1. Nokia Markets
INTRODUCTION:
The purpose of this report: Research the marketing theories and bring innovation into our
marketing plan as a group. Most importantly is to work together as team, therefore we had
decided that Nokia product (7210) would be the choice for our research.
I. COMPONENTS OF MARKETING PLAN:
Company Background:
The enormous telecommunication giant Nokia was founded by Fredrik Idestam in 1865. In
1992, Nokia is focused on wireless and wired telecommunications business. In 2002 Nokia
launches its first 3G phone (Nokia 6650). In 2007 Nokia recognized as 5th most valued brand
in the world. Nokia Siemens Network produce telecommunications network equipments,
solutions and new internet services brand. Now Nokia had 112,262 employees in 120
countries, sales in more than 150 countries and global annual revenue of 51.1 billion Euros
and operating profit of 8.0 billion as of 2007. It is the world's largest manufacturer of mobile
telephones: its global device market share was about 39% in 2008. Nokia produces mobile
phones for every major market segment and procedure, including GSM, CDMA, and W-
CDMA.
In the phone industry, Nokia are the world's best selling phone Nokia’s strengthened. It’s lead
as the No. 1 wholesaler in the market during 2000 with shipments growing 66 percent over
1999. Some of the company's success was attributed to a strong second half in 2000 when
59 percent of sales happened.
Table below which shows market share of Nokia:
1. Nokia (34.7%)
2. Motorola(15.5%)
3. Samsung(9.6%)
4. Siemens(8.8%)
5. Sony-Ericsson(6.4%)
Competition in the market: Nokia will have lots of competition in the phone market, they
include:
* Sony Ericsson
* Samsung
* Motorola

2. * Siemens
* Panasonic
The competition in the phone market is related to the up to date of new technology for phone
and the accessories going-with. All brands try to launch the new series phone in short time to
attract the customers. If Samsung have the 5pxl camera series, the others will launch the new
phones with the same or better to this series.
Distribution situation: The product of Nokia has distributed world- wide through Asia,
Africa, Europe and America. The brand name for phone and accessories can find easily from
Nokia stores, showrooms, E-stores system and others retailer channels.
Micro and macro-environment situation: For this marketing research, Nokia has done
analysis factors such as the P.E.S.T factors (political, environmental, social and
technological) and also S.W.O.T factors (strength, weakness, opportunity and threat). The
reason for this purpose is an organization should always know what is happening within their
selected market, if it is changing, saturation, technological advances, slowing down or rapidly
growing, being up to date on this is necessary for companies to carry on. There are some
details.
* P.E.S.T:
Political: - the G3 technology controls that Nokia have to consider because many business
want to make the profit in this industry so they may be attracted to take in their customers
about prices, quality of products and the accessories of their products. They try to cut cost of
production by using lesser quality materials in their products: weaker materials for Nokia
cases and batteries. Moreover, they have to ensure that the waste of their production may not
be polluted the environment. It is the big legal trouble.
Environmental social and ethical: - Nokia have handled to be good atmosphere, friendly and
have not made illegal things to against the environmental issues and ethical which are
engaged to the government laws. Beside the quality of products, this is one of the reasons
they are such a popular brand of mobile phones.
Technological: is the most important factor in the market technology that companies like
Nokia had to mind. They stay up to date with all the newest technological go forwards (like
high quality camera and movies phones) therefore they can get the biggest market share and
stay at the 1st place of their competitors.
*S.W.O.T: - It is the way of deciding on a successful marketing plan:
Strength: - Is looking at the company current market share: Nokia's net sales for the October-
December in 1997 came to a total of 15 857 million which was a 34% increase from 1996.
Nokia is currently one of the most popular Mobile communications company.
Weakness: - They are recently seeking their products at a flooded market sector. Their wage
costs are forever rising. Higher value of import charges has been set. There are some high
supply-chain costs that Nokia are paying at the moment.

3. Opportunities: - This is the area in which Nokia can make more profit, or gain more market
share.
Threat: - The competition that are taking away Nokia's current market share and the
government legislations (the total costs of 3G licensing in Europe is 110 billion Euros) that
could hold back Nokia's development and profit.
3. Marketing management process:
Market opportunities: this is two key things that Nokia apply to get into the phone market
opportunities
1. Improve the technology to make phones and products as camera and picture messaging
would draw new consumers to purchase Nokia phones.
2. Using improvement to recreate products which are presented as new phone, the others
competitors don’t have. The call charge price fall, it should be an opportunity for Nokia to
sell more because now people can effort to have more than want phones and willing to pay
for the cheaper of call charge.
The target customer:
It helps decide what market segment to intend by looking at the habits of customers. They
make decisions about the type of products, advertising, promotion, pricing and packaging.
Nokia will need to know about the following:
1. Estimating the current and future market size: How much and often they buy for estimating
the market size, sales and other factors.
2. Market segments: The types of goods customers:
Demographic: Age, gender, sex, income.
Geographic: Area of living, cities.
Psychographic: lifestyle, taste, fashion and favorites.
Example: Teenagers/Young Adults (15 – 27yrs) Students Product: Anatomy: Core – Mobile
Phone Actual – Nokia 7210 Augment – FM Radio, WAP, Games, Nokia 7250
(enhancement/updated version of 7210) Networks (i.e. Orange, O2, T-mobile, Vodaphone)
Brand: Nokia launch as economy phones.
3. Choosing suitable segment: Nokia has many series of phones to enter the market, mid-
price phones and luxury phones.
The marketing mix
1.Price- The Nokia phones are often sold at high prices expected from $200. The price of
phones reduces after an introduction stage about 2 months. Nokia's prices are at competitor
based, so consumers do not mind paying a bit more money for the well known brand.

4. 2. Place: - Nokia phones are commonly sold at all mobile phone traders such as Warehouse
and The Link, although they are also selling at retailers and other electrical suppliers.
3. Promotions: - Nokia is likely to promote the new technologies mobile devices they create
using one big advertising promotion that focuses on a particular technology rather than each
handset so they can show to several markets with one promotion set.
4. Product: - Nokia phones tend to contain all the latest tools and a lot of the consumers
aspects such as text messaging and games. Now, phones are getting small enough to fit in
your hand as regular. Most of the phones produced currently have accessories that consumers
like buy with them: in-car chargers, carry cases, kits and hands free. Nokia a lot of profit
equal its high priced.
4. Marketing research:
A businesses success is based on whether they can give the customer what they want and
when they want it. Market research involves the collection and analysis of data relating to the
consumption and marketing of relevant goods and services through persuasive advertising.
There is a market for mobile phones but the current market gap has become saturated so
Nokia need to find a new market segment to try their products. Companies need to gather
information on the following of the consuming population:
- Consumer behavior- How does customers react to new and developed products by
advertising?
- Buying outlines and sales trends: - They also need to understand how buying outlines
change over time and what markets are developing to enter the market.
· Consumer favorites- What customers are looking for in the product? Nokia need to examine
how their competitors are adjusting their prices to meet the consumers need, how well the
competitors are trading and their strategies.
5. Product: The actual (tangible) product is the Nokia 7210. As an international
telecommunications company, Nokia develops and makes mobile phones, networks and
systems for wireless and fixed networks. The company also provides other multimedia
equipment.
Branding: Nokia phones have the highest quality. It is reflected in their huge sales numbers.
They have a highly identifiable packaging style which is similar in every line of production
with the brand name printed above the screen and just below the headphone. Nokia take such
an aggressive marketing strategy has promoted them above the competition as consumers are
fooled into believing that branded products are "better" then un-branded products.
Product life cycle:
Introduction stage: when mobile phones were first launching there were only a few
companies as well as Nokia in the market (Sony, Samsung est.) so they could charge higher
prices then they can at the present time in the product life cycle because no companies would
challenge to enter a price war with such a new product of famous brand name and good
promoting and advertising. Price: $299.95 - $219.99 for Nokia 7210.

5. Growth: It has high promotion costs engaged. This is due to the fact that mobile phones are
becoming started as a consumer need. Other companies settle on enter the growing market.
Although companies do not need to guarantee customers that they need a mobile phone,
Nokia have to guarantee the customers that they want a Nokia phone where the high
promotional costs issue from.
Maturity: The promotional costs decreased as the popular brands, such as Nokia and
Samsung, have collected the majority of the market share. They show customers that they
have a new model out and it sells well.
Decline: Nokia had reported the first drop in sales in the first quarter of 2002. The companies
are now heavily promoting. Their new MMS try to get out of decline and back into growth.
The technological in advanced phones recommend motion picture capture and the
opportunity to watch television on your handset.
Development product strategy
3G refers to the third generation of developments in wireless technology, especially mobile
communications. While 3G is generally considered applicable mainly to mobile wireless, it is
also relevant to fixed wireless and portable wireless.3G offers the potential to keep people
connected at all times and in all places. With the enhancement of 2G Technology, Nokia had
develop 3G Technology into its mobile product and come up with the N series to challenge
other competitors. 3G includes capabilities and features such as:
• Enhanced multimedia (voice, data, video, and remote control).
• Usability on all popular modes (cellular telephone, e-mail, paging, fax, videoconferencing,
and Web browsing).
• Broad bandwidth and high speed (upwards of 2 Mbps).
• Roaming capability throughout Europe, Japan, and North America.
Pricing strategy: based on 2 main theories:
1. Penetration pricing: - although this strategy is usually for companies that are trying to gain
instant market share in a new market, companies who are already well known in the market
still do it with new products that carry new technologies so they can take more market share
from their competitors.
2. Competitor based pricing: - this is used when there is a lot of competition in the market
and a company is looking to take another companies market share by offering the same or
similar products for a lower price, this happens a lot in the communications market and this
strategy is used by every mobile phone producing company that is still in business.
Marketing distribution:
Strategy Nokia distribution channel for the Nokia 7210 is Selective. Before deciding which
distribution channel Nokia will sell their phones, they look at a few factors such as most of
Nokia customers are businessman and young people. Nokia have found a new distribution

6. channels which is their own website and other mobile online shops. Students buy products
online by "Surf" Internet pages. Many businessmen are so busy to go shopping for a mobile
phone and find quicker by using the internet. The Nokia 7210 was advertised very early on
Nokia website they also allowed customers to order the phone early so they would be the first
one to receive it.
Promotion mix:
Some of Nokia promotions that they used in 2002: Sales Promotion Nokia gave away a free
photo fun pack, which is available to all customers who purchase Nokia 7210. So that
customers can send photo messages. The Nokia 7210 does not come with built in camera.
However you can purchase this phone for an extra $80. The Nokia 7210 comes also free with
head phones so that customers can listen to the built in radio.
Public Relations: getting a membership for Nokia Club, the society for Nokia phone owners,
Nokia launched a promotional promotion, which includes a consumer promotion, supported
by radio advertising. Example: winning a Mini Cooper car each month during April, May or
June, as well as a retailer motivation to win a VIP trip for two to the Italian Grand Prix.
Summary
Firstly, we started to write the company background and the competitors in the market. The
environmental factors like micro and macro environment to explain the situation of what is
P.E.S.T and S.W.O.T. then we will look into Research and Development management
process that give an overlook of the market opportunities and targeting of customer. Given
these information, we can proceed to look into the product and its branding. Analysis the
product life trend, Development product strategy and pricing strategy. Monitor and manage
the organization's own sales and distribution activities. Finally, A promotional mix specifies
how much attention to pay to each of the four subcategories, and how much money to budget
for each. A promotional plan can have a wide range of objectives, including: sales increases,
new product acceptance, creation of brand equity, positioning, competitive retaliations, or
creation of a corporate image.
|Table of Content |
|1) |Company Background |
|2) |Competition in the market |
|3) |Distribution situation |
|4) |Micro and macro-environment situation |
|5) |Market opportunities |
|6) |The target customer |
|7) |The marketing mix |
|8) |Product life cycle |

7. |9) |Development product strategy |
|10) |Pricing strategy |
|11) |Marketing distribution |
|12) |Promotion mix |
|13) |Summary |
II. RECOMMENDATIONS:
Our group would recommend Market Research is the most essential in any company as
Market research broader in scope and examines all aspects of a business environment. It asks
questions about competitors, market structure, government regulations, economic trends,
technological advances. For example Product research - This looks at what products can be
produced with available technology, and what new product innovations near-future
technology can develop.
IV CONCLUSIONS:
In this Marketing plans group Assignment, there are a lot of proceed that we need to take
note. During this learning process, we found out that every components of marketing plan is
important. So we had to put extra effort to do our research in order to get our information
correctly. This group Assignment is not talking about only doing our research only but it also
tell us to be cooperative and united. So that we can face challenge as a group and
accommodate each other when anyone of us need assistance.
V References:
Jim Blythe and Alan Zimmerman, 2005, Marketing Management, Thomson, UK, London
Philip Kotler, Didak C.Jain and Suvit Maesincee, 2006, Marketing Moves, Harvard Business
School, USA, Boston