nokia stp strategy
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A PROJECT REPORT ON NOKIA
ASSIGNED BY:
SUBMITTED BY:
Ms. Shubhra Bahal Dipak RanjanSwain
Rajesh Kumar
Jena
Rishab Verma
Sabyasachi
Mukherjee
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Sachin Gupta
Vivek Kapoor
CONTENTS
EXECUTIVE SUMMARY
INTRODUCTION
HISTORY
ANALYSIS
4 PS CONCEPT
PEST ANALYSIS
STP ANALYSIS
LOOPHOLES
RECOMMENDATIONCONCLUSION
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NOKIA: AN INTRODUCTION
Everyone has a need to communicate and share. Nokia
helps people to fulfill this need and they help people feel close to
what matters to them. They focus on providing consumers with
very human technology technology that is intuitive, a joy to use,
and beautiful
HISTORY OF NOKIA:-
NOKIAS FIRST CENTURY: 1865-1967
The first Nokia century began with Fredrik Idestam's
paper mill on the banks of the Nokianvirta river. Between 1865 and
1967, the company would become a major industrial force; but it
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took a merger with a cable company and a rubber firm to set the
new Nokia Corporation on the path to electronics.
1865: The birth of Nokia:-
Fredrik Idestam establishes a paper mill at the TammerkoskiRapids in south western Finland, where the Nokia storybegins.
1898: Finnish Rubber Works founded:-
Arvid Wickstrm founds Finnish Rubber Works, which will
later become Nokia's rubber business
1912: Finnish Cable Works founded:-
Eduard Poln starts Finnish Cable Works, the foundation of
Nokia's cable and electronics businesses.
1937: Verner Weckman, industry heavyweight:-
Former Olympic wrestler Verner Weckman becomes
President of Finnish Cable Works.
1960: First 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.
THE MOVE TO MOBILE: 1968-1991
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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...
1979: Mobira Oy, early phone maker
Radio telephone company Mobira Oy begins life as a joint venture
between Nokia and leading Finnish television maker Salora.
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 companys first digital telephone switch, goes
into operation.1984: Mobira Talkman launched
Nokia launches the Mobira Talkman portable phone.
1987: Mobira Cityman birth of a classic
Nokia launches the Mobira Cityman, the first handheld NMT
phone.
1991: GSM a new mobile standard opens up
Nokia equipment is used to make the worlds first GSM call.
MOBILE REVOLUTION: 1992-1999
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In 1992, Nokia decided to focus on its
telecommunications business. This was probably the most
important strategic decision in its history.
As adoption of the GSM standard grew, new CEO Jorma
Ollila put Nokia at the head of the mobile telephone industrys
global boom and made it the world leader before the end of the
decade...
1992: Jorma Ollila becomes President and CEO:-
Jorma Ollila becomes President and CEO of Nokia, focusing the
company on telecommunications.
1992: Nokias first GSM handset:-
Nokia launches its first GSM handset, the Nokia 1011.
1994: Nokia Tune is launched:-
Nokia launches the 2100, the first phone to feature the Nokia
Tune.1994: Worlds first satellite call:-
The worlds 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 Nokias Snake game.
1998: Nokia leads the world:-
Nokia becomes the world leader in mobile phones.
1999: The Internet goes mobile:-Nokia launches the world's first WAP handset, the Nokia 7110.
NOKIA NOW: 2000-TODAY :-
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Nokias story continues with 3G, mobile multiplayer
gaming, multimedia devices and a look to the future...
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:- Olli-Pekka Kallasvuo becomes
Nokias President and CEO; Jorma Ollila becomes Chairman of
Nokias board. Nokia and Siemens announce plans for Nokia
Siemens Networks. The birth of Nokia Eseries.The ultimate
handheld communicator mobiles (Enterprise series) are launched.
2007: Nokia recognized as 5th most valued brand in the world.
Nokia Siemens Networks commences operations. Nokia launches
Ovi, its new internet services brand.
2008: Nokia's three mobile device business groups and the
supporting horizontal groups are replaced by an integrated
business segment, Devices & Services.
THE 4PS OF THE MARKETING MIX:
PRODUCT:-
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The product is the centre of the marketing mix and the other
three P's are based around it. Consumers purchase goods and services
for a variety of individual reasons and a company must be aware of all
of these when selling a product (that is why they conduct market
research). Nokia does exactly the same and comes up with innovative
phones almost every six months. The new phones that Nokia launches
have some new feature or price difference, thus appealing to the
consumer. Sometimes, Nokia launches special and limited editions of
its mobile phones, on special occasions such as the Olympics. In short
they offer phones of great variety with various designs and high
quality.
Price :-
Price is a key factor in the selling of a product, and is usually theone that is open to the most change based on different pricingstrategies, for example, competitor based, penetration or skimming.
The three main factors affecting the amount charged for a product orservice, are; the cost of production, customer demand andcompetition. Since its entry into Indian mobile market in 1995, it
focused on manufacturing of mobile handsets based on GSMtechnology. Nokia built a strong brand image with focused marketingand distribution network. It started focusing on the low-cost mobilephone segment for rural markets in India, but, faced stiff competitionfrom Sony Ericsson, Samsung, and Motorola who also started offeringlow-cost handsets. Nokia has come up with the perfect prices for each
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and every consumer segment in the market. A lower middle-classperson can go for a Nokia 1200 costing around Rs. 1200 while anexecutive can opt for N-96 costing around Rs. 33,000.
Place :-
This refers to the chosen outlets for a product or service, for a
product to be very successful it must be easy to access, Nokia mobile
phones are very easy to access nowadays, they are sold in
supermarkets, Nokia Priority, Nokia Care and specialized outlets (eg.
The Mobile Store).
Promotion :-
This involves providing information to the customer over avariety of media platforms, using radio, television and print advertising
as well as using other promotional tools such as "money off deals" and
"free giveaways". The advertisements that Nokia comes up with are
very successful in targeting the customers in a consumer market. The
advertisements are made in such a way that it appeals to the
psychology of the consumer. They also have various sale promotion
schemes like offering discounts on special occasions and giving free
gifts along with a purchase of a mobile phone.
PEST ANALYSIS
In the case of Nokia, it can be classified as international
organization. It is basic for global brand, which is required to focus on
macro environmental factors, such as Nokia. Macro environmental
factors comprise Political, Economics, Society, and Technology, viz,
PEST Analysis. It is necessary force that Nokia has to concern andknow what is happening in the other countries at the moment.
Because there are different culture and different external factors
between different countries, Nokia has to adjust its strategic plan in
order to develop international market.
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Political :-
It is important of a company to acquire resources from
government, such as economic policy, and science and technology
policy. The success of Nokia has obtaine the resources from Finnishpolicies which assist Nokia to advance its products. The Finnish
policies are the most important factors of Nokia. To operate efficiently,
a modern knowledge- and technology-based economy that is highly
specialized, internationalized and undergoing rapid structural change
requires active support from the public sector. In its widest sense
industrial policy and science and technology (S&T) policy comprise all
those measures by which the public sector shapes the operating
environment for business and thus fosters public welfare. Both
policies used by Finnish government and Parliament are crucial for thedevelopment both of the Finnish Economy and of national information
society.
Finnish government best facilitate the efficient functioning of the
economy by directing its resources to the reduction of market failures.
The state must also pursue an industrial and economic policy that
provides a stable macroeconomic environment for enterprises.
General macroeconomic stability, low interest rates, stable currency
conditions and the international competitiveness of the tax systemform the foundation for the growth of business an improvement in
employment. As the result of this, not only Finnish Government but
also international companies, such as Nokia, have play very important
roles to develop their information society and national technology
strength.
Economic :-
According to the fact that Russian Federation was collapsed in
early 1990s and it assaulted with Finnish economics. Nokia also facewith the problem, and changed its functions from single market and
overall products to global market and focusing mobile phone market.
With incomes rising, people have more disposable income, which
enables consumers to be more selective with their choice of mobile
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phone, looking to other factors rather than fulfilling the most basic of
user (text, messaging and phone calls)
Nokia being a multinational company operates in many
countries. They have to abide by the economic policies in whichevercountry they are operating.
Society and Technology :-
In the 1980s, peoples trend to microcomputers and Nokia tried
to match the tendency to produce its main products, such as
computers, monitors and TV sets. According to the changes in 1990s,
Nokia also changes its functions to mobile phone market. Nowadays,
the global market trends to connect PC and mobile phone, even
though to combine these two products together.
On the other hand, one important future challenge of Nokia is to
establish its policy to follow up the environmental policy and science
and technology policy of the Finnish Government. Sustainable
development and environmental protection have various effects on the
operation of the innovation system. Innovation also creates new
opportunities for promoting sustainable development. The markets for
environmental products are expected to grow rapidly in the near
future. The Finnish government offers goods facilities for taking this
opportunity. National and European reforms arising from
environmental objectives influence the perquisites from
innovation. Nokia must be used to find solution which help to
implement environmental objectives as well as the objectives of
innovation policy in a balanced way.
To sum up, the main reason of Nokia has success to advance its
products are the policies and technology development of Finnish
Government. It cannot be separate between Nokias successful ofadvance its product and Finnish Governments policies, both of Nokia
and Finnish Government are the winner in the international market.
Nokia has obtained the success of mobile phone market, and Finnish
Government has established its position of technology development.
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At this moment Nokia is the best selling mobile phone company owing
to its constant upgradation in the technology of its phones.
STP ANALYSIS
SEGMENTATION AND TARGETING:-
Entry level: (Rs 1,200-3 ,000) :- Nokia targeted low income people
and first time mobile buyers in this series. Sets include are 1200,
1208, 1100, 1110, 1112 etc
Classic Series: (Rs 7,000-17,000) :- Nokia targeted decent
people in this series. Sets include in this series are
6300,6233,6120,3120 etc
N gage Series: (Rs 8,000-16,000) :- Nokia targeted game lovers in
this series .These sets include game like play station, PSP and
Xbox. N- Series: ( Rs 7000- 3 5 ,000):- Nokia targeted the young
generation who wanted to possess mobiles with the latest
technologies such as a 5 MP camera, a decent music player,
GPRS, etc. This series is also called multimedia computer. Named
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as on step ahead multimedia. Sets include N72, N81, N95, N96,
N97, etc
E-Series: ( Rs 10,000- 60 ,000):- These mobiles were launched for
people who needed mobile computing on the go especially
business people. These phones are enabled with word,
spreadsheet and presentation softwares. They also are equipped
with GPRS/ EDGE technologies thus functioning as a palmtop.
Sets include E90, E75, E61, E62, etc
Xpress music Series: (Rs 6,000-2 0,000):- Nokia launched this
series basically for the people who loved music. Good dolby
digital earphones and long battery life are the features of these
mobile phones. Sets include 5800, 5610, 5320, 5310, 5220, etc
Premium Series:(Rs 80,000-1,500,000):- In this series Nokiatargeted people who show visual status. Sets include in this
series are Sephiraarte, 8800Gold, 8800arts etc
POSITIONING:-
Positioning of a product refers to creating an image about a
particular product. Nokia has been very successful in this strategy.
Nokia has created a distinct position in customer mind by:-
Nokia logo:
Slogan:
StandardRingtone
Standard message tone.
Long battery backup.
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User friendly mobiles.
The specific message that is conveyed to the customers in every
advertisement is:
Nokia enable you to get more out of life.
These specific aspects have been embedded into the mindset of
the consumer in such a way that every time they saw the logo or
heard the ringtone they associate it with a Nokia product. Hence Nokia
has been very successful in positioning it products in the market.
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LOOPHOLES
No doubt that the products from the Finnish company, Nokia, are
some of the very best in the world, but the company still hasnt found
a profitable way to market its goods. The very reason that other
mobile phone companies are fast eating up Nokias market share is
their superior (yet simple) marketing practices.
Motorola and Samsung must now be in the FUW (frequently used
words) list in Nokias board meetings. These companies have made
Nokia pay dearly for its rudimentary approach in marketing its phones.
The aggressive marketing practices followed by Motorola have hitNokia very hard and it is losing very crucial global market share every
month to its American competitor.
Nokia, quite alarmed by the dropping sales of its phones, is now
putting all its weight behind the N-Series range. The N-Series is packed
with multimedia features and Nokia believes that these phones might
woo the costumers back to the big daddy of the mobile phone world.
But Espoo, we have a problem!! (Nokia is headquartered at Espoo,
Finland).
While Motorola (quite intelligently) gives a dashy-flashy name to
every phone it brings into the market, Nokia tends to do the exact
opposite. Nokia from the very start has relied on numbers rather than
names. This strategy worked very well in the past, but only because
there wasnt much competition back then. But times have changed.
Every month the market sees at least a dozen new handsets from an
equal number of manufacturers. Consumers now have more than they
can choose.
Consumers are more attracted by names because they can thus
easily relate to the features of the phone. This is evident from the
success of the MotoRazr, MotoSlvr, MotoRizr and MotoKrzr. These
phones are not packed with heavy multimedia features like the N-
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Series; still they are selling like hot cakes. Just by reading the name of
the handset, one gets a broad idea what the phone looks like or
what its features are.
Nokia advertises more than Motorola. Still its market share isdropping. Motorola does not need to spend much money for the
promotion of its products and it doesnt have to worry about the
marketing of these phones; it just simplifies its job by naming its
products right. Take the example of Apple. It did not have to do much
to promote its iPhone.
RECOMMENDATIONS:
It is high time that Nokia starts applying some sense to its
marketing strategies. It doesnt have to do anything great, other than
just naming its phones. A few months ago, a highly placed Nokia
official told Reuters that his company would soon go the Motorola way
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and start using names for its new phones. It is in Nokias best interest
that it takes to this path as early as possible, otherwise the once
market leader might see its market share plummeting to even lower
depths
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CONCLUSION
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