CONFIDENTIAL

Nokia Corporation is a Finland based multinational company

Headquarter -- Keilaniemi, Espoo, city neighboring Finland's capital Helsinki.

CEO -- Olli-Pekka Kallasvuo

Chairman -- Jorma Ollila.

Founder -- Fredrik Idestam in 1865.

Nokia started as a pulp, rubber and cable manufacturer World's largest manufacturer of mobile phone since

1998 Market share:13% in early 1992 to 20% in late 1993. Market Share -- 39% in Q4 2009

NOKIA

:Vision:Voice Goes Mobile….If it can go mobile – it will

:Mission:Connecting People

Present LogoPresent Logo

Nokia is one of the fastest growing brands in the world

NOKIA INDUSTRIES

• Paper products• Tires (car and bicycle)• Footwear (including Wellington boots)• Communications cables• Consumer electronics; such as televisions• Personal computers• Electricity generation machinery• Military technology and equipment• Robotics• Capacitors• Plastics• Aluminium• Chemicals

NOKIA PRODUCTS

• Military communications and equipment

:Like Message device system

• ADSL modems

• Digital television – (digital set-top boxes)

• Personal computers (1980)

• Mini laptops –

On August 24, 2009, Nokia announced that they will be entering the PC business with a high-end mini laptop called the Nokia Booklet 3G

• Internet Tablet

• GPS products Global Positioning System

NOKIA PRODUCTS

EVOLUTION OF THE INDUSTRY

• The cellular breakthrough was achieved at AT&T’s Bell Labs. In 1979.

• By the beginning of 1993,cellular service was in place in more than 90 countries.

• Initially mobile communication was represented by pagers.

• Then introduced was the PDA.

CELLULAR INDUSTRY

• The cellular telephone industry consisted of the telecommunication industry of the production of the phones, infrastructure and the operators of the infrastructure.

• Motorola, Ericsson and Nokia were manufacturers of both infrastructure and cellular phones.

• Initially it was the fixed wired communication.

• Nordic govt. had chosen NMT450 analog standard in 1981.

ADVANCEMENTS IN TECHNOLOGY

• Cellular users roam as they move from coverage of one service provider to another.

• NMT first provided the roaming facility in the Nordic region as a result of the agreement between service providers.

• Several producers of cellular telephones existed in Nordic regions such as Ericsson and Nokia.

• Siemens was among the others European providers of cellular telephones ,primarily focused on the German market.

FURTHER ADVANCEMENTS

• In US cellular telecommunication began in 1983, with the implementation of the AMPS.

• Japan was the first country to license cellular service in 1981,services were offered by NTT.

• In the mid 1993,there were 27.3 mn analog subscribers, US accounting 48%, Europe 25% and Asia- Pacific (including Japan) 15%.

CHANGE IN TECHNOLOGY

• Increasing subscribers and less frequency bandwidth prompted emergence of Digital Technologies.

• The first standard employing Digital Technologies were the Pan European GSM and the American TDMA.

• Digital signals take up less bandwidth in the radio spectrum allowing a given allotted channel range to carry more information.

• Later, both Analog and Digital standards prevailed in the regional markets.

STATE OF CONFUSION

• Development costs rose sharply in the initial stage of the Digital era.

• Large sized development teams required.

• Analog standards were comparatively low in knowledge content to Digital standards and less suited for mass production.

MARKET IMPLICATIONS

• GSM introduced in the Europe.

• GSM was expected to take off all the Analog subscribers(13 mn) by 1997,but the latter were the cash cows and were to take a lot more time to vanish off.

• A bit later GSM roaming agreements stretched across borders allowing long distance communication within the coverage area.

MARKET IMPLICATIONS …cont’d

• Then came the PCM (public comm. Network) as a result of the limited capacity of the GSM in the highly populated areas.

• PCM uses higher operating frequency with each connection taking half the bandwidth thereby ensuring higher capacity.

NOKIA MOBILE PHONES

• Nokia mobile phones represented 26% of the group’s net sales, corresponding to $1.1 bn.

• R&D expenditures were $50.3 mn and $73.6 mn in 1992 and 1993 respectively.

• Being one of the most innovative and competitive market in telecommunication, it was shaped by vigorous rivalry.

• They also had OEM (original equipment producer) status for Philips Hitachi Swatch and AT&T.

Time

Sale

s or

Pr

ofits

Growth

Maturity

Decline

Introduction

Sales curve

The Concept Phones

Nokia E- series

Nokia Symbian & N- Series

Nokia 30 & 40 Series

Product life cycle of NOKIA

Joint Venture…• Nokia Siemens Networks is a joint venture between Nokia

and Siemens AG on 19 June 2006. • Nokia Siemens Networks services division is based in INDIA• Nokia Siemens Networks has operations in some 150

countries• They merge their mobile and fixed-line phone network

equipment businesses to create one of the world's largest network

• Both the companies have 50% stake

Acquisitions…

• Since December 1997, Nokia has acquired 37 companies or businesses

• On August 5, 2009, Nokia acquire Cellity, a mobile software company

• In September, 2008, Nokia acquired OZ Communications of Canada

• In July 10, 2008, Nokia bought Navteq, a U.S.-based supplier for a price of $8.1 billion

Acquisitions…

• In September 2007, Nokia acquire Enpocket, a supplier of mobile advertising technology

• In July 2007, Nokia acquired Twango

Net Sales 2009Nokia Mobile Phones

net sales by region

Europe & Africa46%

Americas 35%

Asia Pacific18%

• Number of mobile subscribers in INDIA has crossed the 250 million mark.

• Mobile phone production in India was expected to grow from 51 million units to 110 million units by 2011.

• Handset Market Share

Nokia: 49.5% Sony: 10.1% Samsung: 12% Motorola: 9.9% Others: remaining

Marketing Strategies Nokia…• Focused on Handset Manufacture only • Enhance Product Portfolio • Increase Distribution Channels• Adjust Preferences for specific markets • Customer Satisfaction • Focused on Replacement • Increase Commitment to Emerging Market• Improve Collaboration on Designs • Ensure Accountability and Quality• Aggressive Pricing

NOKIA’S TOP 5 PRIORITIES

• Great Products

• Improve Customer Satisfaction

• Improve R&D Effectiveness

• Better Align Demand and Supply Network

• Drive Nokia End to End Advantage

Nokia uses a pricing strategy that best suits the product.

Market Penetration- Nokia 1100.

Market Skimming- N-95.

Hence, The Strategy which was used for N-Series & E-Series was Market Skimming.

Place mix• Nokia has opened its retail outlet ‘Nokia Priority’ as well as many authorized

dealers at various places.

Consumer

Manufacturer Dealer

Promotion mixAIDA in Nokia – :

• A – Attention : attract the attention of the customer.

• I – Interest : raise customer interest by demonstrating features, advantages, and benefits.

• D – Desire : convince customers that they want and desire the product or service and that it will satisfy their needs.

• A – Action : lead customers towards taking action and/or purchasing.

Discounts are provided to online Nokia purchasers through Nokia discount coupons or coupon codes

Commission is also provided to retailers on the sale of every Nokia cell phones and accessories.

Product Promotion…

Advertising: Through TV, Sign boards, Bill boards, Radio, Newspaper, Broachers, Posters, Dummies and display stands

During 2007, 15,000 ton packaging material has been saved by using smaller packaging.

Nokia have reduced the amount of printed material inside the box,

In 2007 Nokia began to increase the level of recycled content

Packaging…

Packaging is important because it protects products as they make their way from factory to customers.

Attractive, Good & Secure Packing

• Branding Decisions :

Nokia follows Umbrella branding “N Series” & “E Series”

Logo shows their brand personality Nokia focused on building customer,

relationship and trust Building friendship and trust is the

heart Nokia brand

Branding…Nokia built its brand with high-end multimedia handsets for upscale buyers and low-priced phones for emerging countries.

• Nokia’s key quality targets are:

For Nokia to be number one in customer and consumer loyalty.

For Nokia to be number one in product leadership.

For Nokia to be number one in operational excellence.

Quality…Quality is at the heart of Nokia’s brand promise, very human technology.

Lifecycle …• Globally Nokia’s market is at maturity, where as in

India it is still in the Growth stage.

Globally Placed Here

In India Placed hereRs.

Time

Product life cycle

SWOT ANALYSIS

STRENGTHS

• Global marketing (product)

• High product quality

• Fashionable product (serve new trend )

• Wide range of product

WEAKNESSES• High price

• Outdated Symbian operation system

which drives Nokia smartphones, is one of the reasons many consumers prefer Apple's iPhone or Research in Motion's (RIM) Blackberry, which are easier to use

OPPORTUNITIES

• Product launch continuously

• Users Availability

• Necessary Product For People Now

• New Software Market

• Joint Venture In Technology

THREATS

• Obsolete about PC tools if compare with new comers who have more specialize on PC tools

• complacency• Cheaper midrange models from Motorola and

others• China Mobile made Copy Of NOKIA Sets.• Higher import charges.

FUTURE

• Nokia plans to release a mass-market, Linux-based Maemo smartphone to compete with Apple's iPhone in the second half of 2010

• Nokia plans to launch its first Maemo 5-based phone, the N900, in November

Concept Phones…

• Nokia is working on future of mobile with their new concept Nokia "Scentsory".

• This new mobile device uses the sense of smell, sight, hearing, and touch to create a multiscensory environment for the caller.

• Scentsory would be able to detect smells as well as radiate colors, lighting, and temperature of the caller with Dual screens and hidden camera