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1. MVentur memo: Q1 2013
Nokia - It’s time to switch: from
technological features to social benefits

2. What does Nokia need to do now?
Nokia’s key proposition needs to evolve from features (design and form
factor) to benefits (social utility).
Focus on Total Cost of Ownership
Nokia’s core brand position in the eyes of its Fans is based on Total
Cost of Ownership.
Total Cost of Ownership doesn’t just mean calls and devices but also
repairs, apps and accessories.
TCO is a key selling point for both the customer and the mobile
operator. By demonstrating a strong TCO Nokia is able to:
• Help the mobile operator understand where Nokia fits in to their
device portfolio and provides clarity on how they should market/
price it accordingly
• Help retailers identify the key messages to market and sell the
device in store and online
• Help the customer understand the Nokia value proposition relative
to Apple and Samsung
For competitor brands like Apple, the accessory market may be lucrative
for the retail business but for Nokia, this market is off the company P&L.
This means that a device that doesn’t need accessories (covers,
fascias, unique chargers etc) has a lower TCO for the customer.
If Nokia continues to focus on Maps & Music, it delivers a message
inconsistent with its valued TCO. Fans see Nokia as reliable; Battery life,
camera quality, speed of call connection and the robustness of its
handsets rank highly in our research (Fan articulations of the brand).
What Nokia has to do is let go of its tightly controlled brand
management approach to the narrative and work with these Fans to
allow them to tell the story too.
Less TCO = More Choice
Rather than focus on the features of the Nokia handset, Nokia needs
work with Fans to articulate and emphasize the benefits of owning a
device with low TCO.
Youth spend 36% of their disposable income on mobile phones. That
means any increase in mobile spending is a cannibalization of existing

3. spending habits (e.g. entertainment, travel, eating out etc). Buying a
competitor brand like Apple means forfeiting future spending on these
meaningful activities. Devices that offer a lower Total Cost of Ownership
offer more choice in youth social life.
By demanding less ongoing ownership costs, Nokia devices offer youth
more choice - more money and time to spend on shopping,
entertainment etc. “Spend less on your phone, spend more time with
your friends.”
Don’t compete on price or technology, compete on Social Benefit
Nokia marketing needs to emphasize these social benefits rather than
the tangible features of the handset. People buy on emotion but justify
with logic. While youth may say they “like” Windows 8, what they love is
very different (spending time with friends, being significant etc).
Fans have their own interpretation of TCO that will differ from the story
told by Nokia and the ad agency. Our research shows that even at this
early stage of Lumia’s life, Nokia Fans have ignored the official
monolithic story given by the ad agency and created their own.
Nokia needs to go beyond the traditional approach on using ad agencies
to sell the Nokia story to engaging its Fans offline (at the daily brand
touch points) and understanding how these influencers defined the
Social Benefit of low TCO for Nokia phones.

4. About MVentur
MVentur is the world’s first youth mobile consultancy.
We have 2 roles:
1) Advisor to our clients
We oversee marketing plans, act on advisory panels and consult our
clients. Find out more about our consultancy work.
2) Commercial think tank for the mobile industry
We promote progressive marketing ideas that help mobile companies go
beyond advertising. Read more about our youth mobile opinion pieces.
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