Management of SMEs

NOkIA

Management of SMEs

History

Management of SMEs Nokia's history starts in 1865, when a Finnish mining engineer Fredrik Idestam, installed a wood pulp mill in southern Finland and started manufacturing paper. Since then, the company has evolved dramatically, first to a growing cluster of related industries, from paper to chemicals and rubber, and turning up in the '90s in a dynamic telecommunications company. The basis of change in telecommunications was set in the '60s, when the electronics department of Nokia was researching in the field of radio broadcasting. In the decades that followed, Nokia mobile phones and products for telecommunications infrastructure and international markets reached by the 90 Nokia was established as a world leader of digital communication technologies. Nokia is one of the six largest companies in terms of turnover. They have production centers in 10 countries and develop research and development in 15 countries. They employ 60,000 people in 130 countries.

Management of SMEs

Nokia divided into four groups: Nokia Mobile Phones, the market leader in telecommunications, with a trademark recognized worldwide. Nokia Networks, provider of infrastructure and services for broadband networks to IP. It also develops mobile internet and applications and services for network operators and Internet Service Providers. Nokia Ventures Organizations, develops new ideas for the environment and management. Its primary objective is to provide a broad overview of Nokia is the future, positioning itself as an incubator for innovative projects that may represent an asset to the group. Nokia Research Center, is the engine of technological development through Nokia's cooperation with other groups, universities, research institutes and other organizations

Management of SMEs

The Market

The mobile phone market is a very dynamic market, where the consumer is becoming more sophisticated and demanding. It is a market that is growing impressive: in 1992, there are 10 million people with mobile phone in 1999 Nokia sold 280 million in 2000, 405 million in 2001 and expects to sell 550 million units. The market has been presenting a relative increase increasingly attenuated, does not constitute a break future sales, but a business opportunity.

Management of SMEs The life cycle of the mobile phone is about 2 years and it is expected that the replacement market upgrade and grow for 40 to 50% in 2001 and 70 to 80% over the next few years. This market is characterized by Heikki Norta, Vice President of Business Development at Nokia Mobile Phones, analogous to cars: The consumer, when buying your first car, a car is simple, functional and affordable. But as you evolve in life, is being increasingly picky and specific about the characteristics of the car that will acquire. This is noticeable nowadays with an evolution of the original offer, which was to provide low cost mobile phones whose sole purpose was verbal communication distance for mobile phones today, increasingly evolved both technologically and functionally.

Management of SMEs

Strategically Objectives

The strategy of Nokia's leadership in telecommunications based on two pillars: Combining the concept of mobility and the Internet; Encourage the creation of new services. Thus intends to expand the market of telecommunications, thus creating new business opportunities. This strategy is clearly assumed by Yorj Neuvo, Nokia Mobile Phones Chief Technology Officer, stating in an interview with Insight: We cannot create need where none exists. But we can anticipate, identify and amplify unconscious needs, which are hidden at the moment thats what unfogging the future is all about. A certain basic need is connecting people. People want to eliminate distance and place and to have everything available wherever they are and whenever they want. They dont want to worry about different technologies and want devices to cooperate so they can watch TV on a cell phone or make a phone call from a desktop. Therefore, we aim to make technology work seamlessly as possible.

Management of SMEs

This approach demonstrates to the market and a policy of expansion, a strong belief that this effort is not enough, you must create a market even more evolved and demanding that Nokia stands out due to technology, the means of production and logistics suitable for lead it and keep it. Within the various products and services from Nokia, the privileged and best known are undoubtedly phones. As penetration rates around 50-70% all over the world, it is no exaggeration to say that these are one of the wonders of our global village. Mobile phones are used by men and women, young and old, financial directors, countries in the 1st and the 3rd world. They are becoming an anchor, not only as communication tools for work or play, but still as a mirror of one's personality, way of being and identity of the individual. The phone is a product in which trust and deposited it enriches our lives. With the announced arrival of 3rd Generation (3G known as in America or UMTS - Universal Mobile Telecommunications System - in Europe) will be even more valuable: a door to the wonderful digital world and all its potential. The variable product of the marketing mix includes not only the physical support material, but also other levels such as: packaging, design, brand, technical characteristics, and, on a more global, yet assistance, delivery, credit, installation, after sales and warranty.

Management of SMEs

Product
A particularly important component is the brand. In this aspect, Nokia's strategy has been to use a single brand for all its products, a fact that has contributed to a solid implementation of the company worldwide in the last decade. Nokia is currently the only European brand in the first 10.

Management of SMEs Brands are big gains - if the point of view of the company are a tool for attracting and retaining customers, since the point of view of the consumer a logo is a form of protection, a guarantee of quality and consistency, and finally, the social point of view, brands are a force of increasing cultural homogenization. The modern consumer has greater mobility, has at its disposal many local purchasing, is more busy, distracted, leads a life more complicated and unpredictable, and is bombarded with several choices. Brands have the power to solve her life: make a simple act of buying, effective, and fun. Besides seeking quality and consistency, the consumer sees the product as a vehicle for affirmation of personality, style, way of being. This is precisely what will make the brand a powerful tool for the company, because it will allow to explore and manage the emotional needs of the client. Today, a brand by itself can represent a large portion of the company's value and still be your main source of income. Alongside its growing power is associated with an increasing vulnerability. Nowadays a consumer to an age old told his mark quickly replace one if it ceases to be in their good graces. So now there is still a need for this opinion ethically robust. The communication of this social responsibility can build up on several fronts, the most popular of all environmental awareness.

Management of SMEs

In a free market economy on a global scale, industrial design, and to promote rapprochement between the consumer and technology, assumes increasingly seen as a critical tool of competitiveness. Not only will shape the product to the needs and desires, both technical and emotional consumer also help to build the corporate image of the brand. The portfolio of Nokia mobile phones consistent with their status as leader, is very broad in terms of lines and mobile variants. Currently, the range for space. There are characteristics common to all the series: dual band frequency mode, tap on vibrate, possibility of using two types of batteries (lithium and nickel-magnesium) and at least 20 different ringer melodies. The operating system software installed is extremely reliable and userfriendly.
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Management of SMEs One aspect that is also important to consider the life cycle of a product. The management of the release phases, growth, maturation, and decline will enable control and optimize the dynamics of sales, so as to recover the investment and profit. A mobile phone is designed for a lifetime of two years, after which the client is encouraged to a replacement. Accordingly, Nokia has a rhythm of presentation of at least 1 new product or service each month, which is overwhelming in relation to competition.

Learn more purchase is live

Management of SMEs

Politics Prices
In the view of the marketing mix, price, in addition to enhancing the image, this value will turn into profit for the company. So different from the other variables since it is completely abstract, its application takes effect immediately and does not have a pricing policy, ie, it is possible at any moment to be emulated or surpassed by the competition. Nokia Mobile Phones is the largest enterprise in the industry. With a portfolio that covers all segments and protocols phones, Nokia believes it is in the position to lead the development within the Mobile World. At the end of 2000, Nokia had sales outlets in over 130 countries and employed 60,289 people. Watching the Net Sales of the group in 2000 and 1999

Management of SMEs

We found that Nokia is much better established in Europe, and the number of sales almost double than the one in Asia. Given that Asia presents population density higher than in Europe, we can say that Nokia has a long way to go in increasing the number of sales. This analysis was not, however, taken into account the state of the regions. Nokia is the notion that, for the price policy to be consistent with the marketing objectives, it is necessary to know the geographical area in question. In addition you must be aware of the framework of buyer behavior in pricing policy.

Pricing strategies in product mix

The pricing policy should establish a price difference between the product and the company's own competition. Can be grouped into product features to increase the perceived value. The complexity is the accepted price catalogs. Customers must have knowledge of the products to make the purchase, and there is nothing more in the passing of a learning process, also on the prices. Consider the price in the context of the entire product line. The price of the goods may have to be set at the same level or even below cost because they are necessary for the line.

Management of SMEs Nokia this applies for example in the models line 62. Whether the model 6210 or model 6250, although they present different characteristics, both are geared for adults who use the phone as a work tool. The price of this model is 318.73 Euro 333.70 and Euro, respectively.

If we go to the line of 33, directed to another sector of the market, the technology is not so advanced and therefore the price charged will be lower and in line with the economic power of the target audience. For instance, the 3310 and 3330 are around 174.08 and 199.02 Euro, respectively.

We can say that Nokia has a strategy of skimming (skimming), that is, prices are set at a high level initially to derive maximum profit from customers who have a greater interest in the new product - usually a minority of the potential market. This is usually accompanied by large investments in promotion.

Management of SMEs Example: the model of Nokia 8210 was launched as flagship and had a launch price in 2000 of 598.06 Euro. Spent relatively little time the price dropped almost by half. This allows you to verify the need for a quick replacement inherent in a mobile communications company. Innovation is the ease and presentation of new products and substitutes which causes Nokia is leading with respect to other marks. In the case of 8210, while still on the market, recently introduced the Nokia model 8310 within the same row. Moved from "Live your style" to "Designed to impress."

Below is a pricing strategy based on the costs so that prices are not unpleasant to consumers. The other danger of pricing strategies is that they can not make enough profit or return.

The pricing based on costs down the selling price by adding a certain amount or percentage of income the cost per unit. In this case we can not go very far, because we do not know what the sales strategy adopted by the company to its distributors Nokia. The intermediaries, wholesalers and retailers often use this strategy under the term of market pricing, in which they add a profit margin to the cost of delivery.

Management of SMEs

Price Competition
Compile and interpret correctly the price competition is also important in audit pricing. It is important to ensure that you receive regular and accurate information on prices from competitors' sales force, wholesalers and distributors. If the data indicate that the players who practice lower prices are a problem, you need to diagnose and respond to the problem. As seen in the graph below, Nokia's market share is much higher compared to other manufacturers. Thus we can say that in this field the Nokia sets prices according to the cost price line and the competition is trying to monitor prices and technology presented.

Management of SMEs Not questioning the technology of Nokia, one of the disadvantages of buying a brand that is a market leader in the end ends up paying for not only the player but also the brand. To meet the wants and needs of its customers, Nokia offers technologically advanced gadgets that have no answers of its competitors, allowing Nokia to establish a price and no need to attend the competition. Analyzed 54 models with these results:

Management of SMEs Note: The Nokia is a manufacturer with more models analyzed (54) and integration with the highest percentage of FM receivers, 25 (46%)

Apple, in turn, could in a year raise its global market share from 1.9% to 2.7% in the phone market as a whole. Meanwhile, Nokia fell from 36.8% to 34.2% between 2009 and 2010, presenting an increase well below the market as a whole: 5.75% against 13.8%.

Management of SMEs

The research firm IDC released data on the mobile industry in 2011. The numbers do not suprendentemente showed that even with a drop in sales because of the deal with Microsoft, Nokia continues to top the list of manufacturers that sold more mobile phones in the year. Just below it are Samsung and Apple.

Management of SMEs According to IDC, in the last quarter Nokia sold 113.5 million phones while Samsung and Apple sold 97.6 million 37 million. With that companies had a market share of respectively 26.6, 22.8 and 8.7%, Apple being the company that grew the most over the last year, selling 128% more than the same quarter , 2010.

Management of SMEs

Nokia is the only one of the companies that bet their life on Windows Phone, and with all the marketing that made Lumias far is natural to get a good market share. It is also obvious that the number of users that Windows Phone is not without today compares with Android and iOS, but it's remarkable growth of Microsoft's platform and Nokia's leadership fast forward the competitors when it comes to Windows Phone. Example: Nokia Lumia 900

Management of SMEs

Structures Quantity Discount

Considering these aspects, the owner of a Nokia phone, you are given a lot of free services and adherence to Club Nokia. But many other services can be purchased by debit, which can be paid using the Club Nokia Credits, either online or by shipments via WAP. The mode of payment for this service will pass by the operators, but some of the structures are: + subscriptions paid by the minute, every minute of paying to use the service; decrease in the price per minute as it increases the use of the service, a standard package that allows access to the most popular services, one low monthly fee, and wanting to other services, payment of a second fee, etc.

SWOT
Internally Nokia presents a constant reinforcement of the idea that it is a market leader and a big bet for the future. To resort to such a message without major technical terms or too specific, concise information and many pictures per slide. Each speaker has a picture of you at the beginning of the presentation, in general, is a collective image, informal, where people do not have a position right in front of the camera, have a look relaxed and smiling slightly, without a coat in fact, just a shirt and tie. At the end of each presentation is a summary with the key words,

Management of SMEs images, such as a person looking at the phone and smiling (the social factor is not neglected, to emphasize the idea of "connecting people") or several people young and active to use the Nokia phone always something informal and smiling, showing satisfaction by product.

Innovation in mobile terminals

Examples of Innovation presented by Nokia are: Color and image on the display; MMS (Multimedia Message System):

Management of SMEs

The key phrase is Nokia's "connecting people", which conveys the idea that they produce more communication devices, Nokia provides a public service. This is perhaps one of the most popular slogans of the world, and a trademark of Nokia. Transmits largely what the company is with great concern with personal and collective values and the well-being of all stakeholders, be they customers or employees. It makes explicit an idea to technological modernity associated with the brand, but rather the people factor, a more emotive and affective linked to Nokia phones. The advertising slogan attached to it shows the same: young people and situations in a situation of active living together in a relaxed environment, sometimes not even making any explicit reference to a mobile phone (which results in an effectively established brand that has checked the market in recent times). Advertising, in general, may vary slightly to be made in Europe or Asia, for example, which indicates a concern to respect and accept cultural differences in different parts of the world.

Management of SMEs As regards advertising linked to higher range of products, the overall message conveyed is that "technology is cool", even when buying a mobile phone for its features innovative technological ideas to an executive or entrepreneur, the product is nonetheless fun and easy to use. Beyond the personal values and individual, there are other aspects that Nokia considers the segmentation process, as all technology versus emotions and values, or positioning of products in different segments according style and functionality of the device.

Management of SMEs

Distribution circuit in Portugal

In Portugal we have a branch Nokia Portugal, SA, responsible for import of Nokia phones. It is conducted for many different shops scattered all over the country, from the exclusive shops of Club Nokia and Nokia, and several shops, such as those related to the Sonae group, Worten, Excell, Makro, of the network operators (TMN, Vodafone and Optimus), the computer equipment and / or technological, etc.. Apart from the exclusive stores of Nokia, the remaining selling not only mobile phones but also other products from many brands. In our country the distribution system consists primarily of the following:

A distribution system must cover the target segment, be responsible, have a marketing policy adapted to product marketing, be compatible with the other, represent the lowest cost possible and more likely to know the evolution of the circuits. A distribution system must cover the target segment, be responsible, have a marketing policy adapted to product marketing, be compatible with the other, represent the lowest cost

Management of SMEs possible and more likely to know the evolution of the circuits. The great wisdom is to predict the evolution of distribution channels. The implementation of the distribution network is very costly and is a very lengthy process. Therefore, after creating a particular distribution circuit, the principle is to keep it. This is therefore a variable too inflexible. Moreover, it provides immediate results as advertising and promotions. Nor is it easy to control because the producer ends up losing control over part of their products almost inevitably. Focusing us now a little to the Club Nokia stores and unique shops Nokia, these are mostly on the coast or nearby.

Management of SMEs

Club Nokia
These days, with the possibility of buying over the Internet, we can even say that the whole process of marketing is revolution! In the specific case of Nokia, it is only possible to buy accessories for mobile phones (via the website http://www.nokia.com). The page on the Nokia website Portuguese (http://www.nokia.pt) allows contact the site from any country where they market their products. It is a quick and effective way to "connecting people", anywhere in the world. These pages allow us to research products, places where the sale is made possible, consult the technological characteristics of mobile phones and accessories, join Club Nokia, consult contacts available, put the most varied questions ... Advertising is also accomplished in order to make the mobile phone is something magical and always present, regardless of time and place.

Management of SMEs

Conclusion
Nokia is a company with 127 years already, but it marked the history of the global economy and marketing in the last decade, making it the 5th largest company in the world. The two strong men responsible for this turnaround achieved in 1992, seeks to combine electronics and laptops verified at the time to your business, making launching the digital GSM system. At the same time took the decision that in the future the company would dedicate solely to the production of mobile phones. After 8 years, the emphasis was clearly wins. However, new eras also troubled approach. With the arrival of mobile internet game rules mobile communications that seem to have come to change. The emergence of strong brands with other specializations (internet, games, ...) may improve the versatility of mobile and challenge the traditional manufacturers of equipment pocket. It will be a quick yet critical position in the supply of services, hardware and technology platforms required for the revolution launched by the 3rd and 4rd Generation. If the big Asian giants are now better prepared in terms of infrastructure, it is expected that Nokia can turn the game with the focus on its flagship vision capability, innovation, adaptation, claw.

Management of SMEs With the penetration of mobile phones in the European market slowing down, the next steps will strengthen the marketing of substitution (encouraging customers from other brands to acquire a Nokia, so that people who do not use mobile phone are in fact at least meager users; and encouraging existing owners to upgrade to a Nokia), and by improving the performance of their own phones. Another challenge will be to penetrate markets such as China and Latin America, with local competitors already strong and well established. All these changes will test emerging not just a marketing strategy but an entire secular strategic culture which until now has shown unbeatable.

Management of SMEs