13328190 Nokia International Marketing

8/7/2019 13328190 Nokia International Marketing

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NOKIA A success Story

Presented By :- P-5

Charul Malik

Gaurav Kumar

Raghubansh Mani Singh

Rajhans SharmaRicha Thakral


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Contd..

In 1970, Nokia started taking an active interest in the power andelectronics businesses

In 1987, consumer electronic became Nokias major business Nokia created the mobile phone standard in 1981a and launched

the first phone , Mobira cityman, in 1981 In 1991, the first GSM network was delivered to Radkilinia, a Finnishcompany

In 1922, Nokia 1011 a precursor for all Nokias current GSMphones was introduced

The company focus on two core business: mobile phones and

telecommunication networks Between 1992 & 1996, the company exited from the rubber and

cable businesses


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NOKIA In India

Entered in 1994 Nokia 2110 first ever GSM call Operating office New Delhi, Mumbai, Kolkata,

Bangalore, Hyderabad, and Ahmadabad The Indian operations handsets and network

infrastructure businesses R&D facility in Bangalore, Hyderabad and

Mumbai

10th manufacturing facility in Chennai, USD 150million, March 2006 and employs over 4100people.


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Some first for Nokia in India

1995 First mobile phone call made in India on a Nokiaphone on a Nokia network

1998 Saare Jahaan Se Acchha, first Indian ringtone ina Nokia 5110

2000 First phone with Hindi Menu (Nokia 3210) 2002 First Camera phone (Nokia 7650) 2003 First Made for India phone, Nokia 1100 2004 Saral Mobile Sandesh, Hindi SMS on a wide

range of Nokia phones 2004 First Wi-fi Phone- Nokia Communicator (N9500)

2005 Local UI in additional local language 2006 Nokia manufacturing plant in Chennai 2007 First vernacular news portal


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Initial Hurdles

When Nokia entered India , telecom policies werenot conducive for growth of mobile phone industry.

Tariffs levied on importing mobile phones were as

high as 27%.

Usage charges Rs.16 per minute, at these high rates,consumer did not take to mobile phones.

Competition from other powerful global players likeMotorola, Sony, Siemens, Ericson.


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Infrastructure business

Infrastructure business is under Nokia Networks (now calledNokia Siemens Network).

Now key supplier to all the top GSM operators includingAirtel, Vodafone, BSNL & IDEA.

Nokia has also set-up its Global Networks Solutions Center inChennai. Solutions Center performs network operation tasksfor operators in Asia Pacific, Europe, Middle East and Africa.

INDIA NOKIA FORESEESGREAT POTENTIAL


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Huge opportunity

India has second largest market after China.

Today 6-7 million new subscribers every month.

Indian consumers tend to change their phone very fast.

COUNTRY CALL RATE (CENTS)

JAPAN 33

BRAZIL 11

AUSTRALIA 24CHINA 4

INDIA 2


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URBANURBAN RURAL TELEDENSITYRURAL TELEDENSITY


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Recent achievements & Recognition

Ranked 4th in the Most Trusted Brand -Survey by BrandEquity - 2007.

RankedNo1. MNC in India by BusinessWorld- 2007.

RankedNo. 1 in the Consumer Durables in India in 2005-06. No. 1 telecom equipment vendor from 2004- 07. Asias most trusted brand in 2006 by the Media-

Synovate survey.

'Brand of the Year'at CII Brand Summit in 2005. Golden Peacock Award 2004for Nokia 1100, for most

innovative product in the telecom segment.


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Year 2008

India is only country where Nokia is present in the entirerange- R & D, retail, manufacturing and services.

75000+ outlets to sell Nokia products. Nokia has 62.5% share in mobile handset market in India. Launched a new service brand Ovi for Internet services. To access on-demand online music and games besides

other entertainment content.

Nokia N95 with maps that enable users to find their way

to people and places. Maps services also have a routefinder.


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Revenue


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SWOT ANALYSIS


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Strengths

One of the most popular mobile communication.company in the industry

Offering high product quality.

Wide range of product.

Product warrantee worldwide.

Fashionable product ( serve new trend).

Global marketing (product).


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WEAKNESSES

Higher price as compared to competitors

High supply chain cost


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OPPORTUNITIES

Increase their presence in the CDMA market, whichthey are just entering, as well as 3G and Edge.

New growth markets where cell phone adoption still

has room to go, including India and other countries.

Joint venture in technology.


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THREATS

Looking mainly at the competition that are takingaway Nokias market share.

Government legislations that hinder Nokias

development as a company

(total cost of 3G licensing in Europe is 110 billion

euros).

Higher import charges.


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MARKETING MIX


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Product

Latest technology.

Text messaging and games like Snake and Memory.

Bulky and quite unattractive but now they are allquite sleek and stylish.

Accessories that consumers buy with them (carry

cases, hands free kits and in-car chargers).


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Price

Penetration Pricing

Competitor Based Pricing


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Place

Mobile phone dealerships

Retailers and electrical suppliers.


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Promotion

One Big Advertising Campaign


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Organizational Culture

The Nokia Way-emphasizes the speed and flexibility ofdecision-making.

Flat-networked organization with a certain amount of

bureaucracy.

Equality of opportunities and employee participation.

The Nokia Values are Customer Satisfaction, Respect,

Achievement, and Renewal.


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Product Life Cycle


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The Morph concept

Nokia N- Series

Nokia E- series

Nokia Symbian series


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The Product Life Cycle (International)

Time

Growth

Maturity

Decline

Introduction

Sales curve

The Morph concept

Nokia E- series

Nokia Symbian& N- Series

Nokia 30 & 40 Series


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The Product Life Cycle (India)

Time

Growth

Maturity

Decline

Introduction

Sales curve

Nokia E- series

Nokia Symbian series

Nokia N- Series

Nokia 30 & 40 Series


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PESTLE ANALYSIS

POLITICAL FACTOR:

ECONOMIC FACTOR:

SOCIAL FACTOR:

Nokia has been a member of the United Nations GlobalCompact since 2001

Nokia reported spending $5.4 mn on lobbying in the U.S. in2007 and $2 mn on lobbying in 2008.

Nokia had to change its functions from single market toglobal market due to collapse of Russian Federation.


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TECHNOLOGICAL FACTOR:

LEGAL FACTOR:

Patents and technology:

Health risk and regulation

ENVIRONMENTAL FACTOR:

Environmental impact of suppliers products and processesEnvironmentally ethical considerations amongst suppliers

Life cycle impact of products throughout the supply chain

Changes in technology


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Economies of scale


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In 2007 alone, they saved 15000 tonnes of material by usingsmaller packaging. This also saved water.

Over the years they've been replacing plastic with paper-based material.

using more recycled packaging material.

Packaging is an area where they have been demonstratingsavings not only for the environment, but also for the

company.

February 2006, when they first created smaller packaging untilthe end of 2007 they had shipped 250 million phones usingthis new compact packaging.

This resulted in 5000 fewer trucks being needed to distributeproducts around the world and

created financial savings of 100 million euros.


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Transportation Cost

wanted to cut emissions by reducing employee trave byteleconferencing

To improve our videoconferencing and to further reduce the

need for travelling, they set up new advanced video facilitiesat 21 key office locations. And plan to roll out the technologyto 30 sites globally.

We also set up an extra 20 traditional video conferencingfacilities

We actively promote the use of existing shuttle servicesbetween airports, offices or hotels whenever possible, insteadof individual taxi rides.


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Recycling

Because they design their products to last and have a globalNokia service network to look after them, they keep working.But a lot of the phones are no longer used. The globalconsumer survey reveals that 44% of old mobile phones are

lying in drawers at home and not being recycled only 3% ofpeople recycle their mobile phones globally.

Recycling means dont need to extract and refine as muchmaterial for new products, saving energy, chemicals andwaste. If every Nokia user recycled just one unused phone at

the end of its life, together we would save nearly 80,000tonnes of raw materials.


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Strategies

Customer remains the top priority

- Nokias priority is to be the most preferred partner to operators,

retailers and enterprise

- the brand goal for Nokia is to become the most loved brand by thecustomer

Nokia s business strategy focus on 5 areas:- create winning devices

- embrace consumer internet service

- Deliver enterprise solution

- Build scale in networks

- expand professional services


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Three strategic assets in which Nokia invest

and prioritize:- Brand and Design

- customer engagement and fulfillment

- Technology and architecture


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Nokia now has separate marketing strategies -- customised

products and advertising -- to address the needs of eachsegment.

Live, for instance, offers basic handsets low on features andprice. It is aimed at first-time users whose basic need is to stayin touch with voice as the main driver.

The second segment, Connect, focuses on more evolved userswho seek functionality, features and connectivity. Accordingly,phones in this segment offer GPRS, camera and musiccapabilities.

The next two categories, Achieve and Explore, are aimed athigh-end users and include top-end handsets like Nseries and

Eseries.They target multimedia applications, imaging, mobile TV,music, Internet service and gaming to next segments," addsTaneja.


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Nokias India strategy is reflected in the

numbers. The company is a key cog in Indias

wireless value chain, and it has used India as

its emerging market lab.


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Global Reach


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Contd

The 10 largest markets were

US, UK, China, Germany, Italy, France, UAE, Thailand, Brazil andPoland, together representing 60% of total sales

Nokia has appointed JWT as its global network marketingagency

JWT will support the lead creative agencies in theimplementation and localization of global campaigns.

Also, as a strategic global partner, the agency will supportlocal marketing activities in over 80 markets worldwide.


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Structure


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Devices is responsible for developing the bestdevice portfolio for the marketplace,including sourcing of components

Services & Software reflects strategicemphasis on developing and growing offeringof consumer Internet services and enterprisesolutions and software.


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Markets is responsible for management ofsupply chains, sales channels, and brand &

marketing activities.

The Corporate Development Office focuses onstrategy and future growth, and provides

operational support for integration across all

the units


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Infrastructure and related services business isconducted through Nokia Siemens Networks, a

separate company jointly owned by Nokia andSiemens and consolidated by Nokia

NAVTEQ

leading provider of comprehensive digital mapdata for automotive navigation systems, mobilenavigation devices, Internet-based mappingapplications, and government and businesssolutions.


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FUTURE PLANS

Low cost , web enabling handsets by 2010.

Targeting hundreds of millions of users of the internet.

To bring internet access to all the masses in India.

Nokia aims to be no. 1 in bringing the internet to

mobile devices and the total internet services market willbe approx. 100 billion Euros in 2010.

Focusing on rural market


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FUTURE MARKETING STRATEGY FOR NOKIA

Nokia is very best in the world.

Motorola and Samsung must now be in the FUW list inNokia board meeting.

Nokia , quite alarmed by the dropping sales of itsphones, is now putting all its weight behind the N- series

range.


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y Motorola gives a dashy-flashy name to its phones.

y Consumers are more attracted by names.

y Nokia advertises more than Motorola.

y Nokia would soon go to the marketing ways.

y More focus on 3G and entering into distribution


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13328190 Nokia International Marketing

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Transcript of 13328190 Nokia International Marketing