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NOKIA GLOBAL MARKETING
---STP analysis system
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Contents About Nokia 3 1 4P 2 STP analysis 3 4 summary
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now Finnish cable works The mobile era begins Leading the world 1965
1967 1991 1999 now 2007 Finnish cable works Finnish rubber works The mobile era begins Leading the world 3G The move to mobile Nokia’ first century Nokia now Mobile revolution
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About Nokia 4P
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The market of Africa A huge market----about 100,000,000 users now, only 9% of the whole population. The demand is sharply increasing, especially among the young. Most are underdeveloped or developing countries with low-level communication technology.
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Nokia in Africa Monopolist position----a 34% market share.
Targeting at young people and ordinary families. Emphasis on it’s low-price and good quality. Most of its product issued are bar phone with simple functions.
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Segmentation and localization
Egypt South Africa Kenya
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Egypt Passionate love with mobile phone----many have more than one set. Office workers and students constitute a large part of its consumers, pursuing fashion and personality.
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South Africa More than 70%people own mobile phones.
The young and major users enjoy sending messages. You need to pay only 4.99 zar phone bills every month to get mobile phone. Ads on newspaper provide you with lots of the latest ringtones and pictures.
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Kenya Nokia set up its African research center in its capital----Nairobi ,to understand the customer needs in the market of east and middle Africa. Nokia targets the large rural areas with specially designed phones, which have a rubber case for dust-proof and mini-flashlight. Add transfer-account service to benefit the peasants without bank accounts. Battery chargers attached on bicycle are provided for remote districts.
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Asia Emerging markets----China,India,Indonesia, Vietnam,Philippines.
Mature markets----Japan, Korea. Pay close attention to the price and focus on the middle and low-end market.
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The young generation attach great importance to fashionable design and combined multipurpose entertainment system. Add social networking site and instant-chat service in its newly-designed sets----C3. High-end mobiles for European market are modified for Asian consumers.
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China In response to Chinese Government's Consumer Electronics Subsidy Program, Nokia issued 30 sets of mobiles in rural regions. Set up a “Gongzhen(攻镇)” project in 2007 to expand its sales in vast rural areas by strengthening connections with farmers. Launch more high-end and multifunctional smartphones.
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India Cooperate with local telecommunication operators.
Supply Mobile Money Service with the native YES Bank. Provide free box service. Specially designed sets with non-slip surface due to its sweating weather there.
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Japan and Korea Not welcome in these mature markets.
Tough native opponents such as Anycall, Sony Ericsson and LG. Lack of localization. Backward technology for hardware. Old-fashioned and poorly-designed.
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Europe Nokia’s stronghold where its core business operates.
The universal use of smartphones. Mobile is seen as an important companion in their daily life. Value-added services and mobile applications play key roles. (eg. Ovi Mail, GPS, Wi-Fi) High-end sets are targeted.
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North America Sales in North America have been decreased these years because of the fierce competition from Apple and RIM. Competing in North America means competing in high tech. Smartphone have a great market here. iPhone from Apple and blackberry from RIM are excellent examples.
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Unfortunately, Nokia didn’t do much when marching into North America market. They pay a lot attention on GSM instead of CDMA, which became more popular in North America, which limited the expansion of Nokia in this market.
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Latin America Nokia play an important role in Latin America’s Mobil phone market. We can say it’s the “leader” in this market. But recently, sales here didn’t performed well. It was reported that Nokia have confidence to have 2 billion consumers in Latin America Market by Now it’s on the way to reach this target, but the fact is, it just performed a little bit better than that in North America.
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Nokia has realized the importance of marketing in Latin America
Nokia has realized the importance of marketing in Latin America. So it has took several measures to consolidated the leading position. Spokesman from Nokia said that their company is researching the possibility of building another factory in Argentina, which, if implemented, would greatly enhance the competitiveness in this market.
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Middle East Middle East is a totally different kind of market from North America. Firstly, Middle East Market is a relatively new market. For example, Nokia opened its first franchise in Middle East in 2008.
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Secondly, people there needs more Low-end Mobil phones to meet their daily communication needs.
Nokia launched three new kinds of products in Middle East Market, which are cheaper than that in other markets around the world.
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Behavioral Occasions Benefits User status User rates Loyalty status
Readiness stage Attitude toward the product
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Inter-company connections
Benefit GPRS Visual Stock Inter-company connections Music Radio Camera Games Making phone calls Texting Time Basic uses Fashion Business Entertainment Basic uses
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Target market Nokia path Fashion followers Businessmen
Entertainment seekers Basic users
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Position Fundamental users Serial One & Two 2690 2323c 2220s
Main competitors in the area: Low cost brands such as Bird(波导) Strengths: stability long time of powering resist breaking by falling , etc
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2220s 2323c 2690
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Position Entertainment seekers Nokia X series serial 5
X X6-00 Main competitors in the area: music game phone brands such as BBK Strength: personality combined functions with Nseries
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5330 X6-00 X3-02
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Position Businessmen Nokia serial E,9&6 Main competitors: Blackberry
Strengths: Cheaper More supporting software Adapting to the local market better More choices of the appearance
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Vs
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Position Fashion followers Nokia serial N,7 & 8
Main competitors: Iphone Strengths: Cheaper Adapting to the local market better More choices of the appearance
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Multiplication strategy
As we can see, Nokia entered every segments of the cell-phone market, which reflects its Multiplication strategy . One of the weakness of the Multiplication strategy is that it may lead to the abuse of the company’s resource. However, as for Nokia, this company has a clear position of each series and products, which helps the company to minimize this shortage and perfectly using the Multiplication strategy
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Strength
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WEAKNESS
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