Term PaperCourse : Principles of Marketing (MKT-101)

Prepared For

Kashfia Ahmed

Senior Lecturer

Department of Business Administration

East West University

Prepared By

Name IDMd. Walid Bin Karim 2010-3-10-278

Md. Fuad Rahman 2010-3-10-277

Kamrun Nahar Kashem 2010-3-10-001Shamsul Ahsan 2010-3-10-099Shagor Mahmud 2010-3-10-110

Section : 02

Date of Submission : 3rd August, 2011

Acknowledgement

First of all, we would like to say Alhamdulillah, forgiving us the strength and health to do this projectwork until it was done. We would also like to thank ourparents for providing money which was required to buythings that are related to this project work. Moreover,the advices of our family members were of a great help.Internet, text books and computer were a part of thesources of this project.

Then we would like to thank our teacher, Kashfia Ahmedfor guiding us throughout this project. We had somedifficulties in doing this task, but she taught us

patiently until we knew what to do. She tried and triedto teach us until we understand what we supposed to dowith the project work.

Last but not least, my friends who were doing thisproject with us and sharing our ideas. They werehelpful that when we combined and discussed together,we had this task done.

Executive SummaryNokia is a mobile telecommunications company, andoffers far more than just mobile phones for everydayuse. They offer networking solutions for businessesthat help businesses stay connected and communicatewith each other at all times and places. For them,Nokia also offers special mobile phones with exquisiteand unique functions and options. In this project, we

will first talk about what Nokia is and what they do.We will talk about their history, and how they came towhere they are today. Vision, goals, and their strategyare discussed, and last but not the least theirmarketing Strategy, market segmentation, targeting andpositioning.

Vision Nokia’s mission is simple, Connecting People.

Nokia has recently outlined its new strategicdirection, including changes in leadership andoperational structure to accelerate the company’s speedof execution in a dynamic competitive environment.

Major elements of the new strategy include:

Plans for a broad strategic partnership with Microsoft to jointly build a new winning mobile ecosystem.

A renewed approach to capture volume and value growth to connect ”the next billion” to the Internet in developing growth markets

Focused investments in next-generation disruptive technologies

A new leadership team and organizational structure with a clear focus on speed, results and accountability

StrategyNokia’s strategy is about investing in and ensuringNokia’s future. “I have incredible optimism because Ican see fresh opportunity for us to innovate, todifferentiate, to build great mobile products, likenever before, and at a speed that will surpass what wehave accomplished in the past,” Elop said. “We aregoing forward. We are not going backwards. We have astrategy. We have a path. We have a future. And we candeliver great mobile products. And despite all of thesechanges, we remain true to our mission, that ofConnecting People.”

Keys to SuccessNokia is upping the ante in the growing battle overdigital convergence. The Finnish mobile-phone giant hasstaked a claim in the nascent business of wirelessmusic-on-the-go, announcing a little-noticed deal onAug. 9 with Loudeye a Seattle-based startup, tocollaborate on technology for downloading songs over

the air to mobile phones. If the partnership works,mobile phones could become stronger competitors toportable music players such as the Apple iPod. Equallyimportant, Nokia could help mobile operators develop alucrative new revenue source from selling anddistributing digital music.

Competition in the market With all this technology available in the communications market it is obvious that Nokia will have lots of competition, they include

1. Nokia 37.2% (34.7% 1Q02)

2. Motorola 17.3% (15.5%)

3. Samsung 9.8% (9.6%)

4. Siemens 8.5% (8.8%)

5. Sony-Ericsson 5.2% (6.4%)

Introduction (Market Stratrgy)

Nowadays, the true ‘market capturing’ data applicationis text messaging, a typical example of person toperson communcation Other end-user services, however,have not taken off as expected in recent years. Theprimary reason for this slow take-up is that most ofthese services do not fulfill the expectations ofusers. Although ring tones are one example ofsuccessful person-to-content services, progress must bemade for market take-up of other mobile data servicessuch as:

• Messaging (e.g., MMS and e-mail)• Entertainment (e.g., graphics, logos, games)• Information (e.g., directory services, news)

Company Profile Type: Public Company

Industry: Telecommunications, Internet, Computer software

Founded: Tampere, Finland (1865)

Founder(s): Fredrik Idestam, Leo Mechelin

Headquarters: Espoo, Finland

Area Served: Worldwide

Products: Mobile phones, Smartphones, Mobile computers,Networks

Revenue €42.45 billion (2010)

Operating income: €2.070 billion (2010)

Net income: €1.850 billion (2010)

Total assets: €39.12 billion (end 2010)

Total equity: €16.23 billion (end 2010)

Employees: 132,430 (end 2010)

Website: www.n okia.com

Market Segmentation

Market segmentation is one of two general approaches tomarketing; the other is mass-marketing. In the mass-marketing approach, businesses look at the total marketas though all of its parts were the same and marketaccordingly. In the market-segmentation approach, thetotal market is viewed as being made up of severalsmaller segments, each different from the other. Thisapproach enables businesses to identify one or moreappealing segments to which they can profitably targettheir products and marketing efforts.

Geographic Segmentation:

Nokia divides a market into different geographic unitssuch as nations, states, regions, countries, cities andneighborhoods. Like

Brazil China

India

Finland

Great Britain

Hungary

Mexico

Romania

South Korea

Demographic Segmentation:

Age: Nokia music express for youth, N series and Eseries for middle aged and corporate people.

Gender: Nokia Supernova 7610 for female users.

Income: If income of a person is high then Nokiahighlights N800, C3 etc. If income of a person is lowthen Nokia offers its models like Nokia 1600.

Occupation: A day earner would use Nokia 1600. On theother hand people working in the corporate field woulduse E series phones.

Education: Purchasing power of people has changed.Thus, young generation has the ability to buy stylishphones that Nokia is providing such as Nokia C2 andmany more.

Race: If we consider the two countries India andBangladesh then we can see that Nokia is providingNokia 3110 in which one could write in Hindi languagewhereas, Nokia also offers Nokia in which one canwrite in Bengali language.

Psychographic Segmentation:

Income: Day earners use a cheaper Nokia handset such asNokia 1100. Occupation: People belonging to a working class mightbuy Nokia 6300.

Education: People who belong to middle class familiespurchase affordable Nokia phones such as Nokia 2220.

Wealth: People belonging to an upper class would buyN800, E97 etc. Life-style:

Personality characteristics: A person would buy aNokia handset which reflects his/her personality.

Benefits: Nokia provides a number of benefits to itscustomers. These include high customer service,applications such as

User status User rates Loyalty status Rediness status Attitude toward product

Market Targeting: Targeting

Evaluating Selecting

Evaluating

Michael Porter’s Five Forces Model :

Threat of new entrants: Patents, Rights, BrandBuilding, Absolute cost advantage,Strong DistributionChain.

Threat of new entrants

Rivalry among existing competitors

Threat of substitute products

Supplier’s power Buyer’s power

Example : Symphony.

Suppliers power: Bargaining power of suppliers.

Buyer’s power : Not available in this case.

Rivalry among existing competitors: Motorola, Sony Ericsson, Iphone,nokia.

Threat of substitute products: Not available in thiscase as land phones are not so popular now-a-days.

SelectingFour Strategies

Undifferentiatied market: Not available in this case asSAMSUNG is segmenting the market.

Differentiated market: SAMSUNG has divided the marketin different segmentation. Like age, gender, income.

Example: A day earner would use SAMSUNG. On the otherhand people working in the corporate field would useGALAXY series phones. this is segmentation by income.

Concentrated market: Not available in this case asNOKIA is segmenting the market.

Micro marketing: Not available in this case as NOKIA isnot offering any custom made cell phone.

Positioning

Positioning Tools

Product differentiation: The product of Nokia is easilydifferentiable because of the look, style, shape,model.

Example : Nokia N8

Service differentiation: The services of Nokia customercares are totally different.

Example: Nokia priority dealer.

Image differentiation: Nokia has a unique logo whichcan be easily recognised.

People differentiation: Nokia has appointed the mostskillfull customer service managers in their customercares.

Possible value proposition

Price

More The Same Less

More

The Same

Les s

Benefit s

More

For

More

More

For

The Same

More

For

Less

The Same

For

Less

Less

For

Much less

More benefits for more price: Nokia N8. Offering morestylish look, applications at a high price

More benefits for the same price : Nokia 5800. Offeringoffering t-shirts with every phone.

More benefits for less price: Nokia C2. Offering dualsim option at a lower price of 3,000 BDT.

The same for less: Nokia E63. Which is offering almostsave service as E71 but at a lower price.

Less for much less: Nokia 1600. Offering less serviceat a lower price.

Developing a positioning statement

To: The target market of Nokia are several, Such asMusic express phone for teenagers and E-Series phonesfor the corporates.

Our: Nokia, the name, logo and the slogan representsthe company.

Is: The main concept of Nokia is providing cell phonesto the consumers.

That: Nokia is different then any other cell phonecompany because of the qualities of their products,service.

Perceptual positioning maps1. Nokia 2. Samsung 3. LG 6. Sony Ericsson 7. Motorola 8. HTC

High

Style/Look

Low

Marketing Mix

4 P’s

Product: Nokia is offering diffent type of cell phonesfor their customers.

Place: Nokia has opened their Nokia care shop allaround the world to supply their products to thecustomers.

Price

Price: Nokia is offering various types of cell phonewith different price tages.Such as Nokia 1200 at 2,500BDT.

Promotion: Nokia is broadcasting their televisioncommercials and using billboards for their promotion.

Referral Links

http://en.wikipedia.org/wiki/NOKIA

http://www.nokia.com/about-nokia/company/vision-and-strategy

http://www.scribd.com/doc/32700183/Marketing-Strategy-of-Nokia

http://www.scribd.com/doc/19039775/Nokia

http://www.123helpme.com/view.asp?id=120850

http://images.google.com/imgres?q=billboard+of+nokia&hl=en&biw=1366&bih=704&gbv=2&tbm=isch&tbnid=Jj-Bp_wqPgRktM:&imgrefurl=http://www.behance.net/gallery/THE-KRAH-NOKIA-ADVERT/178046&docid=o7fWK_1vddD8IM&w=600&h=450&ei=AlA4TsupFYHirAeo__0Z&zoom=1&iact=rc&dur=407&page=1&tbnh=127&tbnw=169&start=0&ndsp=28&ved=1t:429,r:10,s:0&tx=56&ty=49