Marketing Mix of Nokia N81 8GB - Why it reaches the Young Demographic?

•FM Radio. The phone also has supporting full stereo to get the full advantage of the phone. It also comes equipped with the headphones. The Nokia 8310 also came with this feature and was very much liked by the younger public who bought the phone.

•Games: Java (J2ME) games are also another feature, which Nokia thought would interest the selected target market. The Nokia N81 also comes with 275kb of free space, which allows the user to download approximately 5 games.

•WAP: The phone is also WAP enabled, which allows the user to gain access to certain parts of the Internet. This is another extra feature that would benefit young people who want to check their e-mail etc.

•Tri – Band: The Nokia N81 tri-band phone operates in three networks - EGSM 900 and GSM 1800/1900 - providing coverage on five continents.

Advertisements The advertisement of the Nokia N81 is directed at the selected target market. It shows the above picture of the phone fig 1 and giving the heading of the advertisement " A Sign Of Attitude" It also gives all the main new features of the phone and how it can benefit the user. It also describes the phone as a fashion accessory and having an urban image, which is a popular image at the moment with the selected target market. They also mention how the phone has a range of interesting colours to suit everyone preferences. This advertisement can be seen from the Nokia website (www.nokia.com). Most of the advertisements for the phone promote the phone as being the most fashionable phone of the year.

Product The core product is a mobile phone. The benefit of this product is that it allows users to contact each other easily. The essential benefit is that the phone is tri – band which means that you can use the phone in other parts of the world such as the USA, the phone also includes text messaging so that users can also text other mobile user’s messages.

The actual (tangible) product is the Nokia N81. As an international telecommunications company, Nokia develops and manufactures mobile phones, networks and systems for wireless and fixed networks. The company also provides other multimedia equipment.
The product the Nokia N81 has a new keypad layout and a versatile four-way scroll that makes it easy to navigate the high-resolution colour display. Polyphonic sounds played through a speaker give improved sound quality for ringing tones and message alerts.

The augmented product of the Nokia N81 is that it come with:- •FM Radio. The phone also has supporting full stereo to get the full advantage of the phone. It also comes equipped with the headphones. The Nokia N95 also came with this feature and was very much liked by the younger public who bought the phone.

•Games: Java (J2ME) games are also another feature, which Nokia thought would interest the selected target market. The Nokia 7210 also comes with 275kb of free space, which allows the user to download approximately 5 games.

•Tri – Band: The Nokia N81 tri-band phone operates in three networks - EGSM 900 and GSM 1800/1900 - providing coverage on five continents.

•Photo Messaging. So that users can send and receives photos.

•Access a range of information including entertainment news, horoscopes and cinema guides.

•Download a range of application such as language dictionaries and currency converters this can be done by going to the brands website.

Classification Nokia N81 can be classified into two areas speciality and shopping. As for some people such as a student or a young person this product may be a speciality to them, however for some people such as businessmen this might just be classified as shopping to them.

Speciality: In terms of the customer buying behaviour for the Nokia N81 they are usually loyal customers that go for the brand rather than actual phone. The customers are also looking for the newest type of brand range. They will be looking at any extra benefits that will be useful to them. This might not be purchased as often although customers do usually have the opportunity of upgrading their phone by exchanging their old phone.

Shopping: While for some people this might be classified as shopping. They are more likely to buy the phone when they need it and will be looking at its quality and whether it will suit them.

The price is usually quite high but most customers are willing to pay this price (http2).

The distribution of this phone is usually in specific mobile phone shops and websites that sell mobile phones. Although the Nokia 7210 can now also be found at Hyper Markets or large stores such as Tesco.

The promotion of this phone is more carefully targeted at the teenagers/ young adults. This is done by a range of advertisements targeted at this market.

In terms of the classification of the industrial product the phone can be seen as an accessory equipment as it provides support but does not come part of the final product Mc Carthy (1999).

Range The Nokia N81 comes in a range of colours giving the selected target market a variety of choice to suit all people choices. The type of colours that the phone comes in is Black, red, maroon, yellow, grey green and pink. The phone also ranges in the type of Networks you can get the phone in (i.e. Orange, O2, T-mobile, Vodaphone).

The product mix is that Nokia also sells other products such as the Nokia mediamaster and provides tools for making networks such as nodes and IP security platforms.

The product line is that Nokia also sells other categories of mobile phones such as the 3310, 3410, 8310 and 3210. The product item is the Nokia 7210.

Brand The phone the Nokia N81 does not actually have a brand name. The company has it is called Nokia. Nokia Group the Finland-based manufacturer of mobile phones has been steadily working on its corporate brand name and the management of consumer perceptions over the last few years. Its efforts have paid off, because it is now the number one brand in many markets around the world.

When Nokia positions its brand in the crowded mobile phone marketplace, its message must clearly bring together the technology and human side of its offer in a powerful way. The specific message that is conveyed to consumers in every advertisement and market communication is " Nokia connecting People" Nokia does have a logo, which looks like this: - All of the Nokia N81 have this logo on their phones. However instead of blue it is white and it can be found in the top centre of the phone as you can see from fig 1.

Currently their slogan for the Nokia mobiles is "Connecting People".

The actual product the Nokia N81 also has a advertising slogan such as "The Right Attitude" and "body Beautiful" From sources Http : 2 when considering the Nokia 7210 the company have tried to give it a brand image. Product design is clearly critical to the success of the brand .A great deal of thought to how the user of its phones will experience the brand, and how it can make that experience reflect its brand character. The large display screen, for example, is the "face" of the phone. Nokia designers describe it as the "eye into the soul of the product". The shape of phones is curvy and easy to hold. The faceplates and their different colours can be changed to fit the personality, lifestyle, and mood of the user. The soft key touch pads also add to the feeling of friendliness, expressing the brand personality.

The urban image that the phone is given is there so that it can appeal to the target market.

Here is a clip of an advertisement for the Nokia N81 :- As you can see from the above advertisement Nokia have decided to advertise the Nokia N81 by its brand image as well as giving the phone its own slogan "The right Attitude" as you can see from fig 2 the girl on the picture as a sign on her head. However if you look at the shape of the keypad on the Nokia N81.
According to a variety of consumer surveys, the Nokia brand is associated with well-designed, high quality and technologically advanced products and customer services that are also user-friendly. We have invested considerable resources in establishing the Nokia name as the leading brand in mobile communications. We intend to sustain and enhance the Nokia brand through aggressive advertising, sponsorship and other marketing activities in all of our principal markets. We believe that our leading market position provides significant opportunities for Nokia to better understand and respond to the usage patterns of end users, and thus enhance the Nokia brand. http 1 Stage in Life Cycle Nokia mobile phones in general have reached maturity stage in the system life cycle. However the Nokia N81 is a new mobile phone as can be described as being in the late stages of the introductory stage and the early stages of the growth stage. This is because the Nokia N81 has come into the market in October 2002 and therefore is quite and people including the target market know about the Nokia N81 and more people are buying it. The sales of the Nokia N81 expanded during the Christmas Period bringing it to the early stages of growth in the product life cycle.

Currently Nokia are trying to extend their product life cycle. At the moment Nokia mobile phones has reached maturity stage they are trying to make sure that the product does not go into decline. It can do this in several ways: - • It is promoting its product more frequently through TV, Internet, magazines, leaflets, radio and posters.

•Finding new markets. Nokia have introduced their mobile phones to other countries such as Asia and other parts of Europe.

•Developing new distribution channels. The Internet is a major new distribution market that Nokia are currently using. Customers can now purchase their mobile phones on their website. There is also the possibility of purchasing the new mobile phones early before they reach the retail outlets. Also Nokia distribute their phones to online mobile shops such as dial a phone, where they sell the phone at special rates.

• Nokia keep updating their phone ranges. For example the N81 will soon have and up dated version of this phone called the 7250, which provides and integrated camera.

•Introducing new services such as Internet and picture messaging. Also new Nokia phones provide new facilities such as Radio and Games.

•Provide the opportunity to upgrade their phones on their website this helps obtain brand loyalty as well as extending the PLC of Nokia phones.

•Enhancements. While not everyone may be able to constantly change their mobile phones Nokia provide the ability to change covers, download games from their website and change ring tones.

This also is the same for the Nokia N81. While the phone was introduced into the market in October 2002. It is currently and the late introductory early growth stage of the PLC. Nokia want to keep this phone at the growth stage, as long as possible this is why the Nokia N81 comes with a range of enhancements and accessories.

The phone comes with a range of covers so that customers especially the target market do not get "Bored" with their phone they can buy covers to make the phone look different. They can download additional software to the phone form Nokia website such as dictionaries and games, ring tones and screen logos. Nokia N81 comes with 275kb of free space for exactly this purpose.

As well as this the phone comes with accessories such as a small-integrated digital camera, which you attach to the phone so that you can take pictures with it.

Diagram of Nokia PLC (all phones) As you can see from fig 3 the Nokia mobiles have reached the maturity stage of the stage of the PLC. Although this is the case for Nokia mobile phones, mobile phones in general are said to be in the growth stage of the system life cycle. Kotler (2000).

Price Relevant Internal and External Influences Some of the external influences that influence external influences of pricing for the Nokia N81 is :- * Customers: When pricing the Nokia N81 it is very important that the company look at the target market in this case it is teenagers and young adults. Therefore the price o the Nokia N81 cannot be extremely expensive as the target market will no be able to afford it. The Nokia N81 price ranges from £299.95 - £2 19.99. This can be considered as quite expensive, Nokia have tried to put the price as low as possible considering all the faculties it has with it. The Samsung T100, which also includes similar features as the Nokia N81, has a price range from £329.

The phone was also put out in the Market in late October this was intended so that it would be a popular Christmas present so that parents can buy the phone for them. The Nokia N81 sales went up extremely during the Christmas period bringing the phone to the early stages of growth in the product life cycle Http : 4 * Relationship Between Price and Demand : Since the target market is teenagers and young adults Nokia cannot increase the price of the phones as the target market will not be able to afford the phone when the price increases. When the demand is high instead it is the stayed at a fixed price (however some mobile shops are able to sell them at a better price), generally especially on Nokia1s website the price of the mobile phone is fixed at a certain price when the phone is put out into the market. However once demand becomes low for the product (e.g. because a new version of the phone is put out into the market) Nokia lower the prices of the phone in order to extend the product life cycle.

* Competitors: Nokia strategy is to avoid pricing wars for as much as possible this why competitors is not a factor that effects the Nokia decided on price for the Nokia N81.

Internal Influences Nokia Organisational Objectives : The objectives of Nokia is to provide their customers with lower priced handsets disposable handsets . The objective of this is to gain share and keep profitability high.

. This is so that Nokia gain more demand for their products. There strategy is also with new technology enable products to become smaller and lighter, thereby reducing the amount of resources used in the manufacturing process. Http: 1.

Cost of producing a product is very important factor that influences the price of a product. The Nokia N81 price is considered to be quite expensive compared to earlier version of mobile phones. However the Nokia N81 comes with a range of new technologies which such as Internet, radio and java games. This mean that more resources are need when designing the phone making the price of the phone higher.

Pricing Strategy Nokia 7210 mobile phone pricing strategy can be considered as rapid penetration. As prices are quite low and promotional expenditure is high.

The reason for this is to gain share and keep profitability high and to gain economies of scale. (Increase output and bring down costs).

Nokia also make money by proving expensive accessories and software for the phone. For example with the Nokia N81 customers have the opportunity to buy a camera to go with the phone so that they can buy for £80. The phone comes with 275kb of space that customers can buy download games and other software for. This is available to buy on Nokia` s website.

Other accessories such as mobile tones, covers and logos are available to purchase on their website for the N81. Phone covers for the Nokia N81 range from £26.

Executives from both Nokia and Ericsson recently stated that neither organization plans to lower prices on their handsets to gain market share at the expense of profits. Both companies have acknowledged that their competitors have cut prices to gain market share and reduce an inventory glut. Neither executive, however, believes that the competition can continue with these price cuts for much longer.

Despite holding firm on its no price cutting pledge, Nokia still believes that it can maintain current market share and prices. Interestingly, Nokia recently reported profits at the high end of Wall Street expectations while one of its price cutting competitors, Motorola, reported dismal results.

Motorola's CEO, Chris Galvin, admitted that when looking at Motorola's troubled stock price and newfound decline into quarterly losses, "the issue has largely been us. The changes that have to take place have to take place within Motorola." No blaming the economy.

Rather than cut prices, Nokia has begun shifting its attention to a different lower-end market segment that focuses on low cost, simple disposable phones in hopes of greater returns on investments.

Nokia says that when providing a pricing strategy on the Nokia N81 they have to look at the target market. In this case it is teenagers and young adults. This why Nokia try lower the price of this phone as much as possible as young people and students will not be able to afford a phone of a high price. The Nokia N81 price ranges from £299.95 - £2 19.99. This can be considered as quite expensive, Nokia have tried to put the price as low as possible considering all the faculties it has with it. The Samsung T100, which also includes similar features as the Nokia N81, has a price range from £329.

Nokia also provides the ability to exchange old phones for a more newer one. For example you can exchange a older Nokia phone for a Nokia N81 for £50.

Gradually when the Nokia N81 has been in a market for a few month the price of the Nokia N81 will slowly start to fall.

Nokia main strategy is to keep price of handsets as low as possible and avoid pricing wars.

Place Distribution Channel Direct Selling of the Nokia N81 is available on the Internet. The Nokia N81 is available to buy on Nokia website as well as a range of Internet mobile shops. Companies such as phones 4 U and Dial a Phone. Companies such as Dial a phones and Phones 4 U are usually able to offer you the phone at a better price compared with retail outlets. Internet shopping is becoming more popular and more and more people especially the younger generation are purchasing products online. Nokia says that allowing customers to phones online also allows them to see other products and services that they offer for example downloading software and games. Most of Nokia online customers are the younger generation as conducted from a recent survey from Nokia forum. Http: 1.

The Nokia N81 is also available through the retail outlets such as Carphone Warehouse and The Link etc. They purchase the products from Nokia then sell it to the customers. Recently Nokia have found a new distribution channel is super market such as Tesco. The more larger stores of Tesco now sell Nokia phones. However these phone are usually the older versions of the Nokia phones such as 3210 and 3310.

Before deciding which distribution channel Nokia will sell their phones to they look at a few factors such as: •Customers: Nokia look at their customers buying habits and most of Nokia customers are businessmen and young people. For this reason Nokia have recently found a new distribution channels which is their own website as well as other mobile online shops. Many students buy products online as they enjoy doing so and like to "Surf" Internet pages. Many businessmen are usually too busy to go shopping for a mobile phone and find quicker and easier just to buy a product using the internet especially now as most internet shops provide next day delivery guarantee. The Nokia N81 was advertised very early on Nokia website they also allowed customers to order the phone early so as soon as the phone went out in the market they would be the first one to receive it. Currently the Nokia N81 has already been advertised on Nokia`s website.

•Product characteristics. Another factor that influences which channel of distribution Nokia choose is on the phone characteristics. Nokia N81 has lots of features that customers may want to query about this why when customers buy the phone online they can also download extra information on how to use the phone efficiently and get technical advice from Nokia own experienced staff.

•Distributor Characteristics. Many customers are buying a technical product such as mobile telephone, they want to know as much as possible about the phone and how it will benefit them, this is why Nokia mainly distribute their phones to mobile shops. As staff are trained so that so that they can give customers advice and information about the mobile phones.

Nokia have two forms of distribution channel structure this is the direct supply via the Internet as Nokia sell directly to their customers through the Internet. Also Nokia have the short channel as the phones go from producer to retailer.

Strategy Nokia distribution channel for the Nokia N81 is Selective.

Total number of outlets that sell the Nokia N81 in Swansea: 14 (This includes all mobile phone shops including Argos and Index) Note Tesco do not sell the N81 as they tend to just sell more older versions of the Nokia phones.

The Number of Outlets per Region: A small number Distribution focus : Retailer Knowledge most of the places that sell the Nokia phones are mobile phone shops so staff are trained to know a bit of information about the product before they sell it.

Number of Potential purchasers : Medium mainly teenagers and young adults Level of planned purchasing: Medium/High some people may decide to buy the phone in advance while other will just buy it when they need it or as soon as it comes into the market especially since the opportunity of upgrading handsets is high.

Typical Price : High/ medium while some people may find this a high price other will find it a medium price compared to other phones of similar type in the market.

Channel Dynamics: While Nokia sell their phone for £299.99 on the Internet companies such as Dial a Phone the internet mobile shop have recently offered this phone free after only being in the market since October 2002. However this is only if you buy it with a monthly contract with £28 line rental. Nokia have very little influence on how it is sold on distribution channels such as these.

Promotion Promotional Tools and Their Influences Here are some of Nokia promotions that they used in 2002: Sales Promotion Nokia are giving away a free photo fun pack, which is available to all customers who purchase a N81, 7650 or 9200. So that customers can send photo messages. The Nokia N81 does not come with a in built camera, however you can purchase this phone for an extra £80.

•The Nokia N81 comes also free with head phones so that customers can listen to the in built radio.

•A free hands free speaker.

•725kb of free space so that customers can download games and software •Free Software. You can download the PC Suit free from Nokia`s website which allows you to access features of your mobile from your computers. For example you configure ring tones and graphics them send them to you mobile. This also comes with a free user guide on how to use this facility.

•Free support available on the internet •Free membership of Club Nokia where you can purchase equipment such as phone covers Advertising The advertisement of the Nokia N81 is directed at the selected target market. It shows the above picture of the phone fig 1 and giving the heading of the advertisement " A Sign Of Attitude" It also gives all the main new features of the phone and how it can benefit the user. It also describes the phone as a fashion accessory and having an urban image, which is a popular image at the moment with the selected target market. They also mention how the phone has a range of interesting colours to suit everyone preferences. This advertisement can be seen from the Nokia website (www.nokia.com). Most of the advertisements for the phone promote the phone as being the most fashionable phone of the year.

The actual product the Nokia N81 also has a advertising slogan such as "The Right Attitude" and "body Beautiful" The urban image that the phone is given is there so that it can appeal to the target market.

Here is a clip of an advertisement for the Nokia N81 :- As you can see from the above advertisement Nokia have decided to advertise the Nokia N81 by its brand image as well as giving the phone its own slogan "The right Attitude" as you can see from fig 2 the girl on the picture as a sign on her head. However if you look at the shape of the keypad on the Nokia N81 (fig 1) you will see that the shape is the same.

The Nokia N81 is also advertised on magazines and newspapers. Also celebrities will use the Nokia N81 in adverts and films.

Personal Selling Personal selling of the Nokia N81 is in mobile phone shops. Staff are trained to learn some information about the phone so that they can offer help on any queries of the customer. Both The Link and Carphone Warehouse provide demonstrations on how the phone is used they both also have buyers guide magazine that give some information on the Nokia N81.

Public Relations •To drive membership for Club Nokia, the community for Nokia phone owners, Nokia launched a promotional campaign, which includes a consumer promotion, supported by radio advertising to win a Mini Cooper car each month during April, May or June, as well as a retailer incentive to win a VIP trip for two to the Italian Grand Prix.

•Nokia and Capital Radio plc launched CapitalM8, the UK's first cross-network interactive radio service for mobile phones, together with Rocking Frog and O2 in June. The interactive service between the user and 95.8 Capital FM can be used by any SMS or WAP phone but its best features will be maximised using phones that have both GPRS functionality and an FM Radio e.g. the Nokia 8310 or Nokia 6510.

•Nokia sponsored the Rip Curl Newquay Boardmasters, the UK's largest lifestyle sports festival 27 July - 4 August 2002. Nokia rolled out a tide of surfing activities as part of its sponsorship, with participants being able to text each other via the Nokia Chat Screens, download material from Club Nokia or just pick up some cool summer fun gear on the beach.

•The English version of Nokia The Inside Story hit the shelves in early August. To celebrate the occasion, Nokia UK Corporate Communications hosted an informal media event in the offices of Pearson Education plc on the Strand, London with a chance to meet with the people behind the book, including the author, Mr Martti Häikiö.

•The Nokia Global Games Summit in London in late August included demonstrations from leading mobile games developers from around the world, a chance to see the latest games and meet leading operators and Nokia. During the summit, Nokia and the Korea Game Development & Promotion Institute (KGDI) announced the signing of an agreement of mutual support for the development and deployment of Korean digital content for mobile communications.

•As the Official Mobile Phone of London Fashion Week for the eighth season, Nokia has once again teamed up with 14 of the hottest British and international designers to produce this season's Nokia Designer Collection. Only three must-have Nokia N81 phones are produced for each design - one for the designer, another for the celebrity inspiration and a third for online auction in support of Terrence Higgins Trust.

Direct Marketing Nokia N81 can be bought directly form Nokia ` s website. Nokia says that allowing customers to phones online also allows them to see other products and services that they offer for example downloading software and games. Most of Nokia online customers are the younger generation as conducted from a recent survey from Nokia forum. Http: 1.

Push Strategy Handset manufacturers Nokia promote their products via retailers such as Carphone Warehouse. 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 is an example of push promotional strategy.

Pull Strategy A lot of promotion and advertising for the Nokia 7210 is done by Nokia through its website.