For thousands of Indians, what Maruti is to cars and Colgate is to toothpaste, and Nokia is certainly to mobile phones. In the early 90s to the Finnish company has played a pivotal role in the evolution of the concept of phone dial phones to mobile phones tacky savvy. But today Nokia is a fading brand, with a market share in India to 27% bump in 2013. Now, Software giant Microsoft buy’s Nokia Mobile Services about ($7.17 Billion into Rupee) Rs 48,685 crore, a deal as Nokia phone sector to revive the brand ?
Brand experts ET spoke to say that it will not be easy to instill new life into the image Nokia laggard and revive its business.
“Nokia lost the plot on both the top and bottom end,”Santosh Desai, marketing expert and CEO of Future Brands, says.”At the top end, while it lost market for Apple and Samsung, and at the bottom end of it can not survive the attack, handset manufacturers, Chinese, Indian home-grown ‘. While it was trying to restore itself, recovery was a little too late,”he says.
Experts say Nokia was a little too late to join rode smart phone, and that the current advertising and marketing strategy lacks focus and vision.
Harish Bijoor, brand expert and CEO of Bijoor Harish Consulting, compares Nokia for Dalda, which dominated the market VANASPATI for decades before fading out because it became a year and failed to innovate.”Nokia was the first mover in India, but lost in the end to everyone and has become a brand and General as Dalda has become,”he says.
“While the public sector ITIBSE 1.11% ( Indian Telephone Industries ) led the era of mobile tour of the rotary dial, led Nokia ERA buttonphone, and missed the era of touch screen smart completely,”says Bijoor.
As a result, Nokia’s market share in the Rs 5,946 crore dog-eat-dog Indian mobile phone market, and stumbled from 73% in 2000 to 56% in 2008 to 27% in 2013. Even at the global level, the company was the largest seller of mobile phone last decade. However, with the rise in demand for smart phones touch screen, Nokia lost the battle for Samsung and Apple.
And the company’s share price fell from $40 in 2007, when it had a 40% stake in the mobile market, to less than $2 in mid-2012. Nokia now represents only 15 % of the sales of mobile phones in the world, and just 3% of the sales of smart phones. The operating system uses Nokia Windows Phone from Microsoft for smartphones, while the market dominated by Google Android and Apple iOS.
When it began its journey Nokia in India, however, it is supported by a communications strategy aggressive and effective, and managed to break the model of the ‘ premium versus popular’ brand on the basis of price points, says Subhash Kamath, CEO and managing partner of BBH India.
Subhash Kamath, CEO and managing partner of BBH India, says:”It was a unique Nokia in such a way that it broke the common model for the ‘ premium versus popular ‘ brand on the basis of price point, which usually occurs in other categories.
“It was a Nokia ambitious in every price point, for people in the levels of different income or social classes and economic development. Everyone wants to have the latest Nokia within what we can afford,”says Kamath, who is the former CEO of Bates handled the duties of creative 2000-2007.