Nokia Producing The Worlds First Mobile Phone Marketing Essay

The universe economic system has been closely incorporate and interrelated, with states ‘ trade barriers decreasing, as a consequence of globalisation ( Wall, et al. , 2010 ) . We are now in the center of globalisation, seeing the rise of transnational endeavor, known as MNE. As harmonizing to Wall, et Al. ( 2010 ) , the universe ‘s 100 largest MNEs entirely, in 2007 had already accounted for more than 15 million occupations and with one-year turnover transcending $ 7000 billion.

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Nokia Corporation is a Finnish corporation which is based in Espoo, Finland ( Nokia, 2008 ) . Through the success in bring forthing the universe ‘s first nomadic phone in the 1980s ( Nokia, 2000 ) , after that, Nokia ‘s concern has seen a dramatic growing. Nokia is presently the largest French telephone manufacturer in the universe, keeping its market portion of 38 % around the universe ( Nokia, 2009 ) and holding achieved gross revenues of a‚¬50.7 billion in 2008 ( Nokia, 2008 ) .

Nokia Corporation is presently using more than 120,000 employees, runing in 120 different states, where its nomadic phones are sold in 150 states ( Nokia, 2009 ) . Effective research and development is critical to stay competitory in the industry, Nokia has established R & A ; D centres in 11 states ( Nokia, 2009 ) . Meanwhile, Nokia has 15 fabrication workss worldwide ( Nokia, 2009 ) to guarantee effectual distribution and supply of French telephones throughout the universe.

Tormenting ( 1993 cited in Wall, et al. , 2010, pp. 29 ) explains that a multinational is a corporation ‘that engages in foreign direct investing and owns or controls value-adding activities in more than one state ‘ . As the cardinal planning of MNE is done in its headquarter, plentifulness of determination devisings will be given to local subordinates, doing operation in assorted states more efficient and harmoniousness ( Wall, et.al. , 2010 ) . Nokia presently has control of a‚¬39.582 billion assets, which it has invested worldwide ( Nokia, 2008 ) , moreover, by using immense Numberss of employees globally, Nokia Corporation is a transnational endeavor.

There are different types of MNEs, where Nokia can be distinguished as planetary corporations, as Wall, et Al. ( 2010, pp. 35 ) provinces that planetary corporations view the universe as their market place, with standardised goods to run into the demands of planetary consumers. Nokia has by and large standardized its merchandises worldwide with lone little fluctuations to its selling mix.

International Marketing Mix

– Merchandise

Merchandise can be identified as the cardinal and critical constituent in the selling mix, as it is the point that consumers are looking for. Whereas the other selling mix which consist of Price, Promotion and Place are the flavorers that supports and enhances the merchandise ( Wall, et al. , 2010 ) .

Nokia ‘s scheme for its nomadic phones are standardized all across the Earth, as Wall, et Al. ( 2010, pp. 354 ) provinces that a ‘standard merchandise is able to cut down costs in planing, production, publicity and distribution ‘ . This can be shown, as the same Nokia theoretical account bought in Japan, will look the same and experience the same with the 1s bought in anyplace in the universe. Once a Nokia phone is designed, it will be given a name, as all Nokia phones are designated a particular figure for its ain. Regardless of where we are, in United States or Uganda, Nokia phones have a standardised design and name, and its phone theoretical accounts are available everyplace. Nokia has established fabrication workss and R & A ; D sites around the universe, but Nokia ‘s design section remains in Finland ( Nokia, 2009 ) . By planing all of its French telephones in Finland and sell the same French telephones everyplace, Nokia does non hold to put up planing offices in assorted states, therefore cut downing its operating cost.

There are a figure of economic and technological grounds for Nokia to standardise its merchandises. A nomadic phone is capable to rapid technological alterations, particularly in today ‘s environment, hence, cut downing the merchandise life rhythm of a French telephone ( Wall, et al. , 2010 ) . Coupled with the presence of planetary competition, such as Sony Ericsson, Samsung and Apple, rivals are besides establishing new merchandises invariably. Losing clip in design will go forth Nokia behind the engineering tendency ( Wall, et al. , 2010 ) . These two grounds caused Nokia to perforate the market every bit fast as possible when a new French telephone with new engineering launches. These factors necessarily leave no clip for single states to alter the design of a phone to accommodate local gustatory sensation, standardising all the nomadic phones from Nokia in the planetary market. Harmonizing to Wall, et Al. ( 2010 ) , mass production due to standardisation will besides take to significant economic of graduated table, doing Nokia ‘s merchandise more competitory in the nomadic market.

On the other manus, as harmonizing to selling guru Levitt ( 1983 cited in Wall, et al. , 2010, pp. 17 ) , ‘the universe ‘s demands and desires have been irrevocably homogenized ‘ . The consumer penchants of the universe are standardising, chiefly in the engineering sector, as there are no cultural barriers to get the better of ( Wall, et al. , 2010 ) . Unlike some other merchandises that require concerns to accommodate local gustatory sensation, such as nutrient and drinks, a standardised merchandise from Nokia is able to travel planetary.

Meanwhile, Nokia besides standardizes it branding and image worldwide. Nokia is known worldwide, non merely for its name, but besides for its corporate colour, its logo where the font in which the word ‘Nokia ‘ appears. Harmonizing to Wall, et Al. ( 2010, pp.356 ) , this type of trade name plants best globally due to the troubles of interlingual rendition into words. Nokia, by standardising its trade name ( which includes its mark, symbol, colour and logo ) , have made itself known globally. Nokia is listed as the fifth most valuable trade name globally as of 2009 ( Interbrand, 2009 ) , every bit good as one of the most admirable company by Fortune ( Fortune, 2009 ) . Such success allows Nokia to bear down a little higher monetary value on its merchandise compared to less known trade name, where Wall, et Al. ( 2010 ) states that such higher monetary value charged is known as trade name value.

– Monetary value

The nomadic phone market is crowded with rivals, wrong scheme will do consumer to buy other trade names nomadic phone with similar qualities but at a lower monetary value. Hence, if Nokia wants to keep its market portion in the competitory market, the pricing scheme must be set right.

The tabular array below is the monetary value list of three latest Nokia Mobile theoretical accounts ( N97 mini, E72 & A ; 5800XpressMusic ) sold in four different states, which are Malaysia, India, United States and United Kingdom. Monetary values shown are in US $ , exchange rates as at 10th December 2009.

Malaya

India

United States

United Kingdom

N97 mini

$ 691

$ 534

$ 579

$ 618

E72

$ 441

$ 430

$ 469

$ 520

5800XpressMusic

$ 440

$ 468

$ 350

$ 373

Beginning: Nokia Websites ( Malaysia, India, USA & A ; UK ) , 2009

Nokia Malaysia and India employs an effectual pricing scheme, it is a combination of both monetary value skimming and rival pricing scheme ( Nokia, 2004 ) . In this aggressive scheme, Nokia set its launching monetary value higher than rivals ‘ , where the phone is in debut phase of a merchandise life rhythm. The advanced merchandise will hold a certain degree of demand, where Nokia will be using this chance to ‘skim off ‘ a little but profitable portion of the market. As there is no replacement in the market, the merchandise will hold inelastic demand, increasing monetary value will increase gross ( Wall, et al. , 2010 ) . Therefore, Nokia will hold lower gross revenues volume, but the high net income ( Wall, et al. , 2010 ) .

Subsequently, when a nomadic phone ‘s life rhythm enters its growing phase, Nokia Malaysia and India reduces the monetary value, utilizing rival pricing scheme ( Nokia, 2004 ) . Nokia can so vie with similar theoretical accounts by rivals in the market ( Wall, et al. , 2010 ) . Although net income made per unit is lesser, the gross revenues volume can be greatly increased. It should be noted that lower priced Nokia phone such as the 5800 XpressMusic is non the cost-leadership in the market, Nokia uses the distinction theory in Porter ‘s Generic Strategies ( Wall, et al. , 2010 ) . The ground is because a Nokia phone is alone in its design and invention, which is unmatched by rivals ( Wall, et al. , 2010 ) . Therefore, even through rival pricing, Nokia ‘s monetary value in Malaysia and India will be somewhat higher than the rivals ‘ low monetary value.

Meanwhile, Nokia United States and United Kingdom employs a combination of prestige pricing and rival pricing ( Nokia, 2004 ) . Nokia USA and UK must be cognizant of the placement of their phone theoretical accounts. N97 mini is positioned as a high-end Mobile, E72 as a prestigiousness concern Mobile, meanwhile, the 5800 XpressMusic is designed for adolescents and pupils, peculiarly in music maps. For the high-end and prestigiousness Mobile, monetary value charged should be higher than the other theoretical accounts. This theoretical account is focused at consumer who wants to hold higher position out of their Mobiles, where in this group of consumers, higher monetary value is related to higher quality, known as the ‘Veblen consequence ‘ ( Wall, et al. , 2010 ) .

In contrast, by mentioning to the tabular array above, the 5800 Xpressmusic will be sold at a monetary value even cheaper compared to monetary values in Malaysia and India as rival pricing scheme is adopted. When there are many low cost Mobiles from other rivals, similar to the 5800 Xpressmusic in the market, it can be said that there are plentifulness of replacements ( Cateora, et al. , 2009 ) . As a consequence, the monetary value snap of demand for this common merchandise will be extremely elastic, the lone manner to increase gross is by puting a lower monetary value ( Cateora, et al. , 2009 ) .

– Topographic point

This selling mix is besides known as the distribution channel, which represents where a merchandise can be purchased ( Wall, et al. , 2010 ) . Nokia USA and Nokia UK chiefly sell nomadic phones through web operators ( Vodafone, 2009 ) and on-line web site ( Nokia, 2009 ) . It is rather an effectual manner of selling in USA and UK through operators as the phone is frequently offered free every bit long as clients choose a rate program and subscribe a contract with the operators ( Vodafone, 2009 ) . In this manner of merchandising, Nokia USA and UK will be able to accomplish high gross revenues volume and increasing their market portion, but the net incomes may non be high since the operators who act as mediators take away a big ball of net income. Meanwhile, selling online in Nokia USA and UK ‘s web sites is another great manner to near the consumers ( Nokia, 2009 ) . Customers can remain at place or in their office, while shopping for their phone online. Besides that, monetary value online is lower compared to monetary value sold in nomadic stores, this is because Nokia does non necessitate any mediators to advance and sell the phone. Hence, on-line merchandising translates to salvaging clients ‘ clip and money.

Whereas Nokia Malaysia chiefly sells its merchandise through traders and its ain flagship shops, where the traders consists of nomadic stores, departmental shops, computing machine shops and even hypermarket ( Nokia, 2009 ) . Meanwhile, Nokia Malaysia opens its flagship shops in all major shopping promenades all around Malaysia. By disregarding hypermarkets, departmental and computing machine shops, ciphering merely nomadic stores and flagship shops, Nokia has 152 merchandising points in Malaysia ( Nokia, 2009 ) . In a flagship shop, users are able to seek out and prove a existent Nokia phone, this allows consumers to take their Nokia right ( Nokia, 2009 ) . Having this web of selling points, Nokia Malaysia is able to make all scope of consumers, from those who reside in metropoliss, to those who stay in rural countries. Malaysians frequently want to cognize and seek what they are purchasing before they buy it. Therefore, they prefer to purchase it from Nokia shops instead than from web operators. Coupled with Nokia ‘s vast merchandising web, rate programs from web operators appears to be less successful in Malaysia.

– Promotion

One of the of import facets in marketing a merchandise depends on how good a publicity scheme is done. Nokia launches a new merchandise often, together with its household of nomadic phones, Nokia has to make publicity that creates awareness amongst consumers, with an purpose to capture new clients and carry bing clients to purchase the merchandise ( McDonald, 2007 ) .

One of Nokia ‘s strong promotional tools is through its Nokia web site. Consumers will be able to cognize, see, compare and virtually experience a Nokia merchandise through Nokia.com. Although Nokia has standardized merchandises, it does non needfully intend that Nokia has to standardise its web site globally, hence, different states has its ain Nokia web site. In order for Nokia ‘s web site to accommodate local ‘s linguistic communications, Nokia has translated its web site into tonss of different linguistic communications ( Nokia, 2009 ) . When runing in states with different civilizations such as China, Nokia China invariably surveys online in its web site, such as inquiring its website visitants to propose alterations and to rate the web site design ( Nokia, 2009 ) . Nokia China is paying attempt to its web site as it knows web site is an of import promotional tool, more of import of all, website needs merely low designing and care fee compared to other publicity tools ( McDonald, 2007 ) .

Nokia ‘s web sites in United States and United Kingdom does non merely exhibit their phones online, but besides sell music online together with phones online ( Nokia, 2009 ) . Nokia in US and UK is making this publicity with the purpose of trusting more gross revenues from younger coevals as this coevals sees music as portion of their lives. Such publicity method even exists in Australia, where vocals can be downloaded for free when an XpressMusic series Mobile is purchased ( Nokia, 2009 ) . This publicity acts as value-added characteristics to clients who buy Nokia, as they can salvage money from buying vocals for their nomadic phones. Value-added characteristic in this publicity will do Nokia phones an advantage when consumers are taking Mobiles in a market with so many rivals ( Cateora, et al. , 2009 ) .

In states such as Malaysia, telephone operators collaborate with Nokia, giving an option for consumers to purchase Nokia phones at a inexpensive monetary value but require clients to subscribe a contract ( Maxis, 2009 ) . This thought works for high volume user as the contract signed requires the user to pay a certain fixed sum. Alternatively, Nokia in India has introduced an interesting publicity since 2005, known as the “ contrary package ” invention ( Mitra & A ; Pande, 2009 ) . Subramanian, the retail manager of Nokia India said this publicity enhances Nokia ‘s strength to get new clients. Alternatively of giving web operators to sell Nokia with their web, Nokia India bundled an operator ‘s SIM card into their distribution system. It does non necessitate drawn-out contracts, therefore accommodating most Indians demands, given their monthly use are low ( Mitra & A ; Pande, 2009 ) .

Suggestion

– Merchandise

Nokia produces sleek, fashionable, high quality phones with plentifulness of maps to save, by and large, this is what the rivals are making excessively. Those maps such as web browser, Wi-Fi, planetary placement system, touch screen, high terminal camera and high capacity storage might non be suited for consumer group, whose age is above 40.

High-end phones are meant to aim younger consumers. Nokia is concentrating at the center of the market, where the monetary value of phones is high, the competition is besides ferocious, and this is the epoch where high tech phones flooded the market. If consumers choose non to purchase high-end phone, they are forced to purchase cheaper phones, which design looks outdated.

If Nokia were to aim all scope of consumers, from adolescents to aged users, a merchandise of simpleness should be made available, finally, the phone that Nokia should plan is a sleek and fashionable phone, but less advanced in its maps. Such phone with good design will non give consumer the feel of outdated, moreover, reduced of advanced maps will convey the monetary value of phone down. The launch of such phone will set Nokia in front of all its rivals, embarking into a new market, where Nokia has the possible to increase its market portion enormously, therefore conveying in higher net income.

– Monetary value

Nokia can go on to keep its high monetary value for high-end phones due to merchandise distinction, as in Nokia USA & A ; UK. But it is non necessary to maintain those low terminal phones at higher monetary value compared to similar phones by rivals such as Samsung and LG. This is because there is non much to distinguish its merchandise. If Nokia engaged in competitory pricing which Nokia sets its monetary value non higher than its rivals, more consumers will finally choose Nokia, as Nokia is the figure one trade name in the universe. Such pricing scheme will work better if employed in developing states such as Myanmar, Vietnam & A ; Egypt. In these states, most users view Mobiles as a necessity merchandise instead than a luxury point. In other words, nomadic phones in this market are being viewed as a extremely elastic merchandise. Therefore, they will most likely choose a lower priced Mobile.

Rather than giving much focal point in high-end Mobile merely, aiming these states with competitory pricing will convey in an excess 1000000s of targeted consumers.

– Topographic point

As cyberspace is acquiring more popular, the incursion of cyberspace is by and large increasing at a significant velocity worldwide, statistics shows cyberspace users increase 380 % from 2000 to 2009 ( Internet World Stats, 2009 ) . Therefore, Nokia should see cyberspace as a new market place as high cost are needed to run a nomadic shop. Furthermore, by selling online, Nokia is able to vie its monetary value with rivals due to take down merchandising and distribution cost. Presently, there are merely 15 states that Nokia are selling its phones online, which includes USA, UK and China. In some other states, such as Australia and even Malaysia where internet incursion rate has reached more than 60 % ( Malayan Communications and Multimedia Commission, 2009 ) , selling online will be extremely executable. Consumers will be able to salvage clip and money, what ‘s more, the phone that they purchased can be delivered every bit shortly as within one twenty-four hours.

– Promotion

If Nokia launches the new series of Mobiles for consumers above age of 40, plentifulness of publicities will hold to be done to inform people the handiness of merchandise. Nokia can publicize the new phone on hoarding, particularly on hoardings located along engorged route or in forepart of a traffic visible radiation. As an illustration, Nokia Malaysia can publicize along the LDP main road as it will be congested during peak hours. This will pull and make consciousness of the new merchandise among the drivers.

Subsequently on, Nokia can publicize more on the phone ‘s inside informations on magazines. The targeted consumer of this Mobile is above age of 40, so Nokia in each state should happen the magazines that will be read most by the targeted age group, ensuing maximal efficiency from the advertizement. For Nokia Malaysia, illustrations of such magazines are the Malaysia Tatler and Female.

Road shows is besides an effectual manner to advance the new Nokia, route shows can be arranged in major shopping composites around the universe. This will enable consumers to prove and seek the phone, acquire information and to cognize more about the phone. Nokia Malaysia can besides advance the phone in the Malayan Personal computer carnival, which are organized quarterly.

Decision

As Nokia continues to develop and establish hi-tech phones, new market sections are still waiting to be explored by Nokia. Some phone theoretical accounts are non required to be so technological advanced, so as the monetary value of such phones. By planing an elegant, high quality yet less advanced phone, Nokia would hold more chances to increase its market portion. Rather than viing merely in the awful market sections where makers maintain on developing new engineering, it will be easier to achieve market portion in the new market where growing can be high and there ‘s virtually no rivals in that section.

On the other manus, it is still critical for Nokia to maintain its way on with its new merchandise invention, traveling for more advanced Mobiles. Nokia is so well-known globally and has established itself as a premium Mobile trade name, which is through the difficult work of changeless invention.

Meanwhile, the hereafter is to travel greener. Nowadays, tonss of French telephone makers are get downing to travel green, so as Nokia, but, still non green plenty. Nokia are traveling to bring forth French telephone with free of PVC and toxic stuffs such as Cl and quicksilver, the purpose is to do the phone wholly reclaimable. As planetary population is get downing to aware of environmental protection, they will be purchasing toxic free and reclaimable phone shortly.

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