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Nokia Project
Nokia Project
Nokia Corporation (OMX: NOK1V, NYSE: NOK, FWB: NOA3) is an international communications company, focused on the key growth areas of wire line and wireless telecommunications. Nokia is currently the world's largest manufacturer of mobile telephones, with a global device market share of approximately 38% in Q2 of 2007. Nokia produces mobile phones for every major market segment and protocol, including GSM, CDMA, and W-CDMA (UMTS). The corporation also produces telecommunications network equipment for applications such as mobile and fixed-line voice telephony, ISDN, broadband access, voice over IP, and wireless LAN. Nokia's headquarters are located in Espoo, a neighbouring city of Finland's capital Helsinki. It has R&D, manufacturing, and sales representation sites in many continents throughout the world. Nokia Research Center, the corporation's industrial research laboratories, has sites in Helsinki; Tampere; Toijala; Tokyo; Beijing; Budapest; Bochum; Palo Alto, California and Cambridge, Massachusetts. Major production factories are located at Salo, Finland; Beijing, China; Dongguan, China; Chennai, India; Komrom, Hungary and the Ruhr region at Germany. In March 2007, Nokia signed a memorandum with Cluj-Napoca City Council, Romania to open a new plant near the city in Jucu commune. Nokia's Design Departure has stayed at Salo. Nokia has played a pioneering role in the growth of cellular technology in India, starting with the first-ever cellular call a decade ago, made on a Nokia mobile phone over a Nokia-deployed network.
Nokia started its India operations in 1995, and presently operates out of offices in New Delhi, Mumbai, Kolkata, Bangalore, Hyderabad and Ahmedabad. The Indian operations comprises of the companys handsets and network infrastructure businesses, R&D facilities in Bangalore, Hyderabad and Mumbai and manufacturing plant in Chennai. The handset business is supported by a team of professionals across 3 business groups namely Mobile Phones, Multimedia and Enterprise solutions. The company has grown manifold over the years with its manpower strength increasing from 450 people in the year 2004 to close to 6000 people currently. Nokia is having 35 percent market share and is almost twice as big as No.2 Motorola with 17.8 percent global market share. Nokia's highest ever market share was in 2005 when it achieved 35.8 percent for the year. Its highest market share in a single quarter was 36.9 percent in the fifth quarter of 2001. According to research agency ORG Gfk, Nokia's market share, as of February 2006, is a staggering 78.8 per cent. Relatively, Samsung's is 6.4 percent, Motorola 4.6 per cent, Sony Ericsson is at 5.1 percent and LG's share is 2.5 per cent.
2004 - Saral Mobile Sandesh, Hindi SMS on a wide range of Nokia phones
DISTRIBUTION NETWORK
FACTORY RETAILER CUSTOMER
COMPETITORS
Its competitors include LG, Motorola, Sony Ericsson and Samsung all of which are heading towards to become the world class manufacturers.
ADVERTISEMENT
Advertising media used by Nokia are all sorts of Electronic and Mass Media such as Television, Radio, Hoardings, Internet and Newspapers
SEGMENTS
Knowing the market demand of customers for different types of value added services, the mobile phones developed by Nokia can be classified into different sections such as i) Games ii) Media & Music Developers iii) Enterprise Developers : : : For Teenagers For Common Customers For Corporate
Nokia and Siemens have agreed to combine the bulk of their telecom equipment businesses to create one of the biggest players in the industry, sending shares in both firms higher.
PRODUCT STRATEGY
Nokia provides its customers with a wide variety of products. As per the income band, a series of phones have been produced to meet the customer demand. Here are some examples of various products in different product levels offered by Nokia. Companies Basic Product: Nokia 1100- This is a simple phone having core benefits as they will as certain added benefits such as a calculator, alarm, games, etc. Companies Expected Product: Nokia 6610- This product has certain
features which the consumer expects to be present in the handset. It has a colour display, a radio, some value added games, and many more such features. Companies Augmented Product: N Series- This series has been lately introduced and has some extraordinary functions but for a cost which is its price. These phones can adapt to various devices, further some of these phones are Wi-Fi enabled. Companies Potential Product: Nokia provides its users with even the option of customization. Though these phones are not officially launched but they are sold under the same brand Nokia. Examples: Voice operated phones, Nokia Sirocco Gold phones, etc.
PRICING STRATEGY
Nokia uses a pricing strategy that best suits the product. Keeping the product in mind the company may go for mass distribution (Penetration) or else may just tap a selected group (Skimming). Market Skimming- N-95: As in case of this phone Nokia deliberately focuses on only a selected rich group of consumers. The price is kept high as their target is only to sell a limited number of phones at a higher margin. Market Penetration- Nokia 1100: The price of this phone is kept nominal. The objective that Nokia wants to achieve through this phone is high market penetration. The desired profits are attained by dealing in volumes.
STRENGTHS:
Nokia has largest network of distribution and selling as compared to other mobile phone company in the world. It is backed with the high quality and professional team in the HRD Dept. The financial aspect is very strong in case of Nokia as it has many more profitable business. The product being user friendly and have all the accessories one want that is why is in great demand making it No-1 selling mobile phones in the world. Wide range of products for all class. The re-sell value of Nokia phones are high compared to other companys product.
WEAKNESS:
Nokia has many strengths and some weakness. Some of the weakness includes the price of the product offered by the company. Some of the products are not user friendly. Not concern about the lower class f the society people. Not targeting promotion toward them. The price of the product is the main issue. The service centers in India are very few and scare. So after sales service is not good.
OPPORTUNITY:
Nokia has ample of opportunity to expand its business. With the wide range in products, features and different price range for different people, it has an advantage over the competitors around. With the opportunity like Telecom penetration in India being at the peak time, Nokia has an opportunity to increase its sales as well as the market share. As the standard of living in India has increased the purchasing power of the people as increased as well, so Nokia has to target right customer at right time to gain the most out of the situation.
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b) SALES PROMOTION
Nokia does not stress much on Sales Promotion. This is because today the cell phone market is moving really very fast with new models coming up every third month, and even the consumers are ready to change at such a short period.
d) DIRECT MARKETING
Nokia does not perform Direct Sales activities on its official their website www.nokia.com. However, they do have contractual tie ups with other e-commerce their websites like www.ebay.com, www.amazon.com etc. Nokia does use DEMO style of Direct Marketing. They set up kiosks extensively at various locations such as malls; business parks etc. and had its latest product N 95 for demo. Nokia does not use Direct Mail or Telemarketing styles of Direct Marketing.
Resources to lead a balanced life: They nurture a flexible culture that embraces the uniqueness of everyone's life. Their Resources support the mobile way of working and the opportunity to arrange their day in the way it suits their career and personal demands. Their success depends on the talent and commitment of all of their employees. They strive to create an inclusive workplace that welcomes men and women of different cultural or ethnic backgrounds, skills and abilities, lifestyles, generations and perspectives. They provide excellent opportunities for career development, and are strongly committed to the highest standards of ethical conduct towards everyone who works with us. This has helped us to build the diverse and robust community that is Nokia today.
A flat, networked organization, as they speed and introduce flexibility in decision-making, characterize the Nokia Way. Equal opportunities and openness towards people and new ideas are also key elements they want to accomplish. Nokia is transparent with the people they serve and their suppliers. They embrace innovative ways of creating and introducing products and solutions to the market. As the company has grown so have the dimensions of their work force. At the end of 2009.Nokias total headcount was approximately 55,000 employees from 115 nationalities. Within their workplace profile, the proportion of women has grown to 41 percent of all employees, with 13.8 percent holding senior management positions. Moreover, half of the senior managers at Nokia are non-Finnish. They are operating in more markets than ever before, which has impacted the cultural fabric of their workforce and ways of working. With a global reach, their actions have the potential to greatly impact economies throughout the world and they try to ensure that work methods correlate into ethical business practices. The strong message they want to send across every level and geographical area of their organization is: They take their responsibilities seriously, and they support each other in achieving their ethical goals through their Code of Conduct. They believe that diversity and inclusion in the workplace brings competitive advantage. Diverse teams are more creative and find better solutions. Employees from diverse cultures and backgrounds bring insights into their customer base around the world, adding value to their business. Nokia is committed to equal opportunities and does not condone discrimination of any kind. This commitment is embedded in their Code of Conduct.
environment that encourages people to be connected to social networks; flexibility, sharing of best practices and spawning of new ideas with both internal and external customers. One of the focus areas of the center is to increase the S60 invention flow through intense training and focus. There have been other key initiatives which have contributed significantly to the overall development of products and services. An example is S60 Their services and video programs have qualified to the semifinals in the Product Excellence Category of the Nokia Quality Award 2008.
REWARDS
The total compensation of employees aims to not only maintain a healthy working environment, but to also fulfill Nokias goal to fulfill employees potential. Nokia rewards its employees for good performance, competence development, and company success rewarding higher performance and contribution with higher rewards. Every employee receives an annual base salary according
to his or her position in the firm. Together with the annual base salary come bonuses such as the Nokia Connecting People Bonus programme. There are also various short-term incentives both individual, team and project/program incentives. Together with annual base salary, bonuses and short-term incentives, Nokia also includes overtime pay and call-out pay as a payment system. There is also the possibility for Nokia employees to buy stocks or performance shares. To ensure a healthy work environment Nokia also gives its employee health and pension benefits. Professional and Personal Growth The employees of Nokia are engaged to fulfill their potential. Nokia tries to achieve this by encouraging employees to develop their own competencies and to stay up-to-date with technology to allow maximum performance.
On August 13, 2007, Nokia issued a warning over its BL-5C batteries across the world, stating that these batteries may get overheated while charging. It said that about hundred such incidents of overheating had been reported globally but there are no reports of the batteries being associated with any serious injuries or damage to property. A product defect related to BL-5C batteries used in many Nokia mobile phones has put Nokia in a crisis management mode. The company is trying to prevent any consumer confusion arising out of its product advisory with respect to the batteries. It has offered to replace all the affected batteries that it contends is limited to the 46 million BL-5C batteries manufactured by Matsushita between December 2005 and November 2006.