Nokia STP Strategy

8/8/2019 Nokia STP Strategy

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A PROJECT REPORT ON NOKIA

ASSIGNED BY:

SUBMITTED BY:

Ms. Shubhra Bahal Dipak RanjanSwain

Rajesh Kumar

Jena

Rishab Verma

Sabyasachi

Mukherjee

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Sachin Gupta

Vivek Kapoor

CONTENTS

EXECUTIVE SUMMARY

INTRODUCTION

HISTORY

ANALYSIS

4 PS CONCEPT

PEST ANALYSIS

STP ANALYSIS

LOOPHOLES

RECOMMENDATIONCONCLUSION

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NOKIA: AN INTRODUCTION

Everyone has a need to communicate and share. Nokia

helps people to fulfill this need and they help people feel close to

what matters to them. They focus on providing consumers with

very human technology technology that is intuitive, a joy to use,

and beautiful

HISTORY OF NOKIA:-

NOKIAS FIRST CENTURY: 1865-1967

The first Nokia century began with Fredrik Idestam's

paper mill on the banks of the Nokianvirta river. Between 1865 and

1967, the company would become a major industrial force; but it

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took a merger with a cable company and a rubber firm to set the

new Nokia Corporation on the path to electronics.

1865: The birth of Nokia:-

Fredrik Idestam establishes a paper mill at the TammerkoskiRapids in south western Finland, where the Nokia storybegins.

1898: Finnish Rubber Works founded:-

Arvid Wickstrm founds Finnish Rubber Works, which will

later become Nokia's rubber business

1912: Finnish Cable Works founded:-

Eduard Poln starts Finnish Cable Works, the foundation of

Nokia's cable and electronics businesses.

1937: Verner Weckman, industry heavyweight:-

Former Olympic wrestler Verner Weckman becomes

President of Finnish Cable Works.

1960: First electronics department:-

Cable Works establishes its first electronics department,

selling and operating computers. 1962: First in-house electrical device:-

The Cable Works electronics department produces its first

in-house electrical device - a pulse analyzer for nuclear

power plants.

1967: The merger:-

Nokia Ab, Finnish Rubber Works and Finnish Cable works

formally merge to create Nokia Corporation.

THE MOVE TO MOBILE: 1968-1991

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The newly formed Nokia Corporation was ideally positioned

for a pioneering role in the early evolution of mobile

communications. As European telecommunications markets were

deregulated and mobile networks became global, Nokia led the

way with some iconic products...

1979: Mobira Oy, early phone maker

Radio telephone company Mobira Oy begins life as a joint venture

between Nokia and leading Finnish television maker Salora.

1981: The mobile era begins

Nordic Mobile Telephone (NMT), the first international mobile

phone network, is built.

1982: Nokia makes its first digital telephone switch

The Nokia DX200, the companys first digital telephone switch, goes

into operation.1984: Mobira Talkman launched

Nokia launches the Mobira Talkman portable phone.

1987: Mobira Cityman birth of a classic

Nokia launches the Mobira Cityman, the first handheld NMT

phone.

1991: GSM a new mobile standard opens up

Nokia equipment is used to make the worlds first GSM call.

MOBILE REVOLUTION: 1992-1999

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In 1992, Nokia decided to focus on its

telecommunications business. This was probably the most

important strategic decision in its history.

As adoption of the GSM standard grew, new CEO Jorma

Ollila put Nokia at the head of the mobile telephone industrys

global boom and made it the world leader before the end of the

decade...

1992: Jorma Ollila becomes President and CEO:-

Jorma Ollila becomes President and CEO of Nokia, focusing the

company on telecommunications.

1992: Nokias first GSM handset:-

Nokia launches its first GSM handset, the Nokia 1011.

1994: Nokia Tune is launched:-

Nokia launches the 2100, the first phone to feature the Nokia

Tune.1994: Worlds first satellite call:-

The worlds first satellite call is made, using a Nokia GSM

handset.

1997: Snake a classic mobile game:-

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

1998: Nokia leads the world:-

Nokia becomes the world leader in mobile phones.

1999: The Internet goes mobile:-Nokia launches the world's first WAP handset, the Nokia 7110.

NOKIA NOW: 2000-TODAY :-

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Nokias story continues with 3G, mobile multiplayer

gaming, multimedia devices and a look to the future...

2002: First 3G phone:- Nokia launches its first 3G phone, the Nokia

6650.

2003: Nokia launches the N-Gage:- Mobile gaming goes multiplayer

with the N-Gage.2005: The Nokia Nseries is born:- Nokia introduces the next generation

of multimedia devices, the Nokia Nseries.

2005: The billionth Nokia phone is sold:- Nokia sells its billionth phone

a Nokia 1100 in Nigeria. Global mobile phone subscriptions pass

2 billion.

2006: A new President and CEO:- Olli-Pekka Kallasvuo becomes

Nokias President and CEO; Jorma Ollila becomes Chairman of

Nokias board. Nokia and Siemens announce plans for Nokia

Siemens Networks. The birth of Nokia Eseries.The ultimate

handheld communicator mobiles (Enterprise series) are launched.

2007: Nokia recognized as 5th most valued brand in the world.

Nokia Siemens Networks commences operations. Nokia launches

Ovi, its new internet services brand.

2008: Nokia's three mobile device business groups and the

supporting horizontal groups are replaced by an integrated

business segment, Devices & Services.

THE 4PS OF THE MARKETING MIX:

PRODUCT:-

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

three P's 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). Nokia does exactly the same and comes up with innovative

phones almost every six months. The new phones that Nokia launches

have some new feature or price difference, thus appealing to the

consumer. Sometimes, Nokia launches special and limited editions of

its mobile phones, on special occasions such as the Olympics. In short

they offer phones of great variety with various designs and high

quality.

Price :-

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 pricingstrategies, for example, competitor based, penetration or skimming.

The three main factors affecting the amount charged for a product orservice, are; the cost of production, customer demand andcompetition. Since its entry into Indian mobile market in 1995, it

focused on manufacturing of mobile handsets based on GSMtechnology. Nokia built a strong brand image with focused marketingand distribution network. It started focusing on the low-cost mobilephone segment for rural markets in India, but, faced stiff competitionfrom Sony Ericsson, Samsung, and Motorola who also started offeringlow-cost handsets. Nokia has come up with the perfect prices for each

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and every consumer segment in the market. A lower middle-classperson can go for a Nokia 1200 costing around Rs. 1200 while anexecutive can opt for N-96 costing around Rs. 33,000.

Place :-

This refers to the chosen outlets for a product or service, for a

product to be very successful it must be easy to access, Nokia mobile

phones are very easy to access nowadays, they are sold in

supermarkets, Nokia Priority, Nokia Care and specialized outlets (eg.

The Mobile Store).

Promotion :-

This involves providing information to the customer over avariety 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 advertisements that Nokia comes up with are

very successful in targeting the customers in a consumer market. The

advertisements are made in such a way that it appeals to the

psychology of the consumer. They also have various sale promotion

schemes like offering discounts on special occasions and giving free

gifts along with a purchase of a mobile phone.

PEST ANALYSIS

In the case of Nokia, it can be classified as international

organization. It is basic for global brand, which is required to focus on

macro environmental factors, such as Nokia. Macro environmental

factors comprise Political, Economics, Society, and Technology, viz,

PEST Analysis. It is necessary force that Nokia has to concern andknow what is happening in the other countries at the moment.

Because there are different culture and different external factors

between different countries, Nokia has to adjust its strategic plan in

order to develop international market.

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Political :-

It is important of a company to acquire resources from

government, such as economic policy, and science and technology

policy. The success of Nokia has obtaine the resources from Finnishpolicies which assist Nokia to advance its products. The Finnish

policies are the most important factors of Nokia. To operate efficiently,

a modern knowledge- and technology-based economy that is highly

specialized, internationalized and undergoing rapid structural change

requires active support from the public sector. In its widest sense

industrial policy and science and technology (S&T) policy comprise all

those measures by which the public sector shapes the operating

environment for business and thus fosters public welfare. Both

policies used by Finnish government and Parliament are crucial for thedevelopment both of the Finnish Economy and of national information

society.

Finnish government best facilitate the efficient functioning of the

economy by directing its resources to the reduction of market failures.

The state must also pursue an industrial and economic policy that

provides a stable macroeconomic environment for enterprises.

General macroeconomic stability, low interest rates, stable currency

conditions and the international competitiveness of the tax systemform the foundation for the growth of business an improvement in

employment. As the result of this, not only Finnish Government but

also international companies, such as Nokia, have play very important

roles to develop their information society and national technology

strength.

Economic :-

According to the fact that Russian Federation was collapsed in

early 1990s and it assaulted with Finnish economics. Nokia also facewith the problem, and changed its functions from single market and

overall products to global market and focusing mobile phone market.

With incomes rising, people have more disposable income, which

enables consumers to be more selective with their choice of mobile

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phone, looking to other factors rather than fulfilling the most basic of

user (text, messaging and phone calls)

Nokia being a multinational company operates in many

countries. They have to abide by the economic policies in whichevercountry they are operating.

Society and Technology :-

In the 1980s, peoples trend to microcomputers and Nokia tried

to match the tendency to produce its main products, such as

computers, monitors and TV sets. According to the changes in 1990s,

Nokia also changes its functions to mobile phone market. Nowadays,

the global market trends to connect PC and mobile phone, even

though to combine these two products together.

On the other hand, one important future challenge of Nokia is to

establish its policy to follow up the environmental policy and science

and technology policy of the Finnish Government. Sustainable

development and environmental protection have various effects on the

operation of the innovation system. Innovation also creates new

opportunities for promoting sustainable development. The markets for

environmental products are expected to grow rapidly in the near

future. The Finnish government offers goods facilities for taking this

opportunity. National and European reforms arising from

environmental objectives influence the perquisites from

innovation. Nokia must be used to find solution which help to

implement environmental objectives as well as the objectives of

innovation policy in a balanced way.

To sum up, the main reason of Nokia has success to advance its

products are the policies and technology development of Finnish

Government. It cannot be separate between Nokias successful ofadvance its product and Finnish Governments policies, both of Nokia

and Finnish Government are the winner in the international market.

Nokia has obtained the success of mobile phone market, and Finnish

Government has established its position of technology development.

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At this moment Nokia is the best selling mobile phone company owing

to its constant upgradation in the technology of its phones.

STP ANALYSIS

SEGMENTATION AND TARGETING:-

Entry level: (Rs 1,200-3 ,000) :- Nokia targeted low income people

and first time mobile buyers in this series. Sets include are 1200,

1208, 1100, 1110, 1112 etc

Classic Series: (Rs 7,000-17,000) :- Nokia targeted decent

people in this series. Sets include in this series are

6300,6233,6120,3120 etc

N gage Series: (Rs 8,000-16,000) :- Nokia targeted game lovers in

this series .These sets include game like play station, PSP and

Xbox. N- Series: ( Rs 7000- 3 5 ,000):- Nokia targeted the young

generation who wanted to possess mobiles with the latest

technologies such as a 5 MP camera, a decent music player,

GPRS, etc. This series is also called multimedia computer. Named

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as on step ahead multimedia. Sets include N72, N81, N95, N96,

N97, etc

E-Series: ( Rs 10,000- 60 ,000):- These mobiles were launched for

people who needed mobile computing on the go especially

business people. These phones are enabled with word,

spreadsheet and presentation softwares. They also are equipped

with GPRS/ EDGE technologies thus functioning as a palmtop.

Sets include E90, E75, E61, E62, etc

Xpress music Series: (Rs 6,000-2 0,000):- Nokia launched this

series basically for the people who loved music. Good dolby

digital earphones and long battery life are the features of these

mobile phones. Sets include 5800, 5610, 5320, 5310, 5220, etc

Premium Series:(Rs 80,000-1,500,000):- In this series Nokiatargeted people who show visual status. Sets include in this

series are Sephiraarte, 8800Gold, 8800arts etc

POSITIONING:-

Positioning of a product refers to creating an image about a

particular product. Nokia has been very successful in this strategy.

Nokia has created a distinct position in customer mind by:-

Nokia logo:

Slogan:

StandardRingtone

Standard message tone.

Long battery backup.

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User friendly mobiles.

The specific message that is conveyed to the customers in every

advertisement is:

Nokia enable you to get more out of life.

These specific aspects have been embedded into the mindset of

the consumer in such a way that every time they saw the logo or

heard the ringtone they associate it with a Nokia product. Hence Nokia

has been very successful in positioning it products in the market.

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LOOPHOLES

No doubt that the products from the Finnish company, Nokia, are

some of the very best in the world, but the company still hasnt found

a profitable way to market its goods. The very reason that other

mobile phone companies are fast eating up Nokias market share is

their superior (yet simple) marketing practices.

Motorola and Samsung must now be in the FUW (frequently used

words) list in Nokias board meetings. These companies have made

Nokia pay dearly for its rudimentary approach in marketing its phones.

The aggressive marketing practices followed by Motorola have hitNokia very hard and it is losing very crucial global market share every

month to its American competitor.

Nokia, quite alarmed by the dropping sales of its phones, is now

putting all its weight behind the N-Series range. The N-Series is packed

with multimedia features and Nokia believes that these phones might

woo the costumers back to the big daddy of the mobile phone world.

But Espoo, we have a problem!! (Nokia is headquartered at Espoo,

Finland).

While Motorola (quite intelligently) gives a dashy-flashy name to

every phone it brings into the market, Nokia tends to do the exact

opposite. Nokia from the very start has relied on numbers rather than

names. This strategy worked very well in the past, but only because

there wasnt much competition back then. But times have changed.

Every month the market sees at least a dozen new handsets from an

equal number of manufacturers. Consumers now have more than they

can choose.

Consumers are more attracted by names because they can thus

easily relate to the features of the phone. This is evident from the

success of the MotoRazr, MotoSlvr, MotoRizr and MotoKrzr. These

phones are not packed with heavy multimedia features like the N-

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Series; still they are selling like hot cakes. Just by reading the name of

the handset, one gets a broad idea what the phone looks like or

what its features are.

Nokia advertises more than Motorola. Still its market share isdropping. Motorola does not need to spend much money for the

promotion of its products and it doesnt have to worry about the

marketing of these phones; it just simplifies its job by naming its

products right. Take the example of Apple. It did not have to do much

to promote its iPhone.

RECOMMENDATIONS:

It is high time that Nokia starts applying some sense to its

marketing strategies. It doesnt have to do anything great, other than

just naming its phones. A few months ago, a highly placed Nokia

official told Reuters that his company would soon go the Motorola way

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and start using names for its new phones. It is in Nokias best interest

that it takes to this path as early as possible, otherwise the once

market leader might see its market share plummeting to even lower

depths

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CONCLUSION

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Nokia STP Strategy

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