NOKIA – A success Story

Presented By :- P-5Charul Malik Gaurav KumarRaghubansh Mani SinghRajhans SharmaRicha 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

• 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.

‘INDIA’ – NOKIA FORESEES GREAT

POTENTIAL

‘INDIA’ – NOKIA FORESEES GREAT

POTENTIAL

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 TELEDENSITYURBAN – 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 telecom segment.

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 N- Series

Nokia E- series

Nokia Symbian series

The Product Life Cycle (International)

Time

Sale

s or

Pr

ofits

Growth

Maturity

Decline

Introduction

Sales curve

The Morph concept

Nokia E- series

Nokia Symbian & N- Series

Nokia 30 & 40 Series

The Product Life Cycle (India)

Time

Sale

s or

Pr

ofits

Growth

Maturity

Decline

Introduction

Sales curve

Nokia E- series

Nokia Symbian series

Nokia N- Series

Nokia 30 & 40 Series

PESTLE ANALYSIS

POLITICAL FACTOR:

ECONOMIC FACTOR:

SOCIAL FACTOR:

Nokia has been a member of the United Nations Global Compact since 2001

Nokia reported spending $5.4 mn on lobbying in the U.S. in 2007 and $2 mn on lobbying in 2008.

Nokia had to change its functions from single market to global market due to collapse of Russian Federation.

TECHNOLOGICAL FACTOR:

LEGAL FACTOR:

Patents and technology:

Health risk and regulation

ENVIRONMENTAL FACTOR:

Environmental impact of supplier‘s products and processes Environmentally ethical considerations amongst suppliersLife cycle impact of products throughout the supply chain

Changes in technology

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

internet to mobile devices and the total

internet services market will be approx.

100 billion Euros in 2010.

Focusing on rural market

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

internet to mobile devices and the total

internet services market will be approx.

100 billion Euros in 2010.

Focusing on rural market

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

behind the N- series

range.

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

behind the N- series

range.

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

distribution