marketing communications plan for 'via nokia

Marketing Communications

Connecting Sound viaNOKIA

Marketing Communications Plan for the launch year of new Nokia hi-fi

products.

Presented by Katerina Hejralova

Group project

12th December 2008

©Katerina Hejralova

Executive Summary

In the first part of the report, an overview of the microenvironment of Nokia will be given.

Nokia, being a well-established organisation on the telecoms market, has been chosen to be

the company that will enter the audio hi-fi market. Furthermore, current political, economical,

socio-cultural, technological, environmental and legal aspects in the UK will be identified.

This all will be viewed by exploring the various factors, which are affecting the audio hi-fi and

the consumer electronics market in general.

Further to the environment scanning, while especially taking into consideration the

microenvironment, and researching the secondary data, it was possible to identify the

opportunities in the market. Accordingly, the new audio hi-fi range was developed, which

Nokia would launch in October 2009 and which would cover the gap in the market.

However, before making any changes in the market place, really clear marketing and

communications objectives had to be identified. Only after that it was possible to continue

with the statement of the strategy, which would introduce the target audience, and would

clarify the activities and communications tools used within the launch year. Nevertheless,

these activities will be broken into details of how, when and how often the allocated

communications tools would be used.

Moreover, the activities will be carried out by people, who will need to use the limited

resources, such as money and time, to successfully launch Nokia’s new audio hi-fi range-

viaNokia. Accordingly, an extensive examination of the 3M will be carried out.

Last, but not least a critical control plan will be given. This will provide the reader with an

idea of why Nokia always needs to remain on an alert position, by continuously questioning

about the ”what-if...” aspect of any kind of planning.


Table of Contents

Table of Contents

1.0 Introduction Page 5 2.0 Situational Analysis Page 6 2.1 Microenvironment Page 62.1.1 The Company Page 62.1.2 The Suppliers Page 72.1.3 The Customers Page 82.1.4 The Publics Page 92.1.4.1 Media Publics Page 92.1.4.2 Non-Government Publics Page 92.1.5 The Competitors Page 102.2 Macro-environment Page 122.2.1 Political Page 122.2.2 Economic Page 132.2.3 Demographic Page 132.2.4 Technological Page 142.2.5 Environmental Page 162.2.5.1 Electricity Usage Page 172.2.5.2 E-Waste Page 182.2.6 Legal Page 182.2.6.1 British Employment Law Page 192.2.6.2 British Business Law Page 192.2.6.3 Common Commencement Dates Page 192.2.6.4 British Environmental Law and other regulations Page 192.2.6.5 Associations Page 192.2.6.6 Authorities Overlooking Marketing Communications Activities Page 20 3.0 SWOT Analysis Page 21 3.1 Strengths Page 213.2 Weaknesses Page 213.3 Opportunities Page 213.4 Threats Page 224.0 Opportunities in the Market Page 23 5.0 The New Audio Hi-Fi range Page 24 5.1 Unique Selling Proposition Page 265.2 Pricing Page 276.0 Marketing and Communications Objectives Page 28 6.1 Marketing Objectives Page 286.2 Communications Objectives Page 297.0 Statement of Strategy 0 7.1 Selection of Target Markets Page 307.2 Positioning of the Products Page 317.3 Selection of Communications Tools Page 327.4 Sequence of Communications Tools Page 328.0 Tactics Page 33 9.0 Actions Page 34 9.1 Selling Page 349.1.1 Nokia’s flagship store Page 349.1.2 Tom Dixon’s store, Selfridges & John Lewis Page 349.1.3 Motivation Page 359.2 Advertising Page 359.2.1 TV Advertising Page 369.2.2 Press Advertising Page 36


9.3 Direct Marketing Page 379.3.1 Database Marketing Page 389.3.2 Direct response Marketing Page 389.3.3 Computerized Home Shopping Page 389.3.4 Product Demonstration Page 389.4 Public relations Page 399.4.1 Product Launch Page 399.4.2 Campaign ‘Green Listening ‘viaNokia’ 09.5. E-marketing Page 419.5.1 Website Page 419.5.2 Search Engine Page 429.5.3 E-Newsletter Page 429.5.4 E-Commerce Page 439.6 Viral Marketing Page 439.7 Sales Promotions Page 449.8 Guerrilla Marketing Page 469.9 Exhibition Page 479.10 Sponsorship Page 489.11 Packaging Page 4810.0 Control Page 50 11.0 The 3 Ms Page 51 11.1 Men Page 5111.2 Money & Minutes Page 5212.0 Conclusion & Recommendation Page 53 13.0 Appendix Page 54 13.1 Appendix 1 Page 5513.2 Appendix 2 Page 7313.3 Appendix 3 Page 7513.4 Appendix 4 Page 7614.0 List of References Page 77 15.0 Group Diary Page 89


1.0 Introduction

The aim for our group was to come up with a marketing communications plan for the launch

year of a new range of audio-hi products, initially including a “state of the art” turntable,

amplifier, digital radio turner, DVD/CD and MP3-player, a four-system speaker system.

Additional requirement was to add on Wi-Fi capability.

Furthermore, our group was provided with additional information stating that the chosen

base company had to be established on a customer electronics market, but had no

experience on the audio hi-fi market. However, our group had to apply the position of a

manufacturing company, not the retailer Accordingly, this made the task a little bit more

complicated, as the marketing communications plan was to be extended to large extend to

cover the most important actions for a new entry to a highly competitive market place.

The report had to include the analysis of the market situation, which was then supposed to

give an idea of the gap in the market. Further to identifying the opportunities in the market

place, the aim was to come up with marketing and communications objectives that ought to

be SMART. Then, the statement of strategy, details of targeting, tactics and action plans

were to be followed up. Also, the 3M’s were to be clearly planned. As an additionally

information, our group was given the amount of the budget for the activities taking place

within the launch year- £25 millions.

Last but not least, another crucial part of the marketing communications plan for the launch

year, was to critically control and evaluate the plan that our group came up with.


6.0 Marketing and Communications Objectives

In order for Nokia to gain a greater overview of how viaNokia should be introduced to

people, so that the new range would be accepted quicker and also to create a demand for

the range, the Company has set up a list of marketing and communications objectives. The

most important corporate objective is to position viaNokia range as one of the top 20 selling

hi-fi ranges in the UK market by the end of the 12-month-long launch period.

6.1 Marketing Objectives:

To increase unit sales of Nokia’s audio hi-fi range by 10% within 3 months from

the day of launch (20th October 2009)

To generate 500 new enquiries with first month- November- and 800 new

enquiries in December

To increase a market share by 2,7% over the 12-month-period from the launch

day

To sell 2000 units per month in the first 6 months and increase it to 5000 units

per month in the months 7-12

To achieve 45 % of the customers obtaining a coupon to make additional

purchase in the first 12 months

To increase distribution penetration from 0 to 20% within 4 months from the

launch; and from 20% to 50% from month 4 up to month 12

To build a financially reliable UK division with consistence performance in sales,

looking for a 2.5% increase quarterly from our product launch


6.2 Communications objectives:

To generate product awareness from 0% to 30% among the relevant UK target

market within 1 month prior to launch (with pre launch advertising activities), with

a view to increase this up to 55% within the following 6 post-launch months

To generate awareness about the eco-friendliness of the hi-fi range of 20% in the

pre-launch campaign and 45% within the following 10 months period

To position the range as one of the top three environmentally friendly audio hi-fi

products on the UK market within a 6 month period after the launch

To achieve 2500 people signing up for Nokia’s e-newsletter every month for the

first 2 months.

To achieve 5000-6000 hits on our website every month in the first 6 months and

8000 hits per months in the months 7-12

To generate industry awareness, by being recognised for the product by the EISA

(European Imaging and Sound Association) by October 2010 (one year from our

launch)

To expand the flagship store in London in year’s time and create 45% of

awareness prior to the opening


7.0 Statement of Strategy

The overall strategy is to successfully position the ‘Connecting Sound viaNokia’ range in the

UK market by creating positive attitudes towards the range amongst consumers.

7.1 Selection of Target MarketsAccording to a survey carried out by Mintel in the UK in September 2007 the Britons are

keen on home-entertainment devices and other electrical gadgets as around one in ten

consumers are driven by an interest in the latest technology when buying audio hi-fi

equipment. Thus, the UK home-entertainment market is the largest in Europe (Mintel, 2007).

Sales are driven by style and design as well as product convergence and improved multi-

media functions, which means that the market is driven by highly technology literate

consumers. Increasingly, buyers also care about eco-friendliness - not only in regards to the

product but also the company needs to demonstrate a certain level of corporate

responsibility. Furthermore, it was found that younger age groups (including those belonging

to the DINKY’s group) are mostly influenced by their friends and family when choosing a

product. By that it could be stated that brand image plays an important role in the marketing

of audio equipment.

Accordingly, based on the data provided by Mintel (2007) and from the audit of the

demographical situation, Nokia will target the DINKY’s sector of the population. Between

2005-2021, the total UK population is predicted to increase by 7,5% and reach 64,7m. Within

this total, people aged 25 to 54 is expected to rise by 2,1% (Keynote, 2007). DINKYs

(“double-income-no-kids-yet”) are individuals leaving alone or with a partner who do not

have children and therefore generally do not have any family obligations. Furthermore,

according to Keynote’s (October 2007) market research on Lifestyles in the UK, higher

incomes have a positive impact on the spending habits of DINKY’s being more able to buy

larger volumes of expensive items.

Additionally, while the situation is in a downfall in the property markets, and people are less

likely to afford their own house, DINKYs are more likely to spend their disposable income on

treating themselves with fashionable entertainment products. As stated in the KeyNote

Leisure and Entertainment at Home report (January 2007), young adults (DINKY's) under

financial pressure will not choose to do gardening instead of other means of entertainment,

so the interest towards developing technology is sound.


The target consumer group tends to spend long hours at work so will therefore cherish the

free time and will require only the best of what is on the market. Also, hidden qualities, such

as energy sufficiency and brand value will be required. Accordingly, the money spent on the

electronics is not vastly limited.

This consumer will be most likely to live in a two bedroom flat somewhere in the city centre

or in the suburban areas. The ideal consumer is someone who:

uses one bedroom as a media room where all the gadgets will be located

appreciates the fact of being able to connect to the music from everywhere

reads a number of newspapers every day due to responsibilities

buys a monthly magazine with information on what is new in the market

7.2 Positioning of the ProductAs Nokia aims to reflect the balance between the price and quality, the new hi-fi range will

be offered only in selected number of stores and directly online. This will ensure certain

exclusivity and will correspond in a required profession approach from the well-trained staff,

so the customers will always feel welcomed. Accordingly, Nokia will offer viaNokia:

1. in its flagship store in London

2. in Tom Dixon’s brand store in London

3. on viaNokia’s website (www.viaNokia.com), which is connected, yet separated from

the initial Nokia’s website and this will provide the customers with an opportunity to

purchase the range online

4. in limited edition in Selfridges in London, Birmingham and Manchester and in John

Lewis in London, Edinburgh, Glasgow, Southampton

7.3 Selection of Communications Tools

The objectives will be achieved by selecting a number of communications tools that will be

strongly integrated. It is essential that the chosen tools speak the same language, so there

would not be any confusion about what is the message Nokia wants to deliver with viaNokia.

These chosen tools will be also interrelated and will provide support to each other, so a great

deal of impact on the consumers will be made, and which in the latter reduce costs. Each of

these tools will play a crucial role in developing a successful launch year of viaNokia. The

selected communications tools are selling, advertising, PR, E-marketing, viral marketing,

sales promotion, guerrilla marketing, exhibitions, packaging, sponsorship and celebrity

endorsement.


7.4 Sequence of Communications Tools

The whole launch year is divided into smaller sequences for Nokia to clearly be able to

identify when each of the tools needs to be used. The launch year will be divided into four

stages: planning stage, pre-launch period, launch, first three months and the rest of the year.

[Please refer to detailed plan of tactics in the following chapter]. Development of the plan of

each of the tool used will all be organised together in order to achieve the desired integrity

so they will refer to each other. The communications channels include newspapers,

magazines, TV, Internet & database marketing, direct response advertising, computerised

home shopping and product demonstrations.


9.0 Actions

9.1 Selling

It is essential to have sales force that is aware about all the aspect of the viaNokia range so

they will be able to sell it. Nokia is not going to proceed with over the phone selling and will

focus on educating the sales force that get in face to face contact with the consumers.

Nokia is going to sell viaNokia range in:

Nokia’s flagship store in London

Tom Dixon’s brand store in London

Selfridges & selected John Lewis stores

viaNokia’s website

9.1.1 Nokia’s flagship store

Sales people in the Nokia’s flagship store have firmly established relationships with their

regular customers. People having contracts will come back at least once a year to exchange

their mobile phone for a new one. 5 new people will be hired to do so. They have to be

experiences and have very professional manners. Nokia is going to select 20 people who

will get intensive training for one whole Saturday one month before the new range will be

launched. Then two weeks before these people will be given a test on the knowledge about

the products and also on selling techniques and dealing with customers. The 5 winning

people will be the best and will offer an outstanding service. They will start working part-time

one week before the launch. This is to establish connection between them and their new

workplace and new relationship with their new colleagues.

9.1.2 Tom Dixon’s store, Selfridges & John Lewis

Nokia will cooperate with Tom Dixon, Selfridges and John Lewis in selecting the right sales

people for the audio products. They will go through an extensive training as well together

with the staff that is aiming to work in the flagship store. This training will involve visiting the

factory and watching the manufacturing process. They will also gain a broad knowledge on

the features of the viaNokia range and on any other necessary information that may be

needed when selling the product. This will build the confidence of the sales force that they

will be able to close deals. Sales people for Tom Dixon, Selfridges and selected John Lewis

stores will also have to past the test and prove their skills and knowledge about the products.


9.1.3 Motivation

As a motivation for the sales people, rewards for the best seller of the month will be

introduced. Furthermore, a staff discount of 10% will apply. The best seller of the year will

get one product from the viaNokia range.

Nokia’s flagship store2 Months 1

Month 2 Weeks 1 Week Launch

Employment announcementX

Selection of 20 people X

Intensive training programmeX X

Test of knowledge and skillsX

Final Selection of 5 peopleX

Working part-timeX

Working full timeX

Tom Dixon’s, Selfridges & selected John Lewis stores

2 Months 1 Month 2 Weeks 1 Week LaunchSelection of possible sales people

X X

Intensive training programme XTest of knowledge and skills XFinal Selection XWorking full time X


9.4 Public Relations

The main objectives of PR:

- to raise awareness of the new ‘Connecting Sound viaNokia’ range and its

environmental friendly features by 30% over the duration of the PR campaign via

‘Green Listening viaNokia’ campaign

- To create a memorable launch for the new products and attract a large number of

media in order to gain quality media coverage.

Nokia is about to enter the audio hi-fi market. It will be essential to gain positive media

coverage. Therefore, establishing a good relationship with media will be the main focus of

Public Relation. Nokia has an in-house PR department, therefore there is already a well

established relationship with the media. The newly established PR team of 5-6 people will be

appointed to deal with PR for the ‘Connecting Sound viaNokia’ range and to look after the

smooth running of the campaign, including the planning of the product launch, PR campaign

and being the first point of contact for any media enquiries.

Furthermore, well-executed Public Relations will provide support in achieving the marketing

and corporate communications objectives. It also deals with a crisis situation when the

media start using unfavourable PR against Nokia. Public Relations team will then come up

with crisis management strategy.

9.4.1 Product Launch

Nokia’s PR team will create a Press Kit full of information including the features and benefits

of the range, top quality photographs, product efficiency, Nokia’s corporate objectives and

invitation to a press conference and to the product launch. This will be sent to carefully

selected media and opinion leaders two weeks before the product launch.

A press conference will be held in the morning of the launch day. Journalists will get an

exclusive peak onto the new ‘viaNokia’ range with detailed demonstration and will be able to

ask any questions. In the evening an exclusive launch party will be for a limited number of

people that represents the DINKY group who have won the invitation for the party by signing

up to the newsletter since the 1st of October 2009. Also, a large number of national and

international VIPs, mostly musicians, actors, politicians, CEOs will be invited. Promotion

Bags will be prepared for our VIPs: Nokia’s mobile phone, perfume, vouchers, etc.


Time & Venue:

Product launch will take place at 9pm and the party will last till 2 am at the Alexandra Palace.

Entertainment: DJ Tiësto will be entertaining the guests and VIPs for 1,5 hour starting at 10

pm. The Alexandra Palace will be transformed and re-design into a number of small private

rooms around one large one in the middle. The large room will serve the reveal of the

viaNokia range, DJ Tiësto will perform there and guests and VIPs will have a chance to

order refreshments. The small private rooms will evoke the atmosphere of being at home.

Stylish furniture will create a cosy place to listen to the music. The outside of Alexandra

Palace will be en-lighted to be visible from many places in London.

VIPs: Leona Lewis, Robbie Williams, Coldplay, Jude Law, Gok Wan, Jake Wood, etc

Guests: CEOs, marketing directors, managers

Media facilitation:

There will be a red carpet and photographers will be kept on the left side so they will have

the best angle to take pictures that will gain the media coverage next day. Photographers will

not be let in to ensure security and privacy to the guests and VIPs.

9.4.2 Campaign ‘Green Listening viaNokia’

Nokia is going to appoint the Red PR Consultancy to plan and execute the PR campaign.

The Red Consultancy has already worked with Nokia on a number of projects. The main aim

of the campaign will be to publicise the fact that the new viaNokia range is energy sufficient

and recyclable, therefore environment friendly. The key part of the campaign will be involving

opinion leaders such as Radiohead and Coldplay opinion formers (media). This will ensure

the two-stage-communication process that will add credibility to the campaign’s message.

Opinion leaders have the ability to influence a high number of people who look up to them

and consider them as having valuable opinions. (Smith & Taylor, 2004). Coldplay will

become the face of the campaign and will front it up on a number of occasions such as the

press conference and the product launch event, and further events over the following year.

Funding: £80,000 for a national campaign and £1.000,000 for the product launch


10.0 Control

Throughout the year, including within the pre-launch, launch and post-launch activities, there

will be consideration on ‘what-if…’ scenarios to be prepared to face any failures and to be

able to continuously increase the percentage of succeeding.

Nokia will arrange a questionnaire at the latter of the launch year, which would provide

adequate feedback on the new audio hi-fi range. This would be done with a goal to improve

the products in a way that they would be increasingly accepted in the following years.

Furthermore, by monitoring the response of the public, Nokia will be able to assess the

objectives set by the Company and to make sure they are being fulfilled.

Also, an extensive analysis of the communications tools used throughout the launch year will

be carried out. This will give a clear overview of which part of the strategy needs to be

improved, or maybe even eliminated, in the following years. With that, it is also crucial to

measure the commitment of the target group, and how to generate even higher levels of

loyalty in the future.


11.0 The 3Ms

11.1 Men

Nokia is going to carry on working with two consultancies: Red PR Consultancy and Wieden

& Kennedy Advertising Consultancy. They both are specialists in their field and will deliver

successful projects to raise the awareness of the ‘viaNokia’ range and enhance the

reputation of Nokia. These consultancies will work closely with the Nokia’s marketing team

representatives on planning the advertising, PR and Guerrilla Marketing campaigns.

Nokia is also going to establish a group of 5-6 people to support the in-house PR team that

will deal with journalists and plan the launch of the range. It is essential to have people

coordination these processes as any mistake can have a very unfavourable effect on the

Company’s reputation. The group will also be responsible for communicating with the media

and answering any enquiries throughout the launch year and beyond. Essential part of the

activities will include monitoring the quality of the media coverage and developing crisis

management plans.

The selection of sales people is crucial, they will go through the intensive training

programme and only the best 5 will be selected to sell the ‘viaNokia’ brand in the Nokia’s

flagship store. Nokia will also train sales people for Tom Dixon’s stores and Selfridges and

John Lewis so they will be able to help with any enquiry from the customers.

In addition to that Nokia will select a special design team that will carry out the outer design

of the packaging. Another designer team will create the new viaNokia website with

information on the range and also chance to buy it directly.

Nokia will also appoint a team of 7 people who will look after the whole marketing

communication process. They will have high expertise in their field and excellent abilities to

do different jobs at the same time. The main responsibilities of this team will be:

Communication with PR consultancy and advertising consultancy so both of the

campaigns will be integrated and will support each other’s ideas. Sales Promotion


also has to be supported by both advertising and PR activities so the

communications is the essential part of this team.

To co-ordinate the Sales Promotions with the outer design of packaging. The

database created by sales promotions will also assist to direct marketing and E-

marketing activities.

11.2 Money and Minutes

The details about the distribution of the budget of £25,000,000 for the launch year for the

‘viaNokia’ range in the UK for marketing communication is mentioned in the tactics part of

the report. There is also a detailed timesheet of the activities with clear deadlines that will

take place before the launch and the during the year period.

The additional expenses for hiring new people will be as follows:

PR – 5-6 people: paid 52 weeks per year, £10/hour, £20,800 per Annum: £104,000 –

£124,800 per Annum

Sales People in Nokia’s flagship store in London – 5 people: working in 2 shifts, paid

52 weeks per year, £18,000 per annum: £90,000 per Annum

7 crucial positions for marketing people who will look after the smooth run of

marcoms –paid 52 weeks per year £35,000 per Annum: £245,000

The biggest part of the budget will be spent on marketing communications activities that will

be carried out shortly before the product launch and after. This is due to the high number of

competitors in the consumer electronics sector. It will be essential to catch consumers’

attention right from the beginning in order to achieve the objectives.

A reserve of £12000000 will be made due to the immensely fast increasing competition in

the audio hi-fi market. This will allow Nokia to spend more money on advertising or on any

other marketing communications tool in order to keep the brand visible. Furthermore, this will

reserve will be kept for any critical moments when fast actions need to be taken.


marketing communications plan for 'via nokia

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