Report of Marketing Mix

Sep 11, 2010

A. INTRODUCTION OF NOKIA CORPORATION

Picture A.1 - Nokia Corporation

Nokia Corporation is a Finnish multinational communications corporation headquartered in

Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki. Nokia is engaged in the
manufacturing of mobile devices and in converging Internet and communications industries,
with over 123,000 employees in 120 countries, sales in more than 150 countries and global
annual revenue of EUR 41 billion and operating profit of €1.2 billion as of 2009. It is the
world's largest manufacturer of mobile telephones. Nokia produces mobile devices for every
major market segment and protocol. Nokia offers Internet services and provide free digital
map information and navigation services.

Nokia has sites for research and development, manufacture and sales in many countries
throughout the world. As of December 2009, Nokia had R&D presence in 16 countries and
employed 37,020 people in research and development, representing approximately 30% of
the group's total workforce. The Nokia Research Center, founded in 1986, is Nokia's
industrial research unit consisting of about 500 researchers, engineers and scientists. It has
sites in seven countries: Finland, China, India, Kenya, Switzerland, the United Kingdom and
the United States.

In recent years, Finns have consistently ranked Nokia as one of the best Finnish brands. In
2008, it was the 27th most respected brand among Finns, down from sixth place in 2007. The
Nokia brand, valued at $34.9 billion, is listed as the fifth most valuable global brand in the
Interbrand/BusinessWeek Best Global Brands list of 2009 (first non-US company). It is the

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number one brand in Asia (as of 2007) and Europe (as of 2009), the 41st most admirable
company worldwide in Fortune's World's Most Admired Companies list of 2010 (third in
Network and Other Communications Equipment, seventh non-US company), and the world's
85th largest company as measured by revenue in Fortune Global 500 list of 2009, up from
88th the previous year. As of 2010, AMR Research ranks Nokia's global supply chain
number nineteen in the world.

Leo
Mechelin Fredrik Idestam

Picture A.2 - Founder of Nokia

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http://en.wikipedia.org/wiki/Nokia

B. MARKETING MIX ANALYSIS

I. PRODUCT:
The product that we would like to analyze in this report is a handphone Nokia E71 in
Nokia Eseries.

Picture B.I.1 – Nokia E71

1. STP – Segmentation, Targeting and Positioning

At the beginning, we will mention briefly about STP of the Nokia E71.

- Segmentation:

In the case of the Nokia E71, the Nokia firm has segmented into the retail market by
psychological factors of customers having strong personalities. Company aimed at
those customers who preferred smartphones slim and compact, stylish and
personality. Of this, the Nokia E71 is a smartphone having slim and compact style. It
is stylish and easy to hold tight but not least luxurious. This is a prominent point in the

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exterior shape and structure which make a strong impression and hit strongly the
psychology of choice of customers preferring it.

- Targeting:

The Nokia E71 smartphone is designed to target for business people, with high-speed
download, faster messaging and email. The Nokia E71 smartphone is the Eseries
Nokia range with a QWERTY keyboard targeting business users worldwide with
Symbian operating system. The key features of this Nokia E72 mobile device include
optimized mobile email and messaging experience with full QWERTY keyboard and
pocket-size for one-handed typing.

- Positioning:

http://www.oppapers.com/essays/Nokia-Brand-Positioning/290730

Nokia has been successful in differentiating itself in the crowed and highly
competitive mobile communication industry and its newly targeted battle of internet
industry. Nokia emphasizes technology innovation, fun spirit, design, and ease of use
to build a “trusted relationship” with customers. Nokia’s strategy can be easily spotted
on company’s corporate website: Nokia’s strategy is to build trusted consumer
relationships by offering compelling and valued consumer solutions that combine
beautiful devices with context enriched services . Example would be Nokia phone’s
faceplates and different colors that suit user’s personality, mood and lifestyle. By
owing the “human” dimension of mobile communications, Nokia has taken the best
position for itself, leaving its competitors behind pondering what to own to position
themselves.

2. Three components of the product:

In this part, we start to make clear three components of Nokia E71.

According to levels of product, you can see the handphone added features and options
to the basic product from Nokia, therefore Nokia E71 is the enhanced product.

Nokia E71 is also created by some basic components, such as basic product, features,
packaging, support services, brand and image.

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http://www.knowthis.com/principles-of-marketing-tutorials/product-decisions/product-
components-core-benefits/

For this report, we would like to divide it down into the following fields:

- The core benefit

- Actual product
- Augmented product

a. The core benefit:

With Nokia E71, this is a handphone that makes specialize for business person,
particularly for person who don’t always stay at the office. They have needs to
check the email all times, type the documents, and search web. But they can’t bring
the PC belong them, or open the laptop, it is very difficult and take time.

Understanding this, Nokia launched the Nokia Eseries with model Nokia E71. The
phone with features is like a mini laptop. It helps the users check mail, search web
or deal the jobs with office tools.

Exteriorly, the cover of the E71 is made from stainless steel, white or gray two
carved and painted, hand stamp bearing craft. Designed for use with both hands and
one hand should pay phones this business is quite ergonomic shape, with narrow
and the keyboard is specially designed. Those who use Microsoft Outlook at work
have access to the e-mail over mobile using mobile email client Mail for Exchange
pre-loaded in the machine. With the Nokia E-series device, users can access real-
time trust in e-mail, calendar, contacts and tasks, as well as download and edit
attachments like Word , Excel, Powerpoint or .pdf directly on the machine. In
addition, both these phones support the Nokia Intellisync Wireless solutions as well
as other e-mail solutions. In addition, the E71 supports the latest Ovi services
Nokia, including maps, music and media sharing. Along with these are advanced
interconnect technology such as HSDPA, wireless LAN and 3G. Additionally, the
E71 also built a music player and 3.2 megapixel camera with autofocus capability,
with support for external memory card maximum capacity up to 8 GB.

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b. Actual product:

This part will pay more attention with Nokia E71 product through its design,
features and brand name, Nokia – the famous manufacturer of hand phone.

As the first, you can see the design of product is very professional. It is showed the
level of the user with 3 colors: black, silver and white. It is a luxuriously and
elegantly product, with a nice design.

To be designed for business people, this product have the special characteristics
making sure to bring user benefits as well as convenience in life activities:

• Full keyboards – QWERTY can make flexing your thumbs to create

email on the move fast and accurate.

• Email: Eseries devices run Nokia Messaging, which will give you
access to all the POP and IMAP you can throw at it. It’s also happy to talk using
Mobile VPN, Nokia Intellisync Mobile.
• Full Capacity: The latest Eseries devices might be slim enough to slide
inside a suit pocket. The Nokia E71 will take MicroSD cards up to 8GB for your
complete MP3 collection.
• Office Tools: There’s no point having a mobile office if you can’t look
at office docs on the move. Eseries with QuickOffice on board enabling you to
open and edit Word, PowerPoint and Excel docs and there’s Microsoft Mobile
Office in the pipeline.
• Entertainment: The phone will let you relax after a busy day with a
video camera, a music player and radio. Nokia E71 is a good example of mixing
business with pleasure.
Furthermore, the E71 is made up of many key features which can meet customers’
needs by its attributes, such as:

• Quad-band GSM support

• 3G with HSDPA 3.6Mbps support
• Landscape 2.36" 16M color display of QVGA resolution

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• Comfortable full QWERTY keypad
• 110 MB of internal memory, microSD expansion, ships with a 2GB
card
• Slimmest smartphone to-date, slimmest Wi-Fi and/or GPS handset
to-date
• Bluetooth v2.0 with A2DP support
• MicroUSB v2.0
• Office document editor

(http://www.gsmarena.com/nokia_e71-review-266.php)

Besides that, the design and construction make it unique without the same with any
other phones. The first impression when you see the Nokia E71 is the "body" is
extremely uncertain. Inherited metal casing with a black two-tone light of E71
looks very fashionable. The design of the machine are very high scoring: make sure
the metal frame out thousands of times a user's fingerprint.

Size of the computer screen of the line was reduced from 2.8 inches down to 2.36
inches, but the difference only shows when the phone is placed next to each other.
Left, the whole "body" of E71 have been improved from E61i. QVGA screen
supports 16 million colors.

On the left side of the handset are the infrared port (a technology that's seemingly
obsolete), the microSD card slot and the microUSB port. Both apertures are
covered with plastic lids to hold off dirt and dust, and keep the contour of the
handset intact. The right side of Nokia E71 hosts the 2.5 mm standard audio jack
and the two volume controls. The bottom of Nokia's newest messenger features the
lanyard eyelet and the charger plug.

The brand Nokia E71 is printed with a bold outline clearly together with a big
image of the product outside the box. In the box of product, you can receive a set of
product, accessories and some documents. With the package, the phone is
protected from damage and customers can get the information from it, so that they
can use it with all applied.
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c. Augmented product:

After-sales service, delivery terms will be different, belonging to location and

wholesalers or retailers on over the world in convenience. Besides that, when
customers buy the E71 at any store, they will receive a full installment of programs
for the E71 from the seller. Manufacturer warranty is usually one year after sales
for the E71. During the warranty period, customers’ E71 will be fixed or renewed if
any incident happens.

3. Product life cycle:

a. Introduction:

In 2008 Nokia launched the E71 into market. While this takes time and costs for
the product to penetrate into the market. During this period, sales and revenue
growth were low due to products not yet widely known or consumers not to give
up the habit of using existing products so they would explore to decide to buy or
not buy products. This required that Nokia needed to step up promotion activities
to inform and increase levels of customer awareness about E71, to impact on the
group of customers willing to buy products in the early stages in order to create
favorable conditions for implementation of promotional strategies noisily to help
E71 quickly enter the market at the highest level.

b. Growth:

During this consumption period of E71 went up by the market acceptance of new
products; however, competition in the market started increasing. Nokia has
expanded the market and attacked on new market segments in the current market
and considered the sale price (it was down from the beginning), developed
distribution channels to promote promotion activities in the channel. It is important
that promotion activities should focus on building reputation and promote E71 to

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create customers confidence and encourage customers to use it. During this period
with over ten million E71 phones were sold within six of 2008.

c. Maturity:

The consumption outputs and the revenue reach a maximum level; however due to
very slow growth and the market demand in saturation, its sales is slow leading to
compete strongly in this stage. So Nokia has reviewed issues such as:

• Market: To maintain the consumption in the current market and exploit new

markets.

• Marketing activities: To improve the product and consolidate distribution

channels and develop new channels, increase promotion activities, reduce sales
price.

d. Decline:

Product volume and profitability declined so seriously, therefore it needed to be

researched and new products were launched to market while the current product
was in business. Now Nokia has launched a new product line is E72.

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Growth

Maturity
ion
Introduct

Decline
Sales

Profit

Figure A.I.3 – E71 life cycle

II. PRICE:

On August 2008, Nokia E71 was launched to the Vietnam market, aiming to the target
market of luxury hand phone. Its price in this period is VND 8,9 million. And now, in the
first six months of 2010, the price of Nokia E71 is about VND 6 million. In the first time,
Nokia used market-skimming pricing strategy for pricing. This is the strategy that setting a
high price for a new product to skim maximum revenues layer by layer from the segments
willing to pay the high price. With the big brand name, E71 is aimed to the high class, and
this is the reason why the price is high. It encourages the customer in the target market
willing to buy the product. And then, step by step, the demand of customers is decreased.
Nokia used another strategy to attract customer. The pricing would decrease slightly to
encourage customer in lower class to purchase the product. This is called market-

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penetration pricing strategy. It is setting a low price for a new product in order to attract a
large number of new buyers and a large market share.

Of course, with the grant brand name of Nokia and the guaranteed quality, the pricing
strategy of Nokia was successful when they reduced price of product, and it has made the
demand of customers increased.

III. PLACE:

In US and Europe, Nokia mainly use some of mobile service suppliers to sell hand
phones to customers.

But in Asia, the retailer market is 40%, and in Vietnam is 60%. It is a big market to the
giant brand like Nokia.

Base on the purchase habit of Vietnamese, Nokia use the suitable strategy for distribution
channel. They use some big suppliers as merchant wholesaler who are independently
owned business that takes title to the merchandise it handles. They have a system of
chain retailer stores like superstore in the country. It makes everyone easily access with
this product and feel very comfortable when they want to buy a new product.

The customers can easy to find out some product of Nokia in any Mobile Shop, in all the
country.

With this system, it not only easy to buy, but also it is become an effective system of
guarantee in after sales.

Besides, you can easy to buy this kind of Nokia through the Internet. And pay online. The
product will be delivery in the door.

In general, you can buy a product of Nokia in Vietnam by various ways. It suitable with
the Vietnamese’s buying habit that want to end the business very fast and not want to go
so far to have the product. So this strategy is so success in Vietnam market.

IV. PROMOTION:

1. Promotion plan of Nokia:

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Nowadays, Nokia has a new planning for promotion which save about 50% promotion
budget. They do not advertise widely, but they focus on some media. Advertisements
are posted on website, on some magazines and on television in “Gold Hour”. These
methods have brought a success to Nokia.

Besides, they also have another way to contact and attract customers for the E-series.
They designed the video situation about a young businessman who is very difficult to
check his email when he works outside the office. The video will receive any ideas
from customer to solve this problem. This humor video is introduced in a lot of
websites, social webs like youtube.com, zing.vn, clip.vn … It is focused on young
people in Vietnam who access the Internet a lot.

2. Promotion program of Nokia:

For Nokia E71, you can find its information in a lot of media. Nokia uses many ways
in marketing promotion for their product including advertising (on newspaper,
magazine, and television), Internet marketing, sales promotion and personal selling.
With all these methods, they inform customer very well about Nokia E71 with its
design, functions, characteristic and price.

And when customers enter the store, they can receive the advice from sales person
(personal selling), so they can make the best choice. After purchasing, they also have
the good service for warranty. It is the reason why the trust of customer with the brand
name of Nokia is very good.

http://www.tin247.com/nokia_manh_ve_ban_le_tai_chau_a_thai_binh_duong-19-
146867.html

C. CONCLUSION:

Through the research of marketing mix analysis of Nokia on E71, we will understand some
general concepts about the product and the strategy Nokia has used to popularize their
product very well. Every elements was considered and applied carefully as well as the
strategy for each of them conducted rather successfully. Nokia is a big telecommunication
group so this success of E71 is also obvious. As the result of these, E71 quickly is

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acknowledged and used widely and popularly on over the world, contributing to bring more
value to Nokia as well as its competition position.

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