Table Of Contents

Environmental Scan...............................................................2

Industry Analysis ...............................................................................3

Competition......................................................................................4

Consumer.........................................................................................6

Social...............................................................................................7

Technology.......................................................................................9

Legal...............................................................................................11

Economy.........................................................................................12

Consumer Analysis ..........................................................................15

Porter’s Five Forces Model ............................................................18

Threat of New Entrants / Entry Barriers..........................................18

Power of Buyers .............................................................................19

Power of Suppliers..........................................................................20

Threat of Substitutes......................................................................21

Competitive Rivalry........................................................................22

Conclusion............................................................................................23

Bibliography.........................................................................................24

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Environmental Scan is a popular method of examining the many

different external factors affecting an organization – the outside

influences on success or failure. It can also be referred as a

management technique which helps us understanding the external

environment in which a business operates.

Mentioned below are the factors affecting the Telecommunication Industry and hence Nokia as well.

Political Factors: Major Government Policy

Personal Communications Services (PCS) is a family of advanced

mobile wireless digital telecommunications services rich in features

that offers voice, data, and image communications. Industry Canada

licensed fourteen companies to provide PCS services on a competitive

basis across Canada. Two national 30 MHz PCS licences were awarded

to Clearnet PCS Inc. and Microcell Telecommunications Inc. One

national 10 MHz PCS licence was awarded to Rogers Wireless Inc. and

11 regional 10 MHz PCS licences were awarded to the members of the

Mobility Canada consortium. The Mobility Canada consortium dissolved

with three members, TELUS, BCTel Mobility, and Quebec Telephone,

merging under TELUS and the remaining members forming the Bell

Wireless Alliance. In October 2000, TELUS acquired Clearnet to form a

national wireless company.

The PCS auction ended February 1, 2001 following 51 rounds of

bidding over 14 days. Fifty two out of a total of 62 licenses were

auctioned. The auction winners bid a total of $1.5 billion.

PCS Auction Winners

Bidder Bids ($millions)

Bell Mobility Inc. 720.5

Rogers Wireless Inc. 393.5

TELUS Communications Inc. 356.0

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W2N Inc. 11.4

Thunder Bay Telephone Ltd. 0.6

Source: Industry Canada

Work Plan for Releasing Additional Spectrum for Advanced Mobile

Services Including 3G

Industry Canada has outlined a work plan that will lead to the licensing

of additional spectrum for advanced mobile service, including 3G,

which will proceed in parallel with the 3G activities in the U.S. It is

anticipated that as a result of public consultations and related

activities, more than 80 MHz of spectrum will be licensed.

Graph below illustrates the amount of spectrum currently available for

mobile radiotelephone systems and the spectrum resources which are

candidates for future consultation for use in Canada.

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Social Factors

In 2006, the Office of Consumer Affairs published a Consumer Trends

Update on cellphone services (Industry Canada 2006). The Update

outlined the growing presence of cellphones in Canadian consumers'

communication activities, and highlighted related policy

considerations.

Source : Data obtained from Statistics Canada, Income Statistics Division.

The number of wireless subscribers

in Canada has continued to grow,

reaching 20.3 million in 2007, compared to 13.3 million in 2003.

However, year-over-year growth has been slowing, falling from 13.3%

over 2004-05 to 8.2% over 2006-07 (CRTC 2008).

In terms of the percentage of households reporting having a cellular

phone for personal use, wireless access reached 71% in 2006. This is

up from 59% in 2004, with the greatest increases concentrated in the

lower and middle income quintiles

Using a different measure of household wireless penetration rate, a

2008 survey revealed that 72% of households had some access to a

wireless phone (CWTA 2008)

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Key StatisticsPercent of Households

Reporting Having a Cellular Telephone, By Selected

Income Quintile  Lowest Middle Highest

2004

31.2% 59.8% 84.5%

2005

33.5% 67.6% 88.6%

2006

42.5% 76.2% 90.9%

Source : Data obtained

from Statistics Canada,

Income Statistics

Division

For those Canadians who report spending on cellphone and other

wireless services, the costs associated with use are significant.  In fact,

2006 marked the first year that the average annual expenditure per

reporting household was higher for wireless than for conventional

telephone services.  By 2007, the average expenditure per reporting

household reached $773 for wireless services, $128 more than for

conventional services ($645).3 This willingness to increase

expenditures on wireless services coincides with reports that many

consumers view cellular phones as an “essential” utility, i.e. spending

which they are not likely to cut even during a recession (Robertson

2008).

Data obtained from Statistics Canada, Income Statistics Division.  Note

that expenditures on conventional telephone services include long-

distance charges.

Despite continued growth, Canada's wireless penetration rates

continue to lag behind most Organisation for Economic Co-operation

and Development (OECD) countries. Canadian prices are still relatively

higher than those in other countries when comparing OECD baskets of

mobile telephone charges, particularly for medium and high usage.

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Furthermore, the mix of subscribers in Canada remains uniquely

dominated (close to 80%) by post-paid, longer-term service contracts.

Economic Factors

Having steadily decreased during the period 2003-2007, the Canadian

wireless telecommunication services market’s growth rate is expected

to follow a similar pattern over the forthcoming years towards 2012.

The Canadian wireless telecommunication services market generated

total revenues of $13.1 billion in 2007, representing a compound

annual growth rate (CAGR) of 14.9% for the period spanning 2003-

2007. In comparison, the USA and Mexican markets grew with CAGRs

of 11.4% and 21.3%, respectively, over the same period, to reach

respective values of $133.1 billion and $11.9 billion in 2007.

Market consumption volumes increased with a CAGR of 12.6% between

2003 and 2007, to reach a total of 21.2 million subscribers in 2007.

The market's volume is expected to rise to 30.6 million subscribers by

the end of 2012, representing a CAGR of 7.6% for the 2007-2012

period. The performance of the market is forecast to decelerate, with

an anticipated CAGR of 8.5% for the five-year period 2007-2012, which

is expected to drive the market to a value of $19.7 billion by the end of

2012. Comparatively, the USA and Mexican markets will grow with

CAGRs of 5.6% and 5.5%, respectively, over the same period, to reach

respective values of $175.2 billion and $15.6 billion in 2012.

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Competitive Factors:

Entering this market as a facilities-based provider requires significant

capital outlay, in order to build infrastructure that covers most of

Canada's large geographical area, or to acquire a company that

already has a network. A lower cost mode of entry is as a MVNO: for

example, Virgin Mobile entered the Canadian market using the Bell

Mobility network. The market is growing strongly, and the well-known

willingness of consumers to switch service providers means that a new

entrant offering competitive prices or service features could be

successful.

Many competitors in this market are large companies offering a wide

range of communication services, although there are some smaller,

more specialised players. As the service offered by each player is not

highly differentiated from that of its competitors, and customers find it

almost cost-free to switch, service providers must compete intensely

not only to attract and but also to retain customers. Exit barriers are

not insurmountable, as diversified telecoms companies could exit the

wireless market while continuing to operate in fixed-line and related

businesses. However, such a move would mean forsaking the potential

revenues from a market that continues to grow strongly, and in fact

this strong growth is one reason for rivalry being less intense than

might be expected. Going forward, as the market approaches

saturation, rivalry is expected to become more fierce. Overall the

degree of rivalry is assessed as rather strong.

Degree of Rivalry in Wireless Communication Services in

Canada, 2007

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Source: Datamonitor

The main substitutes for wireless telecommunications are fixed-line

telephony and data communication, and also VoIP telephony.

Switching costs will depend on what hardware a consumer currently

owns: thus, for a consumer who only owns a cell phone, switching

would involve landline installation costs etc. In most cases, fixedline

offers few benefits (since wireless telecoms were developed initially as

substitutes for the older technology), although some customers in

remote locations not covered by wireless networks may need fixed-line

services. VoIP offers the benefit of easier integration with other

Internet-based communication, for example, in video conferencing.

These substitutes are generally cheaper than wireless telecoms, with

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VoIP especially advantageous for long-distance calls. Major players in

this market are defended to some extent from the threat of substitutes

to revenues because they generally offer a full range of telecoms,

including wireless, fixed-line, and Internet-based.

Technological Factors:

Another key event in 2008 was the Canadian launch of the iPhone,

portrayed by some as the 2007 invention of the year. This recognition

is notably due to it "bringing the internet surfing experience of a

desktop computer to the cellphone" . It remains, however, that similar

"smartphones" are considered the fastest-growing segment in the

cellphone market). The introduction of cellphones using open source

operating systems may eventually further expand the non-voice data

use of phones for web surfing and for downloading new phone-based

applications.

The advanced functionalities and network access associated with

smartphones increase consumers' opportunities to easily access the

Internet and, hence, enhance the potential for online shopping. Growth

is also expected in Canadians' use of the cellphone as a payment

mechanism for real-world purchases, another element of mobile

commerce. For example, the Royal Bank of Canada and Rogers

Wireless are expected to introduce a pilot in mid-2009 allowing

consumers to wave and pay for goods at the point of sale using their

mobile phone.

Some online retailers are actively targeting mobile consumers; for

example, Future Shop offers an application for users to browse and buy

Future Shop products directly on BlackBerry phones.

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However, these devices may also intensify privacy and security

concerns, as computer-based Internet threats may migrate to, and

transit through, the cellular phone. For example, in a report on

malicious software (malware), the OECD notes that there is some

debate on the current seriousness of the malware threats on mobile

devices. It adds, however, that "there is also recognition that such

threats, while emerging, are quite real". Future issues may include the

risk that "undetected malware on a smartphone could get transferred

to a corporate network and used to perform further malicious functions

Mobile phones also have very small product life cycle, it constantly needs to be updated.

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Marketing Mix for Nokia – N series

The marketing mix is the most famous marketing term. Its elements are the basic, tactical components of a marketing plan. Also known as the Four P's, the marketing mix elements are price, place , product, and promotion.

Product - The product is the centre of the marketing mix and the otherthree P's are based around it. Consumers purchase goods and servicesfor a variety of individual reasons and a company must be aware of allof these when selling a product. Nokia N Series - Nokia announced a new brand of multimedia devices at the press conference of mobile phone manufacturer in Amsterdam. The first three Nseries devices introduced at the conference consists of N70, N90 and N91. Nokia Nseries is a product family consisting of multimedia smart phones. With Nokia Nseries products, consumers can use a single device to enjoy entertainment, access information and to capture and share pictures and videos, whenever and wherever they want. Product Family: Nokia N70, , Nokia N71, Nokia N73, , Nokia N80, Nokia N81 8GB.Quality : Quality is at the heart of Nokia’s brand promise, very human technology. Nokia’s key quality targets are: 1) Nokia to be number one in customer and consumer loyalty. 2) Nokia to be number one in product leadership. 3) Nokia to be number one in operational excellence. Designs : Nokia Nseries devices share similar design traits as mobile phones, but they are actually powerful pocket able computers with a comprehensive set of multimedia features. Design’s of some of the N-series Mobiles Phone’s: Nokia N75 Flip phone design Nokia N76 Sleek flip phone design Nokia N80ie Slider-phone design Nokia N93i Dual-hinge swivel design Nokia N95 Two-way slider design Nokia N800 Internet Sleeker design than Tablet Nokia 770. Features : The Nokia Nseries is aimed at users looking to pack as many features as possible into one device. In all handsets GPS, MP3 player & WLAN functionality also have been present & every device under N-Series has some unique feature in it, and hence customers have many choices.

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 N series phones that Nokia produce are usually sold at high prices (new phones can be expected to enter the market at around $400+, if they carry the latest technology). The price of the new phones usually decreases after an introductory period, which is usually around 2-4 months long.

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Nokia's prices are usually competitor based, in such a way as, they try to keep their prices a bit lower than those of the closest competitors, but not as low as the "smallest" competition as consumers do not mind paying the extra money for the "extra quality" they will receive with a well known brand, such as Nokia.

Pricing strategy - Nokia uses a combination of skimming aswell as the competitor based pricing model when launching a new handset. The price skimming strategy is used in early days to recover the high R&D cost and then prices are readjusted as per the competition. Competitor based pricing- this is used when there is a lot of competition in the market and a company is looking to take another companies market share by offering the same or similar products for a lower price, this happens a lot in the communications market and this strategy is used by every mobile phone producing company.

Nokia's pricing strategy has proven very effective, this is down to the fact that they first sell their products for high prices and have very limited sales but make big profits on each sale, they then lower the price of their product and have lots more sales but they make less profit, but they still make a large profit due to the amount of sales, the other reason that they are so successful is that they offer high quality products and have now built up the highest market share, with 37.2% of the mobile phone market share and are the biggest selling mobile phone company in the world.

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, Mobile phones are very easy to access nowadays, they are sold in supermarkets, specialised outlets (either by network or brand) and all major department stores.

Nokia phones are generally sold at all established mobile phone dealerships such as Rogers, Fido and although they are also sold at other retailers such as Future shop and other electrical suppliers.

Majority of the sales of Mobile phones are through the network carriers like Rogers. For N-Series, Nokia has a exclusive deal with Rogers Telecom and they both are currently promoting the N-Series range at their flagship stores.

Since mobiles phones are sold majorly on contracts with telecom operators there is also an increasing number of sales over the telephones. Telecom sales teams are also selling the N-series over the help desk if a customer wishes to purchase or upgrade. Outside the

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Canadian market Nokia has opened its own retail outlets ‘Nokia Priority’ as well has many authorized dealers at various places.

A small number of sales are reported through the small business owners but they also generally purchase the handsets from authorized dealers and re-sells them with markup.

Nokia also sells its N-series range in the US directly to customers through its website but this feature is not available Canadian customers.

Promotion- This involves providing information to the customer over a variety of media platforms, using radio, television and print advertising as well as using other promotional tools such as "money off deals" and "free giveaways".

Nokia tend to promote the new technologies and mobile devices they create using one big advertising campaign that focuses on a singular technology instead of each individual handset so they can appeal to a lot of different markets with one campaign. Nokia N series built its brand at both ends of the market, with high-end multimedia handsets for upscale buyers and low-priced phones for new customers. For N-Series Nokia follows company brand name strategy I:e Branding all N-series together and promoting the whole range as one product catalogue.

They use series of campaigns online and directing consumers to their website through promotions and contest printed in the media. They also have an exclusive deal with Rogers Telecom and through them they are promoting the latest addition to their N-series range. Rogers stores have posters and have special instore promotions going on entire Nokia’s range.

One of the strongest aspects of Nokia is its Public Relations (PR ): Nokia has strong PR. They keep on doing some or the other new events, programme and publicity, so as to keep up with the brilliant image of the company and also to enhance the brand equity. At any major sponsored events Nokia will have the name of their model printed along their logo. Nokia also at times employs the bundle offer – at times they may include accessory package with their phones. Such ads are currently on TV as well as in print media.

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Nokia's current promotional strategy is working very well as they are able to "talk to" a large number of consumers in different markets rather than the niche markets the old promotional strategies where restricted to.

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Executive Summary

For this project, the author has chosen Nokia for analyzing their current

business environment and later making recommendations for

implementing Internet Marketing plan. Nokia is a mobile

telecommunications company, and offers far more than just mobile

phones for everyday use. They offer networking solutions for

businesses that help businesses stay connected and communicate with

each other at all times and places. In this project, the author will first

talk about what Nokia is and what they do. We will talk about their

history, and how they came to where they are today. Vision, goals, and

their strategy are discussed, as well as their wide variety of products

and services offered for the regular consumer, businesses, and service

providers. Nokia’s success benefits along with environmental factors

influencing them are also detailed in the report. These also include the

SWOT and Marketing Mix of their N-Series range of mobile phones.

Further ahead the author has analyzed their current marketing plan

and lastly designed and recommended Internet Marketing plan

detailing various strategies available. The report also includes Nokia’s

target market and internet statistics and finally, communication

strategies. We will look closely at and discuss all of these elements,

and why we think that they are relevant to Nokia.

Marketing Plan Introduction

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According to the Canada Business service’s website “A marketing plan is designed to assess client needs, develop a product or service to meet those needs, communicate to the customer the attributes of the product/service, establish distribution channels to make products/services available to consumers, and to ensure that the company makes a profit”

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Company Overview & Historical Analysis

Nokia Corporation (Nokia), a Finland based company incorporated in 1967, is aninternational communications company and a global leader in mobile handsettelephones. Nokia have a worldwide market share of about 40% and currently most of the mobile handsets sold in the world are from Nokia. Nokia focused on the key growth areas of wire line and wireless telecommunications. Nokia produces mobile phones for every major market segment and protocol, including GSM, CDMA, and W-CDMA (UMTS). The corporation also produces telecommunications network equipment for applications such as mobile and fixed-line voice telephone, ISDN, broadband access, voice over IP, and wireless LAN. Nokia, headquartered in Espoo in Finland. It has some 65,324 employees’ worldwide and sales network that spans about 150 nations. Nokia Corporation generated more than half of its sales in Europe, a quarter in the Americas, and about 22 percent in the Asia-Pacific region.

Nokia have such a strong company, 39% of its employees are based in Research and Development and they have training centers in front of 11 of the top Universities of Electronics/

Through Nokia Siemens Networks (NSN), a joint venture between Nokia andSiemens, it provides equipment, solutions and services for network operators, and telecom service providers. The company recorded revenues of E51, 058 million (approximately $69,987.2 million) during the financial year (FY) ended December 2007, an increase of 24.2% over 2006.

There is a progressive and continuous increase in consumer technology andcommunications globally. Nokia always connects people to new and better ways.Nokia wants to build trusted consumer relationships by offering compelling andvalued consumer solutions that combine beautiful devices with context enrichedservices.(www.nokia.com)

Brief History of Nokia

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Nokia's history starts in 1865 in Southern side of Finland. Engineer Fredrik Idestam established as a wood-pulp mill on the bank of the Tammerkoski and started manufacturing paper. A few years later Idestam founded another mill on the Nokianvirta trver. In 1871, he named the company Nokia Ab. Nokia had its business interest in a lot of segments of the market like paper, cables, footwear products, etc.

In 1937, Verner Weckman became President of one of Nokia Corporation’s founding companies, Finnish Cable Works, after 16 years as its Technical Director. Weckman had worked as a mining engineer in Russia from 1909 to 1921 and he had knowledge of Russian language and culture so Nokia's products were exported first to Russia after 2nd world war.

Between 1865 and 1967, the company would become a major industrial forces but it took a merger with a cable company and a rubber firm to set the new NokiaCorporation on the path to electronics. In 1982, Nokia designed its first digital telephone switch system, the Nokia DX200, and launches it into operation. From 1984 to 1991 Nokia's evolution in the mobile communication market grew sharply with their first mobile phone, the Mobira Talkman, the invention of the first handheld NMT phone, and equipment used to make the world's first GSM call. In 1998, Nokia became the world’s largest mobile phone manufacturer and their market continues grow with new devices that include high-speed Internet, Mobile online gaming and multimedia functions. (www.aboutnokia.com)

Since 2000, Nokia successfully carried out the world`s first WAP service over a trial WCDMA system, in Beijing, China. Nokia`s success continues with Nokia 6650, company`s first 3G mobile phone and start of new era in mobile gaming with the first N-gage device in the 2003. In 2005, Nokia introduces the famous N-series and sells large number of phone in the same year.

In 2006, Olli-Pekka Kallasvuo becomes a new President and CEO of Nokia, and first time Nokia and Siemens announced plans for Nokia Siemens Networks.

In 2008, Nokia`s three mobile device business groups and the supporting horizontal groups are replaced by an integrated business segment, Devices and Services. Recently Nokia announced to develop a Home control center for future Smart Home.(www.nokia.com)

Future Outlook for Nokia & Mobile Device Industry

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 Nokia President and CEO, Olli-Pekka Kallasvuo, highlighted the benefits of Nokia's brand, scale and number one market position, stating: "2009 will be challenging for our industry, however we have a strong, enviable base to build on and I believe we will continue to strengthen our position on many fronts. Building on our operational flexibility, Nokia is acting to reduce costs appropriately in the current slowing environment. At the same time, we remain fully committed to making the investments to build the future of our exciting industry and Nokia's continued competitiveness."   Nokia CFO, Rick Simonson, emphasized that appropriate cost reductions are being effected now and are continuing in plans for 2009 and 2010: "Nokia's highly variable, low fixed cost business model allows us to scale to a declining market. We are also acting on all fronts to reduce our costs beyond what may be attributable solely to the scalable aspects of the business model - moving to reduce cost of goods sold even further, reduce operational expenditure appropriately, and scale back capital expenditure. We expect these strong actions to offset, in part, the negative impact of slowing sales."  

Nokia Goals & Objective for 2009-2011

- To ensure that Nokia's cost base is appropriately sized for a more challenging environment;

- To grow mobile device market share, to capture growth opportunities in NAVTEQ and device enhancements, and to capture value from adjacent markets;

- To build on the momentum in Services & Software by continuing to grow and focus its services portfolio;

- To mobilize consumer email and consumer instant messaging for millions of Nokia device users, and;

- To further integrate and simplify Nokia's web services user interface and device user interface.

Outlook for Nokia and the mobile device industry - The mobile device market slowdown has continued more rapidly than previously expected since Nokia issued an update on November 14, 2008. The industry continues to be impacted by the effects of a global consumer pull-back in spending, currency volatility, and decreased availability of credit. Nokia believes the slowdown is apparent in varying degrees across all markets, while the most recent incremental impact in the emerging markets has been more pronounced than in other markets.

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- Nokia now estimates that fourth quarter 2008 industry mobile device volumes will be lower than the previous estimate of approximately 330 million units, which would result in full year 2008 industry mobile device volumes below the earlier estimate of 1.24 billion units.

- Nokia believes there is insufficient visibility in the marketplace to confirm its prior estimate for its fourth quarter 2008 mobile device market share, which was expected to be at the same level or slightly up from an estimated 38% in the third quarter 2008.  Targets and forecasts for Nokia and the mobile device industry - 2009 and going forward

- Nokia expects that the mobile device market will continue to be negatively impacted by the effects of a slowdown in consumer spending. Nokia also expects that operator and retail distribution channels will go through a period of destocking, resulting in lower sales volumes by manufacturers (sell-in) than purchase volumes by consumers (sell-through) for the industry in the first half of 2009.

- While noting the extremely limited visibility, Nokia expects 2009 industry mobile device volumes to decline 5% or more from 2008 levels.

- Nokia expects the four billion mobile subscriptions mark to be reached in the first quarter 2009.

- Nokia targets an increase in its market share in mobile devices in 2009 compared to 2008, including increased share in smartphones.

- As previously announced, Nokia has adjusted its Internet services market focus to the areas of music, maps, media, messaging and gaming. Nokia estimates these targeted portions of the Internet services market will be approximately EUR 40 billion in 2011. In December 2007, Nokia estimated that the total Internet services market would be approximately EUR 100 billion in 2010.

- Nokia targets Services & Software net sales of EUR 2 billion or more in 2011.

- Nokia targets its Services & Software business to have 300 million unique services users by 2012. Nokia Vision  Source: www.nokia.com

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Products & Services Overview

Until recently Nokia operated through four business segments: mobile phones, multimedia, enterprise solutions and Nokia Siemens Networks. From FY2008, the company is organizing its structure into two reportable segments namely devices and services, and NSN. The devices and services segment is formed by combining the three devices segments of Nokia namely mobile phones, multimedia and enterprise solutions, while the previous NSN segment is left unchanged. Under the new structure, the devices operations will be responsible for developing the device portfolio for the marketplace, including sourcing of components.

The services which include services and software operations comprise Nokia's consumer Internet services and enterprise solutions and software. Further, from the effective closing date of the acquisition of NAVTEQ Corporation, the company planned to operate NAVTEQ's current map data business will be operated as a wholly owned subsidiary and as a separate reportable segment.

The broad appeal products of the company are typically the midrange products which have a balance between price, functionality and style. Majority of the company's mobile device models fall into this category. The broad appeal phones are enhanced with mega-pixel cameras, music players and navigation functionality, among other features. Nokia's lifestyle products include top-end devices with better material inputs, design and features. The company's lifestyle products include Nokia 8000, 7000 and 5000 product families.

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The entry level mobile phones of Nokia are low cost and are offered in cooperation with local mobile operators The company offers these mobiles primarily in markets with a potential for growth and where mobile penetration levels are relatively low. The entry devices include Nokia 1000 and 2000 product families with voice capability, basic messaging, calendar features, color displays, radios, basic cameras and Bluetooth functionality.

The Nokia Siemens Networks (NSN) is a joint venture company established by Nokia and Siemens, which started operations in April 2007. NSN comprises Nokia's previous networks business and Siemens' carrier related operations for fixed and mobile networks. NSN is owned approximately equally by Nokia and Siemens and is consolidated by Nokia. NSN has an alliance with Nokia's mobile device business with respect to product and service offerings as well as customer interface. NSN also includes certain intellectual property contributions owned by Nokia and Siemens.

Converged core business unit develops core network solutions for mobile and fixed network operators. Its main products comprise switches, and different kinds of network servers and media gateways. Its packet switched and IP based core network solutions enable operators to offer services such as Voice over IP (VoIP) calls; video sharing; IPTV; internet access; and other IP-based services.

Operations and business software unit provides operations and business supportsystems software. This unit has five business lines: element operations, networkmanagement, service management, middleware and business support systems.Broadband access business unit produces digital subscriber line access multiplexers, passive optical network and narrowband/multi-service equipment, as well as access switches for the fixed line telecommunications industry. The business unit provides high bandwidth for access networks, which enable 'triple play' services like high speed Internet, VoIP and IPTV. It also has a portfolio of fiber and copper line access equipment.

Services business unit offers a broad range of operation services, from consultancy to outsourced operations; systems integration to hosting; and from network designing to full turnkey solutions. The business unit has the capability to integrate software from virtually all vendors.

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The enterprise solutions segment offers a range of products and solutions including enterprise grade mobile devices, underlying security infrastructure, software and services for business and IT department users. The segment collaborates with arange of companies to provide fixed IP network security, corporate email and other IT systems, and corporate telephone systems using Nokia's mobile devices. The enterprise solutions segment has three product business units: mobile devices, mobility solutions, and security and mobile connectivity.

The mobility solutions business unit develops software solutions for mobile email, device management and other mobile data services. The business unit offers wireless email and other applications over an array of devices and application platforms across carrier networks under the Intellisync brand name. Intellisync supports a wide range of device platforms, including Symbian, Palm, BREW and Windows Mobile, and is compatible with a wide range of email servers and groupware applications, including Microsoft Exchange, IBM Lotus Domino, IMAP and POP3. The business unit also collaborates with external vendors such as IBM, Microsoft, Research in Motion, Seven and Visto to make its mobile devices compatible with vendor solutions.

Target Market

Target Market segmentation refers to the different areas of the population that companies can aim their products towards. The market segment for N Series handset that Nokia has chosen to aim is the young university student and young executives aged between 18-29.

This is majorly because that this market segment is young new customers and it’s easier for Nokia to sell them and later on turn them to loyal customers. Another reason is that they have easier access to money through credit cards or mobile contracts and most have no real commitments to spend it on and that means they have lots of disposable income and will be able to spend lot money on new mobile phones.

As a big company Nokia are able to do a lot of promoting and advertising that smaller may not be able to afford, such as television advertising and sponsoring lots of events that will be viewed or heard by large amounts of people in their chosen market segment (events such as music festivals and music awards are a goldmine for companies as they are viewed by millions of people worldwide). Adverts such as television and print adverts will be put into certain

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areas so that they can attract their chosen market segment, Nokia tend to put a lot of their print adverts in men's magazines such as FHM and Loaded so they can appeal to all of their readers.

The younger generation also comprises of early adopters of newer technology as they are more tech savvy. Having the latest mobile phone also attributes towards a “cool” attitude among the peer group. With all the latest technology and features packed in the N Series range, this chosen target market also has the potential of later evolving to other Nokia products like business phones as their demand would later change.

Trends in the mobile device industry

The mobile phone industry is growing so rapidly, with picture messaging, games and access to our favourite music, consumerstoday are spoilt for choice.

The ever-changing mobile communications industry is again transforming consumer perception of telephony on-the-move. We’ve come a long way since the 80’s "brick like" model that gave us the freedom to move away from dingy payphones. In fact, mobile phones today serve a completely new purpose. No longer is it solely about the need to contact a friend, colleague or family member at any time or place. What reaches out to the majority of consumers today is the uniqueness of a handset; as mobile technology becomes fashion accessory. Constant advancements in technologies ensure we’re spoilt for choice, with the capacity to personalise almost every aspect of a mobile phone.

Consumers have been groomed to demand an increasingly high standard of functionality in their mobile phones. The good news for mobile phone suppliers is that this ensures handset replacement is rapid, as research and development evolves the phone into a personal organiser, music player, camera and mobile entertainment centre. We want to enjoy games, video clips and music from our phones and the mobile music industry in particular is going from strength to strength.

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SWOT Analysis

The SWOT analysis tool provides an opportunity to be specific as to the challenges facing Nokia and its respective advantages that can be utilized to minimize these. The SWOT analysis detailed below provides only the key points perceived by the author. Strong brand identity and being a market leader in the provision of mobile handsets to consumers has led to a degree of complacency within Nokia. Failure to respond to market desires for "clam" style handsets led to a small loss in market share. This is indicative of the impact of failing to monitor the demands and the requirements of the consumers.

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SWOT ANALYSIS

Should increase their presence in the CDMA market, as well as 3G, which are now being preferred by users.

Exploit new growth markets where mobile phone adoption still has room to go, including India, China and other countries.(KeyNote, 2005)

With convergence of technologies, more possibilities have been created as it is enticing a larger user groups. (Ie: Camera, Mp3s, PDA, GPS)

Leverage its network infrastructure business to get preference and a stronger

Being a dominant player in the smartphone market via its majority ownership of Symbian & proprietary Series 60 interface.

With 35% market share still the largest mobile phone vendor by far, with double the market share of nearest competitor.

Phone models are protected by International Patent Law.

Size should enable Nokia to amortize R&D costs and to get cost advantages.

Brand position: being one of the top 20 brands in the world

Nokia was reluctant to respond to clamshell phones, which were preferred by many customers. Which brought in its competitor brands in spotlight.

Mobiles are labeled as intrusive aspect of life & detrimental to standard of living, with people using them anti-socially in public places.

The prolong use & mobile towers are harmful to public health.

Obsolete & discarded handsets also constitute an environmental problem.

Dominance of 3G & clamshells models by competitors like NEC & LG.

Cheaper Asian brands aggressively penetrating the market. (BenQ, Bird)

Network providers launching their own brand handsets to lessen dependency on handset vendors. O2 & Orange market their own handsets globally.

Launch of “Internet Telephony” Companies like Vonage, SKYPE providing free net to phone calls.

With technology ever evolving, phones have very short Product Life Cycle.

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

Market Share

Nokia achieved a 36.96% share of the global mobile phone in the fourth quarter of 2007 - its best ever showing. Nokia sold 133.5 million handsets between October and December, according to new data from analysts Strategy Analysts.

A total of 332 million mobile phones were shipped during the quarter - a rise of 13% compared with the same period in 2006. Samsung was the second biggest player in the market with a 14% share (up from 11.3%) while Motorola's woes were heightened by a year-on-year collapse in its market share from 21.7% to 13.7%. Sony Ericsson was number four with a 9.13% share - and its annual rate of growth dropped from 64% to 18%. LG came in at fifth with a 7.1% slice of the global action.

By contrast Apple sold 2.3 million iPhones during the same period - giving the computer company a 0.6 volume share of the worldwide mobile phone market.

Internet Marketing Statistics

Percent of global page views on nokia.com:

Yesterday: 0.0087%7 day Avg: 0.0092%1 Month Avg: 0.00916%3 Month Avg:

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0.00902%3 Month Chnge: 9.6%

Daily time on site for nokia.com:

Yesterday: 3.97 day Avg: 41 Month Avg: 3.93 Month Avg: 43 Month Chnge:5

Where people go on Nokia.com:

21.4% europe.nokia.com 17.8% mosh.nokia.com14.1% mea.nokia.com 10.5% nokia.com 8.3% forum.nokia.com

Nokia.com users come from these countries:17.4% India 5.4% China 4.6% United States4.5% Pakistan 4.1% Egypt User profile Typical users at Nokia.com are those visitors who are tech savy and are very keen on checking the latest product offerings from Nokia. These people also visit the site for support such as software updates and other mobile applications.Nokia’s website serves as an online catalogue for visitors to browse and compare many new phones and features.The website also attracts a large and growing group of software developers. Nokia encourages use of blogs and forums through their subs sites. These visitors are generally the early adopters in the market.

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Communication Strategies Nokia identifies itself as a consumer led organization. Creating a strong brand presence is very essential for them because mobile phones have a short product life cycle and having to always be in front of the customers eyes is a challenge. Over a period of time Nokia has employed various strategies to build its brand and position their products competitively in the market.As a tech based company Nokia is very aggressive with their marketing and advertising. Having the customer informed of all the latest products or news developments at all times is their prime concern.Mentioned below are some of the methods already used by Nokia to created its brandTraditional Media TV advertisements/Print Media. Press releases and news conferences.Road shows/Kisok at various malls locationsExclusive partnership agreements with large telecom players.Contest over Radio ProgramsInternet Marketing Program Implementation Recently Bill Gates declared “the future of advertising is the Internet.” According to him the three central observations around technology-driven changes are consumer empowerment, personalization and interactivity are said to recast marketing. Technology itself is not anymore at the service of marketing but increasingly characterizes it.As we may know, Marketing is “meeting needs profitably”, provide value to customers. Therefore, it is extremely important to marketers to ensure firms’ messages reach to customers. In order to send messages, marketers may need to utilize every possible channel.

The role of firm’s website in the correlation between Firm and CustomersInternet is an effective, low-cost for enhancing marketing practice.The appearance of Internet in marketing in particular and in business in general is a breakthrough. It introduces brand new elements: advertising- connecting- delivering. Internet is a symbol of new channel in digital era.Internet impact Customers behavior:Buying decision is influenced by online information inquiring. Millions of buyersinquire information, features of products through firms’ websites before decide whether to buy. Search Engine function will take customers and business to firms and products directly in few seconds.This impact is also available for B2B model in business. Days by days, more and more firms establish their own websites and launch

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online marketing campaigns, because of online marketing has benefited firms in many aspects:Increase connection regardless of geographical and time constraints:Previously, without Internet, Marketing practice was limited. However, via Internet, the market is opened to everyone in this world. For example, customers in every parts of this world are able to approach to products and firms through websites.- More opportunities to contact with customers:Most of internet users have over average level income, these are potential source for marketers. Internet is an important part of many firms’ strategies, such as Dell with “Direct model”. Internet helps business operation change from indirect way to direct way effectively. Firms are able to customized products easily.- Cost to launch online Marketing campaigns are lower than other types:We may understand this issue by an easy example. If firms use email or e-newsletter to contact customers; it will cost less than send mails or letters directly to customers by post. Furthermore, postal mail will take longer than email.Therefore, Internet is an effective and low-cost way to manage customer relationship. Especially, firms’ websites are new channel for connecting, advertising and delivering.- Various types of Advertisements and Promotions:Spaces for advertising in website could be considered as unlimited sources.Make use of Viral Marketing: It is easy for a customer or simply a visitor of firm’swebsite transfer content of advertisement or promotion to others. This way increase the brand awareness and popularity without any costs and transactions.Nokia’s E-Marketing Plan

Nokia’s Internet Marketing Plan can be based upon the above designed mind map.Sales Support: This is really important from Nokia’s perspective. Customer can log onto their to website and download any new updates or software patches for their handsets. Nokia can also set up an online chat tech. support to help users with their queries. Doing so will greatly increase Nokia customer service.Blogs: These online journals create an excellent source of discussions. Users can post their comments or opinions, ask questions from people around the world. Nokia can use this pure customer generated content to design their future products and they can also interact and participate with a large and interested user base. E-Commerce: Nokia can add ecommerce

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capability on their webpage. This will allow users to directly purchase handsets from Nokia. This also ensures that consumers receive genuine products.E-Mail Marketing: It is an important type of Internet marketing, and allows webmasters and online business owners to use inexpensive direct marketing and relationship marketing tactics quickly and efficiently. Allowing customers to respond to the campaign instantly from wherever they happen to be. It can be applied for: Email newsletters, Email offers and coupons to past customers or visitors. Email surveys for market research and to measure customer satisfaction.Social Networking: Sites like Facebook/Twitter can help promote Nokia’s Brand presence extensively. On these sites Nokia can create fan groups. These online communities are best to discuss new product launches and their liking and disliking. Groups of likeminded individuals can be targeted for online email campaigns for a very little cost.Online Catalogue: The website should have the entire product offering available. Customer should be able to view and compare the phones, select features etc. They can also include user manuals and educate customers on latest products.Online Download: Nokia should also design the web interface like Apple’s ITunes store. Having the capability to upload amateur softwares or games and sell them will increase web traffic to the site. This will also open up new revenue models for Nokia.News Release: Website serves as an excellent point to release any latest developments. The web content can be easily edited and updated. From new product launches to any software updates can be informed to the whole consure base by simply posting it online. This also helps in brand awareness and creating media buzz/hype.Google Adword: Nokia can use this technique to purchase key words, which are words or phrases related to your business. When people search on Google using one of the keywords, ad may appear next to the search results. People can simply click the ad to make a purchase or learn more about Nokia. This will help in:Targeted reach - AdWords can help Nokia target new audiences on advertising network. Greater control - Nokia can also display a variety of ad formats and even target ads to specific languages and geographic locations.Conclusion With internet as the response channel, brands can build a relationship with new customer and current customers. If offering internet content as an incentive, it is delivered immediately. Internet works as an excellent channel for consumer response. Internet is being used in Marketing for may purposes and create many effects, both positive and negative. Above all, Internet has benefited Marketing practice in many aspects; it impressively creates new way to communicate with customers; reduce cost, transactions and time for marketers, enhance customer relationship management; increase speed and efficiency; active customers’ role in goods purchasing and information searching.

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Finally, Internet greatly benefits firms’ marketing practice.

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