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. 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.
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.
“In a world where everyone can be connected, we take very human approach to technology”
“A world where everyone can be connected”
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. 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.
Nokia Brand Personality
Nokia has detailed many personality characteristics for its brand, but employees do not have to remember every characteristic. They do, however, have to remember the overall impression of the list of attributes, as you would when thinking about someone you have met. As the focus is on customer relationships, the Nokia personality is like a trusted friend. Building friendship and trust is at the heart of the Nokia brand. And the human dimension created by the brand personality carries over into the positioning strategy for the brand.
Nokia Product 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. Nokia 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 Business Strategy:
Nokia’s priority is to be the most preferred partner to operators, retailers and enterprise. The brand goal for Nokia is to become the most loved brand by the customer.
Nokia’s business strategy focus on five areas: • • • • • Create winning devices Embrace consumer internet service Deliver enterprise solution Build scale in networks Expand professional services
Nokia Marketing Strategy:
Nokia company is successful because of their marketing strategies, focus on customers etc. To attract the customers they are introducing new offers & schemes. The main thing behind success of Nokia is they are reacting according to the customer needs and adding value to the each and every product. Nokia targeting each and every customer like they launched the music addition, business phones, classic phones for old people. Nokia launches pioneering ‘Comes with Music’ digital entertainment service. Customers who buy a Comes with Music device will be able to explore and enjoy a diverse catalogue of music of international and local artists with unlimited access to millions of tracks for a year and customer can download without worrying about the cost of an album or a track.
Nokia is currently the world’s largest mobile phone manufacturer, with 76.4% of the GSM/TDMA market and 3.7% of the CDMA market. Despite the argument that the U.S. handset market is about to follow in the footsteps of the PC industry in which the product is becoming increasingly commoditized. Nokia has thus far managed to establish a powerful brand that has been widely recognized as the key to its recent successes. It has been ranked as the world’s sixth most valuable brand, following Coca-Cola, Microsoft, IBM, and Google. The Nokia brand is an asset that has been carefully cultivated during the past ten years, throughout which the company has managed to predict and satisfy consumers’ needs and preferences ahead the competition. In 1989, Matti Alahuhta developed a new strategy for Nokia that focused on three key points:
• the development of a product with global appeal • nimble movement to sell it internationally • most importantly, a commitment to learning what consumers want, without consideration of the limits of existing technology
By 1990, Nokia had already begun to identify some of the features that would eventually establish it as the leader in setting industry benchmarks. The Nokia 2110, launched that year, gained popularity with a large screen, elegant design, and a clean user interface. Nokia has successfully segmented the market to target specific demographic groups. For example, in the year 2003, different phones were marketed to appeal to the “rugged” user, the “sophisticated” user, and the youth market, among others. With all these product innovations, designed to satisfy customer preferences, Nokia has reinforced its brand image of providing cutting-edge communications technology. Since Motorola lethargically moved from analog to digital phones, Nokia was able to overtake them as the leader in the handset market by 1998. Subsequently, Nokia leveraged its superior marketing strategies and powerful brand to avoid the price wars that have recently afflicted its key competitors.
Nokia Positioning Strategy:
Nokia 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 Promotion Strategies:
Nokia 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.
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.
Nokia Pricing Strategy:
Pricing Strategy Matrix:
Nokia observes different pricing strategy for our products. The main aim is to gain the market at rural village of India and maintain it’s customer for Mid range phone.
Premium Pricing :
Nokia 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.
Peneteration 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.
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.
Skimming Pricing :
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 Technology Strategy:
Nokia Technology Strategy is a key business enabler for connecting people. Nokia use business Driven, technology agnostic, end-to-end approach.
Nokia Technology Priorities: Embrace the Internet Excel with Software Platforms and Applications Win developers with consistent architectures Lead multi-radio productization and evolution
Market Segmentation Strategy:
The profile for Nokia mobile phone customer consists of the following geographic and demographic:
Nokia mobile phone 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.
Capture rural Pakistan market Target school student Attract Customers to New technology Enhance Distribution Maximize Nokia revenues Maintain Customer’s Loyalty
Nokia Products are: Nokia N-96 Nokia 5310 Nokia 6300 Nokia 5320 Nokia 1100 Nokia 1110 Nokia 1112 Nokia 6220
Funtionality: • Latest technology. • Text messaging and games like Snake and Memory. • Bulky and quite unattractive but now they are all quite sleek and stylish. • Accessories that consumers buy with them (carry cases, hands free kits and in-car chargers).
Prices of Nokia Sets are different and reasonable because it is easily facilitating the consumer. e.g: Nokia 1110, Price of this set is 3,000 which are affordable for every class of users.
Nokia is 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.
Nokia use different channels for promote our products. Print media Pos material Tv commercial Billboards and holdings
Nokia have many Competitors, they include; • Sony Ericson • Motorola • Samsung • Siemens • Panasonic • Toplux
Nokia is the One of the most popular mobile communication. company in the industry. Nokia is high product quality Latest Technology Latest Software Product is warrantee worldwide Fashionable product (serve new trend) Global marketing (product) Better quality Design is a bit mature
Weaknesses are: Low voice quality Market skimming prices
Opportunites are: Latest and powerful devices Well designed and stylish sets Latest Accessories Pocket Computer Nokia Set N-96 with computer window
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 many Nokia Sets
Our Evaluation About Nokia:
Our Strategy has a lot of advantages over Nokia’s previous strategy, and has listed below: Our Target Market is one that has never been entered before, so Nokia will instantly gain 100% market share, whereas the current target market is saturated and competition for market share is very strong. The Products that are being released do not need to be as technically advanced as the ones in the current market, because our target research showed that the 40+ market do not want phones that are complicated and hard to use. If product research and development is not needed as much anymore then Nokia can afford to Decrease its employment numbers and this would save Nokia a lot of money every year.