Organizational And Marketing Strategy Used By Nokia Marketing Essay

July 29, 2017 Marketing

In order to put to death the undertaking on manus I have choice Nokia. Nokia was founded by Fredrik Idestamin in 1865 as public limited company. Nokia is taking the cellular phone industry with around 35 % of the market portion, while Motorola, which is American based is holding 12 % of entire market portion. Nokia used be a diversified pudding stone up boulder clay 1980 with concern includes mush, gum elastic tyre production, paper, telecommunication equipment, overseas telegram fabrication, and consumer electronics. The geographic mark market of Nokia was chiefly limited to Scandinavia ( 70 % market portion ) and US ( 33 % market portion ) . It should be noted that Nokia had ne’er enjoy monopoly in any market including Finland and the company portion is due to its competitory selling scheme, province of the art merchandise designing and fabrication, pricing schemes and originative selling runs. The company has changeless record of establishing new merchandise that either low costs or cutting-edge engineering, and genius have non yet been stopped. These two features of the house is giving it competitory advantage and the company is still the most profitable company of the mobile-phone fabrication industry ( Kumar, Banthia, & A ; Sharma, 2010 ) .

Nokia headquarter in situated in Espoo, Finland. The Research and Development wings of the company are situated in 10 states around the Earth. The device fabricating mills of the company are located in nine states while the company transacts its concern in more than 150 states of the universe. In this paper we traveling to look into that how does a Finnish organisation go a universe leader in the extremely sophisticated cutting-edge industry from the selling point of view?

Importance and the usage of Information in their Selling Schemes of Nokia:

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In the decennary 1990s the telecommunication industry around the Earth experience three important positive alterations that sets the foundation for future growing. These three tendencies were addition in the usage of cyberspace, deregulatings of the market that led to easy entree for new rival and the coming and popularisation of radio services. Nokia so adapted the three schemes in its selling plan. This was a mega bend in the history of Nokia.

In order to acquire the feat the chances provided by the environmental factors and diminish the possible demerits of alterations that might hold impact on the concern, Nokia initiated an information system undertaking. It has decided to put in an information system that will ease determination shaper across the organisation in its assorted functional sections. For this interest Nokia takes advantage of Management Information System ( MIS ) , Decision Support System ( DSS ) , Executive Information System, Transaction Processing System ( TPS ) etc. Through the usage of these systems the organisation non merely was able to pull off the organisation efficaciously and expeditiously but was besides able to organize its different R & A ; D sections ( that are situated in 10 states ) , its fabrication installations ( that are situated in 9 different states ) and its distribution webs that situated in 150 states.

Organizational & A ; Marketing Strategy Used by Nokia:

Organizational Scheme:

Nokia historical logo was “ three pointers ” that were created in 1966, the company so invent it ‘s soon used organisational slogan “ linking people ” . This motto was design by Ove ‘ Strandberg. The company is the universe 6th “ most loved and fastest turning trade name of the universe ” . All this was possible due to Nokia consistent organisation broad supportive civilization, shared values and vision.

The vision statement of Nokia is “ our vision is a universe where everyone is connected ” , and its promise is “ Our promise is to assist people experience near to what is of import to them ” . The attack the company used for to accomplish this aim is “ Sure consumer relationships ” , “ Best nomadic devices everyplace ” , and “ Context enriched services ” ( Nokia, 2010 ) .

Marketing Scheme:

In order to accomplish its organisational aims, the selling wing of the Nokia is making singular occupation. In the followers we explored different facets of the selling scheme used by Nokia.

Market Cleavage:

Geographic: Both Rural and Urban countries

Demographic: Male and Female

Age: 22-50 ( about 80 % of the gross revenues comes from this section

Consumer Sections: All the three types of users including high-users, medium users and light-users. ( Kumar, Banthia, & A ; Sharma, 2010 )

Merchandise Scheme:

The focal point of the selling attempts of Nokia is largely on French telephone fabrication merely. The company is invariably heightening its merchandise portfolio by contriving invariably new theoretical accounts. The nomadic phones that are manufactured by Nokia have two diverse focal points: either low costs or up-to-date engineering. The merchandises of the company are adopted as per the particular markets state of affairs. For illustration French telephones distributed in Middle East have an Arabic linguistic communication map, while in France the linguistic communication is tailored as Gallic.

Branding Scheme:

Nokia usage two types of stigmatization schemes. It is due to the fact that its mark market consumer consists of two types of clients: Upscale purchasers and Economy searcher. For upscale purchaser the company built its trade name with high-end multimedia French telephones, while for economic system searcher in emerging markets its branding scheme focal points on supplying economical French telephones.

Pricing Schemes:

The pricing schemes used by Nokia vary from situtaiton to state of affairs and from merchandise to merchandise. For up-to-date technological merchandises that are freshly designed by the company R & A ; D, the company usage foremost the skimming selling scheme, and so diminish the monetary value. While for cost-efficient merchandises that focus on economic system, the company usage perforating pricing scheme.

Promotion Scheme:

The company success can be traced to the first-class publicity activities carried out by the organisation. The company usage integrated selling communicating to advance its assorted merchandises in different part of the universe. The publicity activities are directed toward replacing

Topographic point Scheme:

The company distribution web is situated in 150 states, and the company is still utilizing its aggressive selling scheme to hike its web, and market development scheme to aim new markets from around the universe. Nokia has come up with new topographic point scheme by gap of the retail mercantile establishments known as “ Nokia Priority ” .

Nokia: in the Global Context:

Nokia has successfully used its selling scheme to aim diversed custromers from around the universe. Its merchandises are every bit used by rural every bit good as people belongs to the urban countries. The company is utilizing the right blend of standardisation and version. By analyzing the planetary market scheme of Nokia one can reason that Nokia standardized its merchandises when possible and custom-make its merchandises when needed. For illustration Nokia introduced its dust-resistant nomadic phone with anti-slip clasp and flash visible radiation in less developed markets including India, Pakistan, Bangladesh etc. the merchandise was customized harmonizing to the demands and wants of the rural market of the people populating in these states. Such kind of committedness to the demands and wants satisfaction of the mark market by Nokia shows Nokia echt committedness towards the local clients demands.

The competition in the planetary market for Nokia is increasing with the transition of clip. As the market for cellular phone is go throughing through the growing phase of merchandise life rhythm, changeless entryway of new cellular phone industry is continued. The competition for Nokia includes: Motorola, Sony Ericson, Samsung, Siemens, Panasonic, NEG, Toplux and Sagem and many more. In order to maintain its portion in the international market Nokia must go on to work its competitory advantage to acquire in front of rivals. It needs to hold more focussed selling scheme.

Nokia late reaching of can-bar phone and missed design tendencies like clamshell phones are some of the factors that has led to diminish in the market portion of the company ( Kiley, 2007 ) . Nokia market portion was 66 % in 1999, which now stood at 38 % ( 2009 ) , it means that although in footings of gross revenues its gross is increasing with the transition of clip, but in footings of market portion, rivals are capturing niche from Nokia.

The planetary gross revenues of Nokia are increasing and the organisation is invariably utilizing four types of schemes to increase its gross revenues in the planetary market. These schemes are:

Market Penetration:

Nokia is increasing its gross revenues in its bing market of already available merchandises through addition strong placement scheme, publicity activities, and competitory pricing schemes, and therefore company is able to increase the gross revenues for its merchandises.

Merchandise development:

The company has changeless record of establishing new merchandise that is either low costs ( that mark low-income group ) or up-to-date engineering ( that mark upper-upper and upper-middle category of the market ) , and genius have non yet been stopped.

Market Development:

New market offer exciting chances to Nokia and the compnay is go oning to research new market in the universe. Presently the distribution web of the company has been established in 150 states in all the continents of the universe.


Nokia is besides utilizing variegation schemes. The company has produced some customized merchandises that are available merely in those peculiar states. An illustration of this variegation scheme was the developed of series of nomadic phone that were designed for UAE and Middle East.

The company now developed multifunctional cell phones, and continued to set up its concern in important on the rise markets such as India, China, Middle East and Indonesia where the mark market are still looking for dependable hardware. The scheme is working for Nokia and over the twelvemonth it has been able to establish series of new version in the planetary market. And Nokia is now looking to aim 200 million in-between category population of China for whom the company has developed customized merchandises that costs under 63 $ ( Kiley, 2007 ) .

On the other manus, the state of affairs in US is rather different. That ‘s why the company is utilizing different scheme to aim that market. In US market growing is tough because the market is driven by cell-service supplier. For illustration Verizon Communication sell phone to client at subsidised rate to its mark market. Nokia ‘s dealingss in US with cell phone operator are non every bit strong as those of rivals that are why the company is enduring in this forepart.

To undertake this tendency, Nokia have reportedly spends $ 5.4 million in 2007 and $ 2 million in 2008 on buttonholing in the U.S. market to keep its market portion. The scheme was really successful for the house, as it resulted in favourable political environment for the company. Had the company adopted the same scheme in before the consequences for the company must hold been rather different and it must hold non lost its market portion in the US market? On the other manus the status is rather alteration as compared to status in US and the consumers can purchase the cell-phone of one ‘s ain pick, and so shop for their service.

In order to take advantage of favourable market conditions Nokia has joined custodies with Siemens Networks and formed a joint venture in 2006. Nokia Siemens Networks services are available in 150 states around the universe. Both the companies have merged their fixed line and Mobile phone web equipment concern to make the universe ‘s biggest web. This has resulted in 1.5 billion Euro for Nokia in twelvemonth 2009.


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