This research is on the product of Nokia 8210, including the state of price, the elasticity of demand and the state of competition which affect Nokia 8210 and the firm in the mobile phone market.

About the questions:

The market is price sensitive and Nokia will start to see worldwide manufactures compete havily against it in the mobile phone market. In this case ,I will take Motorala T190(one of the most strong competitor with Nokia8210) for comparation.  

Since been put on to the market, Nokia8210 has experienced several price decrease from approxi.$200 to $150.As the other competitors tend to respond quickly,Nokia was involved in the price wars inevitably.

(All the survey will be done on the Internet).

Research Questions for each question:

1. How is the product affected by price and non-price competition?

Q1: Could you tell me any changes on the price of Nokia8210 and MotoT190? What affections did these changes have on their sales ?

Q2: what kind of strategies did Nokia8210 and MotoT190 use in their marketing?

  Q3: (General Idea)What do you think is the most important when you choose a mobile phone?

2. What is the elastisity of demande for Nokia 8210?

Q1: Could you tell me any changes on the price of Nokia8210 and MotoT190?

Q2: What affections did these changes have on their sales and their relavent products’ sale ,such as the earphones?

(To work out the income elasticity):

Q3 : Will you choose Nokia 8210 if your income deduced by 20% / 40% ?

3. what competition affects Nokia 8210?

Q1: Could you tell me any changes on the price of Nokia8210 and MotoT190?

Q2: What affections did these changes have on their sales?

Q3: what kind of stratigies did Nokia8210 and MotoT190 use in their marketing?

4. Describe the market share of Nokia 8210 and all of the Nokia’s products.

Q1: Could you tell me any changes on the price of Nokia8210 and MotoT190? What affections did these changes have on their sales ?

Q2:  what brand is your mobile phone?

What will be done:

1. Survey of the stuff of “Mobile on line”
2. survey of the customers who buy a mobile phone on line.
3. survey to 20 customers who buy a Nokia 8210.

DATA SELECTION AND COLLECTION :

The raw data is selected by the survey which is taken in a professional mobile phone shop on the internet called “Mobile on line” and the survey is divided into three sections:

1. Interview to the stuff:

(The information in Table 1,2 were obtained under the stuff’s help in checking the history record.)

Q1: Could you tell me any changes on the price of Nokia8210 and MotoT190?

Q2: What affections did these changes have on their sales and their relavent products’ sale like the earphones?

Q3: what kind of stratigies did Nokia8210 and MotoT190 use in their marketing?

a) Advertising  B)Services  C)modication  D)sponsorship

Q4: What kind of effects did these stratigies have on the sale?

2. Survey to the customers.

Select 20 people who buys a handset in “Mobile on line”,survry with:

Q5: what brand is your mobile phone?

(III)  Select 20 people who buys Nokia8210 in “Mobile on line”, go on with the following questions.

Q6:  will you choose Nokia 8210 if your income deduced by 20%?

Q7:  will you choose Nokia8210 again if your income deduced by 40%?

Q8: What do you think is the most important when you choose your handset?

1.  Price  b) Service  c) Advertising  d) Modification  e)Others

RESULTS

Table 1(Q1)

($= US dollar; 95(48)=95sets of mobile phone& 48 sets of earphone)

Appendix: Refer to question 1,2 and 3 in the proposal

Table 2(Q3)

Appendix: Refer to answer question 3 in the proposal

Table 3(Q7)

                                        (Y---YES  N---NO)

Appendix:Refer to Question 3 in the proposal.

Table 4(Q5)

  “*”---chosen by interviewees

Appendix: Refer to answer Question 4 in the proposal.

Table 5(Q8)

Appendix: Refer to Question1 in the proposal. Every interviewee  have one or two options in this question.

INTERPRETATION & ANALYSING

Of  INFORMATION  &  DATA

Table 1

2002.5--2002.11  

Change of price            change of demand

Nokia 8210   -(210-180)/200=-15%        (138-95)/116.5=36.9%

Moto T190    0                        (80-95)/87.5=-17.1%

2002.11—2003.5

Change of price            Change of demand

Nokia 8210   -(160-180)/170=-11.7%       (162-138)/150=16%

Moto T190    -(150-180)/150=-20%       (135-108)/121.5=22.2%

Earphone      0                               0.16

Refer to Question 2:

1. Calculate the Price elasticity of demand

 Ep1 = [(180-210)/200] / [(138-95)/116.5]= 0.41

 Ep2 = [(160-180)/170] / [(162-1380/150)= 0.74

  P

 210

 

 180

 160

2.Calculate the Cross elasticity:

For  Nokia 8210& Moto T190  Ec=-17.1/(-15%)=1.14

1.14>0  they are SUBSTITUTES.

     

For Nokia8210 & the earphone  Ec=16%/(-15%)=-1.06

They are COMPLEMENTS.

Combine Table 1 &Table 2:

1. Refer to Question 1

The maket is sensitive in changing of price. Nokia8210 use reductions in price to attract sales or gain market share.(Shown by the calculation of Ep)

Nokia try to take strategies shown by Table 2 to reduce the likehood of price wars(shown by Table 1),while at the same time increase the possibility of increasing sales and market share.

2.  Refer to Question 3

Nokia 8210 is close subsitutes to its competitor MotoT190.

(Shown by calculation of Ec)

They are price makers because of their ability  to make their products appear different by advertising, modification, sponsorship, and customer service,etc.. Relative to its competetor MotoT190, Nokia8210 is not homogeneous as it has its own superiorities (mentioned in BRAINSTORMING).

 

Table 3

Change by %

Refer to Question 2:

Ey1=(- 22.2%) / (-20%)= 1.11 (>1 normal luxury)

Ey2 = (-50%) / (-40%)= 1.25 (>1 normal luxury)

Table 4

Table 5    How important are they for Nokia 8210?

Refer to Question 3

Manufacturers are overlooking untapped potential in the high and mid-priced sectors because they are jostling with each other at the low end of the market. This approach is doomed to fail as there is now clear evidence that cut-price competition and excessive advertising will not work.

Manufacturers should focus more on market segmentation than price competition and ad spend.

General presentation:

All the raw data are collected from the Internet.

Reference:  

CONCLUSION:

Increased competition from all sides is putting a dent in Nokia's performance in the handset business . A new wave of competition from domestic vendors and new market entrants from Japan, Korea, and Taiwan has given consumers an unprecedented range of choices.

According to the research(TABLE 5),we have identified that different groups of consumers have specific preferences toward certain brands and that they display different spending habits based on their price expectations(TABLE1). 

By concentrating too much on price competition(TABLE1) and advertising(TABLE2), some manufacturers are often ignoring their customers  needs and not marketing their product to the full potential.

Understanding the preferences, shopping attitudes and price expectations (TABLE 3)of the different consumer segments is essential for marketers to succeed in the largest consumer market in the world.

If you look across these brands(TABLE4), you will find one thing in common - they have a clear target of different segments of the market, and in the targeted segments they have established a strong image, which protects them from severe price competition. The lucrative mobile phone market seems to be well served at different price points, with leading brands Nokia and Motorola appealing to all market segments.

While branding through advertising remains popular manufacturers invest heavily in advertising and fight feverishly for primetime spots .Research indicates their money may not always be well spent.(TABLE5)

Despite its undoubted importance, market segmentation is not a magic bullet. There is no one-size-fits-all solution to the  consumer puzzle, and marketers are perfectly entitled to pursue different strategies(TABLE2,5).

The fundamental rule is to cater for what your customers want, target the right segments and eventually ensure a well-balanced mix to suit different segments. This sounds like cliche and common sense to all marketers but this is easier said than done, as our survey has discovered.

The idea is for manufacturers to remove the blindfold and stop fighting for lower prices, which can only make them overlook the fact that the pie is actually bigger than they might have realised.

To increase profits, they should consider tapping into new potential markets and building a powerful brand image, and in order to become a powerful brand, they should not bet on advertisements alone.

See that there are different segments, understand the city differences, find the segments preferences and target them with an all-round effort ,yet spend your advertising and promotions budget wisely, and you will be rewarded by bigger success.