Nokia case
Case Study-Nokia
Group 4.02:
Elsard Haanstra S2177315
Lan Huang S2536447
Daniël Koster S2198835
Weixiang Wang S2509652
Joyce van Zenderen S2195445
Contents:
1. Problem Statement
The problems Nokia faces are increasing price pressure, intense competition and slower growth. Meanwhile, changing environment and customer needs are problems Nokia are encountering.
How can Nokia maintain its market share on 37.8% in a maturing industry in the next three years?
2. Customer analysis
The customer analysis consists of three parts. The first part is the segmentation. Segmentation means the identification of customer groups that respond differently from other groups to competitive offerings.1 In order to distinguish the segments, several variables are used. After identifying customer segments, the next step is to consider their motivations. 2 The third part of the customer analysis is the identification of the unmet needs. An unmet need is that is not being met by the existing product offerings.3
2.1 Segmentation
Nokia divided the customers into four groups by conducting a segmentation study in 2005, which 42000 customers from 16 countries were involved.4 The variables they used for the separation were usage, income level and lifestyle.
The four groups are as follows:
-Live: customers in this group are mainly users of the basic handsets with a few features and low price. The range of this group could range from SECC (low socio-economic class) to SEC A1+ (very high socio-economic class).
-Connect: users of this group demand more functionality, features and connectivity compare with the first group. GPRS, camera and music would be designed for this group.
-Achieve: mainly enterprise users. Smart business tools, QWERTY keyboards and full Internet capabilties are applied as the users of this group mostly require business functionalities.
-Explore: this group needs cutting edge technology and latest styling.5
2.2 Customer
Group 4.02:
Elsard Haanstra S2177315
Lan Huang S2536447
Daniël Koster S2198835
Weixiang Wang S2509652
Joyce van Zenderen S2195445
Contents:
1. Problem Statement
The problems Nokia faces are increasing price pressure, intense competition and slower growth. Meanwhile, changing environment and customer needs are problems Nokia are encountering.
How can Nokia maintain its market share on 37.8% in a maturing industry in the next three years?
2. Customer analysis
The customer analysis consists of three parts. The first part is the segmentation. Segmentation means the identification of customer groups that respond differently from other groups to competitive offerings.1 In order to distinguish the segments, several variables are used. After identifying customer segments, the next step is to consider their motivations. 2 The third part of the customer analysis is the identification of the unmet needs. An unmet need is that is not being met by the existing product offerings.3
2.1 Segmentation
Nokia divided the customers into four groups by conducting a segmentation study in 2005, which 42000 customers from 16 countries were involved.4 The variables they used for the separation were usage, income level and lifestyle.
The four groups are as follows:
-Live: customers in this group are mainly users of the basic handsets with a few features and low price. The range of this group could range from SECC (low socio-economic class) to SEC A1+ (very high socio-economic class).
-Connect: users of this group demand more functionality, features and connectivity compare with the first group. GPRS, camera and music would be designed for this group.
-Achieve: mainly enterprise users. Smart business tools, QWERTY keyboards and full Internet capabilties are applied as the users of this group mostly require business functionalities.
-Explore: this group needs cutting edge technology and latest styling.5
2.2 Customer