1

NOKIA AND KODAKTHEIR UNSUSTAINED LEADERSHIP (Marketing Myopia)

Ashok Kumar Mahato (P15FC220)Avinash Rao Rathore (P15FC221)Atul Kumar Bhadani (P15FC230)

Ashwani Kumar Mandal (P15FC126)Arka Das Bhowmick (P15FC184)

2

SECTORIAL ANALYSIS: FMCD

India is expected to become the fifth largest consumer durables market in the world by 2025.

The production is expected to increase to USD 104 billion (Rs. 6,86,400 cr.) by 2016.

Compound annual growth rate (CAGR) USD 12.5 billion (Rs.82,500 cr.) in FY 15 from USD 7.3 billion (Rs. 41,580 cr.) in FY 10.

3

SECTORIAL ANALYSIS : Cont.… Urban markets account for the major share 65%, rural

35% of total revenues.

Rural & semi-urban areas projected to expand at a CAGR OF 25% to USD 6.4 billion (Rs. 42,240 Cr.) in FY 15. These two markets are more likely for contributing majorly to consumer durables sales

4

HISTORIC GROWTH: FMCD

FY10 FY11 FY12 FY13 FY14 FY150

2

4

6

8

10

12

14

7.3 7.37.9

8.6

10.8

12.5

GROWTH

GROWTH

5

REASONS OF GROWTH: FMCD

Liberalization

Per-capita Income

Innovation and creativity

Organized Retail

Better advertising and promotion

Better financial schemes

6

Key Segment: FMCD

Consumer Durables

Consumer Electronics

(Brown Goods)

TelevisionPersonal ComputersCD&DVD Players

DigitalCamcorders

Laptops

Consumer Appliances

(White Goods)

Air conditionersRefrigerators

Washing MachinesElectrical Fans

Sewing machines

7

SUB SECTORIAL ANALYSIS : Consumer electronics

The Indian consumer electronics segment is large and growing.

Its anticipation is to reach USD 400 billion (Rs. 26,40,000 cr.) by 2022 from USD 69.9 billion (Rs. 4,61,340 Cr.) in 2012.

CAGR is 24.4% during 2012-2020.

The communication and broadcasting equipment segment constituted 31%, which is the highest share of total production of electronic goods in INDIA in FY13.

8

SWOT ANALYSIS:

• Rapid technological change• Price war with other players• Declining profit margin in

hardware production• Competitors like Motorola,

Apple, Samsung etc.

• Android OS interface can be more effective

• Targeting the developing countries with less competition presence

• Individual marketing

• Not adaptive to technological change

• Older Graphic user Interface

• Weak brand building

• Large Customer Base• Large Developer base• Deep technical talent pool like

java, html, Pascal , python ruby• Big network of distribution

Strength Weakness

ThreatsOpportunities

9

MARKETING MYOPIA: The mistake of paying more attention to the specific

products a company offers than to the benefits and experiences produced by their products.

At some point in company’s development, every industry can be considered a growth industry, based on the apparent superiority of their products.

But in case after case industries have fallen under the shadow of mismanagement.

Theodore Levitt argues that “the history of every dead and dying ‘growth’ industry shows a self-deceiving cycle of bountiful expansion and undetected decay.”

10

JOURNEY OF NOKIA 1971

• The name NOKIA born, inspired by the name Nokiavirta river. Where Fredrick opened his second mill.

1991• Launched 1st digital hand held GSM phones

2002• Introduced 1st video capture phone, along with 3G

handsets.

11

JOURNEY OF KODAK 1892

• The company KODAK was founded in Rochester, New York.

1900• The brownie camera was launched with a price $1.

Brought photography to the mass market.

1994• Apple launched the 1st consumer digital camera, designed

by KODAK.

12

PRODUCT LIFE CYCLE: Nokia

13

PRODUCT LIFE CYCLE: Kodak

14

STRETAGY THAT NOKIA AND KODAK FOLLOWED:

  Strategy 

NOKIA KODAK

1.        

Goal They have always looked upon their products, what they think will be attractive to the customers.So not taking android technology as a competition was their biggest reason for failure.

Though they have tried for a while to change with the trend, but their rate of change was slower than the others. So they couldn’t earn that enough profit, what they were looking for, which tend to their failure.

2. Main offerings and value creation route

They stick to their products, instead of increasing features as per market demand, So people started losing their attraction from their Products.

They were cutting edge products of their, and they had misplaced their products offerings upon customer’s interest.

3. Pricing They were offering their price on products as per their costs, but it seems meaning less to the people, because of they were not satisfied by the value they were providing through it.

They were offering their price on the basis of their manufacturing costs, but in thee then era their value proposition was not up to the mark comparison to their products.

4. Most important process Nokia have always developed their offerings, instead of providing service of their earlier offerings.

Kodak also introduced new products one after another to chase the market trends, but forgot to provide service towards their customer.

15

STRETAGY THAT NOKIA AND KODAK SHOULD FOLLOW:

  Strategy 

NOKIA KODAK

1.        

Goal They should have always appreciate their customer, instead of appreciating their own products,

They should have followed the perfect time to launch their products with the changing trend.

2. Main offerings and value creation route

They should have provided such value added service with their products, such as CRM or proper servicing for their products.

They were running behind the trend, so they left out their early committed products, so instead of these they should also take care of their old commitments by providing proper service.

3. Pricing They should have considered their products price on the basis of the value they were providing to their customer, not on their product based.

 

4. Most important process They should have developed their products or chasing their competitors along with proper value proposition.

 

16

THANK YOU…