NOKIA 6630A Product Development & Launch Case Presented by:- Shantanu Bera Mrityunjay Das Sadhana Devi Atindra kundu
Nokia in Brief • Nokias roots go back to 1865, when the Nokia wood-pulp mill was founded. In 1967, upon the merger of three separate companies. • Mobile revolution 1992-1999 • 1992 Jorma Ollila becomes CEO of Nokia (access to international finance markets) • 1994: World’s first satellite call made using a Nokia GSM handset • 1998 Nokia becomes the leader in mobile phones
Competitive Strategy Increase distribution channel Adjust preferences for specific market Aggressive Pricing 1) for middle income group Penetrating pricingstrategy 2) For upper income group Skimming Pricingstrategy. Promotion Strategy
Cont: Technological differences between the competitors are minimal so they all compete mainly on price and specially on design innovation. So all of them adopted price cut strategy and renewal throughout the product portfolio. To combat competition Nokia implemented world wide low price strategy for most of his product portfolio. In 2003 Nokia introduce 40 new Models on all product portfolio to gain leadership
Competitive Strategy cont: Changed its structure from 3 business groups: Mobile phones, Networks and Enterprise solution to 4 business groups so as the Mobile phones was divided into Mobile phones and Multimedia. Constant innovation Separate department for Mobile phones and Multi-media Using advanced features and applications that its rivals does not have. First to introduce Imaging, games, Entertainment, Media as Mobile features
Nokia uses a pricing strategy that best suits the product. Market Penetration- Entry level mobile like Nokia 1100. Market Skimming- Premium series like Nokia 6630(3G) Hence, The Strategy which was used for N-Series & E-Series, 3G series was Market Skimming. Most user friendly mobiles phones compared to its competitors. Huge investments in promotions
Current and Future threats Threats from China mobile phones which are giving many features in a single phone China mobile made copy of Nokia Orange, Vodafone and 02 and many others operators are globally selling their run brands of phone. High imports Charges.
Positioning Yes Nokia was clear in their positioning strategy Entry Level( Rs 2500-6000): Nokia targeted low income people and first time mobile buyers in the series. Classic series 40 and 60 (Rs 7000-17000): Nokia targeted decent people in this series. These sets includes are 6300, 6233, 6120 etc. N-Gage Series (Rs 8000-16000):Nokia Targeted game includes like play station, PSP, Xbox etc.
Xpress music (Rs 13000-35000): In this series music lovers are targeted sets are 5220, 5310,9800 etc. N-Series, E-series, 3G: New generation people and premium seekers sets like 6630, N70, N73, N95, E51, E66.
Product life cycle of NOKIA Maturity Nokia Symbian & N- Series, 3G Decline Nokia 30 & 40 Series Growth Sales curve Nokia E- series, Introduction The Concept Phones Time
BCG Matrix of NOKIA N-Series, 3G Premium Series Question Stars Mark Cash Dogs Cows Entry N-Gage Level
New product Development Market share and Sales were declining, this emphasizes on NPD strategy The stiff competition is given by especially Samsung, LG, sony. Other players are providing better mobile phones that too at cheaper rate and People who are price sensitive switch over to cheaper mobiles, since switching cost is low. Bargaining power of the buyer is high, so constant innovation and product development is necessary. Product Life cycle shows decline in nokia, so for product extension New Product development is required.
Product Life Cycles:mobilephonesDevelopment Typical life cycle
Like Nokia developed a totally New product, a 3g set Nokia 6630. An innovative 3g set with always-connected Internet,mobile broadband access to multimedia contents, living video streaming and video conferencing. Nokia 6630 is the only 3G phone introduced to date that is designed to work on 3G, EDGE and 2G networks around the world. view important documents in formats like Microsoft Word and PowerPoint while being away from the office. considered an effective substitute for a normal mobile phone, a PDA, a digital camera, and more. Introducing phones with flash light for rural india.
Future suggestions Nokia is doing its business at its best but due to its recent downfall in its brand image has coaused Nokia to loose its market share. Nokia should focus more and more on Promotion and regaining its image back. Constant innovation required regarding:1. Design2. Price3. Service offering