19039775-Nokia

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Presentation Include Presentation Include

IntroductionIntroduction

BrandBrand PersonalityPersonality

MarketingMarketing MixMix

ProductProduct MixMix

MacroMacro EnvironmentEnvironment

STPSTP

StrategiesStrategies AdoptedAdopted

CompetitorsCompetitors

IssuesIssues

SWOTSWOT AnalysisAnalysis

CSR CSR

QuestionsQuestions ??????

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HISTORY OF NOKIAHISTORY OF NOKIA

ItIt alsoalso providesprovides thethe servicesservices for for networknetwork operatorsoperators..

CompanyCompany recordedrecorded revenuesrevenues of of 4141,,121121 MillionMillion ¼ ¼ inin 20072007

aboutabout 2020..33%% increaseincrease fromfrom 20062006..

CompanyCompany offersoffers itsits productsproducts inin 150150 countriescountries.. ItsIts HQHQ isis inin

Espoo,Espoo, FinlandFinland andand employeesemployees aboutabout 6868,,500500 peoplepeople ..Other Other

companycompany of of NokiaNokia areare inin ChinaChina ,, HungryHungry ,, GermanyGermany ,,KoreaKorea andand IndiaIndia

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Introduction Introduction

EvolutionEvolution of of MobileMobile

HistoryHistory

MissionMission

VisionVision

WhyWhy NokiaNokia onon TopTop ??

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NOKIA Company logo.

Founded in Tampere

in 1865, logo 1966.

A leading player in mobile communications all over the world,NOKIA first started operations in the early 1980s

Finnish Rubber WorksLtd, Helsinki:1898

The NOKIA "arrows"

logo before its

Connecting People

logo.

"Connecting People" slogan, invented by

Ove Strandberg.

H istory H istory

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H istory of NOKIA H istory of NOKIA

ººNokiaNokia isis aa FinlandFinland basedbased company,company, incorporatedincorporated inin19671967..

ººNokiaNokia startedstarted of of asas aa pulp,pulp, rubberrubber && cablecablemanufacturingmanufacturing companycompany byby Knut Knut FredrikFredrik IdestamIdestam inin18651865..

ººFinnishFinnish RubberRubber WorksWorks acquiredacquired NokiaNokia WoodWood MillsMills

Telephone

Telephone

&& Telegraph

Telegraph cablescables..

ººNokiaNokia CorporationCorporation createdcreated -- 19671967 -- paperpaper productsproducts--carcar tirestires-- personalpersonal computerscomputers -- cablescables..

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H istory of NOKIA«H istory of NOKIA«

ººNokiaNokia beganbegan developingdeveloping thethe digitaldigital switchswitch (Nokia(Nokia DX DX 200200)) whichwhich becamebecame aa successsuccess..

ººInIn 19701970,, NokiaNokia startedstarted takingtaking anan activeactive interest interest inin thethe

powerpower && electronicselectronics businessesbusinesses..

ººInIn 19871987,, consumerconsumer electronicelectronic becamebecame NokiasNokias majormajorbusinessbusiness..

ºº19911991 NokiaNokia -- agreementsagreements toto supplysupply GSMGSM networksnetworks --ninenine EuropeanEuropean countriescountries..

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H istory of NOKIA«H istory of NOKIA«

ººBetweenBetween 19921992 && 19961996,, thethe companycompany exitedexited fromfrom thetherubberrubber andand cablecable businessesbusinesses

ºº August August 19971997 NokiaNokia -- GSMGSM systemssystems toto 5959 operatorsoperators inin

3131 countriescountries..

ººItsIts thethe leadingleading manufacturermanufacturer of of mobilemobile devicesdevices..

ººNokiaNokia offersoffers aa widewide rangerange of of mobilemobile devicesdevices withwith thetheexperienceexperience inin music,music, video,video, imaging,imaging, gaminggaming andand aa lot lot moremore..

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S ome First for NOKIA in INDIA S ome First for NOKIA in INDIA

Entered in 1994Entered in 1994Nokia 2110Nokia 2110 first ever GSM callfirst ever GSM call

Operating officeOperating office New Delhi, Mumbai, Kolkata,New Delhi, Mumbai, Kolkata,Bangalore, Hyderabad, and AhmadabadBangalore, Hyderabad, and Ahmadabad

R&D facility in Bangalore, Hyderabad and MumbaiR&D facility in Bangalore, Hyderabad and Mumbai19951995 First mobile phone call made in India on aFirst mobile phone call made in India on a

Nokia phone on a Nokia network.Nokia phone on a Nokia network.

19981998 Saare Jahaan Se Acchha, first Indian ringtoneSaare Jahaan Se Acchha, first Indian ringtone

in a Nokia 5110in a Nokia 511020002000 First phone with Hindi Menu (Nokia 3210)First phone with Hindi Menu (Nokia 3210)

20022002 First Camera phone (Nokia 7650)First Camera phone (Nokia 7650)

20032003 First Made for India phone, Nokia 1100First Made for India phone, Nokia 1100

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S ome First for NOKIA in INDIA«.S ome First for NOKIA in INDIA«.

20042004 Saral Mobile Sandesh, Hindi SMS on a wideSaral Mobile Sandesh, Hindi SMS on a widerange of Nokia phonesrange of Nokia phones

20042004 First WiFirst Wi--Fi PhoneFi Phone-- Nokia CommunicatorNokia Communicator(N9500)(N9500)

20052005 Local UI in additional local languageLocal UI in additional local language

20062006 Nokia manufacturing plant in ChennaiNokia manufacturing plant in Chennai

20072007 First vernacular news portalFirst vernacular news portal

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M ission M ission

In a world where everyone can be

In a world where everyone can beconnected, we take very humanconnected, we take very human

approach to technologyapproach to technology

ConnectingConnecting isis about about helpinghelping peoplepeople toto feelfeel closeclose totowhat what mattersmatters.. Wherever,Wherever, whenever,whenever, NokiaNokia believesbelieves inincommunicating,communicating, sharing,sharing, andand inin thethe awesomeawesome potentialpotentialinin connectingconnecting thethe 22 billionbillion whowho dodo withwith thethe 44 billionbillion

whowho dont dont.. If If wewe focusfocus onon people,people, andand useuse technologytechnologytoto helphelp peoplepeople feelfeel closeclose toto what what matters,matters, thenthen growthgrowthwillwill followfollow.. InIn aa worldworld wherewhere everyoneeveryone cancan bebeconnected,connected, NokiaNokia takestakes aa veryvery humanhuman approachapproach toto

technologytechnology..

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V ision V ision

The Vision of Nokia:The Vision of Nokia:

OurOur visionvision isis aa worldworld wherewhere everyoneeveryonecancan bebe connectedconnected.. OurOur visionvision isis totoensureensure thatthat 55 billionbillion peoplepeople arearealwaysalways connectedconnected atat anyany givengiven pointpoint

andand toto achieveachieve 100100 foldfold moremorenetworknetwork traffictraffic

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B rand Personality B rand Personality

NokiaNokia focusedfocused onon buildingbuilding customer,customer, relationshiprelationship

andand trusttrust..

BuildingBuilding friendshipfriendship andand trusttrust isis thethe heartheart NokiaNokiabrandbrand..

LogoLogo showsshows their their brandbrand personalitypersonality..

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M arketing M ix : 4Ps M arketing M ix : 4Ps

Product Product

VarietyVariety

In every series of Nokia there are large numberIn every series of Nokia there are large numberof sets thus large variety. e.g. entry level includeof sets thus large variety. e.g. entry level include1200,1208,1100,1110,1110i,1112 etc1200,1208,1100,1110,1110i,1112 etc

QualityQuality

Nokia gain brand personality and market sharesNokia gain brand personality and market sharesbecause of its quality.because of its quality.

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4Ps«.4Ps«.

DesignDesign

Nokia sets are of various design such asNokia sets are of various design such as

Flip sets , Flat sets, Slide sets , Sets withFlip sets , Flat sets, Slide sets , Sets withrotating camera etcrotating camera etc

FeaturesFeatures

Each set of Nokia has its own features .Each set of Nokia has its own features .The models of Nokia are based onThe models of Nokia are based onfeatures. e.g. Nokia 1100 set hasfeatures. e.g. Nokia 1100 set has

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4Ps«.4Ps«.

Brand NameBrand Name

Brand name is written on each set.Brand name is written on each set.

PackagingPackagingOn packaging of Nokia set detailOn packaging of Nokia set detailinformation about the set is given andinformation about the set is given and

packing is made attractive by picture.packing is made attractive by picture.Each set has its own booklet withEach set has its own booklet withinformation about its features.information about its features.

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Price Price

Price targeting both the endsPrice targeting both the ends

Price range from Rs999 to RS 42700Price range from Rs999 to RS 42700

Pricing strategyPricing strategy

Nokia also offer cash allowances.Nokia also offer cash allowances.

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Promotion Promotion

Advertising:Advertising: Though TV , Sign boards , Bill boards ,Though TV , Sign boards , Bill boards ,

Radio and Newspaper Radio and Newspaper

Broachers , Posters ,Dummies andBroachers , Posters ,Dummies anddisplay standsdisplay stands

Personal selling:Personal selling: By product training to Distributer.By product training to Distributer.

Sales PromotionSales Promotion

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Place Place ChannelsChannelsNokia > Distributer > Whole seller > Retailer >Nokia > Distributer > Whole seller > Retailer >

CustomerCustomer

CoverageCoverage

Nokia is widely available all over INDIANokia is widely available all over INDIA

DistributerDistributer

Nokia main distributer are I2,United mobiles,Nokia main distributer are I2,United mobiles,Mobile zone and Advance telecom.Nokia mobilesMobile zone and Advance telecom.Nokia mobiles

are mostly available through every mobile outlet are mostly available through every mobile outlet

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Product Product M ix of Nokia M ix of Nokia �� 10001000² ²9000 series9000 series

�� Nokia 2000 seriesNokia 2000 series ² ² Basic seriesBasic series

�� Nokia 3000 seriesNokia 3000 series ² ² ExpressionExpression

seriesseries

�� NokiaNokia 5000 series5000 series ² ² Active seriesActive series

�� Nokia 6000 seriesNokia 6000 series ² ² ClassicClassicBusiness seriesBusiness series

�� Nokia 7000 seriesNokia 7000 series ² ² FashionFashion

and Experimental seriesand Experimental series

�� Nokia 8000 seriesNokia 8000 series ² ² PremiumPremiumseriesseries

�� Nokia 9000 seriesNokia 9000 series ² ²

Communicator seriesCommunicator series

(discontinued)(discontinued)

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M acro Environment of Nokia M acro Environment of Nokia

POLITICAL FACTOR POLITICAL FACTOR

ECONO M IC FACTOR ECONO M IC FACTOR

S OCIAL FACTOR S OCIAL FACTOR

TEC H NOLOGICAL FACTOR TEC H NOLOGICAL FACTOR

EN V IRON M ENTAL FACTOR EN V IRON M ENTAL FACTOR ::

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S egmentation S trategy S egmentation S trategy

GeographicGeographic::

oo NokiaNokia immediateimmediate geographicgeographic target target isis ruralrural IndiaIndia..

oo TheThe totaltotal targetedtargeted populationpopulation isis estimatedestimated at at 100100 millionmillion..

DemographicDemographic::

oo MaleMale andand femalefemale..oo Ages Ages 2525--5050,, thisthis isis thethe segment segment that that makesmakes upup 8080%% of of thethe

NokiaNokia mobilemobile phonephone market market accordingaccording toto thethe NOKIANOKIA LtdLtd..oo ProfessionalsProfessionals andand CollegeCollege studentsstudents..

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Consumer S egment Consumer S egment

Light UsersLight Users

Medium UsersMedium Users

Heavy UsersHeavy Users

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H eavy Users H eavy Users

OurOur target target segment segment isis heavyheavy usersusers

WeWe chosechose thisthis CategoryCategory becausebecause heavyheavy useruser havehaveabilityability toto buybuy ourour product product..

InIn thisthis categorycategory usersusers likelike latest latest productsproducts withwith

latest latest featuresfeatures..

HeavyHeavy usersusers want want somethingsomething newnew andand stylishstylish..

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Target M arket Target M arket

NokiaNokia hashas mainlymainly targetedtargeted

Target Target market market forfor thethe NokiaNokia mobilemobile phonephone isisbetweenbetween agesages 2020--4040..

WhoWho want want toto useuse SomethingSomething SpecialSpecial

InternationalInternational StudentsStudents

TeenagerTeenager andand BusinessBusiness classclass

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PO S ITIONING OF Nokia PO S ITIONING OF Nokia

NokiaNokia hashas createdcreated aa distinct distinct positionposition inincustomercustomer mindmind byby

NokiaNokia logologo....>>

SloganSlogan>> Know Know ourour past past.. CreateCreate thethe

futurefuture

Latest Latest RingRing ToneTone

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Competitors Competitors

Many Competitors in this areaMany Competitors in this area

�� MotorolaMotorola

�� Sony EricssonSony Ericsson

�� SamsungSamsung

�� LGLG

�� SharpSharp�� PanasonicPanasonic

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% Share% Share

Nokia 37.2%Nokia 37.2%

Motorola 17.3%Motorola 17.3%

Samsung 9.8%Samsung 9.8%

Siemens 8.5%Siemens 8.5%

SonyEricsson5.2%SonyEricsson5.2%

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RIVALRY AMONGRIVALRY AMONGCOMPETITORSCOMPETITORS

INDUSTRY GROWTH R ATE:INDUSTRY GROWTH R ATE: The industry has grown byThe industry has grown by just 10% during 2007. This is down from the 23% growth just 10% during 2007. This is down from the 23% growthrate seen in 2006.rate seen in 2006.

CONCENTR ATION AND B ALANCE:CONCENTR ATION AND B ALANCE: The major players areThe major players areBenQBenQ--Siemens, LG, Motorola, Samsung and Sony Ericsson.Siemens, LG, Motorola, Samsung and Sony Ericsson.

INFORMATION AL COMPLEXIT YINFORMATION AL COMPLEXIT Y: D: Devicesevices are becomingare becoming

more complex and getting features (picture, audio, video)more complex and getting features (picture, audio, video)that are outside the core competencies of traditionalthat are outside the core competencies of traditionalmanufacturers.manufacturers.

CORPOR ATE STAKES:CORPOR ATE STAKES: High stakes for the companiesHigh stakes for the companiesbecause of huge investments into the business.because of huge investments into the business.

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B ARG AINING POWER OFB ARG AINING POWER OFBUYERSBUYERS

BUYER INFORMATION:BUYER INFORMATION: Buyers have comparative informationBuyers have comparative informationabout the product in terms of price and features.about the product in terms of price and features.

BUYER CONCENTR ATION:BUYER CONCENTR ATION: Network operators are relativelyNetwork operators are relativelyconcentrated and large service providers such as Orange andconcentrated and large service providers such as Orange and

Vodafone have high bargaining power. Vodafone have high bargaining power.

SWITCHING COSTSSWITCHING COSTS: Individual buyers have low switching costs: Individual buyers have low switching costs

and are price or feature sensitive.and are price or feature sensitive.

PRODUCT DIFFERENCES:PRODUCT DIFFERENCES: Low degree of product differentiationLow degree of product differentiationand any new feature or technology is quickly imitated.and any new feature or technology is quickly imitated.

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B ARG AINING POWERB ARG AINING POWER

OF SU

PPLIERSOF

SU

PPLIERS

�� SWITCHING SWITCHING COSTSCOSTS:: A large number of suppliers for non critical A large number of suppliers for non critical

components.components.For critical components suppliers work closely with companies as theyFor critical components suppliers work closely with companies as theyinvolve joint development of specialty inputs and subinvolve joint development of specialty inputs and sub--systemssystems..

�� IMPACT ON DIFFERENTIATIONIMPACT ON DIFFERENTIATION :: CompaniesCompanies could switch supplierscould switch suppliersfor non critical components but are closely tied to them for criticalfor non critical components but are closely tied to them for critical

components and subcomponents and sub--systemssystems..

�� THREAT OF FORW ARD INTEGR ATION:THREAT OF FORW ARD INTEGR ATION: Suppliers do not pose anySuppliers do not pose anycredible threat of forward integration even though they are outsourced.credible threat of forward integration even though they are outsourced.

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THREAT OF NEW ENTR ANTSTHREAT OF NEW ENTR ANTS--ENTRY B ARRIERSENTRY B ARRIERS

�� PROPRIETARY PRODUCT DIFFERENCES:PROPRIETARY PRODUCT DIFFERENCES: TechnologyTechnology and product and product designs are protected by patents.designs are protected by patents.

�� BR AND IDENTIT Y:BR AND IDENTIT Y: PowerfulPowerful brand identity of the existing playersbrand identity of the existing playersdeveloped through advertising and product excellence.developed through advertising and product excellence.

�� ECONOMIES OF SC ALE:ECONOMIES OF SC ALE: HighHigh fixed costs means that volume isfixed costs means that volume isessential to companies.essential to companies.

�� C APITAL REQUIREMENTSC APITAL REQUIREMENTS:: Activities such as R&D and advertising Activities such as R&D and advertisingrequires large capital commitments.requires large capital commitments.

�� EXPECTED RETALIATIONEXPECTED RETALIATION

:: Existing competitors have the financialExisting competitors have the financialclout to deter new entrants.clout to deter new entrants.

�� ACCESS TO NECESS ARY INPUTS: ACCESS TO NECESS ARY INPUTS: SuppliersSuppliers work closely withwork closely withexisting companies and therefore critical components may only beexisting companies and therefore critical components may only beavailable at a premium.available at a premium.

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Basis of CompetitiveBasis of Competitive

Advantage Advantage Product competitivenessProduct competitiveness : Nokia profitably competes in all: Nokia profitably competes in all

mobile device segments from entrymobile device segments from entry--level to highlevel to high--end. It has theend. It has the

broadest product portfolio in the market.broadest product portfolio in the market. Customer satisfaction :Customer satisfaction : Nokia uses customization to gain greaterNokia uses customization to gain greater

customer satisfactioncustomer satisfaction

R&D effectivenessR&D effectiveness : Nokia spent about USD 3.4 Billion on R&D.: Nokia spent about USD 3.4 Billion on R&D.

DemandDemand--supply network alignment :supply network alignment : Nokia captures itsNokia captures its

potential upside in highpotential upside in high--demand situations by aligning its demanddemand situations by aligning its demand--supply network.supply network.

EndEnd--toto--end capabilityend capability : Nokia systematically leverages its end: Nokia systematically leverages its end--toto--end capability by integrating mobile devices, applications andend capability by integrating mobile devices, applications andinfrastructureinfrastructure

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STRATEGIESSTRATEGIES

Price StrategyPrice Strategy

Market StrategyMarket Strategy

PushPush

PullPull

Battery StrategyBattery Strategy

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PRICING STRATEGY PRICING STRATEGY

Pricing Strategy MatrixPricing Strategy Matrix

Premium PricingPremium Pricing

Penetration PricingPenetration Pricing

Economy PricingEconomy Pricing

PRICE SkimmingPRICE Skimming

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B ATTERY ISSUEB ATTERY ISSUE

ThreeThree typestypes of of batteries batteries areare currentlycurrently availableavailable for for

consumersconsumers

�� OriginalOriginal Nokia Nokia batteries batteries..

�� BatteriesBatteries manufacturedmanufactured by by thirdthird parties parties soldsold under under

ownown brand brand or or nono--brand brand

�� CounterfeitCounterfeit batteries batteries

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Nokia Batteries Meet ALL Nokia Batteries Meet ALL

International Safety StandardsInternational Safety Standards�� ContinuousContinuous controlcontrol of of thethe production production andand intensiveintensive

product product testingtesting..

�� OriginalOriginal Nokia Nokia batteries batteries complycomply withwith allall internationalinternationalstandards,standards, suchsuch asas ULUL20542054,, ULUL16421642,IEC,IEC 6095060950 etcetc..

�� ManufacturedManufactured withwith safetysafety circuit,circuit, highesthighest qualityquality

materials,materials, correctlycorrectly designeddesigned safetysafety ventvent andand clean,clean,

stablestable manufacturingmanufacturing process process..

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Cases of Exploding BatteriesCases of Exploding Batteries

�� 3030--4040 casescases globallyglobally of of explodingexploding nonnon--originaloriginal batteries batteries..

�� PrimaryPrimary rootroot causecause of of nonnon--originaloriginal battery battery failurefailure isis

internalinternal shortshort circuitcircuit inin thethe cellcell..

�� VastVast majoritymajority of of shortshort circuitscircuits causedcaused by by ³traumatic³traumatic

event´event´ (i(i..ee..,, droppingdropping thethe phone) phone) whichwhich jeopardizes jeopardizes

integrityintegrity of of poorly poorly manufacturedmanufactured batteries batteries..

�� InIn eacheach andand everyevery case,case, thethe battery battery inin questionquestion hashas proved proved toto be be aa nonnon--originaloriginal battery battery (either (either thirdthird--party party

or or counterfeit)counterfeit) whichwhich diddid notnot includeinclude industryindustry

standardstandard safetysafety measuremeasure..

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Nokia¶s Response to Faulty & Illegal Nokia¶s Response to Faulty & Illegal

BatteriesBatteries�� Nokia Nokia took took allall possible possible actionsactions toto ensureensure customer customer

safetysafety andand satisfactionsatisfaction..

�� LaunchedLaunched customer customer serviceservice program program toto helphelpconsumersconsumers andand retailersretailers recognizerecognize nonnon originaloriginal

batteries batteries..

�� ReplacedReplaced thethe batteries batteries thatthat werewere manufacturedmanufactured duringduring

thatthat period period withwith originaloriginal oneone && thatthat tootoo freefree of of costcost..

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SWOT ANALYSISSWOT ANALYSIS

STRENGTHSSTRENGTHS

�� The Leader in the IndustryThe Leader in the Industry

High quality and professional team in the HRDHigh quality and professional team in the HRDDept and a veryDept and a very strong R&D Unit.strong R&D Unit.

�� Strong Financial Backing.Strong Financial Backing.

�� Great features of Nokia Handsets.Great features of Nokia Handsets.

�� Strong Customers Relation.Strong Customers Relation.

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WEAKNESSWEAKNESS

�� Heavy in weight ( Most Models ).Heavy in weight ( Most Models ).

�� Expensive than other competitors.Expensive than other competitors.

�� Big in Size ( Difficult Handling )Big in Size ( Difficult Handling )

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OPPORTUNITIESOPPORTUNITIES

�� Targeting right customers at right time.Targeting right customers at right time.

�� Increase their presence in the CDMA market, whichIncrease their presence in the CDMA market, which

they are just entering, as well as 3G and Edge.they are just entering, as well as 3G and Edge.�� Can increase their Growth rate by reducing their Can increase their Growth rate by reducing their

profit ratio. profit ratio.

�� Tax ReductionTax Reduction

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THREATSTHREATS

�� Strong Competition.Strong Competition.

�� Saturation in Current MarketSaturation in Current Market

�� Challenges of Continuous TechnologicalChallenges of Continuous Technological

Development.Development.

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CORPORATE SOCIALCORPORATE SOCIAL

RESPONSIBILI

T Y RESPONSI

BILI

T Y

EnvironmentEnvironment

--RecyclingRecycling--PackagingPackaging

--TransportingTransporting

Nokia helping handsNokia helping hands

--Blood donationsBlood donations

--Fund raisingFund raising--Volunteering at hospitals Volunteering at hospitals--Arranging activities for under Arranging activities for under privelegeprivelege

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CSRCSR contdcontd

CORPORATE GIVINGCORPORATE GIVING

--Disaster relief Disaster relief *drought in*drought in EuthopiaEuthopia

*Sichuan earthquake in China*Sichuan earthquake in China*Cyclone*Cyclone nargisnargis in Myanmarin Myanmar

--Disaster recoveryDisaster recovery

*Southeast *Southeast asianasian TsunamiTsunami*Earthquake in Pakistan*Earthquake in Pakistan

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Conclusion Conclusion

Targeting Millions of internet usersTargeting Millions of internet users

Low cost web enabling by 2010Low cost web enabling by 2010

Focusing on the lower end of the society.Focusing on the lower end of the society.

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THANK YOU!!!THANK YOU!!!

19039775-Nokia

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