PRESENTED BYTHE SPARTANS

o m. romaan qamaro kumail hassano farhan anjumo mohsin ali sarajo zard ali khan SZABIST , ISLAMABAD

ACKNOWLEDGEMENT

All the praises and thanks are to ALLAH, the most beneficent, ever merciful and king of the day of judgment. We offer our humblest thanks and special praises to our Holy Prophet MOHAMMAD (SAW) whose moral and spiritual teachings are a forever source of guidance and knowledge for humanity as a whole.

We feel out first and foremost duty to express our grateful appreciation and thanks to our teacher Ms. RABIA. Her illustrious advise, keen interest, encouragement and constructive criticism were the real source of inspiration during the completion of the project.

Presentation IncludeIntroduction

Brand Personality

Marketing Mix

Product Mix

Macro Environment

STP

Strategies Adopted

Competitors

Issues

SWOT Analysis

CSR

Questions ???

HISTORY OF NOKIA

It also provides the services for network operators.

Company recorded revenues of 41,121 Million € in 2007 about 20.3% increase from 2006.

Company offers its products in 150 countries. Its HQ is in

Espoo, Finland and employees about 68,500 people . Other

company of Nokia are in China , Hungry , Germany , Korea and India

Introduction

Evolution of Mobile

History

Mission

Vision

Why Nokia on Top ?

NOKIA Company logo. Founded in Tampere in 1865, logo 1966.

A leading player in mobile communications all over the world,NOKIA first started operations in the early 1980s

Finnish Rubber Works Ltd, Helsinki:1898

The NOKIA "arrows" logo before its Connecting People logo.

"Connecting People" slogan, invented by Ove Strandberg.

History

History of NOKIA Nokia is a Finland based company, incorporated

in 1967.

Nokia started of as a pulp, rubber & cable manufacturing company by Knut Fredrik Idestam in 1865.

Finnish Rubber Works acquired Nokia Wood Mills Telephone & Telegraph cables.

Nokia Corporation created - 1967 - paper products- car tires- personal computers - cables.

History of NOKIA…

Nokia began developing the digital switch (Nokia DX 200) which became a success.

In 1970, Nokia started taking an active interest in the power & electronics businesses.

In 1987, consumer electronic became Nokia’s major business.

1991 Nokia - agreements to supply GSM networks - nine European countries.

History of NOKIA…

Between 1992 & 1996, the company exited from the rubber and cable businesses

August 1997 Nokia - GSM systems to 59 operators in 31 countries.

It’s the leading manufacturer of mobile devices.

Nokia offers a wide range of mobile devices with the experience in music, video, imaging, gaming and a lot more.

Mission “In a world where everyone can

be connected, we take very human approach to technology”

Connecting is about helping people to feel close to what matters. Wherever, whenever, Nokia believes in communicating, sharing, and in the awesome potential in connecting the 2 billion who do with the 4 billion who don’t. If we focus on people, and use technology to help people feel close to what matters, then growth will follow. In a world where everyone can be connected, Nokia takes a very human approach to technology.

Vision

The Vision of Nokia: “Our vision is a world where

everyone can be connected. Our vision is to ensure that 5 billion people are always connected at any given point and to achieve 100 fold more network traffic”

Why NOKIA on Top ?

Developing affordable mobile devices that can contribute to increased economic growth and quality of life

Constant innovation. Focusing on human technology; enhancing communication and exploring new ways to exchange information.

That’s why Nokia will never stop finding new ways of connecting people.

Brand PersonalityNokia focused on building customer,

relationship and trust.

Building friendship and trust is the heart Nokia brand.

Logo shows their brand personality.

Marketing Mix : 4Ps

Product

Variety In every series of Nokia there are large

number of sets thus large variety. e.g. entry level include 1200,1208,1100,1110,1110i,1112 etc

Quality Nokia gain brand personality and market

shares because of its quality.

4Ps….

Design Nokia sets are of various design such

as Flip sets , Flat sets, Slide sets , Sets with rotating camera etc

Features Each set of Nokia has its own

features . The models of Nokia are based on features.

4Ps….

Brand Name Brand name is written on each set. Packaging On packaging of Nokia set detail

information about the set is given and packing is made attractive by picture. Each set has its own booklet with information about its features.

Price

Price targeting both the ends Price range from Rs1999 to RS

62700 Pricing strategy Nokia also offer cash allowances.

PromotionAdvertising: Though TV , Sign boards , Bill boards

, Radio and Newspaper Broachers , Posters ,Dummies and

display stands

Personal selling: By product training to Distributer.

Sales Promotion

Public Relations ( PR )…

Nokia has strong PR. They keep on doing some or the other new events, programes and publicity, so as to keep up with the brilliant image of the company and also to enhance the brand equity.• Direct Marketing :• Nokia does not perform Direct Sales activities

on its official website www.nokia.com.

• Nokia use DEMO style of Direct Marketing.

• Nokia does not use Direct Mail or Telemarketing styles of Direct Marketing.

Place ChannelsNokia > Distributer > Whole seller > Retailer

> Customer

CoverageNokia is widely available all over PAKISTAN

DistributerNokia main distributer are : United mobiles,

Mobile zone and Advance telecom.Nokia mobiles are mostly available through every mobile outlet

Product Mix of Nokia• 1000–9000 series• Nokia 2000 series –

Basic series• Nokia 3000 series –

Expression series• Nokia 5000 series –

Active series• Nokia 6000 series –

Classic Business series• Nokia 7000 series –

Fashion and Experimental series

• Nokia 8000 series – Premium series

• Nokia 9000 series – Communicator series (discontinued)

Macro Environment of Nokia

POLITICAL FACTOR

ECONOMIC FACTOR

SOCIAL FACTOR

TECHNOLOGICAL FACTOR

ENVIRONMENTAL FACTOR:

Macro Envirnoment of NOKIA

• POLITICAL FACTOR: Nokia reported spending $5.4 million on lobbying in

the U.S. in 2007 and $2 million on lobbying in 2008.• ECONOMIC FACTOR: Nokia had to change its functions from single market

to global market due to collapse of Russian Federation.

• SOCIAL FACTOR:

Nokia has been a member of the United Nations Global Compact since 2001

Macro Environment of NOKIA • TECHNOLOGICAL FACTOR:

Improvement or Changes in technology

• LEGAL FACTOR:

Patents right on technology

• ENVIRONMENTAL FACTOR:

Environmentally ethical considerations amongst suppliers.

Life cycle impact of NOKIA throughout the supply chain

Segmentation Strategy

Geographic:

o Nokia immediate geographic target is urban PAKISTAN. o The total targeted population is estimated at 100 million.

Demographic:

oMale and female. o Ages 25-50, this is the segment that makes up 80% of the

Nokia mobile phone market according to the NOKIA Ltd. o Professionals and College students.

Consumer Segment

• Light Users• Medium Users• Heavy Users

Heavy Users

Target segment is heavy users

They chose this Category because heavy user have ability to buy their product.

In this category users like, latest products with latest features.

Heavy users want something new and stylish.

Target Market

Nokia has mainly targeted

Target market for the Nokia mobile phone is between ages 20-40.

Who want to use Something Special

International Students

Teenager and Business class

POSITIONING OF Nokia

Nokia has created a distinct position in customer mind by

Nokia logo…..>

Slogan……> “Know our past. Create the future”

Latest Ring Tone

CompetitorsMany Competitors in this area

Samsung Sony Ericsson LG Others……….

% Share

• Nokia 37.2%• Samsung 17.3%• SonyEricsson 9.8%• LG 8.5%• Others…….

RIVALRY AMONG COMPETITORS

• INDUSTRY GROWTH RATE: The industry has grown by just 10% during 2008. This is down from the growth rate seen in 2007.

• CONCENTRATION AND BALANCE: The major players are Samsung, Sony Ericsson, LG and china mobile.

• INFORMATIONAL COMPLEXITY: Devices are becoming more complex and getting features (picture, audio, video) that are outside the core competencies of traditional manufacturers.

BARGAINING POWER OFBUYERS

• BUYER INFORMATION: Buyers have comparative information about the product in terms of price and features.

• BUYER CONCENTRATION: Network operators are relatively concentrated and large service providers have high bargaining power.

• SWITCHING COSTS: Individual buyers have low switching costs and are price or feature sensitive.

• PRODUCT DIFFERENCES: Low degree of product differentiation and any new feature or technology is quickly imitated.

BARGAINING POWER OF SUPPLIERS

• SWITCHING COSTS: A large number of suppliers for non critical components.

For critical components suppliers work closely with companies as they involve joint development of specialty inputs and sub-systems.

• IMPACT ON DIFFERENTIATION : Companies could switch suppliers for non critical components but are closely tied to them for critical components and sub-systems.

• THREAT OF FORWARD INTEGRATION: Suppliers do not pose any credible threat of forward integration even though they are outsourced.

THREAT OF NEW ENTRANTS -ENTRY BARRIERS

• PROPRIETARY PRODUCT DIFFERENCES: Technology and product designs are protected by patents.

• BRAND IDENTITY: Powerful brand identity of the existing players developed through advertising and product excellence.

• ECONOMIES OF SCALE: High fixed costs means that volume is essential to companies.

• CAPITAL REQUIREMENTS: Activities such as R&D and advertising requires large capital commitments.

• EXPECTED RETALIATION: Existing competitors have the financial clout to deter new entrants.

• ACCESS TO NECESSARY INPUTS: Suppliers work closely with existing companies and therefore critical components may only be available at a premium.

Basis of Competitive Advantage

• Product competitiveness : Nokia profitably competes in all mobile device segments from entry-level to high-end. It has the broadest product portfolio in the market.

• Customer satisfaction : Nokia uses customization to gain greater customer satisfaction

• R&D effectiveness : Nokia spent about USD 3.4 Billion on R&D.

• Demand-supply network alignment : Nokia captures its potential upside in high-demand situations by aligning its demand-supply network.

STRATEGIES

• Price Strategy• Market Strategy Push Pull• Battery Strategy

PRICING STRATEGY

• Pricing Strategy Matrix• Premium Pricing• Penetration Pricing• Economy Pricing• PRICE Skimming

BATTERY ISSUE

Three types of batteries are currently available for consumers

• Original Nokia batteries.

• Batteries manufactured by third parties sold under own brand or no-brand

• Counterfeit batteries

Nokia Batteries Meet ALLInternational Safety Standards

• Continuous control of the production and intensive product testing.

• Original Nokia batteries comply with all international standards, such as UL2054, UL1642,IEC 60950 etc.

• Manufactured with safety circuit, highest quality materials, correctly designed safety vent and clean, stable manufacturing process.

Cases of Exploding Batteries• 30-40 cases globally of exploding non-original

batteries.• Primary root cause of non-original battery failure is

internal short circuit in the cell.• Vast majority of short circuits caused by “traumatic

event” (i.e., dropping the phone) which jeopardizes integrity of poorly manufactured batteries.

• In each and every case, the battery in question has

proved to be a non-original battery (either third-party

or counterfeit) which did not include industry standard safety measure.

Nokia’s Response to Faulty & Illegal Batteries

• Nokia took all possible actions to ensure customer safety and satisfaction.

• Launched customer service program to help consumers and retailers recognize non original batteries.

• Replaced the batteries that were manufactured during that period with original one & that too free of cost.

SWOT ANALYSIS

STRENGTHS

• The Leader in the Industry• user friendly phones• High quality and professional team in the HRD

Dept and a very strong R&D Unit.• Strong Financial Backing.• Great features of Nokia Handsets.• Strong Customers Relation.

WEAKNESS

• Heavy in weight ( Most Models ).• Expensive than other competitors.• Big in Size ( Difficult Handling )

OPPORTUNITIES

• Targeting right customers at right time. • Increase their presence in the CDMA market, which

they are just entering, as well as 3G and Edge.• Can increase their Growth rate by reducing their

profit ratio.• Tax Reduction

THREATS

• Strong Competition.• Saturation in Current Market• Challenges of Continuous Technological

Development.

CORPORATE SOCIAL RESPONSIBILITYEnvironment -Recycling -Packaging -Transporting

Nokia helping hands -Blood donations -Fund raising -Volunteering at hospitals -Arranging activities for under privelege

CSR contd……………

Corporate giving -Disaster relief *drought in Euthopia *Sichuan earthquake in China *Cyclone nargis in Myanmar

-Disaster recovery *Southeast asian Tsunami *Earthquake in Pakistan

Conclusion

• Targeting Millions of internet users

• Low cost web enabling by 2010

• Focusing on the lower end of the society.

THANK YOU!!!