Post on 08-Apr-2018
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8/7/2019 IMR Assignment_Group2_Nokia Marketing Stratergy
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NOKIAS STRATEGIES TO
MAINTAIN MARKET SUPREMACY
SUBMITTED BY :
GROUP 2JYOTI PRAKASH CHOWDHURY
PEEYUSH THAKURRENGARAJAN KOTHANDARAMAN
SUPRIYA SEN
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Why Nokia is a Market Leader
A strong and well established brand knownfor this quality products and longevity
Strong Distribution channel with 45% of its 2
lakh retails outlets in rural areas of India.
Strong financial position of the company with
a good balance sheet and impressive ROIC &
ROC.
A company which leads by innovation &continuous improvement
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SWOT Analysis of Nokia
STRENGTH
1) Strong Corporate Brand Value
2) Superior Design, Quality ,technology & Longevity
3) Backward Compatibility features
4) Effective advertisement and market communication
5) Not only a tool for business but being an item for everyday
convenience
6) Better Outhouse Contracts with Big players like Microsoft , HP
7) Better Touch with the Market
8) Driven by Innovation & Differentiation
WEAKNESS
1) Unable to identify challenge from local players
2) Design to market takes more time
3) Weak Marketing Strategies
4) Limited promotion of new products in mass events like
IPL , bollywood events .
5) Less presence of products suited for youngsters &
women.
OPPORTUNITIES
1) Exploring Emerging markets (SAARC, Africa ,Brazil)
2) Online Personal Storage and social portal (OVI)
3) Utility Computing (Nokia Maps)
4) Dual SIM, Dual Network
5) Targeting Youth segment & women in rural market
6) Value for Money for customers
7) Lifestyle Marketing and Segmentation
8) Build Worldwide supplier Network
9) Pre-empting Competitors with innovative products
10) 3G enabled applications
11) Building of eco friendly mobiles
THREATS
1) Complacency
2) Cheaper mid-range mobiles from competitors
3) New competitors with different skills and potent brands
challenge
4) Major Competition in Smart Phones category from
Apple, HTC & RIM ,Micromax
5) Potential threat from Microsofts entry into mobile
telephony
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Why Market Share is falling
Nokia market share in India has fallen from 64 to52.2 %.
Possible Reasons : Poor Marketing Strategies in comparison to competitors With falling telecom prices ,there was no handsets in the
dual sim /dual network to match the customer demands. No handsets to match the feature rich phones from
competitors in the low price spectrum
Limited promotion /sponsorship of Nokia products in massevents like IPL ,IIFA, FIFA etc
Samsung Corby series and Micromax MTV series took
away major youth market from Nokia Nokias strength of Value for Money is being eaten away
by local players like Micromax , Videocon, Karbonn, Fly
Major competition in the high end spectrum from Apple ,Blackberry .
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How Micromax grabbed Market Share from Nokia
Tapping the New Market and Hidden Consumer Needs Targeting Youth and Youngsters with Games Phones ,MTV Music Phone and MTV
roadies Phone Thrust on Dual Sim / Dual Network (GSM/CDMA) phone markets Tapping the huge rural markets with low priced phones Tapping new markets in SAARC,Middle East , Africa and Latin America
Strong Supply Chain Management Creation of a strong distributor, retailers and logistics network Huge margins to dealers Discounts on advance payments eased payment collection
Targeted Low price spectrum Features rich phones at affordable prices Affordable QWERTY phones ,Double Sim
First in the Market & Major Differentiation factors First 30 day battery stand by phones with 1800mAh battery The First Gamolution Phone with motion sensor games & gravity sensor First Dual Sim/Dual Stand by /Network Switching (GSM/CDMA)phones
Brand Building Promotion and brand recall through IPL , Cricket Series & Hindi Movies Ads in MTV,Facebook,Gravity,EEZPad Akshay Kumar as Brand Ambassador & Twinkle Khanna for Bling phone campaign Promotion in major Bollywood events like IIFA
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SWOT for Micromax
STRENGTH
1) Ability to identify hidden consumer demand2) Dual SIM /Dual Network phones
3) Features rich phones in lower price spectrum
4) Major Brand Building & Promotion
5) Major first mover advantages in Youth segment
6) Capturing dealers & retailers with discounts &
other tactics.
7) Flexibility of pricing strategy
8) Better response to local need
WEAKNESS
1) Quality & Longevity not at par with Market leaders
like Nokia , Samsung , etc
2) Weak Brand image in the market
3) Limited presence in Global market
4) Less experience in the handset industry
5) Lack of extensive research and technology
6) Customer service and retention
OPPORTUNITIES1) Huge untapped opportunities in SAARC , Latin
America & Middle East
2) Expansion in the Youth segment with more music
and online portal domain
3) Rural markets
4) Collaboration with Major players in other countries
THREATS1) Major threat from Nokia entering the youth segment
2) Threat from Global players to introduce feature
rich lower price phones
3) Loss of differentiating factors from Competitors
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How Nokia can regain lost Market Share
Revamp Marketing Strategies
Build on the Strength factors Innovation ,Quality , Technology & Customer Service
Explore new market niches Dual SIM , Youth
Segment , Gaming Phones Target the rural women
Collaboration with NAVTEQ to providecompetitive advantage in location based
services Utilize OVI platform to the fullest to grab
market share
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Marketing Strategies for Nokia to
regain Market Supremacy
Customer Preferences
Product Portfolio & Quality
Time to Market
Marketing Strategies
Rely on the Four Pillars ofMarketing
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Study Consumer Preferences
Design Mobile phones
based on the category& preferences ofCustomer .
Following are the
category of Customersbased on usage and
attachment to themobile phone
Uninvolved
New Life Harmony
Voice as a Link
Adopters
Intense
Forerunners
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Increase Customer Satisfaction
AggressivePricing
Focus onHandset
Manufactureonly
EnhanceProduct
Portfolio
IncreaseDistribution
Channels
AdjustPreferencesfor specific
markets
IncreaseCommitmentto Emerging
Markets
EnsureAccountability
and Quality
CustomerSatisfaction
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Increase Product Portfolio & Quality
Low Price Spectrum
Increase low price
mobiles with highfeatures
Increase QWERTYphones ,Dual SIM in Lowprice
Maintain high qualityagainst price
Medium PriceSpectrum
Increase the range ofproducts and features inthe music , gaming &smart phones
Use OVI , Online portal tointroduce new features
High End Phones
Introduce handsets to
match againstcompetitors like Apple ,Microsoft
Extensive research andinnovation to capturemarket share from Apple& Blackberry
Expand into Enterprisesuited smart phones
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Improve Time to Market for Nokia
Improve understanding ofCustomer Needs
Optimize ProductDevelopment Process
Better Supply ChainManagement
Entry into Market based onProduct life cycle
Time to MarketStrategies
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Nokia -Marketing Mix for Success
Product
Improve Pioneering
Increase Sophisticated Application interface
Improve Customer Multimedia
Price
Enter Low price spectrum
Enable High features for optimum price
Determine proper price strategy to compete with rival products
Place
Local Manufacturing Facilities
Increased Distribution Network
Increase owned stores
Brand &Promotion
Sponsoring Events related to Bollywood and Cricket
Increase brand endorsements
Distribution
Enter new JVs with other manufacturers
Strategic Alliances with local service providers
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Reality Check
A reality check on whether the necessary stepshas been taken by Nokia to regain supremacyhas given positive results :
Nokia is launching Nokia Ovi phones to match the
killers Andriod from Google and iPhone from Apple
Nokia X5 series launched to capture youth imagination
Nokia to launch phone to capture rural womensegment
Nokia is campaigning online against cheap phones of
Micromax , Fly ,Videocon etc
Nokia plans to kill local players by invading Dual Sim,Dual Network ,High features low price phones
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Thank You !!