Indian mobile users bought nearly 700,000 high-end smart phones in the April-June quarter (2009)
However the prices are not as low as the smallest competition as consumers do not mind paying a little more for the quality which brand NOKIA offers. Penetration :Nokia has been following this strategy for new products that carry new technology so that they can take more market share from their competitors. However the prices are not as low as the smallest competition as consumers do not mind paying a little more for the quality which brand NOKIA offers. Skimming: Hereby, the consumer is charged large premium initially. However, price wars are a common feature in mobile communication market which limits Nokia’s skimming strategy. Maximum of its revenue comes from N-series or E-series while the low-end phones contribute marginally to its profit.
Franchisee are named PRIORITY DEALERS .they need to have criteria like location,footfall etc.
Managing networks on behalf of operators: Contract with Airtel where customers get Airtel services on buying a nokia phone and airtel in return pays an amount to nokia thus enabling it to reduce the price of its phones. In advertisement with Shahrukh Khan it showed all the models- something like “Hamara nokia”
Urban market:12 per 100 persons instead of 19 per persons –penetration Nokia Life Tools: getting market prices, crop advisory and weather information, with Maharashtra State Agriculture and Marketing Board providing farmers with information on weather,agriculture, Microfinance: tied up with SKS Microfinance, which has 653 branches across 15 States. Building Trust in rural India by offering services+scope for more revenue through these services Sachet Pricing: Further, the service is moving towards “sachet pricing”, in that the Rs 30 (or Rs 60 for the composite Agriculture service on prices, weather and crop advice) might be debited in weekly or even daily instalments to lighten the burden. At present, it is debited every 10 days Entertainment is most popular but have started adopting more than one service.Learning,astrology and GK (show off) getting popular.
Mobile Handset Market in India (Value in US milion $) India currently has 68 mobile handset players and it is expected to increase to 200 by 2015 Average Selling Price (ASP) of mobiles sold in India is around Rs 2500 Total number of mobile subscribers in India to grow to 1billion by 2015
Mobile Handset Market Share (in 2010-11) 26% 39% Nokia Samsung5% Micromax 6% Blackberry 7% LG 17% Others Total Volume: 156 million units NOKIA- Market Leader
HistoryFounded as a paper mill in Finland by Fredrik Idestam NOKIA CORPORATIONNordic Mobile Telephone (NMT) launchedTelecommunication branch ‘Nokia-Mobira Oy’ formed Mobira Cityman, 1st handheld NMT phone launched Jorma Ollila becomes President and CEO of Nokia 1st GSM handset, Nokia 1011, launched
PEST Analysis1991 – Economic of mobile communication with the origin of1995 – evolution Liberalization Reforms Mobile Telephony in India1994 – National Telecom1992-1999 – Indian economic transformed from socialistic market to capitalistic market1999 – New– Rise in income levels of society2000-2010 telecom PolicyGrowth prospects – Indian telecom industry is the fastest growing2000-2010 – Government encouraging the FDI and competition. telecom industry in the worldIndian Mobile Market set to grow to $18 billion by 2012
PEST AnalysisRise of Information societyMore awareness about mobile phone handset choice and Global advancements in technology such as MMS, Bluetooth, WAP, GPRS, cameras, social network, information availability advancements due to increased3G etcChange in lifestyle more technologically advanced than their Asian markets areEuropean counterparts. For example in influence) 4% of phones in Peer group influence (Reference group 2002, justEurope had cameras, whereas in Asia, it was 90% Roles and Status
Consumer BehaviourClose family relationships Need for communicationSaving-oriented mentality Need for low end mobile phonesStatus symbolFamily & friendsAge & occupation •Students •Working Professionals •Housewives
Post Sales Behaviour Availability of service centers Online applications and applications stores ◦ Nokia Ovi Suite ◦ Nokia PC Suite ◦ Nokia Beta Labs ◦ Symbian OS Software upgrades Resale value
Consumer Survey AnalysisWhat you like in What you dislike NOKIA in NOKIA
Psychographic Segmentation High InvolvementRational Aspirational Low Involvement
Marketing Mix PRODUCTClassification of products based on:Use Push mail servicesMessaging 3GneedMobile business solutionsFM MP3 GPSprice Cameracamera and HD video RingtonesQuick Office High MP Bluetooth Color Screen Call conferencing GPRS Alarm Nokia 5800 • SEGMENT - Mid-range multimedia phones Nokia N8 Nokia E72 1100 Young Generation from middle & Nokia •TARGET • SEGMENT - GROUP - Smart Multimedia phones High End • SEGMENT - Low end basic phone • SEGMENT - Mid-high end Business-cum-Smart phones upper-middle class •TARGET GROUPGROUP - Lower class (first time users) •TARGET GROUP -- Business professionals aged 25crazy •TARGET •POSITIONING Young Generation from the upper - device for the music - 50 middle class •POSITIONING - incomes with upper middle classHighly reliable & durable phone customers. •POSITIONING - device packed with must have features •In 2008, NavigationIndia for working class Edition to released which •POSITIONING – Business phonewas serve needs of like vibrant GUI, music,selling model- sold 250 million •World’s best connectivity, photography, games working professional + good multimedia support with positioned it as much more than a music phone etc phones maps, navigation features, car charger and car kit
Marketing Mix PRICE Low end phonesPrice wars leading to lower profits High end phonesHigher demand for advanced features
Marketing Mix PLACE Nokia has the largest mobile distribution network of 1,30,000 outlets Nokia ‘Concept Store’ setup in 9 major cities across India to enhance customer experience Nokia Priority Dealers setup in all Tier- 1 and Tier- 2 cities Multi-brand stores like The Mobile Store, Hot Spot, Big C, etc
Marketing Mix PROMOTION Below the line marketing Brand Ambassador Priyanka Chopra / Shahrukh Khan Digital marketing through social networking sites, mobile sites, blogs, etc Extensive TV campaigns and Advertisements in regional languages Made For India advertisement for Nokia 1100 The Har Jeb Mein Rang Advertisement Campaign Main sponsor of Kolkota Knight Riders in IPL Nokia India Fest 2011-Pan India College festival
Marketing Mix PROMOTIONRURAL MARKET Nokia Life Tools (Jeevan Sadhan): SMS Mechanism, Sachet Pricing, Daily cost of Rs 1 only ‘Showrooms on wheels’ and ‘Rural care on the go’ Tie-up with major micro-finance institutions like SKS Microfinance
Branding & Positioning Brand value worth 20 billion dollars Voted as ‘The most trusted brand in India’ according Brand Equity Survey (Jan,2011) Brand personality of Nokia- A trusted friend Nokias slogan- Connecting people Media Budget Distribution:20% Print media and 80 % Television media
Branding & PositioningChanges in Branding Strategies Umbrella Branding- N series & E series Company Name Branding Rebranding of Ovi stores to Nokia Services Rebranding effort by changing the classic Nokia Sans font to Nokia Pure font
Branding & Positioning PositioningPoints of Parity (POP) Points of Differentiation (POD)Good voice clarity Robust build Camera High battery life GPRS Good brand perception FM & Music Player Ease of use
RIVALRY AMONG COMPETITORS CONCENTRATION AND BALANCE: The major players are Samsung, Micromax, Blackberry, LG, HTC etc INFORMATIONAL COMPLEXITY: Devices are becoming more complex and getting features that are outside the core competencies of traditional manufacturers CORPORATE STAKES: High stakes for the companies because of huge investments into the business REDUCING PROFIT MARGINS due to intense competition & price wars
BARGAINING POWER OF BUYERS BUYER INFORMATION: Buyers have comparative information about the product in terms of price and features. PRODUCT DIFFERENCES: Low degree of product differentiation and any new feature or technology is quickly imitated. LOW SWITCHING COSTS due to lower prices
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-ENTRYBARRIERS PROPRIETARY PRODUCT DIFFERENCES: Technology and product designs are protected by patents. Eg, Apple 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.
THREAT OF SUBSTITUTES PC based applications such as IP TELEPHONY Convergence between PDA’S AND MOBILE PHONES. Internet revolution
SWOT Analysis STRENGHTSStrong Corporate Brand & the largest cell phone vendorUser-friendly featuresStrong Distribution NetworkBest Navigation (Nokia OVI Maps)High resale value of hand-sets compared to other handsets WEAKNESSSlow to adopt new ways of thinking (for example, launch of dual sim mobiles)High prices compared to other domestic companiesSymbian OS lost out the race with Google’s Android and Apple iOSToo many products & very little product distinctionNo of features offered in the lower end Nokia models are very little and stagnant
SWOT Analysis OPPORTUNITIESNokia can expand its market share by introducing a new low cost brand incompetition to companies like Micromax, GFive etcIncrease their presence in CDMA marketThey can target the smart phone in the low to medium segment with MS Windows-7 platform THREATSThreats from emerging domestic companies like Micromax, Karbonn, Maxx, Lava,Spice etc who offer similar features at lower pricesIn the higher segment it is losing market share to players like Apple, HTC,Blackberry, Samsung, etc
Future Strategies New Brand segment for lower end phones Change in the distribution model
Future Strategies Increase the commission of mobile retailers More emphasis on social media marketing
Future Strategies Nokia mobile money project Leverage on Nokia-Microsoft Deal: Windows 7? MeeGo- answer to Android?