Marketing Strategy For Nokia
Marketing Strategy For Nokia
Hani binrabaa 201010019 Mohammed Almansory 201010136 Abdulla Salem Altamimi 201010231
Ahmad Muhamad Soliman 201010073
Introduction:
Nokia Corporation is the world's largest manufacturer of mobile phones, serving customers in 130
countries. Nokia is divided into four business groups: Mobile Phones, Multimedia, Enterprise
Solutions, and Networks. The Mobile
Phones group markets wireless voice
and data products in consumer and
corporate markets. The Multimedia
segment sells mobile gaming devices,
home satellite systems, and cable
television set-top boxes. The Enterprise
Solutions group develops wireless
systems for use in the corporate sector.
Wireless switching and transmission
equipment is sold through the
company's Networks division. Nokia
operates 15 manufacturing facilities in
nine countries and maintains research
and development facilities in 12
countries.
History:
The roots of this internationally renowned Finnish telecommunications company lay in a number
of earlier companies, two of which were established in what became the town of Nokia. The first,
established in 1865, manufactured paper and built up an international client base in Russia,
Britain, France, and China. It was followed by the Finnish Rubber Works, founded in 1898, whose
products were sold under the Nokia brand name in the1920s. The third, the Finnish Cable Works,
was established in 1912 and grew rapidly in tandem with the growth of electricity. All three
companies were eventually merged
in1967 as the Nokia Group which, by the
early 21st century, employed 24,000 in
Finland alone.
Fredrik Idestam, an engineer by trade and
founder of Nokia, built a wood pulp mill on
the banks of the Tammerkoski rapids, in
southern Finland. A few years later, he
built a second mill by the Nokianvirta
River.
Product :
Historically, the thinking was: a good product will sell itself. However there are no bad products
anymore in today's highly competitive markets. Plus there are many laws giving customers the
right to send back products that he
perceives as bad.Therefore the question
on product has become: does the
organization create what its intended
customers want? Define the
characteristics of your product or service
that meets the needs of your customers.
Functionality:
Quality
Appearance
Packaging
Brand
Service
Support
Warranty
* Appropriately identify, collect and use primary and secondary data that is relevant to the
marketing strategy of Nokia.
* Produce a clear analysis of the external influences affecting the development of a marketing
strategy.
* Complete a realistic rationale for the development of a coherent Marketing mix for Nokia
communications.
* Show a full understanding of a marketing strategy for Nokia with a Clear understanding of
marketing principles.
* Produce a full, well-balanced marketing strategy that reflects Appropriate use of marketing
models and tools.
Focused on Handset Manufacture only
Enhance Product Portfolio
“Increase Distribution Channels”
Adjust Preferences for specific markets
Increase Commitment to “Emerging Market”
Improve Collaboration on “Designs”
Ensure Accountability and “Quality”
Aggressive Pricing “Low price”
Segmentation Strategy:
Geographic:
Nokia immediate geographic target is rural India.
The total targeted population is estimated at 100million.
In Pakistan a developing country nokia has mainly targeted:
Entry level
Classic
Xpress music series
Demographic:
Male and Female
Ages 25-50, this is the segment that makes up80% of the Nokia mobile phone market
According to NOKIA LTD.
Professionals and college student
Target market:
In Middle East a developing country Nokia has mainly targeted:
Target market for NOKIA Nseries mobile phone between ages 20-40. Who want to use
something special or smart phone
International student
Teenager and business class
Positioning of Nseries:
Nseries has created a distinct position in ccustomer mind by:
Nokia logo…...>
Slogan …..> ”Know our past. Create the future”.
Latest ring tunes and messages tunes.
The specific message that is conveyed to the customers in every advertisement.
Brand name is written on the Nseries.
Place- Nokia phones are generally sold at all established mobile phone
dealerships such as Car phone Warehouse and The Link, although they are
also sold at other retailers such as Dixon's and other electrical
suppliers. The products are only sold in the electrical suppliers and
stores other than dedicated phone dealerships after the introductory
period so the phones can remain limited edition, as this will
encourage younger consumers to buy them.
Product- Nokia phones tend to include all the latest technology and a
lot of the consumers favorites aspects such as text messaging and
games like Snake and Memory. When the phones came out they were big
and bulky and quite unattractive but now they are all quite sleek and
stylish with phones now getting small enough to fit in the palm of
your hand as standard. Most of the phones produced nowadays have
accessories that consumers must buy with them (carry cases, hands free
kits and in-car chargers) these generate Nokia a lot of profit, as
they are very high priced.
Nokia's marketing mix has worked very well until recently as the
market they are aiming at has become more and more saturated and after
looking at all the mobile phone sales figures, it looks as if the
phone companies can aim at this same youth market for about another 2
years until they need to change, but they should change sooner so they
can start making a bigger profit and get a head start on the
competition who will also have to change the market they are aiming
at. Nokia's current promotional strategy is working very well as they
are able to "talk to" a large number of consumers in different markets
rather than the niche markets the old promotional strategies where restricted to.
Market segmentation:
Market segmentation refers to the different areas of the population
that companies can aim their products towards. The market segment that
Nokia has chosen to aim is the youth market focusing on students aimed
13-19 as market research has shown that some of the youth market are
receiving large amounts of pocket money and most have no real
commitments to spend it on and that means they have lots of disposable
income and will be able to spend a lot money on new mobile phones.
SWOT:
SWOT analysis is also another way of deciding on a successful marketing scheme, we must look
at strength, weakness, opportunity and threat.
Strengths:
NOKIA is the one of the most popular mobile communication company in the industry:
NOKIA NSeries is high product quality.
Product is warrantee worldwide.
Fashionable product (serve new trend).
Global marketing (product).
Weaknesses:
It’s not easy to use.
Low voice quality.
Heavy set.
Market skimming prices of this set.
Opportunities:
Mobile with computer windows
New growth market
Other hand held devices
Well designed and styled set
Threats:
Looking mainly at the competition that is taking away Nokia market share.
Orange, Vodafone and Apple and many more operators are globally selling their own
brands of phone.
Higher import charges.
China Mobile made copy of Nokia Sets.