CONFIDENTIAL

Presented by
MOHAMMAD ROMAAN QAMAR MBA. SZABIST (ISB) 17 Jan. 2011 
0332-5128037

Presentation Include 
Why Nokia ?  History  Mission statement  Brand personality  Market Segmentation  Target Market  Positioning  4Ps  BCG Matrix  SWOT analysis 

Nokia Corporation is a Finland based multinational company  Headquarter -- Keilaniemi, Espoo, city neighboring Finland's capital Helsinki.  CEO -- Olli-Pekka Kallasvuo  Chairman -- Jorma Ollila.  Founder -- Fredrik Idestam in 1865.  Nokia started as a pulp, rubber and cable manufacturer

³ Nokia is world third richest company ´

LOGOS«
NOKIA Company logo, 1966. The NOKIA "arrows" logo before its Connecting People logo. "Connecting People" slogan, invented by Ove Strandberg.

Present Logo

HISTORY OF NOKIA 
It also provides the services for network operators.  Company recorded revenues of 41,121 Million ¼ in 2007 about 20.3% increase from 2006.  Company offers its products in 150 countries. Its HQ is in  Espoo, Finland and employees about 68,500 people . Other  company of Nokia are in China , Hungry , Germany , Korea and India

Financial«
‡ Revenue ¼50.722 bn (2008) ‡ Operating income ¼4.966 bn (2008) ‡ Net income ¼3.988 bn (2008) ‡ Total assets ¼39.582 bn (2008) ‡ Total equity ¼16.510 bn (2008) ‡ Employees 120,827 in 120 countries (June 30, 2009)

Nokia Industries«
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Paper products Tires (car and bicycle) Footwear (including Wellington boots) Communications cables Consumer electronics such as televisions Personal computers Electricity generation machinery Military technology and equipment Robotics Capacitors Plastics Aluminium Chemicals

Nokia products«
‡ Military communications and equipment
± Message device system³

‡ ADSL modems ‡ Digital television ± (digital set-top boxes) ‡ Personal computers (1980)

Nokia products«
‡ Mini laptops ± On August 24, 2009, Nokia announced that they will be entering the PC business with a high-end mini laptop called the Nokia Booklet 3G ‡ Internet Tablet ‡ GPS products Global Positioning System

NOKIA Accessories «
‡ Carrying and styling: carrying cases, phone jewellery ‡ Car solutions: car kits, car phones, mobile holders ‡ Headsets: audio adapters, bluetooth headsets, wired headsets, loopsets ‡ Memory cards and cables ‡ Music related products: speakers ‡ Navigation: navigation kits, car navigation ‡ Home and office: desk stands, imaging, wireless digital pens, wireless keyboards, mobile TV receivers ‡ Power: batteries, chargers, charger adapters

Concept Phones«
‡ Nokia is working on future of mobile with their new concept Nokia "Scentsory". ‡ This new mobile device uses the sense of smell, sight, hearing, and touch to create a multiscensory environment for the caller. ‡ Scentsory would be able to detect smells as well as radiate colors, lighting, and temperature of the caller with Dual screens and hidden camera

Product life cycle of NOKIA
Maturity
Nokia Symbian & N- Series Nokia 30 & 40 Series

Decline

Growth
Nokia E- series

Sales curve

Introduction
The Concept Phones

Time

Acquisitions«
‡ Since December 1997, Nokia has acquired 37 companies or businesses ‡ On August 5, 2009, Nokia acquire Cellity, a mobile software company ‡ In September, 2008, Nokia acquired OZ Communications of Canada

Acquisitions«
‡ In July 10, 2008, Nokia bought Navteq, a U.S.based supplier for a price of $8.1 billion ‡ In September 2007, Nokia acquire Enpocket, a supplier of mobile advertising technology ‡ In July 2007, Nokia acquired Twango

Net Sales 2009
Nokia Mobile Phones net sales by region

Europe & Africa 46%

Americas 35%

Asia Pacific 18%

Statistics«
‡ World's largest manufacturer of mobile phone since 1998 ‡ Market share -- 38% in Q2 2009 ‡ Sales volume 210 million units in 2008 (total market volume 520 million units) ‡ employed 39,350 people in research and development, representing approximately 31% of the group's total workforce

‡ Number of mobile subscribers in PAKISTAN has crossed the 250 million mark. ‡ Mobile phone production in India was expected to grow from 51 million units to 110 million units by 2011.
‡ Handset Market Share 
   

Nokia: 49.5% Sony: 10.1% Samsung: 12% Motorola: 9.9% Others: remaining

Marketing Strategies Nokia«
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Focused on Handset Manufacture only Enhance Product Portfolio Increase Distribution Channels Adjust Preferences for specific markets Customer Satisfaction Focused on Replacement Increase Commitment to Emerging Market Improve Collaboration on Designs Ensure Accountability and Quality Aggressive Pricing

Macro Enviroment of NOKIA
POLITICAL FACTOR:
Nokia reported spending $5.4 million on lobbying in the U.S. in 2007 and $2 million on lobbying in 2008.

ECONOMIC FACTOR:
Nokia had to change its functions from single market to global market due to collapse of Russian Federation.

SOCIAL FACTOR:
Nokia has been a member of the United Nations Global Compact since 2001

Macro Enviroment of NOKIA
TECHNOLOGICAL FACTOR:
Improvement or Changes in technology

LEGAL FACTOR:
Patents right on technology

ENVIRONMENTAL FACTOR:
Environmentally ethical considerations amongst suppliers. Life cycle impact of NOKIA throughout the supply chain

Segmentation Strategy 
Geographic:
o Nokia immediate geographic target is URBAN PAKISTAN o The total targeted population is estimated at 100 million. 

Demographic:
o Male and female. o Ages 25-50, this is the segment that makes up 80% of the Nokia mobile phone market

Consumer Segment
‡ Light Users ‡ Medium Users

‡ Heavy Users

BCG Matrix of NOKIA
N-Series
Premium Series

Stars

Question Mark

Cash Cows
Entry Level

Dogs
N-Gage 

Nokia uses a pricing strategy that best suits the product.  Market Penetration- Nokia 1100.  Market Skimming- N-95.  Hence, The Strategy which was used for N-Series & E-Series was Market Skimming.

Estimating cost ± Experience Curve Theory :

P1

P2

Price /Cost

P3

Experience Curve
T1 T2
T 3

Time Period / Units Produced

‡ Nokia has opened its retail outlet µNokia Priority¶ as well as many authorized dealers at various places.
Consumer

Manufacturer

Dealer

‡ AIDA in Nokia ± :
‡ A ± Attention : attract the attention of the customer. ‡ I ± Interest : raise customer interest by demonstrating features, advantages, and benefits. ‡ D ± Desire : convince customers that they want and desire the product or service and that it will satisfy their needs. ‡ A ± Action : lead customers towards taking action and/or purchasing.

Supply Chain Management 
Channels: Nokia > Distributer >> Whole seller >>> Retailer >>>> Customer

Product Promotion« 
Advertising: Through TV, Sign boards, Bill boards,
Radio, Newspaper, Broachers, Posters, Dummies and display stands  Discounts are provided to online Nokia purchasers through Nokia discount coupons or coupon codes  Commission is also provided to retailers on the sale of every Nokia cell phones and accessories.

‡ Public Relations ( PR )«
Nokia has strong PR. They keep on doing some or the other new events, programmes and publicity, so as to keep up with the brilliant image of the company and also to enhance the brand equity.

‡ Direct Marketing :
‡ Nokia does not perform Direct Sales activities on its official website www.nokia.com. ‡ Nokia use DEMO style of Direct Marketing. ‡ Nokia does not use Direct Mail or Telemarketing styles of Direct Marketing.

Packaging«
Packaging is important because it protects products as they make their way from factory to customers. y Attractive, Good & Secure Packing  During 2007, 15,000 ton packaging material has been saved by using smaller packaging.  Nokia have reduced the amount of printed material inside the box,  In 2007 Nokia began to increase the level of recycled content

Branding«
Nokia built its brand with high-end multimedia handsets for upscale buyers and low-priced phones for emerging countries. ‡ Branding Decisions : 
Nokia follows Umbrella branding ³N Series´ & ³E Series´  Logo shows their brand personality  Nokia focused on building customer, relationship and trust  Building friendship and trust is the heart Nokia brand

Quality«
Quality is at the heart of Nokia¶s brand promise, very human technology. ‡ Nokia¶s key quality targets are: 
For Nokia to be number one in customer and consumer loyalty.  For Nokia to be number one in product leadership.  For Nokia to be number one in operational excellence.

Emerging Markets«
‡ 1. Break out of cities to rural areas: Focus on areas, where the cost of building wireless infrastructure is more cost effective than in building a fixed line (China/Pakistan) ‡ 2. Focus on Youth: Imaging and games (China/Pakistan)

Lifecycle «
‡ Globally Nokia¶s market is at maturity, where as in Pakistan it is still in the Growth stage.
Globally Placed Here In Pakistan Rs. Placed here

Time

Product life cycle

THREATS 
China Mobile made Copy Of NOKIA Sets. Looking mainly at the competition that are taking away Nokia¶s market share. Orange, Vodafone and O2 and many other operators are globally selling their own brands of phone. Higher import charges.

Production Unit :
Networks Technology
China Finland Pakistan

Mobile Devices and Enhancements

Brazil China Finland Great Britain Hungary Pakistan Mexico Romania South Korea

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