Global Brand Strategy Unlocking Brand Potential across Countries Cultures & Markets - Case Study Example

?UFC Business Applied Project Executive Summary The paper is aimed at analysing the company Nokia with regards to its involvement in the Mobile Technology advancements in the international context, especially in the Caucasian and Commonwealth of Independent States (CIS) region where Nokia has a huge growth in its sales. Recently it was noted that the company earned a sales figure of around 15.8 million in the year 2012 from its business in the European markets including the Caucasian and the CIS regions (Nokia, 2012). The brand strategy and the aim of the company are also noted to be frequently altered with the change in the technology. The technologies of Nokia have also been considered in the paper along with its impact on the targeted customers of the brand. Various practical strategies have been considered by Nokia in order to sustain in the market which has also been presented in the paper. From the study, it has been observed that Nokia implements different technology strategies for different countries based on the variances of the targeted customer groups. One of the key success factors achieved by Nokia in its global operations is its competency in developing appropriate technology strategies with due consideration towards the market requirements and trends. Table of Contents Executive Summary 2 Introduction 4 Mobile Phone Technology Evolution 5 Past, Present & Future of Nokia’s Technology Strategies 6 Brand Specific Case Study 8 Brand Strategy 10 Conclusion 11 11 References 13 Introduction The Caucasus regions include a number of countries like Russia, Georgia, Iran and Turkey. Among these, Russia and Turkey are identified as the main target markets of Nokia. The reason behind Russia and Turkey are the targeted markets for Nokia among the Caucasus regions because the countries share huge population in comparison to Georgia and Iran. The customers of Russia and Turkey have more customer preference for Nokia with respect to Georgia and Iran. It is owing to the reason that industrial changes in the technology sector along with rapid enhancement of the customer demand have triggered these markets as more profitable in comparison to other Caucasian countries. In Russia, Nokia mobile phones have successfully grown from the time it launched its business in the late 1980s Nokia has expanded its successful business in Turkey also offering target customers with a varied product range including Near Field Communication (NFC) and mobile phone accessories (Nokia, 2012a; Nokia, 2003). Similarly in the CIS region, Ukraine and Kazakhstan are the major targeted markets of Nokia. In the markets of Ukraine and Kazakhstan Nokia provides the customers with its updated technology products such as Nokia 808 Pure View and various kinds of popular applications. Customer service is important in these markets along with offering updated products at frequent intervals to its targeted customers (Nokia, 2012b; Nokia, 2012c). It is in this context that these regions have been identified to witness rapid technology evolutions in the mobile phone industry. With due regards to this fact, the prime objective of the paper is to identify the process through which technology evolution took place in the regions of Caucasus and CIS. The discussion will further intend to develop an understanding of the role played by Nokia in the process with regards to its brand strategies in these regions. Mobile Phone Technology Evolution The evolution of mobile phones instigated with the launch of 1st Generation (1G) mobile tools launched in the year 1978 and developed through the analogue system. The 2nd Generation (2G) mobile phones were launched in the 1990s. The mobile phones had Global System Mobile Communication (GSM) and the kind of service initially started from Europe. The 3rd Generation (3G) mobile phones were an added advantage to the then available systems. The 3G technology bought facilities like video, audio and graphics application. The purpose behind developing 3G technologies was to set up a single network other than different types of networks that were set up in the American, European and Asian regions Innovation has continued with the current 4th Generation (4G) mobile technology with a transmission rate of around 20 Mbps which is much faster than the 3G technology service and has already been launched in the year 2010 but will be available for use by the end of 2012 (Warman, 2012). This gradual development apparently depicts that the mobile technology industry has witnessed rapid evolutions in terms of technology since its initiation. Past, Present & Future of Nokia’s Technology Strategies In 1991, Nokia was the first to supply mobile phones at Delta Telecom in St. Petersburg which rendered various competitive advantages to the brand in terms of customer demand, meager competition, and political as well as legal support. The company had created a brand name in most of the country. Moreover, Nokia as a brand getting into a new market will create a lot of competition for the other local mobile companies. This competition that will be created for the other companies will give a competitive advantage for Nokia. During that time Nokia phones were very much popular in the Caucasian region due to their exclusive designs and user friendliness. Today, Nokia has emerged as a huge supplier of GSM and Multimedia Messaging Services (MMS) in the countries of the region, especially in Russia (Nokia, 2003). During the mid 2000s, Nokia operated through a strategic agreement with the networks owned by Seimens in Russia. The partnership between Nokia and Seimens gave rise to Sitronics Microelectronics which eventually became the supplier of analog system globally. The analog system became the power manager of electronic components as well as the products of Nokia Seimens Networks (Panibratov, 2010). In the Caucasian region, in Kazakhstan, Nokia further launched its N9 Smartphone which included latest hardware and software technologies with updated camera facilities. The fast access of N9 Smartphones allowed the customers to stay updated with the various social networking sites as the software also provided internet facilities. Moreover, it provided the user to switch on to any other activity while surfing the internet (American Chamber of Commerce in Kazakhstan, 2011). With a similar intention to capture the market share of CIS region, in Turkey, Nokia stood first to introduce the business of mobile phones and made a successful retail business acquiring around 48% of the total market share of that particular country in the year 2010. In the Smartphones category, Nokia again holds the market share with a percentage of around 46%. As per USA sales it is around 378 million for Latin America and 283 million for North America. Sales revenue in the European market was recorded to be around 930 million in the current fiscal of 2011-2012. Therefore, it can be understood that European nations have the highest sales with respect to doing business with Nokia in comparison to its business in the US market (Nokia, 2012). Hence, it can be affirmed that Nokia has been successful in satisfying its customers in Turkey with its innovative technologies (Euromonitor International, 2011). Moving forward in the CIS region, the company penetrated the market of Ukraine in the year 2007 attaining a record sale of smartphones and communicators (AVentures Group, 2007). In order to gain competitive advantages in the future, the company attempts to serve its customers with personalised and more reliable technology support in its products. For instance, Nokia announced its strategy for 2015 visualising a digital world with better opportunities in communication technologies. The connections that will be created digitally will enhance the social life of its customers with immense technology support. With this concern, the organisation is also observed to undertake intense research and development initiatives which in turn are likely to assist the organisation in developing effective strategies with the intention to derive customer satisfaction and a larger market share in these regions (Nokia, 2008). Most of the businesses face trouble due to instability in their financial conditions. There will be ups and down no matter which company it is. In a similar way, Nokia had also faced problems in its business in terms of rising competition and in terms of the uncontrollable external risks such as the occurrence of the recent global financial turmoil. With due consideration to these aspects, it can be affirmed that it may happen that the brand shall face significant challenges in its short run performances currently, but in its long run, Nokia shall be able to attain competitive advantages by implementing these strategies as per planning. Brand Specific Case Study In order to attract the customers of Russia, Nokia initiated aggressive and innovative advertising strategies. The sole intention behind such an innovative idea was to generate the awareness of the Russian customers regarding the technology evolutions offered by the brand in the then market. With this strategy, the brand intended to attain a larger market share along with generate better customer response which would in turn support its expected sales revenue (Nokia, 2012d). In the year 2010, the customers of Turkey depicted an immense preference towards smartphones and consequently the mainstream business of Turkey was totally dependent on the mobile technology that was offered by Nokia. The increase in the sales of smartphones enriched the entire mobile business of Nokia in Turkey as well as in the neighbouring CIS countries (Euromonitor International, 2011) (refer to appendix 1). In the similar context, it was witnessed that the customers of Kazakhstan also had a high demand for smart phones. People were made aware before about the entry of the upcoming Nokia products which include Nokia N9, handsets in Kazakhstan through various hoardings, posters and other media options which deliberately attracted a huge population (AOL Inc, 2012). Since the beginning of 1999, Nokia had its Customer Market Operations in Ukraine, especially to render after sales services to its valued customers. The Customer Market Operations presently has an employment of approximately 20 people in the Ukraine market. However, it has been observed that the technology industry in Ukraine is less developed in comparison to other CIS countries, such as Kazakhstan. Due to this reason, Nokia had to witness various difficulties in attaining almost similar gains as it had attained in other CIS or Caucasian markets in the mobile retail industry of Ukraine (Hannula, 2006). With regards to its brand specific strategies, it can be observed that Nokia provided due consideration towards the prevailing economic, cultural as well as social trends in the CIS along with the Caucasian regions. It is in this context that these factors tend to create a strong influence over the industry trends with regards to customer demand alterations, competition as well as technology advancements. Hence, it is quite likely that Nokia’s brand image shall also be depended on these factors by a certain extent. Therefore, Nokia’s brand strategy development with due consideration towards these aspects can be regarded as quite justified and appropriate to reward the company with competitive advantages. Brand Strategy Brand strategies are stated to have a significant role in influencing the achievements of the determined objectives of a particular company by a large extent. It is in these regards that companies should “emphasise and consider both the factors acting within its internal and external business environment in order to develop the brand strategies as effective” (Gelder, 2005). Based on this notion, Nokia can also be identified to introduce its brand strategies with due significance towards its industry trends and market requirements in relation to customer preferences and competition. Nokia prefers a broad range of customers in terms of age, gender as well as income group. That is, Nokia targets its customers from lower income group to higher income group along with the young generation and the middle aged customer segment. With this concern, Nokia aims at reviewing the business of smart phones so that the company can attain the desired competitive advantages in the international market. From a similar perspective, the company also tends to move ahead with aggressive marketing strategies with minimum intervals. For example, after the launching of the products Lumia 610 and Lumia 900 in Russia, the company developed more innovative and customer-centric approach strategies for expanding its market share amid its target markets (Nokia, 2012e). With reference to the above discussed strategies adopted by Nokia in its target markets of Russia and Turkey in the Caucasian region and Ukraine and Kazakhstan in the CIS region, it can be stated that the company renders utmost concern towards the prevailing industry trends and other external factors which are likely to have a strong impact on the success of the brand. For instance, with due regards to the rapidly enhancing technology evolutions in these markets the company has been observed to be highly concentrated towards its innovation strategies to maintain the customers’ attention as favourable for the brand. However, the company is also observed to witness certain challenges in terms of continuously developing and changing market demand owing to the rapid evolution of upgraded and advanced mobile technology in the international context. In this regards, it is worth mentioning that the company should focus on preserving its customer relationships in the long run to yield better returns on its investments. It is in this context that with an enhanced satisfaction level, the perceived brand value amid the customers are also likely to increase, simultaneously increasing the brand loyalty and thus restricting them from switching the brands. The customers will always remain loyal and on a similar way the company will also make serious attempts in order to satisfy their customers to the fullest extent. Along with technology innovations, the company also needs to render quality services to its customers in order to attain higher customer satisfaction. Conclusion Effective brand strategies are considered to be among the most essential aspects which a company should be concerned about while attaining its determined objectives in the international market. In this regard, a company should take into account various factors including the customer preferences, market demand and industry trends. With regards to the case study of Nokia, it has been observed that the company focuses to consider all these aspects with due significance which in turn tends to enhance its competency rewarding it with greater market share and brand loyalty. However, it needs to be mentioned that Nokia should also provide due regards to the aspect of varying culture and other factors including environmental concerns. It is in this context that the company needs to take into consideration its ethical and social liabilities in order to gain sustainable growth prospects in its future performances. Nokia should also keep in mind about the cultural differences that exists at different places throughout the world while marketing its products internationally. The company has its market globally and in order to sustain in the market, Nokia has to streamline its business and create as well as alter its strategies to gain higher customer preferences. References American Chamber of Commerce in Kazakhstan, 2011. Investors’ Voice the Official Magazine of the American Chamber in Kazakhstan. Banking Reform for Kazakhstan: Stability in a Volatile Environment. [Online] Available at: http://www.amcham.kz/getfile/publications/176/Invoice_47_web.pdf [Accessed May 14, 2012]. AVentures Group, 2007. Ukraine’s Mobile Phone and Smart Phone Market. Trends. [Online] Available at: http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CGIQFjAA&url=http%3A%2F%2Fwww.unitrade-group.com%2Fen%2Fsm%2Fsite%2Ffileslibrary%2Fanalytics%2Fmobtel_1_kv_2007_eng_sm.pdf&ei=Rf2wT6a_NqjAiQeo_Y3VCA&usg=AFQjCNEWBMueZoZJel_FdYolSv_MQ0bpUw&sig2=62U4ETmr9OMMJZD6eTvw6g [Accessed May 14, 2012]. AOL Inc, 2012. 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[Online] Available at: http://www.nokia.com/tr-tr/urunler/en-iyi-aksesuarlar/?intc=na-fw-ilc-na-top_accessories-na-apps-tr-tr-1215724 [Accessed May 14, 2012]. a Nokia, 2012. Nokia Connecting People. Home. [Online] Available at: http://kz.nokia.com/home# [Accessed May 14, 2012]. b Nokia, 2012. Popular Accessories. Home. [Online] Available at: http://www.nokia.com/ua-uk/ [Accessed May 14, 2012]. c Nokia, 2012. Nokia Russia Lifts The Mood With ‘Amazing’ Shows Of Public Affection. Russia. [Online] Available at: http://conversations.nokia.com/2012/04/27/nokia-russia-lifts-the-mood-with-amazing-shows-of-public-affection/ [Accessed May 14, 2012]. d Nokia, 2012. Interim Report. Financial and Operating Highlights. [Online] Available at: http://www.results.nokia.com/results/Nokia_results2012Q1e.pdf [Accessed May 14, 2012]. e Panibratov, A., 2010. Turun Kauppakorkeakoulu Turku School of Economics. Russian Multinationals: Entry Strategies and Post-Entry Operations. [Online] Available at: http://www.tse.fi/FI/yksikot/erillislaitokset/pei/Documents/Julkaisut/Panibratov_netti_final2.pdf [Accessed May 14, 2012]. Warman, M., 2012. 4G Mobile Phone Launch ‘Before Christmas’. The Telegraph. [Online] Available at: http://www.telegraph.co.uk/technology/mobile-phones/9140824/4G-mobile-phone-launch-before-Christmas.html [Accessed May 14, 2012]. Appendix 1 Source: (Nokia, 2012e) Read More