TABLE OF CONTENT

S.No Particulars Page.No

1 Introduction 1

2 Company Profile 1

3 Retail Practices

A. Location Strategies 3

B. Store Layout 4

C. Store Design 6

D. Store Atmospherics 7

E. Category Management 8

F. Inventory Management 10

G. Supply chain 11

H. Logistics Model 14

I. Visual Merchandising 16

J. Store Branding 18

K. IMC 19

L. Pricing Strategies 22

M. E-Retailing Strategies 22

3 Conclusion 23

4 Reference 24

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 RETAIL PRACTICES
1. INTRODUCTION:
Retailing is the distribution process of a retailer obtaining goods or services and selling
them to customers for use. This process is explained through the supply chain. A retail sale
occurs when a business sells a product or service to an individual consumer for his or her own
use. The transaction itself can occur through a number of different sales channels, such as
online, in a brick-and-mortar storefront, through direct sales, or direct mail. The aspect of the
sale that qualifies it as a retail transaction is that the end user is the buyer.
Indian retail industry has emerged as one of the most dynamic and fast-paced industries
due to the entry of several new players. Total consumption expenditure is expected to reach
nearly US$ 3,600 billion by 2020 from US$ 1,824 billion in 2017. It accounts for over 10
percent of the country’s gross domestic product (GDP) and around eight per cent of the
employment. India is the world’s fifth-largest global destination in the retail space.
India ranked 73 in the United Nations Conference on Trade and Development's Business-to-
Consumer (B2C) E-commerce Index 2019. India is the world’s fifth largest global destination
in the retail space and ranked 63 in World Bank’s Doing Business 2019.
India is the world’s fifth largest global destination in the retail space. In FDI Confidence
Index, India ranked 16 (after US, Canada, Germany, United Kingdom, China, Japan, France,
Australia, Switzerland, and Italy.
Here I have discussed the Retail Practices of the company NOKIA.

2. COMPANY PROFILE:
NOKIA is a Finnish multinational corporation founded on 12 May 1865 as a
single paper mill operation. Through the 19th century the company expanded, branching into
several different products. In 1967, the Nokia corporation was formed. In the late 20th century,
the company took advantage of the increasing popularity of computer and mobile phones.
However, increased competition and other market forces caused changes in Nokia's business
arrangements. In 2014, Nokia's mobile phone business was sold to Microsoft.

In 1967, Nokia Corporation was formed through the merger of the three companies. The
new company manufactured products including paper items, car and bicycle tires, rubber boots,
communications cables, televisions and other consumer electronics, personal computers,
generators, robotics, capacitors, Military technology and equipment (such as the SANLA
M/90 device and the M61 gas mask for the Finnish Army), plastics, aluminum and chemicals.

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 Fig.2.1: Logo of NOKIA

In 1960, a cable division of the Nokia group had been formed. In 1962, it produced a pulse
height analyzer used in nuclear power plants. In 1967, an electronics division within the Nokia
corporation was formed. It operated for the next fifteen years, sometimes at a loss. Nokia
researchers were encouraged to develop their own projects. This may have contributed to
Nokia's focus on mobile phone technologies.

In 2018, Nokia employed approximately 103,000 people across over 100 countries, did
business in more than 130 countries, and reported annual revenues of around €23 billion. Nokia
is a public limited company listed on the Helsinki Stock Exchange and New York Stock
Exchange. It is the world's 415th-largest company measured by 2016 revenues according to
the Fortune Global 500, having peaked at 85th place in 2009. It is a component of the Euro
Stoxx 50 stock market index.

The company has operated in various industries over the past 150 years. It was founded
as a pulp mill and had long been associated with rubber and cables, but since the 1990s has
focused on large-scale telecommunications infrastructures, technology development, and
licensing. Nokia is a major contributor to the mobile telephony industry, having assisted in the
development of the GSM, 3G and LTE standards (and currently in 5G), and was once the
largest worldwide vendor of mobile phones and smartphones. After a partnership
with Microsoft and subsequent market struggles, its mobile phone business was bought by
Microsoft, creating Microsoft Mobile as its successor in 2014. After the sale, Nokia began to
focus more extensively on its telecommunications infrastructure business and on Internet of
things technologies, marked by the divestiture of its Here mapping division and the acquisition

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of Alcatel-Lucent, including its Bell Labs research organization. ] The company then also
experimented with virtual reality and digital health, the latter through the purchase of Withings.
The Nokia brand has since returned to the mobile and smartphone market through a licensing
arrangement with HMD Global. Nokia continues to be a major patent licensor for most large
mobile phone vendors. As of 2018, Nokia is the world's third-largest network equipment
manufacturer.

The company was viewed with national pride by Finns, as its mobile phone business
made it by far the largest worldwide company and brand from Finland. At its peak in 2000,
during the telecoms bubble, Nokia alone accounted for 4% of the country's GDP, 21% of total
exports, and 70% of the Helsinki Stock Exchange market capital

3. RETAIL PRACTICES:
A. LOCATION STRATEGIES:
"Right Place, Right choice" Location is the most important ingredient for any business that
relies on customers, and is typically the prime consideration in a customers store choice.
Locations decisions are harder to change because retailers have to either make sustainable
investments to buy and develop real estate or commit to long term lease with developers. When
formulating decision about where to locate, the retailer must refer to the strategic plan:
Investigate alternative trading areas, Determine the type of desirable store location, Evaluate
alternative specific store sites. The primary goal of the most retailers is to sell the right kind of
merchandise and nothing is more central to the strategic thrust of the retailing firm.
Merchandising consists of activities involved in acquiring particular goods and services and
making them available at a place, time and quantity that enable the retailer to reach its goals.
Merchandising is perhaps, the most important function for any retail organization, as it decides
what finally goes on shelf of the store.

Importance of Location in Retail Business

 Business location is a unique factor which the competitors cannot imitate. Hence, it
can give a strong competitive advantage.

 Selection of retail location is a long-term decision.

 It requires long-term capital investment.

 Good location is the key element for attracting customers to the outlet.

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  A well-located store makes supply and distribution easier.

 Locations can help to change customers’ buying habits.

Market location: Nokia counts profoundly on its sales in key market regions. More than
half of sales arrive from operations in Europe. Another vital market for Nokia is China, and,
finally, Asia-Pacific region.

B. LAYOUT
It’s quite the same all over the world: Nokia's layout is known throughout the world, with
its phrase "connecting people"
FREE-FLOW
The free-flow layout philosophy is almost a rejection of the others. With free-flow,
there is no deliberate attempt to force customers through predictable traffic patterns; wandering
is encouraged. Therefore, with free-flow, there are far fewer rules, but that doesn’t mean there
aren’t any don’t forget about the commonalities that are based on natural human behavior.
A sample free-flow store layout below demonstrates that exterior signage, window
display and most likely start path and power wall still remain the same. But beyond that, it’s a
very creative layout to work within.
Free-flow has been called the simplest store layout because there’s no defined pattern,
but arguably that’s what makes it the most complex. How you organize your merchandise in a
free-flow store is limited only by your square footage and your imagination. With so few rules,
it’s easy to go wrong. However, the biggest mistake you can make if you decide to go with this
layout is thinking there are no best practices human preferences and behavior still matter and
need to be considered for this layout to be successful for your shop.

Pros
 Great for small spaces
 Also works within areas of loop and spine layouts (more on that below)
 Creates more space between products
 Less likelihood customers will bump into one another
 Better suited to higher-end shops with less merchandise
 Most likely to create an experiential retail space

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 Fig3. B.i: Layout of Nokia
Cons
 Often less space to display product
 Easy to forget there are best practices that still should be followed; breaking the unwritten rules
can turn people off and away from your store
 Can be confusing for customers
Well-designed free-flow layouts can encourage browsing and impulse purchases. They are
ideally suited to more creatively focused shops or upscale brands that want to prioritize
experiential retail as a key component of their brand.

FIG.B ii FREE-FLOW

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 The flip side is that because there’s so much variety in free-flow shops, it’s easy to do the
wrong things and discourage customers. Setting shelves too close together, not creating enough
visual breaks, or putting check-out in the wrong part of the store can encourage departure rather
than purchase.

C. STORE DESIGN:
The flagship stores created for Nokia were the first global retail program to feature
handset technology as a branded lifestyle.
Leveraging advances in technology, they showcased 
the full portfolio of Nokia
products through an interactive hands-on experience. The handsets were live and used to
navigate through informational graphics displayed on the digital screens that run the perimeter
of the store. The award-winning flagship design helped reinvent personal handset retail, and
was rolled out around the globe – in China, Russia, Mexico, Brazil, Finland, the United
Kingdom and the United States.

Fig3.C i.Store Design Of Nokia

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 Fig 3.C ii.Store Design Of Nokia

In London Heathrow Terminal 5, along with designing the terminal retail stores, the
five ventilation towers were transformed into a synchronized billboard for Nokia messaging.
The content is formatted so that the screens are treated as one, maximizing the impact of the
messaging.

D. STORE ATMOSPHERICS:
The controllable characteristics of retail space which entice customers to enter the store,
shop, and purchase are atmospherics. Aspects such as lighting, ambient sound, merchandise
layout, and other features are all components of atmospherics. These features are in place to
influence a consumer's mood and increase the odds of purchases.

Nearly all retail stores use atmospherics, even if they are subtle. For example, a big
box office supply store may be known for its wide, well-lit aisles and bright red signs. Upscale
retail clothing stores will have upholstered chairs or sofas to convey the sense of luxury in
shopping and allow shopping companions a comfortable spot to rest and wait. Shops which
target teenagers will often use contrasted lighting and loud music. Panera Bread and Subway®
are expert at using the atmospherics of aroma like the smell of freshly baked bread encourage

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purchases. Realtors also employ elements of atmospherics as they stage open houses. Staging
allows buyers to picture themselves in the space through the use of furnishings and the scent
of freshly baked cookies.

Features of atmospherics include:

 A layout of the space including the location of clerks and check out counters
 The overall temperature of the retail space
 Scents or aromas designed to excite and entice the shopper
 The location of pricing information or other signage
 Music to inspire, sooth, or stimulate
 Decorations which represent the brand

Many retail giants will use elements of atmospherics to help identify their retail brand and
set it apart from competitors. One drawback can be an overly aggressive use of atmospherics,
which can have the opposite effect, intimidating or driving potential customers away.

The holiday shopping season is a prime time to see atmospheric marketing in action. Stores
compete to entice shoppers using holiday music, festive decorations, and even "holiday scents"
like pine, vanilla, and cinnamon. They strive to create a sensory experience for their customers,
who in turn, may be more likely to spend money on holiday merchandise. For example,
Anthropologie, an upscale women's clothing, accessories and home store, owned by Urban
Outfitters Inc., relies heavily on atmospherics in their stores, especially during the holidays.
Every store has a visual display team, and there are seasonal plans for decorating during each
holiday. Store and merchandise design come from the store's corporate headquarters in
Philadelphia. Given its level of using atmospherics, Anthropologie's aim appears to offer its
customers a shopping experience that is carefully curated, from how a store is laid out, how it
smells, and even the presentation of merchandise on the racks and stacks.

E. CATEGORY MANAGEMENT

Category management is a retailing and purchasing concept in which the range of products
purchased by a business organization or sold by a retailer is broken down into discrete groups
of similar or related products; these groups are known as product categories (examples of
grocery categories might be: tinned fish, washing detergent, toothpastes). It is a systematic,
disciplined approach to managing a product category as a strategic business unit.

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 The industry standard model for category management in retail is the 8-step process, or 8-
step cycle developed by the Partnering Group. The eight steps are shown in the adjacent
diagram; they are :

1. Define the category (i.e. what products are included/excluded).

2. Define the role of the category within the retailer.
3. Assess the current performance.
4. Set objectives and targets for the category.
5. Devise an overall Strategy.
6. Devise specific tactics.
7. Implementation.
8. The eighth step is one of review which takes us back to step 1.

Fig. 3.E 8-step CYCLE Category management

The 8-step process, whilst being very comprehensive and thorough has been criticized for
being rather too unwieldy and time-consuming in today's fast-moving sales environment; in
one survey only 9% of supplier companies stated they used the full 8-step process. The current
industry trend is for supplier companies to use the standard process as a basis to develop their
own more streamlined processes, tailored to their own particular products.

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 F. INVENTORY MANAGEMENT:
When compared with its competitors, Nokia utilizes the life cycle concept of the
production process. This involves the manufacturing of mobile phones in two main phases;
first is the building of the innards of the phone while the second stage is labeled as fast
turnaround, and it is referred as the assembly to order.

Nokia Company has almost ten production units with high productivity and a big
production capacity. These units are only in those countries that Nokia has operations.
Consequently, Nokia has a better production technology savvy which can produce the products
at an amazing speed as well as sustaining mass production.

Nokia Company enjoys very big economies of scale. It is estimated that it averages at $88
making a phone and $129 retailing it; this is an indication that Nokia’s gross profit margin is
very high.The production department of the Nokia Corporation is a central competency of the
Company. The company has the potential and the capacity to meet the increasing market
demands for mobile phones while enjoying economies of scale because of the massive
production of mobile phones. It is the production technology that is utilized by the company
that makes it rank as the best and the largest mobile manufacturing in the world.

Nokia Corporation is the leading mobile phones’ manufacturer in the market based on
its volume of sales and the quality of its products. This is due to its ability to select best
suppliers in the market and also its large production capacity. Nokia Corporation has one of
the best and wide networks of product distribution, which stems from the village market to the
remotest parts of the globe where they have stalls to the most advanced markets in Europe and
America where they have concept stores.

Joint ventures and cooperation with the supplier has enabled Nokia to utilize its
inventory levels. Nokia suppliers who are at times contracted to be Nokia partners take part in
the product-development process to satisfy the demands for the future production.

The effective and efficient management of inventory in the Nokia Company is backed
up by diversification of supplier location. Consequently, Nokia built its inventory based on
demand but there is always minimum levels inventory that should be kept constant.

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 G. SUPPLY CHAIN:
Supply chain of an organization is the system of all the activities and resources that are
involved in transferring a product from the supplier to the consumers, it is the transformation
of the raw materials and the components into finished goods, which are ready for use by the
customer. Market analysts associate the success of the Nokia Corporation to its best supply
chain practices.
The supply chain of Nokia Corporation is an integrated one with “intertwined suppliers,
manufacturing plants, contract manufacturers, sales and logistics service providers and the
ultimate consumers”. The company has entered into a relationship with its suppliers while
supporting them in their processes.
Nokia has been the world leader in mobility, driving the transformation and growth of
the converging Internet and communications industries. Nokia made a wide range of mobile
devices and provides people with experiences in music, navigation, video, television, imaging,
games and business mobility through these devices. After being purchased by Microsoft, Nokia
also provides equipment, solutions and services for communications networks (Nokia
Corporate 2014). Thus, as the past leader in mobile phone market in the world, its systems of
the supply chain management and related implementations items also should be the excellent
model to be worth of analyzing and studying. Supply Chain Management Transformation With
an extremely complex supply chain, Nokia handle 100 billion components, 60 strategic
suppliers, and 10 factories worldwide and new product introductions and variations are also
intense (Nokia Corporate 2007). Nokia started it supply chain management transformation in
1995 with the strategy of replacing inventory with information in order to create a supply chain
which link suppliers, factories, telecom operators, channel partners, contract manufacturers,
banks sales and logistics services provider to the customers. The final purpose of this approach
was to form a most efficient supply net work to offer customers the best service and solution
according to their expectations. Therefore, creating a value-based partnership with suppliers,
which is based upon factual information, flexibility and trust, should be involved into the
fundamentals for success. Based on this approach of supply chain management, Nokia’s
supplier network is now the strategic issue which included several corporate objectives: great
products, operational excellence, and customer satisfaction. Through implementation, the
result was impressive with increased sales and reduced component inventories, not only within
Nokia but also throughout the whole supply chain including supplier and customer inventories.

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 Nokia has been in a better position to keep the prices of its products low due to its
efficient manufacturing system and production processes. Nokia Corporation has adopted a
hybrid system of manufacturing, which is a combination of both in-house and outsourcing
manufacturing. To enhance its competitiveness, the company has incorporated smart
manufacturing techniques in its manufacturing facilities.
The company’s distribution network is wide, and this has enhanced its ability to reach
the majority of its consumers. Nokia stands far much ahead when compared with other
companies, particularly in regional outsourcing and its unique feature of collaborating with the
suppliers to form an organized design of the supply chain.
Nokia has a complex supply chain which has the capacity to handle approximately 100
billion components, together with sixty strategic suppliers and ten manufacturing plants
globally.
Nokia Corporation established its supply-chain management (SCM) transformation in
the year 1995, and it was aimed at replacing its inventory with information, which could create
a pull driven supply chain that was integrated to link the suppliers, production plants,
telecommunication operators, distribution partners, sales offices, financial institutions, contract
manufacturer logistics providers and ultimately, the consumers.
This was aimed at creating an efficient network of supply that can provide solutions to customer
expectations.
The secret to the success of Nokia Corporation lies in its creation of value-oriented
partnership with the suppliers, which is guided by true information, trust and better leadership,
which are realized through its principle of collaboration. Nokia has suppliers all over the world
and its base suppliers are in countries like Austria, Belgium, Brazil, Italy, Japan, Morocco and
Canada among other many more countries.
Nokia embraces supplier diversity, which ranks top on its corporate responsibility. The
company only spends on those suppliers who can contribute to the economic prosperity of the
company. The company has developed its set of Nokia Supplier requirements that encompass
environmental and social demands and are based on international standards
Supply chain is an important operation area for Nokia. It is considered as an instrument towards
the realization of the competitive nature of the company. Nokia places emphasis on the
efficiency of the demand and the supply network which may be significant in the achievement
of ever increasing demand for the Nokia products.
Proximity of cooperation between the customers and the suppliers is a central organ of
its development principles. Cooperation also promotes diversity in the supply chain

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There is a close connection between the design and management of supply chain flow (Product
information and cash) and the success of a supply chain. Retailer’s success is very much
depends on the good supply chain practices. Nokia has, over a relatively short period of time,
become the world’s largest mobile manufacturer.
They have generated margins, Profits and subsequently market capitalization beyond
any of their competitor’s Mobile business. Nokia has attributed a significant pan of its success
to the way it manages flows product, information and cash within its supply chain. Nokia’s
basic supply chain model is direct sales to customers. As distributors and retailers are bypassed,
the Nokia supply chain has only three stages-customers, manufacturers and suppliers.

Fig 3.G: Supply Chain of Nokia

The success of Nokia supply chain is facilitated by sophisticated information exchange.

Nokia provides real time data to suppliers on the current state of demand. Suppliers are able to
access their components inventory levels at the factories along with daily production
requirements.
Nokia has created customized web pages so that its major suppliers can view demand
forecasts and other customer-sensitive information, thus helping suppliers to get a better idea
of customer demand and better match their production schedules to that of Nokia. Nokia has
also managed its cash flows very effectively. By managing receivables and payable very
closely. They are able to collect cash from their customers, on average, ten to fifteen days
before they have to pay their suppliers clearly. Nokia’s supply chain design and their

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management of product information, and cash-flows play a key role in the company’s success.
This approach has left Nokia very well positioned in the mobile industry.

H. LOGISTICS MODEL:
Logistics is understood as the flow of materials, money and information from the
suppliers to the consumers while demand, on the other hand, is defined as the flow of operations
from the supplier to the manufacturers’ locations and finally to the consumers. The logistics
costs that are attached to the demand supply include the freight costs, warehousing and the
interest rates levied.
It is the responsibility of the logistics to find the cheapest and most affordable way of
producing a product and the best method of reaching to the consumers. The logistics
department must establish the most economical element of supply
The story begins in Munich, at Transport Logistic, the world’s leading trade fair for
logistics, mobility, IT and supply chain management. Many attendees who stopped by our
booth asked, “Why is Nokia here?” We answered by explaining three elements we think every
logistics company needs :

1. A private LTE network: LTE offers many advantages over Wi-Fi because of its
communication, networking and IoT integration potential for warehouses, ports and
cargo operations. Private LTE networks offer a secure and reliable foundation for
improving business performance and realizing new operational improvements.
2. Better sensor support: Sensor devices are integral to ensuring that goods are not
damaged in transit. The combination of private LTE networks and standards-based IoT
platforms can support the onboarding and use of a wide array of connected devices.
3. Advanced analytics: Analytics based on artificial intelligence and machine learning can
drive optimization in specific logistic business processes.

Analytics in particular appears to be underutilized in the logistics space, even though it

offers the potential for tremendous operational improvements. Most software at Transport
Logistic focused on asset tracking, routing and scheduling. But we’ve identified underserved
logistics business processes where analytics can make a real difference in improving efficiency.

For example, a human warehouse operator would have trouble reviewing all the trailers in
the yard, the volume and type of packages in each trailer, and their final destinations during the

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course of a 3–4-hour sort. The typical result would be high initial productivity followed by an
overload of packages to specific locations, which would crash sort operations.
Hub Optimization solution uses artificial intelligence to view this problem holistically. It
ingests vendor data on available trailers, packages, package types, available workers,
warehouse layout, and package destinations and gives the operator an optimized sequence of
trailers to put on doors over the course of a sort. We’ve found that the solution provides a 7–
10 percent improvement in efficiency for each sort. When applied at scale, it can generate
significant cost savings.

Hub Optimization is just one part of our portfolio of analytics solutions for logistics.
Additional optimization opportunities exist within the logistics industry, especially around the
movement and storage of goods and the utilization of workforces in warehouses.

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 Nokia has expertise, technologies and scale that can enable companies to optimize their
logistics operations. With our help, companies can develop new and novel ways to improve
their operations and increase profits.

I. VISUAL MERCHANDISING
Visual merchandising is now a major factor impacting the store and brand
image, the retail store envir onment, and the merchandising and marketing of the
store. No longer is visual merchandising considered as an extra function that may
or may not be important for the success of the retailer. It is now considered as an
integral part of the business operations for sustaining a vital retail business.
Visual merchandising is a crucial retail strategy that maximises the aesthetics of a product with
the intent to increase and maximise sales. A visual merchandiser plays a critical role in the
look, feel and culture of a brand. If visual merchandising is done well, it can create awareness
whilst simultaneously increasing brand loyalty. The most important function is to draw
customers into the shop and close the sale, which is all dependant on the aesthetic quality of
your retail display. Possibly the single and most important reason to engage and inspire your
customers is to encourage them to buy more of your products, increasing your sales, margin
and return on space. This engagement process begins even before they have set foot in your
store.

Various Elements
There are many factors that go into the success of visual merchandising, this includes
the store’s appearance, including everything from:
 Lighting
 Signage and packaging
 Uniform and presentation
 Point of sale material and ticketing
 Colours, shapes and various textures
When these elements collectively come together to showcase a brand, it deepens the customer
experience, leading to a positive shopping experience and increased sales.

Brand Loyalty
Customers must be able to experience your brand through the visual components you
choose to surround and enhance your product. For instance, if you are trying to promote a
beauty product to a more youthful audience you may choose to display this product through

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vibrant, colourful displays with bold signage and edgy models. On the other hand, a cosmetic
brand with a mature audience you may choose to use pastels, script writing and soft imagery.
Adding these specific strategies to the brand will not only draw the demographic in but it will
also open up the customer to the brand experience. Creating brand loyalty will increase the
chances of a customer repurchasing in the future.

Avoid Overwhelming
For many visual merchandisers, it is easy to be attracted to the latest product
opportunities and be constantly adding to the range and choices you offer. If you are offering
your customers too much you may risk making your business more complex and put you at
risk of carrying excess stock. Getting the balance right between the number of products is
critical, too little choice will put customers off while too much can confuse them.
Analyse your retail space to understand what the maximum number of products you
can present at any given time is. Every product will be costing you money to stock, if it hasn’t
earned the right to be there or it isn’t connected to the purchase of a high margin line then get
rid of it and make way for products that will make you some money.

FIG3. I Vis u al M erch an d is in g o f NOKIA

Themes:
A great way for brands to better execute visual merchandising is to implement subject
matters and themes into their displays. A theme tells a story which creates an urge for your
customers to buy. Certain themes generally accompany a new product launch. Themes allow
the brand to reinvent itself with new colours, layouts, fonts, imagery and design. Theme ideas

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can range anywhere from coordinating colours to grouping products to individual motifs. There
are not any specific rules when it comes to themes but it is a good idea to consider the store,
the season, a new product and the overall look and feel of the brand and how the theme will
complement any other in-store promotions.
The Nokia Helsinki Flagship store opened in September 2012 after a
complete refit. The store was designed and planned to provide the best customer
experience possible, so that the whole Nokia ecosystem of devices, services and
accessories could be showcased. Zones were set up to demonstrate the imaging
capabilities of the latest Nokia Lumia smartphones along with navigation, music,
Xbox gaming on Nokia devices using the new Microsoft Windows 8 platform. The
rest of the Nokia range is also showcased along with the full and diverse range of
Nokia accessories.

FIG3. I Vis u al M erch an d is in g o f NOKIA

J. STORE BRANDING:
Nokia use two types of branding strategies. It is due to the fact that its target market
consumer consists of two types of customers: Upscale buyers and Economy seeker. For upscale
buyer the company built its brand with high-end multimedia handsets, while for economy
seeker in emerging markets its branding strategy focuses on providing economical handsets.

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 Nokia focuses brand strategy on retail stores. Nokia is positioning its retail stores as the
lead communications channel in its branding strategy as it looks to make the shopping
experience more “theatrical”.
The decision is part of the brand’s revitalised “Amazing Everyday” strategy, which
launched in October, and will place a greater emphasis on experiential marketing as Nokia
looks to drive in-store product engagement. New store layouts are being developed to
encourage visitors to interact with Nokia’s new phone line up, including the recently launched
Lumia range, and focus less on transactions.
Paul Brennan creative director at design agency Fitch – which is developing the new
store layouts – says that consumer experience is a key focus for Nokia, because it wants to be
less dependant on above-the-line advertising.
It will also use experiential marketing initiatives, similar to Nokia’s branded installation
at Westfield Shopping Centre, to drive consumers into its stores worldwide. Nokia hopes that
once consumers have played with its devices, the next time they buy a mobile phone, their
previous experience with the brand resonates and influences the purchase decision.
“Nokia has realised that retail is a very important place in the advertising mix and want
their consumers to experience more when in-store”, says Brennan. “No amount of marketing
torque will convince someone to make a purchase. You need to pick the phone up and play
with it.”

K. IMC:
Integrated Marketing Communications Strategy For Nokia :
Company Analysis- As for India, already in the top 5, looking to make inroads and tackle
competition like Huawei, Micromax and other dominating companies. The main aim is to
generate added profits, sales, and customer satisfaction.
Product Analysis- Products include a mix of the new products such as the Nokia 6 and the
older ones relaunched like- Nokia 3310. The key is to maintain a balance between ‘new’ users
and ‘returning’ users.
I)Target Audience:
Personality Archetype for target customers-Age between 26-45, earlier using or aware
of the Nokia Phone- but had to change once it got diminished from the market. Personality type
would be - (preferably) a brand switcher, rational with a tinge of emotions, willing to give

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second chances and someone who values and fondly remembers the past while being l forward
looking.

II)Marketing Communication Objectives with justification-

To increase the sales of the phone by leveraging nostalgia, this will be the
communication objective- Increased sales by a minimum of 20-25% as compared to the
previous year. Around 10 years back, Nokia held more than 30% of the cell phone market. That
30% is my target audience and the sole objective for them is to come in contact with one touch
point and fondly remember the memories which would result in a Nokia purchase. Once Sales
are increased, we believe through innovations and engagement, brand preference will be
maintained. This will be done by using emotional nostalgic advertisements which will persuade
the target audience to make the ‘rational decision’

III) Campaign Objectives and Creative Thought behind the campaign-

1. A minimum CTR of 1 out of 3 people who view the advertisements.
2. Nokia’s Twitter Fan Base to reach 200,000 mark.
3. Facebook Fan Base should increase by 10%
4. YouTube Advertisements should touch the 30 million mark (each video)
5. There should be minimum channel swapping during advertisements which play on TV
I.e.engaging ads.
6. Community building and crowd-sourcing should occur via BTL campaigns.
7. Minimum 100,000 #SecondChancesWork impressions on Twitter

Creative Thought for Campaign-With a legacy and a fondness in recall existing even
before the advent of social media whether Urban- (e.g. N Series) or the rural folk-Nokia 1100,
Nokia’s goodwill still exists and needs to be tapped into. When Maggi returned after a hiatus,
there was immense hype. However, Nokia was very minimalistic in its approach. Efforts should
be made to be the Indian Market’s favourite mobile brand. These advertisements would be
anecdotal, slice-of-life and focus more on the people and less on the Nokia brand. This would
create warmth in the minds of audiences who would then think about giving a second chance-
to The Nokia Handset, who has finally come back and would not let the audience down again.

IV) IMC Mix with Justification-

1. TV Advertisements- To reach out to the mass audience.
2. Internet Broadcasting- Helps building communities as well as provide metrics which may
not be gained in advertising.

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3. Outdoor Advertising- Always helps brand recall and recognition.
4. Social Media- Propogate the message to create buzz and virality.
5. Direct Marketing- To target the already existing customer base and make them feel special.
6. Publicity- By hosting events pan-
India which would be based on themes relating to Nokia’s new messaging.

Budget Appropriation:

Total IMC spend- Rs. 1100 crore.

Appropriation in Percentage:

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L. PRICING STRATEGIES:
Pricing is a crucial strategic variable due to its direct relationship with a firm's goal and
its interaction with other retailing elements. The importance of pricing decisions is growing
because today's customers are looking for good value when they buy merchandise and services.
Price is the easiest and quickest variable to change, TARGET AUDIENCE: "Consumer the
prime mover" "Consumer Pull", however, seems to be the most important driving factor behind
the sustenance of the industry. The purchasing power of the customers has increased to a great
extent, with the influencing the retail industry to a great extent, a variety of other factors also
seem to fuel the retailing boom.
It does not necessarily means to offer the product at lowest rate instead to offer the best
price in a country. Thus, a company can either go for same pricing or differential pricing for
every country such that the overall profit generate or/and market capture is maximum. Various
types of pricing strategies can be applied like based on cost of production, marginal cost,
demand in market, entry level barrier, price skimming, differential pricing and destroyer
pricing.
Nokia has been in a better position to keep the prices of its products low due to its
efficient manufacturing system and production processes. The pricing strategies used by Nokia
vary from situation to situation and from product to product. For cutting-edge technological
products that are newly designed by the company R&D, the company use first the skimming
marketing strategy, and then decrease the price. While for cost-effective products that focus on
economy, the company use penetrating pricing strategy.

J. E-RETAILING STRATEGY:
For Nokia e-business is not just limited to web presence to make easy buying selling.
Nokia is exploiting the collective power of the internet and IT to vitally convert its strategic
business strategies and business processes. Nokia is one of the successful ventures of the world
that is using the e-commerce and e-business solution in its flair to build successful relation with
its target market. Nokia e-business is known as Nokia Payment Solution that was initiated in
2001. The Nokia Payment Solution is unique program that enables payment service providers
to mediate payments between three parties including financial institutions, distributor and
consumers. This platform allow Nokia to collect, manage and clear payment initiated from
mobile phone and other web-enabled terminals all the way through different payments methods
including debit cards, credit cards, operator’s prepaid and postpaid system.

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Nokia provides Nokia Signet Server that serves the purpose of verification and payment
transaction of non-repudiation through digital signatures. The verification and digital signature
connecting the client and server are satisfied using the wireless Public Key Infrastructure (PKI)
technology.
On the other hand Nokia is using its e-Business strategy to successfully integrate its
various divisions across the world. Nokia factories are situated in 10 countries, and its R&D
wings are situated in 9 countries. E-business provides an opportunity to Nokia to cut its costs
dramatically through e-procurement, which is as a way for Nokia to better track and manage
their purchasing.
Nokia also provides various blogs in an effort to know its target market. This e-chat
provides Nokia a form of technical and customer support is an excellent example of its
customer focused e-business strategy. This e-business strategy that supplement Nokia
traditional phone support is a system that saves precious time for Nokia while providing
opportunities to know its customer more deeply.
Nokia e-business strategy has helped the marketing strategist to better plan their product
offerings, keeping in view the latest trends of the market. The products are designed and
manufactured keeping in view the needs and wants of its target market. Through the use of e-
business the marketing department is able to develop and retain its valued customers. Nokia
website provides online support to its valued customer in the form of free download (music,
video, themes, etc), software solution, and integration of different task related to products. .
This had helped the company not only in creation long-lasting, and satisfied customer creation
but also helped the company to prolong the product life cycle of its various products.
On the other hand Nokia has formed strategic partnership with Facebook. Facebook is
a social network website that connects people and work as link between them. This had
provided remarkable opportunity to Nokia, because the Facebook application for Nokia is
available for download in more than 150 countries. Nokia is the only mobile company of the
world whose handsets can be connected to Facebook. This has created a world of opportunities
for both Nokia and Facebook.

4. CONCLUSION:
Nokia as expected followed different strategy at different time frame and has changed
them according to the market conditions. Nokia has used a mix of strategies as discussed above
and was not only able to enter the market successfully but was also able to successfully lead

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the market. Thus it can be said that following the strategies of Nokia might help one to
successfully enter a market and thus there is a lot of learn from the strategies of Nokia.
However, it is important to analyze the extent to which the company was successful and for
this the strategies of various mobile handset manufacturers have to be compared along with the
market shares, profitability and customer satisfaction. This will be the base of analysis of the
Nokia’s strategy.

5. REFERENCE:
 https://www.engineeringenotes.com/essay/management/essay-on-supply-chain-
management-business-management/15036
 https://www.ukessays.com/essays/marketing/the-success-of-nokias-strategy-in-india-
marketing-essay.php
 https://ivypanda.com/essays/managing-supply-chain-of-nokia/
 https://www.ukessays.com/essays/marketing/marketing-strategies-used-by-nokia-
marketing-essay.php
 https://www.marketingweek.com/nokia-focuses-brand-strategy-on-retail-stores/
 https://www.kangan.edu.au/students/blog/importance-visual-of-visual-merchandising
 https://retaildesignblog.net/2011/10/03/nokia-sapphire-carbon-arte-luna-retail-
marketing-by-uxus/
 https://www.academia.edu/38607584/IMC/
 https://www.nokia.com/networks/industries/retail/
 https://www.nokia.com/blog/filling-gaps-logistics-advanced-analytics/

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