Assignment No.

Topic: Marketing Activities for Nokia Company

Subject: Fundamental of Marketing

Submitted To: Prof. Mubasher Hussain Naqvi

Submitted: Talha Saeed

Class: BBA (Hon’s)

Semester: 3rd

Roll No: 21

Session: 2021-2025

Department Of Business Administration

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Acknowledgment

I would like to express my special thanks of gratitude to my teacher and all of those persons
who help me in making my assignment.

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Preface
In this assignment we have discuss about marketing activities of Nokia Company as we discuss about the
promotion marketing portfolio and executive summary of a company. We discuss about company
description, FMGC sector backgrounds.

We touch the company over view portfolio and segmentation, targeting and positioning. The consumer
buyer behavior of nestle company. Promotional activities of a company and the most important aspect
communication strategy.

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 Table of Contents

1.Introduction to Nokia.....................................................................................................v

2.History of Nokia.............................................................................................................vi
3.Marketing Strategy........................................................................................................vi
3.1Segmentation..............................................................................................................vii
3.1.1 Demographic Segmentation..................................................................................vii
3.1.2 Psychographic of Segmentation. …………………………..............................................vii
3.1.3Behavioral Segmentation........................................................................................vii
3.2 Target Marketing.......................................................................................................viii
3.2.1 Nokia’s Pricing Strategy………………........................................................................viii
3.2.2 Differentiated Marketing.........................................................................................ix
3.4 Differentiation and Positioning..................................................................................ix
3.4.1 Positioning statement.............................................................................................ix
4. Marketing mix...............................................................................................................ix
4.1 Products……..................................................................................................................x
4 .2 Price…....... …………………................................................................................................x
4.3 Place …………………………..
…………......................................................................................x
4.4 Promotion.. .................................................................................................................x
5. Conclusion....................................................................................................................x
6. Reference.....................................................................................................................xi

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1 to NOKIA
As of 2012, Nokia employs 101,982 people across 120 countries, conducts sales in more than
150 countries, and reports annual revenues of around €30 billion. By 2012, it was the world's
second-largest mobile phone maker in terms of unit sales (after Samsung), with a global market
share of 18.0% in the fourth-quarter of that year. Now, Nokia only has a 3% market share in
smartphone. They lost 40% of their revenue in mobile phones in Q2 2013. Nokia is a public
limited-liability company listed on the Helsinki Stock Exchange and New York Stock Exchange.
It is the world's 274th-largest company measured by 2013 revenues according to the Fortune
Global 500. Nokia was the world's largest vendor of mobile phones from 1998 to 2012.However,
over the past five years its market share declined as a result of the growing use of touchscreen
smartphones from other vendors—principally the iPhone, by Apple, and devices running on
Android, an operating system created by Google. The corporation's share price fell from a high
of US$40 in late 2007 to under US$2 in mid-2012. In a bid to recover, Nokia announced a
strategic partnership with Microsoft in February 2011, leading to the replacement of Symbian
with Microsoft's Windows Phone operating system in all Nokia smartphones. Following the
replacement of the Symbian system, Nokia' , which had previously increased, collapsed
dramatically.[13] From the beginning of 2011 until 2013, Nokia fell from its position as the
world's largest smartphone vendor to assume the status of tenth largest. On 2 September 2013,
Microsoft announced its intent to purchase Nokia's mobile phone business unit as part of an
overall deal totaling €5.44 billion

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(US$7.17 billion). Stephen Elop, Nokia's former CEO, and several other

executives will join Microsoft as part of the deal

2. History of NOKIA

Over the past 150 years, Nokia has evolved from a riverside paper mill in south-western Finland
to a global telecommunications leader connecting over 1.3 billion people. During that time,
we’ve made rubber boots and car tyres. They generated electricity and even manufactured
TVs.By the 1960s, Finnish Cable Works – already working closely with Nokia Ab and Finnish
Rubber Works – starts branching out into electronics. In 1962, it makes its first electronic device
in-house: a pulse analyzer for use in nuclear power plants. In 1963, it starts developing radio
telephones for the army and emergency services – Nokia’s first foray into telecommunications.
In time, the company’s Mikro Mikko becomes the best known computer brand in Finland. And
by 1987, Nokia is the third largest TV manufacturer in Europe.Nokia sets the ball rolling in
1979, creating radio telephone company MobiraOy as a joint venture with leading Finnish TV
maker Salora. 1981 then sees the launch of the Nordic Mobile Telephone (NMT) service, the
world’s first international cellular network and the first to allow international roaming. The NMT
standard catches on fast and the mobile phone industry begins to expand rapidly. In 1982, Nokia
introduces the first car phone – the Mobira

Senator – to the network. That same year, the Nokia DX200, the company’s first digital
telephone switch, goes into operation. On July 1, 1991, Finnish Prime Minister Harri Holkeri
makes the world’s first GSM call, using Nokia equipment. And in 1992, Nokia launches its first
digital handheld GSM phone, the Nokia 1011.

3. Segmentation Targeting Positioning and Marketing MIX OF NOKIA

Market segmentation is a marketing strategy that involves dividing a broad target market into
subsets of consumers who have common needs, and then designing and implementing strategies
to target their needs and desires using media channels and other touch-points that best allow to
reach them. Criteria For Segmentation An ideal market segment meets all of the following
criteria:
• It is possible to measure.

• It must be large enough to earn profit.

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• It is possible to reach potential customers via the organization’s promotion and distribution
channel.

• It responds consistently to a given market stimulus.

• It can be reached by market intervention in a cost-effective manner.

• It is useful in deciding on the marketing mix.Levels of market

3.1 Segmentation
Nokia engages in the following levels of market segment:

Segment Marketing Nokiar designs, features and functionality that cater to the demands of the
market segment. E.g. Nokia Ngage (gamers)

Niche Market

Nokia also has products for customer groups seeking a distinctive mix of benefits and are ready
to pay a premium price for it. E.g. Nokia Lumia 925, Lumia 920.

3.1.1 Demographic Segmentation

*High Income Group

Caters to the upper segment of the society with high purchasing power .e.g. Nokia Asha501,
Lumia925, Lumia920, Lumia625, Lumia720, etc. Medium Income Group Caters to the segments
which give more importance to the value for money. Example of phone for this segment are
Nokia Asha 206, Asha 205, etc.

*Low Income Group

3.1.2 Psychographic Segmentation

Lifestyle Achievers Looking for design and style, followers of trends and fashion and

have active lifestyle– Nokia Luminous .

3.1.3 Behavioral Segmentation

*Occasions-

Nokia launches new phones on special occasion like Diwali, Christmas and many more
regional festivals and special occasion. Benefits- Nokia launches various phones for benefit
seekers who look for quality and better service but within reasonable price. Like phone with
good camera, memory and display. So Nokia offers various Asha series phones for this category.

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3.2 Market Targeting

After segmentation the firm evaluates various segments and decide how many and which
segment to serve. Evaluating Market Segments In evaluating different market segments firm
must look at three factors:
1) Segment size and growth
2) Segment structural attractiveness
3) Company’s objective and resources

Nokia Target Market Selection

Selective Specialization Nokia selected a number of segments and has come out with products
for eachof them thereby ensuring its presence inthe complete market.

M1 M2 M3

P1 P = Product

P2 M = Market

P3

3.2.1 Nokia’s Pricing Strategy

*Penetration Pricing
1. Used to gain instant market share in a new market.

2. Well know companies like Nokia do it with new products that carry new

technologies totake more market sharefrom competitors.

*Competitor pricing
1. Used when there is a lot of competition in the market.

2. When a company is looking to take another company’s market share offering so at a lower
price.Nokia Marketing Strategies As a big company Nokia is able afford more promoting
andadvertising that smaller, less successful companies. Mass marketing by sponsoring events
that will be viewed by large amounts of people in their chosen market segment. Effective use of
print media : Advertisements for businessphones found in Economic Times. High end
phoneadvertisements found in magazines such as Lifestyle. Effective use of television :
Advertisements that Indians canidentify with. Using Shark Khan as Brand Ambassador.

3.2.2 Differentiated Marketing

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3.3 Differentiation and Positioning
Beyond deciding which segments of the market it will target, the company must decide on a
value proposition- on how it will create differentiated value for targeted segments and what
positions it wants to occupy in those segments. A product’s position is the way the product is
defined by consumers on important attributes – the place the product occupies in consumers’
minds relative to competing products. “Products are created in the factory, brands are created in
the mind,” says a positing expert.Nokia is clearly using Differentiation strategy, which is a
combination of differentiation competitive advantage and broad target scope. Differentiation in
the marketing mix for the Lumia 920 occurs in the Product and Price components of
themarketing mix. Lumia 820 is also differentiated, but only in the product component ofthe
marketing mix. However the price of the 820 is lower and mid-ranged for themarket, it is not
differentiated. The smartphones are differentiated from its rivals in the Product component of the
marketing mix with their physical and non-physical characteristics. The physical characteristics
as well as the multiplecolors that are available to the customers. The colors offer customization
for the devices and differentiate the products from rivals such as Samsung and Apple.

3.3.1Positioning statement
A statement that summarizes company or brand positioning – it takes this form: To (target
segment and need) our (brand) is (concept) that (point-of-difference).Nokia’s Positioning
statement is “CONNECTING PEOPLE”

4.Marketing mix

In order to understand which strategy Nokia has used to achieve its objectives of regaining lost
ground in the smartphone market, we will look at the marketing mix ofthe company. As
marketing strategy shapes the marketing mix for the products, themarketing mix will point to the
strategic choice of the company. The marketing mix synonym for 4ps, which is constructed of
the four most important components ofevery product’s strategy - Product, Price, Promotion and
Place. These componentshold the opportunities for the company to differentiate.

4.1 Product
Nokia’s products vary a lot because the company has a number of series of smartphone such as
Nokia Lumia, Nokia Asha, as well as feature phone series.

Product design also varies, the company has touch screen products, classic button phones, as
well as slide sets. Nokia’s products have some great features that varyfrom product to product.
Nokia is known for great quality of its devices, and oftenoffers technologically advanced
cameras and great maps for its smartphones.

4.2 Price

Price of the smart phone series vary between Rs 5000 and Rs39000. There is high price
variability of the products, so that the prices meet every social class needs.

4.3 Promotions

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Promotion use of advertising on television, newspapers, radio and billboards. Thereis no
information on any current or near past promotional campaigns.

4.4 Place

Place is getting its products to the market through distributors. It mainly sells its smartphones
Mobile operators and retailers, which is common for the industry. The company does not own
shops in most of the part of country. According to the marketing mix analysis for Nokia, the
company mainly focuses on product component of the marketing mix. Nokia offers great variety
of product at adifferent price levels. Given the variability in products and series, at this point it
ishard to understand the strategic choices of the company. It is even impossible toassess the
decisions regarding the new series Nokia Linda.

5.Conclusion

Nokia’s mission is to regain its leadership position in the smartphone market. The company sees
greatest potential for achieving its objective in the partnership with Microsoft. According to the
environment analysis the most serious problem for the company is the threat from existing
rivals. Nokia has built some interesting products in the Lumia series, with very technologies and
beautiful designs. However the market success of These equipment has not been so great and
Nokia did not achieve its goal of becoming a market leader in India. Nokia has introduced its
flagship device at a high price with very innovative technology and has position it in the high-
end costly Smartphone introduced by implementing differentiation strategy. According to the
analysis the reason for this is wrong implementations strategy and specifically problems with the
positioning of the products. This strategy implementation is correct according to the analysis, as
the product is introduced with aggressive marketing mix, targeting the mass market. Lumia 925
has seen great interest in the Smartphone market in India.

6.References

Wikipedia www google.com

www.slideshare.com

http://www.bbc.co.uk/news/technology-17675319

http://www.pcworld.com/article/2023783/google-applemicrosoft-

app-number-wars-heat-up.html

http://search.proquest.com/docview/214961929?accountid=14468

http://winsource.com/2012/10/17/lumia-920-pre-orders-doing-well-ineurope/

http://www.nokia.com/global/aboutnokia/about-us/about-us/