Nokia makes a comeback to mobile phones, as Microsoft sells feature phone business

Iconic mobile phone brand Nokia has confirmed that it is returning to the mobile phones and tablet
market, about two and half years after selling its devices and services business to Microsoft.

The Finland based company has signed a strategic brand and intellectual property licensing
agreement with a newly formed Finland firm HMD Global to develop Nokia-branded mobile
phones and tablets for the next ten years.

As per the agreement, Nokia has granted an exclusive global license to HMD Global (excluding
Japan) and will receive royalty payments for sales of Nokia-branded mobile products, covering
both brand and intellectual property rights. The company said HMD's new smartphone and tablet
portfolio will be based on Android platform.

Nokia will provide HMD with branding rights and cellular standard essential patent licenses in
return for royalty payments and will take a seat on HMD's Board of Directors but won't be making
any financial investment or holding equity in HMD.

Microsoft sells feature phone biz to HMD Global & Foxconn

Earlier in the day, Microsoft announced that it would be selling its feature phone business to HMD
Global and Foxconn subsidiary FIH Mobile for $350 million, to focus on Windows 10 Mobile and
support Lumia phones.

As part of this deal, Microsoft will transfer substantially all of its feature phone assets, including
brands, software and services, care network and other assets, customer contracts, and critical
supply agreements.

HMD said that it has conditionally agreed to acquire from Microsoft the rights to use the Nokia
brand on feature phones, and certain related design rights to complete its portfolio of Nokia
branding rights.
It claimed these agreements would make them the sole global licensee for all types of Nokia-
branded mobile phones and tablets. HMD said that it intends to invest over $500 million over the
next three years to support the global marketing of Nokia-branded mobile phones and tablets. This
capital has been raised via its yet-undisclosed investors and profits from the acquired feature phone
business.

Once the Microsoft transaction closes, HMD will be led by former Nokia executive Arto Nummela
as CEO. Nummela is currently the head of Microsoft's Mobile Devices business for Greater Asia,
Middle East and Africa as well as Microsoft's global feature phones business.

Florian Seiche, who is currently Senior Vice President for Europe Sales and Marketing at
Microsoft Mobile, will be the president at HMD.

"We will be completely focused on creating a unified range of Nokia-branded mobile phones and
tablets, which we know will resonate with consumers. Branding has become a critical differentiator
in mobile phones, which is why our business model is centered on the unique asset of the Nokia
brand and our extensive experience in sales and marketing. We will work with world class
providers in manufacturing and distribution to move quickly and deliver what customers want"
said Arto Nummela, CEO-designate of HMD.

Nokia's tie-up with FIH Mobile

Nokia Technologies said it has also signed an agreement with FIH mobile that will own the
remainder of Microsoft's feature phone business assets, including manufacturing, sales and
distribution.

As per the agreement, both the companies will form a collaboration framework to "support the
building of a global business for Nokia-branded mobile phones and tablets".

This agreement will also give HMD full operational control of sales, marketing and distribution of
Nokia-branded mobile phones and tablets with with exclusive access to the global sales and
distribution network that FIH will be acquiring from Microsoft along with access to FIH's device
manufacturing, supply chain & engineering capabilities and its suite of proprietary mobile
technologies and components.

"Today marks the beginning of an exciting new chapter for the Nokia brand in an industry where
Nokia remains a truly iconic name. Instead of Nokia returning to manufacturing mobile phones
itself, HMD plans to produce mobile phones and tablets that can leverage and grow the value of
the Nokia brand in global markets. Working with HMD and FIH will let us participate in one of
the largest consumer electronics markets in the world while staying true to our licensing business
model." said Haidamus, president of Nokia Technologies.

Dealer Mapping and Dealer Satisfaction in Microsoft Mobile Phones (Nokia)

Dealer is a person or firm engaged in commercial purchase and sale. Dealer may signify firms that
buy or resell products at retail or wholesale basis. A producer cannot sell all his products directly
to consumer, he has to depend upon intermediaries to push, off, his products. A dealer is an
intermediary who helps to market a product. A dealer is one who purchase and sells products. A
dealer may be a wholesaler or a retailer or a distributor or any agents.

The volume of sales depends on the efficiency of a dealer who assesses the psychology of
consumers and takes appropriate steps to sell a product. It is the dealer who suggests to the
manufacturers the suitable media of advertisement and other promotional tools. Dealers are
searching for new marketing strategies to attract and hold customers. Dealers include all activities
involved in selling goods and services to those buying for resale or business use. Dealers buy
mostly producers and sell mostly to retailers or industrial consumers.

DEALER SATISFACTION IN NOKIA

Dealer wants high marginal gain from manufacturers. The main objective of dealership is earning
profits. Dealership business is different from other business. The peculiar feature of a dealer is
dealing with one or more similar products. Dealers earn commission for goods sold from the
manufacturers. The commission depends upon the value of sales both cash and credit. Now a
days the demand for cement increases every year.
The manufacturers are not able to cover all the consumers directly. With the help of dealers only
they can reach the consumers. Dealer excepts income from business because there is some
guarantee of getting more commission from this business. Dealers demand more commission from
the manufactures, they cover the entire market within their locality. They also sell mobile phones
in credit to regular customer.

HOW DEALER WILL BE SATISFY

PROMPT DELIVERY

For every business competition is inevitable, Knowledge, about the direct, reasonable price,
prompt delivery etc., are the only ways in which one can attract more consumers. Delivery of
every goods to the place of consumers will attract every consumer. When there is a delay a small
delay of one or two days or even hours may cause a great set back in consumer satisfaction.

There are various ways we can satisfy the consumers. One among them is a regular supply and
prompts delivery of goods to customers. Even though quality is excellent and the price is
reasonable we cannot satisfy the consumers, unless there is prompt delivery of goods.

IMMEDIATE REALIZATION OF MONEY AFTER SALES

Dealers will get their commission immediately after every sale. This will motivate the dealers to
increase the sales volume. The sales are increased then income will also be increased. Generally
commission will be paid in every month or for every sale. More sales more commission and less
commission is the doctrine of dealership.

CREDIT FACILITIES

Business is based on bonafide good faith, confident and mutual trust. Long ago business was
based on cash basis. But now business is based on mercantile basis (Credit basis). More over cash
basis of business in also not possible for every business because of want of funds. Mercantile
basis of business is globally accepted and very easier for the business people.

Credit facilities to regular customer and genuine consumers will enhance the business. There some
consumers who buy mostly in credit and make their payment at regular intervals. There is some
agreement between the buyer and seller for a credit purchase. This agreement also covers terms
of payment trade discount, cash discount etc., for the smooth ant regular payment of cash. Credit
facility system is beneficial to both the buyers and sellers. There will be tremendous improvement
on both the sides. Allowing credit to consumers is also useful for growth and expansion.

GIFTS FROM THE COMPANY

Some reputed companies will provide a number of gifts to its dealers and distributors. Their gifts
are allowed to improved sales in all areas. Dealers will be much motivated when gifts are offered
by manufactures. Gifts are a special kind of incentives, which will pursue the dealers to increase
their sales.

The main objectives of offering gifts to dealer and distributors are to enhance or improve sales to
the maximum level. The competition can be easily managed when gifts are offered to dealer, the
number of types of gifts is as follows.

Value of sales in Rupees.

Value of sales in units
Seasonal gifts.
Gifts to dealers will play a greater role in marketing. This will motivate the full dealers to do better
and this will also encourage better sales.

When we talk about customer satisfaction, we talk about creativity. Creativity allows us to
handle or diffuse problems at hand or later on in the process of conducting the everyday
business. We talk about how, or rather what, does the organization have to do to gain not
only the sale but also the loyalty of the customer. We want to know the payoff of the trans-
action both in the short and long term. We want to know what our customers want.

We want to know if our customers are satisfied. Satisfaction, of course, means that what we
delivered to a customer met the customers approval. We want to know if customers are
delighted and willing to comeback, and so on.

As important as delightfulness is, some of us minimize it, or even totally disregard it. At this point,
we fail. Some of the issues that will guarantee failure in sales, satisfaction, and loyalty are:
Employees must adhere to a rigid chain of command
Employees are closely supervised
 Conflictin whatever formis not allowed
Rewards are based on carrot-and- stick

Level 1.

Expectations are very simple and take the form of assumptions, must have, or take it for
granted

Level 2.

Expectations are a step higher than that of level 1 and they require some form of satisfaction
through meeting the requirements and/or specifications
Level 3.

Expectations are much higher than for levels 1 and 2.Level 3 requires some kind of
delightfulness or a service that is so good that it attracts me to it

Brand image
Hide links within definitions Show links within definitions.

Impression in the consumers' mind of a brand's total personality (real and imaginary qualities and
shortcomings). Brand image is developed over time through advertising campaigns with a
consistent theme, and is authenticated through the consumers' direct experience. See also corporate
image

Brand Value Model

We believe consumers try to optimize value within a product or service category. Consumers
therefore assign utilities (worth) to price, each relevant performance attribute, and brand equity.
Consumers then trade off performance attributes and brand equity against price in order to
optimize
value. The relationships between the individual values of price, performance attributes and brand
equity is summative and equal to total brand value.

The values each respondent places on price, performance attributes, and brand equity define their
value equation for a product or service category. We can derive these values at the respondent
level using modified trade-off exercises.

A key advantage of the Brand Value Model is that it allows the calculation of utilities and
importances at the individual consumer level. This acknowledges the highly individual nature of
the evaluation of products and services in many categories. Furthermore, it permits an exploration
of value structures across existing consumer segments or the development of new segments based
on the components of the value equation.

We believe the total value of a brand in a particular product/service category is composed of three
parts. One part is due to the physical and readily identifiable (and replicable) features of the brand
that delivers specific, tangible benefits to the purchaser, thus impacting purchase choice. We call
these the tangible product features. The second part is due to some perceived intrinsic value
associated with the brand name due to such things as the image transferred to the purchaser, trust,
longevity in the marketplace, social responsibility, consistent performance, and so forth (i.e. the
intangibles), and impacting purchase choice. We refer to this as the brand's equity. The third
component is the price/cost of the product. Thus, the total value (or utility) of a product or service
is a function of

1.) its physical, tangible, deliverable features,

2.) its brand equity, and

3.) its price.

In addition, we believe that a brand's value is directly related to customer loyalty. That is, if a
particular brand maintains a significantly higher perception of value to a consumer than any other
brand in the category, that consumer will consistently purchase that brand and consistently
recommend that brand to others. Conversely, as brands in a category become less
differentiated in terms of both tangible and intrinsic features, price becomes the major
differentiator of value, and thus, there is little loyalty.

We observe that people tend to trade off price against the combined bundle of tangible product
features and brand equity in order to optimize total utility or total value.
We also note that the intrinsic part of a brand's value, brand equity, may be positive or negative,
meaning that a brand name can be used to increase overall utility of a choice, or may detract from
the overall utility of a choice.

The estimate of brand equity is relative to the other brands in the measured competitive set. This
provides the base price point for estimating brand equity in terms of its absolute rupee value.