Extending the Lead in APACExtending the Lead in APACUrpo KarjalainenSVP, Customer & Market OperationsAsia Pacific
Urpo KarjalainenSVP, Customer & Market OperationsAsia Pacific
2 © 2006 Nokia
0
10 0
20 0
30 0
20 0 3 20 0 4 20 0 5 20 0 6E 20 0 7E
Mo
bile
Dev
ice
Mar
ket V
olu
me
(m)
Source : Nokia estimates Market volumes
Strong growth continues in the APAC device market
>15%
3 © 2006 Nokia
The APAC Landscape
Source: EIU, UN Stats, Nokia Estimates
Population & GDP/Capita based on 2005 estimates
<5%Share of Nokia volume
<5%Nokia share
5%Subscription growth
5%Market volume growth
77%Mobile penetration
30GDP/capita (kUSD)
70%Urbanisation %
176Population (m)
2006 (Est.)
North East Asia
~50%Share of Nokia volume
>60%Nokia share
86%Subscription growth
77%Market volume growth
12%Mobile penetration
0.7GDP/capita (kUSD)
28%Urbanisation %
1285Population (m)
2006 (Est.)
South Asia
~40%Share of Nokia volume
>50%Nokia share
29%Subscription growth
24%Market volume growth
35%Mobile penetration
1.5GDP/capita (kUSD)
45%Urbanisation %
580Population (m)
2006 (Est.)
South East Asia
~10%Share of Nokia volume
~50%Nokia share
11%Subscription growth
2%Market volume growth
92%Mobile penetration
33GDP/capita (kUSD)
92%Urbanisation %
25Population (m)
2006 (Est.)
Australasia
4 © 2006 Nokia
JapanKorea
Share
Volume
IndiaIndonesiaIndochina
Bangladesh
AustraliaThailandMalaysia
Philippines Singapore
New Zealand
Different growth paths and potentials
5 © 2006 Nokia
1. Leveraging Brand
2. Experience Strategy
3. Efficiency & Productivity
1. Shaping Channel & Retail
2. Managing Product Mix
3. Targeting growth & market segments
1. Product Portfolio
2. Building Brand
3. Relationship Management
Grow Share
Volume & Value GrowthMaintain
Share
Volume
Different market strategies
6 © 2006 Nokia
Source: GfK (India, Singapore, Malaysia, Vietnam, Thailand, Philippines, Cambodia, Indonesia)
0%
20%
40%
6 0%
80%
H2 2004 H1 2005 H2 2005 H1 2006 Q 3 2006
Vo lu m e Sh a re Va lu e Sh a re
Maintaining strong volume and value share in SEA & India
7 © 2006 Nokia
• APAC-wide• #1 - Asia’s Top 1000 Brands
research by Synovate (Sept 2006)
• Platinum Award in Readers’Digest Trusted Brand Awards
Clear APAC brand leadership
8 © 2006 Nokia
• India• #11 and only MNC in top rankings - 2006
Business World - India’s Most Respected Businesses Survey + #1 in the consumer durables category
• #8 – 2006 India’s Great Place to Work list, Brand of the Year by the Confederation of Indian Industry
• Indonesia• 2006 Indonesian Best Brand Award by SWA
magazine (leading business publication) • 2006 Golden Indonesian Best Brand Award
• Philippines• #1 Mobile Phone Brand Award by GfK Asia
Clear APAC brand leadership
9 © 2006 Nokia
%
Base: APAC (ex Japan, Korea) Main User & Hot PotentialsSource: Nokia Brand Tracking Study
71
4 6 2
72
29
4
72
28 4
73
27 5
76
2 5 6
79
3 3 5
Q4 '03 Q2 '04 Q4 '04 Q2 '05 Q4'05 Q2'06
Competitive APAC brand preference
10 © 2006 Nokia
2004End 2004• 2 National
Distributors• 120 Regional
Distributors• 570 Branded
Retail Outlets• 40,000 Retail
Outlets
Nokia
NationalDistributors
RegionalDistributor
Consumers
Retailers NPD
End 2006• 2 National Distributors• 123 Regional
Distributors• 353 Micro Distributors• 800+ Branded Retail
Outlets• 78,000+ Retail Outlets
2006Nokia
NationalDistributors
RegionalDistributor
MicroDistributor
Consumers
Retailers NPD
Leadership in distribution – India
11 © 2006 Nokia
2,400
2 National & 123 RDS
78,624
600200300650Sales Reps
21080100163No. of Distributors
19,0529,29613,62032,298Outlets (approximate)
Source: Outlets - Extrapolation from GfK research (August ‘06)
Other data – Nokia market intelligence
Penetrating the India market with branded retail
12 © 2006 Nokia
End 2006
• 85% Independent Distribution
• 27 National Distributors
• 1000+ Branded Retail Outlets
• 50,000 Retail Outlets
• Widest distribution footprint across SEAZ
• Distributor KPIs aligned to driving coverage and improving service to retailers
• Cover 45% of outlets with Field Force across SEAZ
2006Nokia
NationalDistributorsOperator
Wholesalers
Consumers
Retailers Nokia Branded Retail
Leadership in distribution – SEAZ
13 © 2006 Nokia
Processes
Competencies
Sales Tools
Channel StructureEfficient & Disciplined, best distribution coverage
Assist+Influence retail, and TCO that delivers competitive advantage
Field ForceTrained & Effective Field Force to drive demand creation
Customer+Strategic & Execution Focused Account Management
Capabilities
Shaping channel, distribution & retail
14 © 2006 Nokia
• Market making & category creation in small towns
• Nokia VAN Operations –special purpose “Showroom on Wheels”van with a consistent brand experience and full range of products including live demonstration
• Half a million contacts established
• 1800+ branded outlets across APAC
• Over 800 stores with new look by end-2006
The visual & purchase experience drives sales
15 © 2006 Nokia
• Arming retail partners with expertise• Target over 400,000 individual training sessions by end 2006 • 14 training vendors qualified and engaged in Academy delivery
• Strengthening our on-the-ground presence
• 75% of outlets across APAC are covered by Field Force
The visual & purchase experience drives sales
16 © 2006 Nokia
Summary I
A high growth region
Diverse markets
Retailer & distributor-driven environment
Brand-conscious Asian consumers
The APAC Environment
17 © 2006 Nokia
Summary II
First-mover advantage in the
emerging markets
Strength of the Nokia brand
Breadth of product portfolio (low end to high tech/premium)
Close relationships with operators, retailers and distributors
Leadership in distribution, retail and field force
Nokia’sCompetitiveAdvantages
18 © 2006 Nokia Nokia World.ppt / 2006-09-07 / Initials