Nokia Corporation: Reversing the Decline in Brand Value

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Case Details:

Case Code : MKTG188
Case Length : 23 pages
Period : 2004-2008
Pub Date : 2008
Teaching Note :Not Available
Organization : Nokia Corporation
Industry : Mobile Phone
Countries : Global

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"What you will see coming from us in the future is not just a numbering system, you are going to start to see names that carry a meaning and are important to consumers."¹

- Keith Pardy, Global Marketing Head, Nokia Corporation, in 2006.

"More than 850 million people have a Nokia mobile phone in their hands. No other consumer electronics company in the world has ever had such a customer base." ²

- Olli-Pekka Kallasvuo, CEO, Nokia Corporation, in January 2007.

"Nokia is now as big as Samsung, Motorola, Sony Ericsson, and LG added together. These numbers were delivered in spite of some component shortages, a drop in Nokia's shipments in the US, and a slight loss of market share in China. Also inventory levels going into 2008 are lower than they were a year ago, so the extra volumes have not just been filling up the channels. It's hard to see any other vendor getting close to this level for a long time." ³

- Martin Garner, Mobile Director, Ovum⁴, in January 2008.

Dominating the Mobile Phone Market

Nokia Corporation (Nokia) launched two new mobile phones models - the N96 and the N78 - under its popular 'Nseries' sub-brand at the Mobile World Congress⁵ held from February 11 to 14, 2008, at Barcelona, Spain.. The launch of the two new phones came after the success of other multimedia mobile phone models brought out under this sub-brand - the N95, the N73, the N90, the N80 etc. In June 2007, Nokia had launched another mobile phone the 'E90 Communicator' under its 'Eseries' brand.⁶ The Eseries was another popular sub-brand of Nokia for its business-oriented mobile phones. The E90 was launched as a follow-up to other handsets which had been brought out earlier under the Eseries sub-brand - the E50 and the E65.

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1] "Nokia to Give its Brands the RAZR Edge," www.economictimes.indiatimes.com, September 13, 2006.

2] Lucas Van Grinsven and Tarmo Virki, "Nokia Unveils New, Thinner Multimedia Phones," www.usatoday.com, August 1, 2007.

3] "Nokia Q4 Net Surges 44 p.c.," www.ciol.com, January 25, 2008.

4] Ovum is a leading provider of industry data, knowledge, and expertise on the commercial impact of technology, regulatory, and market changes. It is a part of the Datamonitor Group.

5] The Mobile World Congress is an annual exhibition cum congress of mobile phone makers around the world organized by GSM Conference Ltd., a wholly-owned subsidiary of the GSM Association.

6] "All About Nokia E90," www.nokia-e90.blogspot.com, June 13, 2007.


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