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					IILM INSTITUTE for HIGHER EDUCATION




                                            A

                                      Project Report

                                           On

                      Product and Brand Management



          BRAND ANALYSIS OF NOKIA




Submitted To: -                                   Submitted By:-
Sneha Gambhir                                     Sharvan Pandey

                                                  PG20102344
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Methodology:

We adopted the following methodology in this project: -

1. Industry/company analysis based on secondary research.

2. Primary research, including analysis of data based on survey of consumers.

3. Analysis of information gathered through primary and secondary source.

Executive Summary:

Nokia is a powerful Brand. It is a truly global Brand. Key theme of Nokia is to accelerate and
innovate. Nokia is focused on innovative ways of working together with the telecom service
operators to accelerate growth in the mobile market. But in the present scenario it is a
tough time for the mobile-phone giant as its market share has slipped and younger buyers
turn to rivals such as Samsung. It has a dual challenge in front of it. The First one is growing
and building brand on its core competency of innovation and technology leadership. The
second one is managing its brand well, so that it remains the leading brand in the segment.
Nokia must rethink its strategies if it is to meet these challenges. The recent social,
technological, economic, and political and customer preferences have forced Nokia to take
aggressive measures to adapt and grow and remain profitable. The project report in the
subsequent pages outlines of how Nokia evolved as a brand and the strategies it has
followed to reach the zeneith of success. The report also focuses on some of the ways
through which Nokia can beat the competition as it is facing a lot of competition from
Samsung. Nokia has to keep a good handle on the pulse of the market and its B2B
customers and end users. It must build its brand around its core competency of brand
differentiation and technological leadership. Nokia also needs to bring new products to
market, and, as the market is showing signs of saturation, shift its focus onto the
replacement market. Finally, by forming strategic alliances with various stakeholders (viz.
operators, consumers, scientist, developers and research community, governments and
communities), Nokia can ensure maximizing its brand awareness and brand image to the
end- user. As long as Nokia is open to reworking its brandingThe project report in the
subsequent pages outlines of how Nokia evolved as a brand and the strategies it has
followed to reach the zeneith of success. The report also focuses on some of the ways
through which Nokia can beat the competition as it is facing a lot of competition from
Samsung. Nokia has to keep a good handle on the pulse of the market and its B2B
customers and end users. It must build its brand around its core competency of brand
differentiation and technological leadership. Nokia also needs to bring new products to
market, and, as the market is showing signs of saturation, shift its focus onto the
replacement market. Finally, by forming strategic alliances with various stakeholders (viz.
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operators, consumers, scientist, developers and research community, governments and
communities), Nokia can ensure maximizing its brand awareness and brand image to the
end- user. As long as Nokia is open to reworking its branding

Introduction:

The Indian Mobile Phones Industry:

The mobile phones industry made a slow start in India in 1995. Several private players
who had entered the industry in 1995 exited in the next few years due to the unfriendly
telecom policies of the Indian government, high licensing fees and absence of a proper
telecom regulatory body. The growth in the subscriber base of mobile phones remained
sluggish initially, reaching the 1 million milestone in 1998. In 1999, the Government of
India announced a new telecom policy. This policy planned to provide telephones on
demand by 2002.

Among other things, the policy allowed unrestricted private entry into almost all mobile
service sectors. The government allowed cellular mobile service providers to share
infrastructure with other operators. It also allowed existing operators to migrate from fixed
license fee to one-time entry fee with revenue sharing. This policy helped many private
operators to break even faster. By 2001, the demand for mobile services was growing well.
The private companies concentrated on providing basic telephone services to consumers.
The number of mobile phones crossed five million by 2001 and doubled to 10 million in
2002.

About Nokia:

Nokia was founded in 1865 by Fredrik Idestam in Finland as a paper manufacturing
company. In 1920, Finnish Rubber Works became a part of the company, and later on in
1922, Finnish Cable Works joined them. All the three companies were merged in 1967 to
form the Nokia Group.

In the late 1970s, Nokia started taking an active interest in the power and electronics
businesses and by 1987, consumer electronics became Nokia's major business. Nokia
created the NMT mobile phone standard in 1981 and launched the first NMT phone, Mobira
Cityman, in 1987. The company delivered the first GSM network to Radkilinia, a Finnish
company in 1991, and in 1992, Nokia 1011 - a precursor for all Nokia's current GSM
phones - was introduced.

In the 1990s, Nokia provided GSM services to 90 operators across the world. Another
significant move of the company during this period was the divestment of its non-core
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operations like IT. The company focused on two core businesses - mobile phones and
telecommunications networks. Between 1992 and 1996, the company exited from the
rubber and cable businesses as well...

Nokia entered the Indian market in 1994. The first ever GSM call in India was made on a
Nokia 2110 mobile phone on its own network in 1995. When Nokia entered India, the
telecom policies were not conducive to the growth of the mobile phone industry.

The tariffs levied on importing mobile phones were as high as 27%, usage charges were at
Rs.16 per minute and, at these high rates, consumers did not take to mobile phones. Nokia
also had to face tough competition from other powerful global players like Motorola, Sony,
Siemens and Ericsson. Nokia was quick to learn from its mistakes and adopted strategies to
regain its lost market share. Globally, during the first quarter of 2005, the company's sales
reached 7.4 billion euros, with the company selling 54 million phones during the period. In
India, Nokia continued its leadership in GSM with a market share of 74% in March 2005.
Nokia also surpassed Samsung in color mobiles in the GSM segment, recording a share of
55% in the same month. Nokia reorganized itself at the global level in 2004.



Identification of brand related issues:

On a Global Platform:

Nokia was one of the dominant global players in the world of mobile communications.
Today, Nokia is being left behind by Apple and Blackberry. The company‟s stock price has
fallen from a high of about $40 per share to less than $10 per share, reflecting the decline in
the business.

One of the reasons Nokia has fallen so fast is that it has a simple branding problem: Nokia
isn’t a distinctive brand. It is a brand with positive associations and high awareness, but it
isn’t unique.

For many years, Nokia seemed to successfully do what marketing experts say you can‟t do:
serve all segments in a market. Nokia sold very high-end, technologically advanced phones
and simple, inexpensive phones, all under the Nokia brand. The branding structure was
very simple: the Nokia brand with a product number, such as N8, the company‟s newest
smartphone, or E7.

Of course, many branding problems only surface over time. And that is certainly the case
for Nokia. By playing in all segments of the market, Nokia watered down its brand, eroding
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its meaning. What is Nokia, anyway? What would I Nokia smartphone be like? No one
knows.

Nokia has competitors with very strong brands. Apple has created a remarkably strong
brand portfolio with well-defined brands: iPod, iPhone and iPad. Blackberry is a strong
brand, too. The new leadership team at Nokia has a long list of challenges. Developing a
more compelling brand portfolio should be one of the top priorities.




                                                      SWOT

STRENGHTS                                              WEAKNESS

1. Largest cell phone vendor.                          1. Lacking in software and design
                                                       innovation.
2. Design,            the      branding   and   the
technology.                                            2. Loopholes in Symbian OS.

3. Lending personality to its products 3. Slow to adopt new ways of thinking,
(fashion statement).                   Clamshell phones.

4. Effective advertisement and market 4. Increasing dissatisfaction levels with
communication.                        its smartphones.

5. Brand awareness.

6. User friendly.

7. Global expansion.

8. Strong R&D.
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    OPPORTUNITIES                                 THREATS

    1. Increase their presence in the CDMA 1. Rapidly changing industry.
    market.
                                           2. Late in the game of 3G.
    2. Good brand image in booming new
    markets.                               3. Asian OEMs.

    3. Clamshell handsets.                        4. Other handset vendors providing
                                                  service to carriers.
    4. Huge loyal customer base.
                                                  5. Better smartphones by competitors.
    5. Can use its infrastructure business
    (Nokia Siemens Network).                 6. Threat of entry by new players (Google,
                                             Microsoft).
    6. Booming economies like Latin America,
    India and China.




    Proposed Strategy:

    Major elements of the new strategy include:

   Plans for a broad strategic partnership with Microsoft to build a new global mobile
    ecosystem; Windows Phone would serve as Nokia's primary smartphone platform.

   A renewed approach to capture volume and value growth to connect "the next billion" to
    the Internet in developing growth markets.

   Focused investments in next-generation disruptive technologies.

   A new leadership team and organizational structure with a clear focus on speed, results
    and accountability.



    "Nokia is at a critical juncture, where significant change is necessary and inevitable in our
    journey forward," said Stephen Elop, Nokia President and CEO.

    Nokia plans to form a strategic partnership with Microsoft to build a global mobile
    ecosystem based on highly complementary assets. The Nokia-Microsoft ecosystem targets
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to deliver Differentiated and innovative products and have unrivalled scale, product
breadth, geographical reach, and brand identity. With Windows Phone as its primary
smartphone platform, Nokia would help drive the future of the platform by leveraging its
expertise on hardware optimization, software customization, language support and scale.
Nokia and Microsoft would also combine services assets to drive innovation. Nokia Maps,
for example, would be at the heart of key Microsoft assets like Bing and AdCenter, and
Nokia's application and content store would be integrated into Microsoft Marketplace.
Under the proposed partnership, Microsoft would provide developer tools, making it easier
for application developers to leverage Nokia's global scale.

With Nokia's planned move to Windows Phone as its primary smartphone platform,
Symbian becomes a franchise platform, leveraging previous investments to harvest
additional value. This strategy recognizes the opportunity to retain and transition the
installed base of 200 million Symbian owners. Nokia expects to sell approximately 150
million more Symbian devices in the years to come.

Under the new strategy, MeeGo becomes an open-source, mobile operating system project.
MeeGo will place increased emphasis on longer-term market exploration of next-
generation devices, platforms and user experiences. Nokia still plans to ship a MeeGo-
related product later this year.

In feature phones, Nokia unveiled a renewed strategy to leverage its innovation and
strength in growth markets to connect the next billion people to their first Internet and
application experience. Never underestimate competition, never rest on laurels, be modest,
flexible and open to change.

These may sound like management tips, but in fact form the essence of Nokia India's
business strategy. Nokia, which has about 40 per cent market share globally, is at the same
breath aggressive, but aggression for it does not mean being arrogant.Modesty and
flexibility is the only thing that will hold for us. The rest others can also do," Nokia India
Managing Director D Shiva Kumar told PTI, adding that "we don't want to rest on our
laurels but move ahead." Sounding a word of caution, he added, "Any market leader should
not take his position for granted. Every single market leader who has lost in the last 100
years has lost because they were arrogant, complacent or they were unwilling to change
“All competitors are important for us. Be it the RIM and Blackberry at the enterprise
segment or Apple on entertainment or the Chinese handsets at a commodity level," he said.
The company does not have a single competitor, Shiva Kumar said, Talking about
competition here, Shiva Kumar said: "This is a very high innovation based industry, the
average life of a phone model anywhere in the world is 18-24 months On an average Nokia
launches 40-50 products in a year across various segments. True to its tagline -- Connecting
People -- the company is now focusing more on rural India. The company is planning to
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    launch its agricultural, educational and entertainment services — Nokia Life Tools, which
    would benefit farmers in the rural area in 11 states. "We have launched the Nokia Live tool
    in Maharashtra which will benefit three lakh farmers there. We are going to launch it in 11
    other states soon," Shiva Kumar added. Under the service, Nokia provides news,
    information on agriculture, and data on commodities from local markets, which will be
    delivered over handsets to subscribers in the rural areas.

    Value Proposition:

    Focusing exclusively on the mobile industry, Nokia Growth Partners brings a global
    perspective and deep understanding of global trends to every engagement. We are active
    investors adding value through:

   Strategic insight.

   Operational experience.

   Vast network of contacts in the mobile industry.



    Our close working relationship with Nokia encourages a collaborative process. Our goal is
    to enhance the likelihood and magnitude of success both for the companies in which Nokia
    Growth Partners invests as well as partnerships Nokia develops with companies in which
    we have invested.

    Nokia Growth Partners focuses exclusively on the mobile industry bringing a global
    perspective and deep understanding of global trends. Nokia Growth Partners is an active
    investor adding value through strategic insight, operational experience, and a vast network
    of contacts in the mobile industry. Our close working relationship with Nokia encourages a
    collaborative process, which we believe enhances the likelihood and magnitude of success
    for the partnerships Nokia develops with companies in which we have invested.

    GLOBAL PERSPECTIVE :-

    Nokia Growth Partners invests globally through a single fund. Our engagement is global
    with an investment team spanning North America, Europe and Asia and active investments
    in seven countries. We apply consistent investment standards across each of our
    investments irrespective of location and scout the globe for best-in class companies
    building innovative applications and disruptive technologies
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With potentially global impact. Our team brings deep knowledge and work experiences
from both developed and emerging markets to help entrepreneurs engage globally and
accelerate their reach both domestically and abroad.

MOBILE FOCUS:-

We invest exclusively in companies that are changing the face of the mobile industry. We
define the mobile industry broadly as we are in the midst of a revolutionary transformation
from simple voice only phones to internet-enabled multimedia devices. For many people
around the world, a Nokia phone is their first internet-connected device. It could also be
their first camera, navigation device or digital music and video player. Nokia now ships
more cameras and digital music players than anyone in the world. The convergence of
mobile phones with other traditional consumer electronics is blurring distinctions between
telecom, media and technology companies. Smart mobile devices and networks will add
intelligence to existing internet services to facilitate real-time, richer, more personalized
access to the people and content users value.

GROWTH STAGE:-

Nokia Growth Partners focuses on growth stage companies that have shown promise of
early market leadership, yet require the capital and expertise to achieve scale and
maximize their potential. Specifically, we focus on companies that are sufficiently well
established to engage effectively with Nokia yet early enough that such engagement will
make a material difference for their business - typically, companies with a commercially
available product or service and initial customer traction. Active engagement with Nokia
Growth Partners at this stage can help companies accelerate growth cost effectively both
within their core markets and in new areas as they expand.

BRAND EQUITY MEASUREMENT OF NOKIA:-

Every organization has a brand, whether they have consciously developed it or not. A
brand is simply an expectation or a promise of an experience. Whether that expectation is
trusting, authoritative, innovative, or fun, brands are short-hand for describing the way a
business, organization, product, service, celebrity or other entity relates to its stakeholders
(e.g., customers, donors, employees, investors, volunteers, suppliers, etc.). A strong brand
impacts everything from the ability to recruit top talent and to opportunity to grow the
bottom line. Little wonder that more and more attention is being paid to measuring and
managing brands as assets. The way to build a strong brand is to put customers and their
needs at the center of every decision the organization makes. Over time, “customer centric”
actions create differentiation in the marketplace and build emotional connections with
customers. This differentiated bond, called “brand equity”, is a real and valuable asset with
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tangible returns in terms of customer loyalty, profitability, and insulation from negative
publicity or competitive action.

Brand Knowledge:

Brand Awareness



Nokia has the highest top of the mind recall compared to its competitors. Hence it has high

Brand salience. The aided recall (brand recognition) for Nokia is also higher compared to
its Competitors.

Brand Image



Nokia has significant positive brand associations compared to neutral or negative
associations.

Customers acknowledge Nokia for its reliability. The perception of the customers towards
the brand is also positive.

Brand Loyalty

Customers who already have a Nokia mobile phone are ready to re- purchase a Nokia
mobile phone by paying a price premium. This means that Nokia users are loyal towards
their brand. The loyalty factor of customers having other brands is less as compared to
Nokia. Loyalty factor helps in attracting new customers by creating awareness and
reassurance in the brand (Aaker, 1991). Nokia can also use this factor to respond to threats
posed by competitors.

Brand Awareness

We already have mentioned that Nokia has the highest brand awareness in the market.
Another factor that buttresses our stand of Nokia‟s high brand awareness is that a
significant number of non-Nokia users are ready to switch over to Nokia brand in their next
mobile phone purchase.
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Perceived Quality

Nokia is positioned at the top of the mobile phone category in terms of perceived quality
factor. The brand-positioning map positions Nokia high both in terms of Price and Quality.
This factor differentiates Nokia from its competitors and affects purchasing decisions of
potential customers as well as builds positive associations with its channel members.

Brand Associations

As already mentioned by us, Nokia has positive brand associations to its credit. This factor
would work as a significant parameter for potential customers for their purchasing
decisions towards Nokia.

Other Proprietary Brand Assets

Nokia has over 100 small and large patents in the area of technology and research. This
factor helps the company with a competitive advantage by restricting competitors to
capture its customer base and loyalty. It is more of a strategic branding strategy to face the
competition.

Brand Personality

As a person, Nokia stands for competence, which means reliable, intelligent and successful.
It also stands for sincerity, which means down-to-earth, honest, wholesome and cheerful.

Brand Elements

Logo of the brand is `Nokia` which is short and easy to remember as a brand name. It has a
punch line ``Connecting People`` which fits very well with the business that Nokia is into
and the strategic direction that it wants to see for itself in the future.

Brand Analysis:

Nokia has thus far managed to establish a powerful brand that has been widely recognized
as the key to its recent successes. Nokia brand is an asset that has been carefully built and
managed by the Nokia brand managers during the past ten years. In addition to a superior
design, Nokia developed its expertise to mobilize its R&D efforts coupled with market
research to bring about a winning product. A cross functional team consisted of engineers,
graphic designers, sociologists, psychologists, market researchers and product managers.
Nokia has successfully segmented the market to target specific demographic groups. For
example, in the year 2000, different phones were marketed to appeal to the “rugged” user,
the “sophisticated” user, and the youth market, among others. With all these product
innovations, designed to satisfy customer
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Preferences, Nokia have reinforced its brand image of providing cutting-edge
communications technology.

Brand Personality

Analysts have positively characterized the company by describing it as “young, sexy,
sophisticated, hip and generally „with it.‟ Subsequently, Nokia leveraged its superior
marketing strategies and powerful brand to avoid the price wars that have recently
afflicted its key competitors.

Brand's positive associations

What is it about Nokia that people within the company - and outside of it - most admire?
People tend to be attracted to Nokia's distinct way of operating and clear values of
customer satisfaction, respect, achievement and renewal. Additionally customers perceive
Nokia a fast innovator, reliable and hi-tech product. There is a strong band of loyal
customers who have trust and take pride in buying Nokia's latest models as soon as it is
introduced in the market.

B2B and end-users Customers

Telecommunication companies like AT&T, Rogers and Aliant are few of the B2B customers
of Nokia. These operators buy Nokia handsets in volumes and sell that to the end users at a
much cheaper price (major portion of the price is hidden in the scheme cost). Nokia has
demonstrated success in delivering a wide range of mobile voice connectivity and security
solutions to suit specific business needs. Nokia has been co-branding phones with
operators in the north America since 1991 as well as providing modified hardware for the
inside of the phone. The pen-based Nokia 6108 and Nokia 3108 for inputting Chinese
characters provide an excellent example of how hardware design can meet the needs of a
specific market. End users may directly buy handsets from the market as well. Nokia has
varied segment of customers with a vast demographics and economic class. Age group may
vary from even 14 years to 70 years. Older customers are found to be more loyal to Nokia
as compared to the younger customers.

Products

Nokia aims to offer high value-adding products to its customers, including operators,
consumers and enterprises, by persistently renewing its competences and brand portfolio.
Nokia has a wide brand portfolio comprising of over 200 products positioned across cheap
to luxury brand continuum. Brands share a sub brand type architecture where Nokia as the
master brand drives other sub brands such as Nokia5468 or Nokia1473 etc. It is quite
similar to the approach adopted by Dell Computers. Recently Nokia launched an upmarket
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luxury brand called Virtue priced in the range of $400 to $4500.To further the focused
renewal of its brand portfolio, Nokia introduced and started shipping several new mobile
devices during the current year. The newly launched products strengthen its high-end and
midrange offering and include a trio of fashion-category phones, the Nokia 7260, Nokia
7270 and Nokia 7280; third mega-pixel imaging smart phone, the Nokia 6670; and the
Nokia 9300 enterprise smart phone.

Primary Research:

We used different methodology while conducting our survey. Firstly we collected primary
data. Our sample size was 25. We collected the data through a Questionnaire we designed.
The questionnaire was structured and not disguised. We collected all the data directly from
the field directly. The sample size of our survey was a hetrogeneous mix which comprised
of different age groups, occupation, income levels etc. We used cluster sampling and
random sampling. Since the population was large we went for cluster sampling. Moreover
it saves time and cost. To minimize the chances of biasness we used random sampling
technique. The sample we selected belonged to our PG, Institute and local residents.

Questionnaire:

“PREFERENCE OF NOKIA HANDSETS OVER OTHER HANDSETS”

1. Do you think Nokia handsets are updated with latest features?

a) Yes

b) No



2. Are Nokia mobiles readily available in the market?

a) Yes

b) No



3. Do you think Nokia mobiles are user friendly?

a) Yes

b) No
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4. Do Nokia provide good after sales service compared to other mobile phones?

a) Yes

b) No



5. Nokia is costlier as compared to other mobile handsets that provides same features as
Nokia, but still why do you prefer Nokia?

a) Nokia brand name

b) Better features

c) User Friendly

d) All the above



6. Does a Nokia phone come with a reasonable price?

a) Yes

b) No



7. If a mobile company offers same features , quality and price as Nokia, will you still go for
Nokia?

a) Yes

b) No



8. Except Nokia your other preferred mobile phone brands?

a) Samsung

b) LG
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c) Sony Ericsson

d) Others

9. Will you go for other mobile brand with less price and mobile features?

a) Yes

b) No



10. How would you rate the after sale service of Nokia?

a) Very Good

b) Good

c) Neither Good nor Bad(Neutral)

d) Bad

e) Very Bad

Results:

We asked total ten questions which were mainly close ended questions, out of 10, 8 were
answerable in either Yes or No. And the remaining 2 questions have 5 options for each. The
results of the question number 1,2,3,4,6,7 and 9 which are answerable in either Yes or No
are as follows:-

Question Number                       Yes         No

1                                     87.5%       12.5%

2                                     87.5%       12.5%

3                                     100%        0

4                                     62.5%       37.5%

6                                     75%         25%

7                                     50%         50%
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    9                                     37.5%       62.5%



    Brand Name-29%

    Better features-14%

    For question number 8 the answers were:-

    Samsung-25%

    LG-37.5%

    Sony Erricson-12.5%

    Others-25%

    Limitation:-

   The respondents were biased in respect to certain brands.

   Our research was limited to 25 respondents whereas in reality the universe is too big.
    Hence, statistical data might change if we further increase the sample size.

   The accuracy of the data is doubtful as the respondents were ignorant and hesitant towards
    their response.



    Conclusion and Recommendation:-

    During the course of research on this project we have come to know a lot of interesting
    facts and information regarding Nokia. Nokia is undoubtedly the market leader in the cell-
    phone market. Nokia still dominates the world cell-phone market share.

    Nokia leads the market with 38.6% stake, beating its nearest rival Samsung which has
    16.2% stake. LG has a market share of 8.3%. Nokia enjoys the number one status because
    of its qualities, features, price range it provides to its customer compared to its customers
    compared to its competitors.
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    However, Nokia is facing certain challenges that have affected its sales at present. Nokia
    has intense competition with Samsung and economic downturn is also adding to lower
    sales. The sales of Nokia have also been affected quite badly by the recent launch of some
    duty free cheap phones. Moreover, there are some areas where its competitors are giving a
    run for their money like product designing, modifications etc.

    Through our collaborative research, we have to found out some areas where Nokia should
    emphasize more so that it continues to be the market leader and have an edge over its
    competitors. These include further focus on:-

   Product Competitiveness

   Customer Satisfaction

   R&D

   Demand & Supply

   End to end capability

				
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