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Analysis of Nokia’s Marketing Strategy
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Introduction Nokia ruled the smart phone world until the introduction of iPhone in 2007, which changed the current market trends. With an aim to regain its position as a market leader, Nokia entered in to a partnership contract with Microsoft. Also, it launched a new series of smart phones called the Nokia Lumia, in order to regain its competitive position. However the main objective of Nokia is to regain its lost market share and achieve its number one position in the smart phone market.
Marketing Mix The term marketing mix is synonymously used for the companies four P’s – Product, price, place and Promotion. It is through these components that companies differentiate themselves from the competitors. Product: Nokia’s smart phone product line includes series like Nokia Lumia, Nokia Asha and other feature phone series. These series differ in product designs like touch screen, classis button pad or slide sets. All Nokia products vary in features and are an extremely user friendly. Price Nokia produces mobile phones for all segments to meet every individual’s social need. It uses a push strategy, where the company promotes its products through retailers to stimulate demand. Another pricing strategy used by Nokia is price skimming, where the product is launched at a higher price and then th price is gradually decreased. Promotion Nokia promotes its products through advertising on television, newspapers, radio and billboard. Place Nokia products are supplied in the market using distributors. Other channels include mobile operators and retailers in the industry.
Competitor Analysis Nokia’s biggest competitors are Apple and Samsung. Apple with its iPhone has become the world’s top brand for smart phones. Similarly, Samsung is appearing to be a big threat as they are all part of the Android phone family. Apple Inc. Apple entered the European market in 2007. Since then it has been very successful, accounting for 25.3 percent market share in Europe. Apple has a diverse target market which caters to kids, adults, working class and old age. Apple products are extremely user friendly and are currently the most expensive
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products in the smart phone category. Apple focuses on viral marketing and word of mouth rather than traditional mediums of promotion. The company has its own stores worldwide to sell its products. Samsung Samsung uses a Google operating system known as Android. It introduced a Windows phone for the first time in 2012, by targeting the mass market and providing a product for each segment. Along with innovative products like Samsung S3, it launched mini versions of S3 for people who cannot afford it.
Nokia SWOT Analysis
What does Nokia need to do? Nokia needs a game changing innovation to get back its market share. Its partnership with Microsoft reflects its going in the right direction. Nokia has an outstanding hardware technology such as the Pure View Camera. Nokia should change its strategy towards being market oriented. Predicting consumer trends smartly and delivering what the consumers want can only make it regain its desired positioning.
Reference http://www.researchomatic.com/marketing-plan-of-nokia-152136.html http://www.researchomatic.com/marketing-mix-nokia-143321.html http://www.researchomatic.com/Critical-Analysis-Of-The-Nokias-Marketing-And-The-Relation-To-ItsCurrent-Situation-80928.html
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