Marketing Strategies Deployed by SGM in Selling Nokia Products in East Timor - Case Study Example

Marketing Customer Inserts Name Customer Inserts Tutor’s Name 16th October, 2014 Introduction Nokia is a huge player in the telecommunications industry which is dominated by the innovation and competition among companies in this dynamic industry. The company has successfully produced revolutionary phones for different global markets. One such region is East Timor, a country located in South East Asia. This paper will look into the marketing strategies deployed by SGM in selling Nokia products in East Timor. The major focus of the analysis will be on situational analysis, Objectives, message and media strategies. Situational Analysis SGM is a company that has been in operation in East Timor for a period of over 15 years in the telecommunications sector. The company has been a leader in the sale of mobile handsets and accessories especially the Nokia brand which it has been a major supplier. The company has been operating in a highly competitive market which has been liberalized leading to increased competition. In the inception of GSM networks in East Timor in the year 2002, several companies established businesses to provide cell phones to support services offered by Timor Telecom (TT) which was the government owned entity in partnership with Portugal Telecom (Radha 2007). The company has been in operation since the year 2002 when it was issued with a license to operate mobile phones services in the country. SGM limited operations in the past were in the mass electronics business when the company sold other items such as radios and television sets (Pan 2013, pp. 35). However, with the inception of the telecommunications in the region, the company partnered with Nokia in selling mobile phone sets to its consumers. Currently, East Timor is comprised of three players in the telecommunications industry with Timor Telecom controlling 60% of the market followed by the Telin and Viettel which control the remaining 40% of the market. Several factors affect the handset industry in East Timor as outlined; Customer Base: Eat Timor is a developing nation and therefore, most of its citizens are low income earners. As a result, several hand set companies in the region sell low end mobile devices which are popular. However, some citizens are now purchasing high end devices at increasing rate due to the improved economic conditions of the country (McNamara 2011). As a result, mobile devices from companies such as Nokia are very affordable for the East Timor market (Terplan 2011). Competition: The liberalization of the telecommunications industry in East Timor lead to the emergence of several mobile phone vendors who developed partnerships with several multinationals such as Samsung, Ericson, Motorola & Blackberry (Barker 2012). As a result, competition for consumers developed and became heated in the process of procuring for increased sales (Park 2007). Competition has also increased due to infiltration of cheap mobile handsets from China. Price: The price of a mobile handset is one of the major determining factors in the selection of the right type of mobile phone for use for the East Timor market (Earnshaw 2005). Brand: In the mobile phone handset industry, the company brand determines a lot in terms of attracting customers to such a company. Popular brands in East Timor include Nokia, Samsung, Techno and LG (Dhar 2008). Objectives SGM has outlined several objectives and functions that should be implemented to ensure that the company maintains a market leadership in the region. Therefore, the company has the following objectives for growth; a) Grow its revenues for the next 5 years at a percentage level of around 8% per annum. b) Increase product offering c) Partner with small retailers in growing sales d) Develop a comprehensive customer support centre for Nokia handsets e) Double the number of retail outlets of the company within a period of 5 years f) Partner with one of the major telecommunications company in promoting sell of Nokia handsets. This growth target will be achieved through the implementation of different strategies as outlined; Advertising: The most appropriate method for attracting people to listed products for the company is through advertising. Conducting targeted advertising will ensure people are aware of the Nokia phones the company is selling. The company intends to increase the adverting budget by around 20% per annum in conjunction with Nokia to ensure more products are sold (McNamara 2011). Promotions: Promotions and price campaigns aimed at popularizing Nokia phones is a good strategy in ensuring more people purchase mobile phone handsets. For instance, the company could run promotions that award loyal customers and new phone models in the processing of popularizing the Nokia brand (Earnshaw 2005). Direct Selling: The SGM Company has come up with a strategy that will ensure it employs a lot of people who will be responsible for conducting direct sales for the company. These sales people will be responsible for interaction with customers on a direct basis and therefore it will boost sales and give company and its brands recognition (Strouse 2004). Partnerships: In the process of popularizing and selling Nokia mobile handsets in the East Timor market, the company has come up with a strategy that will ensure the company partners with telecommunication companies and third party retailers especially in the rural areas (Nagarajan 2010). This will ensure the company gains a greater market share in these regions. Consequently, the company intends to increase its partnership with Nokia in ensuring that a wide range of products such the Nokia X and Lumia which are new in the market are available in East Timor (Rhemann 2010). Branding: In the process of selling and popularizing the Nokia brand in East Timor, it is imperative to ensure that branding of the Nokia products is made to ensure that the brand is more recognisable in the country. The company also intends to make use of brand ambassadors to popularize the brand in East Timor (Hutchinson 2008, p. 19-22). Using celebrities as brand ambassadors are effective in passing the message since they are popular and well recognisable. Message Strategy The development of an effective advertising or selling message is appropriate to the customer and the company undertaking the sales process. Several tactics and messages are used in the process of adverting and marketing. These strategies should be aimed at getting the appropriate message to the targeted consumers. In the process of selling Nokia handsets, it is imperative to ensure that the features of these phones are transmitted to the appropriate consumers (Lintner 2013). Therefore in the process if outlining the main message of selling and marketing Nokia handsets should be based on these factors; a) Affordability: Nokia phones and handsets are affordable for all types of consumers since the company offers a wide range of products tailored for different types of consumers (Robyn 2011, pp. 37-38). b) Usability: Nokia phones are designed in a simple manner and therefore, it allows its users to easily make use of the phone. Nokia phones are not complicated and moreover, these phones have a voice recognition user guide and thus could be used by people who are visually impaired (Nagarajan 2010). c) Durability: Nokia phones are durable and have been designed for use within different environments and thus this should be used in the creation of the marketing message. d) Reliability: Nokia has designed phones which could be used within different settings and thus they allow users on different spectrum or network configurations to utilize these phones (Lintner 2013). e) Market Behaviour: In the process of designing the message to be used in adverts and marketing messages, it is imperative to understand the market behaviour. Market behaviour is comprised of factors such as purchasing power, preferences and fashion. These factors should be considered in the process of selling and marketing Nokia handsets in East Timor (Thamhain 2009, pp. 57-59). For instance, most East Timor people might prefer small and affordable handsets among the old people while the youth might prefer Smart Phones such as Nokia Asha or Lumia models. f) Target Audience: Within different market segments, there are different target audiences and therefore, we have to consider the specified target audience. For instance, the youth will be targeted with affordable and stylish handsets since this group prefers such form of devices (Nyland 2004, p. 113-115). While, old people will prefer functional phones which contain many features such as internet and e-mail (Fonow 2004, pp. 68-73). As a result, the message used for promotion should be based on these factors. Media Strategy In the implementation of the key recommendations in the achievement of the company’s key objectives, it is imperative to choose an appropriate media strategy. The choice of media to be utilized in passing the message to prospective consumers is very important. Several factors are considered in the process of choosing the appropriate media channel to be used by the company as outlined; a) Television: this media channel is quite appropriate in packaging the message to the target consumer group. This is because, a large constituent of the East Timor population have access to TV sets and therefore, the company will have the advantage of creating attractive message and advertising appropriate for the market. Moreover, TV sets allows the company to carry audio-visual adverts which are more attractive and educative in terms of showing off the features of Nokia handsets on sale (Siow 2008, pp. 69-71). b) Radio: This is the most popular form of media channel for companies advertising and marketing in East Timor. The people of East Timor are fond of listening to the Radio and thus the country has a huge coverage in terms of broadcast of radio frequencies. As a result, advertising messages should be made attractive and the company will also utilize vernacular radio channels in marketing and selling Nokia products (Twair 2005, pp. 92-93). c) Print Media: Print media is an upcoming form of media in East Timor and it has gained traction and therefore, the SGM Company will utilize the use of print media in popularizing and marketing Nokia phones to East Timor people. Moreover, print media allow the distribution of flyers and brochures on different Nokia phones on offer for the general citizenry (Barker 2012). d) SMS & Internet: Multimedia and advertising messages can be created and be passed through the use of SMS and the internet campaigns. Mobile penetration rate in East Timor is on the rise and as a result, it is imperative to ensure that personalized messages and campaigns through the use of SMS and internet are used in propagation of marketing messages (Robyn 2011, p. 36). e) Other Channels: Direct marketing and advertising is an appropriate channel for conducting sales and marketing. As a result, the company may utilize road shows and direct advertising by handing out brochures and promotional items containing information on Nokia phones (Park 2007). Conclusion SGM limited is local grown Eat Timor based company that has been in the market for a long period of time. The company has been successful in selling Nokia phones to the population in East Timor. It has achieved this through various methods and means such as learning and understanding the market. As a result, the company has launched successful campaigns in ensuring Nokia handsets gain a foothold and a large market share in the growing Eat Timor telecommunications industry. References Barker, N, Valos, S and ‎ Terence, M 2012, Integrated Marketing Communications, Lippincott Williams & Wilkins, New York. Earnshaw, G 2005, East Timor Business Guide, Jossey-Bass, San Francisco. Fonow, B 2004, “Global Networks: Emerging Constraints on Strategy”, Defense Horizons, Vol. 22(3), p. 67-78. Hutchinson, F and Okmen, E 2008, “ICT Infrastructure in Emerging Asia: Policy and Regulatory Roadblocks”, Journal of Southeast Asian Economies, Vol. 25(2), p. 17-25. Lintner, B 2013, East Timor: Economics, Business and Politics in Asia. Allen & Unwin, Boston. McNamara, J 2011, The Economics of Innovation in the Telecommunications Industry, Greenwood Publishing Group, Sydney. Nyland, B 2004, “East Timor: Building on the Early Years”, Australian Journal of Telecommunications, Vol. 29(4), p. 112-118. 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