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ASSIGNED BY: SUBMITTED BY: Ms. Shubhra Bahal
Swain Rajesh Kumar Jena Rishab Verma Sabyasachi Mukherjee
Sachin Gupta Vivek Kapoor CONTENTS EXECUTIVE SUMMARY INTRODUCTION HISTORY ANALYSIS 4 P’S CONCEPT PEST ANALYSIS STP ANALYSIS LOOPHOLES RECOMMENDATION CONCLUSION 2 .
PEST analysis and STP analysis of Nokia. Targeting and Positioning of all their products are discussed in a detailed manner. the prices of their phones are reasonable.EXECUTIVE SUMMARY This project report analyses the marketing mix. The success of the company lies in the fact that 1 . Their products are also well promoted. The Segmentation. Nokia has adopted excellent techniques to influence a consumer. Almost every shop dealing in mobiles sells Nokia phones apart from their Nokia Care and Nokia priority outlets.
and beautiful HISTORY OF NOKIA:- NOKIA’S FIRST CENTURY: 1865-1967 The first Nokia century began with Fredrik Idestam's paper mill on the banks of the Nokianvirta river. but it 2 . a joy to use. They focus on providing consumers with very human technology – technology that is intuitive.NOKIA: AN INTRODUCTION Everyone has a need to communicate and share. Nokia helps people to fulfill this need and they help people feel close to what matters to them. Between 1865 and 1967. the company would become a major industrial force.
1898: Finnish Rubber Works founded:Arvid Wickström founds Finnish Rubber Works. which will later become Nokia's rubber business 1912: Finnish Cable Works founded:Eduard Polón starts Finnish Cable Works. Finnish Rubber Works and Finnish Cable works formally merge to create Nokia Corporation.a pulse analyzer for nuclear power plants. ➢ 1865: The birth of Nokia:- ➢ ➢ ➢ ➢ ➢ ➢ Fredrik Idestam establishes a paper mill at the Tammerkoski Rapids in south western Finland. 1967: The merger:Nokia Ab. where the Nokia story begins. 1960: First electronics department:Cable Works establishes its first electronics department. selling and operating computers. 1937: Verner Weckman. industry heavyweight:Former Olympic wrestler Verner Weckman becomes President of Finnish Cable Works.took a merger with a cable company and a rubber firm to set the new Nokia Corporation on the path to electronics. 1962: First in-house electrical device:The Cable Works electronics department produces its first in-house electrical device . THE MOVE TO MOBILE: 1968-1991 2 . the foundation of Nokia's cable and electronics businesses.
the company’s first digital telephone switch. 1991: GSM – a new mobile standard opens up Nokia equipment is used to make the world’s first GSM call.. the first international mobile phone network. As European telecommunications markets were deregulated and mobile networks became global. the first handheld NMT phone. is built. 1984: Mobira Talkman launched Nokia launches the Mobira Talkman portable phone. 1981: The mobile era begins Nordic Mobile Telephone (NMT). Nokia led the way with some iconic products. early phone maker Radio telephone company Mobira Oy begins life as a joint venture between Nokia and leading Finnish television maker Salora. MOBILE REVOLUTION: 1992-1999 1 . 1982: Nokia makes its first digital telephone switch The Nokia DX200.The newly formed Nokia Corporation was ideally positioned for a pioneering role in the early evolution of mobile communications. goes into operation. 1987: Mobira Cityman – birth of a classic Nokia launches the Mobira Cityman. 1979: Mobira Oy..
In 1992. the first phone to feature the Nokia Tune. using a Nokia GSM handset. 1992: Nokia’s first GSM handset:Nokia launches its first GSM handset. 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. 1992: Jorma Ollila becomes President and CEO:Jorma Ollila becomes President and CEO of Nokia. 1999: The Internet goes mobile:Nokia launches the world's first WAP handset. focusing the company on telecommunications.. As adoption of the GSM standard grew. the Nokia 1011. 1998: Nokia leads the world:Nokia becomes the world leader in mobile phones. 1994: Nokia Tune is launched:Nokia launches the 2100.. 1997: Snake – a classic mobile game:The Nokia 6110 is the first phone to feature Nokia’s Snake game. This was probably the most important strategic decision in its history. the Nokia 7110. NOKIA NOW: 2000-TODAY:1 . 1994: World’s first satellite call:The world’s first satellite call is made. Nokia decided to focus on its telecommunications business.
the Nokia Nseries. Jorma Ollila becomes Chairman of Nokia’s board. 2003: Nokia launches the N-Gage:.Nokia introduces the next generation of multimedia devices. Nokia launches Ovi. Devices & Services.Olli-Pekka Kallasvuo becomes Nokia’s President and CEO. Nokia and Siemens announce plans for Nokia Siemens Networks. its new internet services brand. Global mobile phone subscriptions pass 2 billion. 2007: Nokia recognized as 5th most valued brand in the world. 2005: The Nokia Nseries is born:.Mobile gaming goes multiplayer with the N-Gage. the Nokia 6650.Nokia’s story continues with 3G.. 2005: The billionth Nokia phone is sold:. 2002: First 3G phone:. multimedia devices and a look to the future.Nokia launches its first 3G phone. The birth of Nokia Eseries.Nokia sells its billionth phone – a Nokia 1100 – in Nigeria.. Nokia Siemens Networks commences operations. THE 4P’S OF THE MARKETING MIX: PRODUCT:1 . The ultimate handheld communicator mobiles (Enterprise series) are launched. 2008: Nokia's three mobile device business groups and the supporting horizontal groups are replaced by an integrated business segment. 2006: A new President and CEO:. mobile multiplayer gaming.
Nokia launches special and limited editions of its mobile phones. Nokia does exactly the same and comes up with innovative phones almost every six months. penetration or skimming. but. thus appealing to the consumer. The new phones that Nokia launches have some new feature or price difference. Nokia has come up with the perfect prices for each 2 . and is usually the one that is open to the most change based on different pricing strategies. customer demand and competition. it focused on manufacturing of mobile handsets based on GSM technology. Price:Price is a key factor in the selling of a product. faced stiff competition from Sony Ericsson. for example. In short they offer phones of great variety with various designs and high quality. competitor based. and Motorola who also started offering low-cost handsets.The product is the centre of the marketing mix and the other three P's are based around it. Sometimes. Consumers purchase goods and services for a variety of individual reasons and a company must be aware of all of these when selling a product (that is why they conduct market research). are. on special occasions such as the Olympics. It started focusing on the low-cost mobile phone segment for rural markets in India. Since its entry into Indian mobile market in 1995. the cost of production. Nokia built a strong brand image with focused marketing and distribution network. Samsung. The three main factors affecting the amount charged for a product or service.
Nokia Priority. A lower middle-class person can go for a Nokia 1200 costing around Rs. Society. PEST Analysis. The advertisements that Nokia comes up with are very successful in targeting the customers in a consumer market. Place:This refers to the chosen outlets for a product or service. It is basic for global brand. The Mobile Store). Economics. Nokia has to adjust its strategic plan in order to develop international market. Nokia Care and specialized outlets (eg. using radio. viz. They also have various sale promotion schemes like offering discounts on special occasions and giving free gifts along with a purchase of a mobile phone. Macro environmental factors comprise Political. It is necessary force that Nokia has to concern and know what is happening in the other countries at the moment.000. for a product to be very successful it must be easy to access. and Technology. 2 . 33.and every consumer segment in the market. The advertisements are made in such a way that it appeals to the psychology of the consumer. Promotion:This involves providing information to the customer over a variety of media platforms. Nokia mobile phones are very easy to access nowadays. 1200 while an executive can opt for N-96 costing around Rs. Because there are different culture and different external factors between different countries. it can be classified as international organization. which is required to focus on macro environmental factors. PEST ANALYSIS In the case of Nokia. they are sold in supermarkets. television and print advertising as well as using other promotional tools such as "money off deals" and "free giveaways". such as Nokia.
not only Finnish Government but also international companies. stable currency conditions and the international competitiveness of the tax system form the foundation for the growth of business an improvement in employment. General macroeconomic stability. people have more disposable income. have play very important roles to develop their information society and national technology strength. The Finnish policies are the most important factors of Nokia. Economic:According to the fact that Russian Federation was collapsed in early 1990s and it assaulted with Finnish economics. The state must also pursue an industrial and economic policy that provides a stable macroeconomic environment for enterprises. The success of Nokia has obtaine the resources from Finnish policies which assist Nokia to advance its products. low interest rates. which enables consumers to be more selective with their choice of mobile 1 . With incomes rising.and technology-based economy that is highly specialized. To operate efficiently. Finnish government best facilitate the efficient functioning of the economy by directing its resources to the reduction of market failures. such as economic policy. internationalized and undergoing rapid structural change requires active support from the public sector. and science and technology policy. In its widest sense industrial policy and science and technology (S&T) policy comprise all those measures by which the public sector shapes the operating environment for business and thus fosters public welfare. Nokia also face with the problem.Political:It is important of a company to acquire resources from government. such as Nokia. Both policies used by Finnish government and Parliament are crucial for the development both of the Finnish Economy and of national information society. As the result of this. a modern knowledge. and changed its functions from single market and overall products to global market and focusing mobile phone market.
According to the changes in 1990s. Nokia must be used to find solution which help to implement environmental objectives as well as the objectives of innovation policy in a balanced way. National and European reforms arising from environmental objectives influence the perquisites from innovation. On the other hand. people’s trend to microcomputers and Nokia tried to match the tendency to produce its main products. Innovation also creates new opportunities for promoting sustainable development. messaging and phone calls) Nokia being a multinational company operates in many countries. 2 . The Finnish government offers goods facilities for taking this opportunity. It cannot be separate between Nokia’s successful of advance its product and Finnish Government’s policies. Nokia also changes its functions to mobile phone market. one important future challenge of Nokia is to establish its policy to follow up the environmental policy and science and technology policy of the Finnish Government. Sustainable development and environmental protection have various effects on the operation of the innovation system. and Finnish Government has established its position of technology development. Nokia has obtained the success of mobile phone market. such as computers. even though to combine these two products together.phone. monitors and TV sets. To sum up. the main reason of Nokia has success to advance its products are the policies and technology development of Finnish Government. the global market trends to connect PC and mobile phone. They have to abide by the economic policies in whichever country they are operating. both of Nokia and Finnish Government are the winner in the international market. The markets for environmental products are expected to grow rapidly in the near future. looking to other factors rather than fulfilling the most basic of user (text. Society and Technology:In the 1980s. Nowadays.
3120 etc ➢ N gage Series: (Rs 8. 1110.6233.000-16. STP ANALYSIS SEGMENTATION AND TARGETING:➢ Entry level: (Rs 1.6120.Nokia targeted low income people and first time mobile buyers in this series. ➢ N. GPRS.Nokia targeted the young generation who wanted to possess mobiles with the latest technologies such as a 5 MP camera. This series is also called multimedia computer. 1100.Nokia targeted game lovers in this series . 1112 etc ➢ Classic Series: (Rs 7.000):.These sets include game like play station. Sets include are 1200.At this moment Nokia is the best selling mobile phone company owing to its constant upgradation in the technology of its phones. Named 2 . 1208.000):Nokia targeted decent people in this series.000):.200-3.Series: (Rs 7000-35. a decent music player. Sets include in this series are 6300. etc.000-17. PSP and Xbox.000):.
These mobiles were launched for people who needed mobile computing on the go especially business people.000-20. E62. E61.000):. Nokia has been very successful in this strategy.000-60. N97. Sets include 5800. N95. Good dolby digital earphones and long battery life are the features of these mobile phones. 5320.000):. N96. etc ➢ E-Series: (Rs 10. 8800Gold. 2 .500. etc ➢ Premium Series:(Rs 80. E75. These phones are enabled with word. Sets include in this series are Sephiraarte. spreadsheet and presentation softwares. 5310. They also are equipped with GPRS/ EDGE technologies thus functioning as a palmtop. 8800arts etc POSITIONING:Positioning of a product refers to creating an image about a particular product.as on step ahead multimedia. Nokia has created a distinct position in customer mind by:➢ Nokia logo: ➢ Slogan: ➢ StandardRingtone ➢ Standard message tone.Nokia launched this series basically for the people who loved music.000-1.000):-In this series Nokia targeted people who show visual status. Sets include E90. Sets include N72. etc ➢ Xpress music Series: (Rs 6. 5610. N81. 5220. ➢ Long battery backup.
1 . These specific aspects have been embedded into the mindset of the consumer in such a way that every time they saw the logo or heard the ringtone they associate it with a Nokia product.➢ User friendly mobiles. ➢ The specific message that is conveyed to the customers in every advertisement is: “Nokia enable you to get more out of life”. Hence Nokia has been very successful in positioning it products in the market.
These companies have made Nokia pay dearly for its rudimentary approach in marketing its phones. The N-Series is packed with multimedia features and Nokia believes that these phones might woo the costumers back to the big daddy of the mobile phone world.LOOPHOLES No doubt that the products from the Finnish company. These phones are not packed with heavy multimedia features like the N1 . While Motorola (quite intelligently) gives a dashy-flashy name to every phone it brings into the market. The very reason that other mobile phone companies are fast eating up Nokia’s market share is their superior (yet simple) marketing practices. but only because there wasn’t much competition back then. Motorola and Samsung must now be in the FUW (frequently used words) list in Nokia’s board meetings. This strategy worked very well in the past. But times have changed. Every month the market sees at least a dozen new handsets from an equal number of manufacturers. Nokia from the very start has relied on numbers rather than names. is now putting all its weight behind the N-Series range. MotoRizr and MotoKrzr. but the company still hasn’t found a profitable way to market its goods. quite alarmed by the dropping sales of its phones. The aggressive marketing practices followed by Motorola have hit Nokia very hard and it is losing very crucial global market share every month to its American competitor. MotoSlvr. are some of the very best in the world. we have a problem!! (Nokia is headquartered at Espoo. But Espoo. Nokia tends to do the exact opposite. Nokia. Nokia. Finland). This is evident from the success of the MotoRazr. Consumers now have more than they can choose. Consumers are more attracted by names because they can thus easily relate to the features of the phone.
a highly placed Nokia official told Reuters that his company would soon go the Motorola way 2 .Series. Still its market share is dropping. one gets a broad idea what the phone looks like or what its features are. Nokia advertises more than Motorola. It doesn’t have to do anything great. Just by reading the name of the handset. Take the example of Apple. it just simplifies its job by naming its products right. RECOMMENDATIONS: It is high time that Nokia starts applying some sense to its marketing strategies. still they are selling like hot cakes. Motorola does not need to spend much money for the promotion of its products and it doesn’t have to worry about the marketing of these phones. It did not have to do much to promote its iPhone. A few months ago. other than just naming its phones.
and start using names for its new phones. It is in Nokia’s best interest that it takes to this path as early as possible. otherwise the once market leader might see its market share plummeting to even lower depths 2 .
CONCLUSION 1 .