imr assignment_group2_nokia marketing stratergy

8/7/2019 IMR Assignment_Group2_Nokia Marketing Stratergy

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NOKIAS STRATEGIES TO

MAINTAIN MARKET SUPREMACY

SUBMITTED BY :

GROUP 2JYOTI PRAKASH CHOWDHURY

PEEYUSH THAKURRENGARAJAN KOTHANDARAMAN

SUPRIYA SEN


2/15

Why Nokia is a Market Leader

A strong and well established brand knownfor this quality products and longevity

Strong Distribution channel with 45% of its 2

lakh retails outlets in rural areas of India.

Strong financial position of the company with

a good balance sheet and impressive ROIC &

ROC.

A company which leads by innovation &continuous improvement


3/15

SWOT Analysis of Nokia

STRENGTH

1) Strong Corporate Brand Value

2) Superior Design, Quality ,technology & Longevity

3) Backward Compatibility features

4) Effective advertisement and market communication

5) Not only a tool for business but being an item for everyday

convenience

6) Better Outhouse Contracts with Big players like Microsoft , HP

7) Better Touch with the Market

8) Driven by Innovation & Differentiation

WEAKNESS

1) Unable to identify challenge from local players

2) Design to market takes more time

3) Weak Marketing Strategies

4) Limited promotion of new products in mass events like

IPL , bollywood events .

5) Less presence of products suited for youngsters &

women.

OPPORTUNITIES

1) Exploring Emerging markets (SAARC, Africa ,Brazil)

2) Online Personal Storage and social portal (OVI)

3) Utility Computing (Nokia Maps)

4) Dual SIM, Dual Network

5) Targeting Youth segment & women in rural market

6) Value for Money for customers

7) Lifestyle Marketing and Segmentation

8) Build Worldwide supplier Network

9) Pre-empting Competitors with innovative products

10) 3G enabled applications

11) Building of eco friendly mobiles

THREATS

1) Complacency

2) Cheaper mid-range mobiles from competitors

3) New competitors with different skills and potent brands

challenge

4) Major Competition in Smart Phones category from

Apple, HTC & RIM ,Micromax

5) Potential threat from Microsofts entry into mobile

telephony


4/15

Why Market Share is falling

Nokia market share in India has fallen from 64 to52.2 %.

Possible Reasons : Poor Marketing Strategies in comparison to competitors With falling telecom prices ,there was no handsets in the

dual sim /dual network to match the customer demands. No handsets to match the feature rich phones from

competitors in the low price spectrum

Limited promotion /sponsorship of Nokia products in massevents like IPL ,IIFA, FIFA etc

Samsung Corby series and Micromax MTV series took

away major youth market from Nokia Nokias strength of Value for Money is being eaten away

by local players like Micromax , Videocon, Karbonn, Fly

Major competition in the high end spectrum from Apple ,Blackberry .


5/15

How Micromax grabbed Market Share from Nokia

Tapping the New Market and Hidden Consumer Needs Targeting Youth and Youngsters with Games Phones ,MTV Music Phone and MTV

roadies Phone Thrust on Dual Sim / Dual Network (GSM/CDMA) phone markets Tapping the huge rural markets with low priced phones Tapping new markets in SAARC,Middle East , Africa and Latin America

Strong Supply Chain Management Creation of a strong distributor, retailers and logistics network Huge margins to dealers Discounts on advance payments eased payment collection

Targeted Low price spectrum Features rich phones at affordable prices Affordable QWERTY phones ,Double Sim

First in the Market & Major Differentiation factors First 30 day battery stand by phones with 1800mAh battery The First Gamolution Phone with motion sensor games & gravity sensor First Dual Sim/Dual Stand by /Network Switching (GSM/CDMA)phones

Brand Building Promotion and brand recall through IPL , Cricket Series & Hindi Movies Ads in MTV,Facebook,Gravity,EEZPad Akshay Kumar as Brand Ambassador & Twinkle Khanna for Bling phone campaign Promotion in major Bollywood events like IIFA


6/15

SWOT for Micromax

STRENGTH

1) Ability to identify hidden consumer demand2) Dual SIM /Dual Network phones

3) Features rich phones in lower price spectrum

4) Major Brand Building & Promotion

5) Major first mover advantages in Youth segment

6) Capturing dealers & retailers with discounts &

other tactics.

7) Flexibility of pricing strategy

8) Better response to local need

WEAKNESS

1) Quality & Longevity not at par with Market leaders

like Nokia , Samsung , etc

2) Weak Brand image in the market

3) Limited presence in Global market

4) Less experience in the handset industry

5) Lack of extensive research and technology

6) Customer service and retention

OPPORTUNITIES1) Huge untapped opportunities in SAARC , Latin

America & Middle East

2) Expansion in the Youth segment with more music

and online portal domain

3) Rural markets

4) Collaboration with Major players in other countries

THREATS1) Major threat from Nokia entering the youth segment

2) Threat from Global players to introduce feature

rich lower price phones

3) Loss of differentiating factors from Competitors


7/15

How Nokia can regain lost Market Share

Revamp Marketing Strategies

Build on the Strength factors Innovation ,Quality , Technology & Customer Service

Explore new market niches Dual SIM , Youth

Segment , Gaming Phones Target the rural women

Collaboration with NAVTEQ to providecompetitive advantage in location based

services Utilize OVI platform to the fullest to grab

market share


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Marketing Strategies for Nokia to

regain Market Supremacy

Customer Preferences

Product Portfolio & Quality

Time to Market

Marketing Strategies

Rely on the Four Pillars ofMarketing


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Study Consumer Preferences

Design Mobile phones

based on the category& preferences ofCustomer .

Following are the

category of Customersbased on usage and

attachment to themobile phone

Uninvolved

New Life Harmony

Voice as a Link

Adopters

Intense

Forerunners


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Increase Customer Satisfaction

AggressivePricing

Focus onHandset

Manufactureonly

EnhanceProduct

Portfolio

IncreaseDistribution

Channels

AdjustPreferencesfor specific

markets

IncreaseCommitmentto Emerging

Markets

EnsureAccountability

and Quality

CustomerSatisfaction


11/15

Increase Product Portfolio & Quality

Low Price Spectrum

Increase low price

mobiles with highfeatures

Increase QWERTYphones ,Dual SIM in Lowprice

Maintain high qualityagainst price

Medium PriceSpectrum

Increase the range ofproducts and features inthe music , gaming &smart phones

Use OVI , Online portal tointroduce new features

High End Phones

Introduce handsets to

match againstcompetitors like Apple ,Microsoft

Extensive research andinnovation to capturemarket share from Apple& Blackberry

Expand into Enterprisesuited smart phones


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Improve Time to Market for Nokia

Improve understanding ofCustomer Needs

Optimize ProductDevelopment Process

Better Supply ChainManagement

Entry into Market based onProduct life cycle

Time to MarketStrategies


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Nokia -Marketing Mix for Success

Product

Improve Pioneering

Increase Sophisticated Application interface

Improve Customer Multimedia

Price

Enter Low price spectrum

Enable High features for optimum price

Determine proper price strategy to compete with rival products

Place

Local Manufacturing Facilities

Increased Distribution Network

Increase owned stores

Brand &Promotion

Sponsoring Events related to Bollywood and Cricket

Increase brand endorsements

Distribution

Enter new JVs with other manufacturers

Strategic Alliances with local service providers


14/15

Reality Check

A reality check on whether the necessary stepshas been taken by Nokia to regain supremacyhas given positive results :

Nokia is launching Nokia Ovi phones to match the

killers Andriod from Google and iPhone from Apple

Nokia X5 series launched to capture youth imagination

Nokia to launch phone to capture rural womensegment

Nokia is campaigning online against cheap phones of

Micromax , Fly ,Videocon etc

Nokia plans to kill local players by invading Dual Sim,Dual Network ,High features low price phones


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Thank You !!

imr assignment_group2_nokia marketing stratergy

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