Marketing Foundation - Nokia

Introduction

In today's world, mobile internet has become increasingly common, drawing a lot of media
coverage. It has had a huge impact all around the planet (Rajurkar and Shirsagar, 2017). Nokia's
stock has fallen to around a third of its previous value. The management is concerned about the
downward trend in earnings. In the cell phone market, the firm has continued to gain improved
development as well as profitability to some degree (Ciesielska, 2018). However, the firm has
previously encountered stiff rivalry from the iPhone, Blackberry, and Google Android. It's all
about the apps these days, which has been the main issue for Nokia phones (Laamanen, Lamberg
and Vaara, 2016). A thorough review of the field that had a significant impact on Nokia's growth
would be presented in the following context.

Overview of the organisation

Nokia opened its first branch office in Beijing in 1985, and has since expanded throughout the
world. Nokia is the world's leading manufacturer of cell phones and other computing technology.
Nokia was a global pioneer in mobile telecommunications, contributing to the development and
survival of the wider mobility market (Hashem et. al., 2015). Every day, approximately 17
percent of the world's population is linked by the leading business Nokia, ensuring their right to
"Connect People." The company was established in 1865 on the bank of the Nokiavirta River in
Finland to produce a range of goods that were unique in the industry. In 1992, the corporation
agreed to devote its entire attention and resources to the telecommunications industry. This
occurs as Jorma Ollila takes over as CEO of Nokia and decides to focus solely on the
telecommunications sector. In 140 nations, the organisation has made $40 billion in sales. The
corporation has a strong reputation in the world industry, and it employs 55,000 people. The
corporation primarily presents four industry classes, including corporate solutions, smart phones,
multimedia, and networks (Bala, R., and Singh, 2016).
Internal and External Marketing Environment

Market Analysis

Nokia is a multinational corporation with headquarters in Finland. The firm has a global
workforce of 123,533 employees and sells smart phones in over 160 nations. Nokia's main
markets are China, the United Kingdom, and India. Nokia's market share rose in China in 2008-
09, but decreased in India and the United Kingdom (Vuori and Huy, 2016). In 2007, Africa, the
Middle East, Asia-Pacific, and Europe accounted for half of Nokia's set sales, with the firm
accounting for 20% of the Chinese market, 10% of the North American market, and 10% of the
Latin American market. Nokia's main markets were the United Arab Emirates, China, Brazil, the
United States, the United Kingdom, Germany, Russia, Spain, Australia, and Italy. They account
for 65 percent of the overall revenue. Nokia's worldwide subscriptions had risen to about 2
billion by the end of 2007. Customers in Australia are mostly interested in smartphones. As a
result, the business will encounter more challenges than anticipated (Lamberg, Laukia and Ojala,
2014).

Macro Environment Analysis

Political, Legal and Economics Analysis

• Australia's economy is expanding at a rapid pace. It is stronger than in other OCED

nations, like the United States and the United Kingdom. The country's GDP is already
greater than that of the United Kingdom, France, and Germany. The Australian economy
is low-risk because it has consistently high GDP expansion, growing exchange rates, a
steady interest rate, and a low rate of inflation. This may be a good indication for Nokia
to reach a business like this (Danov, 2016).
 • Australia is a vital market for multinational corporations operating in the Asia-Pacific
area. The nation has a growing market, stable markets, and a favourable political climate.
The biggest benefit of businesses in a stable political climate can be seen in the bottom
line. It will make it easier for the firm to establish itself in Australia's new industry. Age
and disabilities abuse laws have been adopted in Australia. The country's minimum wage
has also risen, as has the demand for recycling forms, which has influenced Nokia's
decision. Legal reforms can have an effect on Nokia's price as well as production (Lane,
2017).

Social Analysis

• Over the years, the market for touchscreens and big displays has risen dramatically in
Australia.

• The Australian citizens interact in a rather directive manner. In their voice, there is
frequently a sense of humour and self-deprecation.

• The even distribution of income among Australians increases their purchasing power,
allowing the company to target the largest number of people in the country.

• The country's growing population often affects communication demand, allowing the
company to reposition their product in the market (Williams and Figueiredo, 2014).

Technological Analysis

• Over the years, the market for touchscreens and big displays has risen dramatically in
Australia.
• The Australian citizens interact in a rather directive manner. In their voice, there is
frequently a sense of humour and self-deprecation.
• The even distribution of income among Australians increases their purchasing power,
allowing the company to target the largest number of people in the country.
• The country's growing population often affects communication demand, allowing the
company to readjust their product (Williams and Figueiredo, 2014).
Micro Environment Analysis

Company Analysis

Three major positives:

• Nokia has a brand name in the sector that makes consumers feel at ease while using a
device, and it holds a market share of more than 33% in the industry and ranks fifth in the
world.
• Due to their good brand identity and innovative product portfolio, it is a leading force in
the smartphone industry (Laamanen, Lamberg and Vaara, 2016).

Three major negatives:

• Nokia N-game Gage's or function has struggled to gain traction in the industry.
• Nokia's position in Symbian has grown notwithstanding the company's negative profile in
the industry.
• The corporation struggled to keep up with emerging technologies and expertise
(Laamanen, Lamberg and Vaara, 2016).

As a result, Nokia was one of the most well-known cell phone firms in Finland. In the current
situation, the organisation would be unable to meet the demands that it faces.

Competitor Analysis

Since it is a mature industry with multiple entrants and a slow growth pace, the degree of rivalry
is deemed strong, implying that players can gain market share from their rivals as their sales or
income increases. Following Nokia, these firms also joined the industry. However, their
innovative technologies has drawn the most buyers. Their competitors mostly utilise the Android
operating system. In contrast to Symbian, which is used by Nokia, Android is an operating
system that allows operators to access a wide range of applications. RIM's operating system, as
well as the iPhone, have snatched Nokia's market. The business wants to re-enter the market with
an improved operating system that will enable it to survive in a dynamic market and reposition
itself (Van Alstyne, Parker and Choudary, 2016).
Key Players

Nokia's main rivals in a handheld handset are RIM, Sony Ericsson, Samsung, and LG, while in
tablets, the firm faces competition from Apple and RIM. According to the study of major
companies, the leading firm, Samsung, has the largest market share, with 22.5 percent, led by
Nokia. Nokia's market share is shrinking in 2010, although Samsung's market share is increasing
in Nokia's top market. RIM's market share increased as well, although Sony Ericsson's market
share decreased. Apple is an indirect rival that is concentrated on delivering new electronics
goods to its consumers and has a 9.5 percent market share.

Samsung is a direct rival that has a large variety of smartphones with upgraded versions. With a
market share of 25.4 percent, it is one of the top firms. Other players such as Sony Ericsson, LG,
and RIM also covered the remaining 42.6 percent market share. They mostly use the Android
operating system, which aids in their business survival (Giachetti and Marchi, 2017).
Market Segmentation
Nokia's target consumer category is made up of a specific demographic of consumers, such as
people of different ages, on which it targets its marketing activities. Nokia's goal is likely to have
two major motivations: first, to make a profit, and second, to target customers that need some
kind of contact. For example, it is mostly aimed at users between the ages of 19 and 39 who are
searching for entertainment. Its aim is to entice them to use this particular brand and to
encourage it in the marketplace.
The main market segmentation of Nokia is based on demographics. In today's technical
environment, Nokia can be viewed as a medium of communication. In terms of demographics,
Nokia target market refers to the demographics that advertisers use to segment audiences, such
as gender, race, income, and social status. Nokia, for example, will have to come up with
innovative ideas to improve their smart phones, such as adding new applications or apps, in order
to differentiate themselves from their rivals. Not to mention, to establish a reputation as a
business that produces high-quality, short-term mobile phones. Gender, on the other side, is a
widely used demographic variable; for example, if Nokia were to target their goods at certain age
ranges, they would need to know where, when, and how to target them. As a consequence, the
outcomes may be far more amazing than they seem to be. Ethnicity is another element in
segmenting markets. For example, Nokia captures the Asian sector in the hopes of attracting
customers and distributors to sell their goods and, as a result, gaining status. Another factor is
wealth, which is often used to separate consumers because it has a significant impact on people's
product requirements. Cell phones, portable headsets, memory cards, and other small sections
like batteries, cable, and installation CD guide are among the Nokia products segmented by
revenue. Consumers appear to be more similar in terms of social status, occupying inferiority or
dominance based on their own experiences, allowing them to step up or down during their lives.

Customer Analysis

The business mostly caters to the youth sector, which ranges in age from 13 to 19. Nokia
commissioned research that revealed that youths receive pocket money and do not have any
plans to invest it. As a result, the user will be able to buy the phone using their own capital.
Nokia is now targeting people between the ages of 19 and 39 who are searching for
entertainment (Olaleye, Salo, Sanusi and Okunoye, 2018).

Marketing Mix of Nokia

Nokia Product Strategy:

In Nokia's communication policy, the commodity strategy and mix are as follows:

Nokia is a well-known consumer electronics and telecommunications equipment corporation that

was once the undisputed cell phone brand. Because of their experience in manufacturing phones
and handsets for people from all walks of life, Nokia's goods were considered to differ greatly.
They started out making mobile phones and then expanded into the smartphone industry with the
Lumia line as part of their marketing mix product strategy collection. Nokia Asha was one of the
most common selling phones in India, particularly among the lower classes. Mobile phones,
classic button displays, touch screens, and slide sets were among the different handset styles.
Nokia is best renowned for the high quality and long-lasting nature of its items. It was one of the
first businesses to make phones with cameras and charts. Apart from its experience in
manufacturing handsets, Nokia was also popular for producing tablets and personal computers.
Its maps app, as well as navigation and music applications, were well-liked by users from all
walks of life. Nokia invented the first cell phone with an antenna, the first handset with a built-in
monitor, and the first phone with SMS features. The Nokia C series, E series, N series, and X
series were the most common cell phones.

Nokia Price/Pricing Strategy:

The pricing policy in Nokia's commercial strategy is as follows:

Nokia believes in selling the goods in such a manner that they have a wide range of prices to
satisfy the desires of people from all walks of life. Nokia made phones ranging in price from $30
to Rs. $3000. It did, however, make standard phones that were known for their utility and
sturdiness at prices less than $30. The poorer parts of society were the ones that used these
phones. Nokia's common utilities, such as Nokia Maps and Nokia Drive, as well as Nokia Music,
were made available to users at no discount. The pricing approach in its marketing combination
was a skimming strategy that relied on low prices and superior quality in terms of performance
and efficiency to skim most areas of the industry. Prices were set based on extensive consumer
price analysis, allowing for an aggressive promotional policy that was appealing to potential
consumers.

Nokia Place and Distribution Strategy:

Nokia's distribution plan is as follows:

Nokia did not partake in direct sales to consumers. It used dealers to handle the actual delivery of
its phones. Selling by network tie-ups such as partnerships with carriers such as Vodafone,
Airtel, T-Mobile, and others, small retailers and modern exchange retailers such as Croma,
supplies shops, online marketplaces, and the website itself are among the main networks of
delivery. During Nokia's heyday, the company had over 100000 dealers around the world, taking
the brand closer to the citizens. People might visit Nokia Concept Stores to see the extravaganza
associated with the technical space. Nokia's initial plan was to attract metropolitan buyers for
their new handset models. Following that, with the introduction of feature phones, they began to
penetrate the rural markets as well, capturing a significant portion of this community. Nokia was
once a big known brand with a footprint in more than 120 countries, distribution in more than
150 countries, and RandD facilities in up to 16 countries across the world.

Nokia Promotion and Advertising Strategy:

The Nokia marketing campaign's promotional and advertisement strategy is as follows:

Nokia uses all available media to keep its consumers informed of its brands. Nokia formed a
relationship with Windows in order to release Lumia phones, which quickly became successful
in the market. Nokia really upheld its mission of linking people and getting them together
through handsets and a cell phone penetration no one has previously anticipated by associating
with brand ambassadors like Shahrukh Khan when it came to marketing the brand. Nokia
advertised itself on tv, billboards, radio, and publications, as well as by brochures, flyers,
dummies, and show stands. They also participated in personal selling by delivering extensive
product preparation to the product's suppliers and distributors. Nokia launched gifting ideas in
the early 2000s in an effort to establish itself in the minds of the public. They offered consumers
enticing deals such as a chance to win Yamaha bikes and Toyota Vios vehicles. As a result, this
provides visibility into Nokia's marketing mix.
References

Bala, R., and Singh, D. P. (2016). Nokia: It’s not over yet, A Come Back in 2016. International
Journal of Management, IT and Engineering, 6(2), 222-234.

Ciesielska, M. (2018). Nokia on the slope: The failure of a hybrid open/closed source model. The
International Journal of Entrepreneurship and Innovation, 19(3), 218-225.

Danov, M. (2016). Global competition law framework: A private international law solution
needed. Journal of Private International Law, 12(1), 77-105.

Giachetti, C., and Marchi, G. (2017). Successive changes in leadership in the worldwide mobile
phone industry: The role of windows of opportunity and firms’ competitive
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Hashem, I. A. T., Yaqoob, I., Anuar, N. B., Mokhtar, S., Gani, A., and Khan, S. U. (2015). The
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Laamanen, T., Lamberg, J. A., and Vaara, E. (2016). Explanations of success and failure in
management learning: What can we learn from Nokia’s rise and fall?. Academy of
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Lamberg, J. A., Laukia, A., and Ojala, J. (2014). The anatomy and causal structure of a corporate
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Lane, J. E. (2017). Opportunistic Behaviour. Applied Economics and Finance, 4(4), 1-16.

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