Nokia MarketsINTRODUCTION:The purpose of this report: Research the marketing theories and bring innovation into ourmarketing plan as a group. Most importantly is to work together as team, therefore we haddecided that Nokia product (7210) would be the choice for our research.I. COMPONENTS OF MARKETING PLAN:Company Background:The enormous telecommunication giant Nokia was founded by Fredrik Idestam in 1865. In1992, Nokia is focused on wireless and wired telecommunications business. In 2002 Nokialaunches its first 3G phone (Nokia 6650). In 2007 Nokia recognized as 5th most valued brandin the world. Nokia Siemens Network produce telecommunications network equipments,solutions and new internet services brand. Now Nokia had 112,262 employees in 120countries, sales in more than 150 countries and global annual revenue of 51.1 billion Eurosand operating profit of 8.0 billion as of 2007. It is the worlds largest manufacturer of mobiletelephones: its global device market share was about 39% in 2008. Nokia produces mobilephones for every major market segment and procedure, including GSM, CDMA, and W-CDMA.In the phone industry, Nokia are the worlds best selling phone Nokia’s strengthened. It’s leadas the No. 1 wholesaler in the market during 2000 with shipments growing 66 percent over1999. Some of the companys success was attributed to a strong second half in 2000 when59 percent of sales happened.Table below which shows market share of Nokia:1. Nokia (34.7%)2. Motorola(15.5%)3. Samsung(9.6%)4. Siemens(8.8%)5. Sony-Ericsson(6.4%)Competition in the market: Nokia will have lots of competition in the phone market, theyinclude:* Sony Ericsson* Samsung* Motorola
* Siemens* PanasonicThe competition in the phone market is related to the up to date of new technology for phoneand the accessories going-with. All brands try to launch the new series phone in short time toattract the customers. If Samsung have the 5pxl camera series, the others will launch the newphones with the same or better to this series.Distribution situation: The product of Nokia has distributed world- wide through Asia,Africa, Europe and America. The brand name for phone and accessories can find easily fromNokia stores, showrooms, E-stores system and others retailer channels.Micro and macro-environment situation: For this marketing research, Nokia has doneanalysis factors such as the P.E.S.T factors (political, environmental, social andtechnological) and also S.W.O.T factors (strength, weakness, opportunity and threat). Thereason for this purpose is an organization should always know what is happening within theirselected market, if it is changing, saturation, technological advances, slowing down or rapidlygrowing, being up to date on this is necessary for companies to carry on. There are somedetails.* P.E.S.T:Political: - the G3 technology controls that Nokia have to consider because many businesswant to make the profit in this industry so they may be attracted to take in their customersabout prices, quality of products and the accessories of their products. They try to cut cost ofproduction by using lesser quality materials in their products: weaker materials for Nokiacases and batteries. Moreover, they have to ensure that the waste of their production may notbe polluted the environment. It is the big legal trouble.Environmental social and ethical: - Nokia have handled to be good atmosphere, friendly andhave not made illegal things to against the environmental issues and ethical which areengaged to the government laws. Beside the quality of products, this is one of the reasonsthey are such a popular brand of mobile phones.Technological: is the most important factor in the market technology that companies likeNokia had to mind. They stay up to date with all the newest technological go forwards (likehigh quality camera and movies phones) therefore they can get the biggest market share andstay at the 1st place of their competitors.*S.W.O.T: - It is the way of deciding on a successful marketing plan:Strength: - Is looking at the company current market share: Nokias net sales for the October-December in 1997 came to a total of 15 857 million which was a 34% increase from 1996.Nokia is currently one of the most popular Mobile communications company.Weakness: - They are recently seeking their products at a flooded market sector. Their wagecosts are forever rising. Higher value of import charges has been set. There are some highsupply-chain costs that Nokia are paying at the moment.
Opportunities: - This is the area in which Nokia can make more profit, or gain more marketshare.Threat: - The competition that are taking away Nokias current market share and thegovernment legislations (the total costs of 3G licensing in Europe is 110 billion Euros) thatcould hold back Nokias development and profit.3. Marketing management process:Market opportunities: this is two key things that Nokia apply to get into the phone marketopportunities1. Improve the technology to make phones and products as camera and picture messagingwould draw new consumers to purchase Nokia phones.2. Using improvement to recreate products which are presented as new phone, the otherscompetitors don’t have. The call charge price fall, it should be an opportunity for Nokia tosell more because now people can effort to have more than want phones and willing to payfor the cheaper of call charge.The target customer:It helps decide what market segment to intend by looking at the habits of customers. Theymake decisions about the type of products, advertising, promotion, pricing and packaging.Nokia will need to know about the following:1. Estimating the current and future market size: How much and often they buy for estimatingthe market size, sales and other factors.2. Market segments: The types of goods customers:Demographic: Age, gender, sex, income.Geographic: Area of living, cities.Psychographic: lifestyle, taste, fashion and favorites.Example: Teenagers/Young Adults (15 – 27yrs) Students Product: Anatomy: Core – MobilePhone Actual – Nokia 7210 Augment – FM Radio, WAP, Games, Nokia 7250(enhancement/updated version of 7210) Networks (i.e. Orange, O2, T-mobile, Vodaphone)Brand: Nokia launch as economy phones.3. Choosing suitable segment: Nokia has many series of phones to enter the market, mid-price phones and luxury phones.The marketing mix1.Price- The Nokia phones are often sold at high prices expected from $200. The price ofphones reduces after an introduction stage about 2 months. Nokias prices are at competitorbased, so consumers do not mind paying a bit more money for the well known brand.
2. Place: - Nokia phones are commonly sold at all mobile phone traders such as Warehouseand The Link, although they are also selling at retailers and other electrical suppliers.3. Promotions: - Nokia is likely to promote the new technologies mobile devices they createusing one big advertising promotion that focuses on a particular technology rather than eachhandset so they can show to several markets with one promotion set.4. Product: - Nokia phones tend to contain all the latest tools and a lot of the consumersaspects such as text messaging and games. Now, phones are getting small enough to fit inyour hand as regular. Most of the phones produced currently have accessories that consumerslike buy with them: in-car chargers, carry cases, kits and hands free. Nokia a lot of profitequal its high priced.4. Marketing research:A businesses success is based on whether they can give the customer what they want andwhen they want it. Market research involves the collection and analysis of data relating to theconsumption and marketing of relevant goods and services through persuasive advertising.There is a market for mobile phones but the current market gap has become saturated soNokia need to find a new market segment to try their products. Companies need to gatherinformation on the following of the consuming population:- Consumer behavior- How does customers react to new and developed products byadvertising?- Buying outlines and sales trends: - They also need to understand how buying outlineschange over time and what markets are developing to enter the market.· Consumer favorites- What customers are looking for in the product? Nokia need to examinehow their competitors are adjusting their prices to meet the consumers need, how well thecompetitors are trading and their strategies.5. Product: The actual (tangible) product is the Nokia 7210. As an internationaltelecommunications company, Nokia develops and makes mobile phones, networks andsystems for wireless and fixed networks. The company also provides other multimediaequipment.Branding: Nokia phones have the highest quality. It is reflected in their huge sales numbers.They have a highly identifiable packaging style which is similar in every line of productionwith the brand name printed above the screen and just below the headphone. Nokia take suchan aggressive marketing strategy has promoted them above the competition as consumers arefooled into believing that branded products are "better" then un-branded products.Product life cycle:Introduction stage: when mobile phones were first launching there were only a fewcompanies as well as Nokia in the market (Sony, Samsung est.) so they could charge higherprices then they can at the present time in the product life cycle because no companies wouldchallenge to enter a price war with such a new product of famous brand name and goodpromoting and advertising. Price: $299.95 - $219.99 for Nokia 7210.
Growth: It has high promotion costs engaged. This is due to the fact that mobile phones arebecoming started as a consumer need. Other companies settle on enter the growing market.Although companies do not need to guarantee customers that they need a mobile phone,Nokia have to guarantee the customers that they want a Nokia phone where the highpromotional costs issue from.Maturity: The promotional costs decreased as the popular brands, such as Nokia andSamsung, have collected the majority of the market share. They show customers that theyhave a new model out and it sells well.Decline: Nokia had reported the first drop in sales in the first quarter of 2002. The companiesare now heavily promoting. Their new MMS try to get out of decline and back into growth.The technological in advanced phones recommend motion picture capture and theopportunity to watch television on your handset.Development product strategy3G refers to the third generation of developments in wireless technology, especially mobilecommunications. While 3G is generally considered applicable mainly to mobile wireless, it isalso relevant to fixed wireless and portable wireless.3G offers the potential to keep peopleconnected at all times and in all places. With the enhancement of 2G Technology, Nokia haddevelop 3G Technology into its mobile product and come up with the N series to challengeother competitors. 3G includes capabilities and features such as:• Enhanced multimedia (voice, data, video, and remote control).• Usability on all popular modes (cellular telephone, e-mail, paging, fax, videoconferencing,and Web browsing).• Broad bandwidth and high speed (upwards of 2 Mbps).• Roaming capability throughout Europe, Japan, and North America.Pricing strategy: based on 2 main theories:1. Penetration pricing: - although this strategy is usually for companies that are trying to gaininstant market share in a new market, companies who are already well known in the marketstill do it with new products that carry new technologies so they can take more market sharefrom their competitors.2. Competitor based pricing: - this is used when there is a lot of competition in the marketand a company is looking to take another companies market share by offering the same orsimilar products for a lower price, this happens a lot in the communications market and thisstrategy is used by every mobile phone producing company that is still in business.Marketing distribution:Strategy Nokia distribution channel for the Nokia 7210 is Selective. Before deciding whichdistribution channel Nokia will sell their phones, they look at a few factors such as most ofNokia customers are businessman and young people. Nokia have found a new distribution
channels which is their own website and other mobile online shops. Students buy productsonline by "Surf" Internet pages. Many businessmen are so busy to go shopping for a mobilephone and find quicker by using the internet. The Nokia 7210 was advertised very early onNokia website they also allowed customers to order the phone early so they would be the firstone to receive it.Promotion mix:Some of Nokia promotions that they used in 2002: Sales Promotion Nokia gave away a freephoto fun pack, which is available to all customers who purchase Nokia 7210. So thatcustomers can send photo messages. The Nokia 7210 does not come with built in camera.However you can purchase this phone for an extra $80. The Nokia 7210 comes also free withhead phones so that customers can listen to the built in radio.Public Relations: getting a membership for Nokia Club, the society for Nokia phone owners,Nokia launched a promotional promotion, which includes a consumer promotion, supportedby radio advertising. Example: winning a Mini Cooper car each month during April, May orJune, as well as a retailer motivation to win a VIP trip for two to the Italian Grand Prix.SummaryFirstly, we started to write the company background and the competitors in the market. Theenvironmental factors like micro and macro environment to explain the situation of what isP.E.S.T and S.W.O.T. then we will look into Research and Development managementprocess that give an overlook of the market opportunities and targeting of customer. Giventhese information, we can proceed to look into the product and its branding. Analysis theproduct life trend, Development product strategy and pricing strategy. Monitor and managethe organizations own sales and distribution activities. Finally, A promotional mix specifieshow much attention to pay to each of the four subcategories, and how much money to budgetfor each. A promotional plan can have a wide range of objectives, including: sales increases,new product acceptance, creation of brand equity, positioning, competitive retaliations, orcreation of a corporate image.|Table of Content ||1) |Company Background ||2) |Competition in the market ||3) |Distribution situation ||4) |Micro and macro-environment situation ||5) |Market opportunities ||6) |The target customer ||7) |The marketing mix ||8) |Product life cycle |
|9) |Development product strategy ||10) |Pricing strategy ||11) |Marketing distribution ||12) |Promotion mix ||13) |Summary |II. RECOMMENDATIONS:Our group would recommend Market Research is the most essential in any company asMarket research broader in scope and examines all aspects of a business environment. It asksquestions about competitors, market structure, government regulations, economic trends,technological advances. For example Product research - This looks at what products can beproduced with available technology, and what new product innovations near-futuretechnology can develop.IV CONCLUSIONS:In this Marketing plans group Assignment, there are a lot of proceed that we need to takenote. During this learning process, we found out that every components of marketing plan isimportant. So we had to put extra effort to do our research in order to get our informationcorrectly. This group Assignment is not talking about only doing our research only but it alsotell us to be cooperative and united. So that we can face challenge as a group andaccommodate each other when anyone of us need assistance.V References:Jim Blythe and Alan Zimmerman, 2005, Marketing Management, Thomson, UK, LondonPhilip Kotler, Didak C.Jain and Suvit Maesincee, 2006, Marketing Moves, Harvard BusinessSchool, USA, Boston