Market analysis of the mobile phone manufacturer Nokia

Nokia derived its name from the river in southern Finland known as the Nokianvirta River. The immense success of the paper factory made Mr Idestam known as the name of male parent of Finland ‘s paper industry.

Nokia Corporation was created with the amalgamation of three companies: Nokia Ab, Finnish Cable Works and Finnish Rubber Works which were jointly owned since 1922, officially merged together in 1967.

First measure towards telecommunication industry:

During 1970s, Nokia made promotions towards telecommunications industry by developing a merchandise Nokia DX200, which was a digital switch used for telephone exchanges. In 1982, this device became the universe ‘s first microprocessor controlled telephone exchange. During the decennary of 1970-80, Nokia developed communicating devices for the Finnish Defence Forces.

In 1979, amalgamation of Nokia and Salora led to the constitution of Mobira Oy. In 1982, first Car Telephone was introduced by Mobira. Salora Oy was bought by Nokia in 1984 and the telecom subdivisions name was changed to Nokia-Mobira Oy.The same twelvemonth, Mobira launched universe ‘s

foremost movable phone. In 1987 ; Nokia launched one of the universe ‘s first handheld phone, the Mobira Cityman 900.

In 1992, Nokia took one of the most of import strategic determinations in the history concentrating chiefly on telecom concern and travel out of other concerns. During this decennary, gum elastic, overseas telegram and consumer electronics divisions were bit by bit sold as the company moved to concentrate on communications. Now Nokia ‘s Core Business was to fabricate nomadic phones and telecommunications systems.

NOKIA IN 2010 – 40 % Net income Fall Reported

Net income of Nokia Corporation has fallen down by 40 % in the 2nd one-fourth of 2010 as compared to the old quarter.Nokia besides stated that they expected such autumn in the net incomes since the tech giants like Apple and Google have besides entered in smart phone market. Despite

of 1 % addition in the net gross revenues, net income borders and service division has dropped since Nokia is cut downing down the monetary values if the French telephones in order to increase gross revenues. This has besides contributed in the autumn of mean monetary value of Nokia French telephones by 21 % as compared to 2009.

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*http: //www.insideireland.ie/index.cfm/section/news/ext/nokia001/category/1084

Beginning: hypertext transfer protocol: //www.sramanamitra.com/2010/05/05/nokias-market-share-declines/

Failure of merchandises taking to worsen in market portion:

The above mentioned statistics shows that Nokia has reported diminution in the net income border. To reply the inquiry that what has led to the diminution of the market portion can be Nokia ‘s frontline devices have failed to affect the consumers and hence have led to the diminution in gross revenues intern ensuing in the diminution of the net income margins.Nokia N97 is the perfect illustration of this.

Nokia has admitted that their market portion has significantly declined and this is something which has come to them as as SHOCK. Nokia N97 has been a failure has been announced by one of the Nokia functionaries Anssi Vanjoki who is Executive VP of markets. ” Nokia N97 has been a enormous letdown in footings of experience quality for the consumers ” added Mr Vanjoki in an interview.

Beginning: hypertext transfer protocol: //www.gsmdome.com/nokia/nokia-admits-that-the-n97-is-a-failure-promises-not-to-do-it-again_13483

SWOT ANALYSIS- NOKIA N97

Strengths:

Global Image & A ; High Quality Products: Nokia is a planetary company which non merely sells its merchandises in 130 states but besides has set up research and development squads in 15 states to bring forth merchandises in different linguistic communications.

Unprecedented Features: Nokia N97 is considered to be the most advanced nomadic computing machine of this age and doubtless one of the most advanced phones of Nokia Portfolio.Nokia N 97 possesses several “ number ones ” It ‘s the first QWERTY Mobile phone with a slide out in N Series. Its besides the first Nokia device with built-in-memory of 32GB. It ‘s besides the first touch screen device in N line series.

Failings:

Difficult Applications: From the first position, it looks like a complex device as compared with other Nokia devices which are user friendly. Peoples tend to pull comparings with Apple I-Phone which is a user friendly device. This hits Nokia N97 severely.

Undifferentiated Name: N series was launched in 2005 and N97 belongs to the same line of series. Peoples fail to place it as a following coevals nomadic device due to uniform name as it is one of the devices of N line series like N73, N73 etc.People tend to make impressions as its merely another phone in N series with some added characteristics which is bad for N97. Customers have failed to organize a connexion with the device.

High Monetary value: This device is non in line with the income degrees which exist in India. The current monetary value of the device 30,000 INR is comparatively high as compared with other devices available by the rivals like Samsung. This monetary value does non provide to the in-between category section of the society.

Opportunities:

Turning Economy: India is considered to be one of the fastest turning economic systems in the universe and hence resulting in the growing in the income degrees of the people. If Nokia continues to add characteristics with suited pricing, it can beef up its clasp on the market portion. Although with this pricing besides Nokia marks affluent clients who remain unaffected by the economic downswing.

Menaces:

Low Buying Power: Due to worldwide economic crisis, purchasing power of consumers has been reduced. This has badly affected the gross revenues of such high terminal phones. Consumers do non hold high disbursement power so they are more inclined for the more economical options. Increase in the competition has besides led to the cost effectual options available in the market as the rivals are fabricating mobile phones which suit the buying power.

Cut Throat Competition: Rivals like Apple are already good known for its smart phones like Apple- I phone which has brought a revolution in the smart phone industry and has besides set a bench-mark for the same. Not merely Apple, rival like

Samsung has besides entered in this section of the industry and fabrication nomadic phones at extremely competitory monetary value which is adding on to the competition.

Michael Porter ‘s Five Forces Analysis ;

Menace of possible entrants: Though Nokia has been a universe ‘s leader in Mobile and telecommunications sector for old ages now but the public presentation and reviews about Nokia N97 has non been up to the mark.Smartphones are one of the most quickly turning sections in nomadic industry. Hence many nomadic makers like arch

rival Apple, Motorola etc are eying on the greater market portion in the Mobile sector through this section. Though Nokia N97 is a characteristic packed phone but at the same clip it has non been impressive when it comes to public presentation and user friendly experience. Arch challengers like Apple have gain the market portion crushing N97 on these evidences.

Dickering power of providers: As Nokia is a vertically integrated company and it does its ain fabrication of assortment of French telephones, so the bargaining power of providers in this instance is non relevant.

Competitive Competition: Today ‘s Smartphone industry is traveling through a stage of Cut Throat Competition where in about all the nomadic phone makers are raring to be the front smugglers in this section. Nokia faces a tough competition from its arch challengers Apple which is considered to hold an upper manus over Nokia when it comes to applications and inventions. Now a twenty-four hours ‘s Apple I-Phone has become the equivalent word to the smart phones and this has contributed in the trade name depletion of Nokia.

Rivals like Samsung, Micromax who does n’t hold that immense portion in the market but they are besides eyeing their chances in the Smartphone section and hence bing Nokia ‘s market portion.

Dickering power of purchasers: Entire universe is traveling through economic recession where the buying power of the consumers has declined. This has besides given an chance to the rivals like Samsung, Micromax, Lava and other Chinese Brands to fabricate nomadic devices which are rather cost effectual and besides sometimes resembles to Nokia phones.

Menace of replacement merchandises: Nokia N97 is a nomadic phone and nomadic phone is a premier agencies of communicating in today ‘s times. I believe there are non adequate replacements of this agency of communicating. Though, people can exchange to other agencies of communications like laptop for video- conferencing but a laptop can non be considered as an replacement.

Objective Setting:

Corporate Degree: To accomplish Nokia ‘s net gross revenues by the terminal of Q4 2010 should increase to EUR 11.5 Billion.

Beginning: hypertext transfer protocol: //www.nokia.com/about-nokia/financials/quarterly-and-annual- information/q2-2010

Business Degree: Reports clearly shows that the market portion of Nokia has dipped from 64 % in ’08-09 to 52 % in ’09-10. The aim of the concern units is to take the graph to 55 % by Q4 of ’10.

Beginning: hypertext transfer protocol: //www.pluggd.in/nokia-market-share-india-297/

Marketing Degree: The aim is to heighten the trade name consciousness amongst the concern section and high networking persons.

Strategy Development:

Ansoff ‘s Matrix has been used to exemplify the growing scheme of Nokia N97:

Nokia Corporation has been in India for more than 15 old ages now. It has a immense merchandise line providing to all the income degrees in India. So Nokia is runing in the bing market along with the bing merchandise line. Though Nokia has been a market leader in tele-communications industry but they are besides sing diminution in their market portion. They have to concentrate on increasing the gross revenues volumes which would besides increase their market Share.

Key points for Market Penetration

Revised monetary value construction: Nokia should see revising monetary values for the French telephones like N97 to concentrate on the other income sections of the society. This would take o less border of net income but in bend would besides ensue in greater market portion.

Aggressive publicity: Though Nokia has launched a radical Mobile phone likes N97, but it has non reached to the multitudes. Ads through print and electronic media like Television Ads, Newspapers bring N97 on the larger phase.

Merchandise profile: There has been a talk in the nomadic industry that Nokia loses its clasp when it comes to expressions of the nomadic phone i.e. sleekness which gives arch challengers like Apple an border over other nomadic phone makers. Weight and size of N97 should be decreased to do it heighten its entreaty.

Exemplifying competitory schemes utilizing Porter ‘s Generic Strategies:

Focus

Differentiation Nokia Cost Leadership

Nokia should underscore in following combination of two schemes of being a cost leader in the market and distinguishing itself from the competitors.Nokia has a immense merchandise portfolio

providing to all sections of the society. Nokia N97 is a alone merchandise but has a moderately high monetary value. If the monetary value is slashed, it would ask for more clients. Unlike Nokia other companies has besides suffered severely from economic crisis. So, I recommend Nokia to cut down monetary values of Nokia N97 to hike gross revenues.

Nokia N97 is besides different from other N series and has some of the characteristics which are “ number ones ” in other Nokia phones and different from other French telephones in N series line. Strong trade name image of Nokia and user friendly property of the French telephones.

I propose that Nokia should add a alone and advanced name to N97 device, which besides makes it stand apart from other Nokia devices yet it is associated with the strong trade name name and image of Nokia. A changed name would enable consumers to place themselves with a new device in Nokia portfolio.

TACTICS to assist schemes: 7 P ‘s

Merchandise: Nokia N97 is doubtless one of the characteristics packed phones in the N series line but its expressions plays a killjoy to the value of the device. Consumers have become rather choosey when it comes to the nomadic device. In the first expression Nokia N97 looks a batch bulky and heavy I recommend working on the design and size of N97 which makes it more voguish & A ; sleek.

Monetary value: Fierce competition in Smartphone industry has given an border to consumers to hold pick when it comes to mobile phone devices. This has besides been boosted by the

current economic crisis. Nokia has ever been considered of supplying cost effectual devices. I propose to cut down the current monetary values of Nokia N97, which would give the device a competitory border over the challengers like Apple, Samsung etc. This may coerce the rivals to cut down their monetary values every bit good but it may non be that easy for them.

Promotion: I propose Nokia to go an official patron of cricket tourneies in India like IPL. As IPL has already been proved as a hit across the universe and has immense TRP evaluations, we can project N97 as the chief merchandises of Nokia during the IPL.

Since, Nokia is already a major patron of KOLKATA KNIGHTRIDERS, one of the squads in IPL, I propose Nokia should inquire this squad Owner Mr Shah Rukh Khan to advance N97 and go the trade name embassador.

Nokia N97 is a device which caters the Enterprise section. Nokia should publicize in the concern magazines like Business Week, CFO Forum etc so that it comes in the eyes of concern executive section. Advertisement via Television can besides play a critical function in aiming the desired section. I propose to publicize majorly on the channels like CNN-IBN, BBC, TIMES NOW which has a high TRP evaluation when it comes to the concern section of the society.

Ad through billboard in the metropolitan metropoliss like Delhi, Mumbai, Kolkata and Chennai with the trade name embassador like SRK utilizing the phone would promote people to acknowledge with him in any possible manner.

India is a land of festivals. I recommend supplying with gift vouchers on every purchase of the N97 device at the occasions of Dussehra and Diwali when consumers

prefer to purchase new merchandises. This could be Scratch cards, Discount vouchers, IPL Merchandisers etc.

Topographic point: Nokia sells its phones majorly through retail merchants like Nokia Priority Dealer. I recommend that Nokia should fall in custodies with one of the major service suppliers in telecom industry like Airtel, Vodafone, Idea etc and we can advance assorted offers in association with these service suppliers.

I besides recommend that Nokia should tie-up with the major call Centres, corporate houses in India in order to promote the use among the mark group of clients. For illustration: A Nokia N97 can be given to the Top Performer in the call Centre in a peculiar procedure.

Peoples: This is one of the most important facets which help in finding the success of any merchandise or service. I recommend that comprehensive preparation programmes should be held. This would enable gross revenues people to hold a better apprehension of the merchandise and would besides assist them showing while selling it to the terminal clients. The same is recommended for Nokia Care which are the service Stationss for Nokia Devices. Sometimes, people who are incognizant of the certain characteristics of the device believe the device to be defective. In this instance, proper preparation to the employees would ensue in addition in the assurance of the client and besides better client service experience.

Physical Evidence: I recommend that Demonstration Stalls to be organized for a unrecorded presentations of the N97 device at the retail merchants and other service suppliers outlet ask foring people to hold a unrecorded user experience.

I besides recommend supplying add on merchandises along with the device like leather screens, wireless earphones. Sometimes these additions besides help in the publicity of the merchandise.

Procedure: In order to do an efficient procedure, Nokia should cut down its cost by outsourcing its fabrication of N97 French telephones from local makers who has an first-class path record. Besides there should be control on quality of the French telephones. Quality control squads should be employed to analyze the French telephones and cut down merchandise defects.

Action: Once selling and tactics have been set, it becomes necessary to turn them into action programs. To accomplish the set marks, 3 activities are performed: a ) allotment of undertakings and duties, B ) programming of selling activities, degree Celsius ) Puting the budget.

I propose to utilize the Percentage Of Gross saless method to put the budget for rejuvenating Nokia N97 from the diminution phase:

Nokia reported Q2 2010 net gross revenues of EUR 10 billion. The entire hard currency militias or hard currency flow of the company is 7 % of the net gross revenues i.e. 70 Million EUR. For the greening In India, I propose that Nokia should put 2 % of this sum. Now we should apportion this amount to rejuvenate Nokia N97 in India 40,000,000 INR

Illustration of Gantt chart:

Through this Gannt Chart, I propose to apportion 40 Million GBP for this undertaking and besides have allocated undertakings to be performed by the different squads to accomplish the marks:

G A N T T C H A R T

Entire Budget 40000000 INR ( 40 Million GBP )

Selling Activities

Month of Action

Team Responsible

A

2011

A

A

A

Joule

F

Meter

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Meter

Joule

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Second

Oxygen

Nitrogen

Calciferol

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Re designing of the device

a?s

a?s

a?s

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A

R & A ; D Team

Product Launch

A

A

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a?s

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A

Gross saless Team

Ad

A

A

A

a?s

a?s

a?s

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a?s

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a?s

a?s

Selling Team

Promotion ( gay season )

A

A

A

A

A

A

A

A

a?s

a?s

a?s

a?s

Gross saless & A ; Marketing Team

Presentation

A

A

A

a?s

a?s

a?s

a?s

A

A

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Gross saless Team

A

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Entire Budget ( in 1000000s )

Control:

Once the selling program is implemented, supervising and control of the action comes in the image. Monitoring makes certain that program is working consequently and Control makes certain that disciplinary action programs every bit early as possible.

Auditing: Nokia is normally known for its user friendly characteristics. During my research about Nokia N97, I have found out that one of the cardinal factors of diminution in the gross revenues of N 97 were its complex and hard to understand applications. I have recommended redesign and applications development of the device. I propose to travel for the user ‘s feedback about the device. Audited accounts from the external beginnings could besides be used for the public presentation sweetening. Audited accounts could besides be helpful in finding the loopholes and can besides be used in make fulling the spreads taking to low profitableness. Audit studies could besides assist in happening out the trade name consciousness.

Critical Contemplation:

Choice of Nokia as a worsening trade name: Merchandises traveling through tough times: Though Nokia is the largest maker of nomadic device in the universe, it is traveling through tough times as Nokia has reported 40 % diminution in the net gross revenues. Though profitableness of the company has increased but some of the major undertakings like Nokia N97 have faced a batch of criticism.I as an person has been utilizing Nokia nomadic devices for many old ages due to its user-friendly interface. Nokia has placed itself in India as a trade name which provides nomadic device of high quality and relatively low monetary values as available in the market. One of the best illustrations is Nokia 1100 which has a market monetary value of 1100 INR which easy suits the buying power of Indian earning categories. The repute of the Nokia as quality merchandise becomes apparent from the fact that sometimes people tend to ain twosome of nomadic devices but they are of the same trade name which is Nokia.

Even I own a Nokia E series theoretical account and I am reasonably satisfied with the device in footings of monetary value, characteristics, operation of the device. I have ever been inspired by the inventions and pricing construction of Nokia devices. At the clip of launch of Nokia N97, I was rather excited about the new add-on to the N series line of Nokia which had quite of few characteristics which were unprecedented in other devices of the trade name. I besides used to draw a bead on to have N97 device. I waited for the reappraisals till the clip I can wait to have one but I was disappointed to come across really negative reappraisals in footings of hard to utilize applications and comparing on the evidences of pricing with other trade names of smart phones available in the market. Soon I found out that Nokia ‘s promotion towards the Smartphone industry was slowed down by the worsening gross revenues of the device. Negative reappraisals about the device has non merely led to worsen in the gross revenues which finally led to worsen in the net income borders of Nokia. Due to these factors, I realised Nokia is non merely fring the market portion but failure of such undertakings has besides led to trade name depletion amongst the users.

Nokia is losing on its market portion is non based on premises but is clearly reflected in the one-year studies of the administration and the top executives of the company have been brave plenty to accept the failure of the trade name and depletion of the trade name image.

“ Nokia N97 has been a failure has been announced by one of the Nokia functionaries Anssi Vanjoki who is Executive VP of markets. “ Nokia N97 has been a enormous letdown in footings of experience quality for the consumers ” added Mr Vanjoki in an interview.

Understanding of Marketing Faculty: Aid in understanding the diminution stage of Nokia

Before inscribing in MBA and analyzing Marketing Management, I had a perceptual experience that selling is all about publicity of the merchandises like direct selling like door to door gross revenues and indirect selling like publicity via electronic mails to hike the gross revenues. But, after analyzing the selling faculty I have a realised that Marketing is a wide construct which involves a batch of planning and execution of the constructs.

Examples of the analysis like SWOT, PESTEL were GREEK to me but during the class work I realised that these analysis are often used in our twenty-four hours to twenty-four hours lives. Traveling through my Marketing Management Module, I came across a theoretical account known as SOSTAC Model which is used in the selling program for a merchandise and which has besides been used in my assignment of the diminution merchandises of Nokia to analyze the grounds and supply solution to get the better of the current state of affairs.

Selling program is ever implemented when a merchandise is to be launched. SOSTAC Model develops a flow of understanding the construction of the selling program. Situation analysis tool which is SWOT Analysis, Porter ‘s five forces helped me in the apprehension of the current state of affairs of the trade name, i.e. Nokia and Porters Five Forces position besides helped me understanding the environment in which Nokia is runing such as telecom industry.

After running the state of affairs analysis, every administration sets certain aims which are to be achieved with in a stipulated clip period. Objective scene is the contemplation of what an administration wants to accomplish in the hereafter. Aims can ne’er be disconnected therefore they are set on certain standards defined as the SMART Criterion in the Marketing Module.

Then comes the preparation of the scheme to accomplish the administration ‘s aims. I came across Competitive and Growth oriented schemes to accomplish the marks. I used the Ansoff Matrix as the growing scheme for Nokia. This matrix is used when a peculiar merchandise of a trade name is in the diminution phase. Nokia is existing in the nomadic industry since a long clip but some of its merchandises are non giving the coveted consequences i.e. N97.

Another constituent of SOSTAC Model is Tactic. As the word suggest it ‘s the techniques which is adopted by the administration to accomplish the schemes. Tacticss normally uses the 7 Ps factor which besides helped me understand the importance of these 7 factors. This helped me understand how each constituent can play a critical function in the growing of the merchandise.

This phase is followed by the Action portion. This is the portion when the program comes to action in actual footings. Till now we formulate a program, at this phase we allocate undertakings by recognizing the activities proposed in the program, so we schedule the activities that will be executed and the clip of executing. I have illustrated this with the aid of GANTT CHART where I have allocated undertakings, allocated needed budget and besides scheduled the months when the undertakings would be performed.

Finally comes the Control portion when we monitor and control the full selling program. Use of the operational schemes like balance mark card, control on gross revenues and scrutinizing.

Individual Appraisal:

This faculty of Marketing Management has helped me understanding the different constructs, schemes and analysis tally in selling of a merchandise. Students were asked to take a worsening trade name in UK or the place state. Nokia N 97 is my merchandise in the assignment. During the class faculty, we besides had treatment over twosome of worsening trade names and the services every bit good like British Airways. The treatment in the talk and seminar category helped me to happen out the possible grounds and structuring my ideas utilizing different theoretical accounts.

During my class work I besides got an chance to develop my IT skills like working on power-point presentations, usage of engineering while fixing the assignment. Although I was working as a Research Associate in a market research administration, I could non develop such accomplishments. Group work has besides enabled me to develop on my accomplishments of working in a squad where people come from different age groups, nationalities, cultural values. Working in the squad has besides helped me to work on my people direction accomplishments by apportioning different undertakings to every person of the group guaranting that every person has an equal part towards the group assignment and besides enabling us to larn from each other.

One of the nucleus parts of this faculty has been Presentations. I as an person was ever scared of public speech production. During the faculty, we were asked to travel through the instance surveies and present in forepart of the category. This helped me develop accomplishments of public speech production and acquire rid of this fright to a certain extent. I was besides portion of the group work for readying of the presentation which besides helped me develop accomplishments of doing power-point presentations.

One of the most dynamic and advanced acquisition facet I have come across while fixing the assignment was uploading a presentation in the You-Tube. At first, this looked like a saddle horse mounting undertaking since as an person I do non possess high IT skills but since all the other MBA pupils were making it for the first clip and we all were sailing in the same boat we all found out ways to acquire it done. This is besides one of the advanced facets of larning which I came across.

Contribution of the Professor is besides deserving adverting. I must state that till the times of my graduation, I have non seen a Professor seting so much attempt to do pupils non merely understand the schemes and theoretical accounts but besides critically analyse it. Professor used to make a dynamic environment through the synergistic session of larning where he made certain that every single understands the construct through a treatment on the common platform which enabled us to understand the constructs in deepness. The illustrations given by him to back up the construct enabled us to understand the constructs in ballad adult male ‘s footings.

Now when I have prepared an assignment on Nokia N97 as a worsening merchandise, has enabled me in the better apprehension of the Marketing Management as a scientific discipline which contains many analysis and schemes. Now whenever I would set about a undertaking in the hereafter, I would seek to connote the theoretical accounts, schemes and analysis I have come across during the acquisition of the theoretical account. Marketing Management has enabled me to carve a manner which leads to the root cause of the job. I realised SWOT, Porter ‘s 5 Forces are some of the theoretical accounts which we use in our twenty-four hours to twenty-four hours activities without gaining that we are utilizing such methodological analysiss to understand the root cause of the job. Marketing Management faculty has given manner to develop and streamline the idea procedure.