#HMD raised expectations of #Nokia #Android sales #NokiaCMD16

screenshot-38

We somehow missed an interesting statement from Nokia Technologies’ Internal President Brad Rodrigues given at Nokia Capital Markets Day last week in Barcelona. Brad stated that the feedback from consumers and partners on Nokia’s return to mobile market was so positive, that HMD Global raised its internal sales prediction for Nokia-branded Android devices.

Official: Nokia smartphones coming in 2017 #NokiaCMD16

We do not know the precise numbers of the initial expectation or how much are the expectations now increased, but, no matter how small it is, growth is always welcome.

#Nokia could earn $400 million per year for brand licencing

  • Michael

    First, I don’t believe anything CEO’s say regarding projections.

    Second, HMD will spend 540 million Euros on marketing….over 3 years. Minimum spend, I get it, but a minimum of 180 million Euros per year.

    In 2012, deep into Lumia marketing, Nokia spent 3.2 billion on Sales and Marketing..just for the one year. http://www.nokia.com/sites/default/files/files/nokia-in-2012-pdf_0.pdf. Samsung and Apple currently spend billions of dollars yearly

    They better get it 100% right the first time. They’ll need the help of all these Android fan sights. They’ll need them to get behind Nokia and push it as a great comeback story with fantastic products. Average just isn’t going to cut it.

    Remember the Jean Claude Van Damme Volvo commercial? https://www.youtube.com/watch?v=M7FIvfx5J10 85 Million views. Marketing better be clever and put that 180 million Euros to good use.

    • Agree there, Nokia can’t settle for average. They need to be visible in the sea of android devices. Regarding the marketing, smart marketing can be cheap, but it needs to be smart and calculated. Nokia lost lots of their money on giving their stuff to wrong people that didn’t bring back new customers. That scenario happened in Croatia and resulted in not so great sales of Lumia.

      • Michael

        The money Nokia and Microsoft threw at Windows Phone and Lumia was incredible.

        I was just looking at Microsoft and Youtube sites. Microsoft’s most viewed is 15.7 million. Samsung’s is 45.8 million views. A Volvo commercial truck commercial has 85 million. That’s one example of the clever type of Marketing that Nokia/HMD need to harness.

    • A lot of social media advertising, review units to every blog, and giveaways. Wouldn’t bother with TV ads.

      • TV Ads can help, and billboards, maybe billboards more then ads since new generations aren’t watching tv so much.

        • Michael

          I wonder what exactly 95% brand awareness means. That the brand is known? ok.

          I currently live in Asia and have been coming over here for work since the 90’s. I remember NOKIA everywhere. Billboards, stores, commercials. Samsung has completely taken over with Apple being very popular as well with the other brands fighting for scraps (Although Huawei is doing pretty well). People still know Nokia. I think anyone 30 and up for sure have a good memory and feeling about the brand, but the younger kids that have been looking at phones since Nokia went with Microsoft have a very bad feeling about Nokia. They hated the phones…really the OS (lack of apps), but the Nokia brand has that associated stink to overcome over here. I think it is the same problem in US, but even moreso since Nokia was really never popular there.

          This is where I’m worried about the 95% brand awareness and trust claims. If HMD really thinks they can slide back into the game with a lame marketing budget and strategy and an average product, just banking on the name, HMD stands a good chance of failing.

    • Rce

      Just One Simple Reply: Xiaomi,One Plus,Oppo,Vivo doesn’t even spend 100 million euros for marketing,still they are in top 5 in smartphone market,and more over Nokia is not a new brand,it’s a great brand with great world wide recognition and Nokia’s name is enough to sell a couple of million phones without even assigning a marketing budget..

      • Michael

        Can you point me to any earnings statements or other documentation showing their marketing budgets? I actually don’t doubt they spend less than 100 million, but I’d like to see how much they are spending since you pointed that out.

        Couple million phones sold won’t cut it. Xiaomi, One Plus, Oppo, Vivo are doing well, mostly in Asia, because they provide decent specs for cheap. And by most reviews, you get what you pay for. Speaking of Asia, I mentioned below one small hurdle that Nokia will need overcome. In the US, they have the same problem only moreso.

        Where is the Nokia brand going to slot in? Compete at the cheap (low profit) level or with the big guys? Answer is at all levels probably.

        Hey, we’ll see soon enough.

        • Rce

          http://www.adageindia.in/So-Xiaomi-Pays-for-Advertising-After-All/articleshow/47737651.cms A small post regarding Xiaomi’s first advertisement for Indian market

          http://www.referralcandy.com/blog/oneplus-word-of-mouth-marketing/
          One Plus with Only $300 marketing budget..

          http://www.gadgetsnow.com/tech-news/Chinese-smartphone-companies-Oppo-Vivo-and-Gionee-planning-big-for-Diwali/articleshow/54307559.cms And finally,Oppo-Vivo with 100 crore marketing budget in India..

          Now,second part couple of millions and market share if with just limited market space Oppo,Vivo,Xiaomi can reach upto top 5 brand in the world,then with brand value of Nokia it can reach top 5 within 2 years..Plus,Nokia have better brand recognition in Latin America,Europe,Africa..

          Now,the last part what will be Nokia’s ideal pricing strategy,in this case ideal strategy will be like Motorola’s 2015 strategy 2/1 phone below $250, one phone under $300,and a flagship under $450..just the perfect way Nokia can capture the market ,just the way last Nokia lumia phones 730,830,930 were released at $250,$350 and $450..the same strategy with slightly lower price tag and better specs sheet..

          • Michael

            Thanks for the old links, but they don’t really tell me what I’d like to know. I’ll address two of your links.

            One Plus’s INITIAL marketing budget, however, was unique and very successful for sure. Here is a link to OnePlus founder’s comments on their marketing. Still a year and a half old, but …interesting. https://blog.oneplus.net/2015/07/a-few-words-on-oneplus-marketing/ Basically, they can’t afford to do traditional marketing but their marketing budget continues to increase. As of the time of that link, the latest confirmed budget number was a ridiculously low 10k+

            “In the start, we spent $0 on marketing, which then crept up to $300, $10,000, and eventually even more. Recently, I’ve seen some people asking why we are spending money on marketing. I want to take this opportunity to answer that. We believe that great products should be put into the hands of as many people as possible, and to reach more people,
            some marketing is necessary. However, it must be responsible for our users. What I mean is, only if we can reach out to more people while at the same time not increasing our margins or prices, will we do it.” We’ll see how long they last.

            Oppo Marketing. April 2016

            http://telecom.economictimes.indiatimes.com/news/chinese-smartphone-maker-oppo-to-spend-10-times-more-on-marketing-this-fiscal/51708059 “”The Indian market is strategically important for us. We spent Rs100 crore around the World T20 championship in just one month here, which shows our focus on the market,” Sky Li, company VP and MD of international mobile business, told ET. He declined to specify the overall marketing investment for last fiscal.

            So If I have done my Math correctly, 1 crore = 10 million rupies. 100 crore is 1 Billion Rupies. Divided that by US$68. Oppo spent about US$ 14.7 million in one month for marketing…Just in India

            Another interesting read: http://www.idc.com/getdoc.jsp?containerId=prUS41216716

            I keep hearing better Brand recognition. I get it. More than most having been a loyal Nokia customer since 2002. Brand recognition carries with it certain expectations. You can believe that all the free marketing..Articles from Android sites won’t be kind to the Nokia brand if HMD doesn’t come to market with compelling products at different and competitive price points and instead relies on “Brand Awareness” and public trust. I also still believe there is residual MS stink leftover from the whole Windows Phone experiment that the Nokia brand will need to overcome.

            Nokia also has other aspirations. Getting in to the health wearables/services field. Success in the phone brand, rebuilding trust and building brand awareness/cool factor with fickle under 25’s will help to drive success and adoption in this new field that Nokia highlights in it’s future plans.

            Smart, appropriate ($$$’s) Marketing in conjunction with great products will help to (hopefully) fuel Nokia’s resurgence.

            Anyway, as I said, we’ll see soon enough.

          • Rce

            Ok,agree with the first part,but still this brands marketing budget doesn’t reach $150 million in a year,now coming to Oppo’s part they’re using only India’s offline market so they’re marketing budget will always be high,plus sponsoring a Sports show is different then actual product marketing…

            Now,the second and final part of Products spec sheet and pricing,i know good spec sheet with an good pricing will only attract tech reviewers and bloggers,now also a fact is that the last Nokia devices with windows were pretty much excellent value for money at that year(Lumia 730,930 etc),so even if Nokia come back at that rate they can capture the market well,also i mentioned about how Motorola made a successful comeback with Moto G,E and X and the with Moto Z,they’re not entering into spec sheet only competition like most Chinese brands instead they’re providing good value for money products with an excellent software-hardware support,now i feel this part is more important than Marketing,if your product is already good enough it’ll automatically gain success,like One Plus 3,but if you’re product is not good/value for money but you’re spending heavy amount in marketing only then your device will end up like Asus Zenfone 3 and Huawei Honor 7..

            Thanks for reading,we’ll meet again..
            #LONGLIVENOKIA..

          • Michael

            Sponsoring a sports show is a form of marketing…but it’s still marketing.

            Funny you mentioned Asus, over here (Thailand), I’ve only seen an Asus phone in one store and it was not in the main display case area, but hidden off to the side. One anecdotal example does not paint the entire picture, but still, Asus and Lenovo get almost 0 love here. Speaking of Huawei, my 9Plus is a great phone. Nokia’s flagship will have to beat it for me to change (I think it will).

            Here is what we know about Nokia by looking into the past. As you already pointed out, they nearly went bankrupt by not seeing the success that Apple (and later Android) would have. They bet big (and were heavily subsidized my MS) on helping to bring a 3rd mobile ecosystem to market (I had a great 920 and a POS 930). Again, they were blindsided by the lack of app support by developers, but really it was the big names (Google, Facebook for a long time, Snapchat, Instagram for a long time) that did the most damage, IMO. No amount of marketing (and big dollars were spent by MS and Nokia) could overcome MS hate. They built a successful mapping alternative to Google after an 8 billion dollar investment and probably billions more developing Here only to turn around and sell it for 3 billion.

            The point is, I don’t see were there is all this brand trust that the CEO of Nokia and HMD keep bragging about but then I don’t have any visibility in India, Europe, South America. I do see brand awareness of 95% and I know there is some pent-up demand for an Android based Nokia phone but (I fear) Nokia is slowly becoming that phone that your grandfather used.

            Whatever Nokia’s marketing budget, it has to be unique. It has to leverage the past to get previous Nokia’s users back in but cool enough to bring in new and younger customers. Nokia needs to be able to rally support from Android sites and any mediocre attempt will be completely slammed. Their phones need to be the best in each price category.

            As a fan, it’s easy to say, “Nokia will be back and back
            big”. But Investors have to be more critical. Nokia/HMD better damn sure be more critical.
            I’ve said it before. Nokia won’t get a 4th chance to make a first impression.

            Yup…#LONGLIVENOKIA