Marketing Strategy

INDUSTRY- ELECTRONIC, COMMUNICATION AND

INFORMATION TECHNOLOGY INDUSTRY
PRODUCT- MOBILE

TEAM 6
Krittika Biswas (21)
Shivani Naik (26)
Shruti Joshi (42)
INTRODUCTION-
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Nokia was an emerging market leader in this industry till early 2000’s in India. The aura of the
brand was such that mobile phones were synonym to Nokia. But after 2008 the market share in
India has declined significantly and had been overtaken by competitors, such as, Samsung,
Micromax, etc. They are the major players who had captured the market share of Nokia. Nokia
employs 101,982 people in 120 countries, sells in over 150 countries, and has annual revenues of
around €30 billion. By 2012, it had surpassed Samsung to become the world's second-largest
mobile phone manufacturer in terms of unit sales, with a global market share of 18.0% in the
fourth quarter of that year. Nokia now has a 3% share of the smartphone market. In the second
quarter of 2013, they lost 40% of their mobile phone revenue. Nokia is a public limited liability
company that trades on both the Helsinki and New York stock exchanges. According to Fortune
Global 500, it is the 274th-largest company in the world by revenue in 2013. From 1998 to 2012,
Nokia was the world's largest vendor of mobile phones.
Nokia started capturing Indian market since 1995. But it’s still at the bottom end with a market
share of just 2.4% in the second quarter of 2019, way behind Xiaomi’s 28% or Samsung at 25%.
We create technology that helps the world act together.

HISTORY OF NOKIA-
Over the past 150 years, Nokia has grown from a riverside paper mill in south-western Finland to
a global telecommunications leader, connecting over 100 million people worldwide. There are
1.3 billion people in the world. We made rubber boots and car tires during that time. They
produced electricity and even TVs. By the 1960s, Finnish Cable Works, which was already
collaborating with Nokia Ab and Finnish Rubber Works, begins to diversify into electronics. In
1962, it develops its first in-house electronic device, a pulse analyzer for use in nuclear power
plants. Nokia's first foray into telecommunications occurs in 1963, when it begins developing
radio telephones for the army and emergency services. Micro Mikko, the company's computer
brand, eventually becomes the most well-known in Finland. By 1987, Nokia has risen to become
the world's third largest TV manufacturer. In 1979, Nokia establishes radio telephone company
Mobira Oy as a joint venture with leading Finnish TV manufacturer Salora. In 1981, the Nordic
Mobile Telephone (NMT) service is launched, the world's first international cellular network and
the first to allow international roaming. The NMT standard quickly gains acceptance, and the
mobile phone industry begins to expand rapidly. Nokia introduces the first car phone, the Mobira
Senator, to the network in 1982. The Nokia DX200, the company's first digital telephone switch,
goes into service the same year. On July 1, 1991, Finnish Prime Minister Harri Holkeri uses
Nokia equipment to make the world's first GSM call. In 1992, Nokia introduces the Nokia 1011,
its first digital handheld GSM phone.

NOKIA-MICROSOFT DEAL

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The Nokia-Microsoft alliance brings together two global companies with highly complementary
assets and competencies. To begin with, Nokia has chosen Windows Phone as its primary
smartphone platform. They had collaborated with Microsoft to drive and define the platform's
future by leveraging our expertise in hardware optimization, software customization, and
language support. Nokia and Microsoft were also combining their service assets in order to spur
innovation. Nokia Maps, for example, have been integrated into key Microsoft assets like Bing
and AdCenter, and Nokia's app and content store will be integrated into Microsoft Marketplace.
But this collaboration was not fruitful for the company because they were not able to compete
with fellow competitors in this segment.

NOKIA’S MISSION AND VISION-

Nokia's mission is straightforward: connect people. Their goal is to create great mobile products
that allow billions of people around the world to enjoy more of what life has to offer. Their
challenge is to do so in an increasingly dynamic and competitive environment. Ideas Energy.
Excitement. Opportunities. In today's mobile world, it feels like anything is possible, which
motivates Nokia to get out of bed every day. Nokia's mission in the smartphone market is to
reclaim its leadership position.
The company's vision for how it will achieve its mission appears to revolve around the
company's strategic alliance with Microsoft. Nokia appears to recognize that they have lost their
brand identity and are betting on a partnership with Microsoft to create a new ecosystem that will
compete with and surpass their competitors.

GOALS & OBJECTIVES –

This proposal outlines the plan to capture the market, which was not able to promote brand, the
major steps can be followed:
1. To Increase market share.
2. To Sustain brand hold in the market.
3. Analyze customer demand in the current market and to full their needs and want

INDUSTRY AND MARKET ANALYSIS-

According to the 2019 data, the market size of Nokia is 2.4%, 3 million units in Q3 2021.
(Source: Fortune India). The Compound Annual Growth Rate (CAGR) of NOKIA for the last 5
years is 53%. Their existing market segment and their size based on demographic, psychographic
and behavioural segmentation are as follows-
(a) Demographic Segmentation: High Income Group, Medium Income Group, Low Income
group
(b) Psychographic Segmentation: Achievers, Strivers, Survivors and Explore Customer

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 (c) Behavioral Segmentation: Occasions- Nokia launches new phones on special occasions
like Diwali, Christmas and many more regional festivals and special occasions. Nokia
releases new phones on special occasions such as Diwali, Christmas, and many other
regional festivals and special occasions. The benefit of this would be- Nokia releases a
variety of phones for those seeking quality and better service at a reasonable price. Such
as a phone with a good camera, memory, and display. As a result, Nokia offers a variety
of Asha series phones in this category.

Ease of entry of new firms –

There are no major barriers to entry to the market, so firms that are not profitable in the
smartphone business can easily leave and vice versa.The market size and growth, technological
barriers, intellectual property, network effects, regulation, and market power are all factors that
can impact the ease of entry for new firms in a particular market. A large and growing market
can attract new entrants, while a saturated market may be more difficult to break into. The level
of technological sophistication and innovation in the market can be a barrier to entry for new
firms without significant expertise or resources. Strong patent protection and intellectual
property rights can make it difficult for new firms to enter the market. Markets with strong
network effects, such as mobile operating systems, can create barriers to entry for new firms as
consumers and businesses prefer to stick with established platforms. Regulations, such as those
around wireless spectrum allocation, can also impact the ease of entry for new firms in the
mobile sector. The bargaining power and market dominance of established players can further
make it difficult for new firms to gain a foothold in the market.

Intensity of competition
Competitive intensity determines a company’s profitability potential. So, with intense
competition, a company will be able to transfer more value to its clientele.
How easily the product can be substituted-
It can easily be substituted as there are a high number of close substitutes offered by competitors.
This product can be easily substituted as there are high number of close substitutes offered by the
competitors in the market.

How dependent is your product on other complimentary product-

They are highly dependent on Service providers like Airtel, Jio etc.
Bargaining power-

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Buyers- The carrier networks (e.g., AT&T, Verizon, etc.) have significant bargaining power as
they control the distribution and access to consumers. Mobile phone manufacturers (e.g., Apple,
Samsung, etc.) have bargaining power as they create a demand for their products.
Suppliers- Component manufacturers (e.g., Qualcomm, Foxconn, etc.) have bargaining power as
they control the supply of key components used in mobile devices. Operating system providers
(e.g., Google, Apple, etc.) have bargaining power as they provide the software that runs on the
devices.

Technological sophistication -

The technological sophistication is very low because NOKIA did not upgrade its technology
with the newer generation requirements. Nokia wanted to stick to its traditional technology rather
than improvising it which is one of the major reasons why it failed to grow in market.

If Nokia considered a few factors like- Hardware that focuses on the quality and capabilities of
the components used in the device, such as the processor, camera, and battery. Software that is
aimed at improving the operating system and applications that run on the device. The product to
be able to give more user-friendly experience that is the ease of use and functionality of the
device, including the design and user interface. Followed by Security, which is most important of
all. The level of security and privacy protection built into the device, including encryption,
biometric authentication, and software updates. The ability of the device to connect to different
networks and types of communication, including 5G, Wi-Fi, and NFC. And Artificial
intelligence the use of artificial intelligence to improve the functionality and performance of the
device, including features such as voice assistants and intelligent camera systems.

SWOT ANALYSIS-
Strength:
Nokia is a major manufacturer of consumer electronics, telecommunications equipment, and
networking equipment. Nokia employs over 90,000 people worldwide. The company operates in
over 100 countries and generates $20 billion in annual revenue. Nokia was the largest mobile
phone manufacturer in the early 2000s. Nokia has a long history dating back to 1865.The company
is also diversifying into products such as air conditioning, televisions, and laptop computers. Apart
from smartphones, Nokia Networks, Nokia Technologies, Bell Labs, Alactel, and NGP Capital are
among the company's subsidiaries. Multi-brand retail outlets, ecommerce platforms, and online

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stores sell the products. The brand is traded on the Helsinki Stock Exchange and the New York
Stock Exchange.
Weakness:
A brand's weaknesses are specific aspects of its business that it can improve to further strengthen
its position. Certain weaknesses can be defined as characteristics that the company lacks or in
which competitors excel. The brand suffered greatly as a result of its late entry into the touch
screen and smartphone markets. In the past, legal issues have harmed the company's brand
image.
Opportunity:
Opportunities for any brand to improve its business can include areas of improvement.
Geographic expansion, product improvements, improved communication, and other
opportunities may exist for a brand. Nokia can diversify into more consumer products, resulting
in a stronger revenue stream. Inorganic growth can be aided by the acquisition of electronics and
mobile companies. Concentrate on developing affordable as well as premium product lines to
cater to a diverse range of consumers.
Threat:
Threats to any business can be factors that have a negative impact on its operations. Some threats
include increased competitor activity, changing government policies, alternative products or
services, and so on. The mobile market is characterized by intense price competition. Increasing
competitor business can harm business operations. The market is very dynamic, and a failed
product can be a major issue. Global recessions or pandemics can have an impact on the supply
chain.

PRODUCT (NOKIA MOBILE) DETAILS

Do you know why your customers would buy from you?
Yes, the customers would buy for Nokia’s quality, brand name and experience with the product.

Quality: Nokia is known for producing high-quality and reliable products.

Brand reputation: Nokia is a well-established brand with a reputation for innovation and
technology leadership.

Customer support: Nokia offers excellent customer support and has a strong reputation for
helping its customers solve problems and find solutions.

Industry experience: Nokia has extensive experience and expertise in a few industries, making it
a trusted provider for those industries.

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Do you know the buying process adopted by different customers you cater to?
It is likely that Nokia has a good understanding of the buying process adopted by its customers.
Companies typically study the behavior of their target customers to determine the best way to
reach and influence them. This may involve researching the customer's needs, buying habits,
decision-making processes, and the types of products or services they prefer. By understanding
the customer's buying process, Nokia can tailor its marketing and sales efforts to better meet the
customer's needs and influence their purchasing decisions. This can lead to increased customer
satisfaction and loyalty, and ultimately, improved sales and revenue for the company.

Is there a seasonality of buying your product(s)?

It is seen that customers majorly buy mobile products during festive seasons (Diwali, Christmas).
It is also due to discounts offered by the company during festivals keeping the festive vibes

Can you explain how they use your product (s)?

For communication purposes mostly.

How important is packaging?

Packaging boxes are the most vital part of these marketing campaigns as they allow the
manufacturer or distributor to introduce the product into the market without much hype or
advertising. Packaging is important because usually people get attracted to it, and all-important
details are mentioned on it. It helps to protect mobile phones from damage when being
transported on planes and trucks.

How important is service, warranty and so on?

Nokia smartphones come with a Warranty of 12 (twelve) months. Unless otherwise specified, the
Warranty covers the hardware components of the product as originally supplied and does not
cover, or partially covers, software, consumable items, or accessories, even if packaged or sold
together with the smartphone.

What product modifications and changes have your competitors introduced in the last one
year?
The company introduced new products at its virtual press conference, showing how it’s continuing
to innovate by creating solutions that are flexible, intelligently connected, and use AI to understand
context to make daily life seamless.

MARKETING MIX-
We have examined Nokia's marketing mix to determine which strategy it used to reclaim lost
ground in the smartphone market. As marketing strategy shapes the marketing mix for products,
the marketing mix will point to the company's strategic choice. The marketing mix is a synonym

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for 4ps, which is made up of the four most important components of any product's strategy:
product, price, promotion, and place. These components provide opportunities for the company
to differentiate itself.

Product:
No. of series of smartphone such as Nokia Lumia, Nokia Asha as well as other feature phone
series. Product design also varies – Touch screen products, Classic keypad phones as well as
slide sets. Nokia's products vary greatly because the company has a few Smartphone series, such
as Nokia Lumia and Nokia Asha, as well as feature phone series. Product design varies as well;
the company offers touch screen products, classic button phones, and slide sets. Nokia's products
have some great features that vary depending on the product. Nokia is well-known for the high
quality of its products, and it frequently offers technologically advanced cameras and excellent
maps for its smartphones.

Price:
Price of smartphone varies between Rs. 5000 and 39000.There is high price variability of
products, so that the price meets every social class need.

Place:
Nokia is getting its product through market distributors. It mainly sells its smartphones through
mobile operators and retailers and through E- Commerce website. Nokia's products are sold
through distributors. It primarily sells smartphones and feature phones through mobile operators
and retailers, as is common in the industry. The company does not have a presence in most of the
country. According to Nokia's marketing mix analysis, the company primarily focuses on the
product component of the marketing mix. Nokia offers a wide range of products at various price
points. Given the variability in products and series, it is difficult to understand the company's
strategic choices at this point. It is even impossible to assess the decisions regarding the new
Nokia Lumia series.

Promotion:
Nokia makes use of advertisement on television, newspapers and billboards. There is no
information on any current or near past promotional campaigns.

OTHER COMPETITORS-
XIAOMI INDIA- the CEO of this company is Murali Krishnan B. Power and management
capability- Penetration Pricing has helped them to gain their popularity in market. It always
offered a wide variety of ranges.
OPPO INDIA- the CEO of this company is Rajeev Singh. Power and management capability-
Providing better features irrespective of the price.

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COMPETITION ANALYSIS-
We track our competitors' major activities through following methods: -
Media monitoring- It is the process of tracking mentions of keywords connected to your
brand on the Internet. You can automate it by using tools that are continuously trawling millions
of web sources and gathering relevant data. You are also provided with details like the author’s
name, location, publishing time, sentiment, reach, interactions, engagement rate, and influence
score.
Social listening- It is the process of reacting to the data gathered during media monitoring and
actively adjusting your strategy according to the insights gained into your customers’ behavior.

PESTEL ANALYSIS-

POLITICAL:
The company is bound to follow rules and regulations. The government policy and taxes are
decided by the government. Apart from this, the acquisition of Nokia by Microsoft during the
time of Nokia’s maturity stage also created some political turmoil for Nokia which gradually led
to its decline, and Microsoft cut off the deal.

ECONOMIC:
Economic conditions like Employment Rates, Exchange Rates, Worldwide recession, economic
slowdown also impact the market forces.

SOCIAL:
The customer’s social needs and desire for high-end products was not fulfilled by Nokia. High
population density and growing middle class in India provide a large target market for Nokia.

TECHNOLOGICAL:
Nokia stood by its traditional method of technology and software and did not wish to change,
even when the world was changing and upgrading. In a constantly evolving industry, Nokia
failed to introduce a new variety of products. Nokia was not technologically improvised.
However, India has a well-developed IT infrastructure and a large pool of technology-literate
consumers, which provides opportunities for Nokia to introduce new products and services.

ENVIRONMENTAL:
India's growing concern for environmental sustainability presents opportunities for Nokia to
develop eco-friendly products. Nokia engages in climate mission, Nokia energy profiler and
much more. On the other hand, Nokia used replaceable batteries which could harm the
environment and increase e-waste.

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LEGAL:
Nokia maintains its privacy and provides transparency to the customers. Nokia also follows a
code of conduct and abides by its legalities.
Intellectual Property Rights: India has a favorable intellectual property rights regime, which
provides protection for Nokia's technology and products.
Contract Law: Strong contract law in India provides a secure legal framework for Nokia's
business dealings and agreements.
Competition Law: India has a competition law regime in place to prevent anti-competitive
practices and ensure fair competition in the market.
Labor Laws: India's labor laws ensure protection of worker rights and provide a stable legal
framework for Nokia's operations.
Taxation: India has a stable tax regime and a favorable tax environment, which provides a
predictable tax liability for Nokia.
Regulatory Environment: India's robust regulatory environment helps to ensure transparency and
accountability in Nokia's operations in India.

MARKET PLAN FOR FUTURE-

Nokia’s market share has been dropping over the past years. Nokia is currently not a top
competitor in this segment. Nokia is in the declining stage in the product life cycle because there
is intense competition from local and international players that has impacted Nokia's market
share in India. We also know that rapid advancements in technology have led to the introduction
of new products and services, causing Nokia to lose its competitive edge. Changing consumer
preferences for smartphones and other mobile devices have led to a decline in demand for
Nokia's products in India. Nokia wants to get back to the position in 2010. Nokia wants to
rebuild its brand position that was prominent earlier.
Emphasize quality and reliability: Nokia has a reputation for producing high-quality and
reliable products. The company could leverage this reputation in its marketing efforts.
Target specific industries: Nokia could target specific industries such as healthcare,
transportation, and energy, and tailor its marketing efforts to those industries.
Partner with other companies: Nokia could form partnerships with companies that
complement its offerings and jointly market their products and services.
Utilize digital marketing: Nokia could use digital marketing channels such as social media,
email marketing, and search engine marketing to reach a larger audience.
Offer customization options: Nokia could offer customization options for its products and
services to meet the specific needs of its customers.

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Introduction Stage: Nokia is a Finland -based multinational company that was once introduced
by Fredrik Idestam at in the year 1865. Not many of us know this, but Nokia started to make
wires, pulp and rubber. It's Digi-handheld GSM handset, Nokia 1011 launched in 1992. The
company didn’t introduce a range of products because it is much less demanding.
Growth Stage: It is important to note that Nokia's growth stage was characterized by continuous
innovation and adaptation to changing market conditions. The company's decline in recent years
can be attributed to its inability to keep pace with the rapidly evolving technology landscape.
Nokia was established in 1865 and initially focused on the production of paper products. In the
early stage, the company gradually expanded its product offerings to include rubber and cable
products. In the 1960s and 1970s, Nokia diversified its product offerings to include consumer
electronics and telecommunication equipment. This period marked the start of its rapid growth.
Nokia Launched phones without external antenna with better features like games,
alarm, ergonomic keypad, display etc. Models like Nokia 3310/3315 marked beginning of
growth stage launched models like N95 to compete with Apple’s I-phone product. Nokia's peak
growth stage was marked by its strong market position, high profitability, and significant
investment in R&D and innovation.

Maturity Stage: Nokia's market share in India reached saturation, with limited opportunities for
further growth. The company focused on improving efficiency, reducing costs, and optimizing
its operations to maintain profitability. Nokia had launched QWERTY touch model N-97 which
generated a lot of Profit. The company maintained a stable market share in India, but its market
share was gradually declining due to intense competition. The maturity stage for Nokia in India
was characterized by a decline in market share and profitability, due to intense competition,
changing consumer preferences, and a lack of innovation.

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Decline Stage: Nokia's market share in India continued to decline due to intense competition
from local and international players. Its decreased market share led to a decline in revenues for
Nokia in India. The company's financial performance in India was impacted by declining
revenues, leading to a decrease in profitability. Globally, Nokia’s bad product layout and having
its main center of attention on Windows as its OS, lead to its decline. Microsoft Nokia Deal,
Microsoft bought Nokia phones, patent for $7. 2Billion. There was a net loss operation and loss
of market share because of these reasons.

SEGMENTATION, TARGETING AND POSITIONING-

The segmentation of Nokia was based on its designs, features and functionality. With the
growing trends and our study of this company, we would recommend bringing in some
innovation and variation to compete against the top brands in this segment. The target audience
for Nokia was the 18-25 years old age group, however, if the target audience increased to the 20-
35 years old age group, the focus would be more on high income earners, which will increase the
demand for this product. The positioning of their products was unfavorable hence, based on our
study of the company we would recommend change in technology that is replacing the processor
and improvising it. This would increase its market share.
The products Nokia Lumia, Nokia Asha and others existed on the market. To increase the
adaptation power of people with this product in the market, more unique products based on
market demands and with better updates need to be introduced. No change was required in the
existing prices and the way the product was placed on the market. However, to increase the
promotion which did not exist earlier, more active use of social media and influencers to reach a
wider range of audience would be helpful.

MARKETING PLAN- REJUVENATING PEOPLE-

Mass Marketing: By sponsoring events that will be viewed by large amount of people.
Effective use of print media: Advertisements for smartphones published in famous newspapers
and high-end phone advertisements found in magazines such as Lifestyle.
Effective use of television: Advertisements that Indians can identify with using celebrities as
Brand Ambassador.
Nokia uses a differentiated marketing targeting strategy because they target several market
segments and design separate products for each. Nokia tries to manufacture products for every
“PURSE, PURPOSE and PERSONALITY”.

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INNOVATION- TO REGAIN IT’S LOST BRAND VALUE
Nokia has a history of innovation in the mobile phone industry and has been at the forefront of
introducing new technologies and features. But since 2010, it has lost its market share to its
competitors. Here are two potential innovations for Nokia mobile phones.
6G technology: With the rollout of 5G networks around the world, Nokia could be one of the
first companies to start researching and developing 6G technology. 6G promises even faster
speeds, lower latency, and improved connectivity compared to 5G, which would be a major
selling point for Nokia mobile phones.
Remote control sensor: Another innovative feature that Nokia could incorporate into its mobile
phones is a remote-control sensor, which would allow users to control other devices or
appliances in their homes or offices. This could include controlling lights, thermostats, and other
smart devices, making Nokia mobile phones even more versatile and useful for consumers.
These are just two examples of the kind of innovation that Nokia could bring to the mobile
phone market in the future, as it continues to lead the industry in technology and design.

CONCLUSION
Nokia's mission is to reclaim its position as the market leader in smartphones. The company sees
the greatest potential for achieving its goal in its partnership with Microsoft, but it has yet to
show positive results. The threat from existing competitors is the most serious problem for the
company, according to the environmental analysis. These products' market success has been
mixed, and Nokia has yet to achieve its goal of becoming India's market leader.
Thus, after our analysis we feel that they can make a comeback to this industry with a
smartphone having these two features (refer above) which would help them build their customer
base again with proper promotions and positioning their product properly in the market so that
they can give a tough competition to their rivals.

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