The marketing strategy of Nokia in China諾基亞在中國的營銷策略

ThemarketingstrategyofNokiainChinaSubmittedby:ZouQuanSubmittedonF20101.1TitleoftheprojectThemarketingstrategyofNokiainChina.Nokia'sheadquartersinFinland,butChina'scellphonemarketisthelargestmarketshare.Nokiaisamobilecommunicationproductsmultinationalcompanies.Inthemobilephonemarket,occupythemarketshareforsuccessiveyearsfirstprivilegeattributabletothenokia1.2ObjectivesoftheprojectForthisprojectIhavebeeninstructedtocomeupwithamarketingstrategyforanexistingcompany/product.IhavechosentodoNokia,aleaderinmobiletelecommunicationsmarket.BasedontheChinesemobilephonemarket,thispaperinvestigatesNokia’smarketingstrategyandthereasonofNokia’ssuccess.Therefore,severalsub-objectiveswouldbepresentedbyaguideinthisstudy:InvestigatingthemarketingmixwhichhasaffectedtheNokia.ExploringtheproductofthebrandpositionandmarketsegmentationInvestigatingthepricingstrategytobeusedinmobiletelecommunicationsmarketofNokia.InvestigatingthepromotionalmethodofNokiaInvestigatingthechoiceoftheNokia’splaceInvestigatingthemarketshareamongtelecommunicationsmarketofNokiainChinaInvestigatingthefinancialreportofNokiainChinaInvestigatingtheattitudesofcustomertothemobilephoneofNokia.1.3Statementofissuestobeinvestigatedwhatneedtobeupdatedtechnologyattitude.Therefore,todiscussthenokiasatisfaction,isverynecessary.Itusuallyreferstothemarketingstrategies,intheChinesemarketoccupation.Especiallythemarketingmix,product,promotion,priceandplace.Foragoodmarketingisoneofthemostimportantaspectstoensureproductionproductorservice,satisfiesyoutargetconsumptiongroupneeds,andprices,consumerscanaccept.Ifyourproductsandservicesthancongenerproductquitehigh,andservice,youmayhaveatimetobuildcustomermoredifficult.Inaddition,weshouldexplorehowtomakestrongbrandnokiaanddistributionofproductstomeetcustomerbehavior.1.4ReasonsforthechoiceofissueandhowthisissuedirectlyrelatestotopicsNokiaallsurveyproblemsarecloselyrelatedtopics.Chinaisnokia'slargestmarketintheworld,nokiaplayainresearchanddevelopment,innovation,purchasingandproductionveryimportantrole.Facingthefutureofbrandstrategy,tocustomerhasaverydeepimpression.Moreimportantly,accordingtodifferentgradesofconsumergroups,nokiasegmentdifferentgroupsanddifferentlevelsofmobilephones.Therefore,nokiahasthebiggestmarketshare,andcaptureinChinaobtainhighsatisfactionofconsciousness.Therefore,itiscloselyrelatedtothemarketingstrategies,nokiasales.1.5CoveredaspartoftheGroupAwardMarketing:AnIntroductionOneofthebiggestandwhoseknowledgerelatestomostsubjectisMarketing.Itreferstothemarketmix—4PsPrice,ProductandService,PromotionandPlace.what’more,brandpositionandmarketsegmentationarealsosignificanttothesuccessofNokiainChina.CreatingacultureofcustomercareNokiaisfacingafiercecompetitionamongthemobiletelecommunicationsmarket.SothecompetitorsarealsoathreattoNokia.Therefore,thehighsatisfactionawarenessisinseparablefromcreatingacultureofcustomercare.EspeciallythelocalizationstrategyofNokia.1.6Justificationforchoiceofbusiness(es)Oneofthemostimportantsuccessfactors,nokiainChina,themostimportantfactoristhesuccessfulmarketingstrategy.Marketingstrategyisaprocess,canletanorganizationalfocusonthegreatestopportunity,toincreasesalesandrealizethesustainabledevelopmentofcompetitiveadvantagelimitedresources.Amarketingstrategyshouldcenteraroundthecoreconcepts,customersatisfactionisthemaingoal.ThismeansthatnokiausemarketingstrategyisverysuitablefortheChinesemarket.Chinaistheworld'slargestmarketinnokia,nokiacellularphoneisgood/inpositivereviewandgetChinadeeplysatisfied.Therefore,nokiaissuitableformarketingstrategyoftopic.Nokiarelativetootherbrandcheaper,completefunctions,thereareothermobilenofunction.Atthesametimeitistheinternationalbrand,after-saleisguaranteed.Atthesametimeisfashionable,thesymbolofthesupportingsoftwareupdateissimilarproductsandincomparable.Atthesametimewithhighratioofmodernispreferred.Comparedtothestrongholdmachine,grayetcletapersonbeatease,advertisingpeopleeverybodyknowseverything,anduseofperson,toexplainitssuperiorquality.1.7ThesourcesofinformationneedtomakeuseofintheprojectTherearetwodifferentwaystoresearchinformation.Oneistheprimarysource.Theotherissecondarysource.Appropriatelyidentify,IcollectanduseprimaryandsecondarydatathatisrelevanttothemarketingstrategyofNokia.Primaryresearchinvolvesthecollectionof\o"Data"datathatdoesnotalreadyexist.Themostcommonprimarysourcemayrefertothequestionnairesandinterviews.Byusingquestionnaire,youcangatherinformationfromawidepeopleandthereforegetanoverallideaofpeople’sopinions.Interviewscanprobefordeeperanswers,askforelaborationandexamples,discovernewrelationships,andmodifyquestionsastimegoeson.Interviewalsocanhelpcollectingdatamoredirectly,andtheyaremoretypicallytoobtainthedataIneed.Thetypeofsecondaryinformationsourcesreferredtohereinclude:internet,newspapers,magazines,books(e.g.reference,encyclopaedia,educational,fiction),brochures(e.g.holidays,products,andservices),financialstatements(e.g.bank,insurance,andbills),directories(e.g.telephone,yellowpages,andcompanies).Asecondarysourceisa\o"Document"documentor\o"Recording"recordingthatrelatesordiscusses\o"Information"informationoriginallypresentedelsewhere.Itisabestwaytoproduceaclearanalysisoftheexternalinfluencesaffectingthedevelopmentofamarketingstrategy.1.8ThemethodofresearchneedtomakeuseofintheprojectIusequestionnairestosurveythecustomersatisfaction.Questionnaireshaveadvantagesoversomeothertypesof\o"Statisticalsurvey"surveysinthattheyarecheap,donotrequireasmucheffortfromthequestionerasverbalortelephonesurveys,andoftenhavestandardizedanswersthatmakeitsimpletocompiledata.Questionnairescanbeusedtofindoutwhethercustomers'expectationsarebeingmetbycurrentproductsorservices.What’smore,Iobtainsomeusefulsuggestions.Ialsohaveinterviewadepartmentmanagertoobtainthecorrelativeinformationofcustomerneedsandexpectations.Thisisalsoanticipatingfuturetrendsandforecastingforfuturesales.Thisistheusefulwaystogetinformationfromorganizationiftheywishtokeeptheirentirecurrentmarketshareanddevelopmore.Apartfromtheprimaryresource,Iuseinternettogetinformationwitchisupdateandworldwide.WecanquicklygetthenewproductofNokiawhenuseinternet.ThemostimportantfactorthatcompanieslikeNokiaistechnologyinthecommunicationsmarket.Theykeepuptodatewithallthenewesttechnologicaladvances(likecameraandmotioncapturephones)tocapturethebiggestmarketshareandstayaheadoftheircompetitors.Inadditional,IalsogetinformationfrombooksinthelibraryofCentralSouthForestTheprimaryandsecondsourceshelpmegettingthepowerfulevidencestoprovemyissuesthattobeinvestigated.1.9Devisesomecriteriawhichwecanusetoassesstheimplicationsoftheproject.AtthemomentNokiaaretheworld'sbestsellingphonecompanywitchstrengtheneditsleadastheNo.1vendorinthemarket.WithallofthesecompetitorsinthemarketNokiamustkeepaheadofthegamebyrunningsuccessfulmarketingstrategies.Therefore,devisesomecriteriawhichwecanusetoassesstheimplicationsisverynecessary.ThemarketingmixThemarketingmixreferstothecombinationofelementswithinacompaniesmarketingstrategy,thesearedesignedtogivethecustomerwhattheywantandinthelongtermaredesignedtomaximizeprofits.Themarketingmixisbasedaroundtheideaofthe4P's,theproduct,theprice,theplaceandthepromotional.ThePESTanalysisPESTanalysisstandsfor"Political,Economic,Social,andTechnologicalanalysis"anddescribesaframeworkofmacro-environmentalfactorsusedinthe\o"Environmentalscanning"environmentalscanningcomponentof\o"Strategicmanagement"strategicmanagementTheSWOTanalysisSWOTanalysisisalsoanotherwayofdecidingonasuccessfulmarketingscheme,wemustlookatstrength,weakness,opportunityandthreat.SWOTanalysisaffectstheexternalfactorsonthedevelopmentofNokia'smarketingschemes.

Section2:PlanningTimescalesforconductingtheinvestigationIdentificationoftheresourcesincludingtimeneededtocarryouttheinvestigationCollectinganddata(marketshare,financialreport)thatisrelevanttothesuccessfulmarketingstrategyofNokiafromJanuary26toJanuary31.InvestigatingthemarketingmixwhichhasaffectedtheNokiafromFebruary1toFebruary28.UsingPESTanalysisandSWOTanalysistoevaluatethemarketingstrategyusedbyNokiafromMarch1toApril1.AtthebeginningofApril,Iwillfinishthedraftpaper,thenwiththehelpsofmytutortoperfectmypaper.AtthebeginningofMay,Iwillfinishthefinalpaper.Thisisthedetailstimescalewhichislistedasfollows:DurationActivityResourcesneededJan26th-Jan31stCollectingrelativedataandinformation.onlineinformationFeb1st-Feb3thAnalyzingthemobiletelecommunicationsmarketsituationFeb4th-Feb5thCollectingtheinformationofNokia’smarketingmixonlineinformationFeb6th-Feb8thFormulatingquestionnairesonlineinformationFeb9thDistributingquestionnairesFeb10th-Feb11thCollectingquestionnairesFeb25th-Feb28thAnalyzingquestionnairesMar03rd-Mar08thInterviewingwiththemanagerofdepartmentMar09th-Mar14thAnalyzingtheinformationgetfrominterviewsMar15th-Mar19thAnalyzeNokia’smarketingmixMar20th-Mar24thUsingPESTtoevaluateNokia’smarketingstrategyOnlineandbooksinformationMar25th-Mar29thUsingSWOTtoevaluateNokia’smarketingstrategyonlineandbooksinformationMar30th-April4thAstatementofconclusion.InvestigationApril5thMakingthefirstdraftofthereport.AboveresourcesApril6th-May4thModifyingthefirstdraftofthereport.May5thCompletingthefinaldraftMay8thSubmittingthefinaldraftSection1:DevelopingDetailedexplanationofhowtheissueaffectsthebusinessorbusinesseschosen1.1.1Nokia’smarketingstrategyinChinaNokia’sbrandingstrategyIhadaninterviewwithadepartmentmanagertoobtainthecorrelativeinformationofNokia’sbrandingstrategywitchisreferencetoprimarysources.NokiaGrouptheFinland-basedmanufacturerofmobilephones,hasbeensteadilyworkingonitscorporatebrandnameandthemanagementofconsumerperceptionsoverthelastfewyears.Itseffortshavepaidoff,becauseitisnowthenumberonebrandinmanymarketsaroundtheworld,effectivelydislodgingMotorolafromthatposition.Thebrandhasbeenbuiltusingtheprinciplesdescribedabove,andhasbeenconsistentlywellmanagedacrossallmarkets.Nokiahassucceededinlendingpersonalitytoitsproducts,withoutevengivingthemnames.Inotherwords,ithasnotcreatedanysub-brandsbuthasconcentratedonthecorporatebrand,givingindividualproductsagenericbrandpersonality.Onlynumericdescriptorsareusedfortheproducts,whichdonotevenappearontheproductthemselves.Suchisthestrengthofthecorporatebrand.Nokiahassuceededwhereotherbigbrandnameshavesofarfailed,chieflybyputtingacrossthehumanfacetechnology-takinganddominatingtheemotionalhighground.Ithasdonesointhefollowingway.Asthefocusisoncustomerrelationships,theNokiapersonalityislikeatrustedfriend.BuildingfriendshipandtrustisattheheartoftheNokiabrand.Andthehumandimensioncreatedbythebrandpersonalitycarriesoverintothepositioningstrategyforthebrand.Nokiaphonesareseenasbeingofthehighestqualityandthisisreflectedintheirmassivesalesfigures.Thefactthattheyareseentobesuchhighqualityproductsispartlydowntosuccessfulbranding,theyhaveahighlyrecognizablepackagingstyleandthestyleoftheirhandsetsissimilarineverylineofproductionwiththecompanynameprintedjustabovethescreenandjustbelowtheearpiece.Nokia’smarketsegmentationNokia,arguablythebiggestplayerintheworld,hasdividedthemarketintofoursegments:Hi-fliers:ThebiggestsegmentasfarasNokiaisconcernedconsistsof'Hi-Fliers',corporateexecutiveswhouseamobilephonetoincreaseproductivityatwork.Agedbetween25-45,thesegmentlooksfordatatransmissionandotherbusiness-relatedfeatures.Inmostcases,thecompanysponsorsthehandset,hencepriceisnotamajorconsideration.Trendsetters:Inanytechnologyadoptioncycle,thefirstsegmenttoadoptanemergingtechnologyisdubbedas'theearlyadopters'.ForNokia,theseearlyadoptersare'Trendsetters'whoaremostreceptivetoadvancedmodels.ThiswasthesegmentatwhichWAP-enabledmodelswereaimed.Socialcontact:ThethirdsegmentforNokiaistheupwardlymobile,socially-conscioussegmentthatusesamobiletostayintouch.Today'syouthandaffluenthousewivesconstitutetwomajorchunksofthesegment.Assured:ThefourthandlastsegmentasdefinedbyNokiacomprisesofCEOs,high-profilecelebrities,industrialistsandotherhigh"networth"individuals.Thefactthatthesegmentcannotdowithoutamobilephonemakesitthe'assured'segment.Inotherword,themarketsegmentationofNokiareflectsattwoaspects:Firstofall,accordingtothedifferentgroupofthecustomer,Nokiasegmentthecustomersanddevelopthecorrespondingmobilephonetomeetthedifferentneedsofcustomers.Secondly,differentlevelsofmobilephonepositfordifferentwaysofadvertisingstyleofinterpretation.AlloftheinformationisthesecondaryresourceswhichiscollectfromthelibraryofCentralSouthForestUniversityNokia'spricingPenetrationpricing-althoughthisstrategyisusuallyforNokiathataretryingtogaininstantmarketshareinanewmarket,Nokiaarealreadywellknowninthemarketstilldoitwithnewproductsthatcarrynewtechnologiessotheycantakemoremarketshareformtheircompetitors.Competitorbasedpricing-Nokiauseditwhenthereisalotofcompetitioninthemarketandacompanyislookingtotakeanother

companiesmarketsharebyofferingthesameorsimilarproductsforalowerprice.The2maintheoriesofNokia'scurrentpricingstrategyiscollectfromadepartmentmanagerwitchisalsoaprimarysources.TherearesomeseriesmobilephonesofNokialistingasfollows:Nokia’sPromotionsIusethesecondaryresourceswhichisresearchoninternettogettheinformationofpromotions.Nokiatendtopromotethenewtechnologiesandmobiledevicestheycreateusingonebigadvertisingcampaignthatfocusesonasingulartechnologyinsteadofeachindividualhandsetsotheycanappealtoalotofdifferentmarketswithonecampaign.ItispoplarwiththethemeparkadwitchcombineswiththeHuman-Technology.ChinaUnicomwillbeginalargescaleMayDayholidaypromotionalongwithseveralmobilephonemanufacturerpartnerswhichincludesSamsung,Motorola,Nokia,SharpandSonyEricssonreportsanarticleoverontradingmarkets.TheMayDayholidaypromowillinclude3GhandsetssuchasthehighendNokiaN97MiniandNokiaN97.Nokia’sPlaceTheproductareonlysoldintheelectricalsuppliersandstoresotherthendedicatedphonedealershipsaftertheintroductoryperiodsothephonescanremainlimitededition,asthiswillencourageyoungerconsumerstobuythem.ItisalsothesecondaryresourceswhicharecollectfromthelibraryofCentral1.1.2NokiasuccessinChinaNokia’sMarketshareThetableshowsNokia’smarketshareonthewebsite:/news/info9853.html.ThatisasecondaryresourceandreportedatSeptemberof2009.BrandMarketshare1Nokia33.3%2Samsung20.1%3Lenovo4.5%4Motorola4.4%5LG3.6%TheattitudesofcustomertotheNokia’smobilephoneAninternetresearchshowedsatisfactionwithNokiahadremainedveryhighdespiteincreasingcompetition.ComparisonwithothersinourindustryplacedNokiainthetop10%oftelecommunicationscompaniesgloballyandaheadofallkeymobilecompetitors.What’smore,Ialsoformulatethequestionnairetothecustomer.Italsogetsthehighestamongthemobilephonemarketfromthefeedback.Therefore,itreferstotheprimaryandsecondaryresources.Nokia’sFinancialreportOverall,thecashandcashequivalentsatendofperioddecreasesfrom2007to2009.However,thatisalsoahealthcashflow.1.2Assessmentoftheimplicationsoftheseeffectsforthechosenbusinessorbusinesses.ThemarketingmixThemarketingmixisbasedaroundtheideaofthe4P's,theproduct,theprice,theplaceandthepromotionalwhichlistabove.ThisisagoodcriteriontojudgeNokia’smarketstrategyandjudgewhetherisasuccessfulcompanyinChina.Productaccordingtothedifferentconsumergroups,Nokiasegmentstheconsumeranddevelopthecorrespondingseriesphonestomeetdifferentneeds.Therelisttheseriesasfollowsthatmaybethebestwaytomeetthetargetcustomers.Nokia3000series–ExpressionseriesTheNokia3000seriesaremostlymid-rangephonestargetedtowardstheyouthmarket.Someofthemodelsinthisseriesaretargetedtowardsyoung\o"Male"maleusers,incontrastwiththemoreunisexbusiness-oriented6000seriesandthemorefemininefashion-oriented7000series.Featurewise,the3000seriesslotbetweenthe2000and6000series.Nokia5000series–ActiveseriesTheNokia5000seriesaresimilarinfeaturestothe3000series,butoftencontainmorefeaturestowardsactiveindividuals.Manyofthe5000seriesphonesfeaturearuggedconstructionorcontainextrafeaturesformusicplayback.Nokia6000series–ClassicBusinessseriesTheNokia6000seriesisNokia'slargestfamilyofphones.Itconsistsmostlyofmid-rangetohigh-endphonescontainingahighamountoffeatures.The6000seriesisnotablefortheirconservative,unisexdesigns,whichmakethempopularamongbusinessusers.NokiaNseries–MobileComputerseriesTheNokiaNseriesisforpeoplewhowishtohaveadvancedmultimediaandconnectivityfeaturesandasmanyotherfeaturesaspossibleintoonedevice.PricingNokia'spricingstrategyhasprovenveryeffective,thisisdowntothefactthattheyfirstselltheirproductsforhighpricesandhave

verylimitedsalesbutmakebigprofitsoneachsale,theythenlowerthepriceoftheirproductandhavelotsmoresalesbuttheymakelessprofit,buttheystillmakealargeprofitduetotheamountofsales,theotherreasonthattheyaresosuccessfulisthattheyofferhighqualityproductsandtheysellthemforthesamepriceandsometimesevenlowerpricesthenthecompetitionandhavenowbuiltupthehighestmarketshare,theycurrentlyhave33.3%ofthemobilephonemarketshareandarethebiggestsellingmobilephonecompanyinChina.PromotionAsabigcompanyNokiaareabletodoalotofpromotingandadvertisingthatsmaller,lesssuccessfulcompanies,maynotbeabletoafford,suchastelevisionadvertisingandsponsoringlotsofeventsthatwillbeviewedorheardbylargeamountsofpeopleintheirchosenmarketsegment(eventssuchasmusicfestivalsandmusicawardsareagoldmineforcompaniesastheyareviewedbymillionsofpeopleworldwide).Advertssuchastelevisionandprintadvertswillbeputintocertainareassothattheycanattracttheirchosenmarketsegment,Nokiatendtoputalotoftheirprintadvertsinmen'smagazinessuchasFHMandLoadedsotheycanappealtoalloftheirreadersinsteadofasmallerpercentageofthereaderstheywouldattractinmagazinessuchasLifestyleandGoodHousekeeping.IthinkNokia'swayofpromotingisverygoodastheycanappealtomassmarketsandlargeamountsofpeopleintheirchosenmarketsegmentationwithcertainadvertisement'sandwithsponsoringlargeeventsliketheonesIhavepreviouslymentioned.Nokia'scurrentpromotionalstrategyisworkingverywellastheyareableto"talkto"alargenumberofconsumersindifferentmarketsratherthenthenichemarketstheoldpromotionalstrategieswhererestrictedto.Nokia'smarketingmixhasworkedverywelluntilrecentlyasthemarkettheyareaimingathasbecomemoreandmoresaturatedandafterlookingatallthemobilephonesalesfigures,itlooksasifthephonecompaniescanaimatthissameyouthmarketforaboutanother2yearsuntiltheyneedtochange,buttheyshouldchangesoonersotheycanstartmakingabiggerprofitandgetaheadstartonthecompetitionwhowillalsohavetochangethemarkettheyareaimingat.SWOTanalysisSWOTanalysisisalsoanotherwayofdecidingonasuccessfulmarketingscheme,wemustlookatstrength,weakness,opportunityandthreat.SWOTanalysisaffectstheexternalfactorsonthedevelopmentofNokia'smarketingstrategyandNokia’ssuccess.Strength(internalfactors)—IslookingatthecompaniescurrentmarketshareandresearchinghowrecognizedNokiaisamongstconsumersinthetargetmarket.NokiaiscurrentlyoneofthemostpopularMobilecommunicationscompaniesintheindustry.Weakness(internalfactors)—Thisisbasicallylookingatwheretheproductisfailingornotdoingaswellasitshouldinthemarket.

Nokia'sproblemsarethat:Theyarecurrentlyaimingtheirproductsatasaturatedmarketsegment.Opportunity(externalfactors)—ThisistheareainwhichNokiacanmakemoreprofit,orgainmoremarketshare.Thereare2waysinwhichNokiacancurrentlydothis:Improvethetechnologythattheyareusingtomaketheirphonesanduseintheirproducts,forexample,cameraphonesandadvancedpicturemessagingwouldattractnewconsumerstopurchasephonesundertheNokiabrandname.Usinginnovationtore-inventtheirproducts,changeanddevelop

withinthemarkettooffersomethingnoneofthecompetitorshave.

Alsothefactthatphonecallchargesarebeingforcedtofallshould

provetobeanopportunityforNokiatoselltothepeople,whopreviouslymayhavenotpurchasedaphonebecauseofhighercall

charges.Threat(externalfactors)—ThisislookingmainlyatthecompetitionthataretakingawayNokia'scurrentmarketshare.ThePESTanalysisTherearemanyexternalfactorsthatcanaffectamarketingstrategyfromplanning;thisiswhereyoumustusePESTanalysis.IoutlinedPESTanalysisoftheseexternalfactorsonthedevelopmentofNokia'smarketingschemesbelow:Technologicalfactors-Inthecommunicationsmarketthisisprobablythemostimportantexternalfactorinaffectingacompaniesdevelopmentoftheirmarketingstrategyastheymustalwayskeepuptodatewitheverychangewithinthemarketiftheyaretobesuccessfulandholdontotheirmarketshareadhopefullygainmore.

Nokiahavemanagedtobequiteenv