nokia presentation
DESCRIPTION
a complete reference ppt on nokia, India.created my shubham.TRANSCRIPT
India holds the distinctionIndia holds the distinctionof being the secondof being the second
largest marketlargest marketfor the company globallyfor the company globally
Nokia startedNokia startedits its
India operations in 1995India operations in 1995
Competitive Competitive ContextContextA frame workA frame work
Customers Competitors
Industry dynamics
Technology Change
Productchange
Valuechain change
Lead CustomersLead Customers
Nokia targets billion customers in rural India and sells products through distributors, network operators and Nokia branded stores.
It has wide variety of handsets to meet the requirements of every segment.
Lead CustomersLead CustomersHow well are they currently servedHow well are they currently served
Research & Surveys carried out twice a year.
Provides support services through online, email and call center services.
Various effective feedback channels
Customer segmentationCustomer segmentation
• Nokia 1100• Targeting rural customers
• Nokia 7610• Targeting middle segment
• Nokia N-series• Upper middle segment
• Nokia E90 Communicator
Reaching Reaching CustomersCustomers
• Nokia Priority Dealers• Nokia Concept Store• Market making & category creation in small towns• Nokia VAN Operations• Widest Care Network • 18 X 7 Access to Nokia Care line
Needs & RequirementsNeeds & RequirementsShiftingShifting
• Multiple applications in a single mobile device and consumers are willing to pay for them
• A device should reflect customer’s personality
• Affordable, Accessible, Functional, Creative phone Device and applications
Major CompetitorsMajor Competitors
Emerging CompetitorsEmerging Competitors
Market ShareMarket Share
Evaluating Evaluating CompetitorsCompetitors
Sony EricssonSamsungL.G.
Great quality music-Walkman series
Superb Picture quality
-Cyber shot
Product lacks innovation
Superior display quality
Costly
Less durable
Capturing GSM market
High end internal Features.
StrategyStrategyWinning Rural marketWinning Rural market
Started rural van project, 2 years backShowcase solutions, use of mobile
technologyNine regional language supportNokia life tools - Agriculture, EducationTie ups with various organizations
* MSAMB * Reuters market light * Madison research * Various NGO’s
Competitive Competitive Space for NokiaSpace for Nokia
• Diverse product portfolio• Entry level, first time subscribers• Advanced business devices• High performance multimedia devices• Strong distribution network• Convergence of internet and mobility
Key ShiftsKey Shifts
• Fast growing smartphone market• Increased focus on services• Newer, richer features at attractive price points • Feature-rich (full QWERTY keyboard) and application-rich (IM-enabled) mobile handsets • Growing attention towards CDMA
Industry Industry outlookoutlook3-5 years3-5 years
• Number of high-end mobile phone users will grow five times in the next three years
• Size of the handset market in India will increase to 150 million in 2010-11 from 130 million last fiscal
• Size of data service-enabled phones would touch 25 million in three years from five million in 2008-09
• Demand for feature-rich handsets selling at a price range of Rs 5,000 to Rs 12,000 will continue to grow
Source : Business Standard (Nov 27, 2009)
Product Product SolutionSolutionSpaceSpace
We offer products, services and solutions that connect communities, help realize potential, entertain and celebrate people’s lives Together we can explore these possibilities and come together to help define and drive the future of our industry Nokia's business groups are supported by various horizontal entities which adds to its efficiency
PRODUCTS & SERVICES
MOBILE PHONES MULTIMEDIA NETWORKENTERPRISE
SOLUTION
First mobile phone call
Saare Jahaan Se
Acchha, first Indian
ringtone
First Camera phone (Nokia
7650)
First phone with Hindi
menu (Nokia 3210)
Nokia manufacturing
plant in Chennai
Saral Mobile Sandesh, Hindi SMS on a wide range of Nokia
phones
First Made for India phone,
Nokia 1100
Local UI in additional
local language
First vernacular
news portal
1995 19982000
20022003
2004
20052006
2007
• Pocket tablet• Modem• Computers with
intel - technology• 4G phones
Product Space, Product Space, three to five yearsthree to five years
TechnologyTechnology
Where is Nokia,in
terms oftechnology...
Decoding Decoding Technology...Technology...
Affect of key technologies Change is constant Future tech Need & demand Cause and effect Building strategy
Key Key TechnologyTechnology
WiFi capabilityWiFi capability
Internet/ Data Internet/ Data flexibilityflexibility
SecuritySecurity
Long battery lifeLong battery life
High screen High screen resolutionresolution
User friendlyUser friendly
Change is constantChange is constant
First GenFirst Gen
1983, Motorola, 1983, Motorola, AnalogAnalog
Second GenSecond Gen
1990, Digital1990, Digital
Third GenThird Gen
Currently, Data/ VOIPCurrently, Data/ VOIP
Fourth GenFourth Gen
......
The 4th The 4th Generation...Generation...
QuickTime™ and a decompressor
are needed to see this picture.
Need and demandNeed and demand
Old Rivals
Motorola launched the first generation phones
Nokia, second generation a potential market.
New Rivals
O2, Iphone and Android
New models, Symbian based, modern capabilities.
End UsersEnd Users
Normal UsersNormal Users
Flaunt FreaksFlaunt Freaks
High-end Users
Alpha Geeks
Target Segment
Building StrategyBuilding Strategy
Need for new product or product diversificationNot at least for coming 2 years
ValueHigh end technology, User friendly GUI, Value for money
Dealing with competitionSTP, Traditional customer base, emerging as a service provider
Keep the customer IlliterateToo much of information is harmful
Insight...Insight...
Target
Middle class
We love technology
Over complicated, makes us afraid
We like innovations
Cellphone - a mega trend not a fad
We are buying a mobile phone not “Gold”
SWOT
S• High market share-70%• Brand name• Manufacturing plant • R&D
W• Bad service center• Sound quality & camera options
O• Market growth• Future technology
SO:• Market growth & share• Innovation• Market share & profitability
WO:• May lose market share• Concentration on technology
T• Changing technology• Increased competition• Less CDMA mobiles
ST:• Expectations is more• Should concentrate on CDMA mobiles
WT:• Should improve the services to compete with competitors
Insight...Insight...
Customers
Rural customers feel, Customer loyalty in urban areas
Competitors
Key competitor - Apple Iphone
Product
Indians prefer simplicity
Technology
Advanced Products
Industry
Competitive era - need for constant innovation
Current Market Place Current Market Place StrategyStrategy
An Internet services driven firm
Establishing crucial distribution partnership
Early investments in manufacturing and brand-building
Developing innovative product features
Future Market Place Future Market Place StrategyStrategy
Increase the market share
Device to device plus service solution
Breaking into rural markets
Nokia “LIFE” tools
“Obopay” mobile payment services
ScenariosScenarios
Scenario 1Focus more
onrural customers
Scenario 2Application
basedmobile phones
Scenario 3CDMA
mobile phones
Scenario 4Concentrate
ontechnology
Scenario 1Scenario 1
Threats
• Losing out on high end customers• Competitors coming up with much cheaper handsets
Opportunities
• Large consumer base• A growing segment• Cost efficient handsets can be made
StrategyStrategy
• The company is planning to Nokia life tools, which would benefit farmers in rural areas in 11 states.
• Farmers and students can get relevant local information on seeds, crops market and weather through SMS.
• Educational services-Users can opt for an English word a day and learn how it is pronounced and its meaning in its native languages
Scenario 2Scenario 2
• Opportunities• Strong base with already popular existing applications from ‘ovi’• Stable and fast operating system to support technology
• THREATS• Apple iphone has better applications• Indian consumers are not much technology savvy• Microsoft coming up with “Bazaar”
StrategyStrategy
• To inform consumers about ‘Ovi’• Developing handsets supporting
more applications
Scenario 3Scenario 3CDMA technologyCDMA technology
• OPPORTUNITIES• Indian markets will appreciate CDMA because of its better
cellular communication security as India faces terror attacks.
• CDMA will attract huge rural market because of its extended reach and lower power requirements.
• THREATS• Strong GSM Brands handsets with competitive prices and
competitive plans by GSM service providers.• Few CDMA service providers.• Switching to different service provider is not possible and
upgrading of handset is also not easy as compared to GSM sets.
• CDMA Handsets are more sensitive and costlier.
StrategiesStrategies
• DUAL SIM PHONES WITH CDMA AND GSM TECHNOLOGIES.
• NOKIA MUST DEVELOP ECONOMICAL CDMA HANDSETS.
Scenario 4Scenario 4Concentrate on technologyConcentrate on technology
Opportunity
In 2002, more than 19,000 people worked in R&D centers in 14 countries.
Today, Nokia has the leading technology in GSM of the world.
Strategies/ Operations
Mobile phone is not only a “phone”
It should include all the functions that brings the mobile phone closer to a PC
Action plan
As technology develops, the status of function values increases constantly. What are the new functions made? How to produce mobile phones that can excite and attract the customer?
Strategic choicesStrategic choices
Customer FocusCustomer Focus•Optimal product portfolio offering per category•Diving into new areas retaining the understanding for the consumer segments
Winning propositionWinning proposition•Breaking into rural markets•Providing solutions and not just devices
Setting key prioritiesSetting key priorities•Utilize the already established and strong distribution network to penetrate deeper into untapped markets
Invest in technology to come up with more tech-savvy products for the consumers ahead of competition
FinancialsFinancials
NET SALES BY GEOGRAPHICAL AREA (million units)
Asia-Pacific
Q3/2009 30.5Q3/2008 33.6YoY -9.2%