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- Marketing strategies
- Executive summary
- Nokia Mobile Phone Company serves as one of the best companies that can be used to study the marketing strategies. This is because the company is currently doing well in the mobile phone industry in UK. This report analyses the secondary data available in the books regarding the marketing strategies used by the company. The report analysis the current marketing strategies as well as the market segmentation, position and targeting as used by the company. Objectives and goals (SMART), explain how Nokia management should set goals, which are specific, measurable, attainable, realistic and time-bound. Marketing Strategies and Programmes covers the recommendations for better marketing strategies that Nokia management should apply in order improve the marketing of the company.
- Introduction
- Nokia is one of the leading mobile provides in UK. The company entered in the UK mobile phone industry in the in 1984 with a small workforce. However, the company has managed to expand in their in their market share to become one of the leading company in the market. This report therefore studies the various marketing strategies used by the company. In relation to this the report first analyses the current marketing strategies that are used by the company. The report also analysis the market segmentation, targeting and position as used by the company. Moreover, the report also analyses the company using the PESTLE and SWOT analysis model. Most importantly the report also gives some of the recommendation that can help to improve the marketing strategies of the company.
- Methodology
- The methodology of the case mainly involve the analyzing the already available secondary material. In this case the use of the secondary data will allow one to compare effectively the various marketing strategies used by different company and therefore make the necessary recommendation. The use of the secondary information will also help to save on the cost of carrying out the analysis. This is because in the analysis of the secondary information one only analysis the already published information. Beside, the use of the currently published books on the marketing strategies of the company, the company websites will also be used.
- Current marketing strategies
- The Nokia current marketing strategy is mainly based on the marketing intelligence. This is because the management of the company first analyses the marketing strategies of their competitors and then they determine the strategies to employ. The management of Nokia have currently adopted a marketing strategy aimed at mainly aimed at advertising the products using the social medias and digital technology. The company has also developed advertising strategy where they have change the Nokia tone to a voice, which has dramatically changed the marketing strategy. In addition, the company has also developed a youthful approach in their marketing. This is where the company has introduced features in the phone that incorporate youthful aspects. In this case the company has introduced the “blips” ads mainly to target the youth.
- Moreover, the management of the company has also introduced a Nokia smart phone that uses Microsoft window for its operating system. This is to help ensure that the customers are able to use their phone as ordinary computer. In addition the company is also partnering with other companies such as the shell, Express, the daily star, channel 5 and ok magazine, in order to advertise the new feature of the phone. This includes the placing of the editorial tiles to reflect the phone interface. The use of this type of advertisement has in turn helped to ensure that the company is able to advertise their product. Most importantly the management of the company has also embarked on an effort towards ensuring that they promote the company brand in the market. This is because with a good company brand company can be able to create customers loyalty. Promotion of the company brand also helps to motivate the customers to buy the company products. These strategies have therefore helped the Nokia to attract more customers and ensure that their products continue to fetch a high market share.
- In order to ensure that the company continue to increase on its market share the company has also embarked on an effort toward ensuring that they embrace the consumer internet services. The company has also engaged in strategies aimed at ensuring that the customer engagement and fulfillment strategies. In relation to this the management of the company has embarked on strategies aimed at ensuring that the company responds to any consumer complain promptly. Another important point to note is the fact the company has embarked on efforts aimed at ensuring that the company continues to embrace the current technology. This has helped to ensure that the company is able to become the leading player in terms of embracing the new technology management and advertising of the company product.
- Segmentation Targeting & Positioning
- Market segmentation
- Nokia Company has divided the market into various segments. These segment help the management of the company to deliver product to the consumers and at the same time satisfy the target. The market segment consists of the customers who share a similar set of needs. The company also uses the criteria of ensuring that the segment is accessible in terms of communication and distribution of channels. The segments are also indentified based on the profitability of the segment uniqueness of the need and the durability of the segment. Market segmentation plays an important role in ensuring that a company continues to earn profit. In relation to this the management of the company is able to develop segments in which the customers are able to accept high prices. Most importantly market segmentation facilitates proper choice of the target marketing (Smith, & Taylor, 2004, p.32). This is because the market segmentation helps in ensuring that the marketers distinguish one customer group from another.
- The management of the company has divided the market four different segments. First is the geographical segment. In relation to this the management of the company has divided the market into various regions, populations’ density, and climate among others. The company has also divided the market segment depending on the demographic factors. In this case the, market is divided depending on the feature such as the age, income, purchasing power among other factors. In addition, the Nokia market is also dividend based on the psychographic segmentation. In this case the market is divided based on the buying psychology of the customer. This is one of the major segmentation method used by the company. This is because the company has committed effort towards ensuring that the cover the interest of the young people in terms of the product they offer in the market. Finally it is also evident that the company has divided their market segment based on the buyer’s behavior at a particular segment.
- Targeting
- Market targeting mainly involves breaking the market into segments and then concentrating the market effort toward that segment (Lamb, Hair & McDaniel, 2012, p.276). Nokia Company has organized their market target depending on the attractiveness of the market segment. In relation to this the management of the company first considers the size of the segment that depends on the number of the customer or the number of the units available. The company also uses the growth rate to establish a segment. In addition, the brand loyalty of the existing customers can also be used to establish a market. The sales potential of the segment can also be used to establish a market target.
- The suitability of the market segment to the firm is also another criteria that is used by the management of the company to establish a market target. In relation, to this the management first establishes the impact of serving the segment on the firm image. This is to help ensure that the market target created should be able to ensure that it help to promote the image of the company. it is also evident that the company also uses the accessibility of the distribution channel to establish.
- Positioning
- The market positioning is the last stage in the market segmentation cycle. In this case, management of Nokia Company strives hard to create an image of the product in the minds of the consumers. This therefore implies that the market positioning helps in ensuring that the company creates a good perception in the minds of their customers. The company also uses the customer benefit approach to position themselves in the market. This has helped to ensure that the company is also able to address the needs of their customer in different market segment. Using the customer benefit approach the organization usually places its brand above the competitor, based on the specific brand attribute and the customer benefit. Moreover, the company also uses the application approach to position their brand.
- Differential advantages/weaknesses (USP) (SWOT) (PESTLE)
- The unique selling preposition refers to the various ways that an organization defines their advertisement strategy in order to help in creating a picture to the client on how the product is compared to the product from other competitors. In this case since the Nokia Company is one of the leading companies in offering smart phone it has managed to create a uniqueness in terms of the products they are offering. Another important point to note is the fact that the company has managed to establish a strong company brand. This has helped to ensure that their customers can be able to identify the company products. In relation to this, company has managed to create unique products in which the customers are able to recognize their products. This has in turn helped to ensure that the company continues to increase on their market share.
- SWOT analysis
- Strength
- One of the major strength that the company is the fact that the company has a large network distribution channels selling mobile phone worldwide. This has helped the company to enjoy enormous amount of the profit compared to other companies. The company also has a strong quality and professional team in the human resource department (Böhm, 2009, p.2). In addition the company has also a strong financial base. This has helped the company to survive in the recent economic recessions. In addition, the company also offers a wide range of product to consumers.
- Weakness
- The company also has some weakness in their management. In relation to this the company usually offers some of its products at high prices. This in turn discourages most of their customers who cannot afford such prices from purchasing the products. Another major weakness of the company is the fact the company does not carry out promotion plans aimed at targeting the low-income earners. In addition the company has also not been offering a good after sale services to their clients.
- Opportunity
- The company has an opportunity of expanding its business. This is because the company offers a wide range of products to its customers. Moreover, the company also offers their products with high quality features. This can therefore help to ensure that the company is able to increase on its market share.
- Threat
- The company has many threats to tackle this is mainly from the rival companies such as the Motorola and Sony Ericson. These companies pose great threat since they sell mobile phones with improved features at considerable prices. In addition, the company also major threat since they do not offer good after sale services.
- Pestle analysis
- Political
- The political factors mainly refer to the various influences that the government may cause to the business (Cheverton, 2004, p.72). The management of the company has committed efforts towards ensuring they follow all the rules and regulations set by the government. In relation to this the Nokia management company has committed effort towards ensuring that they respect the minimum wage bill that has been set by the government through ensuring that their staffs are well paid. Moreover, the management of the company has committed effort toward ensuring that the address the interest of the employee. This helps prevent the strikes that may damage the reputation of the company.
- Economic
- The economic factors also affect the management of the company in various ways (Lorat, 2009, p.6). In this case the management of the company must ensure that they develop measure to address the rise in the levels of inflations. The management must also ensure that they also address the various changes in the interest rates. This can help to ensure that the company continues to earning profit.
- Social factors
- The social factors have also impacted the business in several ways. In this case Nokia Company has devised smart phone with features that are able to fit to the needs of the consumers in the market. This is because most of the consumers nowadays usually judge the products depending on how fashionable they are. In relation to this most of the consumers nowadays usually buy the mobile phone depending on their feature. In this case the management of the company has to continue producing mobile with advance features.
- Legal
- These refer to the various laws and policies that affect the business. In this case Nokia mainly operates in an environment where it is difficult to have a product that is different from other competitors. This therefore implies that the company must ensure that they develop strategies, to help deal with the issue related to the patent rights. However, it is also important for the management of the company to ensure that they also do not fall victims of counterfeit products.
- Environment
- Environmental factors refer to the influence that the surrounding has on the business. In the case the management of the company has committed effort toward ensuring that they conserve the environment where they have introduced a recycling program. This programs aims at ensuring the used phones are recycled. This has also helped to ensure that the battery phones are also disposed correctly to prevent environmental damage.
- SMART stands for Specific, Measurable, Attainable, Realistic, and Timely (O'neill, 2006, p.5). This is the strategy used in determining the process of setting goals in an organization. SMART applies in Nokia Company as explained below.
- Specific
- Specific generally encompasses several factors. For instance, the management of Nokia needs to determine what needs to be accomplished. This might be either improving quality or customer satisfaction. The management also needs to determine the purpose or benefits of attaining such goals as well as identifying the participants who will ensure that the set goals are achieved. Finally, the management of Nokia should identify constrains and requirements of attaining the set goals.
- Measurable
- In order to determine the progression of activities towards achieving a certain goal, there must be measures incorporated (Dyck & Neubert, 2010, p.237). In essence, a goal should be measurable. Measuring the progression of the goals helps the team remain on track and keep up with time towards achieving the goal. In this case, the management of Nokia should ensure that these goals are measurable and incorporate strategies to determine the progression of the goals.
- Attainable
- In some cases, organizations may set goals which cannot be attained given the resources and ability of the organization. Therefore, the management of Nokia should determine whether the set goals are achievable in the right time, given the resources of the organization.
- Time-bound
- For a goal to be effective, it should be time-bound. In essence, a time schedule should be developed which will indicate how certain stages of the achieving the goal will be reached (Dyck & Neubert, 2010, p.237). Generally, there should be a time limit upon which the goal should be accomplished. In this case, the management of Nokia should understand that different goals will require different time schedules and they should set a limit to which the organization should attain the set goals.
- Recommended Marketing Strategies and Programmes
- Apparently, Nokia incorporates different marketing techniques, which include advertisements and participating in communal activities. The management should incorporate strong strategies in order to keep Nokia in the leading edge. In this case, the management should identify and develop a strong marketing team, which will incorporate strategies like market research in order to improve the performance of Nokia in both regional and global market (Ranchhod & Gurau, 2007, p.4). The other issue is that the management should implement training programs for the marketing team and educate them on how to use technology, internet, and other sources of knowledge to come up with ideas on how to improve the market position of the company. The other strategy is that the management of Nokia should focus on implementing promotions and offering discounts to the customers while maintaining a desirable income. For instance, Nokia phones should have special features that the customers should enjoy which is not found in the other phones or rather, the company should guarantee of their customers in accessing application using the Nokia phone without paying after purchasing the phone. For example, the company can provide free internet access for the customers who purchase a certain Nokia phone. The marketing team of Nokia should come up with a strong motto which relates to what the company offers (Ranchhod & Gurau, 2007, p.4). For instance, the motto can be that the company sells quality and durable goods. The last strategy that the management of the company should consider is reducing the prices of the products. This helps in increasing the competitive advantage of the business.
- Conclusion
- The current marketing strategies used by Nokia have helped it to increase on their market share. This is because the company has nowadays developed phones with feature mainly targeting the youth who comprise a big proportion of the UK mobile phone industry. The market segmentation, targeting and positioning is also represents another strategies that the company uses in order to increase on their market share. It is also important to note that the current political environment in UK has also helped in the growth and development of the company. However, the company is also currently facing stiff competition from rival companies such as the T-mobile. This therefore implies that the management of the company must ensure that they continue offering quality products to their customer in order to increase customer loyalty and attract new customers.
- References
- Böhm, A. 2009. The SWOT Analysis. München: GRIN Verlag.
- Cheverton, P. 2004. Key Marketing Skills 2: Strategies, Tools and Techniques for Marketing Success. London: Kogan Page.
- Dyck, B., & Neubert, M. J. 2010. Management: current practices and new directions. Boston, MA, Houghton Mifflin.
- Lamb, C. W., Hair, J. F., & McDaniel, C. D. 2012. Essentials of marketing. Mason, Ohio: South- Western Cengage Learning.
- O'neill, J. 2006. The Power of SMART goals: using goals to improve student learning. Bloomington, IN, Solution Tree.
- Ranchhod, A., & Gurau, C. 2007. Marketing strategies: a contemporary approach. Harlow [u.a.], Financial Times Prentice Hall.
- Smith, P. R., & Taylor, J. 2004. Marketing communications: An integrated approach. London: K. Page. Lorat, N. 2009. Market audit and analysis. München: GRIN Verlag GmbH.
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