Marketing Management

Case Analysis: Nokia

Group 1:
Abhilash
Anjaly
Ashish
Deeksha
Divyansh
Jatin
Kashish
Manaswini
2 Introduction

Nokia entered telephone market in 1991

By 1998, became the worldwide best selling phone

Q1 2012 Nokia shipped 83 million handsets

Kept losing market share to Samsung

Android and Apple took up most of the market by 2013

Market share went down from 30% to 3% in 6 years

3 Nokia’s Downfall

Company’s focus was developing hardware

In 2010, annual revenue was 12.73 billion euros, and net profits were 2 billion euros

Nokia didn’t use android platform

Partnered with Microsoft’s Windows Phone Platform

Consumers didn’t prefer their operating system, and chose Android and iOS

Nokia started to realise their brand wasn’t as resilient as they thought

In 2012, Nokia announced a layoff of 10,000 employees

In 2013, Microsoft acquired Nokia for a deal of 5.4 billion dollars

4 Product Differentiation

1. Feature phone
• In 2018 Q2, Jio had taken 47% market share
• Nokia’s growth was 12.5, much less than the industry standard
2. Smartphone
• 0% market share in Q2 2017
• 3% market share in Q1 2018
3. Premium Phones
• Very scarce presence
• Relatively poor reach to customers
5 Competitive Analysis

Same target market as Xiaomi, Mi, and Samsung

27% market share market leader Xiaomi

They have a customer centric buying experience

Nokia has a good position in the feature phone market

But feature phones are slowly growing obsolete

6 Competitive Analysis

India Feature Q2 2018 Q2 2019

Phone Shipment
Jio 47% 28%
Samsung 9% 21%
Lava 5% 12%
Itel 6% 10%
Nokia 8% 9%
Other 25% 20%
Total 100% 100%
7 Competitive Analysis

India 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3

Smartphone
Shipment
Market
Xiaomi 22% 25% 31% 28% 27%
Samsung 23% 23% 26% 28% 22%
Vivo 9% 6% 6% 12% 10%
Micromax 6% 5% 3% 1% 9%
Oppo 8% 6% 6% 9% 8%
Others 30% 32% 25% 19% 20.5%
Nokia 2% 3% 3% 3% 3.5%
8 The Path Ahead

Investment into research and development targeting Rs. 10,000 to Rs. 20,000
phone market

Samsung and Xiaomi market leaders

Due to extensive after sales support

Average life of their phones is 2 years

Nokia has the goodwill of durable phones, being able to push that to 5 years

Extensive marketing through PR and advertising

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