Successful Nokia Product Launch - Essay Example

NOKIA PRODUCT LAUNCH Table of Contents Executive summary This present paper is report that is designed for use by the senior management team of Nokia for the launch of Nokia Lumia 920 and Nokia Lumia 820 in South Africa. The report will demonstrate on how the event organising committee can effectively plan and organise the communication activities for the launch event. The report will first begin with identifying appropriate objectives for the launch event of the new Nokia phones. Secondly, the report will analyse the key stages of the planning process for the launch event, and highlight on the importance of stakeholder engagement and communication for maximising achievement of successful outcomes. Lastly, the report will evaluate the importance of post-event analysis and review for future planning of product launch events. 1.0 Introduction The technological industry and in particular the mobile phone industry is very competitive and it is characterised with continuous innovation and product development, therefore to remain competitive within the industry, a company has to engage in continuous research and development in order to come-up with products that meet customers’ needs and surpass their expectations (Lattanzi et al. 2006). This present report is about Nokia, which is a Finnish Multinational Communications and Information Technology Company, which in the recent past has experienced a decline of its’ market share because of stiff competition within the market especially from rival companies such as Apple and Samsung (Saylor, 2012). As a response to the current competition at the market, Nokia manufactured the Nokia Lumia 920 and Nokia Lumia 820, which have distinctive features that other Smart phones do not have. The two new Nokia products have launched in other countries but they are yet to launch officially in South Africa. This report therefore will document on the planning and reviewing of the marketing event that will be held in South Africa. The report will state on how Nokia will use the launch event to create awareness about the two new products and even try to generate huge sales for the two new products during their launch. 2.0 Objectives for the launch event According to the writings by Steinbock (2010), in the past Nokia has taken a back seat in the Smartphone industry mainly due to the intensive competition that comes from other giant such as Apple and Samsung. The company is betting or pegging high hopes on the new products that include the Nokia Lumia 920 and Nokia Lumia 820 to revamp its position as the market leader in the Smartphone industry. Thou, the two new products were officially released on October 29 this year in both France and the United Kingdom markets; they are set for launch in South Africa. As part of the marketing campaign process the product launch event has significant objectives that will set the ‘tone’ for the two new products in the South African market. The success of the product launch event will determine the pace at which the two new products will sell both in the short term and in the long term. Moreover, the marketing event will be successful if the right target audiences attend, such as tech savvy individuals, mobile phone retailers, marketers in the telecommunication industry, and key influential figures or celebrities in South Africa. Consequently, there has to be clear objectives for the product launch even. a) To create consumer awareness Homburg et al. (2009) stated that any successful marketing event should be able to convey appropriate message to the target audience on the new product or service. Therefore, the attendees of the launch event should at the end of the event become aware of the newly released Nokia Lumia 920 and Nokia Lumia 820. Laermer and Simmons (2007) further stated that in order to achieve any sale more so in the first few days after a product launch the target audience has to be aware of the availability of the newly released products. b) To inform the target audience of the distinct capabilities or competitive value of the new product In reference to the writings by Abell (1980), product differentiation is among the key marketing strategic options; because it distinguishes a specific product from other related products in the market by emphasizing on the uniqueness as well as the competitive advantage of the product. Therefore, during the product launch, Nokia should emphasize to the attendees about the distinctive features of both Nokia Lumia 920 and Nokia Lumia 820, which are not available in other phones and thereby, the reason why they should purchase either of the two new products. As part of product differentiation Nokia should disclose the product price and then justify why the selling price was set at that particular amount. c) To inform the audience on how to use the new product as well as their applications According to Solberg (2000) consumers will shy away from buying products that they do not have the knowledge on how to use them, and hence product launch events should demonstrate to the attendees on how the new products operates and how to use the applications (apps) within the new products. The attendees of the product launch event will also share the information with others not in attendance. d) To indirectly recruit a sales team that will market the new products through word of mouth Davidson and Haspeslagh (1982) stated that among the cheapest tools and most effective ways of marketing is through the word of mouth whereby a loyal customer advocates or markets a particular product with no expectation of remuneration for his or her efforts and without any direct link with the concerned company. During the product launch event, the organisers should encourage all attendees to inform their families, friends, and colleagues about the new product that they just witnessed and even encourage them to purchase the newly released Nokia products. It is of essence to note that the success of the launch event will depend on the level of engagement and communication between the Nokia head office, the South African branch/ office, and key Smartphone retailers within the South African market. The objectives of the launch event will be achieved if there is proper engagement and communication between the three stakeholders (De Pelsmacker and Geuens, 1999). 2.1 Analysis of key stages of the planning process for the product launch event De Pelsmacker et al. (2004) stated that the marketing planning process has five key stages that include establishment of objectives and strategies on how the objectives can be attained. According to Laermer and Simmons (2007) under the planning process, the first stage is the determination of business objectives. Abell (1980) states that in this stage the planners will consider the overall business objectives and then re-align or devise the marketing objectives to conform to the overall business objectives. Therefore, the objectives of the launch event previously mentioned reflect on the overall objectives of Nokia Company, which is to offer customers with superior quality smart phones. It is important for the planners of the launch event to follow this stage in order to ensure that the event achieves the intended result, which is to make the sale of Nokia Lumia 820 and Nokia Lumia 920 a major success in South Africa. The second stage of the planning process is the assessment of the resources within the organisations. These resources include finance, human resource, technological capabilities, marketing capabilities, and production capabilities (Kim and Mauborgne, 2005). Therefore, product launch event will be a success because Nokia will utilise its massive financial resources, skilled South African staff, its technological capabilities, and marketing capabilities during the launch. This stage is important whilst planning for the event because the planners can know the strengths and weaknesses of the organisation and the use the strengths to achieve the objectives of the launch event. According to Neumeier (2006), the third stage is the risk assessment and identification of opportunities for marketing. Under this stage, planners of the event should be able to assess the risk of launching the two new phones, which may involve ‘underworld dealers’ making counterfeit or fake replica of the two new phones after their release. However, because South Africa is not technologically oriented as compared to other countries such as China, the likelihood of the risk occurring is minimal. Secondly, in this stage the planner should identify available opportunities that they can utilise during the market launch. For example, if there happens to be seminar on latest technological trends, which is on going in South Africa, the planners can schedule their event to coincide with the schedule of the seminar and they may even carry out the launch at the same venue as the seminar. The fourth strategy under the marketing planning process is the development of the marketing strategies. After setting, the objectives of the product launch event, establishing organisational strengths to utilise, and the opportunities to utilise, the planners of the product launch will henceforth set marketing strategies that they will use at the launch such as brochures, fliers, posters, or printed t-shirts and caps for the attendees. Parente (2005) stated that the strategies should be easily adaptable, flexible, and cost-effective. It is of essence to note that marketing strategies adopted in this stage will also include the strategies that will promote the launch event itself. According to the study by Baker (2008), the fifth and last stage of the marketing planning process is the implementation and close supervision of the marketing plan. Under this stage, the planners of the launch event will roll out the actual event alongside all the strategies adopted and then monitor how attendees are responding or their feedback pertaining to the newly released Nokia Lumia 920 and Nokia Lumia 820. The event planners will know if the strategies are successful if the attendees show a keen interest on the phones and they make purchases at the event. If the strategies prove to be futile, then the event organisers will try to engage the audience through other captivating means. 2.2 Post-event analysis and review for future events Laermer and Simmons (2007) noted that in order to attain marketing success in the long term, marketers need to always analysis the impact of their past strategies and identify areas of weakness, and then in the future focus on the areas of weakness or where the past event failed and then make them the strengths of the next marketing event. In this regard, the event planners in South Africa will have to analyse the event after the launch of the two phones and then enlist areas where they feel they did better and areas where their performance was wanting. This information will enable them to plan future launch events that are more successful and attain all the set objectives. 3.0 Conclusion As it was previously mentioned, Nokia is trying to recapture its former position as the leader in the Smart phone industry after facing stiff competition from other Smart phone manufacturers such as Apple and Samsung (Merriden, 2001). Therefore, it is necessary for Nokia to adopt aggressive marketing strategies to re-position itself within the market. This present report is beneficial because it highlights on the importance of a product launch event of which according to Homburg et al. (2009) sets the tone for the performance of the new product within the market. Therefore, if Nokia Lumia 920 and Nokia Lumia 820 are going to attract huge sales for the company then it is necessary to ensure that the launch event creates a big awareness and is able to bring in more impulse purchases from the attendees. Conclusively, De Pelsmacker and Geuens (1999) stated that organising an effective and successful product launch would create euphoria within the market such that everyone persons would feel obliged to purchase the new products. From the above report, it is evident that effective marketing planning process for the launch event is necessary if Nokia intends to achieve success within the South African market. Thus, organisers have to follow all the five steps whilst planning for the product launch and they should have a back-up plan in case the launch event would not seem to be attaining the intended result whilst it is still going on. 4.0 Recommendation In order to achieve major success during the product launch event and subsequently lower the cost of advertising and promotions after the launch event, it is recommended that Nokia should create much hype and awareness about the intended product launch event. By aggressively promoting the product launch event itself, it will create suspense amongst the target audience and they will all look forward to attending the event and having an experience with the new Nokia Phones. References Abell, D. (1980).Defining the Business: The Starting Point of Strategic Planning. Prentice Hall, New Jersey, U.S. Baker, M. (2008). The Strategic Marketing Plan Audit. Cambridge Strategy Publications. Cambridge De Pelsmacker P. Geuens M. and Van Den Bergh J. (2004). Marketing communications. (2nd edition). Pearson Education Limited. New Jersey, U.S. De Pelsmacker P. and Geuens M. (1999). "The advertising effectiveness of different levels of intensity of humour and warmth and the moderating role of top of mind awareness and degree of product use." Journal of Marketing Communications. Forthcoming. Davidson, W. and Haspeslagh, P. (1982). ‘‘Shaping a Global Product Organization,’’ Harvard Business Review, Boston, U.S. Homburg, C. Sabine, K. and Harley, K. 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