The picture of Nokia drastically transformed itself from 2007 to 2012.
It’s journey from the the 5th most valuable brand in the world to a desperate brand in the market, company valuation from $150 billion to $12 billion, global market share of smartphones from 50% to a little over 3%, market share of market from over 60% to a mere 10% is the story of nokia in the 5 years.Microsoft took over the Nokia’s handset and services division for a $7.2 billion in September 2013.The era ended with the selling off handset division to Microsoft. This is the story of dramatic rise and sudden fall of an iconic brand. Nokia symbolizes the ERA in mobile telephony. Following are the 5 branding mistakes to be learnt from Nokia.Do not be complacentBrands should not underestimate the competition.
Nokia was an example for acute complacency. Brands should be very aggressive with respect to the competition and it’s offering in the market.Cannibalize your own businessNokia needed to cannibalize its own businesses to make it’s way for the future. Apple masters this strategy. If the company does not cannibalize its own products, someone else in the market will cannibalize the market share. Another brand that follows this strategy is GilletteAnticipate the futureNokia did not plan for future developments in the market.
The world was moving from keypads to touch phones, hardware excellence to ecosystem prudence, closed system to open system software.Symbian was not the OS of the future. The market share was irreversibly lost to Google Android and Apple IOS.Be flexible and AgileMobile phones have one of the fastest cycles of obsolescence. Nokia had one of the largest workforce and longest churning period for getting new products to market. Brands should be able to accommodate the changing needs of customer and the product development cycle should be short and quick.Communicate, Communicate and CommunicateNokia is not clear of the value proposition that it offers to the market. The experience of the smartphones did not strike a chord among the customers.
The information flow and consistent communication is the key to a brand’s success. Brands should communicate about their past glory, their current readiness and their future aspirations. Communication is the prime need to connect with customers, who are eventually responsible for making or breaking the brand.