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Nokia Marketing Strategies
Nokia, founded in 1965, initially thrived in telecommunications but lost market share after selling its mobile business to Microsoft in 2011, hindered by lack of innovation and high operational costs. The marketing strategy targeted a broad age range but relied heavily on traditional media, leading to untapped segments and ineffective outreach. Despite having a vast network and a diverse product range, Nokia struggled to adapt to a saturated smartphone market, resulting in ongoing challenges post-acquisition.
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Nokia Marketing Strategies
- 1. and how it(lost) market.
- 2. HISTORY Founded in1965 as a Finnish Multinational Communication In 1990s, the company divested portfolio and focused on telecommunication. Sold its mobile business to Microsoft in 2011.
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- 5. Target Market Bothmen and women. Aged 20-40 years. Caters to both teenagers and business class
- 6. Brand Positioning Points ofParity Points of Difference • Good voice clarity • Camera, GPRS • FM & Music Player • Robust Built • Good battery life • Ease of use.
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- 9. PRODUCT Variety Quality Design Durability Features
- 10. PRICE A wideprice range of phones Ranges from Rs. 800- Rs. 50,000 Low end phone- Market penetration High end phone- Market skimming.
- 11. PLACES Largest networkof over 1,30,000 stores Sales through Multi-branded stores(the mobile store)
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- 17. Nokia wascompeting in a saturated market. There was lack of innovation reflected in its products. The cost of running company outlets and employer salaries were very high. Even while sales dropped, the company had huge untargeted marketing budget.
- 19. Conclusion: Nokia lostthe smartphone battle The target audience was a wide fraction of the market. Nokia relied more on conventional marketing practices Marketing budget for print media was very large. Even after the takeover by Microsoft, it is struggling in the market.
- 20. DISCLAIMER Created by Mr.Krishna Khandelwal, VNIT Nagpur under an internship under Prof. Sameer Mathur, IIM Lucknow.
Editor's Notes
- #2 Hello everyone, today we are going to discuss about the marketing strategy of Nokia. Yes, Nokia the mobile company that we saw rise and fall, and eventually getting sold off. We have all had a Nokia phone once, so I hope this will be an interesting presentation for all of us.
- #3 The predecessors of the modern Nokia were the Nokia Company (Nokia Ab), Finnish Rubber Works Ltd (Suomen Gummitehdas Oy) and Finnish Cable Works Ltd (Suomen Kaapelitehdas Oy).[1] The company's name came from the Nokia town Later in 1990s, it shifted its focus on mobile phones and Was the largest mobile vendor of mobile phone The mobile phone business was bought by Microsoft in 2011 for $ 7.17 billion.
- #4 The company currently focuses on Information Technology. It has subdivisions like Nokia Ntworks is a data Networking and a telecommunications equipment company Nokia Technologies-develops and licenses technology and the Nokia brand, Alcatel Lucent- Acquired by Nokia The company focused on fixed, mobile and converged networking hardware, IP technologies, software and services, with operations in more than 130 countries Nokia Bell Labs-Nokia Bell Labs was acquired by Nokia recenty in 2016. Rumours are that Nokia will soon come back into the mobile phone business.
- #5 In the following slides we will look at the Marketing strategies of Nokia. Their target markets, their way of approaching, the benefits they offer to their customers and how they compete in the market.
- #6 Nokia had a very wide target market, bringing out dedicated phones for a variety of segments. It built phones for men and women, for all ages and uses. As we can see in the slide, there arethree different classes of phones demonstrated.A business-class phone, a dedicated music phone and a gaming phone, which shows the diversity of its products.
- #7 Competitive Frame of Refernce: Samsung Micromax Apple Lg Blackberry Brand Mantra: Connecting People.
- #8 Free access to Ovi Store, with over 100,000 applications. Ovi store 24 hour Toll Free support. Well spread out service center network Access to NOKIA imaging, Navigation maps.
- #9 In the upcoming slides we will be discussing about the Marketing Mix of Nikia, The four P’s namely Product, Price, Place, Promotion.
- #10 Variety: Nokia manufactures mobile phones in a wide range of features and price range. Quality: Nokia mobiles are of utmost quality. Design: They are trendy, and kept up with the design. Durability: This is one of the distinctive feature of Nokia phones. Features: The high end phones are equipped with features like heart rate sensor, and low end phones with torch.
- #12 Nokia stored spread all over the world New concept of Nokia Music store
- #13 TV campaigns and advertisements Brand ambassadors like Shah-Rukh Khan and Priyanka Chopra Fests like NOKIA India Fest 2011- PAN Indiafest is the first of its kind pan India college festival initiated by a youth brand. The initiative was undertaken to create a national level platform for students from all fields and turfs to congregate under one roof. An opportunity for students to showcase their talent in the fields of art, literature, music, sports, dance, theatre and more
- #15 Nokia has always had a very huge traditional, print media budget. They always concentrated on mass media advertisements, devoting asmuch as 65% of their total marketing budget to mass media. Large Bill-Boards, tv spots, news papers were heavily advertised with Nokia phones.
- #16 Whenever a new phone was launched, seeing a full page advertisement in the leading papers and magazine was no surprise. Nokia was very specific about its individual phone marketing, dedicating its advertisements to a single, or a small segment of phones to properly advertise its features and that also helped consumers to retain.
- #17 Nokia was the biggest mobile phone vendor, it had the largest spread out retail outlet stores, had a variety of phones in its product line, and itsphones were not as bad compared to its competitiors. Still the company failedto keep up with the market and booked losses. What was it that went wrong for the company?
- #18 Phones are often considered the most prestigious, and if you have a Mac, there are several reasons for choosing the Apple-family member. Samsung’s Android phones are often seen as the most versatile, and they keep up the idea of being more user friendly than iPhones. But Nokia’s phones aren’t connected to anything special. They’ve now tried to create an idea of superior phone cameras. But that’s too little too late. Nokia was competing in a saturated market. There was lack of innovation reflected in its products The cost of running so many company outlets was very high Employee salaries were very high Even in drop off sales, the company had huge marketing budget.