Nokia

Corporation
Reversing the Decline in Brand Value
Presented By:-
Udit M Vyas
PGDM 2008-10
Roll no - 0858
Page 1
 Contents
• Mobile Phone Market
• Porters Framework : Mobile Handset Industry
• History Of Nokia
• Few Firsts
• SWOT Analysis
• Marketing Mix
• Nokia’s Competitors
• Moving Beyond Umbrella Branding
• Learning/ Take Away

Page 2
 Mobile Phone Market
• Initially dominated by few players.

• Undergone considerable changes.

• Increased demand for converged – function mobile phones.

• Advanced Technology.

• Focus on cost, design, usability and enhanced functionality for

success.

• 2 billion users of mobile phones worldwide.

Page 3
Porters Framework : The
Mobile Handset Industry

Page 4
 Porters Framework - Contd

Rivalry and Competition Bargaining Power of Buyers

• Industry Growth Rate • Buyer Info.

• Concentration and • Buyer concentration

Balance • Switching Costs
• Informational • Product Differences
Complexity
• Corporate Stakes

Page 5
 Contd….
Bargaining Power of
Suppliers Threat Of New Entrants

• Switching Costs • Brand Identity

• Impact on • Economies of Scale

Differentiation • Capital Requirement
• Threat of Forward • Access to necessary
Integration inputs.

Page 6
 Contd - Threat of New
Substitutes
• IP Telephony

• Escalating Mobile Costs

Page 7
 History Of 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

Page 8
 Contd…
• Joint Venture with Salora Oy in 1979 to create
Radio Telephone Company – Mobira Oy.

• Created and launched the first phone , Mobira

Cityman, in 1981.

• Subsidiary Co. called ‘Vertu’ to design luxury

mobile phones.

Page 9
 Few Firsts
• 1999 : First WAP enabled mobile handset.

• 2000: First mobile with Hindi menu (Nokia

3210) for India.

• 2002: First 3G phone in Nokia 6650.

• 2002: First Camera Phone (Nokia 7650)

• 2004: First to enter into High-end Multimedia

Phones.

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Page 12
Nokia and It’s SBU’s

Page 13
 Most Loved Brand & Fastest
Growing
(Source: Interbrand)
Rank Sector
1 Beverages
2 Computer Service
3 Computer Software
4 Diversified
5 Consumer Electronics
6 Restaurants
7 Internet Service
8 Automotive
9 Computer Hardware

10 Media
Page 14
 Focus on 5 Areas

• Create winning devices

• Embrace consumer internet services

• Deliver enterprise solutions

• Build scale in networks

• Expand professional services

Page 15
Financials

Page 16
 SWOT Analysis

Strengths Opportunities
•Popular Mobile Communication Co. •Increase their presence in CDMA as
well as 3G.
•Wide Range of Products.
•Joint Venture in Technology
•Product Warranty worldwide.

•Fashionable (Serves new trends).

Weakness Threats
•Higher price as compared to •Looking mainly at the competition.
competitors.
•Higher import charges.
•Numbering system.
•Government Legislations.
•No clam-shell mobile.

Page 17
 Marketing Mix
• PRODUCT

- Wide range of products.

- Consumer Friendly.

- Latest technology.
• PRICE

- Penetration Pricing.

- Competitor Based Pricing

Page 18
 Marketing Mix Contd…

• PLACE

- Mobile phone dealerships.

- Malls

- Retail and Electrical Suppliers

• PROMOTION

- Magazine

- Ad- Campaigns on Television

- Outdoor Advertisements

Page 19
Competitors

Page 20
 Samsung – The Korean
Warrior
• Strong Branding.

• Targeted mainly to youngsters & fashion-conscious

people.

• Various designs with cutting-edge technology.

• Launched touch-screen phone ‘P520’ in 2007

• Emerged #2 player in global market.

• Maintained its position in 2nd Quarter of 2007.

• Metal Series & Touch Screen phones.

Page 21
 Samsung SWOT Analysis

Strengths Opportunities
•Strong global presence. •Increasing mobile market.

•Diversified product line. •Higher % of younger population.

•Technology. •Strong Demand for innovative

products.
•Strong positioning.

Weaknesses Threats
•Not much user friendly. •Increasing competition.

•Voice clarity, Value for money. •Decreasing product margins.

•Incompatible with different software.

Page 22
 Nokia: Losing It’s Sheen

• Dip in market share and in brand value.

• Younger buyer opted for trendier mobiles.

• Marketing low priced phones in developing countries.

• Poor positioning compared to Samsung.

• Less advertising.

• Market share declined to less than 30% in 2004.

Page 23
 Nokia: Losing It’s Sheen
Contd…
• Continued to produce same models.

• Failed to gauge the demand for slim phones.

• Lost on younger consumers.

• Brand Value fell by 18%.

• Ranking Slipped to #8.

Page 24
Page 25
 Moving Beyond Umbrella
Branding
1. N-Series
2. E-Series
3. Ovi
4. Co branding with Yahoo
“What you will see coming from us in the future is not just a
numbering system, you are going to start see names that carry
a meaning and are important to consumers”
Keith Pardy, Global Marketing Head
Nokia Corporation, in 2006

Page 26
 N-Series

• Launched in April 2005.

• New Generation ‘Multimedia Computers’.

• Each phone specialized with multimedia functionality.

• Competed with iPods, Canon.

• Positioned as distinct and high end brand.

• Strategic Alliances with Carl Zeiss.

• Targeted to the high-end segments.

Page 27
 E- Series

• Launched in October 2005.

• Targeted at the Business Executives.

• Easy access of corporate e-mail.

• Access to organization's intranet through WAP.

• Positioned as new age business devices.

• Competed directly with RIM and Palm.

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 OVI

• Launched in August 2007.

• Umbrella brand for all it’s internet services.

• Mainly targeted at the young.

• On-line Music Store.

• Nokia Maps.

• Counter Competition to iPod.

Page 29
 A Brand Comeback?
• Rise in Market Share

• Rise In Sales

• N – Series, the profit generator

• Investment in Innovation

• Awards

Page 30
Page 31
 Learnings

• If you make less profit, you can survive. But if you

fail to innovate, you won’t survive.
• Customer Satisfaction is the key to success.

• Learn from your past mistakes.

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