and how it (lost) market.

and how it (lost) market.

Hello everyone, today we are going to discuss about the marketing strategy of Nokia. Yes, Nokia the mobile company that we saw rise and fall, and eventually getting sold off. We have all had a Nokia phone once, so I hope this will be an interesting presentation for all of us.1

HISTORY

Founded in 1965 as a Finnish Multinational CommunicationIn 1990s, the company divested portfolio and focused on telecommunication.Sold its mobile business to Microsoft in 2011.

The predecessors of the modern Nokia were the Nokia Company (Nokia Ab), Finnish Rubber Works Ltd (Suomen Gummitehdas Oy) and Finnish Cable Works Ltd (Suomen Kaapelitehdas Oy).[1] The company's name came from the Nokia townLater in 1990s, it shifted its focus on mobile phones andWas the largest mobile vendor of mobile phoneThe mobile phone business was bought by Microsoft in 2011 for $ 7.17 billion.

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PRESENT AVENUES

The company currently focuses on Information Technology. It has subdivisions likeNokia Ntworks is a data Networking and a telecommunications equipment companyNokia Technologies-develops and licenses technology and the Nokia brand,Alcatel Lucent- Acquired by Nokia The company focused onfixed,mobileandconvergednetworking hardware,IPtechnologies,softwareand services, with operations in more than 130 countries Nokia Bell Labs-Nokia Bell Labswas acquired by Nokia recenty in 2016. Rumours are that Nokia will soon come back into the mobile phone business.3

MARKETING

In the following slides we will look at the Marketing strategies of Nokia. Their target markets, their way of approaching, the benefits they offer to their customers and how they compete in the market.4

Target MarketBoth men and women.Aged 20-40 years.Caters to both teenagers and business class

Nokia had a very wide target market, bringing out dedicated phones for a variety of segments. It built phones for men and women, for all ages and uses.As we can see in the slide, there arethree different classes of phones demonstrated.A business-class phone, a dedicated music phone and a gaming phone, which shows the diversity of its products.5

Brand Positioning

Points of ParityPoints of DifferenceGood voice clarityCamera, GPRSFM & Music PlayerRobust BuiltGood battery lifeEase of use.

Competitive Frame of Refernce:SamsungMicromaxApple

LgBlackberry

Brand Mantra: Connecting People.

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Customer Benefits

Free access to Ovi Store, with over 100,000 applications.Ovi store24 hour Toll Free support.Well spread out service center networkAccess to NOKIA imaging, Navigation maps.

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MARKETING-MIX

In the upcoming slides we will be discussing about the Marketing Mix of Nikia, The four Ps namely Product, Price, Place, Promotion.8

PRODUCTVarietyQualityDesignDurabilityFeatures

Variety: Nokia manufactures mobile phones in a wide range of features and price range.Quality: Nokia mobiles are of utmost quality.Design: They are trendy, and kept up with the design.Durability: This is one of the distinctive feature of Nokia phones.Features: The high end phones are equipped with features like heart rate sensor, and low end phones with torch.

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PRICEA wide price range of phonesRanges from Rs. 800- Rs. 50,000Low end phone- Market penetrationHigh end phone- Market skimming.

PLACESLargest network of over 1,30,000 storesSales through Multi-branded stores(the mobile store)

Nokia stored spread all over the worldNew concept of Nokia Music store

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PROMOTION

TV campaigns and advertisementsBrand ambassadors like Shah-Rukh Khan and Priyanka ChopraFests like NOKIA India Fest 2011- PAN Indiafest is the first of its kind pan India college festival initiated by a youth brand. The initiative was undertaken to create a national level platform for students from all fields and turfs to congregate under one roof. An opportunity for students to showcase their talent in the fields of art, literature, music, sports, dance, theatre and more12

MASS COMMUNICATION

BILL BOARDS

Nokia has always had a very huge traditional, print media budget. They always concentrated on mass media advertisements, devoting asmuch as 65% of their total marketing budget to mass media. Large Bill-Boards, tv spots, news papers were heavily advertised with Nokia phones.14

NEWSPAPERS And Magazines.

Whenever a new phone was launched, seeing a full page advertisement in the leading papers and magazine was no surprise. Nokia was very specific about its individual phone marketing, dedicating its advertisements to a single, or a small segment of phones to properly advertise its features and that also helped consumers to retain.15

WHAT WENT WRONG?

Nokia was the biggest mobile phone vendor, it had the largest spread out retail outlet stores, had a variety of phones in its product line, and itsphones were not as bad compared to its competitiors. Still the company failedto keep up with the market and booked losses. What was it that went wrong for the company?16

Nokia was competing in a saturated market.There was lack of innovation reflected in its products.The cost of running company outlets and employer salaries were very high.Even while sales dropped, the company had huge untargeted marketing budget.

Phones are often considered the most prestigious, and if you have a Mac, there are several reasons for choosing the Apple-family member.Samsungs Android phones are often seen as the most versatile, and they keep up the idea of being more user friendly than iPhones.But Nokias phones arent connected to anything special. Theyve now tried to create an idea of superior phone cameras. But thats too little too late.Nokia was competing in a saturated market.There was lack of innovation reflected in its productsThe cost of running so many company outlets was very highEmployee salaries were very highEven in drop off sales, the company had huge marketing budget.

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Conclusion:Nokia lost the smartphone battleThe target audience was a wide fraction of the market.Nokia relied more on conventional marketing practicesMarketing budget for print media was very large.Even after the takeover by Microsoft, it is struggling in the market.

DISCLAIMERCreated by Mr. Krishna Khandelwal, VNIT Nagpur under an internship under Prof. Sameer Mathur, IIM Lucknow.