INTRODUCTION
Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations. Nokia has played a pioneering role in the growth of cellular technology in India, starting with the first ever cellular call to the latest Nokia cellular phones. Nokia was founded by Mr. Fredrick Idestam and Leo Machelin having its headquarters in Espoo, Finland. It started its operations in 1995 in India and presently operates out of offices in all the major cities of India. Nokia has established itself as the market leader in the mobile device market in India. Company has built a diverse product portfolio to meet the need of different consumers and segments. Chairman: Jorma Ollila Vice Chairman: Dame Marjorie Scardino Head Office: Finland Revenue: 138 634 EUR in Q2 2011 Establishment in India: 1995 Branches in India: Gurgaon, Mumbai, Kolkata, New Delhi, Bangalore, Hyderabad and Ahmadabad. Nokia had strong R&D presence in 16 countries and has employed nearly 1,23,553 people at year-end. Nokia estimated mobile device market share of around 36%
VISION OF THE FUTURE As the tagline ‘Connecting people’ suggests Nokia believes that ‘we’ is more powerful than an individual. Nokia believes in making the world a better place by Connecting people with each other and giving them power to make most of every moment.
MISSION STATEMENT
CUSTOMER : To maintain customer confidence by continuing to provide quality service
specifically designed to meet their needs. MARKET: To be recognized as a market innovator in the mobile phone industry to continuing to improve our business practice. Business: To ensure the team has a complete understanding of all Mobile Network Internal Systems and Procedures and that each team member is responsible for compliance with the Business Management System. TRAINING: To develop ongoing training strategies to empower personnel with skill levels essential for future company success. TEAM: To create the best possible working environment, promoting career enhancement and job security, encouraging trust in the company and loyalty to the customer.
CHAPTER 1: THE 4P’S OF THE MARKETING MIX
1.1 PRODUCT The product is the centre of the marketing mix and the other three P's are based around it. Consumers purchase goods and services for a variety of individual reasons and a company must be aware of all of these when selling a product (that is why they conduct market research). Nokia does exactly the same and comes up with innovative phones almost every six months. The new phones that Nokia launches have some new feature or price difference, thus appealing to the consumer. Nokia offers a large variety in their product. Nokia is considered to be synonym of quality. It’s just because of the quality products it offers, made Nokia a market leader. Large variety is offered to the consumers.
The Explore line is the technical leadership product line. These are the N-series phones which push the boundaries of what a phone is. The Live and Classic lines are the broad appeal products. These can be inspirational in nature, supporting one particular feature very well, or style oriented. The Achieve line is focused on the enterprise. These are the E-series phones and smart phones. The Entry line is focused on low end phones and emerging markets.
Apart from this Nokia provides wide and latest features in their mobiles which keep them technically ahead. From a time line perspective, the features introduced have consistently debuted in one or two devices one year, and then migrated to the entire product line within 12 months. And what we can see is that the Nokia product line is being optimized around music, the internet, photos and video, and now navigation. Handsets of Nokia are appealing for every segment of market, they have different colors for girls and different designs for different type of market. They also provide good after sale service in their own outlets of NOKIA CARE, which delights the consumers. Nokia provides warranty of 2 years on their handsets. Nokia provides latest and useful applications for their users in OVI STORE by which users can directly download those applications in their Nokia phones and can use them.
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1.1.1 HANDSETS OF NOKIA
1.1.2 ACCESSORIES PROVIDED BY NOKIA Apart from regular cell phones Nokia also provides accessories like headsets, Bluetooth devices, Mini Speakers, Mobile charging kits, power and data carriage devices etc.
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1.1.3 NEW PRODUCT LAUNCHING AND OPERATING HIGHLIGHTS
On September 15, 2011 Nokia launched the most affordable dual SIM music phone, Nokia 101 which also offers features like durability and affordable single SIM variant, NOKIA 100. On September 12, 2011 Nokia launched its new Nokia J Bluetooth stereo headset.
1.2 PRICE Price is a key factor in the selling of a product, and is usually the one that is open to the most change based on different pricing strategies, for example, competitor based, penetration or skimming. The three main factors affecting the amount charged for a product or service, are; the cost of production, customer demand and competition. Since its entry into Indian mobile market in 1995, it focused on manufacturing of mobile handsets based on GSM technology. Nokia built a strong brand image with focused marketing and distribution network. It started focusing on the low-cost mobile phone segment for rural markets in India, but, faced stiff competition from Sony Ericsson, Samsung, and Motorola who also started offering low-cost handsets. Nokia has come up with the perfect prices for each and every consumer segment in the market. A lower middle-class person can go for a Nokia 1200 costing around Rs. 1200 while an executive can opt for N-96 costing around Rs. 33,000. Nokia also uses market skimming strategy as it launches its product at premium price and then after sometime it lowers the price. PAYMENT OPTIONS 1. 2. 3. 4.
Discounts Financing Leasing options Allowances
1.2.1 PRICES OF SOME POPULAR MODELS OF NOKIA
MODEL NO.
PRICE
Nokia C7-00
INR 18,399
Nokia C6-01
INR 14,979
Nokia C3
INR 6,429
Nokia C2_03
INR 4,949
Nokia C2-00
INR 2,967
Nokia C1-02
INR 1,900
Nokia E72
INR 16,639
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Nokia E7-00
INR 28,019
Nokia 2700 Classic
INR 3,749
Nokia 1800
INR 1,509
1.3 PLACE Availability of product at the right place, at right time, and in the right quantity is very essential. And Nokia has mastered this very well .Be it a small shop in a small town or a big showroom in a shopping mall Nokia products always find a perfect shelf space for themselves. Products of Nokia are widely available throughout the world in India even a small shop will have Nokia products. Major outlets like The Mobile Store, one mobile, hotspot, Nokia have their own outlets where they sell their products like Nokia priority and Nokia Care.
1.4 PROMOTION This involves providing information to the target customer over a variety of media platforms using radio, television and print advertising as well as using other promotional tools such as "money off deals" and "free giveaways". The advertisements that Nokia comes up with are very successful in targeting the customers in a consumer market. The advertisements are made in such a way that it appeals to the psychology of the consumer. They also have various sale promotion schemes like offering discounts on special occasions and giving free gifts along with a purchase of a mobile phone. They have used Priyanka Chopra as their brand ambassador recently as she very well depicts the image of brand.
CHAPTER 2: SIGNIFICANT ACTORS IN NOKIA’S MICROENVIRONMENT
2.1 MARKET INTERMEDIARIES Nokia has been working closely with operators in India to increase the geographical coverage and lower the total cost of ownership for consumers. As for a company like intermediaries like ‘distributors’ and ‘retailers’ plays very crucial role. Realizing the same fact, Today, Nokia has one of the largest distribution network with presence across 1,30,000 outlets. In addition, the company also has ‘Nokia Priority Dealers’ across the country and Nokia ‘Concept stores’ in Bangalore, Delhi, Jaipur, Hyderabad, Chandigarh, Ludhiana, Chennai, Indore and Mumbai to provide customers a complete mobile experience.
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2.2 CUSTOMERS Nokia has always emphasized on efforts to build trusted consumer relationships, moving from single transactions to dynamic dialogue with the consumers. The vision of Nokia is a world where everybody can be connected, thus aim to address every relevant geography and price point and strive to bring the best mobile devices everywhere. The major actors for Nokia, in this field comrises of, ‘consumer market’ that is the individuals buying phone for their own daily usage,’ Reseller market’ that is the retailers, the mobile store outlets, selling mobile sets at a profit , and ‘international market’ consisting of buyers in other countries like Spain, Luxumberg, Greece, France etc.
2.3 COMPETITORS Nokia India believes in providing greater customer value and satisfaction because given the intense competition in Mobile industry, volume sales is the only way of survival. Thereby creating the need of , keeping a track of competitor’s moves. MAJOR COMPETITORS Sony Ericsson, Samsung, LG, Micromax.
CHAPTER 3: MAJOR FORCES IN NOKIA’S MACROENVIRONMENT Macro Environmental factors comprise Political, Economical, Society and Technology, viz., “PEST ANALYSIS.” In regards of different external factors , Nokia has to adjust its strategic plan accordingly.
3.1 POLITICAL FACTORS It is important of a company to acquire certain kind of policies from its government, such as the economic policy, and science and technology policy. ‘Finnish policies’ assist Nokia to advance its products making it the most important factors behind its success. The industrial policy and science and technology (S&T) policy comprise all those measures by which the public sector shapes the operating environment for business and thus fosters public welfare. Both policies pursued by Finnish government and the Parliament are crucial for the development of both, the Finnish Economy and of national information society. General macroeconomic stability, low interest rates, stable currency conditions and the international competitiveness of the tax system has formed the foundation for the growth of business and improvement in employment. As the result of this, companies such as Nokia have to play very important roles to develop their information society and national technology strength.
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3.2 ECONOMIC FACTORS Due to the collapse of Russian Federation in early 1990, Nokia faced major problems, which led to the decision of changing its functions from single market to global market and focusing only on mobile phone market. It further continued to perform strongly in the global mobile communications market and was able to strengthen its leading market position. However, due to the general economic slowdown in the US which led to general market deterioration, driven by economic uncertainty, the ongoing technology transition and less aggressive marketing by the operators made Nokia face certain setbacks as well. But Nokia with its effective planning and determined actions helped in alignment of the business operations with respect to the changing market conditions. While market deterioration has had an inevitable impact on Nokia's sales growth, their products have remained strong, their market position has strengthened and they have been able to find further efficiencies through tight control of their own performance. Nokia had also countered changing market conditions by accelerating ongoing programs and generating efficiencies and cost savings. This, in combination with the current financial health and proven performance, had enabled them to exit the current slowdown in a stronger position than before.
3.3 SOCIAL FACTORS At Nokia, the whole business is based on ‘communication and connecting people’. One of Nokia's aims is to make it as easy as possible for their people to be satisfied working with them. Thus, it keeps various stakeholders interests in mind. Nokia develops products and services that encourage communication and learning among people and societies. They are using their strength - Connecting and Communicating - to help make a difference. It complements the core business and their vision to be involved with the youth and education issues around the world, preparing young people for their future. The goal is to be a good corporate community member wherever they operate, as a responsible and contributing member of society.
3.4 TECHNOLOGICAL FACTORS In the 1980’s with a trend towards microcomputers, Nokia tried to match the tendency by producing its main products as computers, monitors and TV sets. But with the changes in 1990’s Nokia also changed its functions to mobile phone market. Sustainable development and environmental protection is taken into consideration while operations on any innovation system. Nokia always improve their product line through Research and development process, They employed more than 17,000 people in R&D department over fourteen countries worldwide, which in turn has led them to provide multimedia compatible facilities such as, GPRS and WAP Service. It also serves with numerous technologies such as, Bluetooth, Symbian, SYNCML, M2M, Wireless LAN and Java.
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CHAPTER 4: STP ANALYSIS
4.1 SEGMENTATION AND TARGETING 1. 2. 3. 4.
5.
6.
7.
Entry level: (Rs 1,200-3,000): 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. N- Series: (Rs 7000-35,000): Nokia targeted the young generation who wanted to possess mobiles with the latest technologies such as a 5 MP camera, a decent music player, GPRS, etc. This series is also called multimedia computer. Named as one step ahead of multimedia. Sets include N72, N81, N95, N96, N97, etc E-Series: (Rs 10,000-60,000): These mobiles were launched for people who needed mobile computing on the go especially business people. These phones are enabled with word, spreadsheet and presentation software. They also are equipped with GPRS/ EDGE technologies thus functioning as a palmtop. Sets include E90, E75, E61, E62, etc Xpress music Series: (Rs 6,000-20,000): Nokia launched this series basically for the people who loved music. Good Dolby digital earphones and long battery life are the features of these mobile phones. Sets include 5800, 5610, 5320, 5310, 5220, etc Premium Series :( Rs 80,000-1,500,000): In this series Nokia targeted people who show visual status. Sets include in this series are Sephiraarte, 8800Gold, 8800 arts etc
4.2 POSITIONING Positioning of a product refers to creating an image about a particular product. Nokia has been very successful in this strategy. Nokia has created a distinct position in customer mind by, 1) 2) 3) 4) 5) 6) 7) 8)
Logo Standard Ringtone Standard Message Tone High battery backup. User friendly handsets. Durable and Good resale value. Value for Money. The specific message that is conveyed to the customers in every advertisement is, “Nokia enables you to get more out of life”.
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These specific aspects have been embedded into the mindset of the consumer in such a way that every time they saw the logo or heard the ringtone they associate it with a Nokia product. Hence Nokia has been very successful in positioning it products in the market.
CHAPTER 5: SWOT ANALYSIS 5.1 STRENGTHS
Nokia Corporation is known to have the strongest Research ad Development centers in 16 countries and employ approximately 37020 personnel, nearly 30% of total workforce of the Nokia Siemens. World’s first GSM call was made over a Nokia-supplied network. Nokia is always known for it’s innovation and creativity in products. Nokia has biggest distribution network in mobile phone industry. Nokia has network in 160 countries. Nokia is financially very strong. Loyal customer base is biggest strength of Nokia. Nokia has wide range of products which are of great quality. Worldwide presence.
5.2 WEAKNESS
Though Nokia comes up with new products time to time with new technology but it is always late in launching it’s products. Competitors when already launch that type of product in market then Nokia comes up with it’s product. In Japan and China presence of Nokia is very fragile due to presence of domestic sellers like Panasonic, Fujitsu etc. Nokia has very few service centers in India which makes it’s after sale service terrible. In US’s cellular market Nokia has very week presence.
5.3 OPPORTUNITIES
Nokia has joined with Hewlett Packard (HP) Company in technology which has a very good reputation for many years. Nokia thus, has a considerable opportunity to enlarge their market size into PC users who prefer mobile phones compatible with PC device. Nokia uses Total Quality Management (TQM) which mentions more about training worker program, and makes product of high quality. All employees are well-trained and motivated and consecutively production processes are also developed as well. Nokia has established Research and Development department (R&D) which develops its product line into modern modification as well quality as the existing products.
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As known, the amount of data traffic in mobile networks is growing at a tremendous rate. People around the world are using new mobile services, which are directly relevant to personal needs. Nokia has already added value through MMS for Messaging and E-mail, Java for download any applications and HTML especially for content search. So it may attract those businessmen and teenagers who are interested in the new software market. Nokia has tremendous demand in growing countries like India Pakistan etc.
5.4 THREATS
Increasing competition from major mobile manufacturers like Sony Ericsson, Apple, Blackberry etc. and Chinese mobiles which have much better applications. Price pressures are also on Nokia because of it’s competitors. Brands like Micromax and i-Mobile are eating up Nokia’s market share. Most of the European countries have joined the European Union and thus because of the varied economic conditions, the currency will fluctuate a lot finally effecting the profits of the company.
CHAPTER 6: PRODUCT LIFE CYCLE AT NOKIA 6.1 PRODUCT DEVELOPMENT Nokia keeps on launching new products which are innovative and technically advanced, Nokia made it possible just because of its strong R&D department. In India Nokia have three R&D centers. They focus on next generation packet switched mobile technologies and communications solutions to enhance corporate productivity. The mission of the R&D centre is to become an innovation hub by leading the internet revolution and making platform the preferred choice. MODELS TO BE LAUNCHED Nokia 700, Nokia 701, Nokia 600, Nokia 500.
6.2 INTRODUCTION Introduction is the face of slow sales growth and the product is introduced in the market. To be on the edge with the changing technology and changing customer needs and demands Nokia always launches products which fulfill the same. LATEST MODELS OF NOKIA Nokia C7-00, Nokia C6-01, Nokia C6, Nokia C5-03, Nokia C2-01 Nokia C2-00, Nokia C1-01, Nokia C1-02.
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6.3 GROWTH The growth stage is a period of rapid revenue growth after the introduction period is over customers get familiar with the product and start accepting or declining the product. At this time expenditure is lowest as company doesn’t have to spend on advertisements as it did in introduction stage. MODELS OF NOKIA IN GROWTH FACE Nokia E72 White, Nokia E72, Nokia N8, Nokia X7, Nokia 2700, Nokia 1616.
6.4 MATURITY Sales starts increasing but at a very slower pace. Till maturity face brand and product awareness is strongest. The competing products may be very similar at this point, increasing the difficulty of differentiating the product. MODELS OF NOKIA IN MATURITY STAGE Nokia X5-01, Nokia E63, Nokia E5, Nokia 1800.
6.5 DECLINE Eventually sales begin to decline as market becomes saturated, the product becomes technologically obsolete, or customer tastes changes. MODELS OF NOKIA IN DECLINE STAGE Nokia 6600, Nokia 1100, Nokia 1600, Nokia 1680, Nokia 3210.
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CONCLUSSION
In the early 90’s when mobile phones were introduced in india, US based Motorola, Sweden's Ericsson and Finland's Nokia dominated the handset market in India. However Over the years, the order has changed. Today Nokia has been able to race much ahead of all other players to become the leading mobile handset maker across the world. In India its dominance is even more pronounced with a 70 per cent market share, compared to around 30 percent globally whereas Its closest rival in the Indian market, Samsung, comes a poor second with less than 10 per cent market share. And all this has been earned because of its Outstanding Business Strategies, Management Style and Marketing Savvy. In 2004, Nokia was chosen as 'the most respected consumer durables company' in India by the weekly magazine BusinessWorld. The reasons for Nokia's stupendous success in India include Amazing Branding, a Focused Marketing exercise and Distribution Strength, among others. Nokia's commitment to the Indian consumers was underscored when it became the first, and only, handset major to develop a model suited for Indian conditions. The company launched two models, 1100 and 1108, after intensive research on the Indian customer's specific needs. In its marketing endeavors, Nokia has ensured that its advertisements make its phones stand out from the clutter of mobile phone advertising. They aimed at making communication relevant to strengthen consumer-connect with the brand. Also, Nokia never used the ‘pricing plank’ for marketing its phones. However, it did adopt an aggressive pricing strategy to fight the grey market. As part of its distribution strategy, Nokia has ensured that it has a presence inall 2,000 cities and towns that have cellular coverage. The other edge that Nokia has over its rivals is the large portfolio of phones. Considering that the design, style and color elements play an important role while consumers are choosing a phone. it has provided the largest range of handset models to choose from, keeping the same elements in mind. Nokia has introduced phones at all price points, right from the mass market entry-level phones to the mid-market colour and camera phones and also the high-end exclusive phones.
Nokia has clearly emerged out as a winner when it comes to brand value, service and experience. And the presence of such factors, has enabled Nokia in actually ruling the mobile phone market all over the world with nearly 36% of the market share with no close competitors.
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BIBLOGRAPHY
http://www.nokia.com/about-nokia/company/vision-and-strategy http://www.scribd.com/doc/58834389/Pest-Analysis-Nokia http://www.nokia.co.in/about-nokia “Nokia expects to meet estimates” CNET Tech Sites: By Reuters, Merriden Trevor, (2005),’Business: The Nokia Way’. Johnson Gerry and Scholes Kevan, Exploring Corporate Strategy, 6th edition, Prentice Hall London, New York. Porter Michael E, Competitive Strategy –Techniques for analyzing industries and competitors (1980), MacMillan publishing Co. New York. http://www.news.bbc.co.uk/1/hi/sci/tech/1723738.stm http://www.amanet.org/books/catalog/081440636x_history.htm http://reinholm.c om/strategic%20management.htm http://www.managementfunda.com
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