Beruflich Dokumente
Kultur Dokumente
By-
VORA VASHIM
ROLL NO-15
CONTENTS
5-Target audiencBe
8-Consumer Poll
9-Bibiology
Nokia-INTRODUCTION
Nokia Corporation
History
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.[16]
Telecommunications era
The seeds of the current incarnation of Nokia were planted with the founding of the
electronics section of the cable division in the 1960s. In the 1967 fusion, that section was
separated into its own division, and began manufacturing telecommunications equipment.
Nokia had been producing commercial and military mobile radio communications
technology since the 1960s. Since 1964 Nokia had developed VHF-radio simultaneously
with Salora Oy, which later in 1971 also developed the ARP-phone. In 1979 the merger
of these two companies resulted in the establishment of Mobira Oy. Mobira began
developing mobile phones for the Nordic Mobile Telephony (NMT) network standard
that went online in the 1980s and in 1982 it introduced its first car phone, the Mobira
Senator for NMT 450 networks.
The Mobira Cityman 200, Nokia's NMT-900 mobile phone from the early 1990s.[17]
Nokia bought Salora Oy in 1984 and now owning 100% of the company, changed the
company's telecommunication branch name to Nokia-Mobira Oy. The Mobira Talkman,
launched in 1984, was one of the world's first transportable phones. In 1987, Nokia
introduced one of the world's first handheld phones, the Mobira Cityman 900. While the
Mobira Senator of 1982 had weighed 9.8 kg (22 lb) and the Talkman just under 5 kg
(11 lb), the Mobira Cityman weighed only 800 g (28 oz) with the battery and had a price
tag of 24,000 Finnish marks (approximately €4,560).[18] Despite the high price, the first
phones were almost snatched from the sales assistants’ hands. Initially, the mobile phone
was a "yuppie" product and a status symbol.
In 1988, Jorma Nieminen, resigning from the post of CEO of the mobile phone unit,
along with two other employees from the unit, started a notable mobile phone company
of their own, Benefon Oy. One year later, Nokia Mobira Oy became Nokia Mobile
Phones and in 1991 the first GSM phone was launched.
Involvement in GSM
Nordic Mobile Telephony was the world's first mobile telephony standard that enabled
international roaming, and provided valuable experience for Nokia for its close
participation in developing Global System for Mobile Communications (GSM). It is a
digital standard which came to dominate the world of mobile telephony in the 1990s, in
mid-2006 accounting for about two billion mobile telephone subscribers in the world, or
about 80% percent of the total, in more than 200 countries. The world's first commercial
GSM call was made in 1991 in Helsinki over a Nokia-supplied network, by then Prime
Minister of Finland Harri Holkeri, using a Nokia phone.
Progression of size in Nokia mobile phones.
In April 2003, the troubles of the networks equipment division caused the corporation to
resort to similar streamlining practices on that side, including layoffs and organizational
restructuring.[24] This diminished Nokia's public image in Finland,[25][26] and produced a
number of court cases and an episode of a documentary television show critical of Nokia.
[27]
On September 22, 2003, Nokia acquired Sega.com, a branch of SEGA which has been
the mayor basis to build up the Nokia N-Gage.[28]
Despite these occasional crises, Nokia has been phenomenally successful in its chosen
field. Its growth has come mostly during the era of Jorma Ollila as CEO and his team of
about six close colleagues. In June 2006, Ollila left to become the chairman of Royal
Dutch Shell. Nokia's new CEO is Olli-Pekka Kallasvuo.
The Nokia 6300, a member of the Nokia 6000 series, Nokia's largest family of phones.
.
- INTRODUCTION
While Sony Ericsson has been enjoying strong growth recently, its South Korean rival
LG Electronics overtook it in Q1 2008 due to the company's profits falling significantly
by 43% to €133 million, sales falling by 8% and market share dropping from 9.4% to
7.9%, despite favourable conditions that the handset market is expected to grow by 10%
in 2008. The situation is getting worse as Sony Ericsson announced another profit
warning in June 2008[1] and saw net profit crash by 97% in Q2 2008, announcing that it
would cut 2,000 jobs, leading to wide fear that Sony Ericsson is on the verge of decline
along with its struggling rival, Motorola.[2]
Sony Ericsson has, as of July 18, 2008, approximately 9,400 employees and 2,500
contractors worldwide. The company's current President is as of November 1 Hideki
Komiyama (小宮山英樹), who has replaced Miles Flint, and the Corporate Executive
Vice President is Anders Runevad.
Ericsson, which had been in the cellular phone market for decades, decided to divest this
business in 2001 following huge losses. Ericsson had decided to source on chips for its
phones from a single source, a Philips facility in New Mexico. In March 2000 a fire at the
Philips factory contaminated the sterile facility. Philips assured Ericsson and Nokia (the
other major customer of the facility) that production would be delayed by less than a
week. When it became clear that production would actually be compromised for months,
Ericsson was faced with a serious shortage. Nokia had already begun to obtain parts from
alternative sources, but Ericsson's position was much worse as both production of current
models and the launch of new ones was held up.[3]
In the United States, Ericsson partnered with General Electric in the early nineties,
primarily to establish a US presence and brand recognition.
Sony Ericsson is the global title sponsor of the Women's Tennis Association (WTA), and
works with the Association to promote the Tour in over 80 cities.
Sony Ericsson acquired UIQ Technology, a Swedish software company from Symbian
Ltd. in February 2007. UIQ will remain an independent company, Miles Flint announced.
[citation needed]
On October 15, 2007, Sony Ericsson announced on Symbian Smartphone Show that they
will be selling half of its UIQ share to Motorola thus making UIQ technology owned by
two large mobile phone companies.
SALES & STATS
NOKIA
NOKIA SALES RETURN TO GROWTH WITH STRONG PROFITABILITY
October 17, 2007
Nokia's net sales decreased by 5% to EUR 21 173 million (EUR 22 403 million). Sales of
Nokia Mobile Phones were flat at EUR 16 469 million (EUR 16 448 million). Sales of
Nokia Networks decreased by 20% to EUR 4 455 million (EUR 5 577 million). Sales of
Nokia Ventures Organization decreased by 21% and totaled EUR 352 million (EUR 443
million).
Operating profit increased by 32% to EUR 3 314 million (EUR 2 509 million),
representing an operating margin of 15.7% (11.2%). Operating profit in Nokia Mobile
Phones increased by 16% to EUR 3 559 million (EUR 3 064 million), representing an
operating margin of 21.6% (18.6%). Operating profit in Nokia Networks increased to
EUR 33 million (EUR 0 million), representing an operating margin of 0.7% (0%). Nokia
Ventures Organization reported an operating loss of EUR 135 million (operating loss of
EUR 482 million). Common Group Expenses, which comprises Nokia Head Office and
Nokia Research Center, totaled EUR 143 million (EUR 73 million).
Financial income totaled EUR 104 million (EUR 80 million). Profit before tax and
minority interests was EUR 3 399 million (EUR 2 580 million). Net profit totaled EUR 2
335 million (EUR 1 750 million). Earnings per share increased to EUR 0.49 (basic) and
to EUR 0.49 (diluted), compared with EUR 0.37 (basic) and EUR 0.37 (diluted) in
January to September 2001.
The average number of employees during the period from January to September 2002
was 52 963. At September 30, Nokia employed a total of 52 392 people (53 849 people at
December 31, 2006).
At September 30, 2002, net debt-to-equity ratio (gearing) was -52% (-41% at December
31, 2006). During the January to September period, 2002, capital expenditure amounted
to EUR 348 million (EUR 820 million).
On September 30, the Group companies owned 969 840 Nokia shares. The shares had an
aggregate par value of EUR 58 190.40, representing 0.02% of the share capital of the
company and the total voting rights. The number of issued shares on September 30 was 4
760 795 093 and the share capital was EUR 285 647 705.58.
The joint venture between Sony and Ericsson has announce a strong increase in
sales for the second quarter of 2003. Units shipped in the quarter reached 6.7
million, which is 34% higher year-on-year and 23% higher compared to the first
quarter 2008.
Net sales for the quarter were Euro 1.125 million, representing year-on-year and
sequential increases of 18% and 40%, respectively.
In the areas of strategic focus and in the wake of successful product launches,
the GSM business posted 84% year-on-year growth in shipments and Japanese
standards shipments increased 45% year-on-year. This business growth is
attributable to a strengthened product offering coupled with strongly improved
supply and logistics performance.
Sony Ericsson has earlier announced the decision to increase its focus on
GSM/EDGE/UMTS and Japanese standards. Further to the phase-out of Sony
Ericsson's American CDMA business and GSM R&D activities in Munich, total
restructuring costs are estimated to approximately Euro 70 million of which Euro
58 million has been recognized in the second quarter.
The restructuring activities are well underway and are projected to generate
yearly run-rate savings of approximately Euro 120 million when completed, with
some benefit in the second half of 2008.
Q1 Highlights:
• Year-on-year volume growth of 2%
• Income before taxes at higher end of forecast
• R&D investment continues to expand portfolio and
addressable market
• New sub-brand XPERIA™ added to portfolio
NOKIA is world largest mobile manufacturer , with 64.44% of the GSM/TDM market
and 2.9% of CDMA market. Despite agument that the US handset market is about to
follow the footsteps of the PC-industry in which the product is becoming increasingly
coomotidized-NOKIA has thas far managed to establish a powerful brand that has been
widely recognised as the key to its recent successes.It has been ranked world’s fifthy
most valueable brand , following coco-cola,microsoft,IBM & INTEL.
In 1989 , Matii alahuuta developed A new stratergy for NOKIA that focused on 3-main
points-
By 1990,NOKIA had already begun to identify some of the features that will eventually
establish as the leader in setting industry benchmarks . The NOKIA 2100 , lauched that
year , gained popularity with a large screen , elegent design , and a clean user interface.
During early’s 1990 , Frank Nuovo , head of Nokia’s worldwide design team , led
NOKIA to designs that offered customizable rings , elliptical designs,and custom
faceplate.
NOKIA than changed the stratergy by 2000 as knowing the fact that they are the market
leaders in telecom
NOKIA
CONNECTING PEOPLE
To provide context to the recommendations discussed in this paper, an analysis of the key
strengths of its current marketing strategy is imperative. Specifically, an understanding of
its
recent success provides hints regarding the particular competencies that Nokia should
leverage as
it develops a strategy to maintain market leadership and profitable growth.
Nokia is currently the world’s largest mobile phone manufacturer, with 64.4% of the
GSM/TDMA market and 2.9% of the CDMA market6. Despite the argument that the
U.S.
handset market is about to follow in the footsteps of the PC industry – in which the
product is
becoming increasingly commoditized – Nokia has thus far managed to establish a
powerful
brand that has been widely recognized as the key to its recent successes. It has been
ranked as
the world’s fifth most valuable brand, following Coca-Cola, Microsoft, IBM, and Intel7.
The
Nokia brand is an asset that has been carefully cultivated during the past ten years,
throughout
which the company has managed to predict and satisfy consumers’ needs and preferences
ahead
the competition.
In 1989, Matti Alahuhta developed a new strategy for Nokia that focused on three key
points:
• the development of a product with global appeal
• nimble movement to sell it internationally
6 Infotech Trends
7 Financial Times, “Inside Track: The Nordic minnow that took over the sea”,
London Edition, June
20,2001.
Haas School of Business, U.C. Berkeley NOKIA – It’s tough being #1
8
• most importantly, a commitment to learning what consumers want, without
consideration of the limits of existing technology
By 1990, Nokia had already begun to identify some of the features that would eventually
establish it as the leader in setting industry benchmarks. The Nokia 2110, launched that
year,
gained popularity with a large screen, elegant design, and a clean user interface. During
the
early 1990s, Frank Nuovo, head of Nokia’s worldwide design team, led Nokia to design
phones
that offered customizable rings, elliptical designs, and custom faceplates8. Although such
features may appear trivial or obvious in hindsight, Nokia continued to gain market share
by
paying attention to the details that worked to enhance ease of use and customizable
preferences.
The insight that the handset could be a stylish fashion accessory, rather than merely a
communication tool, allowed Nokia to lead the trends and direction of the entire handset
industry.
In addition to a superior design effort, Nokia assembled a diverse team to research how
consumers can use its phones. The team consisted of engineers, graphic designers,
sociologists,
psychologists, and even a theatre director. While they’ve designed similar, easily
recognized
handsets, Nokia has successfully segmented the market to targe t specific demographic
groups.
For example, in the year 2000, different phones were marketed to appeal to the “rugged”
user,
the “sophisticated” user, and the youth market, among others.
8 Cahners Business Information, “A Tale of Two Mobile Telephone Makers”, May
2000.
Haas School of Business, U.C. Berkeley NOKIA – It’s tough being #1
9
With all these product innovations, designed to satisfy customer preferences, Nokia has
reinforced its brand image of providing cutting-edge communications technology.
Analysts have
positively characterized the company by describing it as “young, sexy, sophisticated, hip
and
generally ‘with it.’” 8 Alternatively, they’ve compared Ericsson as an “austere,
conservative,
middle-aged Swedish engineer,” which supports the widely held belief that Ericsson’s
handsets
are unfashionable. Since Motorola lethargically moved from analog to digital phones,
Nokia
was able to overtake them as the leader in the handset market by 1998. Subsequently,
Nokia
leveraged its superior marketing strategies and powerful brand to avoid the price wars
that have
recently afflicted its key competitors9.
Sratergy used by the brand to promote
the product
Sony Ericsson India’s Brand Ambassador Superstar Hritik Roshan endorsing
new series Walkman Phone.
Sony Ericsson mainly targets MUSIC as their USP and similarly Sony Ericsson
Marketing Strategy concentcentrate more on MUSIC FACTOR to promote their
product.
Now that Sony Ericsson has established the mobile phone as a credible digital music
player, mobile music-related applications are becoming an increasingly important
component of Sony Ericsson's product offering.
• Music has become one of the main drivers for 3G and large data
entertainment services for the mobile phone end-user and will continue to
gain in importance. Sony Ericsson is committed to maximizing the value
and experience for the end-user and to increasing revenue for operators,
and the Walkman family of mobile phones do this through music. Music-
related services, content and applications are fundamental parts of our
overall content strategy.
• Even though the Walkman portfolio is the main focus of Sony Ericsson's
music activities, music solutions for our other series of mobile phones are
just as relevant. Network limitations, product market reach, end-user
choice and model-version exclusivity to certain operators mean that we
need to make sure that the music experience is as good as possible across
our product portfolio.
• Sony Ericsson monitor the DRM standards set by the industry and strive
to have products that are media source, and hence DRM, agnostic. All
current Sony Ericsson mobile phones support the standard Open Mobile
Alliance's (OMA) DRM v 1.0.
UNIQUE
SELLING
POINT
FOR
NOKIA
CONNECTING PEOPLE
.NOKIA-N- SERIES currently most famous multimedia cum business cum fun cum
music phones.
For example-NOKIA- N72, N73, N70, N77, N80, N81,N82, N90, N91, N93, N93i, N95,
N96 & more to come……
.NOKIA NAVIGATOR SERIES phones have in built GPS (Global Positioning System)
which helps one to navigate through a country all major road to all corners.
For example-NOKIA-6110,6210 & more to come……
. NOKIA’S basic entry level phones which gives good DURABILITY and promise for
EXTRA BATTERY LIFE..
For example-NOKIA-1200,1208,1209,1650,2626,2630,2600,2760
& more to come……
UNIQUE
SELLING
POINT
FOR
SONY ERICSSON USP is their EXELLENT
MUSIC QUALITY in each genre of mobile
provided .
Waklman series are the most famous sereis of handset for SONY ERICSSON .
For example- SONY ERICSSON-W-200i,380i,W-
550i,W580i,W660i,W700i,W810i,W902i
& more to come……
. SONY ERICSSON –P-SERIES-phones are SMART phones used by Business and IT-
Professional for high internet usage in their mobiles.
For example- SONY ERICSSON-P-910i,990i,P-1i & more to come……
. SONY ERICSSON –J-SERIES-phones are enrty level or basic phones which gives us
basic features and RADIO in addition.
For example- SONY ERICSSON-J-110i,120i,200i,210i,230i & more to come……
Target audience
NOKIA
CONNECTING PEOPLE
By providing different series and genre if hand set NOKIA target all most all audience
from different age group , sex , profession and so on.
.NOKIA Xpress Music series targets youth and all music lovers as the hansdets
Comes with exellent sount clarity and provide huge music and video storage memory.
.NOKIA Classic series are budget handset which targets middle-class audience by
providing them a mobile with all the advance feature at a lower price
.NOKIA Basic entry level phones are phones for all , specially used by old age people.
As these mobiles are light ib weight and with only features and available at lowest cost.
Target audience
By providing different series and genre if hand set SONY ERICSSON all most all
audience from different age group , sex , profession and so on.
. SONY ERICSSON K-Sereis phones are phones with high camera resolution and
exellent picture quality therefore people in media , journalism , photographers are
targeted.
. SONY ERICSSON W-Sereis phones are specially for MUSIC LOVERS W-Series
phones targets youth and all those who loves music and want exellent music clarity on
the move.
. SONY ERICSSON T-Series phones are targets female audience as T-Series phones are
sleek , delicate and good looking.
.SONY ERICSSON J-Series phones are entry level phones targets all audience who
requires basic phones with good battery life.0
Which accordingly is a better
product?
By reviewing the genres , sereies , types of phones provided by both brands
its difficult to decide that which one is better?????
2-Battery life of NOKIA phones are much better than Sony Ericsson.
6-NOKIA have more numbers of products in each sereies and thus more to give to
the end user.
My Suggestion to the BRAND.
NOKIA
CONNECTING PEOPLE
Resist Commoditization
The first recommendation is that Nokia resist commoditization. While the
commoditization of
the handset may be an undeniable, inexorable process, we recommend that Nokia make
attempts
to slow the process down. Nokia’s brand equity stands as one if its strongest competitive
advantages. By continuing to build its brand, Nokia will be able to leverage that brand in
shortterm
handset sales as well as in future long-term dealings with other entities in the value chain
for telecommunications services. Nokia should strengthen its brand through both pus h
and pull
marketing; push marketing is the targeting of the next link in the value chain, while pull
marketing is the targeting of end-users in such a way that they ultimately “pull” the
product
through the value chain13. See Figure 3 of the Appendix.
As described earlier, Nokia’s current position as a handset maker in the value chain is
weak.
With a direct line to customers, it is the service operators (e.g., AT&T, Verizon, Sprint
PCS, and
Cingular) who wield the most power in deciding what customers see with respect to the
marketing mix: product, price, place, and promotion. In fact, handset makers in Japan are
relegated to a single- letter designation on the handset. A Fujitsu phone, for example,
simply
shows “F” on the phone accompanied by a model number. Service providers want
customers to
see the names of their respective companies, not those of the handset makers.
13 Winer, Russell S. Marketing Management. Prentice Hall, New Jersey. 2000.
Haas School of Business, U.C. Berkeley NOKIA – It’s tough being #1
14
Nokia should take steps to ensure that the U.S. market does not follow the same path as
the
Japanese market with respect to the name on the handset. One way to do this is to ask the
service providers to sign a long-term contract, such as a ten-year agreement, stipulating
that the
brand name “Nokia” remain on the phone. If Nokia is ever going to siphon power away
from the
service providers, now is the time. Service providers are facing intense competition and
Nokia
has built such a strong brand that customers are asking for Nokia phones. Service
providers are
already leveraging the Nokia brand to attract customers. For example, Sprint PCS
currently has
a promotion specifically touting a Nokia phone as a sign- up incentive for its service.
On the pull side, to encourage customers to purchase its phones, Nokia should continue
with
direct-to-consumer advertising, including sponsorships and product placements. Nokia
has an
advantage over service providers in using product placements because it is able to show a
tangible product that people would want to purchase14. Nokia is currently sponsoring
television
shows such as “Alias” and has strategically placed its products in movies such as The
Matrix.
Nokia may achieve something similar in some ways to what Intel has done with the chip
with
“branding the ingredient” and branding to the end-user, such that the handset brand
factors into
the customer’s decision of service providers. In the short-term, with Nokia’s handsets
positioned as “stylish” and “cutting edge,” customers will continue to pay for the
perceived
14 “If Product's Invisible, Can it be Placed?” The Wall Street Journal, Marketplace section, April 9, 2001.
Haas School of Business, U.C. Berkeley NOKIA – It’s tough being #1
15
added value of the brand. In the long-term, as Nokia transitions from handsets into other
markets, such as networking and Internet services, it will be able to leverage its brand;
customers
will have positive associations with the name and Nokia’s designs may provide a sense of
not
only being “hip” but innovative.
My Suggestion to the BRAND.
Suggestion to Brand Sony Ericsson as follows
.Sony Ericsson mostly concentrate on music feature of mobiles and provides MUSIC
handsets in all range .
. Sony Ericsson must provide more business series phone as the current P-Series handset
is not available in variety.
. Sony Ericsson must provide some more handset in Basic Entry Level phones as there is
no much numbers of handset in basic entry level.
. Sony Ericsson must increase number of service centres as its difficult for an end user to
search for Sony Ericsson Service Centre.
. Sony Ericsson After Sale Services should be reviwed as many end user are facing
severe problem on that.
. Sony Ericsson phones are not more user friendly the basic software to be changed for
solving the end user issues.
. Sony Ericsson must make more durable products as the current handsets are very
delicate and hard to handle.
Consumer poll
Consumer poll
Questioneir
Q1-When you think of mobiles which brands comes to your mind first?
Q3-Why?
.
Excellent
Very Good
Good
Average
Poor