Marketing Plan for Nokia N Series - Essay Example

Marketing Plan for Nokia’s N Series April 11, 2007 Executive Summary 1. Current Position Nokia has remained to be the world’s leading handset manufacturer over the years, with a 35% market share in 2006 (Quarterly and annual information 2006). The brand has continued to dominate the global market with its effective marketing strategies and strategic brand positioning, endearing almost each and every Nokia handset model to the market. Nokia has become influential in such a way that it continues to create trends in the market. It manages to cater to the needs of the fast-changing times, with its hippest designs and innovative features. Its wide array of handset models gives consumers the liberty to choose which among the cellular phone units suit their needs best. With the introduction of smart phones in the market, Nokia continues to take the lead, taking about 56.4% share of the 70.9 million units shipped in Europe in 2006. Nokia sold 40 million smart phones in 2006, reaffirming the fact that the success of the brand remains unscathed (Nokia leading phone market 2007). In fact, it has taken the brand to another level by making its phones highly competitive with the introduction of the Nokia N Series, a collection of smart phones that cater mainly to consumers who have requirements for a full-featured mobile phone with personal computer-like functionalities. These smart phones offer complete phone functionalities while alternately serving as personal data assistants. This “elite” group of high-end phones has created a stir in the market that the units instantly grew in popularity within a few months after being launched early 2005. The launch of the Nokia N series in 2005 created such a huge impact that sales of these products increased significantly since its launch. As of 2006, Nokia is recognized to be the worlds’ leader in smart phones sales, contributing to 42% market share (Smart phone sales are soaring 2006). This just goes to prove that Nokia has maintained its good relationship with the market as it has continuously managed to cater to the consumers’ needs despite the existence of other Personal Data Assistant (PDA) brands such as Palm and OS, and the emergence of new ones. 1.2. Key Issues Nokia is still the top choice in the UK market when it comes to smart phones. Its 3G (third generation) phones continue to fly with its up-to-date features. However, with the emergence of other brands that are determined to give Nokia fierce competition brand-wise, it is a challenge for this company to come up with even more effective ways to hold the market’s attention and sustain its stature in the market. It has to maintain and further improve its strategies to continue making its phones the leader in mobile technology. It has to further take advantage of the fast-improving technology and incorporate useful features in its units to be able to present new product choices to the market. The challenge is for Nokia to be able to maintain its success in marketing the Nokia brand itself and continue giving personality to its different models. Being known for its steady management of its corporate brand and the consumers’ perception of its products over the years, it is essential for Nokia to be able to continue with its creative campaigns to maintain pushing the new product line up that this marketing plan aims to introduce. Nokia is expected to be able to sustain its efforts in giving the brand a kind of personality that would never fail to appeal to the market. 2. Corporate Strategy 2.1. Corporate Mission/ Objectives Nokia aims to remain the leading handset manufacturer in the wireless technology business through the introduction of new, innovative products that evolves together with the ever-changing technology. It further aims to intensify its campaigns on “human technology”, sustaining its position in the market as the only handset provider that knows exactly the demands of the market, providing it with products that seem tailor-fit for every consumer’s needs. 2.2. Summary of Overall Position and Corporate Strategy Nokia believes that their edge over competitors is their human approach to technology. The brand gives to its consumers a chance to stay connected using the current technology. It transforms its products to maximize opportunities for people to communicate with each other and perform other tasks while being mobile. Nokia shall continue to appeal to its consumers with its hip, trendy, fashionable and user-friendly units. This, together with state of the art innovations with its all new Nokia N Series would guarantee that the company will achieve its financial and marketing objectives by the end of 2007. 3. External and Internal Analysis 3.1. Overview of the Market The mobile business continues to thrive as technology advances. People will always have a need to communicate through calls and texts. The need that this technology has created will continue to live through. And as this technology advances, handset manufacturers would continue to compete for the largest market share. Now that global connectivity is possible through cellular phones, people will clamor for more innovations. After the launch of the camera and walkman phones, the 3G phones and smart phones, and Personal Data Assistants, consumers will look forward to what other new things they can do with their mobile units. 3.2. Competitor Analysis When it comes to supplying the world market with mobile phones, Nokia shares the limelight with other handset manufacturers such as Motorola, Sony Ericsson, Samsung, LG Electronics, among others. In 2006, Motorola ranked second to Nokia, garnering 20.3% of the market share (Mobile Phone Sales in Q1 Indicate a Strong 2006 2006). Albeit having a market share almost half of Nokia, Motorola prides itself with the introduction of its new “thin” phones, which appeals to the younger market with its hip designs and cool features. Motorola also competes in terms of pricing with the introduction of its cheaper models. These units were introduced with the aim to give consumers more choices given Nokia’s affordable low-end camera phones. Samsung ranks third at 12.5% market share. This brand also carries a wide array of smart phones including the Samsung D720, Samsung i750, Samsung i300 and the CeBIT2005. Most of its smart phones are windows-operated. Samsung, however does not truly compete in terms of appearance as the brand focus for their advertising remains exclusively to its phone’s functionalities while sidetracking the aesthetic side of the products. Other players include LG Electronics, whose rise to the market was brought about by Vodafone’s decision to start selling the brand (Nokia’s market share back at 35% 2006); and Sony Ericsson, who, despite efforts to launch its walkman phones incorporated with 3G features, remain at the bottom with 6.1% market share. Sony Ericsson shares the bottom part with Ben Q mobile, having 3.5% market share. Ben Q, which merged with Siemens mobile in 2005, basically offers PDA phones. 3.3. Future Trends It is predicted that Cellular phone shipments would increase to 1.1 billion by 2008 (Worldwide cellular phone shipments forecast to be 1.1 B by 2008 2007). This is considering the growth in sales by 29% in 2004 and 14% in 2005. In 2006, close to 1 billion units were sold (Palm Addicts 2006), indicating an increase of 21% compared to 2005 sales. These trends show that there is more room for mobile phone users in the following years, and with constant innovation, there would always be a need for this product. 3.4. SWOT Analysis a. Strengths Nokia has withstood and endured the ever-changing demands of the mobile market over the years. It has continued to be dynamic, constantly coping with the needs of the market and has remained in its position as the world’s leading brand. Nokia’s edge over its competitors is also its strength, as being widely recognized, it can easily capture the interests of the consumers whenever it introduces its new product line up. Its strong position in the market shall enable it to bear forthcoming competitions in the market. b. Weaknesses Its failure to launch some of its best units is considered to be Nokia’s weakness. An example of this is the Nokia NGage, a unit that is supposed to appeal to consumers who are fond of gaming activities through their mobile phones. It has also been slow to introducing clam shell phones, unlike those that have been introduced by Motorola and Samsung which greatly appealed to the market. It has generally been conservative when it comes to experimenting in phone designs, faithfully adhering to its classic look that the consumers have become comfortable with over the years. This weakness provides an opportunity for competitors to take advantage of the market’s clamor for new designs, thus successfully penetrating the market with experimental designs that somehow catch the consumers’ attention. c. Opportunities The market still has room for improvements in the smart and Personal Data Assistant (PDA) phones arena. Nokia has yet come up with the ideal PDA phone, without sacrificing its current smart phone designs. It could team up with Microsoft or Apple to come up with phones that support softwares licensed under these two companies. d. Threats With Motorola aiming to catch up fast in the smart phone, PDA and 3G market, Nokia should continue to be conscious in sustaining its efforts in both product development and in brand management. Simultaneous with the creation and innovation of new units should be its aggressive campaigns that match those of Motorola and Sony Ericsson, which massively utilizes tri media in delivering their message to the target market. 4. Marketing Objectives 4.1. Financial Objectives With the current market trend in Smart and 3G phones, Nokia aims to capitalize on the strength and current position of its Nokia N series to garner a 50% increase in profit this year. In the last quarter of 2006, Nokia reports to have attained EUR 41.1 billion, and has enjoyed an average of 40% growth in product sales yearly (Quarterly and annual information 2006). 4.2. Marketing Objectives Nokia now occupies the top spot in the market. But as competition continues to keep this brand at its toes in introducing more innovative products, Nokia aims to further intensify and reaffirm its position as the world’s top distributor of smart phones with the introduction of the all new Nokia N Series models. 5. Marketing Strategy 5.1. Market Segmentation Nokia’s new N series’ target market includes the high to mid end market. The All New N70 series, which includes N70i, N71i, N72i and N73i shall be pushed to the mid end market, considering its features and pricing that suit this bracket. This target market is composed of those that demand for phones that have the features of a Personal Data Assistant (PDA), incorporated with features of a media player and basic data storage. The All New N80 series, which includes N80i, N81i and N82i, and the All New N90 series which includes N90i, N91i and N92i shall cater to the high end market, with its power-packed personal computer-like features. This market is composed of CEOs, Managers and high-ranking corporate officials who need to have Personal Data Assistants, equipped with data processing and storage system backed up by Microsoft. This group also requires constant connectivity, thus the Wi-Fi capability of these phones. Media storage only ranks second in priority for this market segment, although Nokia shall see to it that these phones also offer competitive media storage features. 5.2. Competitive Advantage Nokia has been the leading distributor of handsets for several years now. Its being recognized as the world’s leader in mobile phones gives it the competitive advantage over other handset manufacturers. Nokia shall continue to be recognized as a brand that knows and fully understands the needs of the market after having established its position as being the brand that “brings together technology and the human side in a powerful way” (Nokia-Building a Powerful Technology Brand 2006). Its corporate decisions revolve around what consumers need and want. It utilizes the latest in technology without sacrificing design and value for money. Its tagline “we call this human technology” shall remain as a reminder to the consumers how Nokia has continuously catered to their communication needs ever since mobile technology was introduced back in the 90s. 5.3. Marketing Strategy Nokia aims to achieve its financial and marketing objectives through the innovation and improvement of its Nokia N series. Nokia shall adapt the basic features of a personal computer, complete with Wi-Fi connectivity capabilities and personal data assistant features. This shall result to the new Nokia N series – a line up that gives another meaning to the word “mobile”. With the new N Series, consumers who have a constant need to input and process various data can now do so with these new hand held devices. Nokia phones are not only limited to the traditional concept of call and text. It expands its services by offering data processing functionalities similar to that of Microsoft Word and Excel. Its easy connectivity with the internet such as the Wi-Fi technology shall enable consumers to process their requirements on line, access emails and be in touch with the rest of the world while being mobile. Its media and data storage capabilities also appeal to music and movie addicts, as the All New Nokia N Series continues to play MP3, MP4 and other audio music files. It also recognizes video formats supported by Microsoft Windows. The All New Nokia N Series also offers up to 4 mega pixel cameras, and are capable of making and receiving video calls and video conferencing. Aesthetic wise, the new Nokia N series remains to be hip, trendy, cool and easy to navigate. Consumers would continue to love its fashionable look. 5.4. Specific Marketing Programs a. Product The All New Nokia N Series shall be the banner product and the main line up to be pushed. Specifically, Nokia shall introduce the following products: The Series Basic Features The All New Nokia N70 Series 3 mega pixel and VGA cameras; Video call and video sharing enabled by 3G; digital music player and visual FM radio; data storage backed up by Microsoft; internal memory of up to 10MB and external memory of up to 10 GB. The All New Nokia N80 Series 3.5 mega pixel and VGA cameras; Video call and video sharing enabled by 3G; digital music player and visual FM radio; data processing storage backed up by Microsoft; internal memory of up to 20MB and external memory up to 20 GB; Wi-fi connectivity The All New Nokia N90 Series 4 mega pixel and VGA cameras; Video call and video sharing enabled by 3G; digital music player and visual FM radio; data processing storage backed up by Microsoft; internal memory of up to 30MB and external memory of up to 50 GB; Wi-fi connectivity; capable to hold Microsoft programs such as MS Word, Excel, PowerPoint and Adobe Reader. b. Price The Nokia N Series is Nokia’s high to mid end product line and shall be priced accordingly. c. Place The Nokia N Series shall continue to be distributed and sold through UK’s top distribution and retailing outlets and through various telecommunication providers. These products may be sold as handset only or with line. d. Promotion Nokia, being known for giving its units a brand personality, shall provide the new units with unique taglines to identify them from one another. These taglines shall be based on their functionalities. A massive campaign that includes TV, radio and print ads shall be created. These advertisements shall initially focus on the new product line up in general, eventually zooming into each unit’s features in separate advertisements. Tie ups with various media channels, TV stations, MTV and with service providers shall also be done for the staging of events such as concerts and road shows. This shall enable the consumers to feel and experience these new phones through product sampling. Endorsement from influential celebrities such as Beyonce and David Beckham shall be sought. These personalities appeal to the young generation and would be successful in promoting the new handsets. 6. Implementation 6.1. Schedule of Key Tasks This Marketing Plan is set to be launched within the 2nd quarter of 2007, simultaneous with the release of these new handsets in the market, the tri-media campaigns shall also be launched on May 1, 2007. First to be aired is the Nokia N Series omnibus campaign featuring a brief overview of the All New Nokia N Series brand “personality”, which is alternately hip and serious, with the new phones catering to the needs of both the young and matured market. The new N Series’ capability to do data processing shall be shown in these advertisements. By second week of May, advertisements on the specific units shall be aired two handsets at a time. Various events shall also be staged in cooperation with UK’s telecommunication service providers to introduce this new handset line up at a more personal level. In cooperation with MTV, concerts and parties shall be held in key cities to allow the market to experience these new phones. 6.2. Resource Allocations Nokia shall be allocating additional budget for campaign launching purposes. The company’s ads and promo budget shall be maximized to create effective and unique marketing campaigns to market each handset via TV, radio and print. A massive advertising campaign shall also be launched per key city, to be backed up with events and promotional tie ups with local groups, TV stations, service providers and other media groups such as the MTV. Sponsorship of major events in the country shall be done to promote the brand and increase awareness of the new product line up. 6.3. Budgets Nokia shall allocate a total budget of 3,000 EURm for TV, radio and print ads and for the production of merchandising materials alone. Another 1,500 EURm shall be allocated for the staging of concerts and other activities and for sponsorships of events. 6.4. Contingency This budget allocation for promotional purposes shall be utilized and maximized to achieve the company’s financial and marketing objectives. This budget shall be spread out and utilized in the next nine months. To ensure that the allocation is sufficient, tie ups with media groups and service providers shall also be made in order to augment other promotional costs. 7. Control and Forecasting 7.1. Assumptions Made The projected expenses have been based on Nokia’s declared expenses for advertising and promotion in 2006, which amounts to 2,961 EURm (Financial Statements 2006). Due to the massive and intensive campaign that Nokia projects to launch for this series, this budget has been added 50% more to accommodate additional TV, print and radio campaigns. 7.2. Critical Success Factors Nokia considers as its critical success factor the quality of its new products basing on consumer feedback. The company shall also monitor direct competitors’ responses through the new products that they would be releasing to match Nokia’s new product line. How Measured Consumer satisfaction shall be measured through the actual sales versus projected sales, to be monitored on a monthly basis The success of this campaign shall be measured in terms of consumer response and the handset sales compared to the old Nokia N series. 7.3. Financial Forecasts Costs A total budget allocation of 45,000 EURm has been forecasted to support the new product launch and the massive campaign that is scheduled to follow. This shall cover both mainstream and alternative media expenses. This figure represents a 50% increase in the actual advertising and promotional expenses by Nokia in 2006. Revenues Nokia targets to increase its overall sales up to 50% by the end of the implementation year, or with a total of 17,552 EURm compared to 2006’s 11,701 EURm (Quarterly and Annual Information 2006). All New Nokia N Series shall contribute to 70% of the overall projected sales, with the rest of the projected sales coming from Nokia’s low and mid end phones. Reference List Financial Statements 2006. Retrieved April 11, 2007 from http://www.nokia.com/A4126493 Mobile Phone Sales in Q1 Indicate a Strong 2006 2006. Retrieved April 11, 2007 from http://www.cellular-news.com/story/17629.php Nokia – Building a Powerful Technology Brand 2006. Retrieved April 11, 2007 from http://www.brandingasia.com/cases/nokia.htm Nokia leading phone market 2007. Retrieved April 11, 2007 from http://www.3g.co.uk/PR/March07/4469.htm Nokia’s market share back at 35% 2006. Retrieved April 11, 2007 from http://news.bbc.co.uk/1/hi/business/4758026.stm Palm Addicts 2006. Retrieved April 11, 2007 from http://palmaddict.typepad.com/palmaddicts/2007/03/gartner_says_wo.html Quarterly and Annual Information 2006. Retrieved April 11, 2007 from http://www.nokia.com/A4132057 Smart phones are selling 2006. Retrieved April 11, 2007 from http://news.com.com/Smart-phone+sales+are+soaring/2100-1041_3-6124049.html Worldwide cellular phone shipments forecast to be 1.1 B by 2008 2007. Retrieved April 11, 2007 from http://www.compoundsemi.com/documents/articles/gsedoc/5006.html Read More