Nokia market Regaining Strategy

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    15th Oct10 1

    NokiasMarketRegaining

    Strategy

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    Key Reasons for Nokias loss

    1. Aggressive entry of new players Nokia has seen a dual level increasedcompetition in last year Samsung becoming aggressive in the handset segment by launching new

    handsets in all price ranges. Entry of new handset players (who were able to crack the Nokia model of

    distribution in rural areas i.e. using Kirana stores or any other regularshopping destination to make themselves available).

    2. Nokia Missing out on Key Innovation

    Late entry in the Dual SIM Segment - Dual SIM phones are growing at40%, the fastest expanding segment in the category. Its first dual SIMmodels C1 and C2 entered market very late (Source - Economictimes)

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    Innovative products launched by Competition Missed byNokia -

    Micromax launched handset with a 30 day battery backup,

    Bling phone (target female segment) a phone withcrystals and mirror, phone that doubles up as auniversal remote for television sets and air conditioners.

    Samsung launched Marine, a phone powered in part bysolar energy. Samsung also launched trendy phones withtouch screen and one touch internet access and 3G

    features in the price segment of 5-8

    k (S

    amsung Corby,Star) hence attracting the youth segment

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    The perceptual high ground on touch phones was taken overby the I Phone even as Blackberry grew synonymouswith business phones. While Nokia was slow to launchtouch screen phones, Samsung, which claims to have a 16%volume and 20% value share of the mobile market, went to

    town with these models. Spice has launched a camera phone that has a 12 megapixel

    lens powered by a separate processor. Spice Mobile threw inan ultra violet torch that would help detect counterfeitcurrency and has recently come up with a model with twomemory cards that serve like double cassette decks of yore,

    allowing for easy transfer of data. Other players like Karbon, Zen, Olive etc are coming up

    with Querty (Black berry look alike) phones with goodfeatures in price range of 3-5 k

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    Business Segment

    Smart phones with latest features to cater tobusiness segment

    Flood market with 3G phones looking atnational launch of 3G in India

    Youth and Working Professionals

    Fill the existing gap in the price ranges of lessthan 8k by bringing products which attracts

    youth

    Rural Market and Small Towns

    Create products to cater need for ever growingrural market

    Nokia has to be very fast in responding to competition and fill its existingproduct gap in various segments by introducing innovative products

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    Product Launch more handsets with longer battery life,

    may be handsets with a spare battery (so thatone battery can be charged)

    Handsets which works on Solar energy thiswill have a very large market due to lowelectricity penetration in villages

    Trendy handsets with fancy features like music(including regional music), longer memory ,

    Hindi font/ regional font, onetouch access to mandi rates , farmershelpline, torch and tough body.

    Phone having keypads with larger keys

    Handsets in the price range of Rs 1,000 to 3,000

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    Service Service center tie ups with local radio/ watch repair stores (providing Nokia

    certified service professionals to them) Regular supply of spare parts at low cost to these service centers. Information about the Nokia Care Center at District headquarter to be given to

    local panchayat office, post office and prominent places. Setting up mobile recharging points (which works on solar energy/ battery)at various places in village / town which has only Nokia charging facility.

    Marketing &Distribution A

    ds explaining features such as longer battery, larger memory, low price andmusic capability to be aired on local TV channels, DD, Radio and Nationalchannels.

    Videos to be shown at local fates, social gatherings etc. Nokia sponsoring village / town level activities. Tie up with local FMCG stores and post offices for sale of handsets and

    accessories.

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    Service Service center tie ups with local radio/ watch repair stores (providing Nokia

    certified service professionals to them) Regular supply of spare parts at low cost to these service centers. Information about the Nokia Care Center at District headquarter to be given to

    local panchayat office, post office and prominent places. Setting up mobile recharging points (which works on solar energy/ battery)at various places in village / town which has only Nokia charging facility.

    Marketing &Distribution A

    ds explaining features such as longer battery, larger memory, low price andmusic capability to be aired on local TV channels, DD, Radio and Nationalchannels.

    Videos to be shown at local fates, social gatherings etc. Nokia sponsoring village / town level activities. Tie up with local FMCG stores and post offices for sale of handsets and

    accessories.

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    Product Samsung has taken a lead in this segment by introducing low prices phones

    with touch screen and internet access like Samsung Star, Samsung Corby etc.

    Nokia should leverage its existing leadership in Qwerty phones to introduce qwertyphones with push mail features in the price range of 5-7k .

    Phones with features like Music, larger memory, cool looks and one touch access tosocial networking to be introduced in the price segment of 5-7 k.

    Maps is another feature which can be given on phones in this segment. Phones in vibrant colors

    Dual sim phones should be launched.

    3G phone with low price and good features.

    Service Service centers near colleges and youth hangout places.

    Accessories of multiple colors Funky and cool headphones for mobile handsets.

    Discounts on upgrades within 6 months.

    Marketing and Distribution

    Singing up youth icon celebrities for marketing.

    Positioning the phones as Stylish and hi tech.

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    Product Introducing phones with most advanced features and built in applications.

    Smart phones with different operating systems Symbian, Android etc.

    Design your own phone (Dell like model) which enables customers todesign their own handset with required features.

    Very short life of each Smart phone ensuring limited availability and

    hence each model remaining as a premium model. Providing high speed internet on phones

    High End 3G Phones

    Service High end service centers, corporate service camps

    Marketing and Distribution Positioning the phones as premium and a handy replacement of laptops /

    PC.

    Marketing phones as the ultimate connectivity/ communication solutionwhich provides a one stop solution to all communication needs such asvoice chat, video chats, entertainment, business tools, PC, and officeassistant.