A PROJECT REPORT ON NOKIA

CONTENTS

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 EXECUTIVE SUMMARY
 INTRODUCTION
 HISTORY
 ANALYSIS
 4 P’S CONCEPT
 PEST ANALYSIS
 STP ANALYSIS
 LOOPHOLES
 RECOMMENDATION
 CONCLUSION

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 EXECUTIVE SUMMARY

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

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 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

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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 Wickström founds Finnish Rubber Works, which will later become
Nokia's rubber business
 1912: Finnish Cable Works founded:-
Eduard Polón 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.

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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.

1982: 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.

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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.
1997: 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.

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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.
2005: 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.

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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.

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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 example, 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.

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 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 strategic 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
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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

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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.

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 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

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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.

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 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

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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.
 

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 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

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CONCLUSION

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