NOKIA

Fredrik Idestam, founder of Nokia. Leo Mechelin

The Nokia House, Nokia's head office located by the Gulf of Finland in Keilaniemi, Espoo, was constructed between 1995 and 1997. It is the workplace of more than 1,000 Nokia employees.

Type : Public – Oyj (OMX: NOK1V,NYSE: NOK, FWB:NOA3)

Founded: Tampere, Finland (1865) incorporated in Nokia (1871)Founder Fredrik Idestam

Headquarters  Espoo, FinlandArea served WorldwideIndustry Telecommunications Internet Computer software

Nokia 

Nokia is engaged in the manufacturing of mobile devices and in converging Internet and

communications industries, with 128,445 employees in 120 countries, sales in more than

150 countries and global annual revenue of EUR 50.7 billion and operating profit of 5.0

billion as of 2008.It is the world's largest manufacturer of mobile telephones: its global

device market share  was about 37% in Q1 2009, down from 39% in Q1 2008 and

unchanged from Q4 2008.Nokia produces mobile devices for every major market

segment and protocol, including, CDMA, and W-CDMA (UMTS). Nokia offers Internet

services that enable people to experience music, maps, media, messaging and games.

Nokia's subsidiary Nokia Siemens Networks produces telecommunications network

equipment, solutions and services. The company is also engaged in providing digital map

information through its wholly-owned subsidiary Navteq.

Nokia has sites for research and development, manufacture and sales in many countries

throughout the world. As of December 2008, Nokia had R&D presence in 16 countries

and employed 39,350 people in research and development, representing approximately

31% of the group's total workforce. The Nokia Research Center, founded in 1986, is

Nokia's industrial research unit consisting of about 500 researchers, engineers and

scientists. It has sites in seven countries: Finland, China, India, Kenya, Switzerland, the

United Kingdom and the United States. Besides its research centers, in 2001 Nokia

founded (and owns) INdT – Nokia Institute of Technology, a R&D institute located in

Brazil. Nokia operates a total of 15 manufacturing facilities located

at Espoo, Oulu and Sal, Finland;Manaus, Brazil; Beijing, Dongguan and Suzhou, China;

Farnborough, England; Komárom, Hungary; Chennai, India;Reynosa, Mexico; Jucu,

Romania and Masan, South Korea. Nokia's Design Department remains in Salo, Finland.

Nokia's history starts in 1865 when mining engineer Fredrik Idestam established

a groundwood pulp million the banks of the Tammerkoski rapids in the town of Tampere,

in southwestern Finland, and started manufacturing paper.In 1868, Idestam built a second

mill near the town of Nokia, fifteen kilometers (nine miles) west of Tampere by the

Nokianvirta river, which had better resources for hydropower production. In 1871,

Idestam, with the help of his close friend statesman Leo Mechelin, renamed and

transformed his firm into a share company, thereby founding the Nokia Company, the

name it is still known by today.

The name of the town, Nokia, originated from the river which flowed through

the town. The river itself, Nokianvirta, was named after the archaic Finnish word

originally meaning a small, dark-furred animal that lived on the banks of the Nokianvirta

river. In modern Finnish, noki means soot and nokia is its inflected plural, although this

form of the word is rarely if ever used. The old word, nois (pl. nokia) or nokinäätä ("soot

marten"), meant sable. After sable was hunted to extinction in Finland, the word was

applied to any dark-furred animal of the genus Martes, such as the pine marten, which are

found in the area to this day.

Mission:

Vision and strategy

Our promise is to help people feel close to what is important to them

Nokia is a consumer led company. There is a progressive and continuous increase in consumer involvement with technology and communications globally. People are broadening their modes of communication to include the web and, social networks are becoming central to how people communicate.

People want to be truly connected, independent of time and place, in a way that is very personal to them. And, Nokia’s promise is to connect people in new and better ways.

Nokia’s strategy is to build trusted consumer relationships by offering compelling and valued consumer solutions that combine beautiful devices with context enriched services.

Objectives:

• To set up a new brand image for Nokia’s mobile phone: Creative and Trendy• To meet the needs of the niche: Young and Rich customers who are pursuing

stylish lifestyle

• To maximize current profit

• To lead the mobile phone market with innovative and modern new products

Group Executive Board

Olli-Pekka KallasvuoPresident and CEO of Nokia Corporation 

Esko AhoExecutive Vice President, Corporate Relations and ResponsibilityRobert AnderssonExecutive Vice President, Devices Finance, Strategy and Sourcing 

Simon Beresford-WylieChief Executive Officer, Nokia Siemens Networks 

Timo IhamuotilaExecutive Vice President, SalesHallstein MoerkExecutive Vice President, Human Resources 

Richard A. SimonsonExecutive Vice President, Chief Financial Officer 

Anssi VanjokiExecutive Vice President, Markets 

Dr. Kai ÖistämöExecutive Vice President, Devices

Production units

Networks technology Mobile devices and technology China BrazilFinland China

FinlandGermany Great BritainIndia Hungary

IndiaMexicoRomaniaSouth Korea

Nokia’s Financial Conditions:

0

5

10

15

20

25

30

35

Revenue GrossProfi t

Operat i ngProfi t

NetProfi t

200320042005

The History of

How it all began – the birth of Nokia

Nokia started by making paper – the original communications technology The history of Nokia goes back to 1865. That was when Fredrik Idestam built a

wood pulp mill on the banks of the Tammerkoski rapids, in southern Finland. A few years later, he built a second mill by the Nokianvirta River – the place that gave Nokia its name.

A mining engineer by trade, Idestam brought a new, cheaper paper manufacturing process to Finland from Germany.

Nokia Ab added electricity generation to its business activities in 1902

Who was Fredrik Idestam?

A mining engineer by trade, Idestam brought a new, cheaper paper manufacturing process to Finland from Germany.

It was a great success. Idestam’s invention won a bronze medal at the Paris World Exposition in 1867, and he is considered to be the father of Finland’s paper industry.

1898: Finnish Rubber Works founded

Arvid Wickström founds Finnish Rubber Works, which will later become Nokia's rubber business.

1912: Finnish Cable Works founded

Eduard Polón starts Finnish Cable Works, the foundation of Nokia's cable and electronics businesse India, Mexico, Romania, South Korea.

1960: Firstin electronics department

Cable Works establishes its first electronics department, selling and operating computers.

1962: First in-house electrical device

The Cable Works electronics department produces its first in-house electrical device - a pulse analyzer for nuclear power plants.

1967: The merger

Nokia Ab, Finnish Rubber Works and Finnish Cable works formally merge to create Nokia Corporation.

From paper mill to mobile phones

The Move to mobile 1968-1991

The newly formed Nokia Corporation was ideally positioned for a pioneering role in the early evolution of mobile communications. As European telecommunications markets were deregulated and mobile networks became global, Nokia led the way with some iconic products...

1981: The mobile era begins

Nordic Mobile Telephone (NMT), the first international mobile phone network, is built.

1982: Nokia makes its first digital telephone switch

The Nokia DX200, the company’s first digital telephone switch, goes into operation.

1984: Mobira Talkman launchedNokia launches the Mobira Talkman portable phone.

1994: Nokia Tune is launchedNokia launches the 2100, the first phone to feature the Nokia Tune.

1994: World’s first satellite call

The world’s first satellite call is made, using a Nokia GSM handset.

1997: Snake – a classic mobile game

The Nokia 6110 is the first phone to feature Nokia’s Snake game.

1998: Nokia leads the world

Nokia becomes the world leader in mobile phones

Nokia’s story continues

With 3G, mobile multiplayer gaming, multimedia devices...

2002: First 3G phone

Nokia launches its first 3G phone, the Nokia 6650.

2003: Nokia launches the N-Gage

Mobile gaming goes multiplayer with the N-Gage.

2005: The Nokia Nseries is born

Nokia introduces the next generation of multimedia devices, the Nokia Nseries.

2005: The billionth Nokia phone is sold

Nokia sells its billionth phone – a Nokia 1100 – in Nigeria. Global mobile phone subscriptions pass 2 billion.

2006: A new President and CEO –   Nokia today

Olli-Pekka Kallasvuo becomes Nokia’s President and CEO; Jorma Ollila becomes Chairman of Nokia’s board. Nokia and Siemens announce plans for Nokia Siemens Networks.

2007

Nokia recognized as 5th most valued brand in the world. Nokia Siemens Networks commences operations. Nokia launches Ovi, its new internet services brand.

2008

Nokia's three mobile device business groups and the supporting horizontal groups are replaced by an integrated business segment, Devices & Services.

Number of employees

Sales

Marketing principles   of NOKIA

There are many priorities within a business, but in a marketing orientated company like Nokia, many of the following principles will be high on the agenda: 1. Customer satisfaction: Market research must be used to find out whether customers' expectations are being met by current products or services. 

2. Customer perception: this is based on the images consumers have of the organization and its products, this can be based on; value for money, product quality, fashion and product reliability. 

3. Customer needs and expectations: This is anticipating future trends and forecasting for future sales. This is vital to any organization if they wish to keep their entire current market share and develop more. 

4. Generating income or profit: This principle clearly states that the need of the organization is to be profitable enough to generate income for growth and to satisfy stakeholders in the business. Although satisfying the customer is a big part of a companies plans they also need to take into account their own needs, such as: 

5. Making satisfactory progress: Organizations need to make sure that their product is developing along with the market, if a product is developing well, then income should increase, if not then the marketing strategy should be revised. 

6. Be aware of the environment: An organization should always know what is happening within their designated market, if it is changing, saturation, technological advances, slowing down or rapidly growing, being up to date on this is essential for companies to survive. 

Marketing Mix of Nokia

Products

  Mobile phones   Classic series – The Mobira series

Original series

  1000–9000 series

Nokia 2000 series – Basic series

  Nokia 3000 series – Expression series

Nokia 5000 series – Active series

Nokia 6000 series – Classic Business series

Nokia 7000 series – Fashion and Experimental series

Nokia 8000 series – Premium series

  Nokia 9000 series – Communicator series (discontinued)

  Special function phones

Nokia Eseries – Enterprise series

Nokia Nseries – Multimedia Computer series

Nokia N-Gage – Mobile gaming devices (discontinued)

Vertu – Luxury phones

Cardphones (PCMCIA)

Concept phones

  Other products

Digital television

ADSL modems

WLAN products

Telephone switches

GPS products

TETRA

Internet tablets

Price

Psychological pricing

Consider the psychological approach rather than economic approach LV is a high-end brand

Therefore, people are willing to spend on one a “LV-branded” mobile phone

Market-Skimming Pricing

Set a high price Skim the maximum revenue

Decrease the price gradually

Intiailly we will set a high price around $1200, gradually decrease and replaced by a newer model

Maintain a high profit margin

Promotion

Printed advertisement Goal: to create a new reason to buy our new cell phone

Focus on masculine and feminine magazine, etc

Car

Audio/Video products

Cosmetics

Fashion

Online - Advertisement

Bid on cell-phone before the launch of our product

TV advertisement

Demonstrate its outlook and style

Encourage people to bid our product online

• Road show advertisement.• Objective: raise awareness of mass people

• Large banner and poster in shopping district• Urge people to experience new product at place of selling.

Place-

Nokia products are available in whole over the world.

This refers to the chosen outlets for a product or service, for a product to be very successful it must be easy to access, Mobile phones are very easy to access nowadays, they are sold in supermarkets, specialized outlets (either by network or brand) and all major department stores.

 

Competitors

Many Competitors in this area

Motorola

Sony Ericsson

Samsung

LG

Sharp

Panasonic

Nokia 37.2%

Motorola 17.3%

Samsung 9.8%

Siemens 8.5%

Sony-Ericsson 5.2%

STRENGTH

-The Leader in the Industry

OPPORTUNITIES

-Close cooperation with Suppliers and

-Strong Financial Support for Investment

-Strong R&D Unit

-Strong Customers Relation

Intermediaries

-Tax Reduction

-New Demand Created From the Advancement of Technology

WEAKNESS

-Lack of Innovation

-Human Resources Management

THREATS

-Keen and Strong Competitors

-Saturation in Current Market

-Challenges of Continuous Technological Development

Conclusion

• Nokia currently still the no.1 in mobile industry• Its growth in profit not comparable to main competitor -

Motorola

• New series of phone: “exquisite” series

• Target on wealthy young adults

• To maintain leadership position and generate more profit to Nokia

STRENGTH

-The Leader in the Industry

-Strong Financial Support for Investment

-Strong R&D Unit

-Strong Customers Relation

OPPORTUNITIES

-Close cooperation with Suppliers and Intermediaries

-Tax Reduction

-New Demand Created From the Advancement of Technology

WEAKNESS

-Lack of Innovation

-Human Resources Management

THREATS

-Keen and Strong Competitors

-Saturation in Current Market

-Challenges of Continuous Technological Development