Marketing Strategy Of Nokia 13s2f

Executive Summary: Mobile phone market in India is going through major changes. Key players are losing market share while new and young companies, mostly from Asian countries, are coming to the market. At the same time the market is slowly expanding when people are buying more phones than ever. The whole process of buying mobile phones has changed in the last few years. People no longer carry the same phone year in year out, change is the fast technological development of the phones. But also consumer’s but they change their phone every year, some even twice a year. One reason for these attitudes towards mobile phones has changed. Mobile phones are no longer seen as expensive, hi-tech products, but they have become accessories like jewellery or a piece of clothing. Here we can mention about nokia the world’s number one mobile phone company and this discussion is going through about this company. This report gives an overview on what is happening on the mobile phone market today and analyses Nokia’s market position in the growing market. This report includes a brief introduction to Nokia followed by an environmental analysis, SWOT analysis of the company.

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History The roots of Nokia go back to the year 1865 with the establishment of a forest industry enterprise in South-Western Finland by mining engineer Fredrik Idestam. Elsewhere, the year 1898 witnessed the foundation of Finnish Rubber Works Ltd, and in 1912 Finnish Cable Works began operations. Gradually, the ownership of these two companies and Nokia began to shift into hands of just a few owners. Finally in 1967 the three companies were merged to form Nokia Corporation. At the beginning of the 1980s, Nokia strengthened its position in the telecommunications and consumer electronics markets through the acquisitions of Mobira, Salora, Televa and Luxor of Sweden. In 1987, Nokia acquired the consumer electronics operations and part of the component business of the German Standard Elektrik Lorenz, as well as the French consumer electronics company Oceanic. In 1987, Nokia also purchased the Swiss cable machinery company Maillefer. In the late 1980s, Nokia became the largest Scandinavian information technology company through the acquisition of Ericsson's data systems division. In 1989, Nokia conducted a significant expansion of its cable industry into Continental Europe by acquiring the Dutch cable company NKF. Since the beginning of the 1990's, Nokia has concentrated on its core business, telecommunications, by divesting its information technology and basic industry operations.

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2001 and into the Future Nokia is harnessing its experience in mobility and networks to generate a startling vision of the future. Meeting rooms, offices and homes will be 'smart' enough to recognize their human visitors and give them whatever they want by listening to their requests. Nokia welcomes change and improvement and can embrace new ideas at great speed. Such characteristics will never change but, as to the rest, the story has only just begun!

Mission and Vision: 1 Vision “Our customers continue to our First Priority” Nokia’s future success depends on delivering great experiences to our customers by creating products and solutions that work seamlessly and are appealing.

2 Mission “In a world where everyone can be connected, we take very human approach to technology” Connecting is about helping people to feel close to what matters. Wherever, whenever, Nokia believes in communicating, sharing, and in the awesome potential in connecting the 2 billion who do with the 4 billion who don’t. If we focus on people, and use technology to help people feel close to what matters, then growth will follow. In a world where everyone can be connected, Nokia takes a very human approach to technology. 3

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Strategy “Wherever, whenever, we believer in communicating, sharing and in the awesome potential of connecting the 2 billion who do, with the 4 billon who don’t” At Nokia, customers remain our top priority. Customer focus and consumer understanding must always drive our day-to-day business behavior. Nokia’s priority is to be the most preferred partner to operators, retailers and enterprises. Nokia will continue to be a growth company, and we will expand to new markets and businesses. World leading productivity is critical for our future success. Our brand goal is for Nokia to become the brand most loved by our customers. In line with these priorities, Nokia’s business portfolio strategy focuses on five areas, with each having long-term objectives: - Create winning devices - Embrace consumer Internet service - Deliver enterprise solutions - Build scale in networks - Expand professional services There are three strategic assets that Nokia will invest in and prioritize: - Brand and design - Customer engagement and fulfillment - Technology and architecture

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Organization

Nokia comprises four business groups: Mobile Phones, Multimedia, Enterprise Solutions and Networks. Mobile Phones connects people by providing expanding mobile voice and data capabilities across a wide range of mobile devices. We seek to put consumers first in our product-creation process and primarily target high-volume category sales. Multimedia brings connected mobile multimedia experiences to consumers in the form of advanced mobile devices and applications. Our products give people the ability to create, access and consume multimedia, as well as share their experiences with others through a range of radio technologies.

Mobile Phone Market in India NOKIA’s hegemony in the GSM handset segment has increased during last six months. NOKIA’s market share (in of unit sold) has grown to 74% in March 06 from 61.5% in October 05. In the colour segment too, Nokia has increased its market share to 55% in march 06 from 33.7% in march 05.In of value, Nokia’s overall market share has jumped to 70.5 % in march 06 from 57.7% in October 05. In the colour phone category, its market share (in of value) has increased to 59.3% in march 06 from 40.9% in October 05, according to ORG GFK estimates. 5 5

Supply Chain Nokia is committed to reducing the environmental impact of its business. It expects all Nokia suppliers and their suppliers to take a similar approach. At Nokia, it believes in long-term partnerships with suppliers who share our approach to ethical business. Together it works hard to anticipate risk, demonstrate company values, enhance its governance practices, increase employee satisfaction and look after the communities where it does business.

SWOT Analysis Nokia is at an important crossroads in its history. Having architected many of the key tenets for growth during the formative years of the mobile phone industry, the market with which Nokia is so familiar may be adopting different rules, ones that it may not fully understand. The situation Nokia faces may be similar to the period in the PC industry when Dell Computer sured perennial leaders IBM, HewlettPackard and Compaq Computer. Why might this happen? Because Nokia's strengths are so wellunderstood by its competitors, they are well-targeted and improved upon. The wireless market's evolution has slowed, making it easier to challenge the incumbents. Also, the progress of technology has made many of Nokia's early advantages easier to overcome. Nokia's leadership position is a result of paying persistent attention to market needs and taking the right chances at the right time. 6

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Nokia was the first to acknowledge fashion as an important element in mobile phone purchases, and it is solidly behind the push for Multimedia Messaging Service, which could become the first data service beyond Short Message Service to be deemed successful. There is a significant gap between Nokia and startups, which makes it difficult to compete against Nokia. Nokia's tie to operators has kept its products solidly in consumers' view. Yet, Nokia faces some serious challenges.

Strengths • Nokia has long established identity (1898); lots of available resources (financial, etc.) • Nokia has high penetration rate in Europe, especially in Northern countries (close to 100%) • Nokia Consumer Electronics has access to innovative technology through group companies

Weakness • Lack of centralized marketing strategy and champion; completely different positioning strategy depending on the country • Too many brand names (100) in one market; problem trying to find balance • Corporate culture is highly technical and operational: So what if the customer does not understand!; lack of customer service priority 7

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Opportunities • Potential for brand name sales in Europe and Asiapacific • Growing replacement and supplement television market • NCE has opportunity of using its technology to enhance -friendliness

Threats • The market for color TVs and VCRs is a mature/saturated market; consumers are buying less often and only to replace older units (same trend for all countries across Europe) • Can’t differentiate based on technical advancement or price; competitors too fast to match • Impact of recent purchases (for example, Sony) and mergers is unknown; competitors are getting larger and integrating supply chains • Competitors (Samsung, Gold star, Daewoo) quickly and successfully building brand name and image Branding Strategy In the color TV market, neither technology nor price provides a competitive advantage. The decision a consumer makes to purchase is primarily motivated by emotion, and is driven largely by comfort level with a particular brand. A successful branding strategy for NCE is, therefore, critical to gaining a competitive advantage. Specifically, NCE should brand for the following reasons: • Competitive advantage is gained through brand name (not technology or price) 8 8

• According to brand awareness studies, Nokia is recognized most of the time (in , , Italy, UK and Norway), but not necessarily d with consumer electronics such as TVs and VCRs • Consumers buy televisions based on emotion • Consumers perceive value in features that are marketed as -friendly. In the past Nokia has relied heavily on its ability to innovate—it is a strong technology company. However, it is not good at introducing or packaging this technology for consumers. It must introduce a new mindset to NCE; a strategic shift that encourages customer service and international marketing. Internal Management Challenge faces at least two challenges within NCE that he must address immediately: 1. Lack of a marketing champion in corporate headquarters 2. A continued reliance on technology as the main marketing approach. For example, the remote control TV mouse is centered on technology and may frighten away potential customers who may perceive it as too technical.

Options for solving these include: 1.Push down his ideas and force all to comply using his positional power; 2.Soft approach—gradually getting buy-in to his plans from technical representative, sales and marketing.

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Option 1 is not viable since even though it may result in short-term agreement, it will result in resignations, poor morale and distrust in senior management over the long run. Since the change process can be slow, Nokia should adopt option 2 that means getting buy-in at the senior management level.

Quality targets: • For Nokia to be number one in customer and consumer loyalty. • For Nokia to be number one in product leadership. • For Nokia to be number one in operational excellence.

Segmentation Strategy Nokia Market Demographic The profile for Nokia customer consists of the following geographic and demographic: Geographic • Our immediate geographic target is rural India. • The total targeted population is estimated at 100 million. Demographic • Male and female. • Ages 25-50, this is the segment that makes up 80% of the Nokia mobile phone market according to the NOKIA India Ltd. • Professionals and College students. 10

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Marketing Strategy Today, the true “killer” data application is still text messaging, a typical example of person-to-person communication. Other end- services, however, have not taken off as expected in recent years. The primary reason for this slow take-up is that most of these services do not fulfill the expectations of s. Although ring tones are one example of successful person-to-content services, progress must be made for market take-up of other mobile data services such as: • Messaging (e.g., MMS and e-mail) • Entertainment (e.g., graphics, logos, games) • Information (e.g., directory services, news)

Marketing Objective ü ü ü ü ü ü

Capture rural Indian market Target school student Attract Customers to New technology Enhance Distribution Maximize our revenues Maintain Customer’s Loyalty

Nokia using Microfinance to sell Phones in Rural India Nokia is looking to extend a pilot scheme that has been operating in 2,500 villages in the southern states of Andhra Pradesh and Karnataka to make its mobile phones more affordable to rural Indians. 11

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The company, which s for about half of all mobile handsets sold in India, has been using microfinance schemes to allow poor villagers to buy its products. A microfinance organization has bought handsets from Nokia and sold them to women in rural villages by charging them Rs 100 or $2 a week for as long as 25 weeks.

Distribution Channels Distributors: A) HCL Infosystem: During the last ten years, the HCLNokia relationship has witnessed strong growth in the Indian GSM handset market resulting in a significant market share gain for Nokia. B) Bright point: It offers the most comprehensive selection of brands and products in the wireless industry. Handset, Integrated devices, PDAs, etc. They also provide full selection of OEM and aftermarket accessories, Modems and software. It distributes product manufactured by the world’s leading handset manufacturer.

Conclusion Nokia being in a competitive market holds the market as a monopoly with its Unique identity, Marketing Strategy and distribution policy. Through the Ease-of-use concept, it will add a lot to Customer Value, which further helps Nokia in capturing the market share in India. 12

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