2.3 SWOT Analysis:
3.0 Customer Surveys
Revenue and profits of an organization are generated by customers who play a major role in the organization’s continued success (Fifield, P., 2008, p.132). Hence, it is very important for an organization to understand the target customer base, their likes and dislikes and their requirements.
The first step in building customer value is to know the customers, their needs and build a customer value preposition. For building the Customer Value Preposition (“CVP”), it is necessary to conduct a market survey.
3.1 Oracle
A study was conducted by Oracle in October 2011, surveying more than 3000 mobile phone users around the world (Oracle., 2011). The main objective of the study was to identify:
- Changes in global mobile phone use and perceptions of mobile devices
- Interest in new mobile technologies, such as purchasing capabilities and location-based services
- Expectations for service providers in the new mobile frontier
Main observations from the survey shown below:
- 69% of the respondent stated that they are using Smartphones and the main reason for the use of Smartphone is for data download and application access. Almost 50% of the respondents said that their data download increased over the past 12 months and became the most active activity on the cell phone.
- Around 50% of the customers in 2010 thought that by 2015 their mobile phones would replace their digital cameras, ipods/MP3 players and GPS navigation systems.
- 43% of the customers responded that they carried two or more mobile phones. Whereas, 41% of the customers responded that they are planning to buy tablets in the next 12 months or so.
- 28% of the consumers use their phones for mobile banking. However, 68% of the customers are either not sure or not confident in the data transfer over their mobile phones.
A list of applications that people would like to perform on their cell phones in the future is shown below:
3.2 TNS Global
TNS Global conducted another survey “TNS Mobile Life 2011” to have a complete understanding of consumer experiences with mobile phones today and insights into how this will change tomorrow. The survey revealed the following results after having more than 25,000 hours of interviews with over 34,000 respondents in 43 countries (TNS Mobile Life., 2011).
- Number of people using social networking sites grew from 30% to 46% globally.
- Only 18% of the people are able to upload the photos and videos straight from their mobile phones. But, going forward 44% of the people will be interested in doing so.
- More than 50% of the consumers in the emerging market would like to upload content via mobile phones. However, 55% do not have the ability to do so.
- 24% of the global consumer suggested that ability to take and, share videos will play a major role in the choice of the next device.
- The strongest growth for the past 12 months is shown in social videos (You Tube) and in watching Live TV. 50% of the consumers will want to use Live TV and streaming on their mobile phones going forward.
The survey also revealed what features would drive customers’ choices for future cell phones and they would like to do on the social networking sites via cell phones.
Source: (Buchanan, F., et al., 2011)
3.3 Adobe
Another “Adobe Mobile Experience Survey” conducted by Adobe for 1200 customers in the US, revealed that as cell phones get smarter, people are using them less to make calls and more to text, shop, read news, play games, engage with social networks and perform routine tasks (Adobe., 2011).
Approximately 75% of the customers are using social networking, accessing local information and reading news. 81% stated that they are using cell phones for accessing maps and directions while travelling. Around 50% of the respondent stated that they are using cell phones for reviewing bank account details, conducting bank transactions, budgeting and checkbook balancing.
Looking at the customers’ responses from the above survey, the first strategic move will be to develop a marketing strategy based on the CVP. The CVP defines the needs and problems customers have and the unique solutions the products will offer.
3.4 Customer value proposition for Nokia:
Source: (Fifield, P., 2008).
4.0 Market Segmentation:
The second major step in building a great marketing strategy is performing Market Segmentation:
Market Segmentation is the sub division of a market into homogenous sub-sets of customers, where any sub-set may conceivably be selected as a market target to be reached with a distinct marketing mix (Kotler cited in Fifield, P., 2008, pp.193).
Motivations----------------------------------------------------------------------------------------------Descriptors
Source: (Fifield, P., 2008, p.198)
The above segmentation categorizes the business segment into two categories – CONTEXT based and COMMODITY based. The CONTEXT based segmentation was developed by Dr. Paul Fifield and Dr. John Marti. According to Context based segmentation the attitude and the psychology of the people change from time to time and the segment is driven by the motivational, psychological and emotional needs of the people (Fifield, P., 2008, pp.215-220). Whereas, the COMMODITY based segment is driven mostly by the price, region, quality and product.
Currently, Nokia is focused on the Commodity based segmentation, where it is trying to concentrate on the geography, such as India and China. It is capturing the mass market by providing standardized products and affordable prices. As said Markets do not work on prices and products and are driven by needs, wants, emotions and perceived value of the customers and not on price and product (Fifield, P., 2006, p.42) Hence, it is time for Nokia to shift the strategy towards Context based for a competitive advantage over the competitors, who have already started moving towards that direction.
Customers psychological and physical needs differ in different situations (Fifield, P., 2008, p198). Hence, Nokia phones will mold themselves based on customers’ different psychological and physical needs during different situations. Nokia cell phone is not just a phone to call and text message but will be a personal secretary during office, an entertainment gadget during leisure. an Informative gadget during awareness, a navigation device during direction-finding, a memory capturing device during vacations, a safe and secure device during banking and payment times etc. A cell phone designed keeping in mind the physical and psychological needs of the people.
Looking at the homogenous responses from the customers’ needs, based on the survey, Nokia should concentrate in Entertainment and Information user segment. Offering premium products as per customers’ wants will lead to higher satisfaction among customers and ultimately drive value of the products.
Figure 3: Market Segmentation
Customers don’t buy features, they buy benefits (Fifield, P., 2006, p.57). Therefore, Nokia will not just be a cell phone business but it will be an entertainment and information business. This will make customers feel that whenever they think of entertainment and information devices they always think of Nokia cell phones.
5.0 Product Differentiation:
Customers in today’s world do not want to see offers that are all the same, they like clear understandable non-price differences (Fifield, P., 2006, p.208). Differentiation means that a customer is able to recognize the product not only among its complementary products but also among substitute products (Fifield, P., 2008, p.262).
Source: (Fifield, P., 2008, p.262)
The main strategy of product differentiation is to place the product in the top most right hand corner of the matrix.
In case of Nokia, the current focus is on low differentiation and low or high relevance features. This has put Nokia up the bottom left corner or top left corner. Nokia is currently focused hugely on selling cheap cell phones in mass market. Based on the customer survey, all the customers need the basic Hygiene offerings, such as, voice calling, text messing, camera, internet, social media application, music player, games, video etc. Lot of complementary products is available with these offering. If Nokia follows the same strategy then it will be just mediocre and will not be able to move in to Driver zone and stand out as a winner.
To be a Winner, the offering should be under the drivers’ category. The product should not only be different from the competitors but also different in features and benefits that the customer does really want and value it (Fifield, P., 2008, p.263). In the case of Nokia, the strategy should be to incorporate all those features which are demanded by the customers along with some additional features which will add more value to the customer and are not provided by competitors. This differentiation will put Nokia in High Relevance category.
6.0 Investment in Product Innovation for Product Differentiation
As per the customer survey, people want cell phones with high resolution for gaming, live streaming and live TV watching and so far no mobile has offered resolution similar to the one offered by Televisions such as 720p, 1080p resolution or a 3D image phone. Also, Nokia should develop flexible screen technology. Using this technology, Nokia should build screens that roll out from the phone almost to the size of computer screen and can be rolled back to size of the cell phone. Further, Nokia should also invest in developing cell phones with Holographic Projection Technologies (“HPC”). HPC helps to project displays on surfaces using the laser beams. This will help project images on the surface and can be used as a replacement to a TV or a computer screen. HPC can also be used to project a keyboard onto a surface which could be used like a regular sized PC keyboard.
The above changes in the technology will take the experience of watching movie, playing game, reading materials, browsing internet, working with spreadsheet to the next level on the Nokia mobile device. The TV’s, projectors, laptops, tablets will be of the past. And this is what customers want – One device to take care of all my needs.
Nokia should also differentiate its offering by providing the high resolution camera, which can also record movies for long hours in a high definition quality like a camcorder. And these videos can be shared or uploaded on the social media or transferred to other devices at a lighting speed without the use of wire and the ports.
Nokia should also understand the safety and security concerns of the customers and innovate products, which are high on these features. Customers should also be educated about the privacy and security features, so that they feel secure and confident while conducting transactions or undertaking mobile banking over cell phones.
Nokia Research Center along with Cambridge Nanoscience Center is developing nanotechnology for the cell phones. Nano-technological phones will bring revolution in the future mobile phone industry. Newly-enabled flexible and transparent materials blend more seamlessly with the way we live. Integrated sensors might allow us to learn more about the environment around us, empowering us to make better choices, and built-in solar absorption might charge a device, whilst batteries become smaller, longer lasting and faster to charge (Nokia Research Center., 2012). Nokia should continue investing in this technology, as nanotechnology will be the future of the world, where customers want cell phones to be smarter. Since, Nokia is working on this research it will also have the first mover advantage in the Industry.
7.0 Conclusion:
As the demand for smart phones is growing, it is very important for Nokia to dominate the market by focusing on the customer demand and requirements. Nokia is the leading mobile manufacture in the world and its strategic alliance with Microsoft to develop the operating will definitely help Nokia to position itself as a leader in the smart phones category. Nokia should also differentiate its products by developing innovative products as demanded by the customers. This will also direct the time, effort and money in innovation in the right direction.
Reference List:
Adobe., 2011. Adobe Mobile Experience Survey: What Users Want from Media, Finance, Travel & Shopping [online] Available from: . [Accessed 26 December 2011].
Buchanan, F., Webb, J. & Versfeld, R., 2011. Snap and Share: The Future of Imaging and Video [online]. Available from: [Accessed 5 January 2012].
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Fifield, P., 2008. Marketing Strategy Masteclass: Making Marketing Strategy Happen. Oxford: Elsevier Ltd.
Fifield, P., 2006. Collected Essays In marketing Strategy. Winchester: The Paul Fifield Organisation Ltd.
Nokia., 2012. About Nokia [online] Available from: [Accessed 26 December 2011].
Oracle., 2011. Opportunity Calling: The Future of Mobile Communications – Take Two [online]. Available from: [Accessed 27 December 2011].
Synergyst., 2011. Global Smartphones Market Forecast (2011-2015) [online]. Available from: [Accessed 27 December 2011]
TNS Mobile Life., 2011. TNS study reveals penalty for not keeping up in relentlessly changing mobile category: largest ever global research study into today’s mobile consumer [online]. Available from: [Accessed 5 January 2012].
Nokia Research Center., 2012. The Morph Concept [online]. Available from: [Accessed 5 January 2012].
