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Harvard Case - Nokia Siemens Networks: Branding a Global Merger from the Inside Out

"Nokia Siemens Networks: Branding a Global Merger from the Inside Out" Harvard business case study is written by Nader Tavassoli, Simona Botti, Gudrun Herrmann. It deals with the challenges in the field of Marketing. The case study is 17 page(s) long and it was first published on : Sep 30, 2013

At Fern Fort University, we recommend a comprehensive integrated marketing strategy for Nokia Siemens Networks (NSN) that emphasizes internal branding alongside external brand positioning. This strategy will leverage the combined strengths of Nokia and Siemens, focusing on innovation, reliability, and global reach to establish NSN as a leading provider of telecommunications solutions.

2. Background

This case study focuses on Nokia Siemens Networks (NSN), a joint venture created in 2005 by merging Nokia's telecommunications business with Siemens' communication networks division. The merger aimed to create a global leader in the telecommunications equipment market, leveraging the strengths of both companies. However, NSN faced challenges in establishing a unified brand identity and effectively communicating its value proposition to both internal and external stakeholders.

The main protagonists of the case study are:

  • NSN Management: The leadership team responsible for overseeing the merger and developing a successful branding strategy.
  • Employees: The workforce of NSN, comprising former Nokia and Siemens employees who must adapt to a new organizational culture and brand identity.
  • Customers: Telecommunication operators and service providers who are the target market for NSN's products and services.

3. Analysis of the Case Study

To understand the challenges facing NSN and develop a comprehensive branding strategy, we will utilize the following frameworks:

1. SWOT Analysis:

  • Strengths:
    • Strong brand heritage: Both Nokia and Siemens have established reputations for quality and innovation.
    • Global reach: Combined presence in key markets worldwide.
    • Complementary product portfolios: Offering a comprehensive range of telecommunications solutions.
  • Weaknesses:
    • Lack of a unified brand identity: Confusion among customers and employees about the merged entity.
    • Integration challenges: Merging two distinct corporate cultures and operating models.
    • Internal communication gaps: Insufficient communication about the merger's benefits and the new brand identity.
  • Opportunities:
    • Growing demand for telecommunications infrastructure: Expansion of mobile and broadband services.
    • Emerging technologies: Opportunities in 5G, IoT, and cloud computing.
    • Focus on sustainability: Developing environmentally friendly solutions.
  • Threats:
    • Intense competition: From established players like Huawei and Ericsson.
    • Rapid technological advancements: Maintaining competitiveness in a rapidly evolving market.
    • Economic uncertainties: Global economic fluctuations impacting investment in telecommunications infrastructure.

2. Competitive Analysis:

NSN faces intense competition from established players like Huawei, Ericsson, and Cisco. These competitors offer a similar range of products and services, with strong brand recognition and global market presence. To differentiate itself, NSN needs to emphasize its unique strengths, such as its combined expertise in technology and innovation, its global reach, and its commitment to customer service.

3. Consumer Behavior Analysis:

NSN's target market consists of telecommunication operators and service providers. These customers are highly sophisticated and demand reliable, innovative, and cost-effective solutions. They value strong partnerships and long-term relationships. Understanding their needs and preferences is crucial for developing a successful brand positioning strategy.

4. Marketing Mix (4Ps):

  • Product: NSN offers a diverse range of products and services, including network infrastructure, software, and professional services. The focus should be on developing innovative solutions that address the evolving needs of the telecommunications industry.
  • Price: NSN needs to develop a competitive pricing strategy that balances profitability with market share. This could involve value-based pricing, bundling, and flexible payment options.
  • Place: NSN's global reach provides a strong foundation for distribution. It should leverage its existing channels and explore new opportunities in emerging markets.
  • Promotion: NSN needs to develop a comprehensive marketing communications strategy that effectively communicates its brand message to both internal and external stakeholders. This should include a mix of traditional and digital marketing channels, such as advertising, public relations, social media, and content marketing.

4. Recommendations

To address the challenges outlined in the analysis, we recommend the following:

1. Internal Branding:

  • Communicate the merger's value proposition: Clearly articulate the benefits of the merger for employees, highlighting the combined strengths and opportunities.
  • Develop a unified corporate culture: Foster a sense of shared purpose and values across the organization, promoting collaboration and teamwork.
  • Empower employees as brand ambassadors: Encourage employees to champion the new brand identity and communicate its message to customers and stakeholders.

2. External Brand Positioning:

  • Define a clear brand identity: Develop a unique brand positioning statement that reflects NSN's core values, strengths, and target market.
  • Develop a strong brand name and logo: Create a memorable and recognizable brand identity that resonates with customers.
  • Focus on innovation and reliability: Emphasize NSN's ability to deliver cutting-edge solutions and reliable performance.
  • Leverage global reach and expertise: Highlight NSN's global presence and its ability to provide solutions tailored to specific market needs.

3. Marketing Communications Strategy:

  • Integrated marketing communications: Develop a consistent brand message across all channels, including advertising, public relations, social media, and content marketing.
  • Targeted marketing campaigns: Segment the market and tailor marketing messages to specific customer groups.
  • Digital marketing initiatives: Utilize digital marketing channels like search engine optimization (SEO), search engine marketing (SEM), social media marketing, and content marketing to reach a wider audience.
  • Customer relationship management (CRM): Implement a CRM system to track customer interactions, manage relationships, and provide personalized experiences.

4. Product Development and Innovation:

  • Focus on emerging technologies: Invest in research and development to develop innovative solutions in areas like 5G, IoT, and cloud computing.
  • Develop customized solutions: Offer tailored solutions that address the specific needs of different customer segments.
  • Collaborate with industry partners: Partner with other technology companies to develop and deliver integrated solutions.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core competencies and consistency with mission: The recommendations align with NSN's core competencies in technology, innovation, and global reach. They also support the company's mission to provide leading telecommunications solutions to its customers.
  • External customers and internal clients: The recommendations address the needs of both external customers and internal employees, fostering a sense of unity and shared purpose.
  • Competitors: The recommendations differentiate NSN from its competitors by highlighting its unique strengths and value proposition.
  • Attractiveness: The recommendations are expected to generate positive returns on investment (ROI) by increasing brand awareness, customer loyalty, and market share.

6. Conclusion

By implementing a comprehensive integrated marketing strategy that emphasizes internal branding and external brand positioning, NSN can overcome its challenges and establish itself as a leading provider of telecommunications solutions. This strategy will leverage the combined strengths of Nokia and Siemens, focusing on innovation, reliability, and global reach to achieve sustainable growth and success in the competitive telecommunications market.

7. Discussion

Other alternatives not selected include:

  • Focusing solely on external branding: While important, this approach would neglect the crucial role of internal branding in building a unified and engaged workforce.
  • Adopting a purely cost-cutting strategy: This approach could jeopardize the company's long-term growth and competitiveness by sacrificing investment in innovation and customer service.

Key assumptions of our recommendation include:

  • The merger will be successfully integrated: This assumption is crucial for the success of the branding strategy.
  • NSN will invest in technology and innovation: This assumption is critical for maintaining competitiveness in a rapidly evolving market.
  • The global telecommunications market will continue to grow: This assumption is based on the ongoing expansion of mobile and broadband services.

8. Next Steps

To implement the recommendations, NSN should take the following steps:

  • Develop a detailed marketing plan: Outline the specific strategies, tactics, and timelines for implementing the recommendations.
  • Establish a dedicated branding team: Assemble a team of marketing professionals to oversee the branding strategy and its execution.
  • Communicate the strategy to all stakeholders: Ensure that all employees, customers, and partners understand the new brand identity and its implications.
  • Monitor and evaluate results: Track the effectiveness of the branding strategy and make adjustments as needed.

By taking these steps, NSN can successfully brand its global merger from the inside out, establishing itself as a leading player in the telecommunications industry and achieving sustainable long-term growth.

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Case Description

A handful of global players dominated the telecommunications infrastructure industry in 2007. The benefits to scale were significant: substantial funding requirements were necessary to sustain continuous innovation and development of networks, products and services; key customers themselves were globalising (e.g., operators such as Telefรณnica and Vodafone); and low-price competition from Asia (e.g., Huawai) increased pressures towards consolidation. In 2006, French Alcatel and the US firm Lucent Technologies joined forces and in 2007 Nokia Siemens Networks (NSN) was established.

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