You are on page 1of 15

The market plan of Nokia

Table of contents

Executive summary…………………………………………………………………..2 Introduction………………………………………………………………………….2 The marketing objectives of Nokia in China…………………………………………3 The target market strategy of Nokia in China……………….. ……………………….3 The competitive strategy of Nokia in China………………………………………….5 The marketing mix of Nokia...………………………………………………………..7 Conclusions…………………………………………………………………………..12 References……………………………………………………………………………13

As a leader in mobile telecommunications market. this paper analyzes Nokia’s business strategy to show reason of Nokia’s success. And then different types of mobile phones are put into the market aimed at attracting different consumer groups. and pays a great attention to the market of China. The business strategy includes the strategic intent. Based on the Chinese mobile phone market. the competitive strategy and marketing mix. The strategic concept of Nokia is to take the demand-side strategy. Nokia has its scientific business strategy that leads to success.Executive summary Mobile phone. is popular all over the world. Strong technological innovation ability makes Nokia stand in the most forward position of mobile . China must be one of the biggest markets for those mobile phone manufacturers. Nokia subdivides the whole market into several objective markets according to the researches about the partialities of different individuals. which is defined as a high technology electronic product. The competitive strategy of Nokia is to improve the innovative ability to win the competitive advantage.

and promotional strategy and place strategy.industry all the time. price strategy. which means that Nokia has entered the Chinese market. technology innovation and scientific marketing strategy. and finally marketing mix is the which includes product strategy. the orientation of its products and pays a lot of attention to technology improvement. and the third one talks about the Target Market Strategy of this company. It increases the sales through sensitive advertisement. It values the construction of a brand. It has set up two research centers in China and paid a great attention to the cooperation with other local company. promotion and place. presentation to the celebrities and large-scale entertainment. It keeps being the leader in the mobile telecommunications relies on its plentiful experience. which has been rooted in people’s mind deeply. price. Nokia established its first branch company in Beijing. The concept of the company is "technology connecting people". and characterized this brand by a special vitality. Introduction Nokia is famous all over the world as a successful mobile phone manufacturer. Following that is the Competitive Strategy of Nokia. The company emphasizes the consideration of humanity either in the decision of marketing strategy or in the management of the corporation. And also choose the FD platform as its major sales channel to improve its sale. Nokia insists on the combination of produce and research in China. Nokia also takes parts in several public services and has gained great reputation in China. . In 1985. And now the employee of Nokia in China has increased far beyond 6000. At last is the conclusion about Nokia’s total business strategy. The first part gives a brief description of the Nokia in China. And the marketing mix of Nokia is to use the integrated marketing strategy including product. The second part shows the marketing objective of Nokia.

1996)) Nokia collect data and process it in order to get results that may reflect the age. the personal communicator and the image chaser.The marketing objectives of Nokia in China As Nokia knows that everyone in the world needs communication. David A. Miner. It is required as a basic skill for a company to understand the mobile phone market and its structure. The Target Market Strategy of Nokia in China a. operator and consumer most of all. income. the marketing objectives of Nokia is to take the first place in the field of mobile communications and become the international enterprise welcomed by government. 2004) According to the development of communication and the extensive market research. and have attracted the attention of the majority of customers. lifestyle and the partiality of the consumers in China. Richard E. education. From such continuously improving market segmentation.technology that is intuitive. 2004) . Mowen. Nokia has subdivided the mobile phone market into four different types: the science and technology pursuer. Because of such market target. The market segmentation The subdivision of the market is essential for a company to make decision. the products of Nokia have been more and more mature. (Earl Peter. region. Then it subdivides consumers according to the research results and chooses the target market accurately. and building the Nokia business to ensure its future success. transforming. sex. While in the Chinese market. it insists on helping people fulfill this need by providing consumers with very human technology. the time controller. Nokia in China is determined to become the best employer that has the ability to attract and keep outstanding talents. (John C. a joy to use and beautiful. (Reid. so as to the market decision. Besides these. the strategy of Nokia relies on growing.

the customers prefer to care about the external image of a mobile phone. the consumers wish that their phones could be helpful to raise the efficiency of the work and study. . and abandons a lot of phone's additional features to result in lower prices on a large cut-off. They have already become a kind of electronic product with a high price. price and convenience of a phone rather than any additional features. the objective-oriented consumers pay more attention to the quality. which is expected to satisfy the consumers. strong investigative ability and sound commercial network. While in the market of image chaser. with the suitable marketing strategy. Because of the lack of additional features. In the market of personal communicator.b. Nokia has delineated its different market strategies emphasized on different market demands. Nokia designs various types of products to meet the need of each target market. the product from Nokia. Through its abundant product line. 3108 and 3120 have reflected this. In the market that pursues science and technology. So the products should catch the popular element. Nokia develop new technology applications on mobile phones as possible as it can. practical. And the 1 series and the 3 series Nokia mobile phones like 1100. 3100. With a high price. to extend the service life is very feasible. including products appearance. For this reason. this market offers Nokia with generous profits as well as a high-technology image of Nokia. it is worthwhile to by such a mobile phone at a high price because of the application of new technology and improved efficiency. In customers’ view. is simple. The target market strategy of Nokia According to the correct subdivision of the Chinese mobile phone market. For this features. And the N series of Nokia phones are the typical representatives to fit this market. propagate spokesman that popularizes.

Nokia 7280 and Nokia 7360 are representatives of these phones that have satisfied the demand of fashion. (Michael porter. Lim Kwanghui. Those strategies are: overall cost leadership strategy. The Nokia 7260. So that the users could have enough rest time out of their heavy workload. 2006) The result comes out from the interaction of the competitive strength is to form three kinds of basic competitive strategies. the products of Nokia are trying their best to improve their work efficiency. Theories of competitive strategy There are five kinds of basic competitive strength in an industry. And in the market pursuing management of time. And the orientation of the Nokia adoring series is to express the individual character and grade of their users appropriately.etc. They determine the potentiality for profit of this industry. So for the supervisors who usually need to make decision and emphasize on efficiency. (He Zi-Lin. grade and lifestyle. The potentiality here is measured in the long-term investment. the 6 series of Nokia mobile phones like 6600. The Competitive Strategy of Nokia a. 1997) The first strategy means to make the greatest efforts to lower commodity prices through reducing costs. The final profit potentiality will change fundamentally with the change of the joint competitive strength. differentiation strategy and focus strategy. then to maintain competitive advantage. Won Pho-Kam. 6670 and 6681 are the correct choices. and not every industry has the same potentiality. It is necessary to improve the control of cost because the profit of a low-cost company could be .

2006) b. more and more local mobile phone manufacturers appear and acquire support from some consumers. (Hooley Graham J. John Saunders. and maintain the competitive advantage on the basis of the customer brand loyalty. Nokia could never slacken itself. 1993) Finally. this is essential for a company to overpower its competitors. The basic competitive strategy of Nokia is the differentiation strategy. Motorola must be its major competitor either in China or other areas. John Saunders. This strategy has the potential to gain profit over the average level. and characterized this brand by a special vitality. and then surpass their competitors in a wider scale. Because it can establish a defensive position to deal with the five competitive forces. which requires winning the competitive advantage through improving its innovative ability continuously. Even though Nokia is in a leading position in global mobile communications industry. Strong technological innovation ability makes Nokia stand in the most forward position of mobile industry all the time. And so it is no doubt that the competition in Chinese mobile phone market is intense.much more than the average level. How to meet demands of realistic market? This is the . the main strategy is to focus on a particular customer base or a certain regional market. If a differentiation strategy can be achieved. it would help the company acquire the extraordinary income in this area. While in the competitive market. The competitive strategy of Nokia in China The Chinese market of mobile phone is large and attractive for each mobile phone manufacturer. This requires a company to provide goods or services more efficaciously to a narrow strategic target. to take the initiative and to be a winner. Meanwhile. 1993) The second strategy is to provide a unique product or service that is more functional. (Hooley Graham J. it always maintains a high degree of vigilance. Anycall Corporation comes from Korea also wants to seize this profitable market. (Ketels Christian H. more fashionable or handsome.

The individuation is the marrow of the Nokia mobile phones. This ensures its advanced technology and leading position. 1994) Nokia pays a great attention to technology innovations. Over the past 10 years. Nokia is far-sighted that takes the initial to establish an independent apartment which are specialized in appearance design. (Oster Sharon M. produce new mobile phones continuously. The assignment of this apartment is to provide mobile phones with diversification and individual character. new demands to the company. These centers work hard to analyze the global market and keep on providing new concept. All of these are essential for Nokia to hold its competitive advantage and leading position. Nokia also makes great effort to innovate upon technology. Relied on these investments Nokia has enough resources to do researches. Till now. The marketing mix . create good cooperative relationship with local companies and carry out humanized management. In China. Under the guidance of the philosophy called “technology connecting people”. So that the researches in China develop fast and won great reputation. Nokia has not only won the leading position in mobile phone market. Nokia has 2 R&D centers which are located in Beijing and Hangzhou separately. On the gradually ripe market of mobile phone. it also fit the customers’ needs accurately. the factor that Nokia’s continually updated product design has become a unique competitive advantage. the dazzling and outstanding design is even more important than the technology. Nokia has 54 researches & develop centers all over the world. and could always keep ahead of others.biggest challenge which the Hi-Tech company faces together. and has invested a lot in developing new technologies to maintain its leadership.

In this so-called buyers’ market. the product brand. confirming the target market. means a set of controllable. the ability of the economy. Researchers in Nokia analyze the different personalities. term. place. sign. they are product. or design. Nokia has done well in this area. the product orientation strategy. and promotion. price.The mix marketing program. the marketing strategy should be corresponding to the characteristics of the different consumption community to win the competition. and branding can add value to a product. that identifies the maker or seller of a product or service. This is a problem about its products orientation. Product Strategy There are many choices for a company to make its product strategy. So the Nokia mobile phones have won a great number of supporters around the world. It consists of everything that a company has ability to de to influence the demands for its product. It is no doubt that the Nokia mobile phones will be considered first of all when a person decides to buy a mobile phone because of its high ability. divide consumer groups and decide what kind of mobile phones should be supplied to a particular consumer community. which is one of the major concepts in modern marketing. how to enter and capture that market becomes the essential problem for Nokia. the brand strategy and the product development strategy are the most three important choices. (Safon Vicente. consumer confidence and other personal characteristics. Consumers view a brand as an important part of a product. And . tactical marketing tools that the firm blends to produce the goods or services to meet the demands in the target market. There are four kinds of tools that are well known. symbol. (Peter Doyle. 2003) A brand is a name. or a combination of these. 2007) After subdividing. special design and good reputation. (Sadler Philip. The market researches of Nokia shows that the consumers can make decisions completely in accordance with their own preferences. Among them. 2006) a. when supplied with the mobile phone products with the same quality and effort.

product design is certainly affect the success of the brand. The shape of phones is curvy and easy to hold. b. expressing the brand personality. Nokia designers believe that the screen of a phone is the "eye into the soul of the product". The soft key touch pads also add to the feeling of friendliness. The pricing objectives are the guidance for an enterprise to make price decision. Here shows that Nokia has paid a great attention to the fit the consumers’ demands and acquired encouraging repayments. Price strategy The price of a product reflects that the business enterprise should satisfy the various kinds of demand and get profit to ensure its general index object. Nokia 8800. All in a word. At the year of 2006. And the major method for Nokia to make its pricing decision is the Brand Life Cycle Model that means to set different prices based on different life cycle of the product. which means the purpose or the standard that the company consciously wants to attain while setting a price for its product. That means to set a high price for new products. Once there has a change or . and how it can make that experience reflect the brand character. All of them has gained glorification and always been welcomed by consumers since the day they were put into the market. Nokia keeps being good at molding the good brand image by injecting individuality into product design. medium price for second-line products and low price for third-line products. the design of a mobile phone is essential and important to the development of Nokia. Nokia has won several design awards because of the four successful types of mobile phones. The pricing decision means that the business enterprise set a reasonable price for its product scientifically so that it could achieve the goal. Nokia 7370 and the N series are the awarded phones. Nokia N70. The new products are the substitutes for the original first-line products. It has considered a lot about how the customers will choose the brand. For example.

the competition is not intensifying. and the transparency of the product technology is not very high. the price should be made on the basis of sufficient market researches on consumers. which could make the enterprise earn excess profits. Meanwhile. . and seldom reduces their price because their users do not change their mobile phones too frequently. It is not only ensure the sales of the new products. Take Nokia 88 series and 89 series as an example. Once the new entrants and the transparency of improving technology increase. it is successful only the consumers love and purchase it. When others begin to supply the similar products. surpass itself. whether it is technical.development. As long as the enterprises innovates. it will be able to keep leadership when compete with other manufacturers. When the market is not saturated. it is essential to provide substitutes with improvements and reduce the price of the original ones. functional or just on the packaging and even it is the slightest one. c. challenges itself. also lengthen the life time of the old ones. Promotion of Nokia Promotion refers to the use of effective ways to attract consumers’ attentions and acquire their comprehensions to understand and pay attention to their products and to stimulate consumer desire to purchase and promote the realization of the final purchase. the enterprise could access to excess profits most easily. So it is necessary for a new product to have a high price. No matter what an advanced technology that a product has. these phones were made for those costumers who have strong purchase abilities and treat the mobile phone as a symbol of their status. it only can get a basic profit. So this kind of mobile phones usually has a high price and a long life cycle. the price can jumped to a new level. The technologies applied to mobile phones are innovated fast because of the short life cycle of the mobile phone.

"Technology Connecting People" is the distinguished brand concept of Nokia. the patterns of the marketing channel strategy are diversified. “Love of Scenery” and “An Empire” etc. it adopts some new ways to publicize its products. And Nokia takes the lead to use the celebrity effect and presents the celebrity with its own products. Along with the market development. which has been rooted in consumers’ mind through some traditional promotion methods like TV advertisements. convenience and function etc. The promotional activities of Nokia are always based on the topic like fashion. . But now. concept and the culture of Nokia.The promotional strategy for Nokia to increase the sales is the integrated promotional strategy. Marketing Channel Strategy of Nokia The marketing channel strategy is a set of inter-reliant channels through which the products could be spread from manufacturers to the consumers. Especially in the past two years. It is a series of activities inform the consumer the existence and characteristics of the enterprises. brands and products. create and maintain the image of a company. It also holds programs accord with its products to publicize the brand. magazine advertisements. People could see Nokia phones in the TV or film just like “Friends”. This is actually an advertisement in a different form. Nokia usually contracts with film distributors to make its phones appear in the film. The vertical marketing system. which could arouse the market demands. d. The marketing channel strategy is an important component of the entire marketing system. which plays a significant part in reducing the cost and enhancing the competitive power of the enterprise. The meaning of products here is not restricted to the tangible ones. it pays more and more attention to attract consumers and create consumer group through the usage of emotional elements.

which will help Nokia reduce the decision time. Nokia chose new channel pattern called FD. And then different types of mobile phones are put into the market aimed at attracting different consumer groups. and characterized this brand by a special vitality. Nokia subdivides the whole market into several objective markets according to the researches about the partialities of different individuals. the . promotion and place. price. cooperation and management. That is to say. Conclusions In conclusion. Strong technological innovation ability makes Nokia stand in the most forward position of mobile industry all the time. which has ability to change the provincial agent into funds platform. Through this method. Nokia will decide whom to choose according to their capital. pay attention to the network marketing and try to take the intensive marketing strategy in all domains. credibility. save a lot of intermediate links and make the channel flat. The competitive strategy of Nokia is to improve the innovative ability to win the competitive advantage. ensure the profit of its terminal cooperators and its good post-sale service. most of Nokia monopoly stores can acquire the ability of direct supply. The office should supply perfect base station for the sell. Once the decision is made. channel. the agent must comply with the contract. And the marketing mix of Nokia is to use the integrated marketing strategy including product. and sale the phone in his own area. The business strategy is a general concept. the success of Nokia is inseparable with the scientific business strategy. The strategic concept of Nokia is to take the demand-side strategy. It values the construction of a brand. 1975) Nokia choose its local business agent based on 5C principle. Meanwhile. It includes two indispensable elements called competitive strategy and marketing strategies as well as the concept of the business strategy. (Arch W.horizontal marketing system and hybrid marketing system are three common forms. In 2005.

References Arch W. Mowen. Consumer Behavior-A Framework. Management. Won Pho-Kam. New York: Prentice Hall John C. Marketing and the Competitive Process. (1996). (1993). Vol.35. Some Problems in Marketing Distribution. Entry and Competitive Dynamics in the Mobile Telecommunications Market. It increases the sales through sensitive advertisement. Competitive Strategy: the Key to Marketing Strategy. (2004).orientation of its products and pays a lot of attention to technology improvement. And also choose the FD platform as its major sales channel to improve its sale. Shaw. John Saunders. Williston: American International Distribution Corporation He Zi-Lin. 1147-1165 Hooley Graham J. Beijing:Tsinghua University Press . Research Policy. Miner. London: Post & Telecom Press Earl Peter. presentation to the celebrities and large-scale entertainment.8. no. Lim Kwanghui. (2006). (1975).

Michael Porter's Competitiveness Framework: Recent Learnings and New Research Priorities.6. (2006).2. Fundamentals of Business Marketing Research.html#ixzz1I8ljgs14 .Ketels Christian H. Marketing Management and Strategy. Competition and Trade. Global Journal of Business Research. Vol. London: Post & Telecom Press Reid. 47-59 Read more: http://ivythesis.typepad. (2007). (2004). Plank. How to Compete and How to Compete Profitably: A Model of Competitive Positions and Business Performance. Modern Competitive Analysis. Beijing: Hua Xia Press Oster Sharon M. (1994). no.1. Richard E. (2003). Journal of Industry. no. 115-136 Michael Porter. New York: Best Business Books Sadler Philip. (1997). Strategic Management. David A. New York: Oxford University Peter Doyle. Binghamton: New Down Press Safon Vicente. (2006).com/term_paper_topics/2010/07/the-marketing-plan-ofnokia. Competitive Advantage: Creating and Sustaining Superior Performance.