Nokia strategy and marketing
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Nokia strategy and marketing

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Nokia ppt

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Nokia strategy and marketing Nokia strategy and marketing Presentation Transcript

  •  Mubashir Hassan  Hafiz yasir  Qasim Nawaz  Waseem Baig  M-Saqib  Hassan Mujtaba Roll No 13-0 2 Roll No 13-10 Roll No 13-28 Roll No 13-48 Roll No 13-53 Roll No 13-55
  •  Overview of Nokia  Market share with its Competitor  Board of directors  Nokia Mission and Vision  Introduction  OLD Marketing Strategy for Nokia  Introducing the product  Current Competition in the market  S.W.O.T  Marketing principles  Ansoff”s Matrix  Market research  Sources of marketing information  The marketing mix
  •  The stages of marketing  Product life cycle- Mobile phones  Types of pricing strategies  External factors affecting pricing decisions  Nokia’s current marketing strategy  Current Market segmentation  Current Pricing strategy  Current Product life cycle-Nokia  By analyzing S.W.O.T is that Nokia's main weaknesses are  Current P.E.S.T  Current Market research  Employee value Proposition  Average Rating  Evaluation
  •  The company was founded in 1865 in Finland and was named Nokia in 1871 (Nokia, story). President and CEO of Nokia Corporation at the moment is Stephen Elope.  Nokia serves World wide demand for its products, which are feature phone sand Smart phones.  The company offers also services such as maps, navigation and music.  Currently Nokia has about 90981 (2-jan-2013) employees around the world.(Nokia, people and culture)  Revenue is 12.70 billion Euro.  Assets 25.19 billion Euro.  Net income 615 million Euro.  Market share 8.2%(smart phone)
  •  The members of the Board of Directors were elected at the Annual General Meeting on May 7, 2013, based on the proposal of the Board’s Corporate Governance and Nomination Committee.
  •  CHAIRMAN RISTO SIILASMAA-Born-1966  Chairman of the Board of Directors of Nokia Corporation. Interim CEO of Nokia Corporation from September 3,2013 until May1,2014 Board member since Chairman since Chairman of the Corporate Governance and Nomination Committee until September.
  • RISTO SIILASMAA Chairman of Nokia Rajeev Sure President and CEO
  • Vision:  "Connecting People” Mission:  "Build a new winning mobile ecosystem in partnership with Microsoft.  Bring the next billion online in developing growth market.  Invest in next-generation disruptive technologies. increase our focus on speed, results and accountability"
  • In 2007 the launching of the I phone by Apple Inc created the Smartphone market for the average person, before that the product was targeting only business users. Since then Apple’s I phones and Android phones, which have been offered by Motorola, Samsung, HTC and others have tried hard to compete in this fast growing market and have succeeded to be the big players in the industry. Alison Donnelly (2008) points out the situation are already changed in late 2008. She stresses the fact that not so long ago it was very popular to own Nokia, but at this time the company was loosing customers to rivals. The Finnish company had troubles adapting to the market changes.
  •  For this project, we have been instructed to come up with a marketing strategy for an existing company/product We have chosen to do Nokia communications, particularly the mobile phone sector of Nokia's business. To do this properly we will need to:  Appropriately identify, collect and use primary and secondary data that is relevant to the marketing strategy of Nokia.  Produce a clear analysis of the external influences affecting the development of a marketing strategy.  Show a full understanding of a marketing strategy for Nokia with a clear understanding of marketing principles.  Produce a full, well-balanced marketing strategy that reflects appropriate use of marketing models and tools.
  • Nokia is a communications based company, which focuses on mobile telephone technology. Given as * MMS * WAP (internet) * Polyphonic ringtones * Predictive SMS (where the phone will finish off a word for you if it can guess what you are typing) * Camera phones and * Video recorders
  • Latest Products of Nokia
  • Asha 311(java) E-71(symbian) 1280(simple)
  • With all this technology available in the communications market it is obvious that Nokia will have lots of competition, they include: * Sony Ericsson * Samsung * Motorola * L.G. * Q mobile
  •  Strength (internal factors): Nokia is currently one of the most popular Mobile communications companies in the industry, generating over 52,000 sales in 1997, which was a 34% increase from 1996. Nokia's net sales for the October-December period in 1997 came to a total of 857 million 669 million in 1996).  Weakness (internal factors): 1. They are currently aiming their products at a saturated market segment. 2. Their wage costs are forever rising. 3. Higher import charges have now been put into place. 4. There are some quite high supply chain costs that Nokia are currently paying.
  •  Opportunity (external factors): 1. Improve the technology that they are using to make their phones and use in their products. 2. Using innovation to re-invent their products, change and develop to offer something none of the competitors have.  Threat (external factors): This is looking mainly at the competition that are taking away Nokia's current market share and also government legislations (the total costs of 3G licensing in Europe is 110 billion Euros.
  • 1. Customer satisfaction Market research must be used to find out whether customers' expectations are being met by current products or services. 2. Customer perception: This is based on the images consumers have of the organization and its products, this can be based on; value for money, product quality, fashion and product reliability. 3. Customer needs and expectations: This is anticipating future trends and forecasting for future sales. This is vital to any organization if they wish to keep their entire current market share and develop more.
  •  4. Generating income or profit Satisfy stakeholders in the business. Although satisfying the customer is a big part of a companies plans.  5. Making satisfactory progress Organizations need to make sure that their product is developing along with the market, if a product is developing well, then income should increase.  6. Be aware of the environment There are also certain external factors that a company should be very aware of, such as P.E.S.T and S.W.O.T.
  • · Market penetration · Market development · Product development and · Diversification
  • Nokia need to find a new market segment to aim their products at. In order to classify the wants and needs of the consuming population, companies need to gather information on the following: Consumer behavior: How do customers react to advertising? Whether they are partial to prize give-awes or free gifts? What are their reactions to new and developed products? Buying patterns and sales trends- Organizations need to look at how buying trends and patterns are affected by class, gender, religion and region.
  • Consumer preferences: What customers are looking for in a product, for example, style, color, technology, amount of outlets, customer service and promotional styles. Activities of competitors in the market: Nokia need to examine how their rivals are adapting their prices and products to meet the consumers needs.
  • The information that companies collect through market research can be in one of two forms. 1. Quantitative data refers to data presented in numerical form. 2. Qualitative data is the information concerning the motives and attitudes of consumers.
  • The marketing mix is based around the idea of the 4 P's: Product The product is the centre of the marketing mix and the other three P's are based around it. Price Is a key factor in the selling of a product, and is usually the one that is open to the most change based on different pricing strategies, for example, competitor based, penetration or skimming.
  •  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.  Promotion: This involves providing information to the customer over a variety of media platforms, using radio, television and print advertising as well as using other promotional tools such as "money off deals" and "free giveaways".
  • 1. Market and product research: * Finding out what your customers want * Technical research 2. Product launch: * Test market * Pricing * Branding * Packaging 3. Product promotion: * Advertising * Merchandising * Publicity and P.R * Sales promotion
  • 4. Sales and distribution: * Managing the sales force * Type and amount of sales outlets * Local, national or international sales? * Transportation of goods 5. Monitoring and analyzing the sales: * Meeting customer satisfaction? * Does the product need modifying or replacing? * Is a profit being made? * Is customer service satisfactory? * Have the sales targets been met? * Is the promotion and distribution policy effective?
  • Introduction: When mobile phones where first introduced they were low quality technology (bad reception, poor reliability and had a short battery life), high priced (around £100 for a basic model) and consumers had to be persuaded to buy mobile telephones. Growth: In the growth stage of the product life cycle companies can expect advertising and promotional costs to be as high. In Nokia's case, mobile phones, as a necessity they will be more willing to pay higher prices for new phones that emerge in the market).
  • Maturity: When a product enters the maturity stage, advertising and promotional prices should decrease, as consumers are more aware of the product. At this point in the product life cycle the main producers (Nokia, Siemens, Sony etc). Decline: This is the stage that Mobile phones have entered (Nokia had recorded their first drop in sales earlier this year), and all the remaining companies are trying to re-launch their products by either developing their products. Branding: Most forms of promotion are based around the idea of having an image to go with the product. Brand imaging plays a dominant part in an organizations marketing strategy.
  •  Cost based pricing:  Marginal cost pricing:  Demand based pricing:
  •  Market skimming:  Penetration pricing:  Price discrimination:  Destroyer pricing:
  • * Market conditions How much are the customers willing to pay? Can advertising increase product image and price? Is the product aimed at a mass market or a niche market? (a niche market refers to when a company aims a product at a very small, select segment of the market). * Production costs- Prices must cover the costs spent in production if a profit is to be made. The price must cover variable costs (for the short term) and fixed costs (for the long term) otherwise a company will face closing. * Taxes and subsidies- VAT and customs duties will raise the price of a product. Government subsidies will allow businesses to charge lower prices.
  • * Business objectives- Is the business looking to maximize profits? Or is the company looking to increase its market share? * Marketing mix- What stage is the product at in the life cycle? What forms of promotion are being used? Where is the product being sold? * Marketing structure- How much competition is there in the market? What prices is the competition charging?
  • The marketing mix: Price: Nokia's prices are usually competitor based, in such a way as, they try to keep their prices a bit lower then those of the closest competitors, but not as low as the "smallest" competition as consumers do not mind paying the extra money for the "extra quality" they will receive with a well known brand, such as Nokia. Place: Nokia phones are generally sold at all established mobile phone dealership.
  •  Promotions Nokia tend to promote the new technologies and mobile devices they create using one big advertising campaign that focuses on a singular technology instead of each individual handset so they can appeal to a lot of different markets with one campaign. Product: Nokia phones tend to include all the latest technology and a lot of the consumers favorite aspects such as text messaging and games like Snake and Memory. When the phones came out they were big and bulky and quite unattractive but now they are all quite sleek and stylish.
  • Market segmentation refers to the different areas of the population that companies can aim their products towards. The market segment that Nokia has chosen to aim is the youth market focusing on students aimed.
  • Nokia's current pricing strategy is based on 2 main theories: 1. Penetration pricing: Although this strategy is usually for companies that are trying to gain instant market share in a new market, companies who are already well known in the market still do it with new products that carry new technologies so they can take more market share form their competitors. 2. Competitor based pricing: This is used when there is a lot of competition in the market and a company is looking to take another companies market share by offering the same or similar products for a lower price, this happens a lot in the communications market and this strategy is used by every mobile phone producing company that is still in business.
  •  Introduction: When Nokia phones were first introduced they required a lot of promoting and advertising as they weren't established enough to sell based on their quality and what they offer to the consumer, so this is where Nokia spent the largest amount of money promoting their products and establishing their brand as a leader in the communications market. Growth: This stage of the life cycle also has high promotion costs involved in it, this is due to the fact that mobile phones are becoming established as a consumer necessity and lots of other companies decide to enter the growing market, although companies do not need to assure customers that they need a mobile phone, Nokia have to assure the customers that they want a Nokia phone and this is where the high promotional costs come from.
  • Maturity: In this stage the promotional costs do decrease as the more popular brands, such as Nokia and Samsung, have gathered the majority of the market share and only have to show customers that they have a new model out and it will sell well, as they have been established as a quality brand and customers no-longer need to be persuaded to buy Nokia brand technology. Decline: This is the stage that the mobile communications market, including Nokia, have recently entered (Nokia had reported the first drop in sales in the first quarter of 2002), and companies are now promoting, heavily, their new MMS products to the market in an attempt to get out of decline and back into growth.
  • 1. They are currently promoting their products to a market that is verging on saturation- Nokia need to re-launch some of the older models to a different market and only promote new products to the existing market segment. 2. Their wage costs are already high, and are always rising. 3. High import charges are being implemented by the government.
  • Political factors:  Legal factors, such as the 3G technology licensing which has cost companies a total of 110 billion Euros so far, are always around to stop Nokia from properly developing strategies. Environmental, Social and ethical factors:  Many companies may view profit as more important then ethical practice and this can lead them to making illegal decisions and this has been a big contribution to many companies going out of business or loosing their entire market share to eco-friendly companies. Technological factors:-  Nokia marketing strategy as they must always keep up to date with every change within the market if they are to be successful and hold on to their market share ad hopefully gain more.
  •  Nokia's business strategy (statement taken from www.nokia.com) "Our business objective is to strengthen our position as a leading communications systems and products provider. Our strategic intent, as the trusted brand, is to create personalized communication technology that enables people to shape their own mobile world. Nokia are currently creating innovative technology to allow people to access Internet applications, devices and services instantly, irrespective of time or place Nokia need to capitalize on its leadership role by continuing to target and enter segments of the communications market that we believe will experience rapid growth or grow faster than the industry as a whole.
  •  The adaptation of this has already started at country levels to reflect respond to local employee needs and expectations. The four fundamentals of the proposition are:  (1) The Nokia Way and Values,  (2) performance-based rewarding,  (3) Professional and personal growth, and  (4) work-life balance.
  • Battery life 1 Exchangeable covers 5 WAP 9 MMS 10 The style of the phone 3 SMS 2 Games 6 Picture messaging 8 Organizer 7 Ringtone features 4
  •  Suggested revised strategy has a lot of advantages over Nokia's previous strategy, listed them below:  Our target market is one that has never been entered before, so Nokia will instantly gain 100% market share, whereas the current target market is saturated and competition for market share is very strong.  The products that are being released do not need to be as technically advanced as the ones in the current market, because my market research showed that the 40+ market do not want phones that are too complicated and hard to use.
  • · If product research and development is not needed as much anymore then Nokia can afford to decrease its employment numbers and this would save Nokia a lot of money every year. · When entering a new market with no competition a company can charge whatever prices they want, Nokia's prices can be higher than they currently are and this will increase income and profitability.