Marketing Strategy for Nokia

832019 Marketing Strategy for Nokia

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Marketing Strategy for Nokia

For this project I have been instructed to come up with a marketing

strategy for an existing companyproduct I have chosen to do Nokia

communications particularly the mobile phone sector of Nokiasbusiness To do this properly I will need to

Appropriately identify collect and use primary and secondary data

that is relevant to the marketing strategy of Nokia

Produce a clear analysis of the external influences affecting the

development of a marketing strategy

Complete a realistic rationale for the development of a coherent

marketing mix for Nokia communications

Show a full understanding of a marketing strategy for Nokia with a

clear understanding of marketing principles

Produce a full well-balanced marketing strategy that reflects

appropriate use of marketing models and tools

Introducing the product-----------------------

Nokia is a communications based company which focuses on mobile

telephone technology When mobile phones first became available on the

market the models were very basic with the best technology being SMS

messaging (sending written text messages from one phone to another)

Then the next advance in technology was being able to put different

faces on your phone (different style covers for the front and back of

your mobile device) and after that the technological advances have

come thick and fast with advances such as

MMS

WAP (internet)

Polyphonic ringtones

Predictive SMS (where the phone will finish off a word for you if

it can guess what you are typing)



Camera phones and

Video recorders

Competition in the market

-------------------------

With all this technology available in the communications market it is

obvious that Nokia will have lots of competition they include

Sony Ericsson

Samsung

Motorola

Siemens

Panasonic

NEG

Sagem and

Toplux

With all of these competitors in the market Nokia must keep ahead of

the game by running successful marketing strategies to do this Nokia

must focus on the principles of marketing At the moment Nokia are the

worlds best selling phone company (see table below which shows market

share) Nokia strengthened its lead as the No 1 vendor in the market

during 2000 with shipments growing 66 percent over 1999 Some of the

companys success was attributed to a strong second half in 2000 when

59 percent of sales occurred

1 Nokia 372 (347 1Q02)

2 Motorola 173 (155)

3 Samsung 98 (96)

4 Siemens 85 (88)



5 Sony-Ericsson 52 (64)

Marketing principles====================

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

There are also certain external factors that a company should be veryaware of such as PEST factors (political environmental social



and technological) and also SWOT (strength weakness opportunity

and threat) A business must take into account all these constraints

when designing and introducing a marketing strategy

PEST

Political factors- Legal constraints (such as the G3 technology

constraints that Nokia have to take into consideration) must be taken

into account because many businesses aim to make a profit so they may

be tempted to mislead their customers about prices quality of

products and the availability of their products They may also try to

cut expenditure by using lesser quality materials in their products

(such as weaker materials for Nokia cases and batteries) also some

companies may also dispose their waste in ways that damage the

environment (pollution) and not ensuring high standards of hygiene and

safety in the workplace and outlet stores all of these are illegal

and can leave companies in big legal trouble

The governmental bodies in the UK have introduced new laws into the

business environment which ensure that none of these procedures take

place if a company is to be successful they must follow all of these

laws

Environmental social and ethical factors- some businesses view profitsare more valuable then a strong ethical code and this can govern

behaviour and business conduct Some un-ethical practices are against

the law and companies can not become involved in them (I have

mentioned these above) but there are also some practices that arent

illegal by law but are considered highly un-ethical by the consuming

public companies who engage in these practices can lose a lot of

market share if they are found out An example of this is cosmetic

testing on animals it is legal but some of the consuming public are

not happy about it and boycott Certain products because of it

companies must be very careful about how they conduct themselves

Nokia have managed to be quite environmentally friendly and have not

done anything that the consuming public have taken huge offence to

they have been very careful about this and this is one of the reasons

they are such a popular brand of mobile phones

Technological- In the communications market technology is perhaps the

most important factor that companies like Nokia have to take into

consideration They have to keep up to date with all the newesttechnological advances (like camera and motion capture phones) if they



are going to capture the biggest market share and stay ahead of their

competitors (Sony and Seimens)

SWOT

SWOT analysis is also another way of deciding on a successful

marketing scheme we must look at strength weakness opportunity and

threat

Strength (internal factors)- Is looking at the companies current

market share and researching how recognised Nokia is amongst consumers

in the target market Nokia is currently one of the most popular

Mobile communications companies in the industry generating over

52000 sales in 1997 which was a 34 increase from 1996 Nokias net

sales for the October-December period in 1997 came to a total of FIM

15 857 million (FIM 12 669 million in 1996)

Weakness (internal factors)- This is basically looking at where the

product is failing or not doing as well as it should in the market

Nokias problems are that

1 They are currently aiming their products at a saturated market

segment

2 Their wage costs are forever rising

3 Higher import charges have now been put into place

4 There are some quite high supply chain costs that Nokia are

currently paying

Opportunity (external factors)- This is the area in which Nokia can

make more profit or gain more market share There are 2 ways in which

Nokia can currently do this

1 Improve the technology that they are using to make their phones and

use in their products for example camera phones and advanced picture

messaging would attract new consumers to purchase phones under the

Nokia brand name

2 Using innovation to re-invent their products change and develop

within the market to offer something none of the competitors have

Also the fact that phone call charges are being forced to fall shouldprove to be an opportunity for Nokia to sell to the people who



previously may have not purchased a phone because of higher call

charges

Threat (external factors)- This is looking mainly at the competition

that are taking away Nokias current market share and also governmentlegislations (the total costs of 3G licensing in Europe is 110 billion

euros) that could hinder Nokias development as a company

For an existing product it is often useful to draw up an Ansoffs

matrix in order for Nokia to grow as a business we must look at

middot Market penetration

middot Market development

middot Product development and

middot Diversification

Market penetration- the aim of market penetration is to sell existing

products to an existing market to do this Nokia must do a few things

1 Change the pricing scheme (for example penetration or competitor

based)

2 Introduce discounting

3 Start up a different advertising campaign or consider changing an

existing one

Market development- To complete market development successfully Nokia

must look into the following

middot Researching and selling to a different market (in case of saturation

or poor market share)

middot Change times that television adverts are aired at and alter the

places in which print adverts are being displayed (this can help your

products appeal to a whole new market segmentation)

middot Lower current prices to help the products appeal to a wider range of

consumers

Product development- This area of the Ansoffs matrix involves keeping



up to date with the latest technologies available in your chosen

market and using them to appeal to different people (for example WAP

phones are aimed at more professional people while Camera phones are

aimed at the youth market)

Diversification- This refers to developing technology that offers

consumers something new or different this is the most common way of

companies trying to gain greater market share and increase their

profits

Market research

A businesses success is based on whether they can give the customer

what they want and when they want it Market research involves the

collection collation and analysis of data relating to the consumption

and marketing of relevant goods and services

The purpose of market research is really to find out whether there is

a gap in the market for your product or service or whether you can

make customers want your product through persuasive adverting We

already know that there is a market for mobile phones but the current

market gap has become saturated (or if not saturated almost

saturated) so Nokia need to find a new market segment to aim their

products at In order to classify the wants and needs of the consumingpopulation companies need to gather information on the following

middot Consumer behaviour- How do customers react to advertising Whether

they are partial to prize give-aways or free gifts What are their

reactions to new and developed products

middot Buying patterns and sales trends- Organizations need to look at how

buying trends and patterns are affected by class gender religion and

region They also need to understand how buying patterns change over

time and what markets are expanding and are worth trying to enter and

obviously which markets are contracting and companies shouldnt aim to

enter into

middot Consumer preferences- What customers are looking for in a product

for example style colour technology amount of outlets customer

service and promotional styles

middot Activities of competitors in the market- Nokia need to examine how

their rivals are adapting their prices and products to meet theconsumers needs how well the rivals are selling and what marketing



strategies they are using

Market research should supply the company with all the information

they require about consumers preferences whether they buy certain

products what design features are preferable and what kind of retailoutfits are most frequently used for purchasing certain products

Sources of marketing information

The information that companies collect through market research can be

in one of two forms either quantitative or qualitative data

1 Quantitative data refers to data presented in numerical form

usually figures for example Nokias operating profit in the 4th

quarter of 1997 was 830 million

2 Qualitative data is the information concerning the motives and

attitudes of consumers for example more people buy Nokia phones then

Sony phones because Nokia phones are more reliable

The two main sources of market research information are primary

research (where the company has gathered the information about the

markets themselves) and secondary research (when researchers use

information that has been discovered by other companies)

Methods of collecting primary data

middot Face to face survey

middot Open ended interview

middot Telephone survey

middot Postal surveys

middot Consumer panels

middot Observations

middot Experiments

Methods of collecting secondary data

Internal sources



middot Existing reports

middot Distribution data

middot Shopkeepers opinions

middot Stock records

middot Sales records

middot Accounting records

External data

middot Government statistics

middot Specialist business organization for example Mintel or Neilsons

retail audit

middot Consumer databases

To help decide what market segment to aim at companies can also look

at the buying habits of customers In order to make decisions aboutthe type of products to make what advertising to use promotional

tactics pricing and packaging Nokia will need to know about the

following

1 The types of goods customers buy

2 How much they buy

3 How often they buy

There are also certain variables that can affect peoples buying

habits they include

1 Age

2 Gender

3 Area they live in

4 Religion



5 Lifestyle

6 Taste

7 Fashion and preferences

Market segmentation

In order to plan their product Nokia must look at what area of the

market they want to aim the products at as the current youth market

is more or less saturated Nokia will have to research into a new

market I suggest the 55+ market as they will have lots of disposable

income and my research shows that most people aged 55+ do not

currently own a mobile device and could be persuaded to buy one by

certain promotions and a good advertising campaign also the drop in

call prices should attract a lot of people who may have previously

been hesitant due the high costs

Below is a table showing the population in terms of social grouping of

the UK in 1999

Socio-economic group

Of population

A-Upper class

28

B- Middle class

186

C1- Lower middle class

275

C2- Skilled working class

221

D- Working class



176

E-Low income earners

114

I think that Nokia should aim their products at the socio-economic

group B (middle class) event though they arent the biggest group they

are the group that is most likely to spend their money on a mobile

telephone as my questionnaire results showed

Investigating consumer trends

As the main aim of market research is to develop an idea of market

opportunities an important part of this research must be to track

sales in order to identify those products which are likely to

experience a rise in sales and to look at those in which the sales are

likely to fall

Changes in customer demand which continue in the same direction for

more then 2 years show a long-term trend or saturation is occurring

within the market This is definitely a bad market for businesses to

be in (the mobile phone market is in the first year of a continuing

trend) and the company must consider changing their market or productto a market or product that is currently showing a continuing upwards

trend

The marketing mix

-----------------

The marketing mix refers to the combination of elements within a

companies marketing strategy these are designed to give the customer

what they want and in the long term are designed to maximise profits

The marketing mix is based around the idea of the 4 Ps

Product-The product is the centre of the marketing mix and the other

three Ps 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 (that is why they conduct market

research)

Price-Is a key factor in the selling of a product and is usually theone that is open to the most change based on different pricing



strategies for example competitor based penetration or skimming

The three main factors affecting the amount charged for a product or

service are the cost of production customer demand and competition

Place-This refers to the chosen outlets for a product or service fora 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

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

The stages of marketing

-----------------------

1 Market and product research

Finding out what your customers want

Technical research

2 Product launch

Test market

Pricing

Branding

Packaging

3 Product promotion

Advertising

Merchandising

Publicity and PR

Sales promotion



4 Sales and distribution

Managing the sales force

Type and amount of sales outlets

Local national or international sales

Transportation of goods

5 Monitoring and analysing the sales

Meeting customer satisfaction

Does the product need modifying or replacing

Is a profit being made

Is customer service satisfactory

Have the sales targets been met

Is the promotion and distribution policy effective

If a company gets to section 5 of the marketing cycle and a

substantial amount of the goals havent been met then they will have

to consider re-launching the product or taking it out of the market

completely and placing it in a different market or changing it to meet

the needs of the current market

Product life cycle- Mobile phones

---------------------------------

Introduction

When mobile phones where first introduced they were low quality

technology (bad reception poor reliability and had a short battery

life) high priced (around pound100 for a basic model) and consumers had

to be persuaded to buy mobile telephones as they were not yet

established as a necessity When products are first releasedcompanies can expect high promotion fees as the public are probably



not yet familiar with the product

Also when mobile phones were first released they were bulky and hard

to use as product design and development are a key figure in success

Nokia had to design phones that were smaller and simpler for consumersto use As people had paid a lot for earlier more primitive products

they were obviously not going to pay the same high prices for later

products so Nokia had to develop phones that could be sold for less

and would last longer this is where companies can expect to pay high

production costs

When Mobile phones were first introduced they were not such a popular

item and there werent as many competing companies in the market So

Nokia and a few other companies (Sony and Panasonic) could charge

higher prices then they would in the highly competitive market that

they are in today as there arent so many companies competing for

market share

Growth

In the growth stage of the product life cycle companies can expect

advertising and promotional costs to be as high as in the introduction

stage as more companies will enter the market and competition formarket share will increase Advertising is a proven way of promoting

technological advances within a market (as with the new company 3

promoting their new technology that allows people to watch videos on

their handsets) so higher advertising costs can be expected as the

technologies available get better and more advanced

The growth stage is also the stage that companies will (hopefully)

start to make a profit based on good market research and a strong

sense of branding and a successful marketing scheme In the growth

stage profit isnt the only thing that will start to develop as there

are more companies in the market it is obvious that more technology

will be developed and that will drive prices higher this is how

companies start to make profits (because consumers have accepted the

product in Nokias case mobile phones as a necessity they will be

more willing to pay higher prices for new phones that emerge in the

market)

Maturity



When a product enters the maturity stage advertising and promotional

prices should decrease as consumers are more aware of the product and

will research new additions to the market instead of being told what

is new (this is because phones have been promoted as fashion items and

will be desired by the consumers) At this point in the product lifecycle the main producers (Nokia Siemens Sony etc) should be clear as

they will have the most money to develop and promote their phones

while the other less popular producers of phones (Panasonic Toplux

and NEC) will be struggling to survive and will drop out of the market

either here or they will seriously struggle in the next stage

decline

Decline

This is the stage that Mobile phones have entered (Nokia had recorded

their first drop in sales earlier this year) and all the remaining

companies are trying to re-launch their products by either developing

their products or entering new markets At this point phone sales will

be decreasing and promotion and advertising costs will start to rise

again as companies fight for the remaining market share and struggle

to make a profit

Below is a graph showing the product life cycle

[IMAGE]

Sales

Time

[IMAGE]

Sales

-----

[IMAGE]



Time

----

With successful re-launching the product life cycle should look like

the one above

--------------------------------------------------------------------

Branding

--------

Most forms of promotion are based around the idea of having an image

to go with the product Brand imaging plays a dominant part in an

organizations marketing strategy This is because people make a

purchase they arent just buying a product they are buying a

lifestyle or an image If branding can make people believe that the

branded product is better then an un-branded product more people will

buy it and they will also be willing to pay higher prices for the

extra quality and lifestyle they are receiving with the product

Because a lot of rival products are more or less the same (Pepsi and

Coke) the main way of making your product stand out is through

aggressive branding This is usually achieved by companies usingslogans logos and distinctive packaging

Types of pricing strategies

Cost based pricing

This involves calculating the cost of production for the product and

then adding a mark-up for profit usually 10 so a company can make

enough profit to re-invest into the business so they can grow

Marginal cost pricing

This is the addition to total cost resulting from the production of an

additional unit of output If a decision is made to expand by one or

more units it will be based on an assumption that the price of each

unit will be least sufficient to cover marginal costs so that the

profit earned on all previous units is not lower then it previouslywas



Demand based pricing

This is usually pricing products based around the customer demand fora product if the demand is high the prices will rise This is

usually used when the product is unique for example a football match

or concert To use this strategy companies must carry out detailed

market research to find out what prices the consumers are willing to

pay so they dont over price their product

Market skimming

This pricing strategy is also known as price creaming and is usually

put into place in markets where the competition is limited Market

skimming pricing involves charging a high price for new products

because the customer is new and unique so (hopefully) the consumers

will be willing to pay higher prices for them This is the most common

strategy in the mobile phone market as consumers will pay the higher

prices for phones that have the newest technology

Penetration pricing

Firms who are trying to establish themselves in a new market and gain

instant market share usually use this strategy It is a high-risk

high cost strategy that is only an available option to the bigger

companies (like Nokia) who supply to mass markets Penetration pricing

is based around the idea that a company will set their prices low to

encourage customers to buy their products instead of higher priced

more established brands

The organization may also boost sales by lowering prices if demand is

price elastic One problem with this strategy in the mobile

communications market (or any other highly competitive markets) is

that price wars will often develop with rival companies and this can

limit to the amount of profit that can be made and also generate

losses due to under-pricing in an attempt to hold onto market share

Price discrimination

This is where companies can charge different prices in different



markets because of the consumers they are aiming at for example

rail companies charge different prices for peak and off-peak travel

cards and fares This strategy is only available for use when the

consumers are unable to undercut higher prices by reselling their

products from low priced markets to high priced markets

Destroyer pricing

This is a more drastic and aggressive form of penetration pricing

used when a companys objective is to get rid of competition

completely by lowering their prices to levels that other companies

cannot afford to drop to The down side to this strategy is that

consumers may see the low price as a reflection of the quality of the

product and stick to the higher priced products because they offer a

product of higher quality

External factors affecting pricing decisions

--------------------------------------------

Setting a price with regards to only production costs ignores the

influence of external factors such as

Market conditions- how much are the customers willing to pay Can

advertising increase product image and price Is the product aimed

at a mass market or a niche market (a niche market refers to when

a company aims a product at a very small select segment of the

market)

Production costs- Prices must cover the costs spent in production

if a profit is to be made The price must cover variable costs

(for the short term) and fixed costs (for the long term) otherwise

a company will face closing

Taxes and subsidies- VAT and customs duties will raise the price

of a product Government subsidies will allow businesses to charge

lower prices

Business objectives- Is the business looking to maximise profits

Or is the company looking to increase its market share

Marketing mix- What stage is the product at in the life cycleWhat forms of promotion are being used Where is the product being



sold

Marketing structure- How much competition is there in the market

What prices is the competition charging

Nokias current marketing strategy

The marketing mix

Price- The phones that Nokia produce are usually sold at high prices

(new phones can be expected to enter the market at around pound200+ if

they carry the latest technology) The price of the new phones usually

decreases after an introductory period which is usually around 2

months long Nokias prices are usually competitor based in such a

way as they try to keep their prices a bit lower then those of the

closest competitors but not as low as the 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

Place- Nokia phones are generally sold at all established mobile phone

dealerships such as Carphone Warehouse and The Link although they are

also sold at other retailers such as Dixons and other electrical

suppliers The products are only sold in the electrical suppliers and

stores other then dedicated phone dealerships after the introductoryperiod so the phones can remain limited edition as this will

encourage younger consumers to buy them

Promotions- 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

Product- Nokia phones tend to include all the latest technology and a

lot of the consumers favourite aspects such as text messaging and

games like Snake and Memory When the phones came out they were big

and bulky and quite unattractive but now they are all quite sleek and

stylish with phones now getting small enough to fit in the palm of

your hand as standard Most of the phones produced nowadays have

accessories that consumers must buy with them (carry cases hands free

kits and in-car chargers) these generate Nokia a lot of profit as

they are very high priced

Nokias marketing mix has worked very well until recently as themarket they are aiming at has become more and more saturated and after



looking at all the mobile phone sales figures it looks as if the

phone companies can aim at this same youth market for about another 2

years until they need to change but they should change sooner so they

can start making a bigger profit and get a head start on the

competition who will also have to change the market they are aimingat Nokias current promotional strategy is working very well as they

are able to talk to a large number of consumers in different markets

rather then the niche markets the old promotional strategies where

restricted to

Market segmentation

Market segmentation refers to the different areas of the population

that companies can aim their products towards The market segment that

Nokia has chosen to aim is the youth market focusing on students aimed

13-19 as market research has shown that some of the youth market are

receiving large amounts of pocket money 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 a lot money on new mobile phones

As a big company Nokia are able to do a lot of promoting and

advertising that smaller less successful companies 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 intheir 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 mens

magazines such as FHM and Loaded so they can appeal to all of their

readers instead of a smaller percentage of the readers they would

attract in magazines such as Lifestyle and Good Housekeeping I think

Nokias way of promoting is very good as they can appeal to mass

markets and large amounts of people in their chosen market

segmentation with certain advertisements and with sponsoring large

events like the ones I have previously mentioned

Pricing strategy

Nokias current pricing strategy is based on 2 main theories

1 Penetration pricing- although this strategy is usually for

companies that are trying to gain instant market share in a newmarket companies who are already well known in the market still



do it with new products that carry new technologies so they can

take more market share form their competitors

2 Competitor based pricing- this is used when there is a lot of

competition in the market and a company is looking to take anothercompanies 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

that is still in business

Nokias 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 they sell them for the same price and sometimes

even lower prices then the competition and have now built up the

highest market share they currently have 372 of the mobile phone

market share and are the biggest selling mobile phone company in the

world

Branding

Nokia phones are seen as being of the highest quality and this is

reflected in their massive sales figures The fact that they are seen

to be such high quality products is partly down to successful

branding they have a highly recognisable packaging style and the

style of their handsets is similar in every line of production with

the company name printed just above the screen and just below the

earpiece The fact that Nokia operate such an aggressive marketing

strategy has elevated them above the competition as consumers are

fooled into believing that branded products are better then

un-branded products or products produced by lesser-known brands such

as One Tel and other lesser-known phone producers in the market

Product life cycle-Nokia

Introduction

When Nokia phones were first introduced they required a lot of

promoting and advertising as they werent established enough to sellbased on their quality and what they offer to the consumer so this is



where Nokia spent the largest amount of money promoting their products

and establishing their brand as a leader in the communications market

Also when mobile phones were first available there were only a few

companies as well as Nokia in the market (Sony etc) so they could

charge higher prices then they can at the present time in the productlife cycle because no companies would dare to enter a price war with

such a new product

Growth

This stage of the life cycle also has high promotion costs involved in

it this is due to the fact that mobile phones are becoming

established as a consumer necessity and lots of other companies decide

to enter the growing market although companies do not need to assure

customers that they need a mobile phone Nokia have to assure the

customers that they want a Nokia phone and this is where the high

promotional costs come from

Maturity

In this stage the promotional costs do decrease as the more popular

brands such as Nokia and Samsung have gathered the majority of the

market share and only have to show customers that they have a new

model out and it will sell well as they have been established as aquality brand and customers no-longer need to be persuaded to buy

Nokia brand technology

Decline

This is the stage that the mobile communications market including

Nokia have recently entered (Nokia had reported the first drop in

sales in the first quarter of 2002) and companies are now promoting

heavily their new MMS products to the market in an attempt to get out

of decline and back into growth with a new generation of

technologically advanced phones that offer motion picture capture

camera technology and the opportunity to watch television on your

handset

If a company has entered decline it needs to look at the SWOT forms

of analysing their market strategy which I have fully evaluated on

pages 3 and 4

What I have found out by analysing SWOT is that Nokias mainweaknesses are



1 They are currently promoting their products to a market that is

verging on saturation- Nokia need to re-launch some of the older

models to a different market and only promote new products to the

existing market segment

2 Their wag costs are already high and are always rising-

To solve this they can try and invent or discover machines that can

increase productivity so that the number of staff currently employed

(The average number of employees in 2002 was 52714 and this was a

decrease from 57716 in 2001)

3 High import charges are being implemented by the government-

To counter this Nokia need to set up factories in more companies this

will have high start up costs but will eventually start to save Nokia

money on import and export charges

I have also discovered that Nokia have established themselves as one

of the most popular mobile communications companies in the market with

a total of over 52000 sales in 1997 which was a 34 increase from

1996s sales

There are many external factors that can affect a marketing strategy

from developing this is where you must use PEST analysis I have

outlined PEST analysis on pages 2 and 3 but have further analysed

the effect of these external factors on the development of Nokias

marketing schemes below

Political factors- Legal factors such as the G3 technology licensing

which has cost companies a total of 110 billion euros so far are

always around to stop Nokia from properly developing strategies and

further conquering the communications market Also taxes such as

import and export have an affect on Nokias development and these are

more-or-less impossible to avoid unless a company can afford to run

factories in every country and continent in the world

Environmental Social and ethical factors- Many companies may view

profit as more important then ethical practice and this can lead them

to making illegal decisions and this has been a big contribution to

many companies going out of business or loosing all their market share

to eco-friendly companies



Technological factors- In the communications market this is probably

the most important external factor in affecting a companies

development of their marketing strategy as they must always keep up to

date with every change within the market if they are to be successful

and hold on to their market share ad hopefully gain more

Nokias current marketing strategy has helped them become the biggest

selling brand in the communications market to date but now sales are

starting to decrease with the saturation of the current market segment

so Nokia will need to do one of the following Re-launch their

products with an aggressive promotional scheme Target a different

segment of the market that has not been entered so Nokia can instantly

gain 100 of the market share (although this is risky as the market

might not take to their products and the demand might be low so sales

will also be low and prices will have to be high and this will further

stop people from purchasing Nokias products) Differentiate their

products to offer something no other company can offer to the market

or simply try and offer a different product altogether such as

landline phones or televisions

Market research

Nokias business strategy (statement taken from wwwnokiacom)

Our business objective is to strengthen our position as a leading

communications systems and products provider Our strategic intent as

the trusted brand is to create personalised communication technology

that enables people to shape their own mobile world

Nokia are currently creating innovative technology to allow people to

access Internet applications devices and services instantly

irrespective of time or place Achieving interoperability of network

environments terminals and mobile services is a key part of our

intent

Nokia need to capitalise on our leadership role by continuing to

target and enter segments of the communications market that we believe

will experience rapid growth or grow faster then the industry as a

whole

By expanding into these segments during the initial stages of their

development Nokia have established themselves as one of the worlds

leading players in wireless communications and significantlyinfluenced the way in which voice and other services have been



transferred to a wireless mobile environment

As demand for wireless access to an increasing range of services

accelerates Nokia are planning to lead the development and

commercialisation of the higher capacity networks and systems requiredto make wireless content more accessible and rewarding to the end

user In the process we plan to offer our customers unprecedented

choice speed and value

Nokia has a history of contributing to the development of new

technologies products and systems for mobile communications Recent

examples include the commitment to the open mobile alliance the

co-development of the new operating system for the future terminals

with symbian short-range wireless connectivity with bluetooth the

development of wireless LANs for enabling local mobility in fixed

LANs and MMS for enabling mobile multimedia messaging

In addition Nokia have continued to be active in IP convergence They

have established alliances with other service providers in order to

make mobile access services easier for the end user

Nokia in 2002 IAS reported

Nokias net sales in 2002 decreased by 4 compared with 2001 andtotalled EUR 30 016 million (EUR 31 191 million in 2001) Sales in

Nokia Mobile Phones were flat at EUR 23 211 million (EUR 23 158

million) and decreased in Nokia Networks by 13 to EUR 6 539 million

(EUR 7 534 million) Sales decreased in Nokia Ventures Organization by

22 to EUR 459 million (EUR 585 million)

Their operating profit in 2002 increased by 42 and totalled EUR 4 780

million (EUR 3 362 million in 2001) Operating margin was 159 (108

in 2001) Operating profit in Nokia Mobile Phones increased by 15 to

EUR 5 201 million (EUR 4 521 million in 2001) Operating loss in Nokia

Networks decreased to EUR 49 million (operating loss of EUR 73 million

in 2001) Operating margin in Nokia Mobile Phones was 224 (195 in

2001) while the operating margin in Nokia Networks was -07 (-10

in 2001) Nokia Ventures Organization showed an operating loss of EUR

141 million (operating loss of EUR 855 million in 2001) Common Group

Expenses totalled EUR 231 million (EUR 231 million in 2001)

During 2002 the operating profit was negatively impacted by goodwill

impairments of EUR 182 million and net customer financing impairmentcharges related to MobilCom of EUR 265 million



Financial income totalled EUR 156 million in 2002 (EUR 125 million in

2001) Profit before tax and minority interests was EUR 4 917 million

in 2002 (EUR 3 475 million in 2001) Net profit totalled EUR 3 381

million in 2002 (EUR 2 200 million in 2001) Earnings per shareincreased to EUR 071 (basic) and to EUR 071 (diluted) in 2002

compared with EUR 047 (basic) and EUR 046 (diluted) in 2001

At December 31 2002 net-debt-to-equity ratio (gearing) was -61

(-41 at the end of 2001) Total capital expenditures in 2002 amounted

to EUR 432 million (EUR 1 041 million in 2001)

By the end of 2002 outstanding long-term loans to customers totalled

EUR 1 056 million (compared with EUR 1 128 in 2001) while guarantees

given on behalf of customers totalled EUR 91 million (EUR 127

million) Nokia also had financing commitments totalling EUR 857

million (EUR 2 955 million) at the end of 2002 Of the total

outstanding and committed customer financing of EUR 2 004 million (EUR

4 210 million) EUR 1 573 million (EUR 3 607 million) related to 3G

networks

Global Reach

In 2002 Europe accounted for 54 of Nokias net sales (49 in 2001)the Americas 22 (25) and Asia-Pacific 24 (26) The 10 largest

markets were US UK China Germany Italy France UAE Thailand

Brazil and Poland together representing 60 of total sales

Research and development

In 2002 Nokia continued to invest in its worldwide research and

development network and co-operation At year-end Nokia had 19 579

RampD employees approximately 38 of Nokias total personnel Nokia has

RampD centres in 14 countries Investments in RampD increased by 2 (16

in 2001) and totalled EUR 3 052 million (EUR 2 985 million in 2001)

representing 102 of net sales (96 of net sales in 2001)

People

The average number of personnel for 2002 was 52 714 (57 716 for 2001)

At the end of 2002 Nokia employed 51 748 people worldwide (53 849 at

year-end 2001) In 2002 Nokias personnel decreased by a total of 2101 employees (decrease of 6 440 in 2001)



Employee Value Proposition-

In a move to further attract and retain a skilled workforce this year

Nokia developed an employee value proposition framework The

adaptation of this has already started at country levels to reflectand respond to local employee needs and expectations The four

fundamentals of the proposition are (1) the Nokia Way and Values (2)

performance-based rewarding (3) professional and personal growth and

(4) work-life balance

Nokia Mobile Phones in 2002

Nokia Mobile Phones continued to renew its industry-leading product

line-up launching a record 33 new products during 2002 incorporating

colour imaging multimedia mobile games and polyphonic ring tones

Of the total new phones launched 14 had colour screens and multimedia

capability This attests to the growing share of feature-rich phones

offering advanced mobile services in the companys product portfolio

During the year Nokia launched its first WCDMA mobile phone the

Nokia 6650 which began deliveries to operators for testing in October

2002 The company also commenced shipments of its first CDMA2000 1X

mobile phones in the Americas These included the Nokia 6370 the

Nokia 6385 the Nokia 3585 and the Nokia 8280

In imaging Nokia began shipping its iconic camera phone the Nokia

7650 expanding the scope of the mobile market from voice to visual

communications Feedback from customers and users across the board has

been extremely positive

In the enterprise segment the company expanded its product offering

from the Nokia Communicator 9200 series to include the Nokia 6800

messaging device with full QWERTY keypad optimised for personal and

enterprise mobile e-mail

In entertainment Nokia announced it would bring mobility to gaming by

offering console quality games for its new mobile game deck device

category Under a collaboration agreement with world leading games

publisher Sega the two companies will develop games for the new

Nokia N-Gageacircyacutecent mobile game deck which will run on the Nokia Series

60 platform and the Symbian operating system

For the full year 2002 Nokia volumes reached a record level of 152million units representing faster than market growth of 9 compared



with 2001 Backed by Nokias ongoing product leadership and user brand

preference Nokia has again increased its market share for the fifth

consecutive year reaching about 38 for the full year 2002 bringing

the company closer to its target of 40

During the year Nokia Mobile Phones took steps to accelerate growth

and enhance both agility and scale benefits with the introduction of a

new operational structure From May 1 nine new business units were

each made responsible for product and business development within a

defined market segment This allowed Nokia to optimise its activities

in these vertically focused areas while continuing to achieve broad

economies of scale from horizontal functions such as application

software development and the companys market-leading demand-supply

network

Nokia Networks in 2002

During the year Nokia Networks signed 20 GSM network deals in Asia

China Europe and the US including three new customers

Mobile Multimedia Messaging Services (MMS) became a reality in 2002

with its rapid implementation into most GSM operator networks By

year-end Nokia Networks had delivered MMS solutions to well over 40

operators

WCDMA 3G technology implementation moved to pre-commercial and

commercial phase towards the end of 2002 Nokia signed 10 new 3G deals

in Austria Belgium Germany Ireland Japan the UK and Taiwan In

September Nokia became the first vendor to commence volume deliveries

of EDGE hardware across all major GSM bands and in all continents

In broadband access Nokia signed nine new contracts in 2002 and

launched the Nokia D500 next generation multiservice broadband access

platform for the US and ETSI markets

The company also further strengthened its GSMEDGEWCDMA product

family with several new products and solutions Key launches included

a high-availability server platform for use in All-IP mobility

networks and the Nokia LTX a linear transceiver product family of

base station modules that support the definition of Open IP Base

Station Architecture

During the year Nokia took measures to align its operations to betterreflect current market capacity and conditions reducing the number of



employees in its delivery and maintenance services as well as in

production Nokia also streamlined its professional mobile radio unit

to reflect the slower than expected take-off of this market

Nokia Ventures Organization in 2002

Despite overall flat IT spending and slow growth in the corporate

network security market throughout 2002 Nokia Internet Communications

maintained the same level of sales and market share in the enterprise

firewallVPN appliance segment as the previous year as well as

significantly improving its operational efficiency

Highlights for the year include the introduction of a record number of

new products and solutions that both expand Nokias network security

appliance portfolio and respond to emerging market opportunities

Extending mobility to enterprise workforces protecting corporate

e-mail content and providing firewallVPN benefits to remote offices

were promising growth areas addressed with new product offerings from

Nokia To help foster the creation of new security applications to

complement Nokias own solutions the Nokia Security Developers

Alliance was launched in July Looking forward to 2003 Nokia Internet

Communications remains committed to building a leading position in the

corporate network security market and extending mobility to

enterprises

For Nokia Home Communications sales in 2002 clearly declined as the

unit began a migration towards emerging horizontal markets with the

launch of new types of terminals focused on horizontal terrestrial and

satellite markets providing digital viewers access to a broad range

of digital services Products such as the Nokia Mediamaster 230 S

introduced Bluetooth-enabled interoperability to the home environment

in the second half of the year

Dividend

Nokias Board of Directors will propose a dividend of EUR 028 per

share in respect of 2002

Net sales by business group Jan 1-Dec 31

2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13

Nokia Ventures Organization

459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4

Operating profit IAS

Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462

Common Group Expenses

-231

-231

Nokia Group

4 780

159

3 362

108

Primary research results



[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

Average Rating (from 1-10 1 being the best and 10 being the worst

Battery life

1

Exchangeable covers

5

WAP

9

MMS

10

The style of the phone

3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]

Analysis of my research

-----------------------

For my primary research I handed out 30 questionnaires but only 20 of

them got answered and above I have compiled all the quantitative data

into the Bar and pie charts When giving out my questionnaire I had to

be very selective about who I asked questions to as I had to makesure that I had a representative sample population so I can make

generalisations about the entire consuming population

From my research I have found out that 55 of people do already own a

mobile phone but I also found out that 100 of the student population

(aged 11-21) did already own a mobile phone and the majority of the

older people in the sample (aged around 40 and 50) didnt own a mobile

phone and I found out that everyone over 65 did not own a mobile

phone My results show that the current youth market has already been

capitalised on by the communications companies and the market has

become saturated or is definitely near saturation This is reflected

in the fact that Nokias sales have decreased by 4 and this has been

said by many Wall Street writers to be the tip of the iceberg and they

are prophesising that sales will continue to decrease until the

marketing strategy is revised

The majority of the people who answered my questionnaire had an income

of pound30000-pound40000 and this shows that the current market certainly has

enough money to purchase a new phone the youth market had an averageof under 10000 but as they have the most disposable income are more



likely to buy new models of mobile phones but if the majority of the

population has a large income they can afford mobile phones but as a

lot of them have families and other financial commitments they may be

a bit apprehensive about spending a large amount of money on a new

mobile phone so if a phone was launched at this market it should be aavailable at a lower price then the phones aimed at the youth market

My research also showed that pay as you go was the most popular

pricing option for the entire population especially the youth in

which 100 of people had chosen this plan but in the more mature

consumers they said that they would probably choose a pay monthly

system as they would not be bothered with the hassle of toping up

every time they ran out of call time Also I found out that some 75

of the youth market will change their payment plan to a pay monthly

system as the pay as you go system had proven to be very expensive

due to the high call rates to other mobile networks and because on

the pay monthly system you can get free text messages (SMS) and free

call time but the amount depended on the network you had a contract

with

My primary research backed up my secondary research and showed that

Nokia was the biggest selling brand of mobile phones with 75 of my

participants claiming that they owned a Nokia phone compared to a

very small 7 for Nokias closest rivals Sony This has shown me thatNokia are already a very well established brand amongst the consumers

and that they do not need to spend any money (or a small amount if

entering a new market) on promoting the brand as a whole and should

concentrate the majority of their promotional expenditure on singular

models or new technologies that are being discovered or being

released

My research showed that the most popular places that mobile phones are

bought in are Carphone warehouse and The link which accounted for 85

of the sales of mobile phones to the people I questioned Small

dealerships such as selective network outlets and major household

appliance stores like John Lewis or the O2 stores accounted for a

very small amount of sales (less then 10) If a phone is to be

successfully distributed it is only logical that it should be released

in the main dealerships before the other smaller outlets if it is

going to reach its maximum selling potential

According to my research the three most important things that

consumers are looking for in a mobile phone are long battery life astylish casing and good SMS (text messaging) features If a phone is



to be successful in the market environment it must include all of

these but the consumers have to be told that your product has these

available this is what the company should try and promote through

advertising and not just the brand name

I have found out that most people do not conduct heavy research if

they do any research at all (only 65 did research into mobile

phones) and the most common forms of research are magazines and

window-shopping This means that it is important for a product to

stand out to the consumer and look good statistically in a magazine so

that it will stand out to the consuming population who research in

magazines and the people who ask floor sales people for advice on

which handset to purchase

Price was a difficult variable to analyse as my research has shown

that it was a 50-50 split between people who said price was a key

factor and those who didnt really care about the price as long as

the phone was offering everything they wanted although upon further

inspection most people would not like to spend over pound175 on a handset

but could be persuaded to pay a little more by a strong advertising

campaign or a good all-round package that includes cheap call rates

free text messages and some free accessories for example a hands

free kit or an in car charger

I have also found out that the most popular food shops are Sainsburys

and Marks amp Spencer this gives us an idea of where to put promotional

fliers and leaflets about up and coming releases into the market and

as people are usually bored while waiting in lines for a till they

will want something to look at and if a flier is conveniently placed

near in the lines then that could get more customers interested in a

Nokia mobile phone instead of one of their competitors also people

who shop in these 2 main supermarkets tend to be either middle or

upper class and will pay extra for quality in brand name products

Revised marketing strategy

As Nokias current sales figures are decreasing and they show no sign

of increasing again

In the near future I have come up with a revised marketing strategy

that will re-launch Nokia and its products and increase sales to what

they have been in the past and probably higher then they have been

since they were first released



My marketing mix

Product- The phones will continue to be of a high quality but will

not be as technologically advanced as the recent phones that have been

released The phones will be easier to use and carry the less advancedtechnology with WAP being the most advanced feature available in the

new range of phones that will be released as my market research

showed that most of the people aged 40+ were technophobes or wanted

mobile technology to be easier to use if they were going to purchase a

mobile phone

Price- If the technology released with the phones is not as advanced

the price does not need to be as high as the prices of the phones in

the market at the moment as less money is being spent on product

development and the phones wont cost as much to produce there is no

need to keep the prices so high I have decided to lower the price due

to production costs and it is also down to the fact that nearly all

of the people who I intend to have set as the new target market (the

40+ market) said that phones cost to much and so did call rates but

if phones were a lot cheaper (around pound125 per phone on pay as you go

and free if a contract method of payment is selected)

Place- Nokia phones will continue to be sold at the main

communications outlets (Carphone warehouse and The link) but will alsobe sold at the three main supermarkets Sainsburys Safeways and

Tesco as my market research has shown that this where my new target

market do the majority of their food shopping at these outlets it

would be an excellent place to sell phones as there is also no

competition distributing their products in these locations and Nokia

could have 100 of the shoppers business and it would also be a way

of promoting Nokia for free as people will look at almost anything

while waiting in supermarket queues

Promotion-As Nokia would be aiming their new line of mobile phones at

a completely new market there would be high promotion costs involved

as there is at the introduction stage of any product life cycle The

best places to put print advertisements would be in supermarkets near

the tills so people in the queue can read them and hopefully become

interested in buying a Nokia brand mobile phone Also print adverts

should be placed in magazines and newspapers where the target market

will see them my market research showed that the most read magazines

by people aged 40+ was Lifestyle and Vogue for the women and the

most read by men was the observer magazine as not many men admitted tobuying a magazine regularly The most popular newspapers were The



Observer and The Guardian on weekends and the Evening standard during

the week so it is obvious that these are the magazines and newspapers

that adverts should be placed in as they would be seen more by the new

target market Because we do not want to cancel out any people outside

our target market (avoiding a niche market) Nokia should continue toplace poster adverts in places that will be viewed by a massive

selection of people (such as Londons West End and other popular

shopping centres)

Marketing principles

Any marketing scheme that has been developed must be based around the

principles of marketing and my revised Nokia strategy is no

different below I have analysed how I have followed each marketing

principle

Customer satisfaction- Before developing my strategy I had to

found out exactly what the consumers wanted I found out that they

wanted phones that were high quality (with long battery life

good reception and good SMS features) low priced (priced lower

then pound150 but could be higher if call charges dropped) and I

have offered this in the new line of phones that are being

specially developed to meet the needs of the 40+ market (simpler

technology)

Customer perception- I had found out that Nokia was viewed as the

highest quality brand name in mobile communications and it was

also the most trusted brand 8 out of 10 people said that they

would look for a Nokia phone that they liked before they would

look at another brand Nokias prices were considered a bit

expensive and this was partly why I have decided to decrease the

prices of the new range of phones although people said they

didnt mind paying the extra money for the quality they think they

will receive with a branded item

Customer needs and expectations- This is where you companies need

to anticipate future trends and forecast for future sales In my

market mobile phones are not considered a necessity yet so it is

hard to anticipate future trends as no company has yet created a

foothold in the market and the customers cant say what they would

like to see in future products if they do not have any at the

moment so a good thing to do would be to create a feedback group

with some prototype phones and see what changes they would likeNokia to make to them



Generating income or profit- This is the reason why I had to

review Nokias current strategy the sales were starting to

decrease and this was starting to reflect in the income and

profits and decreases in these will not satisfy the mainstakeholders in Nokia

Making satisfactory progress- If a product is developing with the

market then they are fulfilling this marketing principle Nokia

are actually achieving this with their current marketing scheme

but they are spending huge amounts of money on product development

and the sales are not currently reflecting well on the decisions

to spend that amount of money on product development

Awareness of the surrounding environment- This is the reason ever

company must complete market research from my research I know

what the customers want where they shop what they watch on

television what radio stationsprograms they listen to what the

average income is and what features people rate highest in phone

technology

There are also many external factors that can affect your marketing

style and the decision of which strategy to use we can evaluate these

using PEST

Political factors- Legal constraints are the hardest external factor

to try and avoid making any serious impact on any pricing or

marketing choices made The only legal constraint that my new strategy

dodges is the G3 licensing as the new style of Nokia product

doesnt need any of the newest technologies under the G3 frame

Environmental and Social factors- Nokia have never really had any of

these affect the way in which they operate because they have never

done anything that is really anti-environmental the only problem is

the fact that the mobile phones let of radiation and has been said to

increase the risk of cancer in mobile phone users but this has not

been highly documented and hasnt affected how Nokia have conducted

themselves

Technological factors- This is the most important external factor in

the communications as mobile phones are based around technology and

new discoveries The new strategy does have to be careful with

technological advances as Nokia do not want to make the new phones tocomplicated as my market research discovered that this is exactly what



the target market does not want they want phones that are simpler to

use

Pricing strategy

As Nokia will be entering a new market as part of the new market

strategy I have decided to change the current pricing plan to a

mixture of two theoretical pricing approaches

Market skimming and demand based pricing- Market skimming is where the

competition in a market is slim or non-existent and a company can

charge what ever price they want because there is no other company to

offer a lower one As Nokia will be entering a new market we will be

able to choose whatever price we want to start selling mobile phones

at and I think they should first be introduced at around pound150 as my

market research showed that consumers in the new target market would

be hesitant to pay any higher and this is the part that relates to

demand based pricing

Market segmentation

The market segment the Nokia was previously aiming at had become

saturated my research showed that 100 of students already owned a

mobile phone and where not about too buy another one in the nearfuture Due to the fact that this youth market is saturated I

analysed the Ansoffs and Boston matrixes and decided to undertake in

market penetration The new market that I am aiming Nokias products

is the middle aged people because my research showed that very few

middle aged people owned mobile phones and could be persuaded to buy a

phone if the product was what they wanted and the price was right and

of those people who said that that didnt want a phone most of them

said they could be persuaded by strong advertising and branding

Evaluation

My revised strategy has a lot of advantages over Nokias previous

strategy and I have listed them below

middot My target market is one that has never been entered before so Nokia

will instantly gain 100 market share whereas the current target

market is saturated and competition for market share is very strong

middot The products that are being released do not need to be astechnically advanced as the ones in the current market because my



market research showed that the 40+ market do not want phones that are

to complicated and hard to use

middot If product research and development is not needed as much anymore

then Nokia can afford to decrease its employment numbers and thiswould save Nokia a lot of money every year

middot When entering a new market with no competition a company can charge

whatever prices they want Nokias prices can be higher then they

currently are and this will increase income and profitability

End



In April 2005 Nokia India a subsidiary of Finland-based Nokia announced that it wassetting up a manufacturing facility for mobile devices in Chennai the state capital of TamilNadu in southern India Nokia planned to invest US$ 100-150 million in the facility wherethe production was expected to begin in the first half of 2006

Pekka Ala-Pietilauml President and Head of Customer amp Market Operations Nokia Corporationsaid Establishing a new factory in India is an important step in the continuous developmentof our global manufacturing network4 India was ideal for Nokias new production facilityEach mobile handset has more than 400 parts and the average production capacity of eachmanufacturing unit of Nokia is around 20 million units This level of manufacturing involvesa total of 8 billion components per annum requiring strong logistical support Nokiasmanufacturing facility needed to be located close to a major international airport or sea portfor quick supply of components India met all these requirements and also enjoyed cheapmanpower costs and proximity to the rapidly growing Asia Pacific markets Besides Nokiawas the market leader in mobile communication devices in India The company has beencarrying out sales amp marketing customer care and research amp development activities in the

country Nokia considers India to be one of its most important markets The companys CodeDivision Multiple Access (CDMA)5 facility is located in Mumbai and provides software andtechnical support to CDMA consumers in India and other Asia Pacific countries In 2004Nokia was chosen as the most respected consumer durables companyby Businessworld6 The magazine wrote This Finnish companys debut at the top of the heap says two things One that its strategies - including ones like developing a phone specifically for India - arerespected But more importantly Nokias win is also an endorsement of the importance of the ubiquitous cell phone as a durable in todays world After all unlike its competitors mostof which offer a slew of durables Nokia is mostly a cell phone company7

In 2005 Nokia was recognized as the Brand of the Yearby the Confederation of IndianIndustry Indias apex industry association The company was chosen for this award becauseof its high brand recall well established distribution channels and being most preferred bythe consumers

Enamored of Nokias success in the Indian market Harvard University had invited NokiaIndia to talk on How Nokia cracked open the Indian market

The Indian Mobile Phones Industry

The mobile phones industry made a slow start in India in 1995 Several private players who

had entered the industry in 1995 exited in the next few years due to the unfriendly telecom

policies of the Indian government high licensing fees and absence of a proper telecom

regulatory body The growth in the subscriber base of mobile phones remained sluggish

initially reaching the 1 million milestone in 1998 In 1999 the Government of India

announced a new telecom policy This policy planned to provide telephones on demand by

2002 Among other things the policy allowed unrestricted private entry into almost all mobile

service sectors The government allowed cellular mobile service providers to share

infrastructure with other operators It also allowed existing operators to migrate from fixed

license fee to one-time entry fee with revenue sharing This policy helped many privateoperators to break even faster By 2001 the demand for mobile services was growing well



The private companies concentrated on providing basic telephone services to consumers The

number of mobile phones crossed five million by 2001 and doubled to 10 million in 2002

Excerpts

About Nokia

Nokia was founded in 1865 by Fredrik Idestam in Finland as a paper manufacturing

company In 1920 Finnish Rubber Works became a part of the company and later on in

1922 Finnish Cable Works joined them All the three companies were merged in 1967 to

form the Nokia Group

In the late 1970s Nokia started taking an active interest in the power and electronics

businesses and by 1987 consumer electronics became Nokias major business Nokia created

the NMT mobile phone standard in 1981 and launched the first NMT phone Mobira

Cityman in 1987 The company delivered the first GSM network to Radkilinia a Finnish

company in 1991 and in 1992 Nokia 1011 - a precursor for all Nokias current GSM phones

- was introduced

In the 1990s Nokia provided GSM services to 90 operators across the world Anothersignificant move of the company during this period was the divestment of its non-coreoperations like IT The company focused on two core businesses - mobile phones andtelecommunications networks Between 1992 and 1996 the company exited from the rubber

and cable businesses as well

Nokia in India

Nokia entered the Indian market in 1994 The first ever GSM call in India was made on a

Nokia 2110 mobile phone on its own network in 1995 When Nokia entered India the

telecom policies were not conducive to the growth of the mobile phone industry

The tariffs levied on importing mobile phones were as high as 27 usage charges were at

Rs16 per minute and at these high rates consumers did not take to mobile phones Nokia

also had to face tough competition from other powerful global players like Motorola SonySiemens and Ericsson The Problems

In spite of its strong marketing Nokias problems at the global level had an impact on the

companys Indian venture Globally Nokia had been experiencing tough times with revenues

falling to 29 billion euros in 2004 from 32 billion euros in 2001 The companys operating

profits decreased from 5 billion euros in 2003 to 43 billion euros in 2004



Bouncing Back

Nokia was quick to learn from its mistakes and adopted strategies to regain its lost market

share Globally during the first quarter of 2005 the companys sales reached 74 billion

euros with the company selling 54 million phones during the period In India Nokia

continued its leadership in GSM with a market share of 74 in March 2005 Nokia alsosurpassed Samsung in color mobiles in the GSM segment recording a share of 55 in the

same month (Refer Table VIII for share of major mobile phone brands in the GSM segment

and their market shares)

Nokia reorganized itself at the global level in 2004 At this point a multimedia division was

formed

The divisions Indian operations concentrated on promoting the concept of high-end

telephones in smaller towns while going in for higher volumes in larger cities The marketing

division of the company concentrated on making distributors in small towns sell high-end

products Though the distributors were skeptical to start with by the end of 2004 the process

was streamlined and the results started to show

The Future Prospects

According to industry analysts by 2010 the mobile phones industry in India will be driven

by voice multimedia and mobile services for organizations The teledensity in India was

estimated to increase to 182 by March 2009 with mobile subscription rising to 14877

million by that time In many instances the cell phone has become the only basic telephone

link of a householdenterprise in India rather than a landline phone It was turning out to be

more economical and efficient than fixed line telephones So there was great scope for

further expansion with reduction in the cost of ownership



Camera phones and

Video recorders

Competition in the market

-------------------------

With all this technology available in the communications market it is

obvious that Nokia will have lots of competition they include

Sony Ericsson

Samsung

Motorola

Siemens

Panasonic

NEG

Sagem and

Toplux

With all of these competitors in the market Nokia must keep ahead of

the game by running successful marketing strategies to do this Nokia

must focus on the principles of marketing At the moment Nokia are the

worlds best selling phone company (see table below which shows market

share) Nokia strengthened its lead as the No 1 vendor in the market

during 2000 with shipments growing 66 percent over 1999 Some of the

companys success was attributed to a strong second half in 2000 when

59 percent of sales occurred

1 Nokia 372 (347 1Q02)

2 Motorola 173 (155)

3 Samsung 98 (96)

4 Siemens 85 (88)










or services













needs such as
















PEST















laws






















SWOT



threat












segment




currently paying







Nokia brand name







charges













based)



existing one









consumers











profits

Market research




















enter into































middot Observations

middot Experiments


Internal sources









External data



retail audit





following


2 How much they buy



habits they include

1 Age

2 Gender

3 Area they live in

4 Religion



5 Lifestyle

6 Taste


Market segmentation











the UK in 1999


Of population

A-Upper class

28

B- Middle class

186


275


221

D- Working class



176


114










likely to fall






trend

The marketing mix

-----------------









research)
















-----------------------



Technical research

2 Product launch

Test market

Pricing

Branding

Packaging

3 Product promotion

Advertising

Merchandising

Publicity and PR

Sales promotion





















---------------------------------

Introduction















production costs






market share

Growth

















market)

Maturity












decline

Decline







to make a profit


[IMAGE]

Sales

Time

[IMAGE]

Sales

-----

[IMAGE]



Time

----


the one above

--------------------------------------------------------------------

Branding

--------













Cost based pricing


















Market skimming








Penetration pricing























Destroyer pricing









--------------------------------------------







market)







lower prices






sold




The marketing mix







































restricted to

Market segmentation























Pricing strategy























world

Branding













Introduction










such a new product

Growth








Maturity






Decline








handset



pages 3 and 4




















1996s sales






































Market research










intent




whole

























































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed























or services













needs such as
















PEST















laws






















SWOT



threat












segment




currently paying







Nokia brand name







charges













based)



existing one









consumers











profits

Market research




















enter into































middot Observations

middot Experiments


Internal sources









External data



retail audit





following


2 How much they buy



habits they include

1 Age

2 Gender

3 Area they live in

4 Religion



5 Lifestyle

6 Taste


Market segmentation











the UK in 1999


Of population

A-Upper class

28

B- Middle class

186


275


221

D- Working class



176


114










likely to fall






trend

The marketing mix

-----------------









research)
















-----------------------



Technical research

2 Product launch

Test market

Pricing

Branding

Packaging

3 Product promotion

Advertising

Merchandising

Publicity and PR

Sales promotion





















---------------------------------

Introduction















production costs






market share

Growth

















market)

Maturity












decline

Decline







to make a profit


[IMAGE]

Sales

Time

[IMAGE]

Sales

-----

[IMAGE]



Time

----


the one above

--------------------------------------------------------------------

Branding

--------













Cost based pricing


















Market skimming








Penetration pricing























Destroyer pricing









--------------------------------------------







market)







lower prices






sold




The marketing mix







































restricted to

Market segmentation























Pricing strategy























world

Branding













Introduction










such a new product

Growth








Maturity






Decline








handset



pages 3 and 4




















1996s sales






































Market research










intent




whole

























































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed



















PEST















laws






















SWOT



threat












segment




currently paying







Nokia brand name







charges













based)



existing one









consumers











profits

Market research




















enter into































middot Observations

middot Experiments


Internal sources









External data



retail audit





following


2 How much they buy



habits they include

1 Age

2 Gender

3 Area they live in

4 Religion



5 Lifestyle

6 Taste


Market segmentation











the UK in 1999


Of population

A-Upper class

28

B- Middle class

186


275


221

D- Working class



176


114










likely to fall






trend

The marketing mix

-----------------









research)
















-----------------------



Technical research

2 Product launch

Test market

Pricing

Branding

Packaging

3 Product promotion

Advertising

Merchandising

Publicity and PR

Sales promotion





















---------------------------------

Introduction















production costs






market share

Growth

















market)

Maturity












decline

Decline







to make a profit


[IMAGE]

Sales

Time

[IMAGE]

Sales

-----

[IMAGE]



Time

----


the one above

--------------------------------------------------------------------

Branding

--------













Cost based pricing


















Market skimming








Penetration pricing























Destroyer pricing









--------------------------------------------







market)







lower prices






sold




The marketing mix







































restricted to

Market segmentation























Pricing strategy























world

Branding













Introduction










such a new product

Growth








Maturity






Decline








handset



pages 3 and 4




















1996s sales






































Market research










intent




whole

























































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed


















SWOT



threat












segment




currently paying







Nokia brand name







charges













based)



existing one









consumers











profits

Market research




















enter into































middot Observations

middot Experiments


Internal sources









External data



retail audit





following


2 How much they buy



habits they include

1 Age

2 Gender

3 Area they live in

4 Religion



5 Lifestyle

6 Taste


Market segmentation











the UK in 1999


Of population

A-Upper class

28

B- Middle class

186


275


221

D- Working class



176


114










likely to fall






trend

The marketing mix

-----------------









research)
















-----------------------



Technical research

2 Product launch

Test market

Pricing

Branding

Packaging

3 Product promotion

Advertising

Merchandising

Publicity and PR

Sales promotion





















---------------------------------

Introduction















production costs






market share

Growth

















market)

Maturity












decline

Decline







to make a profit


[IMAGE]

Sales

Time

[IMAGE]

Sales

-----

[IMAGE]



Time

----


the one above

--------------------------------------------------------------------

Branding

--------













Cost based pricing


















Market skimming








Penetration pricing























Destroyer pricing









--------------------------------------------







market)







lower prices






sold




The marketing mix







































restricted to

Market segmentation























Pricing strategy























world

Branding













Introduction










such a new product

Growth








Maturity






Decline








handset



pages 3 and 4




















1996s sales






































Market research










intent




whole

























































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed

















charges













based)



existing one









consumers











profits

Market research




















enter into































middot Observations

middot Experiments


Internal sources









External data



retail audit





following


2 How much they buy



habits they include

1 Age

2 Gender

3 Area they live in

4 Religion



5 Lifestyle

6 Taste


Market segmentation











the UK in 1999


Of population

A-Upper class

28

B- Middle class

186


275


221

D- Working class



176


114










likely to fall






trend

The marketing mix

-----------------









research)
















-----------------------



Technical research

2 Product launch

Test market

Pricing

Branding

Packaging

3 Product promotion

Advertising

Merchandising

Publicity and PR

Sales promotion





















---------------------------------

Introduction















production costs






market share

Growth

















market)

Maturity












decline

Decline







to make a profit


[IMAGE]

Sales

Time

[IMAGE]

Sales

-----

[IMAGE]



Time

----


the one above

--------------------------------------------------------------------

Branding

--------













Cost based pricing


















Market skimming








Penetration pricing























Destroyer pricing









--------------------------------------------







market)







lower prices






sold




The marketing mix







































restricted to

Market segmentation























Pricing strategy























world

Branding













Introduction










such a new product

Growth








Maturity






Decline








handset



pages 3 and 4




















1996s sales






































Market research










intent




whole

























































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed























profits

Market research




















enter into































middot Observations

middot Experiments


Internal sources









External data



retail audit





following


2 How much they buy



habits they include

1 Age

2 Gender

3 Area they live in

4 Religion



5 Lifestyle

6 Taste


Market segmentation











the UK in 1999


Of population

A-Upper class

28

B- Middle class

186


275


221

D- Working class



176


114










likely to fall






trend

The marketing mix

-----------------









research)
















-----------------------



Technical research

2 Product launch

Test market

Pricing

Branding

Packaging

3 Product promotion

Advertising

Merchandising

Publicity and PR

Sales promotion





















---------------------------------

Introduction















production costs






market share

Growth

















market)

Maturity












decline

Decline







to make a profit


[IMAGE]

Sales

Time

[IMAGE]

Sales

-----

[IMAGE]



Time

----


the one above

--------------------------------------------------------------------

Branding

--------













Cost based pricing


















Market skimming








Penetration pricing























Destroyer pricing









--------------------------------------------







market)







lower prices






sold




The marketing mix







































restricted to

Market segmentation























Pricing strategy























world

Branding













Introduction










such a new product

Growth








Maturity






Decline








handset



pages 3 and 4




















1996s sales






































Market research










intent




whole

























































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed







































middot Observations

middot Experiments


Internal sources









External data



retail audit





following


2 How much they buy



habits they include

1 Age

2 Gender

3 Area they live in

4 Religion



5 Lifestyle

6 Taste


Market segmentation











the UK in 1999


Of population

A-Upper class

28

B- Middle class

186


275


221

D- Working class



176


114










likely to fall






trend

The marketing mix

-----------------









research)
















-----------------------



Technical research

2 Product launch

Test market

Pricing

Branding

Packaging

3 Product promotion

Advertising

Merchandising

Publicity and PR

Sales promotion





















---------------------------------

Introduction















production costs






market share

Growth

















market)

Maturity












decline

Decline







to make a profit


[IMAGE]

Sales

Time

[IMAGE]

Sales

-----

[IMAGE]



Time

----


the one above

--------------------------------------------------------------------

Branding

--------













Cost based pricing


















Market skimming








Penetration pricing























Destroyer pricing









--------------------------------------------







market)







lower prices






sold




The marketing mix







































restricted to

Market segmentation























Pricing strategy























world

Branding













Introduction










such a new product

Growth








Maturity






Decline








handset



pages 3 and 4




















1996s sales






































Market research










intent




whole

























































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed






















External data



retail audit





following


2 How much they buy



habits they include

1 Age

2 Gender

3 Area they live in

4 Religion



5 Lifestyle

6 Taste


Market segmentation











the UK in 1999


Of population

A-Upper class

28

B- Middle class

186


275


221

D- Working class



176


114










likely to fall






trend

The marketing mix

-----------------









research)
















-----------------------



Technical research

2 Product launch

Test market

Pricing

Branding

Packaging

3 Product promotion

Advertising

Merchandising

Publicity and PR

Sales promotion





















---------------------------------

Introduction















production costs






market share

Growth

















market)

Maturity












decline

Decline







to make a profit


[IMAGE]

Sales

Time

[IMAGE]

Sales

-----

[IMAGE]



Time

----


the one above

--------------------------------------------------------------------

Branding

--------













Cost based pricing


















Market skimming








Penetration pricing























Destroyer pricing









--------------------------------------------







market)







lower prices






sold




The marketing mix







































restricted to

Market segmentation























Pricing strategy























world

Branding













Introduction










such a new product

Growth








Maturity






Decline








handset



pages 3 and 4




















1996s sales






































Market research










intent




whole

























































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed
















5 Lifestyle

6 Taste


Market segmentation











the UK in 1999


Of population

A-Upper class

28

B- Middle class

186


275


221

D- Working class



176


114










likely to fall






trend

The marketing mix

-----------------









research)
















-----------------------



Technical research

2 Product launch

Test market

Pricing

Branding

Packaging

3 Product promotion

Advertising

Merchandising

Publicity and PR

Sales promotion





















---------------------------------

Introduction















production costs






market share

Growth

















market)

Maturity












decline

Decline







to make a profit


[IMAGE]

Sales

Time

[IMAGE]

Sales

-----

[IMAGE]



Time

----


the one above

--------------------------------------------------------------------

Branding

--------













Cost based pricing


















Market skimming








Penetration pricing























Destroyer pricing









--------------------------------------------







market)







lower prices






sold




The marketing mix







































restricted to

Market segmentation























Pricing strategy























world

Branding













Introduction










such a new product

Growth








Maturity






Decline








handset



pages 3 and 4




















1996s sales






































Market research










intent




whole

























































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed
















176


114










likely to fall






trend

The marketing mix

-----------------









research)
















-----------------------



Technical research

2 Product launch

Test market

Pricing

Branding

Packaging

3 Product promotion

Advertising

Merchandising

Publicity and PR

Sales promotion





















---------------------------------

Introduction















production costs






market share

Growth

















market)

Maturity












decline

Decline







to make a profit


[IMAGE]

Sales

Time

[IMAGE]

Sales

-----

[IMAGE]



Time

----


the one above

--------------------------------------------------------------------

Branding

--------













Cost based pricing


















Market skimming








Penetration pricing























Destroyer pricing









--------------------------------------------







market)







lower prices






sold




The marketing mix







































restricted to

Market segmentation























Pricing strategy























world

Branding













Introduction










such a new product

Growth








Maturity






Decline








handset



pages 3 and 4




















1996s sales






































Market research










intent




whole

























































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed




























-----------------------



Technical research

2 Product launch

Test market

Pricing

Branding

Packaging

3 Product promotion

Advertising

Merchandising

Publicity and PR

Sales promotion





















---------------------------------

Introduction















production costs






market share

Growth

















market)

Maturity












decline

Decline







to make a profit


[IMAGE]

Sales

Time

[IMAGE]

Sales

-----

[IMAGE]



Time

----


the one above

--------------------------------------------------------------------

Branding

--------













Cost based pricing


















Market skimming








Penetration pricing























Destroyer pricing









--------------------------------------------







market)







lower prices






sold




The marketing mix







































restricted to

Market segmentation























Pricing strategy























world

Branding













Introduction










such a new product

Growth








Maturity






Decline








handset



pages 3 and 4




















1996s sales






































Market research










intent




whole

























































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed


































---------------------------------

Introduction















production costs






market share

Growth

















market)

Maturity












decline

Decline







to make a profit


[IMAGE]

Sales

Time

[IMAGE]

Sales

-----

[IMAGE]



Time

----


the one above

--------------------------------------------------------------------

Branding

--------













Cost based pricing


















Market skimming








Penetration pricing























Destroyer pricing









--------------------------------------------







market)







lower prices






sold




The marketing mix







































restricted to

Market segmentation























Pricing strategy























world

Branding













Introduction










such a new product

Growth








Maturity






Decline








handset



pages 3 and 4




















1996s sales






































Market research










intent




whole

























































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed























production costs






market share

Growth

















market)

Maturity












decline

Decline







to make a profit


[IMAGE]

Sales

Time

[IMAGE]

Sales

-----

[IMAGE]



Time

----


the one above

--------------------------------------------------------------------

Branding

--------













Cost based pricing


















Market skimming








Penetration pricing























Destroyer pricing









--------------------------------------------







market)







lower prices






sold




The marketing mix







































restricted to

Market segmentation























Pricing strategy























world

Branding













Introduction










such a new product

Growth








Maturity






Decline








handset



pages 3 and 4




















1996s sales






































Market research










intent




whole

























































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed

























decline

Decline







to make a profit


[IMAGE]

Sales

Time

[IMAGE]

Sales

-----

[IMAGE]



Time

----


the one above

--------------------------------------------------------------------

Branding

--------













Cost based pricing


















Market skimming








Penetration pricing























Destroyer pricing









--------------------------------------------







market)







lower prices






sold




The marketing mix







































restricted to

Market segmentation























Pricing strategy























world

Branding













Introduction










such a new product

Growth








Maturity






Decline








handset



pages 3 and 4




















1996s sales






































Market research










intent




whole

























































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed
















Time

----


the one above

--------------------------------------------------------------------

Branding

--------













Cost based pricing


















Market skimming








Penetration pricing























Destroyer pricing









--------------------------------------------







market)







lower prices






sold




The marketing mix







































restricted to

Market segmentation























Pricing strategy























world

Branding













Introduction










such a new product

Growth








Maturity






Decline








handset



pages 3 and 4




















1996s sales






































Market research










intent




whole

























































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed






















Market skimming








Penetration pricing























Destroyer pricing









--------------------------------------------







market)







lower prices






sold




The marketing mix







































restricted to

Market segmentation























Pricing strategy























world

Branding













Introduction










such a new product

Growth








Maturity






Decline








handset



pages 3 and 4




















1996s sales






































Market research










intent




whole

























































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed





















Destroyer pricing









--------------------------------------------







market)







lower prices






sold




The marketing mix







































restricted to

Market segmentation























Pricing strategy























world

Branding













Introduction










such a new product

Growth








Maturity






Decline








handset



pages 3 and 4




















1996s sales






































Market research










intent




whole

























































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed
















sold




The marketing mix







































restricted to

Market segmentation























Pricing strategy























world

Branding













Introduction










such a new product

Growth








Maturity






Decline








handset



pages 3 and 4




















1996s sales






































Market research










intent




whole

























































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed























restricted to

Market segmentation























Pricing strategy























world

Branding













Introduction










such a new product

Growth








Maturity






Decline








handset



pages 3 and 4




















1996s sales






































Market research










intent




whole

























































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed

































world

Branding













Introduction










such a new product

Growth








Maturity






Decline








handset



pages 3 and 4




















1996s sales






































Market research










intent




whole

























































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed





















such a new product

Growth








Maturity






Decline








handset



pages 3 and 4




















1996s sales






































Market research










intent




whole

























































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed
































1996s sales






































Market research










intent




whole

























































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed


































Market research










intent




whole

























































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed



































































networks

Global Reach











People






















































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed
































































network







operators






































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed




































enterprises








Dividend




2002



2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed
















2001

Change

EURm

EURm

Nokia Mobile Phones

23 211

77

23 158

74

Nokia Networks

6 539

22

7 534

24

-13


459

1

585

2



-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed
















-22

Inter-business

group eliminations

- 193

- 86

Nokia Group

30 016

100

31 191

100

-4


Jan 1-Dec 31

2002

of

2001

of

EURm

net sales

EURm

net sales

Nokia Mobile Phones

5 201



224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed
















224

4 521

195

Nokia Networks

-49

-07

-73

-10


-141

-307

-855

-1462


-231

-231

Nokia Group

4 780

159

3 362

108




[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed
















[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]

[IMAGE]


Battery life

1

Exchangeable covers

5

WAP

9

MMS

10


3

SMS

2

Games



6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed
















6

Picture messaging

8

Organiser

7

Ringtone features

4

[IMAGE]


-----------------------







































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed
































with









released














































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed
















































of increasing again







My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed
















My marketing mix







mobile phone






































shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed






















shopping centres)





principle








technology)



































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed































technology



using PEST












themselves








use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed

















use

Pricing strategy













Market segmentation











Evaluation
















End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed























End























Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed




































Excerpts

About Nokia










- was introduced



Nokia in India













Bouncing Back








formed
















Bouncing Back








formed














Marketing Strategy for Nokia

Documents

Transcript of Marketing Strategy for Nokia