Marketing Strategy for Nokia Mobile - Research Paper Example

Introduction. Nokia’s endeavours to empower and enable everyone share and make the most of their life by offering the most innovative irresistible personal experiences.Nokia corporation acknowledges the fact that the PC, mobile and internet convergence are a reality,(Nokia Annual Report 2010,p.21) . In addition, consumers demand for complete solutions not just electronic devices, and innovative technology to be invisible. The new unit of value creation in this converged industry are the client relationships, and in the near future the industry will be skewed toward mobile financial services and mobile banking. Nokia’s vision for the future is to connect people, “Connecting People”, to what is material – whatever that means for each consumer of its product-providing them with the power to make the most of every opportunity, every moment, everywhere, any time, (Nokia Annual Report 2010, p.23). The connection of “we’ is fundamentally most powerful than just the unit client or individual in Nokia’s perspective. Through this point of view, Nokia has made itself essential in making the world a better place for everyone by being the leading provider of mobile solutions. Kotler, Rackham and Krishnaswamy, (2006, p.6), acknowledge that marketing is more apt in driving a company’s strategy. Nokia’s solutions and marketing strategy leverages as some of their supreme assets; a portfolio of exceptional devices, with unparalleled size and geographical coverage, (Nokia Annual Report 2010, p.33). These are coupled with tasteful consumer services, integrated though an intuitive and seamless client’s familiarity.Kotler, Rackham and Krishnaswamy, (2006,p.7) notes that these are essential for the initial market sensing for consumer services.Nokia has differentiated their unique solutions offerings founded on their in-depth clients understanding, ( Kotler, Rackham and Krishnaswamy, 2006) To continue being amongst the leading mobile service providers, Nokia needs to invest heavily in the future of mobile banking. Its international presence and vast experience coupled with its elaborate local network coverage in the respective countries endows it with a superior position in the production, marketing and selling of this new product. Mobil Banking. Internet has revolutionized knowledge accessibility and the nature in which financial institutions conduct business. M-banking has also emerged over the last few years, creating the wireless and the mobile market which is one of the fastest growing markets worldwide and its still evolving. It has been noted that finance “…is one of the most information – intensive service…” at the forefront of using ICT (United Nation ICT Report, 2007-2008, p32). By the end o 2010 it’s estimated that 35% of the online banking consumers will also be utilizing the mobile banking services. (United Nation ICT Report, 2007-2008). This presents vast present and future opportunities for mobile and financial institutions that are willing and able to offer value added services to their clientele. Mobile phones high penetration, ease accessibility to masses, and their capability to provide services anywhere, anytime and safely has created a whole new effective and efficient market, (United Nation ICT Report, 2007-2008).Banks worldwide are increasingly embarrassing M-banking and trying to develop innovative services in their portfolios. Nokia’s Mobile - Real Product. As a marketing consultant of Nokia Corporation we have developed, M-Real; which stands for Mobile – Real. Simply, mobile Brazil money or finance. It’s the new Nokia service allowing the Brazilians to receive and transfer money using a mobile phone, fast, affordably and safe. It’s available to all Nokia users even if they do not have a bank account.M-Real services include; sending (transferring) money, depositing cash to your bank account-any of the bank accounts in Brazil, paying bills, withdrawing money, buying Nokia Airtime and managing your M-Real account. M-Real agents provide the money transactions services to the M-Real clients. They include the banks and Micro-Finance institutions in Brazil; Nokia authorized dealers, operating one or more outlets within Brazil, other retailers with an established distribution network such as supermarkets and petrol stations. Brazil Market. Brazil is the world’s tenth-largest economy made of 180million inhabitants, and enjoys a steady economic growth of 2-3% a year. Its abundant natural resources, skilled and well trained workforce, and the low production costs attract foreign direct investment. Brazil is a Federal Republic, made of the Federal District, twenty six states and over 5000 municipalities. Brasilia is the Federal Capital, located in the Federal District. Brazil has an area of 8.5 million km2 and it shares their borders with almost all the counties in Southern America with exception of Chile and Ecuador. The country is divided into five main region which include; the North, which is the largest occupying 45% of the national terrain but has only 7% of the population. Southeast occupies 11% of the national territory and accommodates 43% of the national population. The South is the relative small region occupying 7% of the terrain and accommodating 15% of the total population. The other two regions occupy approximately 18% of Brazil, with the Northeast having 29% and Central –West having 6% respectively. The factors that make Brazil most ideal market for the Nokia’s M-Real include; Nokia’s market share in Brazil, the ability to build an elaborate agent network, the geography or demography of Brazil, the general economy performance, the existing banking infrastructure, limited competitors to the new product, pricing, choice of the technical platform, the legal identity system, and most importantly the marketing strategy that we will adopt. Marketing variables Statistics. There is a very wide range of services to be accessed from mobile and internet banking which includes; investment funds, transfers and bill payments. Services offered by any great retail bank. Brazil is the only country in Latin America with the high penetration of internet banking services among the adults population; approximately 28%.Globally, very few countries offer such a wide range of internet banking service. Currently the total of internet banking accounts is 32.5 million, from 8.3 million in 2000, (Beck, Demirguc-Kunta et al.2007).Initially the internet and mobile banking were restricted to only the existing account holders of a physical bank - this requirement had ensured that the banks do not use this delicate channel to open new current, fixed or saving accounts for their naïve clients. This was a security measure by the central bank. This regulation was enforced by directed the retail banks not to open bank accounts without the physical presences of the account holder or their agents at a bank branch or a retail agent. In spite of, this ceiling the total number of physical bank accounts in Brazil has doubled two fold between the 2000 and 2008, which is from 63.7 million to 125.7 million. In remote areas of Brazil, where the (International Monetary Fund, 2009, p10) focus group is low income segments, the banking activities are provided by the use of agents, locally know as bank-correspondents. On average there are about 118 000 correspondent banks throughout the country whose mandate is to deliver banking and financial services to the people on behalf of the fully licensed banks and financial institutions. Since the 1970s, correspondent banking has been in use in Brazil. Its relevance has increased significantly every since, especially after in 1999, fundamental regulatory changes broadened the range of services and products that could be provided by the agents and removed most of the previous restriction with regard to agent business and location. Currently, correspondent banking represent about 62% of the total of the location or points of service of the financial system, (Beck, Demirguc-Kunta et al.2007). Marketing Objectives Increase or maximize the market share and awareness for M-Real product to more than 50% of the Brazilian Population. The 50% awareness is both in the rural and urban areas of Brazil. Improve customer’s value and satisfaction. Market and create a minimum of 20 000 agents’ position or locations to provide an effective and efficient network for M-Real agents, who will be enough to make the M-Real easily accessible. Boost the value of Nokia brand and image and company’s ability to communicate accurately about our Mobil-Real product by targeting the audience thorough focused and consistent marketing messages. To increase the Nokia brand recognition form the current 60% to 70% and above. Balancing price stability and the maximization of profitability. Ensuring the marketing target boost the sales target of the company. This is to make sure that sales and marketing functions do not simply co-exist, when they could work together to create value for the company, customers and all the other shareholders. M-Real Market Focus or Orientation. The M-Real service marketing strategy foundation is customer and competitors focus. These objectives will be achieved by the adoption of the best fit marketing stategy.That is an integrated set of marketing choices; choices that blend both the traditional Nokia mobile company products and the new service – the Mobile-Real service, with regard to how we will create and capture value, over the short and long-term. These choices involve the ensuring internal consistency, external consistency and dynamic consistency. M-Real Decision making Domain. The decision making domain for the M-Real financial service will include; Mobil – Real market selection, its differentiation or positioning, the apt timing for entering the market, the cheapest price for M- Real comparative to other financial services market providers, the strategic location for the agents to serve both the traditional Nokia clients and the new M-Real clients, and finally the functional offering of the M-Real product. The market segment that would be served by the M-Real service includes, first, the upper market of the business community; consumers, who want to save time, cut down the banking charges and most importantly transact fast, easy and safe. The second market target is the rural and urban household markets, who are constantly transacting to either send money or credit to the family back in the rural home’s or vice versa. The third market is the in between market among the household,businesses,families and friends from either rural to rural, urban to urban, businesses to household ,households to businesses and in between. The functions of these consumer markets to be supported includes; the strategic decision by the M- Real marketing team, M – Real service dynamic adjustment to the competition-which include the corresponding financial infrastructures available in Brazil and the new unique organization structures of the respective market’s. The resources allocation to marketing; the business community will receive 40% of the marketing allocation, the urban market would be 30% and the rural markets would also receive 30% allocation of the whole marketing budget respectively. The allocation is based on the nature of each market. The ‘businessmen’ market receivers a relatively higher allocation due to the nature of its size and the cost of advertisement is relative more expensive than the other two markets. It’s also not too high because the of various marketing modes available that are accessible to the business society that are not available to the general public. For example, statistics show that or 35% of the Brazil population read the newspapers – 98% of the 35% are all business men and women. A good number of these populations are also able to access the other modern media facilities and technology like, the face book, television, modern telephones, the internet, amongst others. The action setting for the M-Real service will be such that the agents will be enough, well trained and easily accessible than the banking facilities are. These include having agents’ shops, near to all house holds and business centres to achieve it objective of having it easier to transfer cash than by the tradition use the other available financial intermediaries. M-Real relation with the government is to ensure use age of the most credible technology that is 100% effective and efficient to avoid any hitch in the normal transaction of business. In addition, it obligation is the key public is to maximize on the provision of the highest quality of products to the public and payment of the necessary tax obligation. Marketing strategy has been postulated as the product of marketing offerings, marketing relationships, resource allocation and marketing timing (Sudarshan D, 1995).He notes that relationships forms the fundamental component of marketing strategy. Each relation is defined by the nature of the partner public; that is the consumers’ channels, and the contact with it – the type of relation. The M-Real financial serviced will be investing heavily on the direct-social contact that would develop between the Nokia corporation and the Mobile – Real consumers. This kind of direct-social contact or what is normally known as ‘service encounter’ is very important part of service delivery that is mainly called ‘the moment of truth’, (Johns, 1999).M-Real strategic marketing will in a big measure be influenced by the “Moments of Truth”. By adapting the relationship marketing approach, Nokia Corporation will turn the “Moments of Truth” in its favour with regard to the M-Real financial transfer service this is because the customers are continuously attended to and best satisfied in the relation marketing. Relationship marketing is the best for profitability of M- Real service. The proceeds on the relationship design (Gummersson, 1999) suggest that good relationships lead to better quality of products, and better customer’s satisfaction. Good quality for M-Real would arise from internal relationships, the fostering of the employees’ relationship’s.M-real will endeavour to satisfy the consumers needs and wants as they arise, by understanding them better and serving them better, (Gummersson, 1999). This is so as to ensure that our good quality and consumers satisfaction leads to consumers’ retention, growth and consequent improved profitability. This is in line with the objective of competitive marketing of improving the long term financial performance.M-real would capitalize on relationships marketing to work towards improving profitability. The marketing mix would be formulated based on the competitive marketing strategy which involves recognizing the relationships between the components of marketing mix; that is the price, placement, positioning and promotion of M-Real. A representation (Carpenter, 1987) has been designed of the relationship between promotion expenditures, prices, product quality and assesses the impact of financial industry structure on the formulation of the M-Real marketing mix. Relationship marketing for the M-Real agents and the end consumers serves as the moderator for the sustenance of positional advantages, influences positively the impact of competition and market conditions on the formation of the marketing mix for M- Real. M-Real competitive advantage would be realized based on three factors; Nokia corporation marketing strategy, implementation of this strategy and the industry context (Porter’s model), (Johns, 1999). The nature of implementation of the M-Real is all about stickiness. In a market of 1000 bank branches, we have launched over 20 000 agents. The highest cost is on the reliable technology with 100% integrity. The technology is the basis of M – Real product. The critical success component to get to critical mass is the placement of a dealer network across the country that is ubiquitous. This is because once clients start signing up, when they use the system, the marketing effect becomes viral. The initial marketing cost is enough as people start telling one another.The cost of agency is catered for by the business men. This leaves us with the initial cost of marketing with is about $120,000 and the technological cost inclusive of maintenance - $500 000. 15% net returns of M-Real banking are expected within the same year. Mobile banking is the future. Mobile – Real is Nokia’s future.Nokia connecting and financing people. Read More