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NOKIA INTERNATIONAL CARE PLAN OFFER 2013 Complete Recommendation

May 09, 2015

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Marketing

Marine Escande

NOKIA INTERNATIONAL CARE PLAN OFFER
Grade: 17/20 ISCOM 2013
Complete Analysis & Recommendation

Designing an International and attractive Care Plan offer

Concept: A 4 level care plan with different options to choose.

Positioning: An online and in-store, customisable offer that brings collective solutions
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Summary PART I

/ – Care service market                      p.4 A. Consumers attitudes and experiences p.4

B. Nokia Care services and competitors p.5 C. Long-term challenges p.6

D. Problem p.6  

// - Strategy p.7  

A. Targets and objectives p.7 B. Nokia Care Positioning p.8

/// – Recommendation p.9

A. Nokia Care offering p.9 1.1. STAR OFFER p.9 1.2. COMET OFFER p.10 1.3. PLANET OFFER p.11 1.4. UNIVERSE OFFER p.12 B. Online p.13 1. Nokia Care website p.13 2. Nokia Care App p.14 3. Facebook & Twitter p.15 C. Nokia Care In-store p.15 D. Online communication p.16 E. In-store communication p.17

/V – Planning p.18

V – Budget p.18

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PART 2: Russia extended warranty

/ - Russian market p.19 A. Mobile market p.19 B. Nokia position p.19 C. Use of new media p.20 D. Insights p.20

// – Strategy p.21 A. Extended warranty offer p.21 B. Online communication p.23 1. E-mailing p.23 2. Ambassadors p.23 3. Banners & SEM p.23 4. Video p.24 C. POS Campaign p.24 1. Packs p.24 2. Nokia retailer Tour p.24 3. Event p.24

/// – Planning p.25

/V – Budget p.25

V – Measures p.26

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PART I / – Care service market   A. Consumers attitudes and experiences Nokia brand Nokia is a Finnish firm created by the fusion of 3 companies. In 1992, they chose to focus their activity on the phone and put aside the rest of their work. The biggest success of the brand was the 3310 model, especially for its sturdiness and its games like Snake and others. Today, people willing to get a new phone still choose Nokia for several reasons, not only for its solidity but also for the functional and effective applications. It is also recognised for its innovation sense and its now famous motto: Connecting people. Human has always been at the core of the strategy. As a result, they enjoy celebrating the difference of each person and design product that can adapt to everyone’s needs. For 14 years, Nokia was considered as the 1st phone manufacturer in the world. Unfortunately, it has been outdistanced by Samsung in 2012.   Experiences towards Nokia Care Positive Negative

à Confusion on the post-purchase service. Customers often accuse their telco operators instead of accusing their phone manufacturers. à Nokia customers like the fact that the company is investing a lot of money in the research and development department. They really enjoy their ability to create innovation. à Plurality of opinions, positive and negative ones. Actually, it is a brand that people like to talk about.

à The post-purchase service like the repair service is very long. à A lot of people declared other problems on their phone after a repair, that they did not have before. They had to send their phone back several times or need to get a new phone. à Different device models have the same problems. à People cannot negotiate with the repair staff. It is impossible to cast doubt on their assessments. They do not need to give evidence of their analysis and you have to trust them : customers feel trapped by the brand.

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Nokia phones’ range is really wide in order to target every customer needs and budgets. Nokia phones used to be preferred by professionals, but today the brand is working to change this trend by proposing attractive designs and several applications and then conquer new market shares. The customers opinions towards Nokia Care service are divided: many negative points of view were given about the post-purchase service, especially concerning the repair quality, the repair delays and the communication between the repair service and the customers. However, many opinions expressed satisfaction about the way customers were received by the Nokia Care Staff. Insights

§ People cannot live without their phones. They need a fast and efficient repair service. § It is always difficult to stay in touch with the repair service, and customers are not

informed day by day (or step by step) about the repair’s evolution. When a customer does not get information back, he thinks that the repair service has abandonned him.

§ They are looking for listening and attention. B. Nokia Care services and competitors

DIAGNOSTIC

NOKIA o 734 Nokia Care Centres:

covering 499 towns including

201 rural Care Centres

o 222 Collection Points

o Software updates

o Download

o Discussions

o Repairs

o Recycling

o Hotline / Email

o Facebook / Twitter

o Livechat

o FAQ

o Application (Tips & tricks and

Help)

All supports are not

available in every

country.

There are 30 millions

of repairs for 60

millions drops.

For repairs:

If the device is within

24-month-warranty,

Nokia care will make

sure it is up and

running within 5-

working days (loan

phone subject to

availability).

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C. Long-term challenges § Increase market shares

§ Gain new customers

§ Keep the position in the mobile trio manufacturers, siding Apple and Samsung

§ Design long-lasting services to be radically distinguished from the competitors

D. Problem How can Nokia create a distinctive and attractive International Care offer

and an extended warranty whereas the company is facing powerful competitors and different consumers insights in each country?

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// - Strategy A. Targets and objectives Main group target: Nokia phone users, in-warranty and out-of-warranty à Objectives:

§ Inform about the new Nokia Care offer and encourage subscription. § Lead consumers to store and increase traffic and sale - as well as the online traffic § Develop loyalty § Create a Word Of Mouth process around the service and gather people in a community

Secondary group target: Professional Nokia users à Objectives:

§ Inform about the new Nokia Care offer § Attribute distinctive qualities to the new Nokia Care offer § Transmit confidence and security values

Influencer group target:

- Nokia international employees, - Press, - Opinion leaders, - Bloggers, - Influencers in the telco and communication markets.

à Objectives:

§ Inform about the specificity of the new program § Encourage to promote the Nokia Care offer § Increase visibility of the digital and in-store plans

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B. Nokia Care Positioning Concept: Flexible and customisable offer. Positioning: Nokia, an online and in-store, customisable service that brings collective solutions. Promise: Nokia Care, the choice of a customisable service. Justification: Finally customers have a choice through different options for a service. Nokia Care presents its new range of services composed of 3 various offers to bring a real added value to the brand’s products and accessories. In this novelty also comes an offer dedicated to the professionals to maximize the use of mobile phones in companies and guarantee a maximum number of services. Nokia suggests an assessment and services which simplify the users life to lengthen those of their mobiles. Baseline: Nokia Cares about your choices

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/// – Recommendation

A. Nokia Care offering So as to celebrate each Nokia user’s personality and satisfy their needs, we decided to design a flexible offer. Actually, it is a paid offer that allows people to choose add-ons to create their personal warranty. We have created different levels of prices that allows every customer, whatever his budget, to subscribe to the option of his choice and benefit from new advantages. Here are the complete presentation of the 4 levels of the New Care offering: 1.1. STAR OFFER We have designed this offer for the Nokia users who want to provide a basic care program for their Nokia phone. ✩ Warranty

- This care program guarantees your device for 2 years. - It also guarantees your charger, your desk stand, your battery and your cover for 6

months. - Your handset, your cable and your softwares are guaranteed for 3 months. - When you need your phone -or one of the items mentioned above- to be repaired, you

have to submit it to any Nokia Care centre of your country (not necessarily the one where you’ve bought your phone).

- If the repair duration exceeds 3 weeks, Nokia will provide you a loan phone of the same quality.

- If you want to know the evolution of your phone repair, your phone has to be registered online on the Nokia Care website.

- This warranty is nominative and cannot be passed to anyone, whatever the conditions. ✩ Online registration As soon as you will be logged on your Nokia Care private space, you will be provided a 5 Go online storage, where you will be able to save files such as pictures, videos, messages or even contacts. ✩ Service

- Thanks to this program, all your data is secured. - Once a month, you can fix an appointment in-store for a 2 hours time-slot where you will

be assigned a personal expert to discuss about the security of your data and he will also advise you on how you should deal with them.

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✩ Extra For 2€ more, the Starbucks application can be installed on your phone, allowing you to order your beverage on your mobile before picking it up in the nearest Starbucks café around you. ✩ Price: 100€- A 20€ discount will be given to the customer at the end of the contract to buy a new phone. 1.2. COMET OFFER We have designed this offer for the Nokia users who want to provide a medium care program for their Nokia phone. ✩ Warranty

- This care program guarantees your device for 3 years. In this offer, you can choose your program of warranty. Either you can choose to guarantee your phone against one damage presented below, in an unlimited number of interventions during the 3 years of warranty:

▴ Theft or loss ▴ Water damage ▴ Food or chemical damage ▴ Dropping damage

OR you can choose to guarantee your device against 2 damages listed above but in a limit of 3 interventions during the 3 years of warranty.

- It also guarantees your charger, your desk stand, your battery and your cover for 1 year OR you also have the choice to rather have the possibility to change one of these equipments twice (or 2 different items once), during the 3 years warranty of your phone.

- Your handset, your cable and your softwares are guaranteed for 6 months OR it offers you one replacement of one of the item as new.

- When you need your phone -or one of the items mentioned above- to be repaired, you have to submit it to any Nokia Care centre of your continent (not necessarily the centre where you’ve bought your phone). For example, if you are living in Russia but travelling in Asia, you can submit your phone to repair in the Nokia Care centre of Tokyo.

- If the repair duration exceeds 2 weeks, Nokia will provide you a loan phone of the same or higher quality as the one you gave to repair, with all your data retransferred on it OR you can either choose to get your phone repaired quicker, in only one week.

- You will automatically be notified by email as soon as Nokia will receive your phone and start to repair it. You can also follow online, on the Nokia Care website, the evolution of your phone repair.

- You can pass this warranty to someone else (to one of your family members, friends or sell it with your phone to someone else) by changing the owner information on your online registration OR you can transfer of the ratio of your remaining warranty period OR if you are buying a new Nokia phone before the end of your care offer, you can guarantee it thanks to the transfer of the remaining warranty period.

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✩ Online registration As soon as you will be logged on your Nokia Care private space, you will be provided a 25 Go online storage, where you will be able to save files such as pictures, videos, messages or even contacts. ✩ Service

- Thanks to this program, all your data is secured. - You can come to any Nokia Care centre on your continent anytime and ask for a

personal consultation with an expert, within the limit of the staff availability (without appointment). ✩ Extra For 2€ more, the Starbucks application can be installed on your phone, allowing you to order your beverage on your mobile before picking it up in the nearest Starbucks café around you. ✩ Price: 200€ - A 30€ discount will be given to the customer at the end of the contract to buy a new phone

1.3. PLANET OFFER We have designed this offer for the Nokia users who want to benefit from a prestige care program for their Nokia phone. ✩ Warranty

- This care program guarantees your device for 4 years. In this offer, you can choose your program of warranty. Either you can choose to guarantee your phone against all the damages presented below, in an limited number of interventions during the 4 years of warranty:

▴ Theft or loss ▴ Water damage ▴ Food or chemical damage ▴ Dropping damage

OR you can choose to guarantee your device against 2 damages listed above but in a limit of 4 interventions during the 4 years of warranty.

- It also guarantees your charger, your desk stand, your battery and your cover for 18 months OR you also have the choice to change one of these equipments three times (or 3 different items once), during the 4 years warranty of your phone.

- Your handset, your cable and your softwares are guaranteed for 1 year OR it offers you 2 replacements of one of the item as new (or 2 items replaced once as new).

- When you need your phone -or one of the items mentioned above- to be repaired, you have to submit it to any Nokia Care centre in the world (not necessarily the one where you’ve bought your phone). For example, if you are living in USA but travelling in France, you can submit your phone to repair in the Nokia Care centre of Paris.

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- While your mobile phone is getting repaired, Nokia can provide you a loan phone of the same or higher quality as the one you sent as soon as Nokia received it regardless of the repair duration, with all your data retransferred on it. OR Nokia will do its best to fix the problem within 5 days (not including shipping days).

- You will automatically be notified by email as soon as Nokia will receive your phone and start to work on it. You can also follow online, on the Nokia Care website, the evolution of your phone repair.

- You can pass this warranty to someone else simply by notifying the Nokia Care hotline or Nokia Care centre of your choice of the change of ownership by mail or phonecall OR you can be refund of the ratio of your remaining warranty period OR if you are buying a new Nokia phone before the end of your warranty period, you can guarantee it thanks to the transfer of the remaining warranty period of your former phone. ✩ Online registration

- The registration of your phone is automatic as soon as you buy your phone thanks to your contract information.

- You will be provided a 50 Go online storage, where you will be able to save files such as pictures, videos, messages or even contacts. ✩ Service

- Thanks to this program, all your data is secured. - You can come to any Nokia Care centre on your continent anytime and ask for a

personal meeting with an expert, within the limit of the staff availability (without appointment). You can also choose to set an appointment beyond the opening hours (8 p.m to 10 p.m).

- The abusive use of your phone (more than 6 hours call a day) is covered and fully guaranteed.

- As soon as you contract this program, you will be able to download the Starbucks application for free on your device, that allows you to order your beverage on your mobile before picking it up in the nearest Starbucks café around you.

- Revival games are available for free on your phone thanks to this care offer such as Snake, Space Invader, Brick-breaker etc. to perpetuate the Nokia spirit. ✩ Price: 300€ - A 50€ discount will be given to the customer at the end of the contract to buy a new phone. 1.4. UNIVERSE OFFER This offer only concerns the pro users (either self employed or employee). It can be contracted by the worker himself or provided to him by the company that employs him. ✩ Warranty

- In this care offer, there is no limit of duration in the warranty as the employee or the company pays a monthly subscription and is not engaged on the long term. The phone is guaranteed as long as the payment is repeated.

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- When a problem is recorded, the owner can either submit is phone (send it by postmail to Nokia Care, come to any Nokia Care around him) OR call the hotline to ask for a carrier to come to his office and pick it up (extra fees).

- Any kind of damage is covered (theft, water damage etc.) in a limit of 1 repair per month or 1 change per year, and under the condition that the repair is not superior to the price of the phone.

- A loan phone is immediately provided to the owner, with all his data transferred on it. ✩ Online registration

- The registration of the phone is automatic as soon as the employee gets his phone, thanks to the information the company would have given in the contract.

- The employee will be provided a 150 Go online storage, where he will be able to save professional files such as text documents, presentations, pictures etc. ✩ Service

- Thanks to this program, all data is secured. - Conferences can be organised on demand by the company especially for the business

users, dedicated to data securing in order not to disclose any important information on the company

- A package of applications will be installed on the device of the business user in order to optimise his work: Microsoft Office for mobile, Booking, Evernote, Exchange, Cisco Webex. ✩ Price: 30€/month/per phone, +5€ per month for the international service.

B. Online 1. Nokia Care website

§ Technique In order to improve the cross-approach of the Nokia Care offer, we suggest to create its dedicated website. The brand needs to work deeply on the website structure and on the keywords (SEO). We also advise you to create a hierarchy in the content displayed on the website. Conten shoud be organised in sections. As a matter of fact, the website needs to be developed in a webresponsive logic, which will permit to save money (rather than creating another application). Finally, you should work on the backlinks of the website. This technique will help the website to appear on the 1st page of Google researches. The name of the domain for this new website will be Nokiacare.com. It has to be a “.com” domain so as to be available all around the world. All the translated versions, one for each country, will be gathered on this global website. Each country will be able to read the website in his own language thanks to a dedicated menu.

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§ Operation The first goal of the website is to register your phone online so as to benefit from specific advantages. When you will register your phone online, you will have access to your personal account, on which you can synchronize your data and other digital content. The different tabs to navigate through the website will be Home, Offering, Assistance, Services and Download.

- Offering: In the offering part, you will have access to the description and available options of each offer. You can also subscribe to one online and benefit from former owners advice on your future services.

- Assistance: In the assistance part, we bring a solution to different problems. You will find a FAQ, that will help people looking for information by themselves. If they want to discuss with an adviser, they will find a chat and forums classified in different topics. Every answer will be provided by non-expert people, that is to say influencers. The aim is to increase communication exchanges and mutual assistance. The more they answer, the more they will be rewarded and then ranked through a “Most active Nokia users” list. After that, people will be able to join them directly through their profile. Their opinion and participation will be shown to other members thanks to badges. If people want to talk to a Nokia expert, of course it is possible through different means:

▴ A module with the avatar of an expert (interactive virtual adviser) will provide professional answers. ▴ Video call via Skype ▴ Contact page with: the hotline per country, postal address, online forms, location of Nokia centers and authorized retailers.

- Services:

We also wanted to make life easier for Nokia users, that is why this offer provides a “Phone resale” service. Via this interface, you will be able to estimate the price of your device and the associated Nokia Care offer. It will provide the price you sould sell your phone and its warranty. Another interface will allow people to post ideas, so as Nokia can develop new services. You will also be able to subscribe to the newsletter.

- Download: People will have access to video tutorials to help them dealing with their phone. They can also download the synchronisation software, the different updates, new applications etc. on this platform. Finally, they will be able to find all the phone guides, as well as Nokia engagements. 2. Nokia Care App The Nokia Care mobile application consists in 4 different screens, including: tips & tricks, support, scan analysis + contact form. This option has been created to diagnose the

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mobile phone and determine where the dysfunction comes from, and if it is possible to fix it yourself before sending it to the technical support. The Nokia Care app is also available offline A connection is not required to launch this Nokia Care app, except the contact form. 3. Facebook & Twitter Nokia Care already has fanpages for this service, but there are too many different platforms. Nokia needs to develop a global approach on Facebook. It implies that Nokia Care should create a unique page. It will be mainly written in English, but people will be able to post comments in their own language. The same process will be developed on Twitter. Contents should be displayed weekly so as to get everyone’s attention. We will use these 2 platforms to post information and collect Nokia users ideas. As the Nokia Care website, they will help people solving their problems. Nokia will post polls to get answers and develop an exchange. Ambassadors will give piece of advice and hear people requests’. Nokia needs to hire several community managers so as to maintain communication. They will be in charge of the activity of the pages by developing contests, open questions and other. Nokia needs to create a formal editorial policy.

C. Nokia Care In-store Global advice

§ At least one centre per country Nokia needs to create a post-purchase and repair expert pole in each country in order to standardise the offer. One of our insights was that mobile phone users hate to talk with a foreign post-purchase service. Nokia users need to talk to experts from their own country. With this process, Nokia will improve its customer relationship results because people will feel understood and accompanied. Nokia should do the same for the hotline so as people can join easily the expert team of their own country. No additional charges will be generated for the call. à No call centre will be located abroad, no answers will be provided from foreigners neither from non Nokia experts.

§ Outfit Experts from the centre should change their outfit. Today, they are wearing blue tee-shirts. The problem is that Apple is doing exactly the same thing. As the colors are similar, we suggest Nokia to switch to green shirts. It will allow Nokia to distinguish its team from the competitors.

§ In-store As we have a cross-approach on this project, we’ve also developed in-store services. Our first idea, concerning stores is to design synchronisation and battery terminals. These will

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help people synchronising their data into the centre with an expert that will provide pieces of advice to secure them. Once more this new service aims to facilitate Nokia users lives. The use of these terminals is free. If people want to transfer their data, they just have to plug their phones and log in. Their data will automatically be transferred on Nokia servers. They can also use the terminal to download updates for their phone. We know that phones are always running out of battery, therefore people can charge their phone via the terminal, for free. We also want to create a positive atmosphere in centres. We suggest Nokia to design lounge spaces into centres so as people can relax and share good times. In this lounge, new Nokia phones will be presented and everybody will be allowed to try it for free, and have a good coffee.

§ Professional process Professional should be particularly pampered. Expert from each centre need to have a strong personalised relationship with important professional customer. The latter have unlimited access to Nokia expert and if they need a particular intervention, they can ask to Nokia experts to visit them at their company office for a personal meeting. In-store, professional will be welcomed first. Nokia can also create presentation on data security for example, in which exclusively professionals will be invited. Professionals often finish their working-day late: if they want to go to a centre, they can call it prior in the day and ask them a personal meeting after open hours. D. Online communication

§ Direct marketing An e-mailing campaign will be created with a hyper-customised approach. Nokia users will receive a mail about the new care offering and a special discount if they choose to subscribe online (-25% for example).

§ SEM To work on the visibility of this new platform, you need to set up a SEM campaign through different Google Adwords campaigns, for countries in which Google is the 1st search engine. This SEM has to be adapted, according to the 1st search engine used by countries.

§ Banners Banners will be displayed on the 10 most important website per country.

§ New media A presentation video of the new offer will be displayed online, on YouTube, on the Nokia website and on the NokiaCare.com website. Social networks will also be used to provide information. Finally, Nokia ambassadors will be informed early so as to promote this new offer through their Twitter, Facebook or blogs.

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E. In-store communication EVENT - Launch of the Nokia Care Service We will organise a premiere for the new Nokia Care offer launch. These events will take place in capital cities, in which there are important Nokia Care centres. Influencers and media will be invited to a special presentation with videos. During the event, people will be given goodies, like leaflets and USB Keys. The information will be displayed via Facebook and Twitter. Press Nokia will send press releases to inform press about the new offering.

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PART 2: Russia extended warranty / - Russian market A. Mobile market Russia is the largest country in the world, composed of 83 states with different statuses. People are mainly gathered in the Western part of the country and in urban areas. In the mobile phone market, there are 4 major operators. The number 1 is MTS with 105 millions users. The 2nd place is held by Bee-Line, Megaphon and Sky Link. It is the most important mobile phone market worldwide with a turnover of $45 billions. Strong investments are made on 3G and 4G-lite technologies in Russia. Mobile subscriptions are really high (approximately 100$ per month). Due to this price, 98% of Russian people prefer using prepaid cards for their mobiles. So as to charge their phone, a great number of terminals are available (100’000 terminals). Mobile payment system is also very popular. Finally, Russia prones special offers for the elderly. Advertising investments are estimated to be $114 millions and would be multiplied by 3 within 3 years. Concerning the market actors, Apple is the leader, followed by Samsung and Nokia is in 3rd position. Apple is the only competitor who provides an extended warranty.

B. Nokia position Nokia was represented by 3 of its smartphones ranked in the top 5 of the best sales. However, the brand has still lost market shares, and thus had to close 43 of its Nokia Care centres. Since then, they are only present in retailer shops. The brand started collaboration with the Russian centre of training and research, the Skolkovo technologic Institute to lead a research project and put into practice innovating ideas. For the Lumia 920 launch on the Russian market, Nokia set up street marketing operations, thereafter broadcasted as viral videos online, representing an elevator of the same color of the phone with animations inside (people disguised as Angry Birds characters), and on top of that an event relayed on the Russian medias that shows the technical powers of the new mobile device (especially the camera with stabilizer). Rumors are circulating around a new smartphone supposed to replace the Nokia Lumia 920. That rumor started thanks to the russian blogger Eldar Murtazin, who would have been invited to a private demonstration of the next Lumia.  

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C. Use of new media The Russians are the first users of social media, in the world. 74,5% of the Russian population, connected to Internet, has already visited a social media platform once. The average Russian Internet user spend 9,8 hours per month on social networks, that’s twice as much as the rest of the world.

§ Social Network: - Vkontakte: 23.4 millions active users, on average 20 minutes spent everyday on the

website. (TNS - 08/2011) - Odnoklassniki: 16.5 millions users, on average 25 minutes spent everyday on the

website. Market shares should decrease in a near future, a merger with Prabhu is going to be considered soon.

- Moi Mir (mail.ru): 18,9 millions users, 9 minutes per day.

§ Search Engine: - Yandex is the first search engine in Russia. They own 62.7% of the search engines market

shares in the country (figures coming from ComScore 2010-2011). Yandex reached 64% of the traffic on search engines, whereas Google recorded its traffic pic in may 2010, with only 36%, a figure that already went down since then.

D. Insights Russia is the vastest country in the world, the consumers expectations are different because there is a multitude of culture which cross.

§ Customers: - The customer is impulsive. He is accustomed to buy product spontaneously, and is deeply

driven by his emotions. - He attaches importance to brands and to the quality of their product, as well as their

durability for the most humble. The price is often secondary, but the Russian customer is still sensitive to the “good deal”. They also like to negotiate with store staff so as to benefit from discounts.

- Russian customers like to be contacted personally that is why they enjoy above-the-line marketing techniques. They want to be pampered and be privileged.

§ Purchase process: - Whatever their age, the Russian consumers pay a lot of attention to blogs, discussion

groups and social media to look for information before doing an important purchase. 72% of the Russian people under 30 years old like this approach.

- 63% of the Russian people, over 50 years old, are keen on preparing their purchase with the help of the social medias.

- The medium revenue per person in Moscow is around 550€ per month, versus 150€ per month in the rest of the country.

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- They particularly like premium product and customised offer.

§ Mobile phone market: - For 100 people in Russia, there are 179,3 mobile phone subscriptions. - They are 1.5 million Russians to have three mobile phones, according to a Romir study.

This trend concerns urban populations. And 26 % of the consumers use two mobile phones.

- Poor quality services.

// – Strategy A. Extended warranty offer

§ Extended Warranty Our advice is to choose and develop the care offering as it brings more advantages, but in case you decide not to create this offer, you need to design an extended warranty adapted per country. In fact, we have already included the extended warranty objectives in our Care offering. In this part, you will find an alternative version of the extended warranty for Russia, according to the Russian insights. The aim of this extended warranty is to increase sales of the latter by 10%. We also want to increase phone sales in Russia.

§ Nokia Extended Warranty The warranty is extended to 24 months. Limited warranty + extended warranty = 3 years protection. The extended warranty covers:

- Manufacturer’s failer - Softwares and hardwares - Battery, in a limit of 3 changes in 2 years - Accessories, in a limit of 1 change per year.

§ Specific option concerning weather conditions:

Russian weather conditions are difficult. Cold is the main problem, it particularly damages the internal components. The extended warranty should bring a specific advantage on this subject. Thus, phones will be covered for worn state components, in a limit of 3 repairs per year.

§ Accidental damages: - Theft, - Loss, - Droppings, - Water damages, - Screen breaks.

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They can choose either to protect their phone against one damage, for the 2 years, OR 2 damages, in a limit of 3 interventions (2 years). People who have subscribed to this extended warranty can either sell it or give it, when they want to sell their phones. In case they want to buy a new phone, and don’t want to sell their warranty, the extended warranty will be adapted to the new phone.

§ Subscription conditions - Customers can subscribe to the extended warranty directly in store, or online via the

NokiaCare.com website. - The extended warranty has to be subscribed anytime before the end of the 12 months of

the initial warranty, or the day of the purchase of the phone. In this case, he will be offered a 10% discount on the price: this fact answers one of the Russian customers’ insights we have noticed, i.e. the fact that they are sensitive to discounts and to impulsive purchase. If the customer has not subscribed to the extended warranty the day he bought his phone, he will be warned by SMS a month before the end of its limited warranty to subscribe the extended one. As a result, the customer can subscribe to the extended warranty until the last day of his limited contract.

- If the subscriber has two Nokia mobile phones, he can take advantage of the extended warranty for the second one at half-price.

§ Nokia Care Home (technical support): - The Russian geography is an important issue, especially in the case of phone failure.

Actually, the country is so vast that people cannot join easily any Nokia Care Centre. This issue has been hardened by the closing of every Nokia stores. For Russians, it is always difficult to repair a phone as it implies a very long route, a waste of time and energy.

- A hotline will be assigned to each customer, allowing them to join their own expert. The customer will be able to reach his expert easily, thus avoiding the complicated phoning process. This contact will also be possible by mail or fax. In case of dysfunction, the customer could directly contact his personal expert who will take the responsibility to send him a technician.

- Nokia should develop a service of movable mobile expert. These persons will be in charge of collecting the phones directly at the customer’s place or in a specific point chosen by the customer. These experts need to have a hyper-customised relation with consumers, they need to know their identity, their taste, their habit and the problem they have been called for. When the expert gets the phone, he will bring a new phone (same quality or superior), and will upload the data on it. The customer will keep this phone during the whole repair period. When the expert will bring his personal phone to the consumer, the latter will be asked to give the loan phone back. The transfer will be to the charge of the client.

§ Repair Period While the phone is getting repaired, the personal expert will directly contact the customer by email or by phone to inform him about the evolution of his phone repair. Once again, a hyper-customised approach is required.

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B. Communication online 1. E-mailing As Russian are keen on personal contact, we propose to create a direct e-mailing campaign. These e-mails will be send to the customers via Nokia database to target people who already possess a phone. E-mails should be hyper-customised and give a special discount if people subscribe online (10%). Nokia can also buy another database to join people who want to change their phones. In this case, the same offer will be provided. 2. Ambassadors Blogs are really important in Russia, as press is deeply censored, people find expression’s freedom on the web. The opinions displayed via these platforms are valuable, and this is the reason why we choose to invite bloggers to contribute to the development of this campaign. They will be asked to post reviews of this new warranty on their blogs. They will be rewarded by badges that will inform people about their Nokia Ambassadors status. We will also link their reviews directly in the NokiaCare.com website so as to increase cross traffic and visibility. 3. Banners & SEM SEM needs to be done on yandex. Thanks to hyper-targeted ads displayed on the web, we will design banners on the most visited websites from Russia. These banners will appear for 2 weeks per website, and every 2 weeks we will change the support. Banners will appear on: 1. yandex.ru : Russian Search Engine 2. vk.com : Vkontakte (Russian Facebook) 3. Google.com 4. Google.ru, via sponsorized links, SEM 5. Mail.ru 6. Youtube.com, 7. odnoklassniki.ru : Russian classmates and old friends reunion website. 8. Facebook 9. Live internet.ru : Blog, news 10. Livejournal.com : LiveJournal is a rich, community media platform that willfully blurs

the lines between journaling and social networking 11. uco.ru : System to create websites, website builder of new generation, free hosting. 12. Blogspot.ru 13. Twitter 14. narod.ru: Unlimited space for Web pages, templates for creating, e-mail, access ftp. 15. sergey-mavrodi.com : International Cash Mutual 16. ya.ru: yandex 17. sape.ru : System sales links from the main and inner pages of websites with high

potential for automation of the SEOs and webmasters. 18. sberbank.ru : releases Financial Highlights 19. rbc.ru: News Agency. Business news, social, political, cultural and sporting life.

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20. kinopoisk.ru : Film News. Poster Moscow. Photos of stars, film stills and comments of viewers.

21. searchengines.ru : News and articles on Russian and international search engines. Newsletter. Forum for professionals.

4. Video A presentation video will be made and broadcasted on: ▴ YouTube ▴ Vk.com ▴ odnoklassniki.ru ▴ Twitter

C. POS Campaign 1. Packs As Nokia closed all its stores in Russia, we can only propose a POS campaign to retailers. Here is the content of the POS advertising packs for retailers:

- Basic pack: POS advertising thanks to leaflets / goodies (pens, beanies...) / stickers / posters: 300€

- Advanced pack: POS advertising thanks to synchronisation & loading terminal / advertising wall lamp (Nokia’s logo) / leaflets /goodies (pens, USB keys, beanies, key rings) / stickers / posters: 500€ 2. Nokia retailer Tour Set up of utility vehicles at the colors of Nokia, ready for a tour through the Western part of the country. Salespersons will visit every retailer to inform them about the new Extended Warranty and also make an in-store activity during their trip. 3. Event Set up of a digital interactive floor made of QR-codes changing every hour (LCD system) at a symbolic place of Moscow and Saint Petersburg. The event will last 1 day, per city. As soon as the user flashes the QR-code, he will be able to win a trip, discounts on the Extended Warranty, a Nokia phone, goodies or just read information about the Nokia Care offers. The event will be led by 2 hostesses dressed in Nokia colors (shirt and beany), and will also give out leaflets and inform people about the extended warranty. They will finally propose them to go to the nearest retailer store to get more info. The purpose is to promote the new extended warranty toward the largest number of people (Nokia current users and potential ones).

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V - Measures After both campaigns, Nokia will need to estimate its return on investment and its return on influence, on social networks. To do so Nokia should measure the following points:

- Attitude and intentions - Interaction rate - Commitment - Talk - Affinity rate Finally, Nokia will need to measure the loyalty of its customers and see if this campaign led new consumers In-store and encouraged them to buy a Nokia phone.