Executive Summary of Nokia We can trace the journeyof

Executive Summary of Nokia
We can trace the journeyof development of Nokia from the year1865 to
2013,which includes construction of a wood factory by Fredric Idesta,
introduction of the first radio phone,the first GSM call by a Nokia handset,
launch of the first digital handset, launch of the addictive game “Snake”,
Nokia’s losing control in the smartphone market, it’s collaboration with
Microsoft and the final takeover of the company by Microsoft.
Nokia’s newly released high end phones, it’s differentiating itself from the
crowd and the highly competitive mobile communication industry, it’s primary
emphasis was on technology, fun spirit and ease of use are clearly evident of the
positioning of the brand on people’s mind.Nokia devices are context enriched
and the brand also offers valued consumer solution which leads to a good
consumer relationship.
Nokia cut down its advertising cost by 25% on the other hand its sales also
declined by 27.9%. Its share value has also gone down by 80%. But apart from
all these negative factors we can’t deny the fact that more than 60% of the
phones on the planet are Nokia branded. It offers affordable mobile phones with
web and other applications. Nokia Lumia is playing the most vital role for the
repositioning of the brand on people’s mind.
The market segmentation of the brand can be divided into two parts:
Demographic segment and Psychographic segment. The demographic segment
consists of – high income group, medium income group and low income group
while on the other hand the psychographic segment consists of- “connects”,
“achieves” and “explore” customers.
After going through the segmentation of the brand now it’s time to have a look
on the competitors of Nokia in the market. Brands like Apple, Sony, Blackberry
and HTC are the high end competitors of Nokia while Micromax, Spice, LG
and Dell are the low end competitors to the brand.
Nokia adopted various strategies to make its products available to the
customers. Various strategies adopted were Advertising Strategy, Sales
Promotion Strategy and Distribution Strategy.
Nokia’s focus on a single technology instead of each individual handset is
noteworthy, as far as its advertising strategy is concerned. The advertisement of
Nokia 1100 targeted the entry level phone users. Nokia 3110 Classic and Nokia
5700 advertisements were made to target the young generation, while Nokia
6300 and 5310 were seen in close relation to the Indian culture.
As far as sales promotion strategy is concerned, Nokia plays very smarton the
field. It reduced the price of the Nokia Black Berry phone in the Chinese New
Year, it donates 4.5% of the sales to charities, thebrand uses rebates, coupons
and loyalty programs as common tools to promote itself. Apart from all these
the launch of the Windows phone is an added advantage to promote the brand.
Nokia as its distribution strategy, opened concept stores (Nokia Priority) as one
stop solution. They also believed in selling online rather than opening retail
stores due to recession hardships. They also opened various outlets so that their
sales get increased and they could bring in more profits. They also adopted the
multi-brand concept so that more people buy Nokia phones. Individual stores
are also there selling Nokia phones. For this strategy they took various
distribution channels as whole seller, retailer, own stores and online stores.
Nokia is one of the leading mobile phone brands, which has a decent range of
competitors starting from high end competitors to low end. They gave stress on
their quality improvement, the problem of battery heating was solved before any
competing brand could have taken an undue advantage of it. They opened
design studios in Bangalore to design phones as per their customer. They had an
excellent after sale service as it is rightly said “Good services get you business,
and bad ones loses it”.
Analysis of Hypotheses
 Nokia has better features than other brands.
Nokia Lumia is a youth centric phone because it has only been launched
catering to the needs of the youth. Youth are generally more gadget freak.
They tend to look at the looks, design etc. We will try to infer whether
Nokia is a youth centric phone.
 People will buy Nokia more if it has android platform.
The operating system of Nokia is mostly Symbian and Windows. While
other mobile phone brands are Android, Ios, etc. The demand of Nokia in
the market is way high, so if in the future it launches any android phone
then the consumers who were using some other brands will switch to
Nokia. If Nokia changes its operating system to Android then we can
infer that whether it will be feasible or not.
 Nokia Lumia is a youth-centric phone.
Nokia has better features than any other brands like durability, longevity,
larger battery backup, group messaging etc. which is more than as
compared to other brands mobile phone .