Nokia Introduction Nokia Corporation (OMX: NOK1V, NYSE: NOK, FWB: NOA3) is an international communications company, focused on the key growth areas of wire line and wireless telecommunications. Nokia is currently the world’s largest manufacturer of mobile telephones, with a global device market share of approximately 38% in Q2 of 2007. Nokia produces mobile phones for every major market segment and protocol, including GSM, CDMA, and W-CDMA (UMTS).
The corporation also produces telecommunications network equipment for applications such as mobile and fixed-line voice telephony, ISDN, broadband access, voice over IP, and wireless LAN.
Nokia’s headquarters are located in Espoo, a neighbouring city of Finland’s capital Helsinki. It has R, manufacturing, and sales representation sites in many continents throughout the world. Nokia Research Center, the corporation’s industrial research laboratories, has sites in Helsinki; Tampere; Toijala; Tokyo; Beijing; Budapest; Bochum; Palo Alto, California and Cambridge, Massachusetts.
Major production factories are located at Salo, Finland; Beijing, China; Dongguan, China; Chennai, India; Komarom, Hungary and the Ruhr region at Germany.
In March 2007, Nokia signed a memorandum with Cluj-Napoca City Council, Romania to open a new plant near the city in Jucu commune. Nokia’s Design Departure has stayed at Salo. Nokia plays a very large role in the economy of Finland. Nokia is by far the largest Finnish company, accounting for about a third of the market capitalization of the Helsinki Stock Exchange (OMX Helsinki); a unique situation for an industrialized country.
It is an important employer in Finland and several small companies have grown into large ones as Nokia’s subcontractors.
Nokia increased Finland’s GDP by more than 1. 5 percent in 1999 alone. In 2004 Nokia’s share of the Finland’s GDP was 3. 5 percent and accounted for almost a quarter of Finland’s exports in 2003. In 2006, Nokia generated revenue that for the first time exceeded the state budget of Finland. This has led some to refer to Finland as “Nokialand. ” Finns have ranked Nokia many times as the best Finnish brand and employer.
Nokia is listed as the 5th most valuable global brand in Business Week’s Best Global Brands list of 2007 (1st non-US company), the 20th most admirable company worldwide in Fortune’s World’s Most Admired Companies list of 2007 (1st in network communications, 4th non-US company), and is the world’s 119th largest company in Fortune Global 500 list of 2007, up from 131 of the previous year. COMPANY PROFILE Nokia’s history started in year 1865, when engineer Fredrik Idestam established a wood-pulp mill in Southern Finland and started manufacturing paper.
Due to the European industrialization and the growing consumption of paper and cardboard Nokia soon became successful. In 1895 Fredrik Idestam handed over the reins of the company to his son-in-law. Nokia was Actually founded in 1965 by Fredrik Idestam in Finland as a paper manufacturing company. In 1920, Finnish Rubber Works became a part of the company, and later on in 1922, Finnish Cable Works joined them. All the three companies were merged in 1967 to form the Nokia Group. Nokia created the NMT mobile phone standard in 1981 and launched the first NMT phone, Mobira Cityman, in 1987.
The company delivered the first GSM network to Radkilinia, a Finnish company in 1991, and in 1992, Nokia 1011 – a precursor for all Nokia’s current GSM phones – was introduced. In the 1990s, Nokia provided GSM services to 90 operators across the world. Another significant move of the company during this period was the divestment of its non-core operations like IT. The company focused on two core businesses – mobile phones and telecommunications networks. In the 1990s, Nokia provided GSM services to 90 operators across the world. Another significant move of the company during this period was the divestment of its non-core operations like IT.
The company focused on two core businesses – mobile phones and telecommunications networks. Nokia’s history contains many achievements that were the first of their kind in the world. Many milestones have been experienced in the mobile phone business since the 80’s. The success with the NMT and GSM technologies and the products they spawned secured Nokia’s position as the world’s leading telecommunications company. The list of Nokia’s milestones provided a good insight in the history of wireless communications. Nokia has been involved in making the world’s first NMT network and the world’s first pocket-sized mobile phone.
The world’s first device to use the Symbian OS was also produced by Nokia. Nokia was able to offer advanced products from the beginning of the 90s. Early investments in R were thus handsomely rewarded. Nokia ensured its continued growth by reforming its production in the middle of the 90s. The new phone models and standardized technical solutions made it possible to produce an increasingly extensive product range more effectively. The extensive range of mobile phone models, covering all user groups, is one of the reasons why Nokia became the market leader. INTRODUCTION TO MARKETING Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services, organizations, and events to create and maintain relationships that will satisfy individual and organizational objectives. ” The new definition of marketing, as released by the American Marketing Association is:- Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. ” (Kotler & Armstrong 1987) The Mission of marketing is satisfying customer needs. That takes place in a social context. In developed societies marketing is needed in order to satisfy the needs of society’s members. Industry is the tool of society to produce products for the satisfaction of needs. Marketing is one of the most important functions in business. It is the discipline required to understand customers’ needs and the benefits they seek.
Academics does not have one commonly agreed upon definition. Even after a better part of a century the debate continues. In a nutshell it consists of the social and managerial processes by which products (goods or services) and value are exchanged in order to fulfill the needs and wants of individuals or groups. Although many people seem to think that “Marketing” and “Advertising” are synonymous, they are not. Advertising is simply one of the many processes that together constitute Marketing. Product Strategy Nokia provides its customers with a wide variety of products.
As per the income band, a series of phones have been produced to meet the customer demand. Here are some examples of various products in different product levels offered by Nokia. Our Companies Basic Product: Nokia 1100- This is a simple phone having core benefits as well as certain added benefits such as a calculator, alarm, games, etc. Our Companies Expected Product: Nokia 6610- This product has certain features which the consumer expects to be present in the handset. It has a colour display, a radio, some value added games, and many more such features.
Our Companies Augmented Product: N Series- This series has been lately introduced and has some extraordinary functions but for a cost which is its price. These phones can adapt to various devices, further some of these phones are Wi-Fi enabled. Our Companies Potential Product: Nokia provides its users with even the option of customization. Though these phones are not officially launched but they are sold under the same brand Nokia. Examples: Voice operated phones, Nokia Sirocco Gold phones, etc. Product Classification Based on functional life (Durable or Consumable): Phones are basically durables which last for a long period.
Based on utility (Consumer goods or Industrial goods): Phones are consumer good. They can be put under Homogeneous Shopping goods. Based on tangibility (Tangible or Intangible): They can be touched and seen hence they are tangible. Based on price and quantity (Mass or Premium product): Premium products as they are… Product Assortment Product Width- 1 Nokia is only into Manufacturing of mobile handsets hence its product width is 1. Product Length- (No. Of products) Presently Nokia provides its customers with 111 various cell phones, excluding the prototypes in it. Product Depth- (No. f products into colours) Nokia provides its products in various colours. Though the product may be the same but panels of various colours are available. Further it also provides with small variations such as presence or absence of camera. Product Consistency- Not applicable as Nokia is only in 1 field having no other product lines Branding Decisions Nokia follows Umbrella as well as Company brand name strategy. Example for Umbrella branding- N Series and E Series Example for Company brand name – Nokia **** Brand Equity Nokia uses Line extension as well as Multi branding.
It’s most common way of introducing phones is by line extension, though it may sometimes evolve a new brand which it has done in case of N-Series and lately in case of E-Series. In reality a multi brand turns into line extension over a period of time. Co-Brands- Nokia had incorporated with Renault and had made a joint advertisement. This advertisement promoted both. Lifecycle Globally Nokia’s market is at maturity, where as in India it is still in the Growth stage. Pricing Strategy Nokia uses a pricing strategy that best suits the product.
Keeping the product in mind the company may go for mass distribution (Penetration) or else may just tap a selected group (Skimming). Market Skimming- N-95: As in case of this phone Nokia deliberately focuses on only a selected rich group of consumers. The price is kept high as their target is only to sell a limited number of phones at a higher margin. Market Penetration- Nokia 1100: The price of this phone is kept nominal. The objective that Nokia wants to achieve through this phone is high market penetration. The desired profits are attained by dealing in volumes. Price Determination Case of 6610
Objective- To enhance market share and market penetration Demand Estimation- Tremendous demand as it is a very basic phone Price Elasticity- High elasticity because it is a utility phone Estimating cost- Generally we can see that Nokia’s product pioneer from a high price and slowly as time passes, there is a fall in price. This can be related to the Experience curve theory where in we can see that as the company gets expertise or experience in producing a particular item then the cost of production gradually falls with a period of time. Though it should be noted that the only cause of fall in price
Analysing competitors’ cost price and offers- When 6610 was introduced, other players namely Motorola and Sony Ericsson’s phones were not considered to be reliable and user friendly, even though they were marginally cheap. Further as Nokia was the market leader, the prices were regulated by Nokia and other companies followed Nokia pricing decision making i. e. if Nokia reduced its price than other companies also ought to reduce their prices. Methods- Initially it was VALUE PRICING and now it is GOING RATE PRICING Selecting final price- Using all the above, the final price is arrived at.
Promotion Mix Use of AIDA model in Nokia – N Series: When Nokia launched its N Series of phones, it used the AIDA model to great perfection. Before N Series phones came in the market, cell phones were primarily used as a communication tool. Features like cameras, MP3 Players, Radio, and Bluetooth were the ones which used to catch attention of the users. N Series phones revolutionised the cell phone industry with features such as High Data Storage, High Quality camera, amazing sound quality, professional usage etc.
Nokia first gained ATTENTION by highly publicising N Series phones as a lifestyle product. Then it began to hold INTEREST of the people by coming up with new models and variety of features in the N Series. This also helped in arousing DESIRE in the market, which helped the company to make N Series a great success despite the high prices of the phones. Promotion Mix Tools a)Advertising One of the strongest aspects of Nokia is its advertising strategy. Nokia’s ad campaigns are have a short shelf life as they are known to be coming up with one new model for each class(basic, mid, high end) in two months.
So they have something or the other new for the consumers, thanks to their excellent innovation. Nokia also come up with customised ads during specific events and festivals. For example, they came up with an ad for Nokia 1110 during Holi last year, with the concept that it’s a colour phone for the festival of colours. b)Sales Promotion Nokia does not stress much on Sales Promotion. This is because today the cell phone market is moving really very fast with new models coming up every third month, and even the consumers are ready to change at such a short period. c)Public Relations (PR)
Nokia has strong PR. They keep on doing some or the other new events, programmes and publicity, so as to keep up with the brilliant image of the company and also to enhance the brand equity. One of the instance is they sponsored the COUNTDOWN event for NEW YEAR 2007, wherein they used Nokia 5200 as their prime product. The event featured NELLY FURTADO performing live. The event also concentrated on GLOBAL WARMING. d)Direct Marketing Nokia does not perform Direct Sales activities on its official website www. nokia. com. However, they do have contractual tie ups with other e-commerce websites like www. bay. com, www. amazon. com etc. Nokia does use DEMO style of Direct Marketing. They set up kiosks extensively at various locations such as malls; business parks etc. and had its latest product N 95 for demo. Nokia does not use Direct Mail or Telemarketing styles of Direct Marketing. Consumer Behaviour 1. Social Factors Social factors like feedback on a specific product from family, friends and peers influence the decision of a person whether to buy a product or not. For example, Nokia 6800 is technically one of the best phones by Nokia. However, in terms of features it is similar to Nokia 6610.
So, the review was not good and hence it affected the sales of Nokia 6800. 2. Personal Factors Personal Factors like age, occupation, lifestyle, income and personality affect the consumer behaviour. For example, a young college going person may consider music and gaming as the add on features. So, he or she may choose a Nokia N – Gage. On the other hand, a professional may consider utility and may buy an N Series phone. 3. Psychological Factors Psychological factors like perception make difference in consumer behaviour. For example, a consumer may not buy a flip or a slide phone if he or she thinks they are delicate handsets. 4.
Cultural Factors Not Applicable with respect to Nokia. Place Mix Market Channels- Nokia uses both dealership as well as direct selling strategy. It has opened its retail outlet ‘Nokia Priority’ as well has many authorised dealers at various places. So Nokia uses 0 level, 1 level & 2 level Market channel levels. Consumer Manufacturer Dealer Market Channel Levels- ?0 level (outlets and internet) – Nokia has their retail outlets ‘Nokia Priority’ also although they directly don’t sell product on their website but they have contractual tie ups with other e-commerce websites like www. bay. com, www. amazon. com etc. ?1 level (Dept stores- Hypercity) – Nokia has authorised dealers at various places it also provide their product at super malls like Hypercity. ?2 level (Wholesaler Retailer channel followed) – This is the traditional way of selling which Nokia does follow. Nokia’s products today are available at almost all retail outlets dealing in mobile phones. Vertical Marketing System Administered (Nokia Priority Dealer) and Contractual (Various Dealership) – Steps involved in designing market channel E Series )Analysing customer needs and expectations- breakthrough technology and utility b)Objectives and constraints- high profit (market skimming) and (constraint) low volumes c)Identifying channel alternatives- 0, 1 and 2 level d)Evaluating major alternatives- high profits by catering to the needs of higher level income customers, which are increasing in towns and cities e)Selecting channel members f)Training channel members g)Motivating channel members h)Evaluating channel members i)Modify channel arrangements E-Series Market segmentation and targeting strategy Target marketing
The market today has large number of customers and to satisfy each of them individually is impossible of any company. So what any company does is it comes out with a product which satisfies majority of its consumers. This is known as target marketing. The target marketing done by Nokia is also the same it targets major portion of the market whose preferences are similar. It does a market survey of understanding the consumers. It is not actually a survey but look at the type of cell phone which a consumer is looking for in the market through the consumers demand.
Nokia targets the market by targeting groups holding major part of demand and accordingly manufacture the product. Example: – Targeting the lower income group who are looking for a cheaper cell phone in the market like Nokia 1100. In market targeting strategy Nokia falls in “product specialization” pattern . As it specializes in the same product line. MARKET SEGMENTATION FOR NOKIA: The decibel levels in the cellular market are increasing with service providers stepping on the gas. Not to be left behind, handset manufacturers are using precise segmentation to carve up their share.
Divide and rule seems to be working! According to a report published in May 2001, the all-India cellular subscriber figures stand at 38,71,514. With aggressive marketing by service providers, this figure is expected to increase at a very rapid rate. If current decibel levels in the market are anything to go by, these expectations are well on the way to being met. However, amidst this entire melee one cannot ignore the efforts of the handset manufacturers. Both service providers and handset manufacturers have been complementing each other well with each fuelling the demand for the other.
Industry observers attribute the success of handset manufacturers to shrewd market segmentation. The big three of the mobile handset market – Nokia, Ericsson and Motorola, have studied the market and segmented it precisely. SEGMENTATION OF NOKIA AND SEGMENTATION MODEL FOLLOWED BY COMPETITORS Connecting people! Nokia, arguably the biggest player in the world, has divided the market into four segments: * Hi-fliers: The biggest segment as far as Nokia is concerned consists of ‘Hi-Fliers’, corporate executives who use a mobile phone to increase productivity at work.
Aged between 25-45, the segment looks for data transmission and other business-related features. In most cases, the company sponsors the handset, hence price is not a major consideration. * Trendsetters: In any technology adoption cycle, the first segment to adopt an emerging technology is dubbed as ‘the early adopters’. For Nokia, these early adopters are ‘Trendsetters’ who are most receptive to advanced models. This was the segment at which WAP-enabled models were aimed. * Social contact: The third segment for Nokia is the upwardly mobile, socially-conscious segment that uses a mobile to stay in touch.
Today’s youth and affluent housewives constitute two major chunks of the segment. * Assured: The fourth and last segment as defined by Nokia comprises of CEOs, high-profile celebrities, industrialists and other high “net worth” individuals. The fact that the segment cannot do without a mobile phone makes it the ‘assured’ segment. Market segmentation Dr Philip Kotler defines market segmentation as “a process of identifying groups of buyers with different desires or requirements”. Levels of market segmentation:- Mass marketing: – Nokia uses mass marketing techniques by manufacturing cell phones which is suitable for major portion of market.
Considering the fact that there are a large number of families falling in the middle income group in India, so their buying capacity is kept in mind and accordingly cell phones are introduced in the market. In this way large number of market is target and mass marketing is done by Nokia. Example: – Nokia 3310, 1112, 1110. Segment marketing: – In segment marketing Nokia identifies groups having similar wants, purchasing power, buying attitude etc and then comes out with phones catering to different major groups and thus satisfying every part of market with its product.
Example: – Cell phones 6610, 6610i, 2310 which have fm facilities and are less expensive for middle class service people who travel in trains or via any means of transport. This fm facility will attract such group of people and will indulge such people in buying fm cell rather than normal simple cell phones. Niche marketing: – The latest E-series and N-series phones introduced by Nokia are a classic example of niche marketing. Nokia with these latest cell phones targeted the higher class businessmen in the society. These cell phones had features like internet access, a large screen and all the possible latest technology introduced till date.
These cell phones are expensive and so it clearly shows that Nokia target a small fraction of higher income group in the urban society. Local marketing: – When it comes to local marketing Nokia is not into local marketing. But country wise products are manufactured i. e. according to the demand of product in the market. Individual marketing: – Nokia in not into manufacturing of product according to customer specifications. Therefore Nokia is still not into customized marketing. Basis of market segmentation:- a) Geographic segmentation 1) Urban 2) Semi urban 3) Rural b) Demographic segmentation 1) Age 2) Income ) Psychological segmentation 1) Personality On the basis of the above factors market segmentation in Nokia takes place. Positioning strategy Positioning strategy is an image which a marketer develops in the minds of the customer in other words perception about the product in the minds of consumer which is formed by the positioning strategy of the marketer. Any company prefers one consistent positioning message. In case of Nokia the positioning strategy used was “Nokia Connecting People”. But from the time Nokia has been introduced in the market one image which was created in the minds of consumers was it was a ruff and tuff piece i. . its body is hard. But as the time passed by today Nokia with its core positioning is also targeting its technological advancement as positioning strategy. The positioning strategy of any company plays a vital role in creating a psychological perception about the product. Differentiation strategy It is nothing but adding valued difference to the product which a competitor’s product will not be having in it. It is necessary as differentiation is necessary for a product to be recognized and sold in the market. Differentiation tools:-
Product differentiation:-Nokia in terms of product differentiation has a better quality outer body. Nokia has its own software’s supporting the features in the cell phone. These make Nokia different from other cell phone companies. NOKIA STRATEGIC MARKETING IN INDIA Nokia redefines fashion phones in India with the latest L’Amour collection Nokia has introduced a collection of three trend-inspired mobile phones, the Nokia 7360, Nokia 7370 and Nokia 7380. Each model in Nokia’s the L’Amour Collection offers a beautiful mix of contrasts infusing cultural and ethnic influences with luxurious touches of the unexpected.
Hints of vintage and craftsmanship, are fused with natural materials, colours and patterns, all carefully crafted and layered with a passion for detail. In the design and development of the L’Amour Collection, Nokia’s Design team has looked to materials such as amber, ceramic, turquoise, silk and enamel for inspiration. Craft techniques such as enamelling and etching added a creative spark to the graphics, finishes and colours selected for each model in the collection. Nokia 7380: With etched mirrored surface and discreet keyless dial, the Nokia 7380 comes with a leather cover and a mirrored display.
The technology includes a 2-megapixel camera and intuitive voice dialing. Key features: •Keyless dial •2-megapixel camera, 4x zoom •Enhanced Voice Commands •MP3 player Nokia 7370: The Nokia 7370 “swivels” open to reveal its elegantly hidden keypad. Beautiful patterns into the elegant metal trims are contrasted by leather-inspired faceplates. The Nokia 7370 is available in two colour schemes, coffee brown and warm amber, with each model offering a distinct set of graphics, screensavers and even dedicated camera keys. Key features: •1. 3 megapixel camera, 8x zoom •2-inch QVGA colour screen (320 x 240 pixels) Stereo speakers with 3D sound effects •Video ring tones •FM Radio Nokia 7360: Trend-conscious men and women will appreciate the Nokia 7360’s mixture of patterns and textures, which are perfectly complemented by elegant accessories, including straps and carrying pouches. The Nokia 7360 is also available in two signature L’Amour Collection colour schemes, coffee brown and warm amber. Nokia has jumped into the growing market of online distribution of tones, graphics and games downloads in India and is offering a choice of 120 games which can be downloaded at Rs 50 per game.
However, users will have to shell out an additional Rs 10-25 for the airtime depending on the size of the game. Nokia claims to be the first handset manufacturer to enter this business in India and the first company to launch games downloads in the Indian market. So far, only online content and utility services companies such as MSN and Yahoo have been offering ringtones and graphics downloads to mobile phone enthusiasts. The business of offering ringtones and graphics is growing almost by 100 per cent, according to industry experts.
The download business for the calendar year 2003 was estimated to be around Rs 10 crore and is expected to touch Rs 20 crore this year. These estimates do not take airtime charges paid by the users for downloads. “Nokia is not entering this business to make money. In fact, a large part of the revenue will be shared by the service operators and content providers. Our interest is to help mobile service operators to increase their average revenue per user (ARPU) and to influence mobile phone users to upgrade to the latest models being launched by the company,” Nokia India marketing head Gautam Advani said.
Mr Advani claimed that the company launched a game named ’Makhan Chor’ during ’Janmasthmi Utsav’ last month and the response was very encouraging. Nokia India has already tied up with with Bollywood production houses such as Harry Baweja, Rajshri Pictures and RS Entertainment for graphics and movies. It has also entered into an agreement with Indian Performing Rights Society for ringtones. PROMOTIONAL STRATEGIES: “Push or Pull” Marketing theory distinguishes between two main kinds of promotional strategy – “push” and “pull”. Push
A “push” promotional strategy makes use of a company’s sales force and trade promotion activities to create consumer demand for a product. The producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers. A good example of “push” selling is mobile phones, where the major handset manufacturers such as Nokia promote their products via retailers such as Carphone Warehouse. Personal selling and trade promotions are often the most effective promotional tools for companies such as Nokia – for example offering subsidies on the handsets to encourage retailers to sell higher volumes.
A “push” strategy tries to sell directly to the consumer, bypassing other distribution channels (e. g. selling insurance or holidays directly). With this type of strategy, consumer promotions and advertising are the most likely promotional tools. Pull A “pull” selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product. If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers.
A good example of a pull is the heavy advertising and promotion of children’s’ toys – mainly on television. Consider the recent BBC promotional campaign for its new pre-school programme – the Fimbles. Aimed at two to four-year-olds, 130 episodes of Fimbles have been made and are featured everyday on digital children’s channel CBeebies and BBC2. As part of the promotional campaign, the BBC has agreed a deal with toy maker Fisher-Price to market products based on the show, which it hopes will emulate the popularity of the Tweenies.
Under the terms of the deal, Fisher-Price will develop, manufacture and distribute a range of Fimbles products including soft, plastic and electronic learning toys for the UK and Ireland. PRICING STRATEGIES Ultra low cost phones–less than Rs 2,000–are fuelling demand in cost-sensitive India, where more than 4 million new users are entering the 85. 4 million strong wireless sector each month. The number of mobile services users surged 47 percent in 2005, and now exceeds the population of Germany. India is expected to be the world’s third largest mobile market by the end of this year, behind China and the United States. We anticipate that there will be a long-term sustainable demand for mobile telephony in the fast-growing Indian market,” Chief Executive Jorma Ollila said at the launch of the plant in Sriperumbudur, on the outskirts of Chennai. Bundles: Another category where penetration is next to negligible is the fast-growing mobile telephony market — penetration stands at roughly 5%. Here, even as price continues to be a significant factor for determining the choice of handset or service provider, the value equation, according to Sanjay Behl, marketing head of Nokia India, is even more imperative.
Nokia found success with its ‘Made in India’ Nokia 1100, which incorporated unique features such as a torchlight, a dust-resistant keypad and an anti-slip grip to appeal to the semi-urban markets. Importantly, Behl says that even applications and software — such as T9 or language interface and text input — have to be customised to meet consumer needs. The 1100, which currently retails at Rs 2,700, is the largest selling handset in India with a market share of about 25% in terms of volumes, and 16% in terms of value.
On the other hand, another Nokia phone, the 2600, priced at Rs 4,200, is the highest selling colour model in India, with a 7% market share. In the colour segment alone, the 2600 has a 17% share. “Clear evidence of how features (colour screen) and price have been cleverly bundled to drive penetration,” says Behl. Four P’s In popular usage, “Marketing” is the promotion of products, especially Advertising and Branding. However, in professional usage the term has a wider meaning which recognizes that marketing is customer centered.
Products are often developed to meet the desires of groups of customers or even, in some cases, for specific customers. E. Jerome McCarthy divided marketing into four general sets of activities. His typology has become so universally recognized that his four activity sets, the Four P’s, have passed into the language. The Four P’s are: •Product: The product aspects of marketing deal with the specifications of the actual good or service, and how it relates to the end-user’s needs and wants. The scope of a product generally includes supporting elements such as warranties, guarantees, and support. Pricing: This refers to the process of setting a price for a product, including discounts. The price need not be monetary – it can simply be what is exchanged for the product or service, e. g. time, or attention. •Promotion: This includes advertising, Sales promotion, Publicity, and personal selling, and refers to the various methods of promoting the product, brand, or company. •Placement: refers to how the product gets to the customer; for example, point of sale placement or Retailing. This fourth P has also sometimes been called Place, referring to the channel by which a product or service is sold (e. g. online vs. etail), which geographic region or industry, to which segment (young adults, families, business people), etc. PRODUCTS OFFERED BY NOKIA There are Various Ranges of Products that Nokia Offers. Especially in Mobile phones Nokia is the Leading Manufacturer in it. Nokia Offers various Mobile Phones with varied Quality, Shape, Size, Colour, etc. Nokia Offers a Varied Range of Mobile Phones & Other accessories with it. All Mobile phones are having Different Specifications in it. Nokia is Launching a New Products Every Year. It First Does Analysis of Market & according to Taste of Consumers It Launches its Products in Market.
Till now Nokia has Launched a No. of Products in Market & It had been very Successful for Nokia after launching so many products. Nokia has Strengthened its Strategy of Working in Market. It has Revolutionised all sectors in Market. No one is So Powerful as Nokia in Field of Mobile Phones in India. There are so many Mobile Phones been in Market by Nokia. Several New Techniques & Upgradation is being done to enhance & launch a new product every time in Market. Nokia’s R& D Department is very much in Progress for working over bringing a special change in every mobile phone its launching in market.
After Launching Various Mobile phones in market till now, Nokia is now Launching various new Models of Mobile Phones i. e it is bringing new changes in the series of Mobile Phones. Firstly All Mobile Phones used to have only Black& White/ Colour Display, Messaging. But now Nokia has launched Various New Models of Mobile Phones in Mobile Series that it Has Rocked the Market. The New Models are having various Greater, Advanced Facilities from that of other phones till now. These New Models Which Nokia is going to Launch in market is having all Types of Features/Facilities like:- 1)Instant Messaging )Brighter/Broader Enhanced Colour Display 3)Large Screen 4)Touch Screen System 5)Enhanced Radio Facility 6)Mp3 System 7)Internet/GPRS 2. 0 8)Support for Ms-Office 9)Cool Applications & Games 10)Bluetooth Connectivity 11)Wireless Earphones 12) Slim Body 13) 2. 0 Mega pixel Camera etc Product Portfolio Nokia launches handsets to drive mobility NEW DELHI — Nokia launched two new affordable handsets models, 1110 and 1600, which target first-time buyers and have talking alarm and clock in five regional languages along with innovative features for ‘ease of use’.
With these new mobile phones, Nokia has expanded its entry-level portfolio in India. The Nokia 1110 (black and white display) and Nokia 1600 (coloured display) are ideal for first time users as they have an inbuilt graphical demo mode which allow users to access and familiarise themselves with the main functions of the handset, even without inserting a SIM card. Another stand out feature of these new handsets is the unique Talking Alarm and Clock in five regional languages including Hindi, Tamil, Bengali, Marathi and Gujarati.
Nokia handsets are renowned for their ease of use and the Nokia 1110 and 1600 phones continue this tradition with a new intuitive user interface that makes full use of graphical icons and large font sizes and the built-in hands-free speaker. With the new menu structure accessing basic features, such as managing calls and contacts become easier. In addition to polyphonic and MP3-grade sound ringtones, the Nokia 1110 and Nokia 1600 also feature a unique cost-management feature, such as Nokia Prepaid Tracker support to help users monitor their phone usage. This will be an operator dependent service.
Reiterating Nokia’s intent to drive affordable mobility in India and grow the base of mobile phone users. Sanjeev Sharma, Managing Director, Nokia Mobile Phones, said: “With the introduction of these new handsets we have further strengthened our entry level product portfolio by bringing in feature rich handsets with localised applications. Only 5 percent of the population understands the English language. Nokia has always tried to reach out to the masses, which has been demonstrated by our past endeavours in introducing Hindi SMS and even in our earlier campaigns.
These handsets are yet another example of Nokia’s innovation and commitment to introduce products that are relevant for Indian consumers. The Nokia 1110 and 1600 announce the dawn of a new age. Its unique talking alarm will wake up millions of Indians, not only to their daily lives, but also to a new era of mobility which has been captured in our campaign called Jaago India Jaago,” Detailing the rationale behind the Jaago India Jaago advertising campaign, Sharma said: “Indians are extremely proud of how the country has been progressing. The growth of mobility is one of the key indicators of the economic progress in India.
The advertising campaign therefore uses the ‘Talking Alarm’ functionality of the Nokia 1110 and 1600 as a metaphor to convey how more and more Indians were waking up to mobility through Nokia handsets and participating in the progress. ” Both these handsets also offer much longer talk time than the current entry phones. Nokia 1110 and Nokia 1600 phones have excellent voice quality and coverage based on state-of-the-art radio software. The new technology enables operators to add voice capacity within their networks smoothly and cost-efficiently while improving network capacity and call quality.
These were all above were Some of Features of New Upcoming Models of Nokia. Now let us Study Some of the Nokia New Models& its Features in Detail. They are as Follows:- NEW UPCOMING MODELS OF NOKIA Nokia 2630 Key Features •Ultra-slim design measuring at only 9. 9 mm •Capture and share photos with a VGA camera with 4x digital zoom •Share and transfer data via Bluetooth, GPRS, email and Internet •Listen to FM Radio in an instant with a one-touch key •Personalize your Ringtone with any MP3 Audio File 1)Nokia 2760 Key Features Refreshing, trendy design that’s progressively stylish •Capture stills or videos with a VGA camera or tune in to FM Radio for music enjoyment •Enjoy larger user memory for storing more photos, MP3 ringtones and entries into phonebook •Connect to the world via Bluetooth, GPRS and email 2)Nokia 6110 Key Features •One touch navigation button provides easy access to GPS function and maps •With HSDPA for fast web browsing and downloading of maps •2 megapixel camera and QVGA TFT 2. 2″ screen •Keeping your images crystal clear with lens slide protection screen •Listen to your messages read aloud with Message reader ) Nokia E90 Key Features •Browse the Internet and transfer media-rich files via HSDPA (up to 3. 6 Mbit/s enabled) and 3G high-speed mobile broadband •Increase mobile productivity with applications for viewing and editing documents •Talk on every continent with quad-band GSM and automatic switching between bands •Access voice and data functions quickly and easily with convenient shortcut keys •Locate meeting venues, restaurants, and places of interest with the integrated GPS •Send images captured with the integrated 3. 2 megapixel camera with flash and autofocus 3)Nokia 1650
Key Features •Easy one-touch key to activate FM radio in an instant •Enjoy easy viewing with the 65,536 colors, large screen display and large font type when dialing •Personalize your phone ring with quality MP3-grade and 32 Polyphonic ringtones •Extend your talk time with Power Saver mode Convenient one-touch key to switch on built-in flashlight 4)Nokia 2355 Key Features •Vibrant 128 x 128 pixels display in 65,536 colors •Sleek polished fold design •Integrated FM radio •Integrated flashlight •Internet ready with WAP 2. 0 browser •Multimedia messaging (MMS) functionality )Nokia 1325 Key Features •Slim 15. 2mm design •Brilliant 65,536 color display (96 x 65 pixels) •Convenient Integrated Handsfree Speaker •32-chord/voice polyphonic MIDI ringing tones •Large phonebook with 400 contacts and 5 entries per contact 6)Nokia 1208 Key Features •Experience enhanced visual with the 65,536 color display •Dust and splash proof with rubberized keypad and anti-slippery back cover •Bright flashlight for convenience and emergency •Timer tracker feature helps you controls the duration of each call •Multiple phonebook makes sharing phone easier
Easy–to-use menu in multi languages with calendars 7)Nokia 1200 Key Features •Dust and splash proof with rubberized keypad and anti-slippery back cover •Bright flashlight for convenience and emergency •Timer tracker feature helps you controls the duration of each call •Multiple phonebook makes sharing phone easier •Easy–to-use menu in multi languages with calendars 9) Nokia 2505 Key Features •Sleek and elegant at a slim 16. 65mm •Quick-press flashlight •65,536 colors with 128 x 160 pixels display •Two-way handsfree speakerphone •32-polyphonic MIDI speaker Popular Nokia user interface with 4-way scroll and center-select key •Store up to 300 contacts in phonebook, with 5 entries per contact SWOT ANALYSIS Introduction In this part of my investigation I am constructing a SWOT analysis for Nokia. I will have to Analyse the external factors that may prevent Nokia from re-launching WAP enabled mobile phones onto the market. SWOT Analysis SWOT Analysis, is a Strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a Project or in a Business venture.
It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective SWOT ANALYSIS OF COMPANY NOKIA I) MODERN SWOT ANALSYIS A SWOT analysis conducts an external and internal scan of Nokia’s business environment, it is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S), or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T).
Such an analysis of the strategic environment is referred to as a SWOT analysis. The SWOT analysis provides information that is helpful in matching the firm’s resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection. . STRENGTHS -Is a dominant player in the smartphone market via its majority ownership of Symbian and its propritary Series 60 user interface which are projected to represent majority of the 100M smartphones sold in the next 4 years. 33% market share still the largest cell phone vendor by far, with double the market share of nearest competitr – Size should enable Nokia to amortize R costs and to get cost advantages – Brand position: probably one of the top 20 brands in the world WEAKNESSES -The N-Gage is considered a flop – Being the market leader and its increase role in Symbian is giving Nokia a bad image, much like Microsoft in the PC industry. – Slow to adopt new ways of thinking: a good example are clamshell phones which are preferred by many customers. Nokia was reluctant to produce a clamshell until this year, when it launched its first model.
OPPORTUNTIIES – Increase their presence in the CDMA market, which they are just entering, as well as 3G and Edge – New growth markets where cell phone adoption still has room to go, including India and other countries. – Leverage its infrastructure business to get preference and a stronger position with carriers THREATS – Late in the game in 3G creates a risk to be displaced by leaders like Motorola, LG, NEC and others. – Asian OEMs who are entering the market very agressively (TCL, nGo Bird) – ODMs (HTC and others) enabling carriers to leverage their customer power bypassing the handset vendor.
Operators want to lessen their dependency on handset vendors and the dominance of Nokia. Orange, O2, and many other operators globally are selling their own brand of phones. ‘CONCLUSION From the Above Project I Had Come to this Conclusion That Nokia has Implemented Various Strategies in Developing It Products on a Large Scale & Becoming No. 1 Leader in The World of Mobile Phones. Nokia has used various Techniques to implement its products into the market. As per my Opinion Nokia had introduced various schemes to attract people & gain more goodwill into market.
I would like to conclude that Nokia had been launching various new products & Strategies throughout the year but still it is the No. 1 brand leader in Mobile Phones. Many people around the globe are purchasing Nokia phones as they are very cheap, good & efficient to operate. Nokia had used various marketing strategies to enhance its products into market & also they have used better & efficient market segmentation strategies to market its products according to various segments of customers in the market.
Nokia as such has used all Modern & Good techiques to tackle problems of customers in market. Customer Care & Feedback is also given more importance to increase the sales of product. Better, Efficient & Advanced Techniques are used to increase the sales of product. Also Nokia is largest manufacturer of mobile phones in India & also the No. 1 Leader in it. Various Promotional Strategies are being enrolled into the market to promote the products. New Models & their Strategies are being well utilized to enhance the product.