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
W2N Inc. 11.4

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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.

Key Statistics
Percent of Households Reporting
Having a Cellular Telephone, By
Selected Income Quintile Source : Data obtained from Statistics Canada, Income
Statistics Division.
Lowest Middle Highest
2004 31.2% 59.8% 84.5%
2005 33.5% 67.6% 88.6%
2006 42.5% 76.2% 90.9%

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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 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. Furthermore, the mix of subscribers in Canada remains
uniquely dominated (close to 80%) by post-paid, longer-term service contracts.

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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

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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 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 other
three P's are based around it. Consumers purchase goods and services
for a variety of individual reasons and a company must be aware of all
of 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.

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

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

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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.

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

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

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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 an

international communications company and a global leader in mobile handset
telephones. 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 and
Siemens, 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 and

communications globally. Nokia always connects people to new and better ways.
Nokia wants to build trusted consumer relationships by offering compelling and
valued consumer solutions that combine beautiful devices with context enriched
services.(www.nokia.com)

Brief History of Nokia

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.

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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 Nokia
Corporation 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

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."

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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.

- 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.

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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.

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.

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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 support
systems software. This unit has five business lines: element operations, network
management, 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.

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.

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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 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, consumers
today 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

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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.

STRENGTHS
STRENGTH
 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
WEAKNESSES
 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.

SWOT ANALYSIS
OPPORTUNITIES THREATS

 Should increase their presence in the  Dominance of 3G & clamshells models

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 position with the network
providers.
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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.
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:
0.00902%
3 Month Chnge: 9.6%

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 Daily time on site for
nokia.com:

Yesterday: 3.9
7 day Avg: 4
1 Month Avg: 3.9
3 Month Avg: 4
3 Month Chnge:5

Where people go on Nokia.com:

21.4% europe.nokia.com
17.8% mosh.nokia.com
14.1% 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 States
4.5% 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
brand

Traditional Media

TV advertisements/Print Media. Press releases and news conferences.

Road shows/Kisok at various malls locations

Exclusive partnership agreements with large telecom players.

Contest over Radio Programs

Internet 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.

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The role of firm’s website in the correlation between Firm and Customers

Internet 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 buyers
inquire 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 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.

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- 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’s
website 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 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.

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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. Finally, Internet greatly benefits
firms’ marketing practice.

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 Bibliography

Wireless Telecommunication Services in Canada August 2008, Industry Profile,

Accessed through Data Monitor

Mobile Phones in Canada December 2008, Industry Profile, Accessed through

Data Monitor

Spectrum Management and Telecommunication -

http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf09116.html

Cellphone Services – Recent Consumer Trends

http://www.ic.gc.ca/eic/site/oca-bc.nsf/eng/ca02348.html

http://www.symbian-guru.com/welcome/2007/02/how-4-ps-will-s.html#

http://www.symbianone.com/content/view/2315/108/

http://www.merinews.com/catFull.jsp?articleID=124478

https://store.nokia.ca/home.php?cat=271

www.businessweek.com/the_thread/blogspotting/archives/2005/04/case_stu
dy_of_a.html

http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy/BSTR
174.htm

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