Introduction
A marketing plan is a formal piece of writing that provides information; such as: activities to achieve that will help an organization improve a number of with their marketing objective. In cases like this it is perfect for Nokia's marketing department to ensure their continued progress in the cellular phone mark.
Nokia is one of the leading mobile vendors in britain. This enterprise presents high end and basic mobile phone devices. Nokia's head office are in Finland but they use just over 120, 000 people all together from all around the globe.
According to the Datamonitor Company over view, published on the 19th of August 2011, listed below are a few Key facts about Nokia
Head Office Nokia Organization Keilalahdentie FIN-00045 FIN
Phone 358 7180 08000
Fax 358 7180 34003
Web Address http://www. nokia. com
Revenue / turnover 42, 446. 0 (EUR Mn) Financial Year End December
Employees 129, 355
New York Ticker NOK
Frankfurt Ticker NOA3
Heilsinki Stock NOK1V Exchange Ticker
SWOT Analysis
A SWOT analysis is a tactical planning technique companies can use to assess their internal Strengths and Weaknesses, as well as their external untapped Opportunities and Hazards in the market they offer with.
Nokia is a respected provider of mobile phone devices in the UK, therefore in charge of a large range of operations which allow them bargaining capacity, exposure to a big customer foundation and overall this can help look after cost that the business need to pay to stay successful.
Strengths
Nokia's large scales of procedure are brought about by their big market talk about and acknowledgement globally. Nokia's worldwide acknowledgement ensures them a large addressable market. Disregarding Nokia's damage in market talk about to the current world's top cell phone makers, they are actually the third greatest on the globe although the most significant distribution network in the industry, including a web retail service. Also compared to their competitors they have a big health care network in many countries across the world.
Through Nokia's increasing knowledge about how precisely their customers use their devices this allows their creators and publishers the opportunity to enhance the development and have applications already installed on the future devices.
All the factors speak about above amongst others provide data that the Nokia cooperation do perform many functions. This vast number keeps the firms cost well taken care of. Accordingly Nokia looks forward to bargaining vitality over their products to a huge customer bottom.
Weaknesses
Nokia has recently been rapidly burning off market show mainly cause of their 'Lacklustre' products profile and drop of prices because of competitiveness. The business uses a Symbian operating System which in this current day and time is considered outdates, causing a poor impact on their sales. This weakness Nokia presently face must be attended to at the earliest opportunity because if not their loos in market show will eventually convert to earnings decline, that may take Nokia back to square one.
Opportunities
As the demand for the 4G infrastructure raises, the LTE evaluation offers Nokia Siemens Networks (NSN) many opportunities. LTE provides data efficiency greater than 3G networks. Therefore according to estimates the number of users worldwide grew to about 1 million which is therefore still expected to grow to over 8 million in the future. NSN is an excellent location to not only increase investment in the technology to therefore improve the best development but also affect the LTE growth in the company.
The uprising smartphone industry was approximated to rise up to 49. 2% in 2011 and by 2015 the industry is expected to double in proportions. Unfortunately Nokia have never been able to succeed in this area up to now. However accomplished strategies to partner with an IT firm and launch a new group of smart telephones. This allowed Nokia the chance to get into the market with the aid of Microsoft's willingness to spend billions of dollars on development and advertising. Even though their product is a overdue entry into the market the fact that the smartphone industry continues to be raw, this gives Nokia a opportunity for driving a vehicle penetration and in turn aid them restore their income.
Threats
The cellular phone industry is a very competitive environment. Where Nokia face stiff competitive pressure not only from low end Android remembering to say Apple who declare to be releasing a cheaper iPhone soon. Not forgetting to say cheap handsets from appearing nations such as; China's ZTE and India's Indian Micromax which ruin Nokias position in upcoming markets.
Technology these days is changing at such a rapid pace. The growth of cordless communication industry is decided by the fast change on the market standards, short product life pattern and the repeated release of services from different mobile devices manufacturers. Therefore Nokia's operational performance must be controlled and maintained systematically alongside the companies section of individuals in charge of keeping up technological advancements so in turn they can provide customers products at competitive prices. Nokias progress will however be avoided from upgrading if they are unable to at least anticipate coming technological trends by keeping up with the ever before changing customer tastes. Additionally the short life routine this industry faces with most devices come back of services is usually influenced.
In the whole income will be impacted as the average price of devices decline. In Nokia's circumstance they have undergone a 3% semester in their cellular phone device sell and their gross profit also decreased by about 5% as well. However for Nokia their smartphone devices are expected to continue viewing low prices just like other mobile phone makers.
PESTEL Analysis
The Exterior Environment of Nokia Company
The exterior environment directly affects your choice making process. This can be analysed through the PESTEL model. PESTEL are Political, Economic, Community, Technological, Environment and Legal Factors. These factors can't be controlled however they can usually be modified.
How is PESTEL impact to the Nokia Company
Political Environment
There include federal government regulation and how government result to the company and job lows, environment legislation, tax coverage and political risks. In this case political environment immediately affect to the Nokia Company.
They have to consider about the health and security environment prior to the release new product. Because mobile phones will work with radio waves it may be problem for the health and security environment. (UK government introduced new rules for the business enterprise environment so that they have to careful when they establish the products)
They have to give correct prize for the product
They have to consider about exchange rate, monetary level and occupation rate of the united states.
Economic Environment
This is about Interest rate, tax changes, financial growths and income level of the united states. When the company makes decisions they need to think about those things. These things are very important to company. As a most significant mobile company they have to concern about lot of things before they send their product to the marketplace.
Economic degree of the country
UK is developed country in order to understand which products most suitable for this country.
Income level of the people
If they concern about the income level they can understand about the income circulation like high class group, middle income group and low category group. They are able to focus on these three communities and from then on they can give price range because of their products.
Interest Rate
Market Innovation
If they take into account the market invention they can enhance their marketing methods. Also they can kick off new products and change their design.
Social Environment
Social Environment is obviously effect to the business. Their include culture, education, demographics, and attitude. If we start the business enterprise certainly we must think about this environment.
As a mobile company their trade is based with communication and connecting people. So that their goal is make it as easy as possible to customer to be satisfied dealing with them.
They have to develop their product and service among the people and modern culture.
They can target the youngsters people and consider about the training issues
They must have good cooperate community with the members where they operate
Technological Environment
Technology environment is approximately ICT development, global communication and new technology. This environment really helps to business and also customer.
Nokia already has progress technology for their products. Such as for example GPRS, MMS, Bluetooth, WAN, Java as well as have R&D departments.
Previously they tried to produce personal computers, monitors and Television sets but after 1990 Nokia improved their functions to cell phones market
They have to boost their technology which they use to products
Their products should be better than their rivals.
Modernization their product and release new products to the market
Environment
This mean is how disasters, climate change and weather changes are impact to the business.
They have to consider about global warming and environment issues
Wherever they operate they must have idea about the environment and weather
Legal Environment
Legal environment is about health and security rules, employment rules and international rules.
They have to concern about health and safety rules
They have to concern about how is employment guidelines impact to them
They should know about their competitors
When they dealing with internationally they should know about international rules
Nokia's Smart Objectives
The Collaboration:
In order to accomplish our goals; our plan is to combine causes with Microsoft to be able to regain leadership within the Smartphone market. By getting started with forces our target is to make a global ecosystem like no other. This ecosystem will deliver a creative and unique product range, with great property from both organisations.
By adopting Glass windows as its most important platform, Nokia will help drive and identify the future of the program with knowledge in hardware optimisation, software customisation, as well as terms support.
We will be combining service assets which makes it easier for program developers to affect Nokia's global size; Nokia maps will be in the centre of key Microsoft property such as AdCenter, Bing and Nokia's program and content store will be built-into Microsoft Current market.
The benefits of Nokia forming relationship with Microsoft is the fact that Nokia will contain the upper hand as they will have first gain access to and an exclusive arrangement with Microsoft which enables them to find the new Microsoft house windows operating system before their competitors
Connecting people:
By providing convincing, affordable and localised mobile activities Nokia strives to connect more people online. Nokia will achieve future purchases by developing belongings such as program, software, and apps; that will bring a far more advanced and modern mobile experience for their customers and offer work at home opportunities for builders.
As well as seeking new ideas Nokia packages on preserving their classic, reputable and loved services such as touch-screen, type, dual sim, maps, and web browser; that may all continue steadily to offer a extensive value to the business, customers, designers and consumers. General market trends implies that 200 million people use Symbian globally and Nokia will modernise the platform through purchases with new features, hardware improvements such as GHz+ handling capabilities and significantly increased graphics acceleration and software improvement.
Implementing changes:
Changes in Nokia's control, approach and functional structure such as the changed governance will expedite decision-making and remodel time-to-market of products and improvements, inserting a heavy concentrate on results, quickness and accountability; these elements will play an important part in attaining and aiding their goals. The decision to get with optimism by seeking fresh opportunities for technology will guarantee Nokia's future success. (web 6)
Marketing Strategy and Segmentation
Marketing strategy contributes to this is of corporate and business strategy through the examination of the clients and environment; it helps the company identify its competitive benefit over its competition through careful observation. The strategy is designed with the entire objective of the organization; it must be building on the resources and competence available to the organization.
Ryerson. ca. 2010. A Template For ONLINE MARKETING STRATEGY.
Fig: The above mentioned diagram illustrates an overview of marketing strategy.
Nokia's Marketing Strategy:
Key components of Nokia's strategy:
Build a new receiving mobile ecosystem in partnership with Microsoft
Nokia has produced a strategic collaboration with Microsoft that will, hopefully, see us get back lost earth in the smart phone market. Alongside one another, we plan to create a global ecosystem that surpasses anything presently around.
Bring the next billion online in expanding growth markets
Nokia's strategy is to leverage its technology and durability in growth markets to connect even more people to their first internet and application experience. By giving compelling, affordable and localized mobile encounters, particularly to appearing market segments, their ambition is to bring the next billion online.
Invest in next-generation disruptive technologies
The Nokia-Microsoft ecosystem will deliver differentiated and impressive products with unrivalled scale in terms of product breadth, geographical reach and brand identity.
Increase our concentrate on velocity, results and accountability
Their new strategy is reinforced by changes in Nokia's management, operational structure and way. The renewed governance will expedite decision-making and improve time-to-market of products and enhancements, inserting a heavy give attention to results, acceleration and accountability. Nokia. 2012. About Us.
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What is Market Segmentation?
It is a marketing strategy that allows dividing a huge target market into subsets of consumers who have common need and software for the relevant goods and services
New Segment
Promotion
Offering
Place
PriceNew
Offering
Fig: A Market Segmenting Approach
Criteria for Segmenting:
An ideal market segment meets every one of the following conditions:
It is possible to evaluate.
It needs to be large enough to earn earnings.
It must be secure enough that it does not vanish after some time.
It can be done to reach potential customer via organization's promotion and distribution route.
It is internally homogeneous (prospects in the same portion choose the same product characteristics).
It is externally heterogeneous that is Heterogeneity between sections (customers from different segments have quite simply different quality personal preferences).
It responds much like a market stimulus.
It can be cost-efficiently reached by market intervention.
useful in deciding on marketing mix
Nokia's basis of Segmenting:
Geographic segmentation
The market is segmented according to geographic criteria- nations, expresses, regions, countries, towns, neighborhoods, or zip codes. In terms of geography company is using local approach to be able to appeal to the neighborhood inhabitants and gain their admiration and trust. Nokia continues opening its flagship stores all around the Asian and Middle Eastern rural areas to have the ability to bring their customers all the latest improvements and offer them with quality support services.
'What is geographic segmention ' Kotler, Philip hilip, and Kevin Kevin Lane Keller. Marketing Management. Prentice Hall, 2006ISBN 978-0-13-145757-7
Demographic Segmentation
Demographic segmentation involves dividing the marketplace into groups predicated on factors such as time, gender, family size, income, occupation, education, religion, contest and nationality. Nokia has many mobile and smartphone devices to charm to all this categories (from kids to elderly people), all income categories, different family cycles (singles and married couple households), folks of different religions and occupations. Unlike Apple Nokia has a distinct acceptance of women as a major target market. Almost every serie of devices comes in green or precious metal color.
Kotler, Philip, and Kevin Kevin Lane Keller. Marketing Management. Prentice Hall, 2006. ISBN 978-0-13-145757-7
Psychographic Segmentation
Psychographic segmentation: individuals are divided according to their lifestyle, personality, beliefs. Aliens within the same demographic group can show very different psychographic profiles. Nokia products indulge the tastes of folks of working school and corporate and business CEO's. Different models of mobile devices appeal to customers with various lifestyles. For example, Nokia N79 was advertised as a athletics phone because of a wireless heart and soul monitor applied from Polar. The cellular Polar Bluetooth Wear Website link heart rate belt helps screen a heart rate plus a rate and distance when you are enjoying your jog.
Kotler, Philip, and Kevin Kevin Lane Keller. Marketing Management. Prentice Hall, 2006. ISBN 978-0-13-145757-7
Benefit Segmentation
A strategy that divides prospective customers into different organizations based on the benefits they seek to derive from products. A lot of the Nokia consumers have strong commitment to the business's products because they are able to find a very good quality because of their money. Among benefits Nokia provides great vitality life, various numbers of applications for different needs and wishes, durable and sensible design
Kotler, Philip, and Kevin Kevin Street Keller. Marketing Management. Prentice Hall, 2006. ISBN 978-0-13-145757-7
Ansoff's Development Matrix:
Ansoff's matrix suggests four substitute marketing strategies which hinge on whether products are new or existing. In addition they focus on whether market is new or existing. Within each strategy there's a differing level of risk. The four strategies are:
Market penetration - This calls for increasing market show within existing market segments. This can be achieved by providing more products/services to set up customers or by finding new customers within existing markets. Nokia has attempted this with their attempt to penetrate the Windows Mobile Market with their new Lumia Range.
Product development - This involves developing services for existing market segments. Product development will involve thinking about how exactly new products can meet customer needs more directly and outperform the merchandise of opponents.
In comparison with their old handsets and Smart Telephones Nokia has taken remarkable steps in product development, for example now all their phones can be connected to Wifi.
Market development - This strategy entails finding new markets for existing products. General market trends and additional segmentation of markets helps to identify new sets of customers.
Diversification - This calls for moving services into new markets at the same time. It's the most dangerous strategy. A lot more an organisation moves away from what it has done in the past the greater uncertainties are manufactured. However, if existing activities are threatened, diversification helps to spread risk. This is strategy was executed by Nokia when they collaborated with Microsoft for the new Lumia Series devices.
The Times 100. 2012. Case Study.
Ansoff_Matrix
Marketing Combination for Nokia
Nokia's quest is Connecting People and the goal is to build great mobile products that permit billions of men and women worldwide to take pleasure from more of what life provides. The main challenge is to achieve this in an progressively more strong and competitive environment.
To restore the leadership in the Smartphone space, Nokia has formed a strategic relationship with Microsoft that will, we hope, see us gain back lost earth in the Smartphone market.
It is actually important that the balanced use of7ps (Product, Place, Price, Advertising, Process, Physical Environment, People) for NOKIA's marketing combination to get back their position in the changing smart phone market.
PRODUCT
Design: Nokia has come up with a sustainable design with the new smartphone. It's an approach that understands that the product doesn't simply need to look good and work well, but should be created in a way that's mindful about what materials were used, how these were sourced and whether they are recyclable and green. Nokia's sustainability method of its designing helped to look at how they may avoid the unnecessary clutter and decrease the amount of parts. Nokia mobile phones were created and created to last.
Packaging: Nokia widely using paper structured smaller packages for packing, so that it can be easily recycled and will save you money. And Nokia is trying to reduce the size of cartons by each year.
Environment: As a part of environmental thinking nokia is looking forward to use renewable resources on cell phones for electricity (solar). Nokia has began to raise the use of recycled content in their product.
Quality: Quality is the first guarantee that Nokia gives to its customers. They want to good in customer and consumer loyalty.
Branding: Nokia is using Umbrella branding "N series and E series". They use company logo showing their brand personality.
PRICE:
The cell phones that Nokia produce are usually sold at high prices(new devices should be expected to enter the market at around 200+, if they carry the latest technology). The price tag on the new phones usually lessens after an introductory period, which is usually around 2 a few months long. Nokia's prices are usually competitor based mostly, in such a way as, they make an effort to keep their prices a lttle bit lower then those of the closest competition, but not only the "smallest" competition as consumers do not head paying the excess money for the "extra quality
PLACE:
Nokia phones are usually sold at all established cellular phone dealerships such as Car cellphone Warehouse and THE HYPERLINK, although they are also sold at other stores such as Dixon's and other Electric powered suppliers. The merchandise are only bought from the electric powered suppliers and store other then dedicated telephone dealerships after the introductory period so the phones can remain limited model, as this will encourage more youthful consumers to buy them
PROMOTION:
Nokia tend to promote the new solutions and cellular devices they create using one big marketing campaign that targets a singular technology rather than each individual handset so they can appeal to a lot of different marketplaces with one plan. The promotional initiatives of Nokia for the communication of its products with the target market are always been very effective. The channel that Nokia has used for communication includes unique Tv set adverts, interactive websites, field marketing and unique circulation systems which enterprise rural individuals as well. Overall, the promotional mixture of Nokia is very effective. Discussing circumstance, the tagline of Nokia "It?s about little pleasures in life" was the part of every advert which helped create a link with the brand Nokia and its product line.
