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Nokia Brand Equity Analysis
PBM
2012
IILM for Higher Education
Submitted in partial fulfillment of the course Product
and Brand ManagementSubmitted to: Monica Mor
Submitted by: Pallavi Gogoi (PG20102228), Rishi Raj Bora
(PG20102297)
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OBJECTIVE
The main objective of the analysis is to find out brand equity of the customer towards Nokia
by using different branding tools like customer based brand equity pyramids and brand equity
measurement. The analysis mainly focus on sustainability of Nokia as a brand in the volatilemarket of mobile brands with competing brands like I phone ,Samsung and change in
technologies like androids and customer preferences, perception and trend towards the
Brand.
Factors like Brand loyalty, trend settings, personality perception, pricing are some of the key
factors which plays vital role in influencing the Brand image. Through this few keys we are
trying to understand the Brand management of Nokia in the whole analysis.
The analysis lays emphasis upon what strategies can they stick to? Which group should the
brand concentrates like demographic factor of age class? Where and When should create
brand penetration to market for reigning as a market leader
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EXECUTIVE SUMMARY
Nokia as a brand in India has created its unique presence in the minds of Indian customers for
its utility and durability. But it is also facing threats in technological advancement of
competitor brands like androids of Samsung (eg wave 2 and X6 of Nokia).Other major
challenge is to regular innovation of features to stop customer from diverting from Nokia
brands to other brand. The fear of being obsolete can be a major hindrance to competitive
Brands like Nokia.
As per capita income has increased the standard of living has increased and more of youthful
population trends keep changing the crowd is ready to experience blooming brands like
blackberry, Iphone to suit the personalities and other uses like business. Nokia has the
advantage that its products are handy in use and durable therefore majority of populationstill prefer Nokia Brand. But in current year these features are not enough to create brand
image as number of competitors in mobile are arising in Indian market with similar features at
fast rate. Therefore create positioning among customer .Perception about the Brand Nokia is
that it is low cost provider so many brand conscious people may not desire Nokia as first
preference to suit the personality which is one disadvantage for the brand. Blackberries are
considered status symbol and Nokia as common people phone is most common saying.Nokia as
a brand should remain sticking to younger population through various promotional activities
depicting youth activities with the brand.
The project report in the subsequent pages outlines some of the ways through which
Nokia can accomplish this. Nokia has to keep a good handle on the pulse of the market and its
B2B customers and end users. It must build its brand around its core competency of brand
differentiation and technological leadership. Nokia also needs to bring new products to
market, and, as the market is showing signs of saturation, shift its focus onto the replacement
market. Finally, by forming strategic alliances with
various stakeholders (viz. operators, consumers, scientist, developers and research
community, government and communities), Nokia can ensure maximizing its brand awareness and
brand image to the end- user. As long as Nokia is open to reworking its branding strategies, it
stands a good chance of remaining the dominant player in the handset market and perhaps can
regain and consolidate its lost glory in terms of high brand equity valuation.
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METHODOLOGY:
We have referred to secondary data provided by Nokia through internet research. Several
concepts were taken from the book Product Brand Management R.Lehman and KLK.The data
information are diagonised as per the brand equity analysis.The following are the steps-
1) Collecting through secondary data like internet sources2) Compiling and brief discussion towards the datas for correct outcome3) Diagonasis and Analysis of the data information4) Conclusion and Recommendation
INTRODUCTION:
NOKIA INDIA
Nokia as a brand needs no specific introduction in India as People are highly aware of the
Brand in India Nokia has played a pioneering role in the growth of cellular technology in India.
Nokia started its Indian operations in 1995 and presently operates its offices in five main
cities namely, Delhi, Mumbai, Kolkata, Bangalore, Ahmadabad. Its Indian operations include
handsets and network infrastructure business in which Nokia Siemens (Nokia merged its
telecom network operations with Siemens. They also agreed to merge their equipment
division into a joint company) has made a significant progress in realizing business
opportunities and increasing market share. The Nokia Siemens Network is a key supplier to all
the top GSM operators including Bharti, BSNL, Vodafone, IDEA, BPL. Since then the Nokia
brand has been steadily growing and has gained wide acceptance in the Indian market.
India is the third largest market for Nokia, in terms of its net sales as of 2006. It is the most
trusted brand in India and leads other cellular phone brands in terms of market share,
advertising and customer service.The market share is 54.21% as per 2009 year data.
Besides, Nokia was the market leader in mobile communication devices in India. The company
has been carrying out sales & marketing, customer care and research & development
activities in the country. Nokia considers India to be one of its most important markets. The
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company's Code Division Multiple Access (CDMA) facility is located in Mumbai and provides
software and technical support to CDMA consumers in India and other Asia Pacific countries.
In 2004, Nokia was chosen as the most respected consumer durables company' by Business
world. The magazine wrote, This Finnish Companys debut at the top of the heap says two
things.
In 2005, Nokia was recognized as the Brand of the Year' by the Confederation of Indian
Industry, India's apex industry association. The company was chosen for this award because of
its high brand recall, well established distribution channels and being 'most preferred' by the
consumers.
A survey on consumer awareness was conducted by The Environment Protection and
Consumer Rights Organization (ECOCON), a student body of Symbiosis Societys Law College.
The survey has acted an effective tool in their attempt to understand the mind of the
consumer. In the cellular phone handset category, Nokia is clearly the most preferred brand.
The other comparing brands were nowhere in the foray, not even touching a double-digit
figure.
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BRAND RELATED ISSUES:
"Increasingly, smartphones will drive market growth. This means feature phone makers will
either need to become smartphone dependent or consolidate that part of the market." That
statement, from Kevin Restivo, IDC senior research analyst, describes the outlook for the
global handset market in 2011. If he's right, and by every indication he is, Nokia will likely
lose more market share during the Windows Phone transition. Perhaps more
than Gartner and IDCalready have forecast.
Nokia's dominance is driven by sales of feature handset and dumb phones, particularly in
emerging markets. But those same markets have started adopting smartphones at brisk pace,
according to IDC. The handset manufacturer's core problem is threefold:
1. Nokia doesn't have a compelling smartphone to offer customers. This week it outsourced
Symbian to Accenture ahead of the transition to Windows Phone. Any Nokia smartphone
running Symbian is end of life. Same can be said of any other Nokia handsets.
2. Nokia doesn't plan to release new smartphones, running Windows Phone, until 2012. At this
rate, the end of the world forecast by the Mayans could come first.
3. Apple, Samsung and other handset manufacturers sell compelling smartphones now, which
will gobble up Nokia market share throughout the remainder of the year.
http://www.betanews.com/joewilcox/article/You-cant-trust-Gartners-smartphone-OS-forecast-or-any-other/1302193051http://www.betanews.com/joewilcox/article/If-Windows-Phone-is-No-2-by-2015-Ill-kiss-Steve-Ballmers-feet/1301423365http://www.usatoday.com/tech/science/2007-03-27-maya-2012_n.htmhttp://www.usatoday.com/tech/science/2007-03-27-maya-2012_n.htmhttp://www.betanews.com/joewilcox/article/If-Windows-Phone-is-No-2-by-2015-Ill-kiss-Steve-Ballmers-feet/1301423365http://www.betanews.com/joewilcox/article/You-cant-trust-Gartners-smartphone-OS-forecast-or-any-other/13021930518/2/2019 Nokia Final Report- PBM
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That's my assessment, by the way, not IDC's, based on information the analyst firm made
public today. "Feature phones have represented the majority of mobile phone shipments, but
still are under tremendous pressure from smartphones," Ramon Llamas, IDC senior research
analyst, said in a statement. "Even popular quick-messaging devices (phones with a QWERTY
keyboard), once a bright spot within the feature phone market, appear to be losing steam as
smartphones gain popularity."
But he qualifies: "IDC does not expect feature phones to disappear quickly as there is still
strong demand across the globe." Perhaps, but smartphones are driving handset sales in
growth markets, by IDC's acknowledgement. The analyst firm described smartphone sales to
China as "exceptional," for example.
In December 2009, Nokia announced plans to cut smartphone production by half for 2010. In
retrospect, it was a stupid retreat.
Handset shipments -- for all categories, not just smartphones -- rose 19.8 percent year over
year during first calendar quarter, according to IDC. Shipments reached 371.8 million units,
up from 310.5 million units a year earlier. Nokia shipped slightly more units year over year --
108.5 million up from 107.8 million. But the handset manufacturer bled market share (again),
falling to 29.2 percent from 34.7 percent a year earlier.
Meanwhile, year over year growth was 114.9 percent for fourth-ranked Apple and 45.2
percent for ZTE, which captured the No. 5 position. The manufacturers had 5 percent 4.1
percent market share, respectively. ZTE and other Chinese handset makers, some of them
white label, represent a different competitive threat -- and not just for Nokia. Some of these
companies are bringing innovative -- often based on imitative -- smartphone designs to
market with features not available from major brand manufacturers. Dual-SIM card support is
one of the more common capabilities. Nokia's first major dual-SIM model, the C2, is a feature
phone, not smartphone.
Nokia has a tough transition ahead. This week, the company started to move out 7,000
employees -- 3,000 transferred to Accenture, while the remainder will be laid off. The
handset manufacturer is gutting its research and development operations, in favor of
supporting development from Microsoft. As a former Nokia fan, the transition under way is
painful to watch -- and its outcome is still uncertain. But from the vantage point today, the
outlook is grim.
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NOKIA AS A BRAND:
Brand elements: Nokia has is customer centric and service centres like Nokia priority is for
customer mobile problem removal / upgradation and Nokia Care is for brand awareness and
launches of new models of Nokia. To retain the customers Nokia has gone creation of
strategies like schemes of recycle with new phone to attract concerns towards environment.
Strategy is to continuous innovative and productive features to create Brand identity.
NOKIA LOGO:
Nokia Corporation has been in the telecommunications business since the 1960s and has
become a global leader of the industry. The Nokia logo, like the company, is synonymous with
mobile technology, high-tech gadgets and new ways to communicate and explore. The Nokia
logo consists of a very burly slogan that gives the brand a truly strong position in the
telecommunication industry. The slogan cleverly expresses the companys mission, which is to
connect people without barrier and distance. This has made the Nokia logo stand out from the
rest.
So when it came to designing their logo, Nokia Co. made every effort to make its logo
represent the companys mission. And thus, the infamous Nokia Connecting People logo
came into being.
Nokia slogan
'Nokia' one the world's most valuable brand has distinct personality. The slogans We call this
human technology', 'only Nokia human technology enables you to get more out of life' and
'connecting people' emphasize human side of technology, thereby resulting in brand
personality of trusted friend.
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There is a perfect image of two people almost joining hands with each other on the Nokia
logo. The image has given a proper support to the logo and has brilliantly complimented the
companys mission and the slogan.
Nokia ringtone:
Nokia has a unique ringtone which is in every phone. Nokia mobile ringtone is default in its
handsets and most often it is the ringtone liked by Nokia users. Anyone can identify Nokia by
just listening to its ringtone.
Nokia website:
Nokia websitewww.nokia.comis also a brand element associated Nokia. In this portal we can
find information regarding new handset as well upcoming models. We can download
ringtones, themes, games etc.
Personality / image:
Nokia was named the 5th Best Global Brand in 2007 and has been one of the 10 best global
brands for almost a decade.
Nokia focused on building customer, relationship and trust. Building friendship and trust is the heart Nokia brand. Logo shows their brand personality.
As the focus is on customer relationships, the Nokia personality is like a trusted friend.
Building friendship and trust is at the heart of the Nokia brand. And the human dimension
created by the brand personality carries over into the positioning strategy for the brand.
A powerful brand:
Undoubtedly, Nokia is a powerful player in the mobile telecommunication industry. Its mobile
phones and gadgets have been infiltrated globally in mobile markets and are the customers
favorite. Apart from being celebrated for its mobile phones, Nokia Co. also offers its customer
other corporate functions which include multimedia devices and applications, enterprise
solutions and network services. This further makes the Nokia logo a common household icon.
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NOKIA BRAND EQUITY
1. Brand Awareness: Nokia need no introduction. Everyone in India is well aware aboutname Nokia. Nokia is a brand name which is alternate name for mobile. A person may not
have knowledge about its all models but definitely knows brand NOKIA. And this is
because Nokia is a brand that produces mobile for low, medium and high class and known
for its innovative products. And Nokia is also first in giving anything new and Nokia has
flooded the market with its verities of handset hence well known brand. So in short in
India Mobile mean Nokia and Nokia mean Mobile.
2. Perceived quality: Nokia is known for quality. Nokia always posses grate quality. Nokiadesign mobile according to Indian. Nokia mobiles are highly resistible to the physical
damages and do no brake easily. Nokia is known for its quality phones and it is believed
that Nokia provide an economical product for the price paid.
3. Brand associations: Nokia has various things that are associated with brand and connectpeople to Nokia. 1st is its logo of shaking hand of child and adult which is of Nokia then its
ringtone which is No.1 proffered ringtone followed by of Airtel. Nokia advertisement lines
like colors of life, Nokia is like air, integral part of life this lines show that how close
Nokia is associated with the life. Even Nokia advertisements tell how closely it is
associated with our life.
4. Brand loyalty: brand loyalty of Nokia customers is very high. This also becomes clear fromranking of Nokia brand equity. Nokia tops in charts for consecutive 3 years. Nokia provide
best quality of product and then its services are unique in nature. This led to satisfied
customer and ultimately brand loyal customers. Due to unique products and unique
services Nokia is able to increase its brand loyal customers.
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SOURCES OF BRAND EQUITY:
1. Sports: Nokia had been the long term title sponsor for Kolkata Knight Riders.
2. Concerts: Nokia is sponsoring national and international music festivals, in contrast to anyothers by very unusual place to perform it every time. By using high technology, Nokia is
giving maximum away from common and turn to modern and innovative. It gives such an
atmosphere that everybody will remember.
3. Nokia responsibilities toward environment: As one of the major supporters of the MobileMuster, Nokia urges it customers to recycle any old phones they have and the industry will
plant a new tree for each phone handed in. The Mobile Muster is the official recycling
program of the mobile phone industry.
4. Nokia responsibility toward society: when Nokia come to know the defects in itsbatteries Nokia replaced them all this show the care that Nokia has for its customers. This
creates a powerful impact on Nokia handset users and creates a long lasting effect on
users clearly shown from its brand equity rankings of 2008, 2009 & 2010. In these three
years Nokia top in brand equity rankings and remain No.1 trusted brand of India.
5. Nokia Care and Priority Dealers: these are also the source of brand equity. Nokia carehas largest network in India of service centers which provides best service. If any phone
takes more than 3 days to repair it give a handset to use till the time the handset is not
repaired. By this customer are becoming loyal to this brand hence increasing brand
equity. Also Nokia Priority Dealer help customer to provide song and software according to
customer needs. So customer is getting more than just a phone.
6. Nokia website and advertisement: Nokia keep on changing its website layout for itscustomers. Nokia provides software, games, themes, wallpapers, ringtones etc. on its site
for free. Due to this users can download the new softwares and can keep themselves
update. Due to this service also customers are more attached to this brand. And Nokia
keep on advertisement on all famous sites visited by Indians and keep on displaying their
adds for latest phone.
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NOKIA CRISIS MANAGEMENT MODE OVER FACULTY BL-5C BATTERIES:
On August 13, 2007, Nokia issued a warning over BL-5C batteries across the globe, stating that
these batteries may get overheated while charging. It said that about 100 such incidents of
overheating had been reported globally but there are no reports of the batteries being
associated with any serious injuries or damage to property.
A product defect related to BL-5C batteries used in many Nokia mobile phones has put Nokia
in crisis management mode. The company tried to prevent any consumer confusion arising out
of its product advisory with respect to the batteries. It offered to replace all the affected BL-
5C batteries manufactured by Matsushita between December 2005 and November 2006.
Thereby it succeeded in maintaining its brand equity by responding in the right way in crisis
situation. They had replaced the batteries through callbacks by Nokia priority centres and callsupport centres. Fast responses to complaints and customer centric satisfaction is basis of
Nokia Brand value.
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BRAND EQUITY MEASUREMENT
Brand equity measurement is done on the basis ofprice based, market basedand customer
based. Nokia as a brand is affordable so majority of population can afford it but its not in
category of offset brand.As per market based the brand had set many market competitive
strategies to forgo the odds of compititon and set out a trend of affordable mobiles with
maximum features. Customer based is in relation of brand towards every kind of customers as
whole within demography, social ,cultural, financial,economicaletc.
CUSTOMER BASED BRAND EQUITY PYRAMID OF NOKIA BRAND
Sub dimensions of CBBE of Nokia Brand-
1) Resonance- Many rural area people shows loyalty towards Nokia as a brand due tocompatible user interface and price factor but in urban area the tendency is less towards
Nokia comparatively as variety and choices are more. So the Urban population may shift
with preferences.
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2) Judgements- Nokia Brands undoubtly never compromise with quality of product andservices. To create customer satisfaction they leave upto expectation by maintaining the
quality and credibility. Superiority comes with quality of product. The BL 5c batteries
(above) case is an wonderful example of judgment about Nokia.
3) Feelings-Many individual find it a brand attach to their sentiments due to durability andtheir first phone except Motorola and Sony Ericsson. Nokia brand is socially welcomed
(households and business).The various forms like qwerty pad, touch screen key pad mobile
give a satisfaction to those who cannot afford high price mobile with same features. Sense of
belongingness is always related to Nokia since two generation has already used Nokia.
4) Performance-Indian population are particular about pricing and self life. Nokia Brand hascreated product reliability, after self services, easy to operate,bold design and low cost
provider.It has been successful in performance attribute with Indian customer.Nokia
Priority gives information and after services.
5) Imagery-Those who havent used Nokia still finds Nokia as a desirable brand. They conceivethe brand as a competing and reliable. The History of Nokia as a brand in India creates a
great impact in the mind of customers. It is doing phenomenally doing well in Indian market
to create a psychological attraction towards brand. Ethics and Values are one of the
component of Nokia as brand.
6) Salience-Nokia has to be greatly encourage in android development with simbian operatingsystems as the future is of android.T he features, applications tabs like OVI of Nokia is a
good initiation for Nokia brand differentiation.
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KEY ISSUES IN BRAND VALUATION
The main keys taken in Brand Valuations are-
1) Competitive pricing
2) Competitions with other Giants like Blackberry and I phone
3) Trend like personality suiting and variety of choices of demography-age as two generations
.
4) Technological changes and innovations.
5) Quality and ethical values of brand like recycling etc
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RECOMMENDATIONS
1) Nokia can use more of expert knowledge of creating Brand Equity through OutsourcingCompanies. Promotional activities, Public relation, CRMs can be supported through
expertise out sourcing.
2) Tie ups with well known operators can bring improvement in Brand value and also increasethe brand value. Eg Airtel and Blackberry collaboration in India is creating a buzz in the
market.
3) merger and acquisition can reduce competition to certain extent and.While acquiringBrand equity of aquire company should be taken into mind.
4) More variety in operating software of the brand and continuous innovations by adding newfeatures. Upgrading technologies and avoiding obsolence has to be taken care of.
5) Developing a full fledge market influence by taking advantage of its current market share .
REFERENCES:
- www.Nokia.com- www.Moneycontrol.com-
HTnews- R.Lehmann and Keller books
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