market segmentation - nokia
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MARKET SEGMENTATION - NOKIA - World's 5th most valued brand (Interbrand, 2007) #1 brand in Asia (Synovate 2006 and 2007), and #1 brand in Europe (European Brand Institute, September 2007). (www.nokia.com). Nokia has A Phone for Every Individual." While practically everybody today is a potential mobile phone customer, everybody is simultaneously different in terms of usage, needs, lifestyles, and individual preferences," explains Nokia's Media Relations Manager, Keith Nowak. Understanding those differences requires that Nokia conduct ongoing research among the different consumer groups throughout the world. The approach is reflected in the company's business strategy. Based on its information about consumers, Nokia currently defines and operates with six clusters or segments: "Basic" consumers who need voice connectivity and a durable style; "Expression" consumers who want to customize and personalize features; "Classic" consumers who prefer a traditional appearance and web browser function; "Fashion" consumers who want a very small phone as a fashion item; "Premium" consumers who are interested in all technological and service features; and "Communicator" consumers who want to combine all of their communication devices (e.g., telephone, pager, PDA). (www.highered.mcgraw-hill.com),(kotler,1998). NOKIA'S PRODUCT Nokia performs regular consumer surveys to understand the needs of the user giving them the ability to fulfil the expectations like providing user-friendly, highly functional personalized products and solutions. ...read more.
They provide basic communication and other features but are not designed for heavy use. In addition, Nokia offers phones for the Premium segment - people who also want a distinctive and elegant design, but as a fine item to appreciate rather than to show off. The Nokia 8890, a phone with a chrome case and blue back light, was designed for this group. In addition, Nokia recently introduced the all-in-one 5510, which features an MP3 player, an FM radio, a messaging machine with full keyboard, a game platform, and of course, the cell phone.(www.highered.mcgraw-hill.com),(www.nokia.com). PROMOTION Marketing theory differentiates between two main kinds of promotional strategy - "push" and "pull". Nokia is a good example of a company that engages in "push" selling, where the major handset manufacturer promotes their products via retailers. Personal selling and trade promotions are often the most effective promotional tools for companies such as Nokia - for example offering subsidies on the handsets to encourage retailers to sell higher volumes. This means the retailers can provide cheaper phones to consumers which thus encourages a higher volume of sales. A "pull" strategy tries to sell directly to the consumer, bypassing other distribution channels (e.g. ...read more.
New ways of manufacturing phones using a particular technology such as improving manufacturing equipment which hasten the production process also reduces the costs of manufacturing as they are producing a larger quantity of phones is less time which means labour costs for the company are less. Also, many of the features of the latest models of Nokia phones are standard for all phones made around the same time. This means that because Nokia requires more of the parts and technologies needed to manufacture this features in for their phones, they can purchase them at a reduced price as they are buying them in bulk. At the end of the day, these manufacturing savings allow Nokia to sell its phones to retailers at a reduced price who, in turn, can provide cheaper phones to its customers. For example - price of Nokia 7210 is £96. Nokia currently possesses 38% of the market-share in its industry making it the leading mobile phone manufacturer in the world (www.nokia.com), (brassington, 1997). Referencing:- Books:- Blythe, J. (2005) third edition Essentials of Marketing Allen, P. (1997) Marketing techniques for analysis and control Kotler, P. Marketing Essentials Brassington, F. and Pettitt, S. (1997) Principles of Marketing Adcock, D. (1993) Marketing: Principles and practice Keegan, W.j. (1995) fifth edition Global Marketing Management Websites:- http://www.nokia.com/NOKIA_COM_1/About_Nokia/Sidebars_new_concept/Nokia_in_brief/InBriefJuly08.pdf, august10,'2008. http://highered.mcgraw-hill.com/sites/0072410752/student_view0/chapter9/video_cases.html, august10,'2008. http://www.nokia.com/A4126368,august10,'2008. http://www.nokia.com/A4126317,august10,'2008. ?? ?? ?? ?? 1 ...read more.
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