(mobileYouth) Download - Why should Nokia focus on youth now?
Why should Nokia focus onyouth now?There are signs that Nokia can turn things around for the better. During thefourth quarter 2012, Nokia was able to generate a proﬁt of 202 million euros($269 million), a massive gain over the 1 billion euros the company lostduring the same period in 2011.Nokia is losing customers but keeping FansDespite a decline in market share, Nokia’s customer recommendation andloyalty levels have increased. Most likely scenario is that Nokia is losingcustomers (a segment that includes detractors and the unengaged) whileretaining its true Fans (the Beachhead that are already sold on the product). Find the most relevant insights on youth mobile marketing: http://www.mobileYouth.org
Between September and December 2012 the number of Nokia customersthat would recommend it rose by 13% to 45%. In the same period, itsdetractors fell from 37% to 33%.During the same period, Nokia saw a 12% improvement in the number ofcustomers saying they’d get a Nokia the next time they buy a phone (anincrease from 30% in September 2012 to 42% in December 2012). NokiaFans are already upgrading to Lumia. Back in 2009, only 1% of Nokiacustomers had a Lumia handset. By end of 2012, 40% of Nokia customersowned a Lumia handset.Why are youth key to Nokia’s future?While Nokia has a position of strength, it still has a long way to go. Increasedloyalty is good, but put into context, Apple retains the highest loyalty ratings,with 80% of its customers saying their next phone would be from the samecompany. If Nokia is to compete with Samsung and Apple effectively and notbe conﬁned to the “others” category by 2015, it needs to get real with itsmarket position and build on its existing Beachhead - the youth market.1. Youth are the inﬂuencers:Youth are the most inﬂuential customer segment. Their inﬂuence affectstoday’s market and the future market (adults, executives etc). Brands aredeﬁned by what youth say, not what the advertising agencies say.CEO Elop recently revealed in the media how he had the opportunity onSunday to visit telco stores in various parts of Sydneys CBD, "going in a bitundercover at times," to ask store representatives what phones theyrecommend and asking them for demonstrations. While buyers are inﬂuencedby other people in making purchase decisions, store reps are not the mainsource of inﬂuence. Industry data showed that only 32% of customersreferred to store employees to make a purchase decision compared to 69%customers who turn to friends and family.Nokia needs to focus on winning over young inﬂuencers, not storeemployees. Find the most relevant insights on youth mobile marketing: http://www.mobileYouth.org
2. Youth are the future enterprise marketMicrosoft’s Windows OS already rules the PCs of the enterprise market.Among Windows smartphones, Nokia is the clear leader with 78% marketshare ahead of HTC (14%) and Samsung (6%) – the latter two are heavilyinvested in Android.Nokia’s future prospects in the enterprise market rely on winning over theyoung professionals of today. The growth in the Bring Your Own Device(BYOD) movement within enterprises has shifted the decision from corporateIT departments to inﬂuential young employees.3. Youth help deﬁne the brand’s wider social beneﬁtFacebook, SMS and ﬁle sharing are all technologies that began with thestudent segment moving on to the wider mass market. Why? Because youthunderstand how to maximize the social beneﬁt from any given device.Youth are the most sensitive to Total Cost of Device Ownership. Youth have alimited budget of which 36% is allocated to mobile. Spending more on mobilemeans fewer opportunities to spend with friends. That means, it is youth whowill ﬁrst discover the social beneﬁt of Lumia because their premium fordiscovery is the highest. They will be the ones to communicate this socialbeneﬁt to the rest of the market. If Nokia wants to position itself as a devicethat offers cost control to individuals and enterprise, it has to evolve itsproposition ﬁrst with the help of young Fans.4. Nokia already has a youth beachheadNokia has a position of strength - a Beachhead - in the youth market. Fans intheir late teens and early twenties gravitate towards speciﬁc aspects of theNokia heritage (reliability, simplicity and ease of use). This is visible in theIndestructible Nokia memes. Find the most relevant insights on youth mobile marketing: http://www.mobileYouth.org
The urgency of the youth marketBy ignoring their younger customers and focusing on higher end users Nokiahas already set itself up as an aging brand. In time, their customer base willage into irrelevance. Nokia needs to reengage the young inﬂuentials toreinvigorate the brand and secure a future lineage.Nokia Fans won’t stick around foreverFans who are already using Nokia Lumia may desert the brand. If Nokiacontinues to ignore this existing Fan base by focusing on wooing Apple andSamsung Fans, it exposes its Beachhead to erosion by competitors. Nokianeeds to ﬁnd its own space in this market with the help of existing Fans.Nokia’s brand strength relies on claiming the space it already has as opposedto expanding to Samsung and Apple’s home turf. Achieving the company’sgoal of double digit market share relies on engaging the Fans they alreadyhave, not in getting customers of other brands to switch.Find out how Nokia reach the youth market:The 2013 mobileYouth Report Find the most relevant insights on youth mobile marketing: http://www.mobileYouth.org