Marketing mix

NOKIA;PART 2

Marinella Koskela
Valeria Sarco
Gracia Mukendi
Ajla Kozljak
Andrea Ticu
Majd

Marinella Koskela Ajla KozljakGracia

MukendiAndrea Ticu
EXECUTIVE SUMMARY
 Goals
By the end of 2017, we would like to have a total revenue of 30 billion euros.
By the end of 2017, we would like to sell 1 billion devices.
By the end of 2017, we would like to increase the spontaneous brand
awareness of Nokia from 10% to 20%.

Strategy

Who are the core buyers of your brand?

It appears Nokia is targeting specific groups of customers based on different variables, and
based on that they focus on marketing efforts. Behind Nokias target groups there are two
main reasons: one is to make profit and second for communication and loyalty purposes.
Mainly Nokia is seen as a brand for older people that appreciate convenience. The core
buyers of Nokia brand are business people, housewives, elderly people and loyal customers.
Whats the core need of the target consumer?
As Nokia is appreciated by older people more, that appreciate convenience, good quality,
long lasting battery and durability. Thereafter, the brand does its best to met those needs. The
need of the targeted group is good quality above everything else basically a cellphone that
will survive an apocalypse; another important thing is that Nokia cellphones are relatively
cheaper.
What are the elements which can describe the buyer?
Market segmentation is the process of identifying group of segments in a specific market that
share specific characteristics. According to that companies can develop certain marketing
campaigns focusing on the needs of each market. This is a much better strategy than the one
fits all mentality. Different variables such as demographics, behavioral, geographic and
psychographics can be used. Nokia has divided the market into four segments:
1) Hi-fliers: which are corporate executives, aged between 25-45 and use the
products mainly for business related features. In most cases the products are
sponsored by the company so price here is not an issues.
2) Trendsetters: also called the early adapters. These people are the first people to
buy a new models and to start a trend.
3) Social contact: which is a segment of people that used the cellphones just to stay
in touch. Examples are younger children, and housewives.
4) Assured: part of this segment are the high profile celebrities, CEOs, and high end
people which cannot live without a cellphone and it is a must for them = and this
is where the name assured comes from.
 Which are the crucial partners who are needed to create the value
proposition?
In order to deliver a companys value proposition, all departments must work together. From
marketing, sales to production and storage. All partners must be on the same page to deliver
good quality and make customers satisfied. The most important entity in this case, or at least
that holds the power is Microsoft. All other partners are not to be ignored, instead to be in
close contact with.

Entities with the SAME value proposition

A value proposition is a statement that explains why customer should buy a certain brand.
Nokias value proposition is connecting people. Each brand differentiates itself through
their values. For example, Apples proposition is Apples is committed to bring the best
personal computing experience to students, educators, creative professionals and consumers
around the world through its innovative hardware, software and Internet offerings. These
two propositions are formulated differently but send the same message, which is to connect
people while enjoying a good experience.

Is there a specific entity within the company which cares about

your brand?
Nokia is owned by Microsoft, which is already a huge advantage. Although lately Microsoft
has not given the brand the attention it deserves, it is constantly inventing towards reaching
its peak.

Is there something on economic base that can impact the value of

your brand?

Interest rates: Changes in interest rates will affect the company in two ways; it impacts
customers buying behavior but also the buying activities of the company itself. If interest
rates increase, the borrowing of money becomes more expensive. For instance, if Nokia
needs a loan to finance some of its business activities when the interest rates are very high, it
will make the process more expensive. On the other hand, if the companys interest rates
increase, it means that Nokia will charge more from its customers who are buying on credit.
Eventually increase in interest rates will result as a cut in spending, because of the higher cost
included. The impact of low interest rates is opposite; it is cheaper to borrow money, for both
company and its customers. This will affect the company positively because of two reasons.
Firstly, it can finance its operations - such as manufacturing or purchasing with less
expenses. Secondly, the customers will buy more, because of the lower cost of credit.
Exchange rates: Changes in exchange rates will affect Nokia in many ways, because as
mentioned, the company is having both customers and suppliers worldwide. When buying
products from foreign suppliers, the costs depends on the local currency. Also, when
exporting its products to the countries with different currency, Nokia needs to consider the
price of the goods, which will intrinsically affect its profits. In addition, if the company is
having loans or investments in another currency, the exchange rates will impact the total
costs or profits.
Recession: Recession will impact Nokia as well as other businesses and the economies. In
Nokias case the recession in one country, will affect its business operations such as demand
and supply of its products. If recession is larger and happens in a whole monetary union, such
as Eurozone, at the same time, the consequences will naturally affect the company more.
Recession will be seen as a decrease of income, increase of unemployment, cut in consumer
spending and decrease in business activities such as manufacturing and production.
Inflation: Inflation will affect the businesses in many ways. From Nokias point of view the
inflation would result in increase of business costs, but also as an increase of profits. It is not
necessarily a negative or a positive thing, as the company would suffer from bigger costs of
business operations, but at the same time profit from higher profits as the prices go up.
Taxes: Taxes are affecting Nokias operating costs but they are also affecting the demand of
the companys products, depending on the different tax policies of different nations.
Governments can regulate the business costs for instance in means of corporate taxes, VAT,
and environmental taxes. The changes in these taxes can either decrease or increase Nokias
costs of doing business. Governments can also courage or discourage consumers buying
behavior by means of tax policy, which will also affect businesses such as Nokia.
Demand & Supply: Demand and supply are affected by many different factors, such as the
ones listed above. When demand is high, the company will profit from increase of sales and it
can increase its prices in some cases. If demand is low, the company might have to decrease
the prices to avoid surplus. How much the company will supply, depends for instance on
prices of raw materials, other costs such as logistical and transport costs and demand of the
products.

Is there something on business base that can impact the value of your
brand?
The most important element of Nokias business base (which can have a crucial impact on
the value of the brand itself) is Nokias manufacturers. They are spread throughout the whole
world, being located in various countries such as Finland, China, Brazil, India, etc. Any kind
of political or economic issue related to those countries could affect Nokia and its ability of
manufacturing its products in the mentioned countries.
Can technological evolution influence your business situation?
Technological evolution, as already mentioned, was a great challenge for Nokia. However,
the company overcame it and started to produce devices which were considered to be a social
trend. Those devices are the smartphones, which have been offered before by Nokias
competitors such as Apple and Samsung. This was a crucial step for Nokia which helped the
brand to continue existing on the market. In terms of the opportunities that can be seen in the
future, Nokia could start producing other types of mobile devices (such as tablets or wearable
devices). This would help Nokia to increase its competitiveness.
Are there any sociocultural trends in the market which can influence
your decisions/actions?
As already mentioned, society is constantly changing. Nokia was already challenged by a
societal or even sociocultural trend which was that of people switching from the use of
common mobile phones to that of smartphones. Apple Inc. and Samsung were leading the
market due to their offerings in the form of smartphones. Nokia took the wise decision of
starting to produce similar devices. However, it took the company a longer than expected
time to do that. In terms of the future, if new sociocultural trends appear, Nokia should keep
up with them and continue satisfying its customers by proving offerings that would match
with their needs.

Do you have to consider some physical changes (all about nature and
human beings)?
As society is in a constant change, the needs of the customers are too. Therefore, Nokia
should develop products that would meet the needs and tastes of the customers. In terms of
the nature, the manufacturing factories have to be chosen wisely, so that they are not located
in places where natural calamities are expected to happen.

Try to describe the value proposition from the eyes of the consumer

Customers:
Value proposition: Simplicity of use combined with high quality and acceptable price
Positioning statement: For everyone who is in need of simplicity and quality, our company
is the solution to your needs.

Try to describe the value proposition from the eyes of the

collaborator
Collaborator value:
Value proposition: Understanding and successful collaboration will make it work

Positioning statement: For every manufacturer who collaborates with us, we provide
valuable prices and we expect good outcome.

Try to describe the value proposition for the company

Company value:
Value proposition: With collaboration and good risk management, effectiveness and
efficiency will lead us to win.
Positioning statement: Effective communication together with skilled employees and an
efficient strategy will lead us to success.

Tactics

In order to transform our goals into a well-composed strategy, it is necessary to define the
tactics that will be used. There will be specific tactics assigned to each specific goal. By
doing so, we will create the opportunity of achieving our goals, through ways that are more
practical-driven. Generally, tactics such as Product, Brand, Price, Distribution, Promotion
and Communication will be used. The tactics will be applied through 2 methods : by
overcoming our weaknesses, specifically those that are technically related to the device as
well as by using an opportunity, which in this case is the Nokia 3310 itself.

1) In order to achieve the goal of having a total revenue of 30 billion euros by the of
year 2017, the tactics to be used will be Product, Price, Promotion and
Communication. The goal will be achieved through the sale of 1 billion devices
(Nokia 3310), one device being sold at the price of 50.
The 1st tactic, Product, emphasizes the re-launch of Nokia 3310 on the market as
well as its utility. Besides its physical advantages, those of a light weight and
diversity in color choice, Nokia 3310 has a lot of important internal features that
will ensure the product being sold. Most important and valued feature is that of a
battery life of about 2 weeks. The device will provide the possibility of having a
22hour talk time, it will encompass Bluetooth and a camera too. Consequently, the
most valuable features of Nokia 3310 are expected to be its battery time resistance
as well as its unbreakable design.

The 2nd tactic, Price, focuses on providing an affordable price for the Nokia 3310.
As the device is not innovative itself but rather represents a commodity, the retail
price will be that of 50. In regards with the customer, there will be no price
schedules and the price will remain constant throughout the world. The trade
price, or the price that our collaborators will buy the device for will be of 35.

The 3rd tactic, Communication, will be composed of a new promotional campaign that will
reinforce Nokias image and will deliver a message that will be created around the idea of the
utility of using a device such as Nokia 3310.
The POSs will remain the same, as Nokias brand visibility will be mainly
reinforced through the promotional campaign and most of the targeted
consumers are already aware of the existence of Nokia as well as of the
POSs where they can purchase its products.
 We do believe that we will score high on TOM, as Nokia is an extremely
well-known brand with a strong history. The return of Nokia on the
market will reinforce its brand awareness.
The OTS is expected to be high too, due to the fact that Nokia is a popular
brand. Even if the potential customers will not be stimulated towards the
purchase of the product, they will still be curious about viewing Nokias
promotional campaign.

2. In order to achieve the goal of selling 1 billion devices by the end of the year 2017, the
tactics that will be used are Product, Price and Communication (which have already been
mentioned previously) as well as Distribution. The Distribution channel will emphasize the
use of new channels alongside the older ones, focusing on e-commerce as nowadays the
online market is of a great potential. As Nokia already operates on an international level,
there arent new countries to enter. However, we aim to reinforce the consumers from
countries that are not developed enough yet (countries located in Eastern Europe as well as
African countries) by providing them a low-cost device. In this regard, we have a great
competitive advantage.

3. In order to achieve the goal of increasing the spontaneous brand awareness by 10%
(from 10% to 20%), we will use tactics such as Promotion and Communication
(which have been mentioned previously) and Brand. The Brand tactic will focus on
creating an emotional link between the consumer and Nokia, which is feasible due to
the fact that Nokia has already a great brand awareness. Our main target group, which
is CEOs, people involved in politics, etc. has an average age of 35-60. These people
have lived the whole history of Nokia, most importantly the moments when Nokia
was one of the leaders in the industry, and as a result, these people are expected to be
more sensitive toward the launch of a useful device. The use of a new promotional
campaign will not only rise Nokias brand awareness in our main target group, but
also in all people who will view/hear of the new campaign. On a long term, the use of
 various Communication and Promotional tools on a regular basis will provide us the
opportunity of maintaining the desired brand awareness.

Implementation

Defining the business infrastructure :

Nokia consists of the "Group Executive Board", the units managing
"services", "solutions", "devices", "markets", the "Nokia-Siemens
network", and "NAVTEQ". It has 22 subsidiaries & 213 executives

Moreover you have the "Corporate Development" and the

"Corporate Functions". These units are placed hierarchical with
specific tasks and responsibilities. I

First of all the Group Executive Board of Nokia is responsible for managing the operations of
Nokia. Then, the "devices" unit is responsible for developing and managing the portfolio of
mobile devices, who are made for all major consumer segments. The "services" unit is
responsible for designing and developing Internet services that enrich the experience people
have with their mobile devices and the web. The "solutions" unit drives Nokia's offering of
solutions, where the mobile device, personalized services, and content are integrated into a
unique and compelling package for the consumer. This unit is responsible for creating and
concepting such solutions.

The "markets" unit is responsible for managing supply chains, brand and marketing
activities and is responsible for delivering devices, services, and solutions to the consumers.
Corporate Developing offers operational support to devices, services, solutions, and markets,
and is also responsible for exploring corporate strategic and future growth opportunities.

In addition, there is the "Nokia-Siemens Network", which provides wireless and fixed
network infrastructure communications and networks service platforms, as well as
professional services to operators and service providers.
Last but not least, NAVTEQ is a leading provider of comprehensive digital map data for
automotive navigations systems, mobile navigation devices, Internet based mapping
applications, as well as government and business solutions
Nokia is also divided into five businesses those being: Mobile Networks, Fixed Networks,
Applications & Analytics, IP/Optical Networks, and Nokia Technologies. The business
entities are run by a group president who report to Nokia president and Chief Executive
Officer, Rajeev Suri. Each business group has strategic, operational, and financial
responsibility for its portfolio and is fully accountable for meeting its targets.

Additionally there are seven unit leaders, those positions are: Chief Financial Officer, Chief
Customer Operations Officer, Chief Innovation & Operating Officer, Chief Human
Resources Officer, Chief Strategy Officer, Chief Marketing Officer and Chief Legal Officer.
They report directly to the President and CEO.

Strategic planning (to capture target market and value proposition)

Our main target market is business men aged 35 to 60 which have lived throughout the whole
life of Nokia. Those specific customers have an emotional connection with Nokia as a brand
as well as the Nokia 3310 mobile device. The main concentration of the re-launch of Nokia
3310 is focusing on this target market by letting customers relive their youth and in addition
to That, Nokia 3310 will target poor countries that will find this product very useful because
of the cheap price of it compared with prices of competitive products as well as the two most
valuable features in it; which are the long battery life and the fact that the device itself is
unbreakable.
We believe that the competition for Nokia 3310 is very low and that is because no other
phones have the features of this product, and we believe that we have various strengths in our
product (Nokia 3310).
As for the weaknesses we believe that customers might see that the low technology in the
Nokia 3310 compared with other mobile phones and smartphones is a weakness but we can
argue about that, focusing on the idea that the purpose of Nokia 3310 is to act as a
commodity with a long-life battery that can be relied on.

Resource management

The resources of the company are well managed because of our long experience in this
industry.
We use the highest information technologies in our company in order to keep the company in
the market and to increase our market share.
In addition to that we have various trainings for our employees in order to provide better
services and products to our customers.

Nokia has multiple investors which make the financial resources available for our growth and
continuity.

Product and service management

By re-launching the Nokia 3310 we are focusing on the customers needs and requirements
for a mobile phone that can give them better utility regarding battery life and strength, as
nowadays, the main complaints of customers are related to these two attributes that provide
us a great competitive advantage.

Price management

We have decided to keep a reasonable price for Nokia 3310 to give all people around the
world the opportunity to connect to the world by using an affordable high quality phone.
We believe that with the price of 50, we can achieve our profit goals, as Nokia 3310 will be
accessible to a wide range of customers thus will increase the quantity sold.

The constant price of 50 throughout the years and all over the world will generate a constant
growth for our sales, revenue and share in the market.

Incentives management

Within our company we are using both individual and group incentive plans in order to
encourage and motivate our employees and to attract customers.

Communication management

Our companys history and the strong brand name we have provide us better communication
with both our suppliers and customers.
We also have strong communication channels within the company which gives us a better
opportunity to achieve our short-term and long-term goals.
Distribution management

In distributing our Nokia 3310 we will focus on using the old distribution channels we have
as well as new channels that will help us generate the profits we expect to have.

It is very important for us to introduce the new Nokia 3310 all over the world to be able to
meet our expectations and our target market, and this will need a strong distribution plan with
efficient channels that will help us reach customers in the best ways possible.

Control

Performance evaluation:

Adequate goal progress

Goal 1: By the end of 2017, we would like to have a total revenue of 30 billion euros.
We managed to reach this goal, and even exceed the expected revenue of 30 billion with 1
billion euros. We focused on Price, Product, Promotion, and Communication as explained in
our tactics.
Goal 2: By the end of 2017, we would like to sell 1 billion devices.
We sold the expected number of devices by focusing on Product, Price, Communication, and
Distribution.
Goal 3: By the end of 2017, we would like to increase the spontaneous brand awareness
of Nokia from 10% to 20%.
According to our brand awareness analysis we managed to increase the spontaneous brand
awareness from 10% to 15%. Next year we will work harder with Promotion,
Communication, and Brand to achieve the goal of 20%.

Performance gaps

As we managed to achieve the first two goals, we can make a conclusion that our
performance in the areas of Price, Production, Promotion, Communication, and Distribution
was successful. TOM is already high as people are familiar with Nokia and now when the
3310 was brought to the market again, the awareness of the brand is even higher. We used
GRP to plan our advertising and we targeted 80% of the population of each country with our
commercials.
However, we did not manage to increase the spontaneous brand awareness as planned. This is
due to the lack of time, as we did not manage to turn our marketing strategy into action
completely. As planned, we wanted to create an emotional link between the consumers and
Nokia, but for the next year we must plan more efficient campaigns and improve our
strategies to build this link.

Environmental analysis

Opportunities

Achieving our goals has brought us new opportunities, as we managed to refresh the image of
our brand and increase the sales. As we reached our revenue and selling goals, we have
opportunity to increase our market share and gain new customers. We see the future as
positive and we think we have a great chance to get our brand reputation back and compete
with current market leaders such as Apple and Samsung. Other external opportunities are
different markets in different countries and we will make specific plans for each country to
target the customers.

Threats

The competitors, such as above mentioned companies, are one of our biggest threats. As they
are market leaders and having great amount of customer loyalty, we need more tools to
compete against them. It is also always risky to invest as much money as we have planned on
our different strategies. Even though we achieved our sales and total revenue goals, the risk is
that we will not be able to keep up with the sales next year. It can be due to different external
factors, such as decrease new competitors or an economic downturn.

Exhibits
 Brand awareness of Nokia

-Sales
revenue
with brand
awareness of 10%
- Sales
revenue with
brand
awareness of
20%

Percentage of each segments influencing the brand

awareness increase of 20%
 - influence of promotion on
the increase

- influence of communication
on the increase

- influence of the brand on

increase

Increase in Nokica devices sold

1.20

1.00

0.80

0.60

0.40

0.20

0.00
4months after release 8 months after release 12 months after release

Number of devices sold in billions

 for 2017

Revenue of Increase Brand

Sell 1 Billion
30 billion Devices
Awarness To
euro 20%

Product: Price: Communicatio Brand:

Distribution:
affordable n: emotional
re-launch of price of 50 Marketing
enphasis on e connection
Nokia 3310 commerce with the brand
euro Campaigns