important roles to develop their information society and national
technology strength.

Economic:-
According to the fact that Russian Federation was collapsed
in early 1990s and it assaulted with Finnish economics. Nokia also
face with the problem, and changed its functions from single
market and overall products to global market and focusing mobile
phone market. With incomes rising, people have more disposable
income, which enables consumers to be more selective with their
choice of mobile phone, looking to other factors rather than
fulfilling the most basic of user (text, messaging and phone calls)

Nokia being a multinational company operates in many


countries. They have to abide by the economic policies in
whichever country they are operating.

Society and Technology:-


In the 1980s, people's trend to microcomputers and Nokia
tried to match the tendency to produce its main products, such as
computers, monitors and TV sets. According to the changes in
1990s, Nokia also changes its functions to mobile phone market.
Nowadays, the global market trends to connect PC and mobile
phone, even though to combine these two products together.

On-the other "hand, one important future challenge of Nokia


is to establish its policy to follow up the environmental policy and
science and technology p f c c ^ o f " the ^Rml^^, Government.
Sustainable development and environmental protection have
various effects on the operation of the innovation system.
Innovation also creates new opportunities for promoting
sustainable development. The markets for environmental
products are expected to grow rapidly in the near fu^ure jhe F|
nnis| «ov^^m^nt offers^gJodlfa jjtiemJEor |aakiitjttihis opportunity.
National and European reforms arising from environmental
objectives influence the perquisites from innovation. Nokia must

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be used to find solution which help to implement environmental
objectives as well as the objectives of innovation policy in a
balanced way.

To sum up, the main reason of Nokia has success to advance


its products are the policies and technology development of
Finnish Government. It cannot be separate between Nokia's
successful of advance its product and Finnish Government's
policies, both of Nokia and Finnish Government are the winner in
the international market. Nokia has obtained the success of
mobile phone market, and Finnish Government has established its
position of technology development.
At this moment Nokia is the best selling mobile phone company
owing to its constant upgradation in the technology of its phones.
sE^ftN TAT1 QN|A>DT>RGE T NG%- f 4
\> Entry level: (Rs 1.200-3,000) :- Nokia targeted lowjncome
E
people and first time mobile buyers in th leries. Sets
includ^are 1200, 1208, 1100, 1110, 1112 etc
> Classic Series: (Rs 7,000-17,000) :- Nokia targeted decent
people in this series. Sets include in this series
6300,6233,6120,3120 etc are
> N gage Series: (Rs 8,000-16,000) :- Nokia targeted game
lovers in this series .These sets include game like play
station, PSP and Xbox.
> N- Series: ( Rs 7000-35 , 000):- Nokia targeted the young
generation who wanted to possess mobiles with the latest
technologies such as a 5 MP camera, a decent music player,
GPRS, etc. This series is also called multimedia computer.
Named

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as on step ahead multimedia. Sets include N72, N81, N95,
N96, N97, etc
> E-Series: ( Rs 10,000-60 , 000):- These mobiles were
launched for people who needed mobile computing on the go
especially business people. These phones are enabled with
word, spreadsheet and presentation softwares. They also are
equipped with GPRS/ EDGE technologies thus functioning as
a palmtop. Sets include E90, E75, E61, E62, etc
> Xpress music Series: (Rs 6,000-20,000):- Nokia launched this
series basically for the people who loved music. Good dolby
digital earphones and long battery life are the features of
these mobile phones. Sets include 5800, 5610, 5320, 5310,
5220, etc
> Premium Series:(Rs 80,000-1,500,000):- In
this series Nokia targeted people who show
visual status. Sets include in this series are
Sephiraarte, 8800Gold, 8800arts etc

POSITIONING :-
Positioning of a product refers to creating an
image about a particular product. Nokia has been very his
successful in this strategy. strategy.

Nokia has created a distinct position in customer


mind > Nokia logo:

>

StandardRingtone
> Standard message
tone.
> Long battery backup.

> User friendly mobiles.


> The specific message that is conveyed to the customers in
every advertisement is:
"Nokia enable you to get more out of life".

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These specific aspects have been embedded into the
mindset of the consumer in such a way that every time they saw
the logo or heard the ringtone they associate it with a Nokia
product. Hence Nokia has been very successful in positioning it
products in the market.

LOOPHOLES
No doubt that the products from the Finnish company,
Nokia, are some of the very best in the world, but the company
still hasn't found a profitable way to market its goods. The very
reason that other mobile phone companies are fast eating up
Nokia's market share is their superior (yet simple) marketing
practices.

Motorola and Samsung must now be in the FUW (frequently

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used words) list in Nokia's board meetings. These companies
have made Nokia pay dearly for its rudimentary approach in
marketing its phones. The aggressive marketing practices
followed by Motorola have hit Nokia very hard and it is losing very
crucial global market share every month to its American
competitor.

Nokia, quite alarmed by the dropping sales of its phones, is


now putting all its weight behind the N-Series range. The N-Series
is packed with multimedia features and Nokia believes that these
phones might woo the costumers back to the big daddy of the
mobile phone world.

t OT TTG
a T Clintr
p pop B
i I
While Motorola (quite intelligently) gives a dashy-flashy
name to every phone it brings into the market, Nokia tends to do
the exact opposite. Nokia from the very start has relied on
numbers rather than names. This strategy worked very well in the
past, but only because there wasn't much competition back then.
But times have changed. Every month the market sees at least a
dozen new handsets from an equal number of manufacturers.
Consumers now have more than they can choose.

Consumers are more attracted by names because they can


thus easily relate to the features of the phone. This is evident
from the success of the MotoRazr, MotoSlvr, MotoRizr and
MotoKrzr. These phones are not packed with heavy multimedia
features like the N-
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Series; still they are selling like hot cakes. Just by reading the
name of the handset, one gets a broad idea what the phone looks
like or what its features are.

Nokia advertises more than Motorola. Still its market share


is dropping. Motorola does not need to spend much money for the
promotion of its products and it doesn't have to worry about the
marketing of these phones; it just simplifies its job by naming its
products right. Take the example of Apple. It did not have to do
much to promote its iPhone.

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Connecting
People
RECOMMENDATIONS:

It is high time that Nokia starts applying some sense to its


marketing strategies. It doesn't have to do anything great, other
than just naming its phones. A few months ago, a highly placed
Nokia official told Reuters that his company would soon go the
Motorola way
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and start using names for its new phones. It is in Nokia's best
interest that it takes to this path as early as possible, otherwise
the once market leader might see its market share plummeting to
even lower depths

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CONCLUSION

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