A Presentation on

K.K. Parekh Institute of Management Studies (Amreli)

PLC of Nokia & Samsung

Prepared by:-

Mehul Rasadiya

Product Life Cycle

Product life cycle describe the changes in consumer demand over time. No product can be in demand forever. Trends, technology and lifestyles change, which affects consumer demand.

a

1.Focused on handset manufacture only

2.Enhanced product portfolio

3.Large distribution channels

4.Adjust preferences for specific markets

5.Customer satisfaction

6.Focused on replacement (Recycling)

MARKETING STRATEGIES OF NOKIA

Time

Sale

s or

Pr

ofits

Growth

Maturity

Decline

Introduction

Sales curve

The Concept Phones

Nokia E- series

Nokia Symbian & N- Series

Nokia Windows & Symbian phones

PRODUCT LIFE CYCLE OF NOKIAStages Time Duration

Introduction 1995 - 2002

Growth 2002 - 2009

Maturity 2009 - 2011

Decline 2011 to till now

INTRODUCTION STAGE ( 1995 – 2002)

NOKIA 2110

PRODUCT

1. Entered India in 19952. Launched very few models due to lesser demand & innovation3. Sold both GSM & CDMA phones4. Launched 1st model Nokia 2110 with Nokia tune5. 2110 was 1st model capable of sending/receiving sms6.Competed with the then market leader ‘Motorola’

1. Followed ‘Price Skimming’ strategy

2. Launched Nokia 2110 at Rs. 22000 (approx.)

3.Launched phones in the range of Rs. 15000 to 25000

PRICEa

China/ChennaiGurgaon’s

mother warehouse

HCL India warehouse

Sub-distributors (BSB Marketing-

South Delhi)

Nokia Priority Dealers/Organis

ed retail

Customers

PLACE

1. Rarely followed any discounting policy

2. Offered a good amount of backend profit to retailers

3. Mobility factor of mobiles attracted customers without any promotional scheme

PROMOTIONa

a

Growth rate 1120%

GROWTH STAGE ( 2002 – 2009 )

Launched phones without external antenna

Had better features like games, alarm, ergonomic keypad, display etc.

Models like Nokia 3310/3315 marked beginning of growth stage

Launched models like N95 to compete with Apple’s i-phone

PRODUCTa

PRICEa

1. Followed ‘Price skimming’ strategy in beginning of ‘growth stage’

2. Launch price of 3310 was approx. Rs. 21000/-

3. As profits & popularity increased prices were slashed to Rs. 5000/- in 2003 for popular models like 3310

4. Later-on in coming years, Nokia adopted ‘Price penetration’ strategy

China/Chennai

Gurgaon’s mother

warehouse

HCL India warehouse

Sub-distributors (BSB Marketing-

South Delhi)

Nokia Priority Dealers/Organi

sed retail

Customers

PLACEa

1. Post-paid connections were given free with select Nokia models

2. Person owning ‘pager’, who purchased Nokia phones were given discount on post-paid tariffs

3.Dealers & retailers got a large amount of ‘backend profit’ to increase the sales & drive growth

PROMOTIONa

a

MATURITY STAGE ( 2009 – 2011 )

Growth rate 45%

Launched a lot of touch screen models

Launched 1st Maemo 5 OS phone N-900

Launched Qwerty+touch model N-97

Focussed on E-series phones to compete with Blackberry

PRODUCT a

1.During 2007, 15,000 ton packaging material has been saved by using smaller packaging

2. Nokia have reduced amount of printed material inside the box

3. In 2007 Nokia began to increase level of recycled content

Packaging is important because it protects products as they make their way from factory to customers

Attractive, Good & Secure packing

PACKAGINGa

Followed ‘Price penetration’ strategy to sustain growing competition

Launched models ranging from Rs. 1000 to Rs. 30000

Frequently reduced prices of popular & low end models to compete with Micromax, Samsung, LG, etc.

PRICE

China/ChennaiGurgaon’s

mother warehouse

HCL India warehouse

Sub-distributors (BSB Marketing-

South Delhi)

Nokia Priority Dealers/

Organised retail

Customers

PLACEa

PROMOTION

1. Offered combo discount on purchase of Nokia bluetooth stereo headset with N8.

2. Offered Sennheiser music headset free with select models

3. During festive occasions Reebok wrist watches, sunglasses, t-shirts & sling bag were also given as gift with select models

4. Scratch cards were given to customers to make them avail instant discount

q

Growth rate - 62%

DECLINE STAGE ( 2011 – till now )

Upgraded its Symbian OS with ‘3’ & ‘Belle’

Shifted focus on Windows as its main OS

Launched 1st Windows phone, Lumia 800

Used Symbian only in low end models

PRODUCTa

a

PRICE

1. Price penetration strategy was continued as company’s profits declined due to cut-throat competition from Samsung & local players like Micromax

2. Had phones ranging from Rs. 1000 to Rs. 30000

3. Reduction in price also lead to deterioration in quality

China/ChennaiGurgaon’s

mother warehouse

HCL India warehouse

Sub-distributors (BSB Marketing-

South Delhi)

Nokia Priority Dealers/Organi

sed retail

Customers

PLACEa

PROMOTION

1. Companies distributed freebies like wrist watches & t-shirts with Lumia logo engrossed

2. During festive occasions Reebok wrist watches, sunglasses, t-shirts & sling bag were also given as gift with select models

3. Top 3 performing stores from each zone were selected for foreign trip organized by Nokia free of cost

4. Retailers were encouraged to sell Lumia phones by offering them more incentives on sale

1.Focused on all the electronics manufacture

2.Enhanced product portfolio

3.wide distribution channels

4.Adjust preferences for specific markets

5.Taeget all the segments.

6.Focused on Competition

7.Increased commitment to emerging market

8. Provide more than extra.

MARKETING STRATEGIES OF SAMSUNG

Time

Sale

s or

Pr

ofits

Growth

Maturity

Introduction

The Concept Phones

Touch screen &Dual Series

Smart Android Phone& Galaxy series

PRODUCT LIFE CYCLE OF SAMSUNGStages Time Duration

Introduction 2001 - 2006

Growth 2006 - 2011

Maturity 2011 – till now

INTRODUCTION STAGE ( 2001 – 2006)

SAMSUNG R220

PRODUCT

1. Entered India in 20012. Launched very few models due to lesser demand & innovation4. Launched 1st model Samsung R220 with Simple blue display.6.Competed with the then market leader ‘Motorola’ and Nokia.

1. Followed ‘Penetration Pricing’ strategy

2. Launched Samsung R220 of Rs.9000/- (apx.)

3.Launched phones in the range of Rs. 8000 to 20000

PRICEa

Koriamother

warehouse (Delhi)

Sub-distributors (All the State)

Samsung Dealers/

Organised retail

Customers

PLACE

1. Samsung follow discounting policy. (as par mobile phone)

2. Offered a good amount of backend profit to retailers

3. Advertisement in Print Media

PROMOTIONa

GROWTH STAGE ( 2006 – 2011 )a

Growth rate 1480%

Launched phones without external antenna

Had better features like games, alarm, ergonomic keypad, color display etc.

Wide range of simple or Dual sim mobile marked beginning of growth stage (GURU)

Launched wide range of touch screen mobile phones to compete nokia

PRODUCTa

PRICEa

1. Followed ‘Price penetration’ strategy in beginning of ‘growth stage’

2. Launch simple mobiles with price of Rs. 2000 – 4000

3. Touch screen ( 9000 – 22000)

Koriamother

warehouse (Delhi)

Sub-distributors (All

the State)

Samsung Dealers/

Organised retail

Customers

PLACE

1. pre-paid connections(Idea,airtel,vdafone) were given free with select any samsung models

2. Gifts (kitchen ware).

3.Dealers & retailers got a large amount of ‘backend profit’ to increase the sales & drive growth,

PROMOTIONa

4. TVC, Sales promotion , Print media

a

Growth rate 67%

MATURITY STAGE ( 2011 – till now )

Launched Smart phones with android

Galaxy series

Launched Windows phones to compete Nokia Windows mobile

Focussed on Galaxy S series phones to compete with All the competitors

PRODUCT a

Followed ‘Price penetration’ strategy to sustain growing competition

Launched models ranging from Rs. 6000 to Rs. 60000

Frequently reduced prices of popular & low end models to compete with Micromax, Sony, LG, etc.

PRICE

Koriamother

warehouse (Delhi)

Sub-distributors (All

the State)

Samsung Dealers/

Organised retail/

Smart Galleries

Customers

PLACE

PROMOTION

1. Special Offers on Credit card payment for above price of Rs. 20000

2. TVC for Galaxy Series 3. Discount Coupons4. Print Media ( Business Magazines)

Comparison of Growth rate

Introduction Growth Maturity Decline-200%

0%

200%

400%

600%

800%

1000%

1200%

1400%

1600%

0%

1120%

45% -65%0%

1480%

67%

Growth Rate

NokiaSamsung

1995 1998 01 04 07 10 13 16

Intro. Intro.

Growth

Maturity

DeclineMaturity

Growth

Nokia Samsung

Year

Gro

wth

PLC Comparison