Nokia Marketing

Description
This is a presentation is explaining about nokia marketing.

Brand Analysis & Appraisal of

NOKIA

Company Verticals

Nokia
Services Mobile Phones 70% (eg. Ovi, Nokia Online Music Stores) 2%

Infrastructure Business
(Nokia Siemens Network) 28%

Mobile Handset Market in India
?
2007-08 5761

2006-07

4750

2005-06

3231

2004-05

1966

2003-04 0 1000

1610 2000 3000 4000 5000 6000

7000

As per IDC’s report, India’s mobile handset market touched 100.9 million units the year ended June 2009, recording a growth of 6.7% from 94.6 million units ? The growth of mobile handset market can be gauged from the fact that 27 new handset vendors entered India just in the 1st quarter of 2009.

(Value in US milion $) Mobile Handset Market in India

2008-09

Total Volume 100.9 million units

Market Share
2008-09

GSM volume 74.62 million units

CDMA volume 26.27 million units

Nokia Advantage
? Early mover advantage ? Making early investments in manufacturing and brandbuilding ? Power Of Focus on only mobile phones ? Establishing crucial distribution partnerships eg. HCL ? Aggressive pricing

Segmentation : Psychographic
High Involvement

Rational

Aspirational

Low Involvement

Positioning
? Creates a human dimension by injecting personality into product design ? Reliable ? Affordable ? Environmentally concious under the ‘We Recycle’ campaign

Product
It has differentiated phones into broad categories based on Use, Need & Price 1. Connect 2. Business 3. Lifestyle and Concept

Nokia N-Series
Nokia 30 & 40 series

Nokia E-Series

Concept Phones

Pricing
? Penetration Pricing: For low-end phones, Nokia uses this strategy so that they can gain market share ? Price Skimming: For high-end phones, Nokia uses this strategy. ? Competition based Pricing: Similar products at lower price to gain another company’s market share. It limits Nokia’s profits and also leads to losses due to under-pricing in case of Price Wars.

Place
? 72,000 outlets out of 79,000 sell Nokia products ? 9 Nokia concept Stores (Experience the Product before purchasing it) ? Nokia Franchisee ? Multi-brand stores (like HotSpot, Mobile Store), Hyper markets, Malls

Promotion
? Print Media, Outdoor Advertising ? Extensive TV campaigns and Advertisements in regional languages ? Capturing Ad Space ? Below the line marketing ? Push as well as pull promotional strategies ? Tie-up with Service Providers ? Brand Ambassador Priyanka Chopra / Shahrukh Khan ? Digital channels, mobile sites, blogs ? New users through corporate deals

Promotion
Rural Market
? Nokia Life Tools(Jeevan Sadhan): SMS Mechanism,Sachet Pricing, Daily cost of Rs 1 only ? ‘Showrooms on wheels’ and ‘Rural care on the go’ ? Play a role in augmenting the incomes by tying-up with Microfinance institutions

Building Brand Nokia
? Umbrella Branding by promoting platforms ? Understanding consumer behavior and developing innovative products accordingly ? Retaining excitement ? Promoted as an Aspirational Brand ? Content based services to all layers of population ? Concept Stores and Service Centers aimed to offer the right mix as well as the right experience to customers

Brand Vision
? ? ? ? ? Rational: Quality versus price across price segements Emotional: Able to keep in touch with near and dear ones Aspirational : New needs and features Physical: Size and comfort Spiritual: Local language and SMS people during festivals

Competitor Analysis

Low-End Competitors
Sony Ericsson LG Motorola Samsung
• Looked upon as a stylish entertainment phone • High on features but low on price • Focus only on CDMA • Low on features and price • American style • Very low cost

• Concentration on having flipflops and clamshells
• Sagem • BenQ • Local Players

Others

High-End Competitors
Sony Ericsson Samsung HTC
• Integration of features facilitating efficient communication (i.e sound clarity, longetivity, etc.) and entertainment
• Recent entry with the launch of Corby • Targetting youth

• Premium segment

Apple
Blackberry Chinese phones

• Luxurious and stylish • High on features and price

• Business segment

• High on features but low on cost • Lack consumer confidence

Market Potential
? In 2008 on an average 10mn new subscibers added each month. ? Rural Population(India): 812 million and current Penetration is only 12% ? Nokia concentrating earlier on penetration now looking at replacement. ? In 2008, replacement market accounted for 35% of retail sales. o Urban: 12-15 months o Rural: 30-36 months ? Accessories growth projection 15-20%

Recycling
Individual Producer Responsibility

25% are being passed
on to friends or family

8% other

3% are being recycled

4% are being thrown into landfill

16% of people are selling their
used devices particularly in emerging markets

44% are being kept at homes

84% of people in India don’t think about recycling their mobile phones

Recommendations
? ? ? ? ? ? More penetration in rural market Change in the image for younger generation Focus on premium segment Future Integration Tap the recycle market Product innovation with future based applications

References
• • • • • • www.nokia.co.in www.idcindia.com/nokia.html [email protected]/data www.businessline.com/handsetmarket.html www.brandingasia.com www.euromonitor.com/nokia/marketshare

Thank You



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