Brand Tracker: Stage 3Product and Brand Management
Nokia: Expressive, Human, Storied, Emotional, Consistent
Long-term solid growth and dominance are determined by myriad factors of markets, marketing,product development, partnerships and alliances and, not-least-of-all, vision. In sectors that are drivenlargely by technology and research, brands pla
y a vital role in translating a company’s technical
competencies into market success. Effective management of brands is therefore an increasinglyimportant element of business strategy and determinant of the valuation accorded to a business byinvestors.Nokia has been
steadily working on its corporate brand name
and the management of consumerperceptions over the last few years. Its efforts have paid off. Nokia has succeeded in lending personalityto its products, without even giving those names. It has not created any sub-brands but hasconcentrated on the corporate brand. Only numeric descriptors are used for the products, which do noteven appear on the products. Such is the
strength of the corporate brand.
“Valuation is neither the science that some of its pr
oponents do not make it out to be nor the objectivesearch for true value that idealists would like it to become. The models that we use in valuation may be
quantitative, but there is a great reliance on subjective inputs and judgments. “Thus the final val
ue thatis obtained from these models is colored by the bias that we bring into the process.
Nokia brand value has always been in the
World Top10 position
since early 2000
s, which is vouched bythe valuation results by Brandz and Interbrand. The
Book to Market Model
valuation of Nokia
65274 million Euros
. The model helps us to understand the
strength of the company’s
Price Premia Model
brand premium of Nokia which is 45.32%
. Thus, Nokia has the ability tocharge a premium of about 45% for the same product vis-à-vis unbranded or equivalents which showsthat its marketing and branding strategy has reaped its fruits.The
Brand Value Added Model
gives a valuation of
Brand Nokia which is 27112 million Euros.
Themodel provides an accurate assessment of the value of the brand in use. This information is useful formaking investment decisions related to brand renewal and positioning. A strong correlation existsbetween the brand value and the innovation factor, i.e. their innovative efforts were correctlycommunicated and have led to successful creation of Brand.What makes the difference between the most successful and less successful brands? It certainly is notwhat product features are offered. How, then, do consumers choose? The answer seems to be what thebrand names mean to them.
Brand value is very much like an onion. It has layers and a core.The core is the user who will stick with you until the very end.