AMITY GLOBAL BUSINESS SCHOOL

AHMEDABAD

Project on
International Marketing Management

Topic of the Project on:

Submission by:
Hemant Gurkha
Roll no: 18
MBA 2nd (semester)
Batch no. 2009-2011

Submitted to:
Prof. SanjuThakur

“This Idea of ‘Connecting People’ by Nokia provides Service to

people with the help of the Products”

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Index
1. About the Company
2. Nokia in the region of Asia- Pacific
3. Company’s Profile
4. Product
5. Products that Nokia offers
6. New Products & Operating Highlights
7. Price
8. Price of Some Most Selling Mobile Phones
9. Place
10.Promotion
11.People
12.Process
13.Pay Package
14.SWOT Analysis

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About the Company

Nokia Corporation (NYSE: NOK) is one of the world's largest telecommunications

equipment manufacturers. With headquarters in Keilaniemi of Espoo, Finland, this
Finnish telecommunications company is best known today for its leading range of
mobile phones. Nokia also produces mobile phone infrastructure and other
telecommunications equipment for applications such as traditional voice telephony,
ISDN, broadband access, professional mobile radio, voice over IP, wireless LAN and a
line of satellite receivers.

Nokia provides mobile communication equipment for every major market and protocol,
including GSM, CDMA, and WCDMA.

Nokia was established in 1865 as a wood-pulp mill by Fredrik Idestam on the banks of
Nokia rapids. Finnish Rubber Works established its factories in the beginning of 20th
century nearby and began using Nokia as its brand. Shortly after World War I Finnish
Rubber Works acquired Nokia wood mills as well as Finnish Cable Works, a producer
of telephone and telegraph cables. All three companies were merged as Nokia
Corporation in 1967. The name Nokia originated from the river which flowed through
the town of the same name (Nokia).

In the 1970s Nokia became more involved in the telecommunications industry by

developing the Nokia DX 200, a digital switch for telephone exchanges. In the 1980s,
Nokia offered a series of personal computers called MikroMikko [1], however, these

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operations were sold to International Computers, Ltd. (ICL), which was

later merged with Fujitsu-Siemens AG. Nokia also began developing mobile phones for
the NMT network; unfortunately, the company ran afoul of serious financial problems in
the 1990s and streamlined its manufacturing of mobile phones, mobile phone
infrastructure, and other telecommunications areas, divesting itself of other items, such
as televisions and personal computers.

In 2004, Nokia resorted to similar streamlining practices with layoffs and organizational
restructuring, although on a significantly smaller scale. This, however, diminished
Nokia's public image in Finland, and produced a number of court cases along with, at
least, one television show critical of Nokia.

Recently, Nokia joined other mobile phone manufacturers to embrace Taiwanese

Original Device Manufacturers. Nokia signed a contract with BenQ, a Taiwanese
Original Device Manufacturer, to develop three high-end mobile phones, which are
scheduled to retail by the end of 2005.

Nokia in the Region of Asia – Pacific

A leading player in mobile communications in the Asia Pacific, Nokia first started
operations in the region in the early 1980s. It has since established a leading brand
presence in many local markets, and business has expanded considerably in all areas to
support customer needs and the growth of the telecommunications industry in the
region.

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Nokia's regional corporate headquarters is located at Alexandra

Technopark in Singapore. As the regional hub for Nokia, it is a base from which over
700 staff provide leading-edge technology, product and solutions support to the 20
diverse markets and Nokia offices in the Asia Pacific.

Nokia's regional treasury center - Nokia Treasury Asia - operates out of Singapore as an
in-house bank for Nokia subsidiaries in the Asia Pacific region, while Nokia Research
Centre - the corporate research unit - has offices in Japan and China. Nokia also
manufactures products out of three major facilities in Masan, Korea, and Beijing and
Dongguan in China.

As of January 2004, Nokia streamlined its global organizational structure to strengthen

its focus on convergence, new mobility markets and growth. To address emerging new
business areas in the Mobility era while continuing to grow its leadership in mobile
voice communications, Nokia has four business groups to best meet the unique
dynamics of each business.

Mobile Phones offers a global range of highly competitive mobile phones for large
consumer segments, and develops mobile phones for all major standards and customer
segments in over 130 countries. It is responsible for Nokia's core mobile phones
business, based mainly on WCDMA, GSM, CDMA and TDMA technologies. Mobile
Phones focuses on bringing feature-rich, segmented mobile phones to the global market.

Multimedia brings mobile multimedia to consumers in the form of advanced mobile

devices and applications. Its products have features and functionality such as imaging,
games, music, media and a range of other attractive content, as well as innovative
mobile enhancements and solutions.

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Networks continues to offer leading-edge network infrastructure, technology and related

services, based on major wireless standards to mobile operators and service providers.
Focusing on the GSM family of technologies, the group aims at leadership in GSM,
EDGE and WCDMA radio networks. Our networks have been installed in all major
global markets that have adopted these standards. Networks is also a leading provider of
broadband access and TETRA networks for professional users in the public safety and
security sector.

Enterprise Solutions provides a range of terminals and seamless mobile connectivity

solutions based on end-to-end mobility architecture, dedicated to helping businesses and
institutions worldwide improve their performance through extended mobility. Its end-to-
end solution offerings range from business optimized mobile devices on the front end, to
a robust portfolio of mobile business optimized gateways in the back end including:
wireless email and internet, application mobility, message protection, virtual private
networks, firewalls, and intrusion protection.

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Company’s Profile

Nokia Corporation manufactures mobile devices principally based on global system

for mobile communications, code division multiple access (CDMA), and wideband
CDMA (WCDMA) technologies. The company operates in three divisions:
Multimedia, Enterprise Solutions, and Networks. The Multimedia division focuses on
bringing connected mobile multimedia to consumers in the form of advanced mobile
devices, including 3G WCDMA mobile devices and solutions. The Enterprise
Solutions division enables businesses and institutions extend their use of mobility from
mobile devices for voice and basic data to secure mobile access, content, and
applications. Its solutions include business-optimized mobile devices for end users, a
portfolio of Internet portfolio network perimeter security gateways, and mobile
connectivity offerings. The Networks division provides network infrastructure,
communications, and networks service platforms and professional services to
operators and service providers. Nokia connects people to each other and the
information that matters to them with mobile devices and solutions for voice, data,
imaging, games, multimedia, and business applications. The company also provides
equipment, solutions, and services for its operator and enterprise customers. It sells its
mobile devices primarily to operators, distributors, independent retailers, and
enterprise customers worldwide. Nokia Corporation is based in Espoo, Finland.

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Product

Historically, the thinking was: a good product will sell itself. However there are no
bad products anymore in today's highly competitive markets. Plus there are many laws
giving customers the right to send back products that he perceives as bad. Therefore
the question on product has become: does the organization create what its intended
customers want? Define the characteristics of your product or service that meets the
needs of your customers.

Functionality:
• Quality
• \Appearance
• Packaging
• Brand
• Service
• Support
• Warranty

Some of the Products that Nokia offers to Customers are:

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Nokia 9300 Nokia 7710

Nokia N90
Nokia 8800

Nokia 7280 Nokia 7270 Nokia 6822 Nokia 6681

Nokia 6680 Nokia 6670 Nokia 6630 Nokia 6260

Nokia 6255 Nokia 6235

Nokia 6230i
Nokia 3230

New Products Launching & Operating Highlights

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The Mobile Phones business group increased its consumer offering

during the quarter with the introduction of new models in a range of form factors
and designs. Highlights include:

- Nine new GSM models, including the Nokia 6280, our first mid-range
WCDMA/3G phone.
- Four new CDMA models, growing our mid-range offering in CDMA.
- Premium category devices: the Nokia 8800 and Nokia 8801 stainless steel slide
phones.
- The Nokia 6270 slide phone: one of two new models with 2 mega pixel
cameras.
- The Nokia 5140i camera phone: Nokia's first mobile device to comply with
upcoming EU environmental legislation.
- Two entry-level mobile phones, the Nokia 1110 and Nokia 1600, each offering
technological features designed to reduce the total cost of ownership for users.

ice:

How much are the intended customers willing to pay? Here we decide on a pricing
strategy - do not let it just happen! Even if you decide not to ask (enough) money for
a product or service, you must realize that this is a conscious decision and forms part
of the pricing strategy. Although competing on price is as old as mankind, the
consumer is often still sensitive for price discounts and special offers. Price has also
an irrational side: something that is expensive must be good. Permanently competing
on price is for many companies not a very sensible approach.

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List Price:
• Discounts
• Financing
• Leasing Options

Model Price Approx in Rs

Nokia 3230 Rs.15,000

Nokia 7610 Rs.16,000

Nokia 6230 Rs.12,000

Nokia 6630 Rs.22,000

Nokia 9300 Rs.28,000

Nokia 3660 Rs.11,000

Nokia 1100 Rs.3500

Nokia 6610 Rs.6000

• Allowances.

Price of the Most Selling Mobile Phones of Nokia In the Market

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Place

Available at the right place, at the right time, in the right quantities? Some of the
recent major changes in business have come about by changing Place. Think of the
Internet and mobile telephones

Locations:
• Logistics
• Channel members
• Channel Motivation
• Market Coverage
• Service Levels
• Internet
• Accessibility

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Promotion

How are the chosen target groups informed or educated about the organization and
its products? This includes all the weapons in the marketing armory - advertising,
selling, sales promotions, Public Relations, etc. While the other three P's have lost
much of their meanings in today's markets, Promotion has become the most
important P to focus on.

Advertising:
• Front Line Service

• Public Relations

• Message

• Direct Sales

• Sales

• Media

• Budget

People

All people directly or indirectly involved in the consumption of a service are an important part
of the extended marketing mix. Knowledge Workers, Employees, Management and other
Consumers often add significant value to the total product or service offering.

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Process

Procedure, mechanisms and flow of activities by which services are consumed (customer
management processes) are an essential element of the marketing strategy.
Nokia has rapidly moved from functionally oriented organisation to a business process
oriented mode, and our information systems have not followed the change as fast as
they should. To fill the gap, IM organisation must learn and implement working
methods which enable the creation of business process oriented information systems.
To satisfy these business needs, Nokia has introduced a new development approach for
information systems development. These processes have been created and tested
during the SPI.

In 1996, the starting point of software engineering practices in Nokia Mobile

Phones/Information Management was that there were no clearly defined processes to
guide the software development according to the business needs. Requirement analysis
was usually done with an ad-hoc style without a pre-defined process. For the technical
design and implementation, there was a first version of project manual to follow.

Technical environment from IT point of view at Nokia is great. Market’s leading

brands are utilized in every part of the company and personnel’s skill level is high in
technical issues. In the SPI project, ICL ltd was selected as the vendor to provide a
consulting point of view and to deliver their skills for business analysis and
requirements specification areas.

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Business environment in telecommunication industry is fast

moving and quite young, which means big challenges for information management:
timing is crucial. Because of the changing environment, also organisation is changing
rapidly. Change is an every day phenomenon at Nokia, which helps a lot when changing
working practices as a part the SPI. Skill set needed for the business and requirements
analysis and other parts of the SPI is different from the technical expertise so common
at Nokia. In order to succeed, some time for training was reserved during the SPI.

The technical target environment for the SPI included a R/3 based standard
package as the baseline project environment, a CASE tool to support the IM Process and
an intranet environment where the results were shared.

Pay Packages of the Company

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Key Executives In The Company

Pay Exercised

Mr. Jorma Ollila , 54 $ 4.64M $ 6.00K

Chairman, Chief Exec. Officer and Chairman of the Group Exec.
Board

Mr. Pekka Ala-Pietilä, 48 $ 1.63M $0

Pres, Head of Customer and Market Operations and Member of
Group Exec. Board

Mr. Olli-Pekka Kallasvuo , 52 $ 1.41M $0

Exec. VP, Pres of Mobile Phones, Gen. Mang. of Mobile Phones
and Group Exec. Board Member

Mr. Rick Simonson, 47 N/A $0

Chief Financial Officer, Sr. VP and Member of Group Exec.
Board

Mr. Pertti Korhonen , 44 N/A $ 38.00K

Chief Technology Officer, Sr. VP and Group Exec. Board
member

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SWOT Analysis of the Company: Nokia

Strengths:

Nokia has largest network of distribution and selling as compared to other

mobile phone company in the world. It is backed with the high quality and
professional team in the HRD Dept. The financial aspect is very strong in case of
Nokia as it has many more profitable business. The product being user friendly and
have all the accessories one want that is why is in great demand making it No-1
selling mobile phones in the world. Wide range of products for all class. The re-sell
value of Nokia phones are high compared to other company’s product.

Weakness:
Nokia has many strengths and some weakness. Some of the weakness
includes the price of the product offered by the company. Some of the products are
not user friendly. Not concern about the lower class f the society people. Not
targeting promotion toward them. The price of the product is the main issue. The
service centers in India are very few and scare. So after sales service is not good.

Opportunity:

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Nokia has ample of opportunity to expand its business. With the

wide range in products, features and different price range for different people, it has
an advantage over the competitors around. With the opportunity like ‘Telecom
penetration in India’ being at the peak time, Nokia has an opportunity to increase
its sales as well as the market share. As the standard of living in India has increased
the purchasing power of the people as increased as well, so Nokia has to target
right customer at right time to gain the most out of the situation.

Threats:
Nokia has many threats to tackle to maintain its position as market
leader. The threats like emerging of other mobile companies in the market. The
companies like Motorola, Sony Eriksson, Cingular (U.S) etc. these companies have
come to the stand of tough competition with Nokia in the field of Mobile Phones.
Threats can be like providing cheap phones, new features, new style and type, good
after sales service etc. So, Nokia has to keep in mind the growing competition
around. Nokia has to make strategies to tackle problems in the present and the near
future. The growing demand of WLL network can cause drop in sales for Nokia, as
Nokia provides many less CDMA phones to the customer.

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