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Module Title: Brand Management Name of Tutor: Maricelle Ruiz Calderon Assignment Title: Nokia Brand Audit
Nokia Brand Audit
Nokia Mobile Phones is Synonymous to Brilliance and Efficiency. If there is a brand that should be really credited for its breakthrough technology and major contribution to the advancement in the mobile phones industry then it is certainly the Finnish brand Nokia. Nokia brand history dividing into four parts which is: Nokia First Century, The move to mobile, Mobile revolution, Nokia now Nokia 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 took a merger with a cable company and a rubber firm to set the new Nokia Corporation on the path to electronics. Nokia started by making paper – the original communications technology. The history of Nokia goes back to 1865. That was when Fredrik Idestam built a wood pulp mill on the banks of the Tammerkoski rapids, in southern Finland. A few years later, he built a second mill by the Nokianvirta river – the place that gave Nokia its name. In 1898, Eduard Polón founds Finnish Rubber Works, which will later become Nokia's rubber business. In 1912, Finnish Cable Works founded Arvid Wickström starts Finnish Cable Works, the foundation of Nokia's cable and electronics businesses. In 1960, Cable Works establishes its first electronics department, selling and operating computers. In 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. In 1967, Nokia Ab, Finnish Rubber Works and Finnish Cable works formally merge to create Nokia Corporation. The move to mobile (1968-1991) 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. In 1979, Radio telephone company Mobira Oy begins life as a joint venture between Nokia and leading Finnish television maker Salora. In 1981, The mobile era begins, Nordic Mobile Telephone (NMT), the first international mobile phone network, is built. In 1982, Nokia makes its first digital telephone switch, The Nokia DX200, the company’s first digital telephone switch, goes into operation. In 1984, Nokia launches the Mobira Talkman portable phone. In 1987, Mobira Cityman – birth of a classic, Nokia launches the Mobira Cityman, the first handheld
NMT phone. In 1991, GSM – a new mobile standard opens up, Nokia equipment is used to make the world’s first GSM call. Mobile revolution (1992-1999) 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 industry’s global boom – and made it the world leader before the end of the decade. Nokia launches its first GSM handset, the Nokia 1011. In 1994, Nokia Tune is launched. Nokia launches the 2100, the first phone to feature the Nokia Tune. In the same year the world’s first satellite call is made, using a Nokia GSM handset. In 1997, Snake – a classic mobile game, the Nokia 6110 is the first phone to feature Nokia’s Snake game. In 1998, Nokia becomes the world leader in mobile phones. In 1999, The Internet goes mobile. Nokia launches the world's first WAP handset, the Nokia 7110. Nokia now (2000-present) Nokia’s story continues with 3G, mobile multiplayer gaming, multimedia devices and a look to the future. In 2002, Nokia launches its first 3G phone, the Nokia 6650. In 2003, Nokia launches the N-Gage, mobile gaming goes multiplayer with the N-Gage. In 2005, The Nokia Nseries is born, Nokia introduces the next generation of multimedia devices, the Nokia Nseries. The billionth Nokia phone is sold. Nokia sells its billionth phone – a Nokia 1100 – in Nigeria. Global mobile phone subscriptions pass 2 billion. In 2007 Nokia recognized as 5th most valued brand in the world. Nokia Siemens Networks commences operations. Nokia launches Ovi, its new internet services brand. Product-related attributes Nokia core business practices and philosophies are providing their customers with stylish, usable, robust, experiential and relevant devices with Nokia’s signature and world famous quality and ease of use. Nokia mobile phones provide to customer functional and emotional benefits: Functional benefits -GPS -PC integration -Media player -MP3 player
-Camera -Bluetooth and Infra red -Call recording -Internet Emotional benefits -Style -Satisfaction -Image -Brand -Professionals -Expression -Look -Innovation and technology demanding people
Brand portfolio Nokia includes ten different series of mobile phones, each with a subset of different models which define the whole product range in series -Nokia 1xxx (basic) series are ultrabasic series, the 1xxx series is basic mobile phones. -Nokia 2xxx (basic) series are like the 1xxx series, the 2xxx series are entry-level phones. However, the 2xxx series generally contain more advanced features than the 1xxx series; many new 2xxx series phones have color screens and some have cameras and Bluetooth. - Nokia 3xxx (Expression) series are mostly mid-range phones targeted to the youth market. Some of the models in this series are targeted to young male users. -Nokia 5xxx (Active) is similar in features to the 3xxx series, but often contain more features towards active individuals. Many of the 5xxx series phones feature a rugged construction or contain extra features for music playback.
-Nokia 6xxx (Classic Business Series) series is Nokia's largest family of phones. It consists mostly of mid-range to high-end phones containing a high amount of features. The 6xxx series is notable for their conservative, unisex designs, which make them popular among business users. -Nokia 7xxx (Fashion and Experimental) Most phones in this series are targeted towards fashion users, particularly towards women. -Nokia 8xxx (Premium) series is characterized by ergonomics and attractiveness. The internals of the phone are basic; however the physical handset itself offers a level of functionality which appeals to users who focus on ergonomics. -Nokia Eseries is Enterprise series - Nokia Nseries is Mobile Computer series - Nokia Xseries is Multimedia series Brand equity drivers Nokia has succeeded where other big brand names have failed, mostly by putting together the human technology and dominating in the emotional high ground. Nokia doing very well in terms of research and development, manufacture and sales in many countries throughout the world. Nokia Research Center was founded in 1986, is industrial unit which helps Nokia develop its innovative products, this unit consisting of about 800 researchers, engineers and scientists. In December 2008, Nokia had R&D in 16 countries and employed approximately 31% of total workforce. Nokia also distinguishes itself through its pricing strategy. Nokia launch a product at a premium price, and in half a year decreasing it gradually by 30% total. Nokia product range allow to customers choose not only by technology features, but also by price. Prices starts at about 20 Euros for the basic 1xxx series and can reach 900 Euros for multimedia series or 60000 Euros for Vertu. Nokia sell products through different distribution channels such as Concept Stores, Shop-inShops and through the internet web site, also possible to buy Nokia through not official retailers but in this circumstances price would be higher and without guarantee. Nokia has several competitors in huge mobile phone industry. Competitors such Samsung, Sony Ericsson, Motorola, Apple and future probably one of main competitors, Google with its Nexus One.
iPhone is one of main competitors with its innovative approach and totally different vision of how mobile phones need to look like. iPhone has iTunes, useful tool for downloading software and music, basically iPhone is integration of mobile phone and iPod, popular mp3 player which transmit its popularity to iPhone.
Customer knowledge Nokia has used it Research and development techniques along with innovation to become the most recognized and powerful mobile phone producer. Typical consumer brand associations for Nokia might be ‘innovative’, ’high quality’, ’worldwide’, ’user-friendly’, ’popular’, ‘comfortable’ and ‘inspiring’ displays Nokia mental map. Mental map
Sources of brand equity Nokia has big brand equity, below mentioned main: -Sports: ‘Nokia had been the long term title sponsor for the FIS Snowboard World Cup. International Ski Federation (FIS) and Nokia have signed a three-year sponsorship agreement, which gave high visibility to Nokia in the 78 events around Europe, USA, Canada and Japan in the 1998-1999 season’. Nokia continue to sponsor Extreme winter games, customers can see Nokia logos on sides of road for snowborders and Ski. -Concerts: Nokia is sponsoring national and international music festivals, in contrast to any others by very unusual place to perform it every time. By using high technology, Nokia is going maximum away from common and turn to modern and innovative. It gives such an atmosphere that everybody will remember. -Experiential marketing: In 2005, in big outlets in Russia buyers had the opportunity to run some tests with the phone’s Mp3 player and record their own track. The best composer got a main prize-audio system. -‘As one of the major supporters of the MobileMuster, Nokia urgers it customers to recycle any old phones they have this month and the industry will plant a new tree for each phone handed in.
The MobileMuster is the official recycling program of the mobile phone industry.’ Nokia contribute MobileMuster by 30 cents for each handset it sells in Australia. The customer-based brand equity pyramid (CBBE) The customer-based brand equity pyramid for Nokia is equally strong from top of pyramid till end, Nokia has focused on both the superior product attributes and the imagery associated with owning and use Nokia mobile phones. Below the Nokia customer-based brand equity pyramid that highlights main aspects.
Piracy Counterfeited Nokia mobile phones, especially very popular models such as Nokia N95, are damaging the company’s brand equity and present a huge risk to Nokia. Counterfeited Nokia mobile phones are coming from China and other Asians countries, this phones are cheap by 10 times but the main problem for Nokia brand Equity is counterfeited phones looks the same but by features there nothing except just phones, it damaging Nokia’s one of main equity, technology features. In fact, Nokia dedicated sources to fighting illegal use of brand, including data about official retailers and official shops, to Nokia web site.
The Nokia brand audit reveals a very strong brand with much equity. But, there are some opportunities that Nokia can use. Compete with Apple Nokia need to come with some fresh device to market for improving on Nokia innovation to compete Apple iPhone. iPhone is something fresh for customers, so Nokia need to fight back to iPhone.
Sell more software Nokia need to start selling more software, games, videos, movies etc. through Nokia web site. It is a great opportunity to reach more customer loyalty and increase revenues.
Provide more service to customers Nokia need to make extra service for each customer that buy Nokia, for example free access to Nokia software for a year. This can help to fight counterfeited products.
Make joint venture with fashion brand Nokia can make joint venture with fashion brand such as Gucci or Dolce&Gabanna to create fashion mobile phone. As Samsung did with Giorgio Armani.
Nanotech mobile phones Nokia already did some steps in nanotechnology phones with Nokia morph, but it just concept, so Nokia need to make more attention on this idea and bring it to real world.
Nokia history, www.nokia.com Nokia sponsorship, www.nokia.com "Nokia – Towards Telecommunications". Nokia Corporation. August 2000. "Nokia Research Center". Nokia Corporation. October 2007.
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