This project report analyses the marketing mix, PEST analysis and STP analysis of Nokia. Nokia has adopted excellent techniques to influence a consumer, the prices of their phones are reasonable. Almost every shop dealing in mobiles sells Nokia phones apart from their Nokia Care and Nokia priority outlets. Their products are also well promoted.
The Segmentation, Targeting and Positioning of all their products are discussed in a detailed manner. The success of the company lies in the fact that NOKIA: AN INTRODUCTION Everyone has a need to communicate and share. Nokia helps people to fulfill this need and they help people feel close to what matters to them. They focus on providing consumers with very human technology – technology that is intuitive, a joy to use, and beautiful HISTORY OF NOKIA:- NOKIA’S FIRST CENTURY: 1865-1967 The first Nokia century began with Fredrik Idestam’s paper mill on the banks of the Nokianvirta river.
Between 1865 and 1967, the company would become a major industrial force; but it took a merger with a cable company and a rubber firm to set the new Nokia Corporation on the path to electronics. * 1865: The birth of Nokia:- Fredrik Idestam establishes a paper mill at the Tammerkoski Rapids in south western Finland, where the Nokia story begins. * 1898: Finnish Rubber Works founded:- Arvid Wickstrom founds Finnish Rubber Works, which will later become Nokia’s rubber business * 1912: Finnish Cable Works founded:- Eduard Polon starts Finnish Cable Works, the foundation of Nokia’s cable and electronics businesses. 1937: Verner Weckman, industry heavyweight:- Former Olympic wrestler Verner Weckman becomes President of Finnish Cable Works. * 1960: First electronics department:- Cable Works establishes its first electronics department, selling and operating computers. * 1962: First in-house electrical device:- The Cable Works electronics department produces its first in-house electrical device – a pulse analyzer for nuclear power plants. * 1967: The merger:- Nokia Ab, Finnish Rubber Works and Finnish Cable works formally merge to create Nokia Corporation.
THE MOVE TO MOBILE: 1968-1991 The newly formed Nokia Corporation was ideally positioned for a pioneering role in the early evolution of mobile communications. As European telecommunications markets were deregulated and mobile networks became global, Nokia led the way with some iconic products… 1979: Mobira Oy, early phone maker Radio telephone company Mobira Oy begins life as a joint venture between Nokia and leading Finnish television maker Salora. 1981: The mobile era begins Nordic Mobile Telephone (NMT), the first international mobile phone network, is built. 982: Nokia makes its first digital telephone switch The Nokia DX200, the company’s first digital telephone switch, goes into operation. 1984: Mobira Talkman launched Nokia launches the Mobira Talkman portable phone. 1987: Mobira Cityman – birth of a classic Nokia launches the Mobira Cityman, the first handheld NMT phone. 1991: GSM – a new mobile standard opens up Nokia equipment is used to make the world’s first GSM call. MOBILE REVOLUTION: 1992-1999 In 1992, Nokia decided to focus on its telecommunications business. This was probably the most important strategic decision in its history.
As adoption of the GSM standard grew, new CEO Jorma Ollila put Nokia at the head of the mobile telephone industry’s global boom – and made it the world leader before the end of the decade… 1992: Jorma Ollila becomes President and CEO:- Jorma Ollila becomes President and CEO of Nokia, focusing the company on telecommunications. 1992: Nokia’s first GSM handset:- Nokia launches its first GSM handset, the Nokia 1011. 1994: Nokia Tune is launched:- Nokia launches the 2100, the first phone to feature the Nokia Tune. 1994: World’s first satellite call:- The world’s first satellite call is made, using a Nokia GSM handset. 997: Snake – a classic mobile game:- The Nokia 6110 is the first phone to feature Nokia’s Snake game. 1998: Nokia leads the world:- Nokia becomes the world leader in mobile phones. 1999: The Internet goes mobile:- Nokia launches the world’s first WAP handset, the Nokia 7110. NOKIA NOW: 2000-TODAY:- Nokia’s story continues with 3G, mobile multiplayer gaming, multimedia devices and a look to the future… 2002: First 3G phone:- Nokia launches its first 3G phone, the Nokia 6650. 2003: Nokia launches the N-Gage:- Mobile gaming goes multiplayer with the N-Gage. 005: The Nokia Nseries is born:- Nokia introduces the next generation of multimedia devices, the Nokia Nseries. 2005: The billionth Nokia phone is sold:- Nokia sells its billionth phone – a Nokia 1100 – in Nigeria. Global mobile phone subscriptions pass 2 billion. 2006: A new President and CEO:- Olli-Pekka Kallasvuo becomes Nokia’s President and CEO; Jorma Ollila becomes Chairman of Nokia’s board. Nokia and Siemens announce plans for Nokia Siemens Networks. The birth of Nokia Eseries. The ultimate handheld communicator mobiles (Enterprise series) are launched. 2007: Nokia recognized as 5th most valued brand in the world.
Nokia Siemens Networks commences operations. Nokia launches Ovi, its new internet services brand. 2008: Nokia’s three mobile device business groups and the supporting horizontal groups are replaced by an integrated business segment, Devices ; Services. THE 4P’S OF THE MARKETING MIX: PRODUCT:- The product is the centre of the marketing mix and the other three P’s are based around it. Consumers purchase goods and services for a variety of individual reasons and a company must be aware of all of these when selling a product (that is why they conduct market research).
Nokia does exactly the same and comes up with innovative phones almost every six months. The new phones that Nokia launches have some new feature or price difference, thus appealing to the consumer. Sometimes, Nokia launches special and limited editions of its mobile phones, on special occasions such as the Olympics. In short they offer phones of great variety with various designs and high quality. Price:- 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 xample, competitor based, penetration or skimming. The three main factors affecting the amount charged for a product or service, are; the cost of production, customer demand and competition. Since its entry into Indian mobile market in 1995, it focused on manufacturing of mobile handsets based on GSM technology. Nokia built a strong brand image with focused marketing and distribution network. It started focusing on the low-cost mobile phone segment for rural markets in India, but, faced stiff competition from Sony Ericsson, Samsung, and Motorola who also started offering low-cost handsets.
Nokia has come up with the perfect prices for each and every consumer segment in the market. A lower middle-class person can go for a Nokia 1200 costing around Rs. 1200 while an executive can opt for N-96 costing around Rs. 33,000. 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, Nokia mobile phones are very easy to access nowadays, they are sold in supermarkets, Nokia Priority, Nokia Care and specialized outlets (eg. The Mobile Store). 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”. The advertisements that Nokia comes up with are very successful in targeting the customers in a consumer market. The advertisements are made in such a way that it appeals to the psychology of the consumer. They also have various sale promotion schemes like offering discounts on special occasions and giving free gifts along with a purchase of a mobile phone.
PEST ANALYSIS In the case of Nokia, it can be classified as international organization. It is basic for global brand, which is required to focus on macro environmental factors, such as Nokia. Macro environmental factors comprise Political, Economics, Society, and Technology, viz, PEST Analysis. It is necessary force that Nokia has to concern and know what is happening in the other countries at the moment. Because there are different culture and different external factors between different countries, Nokia has to adjust its trategic plan in order to develop international market. Political:- It is important of a company to acquire resources from government, such as economic policy, and science and technology policy. The success of Nokia has obtaine the resources from Finnish policies which assist Nokia to advance its products. The Finnish policies are the most important factors of Nokia. To operate efficiently, a modern knowledge- and technology-based economy that is highly specialized, internationalized and undergoing rapid structural change requires active support from the public sector.
In its widest sense industrial policy and science and technology (S&T) policy comprise all those measures by which the public sector shapes the operating environment for business and thus fosters public welfare. Both policies used by Finnish government and Parliament are crucial for the development both of the Finnish Economy and of national information society. Finnish government best facilitate the efficient functioning of the economy by directing its resources to the reduction of market failures. The state must also pursue an industrial and economic policy that provides a stable macroeconomic environment for enterprises.
General macroeconomic stability, low interest rates, stable currency conditions and the international competitiveness of the tax system form the foundation for the growth of business an improvement in employment. As the result of this, not only Finnish Government but also international companies, such as Nokia, have play very important roles to develop their information society and national technology strength. Economic:- According to the fact that Russian Federation was collapsed in early 1990s and it assaulted with Finnish economics.
Nokia also face with the problem, and changed its functions from single market and overall products to global market and focusing mobile phone market. With incomes rising, people have more disposable income, which enables consumers to be more selective with their choice of mobile phone, looking to other factors rather than fulfilling the most basic of user (text, messaging and phone calls) Nokia being a multinational company operates in many countries. They have to abide by the economic policies in whichever country they are operating. Society and Technology:-
In the 1980s, people’s trend to microcomputers and Nokia tried to match the tendency to produce its main products, such as computers, monitors and TV sets. According to the changes in 1990s, Nokia also changes its functions to mobile phone market. Nowadays, the global market trends to connect PC and mobile phone, even though to combine these two products together. On the other hand, one important future challenge of Nokia is to establish its policy to follow up the environmental policy and science and technology policy of the Finnish Government.
Sustainable development and environmental protection have various effects on the operation of the innovation system. Innovation also creates new opportunities for promoting sustainable development. The markets for environmental products are expected to grow rapidly in the near future. The Finnish government offers goods facilities for taking this opportunity. National and European reforms arising from environmental objectives influence the perquisites from innovation. Nokia must be used to find solution which help to implement environmental objectives as well as the objectives of innovation policy in a balanced way.
To sum up, the main reason of Nokia has success to advance its products are the policies and technology development of Finnish Government. It cannot be separate between Nokia’s successful of advance its product and Finnish Government’s policies, both of Nokia and Finnish Government are the winner in the international market. Nokia has obtained the success of mobile phone market, and Finnish Government has established its position of technology development. At this moment Nokia is the best selling mobile phone company owing to its constant upgradation in the technology of its phones.
STP ANALYSIS SEGMENTATION AND TARGETING:- * Entry level: (Rs 1,200-3,000):- Nokia targeted low income people and first time mobile buyers in this series. Sets include are 1200, 1208, 1100, 1110, 1112 etc * Classic Series: (Rs 7,000-17,000):- Nokia targeted decent people in this series. Sets include in this series are 6300,6233,6120,3120 etc * N gage Series: (Rs 8,000-16,000):- Nokia targeted game lovers in this series . These sets include game like play station, PSP and Xbox. N- Series: (Rs 7000-35,000):- Nokia targeted the young generation who wanted to possess mobiles with the latest technologies such as a 5 MP camera, a decent music player, GPRS, etc. This series is also called multimedia computer. Named as on step ahead multimedia. Sets include N72, N81, N95, N96, N97, etc * E-Series: (Rs 10,000-60,000):- These mobiles were launched for people who needed mobile computing on the go especially business people. These phones are enabled with word, spreadsheet and presentation softwares. They also are equipped with GPRS/ EDGE technologies thus functioning as a palmtop.
Sets include E90, E75, E61, E62, etc * Xpress music Series: (Rs 6,000-20,000):- Nokia launched this series basically for the people who loved music. Good dolby digital earphones and long battery life are the features of these mobile phones. Sets include 5800, 5610, 5320, 5310, 5220, etc * Premium Series:(Rs 80,000-1,500,000):-In this series Nokia targeted people who show visual status. Sets include in this series are Sephiraarte, 8800Gold, 8800arts etc POSITIONING:- Positioning of a product refers to creating an image about a particular product.
Nokia has been very successful in this strategy. Nokia has created a distinct position in customer mind by:- * Nokia logo: * Slogan: * StandardRingtone * Standard message tone. * Long battery backup. * User friendly mobiles. * The specific message that is conveyed to the customers in every advertisement is: “Nokia enable you to get more out of life”. These specific aspects have been embedded into the mindset of the consumer in such a way that every time they saw the logo or heard the ringtone they associate it with a Nokia product.
Hence Nokia has been very successful in positioning it products in the market. LOOPHOLES No doubt that the products from the Finnish company, Nokia, are some of the very best in the world, but the company still hasn’t found a profitable way to market its goods. The very reason that other mobile phone companies are fast eating up Nokia’s market share is their superior (yet simple) marketing practices. Motorola and Samsung must now be in the FUW (frequently used words) list in Nokia’s board meetings. These companies have made Nokia pay dearly for its rudimentary approach in marketing its phones.
The aggressive marketing practices followed by Motorola have hit Nokia very hard and it is losing very crucial global market share every month to its American competitor. Nokia, quite alarmed by the dropping sales of its phones, is now putting all its weight behind the N-Series range. The N-Series is packed with multimedia features and Nokia believes that these phones might woo the costumers back to the big daddy of the mobile phone world. But Espoo, we have a problem!! (Nokia is headquartered at Espoo, Finland).
While Motorola (quite intelligently) gives a dashy-flashy name to every phone it brings into the market, Nokia tends to do the exact opposite. Nokia from the very start has relied on numbers rather than names. This strategy worked very well in the past, but only because there wasn’t much competition back then. But times have changed. Every month the market sees at least a dozen new handsets from an equal number of manufacturers. Consumers now have more than they can choose. Consumers are more attracted by names because they can thus easily relate to the features of the phone.
This is evident from the success of the MotoRazr, MotoSlvr, MotoRizr and MotoKrzr. These phones are not packed with heavy multimedia features like the N-Series; still they are selling like hot cakes. Just by reading the name of the handset, one gets a broad idea what the phone looks like or what its features are. Nokia advertises more than Motorola. Still its market share is dropping. Motorola does not need to spend much money for the promotion of its products and it doesn’t have to worry about the marketing of these phones; it just simplifies its job by naming its products right.
Take the example of Apple. It did not have to do much to promote its iPhone. RECOMMENDATIONS: It is high time that Nokia starts applying some sense to its marketing strategies. It doesn’t have to do anything great, other than just naming its phones. A few months ago, a highly placed Nokia official told Reuters that his company would soon go the Motorola way and start using names for its new phones. It is in Nokia’s best interest that it takes to this path as early as possible, otherwise the once market leader might see its market share plummeting to even lower depths CONCLUSION