This is the detailed marketing plan of Nokia which has been operating in consumer electronics and telecommunication industry since 1865.
Nokia Corporation, known as NOKIA, is a Finnish multinational corporation, founded in 1865, serving customers in 130 countries. The headquarter is located in Espoo, Uusimaa. Nokia focuses on the key growth areas of mobile phones, Multimedia, Enterprise Solutions, and Networks. Nokia is one of the largest manufactures of mobile phones in the world which has created a good reputation among its clients due to its unique design and durability.
Target Market
Nokia targets the people with the age group of 15 to 50 years but the main focus of Nokia is towards teenagers since they are more inclined towards new technology and mobile devices. Nokia is also targeting emerging markets that use the low-cost smartphone.
Industry Trends
Nokia reached a market share of 9% in 2016. According to statistics, Nokia spent 4.9 billion euros on R&D in 2016 as compared to 2.09 billion euros company spent in 2015 which shows that the company’s R&D efficiency is improving. The investment will help Nokia to stay on par with, or better than, the competition. Nokia has also acquired numerous companies to improve its profitability.
Goals
The goals of Nokia are legitimate and clear, which includes:
• Maintaining positive, steady growth in each quarter.
• Attaining an increase in market penetration.
• Achieving the anticipated growth rate of two years
• To be no. 1 cell phone manufacturing company in the world.
• Maintaining strong brand image and reputation.
Strategies
Nokia’s new strategy constructs upon its improved business portfolio and centers on five key areas:
• Manufacture winning devices
• Embrace consumer Internet service
• Provide enterprise solutions
• Build scale in networks
• Expand professional services
Annual Marketing Budget
Total revenue of the company by 2016 was €23.6 billion with operating profit of – €1.1 billion (Loss) and a net profit of – €912 million (loss). Nokia has not been spending much on its promotional activities lately. Back in 2009, Nokia spent $278.9 million in global measured media.
Marketing Mix
Product
Nokia offers a wide range of product portfolio including over a hundred devices. The main product of Nokia is mobile devices and the products are widely recognized because of Nokia’s strong brand name. Nokia comes up with different innovative designs such as flip sets, flat sets, slide sets, touch phones, etc. Each device has its own unique feature which differentiates it with another model.
Price
Nokia does not ignore the fact that the competitors are giving tough time and Nokia has to lower their product’s prices in order to survive in the market. Thus, Nokia offers their products in the marketplace at the reasonable rates. Nokia also provides warranty for one year so that it can get repaired in case of any damage.
Place
Nokia uses distribution channels to sell the devices to the customers through Vodafone, Tmobile; through retailers such as Carphone Warehouse, The Link, adixon, and websites. Initially, the distribution of Nokia focused on urban areas but in order to reach everywhere, Nokia started focusing in the rural areas. The reformulation of distribution strategy helped boost sales and increased market share as well.
Promotion
Nokia promotes the products through Tv, newspaper, radio advertisement, etc. In advertises, Nokia always emphasizes to their slogan “Connecting people” to build a strong relationship and collaborate with its customers. Nokia also sponsors sports events and activities, educational activities, engagement programs to promote its brand. Moreover, Nokia also focuses on digital marketing and promotes its brand in social networking sites and its official website.
Competitors
There are many strong players who are dominating the mobile phone market. Samsung, Apple, Motorolla, LG, and Sony are few names which have a strong grip on the market.
Strengths
• Strong brand name.
• Durable products
• Products offered in all price range
• Largest selling and distribution network
• Strong financial support to R&D
Weaknesses
• Inability to follow trends
• Slow reaction to changes and new technologies
• Low performance of smartphones
• Poor After Sales Service
Reference
About Nokia Corporation. Retrieved from: http://www.referenceforbusiness.com/history2/35/Nokia-Corporation.html#ixzz4tamHZNEO
Nokia Market share. Retrieved from https://www.strategyanalytics.com/strategy-analytics/blogs/enterprise/wearables/emerging-devices/2017/02/24/nokia-captured-9-feature-phone-marketshare-worldwide-in-2016#.Wcef39QjHIU
Nokia’s R&D. Retrieved from https://www.statista.com/statistics/267821/nokias-expenditure-on-research-and-development-since-1999/