Product Life Cycle of Nokia Phones
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“IT IS THE PERIOD OF TIME OVER WHICH AN ITEM IS DEVELOPED, BROUGHT TO MARKET AND EVENTUALLY REMOVED FROM THE MARKET”. The classical product life cycle curves are depicted as “S” shaped and generally divided in four stages: Introduction, growth, maturity, and decline.
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Product Life Cycle of Nokia Phones
- 1. PRESENTED BY SOBIA SHAHID BA582713 ALLAMA IQBAL OPEN UNIVERSITY “KHAWAJA IMRAN”
- 2. Introduction “IT IS THE PERIOD OF TIME OVER WHICH AN ITEM IS DEVELOPED, BROUGHT TO MARKET AND EVENTUALLY REMOVED FROM THE MARKET”. The classical product life cycle curves are depicted as “S” shaped and generally divided in four stages: Introduction, growth, maturity, and decline.
- 3. Introduction Growth Maturity Decline (d) Classical Life Cycle Pattern Time Sales Profits Loss Common Product Life Curves
- 4. Introduction Stage The introductory stage is viewed as fairly risky and quite expensive because large amounts of money is spent on advertising and other tools of marketing communications to create consumer awareness in sufficiently large numbers, and encourage trial.
- 5. Introduction Stage of the PLC SalesSales CostsCosts ProfitsProfits Marketing ObjectivesMarketing Objectives ProductProduct PricePrice Low salesLow sales High cost per customerHigh cost per customer NegativeNegative Create product awareness and trial Create product awareness and trial Offer a basic productOffer a basic product Use cost-plusUse cost-plus DistributionDistribution Build selective distributionBuild selective distribution AdvertisingAdvertising Build product awareness among early adopters and dealers Build product awareness among early adopters and dealers
- 6. Growth Stage The growth stage of life cycle is characterized by a sharp rise in sales. Only a small percentage of new products introduced survive to reach the growth stage.
- 7. SalesSales CostsCosts ProfitsProfits Marketing ObjectivesMarketing Objectives ProductProduct PricePrice Rapidly rising salesRapidly rising sales Average cost per customerAverage cost per customer Rising profitsRising profits Maximize market shareMaximize market share Offer product extensions, service, warranty Offer product extensions, service, warranty Price to penetrate marketPrice to penetrate market DistributionDistribution Build intensive distributionBuild intensive distribution AdvertisingAdvertising Build awareness and interest in the mass market Build awareness and interest in the mass market
- 8. Maturity Stage Most products after surviving competitive battles, winning customer confidence and successful through growth phase enter their maturity stage. The sales plateau, and this flattening of sales usually lasts for some time because most products in the category have reached their maturity stage, and there is stability in terms of demand, technology, and competition.
- 9. SalesSales CostsCosts ProfitsProfits Marketing ObjectivesMarketing Objectives ProductProduct PricePrice Peak salesPeak sales Low cost per customerLow cost per customer High profitsHigh profitsMaximize profit while defending market share Maximize profit while defending market share Diversify brand and modelsDiversify brand and models Price to match or best competitors Price to match or best competitors DistributionDistribution Build more intensive distribution Build more intensive distribution AdvertisingAdvertising Stress brand differences and benefits Stress brand differences and benefits
- 10. Decline Stage Decline stage sets in when customer preferences change due to the availability of technologically superior products and consumers’ shift in values, beliefs, and tastes to products offering more value.
- 11. SalesSales CostsCosts ProfitsProfits Marketing ObjectivesMarketing Objectives ProductProduct PricePrice Declining salesDeclining sales Low cost per customerLow cost per customer Declining profitsDeclining profits Reduce expenditure and milk the brand Reduce expenditure and milk the brand Phase out weak itemsPhase out weak items Cut priceCut price DistributionDistribution Go selective: phase out unprofitable outlets Go selective: phase out unprofitable outlets AdvertisingAdvertising Reduce to level needed to retain hard-core loyal customers Reduce to level needed to retain hard-core loyal customers
- 13. Introduction- NOKIA In 1992 lunched its first Digital handheld GSM phone, The Nokia 1011 Launched very few models due to lesser demand & innovation Sold both GSM & CDMA phones Launched 1st model Nokia 2100 with Nokia tune 2110 was 1st model capable of sending/receiving SMS
- 14. INTRODUCTION-NOKIA 1995-2002 NOKIA launched its first phone 2009-2011 Launch Touch screen and drop prices2003-2009 Phone without Antina with more features 2011-Present Less attractive design & operating system
- 16. SWOT Analysis STRENGTH • Brand Name • Nokia have much higher re-sale value • Reliability, durability • Price ranges WEAKNESS • Poor after sales services • Company's profits have fallen by 7% in the second quarter of 2014 • Slump with windows Lumia range
- 17. SWOT Analysis OPPORTUNITIES • Mobile device market is growing at the rate of 14% • Smart phone demands is growing faster than ever THREATS • Rival APPLE is taking up marketing share from NOKIA • Iphone is the most popular mobile device • Samsung, Motorola, Sony Ericsion is using Google android which is more popular them Symbian
- 18. CONCLUSION • From Technology perspective, Nokia did not deliver as per expectations based on previous performance • From the Strategy perspective, though Nokia did eventually come up with nice lucrative products, it lost in the race against time due to poor strategies and sly competition. • From the organizational and people perspective, the new CEO’s attitude and competency proved to be fatal for the company. • The entire Rubik of Organization, people and strategy failed to deliver for Nokia.
- 19. RECOMENDATIONS • They should not be too dependent on Microsoft, because it would be hazard for the company. On the other hand, Nokia should keep developing the mobile phone technology at the same time Microsoft focus on software and another application that relates to mobile phone using.
- 20. Thank you