The Marketing Mix Strategies 1. Product Nokia’s main product is mobile phone and it has a wide range of product portfolio including over a hundred devices. Nokia has produced the first mobile phone with the antenna inside, the first built-in camera, the first changeable faceplate or short-message chat function and so on. Nokia offers various mobile phones with varied quality, shape, size and color. Product segmentation is very significant factor in the mobile device market to reach all consumers. Nokia cell phones can be divided into three categories which is business line, the multimedia line and the connect line.
The business line refers to the mobile phones that have priority functions such as connectivity (Bluetooth, WAP, internet connection), time management applications such as a calendar. The multimedia line is targeted the young users with N-series mobile phones that enable users to watch video and TV, play games, listen to music and the other features such as navigation, large capacity hardware. The connect line category’s users consist students who do not have disposable income or do not want to pay a lot of money for a mobile phone.
These devices are still stylish and equipped some technological features such as internet, camera and mp3 player. The market researches of Nokia shows that the consumers make decisions in accordance with their own preferences, the product brand and the ability of the economy when supplied with the mobile phone products with the same quality. Thus, researchers in Nokia analyze the different personalities, divide consumer groups and decide what kind of mobile should be supplied to a particular consumer community. This process is products positioning.
Designing professional mobile phones with suitable size that fits the requirement of the user and high technology-enablement is what defines the Nokia brand. Consumers view a brand as an important part of a product, and branding can add value to a product. Nokia keeps being good at molding the good brand image by injecting individuality into product design. For example, Nokia designers believe that the screen of a phone is the “eye into the soul of the product”. In marketing mobile phones specifically, each mobile phone has a product lifecycle.
Nokia could extend the product’s life to 2 years. Successful products progress through four basic stages: introduction, growth, maturity and decline. This progression is known as the Product Life Cycle. The introduction stage is concept of phone, growth stage is Nokia E-Series phone, maturity stage is Nokia N-Series phones, and decline stage is Nokia 3110. 2. Price Nokia understand that most of the consumer demand for portable multifunction device, so the budget of the target consumer for specific model is considered.
Nokia price the products by comparing to other products with similar function in the market. Nokia Corporation, which targets all customer segments, has a wide range of price variations from the lower price group to the higher price group depending on customer’s positions and needs. In the mobile phone market, the factors affecting Nokia’s device prices are the cost of products, customer demand and competition. Nokia initially sells products at a higher price to gain profit. It is to reimburse the cost of investment and cost of research and development.
After a period of time, the company reduces the high price for beginning depending on their competitor prices and they make less profit. However, there is still a large profit because of increasing amount of sales. Because of Nokia is establishing as branded so it has the power to sell products at the price they want or even lower price when compete with other company. This successful price strategy enables Nokia to gain competitive advantage in the market. The major method for Nokia to pricing decision is the Brand Life Cycle Model. This model is to set different prices based on different life cycle of product.
Nokia set a high price for new products, medium price for second line products and low price for third line products. Nokia pricing on the basis of sufficient market research on consumer number mature an advance technology that a product has, it will successful once the consumers love and purchase the products. For example, Nokia 88 series and Nokia 89 series, consumers who have strong purchase abilities treat the mobile phone as a symbol of status. So this kind mobile phone has a high price and long life cycle and will seldom reduce prices because they will not change their obile phone too frequently 3. Place Nokia Company, which doesn’t contact directly with consumers, uses some distributing channels to reach the customers and sells their devices through the mobile service operators such as Vodafone, T-mobile; independent mobile phone retailers such as Carphone Warehouse, The Link; some electrical suppliers like a Dixon and finally the Company’s web site. This selling policy carried out in the all countries in which Nokia has got the market provides to reach all consumers. Company has made ease of ordering Nokia handsets all over the country.
There are around 1, 00,000 distributors of Nokia handsets across the country. Launch of “Nokia Concept Stores” which makes consumer feels that he or she is standing in the middle of the cellular tech-hub. Initially, the distribution strategy was focused on urban population negating growing demand in rural areas. In order to become competitive, Nokia reformulated its distribution strategy with more focus in the rural areas which were previously served by local competitors. The new efforts made in revamping distribution strategy helped boost sales and increased market share as well.
Nokia choose its local business agent based on 5C principle. Nokia will decide whom to choose according to their capital, credibility, channel, cooperation and management. Meanwhile, pay attention to the network marketing and try to take intensive marketing strategy in all domains. For example, Nokia chose new channel pattern called FD, which has ability to change the provincial agent into funds platform. This saves a lot of intermediate links. Through this method, most of Nokia monopoly stores can acquire the ability of direct supply which ensure its good post-sale service. . Promotion Promotion was done by Nokia to increase sales and their publicity. For instance, Nokia offered precious gifts such as get a chance to win Yamaha bikes and Toyota Vios. This is to attract consumers to purchase Nokia mobile phone. During festival such as Chinese New Year, Deepavali, Hari Raya, Nokia will always hold a promotions. In advertising part, there are printed advertisements used by the company to promote their products. There are newspaper, magazines, brochures, TV, radio, website banners, billboards and others.
In the advertisement, the Company always emphasizes their well-known slogan “connecting people” to build relationships, to bring people together, to collaborate and communicate. Nokia invites famous actors to become spoke persons of the products. This will attract more buyers because many people will support their idol. Retailers and mobile phone operators generally carried out sales promotion for Nokia’s devices. Nokia promotes the product to retailers such as Carphone Warehouse, then they promote to consumers.
Sometimes they can be joint promotions with a bank or credit card company. Moreover, the mobile phone operators offer campaigns including mobile phone and phone line are the most popular way of promotions. Public relations also play an important role in the Nokia’s promotion strategies. The company supports financially some social programs such as educational activities, charities and accept being sponsorship for sports, music and television. Nokia has education, creative arts and civic engagement programs in 57 countries.
These kind of social relations make Nokia more attractive in the mind of consumers to ensure positive opinions about the company. Social media is the fastest, easiest and most cost effective ways of publishing news for a global audience in highly visible way. Nokia have creates and use Facebook Fan Page, Youtube videos to pass the messages to a wider audience. For instance, Nokia N9 is one of the products that have been promoted. It shows functions and strength of Nokia N9 with innovative way and with a suitable music to draw attention of potential buyers.
Why Work with Us
Top Quality and Well-Researched Papers
Professional and Experienced Academic Writers
Free Unlimited Revisions
Prompt Delivery and 100% Money-Back-Guarantee
Original & Confidential
24/7 Customer Support
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.