Case study on history of Nokia and why it failed in present scenario?

1. A project by Apoorva Yadav, student of IBMR-IBS
Mysore University

2. 1865
Wood Pulp
Mill
1871
Share
company
1898
Rubber
Business
1902
Electricity
1967
Nokia
Corporation
2012

3. ѼKey people
‡ Risto Siilasmaa (Chairman)
‡ Rajeev Suri (President & CEO)
‡ Timo Ihamuotila (CFO)
ѼRevenue - €12.70 billion
ѼOperating Income - €519 million
ѼNet Income - €-615 million
ѼTotal Assets - €25.19 billion
ѼTotal Equity - €6.46 billion
ѼEmployees - 90,981
Ѽ [Data relied - 2013]

4. Headquarters At Finland

5. Evolution of Nokia Phones

6. A Visit to Mobile Shop near Sony World,
Kormangala
Interaction with the Retailer

7. ѼMobile brands sold – Samsung, Nokia, Sony & Intx
ѼLess Sales happens for Nokia compared to Samsung
‡ If Samsung sells 10 handsets than Nokia sells 4
ѼDemand for Android > Demand for Windows
ѼCustomer Complaints are generally for:
‡ Problem of touchpad
‡ Music earpiece damage
‡ But unlike Samsung no complaints faced for device hang
ѼThe new Android version of Nokia is catching up in
market

9. ѼIncrease in teledensity = Increase in mobile subscription
ѼMobile subscription to rise to 148.77 million by 2009
ѼLeading to rise in Teledensity by 18.2% in the same year
ѼMajor Reason of increased teledensity are:
‡ Removal of traditional landline phones
‡ Mobile Phones turned out to be economical
‡ Great scope of market expansion for cell phones
‡ Reduction in cost of ownership

10. ѼRestructuring of Nokia as an organization at global level
ѼAdoption of Dual strategy :
‡ Promotion of high-end telephones in Tier I & Tier II cities
‡ Targeting high volume sales in metro cities & capitals
‡ Marketing team stressed on strong Distribution network in 2004
ѼNokia was the leader in GSM market with 74% by 2005
ѼNokia customized phones specifically for Indian market
‡ Sturdy phones for lower income group – truck drivers
‡ Long lasting battery

11. ѼSamsung
ѼiPhone
ѼMotorola
ѼMicromax
Ѽ L.G.
Ѽ Karbonn
Ѽ Lenovo

12. ѼComplacency
ѼLack of innovation
ѼLess stylish in low priced products
ѼUnlike iPhone or Samsung, Nokia Symbian was:
‡ complex, tough
‡ not user friendly
ѼInadequate assessment of the market
‡ Symbian to Windows & not Android

13. 76.1
5.9
38.5
25.6
23
41.8
Nokia Samsung Nokia Samsung Nokia Samsung
2010 2011 2012Mar
Market share (%)
GFK-Nielsen for March 2012

14. ѼDynamic Forecasting of Demands by consumers
ѼSmooth functioning of Applications in the handset
ѼRising Disposable Income of Middle class
ѼMobile phones, tablets now a symbol of status
ѼIncreased competition by new players in market

15. ѼNokia being the 1st entrant has experience
ѼEarly investments in manufacturing
ѼLargest distribution network by partnering with HCL
(Hindustan Computers Ltd.)
ѼIt focused only on mobiles unlike other electronic brands
ѼAffordable mobiles for rural India that comprised 70% of
population

16. ѼStrong Brand Building:-
‡ Instead of promoting various models Nokia promotes platforms
like
 Music
 Photography
ѼFocus on being the ‘mother’ brand rather than ‘another’
brand in mobile market
ѼBranding exploited the emotional need of consumers:-
‡ That is being able to connect with near and dear ones any day
‡ Introduction of local languages so people can greet via SMS
during festivals
‡ A safety device for women in small towns, keep in touch all time

17. ѼNew growth markets
ѼConcentrate on Smartphone's
ѼWell designed and styled set
ѼMini notebooks
ѼUnderstand changing demands by consumer
ѼIntroduction of Android based phones in Nokia

18. ѼWikipedia
ѼGoogle
ѼInterview of Rajeev Suri
ѼInterview of former MD of Nokia – Shiv Kumar
ѼInterview of JagdeepKapoor, Chairman and MD
(Samsika Marketing Consultants)
ѼPersonal Experience from Marketing

19. Thank You