Introduction
This paper is aimed at formulating an advertising campaign for Nokia phones. The essay has six sections which are designed as follows; background information about the writer, Nokia phone, and Nokia brand will be discussed in section one. The research to be done in preparation for writing the essay will be discussed in the second section, the target market will be discussed in section four, the campaign objectives are in section four, creative planning is in section five, and the advertisements are outlined in section six.
Product Background
The aim of this essay is to come up with an advertising campaign for a product of choice and brand of choice. In this paper, I will formulate an advertising campaign for Nokia smartphones from Nokia brand. The Information and Technology industry is constantly advancing which has led to innovations and invention of many brands of smartphones like Samsung, Huawei, Lenovo, htc, Sony and Apple, which are critical tools in the modern technological world. With modern technology, people can work from the comfort of their homes using smartphones, send and receive information across the world, share videos, photos and music from any corner of the world with the use of smartphones. Information has become so important in the modern society that the mode through which such information is transmitted is equally important to the parties involved. This essay will discuss the Nokia brand whose mobile phones have been leading in the technology and information industry for the longest time due to high-quality features of the phones and affordability of the phones. Nokia brand is recognized globally and has led in the sales for quite a long time compared to competitors. However, Nokia smartphones have suffered in the market mostly due to heightened competition from the most innovative Apple and Samsung who have taken the lead in the market with their smartphones. For this reason, the Nokia smartphones popularly known as Lumia need a strong advertising campaign to regain its market share and even increase the market share.
Product Background
Smartphones have revolutionized the information and Technology from phones just being tools of making and receiving calls to being an office from which one can work, sharing of videos, pictures and music, access the internet and send emails from any corner of the world, instantly. The smartphones have made communication across nations and within countries much faster, efficient and effective. At a touch of a button, one's family or friends can know where they are, what they had for breakfast and even the color of clothes they are wearing through sharing of photos and videos. Through continuous innovation and constant improvement in technology, mobile phones have undergone substantial evolution since 1994 when the first smartphone known as IBM Simon was invented followed by Nokia Communicator in 1996. The first smartphones were relatively larger compared to the present day smartphones. Ericsson R380 was the first real smartphone to be released in 2000 which was normal size just like the regular phones. In 2007, Apple hit the market with the release of their iPhone, which has acted as a yardstick for smartphones invention up to now.
Since the release of smartphones in 2007 by Apple, Nokia has not been able to compete well in the market. This may be attributed to poor introduction and marketing strategy implemented by Nokia. Nokia released its first smartphone N 95 in 2006, and the brand performed well with a market share of 70% (Bouwman, Harry et al. 4). The market share started to shrink in 2007 when Apple released their iPhone and took up most of the market in the US and Europe. This was worsened in 2010 when Android and iOS started to progress in their invention of smartphones.
Company/Brand Background
Fredrik Idestam founded Nokia Aktiebolag in 1865 in Finland. The company was later acquired by Finnish Rubber Works Ltd and was merged with Finnish Cable Works between 1918-1922. The company was changed to Nokia Corporation in 1967 when the three companies officially merged. Initially, Nokia was active in the manufacture of computers. The company started to manufacture phones in 1979 after it merged with Salora and the merger was referred to as Mobira Oy (Bouwman, Harry et al. 2). Eventually, Mobira was absorbed into Nokia. Nokia's main competitor was Motorola, but Nokia was leading in the mobile phones market in Finland. Nokia decided to venture into the global market in 1994 with a troublesome entry in the US market but eventually took up the leading role as number one mobile manufacturer worldwide in 1998.
Nokia released its first smartphone in 2003, the Nokia 6600 and released a series of smartphones until 2006 when Nokia released an advanced smartphone, the N series, specifically N95 with GPS and Nokia maps; high end rear-ends camera, a front-end camera for video calls, could play audio and video and had business applications. The focus of this invention was to consumers and businesses. Telephony and computer technology were converged with main entertainment and business application being the center of attention in the invention. This invention increased Nokia's market share within two months by 3% and overall market share of 70% globally (Bouwman , Harry et al. 4).
Research
This essay is aimed at formulating an advertising campaign for Nokia Lumia smartphones. For a successful advertisement campaign formulation, it is important to gather sufficient and reliable information about the Nokia Lumia smartphones and how the brand is performing in the mobile smartphone industry and the brands' past performance. It is, therefore, necessary to use a credible and convenient source so that one can access accurate and reliable information to formulate a successful advertising campaign for Nokia Lumia smartphones. Sufficient information is also needed about other smartphone brands that are the main competitors of the Nokia brand, about their performance and market share. The most suitable and reliable source of information, in this case, is the internet. This is because the Internet has many sources of information which include the companies’ websites, strategic and annual reports for the companies in question and many types of research, journals and articles that have been discussed previously, about Nokia Corporation. Nokia's background and its brand's information can be accessed from Google, the company’s performance and the market share may be consulted on the company's website, its annual reports and previous researches are done on Nokia Corporation. Nokia's most competitors like Apple and Samsung need to be researched too. Their past and current performance and their market share as compared to Nokia. All these information will be researched on the internet.
Target Market
Nokia had always led in the mobile phones industry until 2007 with the invention of smartphones when its market share started declining drastically and had not been able to regain its position in the market. Compared to competition like Apple and Samsung, Nokia was the pioneer of smartphones in 2003 and enjoyed a leading role in the European and the US market. However, the entry of Apple and Android smartphones manufacturers in the market gradually led to the shrinking of Nokia market in the US and Europe which is the target market for this advertising campaign. The advertising campaign will also target the emerging economies like Brazil, China, India and South Africa. It is important to note that China, as an emerging economy has so many mobile phone manufacturers and it will be an uphill task to penetrate and gain a meaningful market share, but is worth the effort. Secondly, the introduction of Nokia smartphones and their marketing is perceived as inappropriate and inadequate, and therefore, customers are unable to align their needs to Nokia's inventions. This advertising campaign will target such markets too.
Campaign Objectives
It is evident that Nokia Lumia smartphone have not performed well in the competitive ever evolving mobile phones market. Some factors are attributed to why Nokia Lumia smartphones failed in the market. Among them are; One, Leadership in Nokia Corporation, management was not effectively responsive to changes in technology and innovation in the Technological industry. Secondly, the Research and Development of the company was not focused; the company was oriented towards market segmentation with the release of a series of the smartphones, neglecting emerging trends and needs in the technological world. Nokia also failed to penetrate the US market which is a key player in the information and Technology industry. The aim of this advertising campaign is, therefore, to first; penetrate the US market in a year’s time. This will be achieved by setting up Nokia outlet stores in the US; secondly, the campaign is aimed at increasing Nokia Lumia brand awareness in the target market by 80% in 6 months. To achieve this, there is a need for intensive advertisement using suitable media, presence of Nokia brand in significant events in the target markets mainly through sponsorship of such events and undertaking corporate social responsibility programs. The last objective is to increase Nokia Lumia’s market share in the target countries by 15% within one year. This will be through intensive advertisement using effective media.
Creative planning
This section will analyze the competitors of Nokia, present the appropriate media for the campaign, highlight various advertising campaign strategies that Nokia Corporation should adopt among them; social media, trade shows, sponsorships, customer incentives and use of celebrity endorsement. The section also includes a budget estimate for the campaign and how progress should be evaluated.
Competitor Analysis
Advancement in Information and Technology Industry has left Nokia Lumia smartphone suffering regarding market share since 2007 with Apple's release of their first iPhone and other close competitors like Samsung, Huawei among others joining in. Nokia’s close competitors are; Apple, Samsung, Huawei, Lenovo and Xiaomi with Samsung leading regarding market share. The competitors' smartphone for instance Apple's are tailored towards customer needs and are up to date with emerging technologies. The competitors are also well established in the major markets like the US where Apple's iPhones dominate, the Chinese market which is dominated by Samsung and Huawei and the European market where Apple and Samsung have done fairly well. Nokia, on the other hand, has had problems since the beginning to penetrate and claim a share in the US market and has lost the bigger market share it once enjoyed in the European market. The Asian market is dominated by mostly local brands, and it will take much effort to get a head start with that market.
Media strategy
Media strategy is a set of action plans undertaken by a company to reach a target audience through a selection of appropriate media to achieve set advertisement objectives. For the Nokia Lumia smartphone, we choose Television and Billboards as the most suitable media.
Television Advertisement
Penetrating the US market by Nokia Corporation within a year is one of the main objectives of this advertising campaign. The target audience, therefore, needs to be reminded of the Nokia brand through suitable media Television where there is a visual display of the Lumia physical features and a brief description of the functionality of the Lumia phone. Television is also appropriate for creating awareness among existing and potential customers. This is because; most people can access and watch television even from their smartphones, and therefore it covers a wide range. Secondly, the advertisement can be run at a strategic time, for example during news broadcasting hour where the majority of people are watching, to capture a wide range of audience.
Print Advertisement-Billboards
Billboards are the most appropriate media for creating awareness and introducing a new brand in the market. This is because billboards are usually strategically placed in busy town centers where a wide range of audience can easily see them and get the message. They are also precise usually with an image of the product being advertised and so the audience can get the message at a glance. Nokia should adopt this and place the billboards at roundabouts of busy roads and strategically at the center of busy towns in the target countries. The phone images on the billboards should be exciting to attract the attention of the target audience.
Social media campaign/strategy
Social media has become an important platform for advertising because of the number of people using any of the major platforms; Facebook, twitter and youtube daily. The number of activities on these platforms is also endless.
Facebook has the largest number of active users, at 250 million. The target market for trendy smartphones is between the ages of 18-35. This age group needs a smartphone that can serve multi-purposes; communicate, surf the internet and use it for entertainment, all at the same time. This same age group is among the250 million active Facebook users. Nokia Corporation can, therefore, create a Facebook page, up load images of their various smartphones models and update the existing and potential customers about their various smartphone and answer queries raised. From the same page, it can direct customers to where to get their products, in this case, the Nokia Lumia smartphones.
Twitter is effective because one; the company is in control of the tweets. The company posts the tweets, and the customers respond. Second, Twitter is fast and real time. The company can give clarifications about product features and functionality. For this advertising campaign, Nokia Corporation can create a Twitter handle and use it to create awareness among existing and potential customers for their smartphones. They can also protect their brand from negative criticism through Twitter.
YouTube is appropriate where practical illustrations are needed. Smartphones can be complex to operate for first-time users and therefore Nokia can upload a video illustrating how to use their Nokia Lumia smartphones for such customers. The smartphone features can be described in detail in such videos too. This will increase brand awareness.
Sales promotion is a series of activities that are geared to enticing customers to buy a product or service and the retailers, wholesalers and salespeople to sell the product or service. The activities target the customers, retailers, wholesalers and the salespeople wholly. This strategy can take the form of coupons and competition for direct consumers, event sponsorship and trade shows for the retailers and wholesalers and commissions for the salespeople. Nokia could adopt these strategies to achieve the campaign objectives.
Public/Customer Relations
Public relation refers to the relationship between the company and the general public. General public is composed of customers, employees, government, shareholders and the rest of the community within which a business operates. It is important for a company to build and maintain a positive image for the public. For instance, good customer relations is achieved by giving excellent services, quality products, customers being treated equally regardless of class and their needs being met promptly. Such customers can get referrals for the company. Nokia should adopt this strategy starting with the US market where the corporation has never understood the customers' needs to the rest of the target market countries.
Trade shows
Trade shows can be applied in creating awareness among customers by showcasing the company’s products in organized events. Nokia Corporation can organize an event for example for awarding customers with small tokens like T-shirts branded with the Nokia Logo, Caps, and even a few phones. But before that, the company can hire an advertising truck and go around major towns of target market countries inviting people to come for the event and tell them about the prizes and gifts. This will attract a large audience that will learn about Nokia.
Sponsorships
Sponsorships can be costly, but if it can achieve the set objectives, it is worth every cent spent. Nokia can sponsor a national football team in the target country, a fundraiser towards a good course like helping the less fortunate, by donations. By doing so, the Nokia brand will gain awareness among the nationals of such a country who are the customers.
Use of incentives to create customer value
Nokia needs to work on regaining the customer loyalty that they once had. The company should also focus on getting a new customer on board. It should employ the use of incentives that are complementary to the Lumia smartphones and reward systems for repeat buyers. Discounts as a form of incentive are sometimes associated with low quality of a product and therefore Nokia should try and avoid that especially in the US market where they had quality issues.
Celebrity advertising strategy
Celebrities can be used when introducing a new product in the target market. For instance in countries where Nokia Lumia phones have not been sold before or have done badly regarding sales, Nokia can use a famous favorite personality of that country, for example, an athlete, an actor or musician, to introduce their Lumia smartphones. Such strategy will be successful because celebrities are good at convincing and are envisioned as idols by the audience. Goods endorsed by celebrities are perceived credible and authentic by the customers familiar with the celebrity.
Budget/Cost Estimates
Budget estimates will outline the expected costs for the advertising campaign.
Source: Author
Evaluation
After the four month period of advertising campaign elapses, Nokia Corporation will measure the performance of the campaign by comparing the set objectives and results so far achieved.
6. Advertisement
Figure 1: Billboard Advert
Source: "Nokia Lumia Billboard Advertisement - Google Search."
Figure 2: Billboard Advert
Source: "Nokia Lumia Billboard Advertisement - Google Search."
Figure 3: TV Advert
Source: "Nokia Lumia TV Advertisement - Google Search."
Figure 4: TV Advert
Source: "Nokia Lumia TV Advertisement - Google Search."
Conclusion
This paper sets an advertising campaign plan for Nokia Lumia smartphones for four months. The highlights the reasons that may have contributed to Nokia smartphones not making it in the competitive market and presents a list of advertising strategies that Nokia can employ to regain its previous share of the market in the mobile phones market. A cost estimate is also presented for the company budget for the campaign and after the campaign period, Nokia can measure the success of the campaign by comparison campaign objectives and results achieved.
Works Cited
"Nokia Lumia Billboard Advertisement - Google Search." Google.com. N.p., 2016. Web. 15 Apr. 2016.
"Nokia Lumia TV Advertisement - Google Search." Google.com. N.p., 2016. Web. 15 Apr. 2016.
Bouwman, Harry et al. "How Nokia Failed To Nail the Smartphone Market". Research Gate. N.p., 2014. Web. 15 Apr. 2016.
Ronald Lane, Karen Whitehill King, and Tom Reichert. Kleppner's Advertising Procedure, Eighteenth Edition. Prentice Hall.2011. Print
