Environmentally Friendly Nokia 2013 GR Series
EXECUTIVE SUMMARY
This marketing plan outlines the description, features, and aims and objectives of the new and revolutionary series of Nokia GR phones. The paper repositions the first Nokia GR 2013 environmentally friendly phone in the Australian market. Nokia is one of the leading, if not the first, company to introduce environmentally friendly smartphones in the market. With its international influence, Nokia intends to enhance environmental sustainability with the GR series smartphones.
Table of Contents
EXECUTIVE SUMMARY
2
INTRODUCTION
4
Nokia GR 2013 Overview/ Features
5
SITUATIONAL ANALYSIS
6
Internal
6
SWOT Analysis
6
GOALS AND OBJECTIVES
9
TARGET MARKET AND SEGMENTATION
10
Identifying segmentation variables
10
Profile market segment
10
Positioning
11
MARKETING MIX
11
Product
11
Positioning
12
Place
12
Price
13
Promotion
13
EVALUATION AND CONTROL
14
ACTION PLAN
14
Budget
14
CONCLUSION
16
REFERENCES
16
There has been increased focus on robust research initiatives and product development that support the green policy initiative. Organizations, businesses, and environmental agencies are pushing for the adoption of environmentally friendly products. One of the most influential industries is the mobile phone manufacturing industry because it utilizes fossil fuels and hazardous materials during the manufacturing process (Abell, 2009). Nearly half of the people in the world possesses a mobile gadget. There is an increasing global need to develop mobile phone products that minimize the use of sensitive materials in the environment in its manufacturing and operational processes. Equally, other production processes such as packaging, stewardship, and product performance ought to be environmentally friendly.
Nokia, one of the leading manufacturers and distributors of mobile phones and networking equipment, is concerned with environment sustainability and social impact (MarketLine Report, 2012). With its unique and dominant position in the industry, Nokia is committed towards bringing a positive environmental change in the globe. To the company, environmental sustainability enables Nokia to deliver real difference to the people and the planet (Nokia, 2012). Given that climate changes, and depletion of natural resources are some of the leading world challenges, integrating environmental sustainability in the manufacture and distribution of mobile phones becomes critical (Nokia, 2012). On the other hand, environmental initiatives by the company are aimed at bettering human lives. Based on these goals and objectives of environmental sustainability, Nokia aims to introduce a series of environmentally friendly phones. The first smartphone series is the Nokia GR 2013 series that will be available to consumers by January 2013.
Nokia GR 2013 Overview/ Features
Most innovative and revolutionary innovation.
Has the capabilities of a tablet and the features of a high end smartphone,
built with PureView Environmentally friendly technology and
Runs Windows 8 mobile operating system.
Wide 4.8” screen sensitive touch screen.
Innovative in every sense of the description, entertainment, reading, gaming, browsing, or video recording.
PureView Technology ensures that applications consumer less power but still be able to display superbly crisp pictures.
The Quad-core Snapdragon™ S5 Processor for improved speed performance and extraordinary graphic display
The 10MP HD Carl Zeiss lens,
All these features are supported by the environmentally friendly technology.
SITUATIONAL ANALYSIS
Internal
Nokia was one of the first mobile to combine gaming capabilities into mobile telephony. In 2003, the company introduced the Nokia 1100 which sold more than 200million units worldwide. Since then, fierce competition from other such as Samsung and Apple has challenged the position of Nokia in the market. At the moment Nokia is in race to catch up with the new age of applications, smart phones, software and tablets.
SWOT Analysis
A SWOT analysis is a systematic tool used to analyze the internal and external business environment (Armstrong, 2006). SWOT stands for strength, weaknesses, opportunities and threats. In this analysis, we will examine Nokia’s strength that accrues form its scale of operation and the resultant economies of scale. We will also address the company’s in apparent inability to catch up with technological change and come up with new innovative products (Kotler, & Keller, 2009). Finally, this paper will examine the opportunities available to Nokia in the Australian market and the issues that pose a threat to the business success of the company.
Strengths
Weaknesses
Nokia has a strong brand name. The company has a long standing tradition of quality and value for their clients. This has ensured the success of the company since its incorporation in 1871.
Nokia is a huge multinational company with locations in 120 countries and a staff of about 120,000 employees. This means that the company is physically present in most of its major markets.
Nokia has strong financial base. The company has an operating income of € 1.073 and an asset base worth € 36.31 billion. In 2011, the company had total revenue of € 38.659. The can afford to undertake research and innovation without risking its financial position.
Nokia has a variety of mobile products that cater to the needs of a wide range of customers. Nokia products are available for the basic mobile phone user to the discerning high end business executives.
The company has been able to cut down its production costs by moving their production units into Asian countries where labor costs are lower. This has allowed Nokia to ship more mobile phones to global markets and sell them at competitive prices due to lower production costs.
Nokia structure prevents it from reacting quickly to product changes. When Apple introduced the iPhone and Samsung introduced Galaxy, Nokia did not respond with a competing product but continued to market their existing portfolio. It is only in 2012 that Nokia has tried to catch up with the smart phone bandwagon through a partnership with Microsoft.
The company had invested billions in the other range of products which are quickly becoming obsolete technologies. Nokia mobile phones such as the N-series and the E-series were designed to be the best business phones in the market. However, with the advent of smart phones, notebooks and tablets, the Nokia phones cannot compete.
Nokia has not yet established a clear strategy for the future. The company is still relying on its past success to retain its market share. This has seen the company shares drop from US$ 40 in 2007 when the company was at its peak, to US$ 3 in 2012. The strategic decision to partner with Microsoft is weak because it is known that Microsoft is working on its own mobile devices which will compete with Nokia in the future.
Opportunities
Threats
The smart phone market is relatively new and open to many more inventions, innovations and changes.
Nokia can of its brand name to create a range of products that guarantees the quality associated with the other range of Nokia products.
The market eager to sample new products that promise a better user experience, greater functional speeds and value for money.
The company has unveiled a youthful marketing strategy that targets young mobile users. The Nokia Lumia is being marketed as the best phone for the adventurous and social youth who likes to stay connected with friends on social media and interacts with them through quality digital photos. The new marketing campaign will help Nokia stand out from the competitors and draw the attention of the target market segment.
The Australian market is already dominated by Apple and Samsung which lead the revolution of mobile telephony in terms of product quality, customer loyalty and market share. It is possible that Nokia may not be able to penetrate the Australian market unless it develops a cutting edge technology that will outdo the competitors. At the moment, the mobile giant is playing chase in the highly competitive and dynamic market.
When Microsoft finally launches its mobile device, Nokia may lose an important strategic partner. It is also possible that Nokia could lose some of its loyal customers who have no faith in Microsoft products.
GOALS AND OBJECTIVES
The Nokia GR 2013 is a revolutionary mobile phone device that will launch in the Australian market. Nokia is hoping to use this product to reclaim its position in the mobile devices market. The target market is the young population that is on an upward mobility. The phone will combine efficiency, functionality and style in one sleek body. Nokia will attempt to curve out a niche for itself in the market by strategically taking control of the most promising market segment, which is the youth aged between 18-35 years.
Objectives
Create a marketing campaign that will last for 3 months and which appeal to 80% of the target market.
Take control of 30% of the smart phone market within the 6 months of product launch.
Boost the overall company performance in the devices and services segment by 2% the end of 2013 financial year.
TARGET MARKET AND SEGMENTATION
Identifying segmentation variables
The variables that are used to segment the market include, demographic, geographic, and psychographic. Geographic involves the country, region or state that the product will be marketed. Demographic factors include income level of target market, occupation, gender and age. Psychographic factor include attitude, lifestyle and opinion of the target market.
Profile market segment
The profile for Nokia’s GR 2013 customers will consist of the following geographic, psychographic, and demographic.
Demographics: Gender (both male and female); Age (between 20 and 50 years); Occupation (informal workers, professionals, and students); Income levels (above $20 per day)
Geographic: customers in China and India since these two markets still remain Nokia’s largest markets for sales of its products. Similarly, with the potentially huge consumption of Nokia products in the two markets there is need to ensure environmental safety and sustainability. The total target population for the new Nokia’s GR 2013 is estimated at 500 million within the immediate geographic target.
Psychographic: The phone targets customers who are sensitive to the environment. There is also a growing need for electronic devices such as mobile phones to be manufactured and designed in a way that contributes to environmental sustainability.
Evaluation of the target profile
The profile has been selected based on its sales potential, competitive situation, and cost structure. The profile is projected to lead to high sales revenue, increased market share. The company notes that professionals and students are more likely to be sensitive to environmental friendly goods compared to the customers with no higher education.
Positioning
In order to create an image of the product that sticks in the minds of the customers, the company has to employ positioning strategies. Consumers will be able to understand the uniqueness of the product, Nokia GR 2013, when compared to other similar products from rival companies. Therefore, in order to effectively position the product in the market, the company will target all segments groups of the market.
MARKETING MIX
Product
The phone has impressive features that offer solution to various needs of consumers. The charger has low standby powers with a whole range energy saving features. The phone is manufactured using recycled metals and bio plastics. This makes it free from PVC, BFR, and RFR. The display is OLED and the charger is highly efficient. The phone offers users an in built user guide avoiding the need for printed guides. With these entire eco friendly features, the phone also has other impressive social features that allow users to connect with their families, friends, and workmates. It has in build camera, music player and numerous applications for social media.
Positioning
In order to create an image of the product that sticks in the minds of the customers, the company has to employ positioning strategies. Consumers will be able to understand the uniqueness of the product, Nokia GR 2013, when compared to other similar products from rival companies. Therefore, in order to effectively position the product in the market, the company will target all segments groups of the market.
The product will come with a two year warrantee which implies the level of confidence the company has on the product. Users experiencing problems with the phone are allowed to free servicing for two years as long as the nature of the problem fits within the term and conditions of the warrantee.
Place
The new Nokia GR 2013 will mainly be distributed through the company’s official channels of distribution. The product will be made available in all dealer outlets and Nokia centers within the target market. In addition, different retailers, vendors, and suppliers will be used in order to reach to remote areas of the target market. The phone will also be made available for online purchase where consumers can make orders online and expect free shipment to the point of their convenience. However, delivery of goods purchased online, according to the company’s policy, is limited to residential homes and offices.
Price
Pricing will take into account the market rates. It will be kept, bearing in mind competitor’s price. The company will take into consideration the needs of different market segments and settle at a price that is favorable to their needs. Alternatively, the company will have the option of making a line of products within the Nokia GR 2013 series which will target different segments of the markets. Therefore depending on the needs of a particular market segment, each line of product will be priced differently.
Promotion
Promotion is an essential element of marketing. It is concerned with efficient and effective communication of decisions of a marketing strategy. Promotion helps to influence the perception of the target consumers in terms of facilitating exchange between the marketer and the consumer. Some of the promotional strategies to be used to market the Nokia GR 2013 include:
Advertising on TV, Radio: There will regular and timely advertisements running on traditional media to communicate the introduction of the new phone. The marketing team will target popular shows with high viewership and listenership in the target geographic locations to run the advertisement.
Direct selling: this will involve selling the phone direct to consumers without involving the use of retail stores. During the launch of the product in all the target market, consumers will have the opportunity to purchase the products directly from company.
Social media marketing: the company will interact with consumers directly through social media. Information about promotions and offers will also be aired on social media. Social media offers a cheap platform for promoting the product. There is little cost involved in interacting with customers through social media.
Different offers: the offers work well especially through radio stations where listeners get to win new handsets for participating in the offers.
Motivating the channel i.e. distributer margin
Free sims cards and memory cards for those who purchases any Nokia GR 2013 within the first three months of its inception into the market.
EVALUATION AND CONTROL
Projections are to be forecasted on the basis of marketing plan, whether it is implemented in a proper way or not, whether all the process is going according to our estimations or our planning. Keen eye should have to be on the implementation of the plan. The results can be known by seeing whether we have achieved the estimated target or not. As Nokia is a well establishes brand, its new strategy of Nokia mobile networks will be at a great success. Estimated market share will be 25% within a year
ACTION PLAN
Budget
An estimated $100000 will be required to market the product. The fund is expected to cover the cost of regional and national campaigns for promoting the product. Advertising campaigns will run through national televisions and radio stations in both countries. This is expected to go on for at least the first six months as Nokia targets record sales within this time frame. The first six month has also been dedicated to intense brand awareness and recognition in the target market. Through the campaigns in the mainstream media and social media, the phone is expected to popular among consumers in the target market. Additional cost will be required to market the phone in other markets such as African and Europe.
Implementation and schedule
Campaign title
Going green with Nokia GR 2013
Campaign duration
6 months
Campaign objectives
Introducing an eco-friendly Nokia phone
Marketing activities
Deadline
Cost
Product launch
I month
Hiring staff
A month before the launch
Evaluate campaign
Continuous, it ends as the campaign ends
Tv advertisement
Begins a week before the launch to prepare the customers and runs throughout the campaign
Newspaper advertisement
Begins a week before the launch
Sales promotion
Begins after the launch
Distribution
Begins after the launch
The new strategy to diverse mobile devises is projected to be of great success to the company. Introducing an environmental friendly device is in line with the company’s objectives. Nokia will continue to be the leading manufacturer of mobile phones whole over the world. Its new strategy of diversification in Nokia Mobile Network will be at great success. Other than that, Nokia’s strong brand has ensured that it attracts loyalty from customers thereby strengthening its market. Returning customers will also be attracted by the ecofriendly technology and the Nokia GR series of smartphones. There is no doubt that the Nokia GR 2013 will lay the revolutionary framework for other mobile phone companies to emulate in their quest to attain environment sustainability (Nokia 2012).
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