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Table of Content
Serial # Page #
1. 2. 3. 4.
Introduction NOKIA Logo (Connecting the People) Executive Summary History
1 2 3 4 5 6 6 7 7 8 9 10 11 11 13 13 13
1865-1960 1960-1980 1980-2001 2001-Present
5. 6. 7. 8. 9. 10.
Mission & Vision Strategies Organization Revenue by four business group NOKIA’s Performance over the year Situation Analysis
Environment Analysis Nokia environmental strategy Main Issues in focus
We launch a new Product (N-96) About NOKIA N-96
15 16 17 17 18 19 19 20 21
Design & Ergonomics Screen Controls & Keyboard Connectivity Battery Memory Multimedia
Serial # Page #
13. Macro Environment
21 21 22 22 22 22 23 23
Political Factor Economical Factor Technology Factor Environmental Factor 14.SWOT Analysis Strength Weakness
Opportunities Threats 15.Segmentation 16.NOKIA N-96 Consumer Segments 17.Our Consumer Segment Heavy Users 18.Segmentation Strategy Geographic Demographic 19.NOKIA N-96 Strategies 20.Marketing Strategies 21.Marketing Objectives 22.Product Life Cycle 23.The Product Life Cycle Of NOKIA 24.NOKIA N-96 Life Cycle Service Life Cycle 25.Positioning Strategies 26.NOKIA N-96 Design 27.Promotion Strategies Push Pull 32 33 33 27 28 29 29 30 31 27 25 26 26
Serial # Page #
28. Our Strategies 29. Pricing
34 35 35 35 35 35 36
Pricing Strategy Matrix Premium Pricing Penetration Pricing
Price Skimming (Our Price Strategy) 36
30.Distribution Strategy Distributors Outlets Supply Chain 31.Product Mix
32. Nokia customer care centre inaugurated in Pakistan
37 37 39 40
43 44 44 45
33.Nokia Market Share 34.BCG Matrix 35.Sources 36.Conclusion
d Talal Butt
Khan Ms. Humaira
For this project, we have chosen the NOKIA N-96. Nokia is a mobile telecommunications company, and offers far more than just mobile phones for everyday use. They offer networking solutions for businesses that help businesses stay connected and communicate with each other at all times and places. For them, Nokia also offers special mobile phones with exquisite and unique functions and options. In this project, we will first talk about what Nokia is and what they do. We will talk about their history, and how they came to where they are today. Vision, goals, and their strategy are discussed, as well as their wide variety of products and services offered for the regular consumer, businesses, and service providers. Nokia’s success benefits were some advantages they had in the market. These also include the advance technology and features, as well as services they offer to their consumers. However, like most other companies, Nokia has some weaknesses, but we consider these to be very minimal, and almost only come down to their competition. Lastly, we will talk about their informational business model. This model includes Nokia’s work organization, control system, industrial relations, human resources, business strategy, and finally, enterprise organization. We will look closely at and discuss all of these elements, and why we think that they are relevant to Nokia. Mobile phone market in Pakistan is going through major changes. Key players are losing market share while new and young companies, mostly from Asian countries, are coming to the market. At the same time the market is slowly expanding when people are buying more phones than ever. The whole process of buying mobile phones has changed in the last few years. People no longer carry the same phone year in year out; change is the fast technological development of the phones. But also consumer’s but they change their phone every year, some even twice a year. One reason for these attitudes towards mobile phones has changed. Mobile phones are no longer seen as expensive, hi-tech products, but they have become accessories
like jewellery or a piece of clothing. “Nokia is still the largest mobile phone company in the world, but its long-term dominance is now challenged more than ever and emerging markets.” This report gives an overview on NOKIA N96. It is the most expensive and powerful model in the whole Nokia portfolio. It can’t stand up to the level of popularity that N95 once enjoyed, though, but still serves a formidable expansion of the model range upwards. The device looks interesting in terms of the availability of DVB-H digital TV and strikingly high specifications. It comes with an astonishing 16 Gb of onboard and 8 Gb of replaceable flash storage, and has a pronounced focus on the video aspect. Even the form factor and bundled kick-stand suggest this model being a TV-phone, let alone the numerous hardware specifications specially fitted to this cause. The STMicroelectronics chipset offers its video-relevant powers at a cost, though: it doesn’t do as well in the rest of performance tests. We can’t say N96 lags in the menus, yet a certain delay can be felt, it’s a bit slower than N78 and N85. A high audio quality, a large screen and a spacious storage make N96 a perfect multimedia player and a possible replacement for a number of Nokia N96 users. The price is going to be comparable to the starting price of N95 8GB, namely around 550 Euros. N95 will slowly phase out of the market, making way for the new flagship (it’s currently out of production). That’s how the company divided the niche originally occupied by N95 8GB in two: one model sticks to the same price bar, the other (N85) sells at a lower price and plays a big part on the mass market, nominally featuring slightly lower specifications.
The roots of Nokia go back to the year 1865 with the establishment of a forest industry enterprise in South-Western Finland by mining engineer Fredrik Idestam. Elsewhere, the year 1898 witnessed the foundation of Finnish Rubber Works Ltd, and in 1912 Finnish Cable Works began operations. Gradually, the
ownership of these two companies and Nokia began to shift into hands of just a few owners. Finally in 1967 the three companies were merged to form Nokia Corporation. At the beginning of the 1980s, Nokia strengthened its position in the telecommunications and consumer electronics markets through the acquisitions of Mobira, Salora, Televa and Luxor of Sweden. In 1987, Nokia acquired the consumer electronics operations and part of the component business of the German Standard Elektrik Lorenz, as well as the French consumer electronics company Oceanic. In 1987, Nokia also purchased the Swiss cable machinery company Maillefer. In the late 1980s, Nokia became the largest Scandinavian information technology company through the acquisition of Ericsson's data systems division. In 1989, Nokia conducted a significant expansion of its cable industry into Continental Europe by acquiring the Dutch cable company NKF. Since the beginning of the 1990's, Nokia has concentrated on its core business, telecommunications, by divesting its information technology.
From its inception, Nokia was in the communications business as a manufacturer of paper - the original communications medium. Then came technology with the founding of the Finnish Rubber Works at the turn of the 20thcentury. Rubbers, and associated chemicals, were leading edge technologies at the time. Another major technological change was the expansion of electricity into homes and factories which led to the establishment of the Finnish Cable Works in 1912 and, quite naturally, to the manufacture of cables for the
telegraph industry and to support that new-fangled device - the telephone! After operating for 50 years, an Electronics Department was set up at the Cable Works in 1960 and this paved the way for a new era in telecommunications. Nokia Corporation was formed in 1967 by the merger of Nokia Company - the original paper-making business - with the Finnish Rubber Works and Finnish Cable Works.
Design has always been important at Nokia and today's mobile phones are regarded as a benchmark for others to follow. Take, for example,multi-colored, clip-on fascias which turned mobiles into a fashion item overnight. But Nokia has always thought like that and back in the fashion-conscious 1960's when one branch of the corporation was a major rubber manufacturer, it hit on the idea of making brightly-colored rubber boots at a time when boots followed the Henry Ford principle - you could have any color, so long as it was black! The '60s, however, were more important as the start of Nokia's entry into the Telecommunications market. A radio telephone was developed in 1963 followed, in 1965, by data modems - long before such items were even heard of by the general public. In the 1980's, everyone looked to micro computers as the next 'big thing' and Nokia was no exception as a major producer of computers monitors and TV sets. In those days, the prospect of High Definition TV, satellite connections and teletext services fuelled the imagination of the fashion conscious homeowner.
In the background, however, changes were afoot. The world's first international cellular mobile telephone network, NMT, was introduced in Scandinavia in 1981 and Nokia made the first car phones for it. True enough, there were 'transportable' mobile phones at the start of the '80's but they were heavy and huge. Nokia produced the original hand portable in '87 and phones have continued to shrink in inverse proportion to the growth of the market ever since.
It took a technological breakthrough and changes in the political climate to create the wire-free world people are increasingly demanding today. The technology was the digital standard, GSM, which could carry data in addition to high quality voice. In 1987, the political goal was set to adopt GSM throughout Europe on July 1st 1991. Finland met the deadline, thanks to Nokia and the operators. Politics and technology have continued to shape the industry. The '80s and '90s saw widespread deregulation, which stimulated competition and customer expectations. Nokia changed too and in 1992 Jorma Ollila, then President of Nokia Mobile Phones, was appointed to head the entire Nokia Group. The corporation divested the non-core operations and focused on telecommunications in the Digital Age. Few people in the early '90s would have thought that 'going digital' would change things so much.
2.4 2000 to Present
Nokia is harnessing its experience in mobility and networks to generate a startling vision of the future. Meeting rooms, offices and homes will be 'smart' enough to recognize their human visitors and give them whatever they want by listening to their requests. Nokia welcomes change and improvement and can embrace new ideas at great speed. Such characteristics will never change but, as to the rest, the story has only just begun!
3. Mission and Vision
“In a world where everyone can be connected, we take very human approach to technology” Connecting is about helping people to feel close to what matters. Wherever, whenever, Nokia believes in communicating, sharing, and in the awesome potential in connecting the 2 billion who do with the 4 billion who don’t. If we focus on people, and use technology to help people feel close to what matters, then growth will follow. In a world where everyone can be connected, Nokia takes a very human approach to technology.
‘NOKIA customers continue to our First Priority” Nokia’s future success depends on delivering great experiences to our customers by creating products and solutions that work seamlessly and are appealing.
Customer remains the top priority o Nokia’s priority is to be the most preferred partner to operators, retailers and enterprise
o The brand goal for Nokia is to become the most loved brand
Nokia’ s business strategy focus on 5 areas:
o Create winning devices o Embrace consumer internet service
o Deliver enterprise solution o Build scale in networks
o Expand professional services
“Wherever, whenever, we believer in communicating, sharing and in the awesome potential of connecting the 2 billion who do, with the 4 billon who don’t” At Nokia, customers remain our top priority. Customer focus and consumer understanding must always drive our day-to-day business behavior. Nokia’s priority is to be the most preferred partner to operators, retailers and enterprises. Nokia will continue to be a growth company, and we will expand to new markets and businesses. World leading productivity is critical for our future success. Our brand goal is for Nokia to become the brand most loved by our customers. In line with these priorities, Nokia’s business portfolio strategy focuses on five areas, with each having long-term objectives: Create winning devices Embrace consumer Internet service
Deliver enterprise solutions Build scale in networks Expand professional services There are three strategic assets that Nokia will invest in and prioritize: Brand and design Customer engagement and fulfillment
Technology and architecture
Nokia comprises four business groups: Mobile Phones, Multimedia, Enterprise Solutions and Networks. Mobile Phones connect people by providing expanding mobile voice and data capabilities across a wide range of mobile devices. We seek to put consumers first in our product-creation process and primarily target high-volume category sales. Multimedia brings connected mobile multimedia experiences to consumers in the form of advanced mobile devices and applications. Nokia products give people the ability to create access and consume multimedia, as well as share their experiences with others through a range of radio technologies.
6. Revenue by four business groups
Enterprise Solutions offers businesses and institutions a broad range of products and solutions, including enterprisegrade mobile devices, underlying security infrastructure, software and services. We also collaborate with other companies to provide fixed IP network security, mobilize corporate email, and extend corporate telephone systems to Nokia’s mobile devices. Networks provide network infrastructure, communications and networks service platforms, as well as professional services to operators and service providers. Networks focus on the GSM family of radio technologies and aims at leadership in three areas: GSM, EDGE and 3G/WCDMA networks; core networks with increasing IP and multi-access capabilities; and services. Our business groups are supported by various horizontal entities. Customer and Market Operations is responsible for marketing, sales, sourcing, manufacturing and logistics for mobile devices from Mobile Phones, Multimedia and Enterprise Solutions. Technology Platforms is responsible for the competitiveness of Nokia’s technology assets. The group supports Nokia’s overall technology management and development by delivering leading technologies and well-defined platforms both to Nokia’s business groups and to external customers. Nokia-wide horizontal units drive and manage specific Nokia assets. They include brand and design, developer support, research and venturing, and business infrastructure. Corporate Functions support Nokia's businesses with company-wide strategies and services.
7. NOKIA’s performance over a year
Once NOKIA’s closest rival, Samsung has been losing its market share since October’05 when it had an overall market share (in terms of units) of 1.2, to 7.8% I March’06. The drop is much steeper in value terms where its market share has fallen to 9.8% in March’06 from 21.2% in October’05. Sony Ericsson’s market share (in terms of units) has improved marginally from 7.1% October’05 to 7.6% in March’06, although in value terms it has increased from 8.7% in October’05 t 10.2% in March’06. The color segment, where Samsung used to rue once, has seen its market share falling both in terms of units and value. The market share (units) has dropped to 16.3% in March’06 from 34.9% in October’05 ad in terms of value, has dropped to 14% in March’06 from 32.5% in October’05. Sony Ericsson’s market share in the color segment is marginally more than the Samsung’s at 16.7% (unit) and 15.9% (value) in March’06 and is an improvement over its October’4 figures of 15.6% (units) and 14% (value). The total handset units sold in the top 10 towns in the month of March is 5, 06,493 units, from 4, 68,621 units inOctober’05. The total value of the handset s sold is Rs.245.6 crore as of March’06 from Rs.236.1 crore in October’06. The number of color phones jumped to 2, 11,779 units in March’06 from 1, 66,210 units in October’05. The value of the color phone market increased to Rs.15, 208 lakhs in March’06 from Rs13, 023 lakhs in October’05.
8. Situation Analysis
8.1 Social Analysis:
For electronics companies, take back and recycling add value. They support brand value and customer loyalty and inspire customer insights. They also demonstrate environmental responsibility. Manufacturers like Nokia are generally in a disadvantaged position for take back, due to the costs involved and the lack of many consumer touch points. Stakeholders in the take back and recycling process include governments, retailers, customers, consumers and products. Other stakeholders include recyclers, refurbishes and NGOs. The responsibility for bringing used devices back for recycling lies ultimately with the consumers. The challenge for Nokia in take back programs is how to make mobile phone users do their share and return the used products for recycling. By bringing the used mobile to a take back point the customers make sure that used phones will not end up in landfills in their own or other countries. Instead, the recyclable raw materials can be used again in new products. In a typical consumer scenario, such as when a mobile phone user is renewing a service contract with a mobile phone provider, in the US and Europe an estimated 60% to 70% retain their old devices because of their perceived value. Successful take back is also driven to a great extent by economics and market factors, which in turn place large quantities of used devices in refurbishment scenarios. This causes concern for the quality and safety of products repaired or altered outside of the intense controls fundamental to a Nokia production process. The optimum outcome from Nokia's environmental efforts in the product lifecycle is to minimize adverse effects to the environment, to our customers and consumers and to our business. As the Nokia lifecycle philosophy applies to take back, the power to manage take back and direct the disposal of a mobile device at the end of its life is largely controlled by: customers, consumers, retailers, and by governments. There are various take back channels and Nokia has limited control over the actual flows. Despite the challenges posed by the logistics of recovery, Nokia has for years had programs in place and
continues to move ahead with new programs to recover mobile devices at the end of their useful lives. These include take back: Via our authorized service centers and flagship stores Through our web site, only limited in certain countries
As part of eBay Rethink, only in the US
Nokia is also piloting different forms of cooperation with operators and distributors, such as installing collection bins at point of sales and mail service return, as well as in various industry level schemes and in public awareness building campaigns.
8.2 Environment Analysis:
NOKIA aims to be a leading company in environmental performance. By working to reduce the adverse environmental impacts of our products and activities, our customers can use our products with confidence and good conscience. Combining environmental issues into daily work makes business sense for Nokia. By working to reduce the adverse environmental impacts of our products and activities, we minimize risk, ensure legal compliance, gain stakeholder acceptance, and help advance the long-term success of our company. Our customers can also use our products with confidence and good conscience. Through our environmental strategy, we work to ensure that our products are safe for personal use and that they do not overly tax the environment. Nokia is a trusted brand and we take that trust seriously.
8.3 Nokia environmental strategy:
Nokia is a leading company in environmental performance. Nokia’s environmental strategy is based on lifecycle thinking, beginning with the extraction of raw materials and ending with recycling and disposal of as well as the
reintroduction of recovered materials into the economic system. Our goal is to develop advanced mobile technology, products and services, which have no undue environmental impact, consume energy efficiently, and that can be appropriately reused, recycled or disposed of. Nokia's environmental strategy is integrated with our business strategy. Our four business groups have set environmental targets for their own activities to implement our corporate level environmental strategy.
8.4 Main Issues in Focus:
Three important global issues remain at the forefront of much of Nokia’s environmental work. They are substance management, arrangements for the take back and recycling of end-of-life products, and energy efficiency. * Substance management During the planning and design of our products, one of our main focus areas is their material content. We are continuously analyzing the materials used in our products with the aim of reducing the amount of potentially hazardous or harmful content. * Take back and recycling In take back and recycling, we have for years had in place our own arrangements for mobile devices and accessories, as well as for mobile network and IP network security equipment. All Nokia products are also covered by the European Union's new Waste Electrical and Electronic Equipment (WEEE) directive. Nokia is assuming product responsibility as defined by the directive as it is implemented throughout Europe. In addition, take back of Nokia mobile devices will also continue at authorized Nokia Service Centers and Flagship stores in all markets where we do business. * Energy efficiency In our product creation as well as our own operational activities,
an important area for continuous performance improvement is in energy efficiency. We have consistently been able to reduce the energy intensity of our products.
9. We launch a new product
10. About Nokia N-96
NOKIA N96 is the most expensive and powerful model in the whole Nokia portfolio. It can’t stand up to the level of
popularity that N95 once enjoyed, though, but still serves a formidable expansion of the model range upwards. The device looks interesting in terms of the availability of DVB-H digital TV and strikingly high specifications. It comes with an astonishing 16 Gb of onboard and 8 Gb of replaceable flash storage, and has a pronounced focus on the video aspect. Even the form factor and bundled kick-stand suggest this model being a TV-phone, let alone the numerous hardware specifications specially fitted to this cause. The STMicroelectronics chipset offers its video-relevant powers at a cost, though: it doesn’t do as well in the rest of performance tests. We can’t say N96 lags in the menus, yet a certain delay can be felt, it’s a bit slower than N78 and N85. A high audio quality, a large screen and a spacious storage make N96 a perfect multimedia player and a possible replacement for a number of Nokia N96 users. The price is going to be comparable to the starting price of N95 8GB, namely around 550 Euros. N95 will slowly phase out of the market, making way for the new flagship (it’s currently out of production). That’s how the company divided the niche originally occupied by N95 8GB in two: one model sticks to the same price bar, the other (N85) sells at a lower price and plays a big part on the mass market, nominally featuring slightly lower specifications. Nokia N96 is the company’s video flagship. That means that all the optimizations introduced into the model support solely that cause, the accent on mobile TV and video. N85 is more versatile and thus is going to win more popularity, but it can’t beat N96 in terms of video recording and playback, as well as in the musical department. Next comes a DVB-H digital TV module, so we get the best multimedia handset on the whole market which is going to stay so for quite a while on.
Diffe ntVie OF NOKIAN_96 re ws
Hardwareplatformof NOKAI N-96
11 Design and
The company has been following a very monotonous design template as far as their multimedia smart phones are concerned, yet it can’t be called an unsuccessful one. The closest thing in appearance to the N96 is a N81, while N85 looks more elegant due to the rounded angles, a different plastic of a better quality. The overall size of the handset is rather modest, only making 103x55x18 mm, but the handset doesn’t give the hand a comfortable feel because of the width and the thickness, N85 openly wins the contest. On the other hand, it isn’t even nearly as bulky as Samsung i8510, the Korean flagship handset is really huge in an open state, the size being its chief weakest point.
The screen of Nokia N96 is identical to the screen N96 8GB, featuring the largest diagonal among all Nokia – 2.8’’, TFT, some of the best screen quality around. Compare this one to the screen of Nokia N85, powered by the AM-OLED technology. N85 is notable for much more vivid colors, yet the palette is more natural with N96, also the latter seems to display a better
behavior in direct sunlight, bringing about less annoying glare. We can’t really say that the screen of N96 is worse than the N85 screen; it’s just in a way different.
11.2Controls and Keyboard
The block of controls is remarkable for the use of dedicated media buttons; unlike N85 those are operable outside the player mode. You can use them to switch tracks or start/stop playback at any moment in any menu, which is immensely handy. The buttons aren’t of the touch kind; they are mechanical and very responsive, bringing no trouble at all.
A Navi Wheel is traditionally available, remaining active in all menus and lists. The sensitive area of the wheel is limited to a thin limbo running along the perimeter of the navigation element. Moving your finger clockwise or counter-clockwise allows for rapid playlist browsing in a corresponding direction. The light indicator sits right in the center of the Navi Wheel and can be easily turned off. It doesn’t carry out any special functions like a message or a call reminder, a feature still available on some older Nokia models.
The availability of Wi-Fi also means the availability of the WLAN Wizard application, which essentially is a simple program intended to help the user to arrange network connections in a semi-automatic mode. There are but a few options, once a network is detected the user is prompted to submit a number of settings. Network filtering is available, the security standards include WEP, WPA and WPA2. The scanning period during which WLAN networks are searched and detected is also adjustable in the options. The USB version is 2.0, the Mass Storage mode is fully supported, the user is free to choose from Mass Storage, PC Suite, Image Print or Media Player on establishing a phone-to-PC connection. Both the memory card and onboard memory storage are accessible from the PC. During Mass Storage sessions, the phone doesn't go offline, you can still use its potential to the full. The Home Media application allows for interaction between the phone and various devices supporting the UnPNP technology. It has seen some serious improvements from earlier versions used in N95 and N93. If the only option available in the initial version was the one allowing to share content stored on the device, now the smartphone can play content opened from remote source. We tested this functionality both on a phone-to-PC bundle and between two different phones as well (N82-to-N95), and found no problems at all. After adjusting all the necessary settings in the Gallery, the 'broadcast over home network' options became available, letting browse and play the content stored on remote devices.
Nokia N96 is equipped with a relatively old battery, the same with the original Nokia N95. It’s a BL-5F unit sporting a 950 mAh power output capacity. The choice is easily explainable: no higher capacity batteries were available when the development of N96 started, save for a few samples too big to fit into the battery bay. The existing battery is on a comparable size scale with the newer BL-5K battery (1200 mAh, used by Nokia N85), but is a bit smaller. Neither BL-5K nor BL-6F can fit into the battery bay of N96. Nevertheless, the smart phone can keep running for a long time regardless of the relatively low battery capacity, it can run longer than N95, and makes world records in media recording or playback modes. Not only Feature Pack 2 contributes to this, but mainly the power-saving STMicroelectronics chipset.
Once the device has booted, the remaining amount of free memory available to the user is 90 Mb; the total RAM size equals to 128 Mb, which is quite an adequate score for a modern smartphone. Heap Size and Jar Size for Java applications are unlimited.
The onboard storage is divided into two unequal parts: the disk labeled C: is 128 Mb large, of which about 70 are free and the rest occupied by system files, - this is the place where all the contact and PIM records are stored. The disk labeled D: is where the various multimedia files are kept. You can safely format it without causing any damage to the operating system, just take it for a dumb file container. The D: disk is 16 Gb large. With such a huge storage massive onboard, it would be interesting to look at the data transfer speeds:
The player interface looks quite standard, exposing almost no difference from Nokia N85 or N78; the same interface is used by all latest devices basing off S60v3 Feature Pack 3. The extra controls come in handy, both the buttons around the navigation button and the extra buttons on the upper half of the slider are used for rewinding, playing and pausing. Here we have a huge advantage over Samsung i8510 which isn't equipped with any extra player buttons, a flaw which is hardly compensated by the unmatched audio quality provided by this model. The audio quality of N96 has been discussed before, proven to be one of the best among the currently available solution, and absolutely unmatched in the whole range of S60 Nokia phones. The sound is better than with N78 or N79, the handset has a more realistic sounding even in comparison with N85, though the difference is too little to matter for the majority. This combined with a convenient system of controls (two sets of dedicated media buttons, an optimal arrangement of slots) makes N96 one of the best multimedia devices available from today’s market. Nokia N85 only wins in the battery charge contest in playback mode. Samsung i8510 is the ultimate music smartphone, it’s audio quality is unchallengeable by any other model so far.
12. Macro Environment
Major external and uncontrollable factors that influence an organization's decision making, and affect its performance and strategies. These factors include the economic, demographics, legal, political, and social conditions, technological changes, and natural forces.
12.1 POLITICAL FACTOR:
Nokia reported spending $5.4 million on lobbying in the U.S. in 2007 and $2 million on lobbying in 2008.
12.2 ECONOMIC FACTOR:
Nokia N-96 had to change its functions from single market to global market due to collapse of Russian Federation.
12.3 TECHNOLOGICAL FACTOR:
Changes in technology. NOKIA N-96 brings new technology in market for consumers.
12.4 ENVIRONMENTAL FACTOR:
Environmental impact of supplier‘s NOKIA N-96 and processes. Environmentally ethical considerations amongst supplier’s Life cycle impact of NOKIA N-96 throughout the supply chain
13. SWOT Analysis
Nokia is at an important crossroads in its history. Having architected many of the key tenets for growth during the formative years of the mobile phone industry, the market with which Nokia is so familiar may be adopting different rules, ones that it may not fully understand. The situation Nokia faces may be similar to the period in the PC industry when Dell Computer surpassed perennial leaders IBM, Hewlett-Packard and Compaq Computer. Why might this happen? Because Nokia's strengths are so well-understood by its competitors, they are well-targeted and improved upon. The wireless market's evolution has slowed, making it easier to challenge the incumbents. Also, the progress of technology has made many of Nokia's early advantages easier to overcome. Nokia's leadership position is a result of paying persistent attention to market needs and taking the right chances at the right time. Nokia was the first to acknowledge fashion as an important element in mobile phone purchases, and it is solidly behind the push for Multimedia Messaging Service, which could become the first data service beyond Short Message Service to be deemed successful. There is a significant gap between Nokia and startups, which makes it difficult to compete against Nokia. Nokia's tie to operators has kept its products solidly in consumers' view. Yet, Nokia faces some serious challenges
· NOKIA is the One of the most popular mobile communication. company in the industry
NOKIA N-96 is high product quality
Latest Technology Latest Software
Product is warrantee worldwide Fashionable product (serve new trend)
Global marketing (product) It has better quality Design is a bit mature
Its not easy to use Low voice quality N-96 is heavy set but Samsung latest sets are light Market skimming prices of this Set Difficult functions It is very slow
NOKIA N_96 with computer window New growth market of NOKIA N-96 Latest and powerful devices Well designed and stylish set
Latest Accessories Pocket Computer
Looking mainly at the competition that is taking away Nokia’s market share. Orange, Vodafone and O2 and many other operators are globally selling their own heavy and good sets Higher import charges. China Mobile made Copy of NOKIA Sets and they also made NOKIA N96.
14.1 Mobile Phone:
Mobile Phones connect people by providing expanding mobile voice and data capabilities across a wide range of mobile devices. We seek to put consumers first in our product-creation
process and primarily target high-volume category sales of mobile phones and devices based on the following global cellular technologies: GSM/EDGE, 3G/WCDMA and CDMA. In voice centric and mainstream mobile phones, we believe that design, brand, ease of use and price are our customers' most important considerations. Increasingly, our product portfolio includes new features and functionality designed to appeal to the mass market, such as mega pixel cameras, music players and advanced-quality color screens. Nokia key quality targets are: · For Nokia to be number one in customer and consumer loyalty. · For Nokia to be number one in product leadership · For Nokia to be number one in operational excellence. The quality and reliability or our products and services are among the most important factors driving customer satisfaction and loyalty. Designing good quality products begins with understanding customer requirements and creating the best user experience. The whole chain, from suppliers through to R&D, operations, sales and distribution to customers, impacts the endresult – everybody in the chain has a role to play in achieving quality. Our products and customer experiences are the results of our everyday processes. Process management means finding the simplest way of operating, in order to create customer value in a lean manner. Our process thinking covers everything we do, and processes are continuously improved based on the measures and the feedback we receive from our customers.
15. NOKIA N-96 Consumer Segments
Light Users Medium Users Heavy Users
16. Our Target Consumer is: Heavy Users
We believe consumers deserve and appreciate these quality aspects when buying a luxury product like a foosball table. We select a heavy consumer because Heavy consumers repeat very often their purchases. In so doing, they cumulate category-specific knowledge and skills. They able to purchase our product. They want to use new and latest technology. They want to explore the world. This reason we select this category. We want our consumers don’t go any where. He gains every thing from us. Heavy users use it well and obtained benefits from us. In this category users like latest products with latest features. Heavy users want something new and stylish. Heavy invest heavy investment on his personal life or product.
17.1 Nokia N-96 Markets Demographic:
The profile for Nokia N-96 customer consists of the following geographic and demographic:
Nokia N-96 immediate geographic target is rural Pakistan. The total targeted population is estimated at 100 million.
Male and female. Ages 25-50, this is the segment that makes up 80% of the Nokia mobile phone market according to the NOKIA Ltd. Professionals and College students.
18. Nokia N-96 Strategies
Market growth of N-96 predictions provides one motivation for network operators and service providers to improve the data service experience. For example, some research predicts a 270% increase in average monthly ARPS (Average revenue per subscriber) for data services from 2005 to 2020. Nokia predicts a CAGR (compound annual growth rate) of 9% for the mobile services market during the years 2004–2009 (see Figure 5.2). This growth will be due largely to growth in data services (CAGR 23%), with CAGR at 6% for voice and other calls. Data is particularly a growth driver in emerging markets and Asia. Some researchers provide more conservative figures, but all the research indicates that definite growth opportunities exist for mobile data services. The question is, who will capture the market growth and how is it enabled?
19. Marketing Strategy
Today, the true “killer” data application is still text messaging, a typical example of person-to-person communication. Other end-user services, however, have not taken off as expected in recent years. Marketing strategy of N-96 to promote this set through proper Chanel. The primary reason for this slow take-up is that most of these services do not fulfill the expectations of users. Although ring tones are one example of successful person-to-content services, progress must be made for market take-up of other mobile data services such as: Messaging (e.g., MMS and e-mail) Entertainment (e.g., graphics, logos, games) Information (e.g., directory services, news)
Internet Latest Technology
Capture rural Pakistan market Target school student Attract Customers to New technology Enhance Distribution Maximize Nokia revenues Maintain Customer’s Loyalty
21. Product Life Cycle
A large untapped potential exists among the present base of non-users: the 10% of existing customers who use services infrequently or do not use services at all, even though they have the right mobile handset. In general, these mainstream users are more loyal to their existing service provider, making them a group to reward for their loyalty. Ease-of-use is one of the key factors when increasing customer loyalty, which, in turn, will lower churn and eventually lead to a decrease in marketing expenditures. Differentiation by ease-of-use experience will also have an effect on increasing ARPU, because it speeds up the adoption of new services. The more mainstream the target users, the more they value ease-of-use and customer intimacy and seek practical uses
for new services. The fact that ease-of-use is particularly relevant to mainstream users makes it such an important consideration. Making a service successful in the mainstream market has the challenge for most existing services. Creating ease-of-use in services will help a service provider to “cross the chasm” from the early market of innovators and trendsetters to the mainstream market of average users.
The Morph concept Nokia E- series
Nokia N- Series Nokia Sym bian series
Product life cycle of Nokia
21.1 The Product Life Cycle (International)
Nokia Symbian & N- Series Nokia 30 & 40 Series
Nokia E- series
The Morph concept
21.2 Product life cycle of NOKIA N_ 96
21.3 Services Life Cycle
Creating and implementing a business strategy that focuses on ease-of-use will enable the service provider to increase service revenues. Naturally, strategies across geographical regions and operators differ and it is not possible to copy exactly from the experiences of others. Service uptake and usage differ vastly depending on the stage of the overall society and service culture, main technologies chosen, competitive market situation, maturity level of networks, and other network lifecycle variables. NOKIA N-96 service life cycle is not short because it is good quality product. People or consumers like NOKIA products.
When Nokia N-96 positions its brand in the crowded mobile phone marketplace, its message must clearly bring together the technology and human side of its offer in a powerful way. The specific message that is conveyed to consumers in every advertisement and market communication (though not necessarily in these words) is "Only Nokia Human Technology enables you to get more out of life “In many cases, this is represented by the tag line, "We call this human technology". This gives consumers a sense of trust and consideration by the company, as though to say that Nokia understand what they want in life, and how it can help. And it knows that technology is really only an enabler so that you-the customer-can enjoy a better life. Nokia thus uses a combination of aspirational, benefit-based, emotional features, and competition-driven positioning strategies. It owns the "human" dimension of mobile communications, leaving its competitors wondering what to own (or how to position themselves), having taken the best position for itself. N-96 has created a distinct position in customer mind by:
Nokia logo…..> Slogan……>
“Know our past. Create the future”
Latest Ring Tone New Messages Tunes The specific message that is conveyed to the customers in every advertisement.
Nokia N-96 Design
Nokia is a great brand because it knows that the essence of the brand needs to be reflected in everything the company does, especially those that impact the consumer. Product design is clearly critical to the success of the brand, but how does Nokia manage to inject personality into product design? The answer is that it gives a great deal of thought to how the user of its phones will experience the brand, and how it can make that experience reflect its brand character. The large display screen, for example, is the "face" of the phone. Nokia designers describe it as the "eye into the soul of the product". The shape of phones is curvy and easy to hold. The faceplates and their different colors can be changed to fit the personality, lifestyle, and mood of the user. The soft key touch pads also add to the feeling of friendliness, expressing the brand personality. Product design focuses on the consumer and his needs, and is summed up in the slogan, "human technology." Nokia now accounts for over half of the value of the Finland stock market, and has taken huge market share from its competitors. According to one brand valuation study carried out in mid-1999, it ranked 11th on the world's most valuable brand list, making it the highest-ranking non-U.S. brand. As has been pointed out, it has unseated Motorola. Nokia achieved its brilliant feat through consistent branding, backed by first-class logistics and manufacturing, all of which revolve around what consumers what.
"Push or Pull"?
Marketing theory distinguishes between two main kinds of promotional strategy - "push" and "pull".
A “push” promotional strategy makes use of a company's sales force and trade promotion activities to create consumer demand for a product. The Nokia promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers. For example Nokia promote N-96 via retailers such as Carphone Warehouse. Personal selling and trade promotions are often the most effective promotional tools for companies such as Nokia - for example offering subsidies on the handsets to encourage retailers to sell higher volumes. A "push" strategy tries to sell directly to the consumer, bypassing other distribution channels (e.g. selling insurance or holidays directly). With this type of strategy, consumer promotions and advertising are the most likely promotional tools.
A “pull” selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product. If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers.
24 NOKIA N96 Chose both
We chose both strategies because we know if we don’t use both strategies we unable to promote our new product. We want to promote our product world wide it is impossible if we don’t use both strategies . NOKIA is a large company and it have the ability to promote its product widely through both strategies.
25. Pricing Strategy
25.1 Pricing Strategy Matrix:
Nokia observes different pricing strategy for NOKIA N-96. The main aim is to gain the market at rural village of India and maintain it’s customer for Mid range phone.
25.2 Premium Pricing:
Nokia N-96 use a high price where there is uniqueness about the product or service. This approach is used where a substantial competitive advantage exists. Such high prices are charge for luxuries such as NOKIA E-series mobile phone.
25.3 Penetration Pricing:
The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased. This approach was used Nokia on Model No. 1100 and 1108, in Indian rural market.
25.4 Economy Pricing:
This is a no frills low price. The cost of marketing and manufacture are kept at a minimum. Nokia follow it for it’s mid range Mobile phone. Normally it is to attract middle income group.
25.5 Price Skimming:
Charge a high price because you have a substantial competitive advantage. However, the advantage is not sustainable. The high price tends to attract new competitors into the market, and the price inevitably falls due to increased supply.
NOKIA N-96 has become a major part of our life. On the one hand, Pakistan Mobile phone market has grown rapidly in the last few years on the back of falling phone tariffs and handset price, making it one of the fastest growing markets globally. Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like
mobile phones, device and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for Network operators and corporations. Nokia held a global market share of 34.2 percent at the end of January, according to consultants’ strategy Analysis, while Motorola had 18.3 percent, Samsung 11.1 percent, and LG and Sony Ericsson 6.6 percent each. “To illustrate Nokia’s performances, more than one third world’s phone users use a Nokia phone”. In India Nokia is the market leader, with a manufacturing facility in Chennai. The Nokia requires to have a regular check on these channels if they working efficiently and take steps to further step to improve. The Nokia only stay ahead in profits, market share etc, only if their products reach the outlets on time as well based on demand .The project began with the basic understanding of how distribution of mobile phones takes in the market by Nokia. Nokia works with the distribution of mobile phones takes in the market by Nokia. Nokia works with the distributor, re distributor stockiest (R.D.S) and finally the retailer from whom the product is sold to the consumer. Five forms of outlets sell Nokia’s products:
i. HCL infosystem ii. Bright point.
i. Nokia priority dealers ii. Multi brand outlets iii. Reliance web world
iv. Reliance web world express v. Tata true value shop.
a) HCL Infosystem: During the last ten years, the HCL-Nokia relationship has witnessed strong growth in the Indian GSM handset market resulting in a significant market share gain for Nokia, and the increased need for a distribution Network that will meet the projected market growth of 200 million subscribers by 2007. The relationship with Nokia has been a very satisfying one, and the agreement between Nokia and HCL reaffirms Nokia’s commitment to the growing Indian Market, to ensure that mobile devices are accessible to more consumers in the cities and towns across India. Mobile penetration is getting into the next phase of growth of which a major portion is expected to come from smaller towns and remote locations. There is clear pick up ion demand. The challenges ahead would be to penetrate deeper, preserve market and in order to have much greater depth, align to global policy of balanced channel mix and also to ensure that all possible channels are included, and channel partners are well served so that growth opportunities are captured. The two companies have extended their agreement for another five years. This strong relationship between these two players plays a crucial role in increasing the sales as well to hold the market leader position in the market. Both entering the distribution channels will in fact help the consumer to get the best product in the nearest location in any part of the country. Bright point: It offers the most comprehensive selection of brands and products in the wireless industry. Handset, Integrated devices, PDAs, etc. They also provide full selection of OEM and aftermarket accessories, Modems and software. It distributes
product manufactured manufacturer.
Nokia priority dealers are exclusive show rooms for buying Nokia products. These outlets are directly under the control and supervision of Nokia, which makes them solely accountable to Nokia. NPD’s are preferred outlets to buy Nokia products, as they are their genuine dealers of its products. These outlets have the complete portfolio of Nokia products existing in the market. The buying experience the consumer enjoys is the better than any other outlet in the city. Multi brand outlets are the outlets, which deal with all the company products in the market. They provide service and space to all the competitors as they sell all the products in the market. The major purpose is not to dissatisfy the consumers entering the outlet and provide them with all the brands asked by him. The amount of sales made is higher as well the profit earned is higher. The numbers of these outlets are higher in the city. Reliance web world are exclusive reliance outlets. They deal with reliance products of providing connections and billing of the connections. These outlets also sell mobile phones of various brands. The major aspect in these outlets is the stock reaches these outlets directly from the company itself. The RDS has no role to play other than providing these providing these outlets POS materials to these outlets. Reliance web world express are also exclusive reliance outlets but are the franchise outlets of Reliance. They also deal with reliance products of providing connections and billing of the connections. These outlets also sell mobile phones of various brands. The major difference between web world and express are the stock that reaches these outlets. The RDS and his sales men provide both stocks as well POS materials to these outlets. Tata true values Shoppe are also exclusive Tata outlets but are
the franchised outlets. They also deal with Tata products providing connections and billing of the connections. These outlets also sell mobile phones of various brands. The RDS and his sales men provide both stocks as well POS materials to these outlets.
26.3 Supply Chain:
Nokia are committed to reducing the environmental impact of our business. We expect all Nokia suppliers and their suppliers to take a similar approach. At Nokia, we believe in longterm partnerships with suppliers who share our approach to ethical business. Together we work hard to anticipate risk, demonstrate company values, enhance our governance practices, increase employee satisfaction and look after the communities where we do business. NOKIA N-96 Supply through proper Chanel because we want N-96 promotes internationally. We use proper Chanel for our new product.
Our Product Is NOKIA N-96. It is the most expensive and powerful model in the whole Nokia portfolio. It can’t stand up to the level of popularity that N95 once enjoyed, though, but still serves a formidable expansion of the model range upwards.
Price of this set is 42,700 which are affordable for heavy users. This price compete the market easily. Price is reasonable because it is facilitating the consumer.
It is also available in big cities of Pakistan like Islamabad, Lahore, Karachi, and others. Consumer purchases it easily from NOKIA retailers which are located in Islamabad, Lahore and other cities of Pakistan.
We use different channels for promote our new product. Print media Pos material
Tv commercial Billboards and holdings
We often use print media for advertisement. We have a separate department for print media.
As everybody know that TV is a most common entertaining medium so TV commercials is one of the most attractive way of doing advertisement. So NOKIA Company does regular TV commercials on different channels.
Billboards and Holdings
NOKIA is very much conscious about their billboards and holdings. They have so many sites in different locations for their billboards.
Nokia customer care inaugurated in Pakistan
Nokia, the world leader in telecommunication technologies, announced the launch of NOKIA CARE - customer care centre in Karachi at a glittering event today at the Ebrahim Trade Towers. The briefing, which served to introduce Nokia's customer care centre initiative was addressed by Nokia's key regional officials, Imran Khalid Mahmood Country General Manager Nokia Pakistan and Afghanistan, Ian Stewart, Care Director Nokia Middle East & North Africa and Zoff Khan, Managing Director of Global Customer Care, a Koohiji Group Company. The Nokia care centre has been established to facilitate consumers and is a global initiative, which is the first of its kind in Pakistan. Nokia care was launched in Lahore last month and is now being launched in Karachi, with many more to come. The Nokia care will provide customers with the required help and assistance needed to ensure optimal performance of their Nokia devices, with easy access to expert maintenance services and purchase enhancements for the sole purpose of maximising customer satisfaction. Additionally it will offer a unique possibility for consumers in Pakistan to check the warranty of their Nokia device via SMS, by simply sending the IMEI number of the device to 66542 (Nokia), shortly after which a response will be sent back to the device from which the query originated. Sharing his insights on the occasion, Imran Khalid Mahmood Country General Manager, Nokia Pakistan and Afghanistan stated, "The Nokia Care Centre in Pakistan demonstrates our firm commitment to bringing services in the local market that will help us meet customer expectations via a constant flow of first hand information and feedback from our customers."
Marke sharestrate y t g
90 80 70 60 50 40 30 20 10 0 2005 2006 2007 2008 Nokia Sony Ericsson Samsung
Stars Nokian-96 Question Mark
NOKIA & COCACOLA
In August 2001, the new under-the-crown promotion “Nikla Kiya?”(What have u won) was launched in collaboration with Chimera Nokia. The promotion gave consumer a chance to win thousand’s of Coca-Cola branded Nokia 3310 cellular phones on every purchase of 750ml RGB bottle of Coca-Cola ,Sprite, & Fanta. The other highlight of promotion was the “Caught Red Handed” campaign. Branded Coca-Cola with ‘caught red handed’ team in them went to Lahore & Karachi for three days, with target that anyone being caught drinking Coca-Cola will be awarded a NOKIA 3310 mobile phone & if someone is caught talking on a NOKIA mobile will win free supply of Coca-Cola. Caught red handed become a huge success among the masses as it was one to one interaction between the CocaCola brand & the consumers. This activity helped billed confidence and brand loyalty among core consumers.
1. Preston university library
2. Nokia Outlets 3. www.nokia.com 4. http://www.realkarachi.com/nokia-mobile-prices-karachi.php 5. http://europe.nokia.com/A41466357 6. http://www.gsmarena.com/nokia_n96-2253.php 7. http://www.pressreleasepoint.com/nokia-n96well-known-itsawesome-design-and-specifications 8. http://www.the-infoshop.com/study/kt32528-nokia.html
After thorough research, we come to the conclusion that the marketing strategy of NOKIA is working for them and the N-96 is gaining popularity among youth day by day. Nokia is a mobile telecommunications company, and offers far more than just mobile phones for everyday use. They offer networking solutions for businesses that help businesses stay connected and communicate with each other at all times and places. For them, Nokia also offers special mobile phones with exquisite and unique functions and options. In this project, we can overview on NOKIA N96. It is the most expensive and powerful model in the whole Nokia portfolio. It can’t stand up to the level of popularity that N95 once enjoyed, though, but still serves a formidable expansion of the model range upwards. The device looks interesting in terms of the availability of DVB-H digital TV and strikingly high specifications. It comes with an astonishing 16 Gb of onboard and 8 Gb of replaceable flash storage, and has a pronounced focus on the video aspect. Even the form factor and bundled kick-stand suggest this model being a TV-phone, let alone the numerous hardware specifications specially fitted to this cause. The STMicroelectronics chipset offers
its video-relevant powers at a cost, though: it doesn’t do as well in the rest of performance tests. We can’t say N96 lags in the menus, yet a certain delay can be felt, it’s a bit slower than N78 and N85. A high audio quality, a large screen and a spacious storage make N96 a perfect multimedia player and a possible replacement for a number of Nokia N96 users. The price is going to be comparable to the starting price of N95 8GB, namely around 550 Euros. N95 will slowly phase out of the market, making way for the new flagship (it’s currently out of production).
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