Brand Management

CONFIDENTIAL
 Presented by

Chirag Shah (14)

NOKIA
 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
NOKIA

Vision
Voice Goes Mobile….If it can go mobile – it will

Mission
Connecting People
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 € 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
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 system“

• 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
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
SWOT Analysis On Nokia and
Samsung
Strengths of Nokia
 Strength of the corporate brand.
 Complexity improves its Competitive position
 Design, the branding and the technology
 Backwards compatibility - protection from a
Japanese onslaught
 Lending personality to its products (fashion
statement)
 Effective advertisement and market communication
 Not only a tool for business but being an item of
everyday convenience
 Strengths of Samsung

 New product concept to rollout in five months

 Catching the pulse of the consumer, offering good

designs & understanding Emotions

 Heavy investment in technology, product design, and

human resources

 Focus on innovative products for the high-end

market.
 Weakness of Nokia

 Lapse has opened up space for smaller competitors

 Potential threat from Microsoft’s entry into mobile

telephony

 Ericsson- king of wireless infrastructure

 Design to market takes more time

 Weaknesses of Samsung

 Not pro actively coming out with newer models

 Lack in product differentiation.

 Different models at different price points

 Focus on mass market instead of niche markets

 Not very user friendly designs.

 Opportunities of Nokia
 Highest growth in markets such as China and Latin
America

 Feature-loaded phones to act as an offset

 Providing value at a reasonable lifetime cost

 Life style marketing and segmentation

 Building a worldwide supplier network

 Preempting competitors in critical markets

 Opportunities of Samsung

 Distinguish its service from competitors.

 Offer product variations
 Demand for cell phones driven by the service
providers or carriers
 Tie up with service providers
 Lowering the price of a phone by just $20 in many
countries could increase its affordability by 43%.
(As per a study report)
 Threats of Nokia

 Biggest threat - “complacency”

 “Inflection point” - a disruptive technological change

 New competitors with different skills and potent brands

challenge

 3G will increasing competition between suppliers

 Cheaper midrange models from Micromax and others

 Threats of Samsung

 Motorola’s dominance in the U.S, Nokia’s popularity in

the European market, controlling more than half of the
world market

 Aggressive competitors, including Sony, Ericsson, and

Siemens eating into its share.

 Not keeping track of the new trends in the market

 Not an accessory and fashion statement

Product life cycle of NOKIA
Sales or
Profits
Maturity
Nokia Symbian
& N- Series
Decline
Nokia 30 & 40 Series

Growth Sales curve

Nokia E- series

Introduction

The Concept Phones

Time
Net Sales 2009
Nokia Mobile Phones
net sales by region

Europe Americas
& Africa 35%
46%

Asia Pacific
18%
Statistics…
• World's largest manufacturer of mobile
phone since 1998

• Market share -- 32% in Q2 2010

• Sales volume 250 million units in 2009

(total market volume 590 million units)

• employed 39,350 people in research

and development, representing
approximately 31% of the group's total
workforce
Industry Analysis
• Number of mobile subscribers in INDIA 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: 45.5%
 Samsung: 19.5%
 Micromax: 10.9%
 Sony: 10.1%
 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:

oNokia immediate geographic target is rural

India.
oThe total targeted population is estimated at
100 million.

Demographic:

oMale and female.

oAges 25-50, this is the segment that makes up
80% of the Nokia mobile phone market
 MARKET SEGMENTATION
• Entry level:(Rs 2,500-6,000)
Nokia targeted low income people and first time mobile buyers
in this series . Sets include are 1200,1208,1100,1110,1112 etc

• Classic Series:(Rs 7,000-17,000)

Nokia targeted decent people in this series . Sets include in this
series are 6300,6233,6120,3120 etc

• N gage series:(Rs 8,000-16,000)

Nokia targeted game lovers in this series . These sets include
game like play station ,PSP and Xbox
• Xpress music:(Rs 13,000-35,000)
In this series music lover are targeted. Sets are
5220,5310,5800,5610,5320 etc.

• N-series:(Rs 18,000-50,000)
This series is also called multimedia computer. Named as on step
ahead multimedia.Sets are N70,N73,N95,N96,N80,N81,N91 etc.

• E-series:(Rs 18,000-60,000)
This series is for business people. Sets include are
E51,E66,E71,E61i,E90 etc.

• Premium series:(Rs 80,000-1,500,000)

In this series nokia targeted people which show visual status. Sets
include in this series are Sephira arte,8800Gold,8800arts etc.
Consumer Segment

• Light Users
• Medium Users
• Heavy Users
BCG Matrix of NOKIA

N-Series Premium Series

Question
Stars
Mark

Cash Cows Dogs

Entry Level N-Gage

Joint Venture…
 Nokia Siemens Networks is a joint venture
between Nokia and Siemens AG on 19 June
2006.
 Nokia Siemens Networks services division is
based in INDIA
 Nokia Siemens Networks has operations in
some 150 countries
 They merge their mobile and fixed-line
phone network equipment businesses to
create one of the world's largest network
 Both company has a 50% stake
 The companies predicted annual sales of
€16 bn and cost savings of €1.5 bn a year by
2010.
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
Promotion Mix
• 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.
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.
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 “N Series”

“E Series” & “C 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.
Lifecycle …
• Globally Nokia’s market is at maturity, where as in
India it is still in the Growth stage.

Globally Placed
Here
In India
Rs. Placed here

Time

Product life cycle

Financial…
 Revenue €52.722 bn (2009)

 Operating income €4.566 bn (2009)

 Net income €3.988 bn (2009)

 Total assets €40.582 bn (2009)

 Total equity €16.510 bn (2009)

 Employees 120,827 in 120 countries (June

30, 2009)
 PRODUCT
• NOKIA N8
 USP FOR NOKIA N8

 A cool smart phone for the house of Nokia.

GROWTH OF THE PRODUCT

 A newly launched product but 7000 models already

sold

Pricing of the product

 Rs. 25,000
Promotion of N8
Conclusion