Description
This presentation is about marketing strategy of Nokia and it covers 4Ps of Nokia and SWOT analysis of Nokia.
About the Company (HISTORY):
Nokia Corporation, one of the world's largest telecommunications equipment manufacturers, with headquarters in Keilaniemi of Espoo, Finland, is best known today for its leading range of mobile phones. Nokia also produces mobile phone infrastructure and other telecommunications equipment for applications such as traditional voice telephony, ISDN (Integrated Services Digital Network), broadband access, professional mobile radio, voice over IP, wireless LAN and a line of satellite receivers. Nokia provides mobile communication equipment for every major market and protocol, including GSM, CDMA, and WCDMA. Nokia’s foundation goes back to 1865 when it was established as a groundwood-pulp mill by Fredrik Idestam, a mining engineer, on the banks of Tammerkoski rapids. A second mill was built in 1868 near the town of Nokia. Idestam collaborated with his close friend and statesman Leo Machelin in 1871 and the company was renamed and transformed in a share company, and it laid the foundation of the Nokia Company. In 1898, Finnish Rubber Works was founded by Eduard Polón, which later became Nokia's rubber business. In the beginning of the 20th century, Finnish Rubber Works factories were established near Nokia and Nokia started being used as their brand. Shortly after World War I Finnish Rubber Works acquired Nokia wood mills as well as Finnish Cable Works, a producer of telephone and telegraph cables. In 1967, all the three companies were merged together and came to be called as the Nokia Corporation. The name Nokia originated from the river which flowed through the town of the same name (Nokia).
NOKIA’S EMERGENCE IN THE MOBILE PHONE INDUSTRY:
Nokia Corporation is the world's largest manufacturer of mobile phones, serving customers in 130 countries. Nokia is divided into four business groups: Mobile Phones, Multimedia, Enterprise Solutions, and Networks. The Mobile Phones group markets wireless voice and data products in consumer and corporate markets. The Multimedia segment sells mobile gaming devices, home satellite systems, and cable television set-top boxes. The Enterprise Solutions group develops wireless systems for use in the corporate sector. Wireless switching and transmission equipment is sold through the company's Networks division. Nokia operates 15
manufacturing facilities in nine countries and maintains research and development facilities in 12 countries. Nokia is a communications based company, which focuses on mobile telephone technology. When mobile phones first became available in the market, the models were very basic with the best technology being SMS messaging (sending written "text messages" from one phone to another). Then the next advance in technology was being able to put different faces on your phone (different style covers for the front and back of your mobile device) and after that the technological advances have come thick and fast, with advances such as: *Music * MMS * WAP (internet) * Polyphonic ringtones * Predictive SMS (where the phone will finish off a word for you if it can guess what you are typing) * Camera phones * Video recorders , and so many other features.
NOKIA…CONNECTING PEOPLE….
In 1993, Nokia adopted the 'Connecting People' slogan as its company's tagline. The slogan, undoubtedly well thought of, gives the Nokia brand a strong position in the telecommunications market expressing the company's mission to connect people regardless of barriers or distance.
NOKIA: ADDRESSING THE CONSUMER NEEDS IN INDIA:
Taking into account five needs-rational, emotional, aspirational, physical and spiritual-of the Indian consumer, Nokia as a brand has been able to address all these five needs to various degrees at various stages. The rational need of quality versus price has been met across price segments with options. The emotional need of being able to keep in touch with near and dear ones during times of joy and sorrow is being adequately fulfilled. The aspirational need with the new models and features and the look-good approach has helped the brand become a sought-after, must-have brand.
The physical need has been taken care of through size and comfort. And, finally, the spiritual need has been met through (local) languages and people --whether they are 18 or 80 -- being able to greet one another via SMS [text messages] during religious festivals. Nokia's commitment to the Indian consumer 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. The phones gave an integrated torch, a sheath covered keypad for dust protection and a slip-free grip. The phones were also introduced in other markets in Asia and Africa. Nokia's first ‘Made for India’ model, the 1100, is the largest selling model in the Indian GSM handset market.
Marketing and Distribution Strategy
Due to the rapid technological advancements and coming of many new companies into the competition , Nokia’s strategy is to remain committed to strong growth, profitability and responsible market leadership. In its marketing endeavours, Nokia has ensured that its advertising ensures its phones stand out from the clutter of mobile phone advertising. The advertising is aimed at making communication relevant to strengthen consumer-connect with the brand. Nokia has not used the pricing plank for marketing its phones. However, it did adopt an aggressive pricing strategy to fight the grey market, successfully. Initially the grey market accounted for 80 per cent of the mobile phone sales due to a huge price differential between the legally imported and the grey market phones. Nokia's strategy combined focusing on the mobile phone market, establishing crucial distribution partnerships, making early investments in manufacturing and brand-building, and developing innovative product features -- such as mobile phones that could double as flashlights. Even as the government slashed duties to reduce the scope of arbitrage, Nokia and other handset players too, reduced their prices to induce the consumer to buy a phone from the authorised phone shops. Today, the grey market comprises less than 20 per cent of the total handset market. As part of its distribution strategy, Nokia has ensured that it has a presence in all 2,000 cities and towns that have cellular coverage. Nokia's distribution network of over 30,000 outlets is roughly double that of its rivals, according to industry sources. Nokia started distributing its phones through a partnership with HCL (formerly Hindustan Computers Ltd.), which had already built an extensive network for its own products. Recently, Nokia has decided to supplement that with its own distribution efforts. The other edge that Nokia has over its rivals is the large portfolio of phones. Unlike other consumer durables, a mobile phone is a style statement much like the wristwatch. The design, style and colour elements play an important role when consumers are choosing a phone. Today it has the largest range of handset models to choose from. 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 is believed to empower the consumer by offering a choice of more than one phone at every price point and also catering from midmarket range of corporate to techno-loving teenagers.
MARKETING MIX ELEMENTS FOR NOKIA: Product:
Since today’s markets are highly competitive, Nokia tries to fulfill the following characteristics in its products and services so that the needs of the customers are met. Functionality: · Quality · Appearance · Packaging · Brand · Service · Support · Warranty
Nokia has an extensive product range and anticipates consumer trends early. For instance, Nokia was the first to introduce a phone for the fashion segment-the 8210. In India -- where large numbers of the rural population do not have electricity, and power cuts are commonplace even in the cities - having a torch built into a mobile phone is a distinct and tangible benefit. The Nokia 1100, the first made-for-India phone, has been a runaway success. The Nokia Product Line [Manufacturing/Designing/Architecture] seems to be amazing when we look at how fast Nokia was able to get new models in to the Market and how fast they change the entire product lines/series. Nokia keeps the base of a particular product series almost the same. Changes are made in the panel, the software features, the memory size, the screen, etc. and a new range of products becomes available. For instance, the 6220 "Classic", while inheriting many of the features of the N95 / N96, has a smaller display, less memory, and is missing the industrial design touches. It’s still a great phone, but is now priced and marketed as a mid-market device rather than a high end device. The 6210 "Navigator", by contrast, is a paradox. It’s the most advanced navigation phone that Nokia sells, equipped with a compass and GPS, plus a
three year subscription to Nokia Maps (value €217 – more than half the price of the phone!). With its other features, it really should have been packaged as an N-Series device. The specifications on the 6210 are nearly identical to the N78, plus it includes the map data subscription.
Price
How much are the intended customers willing to pay? Here a pricing strategy needs to be decided upon. Even if you decide not to ask (enough) money for a product or service, you must realize that this is a conscious decision and forms part of the pricing strategy. Although competing on price is as old as mankind, the consumer is often still sensitive for price discounts and special offers. Price has also an irrational side: something that is expensive must be good. Permanently competing on price, for many companies, is not a very sensible approach. Major Pricing factors which needed to be taken consideration of are: · Discounts · Financing · Leasing Options · Allowances. The Nokia range available in India extends from Rs 1,499 ($37) at the lower end to Rs 45,000 ($1,125) at the high end. Nokia's prices are usually competitor based, in such a way as, they try to keep their prices a bit lower then those of the closest competitors, but not as low as the "smallest" competition as consumers do not mind paying the extra money for the "extra quality" they will receive with a well known brand, such as Nokia.
Place
Is a product available at the right place, at the right time, in the right quantities? Nokia seeks to answer these questions by working on the following means: o o o o Logistics Channel members Channel Motivation Market Coverage
o Service Levels o Internet o Accessibility Nokia started opening its dedicated Concept Stores which feature the full range of Nokia products including handsets, mobile enhancements, ring tones, graphics, games, software and exclusive Nokia merchandise. Nokia has set up concept stores -- seven so far -- in Indian cities.
Promotion
How are the chosen target groups informed or educated about the organization and its products? This includes all the weapons in the marketing armory - advertising, selling, sales promotions, Public Relations, etc. With the other three P's having lost much of their meanings in today's markets, Promotion has become the most important P to focus on. Advertising: Front Line Service Public Relations Message Direct Sales Sales Media Budget Nokia's advertisements have dwelt on the human angle of mobile technology, rather than laying emphasis on their technical aspects. Localised communications have helped reinforce the core brand strength of “human technology that appeals to consumers.” The “Har Jeb Mein Rang” (colour in every pocket) advertisement was created keeping in mind a market aspiring to go for colour displays. As a market leader, Nokia's advertising has also had to play the role of educator. During the days when phones in the grey market sold much more than legal phones, Nokia undertook a campaign to educate people about the advantages of going legit and build a goodwill as well as increased its customer base.
People:
All people directly or indirectly involved in the consumption of a service are an important part of the extended marketing mix. Knowledge Workers, Employees, Management and other Consumers often add significant value to the total product or service offering.
Product Life Cycle:
The product life cycle for Nokia typically has four stages v.i.z Introduction, Growth, Maturity and Decline. In its introduction stage, Nokia had produced phones that were bulky and operational for simple communication only. At that stage, there were a few competitors to the company due to which it emerged as the market leader. In its growth stage, Nokia like any other company promoted its products through various marketing strategies including promotions, advertising and using technology to allow users to watch videos on their Nokia handsets. During this stage, Nokia had made considerable profits. In the year 2005, the company had reported operating profits worth $1.32 billion (Nokia financials 2005). Thus, the company in its growth stage rightly made huge operating profits. However, the emergence of newer technologies gradually decreased Nokia’s product demand in the marketplace. This was Nokia’s declining stage when it made little efforts to market or promote its older phones since they were technologically outclassed. Nokia during this period had also closed the production of many of its phones due to the lag in technology within these phones. Thus, Nokia demonstrates the adoption of a life cycle which is typical to any product in general. Like all mobile phone companies either look for entry into newer markets or try to relaunch their products in a different way during their respective decline stages either by upgrading their technology or by re-pricing its products, Nokia is also adopting the same strategy.
SWOT Analysis of the Company: Nokia
Strengths The reasons for Nokia's stupendous success in India include amazing branding, a focussed marketing exercise and distribution strength. Nokia has largest network of distribution and selling as compared to other mobile phone company in the world. It is backed with the high quality and professional team in the HRD Dept. Nokia has several R&D centers and labs in India. The financial aspect is very strong in case of Nokia as it has many more profitable business. The wide range of products for all classes, user friendly aspect of most Nokia’s products and availability of all the
accessories one wants makes Nokia high on demand and the No-1 selling mobile phones in the world. For instance, Nokia has understood the Indian market by straddling all segments: the high, the middle and the low end. The company has created a ladder for consumers to climb from the low end to the middle end to the high end, while being fully assured that they will be with the mother brand Nokia. The re-sell value of Nokia phones is high compared to other company’s product. Compared to other devices in the market today — say the Apple iPhone, BlackBerry or any of the Windows Mobile devices — the starkest contrast is in how Nokia’s products are being designed for both content consumption and creation, while their competitors are primarily focused on content consumption. Nokia has been able to race 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 per cent globally. Its closest rival in the Indian market, Samsung, comes a poor second with less than 10 per cent market share.
Weakness: Nokia has many strengths and some weakness. Some of the weakness includes the price of the product offered by the company. Some of the products are not user friendly. Not concern about the lower class of the society people. Not targeting promotion toward them. The price of the product is the main issue. The service centers in India are very few and scare. So after sales service is not good. Opportunity: Nokia has ample of opportunity to expand its business. With the wide range in products, features and different price range for different people, it has an advantage over the competitors around. With the opportunity like ‘Telecom penetration in India’ being at the peak time, Nokia has an opportunity to increase its sales as well as the market share. As the standard of living in India has increased the purchasing power of the people as increased as well, so Nokia has to target right customer at right time to gain the most out of the situation. Threats:
Nokia has many threats to tackle to maintain its position as market leader. The threats like emerging of other mobile companies in the market. The companies like Motorola, Siemens, Sony Eriksson, Cingular (U.S) etc. these companies have come to the stand of tough competition with Nokia in the field of Mobile Phones. Threats can be like providing cheap phones, new features, new style and type, good after sales service etc. For example, an average Nokia entry level phone possesses the marvelous consumer insights, cool design and everything that builds a "Nokia". However, for the same price, an entry level Siemens also possesses cool design, nice menu and plus incredible technology such as Java. Should the consumers decide to go beyond ringones, Siemens will be a good candidate for top spot. So, Nokia has to keep in mind the growing competition around. Nokia has to make strategies to tackle problems in the present and the near future. The growing demand of WLL network can cause drop in sales for Nokia, as Nokia provides many less CDMA phones to the customer.
Market share of year 2005
Market Share of year 2010
doc_633656282.docx
This presentation is about marketing strategy of Nokia and it covers 4Ps of Nokia and SWOT analysis of Nokia.
About the Company (HISTORY):
Nokia Corporation, one of the world's largest telecommunications equipment manufacturers, with headquarters in Keilaniemi of Espoo, Finland, is best known today for its leading range of mobile phones. Nokia also produces mobile phone infrastructure and other telecommunications equipment for applications such as traditional voice telephony, ISDN (Integrated Services Digital Network), broadband access, professional mobile radio, voice over IP, wireless LAN and a line of satellite receivers. Nokia provides mobile communication equipment for every major market and protocol, including GSM, CDMA, and WCDMA. Nokia’s foundation goes back to 1865 when it was established as a groundwood-pulp mill by Fredrik Idestam, a mining engineer, on the banks of Tammerkoski rapids. A second mill was built in 1868 near the town of Nokia. Idestam collaborated with his close friend and statesman Leo Machelin in 1871 and the company was renamed and transformed in a share company, and it laid the foundation of the Nokia Company. In 1898, Finnish Rubber Works was founded by Eduard Polón, which later became Nokia's rubber business. In the beginning of the 20th century, Finnish Rubber Works factories were established near Nokia and Nokia started being used as their brand. Shortly after World War I Finnish Rubber Works acquired Nokia wood mills as well as Finnish Cable Works, a producer of telephone and telegraph cables. In 1967, all the three companies were merged together and came to be called as the Nokia Corporation. The name Nokia originated from the river which flowed through the town of the same name (Nokia).
NOKIA’S EMERGENCE IN THE MOBILE PHONE INDUSTRY:
Nokia Corporation is the world's largest manufacturer of mobile phones, serving customers in 130 countries. Nokia is divided into four business groups: Mobile Phones, Multimedia, Enterprise Solutions, and Networks. The Mobile Phones group markets wireless voice and data products in consumer and corporate markets. The Multimedia segment sells mobile gaming devices, home satellite systems, and cable television set-top boxes. The Enterprise Solutions group develops wireless systems for use in the corporate sector. Wireless switching and transmission equipment is sold through the company's Networks division. Nokia operates 15
manufacturing facilities in nine countries and maintains research and development facilities in 12 countries. Nokia is a communications based company, which focuses on mobile telephone technology. When mobile phones first became available in the market, the models were very basic with the best technology being SMS messaging (sending written "text messages" from one phone to another). Then the next advance in technology was being able to put different faces on your phone (different style covers for the front and back of your mobile device) and after that the technological advances have come thick and fast, with advances such as: *Music * MMS * WAP (internet) * Polyphonic ringtones * Predictive SMS (where the phone will finish off a word for you if it can guess what you are typing) * Camera phones * Video recorders , and so many other features.
NOKIA…CONNECTING PEOPLE….
In 1993, Nokia adopted the 'Connecting People' slogan as its company's tagline. The slogan, undoubtedly well thought of, gives the Nokia brand a strong position in the telecommunications market expressing the company's mission to connect people regardless of barriers or distance.
NOKIA: ADDRESSING THE CONSUMER NEEDS IN INDIA:
Taking into account five needs-rational, emotional, aspirational, physical and spiritual-of the Indian consumer, Nokia as a brand has been able to address all these five needs to various degrees at various stages. The rational need of quality versus price has been met across price segments with options. The emotional need of being able to keep in touch with near and dear ones during times of joy and sorrow is being adequately fulfilled. The aspirational need with the new models and features and the look-good approach has helped the brand become a sought-after, must-have brand.
The physical need has been taken care of through size and comfort. And, finally, the spiritual need has been met through (local) languages and people --whether they are 18 or 80 -- being able to greet one another via SMS [text messages] during religious festivals. Nokia's commitment to the Indian consumer 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. The phones gave an integrated torch, a sheath covered keypad for dust protection and a slip-free grip. The phones were also introduced in other markets in Asia and Africa. Nokia's first ‘Made for India’ model, the 1100, is the largest selling model in the Indian GSM handset market.
Marketing and Distribution Strategy
Due to the rapid technological advancements and coming of many new companies into the competition , Nokia’s strategy is to remain committed to strong growth, profitability and responsible market leadership. In its marketing endeavours, Nokia has ensured that its advertising ensures its phones stand out from the clutter of mobile phone advertising. The advertising is aimed at making communication relevant to strengthen consumer-connect with the brand. Nokia has not used the pricing plank for marketing its phones. However, it did adopt an aggressive pricing strategy to fight the grey market, successfully. Initially the grey market accounted for 80 per cent of the mobile phone sales due to a huge price differential between the legally imported and the grey market phones. Nokia's strategy combined focusing on the mobile phone market, establishing crucial distribution partnerships, making early investments in manufacturing and brand-building, and developing innovative product features -- such as mobile phones that could double as flashlights. Even as the government slashed duties to reduce the scope of arbitrage, Nokia and other handset players too, reduced their prices to induce the consumer to buy a phone from the authorised phone shops. Today, the grey market comprises less than 20 per cent of the total handset market. As part of its distribution strategy, Nokia has ensured that it has a presence in all 2,000 cities and towns that have cellular coverage. Nokia's distribution network of over 30,000 outlets is roughly double that of its rivals, according to industry sources. Nokia started distributing its phones through a partnership with HCL (formerly Hindustan Computers Ltd.), which had already built an extensive network for its own products. Recently, Nokia has decided to supplement that with its own distribution efforts. The other edge that Nokia has over its rivals is the large portfolio of phones. Unlike other consumer durables, a mobile phone is a style statement much like the wristwatch. The design, style and colour elements play an important role when consumers are choosing a phone. Today it has the largest range of handset models to choose from. 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 is believed to empower the consumer by offering a choice of more than one phone at every price point and also catering from midmarket range of corporate to techno-loving teenagers.
MARKETING MIX ELEMENTS FOR NOKIA: Product:
Since today’s markets are highly competitive, Nokia tries to fulfill the following characteristics in its products and services so that the needs of the customers are met. Functionality: · Quality · Appearance · Packaging · Brand · Service · Support · Warranty
Nokia has an extensive product range and anticipates consumer trends early. For instance, Nokia was the first to introduce a phone for the fashion segment-the 8210. In India -- where large numbers of the rural population do not have electricity, and power cuts are commonplace even in the cities - having a torch built into a mobile phone is a distinct and tangible benefit. The Nokia 1100, the first made-for-India phone, has been a runaway success. The Nokia Product Line [Manufacturing/Designing/Architecture] seems to be amazing when we look at how fast Nokia was able to get new models in to the Market and how fast they change the entire product lines/series. Nokia keeps the base of a particular product series almost the same. Changes are made in the panel, the software features, the memory size, the screen, etc. and a new range of products becomes available. For instance, the 6220 "Classic", while inheriting many of the features of the N95 / N96, has a smaller display, less memory, and is missing the industrial design touches. It’s still a great phone, but is now priced and marketed as a mid-market device rather than a high end device. The 6210 "Navigator", by contrast, is a paradox. It’s the most advanced navigation phone that Nokia sells, equipped with a compass and GPS, plus a
three year subscription to Nokia Maps (value €217 – more than half the price of the phone!). With its other features, it really should have been packaged as an N-Series device. The specifications on the 6210 are nearly identical to the N78, plus it includes the map data subscription.
Price
How much are the intended customers willing to pay? Here a pricing strategy needs to be decided upon. Even if you decide not to ask (enough) money for a product or service, you must realize that this is a conscious decision and forms part of the pricing strategy. Although competing on price is as old as mankind, the consumer is often still sensitive for price discounts and special offers. Price has also an irrational side: something that is expensive must be good. Permanently competing on price, for many companies, is not a very sensible approach. Major Pricing factors which needed to be taken consideration of are: · Discounts · Financing · Leasing Options · Allowances. The Nokia range available in India extends from Rs 1,499 ($37) at the lower end to Rs 45,000 ($1,125) at the high end. Nokia's prices are usually competitor based, in such a way as, they try to keep their prices a bit lower then those of the closest competitors, but not as low as the "smallest" competition as consumers do not mind paying the extra money for the "extra quality" they will receive with a well known brand, such as Nokia.
Place
Is a product available at the right place, at the right time, in the right quantities? Nokia seeks to answer these questions by working on the following means: o o o o Logistics Channel members Channel Motivation Market Coverage
o Service Levels o Internet o Accessibility Nokia started opening its dedicated Concept Stores which feature the full range of Nokia products including handsets, mobile enhancements, ring tones, graphics, games, software and exclusive Nokia merchandise. Nokia has set up concept stores -- seven so far -- in Indian cities.
Promotion
How are the chosen target groups informed or educated about the organization and its products? This includes all the weapons in the marketing armory - advertising, selling, sales promotions, Public Relations, etc. With the other three P's having lost much of their meanings in today's markets, Promotion has become the most important P to focus on. Advertising: Front Line Service Public Relations Message Direct Sales Sales Media Budget Nokia's advertisements have dwelt on the human angle of mobile technology, rather than laying emphasis on their technical aspects. Localised communications have helped reinforce the core brand strength of “human technology that appeals to consumers.” The “Har Jeb Mein Rang” (colour in every pocket) advertisement was created keeping in mind a market aspiring to go for colour displays. As a market leader, Nokia's advertising has also had to play the role of educator. During the days when phones in the grey market sold much more than legal phones, Nokia undertook a campaign to educate people about the advantages of going legit and build a goodwill as well as increased its customer base.
People:
All people directly or indirectly involved in the consumption of a service are an important part of the extended marketing mix. Knowledge Workers, Employees, Management and other Consumers often add significant value to the total product or service offering.
Product Life Cycle:
The product life cycle for Nokia typically has four stages v.i.z Introduction, Growth, Maturity and Decline. In its introduction stage, Nokia had produced phones that were bulky and operational for simple communication only. At that stage, there were a few competitors to the company due to which it emerged as the market leader. In its growth stage, Nokia like any other company promoted its products through various marketing strategies including promotions, advertising and using technology to allow users to watch videos on their Nokia handsets. During this stage, Nokia had made considerable profits. In the year 2005, the company had reported operating profits worth $1.32 billion (Nokia financials 2005). Thus, the company in its growth stage rightly made huge operating profits. However, the emergence of newer technologies gradually decreased Nokia’s product demand in the marketplace. This was Nokia’s declining stage when it made little efforts to market or promote its older phones since they were technologically outclassed. Nokia during this period had also closed the production of many of its phones due to the lag in technology within these phones. Thus, Nokia demonstrates the adoption of a life cycle which is typical to any product in general. Like all mobile phone companies either look for entry into newer markets or try to relaunch their products in a different way during their respective decline stages either by upgrading their technology or by re-pricing its products, Nokia is also adopting the same strategy.
SWOT Analysis of the Company: Nokia
Strengths The reasons for Nokia's stupendous success in India include amazing branding, a focussed marketing exercise and distribution strength. Nokia has largest network of distribution and selling as compared to other mobile phone company in the world. It is backed with the high quality and professional team in the HRD Dept. Nokia has several R&D centers and labs in India. The financial aspect is very strong in case of Nokia as it has many more profitable business. The wide range of products for all classes, user friendly aspect of most Nokia’s products and availability of all the
accessories one wants makes Nokia high on demand and the No-1 selling mobile phones in the world. For instance, Nokia has understood the Indian market by straddling all segments: the high, the middle and the low end. The company has created a ladder for consumers to climb from the low end to the middle end to the high end, while being fully assured that they will be with the mother brand Nokia. The re-sell value of Nokia phones is high compared to other company’s product. Compared to other devices in the market today — say the Apple iPhone, BlackBerry or any of the Windows Mobile devices — the starkest contrast is in how Nokia’s products are being designed for both content consumption and creation, while their competitors are primarily focused on content consumption. Nokia has been able to race 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 per cent globally. Its closest rival in the Indian market, Samsung, comes a poor second with less than 10 per cent market share.
Weakness: Nokia has many strengths and some weakness. Some of the weakness includes the price of the product offered by the company. Some of the products are not user friendly. Not concern about the lower class of the society people. Not targeting promotion toward them. The price of the product is the main issue. The service centers in India are very few and scare. So after sales service is not good. Opportunity: Nokia has ample of opportunity to expand its business. With the wide range in products, features and different price range for different people, it has an advantage over the competitors around. With the opportunity like ‘Telecom penetration in India’ being at the peak time, Nokia has an opportunity to increase its sales as well as the market share. As the standard of living in India has increased the purchasing power of the people as increased as well, so Nokia has to target right customer at right time to gain the most out of the situation. Threats:
Nokia has many threats to tackle to maintain its position as market leader. The threats like emerging of other mobile companies in the market. The companies like Motorola, Siemens, Sony Eriksson, Cingular (U.S) etc. these companies have come to the stand of tough competition with Nokia in the field of Mobile Phones. Threats can be like providing cheap phones, new features, new style and type, good after sales service etc. For example, an average Nokia entry level phone possesses the marvelous consumer insights, cool design and everything that builds a "Nokia". However, for the same price, an entry level Siemens also possesses cool design, nice menu and plus incredible technology such as Java. Should the consumers decide to go beyond ringones, Siemens will be a good candidate for top spot. So, Nokia has to keep in mind the growing competition around. Nokia has to make strategies to tackle problems in the present and the near future. The growing demand of WLL network can cause drop in sales for Nokia, as Nokia provides many less CDMA phones to the customer.
Market share of year 2005
Market Share of year 2010
doc_633656282.docx