A revitalization strategy for Nokia from a B School Graduate view. Intent of this exercise was to provide with an insight on how revitalization can be performed.
2. Rigidity and overconfidence
Lack of consumer research
Avoidance of Porter’s five forces
Missing the smartphone bus to Samsung and
Apple
STRENGTH
• Good distribution
• Reliable Workforce
• Secure OS
• Robust Build
• Value driven
WEAKNESS
• Inflexible
• Lost customer focus
• Product concept
OPPORTUNITY
• Access to mass
markets
• Legacy and Trust in
Brand
• Strategic Alliance
THREATS
• Excessive
competition
• Dynamic market
• Threat of
acquisition
Core
Competence
Extensive
Service
Network
Speed of
Service
Robust
Build
Microsoft
Windows
Platform
Distribution
Network
Advantage
Brand
Image
Overview
What
went
wrong?
3. In 1987 first handheld mobile phone - the Mobira Cityman.In 1991, first digital handheld GSM phone, Nokia 1011
In 1994, the Nokia 2110 was the first phone to feature the Nokia Tune
as a ringtone
In 1996, the Nokia 8110 was the first slider
phone
In 1997, the Nokia 6110 was the first phone to
feature addictive SNAKE game
In 1998, the Nokia 8810 was the first phone to
without an external antenna
In 2002, the Nokia 7650 was the first phone
with a digital camera
In 2002, the Nokia 3635 was the first phone to
be able to record video
In 2005, the Nokia launched N-Series
phone
Then came E- Series, C- Series, X-Series
phone targeting different customers
Then came Nokia with Windows operating
system
Finally we have Nokia ASHA series and
LUMIA series
Focus and
Evolution
4. • Google's backing and a growing application library
• All major mobile phone manufacturers like Samsung,
LG, Sony etc.
ANDROID
• Expected launch of a lower-cost iPhone will open up
a wider addressable market
• Expected to grow faster due to enterprise and
emerging market share gains
iOS
• Windows Phone will solidify its position as the
number three O.S. with incremental share gains
WINDOWS
• BlackBerry OS share will decline due to tepid
BlackBerry 10 reception
• BlackBerry volume will remain flat thanks to
enterprises with security or other specialized needs
BLACKBERRY
Smartphone OS
Year 2012 2013(P) 2017(P)
Android 64.10% 75.30% 68.30%
iOS 18.80% 16.90% 17.90%
Windows Phone 2.70% 3.90% 10.20%
Blackberry OS 5.20% 2.70% 1.70%
Others 1.20% 1.90%
Market Share (in %)
Comparison of Smartphones Operating SystemsIndustry
Analysis
High population
Burgeoning rich and middle class
Low penetration of smartphones
Highly connected socially
Demand of Applications
Target Market
Profile
5. NOKIA
Blue Collared, Simplicity
seeker, Value driven,
Professional, Privacy seeker
Used as smartphone for daily
purpose providing all
functionalities expected
Innovative, Trendy,
Stylish, Affordable,
Reliable, Long Life
Smartphone, Application
friendly, Extended Battery
Life, Substitutes Cameras,
Trendy
User Imagery Usage Imagery
Brand PersonalityProduct Attributes
Robust design, high battery
life, secure, unmatched
camera clarity
Simplistic, Reliable and
Secure Smartphone with
excellent longevity
Trendsetter, Go Getter, Smart
user with professional touch.
Functional Benefit Experiential
Benefit
Symbolic Benefit
ATTRIBUTES
BENEFITS
Nokia stands by its motto of “connecting people” by
facilitating trendy, reliable and secure communication
devices achieved by customer focus, constant innovation
and flexibility in the revived organization
Re-Positioning statement
Organizational
repositioning
Software
Innovation
Focus
Customer
Focus
Enhanced
customer
lifetime
value
Flexibility In
Organization
Leveraging
strategic
associations
Brand Definition
New
Products
launched
Renewed
Passion Software
Upgrade Applications
Enabled
Change in
Ideology Investment
In Research
Ambitious
Marketing
Reviving the Brand
6. Establish
Emotional
Connect
Targeted
communication
Eventual
movement to
other TGs
• Nokia still has a strong connect with
the age group 30-49 years old which
we would address as the Nokia
Cohort.
• Strategy is to focus on this cohort
primarily during the initial phase of
revival.
• These would create a loyal customer
base for the brand to build on to
further
Nokia Ringtone
in every
commercial
New commercials
randomly
showing old
products at
corners
Campaign & schemes
for customers who still
own dated Nokia
Handsets
Focused
Product for the
cohort
Play previous
famous ad
campaigns for
instant connect
(Short duration)
o Ease of use
o Long battery life
o Robust and professional
o Reliable
o Low failure rate
o Inbuilt security applications
o Service to delight
o Establishes instant recall
o Creates curiosity
o Creates connect
o Lays foundation
o Filling up absence
o Enable recap
o Reinstate Ability to
excel
o Gain word of mouth
publicity
o 6600 phone
o 1100
o Engage
o Communicator
o Express music
o N Series
o Discounts on exchange
o Facebook campaigns
o Creates equity
o Builds credibility
o Brings back the old
feeling
Recapturing – The Nokia Cohort
7. BONDING – Goal to
be reached
ADVANTAGE – Pricing and
safety
PERFORMANCE - Undoubtable
RELEVANCE – Key area of focus
PRESENCE – Still alive
Does it offer me something?
Does it offer something better than others?
Can it deliver?
Nothing else beats it
Do I know about it?
WEAK
RELATIONSHIP
STRONG
RELATIONSHIP
Functional to
Aspirational
Aggressively pursue
the Phablet Market
Tie up with Network
Carriers
• Create excitement, thrill and focus on trendiness quotient to make Nokia phones aspirational
• Every user of Nokia should be aspiring to use the next level phone offered by Nokia itself
• Till 2018 – 120 million phablets are expected to be shipped compared to
20million in 2012 showing the vast opportunity this segment has.
• Aligned with Nokia’s core competence due to application in Enterprise
Acquiring new customers
8. Nokia for Gamers
Nokia for Trendsetters
Nokia for GirlsNokia for Photo freaks
Product
Focus
Supports all
smartphone
apps
Unmatched
quality
Upgrading
the feature
phone users
Capitalizing
on falling
Camera sales
Phones that
match your
personality
Long battery
life
Research Team –
Develop all trending
applications for the
Windows platform
Phones for Emerging
markets
Phone for all –
Products that are
relevant to each
social class
Extended Warranty –
Products that last
longer
Security Challenge –
Invite hackers to crack
the Nokia OS
Enterprise Solutions
–
Leveraging the
Microsoft equity and
extending those
features on phone
Exclusive Nokia
Stores- to consult
users and assist them
Nokia E-Book reader –
facilitate reading for
voracious readers
Using the P’s – Product & Place
9. Capture old customers Adding new segments to the existing customer base
Employee Branding
Campaign -
Internal Branding
exercise to
rejuvenate passion
amongst all stake
holders
Social Media
Campaign –
Various twitter
handles like
#myFirstNokia
#NokiaClickIt
#ItSurvives
Guerilla Marketing –
Social Media
campaign
#TradedThis – post
pictures of cell
phones which were
traded to buy your
new Nokia
Print Media -
Innovative ads
showing “We are
Back” teasers with
clues like Bounce,
Snake, 6600 and other
symbolic references.
Nationwide campaign
Customer Up
gradation campaign
– Incentives on
switching to a Nokia
smartphone from a
feature phone
Corporate
Partnerships –
Strategic tie
ups with
companies to
modify device
according to
their
specifications
TV Show Tie ups –
Coke studios sound
partner
Endorsements –
Customer
endorsement route
where users are
shown in commercials
CSR Campaign–
Recycling of phones
Influencer Focus –
Blogs, Articles and
comparative study of
Nokia phones on sites
like GSM Arena, XDA
Developers
Using the P’s - Promotions
10. “A goal is a dream with a deadline” – Napoleon Hill