The Nokia House, Nokia’s head office located by the Gulf of Finland in Keilaniemi, Espoo, was constructed between 1995 and 1997. It is the workplace of more than 1,000 Nokia employees.
Founder Fredrik Idestam
Headquarters Espoo, Finland
Area served Worldwide
About the company
Nokia Corporation (NYSE: NOK) is one of the world’s largest telecommunications equipment manufacturers. It has since established a leading brand presence in many local markets, and business has expanded considerably in all areas to support customer needs and the growth of the telecommunications industry. Nokia also produces mobile phone infrastructure and other telecommunications equipment for applications such as traditional voice telephony, ISDN, 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 is engaged in the manufacturing of mobile devices and in converging Internet and communications industries, with 128,445 employees in 120 countries, sales in more than 150 countries and global annual revenue of EUR 50.7 billion and operating profit of 5.0 billion as of 2008.It is the world’s largest manufacturer of mobile telephones: its global device market share was about 37% in Q1 2009, down from 39% in Q1 2008 and unchanged from Q4 2008.Nokia produces mobile devices for every major market segment and protocol, including, CDMA, and W-CDMA (UMTS). Nokia offers Internet services that enable people to experience music, maps, media, messaging and games. Nokia’s subsidiary Nokia Siemens Networks produces telecommunications network equipment, solutions and services. The company is also engaged in providing digital map information through its wholly-owned subsidiary Navteq.
Nokia has sites for research and development, manufacture and sales in many countries throughout the world. As of December 2008, Nokia had R&D presence in 16 countries and employed 39,350 people in research and development, representing approximately 31% of the group’s total workforce. The Nokia Research Center, founded in 1986, is Nokia’s industrial research unit consisting of about 500 researchers, engineers and scientists. It has sites in seven countries: Finland, China, India, Kenya, Switzerland, the United Kingdom and the United States. Besides its research centers, in 2001 Nokia founded (and owns) INdT – Nokia Institute of Technology, a R&D institute located in Brazil. Nokia operates a total of 15 manufacturing facilities located at Espoo, Oulu and Sal, Finland;Manaus, Brazil; Beijing, Dongguan and Suzhou, China; Farnborough, England; Komárom, Hungary; Chennai, India;Reynosa, Mexico; Jucu, Romania and Masan, South Korea. Nokia’s Design Department remains in Salo, Finland.
Nokia’s history starts in 1865 when mining engineer Fredrik Idestam established a groundwood pulp million the banks of the Tammerkoski rapids in the town of Tampere, in southwestern Finland, and started manufacturing paper.In 1868, Idestam built a second mill near the town of Nokia, fifteen kilometers (nine miles) west of Tampere by the Nokianvirta river, which had better resources for hydropower production. In 1871, Idestam, with the help of his close friend statesman Leo Mechelin, renamed and transformed his firm into a share company, thereby founding the Nokia Company, the name it is still known by today.
The name of the town, Nokia, originated from the river which flowed through the town. The river itself, Nokianvirta, was named after the archaic Finnish word originally meaning a small, dark-furred animal that lived on the banks of the Nokianvirta river. In modern Finnish, noki means soot and nokia is its inflected plural, although this form of the word is rarely if ever used. The old word, nois (pl. nokia) or nokinäätä (“soot marten”), meant sable. After sable was hunted to extinction in Finland, the word was applied to any dark-furred animal of the genus Martes, such as the pine marten, which are found in the area to this day.
Vision and strategy
Our promise is to help people feel close to what is important to them
Nokia is a consumer led company. There is a progressive and continuous increase in consumer involvement with technology and communications globally. People are broadening their modes of communication to include the web and, social networks are becoming central to how people communicate.
People want to be truly connected, independent of time and place, in a way that is very personal to them. And, Nokia’s promise is to connect people in new and better ways.
Nokia’s strategy is to build trusted consumer relationships by offering compelling and valued consumer solutions that combine beautiful devices with context enriched services.
• To set up a new brand image for Nokia’s mobile phone: Creative and Trendy
• To meet the needs of the niche: Young and Rich customers who are pursuing stylish lifestyle
• To maximize current profit
• To lead the mobile phone market with innovative and modern new products
Group Executive Board
President and CEO of Nokia Corporation
Executive Vice President, Corporate Relations and Responsibility
Executive Vice President, Devices Finance, Strategy and Sourcing
Chief Executive Officer, Nokia Siemens Networks
Executive Vice President, Sales
Executive Vice President, Human Resources
Richard A. Simonson
Executive Vice President, Chief Financial Officer
Executive Vice President, Markets
Dr. Kai Öistämö
Executive Vice President, Devices
Networks technology Mobile devices and technology
Germany Great Britain
Nokia’s Financial Conditions:
The History of
How it all began – the birth of Nokia
n Nokia started by making paper – the original communications technology
n The history of Nokia goes back to 1865. That was when Fredrik Idestam built a wood pulp mill on the banks of the Tammerkoski rapids, in southern Finland. A few years later, he built a second mill by the Nokianvirta River – the place that gave Nokia its name.
n A mining engineer by trade, Idestam brought a new, cheaper paper manufacturing process to Finland from Germany.
n Nokia Ab added electricity generation to its business activities in 1902
Who was Fredrik Idestam?
A mining engineer by trade, Idestam brought a new, cheaper paper manufacturing process to Finland from Germany. It was a great success. Idestam’s invention won a bronze medal at the Paris World Exposition in 1867, and he is considered to the father of Finland’s paper industry.
1898: Finnish Rubber Works founded
Arvid Wickström founds Finnish Rubber Works, which will later become Nokia’s rubber business.
1912: Finnish Cable Works founded
Eduard Polón starts Finnish Cable Works, the foundation of Nokia’s cable and electronics businesse India, Mexico, Romania, South Korea.
1960: Firstin electronics department
Cable Works establishes its first electronics department, selling and operating computers.
1962: First in-house electrical device
The Cable Works electronics department produces its first in-house electrical device – a pulse analyzer for nuclear power plants.
1967: The merger
Nokia Ab, Finnish Rubber Works and Finnish Cable works formally merge to create Nokia Corporation.
From paper mill to mobile phones
The Move to mobile 1968-1991
The newly formed Nokia Corporation was ideally positioned for a pioneering role in the early evolution of mobile communications. As European telecommunications markets were deregulated and mobile networks became global, Nokia led the way with some iconic products…
1981: The mobile era begins
Nordic Mobile Telephone (NMT), the first international mobile phone network, is built.
1982: Nokia makes its first digital telephone switch
The Nokia DX200, the company’s first digital telephone switch, goes into operation.
1984: Mobira Talkman launched
Nokia launches the Mobira Talkman portable phone.
1994: Nokia Tune is launched
Nokia launches the 2100, the first phone to feature the Nokia Tune.
1994: World’s first satellite call
The world’s first satellite call is made, using a Nokia GSM handset.
1997: Snake – a classic mobile game
The Nokia 6110 is the first phone to feature Nokia’s Snake game.
1998: Nokia leads the world
Nokia becomes the world leader in mobile phones
Nokia’s story continues
With 3G, mobile multiplayer gaming, multimedia devices…
2002: First 3G phone
Nokia launches its first 3G phone, the Nokia 6650.
2003: Nokia launches the N-Gage
Mobile gaming goes multiplayer with the N-Gage.
2005: The Nokia Nseries is born
Nokia introduces the next generation of multimedia devices, the Nokia Nseries.
2005: The billionth Nokia phone is sold
Nokia sells its billionth phone – a Nokia 1100 – in Nigeria. Global mobile phone subscriptions pass 2 billion.
2006: A new President and CEO –Nokia today
Olli-Pekka Kallasvuo becomes Nokia’s President and CEO; Jorma Ollila becomes Chairman of Nokia’s board. Nokia and Siemens announce plans for Nokia Siemens Networks.
Nokia recognized as 5th most valued brand in the world. Nokia Siemens Networks commences operations. Nokia launches Ovi, its new internet services brand.
Nokia’s three mobile device business groups and the supporting horizontal groups are replaced by an integrated business segment, Devices & Services.
Number of employees
The largest market share ever gained by Nokia is in Peshawar 88% more than allover Middle East and Africa
? Largely available
? Greater network coverage
? Easily repaired
? Changeable body casing
? Updating software
? Use of Carl Zeiss lens
? Only dealing in mobiles
? Nokia is world third richest company”
Everyone has a need to communicate and share. Nokia helps people to fulfill this need and we help people feel close to what matters to them. We focus on providing consumers with very human technology – technology that is intuitive, a joy to use, and beautiful. We are living in an era where connectivity is becoming truly ubiquitous. The communications industry continues to change and the internet is at the center of this transformation. Today, the internet is Nokia’s quest. Strategy: Nokia’s strategy relies on growing, transforming, and building the Nokia business to ensure its future success.
Nokia focused on building customer relationship and trust. Building friendship and trust is the heart of Nokia brand. Logo shows their brand personality.
Marketing principles of NOKIA
There are many priorities within a business, but in a marketing orientated company like Nokia, many of the following principles will be high on the agenda:
1. Customer satisfaction: Market research must be used to find out whether customers’ expectations are being met by current products or services.
2. Customer perception: this is based on the images consumers have
of the organization and its products, this can be based on; value
for money, product quality, fashion and product reliability.
3. Customer needs and expectations: This is anticipating future
trends and forecasting for future sales. This is vital to any organization if they wish to keep their entire current market share and develop more.
4. Generating income or profit: This principle clearly states that the need of the organization is to be profitable enough to generate income for growth and to satisfy stakeholders in the business. Although satisfying the customer is a big part of a companies plans they also need to take into account their own needs, such as:
5. Making satisfactory progress: Organizations need to make sure that their product is developing along with the market, if a product is developing well, then income should increase, if not then the marketing strategy should be revised.
6. Be aware of the environment: An organization should always know what is happening within their designated market, if it is changing, saturation, technological advances, slowing down or rapidly growing, being up to date on this is essential for companies to survive.
Marketing Mix of Nokia
<href=”#Mobile_phones> Mobile phones
<href=”#Classic_series_.E2.80.93_The_Mobira_series> Classic series – The Mobira series
ü <href=”#1000.E2.80.939000_series> 1000–9000 series
ü <href=”#Nokia_2000_series_.E2.80.93_Basic_series>Nokia 2000 series – Basic series
ü <href=”#Nokia_3000_series_.E2.80.93_Expression_series> Nokia 3000 series – Expression series
ü <href=”#Nokia_5000_series_.E2.80.93_Active_series>Nokia 5000 series – Active series
ü <href=”#Nokia_6000_series_.E2.80.93_Classic_Business_series>Nokia 6000 series – Classic Business series
ü <href=”#Nokia_7000_series_.E2.80.93_Fashion_and_Experimental_series>Nokia 7000 series – Fashion and Experimental series
ü <href=”#Nokia_8000_series_.E2.80.93_Premium_series>Nokia 8000 series – Premium series
ü <href=”#Nokia_9000_series_.E2.80.93_Communicator_series_.28discontinued.29> Nokia 9000 series – Communicator series (discontinued)
<href=”#Special_function_phones> Special function phones
ü <href=”#Nokia_Eseries_.E2.80.93_Enterprise_series>Nokia Eseries – Enterprise series
ü <href=”#Nokia_Nseries_.E2.80.93_Multimedia_Computer_series>Nokia Nseries – Multimedia Computer series
ü <href=”#Nokia_N-Gage_.E2.80.93_Mobile_gaming_devices_.28discontinued.29>Nokia N-Gage – Mobile gaming devices (discontinued)
ü <href=”#Vertu_.E2.80.93_Luxury_phones>Vertu – Luxury phones
ü <href=”#Cardphones_.28PCMCIA.29>Cardphones (PCMCIA)
ü <href=”#Concept_phones>Concept phones
<href=”#Other_products> Other products
Ø <href=”#Digital_television>Digital television
Ø <href=”#ADSL_modems>ADSL modems
Ø <href=”#WLAN_products>WLAN products
Ø <href=”#Telephone_switches>Telephone switches
Ø <href=”#GPS_products>GPS products
Ø <href=”#Internet_tablets>Internet tablets
v Consider the psychological approach rather than economic approach
v LV is a high-end brand
v Therefore, people are willing to spend on one a “LV-branded” mobile phone
v Set a high price
v Skim the maximum revenue
v Decrease the price gradually
v Intiailly we will set a high price around $1200, gradually decrease and replaced by a newer model
v Maintain a high profit margin
v Printed advertisement
v Goal: to create a new reason to buy our new cell phone
v Focus on masculine and feminine magazine, etc
Ø Audio/Video products
v Online – Advertisement
v Bid on cell-phone before the launch of our product
v TV advertisement
v Demonstrate its outlook and style
v Encourage people to bid our product online
• Road show advertisement.
• Objective: raise awareness of mass people
• Large banner and poster in shopping district
• Urge people to experience new product at place of selling.
Nokia products are available in whole over the world. This refers to the chosen outlets for a product or service, for a product to be very successful it must be easy to access, Mobile phones are very easy to access nowadays, they are sold in supermarkets, specialized outlets (either by network or brand) and all major department stores.
v Many Competitors in this area
Ø Sony Ericsson
Ø Nokia 37.2%
Ø Motorola 17.3%
Ø Samsung 9.8%
Ø Siemens 8.5%
Ø Sony-Ericsson 5.2%
SWOT Analysis of the Company: Nokia
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. The financial aspect is very strong in case of Nokia as it has many more profitable business. The product being user friendly and have all the accessories one want that is why is in great demand making it No-1 selling mobile phones in the world. Wide range of products for all class. The re-sell value of Nokia phones are high compared to other company’s product.
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 f 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.
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.
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, 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. 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.
NOKIA’s performance over a year
Once NOKIA’s closest rival, Samsung has been losing its market share since October’05 when it had an overall market share (in terms of units) of 1.2, to 7.8% I March’06. The drop is much steeper in value terms where its market share has fallen to 9.8% in March’06 from 21.2% in October’05.
Sony Ericsson’s market share (in terms of units) has improved marginally from 7.1% October’05 to 7.6% in March’06, although in value terms it has increased from 8.7% in October’05 t 10.2% in March’06. The color segment, where Samsung used to rue once, has seen its market share falling both in terms of units and value. The market share (units) has dropped to 16.3% in March’06 from 34.9% in October’05 ad in terms of value, has dropped to 14% in March’06 from 32.5% in October’05. Sony Ericsson’s market share in the color segment is marginally more than the Samsung’s at 16.7% (unit) and 15.9% (value) in March’06 and is an improvement over its October’4 figures of 15.6% (units) and 14% (value). The total handset units sold in the top 10 towns in the month of March is 5, 06,493 units, from 4, 68,621 units inOctober’05. The total value of the handset s sold is Rs.245.6 crore as of March’06 from Rs.236.1 crore in October’06. The number of color phones jumped to 2, 11,779 units in March’06 from 1, 66,210 units in October’05. The value of the color phone market increased to Rs.15, 208 lakhs in March’06 from Rs13, 023 lakhs in October’05.
For electronics companies, take back and recycling add value. They support brand value and customer loyalty and inspire customer insights. They also demonstrate environmental responsibility. Manufacturers like Nokia are generally in a disadvantaged position for take back, due to the costs involved and the lack of many consumer touch points. Stakeholders in the take back and recycling process include governments, retailers, customers, consumers and products. Other stakeholders include recyclers, refurbishes and NGOs. The responsibility for bringing used devices back for recycling lies ultimately with the consumers. The challenge for Nokia in take back programs is how to make mobile phone users do their share and return the used products for recycling. By bringing the used mobile to a take back point the customers make sure that used phones will not end up in landfills in their own or other countries. Instead, the recyclable raw materials can
be used again in new products.
In a typical consumer scenario, such as when a mobile phone user is renewing a service contract with a mobile phone provider, in the US and Europe an estimated 60% to 70% retain their old devices because of their perceived value.
Successful take back is also driven to a great extent by economics and market factors, which in turn place large quantities of used devices in refurbishment scenarios. This causes concern for the quality and safety of products repaired or altered outside of the intense controls fundamental to a Nokia production process. The optimum outcome from Nokia’s environmental efforts in the product lifecycle is to minimize adverse effects to the environment, to our customers and consumers and to our business. As the Nokia lifecycle philosophy applies to take back, the power to manage take back and direct the disposal of a mobile device at the end of its life is largely controlled by: customers, consumers, retailers, and by governments. There are various take back channels and Nokia has limited control over the actual flows. Despite the challenges posed by the logistics of recovery, Nokia has for years had programs in place and continues to move ahead with new programs to recover mobile devices at the end of their useful lives
These include take back:
Ø Via our authorized service centers and flagship stores
Ø Through our web site, only limited in certain countries
Ø As part of eBay Rethink, only in the US
Nokia is also piloting different forms of cooperation with operators and distributors, such as installing collection bins at point of sales and mail service return, as well as in various industry level schemes and in public awareness building campaigns.
NOKIA aims to be a leading company in environmental performance. By working to reduce the adverse environmental impacts of our products and activities, our customers can use our products with confidence and good conscience. Combining environmental issues into daily work makes business sense for Nokia. By working to reduce the adverse environmental impacts of our products and activities, we minimize risk, ensure legal compliance, gain stakeholder acceptance, and help advance the long-term success of our company
Our customers can also use our products with confidence and good conscience. Through our environmental strategy, we work to ensure that our products are safe for personal use and that they do not overly tax the environment. Nokia is a trusted brand and we take that trust seriously.
Nokia environmental strategy:
Nokia is a leading company in environmental performance. Nokia’s environmental strategy is based on lifecycle thinking, beginning with the extraction of raw materials and ending with recycling and disposal of as well as the reintroduction of recovered materials into the economic system. Our goal is to develop advanced mobile technology, products and services, which have no undue environmental impact, consume energy efficiently, and that can be appropriately reused, recycled or disposed of. Nokia’s environmental strategy is integrated with our business strategy. Our four business groups have set environmental targets for their own activities to implement our corporate level environmental strategy.
Main Issues in Focus:
Three important global issues remain at the forefront of much of Nokia’s environmental work. They are substance management, arrangements for the take back and recycling of end-of-life products, and energy efficiency.
During the planning and design of our products, one of our main focus areas is their material content. We are continuously analyzing the materials used in our products with the aim of reducing the amount of potentially hazardous or harmful content.
Take back and recycling
In take back and recycling, we have for years had in place our own arrangements for mobile devices and accessories, as well as for mobile network and IP network security equipment. All Nokia products are also covered by the European Union’s new Waste Electrical and Electronic Equipment (WEEE) directive. Nokia is assuming product responsibility as defined by the directive as it is implemented throughout Europe. In addition, take back of Nokia mobile devices will also continue at authorized Nokia Service Centers and Flagship stores in all markets where we do business.
In our product creation as well as our own operational activities, an important area for continuous performance improvement is in energy efficiency. We have consistently been able to reduce the energy intensity of our products.
We launch a new product (N 96)
N-96 has created a distinct position in customer mind by:
Ø Nokia logo…..>
Ø Slogan……> “Know our past. Create the future”
Ø Latest Ring Tone
Ø New Messages Tunes
Ø The specific message that is conveyed to the customers in every advertisement.
About Nokia N-96
NOKIA N96 is the most expensive and powerful model in the whole Nokia portfolio. It can’t stand up to the level of popularity that N95 once enjoyed, though, but still serves a formidable expansion of the model range upwards. The device looks interesting in terms of the availability of DVB-H digital TV and strikingly high specifications. It comes with an astonishing 16 Gb of onboard and 8 Gb of replaceable flash storage, and has a pronounced focus on the video aspect. Even the form factor and bundled kick-stand suggest this model being a TV-phone, let alone the numerous hardware specifications specially fitted to this cause. The STMicroelectronics chipset offers its video-relevant powers at a cost, though: it doesn’t do as well in the rest of performance tests. We can’t say N96 lags in the menus, yet a certain delay can be felt, it’s a bit slower than N78 and N85. A high audio quality, a large screen and a spacious storage make N96 a perfect multimedia player and a possible replacement for a number of Nokia N96 users. The price is going to be comparable to the starting price of N95 8GB, namely around 550 Euros. N95 will slowly phase out of the market, making way for the new flagship (it’s currently out of production). That’s how the company divided the niche originally occupied by N95 8GB in two: one model sticks to the same price bar, the other (N85) sells at a lower price and plays a big part on the mass market, nominally featuring slightly lower specifications.
Nokia N96 is the company’s video flagship. That means that all the optimizations introduced into the model support solely that cause, the accent on mobile TV and video. N85 is more versatile and thus is going to win more popularity, but it can’t beat N96 in terms of video recording and playback, as well as in the musical department. Next comes a DVB-H digital TV module, so we get the best multimedia handset on the whole market which is going to stay so for quite a while on.
Product Life Cycle
A large untapped potential exists among the present base of non-users: the 10% of existing customers who use services infrequently or do not use services at all, even though they have the right mobile handset. In general, these mainstream users are more loyal to their existing service provider,
making them a group to reward for their loyalty. Ease-of-use is one of the key factors when increasing customer loyalty, which, in turn, will lower churn and eventually lead to a decrease in marketing expenditures. Differentiation by ease-of-use experience will also have an effect on increasing ARPU, because it speeds up the adoption of new services.
The more mainstream the target users, the more they value ease-of-use and customer intimacy and seek practical uses for new services. The fact that ease-of-use is particularly relevant to mainstream users makes it such an important consideration. Making a service successful in the mainstream market has the challenge for most existing services. Creating ease-of-use in services will help a service provider to “cross the chasm” from the early market of innovators and trendsetters to the mainstream market of average users.
Product life cycle of Nokia
After thorough research, we come to the conclusion that the marketing strategy of NOKIA is working for them and the is gaining popularity among youth day by day.
Nokia is a mobile telecommunications company, and offers far more than just mobile phones for everyday use. They offer networking solutions for businesses that help businesses stay connected and communicate with each other at all times and places. For them, Nokia also offers special mobile phones with exquisite and unique functions and options. In this project, we can overview on NOKIA. N 96 is the most expensive and powerful model in the whole Nokia portfolio. It can’t stand up to the level of popularity that N95 once enjoyed, though, but still serves a formidable expansion of the model range upwards. The device looks interesting in terms of the availability of DVB-H digital TV and strikingly high specifications. It comes with an astonishing 16 Gb of onboard and 8 Gb of replaceable flash storage, and has a pronounced focus on the video aspect. Even the form factor and bundled kick-stand suggest this model being a TV-phone, let alone the numerous hardware specifications specially fitted to this cause. The STM microelectronics chipset offers its video-relevant powers at a cost, though: it doesn’t do as well in the rest of performance tests. We can’t say lags in the menus, yet a certain delay can be felt; it’s a bit slower than N78 and N85. A high audio quality, a large screen and a spacious storage make N96 a perfect multimedia player and a possible replacement for a number of Nokia N96 users. The price is going to be comparable to the starting price of N95 8GB, namely around 550 Euros. N95 will slowly phase out of the market, making way for the new flagship (it’s currently out of production).
1. University library
2. Nokia Outlets