Nokia 2003 Annual Report Download - page 36

Sales and Marketing
Continuous strengthening of the Nokia brand is a critical component of our overall corporate
strategy. According to a survey published in July 2003 by Interbrand, the Nokia brand was
recognized as the sixth most valued brand in the world. We have invested heavily in print and
broadcast advertising, such as our ‘‘Connecting People’’ campaign, as well as sponsorship of a
variety of sporting and leisure events including the Nokia FIS snowboard world cup tour and the
Nokia Sugar Bowl. We also promote our products by sponsoring movies in which Nokia phones
feature prominently alongside the lead characters.
This year, Nokia also created the new N-Gage brand for its new mobile game deck. Because the
games industry has a different dynamic to the mobile phone market, we required a fresh brand to
create a response and connection within that industry. The N-Gage brand positions the game deck
as a top-of-the-line games device. The design, technology and craftsmanship in this product live up
to the high standards set for all Nokia products. We are using a wide range of media, including
TV, print, outdoor, retail and online to reach our target audience of adults who enjoy and own
game devices and consoles.
Generally, our product marketing is carried out partly through our own campaigns and sales
promotions and partly through initiatives driven by operator and distributor customers, such as
the linking of Nokia phones with operators’ promotional campaigns. A significant share of our
phone and device business derives from sales to operators, distributors and independent retailers,
with smaller volumes provided by online channels such as NokiaUSA.com. As the popularity of
mobile phones and devices increases worldwide, mobile phone and device manufacturers must
address an extremely diverse audience with their marketing communications. This diversity goes
beyond geographic or cultural diversity and includes differences in other factors relevant to
mobile phone and device users, such as the benefits that users hope to derive from their mobile
phones and devices, lifestyles, demographics and psychological profiles.
As a result of our reorganization, Nokia now includes the new horizontal group, Customer and
Market Operations. This horizontal group comprises Sales and Channel Development; Marketing;
Operations and Logistics; and Sourcing and Procurement. It aims to ensure a coordinated approach
to the sales of mobile phones and devices, and serves and supports the Mobile Phones, Multimedia
and Enterprise Solutions business groups.
Networks continues to be responsible for its own dedicated sales and marketing activities.
Networks’ sales and marketing channels mainly comprise dedicated global account management
teams for operator customers. Product marketing is carried out primarily through our own
campaigns and promotions.
Production
Nokia operated 16 manufacturing facilities in nine countries around the world as at December 31,
2003. Our principal supply requirements are for electronic components such as semiconductors,
microprocessors, micro controllers, memory devices and displays, which have a wide range of
applications in our communications products. Our products also incorporate software provided by
third parties.
Mobile Phones and Devices
The production and logistics for the phone and device businesses of Mobile Phones, Multimedia
and Enterprise Solutions will be managed by Operations and Logistics, including control of the
mobile phone and device factories. The Operations and Logistics organization is also responsible
for the process development in the demand supply network area, including the Enterprise
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