19-01-2013, 09:54 AM
Nokia Markets
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INTRODUCTION:
The purpose of this report: Research the marketing theories and bring innovation into our marketing plan as a group. Most importantly is to work together as team, therefore we had decided that Nokia product (7210) would be the choice for our research.
COMPONENTS OF MARKETING PLAN:
Company Background:
The enormous telecommunication giant Nokia was founded by Fredrik Idestam in 1865. In 1992, Nokia is focused on wireless and wired telecommunications business. In 2002 Nokia launches its first 3G phone (Nokia 6650). In 2007 Nokia recognized as 5th most valued brand in the world. Nokia Siemens Network produce telecommunications network equipments, solutions and new internet services brand. Now Nokia had 112,262 employees in 120 countries, sales in more than 150 countries and global annual revenue of 51.1 billion Euros and operating profit of 8.0 billion as of 2007. It is the world's largest manufacturer of mobile telephones: its global device market share was about 39% in 2008. Nokia produces mobile phones for every major market segment and procedure, including GSM, CDMA, and W-CDMA.
P.E.S.T:
Political: - the G3 technology controls that Nokia have to consider because many business want to make the profit in this industry so they may be attracted to take in their customers about prices, quality of products and the accessories of their products. They try to cut cost of production by using lesser quality materials in their products: weaker materials for Nokia cases and batteries. Moreover, they have to ensure that the waste of their production may not be polluted the environment. It is the big legal trouble.
Environmental social and ethical: - Nokia have handled to be good atmosphere, friendly and have not made illegal things to against the environmental issues and ethical which are engaged to the government laws. Beside the quality of products, this is one of the reasons they are such a popular brand of mobile phones.
Technological: is the most important factor in the market technology that companies like Nokia had to mind. They stay up to date with all the newest technological go forwards (like high quality camera and movies phones) therefore they can get the biggest market share and stay 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: Nokia's 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 wage costs are forever rising. Higher value of import charges has been set. There are some high supply-chain costs that Nokia are paying at the moment.
Marketing management process:
Market opportunities: this is two key things that Nokia apply to get into the phone market opportunities
1. Improve the technology to make phones and products as camera and picture messaging would draw new consumers to purchase Nokia phones.
2. Using improvement to recreate products which are presented as new phone, the others competitors don’t have. The call charge price fall, it should be an opportunity for Nokia to sell more because now people can effort to have more than want phones and willing to pay for the cheaper of call charge.
The target customer:
It helps decide what market segment to intend by looking at the habits of customers. They make decisions about the type of products, advertising, promotion, pricing and packaging. Nokia will need to know about the following:
Marketing research:
A businesses success is based on whether they can give the customer what they want and when they want it. Market research involves the collection and analysis of data relating to the consumption 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 so Nokia need to find a new market segment to try their products. Companies need to gather information on the following of the consuming population:
- Consumer behavior- How does customers react to new and developed products by advertising?
- Buying outlines and sales trends: - They also need to understand how buying outlines change over time and what markets are developing to enter the market.
• Consumer favorites- What customers are looking for in the product? Nokia need to examine how their competitors are adjusting their prices to meet the consumers need, how well the competitors are trading and their strategies.
5. Product:
The actual (tangible) product is the Nokia 7210. As an international telecommunications company, Nokia develops and makes mobile phones, networks and systems for wireless and fixed networks. The company also provides other multimedia equipment.
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 production with the brand name printed above the screen and just below the headphone. Nokia take such an aggressive marketing strategy has promoted them above the competition as consumers are fooled 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 few companies as well as Nokia in the market (Sony, Samsung est.) so they could charge higher prices then they can at the present time in the product life cycle because no companies would challenge to enter a price war with such a new product of famous brand name and good promoting 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 are becoming 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 high promotional costs issue from.
Promotion mix:
Some of Nokia promotions that they used in 2002: Sales Promotion Nokia gave away a free photo fun pack, which is available to all customers who purchase Nokia 7210. So that customers 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 with head 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, supported by radio advertising. Example: winning a Mini Cooper car each month during April, May or June, as well as a retailer motivation to win a VIP trip for two to the Italian Grand Prix.
Summary
Firstly, we started to write the company background and the competitors in the market. The environmental factors like micro and macro environment to explain the situation of what is P.E.S.T and S.W.O.T. then we will look into Research and Development management process that give an overlook of the market opportunities and targeting of customer. Given these information, we can proceed to look into the product and its branding. Analysis the product life trend, Development product strategy and pricing strategy. Monitor and manage the organization's own sales and distribution activities. Finally, A promotional mix specifies how much attention to pay to each of the four subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image.
CONCLUSIONS:
In this Marketing plans group Assignment, there are a lot of proceed that we need to take note. During this learning process, we found out that every components of marketing plan is important. So we had to put extra effort to do our research in order to get our information correctly. This group Assignment is not talking about only doing our research only but it also tell us to be cooperative and united. So that we can face challenge as a group and accommodate each other when anyone of us need assistance.