Introduction:

Nokia is well known and world known company for mobile devices and in congregating
communication and integrate industries. They have branches in 120 countries and sales in 150
countries with 128,445 employees. The operating profit of this worlds largest mobile
manufacturers is 5.0 and 37% of market share according to Q1 2009. For every market segment
and protocol they introduce mobile devices of different technology like W-CDMA (UMTS),
CDMA, and GSM. Nokia Siemens network make services and solution along with
telecommunication network equipment. They are providing digital map information and internet
services through owned subsidiary. This popular public liability company listed on stock
exchanges of New York, Helsinki, and Frankfurt. Nokia is a very important employer in Finland
and plays very vital role in the financial system of Finland. In fact as a partners and sub
contractors of Nokia Company, very small employers grown high in very short period. In the
year 1999 GDP of Finland increased more than 1.5% by Nokia and in the year 2004 it was 3.5%.
Hence Nokia is ranked as a best Finnish employer and best Finnish brand. Nokia occupied a fifth
place as a valuable global brand in the list of Interbred/Business Weeks best global brands 2008.
And its a first non US company ranked in the list. In the year 2007 it is a number one brand in
Asia and in Fortune's World's Most Admired Companies list of 2009 Nokia considered as 42nd
worlds admirable company. According to AMR research Nokia supply chain ranked sixth in the
world and third in network communication. In case of environmental issues Nokia holds a
superior track of record in restraining the usage level of toxic chemicals in their products. Those
records are approved by Greenpeace environmental organization. Comparing to other electronic
brands Nokia highly reduced impact on climate change and strongly supporting recycling of
electronic waste. In 11th Greenpeace Guide Nokia company obtained first place with improved

History Of Nokia
The company was founded in 1865 by Frederick Idestam. The company began a paper mill in
Tammerkoski in southern Finland. Frederick Idestam then built another mill by the
Nokiavirta River where he gave the name Nokia to the mill in 1871. Originally, the
Nokianvirta River was named after a dark furry animal, locally known as the Nokia a type
of marten.
Following a major industrial force, the company merges with a cable company (founded by
Eduard Polon) and a rubber firm (founded by Arvid Wickstrom) which sets Nokia on the new
path of electronics. Nokias first electronic device was a pulse analyzer designed for us
nuclear power plants in 1962. Their interest in telecommunication systems began in 1963
when they started developing radio telephones for the army and the emergency services, prior
to the manufacturing of televisions, radio phones, data transfer equipment, radio link,
analyzers and digital telephone exchange. Nokia will change its production.
In 1979 Mobira Oy was the first phone maker. They begin life as a joint venture between
Nokia and leading Finnish television Salora. The Mobile phone revolution started in 1981
with the launch of the first Nordic Mobile Telephone (NMT) service. The phone industry
began to expand rapidly and Nokia introduces its first car phones followed by the portable.

Overview of Nokia
The company was founded in 1865 in Finland and was named Nokia in 1871 (Nokia,
story). President and CEO of Nokia Corporation at the moment is Stephen Elop. He
joined Nokia in 2010, after working two years for Microsoft as President of Business
Division and member of the senior membership team of Microsoft Corporation
(Nokia, leadership team). Nokia serves worldwide demand for its products, which are
feature phones and Smartphones. The company offers also services such as maps,
navigation and music. Nokia has about 139 000 employees around the world. (Nokia,
people and culture)

Study of important
What is International Marketing?
International marketing is simply the application of marketing principles to more than one
country. However, there is a crossover between what is commonly expressed as international
marketing and global marketing, which is a similar term. For the purposes of this lesson on
international marketing and those that follow it, international marketing and global marketing are
interchangeable.
Note: Keegans definition is typical of those that see international marketing a one stage of an
internationalisation process.
FEATURES OF EXPORT MARKETING
1.

Systematic Process:
Export marketing is a systematic process of developing and distributing goods and

services in overseas markets. The export marketing manager needs to undertake various
marketing activities such as marketing research, product design, branding, packaging, pricing,
promotion, etc. To undertake the various marketing activities, the export marketing manager
should collect the right information from the right source, analyze it properly and then take
systematic export marketing decisions.

2.

Customer Focus:
The focus of export marketing is on the customer. The exporter needs to identify

customer needs and wants, and accordingly design and develop products to generate and enhance
customer satisfaction. The focus on customer will not only bring in higher sales in the overseas
markets, but it will also improve and enhance goodwill of the firm.

3.

Trade Barriers:
3

Export trade is subject to trade barriers tariff and non-tariff barriers. The trade barriers
are the restrictions on free movement of goods between countries. Normally, countries impose
trade barriers on imports, in order to restrict imports. The export marketing manager must have a
good knowledge of trade barriers imposed by importing countries

4.

Trading Blocs:
Export trade is also affected by trading blocs. Certain nations form trading bloc for their

mutual benefit and economic development. The non-members face problems in trading with the
members of a trading bloc due to common external barriers. Indian exporters should have a good
knowledge of important trading blocs which would enable them to negotiate effectively with the
companies located in such blocs. Some of the important trading blocs include NAFTA, European
Union, and ASEAN.

5.

Three-faced Competition:
In export markets, suppliers have to face three-faced competition, i.e., competition from

three angles :
(a)

From the other suppliers of the exporters country.

(b)

From the local producers of importing country, and

(c)

From the exporters of competing nations.

6.

Documentation:
Export marketing is subject to various documentation formalities. Exporters require

various documents to submit them to various authorities including customs, port trust, etc. The
documents include:

Shipping Bill

7.

Consular Invoice

Certificate of Origin, etc.

Dominance of Multinational Corporations:

Export marketing is dominated by MNCs or large corporations. At present MNCs from

USA, Europe and Japan play a dominant role in foreign trade. They are in a position to develop
world wide contacts through their network of branches/offices/ subsidiaries.

8.

Diverse Customs and Traditions:

The export markets differ in languages, customs, and traditions. The exporter may not be

able to cope up with these diversities. Therefore, he has to be selective. He should deal in only
such markets where he can easily handle or overcome such differences or diversities.

9.

Large Scale Operations:

Normally, export marketing is undertaken on a large scale. Emphasis is placed on large orders in
order to obtain economies in large scale production and distribution of goods. The economies of
large scale help the exporter to quote competitive prices in the overseas markets.
10.

Subject to Regulations:

Export marketing is subject to various regulations health and safety regulations,

environmental regulations, and foreign exchange regulations. For instance, in India, exporters
5

should realize their export proceeds within a period of 180 days (in respect of consumer goods)
from the date of shipment. The SEZ units and status holders can realize within 360 days. Such
restrictions are not applicable for domestic marketing.
11.

Marketing-Mix:

Export marketing requires the right marketing-mix for the target markets, i.e., exporting the right
product,. at the right price, at the right place and with the right promotion. The exporter can
adopt different marketing-mixes for different export markets, so as to maximise exports and earn
higher returns.
12.

International Marketing Research:

Knowing more about customers, dealers and competitors is a must not only in the domestic
markets, but also in the export markets. Marketing research is a must in export business due to
various factors, such as diversities in social, cultural, economic, and political environments of
distant markets.

PESTLE ANALYSIS
Political Factor:
Nokia has been a member of the United Nations Global Compact since 2001Nokia reported
spending $5.4 mn on lobbying in the U.S. in2007 and $2 mn on lobbying in 2008.
Economic Factor:
Nokia had to change its functions from single market to global market due to collapse of Russian
Federation.
Social Factor:

Nokia had to change its functions from single market to global market due to collapse of Russian
Federation.
Legal Factor:
Patents and technology.
Health risk and regulation.
Environmental Factor:
Environmental impact of supplier products and processes Environmentally ethical considerations
amongst suppliers Life cycle impact of products throughout the supply chain Changes in
technology.

Scope of International Marketing

International Marketing constitutes the following areas of business:Exports and Imports: International trade can be a good beginning to venture into international
marketing. By developing international markets for domestically produced goods and services a
company can reduce the risk of operating internationally, gain adequate experience and then go
on to set up manufacturing and marketing facilities abroad.

Contractual Agreements: Patent licensing, turn key operations, co production, technical and
managerial know how and licensing agreements are all a part of international marketing.
Licensing includes a number of contractual agreements whereby intangible assets such as
patents, trade secrets, know how, trade marks and brand names are made available to foreign
firms in return for a fee.

Joint Ventures: A form of collaborative association for a considerable period is known as joint
venture. A joint venture comes into existence when a foreign investor acquires interest in a local
company and vice versa or when overseas and local firms jointly form a new firm. In countries
where fully owned firms are not allowed to operate, joint venture is the alternative.

Wholly owned manufacturing: A company with long term interest in a foreign market may
establish fully owned manufacturing facilities. Factors like trade barriers, cost differences,
government policies etc. encourage the setting up of production facilities in foreign markets.
Manufacturing abroad provides the firm with total control over quality and production.

Contract manufacturing: When a firm enters into a contract with other firm in foreign country
to manufacture assembles the products and retains product marketing with itself, it is known as
contract manufacturing. Contract manufacturing has important advantages such as low risk, low
cost and easy exit.

Management contracting: Under a management contract the supplier brings a package of skills
that will provide an integrated service to the client without incurring the risk and benefit of
ownership.
8

Third country location: When there is no commercial transactions between two countries due
to various reasons, firm which wants to enter into the market of another nation, will have to
operate from a third country base. For instance, Taiwans entry into china through bases in Hong
Kong.

Mergers and Acquisitions: Mergers and Acquisitions provide access to markets, distribution
network, new technology and patent rights. It also reduces the level of competition for firms
which either merge or acquires.

Strategic alliances: A firm is able to improve the long term competitive advantage by forming a
strategic alliance with its competitors. The objective of a strategic alliance is to leverage critical
capabilities, increase the flow of innovation and increase flexibility in responding to market and
technological changes. Strategic alliance differs according to purpose and structure.

OBJECTIVES
For this project I have been instructed to come up with a marketing strategy for anexisting
company/product I have chosen to do Nokia communications, particularly themobile phone
sector of Nokia's business. To do this properly I will need to:
Appropriately identify, collect and use primary and secondary data that is relevant to the
marketing strategy of Nokia.
Marketing Strategy
Wherever, whenever, we believer in communicating, sharing and in the awesome potential of
connecting the 2 billion who do, with the4 billon who dont At Nokia, customers remain our top
priority.Customerfocus and consumer understanding must always drive our day-to-day business
behavior.
Nokias priority is to be the most preferred partner too operators ,retailers and enterprises .Nokia
will continue to be a growth company,andwe will expand to new markets and businesses. World
leading productivity is critical for our future success. Our brand goal is for Nokia to become the
brand most loved by our customers. In line with these priorities, Nokias business portfolio
strategy focuses on five areas, with each having long-term objectives:- Create winning devicesEmbrace consumer Internet service- Deliver enterprise solutions- Build scale in networksExpand professional services There are three strategic assets that Nokia will invest in and
prioritize:- Brand and design- Customer engagement and fulfillment- Technology and
architecture.

10

SWOT Analysis
According to Kotler and Keller (2009 p.101) SWOT analysis is a way to monitor
companys internal and external environment, it is the overall evaluation of the
strengths, weaknesses, opportunities and threats. If a company takes under
consideration its strengths, and builds its strategy exposing and utilising them this will
create a competitive advantage. Weaknesses and threats are those factors that can
affect the company in negative way. Nokia should be aware of these, so that the
strategy it develops can offset its weaknesses and protect from the threats.
Strengths
One of Nokias main strengths is in its brand. Before the mobile phone market was
sidelined due to changing market trends, Nokia has been one of the most respected
and well-known companies in the mobile phone market. Their products are associated
with distinct design, accountability and sturdiness. The company has headed the sales
in mobile phone market since 1998 until the last couple of years (Samsung overtakes
Nokia, 2012).
Nokia has developed brand awareness and the company brand has been associated
with the best products in the industry. Although Nokia is having hard times catchinges for the
company to expand and grow in the market.
Weaknesses
Nokia is having difficulties catching up with the changing customer trends; it is
lagging with introducing innovative products. The main evidence for this is the
inability of the company to meet market trends after the Iphone release, and the
failure of its Symbian platform. Nokia plays the role of phone manufacturer so
Internet, software and services are not its strengths. However this weakness is now
offset by the Partnership with Microsoft.

11

Opportunities
The main opportunity for Nokia is in its partnership with Microsoft. Nokia is one of
the first companies to provide Windows phone, it could use this as competitive
advantage, and develop new and innovative products. Samsung and HTC have also
released Windows Phone 8 models after the first Lumia Smartphones were introduced
in Europe. However Samsung has only one windows phone and Nokia by now has
released eight. This means that Nokia is more experienced into developing joint
products with Microsoft. The company can expand its Lumia series offering devices
from different price range and features to serve multiple customer demands.
Threats
Nokia is facing a huge competition in the Smartphone market from Samsung, HTC
and Motorola. In the high end costly mobile segment the company is facing Apples
Iphone and RIMs Blackberry. Nokia has played the role of a market follower and has
lost time in the Smartphone market with developing and repairing its strategy. Nokia
has switched from Symbian software to Windows phone, which confused customers
and made it hard for the company to deliver its message and build awareness in the
market.
It will be very hard for the company to come back to the top again as Smartphone
switch from the customers perspective is hard. The handset is more than just a phone,
it becomes part of peoples lives keeping their important and personal information, it
adjusts to their personal preferences. Due to the different software it is hard for the
users to transfer their information from one software as Android to other as Apples
IOS. This switch may cost users to loose important information. Given all this
customers need a very good reason to change their operating system. In order for
Nokia to gain back its lost market share, the company has to come up with very good
technology, and convince the customers that their products are the best choice in the
market.

12

Initial Hurdles
When Nokia entered India , telecom policies were not conducive for growth of mobile phone
industry.
Tariffs levied
on importing mobilephones were as high as 27%.
Usage charges Rs.16 per minute, at thesehigh rates, consumer did not take tomobile phones.
Competition from other powerful globalplayers like Motorola, Sony, Siemens
india nokia foresees great
potential
Infrastructure business is under Nokia Networks(now called Nokia Siemens Network
Now key supplier to all the top GSM operatorsincluding Airtel, Vodafone, BSNL & IDEA.
Nokia has also set-up itsGlobal NetworksSolutions Centerin Chennai. Solutions
Centerperformsnetwork operation tasksforoperators in Asia Pacific, Europe, Middle
East andAfrica.
Huge opportunity
India has second largest market after China.
Today 6-7 million new subscribers everymonth.
Indian consumers tend to change their phonevery fast.
T

13

Country
japan
brazail
Australia
china
India

Call rate ( cents)

33
11
24
4
2

Urban rural teledensity

Month
Mar - 98
Mar-99
Mar-00
Mar-01
Mar-02
Mar-03

Total teledensity
1.9
2.3
2.9
3.6
4.3
5.3

Urban tele-density
5.8
6.9
8.2
10.4
12.3
23.2

14

Rural teledenity
0.4
0.5
0.7
0.9
1.2

HYPOTHESIS
Literature survey suggests that, buyers perceive or build brand reputation of mobile phones in
terms of
(1)product (quality):(2) price (affordability):
-(3) promotion (adv. & communication) :(4) place(availability):-Based on the Theoretical framework, the following hypotheses were
developed. Sufficient evidence exists to conclude that no linear relationship exists between
Nokias dependent variable brand reputation and independent variables s
uch asproduct, price, promotion, and place. At least one of the predictor variables has a
linear relationship with the dependent variable brand reputation.
Growth and achievements Growth
1.By 2010 number of mobile subscribers globally will increase to 4 billion.
2.Worldwide 1 billion people use a Nokia device daily
3.India is the fastest growing market in terms of subscriber growth - over 8million new
subscribers per month.
4. 6 devices sold every second (worldwide), 2 per second out of them in India; India is the
second largest market for Nokia.
5. Organized Trade - the Indian retail market, is the fifth largest retail destination globally, it's
estimated to grow to US$ 427 billion by 2010.Nokia has been working closely with operators in
India to increase the geographical coverage and lower the total cost of ownership for consumers.
Today,Nokia has one of the largest distribution network with presence across 1,30,000outlets. In
addition, the company also has Nokia Priority Dealers across the country and
NokiaConceptstoresin Bangalore, Delhi, Jaipur, Hyderabad, Chandigarh, Ludhiana, Chennai,
Indore and Mumbai to provide customers complete mobile experience.Nokia will further
increase its efforts to build trusted consumer relationships, moving from single transactions to
dynamic dialogue with the consumers. Nokia will continue to invest to drive growth in the

15

device business. The vision of Nokia is a world where everybody can be connected, thus we will
aim to address every relevant geography and price point and strive to bring the best mobile
devices everywhere. Broad device base creates a foundation for our services business. Nokia will
create context enriched services to complement the device experience and to offer compelling
solutions for consumers and businesses alike.
ACHIEVEMENTS
1.Ranked No 1 Most Trusted Brand Survey by Brand Equity, 20082. Ranked the No 1. MNC in
India by Business world, Indias leading business weekly, 20063. Ranked as the No. 1
telecommunications equipment vendor in the country byVoice & Data for five consecutive
years 2008, 2007, 2006,2005 and 20044. Ranked as the 9th most powerful brand by Millard Browns
BrandZ 2008 5.Ranked worlds 4th most valuable brand by Interbrand, 2007 6.Ranked Asias
most trusted brand by the Media-Synovate, 2006.
CONSUMER SATISFACTION
Consumer satisfaction may be defined as the utility of the customer which they get from the
products and services rendered by the business organizations. Customers always want the
maximum utility from the products and services. Hence to study the customers satisfaction,
should be the main aim of every business organization.

16

RESEARCH METHODOLOGY
Research in Management can be defined as the process of systematic investigation of any
Management problem and it is used as Management tools for problem solving and decision
making.
It comprises defining and Re-defining problems, formulating hypothesis, collecting,
organizing and evaluating data, making deductions and making conclusions and at last, carefully
testing the conclusions to determine whether they fit the formulated hypothesis. The research is
done by collecting primary and secondary data.
Sample Size
:The sample size of my project was 50 customers.
Sampling Method:For collecting primary data personal interviews were
Tool & Technique of Collection Of Primary Data:
For the present study, primary data wascollected through simple random sampling technique.
OBSERVATION METHOD
The observation method involves human or mechanical observation of what peopleactually do or
what events take place during a buying or consumption situation.
Information is collected by observing process at work.
Primary Data:
It is obtained by a study, specifically designed to fulfill the data needs of the problems at hand.
Such data is original in character and is generated in large number of surveys conducted mostly
by government and also by some individual institutions and research bodies. It is collected
through personal interview, schedule, etc. The data is first hand in new sample size.

17

Secondary Data:
It is the data which is not originally collected but rather obtained from published source.
Sources Of collection Of Secondary Data:
Data is collected from available sources like journals, magazines, internet,etc.
1. Website
2. Data analysis
3. Books.
It consists of information that already exists somewhere have been collected for some purpose
also attitudinal data and demographic data.

18

FACTS AND FINDING

Strategies
Customer remains the top priority
- Nokias priority is to be the most preferred partner tooperators, retailers and enterprise- the
brand goal for Nokia is to become the most lovedbrand by the customer
Nokia s business strategy focus on 5areas:
- create winning devices- embrace consumer internet service- Deliver enterprise solution- Build
scale in networks- expand professional services

Recent achievements &Recognition

Ranked4th in the Most Trusted Brand-Survey by Brand Equity - 2007.
RankedNo1. MNC in India by BusinessWorld-2007.
Ranked No. 1 in the Consumer Durables in India in 2005-06.
No. 1 telecom equipment vendorfrom2004- 07.
Asias most trusted brand in 2006 by the Media-Synovate survey.
'Brand of the Year at CII Brand Summit in2005.
Golden Peacock Award 2004 for Nokia1100, for most innovative product in the
Year 2008
India is only country where Nokia is present in the entire range- R & D, retail, manufacturing
and services.
75000+ outlets to sell Nokia products.
Nokia has62.5% share in mobile handset market in India.
Launched a new service brand Ovi for Internet services
To access on-demand online music and games besides other entertainment content.
Nokia N95 with maps that enable users to find their way to people and places. Maps services
also have aroute finder

19

NOKIA PRODUCT

20

Challenges of growth
The Nokia House, Nokia's head office located by the Gulf of Finland in Keilaniemi, Espoo, was
constructed between 1995 and 1997. It was the workplace of more than 1,000 Nokia employees.
In the 1980s under CEO Kari Kairamo, Nokia expanded into new fields, mostly by acquisitions.
In the late 1980s and early 1990s, the corporation ran into serious financial problems, partly due
to heavy losses in its television manufacturing division. Kairamo committed suicide in 1988.
After Kairamo's death, Simo Vuorilehto became Nokia's chairman and CEO. In 19901993,
Finland underwent a severe recession, which also struck Nokia. Under Vuorilehto's management,
Nokia was severely overhauled. The company responded by streamlining its telecommunications
divisions and by divesting itself of the television and PC divisions.
Probably the most important strategic change in Nokia's history was made in 1992, however,
when the new CEO Jorma Ollila made a crucial strategic decision to concentrate solely on
telecommunications. Thus, during the rest of the 1990s, the rubber, cable and consumer
electronics divisions were gradually sold as Nokia continued to divest itself of all of its nontelecommunications businesses.
As late as 1991, more than a quarter of Nokia's turnover came from sales in Finland. However,
after the strategic change of 1992, Nokia sales to North America, South America and Asia
became significant. The worldwide popularity of mobile telephones, beyond even Nokia's most
optimistic predictions, created a logistical crisis in the mid-1990s, prompting Nokia to overhaul
its entire supply chain. By 1998, Nokia's focus on telecommunications and its early investment
in GSM technologies had made the company the world's largest mobile phone manufacturer, a
position it held until 2012. Between 1996 and 2001, Nokia's turnover increased almost fivefold
from 6.5 billion euros to 31 billion euros. Logistics continued to be a major advantages over
rivals, along with greater economies of scale.

21

2000 to 2010

The flagship Nokia store in So Paulo, Brazil

Product releases

Reduction in size of Nokia mobile phones. Left to right: Nokia 638 (1996; 19.06 cm height),
Nokia 2160 EFR (1996; 16.42 cm), Nokia 5160 (1998; 14.84 cm), Nokia 6070 (2006; 10.5 cm)
Nokia launched the Nokia 3310 in late 2000 as the successor of the Nokia 3210. It has become
one of the most popular devices of all time. The Nokia 1100 handset in 2003,[31] shipping over
200 million units, is the best-selling mobile phone of all time and the world's top-selling
consumer electronics product, and contributed to the company's rise in developing markets.[56]
Nokia was one of the first to recognize the market opportunity in combining a game console and
a mobile phone (both of which many gamers were carrying in 2003) into the N-Gage. The NGage was a mobile phone and game console meant to lure gamers away from the Game Boy
Advance, though it cost twice as much.
Nokia Productions was the first mobile filmmaking project directed by Spike Lee. Work began in
April 2008, and the film premiered in October 2008.

22

In 2009, the company reentered the personal computing market, announcing a high-end
Windows-based netbook called the Nokia Booklet 3G. The company also entered the smartphone
market.
Symbian OS
Symbian was Nokia's main smartphone operating system until 2011.Symbian was popular
among the smartphone market during the 2000s. Some popular Symbian-powered devices
include the Nokia 7650, the first S60 smartphone; Nokia N-Gage the first game-centric
smartphone; Nokia 6600, the first Symbian smartphone to sold over a million unit with a soaplike design; Nokia 7610, the first Nokia with a megapixel camera; Nokia 6630 the first 3G Nokia
smartphone; Nokia N90, the first camera-centric phone; Nokia N95, a popular slider; Nokia N82,
with Xenon flash; Nokia E71, offering a full "qwerty" keyboard and premium build; Nokia 5800
XpressMusic the first full-touch smartphone; Nokia N97 with full-touchscreen and a side-sliding
QWERTY keyboard; Nokia X6 the first capacitive touchscreen and the Nokia N8 with the newer
Symbian^3 and 12 megapixel camera.
The 2012 Nokia 808 PureView had a record 41-megapixel camera, and represented the end of
the Symbian platform after its replacement by Windows Phone.

23

New products, recovering market share, lack of profits

In January 2013, Nokia reported 6.6 million smartphone sales for Q4 2012 consisting of 2.2
million Symbian and 4.4 million sales of Lumia devices (Windows Phone 7 and 8). In North
America, only 700,000 mobile phones have been sold including smartphones.
In May 2013 Nokia released the Asha platform for its low-end borderline smartphone devices.
The Verge commented that this may be a recognition on the part of Nokia that they are unable to
move Windows Phone into the bottom end of smartphone devices fast enough and may be
"hedging their commitment" to the Windows Phone platform.
In the same month, Nokia announced its partnership with the world's largest cellular operator
China Mobile to offer Nokia's new Windows-based phone, the Lumia 920, as Lumia 920T, an
exclusive Chinese variant. The partnership was a bid by Nokia to connect with China Mobile's
700 million-person customer base.
Following the second quarter of 2013, Nokia made an operating loss of 115m (98.8m), with
revenues falling 24% to 5.7bn, despite sales figures for the Lumia exceeding those of
BlackBerry's handsets during the same period. Over the nine-quarters prior to the second quarter
of 2013, Nokia sustained 4.1 billion worth of operating losses. The company experienced
particular problems in both China and the U.S.; in the former, Nokia's handset revenues are the
lowest since 2002, while in the U.S., Francisco Jeronimo, analyst for research company IDC,
stated: "Nokia continues to show no signs of recovery in the US market. High investments, high
expectations, low results."
In July 2013, Nokia announced that Lumia sales were 7.4 million for the second quarter of the
year a record high

NOKIA LUMIA
24

25

Sale of mobile phone business to Microsoft

On 2 September 2013, Microsoft announced that it would acquire Nokia's mobile device
business in a deal worth 3.79bn, along with another 1.65bn to license Nokia's portfolio of
patents for 10 years; a deal totaling at over 5.4bn. Steve Ballmer considered the purchase to be
a "bold step into the future" for both companies, primarily as a result of its recent
collaboration.In an interview with Helsingin Sanomat, former Nokia executive Anssi Vanjoki
commented that the Microsoft deal was "inevitable" due to the "failed strategy" of Stephen Elop.
The deal was closed on 25 April 2014 for "slightly more" than the originally stated 5.44 billion.
Nokia's mobile phone assets became a part of Microsoft Mobile, a new subsidiary of Microsoft
based in Finland. The deal was originally expected to be closed in March 2014, but was delayed
by a tax dispute involving a factory in Indiaofficials claimed that Nokia had not properly paid
taxes on devices that were produced at the plant, but sold domestically (exports are exempt from
taxes). Indian governments had required that Nokia place money in escrow before it was allowed
to transfer control of the factory to Microsoft. As a result, the plant will not be transferred to
Microsoft, but will produce products on behalf of the company.
As part of the deal, Microsoft acquired the Asha and Lumia brands, but only has a limited license
to the Nokia brand. Microsoft can only use the Nokia brand to promote Lumia products for 18
months after the closure of the acquisition, X products through 31 December 2015, and feature
phones such as the Series 30 and Series 40 series for 10 years. Microsoft will only use its own
brand on new "product[s], applications and experiences". Microsoft also did not acquire any
rights to the Nokia tune, which the company may only use on Nokia-branded devices, where it
must be set as default. Nokia itself is also subject to a non-compete clause forbidding it from
manufacturing any Nokia-branded phones until 31 December 2015. Microsoft also took over
Nokia's website and social media outlets following the closure of the deal; this arrangement will
be in place for a minimum of one year after the closure.
A number of Nokia executives joined Microsoft as a result; Stephen Elop became the head of
Microsoft's devices team (which include products such as Xbox and Surface lines); Risto
Siilasmaa replaced Elop as interim CEO, before the appointment of Rajeev Suri. Postacquisition, Nokia now focuses on three core business units; its Here mapping service (which
26

Microsoft will license for four years under the deal), its infrastructure division Nokia Solutions
and Networks (NSN), and on developing and licensing its "advanced technologies".[8][8][9][155][156]
In July 2014, Microsoft announced a significant layoff of workers, including 12,500 workers
from the former mobile phone group at Nokia. It was also reported that Microsoft had ended
future development of Nokia's feature phone and X lines in favor of focusing exclusively on
Windows Phone.
Post Devices & Services business sale
Nokia has been involved in the acquisition of other companies. These include Medio Systems by
the HERE division.
The Technologies division announced their first consumer product in June 2014, the Nokia Z
Launcher, a home screen interface written for Google's Android OS.
China Mobile deal
In October 2014, Nokia and China Mobile signed a $970 million framework deal for delivery
between 2014 and 2015.
Operations
Nokia is a public limited-liability company listed on the Helsinki, Frankfurt, and New York stock
exchanges. Nokia plays a very large role in the economy of Finland. It is an important employer
in Finland and works with multiple local partners and subcontractors. In 2009 Nokia contributed
1.6% to Finland's GDP, and accounted for about 16% of Finland's exports in 2006

Divisions
Since the Microsoft acquisition, Nokia comprises three business groups: Mobile Solutions,
HERE, and Technologies.

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On 1 April 2007, Nokia's Networks business group was combined with Siemens's carrier-related
operations for fixed and mobile networks to form Nokia Siemens Networks, jointly owned by
Nokia and Siemens and consolidated by Nokia.Nokia bought the 50% share and took full control
of the group on 3 July 2013.
Markets
Markets is responsible for Nokia's supply chains, sales channels, brand and marketing functions
of the company, and is responsible for delivering mobile solutions to the market.
Nokia Networks
Nokia Solutions and Networks (NSN), previously known as Nokia Siemens Networks B.V. is a
multinational data networking and telecommunications equipment company headquartered in
Espoo, Finland. NSN was a joint venture between Nokia (50.1%) and Siemens (49.9%), but is
now a wholly owned subsidiary of Nokia. It is the world's fourth-largest telecoms equipment
manufacturer measured by 2011 revenues (after Ericsson, Huawei and Alcatel-Lucent). NSN has
operations in around 150 countries.

PROBLMS OF NOKIA
Controversies
NSN's provision of intercept capability to Iran
In 2008, Nokia Siemens Networks, a joint venture between Nokia and Siemens AG, reportedly
provided Iran's monopoly telecom company with technology that allowed it to intercept the
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Internet communications of its citizens. The technology reportedly allowed Iran to use deep
packet inspection to read and even change the content of everything from "e-mails and Internet
phone calls to images and messages on social-networking sites such as Facebook and Twitter".
The technology "enables authorities to not only block communication but to monitor it to gather
information about individuals, as well as alter it for disinformation purposes,". During the postelection protests in Iran in June 2009, Iran's Internet access was reported to have slowed to less
than a tenth of its normal speeds, and experts suspected this was due to the use of the
interception technology.
The joint venture company, Nokia Siemens Networks, asserted in a press release that it provided
Iran only with a 'lawful intercept capability' "solely for monitoring of local voice calls". "Nokia
Siemens Networks has not provided any deep packet inspection, web censorship or Internet
filtering capability to Iran," it said.
In July 2009, Nokia began to experience a boycott of their products and services in Iran. The
boycott was led by consumers sympathetic to the post-election protest movement and targeted at
those companies deemed to be collaborating with the Islamic regime. Demand for handsets fell
and users began shunning SMS messaging.

ex Nokia
In 2009, Nokia heavily supported a law in Finland that allows companies to monitor their
employees' electronic communications in cases of suspected information leaking. Contrary to
rumors, Nokia denied that the company would have considered moving its head office out of
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Finland if laws on electronic surveillance were not changed. The Finnish media dubbed the law
Lex Nokia because it was implemented as a result of Nokia's pressure.
The law was enacted, but with strict requirements for implementation of its provisions. Until
February 2013, no company had used its provisions. In 25 February the Office of Data Protection
Ombudsman confirmed that city of Hmeenlinna had recently gave the required notice.
Dominated By Nokia In All Areas.
So the billion dollar question is whether Stephen Elop will be capable of improving Nokia's
communication to the extent that the global press corps - and especially the stock market - will
gain a better understanding of Nokia and the staggering number of customers that are actually
purchasing Nokia mobile phones every day?
One thing we are sure of, and that is that Finnish is by no means the world's most sexy language.
While it may be possible to seduce a beautiful woman in Finnish, it will require a very different
approach to seduce the mobile industry's opinion formers and their current opinion of Nokia.

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DATA ANALYSIS
Q1. Place for preference for buying Mobile Phone?
1.Priority outlet ( ) 3. Dealers ( )2.Gray market ( ) 4. Others ( )
Q2.Are you satisfied with price of Nokia phone?
1.High satisfied ( )2. Satisfied ( )3. Neither satisfied nor dissatisfied ( )4. Dissatisfied ( )
5. Highly dissatisfied ( )
Q3. Are you satisfied with Advertisements of Nokia phone?
1.High satisfied ( )2. Satisfied ( )3. Neither satisfied nor dissatisfied ( )4. Dissatisfied ( )
5. Highly dissatisfied ( )
Q4. Are you satisfied with Features of Nokia phone?
1.High satisfied ( )2.Satisfied ( )3.Notsatisfied ( )
Q5. Are you satisfied with Audio output?
1.High satisfied ( )2. Satisfied ( )3.Not satisfied ( )
Q6. Are you satisfied with Software compatibility?
1.High satisfied ( )2. Satisfied ( ) 3.Not satisfied ( )
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Q7. Are you satisfied with Built in memory?

1.High satisfied ( ) 2. Satisfied ( ) 3.Not satisfied ( )
Q8. Are you satisfied with Camera/video quality?
1. .High satisfied ( )2. Satisfied ( )3.Not satisfied ( )
Q9. Are you satisfied with Accessories?
1.High satisfied ( )2. Satisfied ( )3.Not satisfied ( )
Q10. Are you satisfied with Appearances?
1. High satisfied ( )2. Satisfied ( )3.Not satisfied ( )
Q11. Are you satisfied with Battery backup?
1. High satisfied ( )2. Satisfied ( )3.Not satisfied ( )
Q12. Are you satisfied with its services provided by Nokia service center?
1. High satisfied ( )2. Satisfied ( )3.Not satisfied ( )

Q13. Are you satisfied with its Brand image?

1. High satisfied ( )2. Satisfied ( )3.Not satisfied ( )
Q14. Are you fully aware all the Features of Nokia phone?
1.Yes ( ) 2. No ( )
Q15 Who suggested you buy Nokia phone?
1.Family ( ) 2. Relative ( )3.Friends ( ) 4. Neighbors ( )5. Dealer ( )
6.Advertisment ( )
Q16. Age?
1.Below 20 ( )2. 21-30 ( )3.31-40 ( )4. 41-50 ( )5. More than 50 ( )
Q17. Sex?
1. Male ( ) 2. Female ( )
Q18. Your education qualification?
1.Primary ( ) 2. Secondary ( )3. Graduate ( ) 4. Post graduate ( )
Q18. Your monthly income?
1.Below 10000 ( ) 2. 10000-20000 ( ) 3. 20000-30000 ( )4. 30000-40000 ( )
5. More than 40000 ()

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Conclusion
Nokias 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.
Apple Inc and Samsung are the market leaders, companies with innovative products and great
marketing strategies. Apple is using differentiation strategy when introducing its products, and
Samsung is using segmentation strategy for the majority of its products except for its flagship
device.Nokia has built some interesting products in the Lumia series, with very impressive
technologies and beautiful designs. However the market success of these products has not been
so great and Nokia did not achieve its goal of becoming a market leader in Europe. According to
the analysis the reason for this is wrong implementation of marketing strategy and specifically
problems with the positioning of the products.Nokia has introduced its flagship device at a high
price with very innovative technology and has is introduced by implementing differentiation
strategy.
This strategy implementation is correct according to the analysis, as the product is introduced
with aggressive marketing mix, targeting the mass market. Lumia 920 has seen great interest in
the Smartphone market in Europe. However this product is only one of the nine Lumia devices,
which have been introduced in the past couple of years.According to the analysis Nokia has tried
to use segmentation strategy, when marketing the rest of the Lumia products. Segmentation
strategy involves dividing the market into smaller market segments based on different
characteristics of the customer group.
A company has to choose among those market segments and build products suitable for the
chosen segments. Customers have to be aware that the products recognize their needs, so
positioning is important for the success of such strategic decision. However when analyzing

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Nokias segmentation strategy, it does not become clear what the segmentation actually is. The
products are not positioned well in the market, and customers may have hard time choosing
among Lumia serieposition it in the high-end costly Smartphone market.

This problem could be making customers to turn to one of Nokias rivals such as
Samsung, which have positioned well their products and are letting their customers
know that their company provides what they need. I believe this is really harmful for
the company as the Lumia phones are important strategic point for Nokia in its
journey of regaining its lost ground in the Smartphone market. Nokia, as pointed out
in the vision of the company, mainly counts on its partnership with Microsoft to
achieve its objectives. This marketing strategy mistake may harm the future success
of the company given the high switching costs for consumers between different
operating systems.

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REFERENCES LIST
WWW.GOOGLE.COM
WWW.SCRID .COM
Bug hits new Nokia Lumia 900 smartphone. (2012, April 11). Retrieved on February
10, 2013, from: http://www.bbc.co.uk/news/technology-17675319

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