Marketing Plan for Nokia Company - Research Proposal Example

? Marketing Plan for Nokia Company (Nokia Lumia 1820 Smartphone) al Affiliation Marketing Plan for Nokia Company (Nokia Lumia 1820 Smartphone) Executive Summary Nokia, a leading telecommunication company intends to introduce a new product in the Indian market. The Nokia Lumia 1820 Smartphone will be targeted at a host of segments including students and adults who need more features than an ordinary phone offers. Nokia’s main competitors in the Indian market include Apple, Samsung, Techno, Sony Ericson, and LG, all of which produce and market mobile phones in the Indian market. Nokia hopes to capitalize on its brand name, low product cost, high quality of the new product, and the features that it presents to beat competition. The company will offer the Nokia Lumia 1820 Smartphone in the Indian market at a price of $200 and will rely on various marketing and distribution channels to reach the customers. The product will be offered for sale through retails shops and supermarkets mainly and will be advertised on television, radio, online, and through billboards. Nokia hopes to sell at least one million units of the product every year and hopes to make achieve at least a turnover of 100 million dollars within the first year of introducing the product in India. In order to achieve this goal, a marketing budget of $39,700 is proposed. Company Summary Nokia is one of the largest telecommunication companies in the world (Lee, 2001). The company engages in the production of mobile devices. In addition, Nokia is engaged in the convergence of communication and internet industries. The company has undergone tremendous growth since its formation several years ago. In fact, Nokia has become a household brand in most countries today. Nokia has about 128,000 employees spread in 128 countries across the globe. Nokia currently operates in more than 150 countries making it one of the companies with the widest global outreach. In 2008, Nokia posted a global annual turnover of €50.7 billion (Mimoun, 2009). In the same year, the company posted an annual operating profit of €5.0 billion. Nokia remains the world’s largest mobile phone manufacturer, a position it has held for several year despite stiff competition. Its products sell under the brand name ‘Nokia.’ The company manufactures mobile devices in all market protocols and segments such as CDMA, GSM, and W-CDMA (Vadlamani, 2009). In addition, its subsidiary, The Nokia Siemens Network, engages in the production of telecommunication network equipment, services, and solutions, taking advantage of its huge share of the mobile phone market. Currently, the company intends to launch Nokia Lumia 1820 Smartphone in the market. However, the performance of this Smartphone requires the development of an effective marketing plan that will ensure that the cell phone is received well in the market. As such, this marketing plan has been developed by taking into account the market situation, customer needs, and competitors in the market, strength, weaknesses, opportunities, and threats in the new market. In addition, the marketing plan has taken into consideration the macro environmental factors that may affect the performance of the product in the target market. Finally, the marketing plan presents a marketing mix that needs to be taken into consideration before launching a product in the target market. Situation Analysis The current market situation in which Nokia operates is very competitive. The industry has many players that compete against each other for the limited customers available. Currently, the players are trying to out-compete each other by introducing new technologies and products in the market. In fact, of late, a month hardly passes without a new player intruding a new plan to lure additional customers. Some of Nokia’s main competitors include Samsung, Apple, Techno, LG, and Sony Erickson according to Pratap (2013). Customer Analysis We intend to targets all segments of the population by providing them with services that satisfy their specific wants and needs. At the same time, we intend to provide different plans according to the needs of a particular customer. The current market contains consumers with different needs and preferences. For instance, the needs of students may be quite different from the needs of business people or adults. As such, we intend to identify the needs of each market segment, and provide customized products that meet the needs of each market segment. Some of the market segments that we intend to focus on with the new Nokia Lumia 1820 Smartphone include teenagers, business people, students, service people, and adults. Some of the features that the Nokia Lumia 1820 Smartphone has and that cater to the needs of each market segment include a fast touch screen and a button keypad option for adults who may not be able comfortable with touch screens. The phone will have other features such as the internet, high mega pixel camera and easy navigation features. Above all, the Nokia Lumia 1820 Smartphone is slim and very attractive (Pratap, 2013). Competitor Analysis The mobile phone industry is one of the most competitive markets today. The industry has many players most of which are well established. In fact, the industry is one of the most competitive today in terms of technology. The main competitors of Nokia in this industry include Samsung, Apple, Techno, Sony Ericson, and LG. To remain competitive in this industry, the main players often try to be as innovative as possible. Therefore, in order for Nokia to compete favorably in this industry, it must focus on innovation research and development. However, the company is satisfied that the Nokia Lumia 1820 Smartphone is designed based on the latest technology and the needs of consumers, which will compete favorably against other Smartphone of the competitors, notes Pratap (2013). SWOT Analysis SWOT analysis stands for strengths, weaknesses, opportunities, and threats. A SWOT analysis for Nokia Company follows. Strengths Nokia being a well-established brand across the global has a number of strength that has made it a brand of choice for many consumers in the world. Firstly, Nokia commands a huge market share in the mobile industry. Secondly, the company has one of the best research, design, and engineering team. This has enabled the company to be innovative and produce high quality products that sell well in the market. In fact, one of the major reasons why Nokia phones sells well in the market is because of the quality of the phones. At the same time, the company enjoys a global relationship with all major mobile phone firms globally. For instance, the recent cooperation between Nokia and software-giant Microsoft has been seen as a plus to Nokia in its effort to win additional market share (Fox, 2013). In addition, Nokia ranks the fifth most valuable brand in the world. Today, almost every household in the U.S. has a Nokia brand. Further Nokia has a strong management team that has managed to come through several crises unhurt. Weakness Like any other company in the world, Nokia also has certain weaknesses that require improvement. Firstly, Nokia has lost a significant ground in the development of Smartphone to companies such as Samsung and Apple (Reehman, 2013). Evidence has shown that when business loses their customer basis, they end up lagging behind in technological race or lose their reliability as a firm, as well. Secondly, Nokia is likely to lag behind due to its bureaucratic management style (Yarow, 2013). Thirdly, Nokia has lost its credibility as a good and healthy employee, as demonstrated during its retrenchment effort. For instance, Nokia was hard hit when Jo Harlow lay off hundreds of its engineers in the U.K. as part of its strategy to discontinue the Symbian operating system. Opportunities The mobile phone and network market is continually growing all over the world, especially in developing nations such as India. Developing countries offers great opportunity for Nokia expansion and growth. In addition, major phone companies are ready to pay top dollar just to be allowed to offer customers the snazzy phones under the Nokia brand. Nokia can also consider venturing in the internet industry, which is also growing very fast. This will enable it increase its customer base, sale and profits. Further, most African countries continue to experience strong economic growth. As such, Africa is also a potential market that Nokia needs to consider for expansion and growth. Threats Nokia is one of the companies that have been put under the list of companies that might not survive in the near future unless something drastic is done. Firstly, Nokia is threatened by poor management, which has destroyed its global brand. Reehman (2013) noted that the management mistakes made by Stephen Elop were so severe that it threatened the survival of Nokia. Secondly, the survival of Nokia is threatened by stiff competition mounted by its main competitors such as Samsung, Apple, Techno, Sony Ericson, and LG. In addition, its European market for cell phones is already saturated. Macro Environmental Analysis The macro economic analysis commonly known as PEST analysis includes political, economical, sociological, technological, environmental, and legal factors that affect Nokia. Political Factors The political factors that affect Nokia operation include legal issues and government regulation. These factors define the formal and informal rules that govern how a firm operates. These include tax policy, political stability of a country, trade restrictions, employment laws, and environmental regulation (Applegate and Johnsen, 2007). The political situation in India, where the Nokia intends to venture favors business to a great extent. Research has shown that the Indian market is liberal and has little barriers to entry and trade restrictions (GRIN Verlag, 2012). In addition, India is stable politically, making the country good for doing business. Therefore, the political situation of India will be suitable for Nokia as a place of doing business. Economic Factors Economic factors also affect the success of a company in a given market, thus should be taken into consideration. This is attributable to the fact that economic factor affect consumer’s purchasing power and the company’s cost of capital (Applegate and Johnsen, 2007). Some of the economic factors that needs to be taken into consideration in a given country or market include economic growth of a country, inflation rate, employment rate and exchange rates. India, for example, is one of the fastest growing economies in the world today. A majority of people in India are also employed, thus have a greater purchasing power. This will favor Nokia’s growth prospects in these countries due to the high purchasing power of the population. Social Factors The socio-cultural environment also affects greatly the performance of an organization in a given market. Sociological factors include the cultural and demographic aspects of the external environment. The socio-cultural factors affect the needs of customers and the size of a market (Applegate and Johnsen, 2007). Some of the social factors that need to be taken into consideration in a given market include age distribution, rate of population growth, career attitudes, and safety issues. India is the most populated countries in the world today. As the population of the India continues to grow, the demand for phones will increase. As such, Nokia will be able to capitalize on the growing population of India to get new customers for its Nokia Lumia 1820 Smartphone. In addition, India is also among the most secure countries for doing business. High security in India will also offer Nokia a conducive business environment for doing business. Technological Factors Technological factors are also another macro environmental factors that affect the operation of a company. Technological factors can reduce or enhance the operation of a company, lower barrier to entry and impact on the outsourcing decisions of a company (Applegate and Johnsen, 2007). The Indian telecommunication industry is much developed technologically. Research indicates that India have strong mobile phone network connectivity that promotes mobile phone communication. The network is very strong even in the remotest villages in India. This is very advantageous to Nokia since the state of technology will enhance the demand for its Nokia Lumia 1820 Smartphone, which it intends to introduce in this market. Market Segmentation Demographic The Nokia Lumia 1820 Smartphone will target mainly the teenagers, students, and businesses people. In this regard, the Nokia Lumia 1820 Smartphone has features such as fast internet connectivity, touch screen, mega pixel camera, and other exciting functionalities, which we believe will attract huge demand from these market segments. Geographic The Nokia Lumia 1820 Smartphone will be targeted at the Indian consumers, especially, which are not only the most populated country, but also among the fastest growing economy. The products will mainly be sold in major cities such as New Delhi and Mumbai. From these cities, Nokia will open retail outlets in other cities, including villages in India. The Nokia Lumia 1820 Smartphone will target this segment by providing them with a mobile phone with the latest features and functionalities that they can relate. Psychographic The Nokia Lumia 1820 Smartphone targets mainly the middle income others and celebrities. In this regard, we have introduced a variety of features and functionality in the phone that will suit the celebrities. The phone is not only smart and slim, but also has functionalities that suits people of celebrity status. In addition, the phone is relatively expensive, thus will target mainly the middle-income earners. Part 2 Marketing mix Product The product is one of the most fundamental elements of the marketing mix that must be taken into consideration when making a marketing plan (Kumar, 2011). In the case of Nokia, the company intends to provide Nokia Lumia 1820 Smartphone. Nokia will ensure that the Sims developed meet the customer needs in terms of quality. Nokia Lumia 1820 Smartphone is a very smart phone and is built on the latest technology. The phone has a metal unibody design. This body is not only attractive, but also durable and protects the phone in case it falls. In addition, the phone has a lytro-style camera plus a fast internet connection (Pratap, 2013). Nokia believes that these qualities plus other features of the phone satisfy the need of customers in terms of quality and functionality. In addition, the phone is sold with a one-year warranty. Price Price is the second element of the marketing mix that must be taken into consideration when making a marketing plan. Price in this case is the amount charged on a given product in the market. Customers are usually very sensitive to prices of a product (Aaker, 2004). Therefore, it is very crucial for managers to take into consideration the prices charged by competitors for similar products on offer in the market. As a result, before fixing the prices for the Sims Nokia will be introducing in the market, the prices of the competitors in the market will first be taken into consideration. Based on the analysis of the market and competitor prices, the Nokia Lumia 1820 Smartphone will sell for $200. This price is not only cheaper compared to the prices charged by Nokia’s main competitors such as Apple and Samsung, but will also attracts a small profit margin. Distribution Getting the product to customers is very important. In fact, the main purpose of producing a product is to sell it to customers. As such, the products must be distributed to the target customer at the right place and time (Tehrani, 2008). Once products have been produced, mangers must establish the distribution channels to use to ensure that the products reach the targeted customers at the right place and time. This usually calls for making decisions regarding logistics and methods of transport to adopt to ensure that customers get the products safely. According to Nokia’s marketing plan, the Nokia Lumia 1820 Smartphone will be sold to customers at Nokia retail centers (Davis, 2013). However, Nokia will also distribute its products to customers using vendors, suppliers, supermarkets, and retailers who will ensure that products are made available to customers near their places of residence. In some instances, Nokia will build tents outside offices, colleges, schools and in remote rural areas to distribute the products. This will ensure that the products are distributed to the closest points where Nokia customers can get them easily. Promotion Promotion plays a vital role as far as customer satisfaction is concerned. Promotion in this case implies creating awareness of the existence of the product to customers. It also involves effectively and efficiently communication marketing strategy decisions. Promotion is important in today’s business world because it influences the perception of the targeted consumer, thereby facilitating exchange between the consumer and the marketer (Aaker, 2004). Nokia will use a variety of promotional strategies to market its innovative product. Among the promotional strategies that Nokia will use in promoting its products, include direct selling by sales representatives, TV advertising, bill boards, social media, road shows, and radio. Projections Nokia’s short and long-term projections are to be forecasted in accordance with the marketing plan. However, the company will focus much on the implementation of the marketing plan. Nokia projects that with effective implementation of the plan, the company will be able to control at least 25% of the market share within the first one year of the product’s release into the Indian market. However, Nokia intends to control at least 40% of the total market share in the long term by selling at least one million pieces per year. Projected Costs | Categorized Budget Information Budget Category Amount (€) Advertising 1,000 Advertising premium and specialties 800 Merchandising 1,500 Public Relations 900 Analyst Relations 1,000 Event Support-Product Level 400 Endorsements 200 Sales Incentives 100 Sales Support 700 Customer Service Support 600 Creative Services 500 Copywriting 300 Fulfillment 200 Web Site Design 600 Web Site Maintenance 500 Corporate Program Support 5,000 Product Design Services 15,000 Consulting Services 1,000 Customer Visits 400 Other Marketing Services and Expenditures 4,000 Design and Packaging Services 2,000 Branding Support 3,000 TOTAL FUNDING REQUIRED 39,700 Conclusion Nokia operates in a very competitive market. As such, the best way to compete favorably is to develop a marketing plan that ensures that the company’s products sell well in the market. The marketing plan for Nokia’s Lumia 1820 Smartphone is very effective. This is because it has taken into consideration the market situation, customer needs, the risks and opportunities in delivering a product that satisfy the demand of its potential customers. As such, the effective implementation of this marketing plan will see the Smartphone attract huge demand in its target market segments. References Aaker, D. A. (2004). Strategic market management. Hoboken, NJ: John Wiley and Sons. Applegate, ? E., & Johnsen, A. (2007). Cases in advertising and marketing management: Real situations for tomorrow's managers. Oxford, UK: Rowman & Littlefield. Davis, B. (2013). Referral marketing: How Nokia sends brand traffic to retail partners. Retrieved from http://econsultancy.com/ke/blog/63582-referral-marketing-how-nokia-sends-brand-traffic-to-retail-partners Fox, Z. (2013). Nokia has lost 20% of Smartphone market since Microsoft partnership. Retrieved from http://mashable.com/2013/09/03/nokia-microsoft-partnership/ GRIN Verlag (2012). Diversification strategies of Nokia. Norderstedt, Germany: GRIN Verlag. Kumar, N. (2011). Nokia: Channels of distributions. Norderstedt, Germany: GRIN Verlag. Lee, S. (2001). Nokia: Strategic transformation and growth. London: KDI School of Public Policy and Management. Mimoun, K. (2009). A Strategic exploration of Nokia's success. Norderstedt, Germany: GRIN Verlag. Pratap, K. (2013). Nokia Lumia 1820 smartphone, Lumia 2020 tablet due at MWC 2014. Retrieved from http://gadgets.ndtv.com/mobiles/news/nokia-lumia-1820-smartphone-lumia-2020-tablet-due-at-mwc-2014-445066. Reehman, F. (2013). Apple stealing Nokia's marketing - National Geographic. Retrieved from http://forums.wpcentral.com/nokia-lumia-1020/244666-apple-stealing-nokias-marketing-national-geographic.html Tehrani, N. (2008). Contemporary marketing mix for the digital era. Bloomington, Indiana: AuthorHouse. Yarow, J. (2013). Windows phone market share since Microsoft partnered with Nokia. Retrieved from http://www.businessinsider.com/windows-phone-market-share-since-microsoft-partnered-with-nokia-2013-9. Appendix Fig. 1: Nokia’s Lumia 1820 Smartphone Fig. 2 Market shares of different mobile phone marketers in the Indian market Read More