Nokia
Nokia, headquartered in Keilaniemi, Espoo, Finland, is a global growing communications organization that concentrated on procuring services and products in the IT, wireless, and wired telecommunications industries. The span of its employees’ recruitment exceeded one-hundred and twenty thousand across the globe and its yearly income as of 2008 was fifty billion euro. The current production of Nokia entailed a broad array of smartphones and mobile phones which is supplementary to a handful of fixtures. Moreover, Nokia launched digital map information, internet, and navigation services that are certainly the value addition in the global marketplace.
Fredrik Idestam established his initial timber pulp company at the Tammerkoski Rapids in south-western Finland in 1865. Fredrik established another company after three years by Nokianvirta River which gave an impression to him to name his company with Nokia Ab. Nokia improved its engagement in the telecommunications industry throughout 1970 with the production of radio telephones for the Finnish Army in order to address immediate responding issues. Nokia launched its first handheld mobile phone in 1987 for GSM with the title of Mobira Cityman 900 that set the benchmark for the Europe in the digital mobile technology. Nokia underpinned its position in the mobile device market from 1998 to 2012. Nevertheless, Nokia experienced a steady decrease in share of market in past some years due to the governance of Google and Apple’s operating system in the smartphone market. The share price of market was $3.42 till March, 2013 revealed a radical decrease compared to 2008 when the International Market Index (ADR) of Nokia was $25. The fundamental smartphone operating systems (OS) of Nokia till February 2011 was Meego and Symbian, however, Nokia declared its preference over utilizing Microsoft’s Windows Phone OS as its fundamental smartphone podium and secondary franchise platform as Symbian. It was a Nokia’s strategic decision to accept Microsoft’s software as a distinguished and modernized smartphone characteristic to gain attention of consumers in the market of iPhone and Android mobile sets.
Market Saturation
The race in industry of mobile phone is certain globally, and the Nokia Company experienced complexity facing competition in the North American, European, and Asian marketplaces. The fundamental danger for the strategies of Nokia Company is market saturation. For example, more than ninety percent of US individuals are mobile phone users according to and the saturation of smartphones occupied fifty percent and estimated eight percent by August 2014 according to. The saturation of market significantly associated with most of the economies that hindered growth of Nokia within these economies. Hence, it is imperative for Nokia Company to execute race in fresh markets where there is no existence of market saturation and contain growth opportunities. For instance, South American, Middle East, and Africa, and it needs to utilize innovative technologies in order to ensure desired competition in the saturated markets.
Partnership with Microsoft
Nokia, in order to ensure the alignment of short and long-term objectives, has to underpin its bond with Microsoft, and it is possible through the assurance of reliable and strong dialogue between both organizations and it is necessary for Nokia to pay attention to the arrival of expected dangers from Microsoft. The provisions in the contract between the parties enable Microsoft to work together with additional vendors of hardware accessories. The development of Windows smartphone is attributable to the Microsoft’s exterior partnership that exposed a danger to the Nokia’s Lumia product. The stability in Nokia’s race in the smartphone industry is possible through its independent efforts in relation to the software platform of Microsoft. Moreover, Nokia has to ensure the delivery of modernized hardware functions and characteristics to distinguish its smartphone products from competitors.
Innovation
The incorporation of ongoing modernization of technology into the systems of a company is mandatory in order to ensure race in the global marketplace effectively. Nokia considers this phenomenon and approaches markets in more than one-hundred and fifty economies of the world including majority of telecommunication industries that deal in smartphone, mobiles, tablets and, GPS etc. The global operations of Nokia in most of the industries and market raised issues, and it found difficult to address fresh opportunities and market demands. There is a need for Nokia to forecast trends in markets, execute environmental scan to locate progressive technologies and existence of innovations while delivering the same in a timely manner to end consumers after successful incorporation of unique, and modernized variables in its products.
SMART Objectives
The objectives of Nokia are to invent tremendous mobile products that allow individuals globally to experience the incredible life offerings, and they aspire to attain this in an improvingly diverse and competitive setting. The Nokia’s SMART objectives are as follow:
Specific
Nokia focused on retaining the current market leadership in its markets worldwide. The basis was the undisputed race in the fundamental markets and the SWOT Analysis as well revealed the improved race in the segment specifically with the help of expanded assortment strategy of Sony, LG, and Samsung.
Measurable
Nokia’s marketing plan is significantly measurable as it promoted customer loyalty and satisfaction while maintaining market leadership. Nokia offered online, and telephone services in the UK for customer satisfaction, whereas, in additional developing economies of the world, it offered customer services at specific Nokia outlets. Nokia also launched “Nokia Club Card” that improved customer loyalty and the customer’s feedback on this card showed the level of customer satisfaction .
Achievable
The objective established for sustaining market leadership was achievable. The established markets of Europe, US, and UK, the influence of “bringing entertainment to life” was significant in transitioning the status of Nokia to a telecommunication producer that procures comprehensive entertainment .
Realistic
The Nokia’s marketing plan objective was highly realistic as it snatched the Motorola’s Leadership in 1995. The success of marketing plan was attributable to the Nokia’s SWOT analysis. Nokia’s fundamental focus was to give global markets a unique experience; therefore it launched affordable mobile phones in the rural markets of China and India and, high end products to rich youth. The marketing communication objective of Nokia is realistic in the context of SWOT analysis.
Timed
Nokia examined the market trends and penetrated into the market through timed strategies. For example, Nokia declared:
- Cost-based marketing strategies in the year 2001
- Customer Friendliness Strategy in 2005
- Nokia comes with music Strategy in 2008
- Bringing entertainment to life Strategy in 2010
All above strategies were timed and they all reflected the dynamic customer needs and their expectations.
A partnership between Nokia and Microsoft established in the month of February 2011 as per the declaration of Mr. Ballmer, and Mr. Stephen Elop, the CEOs of Microsoft and Nokia respectively. The central objective of this strategy is to allow windows platform to behave the foremost smartphone OS for Nokia. The transition from Symbian to windows software platform for their smartphones established just after the launch of Lumia collection by Nokia.
Google as well approached Nokia before its association with Microsoft and encouraged it to accept Android platform for their smartphones. Nevertheless, Microsoft CEO’s felt that it governs the US market and numerous opportunities are available for Nokia to grow in North American markets through discouraging Android OS but welcoming windows platform, Nokia effectively distinguishes its products .
Integrated Cost Management and Diversity
Nokia launched affordable smartphones through employment of integrated cost management and diversity strategy in the developing market and its diverse products in established markets. Nokia gained leadership in race through a collaboration of mid-tier offering and its integrated cost management and diversity strategy to receive attention of iPhone and Android users. Nokia as well established production bases across numerous economies of the world that revealed its domestic availability which is highly desirable for collaboration with local operators for decreasing airtime fares for customers. Additionally, Nokia formed a tough distribution system to approach its dealers effectively worldwide and interacted with them for the minimization of utilization cost and cell phone possession.
Nokia distinguished its range of Lumia smartphones from Google’s Android, Apple’s iOS, and location-based services that subsumed visual probe applications and navigation with the launch of Nokia City Lens . Nokia launched products that received fulfillment of a broad array of customers ranging from expert to gaming, best luxury to requirement, low to high income, and fancy to stylish.
Aggressive Acquisition
Nokia acquired Sega, Navteq, Cellity and, Symbian OS as the requirement of its strategy. These companies are highly projecting since Nokia’s acquisition of over forty companies worldwide from 1997. Sega in 2003 nurtured game console of Nokia, Navteq strengthened Nokia’s mapping data that revealed procurement of advanced authentic information on the grounds of user’s location. Nokia improved its capabilities and technologies with the help of its acquisition strategy and allowed it to inject modernized, active, and distinguished products into the markets worldwide.
Products Target Markets
The customers demand unique functions in the cellphone in addition to its general properties. Consumers appreciated third-party applications and considered as modernized characteristics in the smartphone market which enabled Nokia to accept MeeGo-powered smart phones from Symbian OS due to its incompatibility through third-party creators in generation of mobile applications in 2011. The smartphone market is in the process of continuous growth and children showed their great inclination towards their up-gradation by acquiring advanced technological products. On the other hand, the senior groups of the market find them in an excellent monetary background; there are opportunities for Nokia to produce smartphones at a substantial rate in order to address the demands of senior citizens .
Marketing Communication Campaigns
Nokia’s marketing communication plan relied significantly on its brand image and name and is subject to the compliance of multi-colored country-wise strategy towards marketing. The market leadership retention, customer’s satisfaction, and underpinning customer’s loyalty are the fundamental variables that encompass the marketing communication plan of Nokia. Nokia’s marketing communication campaigns emphasized on its tagline “connecting people” and its brand name “Nokia”. The basic focus of the campaigns was to improve the links with consumers with the help of communication and in recent period, it focused on entertainment as part of its marketing communication campaigns worldwide. This Nokia’s transition in its marketing communication campaigns was attributable to the growing trend of ‘iPhone’ cell phones by Apple that reborn the entertainment industry of cell phones and as well the significance given by Sony through launching a range of cell phones as part of their entertainment strategy.
Conclusion
Nokia has the dominant position in majority of the markets worldwide and is currently receiving improved race from numerous mobile producers. It is imperative for Nokia to come up with a marketing strategy for every fundamental sector of mobile users in order to effectively address the race. Nokia experienced substantial race governance in the domain of mobile phone production worldwide due to numerous factors. The main leading factor of Nokia is its competence to produce customized cell phones, its brand identity, economies of scale, and establishment of its joint ventures. Nokia has to bring particular goals to its groups and employees as element of SMART objectives to maintain the current dominancy in market worldwide. Nokia has to strengthen its brand name and image in the market for addressing the race from the low cost producers of China and India. Nokia’s influencing marketing strategy with the launch of Windows Phone Lumia that significantly gained tremendous brand value and extensive appeal in the global market. The status was attributable to the Nokia’s broad distribution and sales network, attractive and simple designs, and its reliability and user-friendliness.
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