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Nokia Corporation (NYSE: NOK) is one of the world's largest telecommunications equipment manufacturers. With headquarters in Keilaniemi of Espoo, Finland, this Finnish telecommunications company is best known today for its leading range of mobile phones. Nokia also produces mobile phone infrastructure and other telecommunications equipment for applications such as traditional voice telephony, ISDN, broadband access, professional mobile radio, voice over IP, wireless LAN and a line of satellite receivers. Nokia provides mobile communication equipment for every major market and protocol, including GSM, CDMA, and WCDMA. Nokia was established in 1865 as a wood-pulp mill by Fredrik Idestam on the banks of Nokia rapids. Finnish Rubber Works established its factories in the beginning of 20th century nearby and began using Nokia as its brand. Shortly after World War I Finnish Rubber Works acquired Nokia wood mills as well as Finnish Cable Works, a producer of telephone and telegraph cables. All three companies were merged as Nokia Corporation in 1967. The name Nokia originated from the river which flowed through the town of the same name (Nokia).
In the 1970s Nokia became more involved in the telecommunications industry by developing the Nokia DX 200, a digital switch for telephone exchanges. In the 1980s, Nokia offered a series of personal computers called MikroMikko , however, these operations were sold to International Computers, Ltd. (ICL), which was later merged with Fujitsu-Siemens AG. Nokia also began developing mobile phones for the NMT network; unfortunately, the company ran afoul of serious financial problems in the 1990s and streamlined its manufacturing of mobile phones, mobile phone infrastructure, and other telecommunications areas, divesting itself of other items, such as televisions and personal computers. In 2004, Nokia resorted to similar streamlining practices with layoffs and organizational restructuring, although on a significantly smaller scale. This, however, diminished Nokia's public image in Finland, and produced a number of court cases along with, at least, one television show critical of Nokia. Recently, Nokia joined other mobile phone manufacturers to embrace Taiwanese Original Device Manufacturers. Nokia signed a contract with BenQ, a Taiwanese Original Device Manufacturer, to develop three high-end mobile phones, which are scheduled to retail by the end of 2005.
Nokia in the Region of Asia – Pacific
A leading player in mobile communications in the Asia Pacific, Nokia first started operations in the region in the early 1980s. It has since established a leading brand presence in many local markets, and business has expanded considerably in all areas to support customer needs and the growth of the telecommunications industry in the region. Nokia's regional corporate headquarters is located at Alexandra Technopark in Singapore. As the regional hub for Nokia, it is a base from which over 700 staff provide leading-edge technology, product and solutions support to the 20 diverse markets and Nokia offices in the Asia Pacific. Nokia's regional treasury center - Nokia Treasury Asia - operates out of Singapore as an in-house bank for Nokia subsidiaries in the Asia Pacific region, while Nokia Research Centre - the corporate research unit - has offices in Japan and China. Nokia also manufactures products out of three major facilities in Masan, Korea, and Beijing and Dongguan in China. As of January 2004, Nokia streamlined its global organizational structure to strengthen its focus on convergence, new mobility markets and growth. To address emerging new business areas in the Mobility era while continuing to
grow its leadership in mobile voice communications, Nokia has four business groups to best meet the unique dynamics of each business. Mobile Phones offers a global range of highly competitive mobile phones for large consumer segments, and develops mobile phones for all major standards and customer segments in over 130 countries. It is responsible for Nokia's core mobile phones business, based mainly on WCDMA, GSM, CDMA and TDMA technologies. Mobile Phones focuses on bringing feature-rich, segmented mobile phones to the global market. Multimedia brings mobile multimedia to consumers in the form of advanced mobile devices and applications. Its products have features and functionality such as imaging, games, music, media and a range of other attractive content, as well as innovative mobile enhancements and solutions. Networks continues to offer leading-edge network infrastructure, technology and related services, based on major wireless standards to mobile operators and service providers. Focusing on the GSM family of technologies, the group aims at leadership in GSM, EDGE and WCDMA radio networks. Our networks have been installed in all major global markets that have adopted these standards. Networks is also a leading provider of broadband access and TETRA networks for professional users in the public safety and security sector.
Enterprise Solutions provides a range of terminals and seamless mobile connectivity solutions based on end-to-end mobility architecture, dedicated to helping businesses and institutions worldwide improve their performance through extended mobility. Its end-to-end solution offerings range from business optimized mobile devices on the front end, to a robust portfolio of mobile business optimized gateways in the back end including: wireless email and internet, application mobility, message protection, virtual private networks, firewalls, and intrusion protection.
Nokia Corporation manufactures mobile devices principally based on global system for mobile communications, code division multiple access (CDMA), and wideband CDMA (WCDMA) technologies. The company operates in three divisions: Multimedia, Enterprise Solutions, and Networks. The Multimedia division focuses on bringing connected mobile multimedia to consumers in the form of advanced mobile devices, including 3G WCDMA mobile devices and solutions. The Enterprise Solutions division enables businesses and institutions extend their use of mobility from mobile devices for voice and basic data to secure mobile access, content, and applications. Its solutions include business-optimized mobile devices for end users, a portfolio of Internet portfolio network perimeter security gateways, and mobile connectivity offerings. The Networks division provides network infrastructure, communications, and networks service platforms and professional services to operators and service providers. Nokia connects people to each other and the information that matters to them with mobile devices and solutions for voice, data, imaging, games, multimedia, and business applications. The company also provides equipment, solutions, and services for its operator and enterprise customers. It sells its mobile devices primarily to operators, distributors, independent retailers, and enterprise customers worldwide. Nokia Corporation is based in Espoo, Finland.
Historically, the thinking was: a good product will sell itself. However there are no bad products anymore in today's highly competitive markets. Plus there are many laws giving customers the right to send back products that he perceives as bad. Therefore the question on product has become: does the organization create what its intended customers want? Define the characteristics of your product or service that meets the needs of your customers. Functionality:
• Appearance • Packaging • Brand
• Support • Warranty
Some of the Products that Nokia offers to Customers are:
Nokia 9300 Nokia 8800
New Products Launching & Operating Highlights
The Mobile Phones business group increased its consumer offering during the quarter with the introduction of new models in a range of form factors and designs. Highlights include: - Nine new GSM models, including the Nokia 6280, our first mid-range WCDMA/3G phone. - Four new CDMA models, growing our mid-range offering in CDMA. - Premium category devices: the Nokia 8800 and Nokia 8801 stainless steel slide phones. - The Nokia 6270 slide phone: one of two new models with 2 mega pixel cameras. - The Nokia 5140i camera phone: Nokia's first mobile device to comply with upcoming EU environmental legislation. - Two entry-level mobile phones, the Nokia 1110 and Nokia 1600, each offering technological features designed to reduce the total cost of ownership for users.
How much are the intended customers willing to pay? Here we decide on a pricing strategy - do not let it just happen! Even if you decide not to ask (enough) money for a product or service, you must realize that this is a conscious decision and forms part of the pricing strategy. Although competing on price is as old as mankind, the consumer is often still sensitive for price discounts and special offers. Price has also an irrational side: something that is expensive must be good. Permanently competing on price is for many companies not a very sensible approach. List Price: • Discounts • Financing • Leasing Options • Allowances.
Price of the Most Selling Mobile Phones of Nokia In the Market
Nokia 3230 Nokia 7610 Nokia 6230 Nokia 6630 Nokia 9300 Nokia 3660 Nokia 1100 Nokia 6610
Price Approx in Rs
Rs.15,000 Rs.16,000 Rs.12,000 Rs.22,000 Rs.28,000 Rs.11,000 Rs.3500 Rs.6000
Available at the right place, at the right time, in the right quantities? Some of the recent major changes in business have come about by changing Place. Think of the Internet and mobile telephones Locations:
• Channel members • Channel Motivation • Market Coverage • Service Levels
How are the chosen target groups informed or educated about the organization and its products? This includes all the weapons in the marketing armory - advertising, selling, sales promotions, Public Relations, etc. While the other three P's have lost much of their meanings in today's markets, Promotion has become the most important P to focus on. Advertising: • Front Line Service • Public Relations • Message • Direct Sales • Sales • Media • Budget
All people directly or indirectly involved in the consumption of a service are an important part of the extended marketing mix. Knowledge Workers, Employees, Management and other Consumers often add significant value to the total product or service offering.
Procedure, mechanisms and flow of activities by which services are consumed (customer management processes) are an essential element of the marketing strategy. Nokia has rapidly moved from functionally oriented organisation to a business process oriented mode, and our information systems have not followed the change as fast as they should. To fill the gap, IM organisation must learn and implement working methods which enable the creation of business process oriented information systems. To satisfy these business needs, Nokia has introduced a new development approach for information systems development. These processes have been created and tested during the SPI. In 1996, the starting point of software engineering practices in Nokia Mobile Phones/Information Management was that there were no clearly defined processes to guide the software development according to the business needs. Requirement analysis was usually done with an ad-hoc style without a pre-defined process. For the technical design and implementation, there was a first version of project manual to follow.
Technical environment from IT point of view at Nokia is great. Market’s leading brands are utilized in every part of the company and personnel’s skill level is high in technical issues. In the SPI project, ICL ltd
was selected as the vendor to provide a consulting point of view and to deliver their skills for business analysis and requirements specification areas. Business environment in telecommunication industry is fast moving and quite young, which means big challenges for information management: timing is crucial. Because of the changing environment, also organisation is changing rapidly. Change is an every day phenomenon at Nokia, which helps a lot when changing working practices as a part the SPI. Skill set needed for the business and requirements analysis and other parts of the SPI is different from the technical expertise so common at Nokia. In order to succeed, some time for training was reserved during the SPI. The technical target environment for the SPI included a R/3 based standard package as the baseline project environment, a CASE tool to support the IM Process and an intranet environment where the results were shared.
Pay Packages of the Company
Key Executives In The Company
Mr. Jorma Ollila , 54 $ 4.64M $ 6.00K Chairman, Chief Exec. Officer and Chairman of the Group Exec. Board
Mr. Pekka Ala-Pietilä, 48 Pres, Head of Customer and Market Operations and Member of Group Exec. Board
$ 1.63M $ 0
Mr. Olli-Pekka Kallasvuo , 52 Exec. VP, Pres of Mobile Phones, Gen. Mang. of Mobile Phones and Group Exec. Board Member
$ 1.41M $ 0
Mr. Rick Simonson, 47 Chief Financial Officer, Sr. VP and Member of Group Exec. Board Mr. Pertti Korhonen , 44 Chief Technology Officer, Sr. VP and Group Exec. Board member
SWOT Analysis of the Company: Nokia
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 company’s product.
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.
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.
Nokia has many threats to tackle to maintain its position as market leader. The threats like emerging of other mobile companies in the market. The companies like Motorola, Sony Eriksson, Cingular (U.S) etc. these companies have come to the stand of tough competition with Nokia in the field of Mobile Phones. Threats can be like providing cheap phones, new features, new style and type, good after sales service etc. So, Nokia has to keep in mind the growing competition around. Nokia has to make strategies to tackle problems in the present and the near future. The growing demand of WLL network can cause drop in sales for Nokia, as Nokia provides many less CDMA phones to the customer.
1. About the Company 2. Nokia in the region of Asia- Pacific 3. Company’s Profile 4. Product 5. Products that Nokia offers 6. New Products & Operating Highlights 7. Price 8. Price of Some Most Selling Mobile Phones 9. Place 10.Promotion 11.People 12.Process 13.Pay Package 14.SWOT Analysis
Thakur College of Science & Commerce
Project on Marketing Management Topic of the Project on: Efforts for This Project is made by: Tushar Inani (S.Y.B.M.S) Submission on: 30th August 2005 Submitted to: Mrs. Shalini
“This Idea of ‘Connecting People’ by Nokia provides Service to people with the help of the Products”
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