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Success of Nokia in India

Success of Nokia in India

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  • 1. Marketing Management SUCCESS OF NOKIA IN INDIA
  • 2. Agenda 1 2 3 Introduction The Power Of Focus 4 About the Company 5 6 7 8 9 10 Expanding The Market Building The Brand Products In India Nokia’s R&D Conclusion Nokia – Siemens Joint Venture Investment In distribution & Manufacturing
  • 3. Introduction Fastest Growing Market for Mobile Phones Indian Government 1 st opened up Telecom Market to Private Enterprise in 1994 India has170 million Subscribers & adds 6-7 Million each month Sony Erricson was the 1 st mover in the mobile market
  • 4. Agenda 1 2 3 Introduction The Power Of Focus 4 About the Company 5 6 7 8 9 10 Expanding The Market Building The Brand Products In India Nokia’s R&D Conclusion Nokia – Siemens Joint Venture Investment In distribution & Manufacturing
  • 5. Nokia Company Established Wood pulp mill Manufactured paper 1865 Entered into telecommunication Industry Expanded to New business And sectors GSM was introduced Made Agreements With Several European Countries 1960 1960 1980 1991 Today, Nokia is a world leader in digital technologies, including mobile phones, telecommunications networks, wireless data solutions and multimedia terminals.
  • 6. VISION OF THE COMPANY GOAL Our goal is to have the industry’s best products and services, most loyal customers and most efficient operational mode Our vision is a world where everyone can be connected.
  • 7. Grow Build Transform Nokia’s strategy relies on growing, transforming, and building the Nokia business to ensure its future success. Company Resolution Company Resolution
  • 8. NOKIA’S APPROACH Nokia has a very human approach to technology: Simple Intuitive Experience to fall in love Reliable
  • 9. Nokia’s Structure
  • 10. NOKIA’S RIVALS
  • 11. Nokia’s Strategies Focus on mobile phone market Establishing crucial distribution partnerships Making early investments in manufacturing & brand-building Developing innovative product features Nokia’s Strategy is Potentially Risky
  • 12. 3,161 7,621 10,827 15,806 Nokia India’s Turnover
  • 13. Nokia Staff Strength in India 167 2002 2003 2004 2005 2006 2007 182 588 1,605 6,249 9,073
  • 14. Nokia’s Market Share GSM handset market share in India Nokia 70% Motorola 15% 7% 8% Others Sony Erricson Nokia’s total market share is 60% CDMA handset market share in India
  • 15. Agenda 1 2 3 Introduction The Power Of Focus 4 About the Company 5 6 7 8 9 10 Expanding The Market Building The Brand Products In India Nokia’s R&D Conclusion Nokia – Siemens Joint Venture Investment In distribution & Manufacturing
  • 16. The Power of Focus Focus played a key role in the company’s growth in India Nokia completely focused on mobile phones Nokia invested ahead of everybody else – in brand, in people & in distribution Nokia has invested more than $1 billion in India Nokia has invested in each vertical of the handset ecosystem, be it manufacturing, distribution, design or R&D.
  • 17. Agenda 1 2 3 Introduction The Power Of Focus 4 About the Company 5 6 7 8 9 10 Expanding The Market Building The Brand Products In India Nokia’s R&D Conclusion Nokia – Siemens Joint Venture Investment In distribution & Manufacturing
  • 18. Investment in Distribution 95000 outlets selling mobile phones 50000 only Nokia brand is available 45000 other brands Nokia started distributing its phones through a partnership with HCL. Due to tremendous growth opportunities both the companies decided to address some markets jointly and some individually.
  • 19. Investment in Manufacturing
    • The other big investment area that has set Nokia apart from other telecom firms is manufacturing facilities and R&D.
    • Nokia has established a $150 million handset manufacturing facility in Chennai in 2005 . The total production at this unit has crossed 25 million handsets . 30% of this production is being exported to neighbouring countries.
    • The Chennai factory is devoted to handsets, whereas other companies are planning to make a whole range of consumer electronics products.
    Domestic manufacturing has worked to Nokia’s advantage
  • 20. Agenda 1 2 3 Introduction The Power Of Focus 4 About the Company 5 6 7 8 9 10 Expanding The Market Building The Brand Products In India Nokia’s R&D Conclusion Nokia – Siemens Joint Venture Investment In distribution & Manufacturing
  • 21. Building The Brand Brand Brand is a huge, term, symbol, design, or combination of these that identifies a seller’s products and differentiates them from competitors products
  • 22. Brand Equity Quality is at the heart of Nokia’s brand promise. Improved Perceptions Of Product Performance Brand Extensions Greater Loyalty
  • 23. REAPS MODEL ASPIRATIONAL EMOTIONAL RATIONAL PHYSICAL SPIRITUAL
  • 24. Agenda 1 2 3 Introduction The Power Of Focus 4 About the Company 5 6 7 8 9 10 Expanding The Market Building The Brand Products In India Nokia’s R&D Conclusion Nokia – Siemens Joint Venture Investment In distribution & Manufacturing
  • 25. Products in India Nokia focused on Innovative features Nokia 1100 was the first made for India phone which incorporates a torch & alarm clock . Planning to come up with ‘shared phone’ Its has launched products in there new sub-brands E series and N series
  • 26. Nokia’s Products Communicator 9300 Nokia N series Nokia E series Nokia - 1100 Nokia 5100 Nokia - 3200
  • 27. Huge style icon Safety product Huge productivity vehicle A driver of a lot of economic activity Entertainment purpose Reasons why Indian market Is different
  • 28. Agenda 1 2 3 Introduction The Power Of Focus 4 About the Company 5 6 7 8 9 10 Expanding The Market Building The Brand Products In India Nokia’s R&D Conclusion Nokia – Siemens Joint Venture Investment In distribution & Manufacturing
  • 29. Expanding Market Expanding Market Penetration – led Replacement – led
  • 30. Nokia’s Target Market Target Market High Middle Low Nokia’s target depends on their type of products
  • 31.
    • For example:
    • - The target segment for their upcoming E series is business people . It has many business programmes and functions .
    • - While phones like 1100 are targeted to the lower class people who cannot afford a cell phone costing more then 2000 - 3000
  • 32. Agenda 1 2 3 Introduction The Power Of Focus 4 About the Company 5 6 7 8 9 10 Expanding The Market Building The Brand Products In India Nokia’s R&D Conclusion Nokia – Siemens Joint Venture Investment In distribution & Manufacturing
  • 33. Nokia’s R&D
    • Its continuous investment in R&D is one of there key success factors .
    • They have R&D centers in 11 countries and employed 20,882 people in research and development, representing approximately 36% of Nokia’s total workforce.
    • Nokia believes that research and development is vital to bit the competition in the mobile communication industry.
    • Short term, medium term and long term.
  • 34. Agenda 1 2 3 Introduction The Power Of Focus 4 About the Company 5 6 7 8 9 10 Expanding The Market Building The Brand Products In India Nokia’s R&D Conclusion Nokia – Siemens Joint Venture Investment In distribution & Manufacturing
  • 35. Nokia – Siemens Joint Venture
    • Nokia and Siemens had combined their mobile and fixed-line phone network equipment businesses.
    • The joint venture, to be called Nokia Siemens Networks (NSN ) , will have annual revenues of €15.8bn .
  • 36.
    • NSN will provide equipment for both fixed line communication and mobile communication.
    • The new company would be one of the largest telecommunication equipment makers in the world .
  • 37. Agenda 1 2 3 Introduction The Power Of Focus 4 About the Company 5 6 7 8 9 10 Expanding The Market Building The Brand Products In India Nokia’s R&D Conclusion Nokia – Siemens Joint Venture Investment In distribution & Manufacturing
  • 38. Conclusion
    • Relation with Marketing Management
    • - Various Laws of Branding are applied by the company such as
    • 1.Law of Contraction
    • 2.Law of Quality
    • 3.Law of Extension
    • 4.Law of Company
    • 5.Law of Border
    • - They have their own business model (REAPS).
    • - There core competence is Mobile Handsets.
    • - They have high, middle and low target market.
  • 39. Bibliography
    • www.nokia.com
    • www.TRAI.com
    • www.reasearchandmarket.com
    • http://inhome.rediff.com/money/2006/mar/23nokia.htm
    • http://www.cellular.co.za/news_2004/Jan/122303-nokia_loses_market_share_to_kore.htm
    • http://www.rediff.com/money/2006/may/02spec.htm
    • Business World