Case Study on Nokia

A project by Apoorva Yadav, student of IBMR-IBSMysore University

Brief History Of Nokia

1865Wood Pulp

Mill

1871Share

company

1898Rubber

Business

1902Electricity

1967Nokia

Corporation

2012

ѼKey people‡ Risto Siilasmaa (Chairman)‡ Rajeev Suri (President & CEO)‡ Timo Ihamuotila (CFO)

ѼRevenue -   €12.70 billionѼOperating Income - €519 millionѼNet Income -   €-615 millionѼTotal Assets -   €25.19 billionѼTotal Equity -   €6.46 billionѼEmployees - 90,981

Ѽ [Data relied - 2013]

Nokia as a Company…

Headquarters At Finland

Evolution of Nokia Phones

A Visit to Mobile Shop near Sony World, Kormangala

Interaction with the Retailer

ѼMobile brands sold – Samsung, Nokia, Sony & Intx

ѼLess Sales happens for Nokia compared to Samsung‡ If Samsung sells 10 handsets than Nokia sells 4

ѼDemand for Android > Demand for WindowsѼCustomer Complaints are generally for:

‡ Problem of touchpad‡ Music earpiece damage‡ But unlike Samsung no complaints faced for device

hang

ѼThe new Android version of Nokia is catching up in market

What we Got to Know 1st Hand?

Solutions to the Case Problems…

ѼIncrease in teledensity = Increase in mobile subscription

ѼMobile subscription to rise to 148.77 million by 2009

ѼLeading to rise in Teledensity by 18.2% in the same year

ѼMajor Reason of increased teledensity are:‡ Removal of traditional landline phones‡ Mobile Phones turned out to be economical‡ Great scope of market expansion for cell phones‡ Reduction in cost of ownership

Does Teledensity Affect Nokia`s Market Share?

ѼRestructuring of Nokia as an organization at global level

ѼAdoption of Dual strategy :‡ Promotion of high-end telephones in Tier I & Tier II

cities‡ Targeting high volume sales in metro cities & capitals‡ Marketing team stressed on strong Distribution

network in 2004

ѼNokia was the leader in GSM market with 74% by 2005

ѼNokia customized phones specifically for Indian market‡ Sturdy phones for lower income group – truck drivers‡ Long lasting battery

Reasons for Growth of Nokia in India

ѼSamsungѼiPhone

ѼMotorola

ѼMicromax

Ѽ L.G.

Ѽ Karbonn

Ѽ Lenovo

Competitors of Nokia

Why Nokia Failed?

ѼComplacency

ѼLack of innovation

ѼLess stylish in low priced products

ѼUnlike iPhone or Samsung, Nokia Symbian was:‡ complex, tough ‡ not user friendly

ѼInadequate assessment of the market‡ Symbian to Windows & not Android

Market Share

Nokia Samsung Nokia Samsung Nokia Samsung2010 2011 2012Mar

76.1

5.9

38.5

25.623

41.8

Market share (%)

GFK-Nielsen for March 2012

ѼDynamic Forecasting of Demands by consumers

ѼSmooth functioning of Applications in the handset

ѼRising Disposable Income of Middle class

ѼMobile phones, tablets now a symbol of status

ѼIncreased competition by new players in market

Growth Drivers of Present Mobile Market in India

Strengths of Nokia India

ѼNokia being the 1st entrant has experience

ѼEarly investments in manufacturing

ѼLargest distribution network by partnering with HCL (Hindustan Computers Ltd.)

ѼIt focused only on mobiles unlike other electronic brands

ѼAffordable mobiles for rural India that comprised 70% of population

ѼStrong Brand Building:-

‡ Instead of promoting various models Nokia promotes platforms like Music Photography

ѼFocus on being the ‘mother’ brand rather than ‘another’ brand in mobile market

ѼBranding exploited the emotional need of consumers:-

‡ That is being able to connect with near and dear ones any day

‡ Introduction of local languages so people can greet via SMS during festivals

‡ A safety device for women in small towns, keep in touch all time

Opportunities

ѼNew growth markets

ѼConcentrate on Smartphone's

ѼWell designed and styled set

ѼMini notebooks

ѼUnderstand changing demands by consumer

ѼIntroduction of Android based phones in Nokia

ѼWikipedia

ѼGoogle

ѼInterview of Rajeev Suri

ѼInterview of former MD of Nokia – Shiv Kumar

ѼInterview of JagdeepKapoor, Chairman and MD (Samsika Marketing Consultants)

ѼPersonal Experience from Marketing

:Sources Relied on:

Thank You