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NOKIA

Fredrik Idestam, founder of Nokia. Leo Mechelin

The Nokia House, Nokia's head office located by the Gulf of Finland in Keilaniemi,
Espoo, was constructed between 1995 and 1997. It is the workplace of more than 1,000
Nokia employees.

Type : Public – Oyj (OMX: NOK1V,NYSE: NOK, FWB:NOA3)

Founded: Tampere, Finland (1865) incorporated in Nokia (1871)


Founder Fredrik Idestam

Headquarters Espoo, Finland


Area served Worldwide
Industry Telecommunications
Internet
Computer software
Nokia
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 37% in Q1 2009, down from 39% in Q1 2008 and
unchanged from Q4 2008.Nokia produces mobile devices for every major market
segment and protocol, including, CDMA, and W-CDMA (UMTS). Nokia offers Internet
services that enable people to experience music, maps, media, messaging and games.
Nokia's subsidiary Nokia Siemens Networks produces telecommunications network
equipment, solutions and services. The company is also engaged in providing digital map
information through its wholly-owned subsidiary Navteq.

Nokia has sites for research and development, manufacture and sales in many countries
throughout the world. As of December 2008, Nokia had R&D presence in 16 countries
and employed 39,350 people in research and development, representing approximately
31% of the group's total workforce. The Nokia Research Center, founded in 1986, is
Nokia's industrial research unit consisting of about 500 researchers, engineers and
scientists. It has sites in seven countries: Finland, China, India, Kenya, Switzerland, the
United Kingdom and the United States. Besides its research centers, in 2001 Nokia
founded (and owns) INdT – Nokia Institute of Technology, a R&D institute located in
Brazil. Nokia operates a total of 15 manufacturing facilities located
at Espoo, Oulu and Sal, Finland;Manaus, Brazil; Beijing, Dongguan and Suzhou, China;
Farnborough, England; Komárom, Hungary; Chennai, India;Reynosa, Mexico; Jucu,
Romania and Masan, South Korea. Nokia's Design Department remains in Salo, Finland.

Nokia's history starts in 1865 when mining engineer Fredrik Idestam established
a groundwood pulp million the banks of the Tammerkoski rapids in the town of Tampere,
in southwestern Finland, and started manufacturing paper.In 1868, Idestam built a second
mill near the town of Nokia, fifteen kilometers (nine miles) west of Tampere by the
Nokianvirta river, which had better resources for hydropower production. In 1871,
Idestam, with the help of his close friend statesman Leo Mechelin, renamed and
transformed his firm into a share company, thereby founding the Nokia Company, the
name it is still known by today.
The name of the town, 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 modern Finnish, noki means soot and nokia is its inflected plural, although this
form of the word is rarely if ever used. The old word, nois (pl. nokia) or nokinäätä ("soot
marten"), meant sable. After sable was hunted to extinction in Finland, the word was
applied to any dark-furred animal of the genus Martes, such as the pine marten, which are
found in the area to this day.

Mission:

Vision and strategy

Our promise is to help people feel close to what is important to them

Nokia is a consumer led company. There is a progressive and continuous increase in


consumer involvement with technology and communications globally. People are
broadening their modes of communication to include the web and, social networks are
becoming central to how people communicate.
People want to be truly connected, independent of time and place, in a way that is very
personal to them. And, Nokia’s promise is to connect people in new and better ways.
Nokia’s strategy is to build trusted consumer relationships by offering compelling and
valued consumer solutions that combine beautiful devices with context enriched services.
Objectives:
• To set up a new brand image for Nokia’s mobile phone: Creative and Trendy
• To meet the needs of the niche: Young and Rich customers who are pursuing
stylish lifestyle
• To maximize current profit
• To lead the mobile phone market with innovative and modern new products

Group Executive Board

Olli-Pekka Kallasvuo
President and CEO of Nokia Corporation

Esko Aho
Executive Vice President, Corporate Relations and Responsibility
Robert Andersson
Executive Vice President, Devices Finance, Strategy and Sourcing
Simon Beresford-Wylie
Chief Executive Officer, Nokia Siemens Networks
Timo Ihamuotila
Executive Vice President, Sales
Hallstein Moerk
Executive Vice President, Human Resources
Richard A. Simonson
Executive Vice President, Chief Financial Officer
Anssi Vanjoki
Executive Vice President, Markets
Dr. Kai Öistämö
Executive Vice President, Devices
Production units

Networks technology Mobile devices and technology


China Brazil
Finland China
Finland
Germany Great Britain
India Hungary
India
Mexico
Romania
South Korea

Nokia’s Financial Conditions:

35
30
25
20
2003
15 2004
10 2005

5
0
Revenue Gross Operating Net
Profit Profit Profit

The History of
How it all began – the birth of Nokia

 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.
 A mining engineer by trade, Idestam brought a new, cheaper paper manufacturing
process to Finland from Germany.
 Nokia Ab added electricity generation to its business activities in 1902

Who was Fredrik Idestam?

A mining engineer by trade, Idestam brought a new, cheaper paper manufacturing process
to Finland from Germany.
It was a great success. Idestam’s invention won a bronze medal at the Paris World
Exposition in 1867, and he is considered to be the father of Finland’s paper industry.

1898: Finnish Rubber Works founded

Arvid Wickström founds Finnish Rubber Works, which will later become Nokia's rubber
business.

1912: Finnish Cable Works founded


Eduard Polón starts Finnish Cable Works, the foundation of Nokia's cable and electronics
businesse India, Mexico, Romania, South Korea.
1960: Firstin electronics department

Cable Works establishes its first electronics department, selling and operating computers.

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.

1967: The merger

Nokia Ab, Finnish Rubber Works and Finnish Cable works formally merge to create
Nokia Corporation.

From paper mill to mobile phones


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...

1981: The mobile era begins

Nordic Mobile Telephone (NMT), the first international mobile phone network, is built.

1982: Nokia makes its first digital telephone switch

The Nokia DX200, the company’s first digital telephone switch, goes into operation.

1984: Mobira Talkman launched


Nokia launches the Mobira Talkman portable phone.
1994: Nokia Tune is launched
Nokia launches the 2100, the first phone to feature the Nokia Tune.

1994: World’s first satellite call

The world’s first satellite call is made, using a Nokia GSM handset.

1997: Snake – a classic mobile game

The Nokia 6110 is the first phone to feature Nokia’s Snake game.

1998: Nokia leads the world

Nokia becomes the world leader in mobile phones

Nokia’s story continues

With 3G, mobile multiplayer gaming, multimedia devices...

2002: First 3G phone

Nokia launches its first 3G phone, the Nokia 6650.

2003: Nokia launches the N-Gage

Mobile gaming goes multiplayer with the N-Gage.

2005: The Nokia Nseries is born

Nokia introduces the next generation of multimedia devices, the Nokia Nseries.
2005: The billionth Nokia phone is sold

Nokia sells its billionth phone – a Nokia 1100 – in Nigeria. Global mobile phone
subscriptions pass 2 billion.

2006: A new President and CEO – Nokia today

Olli-Pekka Kallasvuo becomes Nokia’s President and CEO; Jorma Ollila becomes
Chairman of Nokia’s board. Nokia and Siemens announce plans for Nokia Siemens
Networks.

2007

Nokia recognized as 5th most valued brand in the world. Nokia Siemens Networks
commences operations. Nokia launches Ovi, its new internet services brand.

2008

Nokia's three mobile device business groups and the supporting horizontal groups are
replaced by an integrated business segment, Devices & Services.
Number of employees

Sales
Marketing principles of NOKIA

There are many priorities within a business, but in a marketing


orientated company like Nokia, many of the following principles will
be high on the agenda:
1. Customer satisfaction: Market research must be used to find out
whether customers' expectations are being met by current products
or services.

2. Customer perception: this is based on the images consumers have


of the organization and its products, this can be based on; value
for money, product quality, fashion and product reliability.

3. Customer needs and expectations: This is anticipating future


trends and forecasting for future sales. This is vital to any
organization if they wish to keep their entire current market
share and develop more.

4. Generating income or profit: This principle clearly states that


the need of the organization is to be profitable enough to
generate income for growth and to satisfy stakeholders in the
business. Although satisfying the customer is a big part of a
companies plans they also need to take into account their own
needs, such as:

5. Making satisfactory progress: Organizations need to make sure


that their product is developing along with the market, if a
product is developing well, then income should increase, if not
then the marketing strategy should be revised.

6. Be aware of the environment: An organization should always know


what is happening within their designated market, if it is
changing, saturation, technological advances, slowing down or
rapidly growing, being up to date on this is essential for
companies to survive.
Marketing Mix of Nokia
Products
Mobile phones
Classic series – The Mobira series
Original series

 1000–9000 series
 Nokia 2000 series – Basic series
 Nokia 3000 series – Expression series
 Nokia 5000 series – Active series
 Nokia 6000 series – Classic Business series
 Nokia 7000 series – Fashion and Experimental series
 Nokia 8000 series – Premium series
 Nokia 9000 series – Communicator series (discontinued)

Special function phones

 Nokia Eseries – Enterprise series


 Nokia Nseries – Multimedia Computer series
 Nokia N-Gage – Mobile gaming devices (discontinued)
 Vertu – Luxury phones
 Cardphones (PCMCIA)
 Concept phones

Other products

 Digital television
 ADSL modems
 WLAN products
 Telephone switches
 GPS products
 TETRA
 Internet tablets
Price
Psychological pricing

 Consider the psychological approach rather than economic approach


 LV is a high-end brand
 Therefore, people are willing to spend on one a “LV-branded” mobile
phone

Market-Skimming Pricing

 Set a high price


 Skim the maximum revenue
 Decrease the price gradually
 Intiailly we will set a high price around $1200, gradually decrease and
replaced by a newer model
 Maintain a high profit margin

Promotion
 Printed advertisement
 Goal: to create a new reason to buy our new cell phone
 Focus on masculine and feminine magazine, etc
 Car
 Audio/Video products
 Cosmetics
 Fashion

 Online - Advertisement
 Bid on cell-phone before the launch of our product
 TV advertisement
 Demonstrate its outlook and style
 Encourage people to bid our product online
• Road show advertisement.
• Objective: raise awareness of mass people

• Large banner and poster in shopping district


• Urge people to experience new product at place of selling.

Place-
Nokia products are available in whole over the world.

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, specialized outlets (either by network or brand) and all
major department stores.
Competitors
 Many Competitors in this area

 Motorola
 Sony Ericsson
 Samsung
 LG
 Sharp
 Panasonic
 Nokia 37.2%
 Motorola 17.3% 
 Samsung 9.8%
 Siemens 8.5% 
 Sony­Ericsson 5.2%

STRENGTH OPPORTUNITIES

-The Leader in the Industry -Close cooperation with Suppliers and


Intermediaries
-Strong Financial Support for
Investment -Tax Reduction

-Strong R&D Unit -New Demand Created From the


Advancement of Technology
-Strong Customers Relation
WEAKNESS THREATS

-Lack of Innovation -Keen and Strong Competitors

-Human Resources Management -Saturation in Current Market

-Challenges of Continuous
Technological Development
Conclusion
• Nokia currently still the no.1 in mobile industry
• Its growth in profit not comparable to main competitor -
Motorola
• New series of phone: “exquisite” series
• Target on wealthy young adults
• To maintain leadership position and generate more profit to
Nokia

STRENGTH OPPORTUNITIES

-The Leader in the Industry -Close cooperation with Suppliers and


Intermediaries
-Strong Financial Support for
Investment -Tax Reduction

-Strong R&D Unit -New Demand Created From the


Advancement of Technology
-Strong Customers Relation
WEAKNESS THREATS

-Lack of Innovation -Keen and Strong Competitors

-Human Resources Management -Saturation in Current Market

-Challenges of Continuous
Technological Development