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TITLE: MARKETING REPORT FOR NOKIA IN USA FROM: OMAR RAAD ALBRAICH TO: THE HEAD OF MARKETING AND PLANNING DATE: 15 / 04 / 2012

INTRODUCTION:

Nokia is and the largest producer of communication devices and electronic gadgets in the world. Nokia is headquartered at Helsinki in Finland. They have operations spread over in almost 150 countries. The company operates in four different divisions namely: Nokia Mobile Phones, Nokia networks, Nokia Ventures Organizations and Nokia Research Centre. Their prime vision is a world where everyone is connected. It is one of the most loved and fastest growing brand in the world. The following marketing report tries to explore the mobile phone business of Nokia within the USA market.
METHODOLOGY:

The report is discussed mainly over two different sections. The first section tries to study and understand the competitors in the market, the macro and micro environment analysis along with the analysis of customers. The second section of the marketing report suggests marketing objectives and strategies that Nokia can practise to develop a better market section. This section also identifies the competitive advantages that Nokia can use as a firm and their targeting and positioning in the competitive market .
COMPETETOR ANALYSIS:

In USA, Nokia do not directly sell mobile phones to their consumers. Instead, they enrol themselves with cellular service providers and reach consumer through these cellular service providers. This in itself acts as a negotiating di sadvantage for Nokia.
PERFORMANCE

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The main competitors of Nokia with regard to mobile phone in the US Market are: Apple, Blackberry (RIM), Android, and Windows mobiles. Nokia entered the USA market in 1998. The USA market is highly competitive with Apple b eing the market leader owning 29.7% of the market share. Blackberry closely follows Apple with 27.4% market share. The new entrant Android based phones occupy 22.7 % of the market. Windows mobiles follow Android phones with 14% share. Nokia is ranked only fifth(with 3.4% market share) in this competitive market. The players in the market can be divided into two strategic groups based on the complexity and openness of the software platforms used in mobile phones. Group A: This group comprises of the three major players whose platform is open to additions and development. The firms that fall into these categories are Apple, Android and Blackberry. Group B: The second group comprises of firms that introduce communication devices with significant inbuilt features are not supported. This includes symbian phones like Nokia, Google mobile phones having Windows and palm Operating systems.
OBJECTIVES AND STRATERGIES:

The objectives followed by the companies in strategic group A are attracting the ever dynamic youth and advanced thinking individuals by means of offering communication on a platform that is open to add -ons. Apart from the inbuilt features , they try to attract dynamic consumers by offering add -on services to the mobile phone by means of online stores . Apple has developed i-store for this purpose. Android reaches their consumers through Android market and RIM uses Blackberry App-world for this purpose. The players in strategic group B, uses their specific inbuilt and physical features as a mode of attracting target consumers that include a proportionate mix of youth, executives, business professionals and the elderly. This includes companies like Nokia, Google nexus and HTC. They try to attract potential consumers with phones

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those stylish in look, encompasses of numerous inbuilt features and altogether provide a better user friendly experience compared to firms in strategic group A.
IMAGE:

The firms in group A are looked upon by consumers as a latest, sophisticated, expensive and advanced mobiles phones with latest features and applications. Whereas, the firms in strategic group B that include Nokia: are perceived by consumers as an affordable, user- friendly and value to money product.
CUSTOMER ANALYSIS:

SEGMENTS: There can be three basic segments that can be indentified in this market wherein Nokia operates. The first and the largest segment includes, the youth between the age groups of 16 to 25. This is followed by the middle aged consumers within the age groups of 25-45 that includes working executives and business professionals. This is followed by the elderly that falls into the age group of 45+. MOTIVATIONS: The motivations for each segment differ according to their purpose and need. Though the core functionality is voice and text communication, there are lot of augmented features that a consumer considers before opting a device. The consumers in the youth seg ment purchase a mobile phone for their entertainment needs like music, video, gaming and extensive communication. Ap art from these features they also prefer devices with stylish looks. Nokia has tailor made devices like Nokia 5730 express music, 5630 expre ss music, 5800 xpress music, Nokia N-gage for the consumers in this particular segment. The business and working executives use mobile phones mainly for communication, especially online communication. These consumers are motivated to purchase a mobile phone mainly for online and telephonic communication, devices that has the ability to save and review business documents and files (.ppt files) format. Understanding this need of consumers Nokia had launched the E-series mobile handsets that include models like E7, E61, E71, E52, E62 etc.

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The elderly people mainly are motivated to buy mobile pho ne for communication and navigation purposes. People in this age group are mainly non -working retired individuals who enjoys their leisure time. They prefer user friendly communication devices that helps them navigate as well apart from helping in communic ation. Understanding this need Nokia has developed devices exclusively for navigation purposes like 6710 Navigator, 6110 navigator, 6110 navigator.
KEY SUCESS FACTORS :

The key success factors of the Market leaders Apple is the cool, trendy, latest technology incorporated smart phones that they produce. Their ability to innovate with research is the prime reason behind their success. Blackberry worked its way into the top mobile phones list by means of developing solutions to meet the instan t communication needs of consumers(especially youth) by means of developing Blackberry Messenger in association with Telecom providers. Android phones like HTC, Goole Nexus, Samsung operates with the advantage of open ended platform which they posses. This makes the device mobile more than just a communication device. It prevents the product from entering into the decline stage of the PLC.

NOKIAS KEY SUCCESS FACTORS: Nokia is a firm that has huge economies of scale because of their strong bond they have with suppliers and with the well integrated supply chain network. This helps them to gain cost advantage and help them produce reliable phones at a lower cost and reach them to consumers. The strong distribution retail network they have is also a key success factor. However, Nokia must develop technologically advanced phones, create a solution to the growing instant communication needs of consumers and develop an open ended software like Android with the support of an online applications.
UNMET NEEDS:

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There are unmet needs experienced by mobile phone users. Entertainment is as important to consumers as communication. Though there do exsist mobile phones that offer platform for watching movies, and listening to songs , there exists no such device in which aired television channels can be watched. Hence, a company that develops such device that can fulfil this unmet entertainment need of consumers will gain a competitive edge over others.

ENVIRONMENT ANALYSIS:

Political: Political factors like the legislations regarding minimum wages , type of government and market regulations, trade agreements/ tariffs are important factors and plays a vital role in the decision making process of the mobile phone industry. Most important of this is the minimum wages law which becomes a decisive factor for mobile handset providers to decide whether to set up plants and research units within USA or to outsource the same. Economic: Like any other industry the economic market conditions also assert an impact on the mobile phone industry. This is because, the economic condition of the country is connected to the economic condition of consumers. The recession that struck USA in 2008 was a major factor for the declines of sales in this industry mainly due to the increased level of unemployment, low spending power etc. Social: Social factors do have an important role to the firms operating in the telecom industry. The factors like the rate of family formation, the growth rate of the population, the age wise distribution of population as well as the regional shift in the population will impact and affect the industry a nd the players within the industry. Hence time to time marketing plans, strategies must be developed after well studying the population distribution figures and census as well. Technological:

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Technology is the most important of the environmental factors fo r a firm operation in the communication industry. Technology is ever changing , and adapting to this change brings in solidarity and integrity for speed, fast and efficient means of communications. According to the change of technology the firms must have financial and people resources that can effectively work together and produce communication devices that provides ease of communication with efficiency. Legal: To operate in this market, all communications firms must vitally follow the legal regulations of the telecom industry. The telecom companies must also follow the legalities of other laws like employment laws, laws protecting consumer rights etc. Environmental: It is also necessary for consumers to work without creating harm to the environment. This includes back collection and safe disposal of used mobile phones and batteries. Apart from this, they also contribute to the environment by associating themselves with events that promote environment friendliness.

INTERNAL ANALYSIS:

The internal analysis of the firm is done by analyzing the strength, weakness and opportunities of the firm. STRENGTH:  Extremely strong Brand Equity and Brand Name  Extremely strong distribution network  Strong research team  Proved to be affordable and reliable WEAKNESS:  Lack of open platform software  Lack of constant communication  Lack of online application purchasable stores

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 Lack of service centres at all places

OPPURTUNITIES:  Presence in a rapidly growing telecommunications industry market  Efficient staff and infrastructure  Ability of the firm to innovate - that promises future prospects THREATS:  Increasing competition  Price wars with competitors  Entry of mobile phones that has open platform software

MARKETING OBJECTIVES: Certain marketing objectives must be devised keeping in line with the firms objective that will ultimately lead to achieving the firms objective as a whole. The major objectives of the company are to achieve in the upcoming year would be: achieve aggressive sales across youth & business segments, develop and promote a new phone with an open platform like android, In order to achieve Nokia USAs aim of achieving aggressive sales in all segments. The firms marketing objective for the will be: Rise the sales in all segments by 3% by the end of 2011

The second objective of Nokia USA would be: to develop and promote a new phone with an open platform like android. The marketing objective for the same would be: To generate awareness for the product by 3% before end of 2011 .

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To cover all regions of USA (especially the northern states ). The marketing objective for this business objective can be: To increase retail outlets by 3% before end of 2011
TARGETING AND POSITIONING:

Nokia can develop new strategies to focus consumers based on their level of use as heavy users, medium users and light users. This will help Nokia in developing and categorizing their product according to the nature of usage. The market can be broadly looked at in three segments like below: Heavy users: will be the youth segments (between 18 to 25) who are the highest users of mobile phones and who prefer to stay connected mostly. This consumer segment prefers trendy phone with style and elegance. The brand positioning must be made in such a way to the consumers that they feel that the products of Nokia are reliable, suitable for their kind of use. The brand must also stand out as an icon of the youth that stands for studying and serving the communication needs of the youth. Medium users: will mainly be business users between ages 26 to 40 who use telephone as a medium to keep connected mainly for business purposes. These will include the working class of individuals who are not much price conscious but particular about business supporting features and applications that the particular product offers. The positioning of the product amongst this segment must be as a brand that integrates technology with convenience and brings forth solutions to all the business oriented communication needs.

Light users: The people who fall in the age group above 40 years of age. These are people who are light users and who use phone as a basic medium of just staying connected when necessity occurs. To these people, the brand must be positioned as a trust worth, reliable, value for money brand. The name, reputation and image that Nokia has achieved around the

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world as a leading producer of mobile phones can be used as the basis of the positioning goal.

GROWTH STRATERGIES:

To grow in this Market Nokia can make use of Ansoff Matrix. Ansoff matrix suggests different growth strategies of which market penetration and product develop ment can be used by Nokia to improve performance within this market. Nokia can undertake product development by developing new product s for the existing market and by introducing new products for the existing consumers in the existing market. This can be done by means merging up with Google and develop a new phone that can function using an open platform like Android. This will enable incorporation of latest applications and will prevent a particular product from entering into the decline stage on the lif e cycle of a product. Nokia must also encourage their Research and development team and start developing business phones with dual SIM card facility and with inbuilt wave projection technique. The wave projection technique will enable business people to project their slides and presentations on the go. Dual SIM card facility is also a vital facility as many of the consumers in this segment are working people who wish to keep their business and personal contacts separately. Market penetration can be done by means of extensive promotional campaigns and PR campaigns. To begin with, Nokia must well negotiate deals with cellular providers and make an attempt to reach end consumers at a competitive price way better than what the competitors can offer. Discount schemes must also be set up in association with retailers for various models that are found to be slow moving in the market. In order to attract the youth, Nokia must position in the minds of these consumers as a sign of youth icon. This can be done to a gre at extend by developing trendy, compact, stylish mobile phones with loaded features and applications. For the business segments in association with cellular providers, discounted rates must be offered to corporate consumers. PR campaigns must also be given

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importance in projecting the specific features that Nokia business phones have in comparison to the competitors products. The brand positioning in the consumers mind should be a unique, compact yet convenient phone creator of advanced business phones that ideally encompasses of all the basic business applications that a businessman would ideally need. In the light users segment, a product must be developed that has big easy to scroll screen that does not impa ct hard on eyes. This is because the consumers in this segment are mainly old people.
SELECTING COMPETETIVE ADVANTAGE:

In order to establish a prominent position in the highly competitive market, Nokia must choose an option of sustainable advantage. Nokia can primarily use the porters cost advantage to develop a competitive sustainable advantage to overcome the extensive competition in the current market. This is mainly because Nokia has a strong bond with the suppliers because of which Nokia has be en able to develop low cost mobile phones in other parts of the world like India and China . This has enabled Nokia to significantly increase their market share in these countries and even become market leader. Price skimming can be used for newly launched mobile phones, especially the introduction and growth period of a particular series of mobile phone. However, penetration pricing can be used for models that enter the maturity period. In the decline stage of the product discounted prices must be offered to the product as to achieve maximum sale out off the existing model and to create space for the new incoming model in the market.
MARKETING MIX PROGRAMME:

FOR MARKETING OBJECTIVE 1: Product: Nokia n-gage, Music express series Price: Should be nominal priced like between $ 217 and $326 Place: Through tie ups with cellular operators like At&T and Orange and authorized retail agents

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Promotion: Must be done on youth magazines, celebrity endorsements, social networking sites. Bill board s can also be used along with dynamic Tv advertisements

FOR MARKETING OBJECTIVE 2: Product: The further improved versions E -series Price: Between $ 400 To $ 680 Place: Through retailers and fleet sales in coordination with Telecom providers Promotion: Personal selling to corporate organizations, advertisements on business magazines, bill boards and PR campaigns

FOR MARKETING OBJECTIVE 3: Product: N series , navigator versions Price: $ 270 To $ 490 Place: Through retail agents and joint association w ith cellular providers Promotion: Advertisements in newspapers, fly-leafs, PR campaigns and TV ads
CONCLUSION:

To summarize, the USA market is a highly potential market for a n experienced Market player like Nokia. But, the market is consists of consumers who are more technologically advanced and are more tech -savvy. Hence, is the success of Apple, Blackberry who well incorporates technological findings into their products. Therefore, Nokia must strengthen itself in progressing with technology instantaneously to overthrow competition and acquire a better market position. Sufficient people and financial inputs must be put into researching, developing and marketing of these new products. Only then, can Nokia improve and sustain a good market position in a market like that of USA.
RECCOMENDATATIONS:

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Consumers preferring communication over features: It is seen that consumers especially the youth gives more importance to communication over features. The success of Blackberry by the introduction of Blackberry Messenger is a vital sign of this changing trend amongst the consumers. Consumers, especially the youth are evolving into the concept of staying connected 24/7 than just when necessary to communicate a message across to peers. So, Nokia must put serious efforts into developing messenger software in coordination with cellular providers and efficiently market it in t his market. Without doubt, it would enable significant improvement in market position. Promoting online communities: An online community must be developed by Nokia , wherein all the existing Nokia users can share their views , opinions, benefits and probl ems that they face with regard to using a Nokia product. This can also be used as a channel through which the company can keep in touch with the consumers on a regular basis. Developing online application stores: Online application store like android stor e for android, i-store for Apple must be developed. Free and paid applications and programs must be made available to consumers via these online stores. These stores will help certain model of mobile phones from entering the decline stage as applications c an be developed to keep it updated. APPENDIX:

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