Nokia 2011 Annual Report Download - page 59

The costs related to our future disruptions-related activities are reported under Devices & Services
Other.
Sales and Marketing
Nokia has the industry’s largest distribution network, with more than 850 000 points of sale globally
alongside our own growing online retailing presence. Compared to our competitors, we have a
substantially larger distribution and care network, particularly in China, India, and the Middle East and
Africa. In 2011, we announced planned changes to our sales and marketing operations, including
reorganizing geographic units with the primary aim of strengthening our teams’ responsiveness to
market demands and their customers’ needs.
We derive our net sales of mobile devices primarily from sales to mobile network operators,
distributors, independent retailers, corporate customers and consumers. However, the total device
volume that goes through each channel varies by region. In 2011, sales in North America and Latin
America were predominantly to operator customers, sales in Asia-Pacific, China and Middle East and
Africa were predominantly to distributors, and sales in Europe were more evenly distributed between
operators and distributors. Location & Commerce provides data to end-users through multiple
distribution methods, including mobile device manufacturers such as Nokia, retail establishments, the
Internet, automobile manufacturers, and other redistributors. That business licenses and distributes its
database in several ways, including licensing and delivering the database directly and indirectly to its
business customers and consumer end-users.
Our marketing activities play a fundamental role in our effort to bring people great mobile products. Our
activities are designed to create loyalty, enhance the Nokia brand and drive more sales. We are among
the top brands in the world according to the Interbrand annual rating of 2011 Best Global Brands.
During 2011, we continued to consolidate our marketing effort around the Nokia brand, with the aim of
presenting a clear, simple and more coherent image of Nokia. Notably, we began a process of
gradually phasing out the Ovi brand name we have used for certain services and experiences and
replacing it with the Nokia brand. We have also continued to expand our digital marketing efforts,
including engaging consumers through our own social media channels.
Production
For the production of mobile devices, we operate a global manufacturing network with facilities in Asia,
Europe and Latin America.
In connection with the implementation of our new strategy, we have announced a number of planned
changes to our operations resulting in the closure or planned closure and reconfiguration of certain Nokia
facilities. During 2011, we announced the closure of our facility in Cluj, Romania, and production ended in
Cluj in late 2011. In January 2012, we announced that De’ Longhi, a global leader in household
appliances, will acquire the facility. In February 2012, we announced planned changes at our facilities in
Komárom in Hungary, Reynosa in Mexico and Salo in Finland. We plan to focus those facilities on
smartphone product and sales package customization, serving customers mainly in Europe and the
Americas, while our smartphone assembly operations will be transferred to our facilities in Asia – Beijing
in China and Masan in South Korea – where the majority of our component suppliers are based.
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