Nokia Marketing Plan Analysis

Executive summary

Nokia, the pioneer of mobile phone producers in the whole world, has many differentiated products. This report is a marketing plan concerning to market these products. Nokia has its business almost all over the globe. However, it has not introduced its all products to every market. Like this, Nokia has to implement some other business strategies to market its products. Deregulation can help Nokia to capture the highest possible market share. Nokia not yet satisfied with its present products rather it has kept efforts to innovate new products using sophisticated technology.

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Introduction

According to Hitt, Ireland & Hoskisson (2001, p.210), Marketing plan is such document, which has developed to achieve a company’s marketing objectives with any specific product or brand. It also establishes for preparing marketing efforts that affects the company with successful strategy. The marketing plan also specified length of time for marketing activities about the specified product of the company. For any cell phone company, they are providing way of communications, social status, and interest to different sections to their potential customers and users. At previous stage of cell phones, the use of it was only for talking and messaging. Then the use has extended to internet browsing, picture messaging, hearing songs and videos and many more. Nowadays, the cell phones are only widest way of communications, but also it stands for customers’ status symbol in life style. (Wei, 2007: p-3)

Company analysis

Background of Selected Company (Nokia)

In this marketing plan, Nokia has selected as leading cell phone communications and information connections within users by imaging, games, media, and in business. It first established in 1865 as a mining engineer, which built up a wood pulp mill in Southern Finland for manufacturing paper. Then it continued as chemicals and rubber business in next century. As a telecommunication company, Nokia has ventured with digital telephone exchange in 1960. Then it was developing transportable car mobile phone and hand portable phone in 1980. In 1990, it has focused on non-telecommunications and mobile handset business. In present days, Nokia is generating sales more than $27 billion in 130 countries around the world with 60,000 employees with the simplest mission of “connecting people” (Nokia Australia Pty Ltd, 2006: p-1). Now Nokia is engaged on professional services in global network to develop a marketing plan as mobility solutions with detail description given in further study.

SWOT Analysis

Nokia is doing its business worldwide with three segments, which are, Nokia Mobile Phones, Nokia Networks, and Nokia Ventures Organisation. With complete range of mobile phone business, it has facilitated with many strengths and opportunities. In addition, Cheng et al., (2005, p.14) argued that it has faced by weaknesses and threats from organisation and external environment to do business in global scale. In below, the SWOT analysis of Nokia has shown with the help of figure:

SWOT Analysis of Nokia
Figure-I: SWOT Analysis of Nokia (self generated)

Strengths

According to the annual report 2008 of Nokia, it is largest network and distribution of mobile phone Company in worldwide with high quality products and professional staffs in every department. For this reason, it has much strength, which is favourable to do business in forthcoming future that described in below:

  • Strong Brand Reputation: Nokia is dominating the global market with lots of handset of mobile phones. With strong position in market and high quality products provider, it is achieving top most position of 20 brands in worldwide (Nokia Corporation, 2008 p. 9).
  • Manufacturing Capabilities: Nokia mobile phones are no. 1 selling brands in world, with different facilities and being users friendly to environment. It is producing wide ranges of products for all classes’ people in target market.
  • Innovative Design: Nokia is producing wide range of mobile phones for all class people in worldwide. It has also popularly known as innovative designer of mobile phone business.
  • Strong Financial Value: It has strong financial values with many profitable businesses operated in worldwide. The resell value of Nokia mobile phone is high comparing with other companies.
  • High Market Share: Nokia is largest cell phone vendor with 33% market share, also has large share in GSM market. The size has enlarged with reducing R&D costs of the business. (Hill and Jones, 2007, p. 78)

Weakness

With much strength, Nokia has some weaknesses also including price of products and many more, which has discussed in below:

  • Non-user Friendly Products: Some mobile phones, which are selling in the market is not much user friendly, sometimes also harmful for the environment (Mikkonen, O. 2004, p.6).
  • Non- concerned about Lower Income Group of People: With high-ranged products, Nokia is not concentrating lower income group of people and giving no promotional activities towards them.
  • After Sales Services in Developing Countries: In developing countries, there are very few service centres, where the after sales services are not good enough.
  • Low Market Share in US and Japan: USA and Japan are most potential market for mobile phones, but Nokia can not capturing the maximum market share of these countries.
  • Dependent of Profitability: Nokia has mainly known as mobile phone manufacturer in worldwide, the other businesses operated by it have not focused in the market. The most of the profit portion also earned from selling mobile phones.

Opportunities

Nokia has great opportunities in external markets including global and regional market. Some opportunities of Nokia have focused in below:

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  • 3G and CDMA Cellular Market: Nokia is expanding its business in Asia and USA with greatest innovation of 3G cellular market. It is also increase its potential business in CDMA and Edge market.
  • Global New Market: In global market of cellular phones, Nokia is finding out some potential market like India and other developing countries.
  • Reducing Environmental Impacts: The harmful aspects of using mobile phone, which are causing impacts on environment, are reducing by specialised team of Nokia.
  • Expanding Partnership Business: Nokia is capturing the market with collaboration of various SIM companies, which would be helpful to attracting the target market.
  • Preferred Infrastructure Business: Nokia is highly preferred to all people as infrastructure business with stronger brand position and coverage of high technologies.

Threats

When Nokia has to face external barriers for its business, like competitors, Governmental and other factors, then it focused as threats of the company. Some threats has discussed as below:

  • Major Competitors: Japanese 3G mobile phone producers are major competitors for Nokia, as they are selling their mobile phones with lowest prices, which are main attraction low and middle income group of people.
  • Missing New and Innovative Phones: Other competitors, like Sony Ericsson, Blackberry, Siemens and many more are concentrating on innovation of new phones. Where, Nokia is less concerned about innovation than competitors are.
  • Late in providing 3G Game Creators: Like other competitors, Motorola, LG, NEC etc are much faster than Nokia to create 3G gaming facilities to their mobile phones.

Objectives

Corporate Objectives

Nokia is achieving its objective of the company by maintaining working relationship and practicing sustainable environmental impact of it. (Environmental Report of Nokia Corporation, 2004: p-30) Some other objectives of Nokia are:

  • Making commitment with customers to provide valuable products and best services,
  • Increasing personal communications with customers and other stakeholders,
  • Making continuous innovation of its products to target market,
  • Being industry leader as design and manufacturer of mobile and display products. (Cheng, et al 2005, p. 88)

Marketing Objectives

Nokia is a market-oriented company, so it has to develop marketing objectives to achieve the mission of the corporation. The marketing objectives of Nokia are:

  • To achieve customers’ satisfaction by met their demand on products and services.
  • To maintain customers’ perception about Nokia by value, quality, fashion and reliability of products,
  • To anticipate future needs and expectations of customers by tracking current market and forecasting future sales,
  • To generate income by satisfying stakeholders of the organisation,
  • To develop products and markets by developing marketing strategies of the company,
  • To maintain changes of technological advancement, this is important for the company to survive in the market. (Anon, 2009)

Segmentation and Targeting

The nature of business of Nokia has based on mass marketing. Nokia is engaged in mass production of mobile handsets, using mass distribution in all most everywhere in the world and arranging mass promotion of its differentiated products. As, Nokia has its business in almost everywhere of the world, their mass marketing techniques depends largely on their segmentation and targeting approaches. (Kotler & Armstrong 2006, p. 114)

Identification of Segments

Starting business in a new country or region is not only a function to the geographical existence but also the people who live there. Not all the people in a country can be the customer. For this finding potential customers or customer segments is a critical job. To identify a perfect segment Nokia at first will have to consider the preferences of the customers. There are three type of segment based on the preferences. These are:

Preference based segmentation
Figure-II: Preference based segmentation (self generated)

In a preference segment where all the potential customers have almost similar preferences about a product, the segmentation is termed as homogenous preferences. In a diffused preference segment, the preferences of the customers are scattered in the region and the preferences are almost different. Lastly the clustered market preferences consists similar preferences in a single cluster and there are many clusters, which have differences within the preferences. To identify the actual segment Nokia has to concentrate on these and must offer the products according to the preferences of the customers. (Kotler & Keller 2006: p.241-242)

Any mass marketing approach, whether it is local marketing or niche marketing is largely depends on four bases. These are:

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segmentation base
Figure-III: segmentation base (self generated)

Geographic Bases

Nokia should select that geographic region which is suitable for their operation. Previously it has established business in many countries, which have not the proper facilities to assemble the handsets locally. For this reason, Nokia had to import assembled handsets and devices from remote countries where it had assembly plants. These activities asked for huge monetary and other resources. To minimize these types of loss, Nokia should select such geographic location where it can establish assembly plants. Besides, in the selected country not all cities or regions are suitable for the marketing of mobile phone sets. Nokia should target the people of those cities and regions who are easily accessible and communicable. (Hitt, et al, 2001, p. 128)

Demographic Bases

Customer preferences largely differ based on their demographic patterns. Students prefer multimedia sets where the aged people prefer easily usable mobile sets. Nokia should design its products keep in mind that the use of mobile phone mostly depends on the gender, their income level, occupation, level of education, religion, race, nationality, social class and the stage of life cycle. People who earn less cannot afford a mobile hand set like Nokia E-series. Thus, the product must be affordable to the people based on the income level of them. Nokia should differentiate its products in a manner where any people can afford any from the existing products. (Dobson et al, 2004, p. 301)

Behavioural Bases

Customers have differences based on their behavioural patterns. Nokia must consider the approach of the people towards the products. These customers have different types of knowledge, which reflects on their purchase decisions. The attitudes of the people are also different from each other. For example, a British citizen may prefer to have a mobile phone of Vodafone rather to buy Finish Nokia handsets. Nokia must consider these behavioural perspectives and design their products according to the behavioural pattern of the selected segment. (Kotler & Keller, 2006:p.255)

Psychographic Bases

Segmentation based on the psychographic base means to differentiate the customers based on their psychology. Nokia should design its products concentrating about the concept that customers have divided based on their psychographic traits, lifestyle, and values. Some people have high self-esteem, some have considered about the functionality of the product, some demand premium products and some love to switch products to experience. Again, some people have psychological low resources that can be t e loyal customers or become a survivor, maker, or strivers. Therefore, the mobile sets should be design in a manner to satisfy the needs of each of these types of people. (Dess & Lumpkin, 2008, p. 118)

Target Segments

Nokia should target a market segment, which is geographically easily accessible, and where the assembly plant could established. Nokia should target a nation or region where the people become depended on using mobile phones to communicate with each other’s. Besides, the market segment must be target the younger generation as because the tendency of using mobile phones is high for young generation. Considering the income of the people, Nokia should offer devices for lower income level people to the higher level to whom expensive sets with many functions could serve. Nokia must produce differentiated products for the different behavioural type people. Besides, the mobile phone sets must be design concerning the psychographic state of the selected segments.

Positioning

Positioning means the activities to present the offerings of the organisation and draw an image of the product of the organization to achieve a distinctive place in the mind of the customers. The two major factors designing the positioning of an organisation are the basic functionality customers find in a product (POPs) and the features, which differentiated the products of an organisation from its competitors (PODs). The choosing of POPs and PODs has based on some criteria such as deliverability (feasibility, communicability, sustainability) and desirability (relevance, distinctiveness, and believability). After choosing the POPs and the PODs, the positioning strategy would have selected. There are four types of strategies. These are:

Positioning strategies
Figure-IV: Positioning strategies. Source: self generated from Johnson et al 2006, p. 287

Proposed Positioning

Among these four positioning strategies, Nokia should select either product development strategy or market development strategy. The cause behind these selections is Nokia has ability and resources to innovate new products. Beside, there are many countries where not all Nokia products are available. For these reason, if it innovate newer and differentiated products and position these in the existing markets or market the existing products in the new market it can maximise the use of its limited resources.

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Marketing Strategies

Thompson, A. et al. (2007, p. 112) argued that marketing strategies are the tactics, which make the production, operation, and marketing activities successful. An organization, like Nokia, has to select its marketing strategies based on its marketing mix. As Nokia mobile phones have serviceability along with its product features, it has seven distinctive marketing mix considerations. These are:

Product

Nokia mobile phones have to design to attract all the customers of the target market segment. Considering the segmentation bases, the products should reflect the demand of the customers. Nokia always produce innovative, stylish, and advanced types of devices using sophisticated technology. The products would update according to the change in the customer demand and changes in the technology. (David, 2008, p. 342)

Price

The price of the products should also follow the customer needs considering the segmentation bases. Nokia always price its products based on the functionality of the product. The device having more features has priced more. This pricing strategy is taking product feature as a basis for pricing but the brand value of Nokia and the service quality, durability, reliability and consistency should priced, as these are most valuable resources for Nokia. (Anon 2009, p.1)

Place

It should make the sales centres available for the targeted customers. Nokia have to care about the customer satisfaction and for this, it has to introduce customer care centres in suitable places. If the customer care centres and sales centres could placed in suitable places where the customers will find it to access easily, the placement of the brand will be strong in the customer mind.

Promotion

Nokia always strive for attractive and attention getting promotional activities. It is involving in many kinds of promotional programs and sponsoring many events. However, the area of concern must be to get the attention of most of the targeted customers. The communication through the promotional programs must be effective and effective. For these Nokia must use all of the media available in the selected segment location.

People

Nokia should employ local people to work with them. Workers in the assembly plant and employees in the sales and customer care centres must be local people. The benefit of working with local people is they have greater knowledge about the region and can communicate with the customers more easily.

Physical Evidence

Physical evidence means the presentation of the products along with physical existence of the product. Stoner, Freeman & Gilbert (2006, p.36) argued that the physical evidence also includes the environment where the product would deliver to the customers. The services cape of the product delivery must be friendly to the customers and the attitude of the personnel related with these activities must be positive.

Process

All the processes related with the production of the mobile phones must be transparent and customer friendly. Process means the production, packaging, storing, retailing, and delivery of the products. All these processes should present with clear and easily measurable for the customers.

Action Plan and Monitoring Measures

The purpose of this report is to market the products of Nokia. To achieve the objectives Nokia has to do certain jobs. Firstly, Nokia must concentrate on what its customers need and design its products according to it. There must be changes occurred in the customer demand. Nokia should research these demand changes also. Then, Nokia must employ efficient and eligible employees in every post of the organizations. The employees would train according to their job specifications. Finally, Nokia must made its research and development wing strong so that it can muster innovative product ideas, forecast the product demand and attain actual information about customer demands.

As a technique of control, Nokia first set a scale to measure any kind of operations. The works done by the employees should measure against previously set criteria. Employees must get reward if they attain their goal. To control the overall performance Nokia should gauge following areas:

  • Revenue: in monthly and annual basis
  • Expenses: Monthly and annual basis
  • Customer satisfaction
  • Developing new products
  • Results of the market testing

Recommendations

After completing the marketing plan of Nokia, it has seen that, it is largest mobile marketing company. However, to survive in competitive market, also Nokia has to maintain some actions to further development of the business and to keep its marketing and corporate objectives of the organisation. Nokia has to maintain deregulation in competitive market with diversified business opportunities. It also has to keep the technological evolution in consumer electronics market. Overall, in 21st century, where the world is depending on Internet, it has to have Internet access on its electronics goods and mobile phones by covering all income groups of people.

Conclusion

Nokia is a well-established mobile phone brand in the whole world. Its business has expanded in everywhere of the globe. However, to market its products it is still facing some problems. Besides, the increasing demand of the mobile phones is also keeping pressure on the operations of Nokia. Effective marketing plan can help Nokia to overcome this situation. As the market leader Nokia should not satisfied itself, rather it should try continuously to increase its brand value.

Reference List

Anon. 2009. Marketing Strategy for Nokia. Web.

Cheng, I., Chi, M. C., Shikhmuradov, A. & Salter, J., 2005. Nokia. [pdf].

David, F., 2008. Strategic Management: Concepts and Cases. 12th ed. Prentice Hall.

Dess, G., & Lumpkin, G. T., 2008. Strategic Management: Text and Cases. 4th ed. McGraw-Hill.

Dobson, P., Starkey K., & Richards J., 2004. Strategic management, 2nd ed. United Kingdom: Blackwell publishing.

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E., 2001. Strategic Management. 4th ed. Singapore: South-Western Thomson Learning.

Hill, C., & Jones, G., 2007. Strategic Management: An Integrated Approach. 8th ed. South-Western College.

Johnson, G., Seholes, K. & Whittington, R. 2006. Exploring Corporate Strategy: Text & Cases. 8th ed. London: FT Prentrice Hall.

Kotler, P. & Armstrong, G. 2006. Principles of Marketing, 11th ed. Prentice-Hall of India Private Limited.

Kotler, P. & Keller, K. L., 2006. Marketing management. 12th Ed. New Jersey: Pearson Prentice Hall.

Mikkonen, O., 2004. Environmental Report of Nokia Corporation 2004. Web.

Nokia Australia Pty Ltd, 2006. National Packaging Covenant Action Plan FOR Nokia Australia Pty Ltd. [pdf]. Web.

Nokia Corporation, 2008. United States Securities and Exchange Commission, Form 20-F, 2008. [pdf].

Stoner, J. A. F., Freeman, R. E. & Gilbert, D. R., 2006. Management. 6th ed. Prentice-Hall.

Thompson, A. et al. 2007. Strategic Management. 13th ed. India: Tata McGraw- Hill Publishing Company limited.

Wei, S., 2007. Panda 2007 Cell Phones Marketing Plan. [pdf]. Web.

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