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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Dominating the Mobile Phone Market Contd...

Analysts felt that these two sub-brands had contributed a lot to the revival of the Nokia brand, which had been consistently losing its brand value in the early 2000s. The launch of the new models would further enhance the mother-brand, they felt.

Though Nokia had been the clear market leader in the mobile phone market since 1998 with the 'Nokia' brand consistently featuring among the world's top few brands, the early 2000s saw a major erosion in the company's brand value.

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In particular, the year 2004 saw a major erosion in the company's market share as well as brand value, as the younger buyers opted for the trendier mobile phones offered by its rivals such as Motorola Inc.⁷ (Motorola), Samsung Electronics Co. Ltd.⁸ (Samsung), and Sony Ericsson Mobile Communications AB⁹ (Sony Ericsson).

Realizing that its focus on marketing low-priced mobile phones in the developing countries was hampering its brand image in the mature markets of Europe and the US, Nokia started taking some initiatives to rejuvenate the brand in 2005. This included a renewed emphasis on new product development and branding and moving beyond the umbrella branding that it had been zealously following until then.

Analysts felt that the two sub-brands, the Nseries and the Eseries, had helped Nokia in capturing a significant portion of the new market for high-end multimedia mobile phones and business-oriented mobile phones respectively...

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7] Motorola Inc., headquartered in Schaumburg, Illinois, USA, is a leading telecommunications company. Its revenues for the fiscal year 2006 were US$ 42.87 billion.

8] Samsung Electronics Co. Ltd., headquartered in Seoul, South Korea, is one of the world's largest electronics companies. Its revenues for the fiscal year 2006 were US$ 79.6 billion.

9] Sony Ericsson Mobile Communications AB, headquartered in Acton, London, UK, is a mobile phone company formed in 2001 as a joint venture between one of the leading consumer electronics companies Sony Corporation (Sony) of Japan and a leading mobile phone company Ericsson AB (Ericsson) of Sweden. It was the world's fourth largest mobile phone company as of July 2007. Its revenues for the fiscal year 2006 were €10,959 million.


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