Nokia 2007 Annual Report Download - page 36

services for corporate customers and resellers, as well as professional services to help corporate
customers with more complex mobility solutions.
Sales and Marketing—Devices
Sales
The Customer and Market Operations horizontal group is responsible for the sales of Nokia mobile
devices from the Mobile Phones, Multimedia and Enterprise Solutions business groups. Most of Nokia’s
mobile device business derives from sales to operators, distributors, independent retailers, corporate
customers and consumers. However, the percentage of our total device volume that goes through
each channel varies by region. In 2007, distributors accounted for approximately 90% of our device
volumes in the AsiaPacific region, approximately 90% in the Middle East & Africa and approximately
75% in China. In Europe, distributors and operators each accounted for approximately 40% of our
volumes during 2007. And in Latin America and North America, operators accounted for more than
80% of our 2007 volumes in each region.
Each of our active operator and distributor customers is supported by a dedicated Nokia account
team. In addition, customer executive teams led by Nokia Group Executive Board members focus on
both our devices business and Nokia Siemens Networks for the largest operator groups.
We also have specialized sales channels for certain device business groups in order to reach
customers in segments where we are introducing mobility. Each of these channels is specific to, and
managed by, an individual device business group. For example, Enterprise Solutions manages sales of
its products and solutions to certain resellers or systems integrators who contribute value, such as
consulting services or additional software, before distribution.
Marketing
The Business Week and Interbrand annual rating of 2007 Best Global Brands positioned Nokia as the
fifth mostvalued brand in the world, up from sixth place in 2006. Other highlights from 2007
included:
• We continued to build the Nokia Nseries and Nokia Eseries subbrands with important
campaigns for the Nokia N95, Nokia N95 8GB and N81 multimedia computers, as well as for
the Nokia E90 Communicator and Nokia E65 businessfocused devices.
• As part of our retail activities, we opened a new Flagship Store in Shanghai during 2007. We
also opened a flagship store in London during February 2008, bringing the total number of
Flagship Stores to eight. Our Flagship Stores sell a wide range of Nokia products and provide a
Nokiabranded experience directly to consumers in some of the world’s major cities.
• We increased our digital marketing efforts by building electronic marketing campaigns that
engage consumers within social networks, both online and on mobile devices. This type of
social media engagement has enabled a continuous dialogue with consumers who are at the
forefront of the social web phenomenon.
• During 2007, we began implementing an eightstep program designed to increase consumer
retention and loyalty. The eight focus areas cover both Nokia’s consumer value proposition in
terms of the portfolio of products and services we offer and the delivery of the value
proposition to the consumers in terms of our sales and marketing activities with distribution
channel partners.
Production—Devices
The Customer and Market Operations horizontal group is responsible for production and logistics for
devices from Mobile Phones, Multimedia and Enterprise Solutions, including management of the
mobile device factories. The Customer and Market Operations horizontal group is also responsible for
process development in the demandsupply network.
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