Marketing Management SUCCESS OF NOKIA IN INDIA
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
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
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
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.
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.
Grow Build Transform Nokia’s strategy relies on growing, transforming, and building the Nokia business to ensure its future success. Company Resolution Company Resolution
NOKIA’S APPROACH Nokia has a very human approach to technology: Simple Intuitive Experience to fall in love Reliable
Nokia’s Structure
NOKIA’S RIVALS
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
3,161 7,621 10,827 15,806 Nokia India’s Turnover
Nokia Staff Strength in India 167 2002 2003 2004 2005 2006 2007 182 588 1,605 6,249 9,073
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
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
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.
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
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.
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
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
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
Brand  Equity Quality is at the heart of Nokia’s brand promise.   Improved Perceptions  Of Product Performance Brand Extensions Greater Loyalty
REAPS MODEL ASPIRATIONAL EMOTIONAL RATIONAL PHYSICAL SPIRITUAL
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
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
Nokia’s Products Communicator  9300 Nokia N series Nokia E series Nokia - 1100 Nokia 5100 Nokia - 3200
Huge style icon Safety product  Huge productivity vehicle A driver of a lot of economic activity Entertainment purpose Reasons why  Indian market Is different
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
Expanding Market Expanding Market  Penetration – led  Replacement – led
Nokia’s Target Market Target Market High   Middle  Low  Nokia’s target depends on their type of products
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
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
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.
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
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 .
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 .
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
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.
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

Nokia

  • 1.
  • 2.
    Agenda 1 23 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 GrowingMarket 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 23 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 THECOMPANY 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 TransformNokia’s strategy relies on growing, transforming, and building the Nokia business to ensure its future success. Company Resolution Company Resolution
  • 8.
    NOKIA’S APPROACH Nokiahas a very human approach to technology: Simple Intuitive Experience to fall in love Reliable
  • 9.
  • 10.
  • 11.
    Nokia’s Strategies Focuson 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 10,82715,806 Nokia India’s Turnover
  • 13.
    Nokia Staff Strengthin India 167 2002 2003 2004 2005 2006 2007 182 588 1,605 6,249 9,073
  • 14.
    Nokia’s Market ShareGSM 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 23 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 ofFocus 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 23 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 Distribution95000 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 ManufacturingThe 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 23 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 BrandBrand 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 EquityQuality is at the heart of Nokia’s brand promise. Improved Perceptions Of Product Performance Brand Extensions Greater Loyalty
  • 23.
    REAPS MODEL ASPIRATIONALEMOTIONAL RATIONAL PHYSICAL SPIRITUAL
  • 24.
    Agenda 1 23 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 IndiaNokia 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 iconSafety product Huge productivity vehicle A driver of a lot of economic activity Entertainment purpose Reasons why Indian market Is different
  • 28.
    Agenda 1 23 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 ExpandingMarket Penetration – led Replacement – led
  • 30.
    Nokia’s Target MarketTarget 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 23 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 Itscontinuous 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 23 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 – SiemensJoint 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 provideequipment 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 23 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.comwww.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