Nokia Transforming Into Internet Services Firm

Mosh, Ovi, Nokia Music store,Maps the intentions are pretty clear services are the prime agenda for Nokia .However the road ahead is not going to be easy all the Internet services areas Nokia has selected, barring navigation, are crowded with several major Internet brands already.That means the new venture isn’t likely to be a money spinner right away. Analysts calculate that mobile services will add just about 10 per cent to Nokia India’s revenues over the next two to three years.Business Standard reports on Nokia's transformation from a mobile phone manufacturer to becoming an internet services firm.

Last year, Nokia India’s Finnish parent decided to set itself up in competition with Internet giants like MySpace, iTunes and Google. But even the world’s largest mobile vendor couldn’t do this on its own. So it started off by buying Loudeye, a digital music platform and distribution company for $60 million.
This year, Nokia added on Twango, a company that developed a platform to let people share content online and on their phones. And then it shelled out $8.1 billion for a navigation and mapping company, Navteq.
The results of the shopping spree are already evident. A few months ago, Nokia launched Mosh, an online community for developers to develop applications that can be downloaded by users.
Now, it has unveiled Ovi, a platform for the company’s Internet services that will initially include a music store and games.Ovi will be launched in India in Q1 2008. It will allow access to Nokia’s social network, communities, on-demand music and games besides other entertainment content.
Already, Nokia N95 devices have started shipping with maps that enable users to find their way to people and places. The maps services will also have a route finder (with optional voice navigation) and the ability to “share your favourite places
Services like the Nokia Music Store and N-Gage, parts of Ovi, aim to make it easy for Indian mobile enthusiasts to search, try and buy music and games from a range of publishers, including exclusive content only available through Nokia.

It also provides insight into Nokia's segmentation based marketing strategy and how initially the high-end lifestyle users are its best options for the services strategy.

Earlier this year, Nokia also rejigged its retail strategy based on a two-year-long segmentation study. The survey covered 42,000 consumers from 16 countries to understand the impact of lifestyle choices and attitudes on the mobile devices consumers buy and how they use them. The survey classified consumers in four groups based on their income level, lifestyle and usage.

Accordingly, Nokia now has separate marketing strategies — customised products and advertising — to address the needs of each segment. Live, for instance, offers basic handsets low on features and price. It is aimed at first-time users whose basic need is to stay in touch with voice as the main driver.

The second segment, Connect, focuses on more evolved users who seek functionality, features and connectivity. Accordingly, phones in this segment offer GPRS, camera and music capabilities. The next two categories, Achieve and Explore, are aimed at high-end users and include top-end handsets like Nseries and Eseries.

Read the full Business Standard article here