B2B: B2B Nokia Marketing Mix Company profile: Company profile Nokia is a Finland-based company, established in 1865. The company is a leader in mobile communications. It has an employee base of around 58,874. It has 14 manufacturing facilities located in China, UK, Finland, Hungary, Germany, Mexico, Brazil, and the Republic of Korea. Its Research & Development centers are located in Japan and China. Slide 3: Principal Operating Units : Nokia Networks; Nokia Mobile Phones; Nokia Venture Organization; Nokia Research Center. Principal Competitors : Alcatel; Telefonaktiebolaget LM Ericsson; Harris Corporation; Kyocera Corporation; Lucent Technologies Inc.; Matsushita Communication Industrial Co., Ltd.; Mitsubishi Electric Corporation; Motorola, Inc.; NEC Corporation; Nortel Networks Corporation; Oki Electric Industry Company, Limited; Koninklijke Philips Electronics N.V.; Pioneer Corporation; Qualcomm Incorporated; Robert Bosch GmbH; Samsung Group; Sanyo Electric Co., Ltd.; Siemens AG; Sony Corporation; Tellabs, Inc.; Toshiba Corporation. Nokia Marketing Mix : Nokia Marketing Mix Marketing Mix of Nokia 7210 : Why it Reaches the Young Demographic The product, which I have chosen for this assignment, is the mobile phone Nokia 7210. The Nokia 7210 phone has a new keypad layout and a versatile four-way scroll that makes it easy to navigate the high-resolution colour display. (Http1) Polyphonic sounds played through a speaker give improved sound quality for ringing tones and message alerts. The Nokia 7210 tri-band phone operates in three networks - EGSM 900 and GSM 1800/1900 - providing coverage on five continents. The Nokia 7210 phone is one of the first to have a Pop-Port interface connector. It supports advanced functionalities, such as digital enhancement identification, stereo audio, and fast data connectivity. Slide 5: Target Market : Teenagers/Young Adults (15 27yrs) Students Product: Anatomy: Core Mobile Phone Actual Nokia 7210 Augment FM Radio, WAP, Games Classification: Speciality /Shopping Range: Nokia 7250 (enhancement/updated version of 7210) Networks (i.e. Orange, O2, T-mobile, Vodaphone ) Brand: Nokia, Connecting People Nokia 7210, "A sign of Attitude" Product Life Cycle: early Growth/ late introduction Price: £299.95 - £219.99 (Argos, Carphone warehouse, Index) A Description Of the Criteria Used by the Company to Target the Selected Market The company Nokia have promoted the Nokia 7210 in a certain way to target the selected market. I will be looking at this in a bit more detail: - Age The age that Nokia has targeted for the selected target market is teenagers and young adults. The way the phone has been designed confirms this. The design of the Nokia 7210 and the way this targets the selected market is explained below. Slide 6: The Design The new Nokia 7210 has been designed so that it appeals to younger people mainly teenagers and young adults as it can be seen from the picture. It is small, colourful and trendy looking. Which what a lot of young people want in a mobile. It has a light blue front cover and a blue LCD... THE 4P’S OF THE MARKETING MIX: THE 4P’S OF THE MARKETING MIX PRODUT:he product is the centre of the marketing mix and the other three P's are based around it. Consumers purchase goods and services for a variety of individual reasons and a company must be aware of all of these when selling a product (that is why they conduct market research). Nokia does exactly the same and comes up with innovative phones almost every six months. The new phones that Nokia launches have some new feature or price difference, thus appealing to the consumer. Sometimes, Nokia launches special and limited editions of its mobile phones, on special occasions such as the Olympics. In short they offer phones of great variety with various designs and high qualityCT : Price:-: Price:- Price is a key factor in the selling of a product, and is usually the one that is open to the most change based on different pricing strategies, for example, competitor based, penetration or skimming. The three main factors affecting the amount charged for a product or service, are; the cost of production, customer demand and competition. Since its entry into Indian mobile market in 1995, it focused on manufacturing of mobile handsets based on GSM technology. Nokia built a strong brand image with focused marketing and distribution network. It started focusing on the low-cost mobile phone segment for rural markets in India, but, faced stiff competition from Sony Ericsson, Samsung, and Motorola who also started offering low-cost handsets. Place:- : Place:- This refers to the chosen outlets for a product or service, for a product to be very successful it must be easy to access, Nokia mobile phones are very easy to access nowadays, they are sold in supermarkets, Nokia Priority, Nokia Care and specialized outlets e.g mobile stores Promotion :: Promotion : Involving provide the customer the variety of media platforms,using radio,television ,print advertising They also have a sales promotion scemes e.g offering special discount &occasion given the gift with the purchases the mobile phone. S.W.O.T analysis : S.W.O.T analysis Strength (internal factors)- Is looking at the companies current market share and researching how recognised Nokia is amongst consumers in the target market. Nokia is currently one of the most popular Mobile communications companies in the industry, generating over 52,000 sales in 1997, which was a 34% increase from 1996. Nokia's net sales for the October-December period in 1997 came to a total of FIM 15 857 million (FIM 12 669 million in 1996). Slide 12: Weakness (internal factors )- This is basically looking at where the product is failing or not doing as well as it should in the market. Nokia's problems are that: 1. They are currently aiming their products at a saturated market segment. 2. Their wage costs are forever rising. 3. Higher import charges have now been put into place. 4. There are some quite high supply chain costs that Nokia are currently paying. Opportunity (external factors): Opportunity (external factors) 1. Improve the technology that they are using to make their phones and use in their products, for example, camera phones and advanced picture messaging would attract new consumers to purchase phones under the Nokia brand name. 2. Using innovation to re-invent their products, change and develop within the market to offer something none of the competitors have. Also the fact that phone call charges are being forced to fall should prove to be an opportunity for Nokia to sell to the people, who previously may have not purchased a phone because of higher call charges. Threat (external factors)-: Threat (external factors)- This is looking mainly at the competition that are taking away Nokia's current market share and also government legislations (the total costs of 3G licensing in Europe is 110 billion euros ) that could hinder Nokia's development as a company. For an existing product it is often useful to draw up an Ansoff's matrix, in order for Nokia to grow as a business we must look at: Market research : Market research A businesses success is based on whether they can give the customer what they want and when they want it. Market research involves the collection, collation and analysis of data relating to the consumption and marketing of relevant goods and services. The purpose of market research is really to find out whether there is a gap in the market for your product We already know that there is a market for mobile phones but the current market gap has become saturated (or if not saturated, almost saturated) so Nokia need to find a new market segment to aim their products at. In order to classify the wants and needs of the consuming population, companies need to gather information Slide 16: Buying patterns and sales trends- Organizations need to look at how buying trends and patterns are affected by class, gender, religion and region. They also need to understand how buying patterns change over time and what markets are expanding and are worth trying to enter and obviously which markets are contracting and companies shouldn't aim to enter into. Product life cycle- Mobile phones : Product life cycle- Mobile phones Introduction When mobile phones where first introduced they were low quality technology (bad reception, poor reliability and had a short battery life), high priced (around £100 for a basic model) and consumers had to be persuaded to buy mobile telephones, as they were not yet established as a necessity Also when mobile phones were first released they were bulky and hard to use, as product design and development are a key figure in success, Nokia had to design phones that were smaller and simpler for consumers to use. As people had paid a lot for earlier, more primitive products When Mobile phones were first introduced they were not such a popular item and there weren't as many competing companies in the market. So Nokia and a few other companies (Sony and Panasonic) could charge higher prices then they would in the highly competitive market that they are in today, as there aren't so many companies competing for market share. Growth: Growth In the growth stage of the product life cycle companies can expect avertising and promotion cost to be as high as in the introduction stages as more companies will enter the market and competition for market share will increase . Advertising is a proven way of promoting technological advances within a market Maturity: Maturity When a product enters the maturity stage, advertising and promotional prises should decreases, as consumer more aware about the product. will research new additions to the market instead of being told what is new (this is because phones have been promoted as fashion items and will be desired by the consumers). At this point in the product life cycle the main producers (Nokia, Siemens, Sony etc) should be clear as they will have the most money to develop and promote their phones while the other, less popular producers of phones (Panasonic, Toplux and NEC) will be struggling to survive and will drop out of the market either here or they will seriously struggle in the next stage, decline. Decline : Decline This is the stage that Mobile phones have entered (Nokia had recorded first drop in sales earlier this year), and all the remaining companies are trying to re-launch their products by either developing their products or entering new markets. At this point phone sales will be decreasing and promotion and advertising costs will start to rise again as companies fight for the remaining market share and struggle to make a profit. Market segmentation : Market segmentation Market segmentation refers to the different areas of the population that companies can aim their products towards. The market segment that Nokia has chosen to aim is the youth market focusing on students aimed 13-19 as market research has shown that some of the youth market are receiving large amounts of pocket money and most have no real commitments to spend it. Adverts such as television and print adverts will be put into certain areas so that they can attract their chosen market segment, Nokia tend to put a lot of their print adverts in men's magazines such as FHM and Loaded so they can appeal to all of their readers instead of a smaller percentage of the readers they would attract in magazines such as Lifestyle and Good Housekeeping. Nokia's way of promoting is very good as they can appeal to mass markets and large amounts of people in their chosen market segmentation with certain advertisement's and with sponsoring large events like the ones I have previously mentioned.