NOKIA – A success Story

Presented By :- P-5
Charul Malik
Gaurav Kumar
Raghubansh Mani Singh
Rajhans Sharma
Richa Thakral
 NOKIA
• Founded in 1865, by Fredrick
Idestam in Finland as a paper
manufacturing company
• In 1920, Finnish Rubber works
became a part of the company
• In 1992, Finnish cable works join
them
• All the 3 companies merged in 1996
to form the Nokia Group
 Contd..
• In 1970, Nokia started taking an active interest in the
power and electronics businesses
• In 1987, consumer electronic became Nokia’s major
business
• Nokia created the mobile phone standard in 1981a
and launched the first phone , Mobira cityman, in 1981

• In 1991, the first GSM network was delivered to

Radkilinia, a Finnish company
• In 1922, Nokia 1011 – a precursor for all Nokia’s
current GSM phones was introduced
• The company focus on two core business: mobile
phones and telecommunication networks
• Between 1992 & 1996, the company exited from the
rubber and cable businesses
 NOKIA In India
• Entered in 1994
• Nokia 2110 – first ever GSM call
• Operating office – New Delhi, Mumbai,
Kolkata, Bangalore, Hyderabad, and
Ahmadabad
• The Indian operations – handsets and
network infrastructure businesses
• R&D facility in Bangalore, Hyderabad
and Mumbai
• 10th manufacturing facility in Chennai,
USD 150 million, March 2006 and
employs over 4100 people.
Some first for Nokia in India
• 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
• 2000 – First phone with Hindi Menu (Nokia
3210)
• 2002 – First Camera phone (Nokia 7650)
• 2003 – First Made for India phone, Nokia
1100
• 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
 Initial Hurdles
• When Nokia entered India , telecom
policies were not conducive for growth
of mobile phone industry.
• Tariffs levied on importing mobile
phones were as high as 27%.
• Usage charges Rs.16 per minute, at these
high rates, consumer did not take to
mobile phones.
• Competition from other powerful global
players like Motorola, Sony, Siemens,
Ericson.
 Infrastructure business
‘INDIA’ – NOKIA
FORESEES GREAT
•
POTENTIAL
Infrastructure business is under Nokia Networks
(now called Nokia Siemens Network).
• Now key supplier to all the top GSM operators
including Airtel, Vodafone, BSNL & IDEA.
• Nokia has also set-up it’s Global Networks
Solutions Center in Chennai. Solutions Center
performs network operation tasks for
operators in Asia Pacific, Europe, Middle East and
Africa.
Huge opportunity

•India has second largest market after China.

•Today 6-7 million new subscribers every
month.
•Indian consumers tend to change their phone
very fast.
COUNTRY CALL RATE (CENTS)
JAPAN 33
BRAZIL 11
AUSTRALIA 24
CHINA 4
INDIA 2
URBAN – RURAL TELEDENSITY
 Recent achievements &
Recognition
• Ranked 4th in the Most Trusted Brand
-Survey by Brand Equity - 2007.
• Ranked No1. MNC in India by BusinessWorld-
2007.
• Ranked No. 1 in the Consumer Durables
in India in 2005-06.
• No. 1 telecom equipment vendor from
2004- 07.
• Asia’s most trusted brand in 2006 by the
Media-Synovate survey.
• 'Brand of the Year' at CII Brand Summit in
2005.
• Golden Peacock Award 2004 for Nokia
1100, for most innovative product in the
 Year 2008
• India is only country where Nokia is present in
the entire range- R & D, retail, manufacturing
and services.
• 75000+ outlets to sell Nokia products.
• Nokia has 62.5% share in mobile handset
market in India.
• Launched a new service brand – Ovi for
Internet services.
• To access on-demand online music and
games besides other entertainment content.
• Nokia N95 with maps that enable users to
find their way to people and places. Maps
services also have a route finder.
Revenue
SWOT ANALYSIS
 Strengths
• One of the most popular mobile
communication. company in the industry
• Offering high product quality.
• Wide range of product.
• Product warrantee worldwide.
• Fashionable product ( serve new trend).
• Global marketing (product).
 WEAKNESSES
• Higher price as compared to competitors
• High supply chain cost
 OPPORTUNITIES
• Increase their presence in the CDMA
market, which they are just entering, as
well as 3G and Edge.
• New growth markets where cell phone
adoption still has room to go, including
India and other countries.
• Joint venture in technology.
 THREATS
• Looking mainly at the competition that are
taking away Nokia’s market share.
• Government legislations that hinder
Nokia’s development as a company
(total cost of 3G licensing in Europe is 110
billion euros).
• Higher import charges.
MARKETING MIX
 Product
• Latest technology.
• Text messaging and games like Snake and
Memory.
• Bulky and quite unattractive but now they
are all quite sleek and stylish.
• Accessories that consumers buy with them
(carry cases, hands free kits and in-car
chargers).
 Price
• Penetration Pricing
• Competitor Based Pricing
 Place
• Mobile phone dealerships
• Retailers and electrical suppliers.
 Promotion

“One Big Advertising

Campaign”
 Organizational Culture
• The Nokia Way-emphasizes the speed and
flexibility of decision-making.

• Flat-networked organization with a certain

amount of bureaucracy.

• Equality of opportunities and employee

participation.

• The Nokia Values are Customer Satisfaction,

Respect, Achievement, and Renewal.
Product Life Cycle
The Morph concept
Nokia E- series

Nokia N- Series
Nokia Symbian series
 The Product Life Cycle
(International)
Maturity
Profits
Sales
Nokia Symbian
& N- Series
or
Decline
Nokia 30 & 40 Series

Growth Sales curve

Nokia E- series

Introductio
n Morph concept
The

Time
 The Product Life Cycle
(India)
Maturity
Profits
Sales
Nokia N- Series
or
Decline
Nokia 30 & 40 Series

Growth Sales curve

Nokia Symbian series

Introductio
n E- series
Nokia

Time
 PESTLE ANALYSIS

POLITICAL FACTOR:

Nokia reported spending $5.4 mn on lobbying in the U.S. in

2007 and $2 mn 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
TECHNOLOGICAL FACTOR:

Changes in technology

LEGAL FACTOR:

Patents and technology:

Health risk and regulation

ENVIRONMENTAL FACTOR:

Environmental impact of supplier‘s products and processes

Environmentally ethical considerations amongst suppliers
Life cycle impact of products throughout the supply chain
Economies of scale
 Packaging
• Packaging is important because it protects products as
they make their way from factory to customers.
• They’ve saved energy in logistics by reducing the amount
of printed material inside the sales packages. Examples of
innovative packaging include:
• In 2007 alone, they saved 15000 tonnes of
material by using smaller packaging. This also
saved water.
• Over the years they've been replacing plastic
with paper-based material.
• using more recycled packaging material.
• Packaging is an area where they have been
demonstrating savings not only for the
environment, but also for the company.
• February 2006, when they first created smaller
packaging until the end of 2007 they had shipped
250 million phones using this new compact
packaging.
• This resulted in 5000 fewer trucks being needed
to distribute products around the world and
• created financial savings of 100 million euros.
 Transportation Cost
• wanted to cut emissions by reducing employee
trave by teleconferencing
• To improve our videoconferencing and to further
reduce the need for travelling, they set up new
advanced video facilities at 21 key office
locations. And plan to roll out the technology to
30 sites globally.
• We also set up an extra 20 traditional video
conferencing facilities
• We actively promote the use of existing shuttle
services between airports, offices or hotels
whenever possible, instead of individual taxi
rides.
 Recycling
• Because they design their products to last and
have a global Nokia service network to look after
them, they keep working. But a lot of the phones
are no longer used. The global consumer survey
reveals that 44% of old mobile phones are lying
in drawers at home and not being recycled only
3% of people recycle their mobile phones
globally.
• Recycling means don’t need to extract and refine
as much material for new products, saving
energy, chemicals and waste. If every Nokia user
recycled just one unused phone at the end of its
life, together we would save nearly 80,000 tonnes
of raw materials.
 Strategies
• Customer remains the top priority
- Nokia’s priority is to be the most preferred partner to
operators, retailers and enterprise
- the brand goal for Nokia is to become the most loved
brand by the customer
• Nokia’ s business strategy focus on 5
areas:
- create winning devices
- embrace consumer internet service
- Deliver enterprise solution
- Build scale in networks
- expand professional services
• Three strategic assets in which Nokia
invest and prioritize:
- Brand and Design
- customer engagement and
fulfillment
- Technology and architecture
• Nokia now has separate marketing strategies --
customised products and advertising -- to address
the needs of each segment.
Live, for instance, offers basic handsets low on
features and price. It is aimed at first-time users
whose basic need is to stay in touch with voice as
the main driver.
The second segment, Connect, focuses on more
evolved users who seek functionality, features
and connectivity. Accordingly, phones in this
segment offer GPRS, camera and music
capabilities.
The next two categories, Achieve and Explore,
are aimed at high-end users and include top-end
handsets like Nseries and Eseries.
They target multimedia applications, imaging,
mobile TV, music, Internet service and gaming to
next segments," adds Taneja.
“Nokia’s India strategy is reflected

in the numbers. The company is a

key cog in India’s wireless value

chain, and it has used India as its

emerging market lab.”

Global Reach
 Contd…
• The 10 largest markets were
US, UK, China, Germany, Italy, France, UAE,
Thailand, Brazil and Poland, together
representing 60% of total sales

• Nokia has appointed JWT as its global network

marketing agency
• JWT will support the lead creative agencies in the
implementation and localization of global
campaigns.
• Also, as a strategic global partner, the agency will
support local marketing activities in over 80
markets worldwide.
Structure
• Devices is responsible for developing
the best device portfolio for the
marketplace, including sourcing of
components
• Services & Software reflects
strategic emphasis on developing
and growing offering of consumer
Internet services and enterprise
solutions and software.
• Markets is responsible for
management of supply chains, sales
channels, and brand & marketing
activities.

• The Corporate Development Office

focuses on strategy and future
growth, and provides operational
support for integration across all the
units
• Infrastructure and related services
business is conducted through Nokia
Siemens Networks, a separate
company jointly owned by Nokia and
Siemens and consolidated by Nokia

• NAVTEQ
leading provider of comprehensive
digital map data for automotive
navigation systems, mobile navigation
devices, Internet-based mapping
applications, and government and
business solutions.
 FUTURE PLANS

Low cost , web enabling handsets by

2010.

Targeting hundreds of millions of users

of the internet.

To bring internet access to all the

masses in India.

• Nokia aims to be no. 1 in bringing the

FUTURE MARKETING STRATEGY
FOR NOKIA

Nokia is very best in the world.

Motorola and Samsung must now be in

the FUW list in
Nokia board meeting.

Nokia , quite alarmed by the dropping

sales of its
phones, is now putting all its weight
Motorola gives a dashy-flashy name to its

phones.

Consumers are more attracted by names.

Nokia advertises more than Motorola.

Nokia would soon go to the marketing

ways.

More focus on 3G and entering into