Marketing Plan
Marketing Plan:
Executive Summary:
Mobile phone, which is defined as a high technology electronic product, is popular all over the world. China must be one of the biggest markets for those mobile phone manufacturers. As a leader in mobile telecommunications market, Nokia has its scientific business strategy that leads to success, and pays a great attention to the market of China. Based on the Chinese mobile phone market, this paper analyzes Nokia’s business strategy to show reason of Nokia’s success.
In planning to launch a new concept phones in the mature market with the changes in the charging system. Nokia is a big company and big name so they have the target market and by launching this first objective is to maintain the quality and then to boost the logo which is “connecting people”. They are basically reducing gap between the people.
The business strategy includes the strategic intent, the competitive strategy and marketing mix. The strategic concept of Nokia is to take the demand-side strategy. Nokia subdivides the whole market into several objective markets according to the researches about the partialities of different individuals. And then different types of mobile phones are put into the market aimed at attracting different consumer groups. The competitive strategy of Nokia is to improve the innovative ability to win the competitive advantage. Strong technological innovation ability makes Nokia stand in the most forward position of mobile industry all the time, and characterized this brand by a special vitality. And the marketing mix of Nokia is to use the integrated marketing strategy including product, price, promotion and place. It values the construction of a brand, the orientation of its products and pays a lot of attention to technology improvement. It increases the sales through sensitive advertisement presentation to the celebrities and large-scale entertainment.
Nokia is a world leader in the mobile industry. The products produced by this business concern are valued all over the world very well. Nokia has successfully met the changing needs, demands and dynamic trends of the customers. In its operation Nokia has given a full consideration to Research and Development. Whatever the market, Nokia targeted, it always faced success. The strategies adapted by Nokia are fully in accordance with the market needs and demands, that is why Nokia has captured a large market sector and instead of hard competition it is still market leader.
Introduction:
Nokia is famous all over the world as a successful mobile phone manufacturer. It keeps being the leader in the mobile telecommunications relies on its plentiful experience, technology innovation and scientific marketing strategy. The concept of the company is “technology connecting people”, which has been rooted in people’s mind deeply. The company emphasizes the consideration of humanity either in the decision of marketing strategy or in the management of the corporation.
In 1985, Nokia established its first branch company in Beijing, which means that Nokia has entered the Chinese market. And now the employee of Nokia in China has increased far beyond 6000. Nokia insists on the combination of products and research in China. It has set up two research centers in China and paid a great attention to the cooperation with other local company. Nokia is a reputable brand all over the world and is famous for its technology, quality, features and innovation.
Nokia is engaged in manufacturing of mobile devices and in converging Internet and communication industries with 128,445 employees in 120 countries, sales in more than 150 countries. It is the world’s largest manufacturer of mobile telephones. Nokia produces mobile devices for major market segment and protocol, including GSM, CDMA, and W-CDMA. Nokia offers Internet services that enable people to experience music, maps, media, messaging and games. Nokia’s subsidiary Nokia Siemens Networks produces telecommunications network equipment, solutions and services. As it has a huge market share in mobile phones and now it can diversify into Nokia networks.
Scope:
Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations.
It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding:
a) The timing of product and solution deliveries. b) Our ability to develop, implement and commercialize new products, solutions and technologies. c) Expectations regarding market growth, developments and structural changes. d) Expectations regarding our mobile device volume growth, market share and prices. e) Expectations and targets for our results of operations. f) The outcome of pending and threatened litigation. g) Statements preceded by "believe," "expect," "anticipate," "foresee," "target," "designed" or similar expressions are forward-looking statements.
Because these statements involve risks and uncertainties, actual results may differ materially from the results that we currently expect.
Factors that could cause these differences include, but are not limited to:
1. The extent of the growth of the mobile communications industry and the new market segments in which we have recently invested; 2. Price erosion and cost management; 3. Timing and success of the introduction and roll-out of new products and solutions; 4. Competitiveness of our product portfolio; 5. Our failure to identify key market trends and to respond timely and successfully to the needs of our customers; 6. The impact of changes in technology and the success of our product and solution development; 7. The intensity of competition in the mobility industry and changes in the competitive landscape; 8. Our ability to control the variety of factors affecting our ability to reach our targets and give accurate forecasts; 9. The availability of new products and services by network operators and other market participants; General economic conditions globally and in our most important markets; 10. Our success in maintaining efficient manufacturing and logistics as well as the high quality of our products and solutions; 11. Inventory management risks and ramping up or down production at our facilities, which result from shifts in market demand; 12. Our ability to source quality components without interruption and at acceptable prices;
Vision of the future:
Nokia is a consumer led company. There is a progressive and continuous increase in consumer involvement with technology and communications globally. People are broadening their modes of communication to include the web and social networks are becoming central to how people communicate. People want to by truly connected, independent of time and place, in a way that is very personal to them. And Nokia’s promise is to connect people in new and better ways. Nokia’s strategy is to build trusted consumer relationships by offering compelling and valued consumer solutions that combine beautiful devices with enriched services.
“Connecting people” is now connecting people to what matters- whatever that means for each person- giving them the power to make the most of every moment, everywhere, any time. Connecting the “we” is more powerful than just the individual. That’s how Nokia is needed to help make the world a better place for everyone.
“Our customers continue to our First Priority” Nokia’s future success depends on delivering great experiences to our customers by creating products and solutions that work seamlessly and are appealing.
Mission Statement:
Nokia Corporation defines its mission to connect people through mobile phone technology and quotes its mission statement as follows
“Our strategic intent is to build great mobile products our job is to enable billions of people everywhere to get connected” * Customer: To maintain customer confidence by continuing to provide quality service specifically designed to meet their needs.
* Market: To be recognized as a market innovator in the mobile phone industry to continuing to improve our business practice.
* Business: To ensure the team has a complete understanding of all Mobile Network Internal Systems and Procedures and that each team member is responsible for compliance with the Business Management System.
* Training: To develop ongoing training strategies to empower personal with skill levels essential for future company success.
* The Team: To create the best possible working environment, promoting career enhancement and job security, encouraging trust in the company and loyalty to the customer.
“In a world where everyone can be connected, we take very human approach to technology”
Connecting is about helping people to feel close to what matters. Wherever, whenever, Nokia believes in communicating, sharing and in the awesome potential in connecting the 2 billion who do with the 4 billion who don’t. if we focus on people, and use technology to help people feel close to what matters, then growth will follow. In a world where everyone can be connected, Nokia takes a human approach to technology.
Strategy of Nokia:
There are following strategy of Nokia Company * Focused on handset manufacture only * Enhance product portfolio * Increase distribution channels * Adjust preferences for specific markets * Customer satisfaction * Focused on replacement * Increase commitment to emerging market * Improve collaboration on designs * Ensure accountability and quality * Aggressive pricing
Situation Analysis:
Swot analysis:
This section of marketing plan gives details analysis of company strengths, weakness and its opportunities and threats outside in the market. Every company has these four factors present in it. Strengths and weakness are the internal factors of the company while opportunities and threats are external factors. In case of Nokia the same situation exists and its details are as follows:
Strengths:
* Nokia has world-class research, design and engineering team * Nokia has global relationships with all major phone companies worldwide * Nokia is rated the world's fifth most valuable brand * Nokia's strong management team has come through many crises unscathed * Huge market share in mobile sector * Nokia has highly qualified personnel * Nokia leads the global cell phone industry * Nokia has very good financial position, higher return on equity (ROE), return on assets (ROA) and net profit margins (NPM) * Nokia is also known for the Creativity, Innovativeness, durability & reliability * User friendly with many accessories * Largest network of selling and distribution * Global expansion * Long battery life * High re-sale value compared to other competitors * Strong financial support for R & D * Strong customer relation
Weaknesses
* Nokia will likely be late in developing third-generation (internet-enabled) phones * Poor after sales service * Very few service center * Not targeting promotion toward a huge class * The price of the product is the main issue * Nokia is not taking promotions to target the lower class of society * After sale services are very weak * Low voice quality * Market skimming prices of high set * Less stylish in low priced products Opportunities:
* The world biggest phone companies are willing to pay top dollar to offer its customers Nokia's snazzy phones * There is growing world market for cell phones and network, especially in developing countries such as China and India * The cell phone market should reach 1.5 billion units per year by 2007 * To expand with a wide range of products, features, and different price range to suit different people * Nokia has ample of opportunity to expand its business * Increase their presence in 3G and edge market * Improvise on camera quality * Mini notebooks * Ne growth markets * Other handheld devices
Threats:
* The European market for cellular phones with current technology is nearly saturated-threats from competitor like Airtel and Vodafone * Nokia has many threats to tackle to maintain its position as market leader * The threats like emerging of other mobile companies in the market * The growing demand of WLL network can cause drop in sales for Nokia, as Nokia provides many less CDMA phones to the customer * Sales may decline due to global economic downturn * To maintain the position as one of the best in the market because Apple I-phone and devices running on Google’s Android operating system have come to stand of tough competition with Nokia * Cheap phones, advances features and good after sales services
PEST analysis:
PEST analysis identifies the political, economic, social, technological, environmental and legal factors that of which directly affect a company.
Political Factors:
Political/Legal environment are usually considered as one because they are enforced by the Nation’s Government. It is vital for Nokia’s operation because different nations with their respective government have different Political/Legal platforms respectively; Nokia operating on global level must abide to ground rules and regulation in different markets of host countries around the world. To its success, Nokia surveys its scope of limits in order to isolate prohibited actions, regulations and aid from the government so as to withstand the international trade.
Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples include:
* Tax policy * Employment laws * Environmental regulations * Trade restrictions * Political stability
All these factors should be kept in mind while the functioning of the organization takes place. For the success of any organization political relations should be good so that it in favor of the development of the economy.
Economic Factors:
Economy in tells the production and consumption of goods and services. As far as Nokia is concerned, the economic system is critical as it can control what the organization is to produce, how it should produce and the category of recipient who should use their end products.
On one hand, aspects of international trade is important for Nokia being the global supplier of mobile phones and on the other hand, the knowledge concerning the nation’s economic status With incomes rising, people have more disposable income, which enables consumers to be more selective with their choice of mobile phone, looking to other factors rather than fulfilling the most basic of user needs (text messaging and phone calls) and price being such a key factor.
Economic factors affect the purchasing power of potential customers and the firm’s cost of capital. The following are examples of factors in the macro economy:
* Economic growth * Exchange rates * Inflation rate
The present condition of the economy should be kept in the mind of the organization, and should contribute towards the development of the economy.
Social Factors:
Nokia operates in a diverse number of culture and all levels of social class simply because different models are frequently released to satisfy all individuals despite their difference in race, nationality, religion, income level or beliefs among each other. Mobile phones can easily adapt to any culture and can be used to support different aspects and existing patterns of Individual’s lifestyle or behavior.
The rise of the so-called information society has made telecommunications increasingly more important to consumers, both in terms of work and leisure. Users are more aware of mobile phone handset choice and advancements due to increased information availability.
Social factors include the demographic and cultural aspects of the external macro environment. These factors affect customer needs and the size of potential markets .Some social factors includes:
* Population growth rate * Age distribution * Career attitudes * Emphasis on safety * Culture * Social class * Lifestyle * Demographics * Psychological factors
If Nokia want to have a huge market share then they have to learn the condition of the society. They have to learn the demography of the Indian society. They should know the needs of the society and should provide good quality services.
Technological Factors
Technology change defines how fast technology advances. Being the prominent medium by which we get things done; technology as a process, in terms of mobile phones defines the way we make contact. Not only does it helps shape culture but also changes other aspects within and/or outside the organization for example the need to upgrade Equipments to en-better the manufacturing of the end products. The success of Nokia is based on constraint innovation on human technology. By enhancing communication and exploring new ways to exchange information connecting people. Nokia allow users to get more out of life.
Technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include:
* R&D activity * Automation * Technology incentives * Rate of technological change
As Nokia is famous in mobile phone technology, and till now they are providing new technologies in cell phones which are appreciated by customers and in case of Nokia networks they have to provide strong network which will be present everywhere and this will only be possible only if Nokia has advanced technology.
Market Strategy:
Nokia’s corporate responsibility strategy is to engage, improve and be accountable. They constantly measure and review their performance in economic, environmental and social issues. They engage in stakeholder dialogue and form partnerships that serve the areas they want to improve upon. They pursue focused and practical improvement programs in relevant organizational or geographical areas as part of business operation- this involves business planning, internal communications, training. They increase accountability to stakeholders through reporting, and informative internal and external communications activities.
What makes them unique is the way they do it. Based on the same approach that guides the rest of their activity. – ‘ The Nokia Way’ – their corporate responsibility is developed through logical steps, with much of the work concentrated inside the company, much of the work built on existing programs, and many stages taken forward in parallel.
According to them it is essential to drive corporate responsibility through the company- wide strategy process, support issue owners in building cases for ethical improvement and implementation, and increase accountability to both internal and external stakeholders.
For them, corporate responsibility is an integral and continuous part of decision-making in all parts of theirs business; taking responsibility for the consequence of their actions. Its’ a belief that by focusing on issues over which they have most influence and which their stakeholders consider important, they will be able to mobilize more of company resources, be more proactive, and ensure long term programs.
The Nokia Strategy continues to focus on three activities to expand mobile communications in terms of volume and value.
* Expand Mobile voice * Drive consumer multimedia * Bring extended mobility to enterprises
Marketing strategy starts off with marketing objectives, target market, segmentation, marketing mix and marketing research. Distribution explains the channel through which the products are available to customers. For the success of company its distribution channels plays vital roles.
Objectives:
Nokia is the world’s number one mobile phone company and a successor in the global Phone Industry. Being an industry leader on a Global Level, Nokia is fully engaged into excelling environmental performance and assume corporate responsibility in all their operations. It therefore maintains its position by living up its slogan, “Connecting People”, by abiding by main objectives.
1. To build great mobile products 2. To help people feel near to what matters to them 3. To enable billions of people to get more of life’s opportunities through mobiles. 4. To capture volume and value growth to connect “the next billion people” to the internet in developing growth markets.
However, as any other organization, Nokia faces many challenges which forces flexibility and ease of transformation on their way of executing operations. How then, does Nokia operate in accordance to the different aspects as far as business is concerned?
As Nokia knows that everyone in the world needs communication, it insists on helping people fulfills this need by providing consumers with very human technology- technology that is intuitive, a joy to use and beautiful. While in the Chinese market, the marketing objectives of Nokia are to take the first in the field of mobile communications. And become the international enterprise welcomed by government, operator and consumer most of all. Besides these, Nokia in China is determined to become the best employer that has the ability to attract and keep outstanding talents.
Because of such market target, the strategy of Nokia relies on growing, transforming, and building the Nokia business to ensure its future success.
Successful marketing plan of Nokia has made it to reach all over the world. The objectives of marketing plan show are clear and legitimate. The following are some of the main objectives of Nokia;
* Customer Satisfaction * Customer perception * Customer needs expectation * Generating income or making profit * Be aware of an environment
Targeting and Positioning of Nokia:
Targeting the potential customer is the main target of the every marketing plan.
Positioning is placing the product in the different types of population. Identification of the potential consumers is the main thing that needs to be done to sell the product. Nokia has also some serious concerns to choose the right target audience. They chose the youth market that is falling between the ages of 13-19. They research conducted by Nokia shows that youths are receiving lot of packet money and they are not having any commitments to spend that money. So its lot easier for them to buy mobile phones from the pocket money. Nokia is branded company and can able spend lot of money on promoting and advertising the product.
Companies smaller than Nokia cannot able to afford big amount for the ads. Television ads give good results and it must be played at right time to attract huge number of audiences. Nokia has also had the idea of targeting the business people. For this reason Nokia conducted some events to promote the product among the businessman’s. they placed the ad in television and banner where the large number of audience can get view the ads.
Nokia also spreads the product in the magazines. Particularly in men’s magazines, because the large amount of Nokia Phones are bought by the Men’s. Nokia’s targeting and positioning is been good. It contains the mix of attracting the large viewers as well as they are attracting more specific ones. By following this method, Nokia’s marketing won’t let them down in any recession.
Target market of Nokia S51 is mostly youth and professionals and also those who loves technology and like innovations in their lives.
Marketing Mix Strategies:
The mix marketing program, which is one of the major concepts in modern marketing, means a set of controllable, technical marketing tools that the firm blends to produce the goods or services to meet the demands in the target market. It consists of everything that a company has ability to do to influence the demands for its product.
Marketing mix can be defines as: grouping elements in the marketing strategy of a company. These elements are product, price, promotion and distribution and also known as four P’s and can be explained further more as follows.
Product:
There are many choices for a company to make its product strategy. Among them, the product orientation strategy, the brand strategy and the product development strategy are the most three important choices.
Product is the centre of marketing mix and other three P’s revolve around it. Consumers buy product and services for different uses and company must be of aware of all these when selling a product. In case of S51 a proper research was conducted and it was then carefully developed by taking consideration of customers and potential customers.
After subdividing, confirming the target market, how to enter and capture that market becomes the essential problem for Nokia. This is a problem about its products orientation. The market researches of Nokia shows that the consumers can make decisions completely in accordance with their own preferences, the product brand, the ability of the economy, consumer confidence and other personal characteristics, when supplied with the mobile phone products with the same quality and effort. In this so-called buyers’ market, the marketing strategy should be corresponding to the characteristics of the different consumption community to win the competition. Nokia has done well in this area. Researchers in Nokia analyze the different personalities, divide consumer groups and decide what kind of mobile phones should be supplied to a particular consumer community. So the Nokia mobile phones have won a great number of supporters around the world. It is no doubt that the Nokia mobile phones will be considered first of all when a person decides to buy a mobile phone because of its high ability, special design and good reputation.
A brand is a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service. Consumers view a brand as an important part of a product, and branding can add value to a product. And product design is certainly affect the success of the brand. Nokia keeps being good at molding the good brand image by injecting individuality into product design. It has considered a lot about how the customers will choose the brand, and how it can make that experience reflect the brand character. For example, Nokia designers believe that the screen of a phone is the "eye into the soul of the product". The shape of phones is curvy and easy to hold. The soft key touch pads also add to the feeling of friendliness, expressing the brand personality. All in a word, the design of a mobile phone is essential and important to the development of Nokia.
At the year of 2006, Nokia has won several design awards because of the four successful types of mobile phones. Nokia 8800, Nokia N70, Nokia 7370 and the N series are the awarded phones. All of them has gained glorification and always been welcomed by consumers since the day they were put into the market. Here shows that Nokia has paid a great attention to the fit the consumers’ demands and acquired encouraging repayments.
Price:
Price is another key factor in selling any product. The company has to review their price policies and make adjustment as required per competition and customer's ability to buy. Nokia is well aware its competitor and cannot ignore the fact the competitor are putting pressure and Nokia has to cut their prices in order to compete with them accordingly. Our new handset price is reasonable as compared to major competitor. The price for S51 has been set 385 pounds by taking considerations of all factors like customers ability to buy competitor's prices and credit crunch that is affecting the sales of new product more adversely.
The price of a product reflects that the business enterprise should satisfy the various kinds of demand and get profit to ensure its general index object. The pricing objectives are the guidance for an enterprise to make price decision, which means the purpose or the standard that the company consciously wants to attain while setting a price for its product. The pricing decision means that the business enterprise set a reasonable price for its product scientifically so that it could achieve the goal. And the major method for Nokia to make its pricing decision is the Brand Life Cycle Model that means to set different prices based on different life cycle of the product. That means to set a high price for new products, medium price for second-line products and low price for third-line products. The new products are the substitutes for the original first-line products. Once there has a change or development, whether it is technical, functional or just on the packaging and even it is the slightest one, the price can jumped to a new level.
The technologies applied to mobile phones are innovated fast because of the short life cycle of the mobile phone. When the market is not saturated, the competition is not intensifying, and the transparency of the product technology is not very high, the enterprise could access to excess profits most easily. Once the new entrants and the transparency of improving technology increase, it only can get a basic profit. So it is necessary for a new product to have a high price, which could make the enterprise earn excess profits. When others begin to supply the similar products, it is essential to provide substitutes with improvements and reduce the price of the original ones. It is not only ensure the sales of the new products, also lengthen the life time of the old ones. As long as the enterprises innovates, challenges itself, surpass itself, it will be able to keep leadership when compete with other manufacturers.
Meanwhile, the price should be made on the basis of sufficient market researches on consumers. No matter what an advanced technology that a product has, it is successful only the consumers love and purchase it. Take Nokia 88 series and 89 series as an example, these phones were made for those customers who have strong purchase abilities and treat the mobile phone as a symbol of their status. So this kind of mobile phones usually has a high price and a long life cycle, and seldom reduces their price because their users do not change their mobile phones too frequently.
Promotion:
Promotion refers to the use of effective ways to attract consumers’ attentions and acquire their comprehensions to understand and pay attention to their products and to stimulate consumer desire to purchase and promote the realization of the final purchase. The promotional strategy for Nokia to increase the sales is the integrated promotional strategy. It is a series of activities inform the consumer the existence and characteristics of the enterprises, brands and products, which could arouse the market demands, create and maintain the image of a company. The promotional activities of Nokia are always based on the topic like fashion, convenience and function etc. Especially in the past two years, it pays more and more attention to attract consumers and create consumer group through the usage of emotional elements.
"Technology Connecting People" is the distinguished brand concept of Nokia, which has been rooted in consumers’ mind through some traditional promotion methods like TV advertisements, magazine advertisements. But now, it adopts some new ways to publicize its products. Nokia usually contracts with film distributors to make its phones appear in the film. This is actually an advertisement in a different form. People could see Nokia phones in the TV or film just like “Friends”, “Love of Scenery” and “An Empire” etc. And Nokia takes the lead to use the celebrity effect and presents the celebrity with its own products. It also holds programs accord with its products to publicize the brand, concept and the culture of Nokia.
Marketing Channel Strategy of Nokia:
Distribution is a channel that delivers the product or service to customers across all regions. Nokia mobiles phones are generally available at car phone warehouse and other electrical retailer all over the world. Again for the success of company its well managed distribution channel plays vital roles.
The marketing channel strategy is a set of inter-reliant channels through which the products could be spread from manufacturers to the consumers. The meaning of products here is not restricted to the tangible ones. The marketing channel strategy is an important component of the entire marketing system, which plays a significant part in reducing the cost and enhancing the competitive power of the enterprise. Along with the market development, the patterns of the marketing channel strategy are diversified. The vertical marketing system, horizontal marketing system and hybrid marketing system are three common forms.
Nokia choose its local business agent based on 5C principle. That is to say, Nokia will decide whom to choose according to their capital, credibility, channel, cooperation and management. Once the decision is made, the agent must comply with the contract, and sale the phone in his own area. The office should supply perfect base station for the sell. Meanwhile, pay attention to the network marketing and try to take the intensive marketing strategy in all domains.
In 2005, Nokia chose new channel pattern called FD, which has ability to change the provincial agent into funds platform, save a lot of intermediate links and make the channel flat. Through this method, most of Nokia monopoly stores can acquire the ability of direct supply, which will help Nokia reduce the decision time, ensure the profit of its terminal cooperators and its good post-sale service.
Customer Analysis:
Nokia will be targeting all segments of the people, by providing them all kinds of services according to their needs. Today customers wants goods and services according to their needs Nokia having separate plans for students, teenager adults, service people, business people etc. i.e. nokia will be providing customized products.
Competitor Analysis:
Airtel is leading the market with 93.923 million subscribers, capturing a market share of 32.57%. BSNL bags third position with 46.684 million GSM subscribers. Followed by this is Idea, with a subscriber base of 43.023 million in comparison to 41.519 million a month earlier. The new entrant Aircel, ended March with 18.478 million subscribers, holds 6.41% of market share. Reliance Telecom GSM subscriber base reached 11.145 million from 10.745 million in February 09. So, Airtel, Vodafone, Bsnl, Idea, Aircel, Reliance are major competitors which can hinders in the growth of Nokia.
Competitors:
This section of marketing plan gives details analysis of key and major competitors present in the market and tells us about their market position and their strategies.
Sony Ericson:
Sony Ericson is one of the major threats to Nokia and is continuously evolving and bringing more features to its product. Sony Ericson Satio and Experian are major threats to Nokia. These phones are most advanced and touch screen one. Their prices are low as compared to previous Nokia modern's phones and their camera is 12.1 megapixels that is higher than Nokia current camera ranges.
Apple:
Apple I Phone is another major threat to Nokia and has been most attractive touch screen phone among the customers. For the first time apple introduced its 3.5 inch touch screen with all modern features. It is well equipped with audio, video, music, web access and contact management functions etc. It plays and contributes a major success to the apple industry. Apple has launched a new version of I Phone called 3GS that is most fast and also has enhanced version of its features.
Motorola:
Motorola is also a leading brand in the market and has been introducing new mobile phones over period of times that also has been attractive to customers. Recently Motorola has come up with its new phones Milestone and Droid that are also well equipped with most modern features including touch screen, window operating system, keyboard, 5 megapixel camera etc.
Samsung:
Samsung is also one of the leading brands in the market and people like it and think it a reliable product. Recently it has launched its new phones known as Samsung omnia II and Samsung omnia pro. These phones shows most advanced features like sliding qwerty, 3.5 touch screen, windows operating system, 5MP camera etc.
LG:
LG is also a leading brand and is constantly launching new phones in the market. LG New Chocolate BL40 Black has been designed to be the ultimate internet experience on the move. Its 4 inch wide screen is big enough to display full length web pages .It has 5 MP camera and built in GPS etc.
Competitive Strategy of Nokia:
Theories of competitive strategy:
There are five kinds of basic competitive strength in an industry.
They determine the potentiality for profit of this industry. The potentiality here is measured in the long-term investment, and not every industry has the same potentiality. The final profit potentiality will change fundamentally with the change of the joint competitive strength. The result comes out from the interaction of the competitive strength is to form three kinds of basic competitive strategies.
Those strategies are: overall cost leadership strategy, differentiation strategy and focus strategy. The first strategy means to make the greatest efforts to lower commodity prices through reducing costs, then to maintain competitive advantage. It is necessary to improve the control of cost because the profit of a low-cost company could be much more than the average level. While in the competitive market, this is essential for a company to overpower its competitors, to take the initiative and to be a winner.
The second strategy is to provide a unique product or service that is more functional, more fashionable or handsome. If a differentiation strategy can be achieved, it would help the company acquire the extraordinary income in this area. Because it can establish a defensive position to deal with the five competitive forces, and maintain the competitive advantage on the basis of the customer brand loyalty. Finally, the main strategy is to focus on a particular customer base or a certain regional market. This requires a company to provide goods or services more efficaciously to a narrow strategic target, and then surpass their competitors in a wider scale. This strategy has the potential to gain profit over the average level. The competitive strategy of Nokia in China:
The Chinese market of mobile phone is large and attractive for each mobile phone manufacturer. And so it is no doubt that the competition in Chinese mobile phone market is intense. Even though Nokia is in a leading position in global mobile communications industry, it always maintains a high degree of vigilance. Motorola must be its major competitor either in China or other areas. Any call Corporation comes from Korea also wants to seize this profitable market. Meanwhile, more and more local mobile phone manufacturers appear and acquire support from some consumers. Nokia could never slacken itself. The basic competitive strategy of Nokia is the differentiation strategy, which requires winning the competitive advantage through improving its innovative ability continuously. Strong technological innovation ability makes Nokia stand in the most forward position of mobile industry all the time, and characterized this brand by a special vitality. How to meet demands of realistic market? This is the biggest challenge which the Hi-Tech company faces together. Nokia pays a great attention to technology innovations, and has invested a lot in developing new technologies to maintain its leadership. Till now, Nokia has 54 researches & develop centers all over the world. These centers work hard to analyze the global market and keep on providing new concept, new demands to the company. This ensures its advanced technology and leading position. In China, Nokia has 2 R&D centers which are located in Beijing and Hangzhou separately. So that the researches in China develop fast and won great reputation. Relied on these investments Nokia has enough resources to do researches, and could always keep ahead of others. The individuation is the marrow of the Nokia mobile phones. On the gradually ripe market of mobile phone, the dazzling and outstanding design is even more important than the technology. Nokia is far-sighted that takes the initial to establish an independent apartment which are specialized in appearance design. The assignment of this apartment is to provide mobile phones with diversification and individual character. Over the past 10 years, the factor that Nokia’s continually updated product design has become a unique competitive advantage. Under the guidance of the philosophy called “technology connecting people”, Nokia has not only won the leading position in mobile phone market, it also fit the customers’ needs accurately. Nokia also makes great effort to innovate upon technology, produce new mobile phones continuously, create good cooperative relationship with local companies and carry out humanized management. All of these are essential for Nokia to hold its competitive advantage and leading position.
Financial analysis:
It provides nokia’s financial position all around the world and tells the success of nokia.
Conclusion:
The success of any businesses is based on whether they can give the customer what they want and when they want it. Market research involves the collection, collation and analysis of data relating to the consumption and marketing of relevant goods and services.
The main purpose of market research is to find out whether there is a gap in the market for your product or service or whether you can make customers want your product through persuasive adverting. As we all know very well that there is a market for mobile phones but the current market gap has become saturated (or if not saturated, almost saturated) so Nokia need to find a new market segment to aim their products at. In order to classify the wants and needs of the consuming population, companies need to gather information on the Consumer behavior-well how do customers react to advertising? Whether they are partial to prize give-away or free gifts? What are their reactions to new and developed products?
Organizations need to look at how buying trends and patterns are affected by class, gender, religion and region. They also need to understand how buying patterns change over time and what markets are expanding and are worth trying to enter and capture more customers.
It is the responsibility of company to find out that what customers are looking for in a product, for example, style, color, technology, amount of outlets, customer service etc.
One of the major responsibility of Nokia as market leader is to examine how their rivals are adapting their prices and products to meet the consumer’s needs.
Market research should supply the company with all the information they require about consumers preferences, whether they buy certain products, what design features are preferable and what kind of retail outfits are most frequently used for purchasing certain products. Research analysis also measures customer's attitude towards competing brands and products. Brand awareness research also helps to determine the effectiveness and efficiency of our messages and media.
As Nokia is the leading manufacturer of mobile phones whole over the world, its new strategy of diversification in Nokia Mobile Network will be at great success, also customers are loyal to Nokia and Nokia has positioned itself properly in the minds of all the customers. It will be easier for Nokia to attract its existing customers. Besides this Nokia with its latest technology and strong networks is laying more stress on rural areas where till now no network has satisfied rural people.
Executive Summary:
Mobile phone, which is defined as a high technology electronic product, is popular all over the world. China must be one of the biggest markets for those mobile phone manufacturers. As a leader in mobile telecommunications market, Nokia has its scientific business strategy that leads to success, and pays a great attention to the market of China. Based on the Chinese mobile phone market, this paper analyzes Nokia’s business strategy to show reason of Nokia’s success.
In planning to launch a new concept phones in the mature market with the changes in the charging system. Nokia is a big company and big name so they have the target market and by launching this first objective is to maintain the quality and then to boost the logo which is “connecting people”. They are basically reducing gap between the people.
The business strategy includes the strategic intent, the competitive strategy and marketing mix. The strategic concept of Nokia is to take the demand-side strategy. Nokia subdivides the whole market into several objective markets according to the researches about the partialities of different individuals. And then different types of mobile phones are put into the market aimed at attracting different consumer groups. The competitive strategy of Nokia is to improve the innovative ability to win the competitive advantage. Strong technological innovation ability makes Nokia stand in the most forward position of mobile industry all the time, and characterized this brand by a special vitality. And the marketing mix of Nokia is to use the integrated marketing strategy including product, price, promotion and place. It values the construction of a brand, the orientation of its products and pays a lot of attention to technology improvement. It increases the sales through sensitive advertisement presentation to the celebrities and large-scale entertainment.
Nokia is a world leader in the mobile industry. The products produced by this business concern are valued all over the world very well. Nokia has successfully met the changing needs, demands and dynamic trends of the customers. In its operation Nokia has given a full consideration to Research and Development. Whatever the market, Nokia targeted, it always faced success. The strategies adapted by Nokia are fully in accordance with the market needs and demands, that is why Nokia has captured a large market sector and instead of hard competition it is still market leader.
Introduction:
Nokia is famous all over the world as a successful mobile phone manufacturer. It keeps being the leader in the mobile telecommunications relies on its plentiful experience, technology innovation and scientific marketing strategy. The concept of the company is “technology connecting people”, which has been rooted in people’s mind deeply. The company emphasizes the consideration of humanity either in the decision of marketing strategy or in the management of the corporation.
In 1985, Nokia established its first branch company in Beijing, which means that Nokia has entered the Chinese market. And now the employee of Nokia in China has increased far beyond 6000. Nokia insists on the combination of products and research in China. It has set up two research centers in China and paid a great attention to the cooperation with other local company. Nokia is a reputable brand all over the world and is famous for its technology, quality, features and innovation.
Nokia is engaged in manufacturing of mobile devices and in converging Internet and communication industries with 128,445 employees in 120 countries, sales in more than 150 countries. It is the world’s largest manufacturer of mobile telephones. Nokia produces mobile devices for major market segment and protocol, including GSM, CDMA, and W-CDMA. Nokia offers Internet services that enable people to experience music, maps, media, messaging and games. Nokia’s subsidiary Nokia Siemens Networks produces telecommunications network equipment, solutions and services. As it has a huge market share in mobile phones and now it can diversify into Nokia networks.
Scope:
Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations.
It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding:
a) The timing of product and solution deliveries. b) Our ability to develop, implement and commercialize new products, solutions and technologies. c) Expectations regarding market growth, developments and structural changes. d) Expectations regarding our mobile device volume growth, market share and prices. e) Expectations and targets for our results of operations. f) The outcome of pending and threatened litigation. g) Statements preceded by "believe," "expect," "anticipate," "foresee," "target," "designed" or similar expressions are forward-looking statements.
Because these statements involve risks and uncertainties, actual results may differ materially from the results that we currently expect.
Factors that could cause these differences include, but are not limited to:
1. The extent of the growth of the mobile communications industry and the new market segments in which we have recently invested; 2. Price erosion and cost management; 3. Timing and success of the introduction and roll-out of new products and solutions; 4. Competitiveness of our product portfolio; 5. Our failure to identify key market trends and to respond timely and successfully to the needs of our customers; 6. The impact of changes in technology and the success of our product and solution development; 7. The intensity of competition in the mobility industry and changes in the competitive landscape; 8. Our ability to control the variety of factors affecting our ability to reach our targets and give accurate forecasts; 9. The availability of new products and services by network operators and other market participants; General economic conditions globally and in our most important markets; 10. Our success in maintaining efficient manufacturing and logistics as well as the high quality of our products and solutions; 11. Inventory management risks and ramping up or down production at our facilities, which result from shifts in market demand; 12. Our ability to source quality components without interruption and at acceptable prices;
Vision of the future:
Nokia is a consumer led company. There is a progressive and continuous increase in consumer involvement with technology and communications globally. People are broadening their modes of communication to include the web and social networks are becoming central to how people communicate. People want to by truly connected, independent of time and place, in a way that is very personal to them. And Nokia’s promise is to connect people in new and better ways. Nokia’s strategy is to build trusted consumer relationships by offering compelling and valued consumer solutions that combine beautiful devices with enriched services.
“Connecting people” is now connecting people to what matters- whatever that means for each person- giving them the power to make the most of every moment, everywhere, any time. Connecting the “we” is more powerful than just the individual. That’s how Nokia is needed to help make the world a better place for everyone.
“Our customers continue to our First Priority” Nokia’s future success depends on delivering great experiences to our customers by creating products and solutions that work seamlessly and are appealing.
Mission Statement:
Nokia Corporation defines its mission to connect people through mobile phone technology and quotes its mission statement as follows
“Our strategic intent is to build great mobile products our job is to enable billions of people everywhere to get connected” * Customer: To maintain customer confidence by continuing to provide quality service specifically designed to meet their needs.
* Market: To be recognized as a market innovator in the mobile phone industry to continuing to improve our business practice.
* Business: To ensure the team has a complete understanding of all Mobile Network Internal Systems and Procedures and that each team member is responsible for compliance with the Business Management System.
* Training: To develop ongoing training strategies to empower personal with skill levels essential for future company success.
* The Team: To create the best possible working environment, promoting career enhancement and job security, encouraging trust in the company and loyalty to the customer.
“In a world where everyone can be connected, we take very human approach to technology”
Connecting is about helping people to feel close to what matters. Wherever, whenever, Nokia believes in communicating, sharing and in the awesome potential in connecting the 2 billion who do with the 4 billion who don’t. if we focus on people, and use technology to help people feel close to what matters, then growth will follow. In a world where everyone can be connected, Nokia takes a human approach to technology.
Strategy of Nokia:
There are following strategy of Nokia Company * Focused on handset manufacture only * Enhance product portfolio * Increase distribution channels * Adjust preferences for specific markets * Customer satisfaction * Focused on replacement * Increase commitment to emerging market * Improve collaboration on designs * Ensure accountability and quality * Aggressive pricing
Situation Analysis:
Swot analysis:
This section of marketing plan gives details analysis of company strengths, weakness and its opportunities and threats outside in the market. Every company has these four factors present in it. Strengths and weakness are the internal factors of the company while opportunities and threats are external factors. In case of Nokia the same situation exists and its details are as follows:
Strengths:
* Nokia has world-class research, design and engineering team * Nokia has global relationships with all major phone companies worldwide * Nokia is rated the world's fifth most valuable brand * Nokia's strong management team has come through many crises unscathed * Huge market share in mobile sector * Nokia has highly qualified personnel * Nokia leads the global cell phone industry * Nokia has very good financial position, higher return on equity (ROE), return on assets (ROA) and net profit margins (NPM) * Nokia is also known for the Creativity, Innovativeness, durability & reliability * User friendly with many accessories * Largest network of selling and distribution * Global expansion * Long battery life * High re-sale value compared to other competitors * Strong financial support for R & D * Strong customer relation
Weaknesses
* Nokia will likely be late in developing third-generation (internet-enabled) phones * Poor after sales service * Very few service center * Not targeting promotion toward a huge class * The price of the product is the main issue * Nokia is not taking promotions to target the lower class of society * After sale services are very weak * Low voice quality * Market skimming prices of high set * Less stylish in low priced products Opportunities:
* The world biggest phone companies are willing to pay top dollar to offer its customers Nokia's snazzy phones * There is growing world market for cell phones and network, especially in developing countries such as China and India * The cell phone market should reach 1.5 billion units per year by 2007 * To expand with a wide range of products, features, and different price range to suit different people * Nokia has ample of opportunity to expand its business * Increase their presence in 3G and edge market * Improvise on camera quality * Mini notebooks * Ne growth markets * Other handheld devices
Threats:
* The European market for cellular phones with current technology is nearly saturated-threats from competitor like Airtel and Vodafone * Nokia has many threats to tackle to maintain its position as market leader * The threats like emerging of other mobile companies in the market * The growing demand of WLL network can cause drop in sales for Nokia, as Nokia provides many less CDMA phones to the customer * Sales may decline due to global economic downturn * To maintain the position as one of the best in the market because Apple I-phone and devices running on Google’s Android operating system have come to stand of tough competition with Nokia * Cheap phones, advances features and good after sales services
PEST analysis:
PEST analysis identifies the political, economic, social, technological, environmental and legal factors that of which directly affect a company.
Political Factors:
Political/Legal environment are usually considered as one because they are enforced by the Nation’s Government. It is vital for Nokia’s operation because different nations with their respective government have different Political/Legal platforms respectively; Nokia operating on global level must abide to ground rules and regulation in different markets of host countries around the world. To its success, Nokia surveys its scope of limits in order to isolate prohibited actions, regulations and aid from the government so as to withstand the international trade.
Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples include:
* Tax policy * Employment laws * Environmental regulations * Trade restrictions * Political stability
All these factors should be kept in mind while the functioning of the organization takes place. For the success of any organization political relations should be good so that it in favor of the development of the economy.
Economic Factors:
Economy in tells the production and consumption of goods and services. As far as Nokia is concerned, the economic system is critical as it can control what the organization is to produce, how it should produce and the category of recipient who should use their end products.
On one hand, aspects of international trade is important for Nokia being the global supplier of mobile phones and on the other hand, the knowledge concerning the nation’s economic status With incomes rising, people have more disposable income, which enables consumers to be more selective with their choice of mobile phone, looking to other factors rather than fulfilling the most basic of user needs (text messaging and phone calls) and price being such a key factor.
Economic factors affect the purchasing power of potential customers and the firm’s cost of capital. The following are examples of factors in the macro economy:
* Economic growth * Exchange rates * Inflation rate
The present condition of the economy should be kept in the mind of the organization, and should contribute towards the development of the economy.
Social Factors:
Nokia operates in a diverse number of culture and all levels of social class simply because different models are frequently released to satisfy all individuals despite their difference in race, nationality, religion, income level or beliefs among each other. Mobile phones can easily adapt to any culture and can be used to support different aspects and existing patterns of Individual’s lifestyle or behavior.
The rise of the so-called information society has made telecommunications increasingly more important to consumers, both in terms of work and leisure. Users are more aware of mobile phone handset choice and advancements due to increased information availability.
Social factors include the demographic and cultural aspects of the external macro environment. These factors affect customer needs and the size of potential markets .Some social factors includes:
* Population growth rate * Age distribution * Career attitudes * Emphasis on safety * Culture * Social class * Lifestyle * Demographics * Psychological factors
If Nokia want to have a huge market share then they have to learn the condition of the society. They have to learn the demography of the Indian society. They should know the needs of the society and should provide good quality services.
Technological Factors
Technology change defines how fast technology advances. Being the prominent medium by which we get things done; technology as a process, in terms of mobile phones defines the way we make contact. Not only does it helps shape culture but also changes other aspects within and/or outside the organization for example the need to upgrade Equipments to en-better the manufacturing of the end products. The success of Nokia is based on constraint innovation on human technology. By enhancing communication and exploring new ways to exchange information connecting people. Nokia allow users to get more out of life.
Technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include:
* R&D activity * Automation * Technology incentives * Rate of technological change
As Nokia is famous in mobile phone technology, and till now they are providing new technologies in cell phones which are appreciated by customers and in case of Nokia networks they have to provide strong network which will be present everywhere and this will only be possible only if Nokia has advanced technology.
Market Strategy:
Nokia’s corporate responsibility strategy is to engage, improve and be accountable. They constantly measure and review their performance in economic, environmental and social issues. They engage in stakeholder dialogue and form partnerships that serve the areas they want to improve upon. They pursue focused and practical improvement programs in relevant organizational or geographical areas as part of business operation- this involves business planning, internal communications, training. They increase accountability to stakeholders through reporting, and informative internal and external communications activities.
What makes them unique is the way they do it. Based on the same approach that guides the rest of their activity. – ‘ The Nokia Way’ – their corporate responsibility is developed through logical steps, with much of the work concentrated inside the company, much of the work built on existing programs, and many stages taken forward in parallel.
According to them it is essential to drive corporate responsibility through the company- wide strategy process, support issue owners in building cases for ethical improvement and implementation, and increase accountability to both internal and external stakeholders.
For them, corporate responsibility is an integral and continuous part of decision-making in all parts of theirs business; taking responsibility for the consequence of their actions. Its’ a belief that by focusing on issues over which they have most influence and which their stakeholders consider important, they will be able to mobilize more of company resources, be more proactive, and ensure long term programs.
The Nokia Strategy continues to focus on three activities to expand mobile communications in terms of volume and value.
* Expand Mobile voice * Drive consumer multimedia * Bring extended mobility to enterprises
Marketing strategy starts off with marketing objectives, target market, segmentation, marketing mix and marketing research. Distribution explains the channel through which the products are available to customers. For the success of company its distribution channels plays vital roles.
Objectives:
Nokia is the world’s number one mobile phone company and a successor in the global Phone Industry. Being an industry leader on a Global Level, Nokia is fully engaged into excelling environmental performance and assume corporate responsibility in all their operations. It therefore maintains its position by living up its slogan, “Connecting People”, by abiding by main objectives.
1. To build great mobile products 2. To help people feel near to what matters to them 3. To enable billions of people to get more of life’s opportunities through mobiles. 4. To capture volume and value growth to connect “the next billion people” to the internet in developing growth markets.
However, as any other organization, Nokia faces many challenges which forces flexibility and ease of transformation on their way of executing operations. How then, does Nokia operate in accordance to the different aspects as far as business is concerned?
As Nokia knows that everyone in the world needs communication, it insists on helping people fulfills this need by providing consumers with very human technology- technology that is intuitive, a joy to use and beautiful. While in the Chinese market, the marketing objectives of Nokia are to take the first in the field of mobile communications. And become the international enterprise welcomed by government, operator and consumer most of all. Besides these, Nokia in China is determined to become the best employer that has the ability to attract and keep outstanding talents.
Because of such market target, the strategy of Nokia relies on growing, transforming, and building the Nokia business to ensure its future success.
Successful marketing plan of Nokia has made it to reach all over the world. The objectives of marketing plan show are clear and legitimate. The following are some of the main objectives of Nokia;
* Customer Satisfaction * Customer perception * Customer needs expectation * Generating income or making profit * Be aware of an environment
Targeting and Positioning of Nokia:
Targeting the potential customer is the main target of the every marketing plan.
Positioning is placing the product in the different types of population. Identification of the potential consumers is the main thing that needs to be done to sell the product. Nokia has also some serious concerns to choose the right target audience. They chose the youth market that is falling between the ages of 13-19. They research conducted by Nokia shows that youths are receiving lot of packet money and they are not having any commitments to spend that money. So its lot easier for them to buy mobile phones from the pocket money. Nokia is branded company and can able spend lot of money on promoting and advertising the product.
Companies smaller than Nokia cannot able to afford big amount for the ads. Television ads give good results and it must be played at right time to attract huge number of audiences. Nokia has also had the idea of targeting the business people. For this reason Nokia conducted some events to promote the product among the businessman’s. they placed the ad in television and banner where the large number of audience can get view the ads.
Nokia also spreads the product in the magazines. Particularly in men’s magazines, because the large amount of Nokia Phones are bought by the Men’s. Nokia’s targeting and positioning is been good. It contains the mix of attracting the large viewers as well as they are attracting more specific ones. By following this method, Nokia’s marketing won’t let them down in any recession.
Target market of Nokia S51 is mostly youth and professionals and also those who loves technology and like innovations in their lives.
Marketing Mix Strategies:
The mix marketing program, which is one of the major concepts in modern marketing, means a set of controllable, technical marketing tools that the firm blends to produce the goods or services to meet the demands in the target market. It consists of everything that a company has ability to do to influence the demands for its product.
Marketing mix can be defines as: grouping elements in the marketing strategy of a company. These elements are product, price, promotion and distribution and also known as four P’s and can be explained further more as follows.
Product:
There are many choices for a company to make its product strategy. Among them, the product orientation strategy, the brand strategy and the product development strategy are the most three important choices.
Product is the centre of marketing mix and other three P’s revolve around it. Consumers buy product and services for different uses and company must be of aware of all these when selling a product. In case of S51 a proper research was conducted and it was then carefully developed by taking consideration of customers and potential customers.
After subdividing, confirming the target market, how to enter and capture that market becomes the essential problem for Nokia. This is a problem about its products orientation. The market researches of Nokia shows that the consumers can make decisions completely in accordance with their own preferences, the product brand, the ability of the economy, consumer confidence and other personal characteristics, when supplied with the mobile phone products with the same quality and effort. In this so-called buyers’ market, the marketing strategy should be corresponding to the characteristics of the different consumption community to win the competition. Nokia has done well in this area. Researchers in Nokia analyze the different personalities, divide consumer groups and decide what kind of mobile phones should be supplied to a particular consumer community. So the Nokia mobile phones have won a great number of supporters around the world. It is no doubt that the Nokia mobile phones will be considered first of all when a person decides to buy a mobile phone because of its high ability, special design and good reputation.
A brand is a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service. Consumers view a brand as an important part of a product, and branding can add value to a product. And product design is certainly affect the success of the brand. Nokia keeps being good at molding the good brand image by injecting individuality into product design. It has considered a lot about how the customers will choose the brand, and how it can make that experience reflect the brand character. For example, Nokia designers believe that the screen of a phone is the "eye into the soul of the product". The shape of phones is curvy and easy to hold. The soft key touch pads also add to the feeling of friendliness, expressing the brand personality. All in a word, the design of a mobile phone is essential and important to the development of Nokia.
At the year of 2006, Nokia has won several design awards because of the four successful types of mobile phones. Nokia 8800, Nokia N70, Nokia 7370 and the N series are the awarded phones. All of them has gained glorification and always been welcomed by consumers since the day they were put into the market. Here shows that Nokia has paid a great attention to the fit the consumers’ demands and acquired encouraging repayments.
Price:
Price is another key factor in selling any product. The company has to review their price policies and make adjustment as required per competition and customer's ability to buy. Nokia is well aware its competitor and cannot ignore the fact the competitor are putting pressure and Nokia has to cut their prices in order to compete with them accordingly. Our new handset price is reasonable as compared to major competitor. The price for S51 has been set 385 pounds by taking considerations of all factors like customers ability to buy competitor's prices and credit crunch that is affecting the sales of new product more adversely.
The price of a product reflects that the business enterprise should satisfy the various kinds of demand and get profit to ensure its general index object. The pricing objectives are the guidance for an enterprise to make price decision, which means the purpose or the standard that the company consciously wants to attain while setting a price for its product. The pricing decision means that the business enterprise set a reasonable price for its product scientifically so that it could achieve the goal. And the major method for Nokia to make its pricing decision is the Brand Life Cycle Model that means to set different prices based on different life cycle of the product. That means to set a high price for new products, medium price for second-line products and low price for third-line products. The new products are the substitutes for the original first-line products. Once there has a change or development, whether it is technical, functional or just on the packaging and even it is the slightest one, the price can jumped to a new level.
The technologies applied to mobile phones are innovated fast because of the short life cycle of the mobile phone. When the market is not saturated, the competition is not intensifying, and the transparency of the product technology is not very high, the enterprise could access to excess profits most easily. Once the new entrants and the transparency of improving technology increase, it only can get a basic profit. So it is necessary for a new product to have a high price, which could make the enterprise earn excess profits. When others begin to supply the similar products, it is essential to provide substitutes with improvements and reduce the price of the original ones. It is not only ensure the sales of the new products, also lengthen the life time of the old ones. As long as the enterprises innovates, challenges itself, surpass itself, it will be able to keep leadership when compete with other manufacturers.
Meanwhile, the price should be made on the basis of sufficient market researches on consumers. No matter what an advanced technology that a product has, it is successful only the consumers love and purchase it. Take Nokia 88 series and 89 series as an example, these phones were made for those customers who have strong purchase abilities and treat the mobile phone as a symbol of their status. So this kind of mobile phones usually has a high price and a long life cycle, and seldom reduces their price because their users do not change their mobile phones too frequently.
Promotion:
Promotion refers to the use of effective ways to attract consumers’ attentions and acquire their comprehensions to understand and pay attention to their products and to stimulate consumer desire to purchase and promote the realization of the final purchase. The promotional strategy for Nokia to increase the sales is the integrated promotional strategy. It is a series of activities inform the consumer the existence and characteristics of the enterprises, brands and products, which could arouse the market demands, create and maintain the image of a company. The promotional activities of Nokia are always based on the topic like fashion, convenience and function etc. Especially in the past two years, it pays more and more attention to attract consumers and create consumer group through the usage of emotional elements.
"Technology Connecting People" is the distinguished brand concept of Nokia, which has been rooted in consumers’ mind through some traditional promotion methods like TV advertisements, magazine advertisements. But now, it adopts some new ways to publicize its products. Nokia usually contracts with film distributors to make its phones appear in the film. This is actually an advertisement in a different form. People could see Nokia phones in the TV or film just like “Friends”, “Love of Scenery” and “An Empire” etc. And Nokia takes the lead to use the celebrity effect and presents the celebrity with its own products. It also holds programs accord with its products to publicize the brand, concept and the culture of Nokia.
Marketing Channel Strategy of Nokia:
Distribution is a channel that delivers the product or service to customers across all regions. Nokia mobiles phones are generally available at car phone warehouse and other electrical retailer all over the world. Again for the success of company its well managed distribution channel plays vital roles.
The marketing channel strategy is a set of inter-reliant channels through which the products could be spread from manufacturers to the consumers. The meaning of products here is not restricted to the tangible ones. The marketing channel strategy is an important component of the entire marketing system, which plays a significant part in reducing the cost and enhancing the competitive power of the enterprise. Along with the market development, the patterns of the marketing channel strategy are diversified. The vertical marketing system, horizontal marketing system and hybrid marketing system are three common forms.
Nokia choose its local business agent based on 5C principle. That is to say, Nokia will decide whom to choose according to their capital, credibility, channel, cooperation and management. Once the decision is made, the agent must comply with the contract, and sale the phone in his own area. The office should supply perfect base station for the sell. Meanwhile, pay attention to the network marketing and try to take the intensive marketing strategy in all domains.
In 2005, Nokia chose new channel pattern called FD, which has ability to change the provincial agent into funds platform, save a lot of intermediate links and make the channel flat. Through this method, most of Nokia monopoly stores can acquire the ability of direct supply, which will help Nokia reduce the decision time, ensure the profit of its terminal cooperators and its good post-sale service.
Customer Analysis:
Nokia will be targeting all segments of the people, by providing them all kinds of services according to their needs. Today customers wants goods and services according to their needs Nokia having separate plans for students, teenager adults, service people, business people etc. i.e. nokia will be providing customized products.
Competitor Analysis:
Airtel is leading the market with 93.923 million subscribers, capturing a market share of 32.57%. BSNL bags third position with 46.684 million GSM subscribers. Followed by this is Idea, with a subscriber base of 43.023 million in comparison to 41.519 million a month earlier. The new entrant Aircel, ended March with 18.478 million subscribers, holds 6.41% of market share. Reliance Telecom GSM subscriber base reached 11.145 million from 10.745 million in February 09. So, Airtel, Vodafone, Bsnl, Idea, Aircel, Reliance are major competitors which can hinders in the growth of Nokia.
Competitors:
This section of marketing plan gives details analysis of key and major competitors present in the market and tells us about their market position and their strategies.
Sony Ericson:
Sony Ericson is one of the major threats to Nokia and is continuously evolving and bringing more features to its product. Sony Ericson Satio and Experian are major threats to Nokia. These phones are most advanced and touch screen one. Their prices are low as compared to previous Nokia modern's phones and their camera is 12.1 megapixels that is higher than Nokia current camera ranges.
Apple:
Apple I Phone is another major threat to Nokia and has been most attractive touch screen phone among the customers. For the first time apple introduced its 3.5 inch touch screen with all modern features. It is well equipped with audio, video, music, web access and contact management functions etc. It plays and contributes a major success to the apple industry. Apple has launched a new version of I Phone called 3GS that is most fast and also has enhanced version of its features.
Motorola:
Motorola is also a leading brand in the market and has been introducing new mobile phones over period of times that also has been attractive to customers. Recently Motorola has come up with its new phones Milestone and Droid that are also well equipped with most modern features including touch screen, window operating system, keyboard, 5 megapixel camera etc.
Samsung:
Samsung is also one of the leading brands in the market and people like it and think it a reliable product. Recently it has launched its new phones known as Samsung omnia II and Samsung omnia pro. These phones shows most advanced features like sliding qwerty, 3.5 touch screen, windows operating system, 5MP camera etc.
LG:
LG is also a leading brand and is constantly launching new phones in the market. LG New Chocolate BL40 Black has been designed to be the ultimate internet experience on the move. Its 4 inch wide screen is big enough to display full length web pages .It has 5 MP camera and built in GPS etc.
Competitive Strategy of Nokia:
Theories of competitive strategy:
There are five kinds of basic competitive strength in an industry.
They determine the potentiality for profit of this industry. The potentiality here is measured in the long-term investment, and not every industry has the same potentiality. The final profit potentiality will change fundamentally with the change of the joint competitive strength. The result comes out from the interaction of the competitive strength is to form three kinds of basic competitive strategies.
Those strategies are: overall cost leadership strategy, differentiation strategy and focus strategy. The first strategy means to make the greatest efforts to lower commodity prices through reducing costs, then to maintain competitive advantage. It is necessary to improve the control of cost because the profit of a low-cost company could be much more than the average level. While in the competitive market, this is essential for a company to overpower its competitors, to take the initiative and to be a winner.
The second strategy is to provide a unique product or service that is more functional, more fashionable or handsome. If a differentiation strategy can be achieved, it would help the company acquire the extraordinary income in this area. Because it can establish a defensive position to deal with the five competitive forces, and maintain the competitive advantage on the basis of the customer brand loyalty. Finally, the main strategy is to focus on a particular customer base or a certain regional market. This requires a company to provide goods or services more efficaciously to a narrow strategic target, and then surpass their competitors in a wider scale. This strategy has the potential to gain profit over the average level. The competitive strategy of Nokia in China:
The Chinese market of mobile phone is large and attractive for each mobile phone manufacturer. And so it is no doubt that the competition in Chinese mobile phone market is intense. Even though Nokia is in a leading position in global mobile communications industry, it always maintains a high degree of vigilance. Motorola must be its major competitor either in China or other areas. Any call Corporation comes from Korea also wants to seize this profitable market. Meanwhile, more and more local mobile phone manufacturers appear and acquire support from some consumers. Nokia could never slacken itself. The basic competitive strategy of Nokia is the differentiation strategy, which requires winning the competitive advantage through improving its innovative ability continuously. Strong technological innovation ability makes Nokia stand in the most forward position of mobile industry all the time, and characterized this brand by a special vitality. How to meet demands of realistic market? This is the biggest challenge which the Hi-Tech company faces together. Nokia pays a great attention to technology innovations, and has invested a lot in developing new technologies to maintain its leadership. Till now, Nokia has 54 researches & develop centers all over the world. These centers work hard to analyze the global market and keep on providing new concept, new demands to the company. This ensures its advanced technology and leading position. In China, Nokia has 2 R&D centers which are located in Beijing and Hangzhou separately. So that the researches in China develop fast and won great reputation. Relied on these investments Nokia has enough resources to do researches, and could always keep ahead of others. The individuation is the marrow of the Nokia mobile phones. On the gradually ripe market of mobile phone, the dazzling and outstanding design is even more important than the technology. Nokia is far-sighted that takes the initial to establish an independent apartment which are specialized in appearance design. The assignment of this apartment is to provide mobile phones with diversification and individual character. Over the past 10 years, the factor that Nokia’s continually updated product design has become a unique competitive advantage. Under the guidance of the philosophy called “technology connecting people”, Nokia has not only won the leading position in mobile phone market, it also fit the customers’ needs accurately. Nokia also makes great effort to innovate upon technology, produce new mobile phones continuously, create good cooperative relationship with local companies and carry out humanized management. All of these are essential for Nokia to hold its competitive advantage and leading position.
Financial analysis:
It provides nokia’s financial position all around the world and tells the success of nokia.
Conclusion:
The success of any businesses is based on whether they can give the customer what they want and when they want it. Market research involves the collection, collation and analysis of data relating to the consumption and marketing of relevant goods and services.
The main purpose of market research is to find out whether there is a gap in the market for your product or service or whether you can make customers want your product through persuasive adverting. As we all know very well that there is a market for mobile phones but the current market gap has become saturated (or if not saturated, almost saturated) so Nokia need to find a new market segment to aim their products at. In order to classify the wants and needs of the consuming population, companies need to gather information on the Consumer behavior-well how do customers react to advertising? Whether they are partial to prize give-away or free gifts? What are their reactions to new and developed products?
Organizations need to look at how buying trends and patterns are affected by class, gender, religion and region. They also need to understand how buying patterns change over time and what markets are expanding and are worth trying to enter and capture more customers.
It is the responsibility of company to find out that what customers are looking for in a product, for example, style, color, technology, amount of outlets, customer service etc.
One of the major responsibility of Nokia as market leader is to examine how their rivals are adapting their prices and products to meet the consumer’s needs.
Market research should supply the company with all the information they require about consumers preferences, whether they buy certain products, what design features are preferable and what kind of retail outfits are most frequently used for purchasing certain products. Research analysis also measures customer's attitude towards competing brands and products. Brand awareness research also helps to determine the effectiveness and efficiency of our messages and media.
As Nokia is the leading manufacturer of mobile phones whole over the world, its new strategy of diversification in Nokia Mobile Network will be at great success, also customers are loyal to Nokia and Nokia has positioned itself properly in the minds of all the customers. It will be easier for Nokia to attract its existing customers. Besides this Nokia with its latest technology and strong networks is laying more stress on rural areas where till now no network has satisfied rural people.
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