Student Name: Denis Moiseev

Module Title: Brand Management

Name of Tutor: Maricelle Ruiz Calderon

Assignment Title: Nokia Brand Audit

Nokia Brand Audit

Brand inventory

Nokia Mobile Phones is Synonymous to Brilliance and Efficiency. If there is a brand that should
be really credited for its breakthrough technology and major contribution to the advancement in
the mobile phones industry then it is certainly the Finnish brand Nokia.

Nokia brand history dividing into four parts which is: Nokia First Century, The move to mobile,
Mobile revolution, Nokia now

Nokia First Century (1865-1967)

The first Nokia century began with Fredrik Idestam's paper mill on the banks of the Nokianvirta
river. Between 1865 and 1967, the company would become a major industrial force; but it took a
merger with a cable company and a rubber firm to set the new Nokia Corporation on the path to
electronics. Nokia started by making paper – the original communications technology. The
history of Nokia goes back to 1865. That was when Fredrik Idestam built a wood pulp mill on
the banks of the Tammerkoski rapids, in southern Finland. A few years later, he built a second
mill by the Nokianvirta river – the place that gave Nokia its name. In 1898, Eduard Polón
founds Finnish Rubber Works, which will later become Nokia's rubber business. In 1912,
Finnish Cable Works founded Arvid Wickström starts Finnish Cable Works, the foundation of
Nokia's cable and electronics businesses. In 1960, Cable Works establishes its first electronics
department, selling and operating computers. In 1962, First in-house electrical device, The Cable
Works electronics department produces its first in-house electrical device - a pulse analyzer for
nuclear power plants. In 1967, Nokia Ab, Finnish Rubber Works and Finnish Cable works
formally merge to create Nokia Corporation.

The move to mobile (1968-1991)

The newly formed Nokia Corporation was ideally positioned for a pioneering role in the early
evolution of mobile communications. As European telecommunications markets were
deregulated and mobile networks became global, Nokia led the way with some iconic products.
In 1979, Radio telephone company Mobira Oy begins life as a joint venture between Nokia and
leading Finnish television maker Salora. In 1981, The mobile era begins, Nordic Mobile
Telephone (NMT), the first international mobile phone network, is built. In 1982, Nokia makes
its first digital telephone switch, The Nokia DX200, the company’s first digital telephone switch,
goes into operation. In 1984, Nokia launches the Mobira Talkman portable phone. In 1987,
Mobira Cityman – birth of a classic, Nokia launches the Mobira Cityman, the first handheld
NMT phone. In 1991, GSM – a new mobile standard opens up, Nokia equipment is used to make
the world’s first GSM call.

Mobile revolution (1992-1999)

In 1992, Nokia decided to focus on its telecommunications business. This was probably the most
important strategic decision in its history. As adoption of the GSM standard grew, new CEO
Jorma Ollila put Nokia at the head of the mobile telephone industry’s global boom – and made it
the world leader before the end of the decade. Nokia launches its first GSM handset, the Nokia
1011. In 1994, Nokia Tune is launched. Nokia launches the 2100, the first phone to feature the
Nokia Tune. In the same year the world’s first satellite call is made, using a Nokia GSM handset.
In 1997, Snake – a classic mobile game, the Nokia 6110 is the first phone to feature Nokia’s
Snake game. In 1998, Nokia becomes the world leader in mobile phones. In 1999, The Internet
goes mobile. Nokia launches the world's first WAP handset, the Nokia 7110.

Nokia now (2000-present)

Nokia’s story continues with 3G, mobile multiplayer gaming, multimedia devices and a look to
the future. In 2002, Nokia launches its first 3G phone, the Nokia 6650. In 2003, Nokia launches
the N-Gage, mobile gaming goes multiplayer with the N-Gage. In 2005, The Nokia Nseries is
born, Nokia introduces the next generation of multimedia devices, the Nokia Nseries. The
billionth Nokia phone is sold. Nokia sells its billionth phone – a Nokia 1100 – in Nigeria. Global
mobile phone subscriptions pass 2 billion. In 2007 Nokia recognized as 5th most valued brand in
the world. Nokia Siemens Networks commences operations. Nokia launches Ovi, its new
internet services brand.

Product-related attributes

Nokia core business practices and philosophies are providing their customers with stylish,
usable, robust, experiential and relevant devices with Nokia’s signature and world famous
quality and ease of use. Nokia mobile phones provide to customer functional and emotional
benefits:

Functional benefits

-GPS

-PC integration

-Media player

-MP3 player
-Camera

-Bluetooth and Infra red

-Call recording

-Internet

Emotional benefits

-Style

-Satisfaction

-Image

-Brand

-Professionals

-Expression

-Look

-Innovation and technology demanding people

Brand portfolio

Nokia includes ten different series of mobile phones, each with a subset of different models
which define the whole product range in series

-Nokia 1xxx (basic) series are ultrabasic series, the 1xxx series is basic mobile phones.

-Nokia 2xxx (basic) series are like the 1xxx series, the 2xxx series are entry-level phones.
However, the 2xxx series generally contain more advanced features than the 1xxx series; many
new 2xxx series phones have color screens and some have cameras and Bluetooth.

- Nokia 3xxx (Expression) series are mostly mid-range phones targeted to the youth market.
Some of the models in this series are targeted to young male users.

-Nokia 5xxx (Active) is similar in features to the 3xxx series, but often contain more features
towards active individuals. Many of the 5xxx series phones feature a rugged construction or
contain extra features for music playback.
-Nokia 6xxx (Classic Business Series) series is Nokia's largest family of phones. It consists
mostly of mid-range to high-end phones containing a high amount of features. The 6xxx series is
notable for their conservative, unisex designs, which make them popular among business users.

-Nokia 7xxx (Fashion and Experimental) Most phones in this series are targeted towards fashion
users, particularly towards women.

-Nokia 8xxx (Premium) series is characterized by ergonomics and attractiveness. The internals
of the phone are basic; however the physical handset itself offers a level of functionality which
appeals to users who focus on ergonomics.

-Nokia Eseries is Enterprise series

- Nokia Nseries is Mobile Computer series

- Nokia Xseries is Multimedia series

Brand equity drivers

Nokia has succeeded where other big brand names have failed, mostly by putting together the
human technology and dominating in the emotional high ground.

Nokia doing very well in terms of research and development, manufacture and sales in many
countries throughout the world. Nokia Research Center was founded in 1986, is industrial unit
which helps Nokia develop its innovative products, this unit consisting of about 800 researchers,
engineers and scientists. In December 2008, Nokia had R&D in 16 countries and employed
approximately 31% of total workforce.

Nokia also distinguishes itself through its pricing strategy. Nokia launch a product at a premium
price, and in half a year decreasing it gradually by 30% total. Nokia product range allow to
customers choose not only by technology features, but also by price. Prices starts at about 20
Euros for the basic 1xxx series and can reach 900 Euros for multimedia series or 60000 Euros for
Vertu.

Nokia sell products through different distribution channels such as Concept Stores, Shop-in-
Shops and through the internet web site, also possible to buy Nokia through not official retailers
but in this circumstances price would be higher and without guarantee.

Nokia has several competitors in huge mobile phone industry. Competitors such Samsung, Sony
Ericsson, Motorola, Apple and future probably one of main competitors, Google with its Nexus
One.
iPhone is one of main competitors with its innovative approach and totally different vision of
how mobile phones need to look like. iPhone has iTunes, useful tool for downloading software
and music, basically iPhone is integration of mobile phone and iPod, popular mp3 player which
transmit its popularity to iPhone.

Brand exploratory

Customer knowledge

Nokia has used it Research and development techniques along with innovation to become the
most recognized and powerful mobile phone producer. Typical consumer brand associations for
Nokia might be ‘innovative’, ’high quality’, ’worldwide’, ’user-friendly’, ’popular’,
‘comfortable’ and ‘inspiring’ displays Nokia mental map.

Mental map

Sources of brand equity

Nokia has big brand equity, below mentioned main:

-Sports: ‘Nokia had been the long term title sponsor for the FIS Snowboard World Cup.
International Ski Federation (FIS) and Nokia have signed a three-year sponsorship agreement,
which gave high visibility to Nokia in the 78 events around Europe, USA, Canada and Japan in
the 1998-1999 season’. Nokia continue to sponsor Extreme winter games, customers can see
Nokia logos on sides of road for snowborders and Ski.

-Concerts: Nokia is sponsoring national and international music festivals, in contrast to any
others by very unusual place to perform it every time. By using high technology, Nokia is going
maximum away from common and turn to modern and innovative. It gives such an atmosphere
that everybody will remember.

-Experiential marketing: In 2005, in big outlets in Russia buyers had the opportunity to run some
tests with the phone’s Mp3 player and record their own track. The best composer got a main
prize-audio system.

-‘As one of the major supporters of the MobileMuster, Nokia urgers it customers to recycle any
old phones they have this month and the industry will plant a new tree for each phone handed in.
The MobileMuster is the official recycling program of the mobile phone industry.’ Nokia
contribute MobileMuster by 30 cents for each handset it sells in Australia.

The customer-based brand equity pyramid (CBBE)

The customer-based brand equity pyramid for Nokia is equally strong from top of pyramid till
end, Nokia has focused on both the superior product attributes and the imagery associated with
owning and use Nokia mobile phones. Below the Nokia customer-based brand equity pyramid
that highlights main aspects.

Piracy

Counterfeited Nokia mobile phones, especially very popular models such as Nokia N95, are
damaging the company’s brand equity and present a huge risk to Nokia. Counterfeited Nokia
mobile phones are coming from China and other Asians countries, this phones are cheap by 10
times but the main problem for Nokia brand Equity is counterfeited phones looks the same but
by features there nothing except just phones, it damaging Nokia’s one of main equity,
technology features. In fact, Nokia dedicated sources to fighting illegal use of brand, including
data about official retailers and official shops, to Nokia web site.

Recommendations

The Nokia brand audit reveals a very strong brand with much equity. But, there are some
opportunities that Nokia can use.

Compete with Apple

Nokia need to come with some fresh device to market for improving on Nokia innovation to
compete Apple iPhone. iPhone is something fresh for customers, so Nokia need to fight back to
iPhone.

Sell more software

Nokia need to start selling more software, games, videos, movies etc. through Nokia web site. It
is a great opportunity to reach more customer loyalty and increase revenues.
Provide more service to customers

Nokia need to make extra service for each customer that buy Nokia, for example free access to
Nokia software for a year. This can help to fight counterfeited products.

Make joint venture with fashion brand

Nokia can make joint venture with fashion brand such as Gucci or Dolce&Gabanna to create
fashion mobile phone. As Samsung did with Giorgio Armani.

Nanotech mobile phones

Nokia already did some steps in nanotechnology phones with Nokia morph, but it just concept,
so Nokia need to make more attention on this idea and bring it to real world.

References

Nokia history, www.nokia.com

Nokia sponsorship, www.nokia.com

"Nokia – Towards Telecommunications". Nokia Corporation. August 2000.

"Nokia Research Center". Nokia Corporation. October 2007.