Module Code & Module Title

MC5051NT Brand Management

Assessment Weightage & Type

60% Individual Coursework

Year and Semester

2021 Spring

Student Name: Rajdeep Shakya

London Met ID: 18029270
Assignment Submission Date: 31 Jan 2021
Word Count (Where Required): 2597

I confirm that I understand my coursework needs to be submitted online via Google Classroom/Local
Server under the relevant module page before the deadline in order for my assignment to be accepted
and marked. I am fully aware that late submissions will be treated as non-submission and a mark of zero
will be awarded
 Acknowledgment

Firstly I would like to thank our respected module leader lecturer Mrs. Surendra Raj Acharya and
Itahari International College for giving me a good guideline for preparing report throughout
numerous consultations. I am very grateful from the bottom of my heart respected module leader
for providing such a great platform to prepare the report which knowledge will help me in my
future endeavors. I would like to thank our respected module lecturer Mrs. Shishir Bhattarai who
helped me with my report by offering his valuable time to explain brand equity and brand
repositioning theories which are directly related to my report.
Many people especially our classmates have made valuable comment suggestions on this
proposal which gave me an inspiration to improve my coursework. I would like to thank all the
people who helped me directly and indirectly to complete my report.
Table of Contents
1. Introduction........................................................................................................................... 1
2. Brand Background................................................................................................................ 1
2.1 Brand Profile...................................................................................................................... 1
2.2 Targeted Market.................................................................................................................2
2.3 Competitor Analysis...........................................................................................................2
2.4 Current Trends...................................................................................................................3
3. Discussion on Academic Theory...........................................................................................3
3.1 Brand Reinforcement and Revitalization............................................................................4
3.2 Brand Repositioning........................................................................................................... 4
4. Secondary Research Findings..............................................................................................6
4.1 Brand Failure of Nokia........................................................................................................6
5. Discussion............................................................................................................................ 7
6. Recommendations................................................................................................................ 7
7. References........................................................................................................................... 8
8. Appendix............................................................................................................................ 10
 Abstract
Nokia is a global Finnish networking company engaged in the worldwide development of
mobile devices, network infrastructure, location-based applications and advanced technologies.
They help fulfill a basic human need for social connections and interaction by connecting people.
Nokia creates bridges between individuals, both when they are far away and face-to-face, and
also bridges the gap between individuals and the data they need. The company has seen a
decrease in its brand value, despite being the industry leader in the mobile phone market since
1998. To reenter in the smartphone market, Nokia should produce phones that have a unique
characteristic and are different and have an appealing design according to different types of
customers. This report shows how Nokia can improve its brand equity or revitalize it, and it also
shows how Nokia can rebuild its brand equity.
MC5051NT Brand Management

1. Introduction
By analyzing the decreased trend in Nokia Corporation's Brand Equity, the following report was
prepared. Nokia is a successful brand and it is a truly global brand. In order to improve mobile
business growth, Nokia focuses on creative ways to partner with telecommunications service
providers. Gradually, with many companies targeting the same target market, the cell phone
industry became much more competitive. All the major players striving for the target market
were Apple, Samsung, Blackberry, and Nokia. Nokia did not boost its service in this tough race
and lost to the other players available on the market [CITATION Yah21 \l 1033 ]. Brand equity
defines the level of impact in the minds of buyers of a brand name and the importance of getting
a brand that is familiar and well thought of. Nokia will reach consumers that it did not want to
reach in the first place by brand repositioning. This report shows how Nokia can improve its
brand equity or revitalize it, and it also shows how Nokia can rebuild its brand equity [CITATION
Mar212 \l 1033 ].

2. Brand Background
Nokia Corporation is the world’s largest manufacturer of mobile phones in the world, serving
clients in 130 countries. Nokia is divided into four industry groups: Corporate Solutions, Cell
Phones, Multimedia and Networks. In the business and corporate markets, the Cell Phones
company markets wireless voice and data products [CITATION Yah21 \l 1033 ] .In the consumer
and corporate markets, the Cell Phones division markets wireless voice and data devices. Mobile
gaming consoles, home satellite systems, and cable television set-top boxes are sold in the
Multimedia category. Wireless systems are developed by the Business Solutions division for
private sector use. Wireless switching and transmitting equipment is marketed through the
Networks division of the company [ CITATION Wez21 \l 1033 ]. Nokia operates 15
manufacturing facilities in nine countries and maintains research and development facilities in 12
nations. [CITATION Ref211 \l 1033 ]

2.1 Brand Profile

Nokia is a global Finnish networking company engaged in the worldwide development of mobile
devices, network infrastructure, location-based applications and advanced technologies. The

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company is also active in the integration of the Internet and communications sectors. Nokia
operates 15 manufacturing facilities in nine countries and manages R&D facilities in 12
countries. Nokia helps satisfy a basic human need for social connections and communication by
connecting people [ CITATION Cru21 \l 1033 ] . They help fulfill a basic human need for social
connections and communication by connecting people. Nokia creates bridges between
individuals—both far away and face-to-face—and also bridges the gap between individuals and
the data they need. [CITATION Ref211 \l 1033 ].

2.2 Targeted Market

The Nokia target market segment consists of particular categories of consumers who concentrate
their marketing activities, such as different age groups of individuals. For the Nokia goal, there
are likely to be two main reasons; the first is to benefit and the second is to target customers who
need a means of communication. For example, it is mainly aimed at customers searching for
entertainment aged 19-39 years old. Nokia's target group is college students, who are primarily
between the ages of 18 and 25. They are identified as the target customers because the mobile
phone group has great potential. Their high disposable income can be the advantage of Nokia, so
we can see the promise of these future middle classes. [ CITATION PHD21 \l 1033 ]
Because of the continuous investment in education by the government, the segment of college
students is large enough. The number of college students is growing exponentially, providing the
mobile phone industry with a wide pool of potential target customers [ CITATION Ukd211 \l
1033 ].

2.3 Competitor Analysis

Gradually, the mobile phone industry became even more competitive, with many firms targeting
the same target market. Apple, Samsung, Blackberry and Nokia were all the big players striving
for the target market. In addition to this high-end competition, low-end competition has also
arisen in the industry in the form of Huawei, HTC, and ZTE. These companies gained
considerable share gradually, especially when the market share of these companies was summed
up; as a competitor for Nokia, it was a large amount. Nokia main market competitors are as
follows:
1) Samsung: SAMSUNG (Group) has maintained a mission statement since its founding in

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1938 that reacts both to its own transformation and to new developments in the world.
Samsung is evolving at a rapid pace. [ CITATION Ukd21 \l 1033 ]
2) Apple: Apple remains the most valuable brand with an approximate valuation of almost $323
billion, according to the Best Global Brands 2020 list, while Amazon and Microsoft hold the
second and third slots, respectively. [CITATION GSm20 \l 1033 ]
3) HTC: HTC was considered the top smartphone brand in the United States back in 2011,
holding 24 percent, ahead of both Apple, Samsung, and BlackBerry. However, by 2013,
fortunes had changed and Apple and Samsung had lost much of their market share to the
group.[ CITATION Zdn15 \l 1033 ]
4) Huawei: In its devotion to creativity and driving value for global customers, Huawei is
steadfast. Huawei is ranked 45th, up two positions from last year in the new BrandZ Top
100. [ CITATION Huw21 \l 1033 ]

2.4 Current Trends

In the mobile phone industry, technological development has been rapid. Traditional phones
have been transformed to smartphones, but Nokia has not modified. It was the initiator of the
early smartphones, however. In 2002, Symbian smartphones were launched, but the company
was unable to sustain the speed of changing technology. This is why Nokia has struggled. Apple
and Samsung both got hold of an outstanding game plan that Nokia couldn't get. A flagship
product has been developed by Apple and Samsung. Every year, these companies release a new
version of these products with additional functions. The consumers and prospective customers
of these brands keep an eye on the latest release until it is actually on the market. This
anticipation of the launch of the latest product with new features would increase the consumer's
interest in the product, and this is what is happening. [ CITATION Aam19 \l 1033 ] This
excessive growth over the period resulted in the company's management choosing between
innovations and funding for growth. This is why the company's production or research and
development department had virtually no money, and this is why the company was unable to
handle the launch of the new smartphones.

3. Discussion on Academic Theory

Nokia is a Finnish technology firm which is the world's largest mobile telephone manufacturer

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and supplier and holds that position for several years. The Nokia Company and its clients in B2B
and end-users and users must maintain a respectable approach to their company impulses. The
brand must create a technical differentiation and initiative based on its core brand competence.
Nokia must reinvent the brand, since its achievement is not known to the young and new
audience. As the markets indicate, saturation is based on the display case for substitution, and
Nokia must sell new goods on the market. Nokia will increase its emphasis on the brand image
of end users. Nokia should rework on specific long-term Brand Strategies, recover its lost
splendor and high brand equity value and consolidate it. [ CITATION Ahm16 \l 1033 ]

Some things below have been given to recover your lost brand equity:

3.1 Brand Reinforcement and Revitalization

Brand reinforcement primarily deals with brand equity preservation. It refers to the number of
activities in which businesses ensure that the development of brand equity does not depreciate
over time. Nokia reinforces its emblematic efforts to further grow its brand's reputation and
stature.[ CITATION MBA18 \l 1033 ] Nokia should use brand to inspire consumer recognition and
brand photos by continuously taking the sense of its brand to consumers. Nokia wants the
"Connecting People," brand, which is ideal for the smartphone lower-end market. In any case,
for different reasons, such as introduction of new technologies, or competitive innovations,
shifting consumer tastes and expectations, a well-designed reinforcement strategy fails from time
to time. In this case, the brands must return to their origins in order to reclaim the lost capital.
Nokia will continue to maintain an ongoing stream of developments, boost its relevance and
build its equity for long-term growth.

3.2 Brand Repositioning

Brand repositioning means message, value and marketing plan changes that are up to date with
changing demographics. In general, this involves improvements to the marketing mix, including
product, venue, price and promotion. Repositioning is undertaken to satisfy the desires and needs
of the customer. [ CITATION Sas14 \l 1033 ]
Nokia connects people by offering great and affordable mobile products that enable billions of
people worldwide to enjoy more of what life has to offer. It can also serve as a lens to help Nokia
see smoke options, to review company opportunities, including alliances, and to function, for

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MC5051NT Brand Management

example, as a policy instrument in innovation, a key field in which Nokia has struggled at the
right moment to deliver the right products. Nokia needs the leadership to prove (not to say) that it
can do the hard. Nokia's repositioning of the brand in terms of the maintenance and enhancement
of brand value and mixed repositioning activities emphasize the need to have a deeper
understanding of brand repositioning dynamics. A crucial region of innovation in which Nokia
failed at the right time to deliver the right products. Compounding this was Nokia's marketing
myopia and unable to cope with various strategies with a single brand approach. [ CITATION
Dea12 \l 1033 ]

CBBE Model
The CBBE model, which stands for consumer-based Brand equity, is also known as Keller's
Brand equity model. The CBBE model or the Brand Equity Pyramid is a pyramid that tells us
how to create brand equity through a clear understanding of your consumers and strategies. If the
company has a link to the market, it results in a positive brand share and greater prospects for
attracting and supporting consumers, thereby giving businesses and goods that are perceived to
be 'brands' a huge advantage.
Nokia should follow the following CBBE model for improving the brand:
 Brand identification: Brand recognition is how consumers perceive a brand and
differentiate between each brand and another. Nokia should be able to use a massive
marketing campaign to advertise its goods, which are unknown to customers.
 Brand Meaning: This second CBBE model is divided into 2 sections – factors which
determine the brand meaning for customers.
Brand Performance: Brand success is important to the client. Product reliability, customer
support, design and style, product pricing or service are critical for strong branding features.
Brand imaging: The image of the brand attracts the client because the brand is the eyes of
the client. Nokia should therefore be able to create a brand image.
 Brand Response: Nokia's customers had more anticipations of the company and the launch,
but there are negative feelings about the brand for some branding picture customers. If the
brand has so many buyers, Nokia has been best at selling the goods, but because of these
decisions the products would not sell on the market.

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MC5051NT Brand Management

 Brand Responsibility: The brands resonance is actions, beliefs and behavior, consumer
interest, brand relation and feeling. [ CITATION Hit19 \l 1033 ]

4. Secondary Research Findings

4.1 Brand Failure of Nokia
Nokia, as we learned about early mobile devices, became the first brand on the market. Nokia
has been on the market for a decade and has now and then launched new phone models. As a big
part of the overall market, Nokia offers network infrastructure. In the Nokia case study, to
emphasize the factors that contributed to the plight of the company. The organization is not
willing to show the students and trainees how to do the right things, as business students and
even practical trainees offer examples. This was the moment when Nokia's government, lenders
and consumers feared bankruptcy.
Let's take a closer look at the factors that have a part to play in the downfall of one of the 1990s'
leading smartphone developers.

NOKIA DID NOT ADAPT TO CHANGE:

In the mobile telephony industry technological development was rapid. Traditional smartphones
have improved, but Nokia has not changed accordingly. He launched the early smartphones,
however. However. The company launched Symbian smartphones in 2002, but could not handle
the speed of changing technology. This is why Nokia struggled.

LACK OF A STRATEGIC PLAN:

Both Apple and Samsung got the hold of the excellent game plan, which Nokia could not
manage to get. Apple and Samsung have created a flagship product. These companies release a
new version of these products every year with additional features. The customers of these brands
and the potential customers keep an eye on the new release along before it is actually in the
market. But such a situation was not created in the case of Nokia, and this ultimately led to the
failure of Nokia.

LACK OF INNOVATION
The company's management decided between innovation and growth financing through this

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excessive growth over the time. This is why the company's innovation or research and
development department was barely able to handle the launch of the new smartphones. In
general, the cell telephone features were more or less similar during the mobile period of
penetration, except for those for business communication. This was the key reason why the other
brands struggled to compete.[CITATION Placeholder1 \l 1033 ]

5. Discussion
In the Mobile phone markets Nokia was not able to retain a dominant position. Its decline in
mobile phones cannot be explained by a single reply. Management decisions, fragmented
company systems, profound internal rivalries and increasing bureaucratic forces have all been
wrong in preventing Nokia from defining the sifts from produced-based competition to platform-
based competition. Nokia has made so many wrong decisions, which have contributed to the
decline of its brand value today. As described above. Nokia's management team did not see how
software prevails over hardware. When business students, also realistic workers, give examples,
the company is not prepared to teach the students and trainees how to do the right things. At that
time, the Nokia government, lenders and customers were afraid of bankruptcy. The leadership of
Nokia is partially responsible for not translating their strategic wisdom, but Nokia also has
continued to invest more money in the wrong direction. [CITATION Placeholder1 \l 1033 ]

6. Recommendations
With the problems now identified, solutions are needed that mitigate any communications
problem and allow Nokia to return to the competitive market. The classical leadership also led
the organization, as workers should obey orders, to be resistant to changes. Other variables that
can affect their performance should be available to Nokia. The management should ask the
workers what to do instead of asking their staff what to do. You should be interested in
evaluating other variables that are sufficiently relevant to affect your strategies Nokia should
include them in decision-making, and monthly meetings in each department should be held to
document the input and suggestions of employees on current tactics. This offers them the ability
to share their views. Then Nokia will step away from the hegemonic link. Since Nokia has a
significant amount of market share, it needs to develop its product design. Today various
smartphone companies such as Samsung, Huawei, Xaiomi and others deliver unique and

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different products than other rivals If Nokia wants to return to the market again, they must
produce telephones with an unusual feature that is different and has an appealing design
according to various customer styles. The visibility should be improved and the publicity should
be used by all mass media. To build fashion mobile telephone, Nokia should join the mobile
brand like Dolce & gabbana. Nokia has the chance to raise sales and gain consumer loyalty as it
sells more apps like video games etc. via Nokia's website. The awareness of Nokia is very
strong, but there is a chance to increase it. This can be achieved through extensive campaigns of
communication.

7. References
Reference for business, 2021. Reference for business. [Online]
Available at: https://www.referenceforbusiness.com/history2/35/Nokia-
Corporation.html#:~:text=19th%2DCentury%20Origins,natural%20resource%2C%20its%20vast
%20forests.
[Accessed 20 01 2021].
Ahmer, A., 2019. Doers empire. [Online]
Available at: https://www.doersempire.com/why-nokia-failed/?
fbclid=IwAR3tYNz2g6IHXLYNKFCCw8JyxcdwNEvQtJsB5E_yJS2niaztNiZDgzTF_0M
[Accessed 23 01 2021].
Ahmer, A., 2019. WHY NOKIA FAILED?. [Online]
Available at: https://www.doersempire.com/why-nokia-failed/
[Accessed 30 January 2021].
Badr, A., 2016. How can Nokia reinvent the brand and build new equity?. [Online]
Available at: https://www.campaignlive.co.uk/article/nokia-reinvent-brand-build-new-
equity/1406773
[Accessed 30 January 2021].
Bhasin, H., 2019. Keller’s Brand equity Model – CBBE Model by Keller. [Online]
Available at: https://www.marketing91.com/kellers-brand-equity-model/
[Accessed 30 January 2021].
business, R. f., 2021. Reference for business. [Online]
Available at: https://www.referenceforbusiness.com/history2/35/Nokia-
Corporation.html#:~:text=19th%2DCentury%20Origins,natural%20resource%2C%20its%20vast
%20forests.
[Accessed 20 01 2021].
Crunch base, 2021. Crunch base. [Online]
Available at: https://www.crunchbase.com/organization/nokia
[Accessed 20 01 2021].
Crutchfield, D., 2012. Nokia: Four Steps to Brand Revival. [Online]
Available at: https://www.forbes.com/sites/deancrutchfield/2012/06/20/nokia-four-steps-to-
brand-revival/?sh=23565674204e
[Accessed 30 January 2021].
Disruptive innovation, 2021. Disruptive innovation. [Online]
Available at: http://disruptiveinnovation.se/?p=131
[Accessed 30 01 2021].

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GSmarena, 2020. Gsmarena. [Online]

Available at:
https://www.gsmarena.com/interbrand_most_valuable_brands_right_now_are_apple_amazon_
and_microsoft-news-45904.php#:~:text=According%20to%20the%20Best%20Global,by
%20Amazon%20and%20Microsoft%20respectively.
[Accessed 21 01 2021].
Huwaei, 2021. Huwaei. [Online]
Available at: https://consumer.huawei.com/en/press/news/2020/huawei-soars-in-brand-value-
goes-up-in-brandz-worlds-most-valuable-brands-rankings/#:~:text=Huawei%20is%20steadfast
%20in%20its,(nine%20percent%20increase%20YoY).
[Accessed 22 01 2021].
Marketing Evolution, 2021. Marketing Evolution. [Online]
Available at: https://www.marketingevolution.com/marketing-essentials/what-is-brand-equity-
marketing-evolution
[Accessed 20 01 2021].
Ni, S., 2014. Nokia. [Online]
Available at: https://prezi.com/x8nlmbzld645/nokia-brand-repositioning-mktg1126/
[Accessed 30 January 2021].
Ola Onikoyi, 2021. Ola Onikoyi. [Online]
Available at: https://olaonikoyi.medium.com/how-nokia-lost-its-pace-in-the-smartphone-race-
a22c0ff1d846
[Accessed 25 01 2021].
PHD essay, 2021. PHD essay. [Online]
Available at: https://phdessay.com/the-target-market-of-nokia/#:~:text=The%20target%20market
%20of%20Nokia%20is%20the%20college%20students%20who,for%20the%20mobile
%20phone%20category.&text=So%20we%20can%20see%20the,be%20the%20profit%20of
%20Nokia.
[Accessed 20 01 2021].
Team, M. S., 2018. Reinforcement. [Online]
Available at: https://www.mbaskool.com/business-concepts/marketing-and-strategy-
terms/11781-reinforcement.html#:~:text=Brand%20reinforcement%20refers%20to
%20an,concerned%20with%20maintaining%20brand%20equity.
[Accessed 30 January 2021].
Ukdiss, 2021. Ukdiss. [Online]
Available at: https://ukdiss.com/examples/analysis-on-nokia.php
[Accessed 20 01 2021].
Ukdiss, 2021. Ukdiss. [Online]
Available at: https://ukdiss.com/examples/analysis-on-nokia.php
[Accessed 25 01 2021].
Wezitey, 2021. Wezitey. [Online]
Available at: https://wezitey.initiativeblog.com/a-description-of-the-nokia-corporation-as-a-
mobile-communication-company-10053yr.html
[Accessed 23 01 2021].
Yahoo Finance, 2021. yahoo finance. [Online]
Available at: https://finance.yahoo.com/quote/NOK/profile/?
guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQ
AAAH9h5nqRkOM2gOBoY8gb5bgMxF0Iz_LXkvOcMvP5uwSxR2847xyHUgFQQmheGKjTwskk
ii5d-iQYEZAejQchQZFTuP0sYmgz77zuLRNaCwSPhuYyvCrJ7vljDSB2VA0PF
[Accessed 20 01 2021].
Zdnet, 2015. Zdnet. [Online]
Available at: https://www.zdnet.com/article/htc-shares-crash-brand-factories-and-buildings-

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were-worthless/#:~:text=Android%20smartphone%20maker%20HTC's%20market,at%20the
%20end%20of%20June.
[Accessed 20 01 2021].

8. Appendix
During the period 2004-2012, I collected some key statistics on the success of Nokia. Although it
is important to examine these statistics in more depth, a glance at them still provides a clear
understanding of what happened.

Nokia's sales volumes are seen in the first graph, both in emerging markets (China, Asia Pacific,
Middle East, Africa and Latin America) and in their overall sales volume. It should be noticed
how much of their market volume was actually distributed in developing countries.
Interestingly, in developed countries (Europe and the US), where the organization lost 47 percent
of its volume from 2008 to 2012 compared to 22 percent in developing economies, the fall is
much steeper.

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In terms of sales and operating profit, the following graph shows Nokia's financial performance:

Needless to mention, the company's market share has significantly decreased. It peaked at around
40 percent in 2007. In the years leading up to the release of smartphones, Nokia has gained
market share in a rising market.

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As seen below, declining volumes have indicated collapsing operating margins:

The decline in the average selling price is another, perhaps more significant, explanation of
Nokia's problem. If every phone sold produced EUR 110 in revenue in 2004, then, of course,
having just EUR 45 per telephone in 2012 will be a disaster for the company.

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Some of the decrease in the average selling price can, of course, be explained by growing
volumes in developed countries, but it's nonetheless clear that price competition has been fierce
over the years.[ CITATION Dis211 \l 1033 ]

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