CONFIDENTIAL
ABOUT Presented by
THE COMPANY
Group- 1.
Nokia Corporation is a Finnish multinational communications
corporation that is headquartered in Keilaniemi, Espoo, a city
neighboring Finland's capital Helsinki .
Nokia is engaged in the manufacturing of mobile devices and
in converging Internet and communications industries, with
128,445 employees in 120 countries, sales in more than 150
countries and global annual revenue of EUR 50.7 billion and
operating profit of 5.0 billion as of 2008.
It is the world's largest manufacturer of mobile telephones: its
global device market share was about 38% in Q3 2009, at the
Nirmalya
same Fadikar,
level as in Q3 Debargha
2008 and in Q2 2009. Mukherjee,
Souryodeep
Nokia has sites forChowdhury, Manash
research and development, Sinha, Sujoy
manufacture
and sales in many countries throughout the world. As of
Dey, Md. Sajjad
December 2008, Nokia had R&D presence in 16 countries and
& Md.
employed 39,350 people ImranandKhan
in research development,
representing approximately 31% of the group's total workforce. 2
FACTS
Nokia is a public limited liability company listed on the
Helsinki, Frankfurt, and New York stock exchanges.
Nokia increased Finland's GDP by more than 1.5% in 1999
alone. In 2004 Nokia's share of the Finnish GDP was 3.5%
and accounted for almost a quarter of Finland's exports in
2003.
The Nokia brand, valued at $34.9 billion, is listed as the
fifth most valuable global brand in the Interbrand/
BusinessWeek Best Global Brands list of 2009 (first non-US
company).
It is the number one brand in Asia (as of 2007)and Europe
(as of 2008),the 42nd most admirable company worldwide
in Fortune's World's Most Admired Companies list of 2009
and the world's 85th largest company as measured by
revenue in Fortune Global 500 list of 2009. 3
Financial…
• Revenue €50.722 bn (2008)
Brazil
China
Finland
Great Britain
Hungary
India
Mexico 6
Romania
South Korea
1. SUPPLIER TO 58 WCDMA NETWORKS.
2.NOKIA FOR BUSINESS MOBILIZES
ENTERPRISES GLOBALLY.
3. 10 PHONES MANUFACTURED EACH
SECOND.
Europe Americas
& Africa 35%
46%
Asia Pacific
18%
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BACKGROUND
Finland, with a special language and culture, has
developed as a country in between the west (the
Nordic region and Europe) and the east (especially
its neighbor Russia). In the 1980s, a process
started of moving out of an investment-driven
economy into an innovation-driven one. With the
collapse of the Soviet Union around 1990, Finland
reached a crisis.
Obvious Question:
How was Finland able to become a world-leading
nation in mobile communications? Why did this
cluster emerge rather than others?
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ANSWER
One distinctive reason why Finland could be a
world-leading nation in mobile communication is
because of the initial demand of such need.
Due to Finland’s geographical character, Finish
population is spread thinly across the country and
only few cities such as Helsinki, Espoo and Vantaa
is heavily populated.
For such reason, a wired communication was not
suitable in Finland and the need for wireless
communication grew, naturally developing mobile
communication technology.
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ORIGIN
Nokia was founded in 1865 by Fredrik Idestam in Finland as a
paper manufacturing company. In 1920, Finnish Rubber Works
became a part of the company, and later on in 1922, Finnish
Cable Works joined them. All the three companies were merged
in 1967 to form the Nokia Group.
The name of Nokia, originated from the river which flowed
through the town. The river itself, Nokianvirta, was named after
the archaic Finnish word originally meaning a small, dark-furred
animal that lived on the banks of the Nokianvirta river.
In the late 1970s, Nokia started taking an active interest in the
power and electronics businesses and by 1987, consumer
electronics became Nokia's major business. Nokia created the
NMT mobile phone standard in 1981 and launched the first NMT
phone, Mobira Cityman, in 1987. The company delivered the first
GSM network to Radkilinia, a Finnish company in 1991, and in
1992, Nokia ion - a precursor for all Nokia's current GSM phones
- was introduced. 11
“ Nokia is world third richest
company ”
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INVOLVEMENT IN GSM
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CORPORATE GOVERNANCE
In 2003, Nokia was the dominant maker of cell phones around the world.
It had more than twice the global handset market share of its closest
competitor, Motorola. While in a position of strength in 2003, the
company faced large challenges in the immediate future.
For example, the so-called third generation (3G) of mobile technology was
experiencing a slow arrival and uncertain consumer reception. In addition,
there was uncertainty about which type of 3G technology would
dominate. Perhaps a larger strategic issue for Nokia, however, was its
plan for its operating system. In the past, other handset makers were
willing to adopt Nokia's popular handset operating system.
By 2003, however, Microsoft has entered the market with its own mobile
operating system. As mobile devices become more robust, e.g.,
incorporating Web-enabled phones with PDAs, the importance of mobile
operating systems increases. How can Nokia contend with the entry of
the extremely well-funded Microsoft into its core market?
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ANALYSIS ON GLOBAL TOP 5
VENDORS AND 2007
FORECAST
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NOKIA WITH 40% MARKET SHARE IN THE
FOURTH QUARTER OF 2007
27
APPLE, RIM EAT INTO NOKIA'S
MARKET SHARE
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STANDING TALL
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Current Market Share Comparison
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MARKETING STRATEGIES NOKIA…
Focused on Handset Manufacture only
Enhance Product Portfolio
Customer Satisfaction
Focused on Replacement
Aggressive Pricing
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Macro Enviroment of NOKIA
POLITICAL FACTOR:
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 32
United Nations Global Compact since
2001
SEGMENTATION STRATEGY
Geographic:
Demographic:
Higher Involvement
Technology Leaders
Technology Stylists
Pragmatic Leaders
Young Explorers
Life Jugglers
Life Builders
Style Leaders
Rational Aspirational
Mature Acceptors Image Seekers
Family Providers Style Followers
Simplicity Seekers
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Lower Involvement
TYPES OF CONSUMERS
Live Consumers This Segment of
Connect Consumers consumer look for
Achieve Consumers design and style
Explore Consumers leadership. they
follow trends and
fashion and have
active Life style
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TYPES OF CONSUMERS
Live Consumers This set of
Connect Consumers Consumers
Achieve Consumers combine ease of
Explore Consumers use and elegant
looks at the same
time like internet
connectivity,
Voice recording
etc.
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TYPES OF CONSUMERS
Live Consumers Smart Business
Connect Consumers people who look
Achieve Consumers for the smartest
Explore Consumers tools for
balancing their
work and life like
internet, calendar
and other value
added service.
37
TYPES OF CONSUMERS
Live Consumers
These set of
Connect Consumers
consumers want
Achieve Consumers
cutting edge
Explore Consumers
technology for
their stylish
lifestyles.
e.g. all N Series
mobile
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THE MARKETING MANTRAS
Being global through Local
Build product & service
Provide better customer service
Product portfolio
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CHALLANGES
In the late 1980s and early 1990s, the corporation ran into serious
financial problems, a major reason being its heavy losses by the
television manufacturing division and businesses that were just too
diverse.These problems, and a suspected total burnout, probably
contributed to Kairamo taking his own life in 1988. After Kairamo's
death, Simo Vuorilehto became Nokia's Chairman and CEO. In 1990–
1993, Finland underwent severe economic depression, which also
struck Nokia. Under Vuorilehto's management, Nokia was severely
overhauled. The company responded by streamlining its
telecommunications divisions, and by divesting itself of the television
and PC divisions.
Probably the most important strategic change in Nokia's history was
made in 1992, however, when the new CEO Jorma Ollila made a
crucial strategic decision to concentrate solely on telecommunications.
Thus, during the rest of the 1990s, the rubber, cable and
consumer electronics divisions were gradually sold as Nokia
continued to divest itself of all of its non-telecommunications
businesses. 41
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NOKIA TELECOMMUNICATIONS:
REDESIGN OF INTERNATIONAL
LOGISTICS
Nokia faces the challenge of implementing the global network model:
global R&D and production networks for global learning and control
combined with local sales and customer service for a local market
presence.
As late as 1991, more than a quarter of Nokia's turnover still came
from sales in Finland. However, after the strategic change of 1992,
Nokia saw a huge increase in sales to North America, South America
and Asia. The exploding worldwide popularity of mobile telephones,
beyond even Nokia's most optimistic predictions, caused a logistics
crisis in the mid-1990s.
This prompted Nokia to overhaul its entire logistics operation. It
launches an international logistics project to provide integrated
solutions delivery and after-sales service.
By 1998, Nokia’s focus on telecommunications and its early
investment in GSM technologies had made the company the world's
largest mobile phone manufacturer. Between 1996 and 2001, Nokia’s
turnover increased almost fivefold from 6.5 billion euros to 31 billion
euros. Logistics continues to be one of Nokia's major advantages over
its rivals, along with greater economies of scale.
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The Supply Chain Process Of Nokia
Tantalum from Brazil, Canada, Russia, China and a number of other countries
in Central Africa.
Other materials
More recently the company has been working with suppliers of other minerals,
such as Cobalt and Tin, to improve transparency of the supply chain and
understand how standards can be promoted.
Channels:
Nokia > Distributer >> Whole seller 47
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CREATING ASPIRATION
Bottom to top End of Pyramid
Marketing
Competitive Analysis
Time
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Strengths of Nokia
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Opportunity:
1.With the wide range in products, features and
different price range for different people, it has
an advantage over the competitors around.
Entry
Level N-Gage
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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.
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ESTIMATING COST – EXPERIENCE
CURVE THEORY :
P1
P2
Price
/Cost P3
Experience Curve
T1 T2 T 72
3
Consumer
Manufacturer Dealer
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AIDA in Nokia – :
A – Attention : attract the attention of the
customer.
Direct Marketing :
• Nokia does not perform Direct Sales
activities on its official website
www.nokia.com.
• Nokia use DEMO style of Direct
Marketing.
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• Nokia does not use Direct Mail or
Telemarketing styles of Direct
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.
77
Branding…
Nokia built its brand with high-end multimedia
handsets for upscale buyers and low-priced
phones for emerging countries.
Branding Decisions :
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NOKIA'S MASTER PLAN FOR 2010
AND BEYOND (CAPITAL MARKETS
DAY)
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TARGETS, NOKIA ALSO OUTLINED KEY
'DEVICES & SERVICES' OPERATIONAL
PRIORITIES FOR 2010. THESE ARE:
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ONGOING RESEARCH
o Handwriting Calculator
A showcase of Nokia’s new handwriting recognition
technology, it allows you to calculate handwritten math
expressions with a touch-screen Nokia device.
o Nokia Mixed Reality
Mixed Reality represents a spectrum of
applications that blend digital and real world
information, allowing users to interact with their
environment in liberating new ways.
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THE FUTURE
www.nokia.com
www.nokiasiemensnetworks.com
www.forbes.com
www. hbr.harvardbusiness.org
www. en.wikipedia.org
www. economictimes.indiatimes.com