CONFIDENTIAL

Presented by
 Presentation
Include
 Why Nokia ?  Target Market

 History  Positioning

 Mission statement  4Ps

 Brand personality  BCG Matrix

 Market Segmentation  SWOT analysis

 Nokia Corporation is a Finland based
multinational company
 Headquarter -- Keilaniemi, Espoo, city
neighboring Finland's capital Helsinki.
 CEO -- Olli-Pekka Kallasvuo
 Chairman -- Jorma Ollila.
 Founder -- Fredrik Idestam in 1865.
 Nokia started as a pulp, rubber and cable
manufacturer
“ Nokia is world third richest
company ”
LOGOS…

NOKIA Company logo, 1966.

The NOKIA
"arrows" logo
before its
Connecting People
logo.

"Connecting
People" slogan,
invented by Ove
Strandberg.
Present Logo
 HISTORY OF NOKIA
 It also provides the services for network operators.

 Company recorded revenues of 41,121 Million € in 2007

about 20.3% increase from 2006.

 Company offers its products in 150 countries. Its HQ is in

 Espoo, Finland and employees about 68,500 people . Other

 company of Nokia are in China , Hungry , Germany , Korea

and India
Financial…
• Revenue €50.722 bn (2008)

• Operating income €4.966 bn (2008)

• Net income €3.988 bn (2008)

• Total assets €39.582 bn (2008)

• Total equity €16.510 bn (2008)

• Employees 120,827 in 120 countries (June

30, 2009)
Nokia Industries…
• Paper products
• Tires (car and bicycle)
• Footwear (including Wellington boots)
• Communications cables
• Consumer electronics such as televisions
• Personal computers
• Electricity generation machinery
• Military technology and equipment
• Robotics
• Capacitors
• Plastics
• Aluminium
• Chemicals
Nokia products…
• Military communications and
equipment
– Message device system“

• ADSL modems

• Digital television – (digital

set-top boxes)

• Personal computers (1980)

Nokia products…
• Mini laptops –
On August 24, 2009, Nokia
announced that they will be entering
the PC business with a high-end
mini laptop called the
Nokia Booklet 3G

• Internet Tablet

• GPS products Global Positioning

System
NOKIA Accessories …
• Carrying and styling: carrying cases, phone
jewellery
• Car solutions: car kits, car phones, mobile
holders
• Headsets: audio adapters, bluetooth
headsets, wired headsets, loopsets
• Memory cards and cables
• Music related products: speakers
• Navigation: navigation kits, car navigation
• Home and office: desk stands, imaging,
wireless digital pens, wireless keyboards,
mobile TV receivers
• Power: batteries, chargers, charger adapters
Concept Phones…
• Nokia is working on future of mobile
with their new concept Nokia
"Scentsory".
• This new mobile device uses the
sense of smell, sight, hearing, and
touch to create a multiscensory
environment for the caller.
• Scentsory would be able to detect
smells as well as radiate colors,
lighting, and temperature of the caller
with Dual screens and hidden
camera
Product life cycle of NOKIA

Profit
Sales
Maturity
or Nokia Symbian
& N- Series
Decline
s Nokia 30 & 40 Seri

Growth Sales curve

Nokia E- series

Introducti
on
The Concept Phones
Time
Joint Venture…
• Nokia Siemens Networks is a joint venture
between Nokia and Siemens AG on 19 June
2006.
• Nokia Siemens Networks services division is
based in INDIA
• Nokia Siemens Networks has operations in
some 150 countries
• They merge their mobile and fixed-line
phone network equipment businesses to
create one of the world's largest network
• Both company has a 50% stake
• The companies predicted annual sales of
€16 bn and cost savings of €1.5 bn a year by
2010.
Acquisitions…
• Since December 1997, Nokia has acquired 37
companies or businesses

• On August 5, 2009, Nokia

acquire Cellity, a mobile software
company

• In September, 2008, Nokia

acquired OZ Communications of
Canada
Acquisitions…
• In July 10, 2008, Nokia bought Navteq, a U.S.-
based supplier for a price of $8.1 billion

• In September 2007, Nokia

acquire Enpocket, a supplier of
mobile advertising technology

• In July 2007, Nokia acquired

Twango
Net Sales 2009
Nokia Mobile Phones
net sales by region

Europe Americas
& Africa 35%
46%

Asia Pacific
18%
Statistics…
• World's largest manufacturer of mobile
phone since 1998

• Market share -- 38% in Q2 2009

• Sales volume 210 million units in 2008

(total market volume 520 million units)

• employed 39,350 people in research and

development, representing approximately
31% of the group's total workforce
• Number of mobile subscribers in INDIA has crossed the 250 million mark.
• Mobile phone production in India was expected to grow from 51 million units to 110
million units by 2011.

• Handset Market Share

 Nokia: 49.5%
 Sony: 10.1%
 Samsung: 12%
 Motorola: 9.9%
 Others: remaining
Marketing Strategies Nokia…
• Focused on Handset Manufacture only
• Enhance Product Portfolio
• Increase Distribution Channels
• Adjust Preferences for specific markets
• Customer Satisfaction
• Focused on Replacement
• Increase Commitment to Emerging Market
• Improve Collaboration on Designs
• Ensure Accountability and Quality
• Aggressive Pricing
Macro Enviroment of NOKIA
POLITICAL FACTOR:
Nokia reported spending $5.4 million on lobbying
in the U.S. in 2007 and $2 million on lobbying in
2008.

ECONOMIC FACTOR:
Nokia had to change its functions from single
market to global market due to collapse of
Russian Federation.
SOCIAL FACTOR:
Nokia has been a member of the
United Nations Global Compact since
2001
Macro Enviroment of NOKIA
TECHNOLOGICAL FACTOR:
Improvement or Changes in technology

LEGAL FACTOR:
Patents right on technology

ENVIRONMENTAL FACTOR:

Environmentally ethical considerations

amongst suppliers.
Life cycle impact of NOKIA throughout the
supply chain
Segmentation Strategy
Geographic:

o Nokia immediate geographic target is rural

India.
o The total targeted population is estimated at
100 million.

Demographic:

o Male and female.

o Ages 25-50, this is the segment that makes up
80% of the Nokia mobile phone market
Consumer Segment

• Light Users
• Medium Users
• Heavy Users
BCG Matrix of NOKIA

N-Series Premium Series

Entry Level N-Gage

 Nokia uses a pricing strategy that
best suits the product.
 Market Penetration- Nokia 1100.
 Market Skimming- N-95.
 Hence, The Strategy which was
used for N-Series & E-Series
was Market Skimming.
Estimating cost – Experience Curve
Theory :

P1

P2
Price
/Cost P3

Experience Curve

T
T1 T2 3

Time Period / Units Produced

 Consumer

Manufacturer Dealer
• AIDA in Nokia – :
• A – Attention : attract the attention of the
customer.

• I – Interest : raise customer interest by

demonstrating features, advantages, and benefits.

• D – Desire : convince customers that they want

and desire the product or service and that it will
satisfy their needs.

• A – Action : lead customers towards taking

action and/or purchasing.
Supply Chain Management
 Channels:
Nokia > Distributer >> Whole seller >>>
Retailer >>>> Customer
Product Promotion…
Advertising: Through TV, Sign boards, Bill
boards, Radio, Newspaper, Broachers, Posters,
Dummies and display stands

 Discounts are provided to online

Nokia purchasers through Nokia
discount coupons or coupon codes

 Commission is also provided to

retailers on the sale of every Nokia
cell phones and accessories.
• Public Relations ( PR )…
Nokia has strong PR. They keep on doing some or the other new
events, programmes and publicity, so as to keep up with the
brilliant image of the company and also to enhance the brand
equity.

• Direct Marketing :
• Nokia does not perform Direct Sales
activities on its official website
www.nokia.com.
• Nokia use DEMO style of Direct Marketing.
• Nokia does not use Direct Mail or
Telemarketing styles of Direct Marketing.
Packaging…
Packaging is important because it protects products as
they make their way from factory to customers.

Attractive, Good & Secure Packing

 During 2007, 15,000 ton packaging

material has been saved by using
smaller packaging.
 Nokia have reduced the amount of
printed material inside the box,
 In 2007 Nokia began to increase the
level of recycled content
Branding…
Nokia built its brand with high-end multimedia
handsets for upscale buyers and low-priced
phones for emerging countries.
• Branding Decisions :

 Nokia follows Umbrella branding “N Series”

& “E Series”
 Logo shows their brand personality
 Nokia focused on building customer,
relationship and trust
 Building friendship and trust is the
heart Nokia brand
Quality…
Quality is at the heart of Nokia’s brand promise, very
human technology.

• Nokia’s key quality targets are:

 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.
Emerging Markets…
• 1. Break out of cities to rural areas:
Focus on areas, where the cost of
building wireless infrastructure is more
cost effective than in building a fixed
line (China/India)

• 2. Focus on Youth: Imaging and

games (China/India)
Lifecycle …
• Globally Nokia’s market is at maturity, where as in
India it is still in the Growth stage.

Globally Placed
Here
In India
Rs. Placed here

Time

Product life cycle

THREATS
China Mobile made Copy Of NOKIA
Sets.

Looking mainly at the competition

that are taking away Nokia’s market
share.

Orange, Vodafone and O2 and many

other operators are globally selling
their own brands of phone.

Higher import charges.

Production Unit :
Networks
Technology
China
Finland
India

Mobile Devices and

Enhancements

Brazil
China
Finland
Great Britain
Hungary
India
Mexico
Romania
South Korea