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Marketing – Right Choices

| Off Campus & Assignment Handling Services Division of Information Services Nathan Campus GRIFFITH UNIVERSITY QLD 4111 | ASSIGNMENT COVER SHEET Open Universities Australia | Student details| Name| Gokhan Aykut| Course| B. Comm| Unit details| Unit code| MKT 103| Unit name| Introduction To Marketing| Unit tutor| Kieth| Assessment Item details| Marketing Report| Due date| 20/02/2012| Word count| 2500| Extension granted| v? No ? Yes| Extension date| | Is this a resubmission? v? No ? Yes| Resubmission date| | ACADEMIC INTEGRITY DECLARATION Breaches of academic integrity (cheating, plagiarism, falsification of data, collusion) seriously compromise student learning, as well as the University’s assessment of the effectiveness of that learning and the academic quality of the University’s awards. All breaches of academic integrity are taken seriously and could result in penalties including failure in the course and exclusion from the University.

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Students should be aware that the University uses text-matching software to safeguard the quality of student learning and that your assignment will be checked using this software. I acknowledge and agree that the examiner of this assessment item may, for the purpose of marking this assessment item: 1 reproduce this assessment item and provide a copy to another Griffith staff member; and/ 2 submit this assessment item to a text-matching service. This web-based service will retain a copy of this assessment item for checking the work of other students, but will not reproduce it in any form.

Examiners will only award marks for work within this assignment that is your own original work. I, hereby certify that : 1 except where I have indicated, this assignment is my own work, based on my personal study and/or research. 2 I have acknowledged all materials and sources used in the preparation of this assignment whether they be books, articles, reports, lecture notes, or any other kind of document or personal communication. 3 I have not collaborated with another student or person in planning, eveloping and writing this assessment item. 4 this assignment has not been submitted for assessment in any other course or at any other time in the same course. 5 I have not copied in part or in whole or otherwise plagiarised the work of other students and/or other persons. 6 I haven’t made this piece of work available to another student. Providing this declaration falsely is considered a breach of academic integrity. I have retained a copy of this assessment item for my own records. Date: 09/01/2012. (Gokhan Aykut) | Executive Summary

The following report is the marketing plan for the new Nokia Lumia 910G for the global market for the financial year of 2012-2013. After many years of unsuccessful handsets which have lead to a decline in growth, this handset is designed to regain the market share globally and for Nokia to lead into a new generation of developing low cost handsets with high end features with the added benefit of showing to the world that Nokia is environmentally conscious and a proud ambassador for protecting our very fragile planet. The company’s mission statement Everyone has a need to communicate and share. Nokia helps fulfill these needs and we help people feel close to what matters. We focus on consumers by providing very human technology” * Commitment to deliver outstanding and innovated products to our customers. We seek to become the number one electronics company throughout the world. * Focused to maintain outstanding relationship with all of customers and distribution partners globally. By maintaining our strong relationship our aim is to become once again the number one handset manufacture globally.

The marketing plan will focus on the smartphone and the current line of smartphones that Nokia has introduced, it will outlined the detailed of the current promotion and marketing campaigns used and how it could further better those campaigns. The target market that this handset will be focused on is generation Z in particular, 15-22 year old males and females. This generation is the trend setters of today and are ‘digital natives’, it will also analyse relevant factors with the company including, competitors, customers and SWOT analysis.

Table Of Contents Executive Summary………………………………………………………………….. 2 Introduction…………………………………………………………………………… 4 Situation Analysis……………………………………………………………………. 5 Macro Environment………………………………………………………………….. 6 Political Legal Environment………………………………………………………… 7 Technology…………………………………………………………………………. 7-8 Competitor Analysis………………………………………………………………. 8-9 Consumer Analysis………………………………………………………………… 9-10 Internal Environment………………………………………………………………. 11 Sales Market Share………………………………………………………………… 11 Brand Awareness……………………………………………………………………. 1 Promotional And Marketing……………………………………………………….. 11-12 SWOT Analysis……………………………………………………………………. 13-14 Objectives………………………………………………………………………….. 15 Target Market………………………………………………………………………. 16 Positioning Map……………………………………………………………………. 17 Marketing Mix Strategies………………………………………………………….. 18-20 Evaluation………………………………………………………………………….. 21 Implementation…………………………………………………………………….. 22 Conclusion…………………………………………………………………………. 23 References…………………………………………………………………………. 24 Introduction Nokia was first established in 1865 on the banks of Nokianvitra River in Finland by Fredrick Idestam.

He would set up a wood pulp mill and produced paper, the original form of communication. It was later on were a merger took place with Finnish Rubber Works and Finnish Cable Works that gave birth to Nokia Corporation in 1965. The name of Nokia would be growing at a rapid rate, and eventually the company would be a major player for 31 network operators around the world. Nokia initially targeted low income people and first time mobile buyers, with the introduction of the 1100 series. Today the company has grown into the largest manufacturer and distributor of mobile phones.

With the introduction of OVI (internet services for the Nokia Brand) in 2007, Nokia has now become a major player in the smart phone industry, and with its newly formed alliance with Microsoft Corporation and Windows Mobile, the sky is the limit for this iconic brand. Situational Analysis The major mobile handset suppliers in Australia now include brands such as Nokia, Sony Ericsson, Samsung, LG, Motorola, Sonim, HTC, Palm, Blackberry, Garmin Asus, Alcatel and Apple iPhone. The cost has gone from over $5000 in 1981 (in car system) to Telstra’s cheapest model available today at $35.

Mobile coverage, customers and functionality has changed dramatically over 30 years and together with the Internet, social media and affordability; mobile communication has permanently changed the way in which people live and work. There are now an estimated 22 million mobile phone services in Australia as at 2011. (Budde. com, 2011). The mobile phone market in Australia is highly competitive in terms of both service and phone suppliers. In the area of service providers the dominant player is Telstra, although with a policy of competition, other organisations are developing strong competitive positions.

Pre-paid and post paid plans also form a basis for competition between providers. The chart below provides an insight into both service providers and types of service in 2008. Item 3 on the chart includes “other” suppliers. Source: Mobility Magazine (2011) 10 (3). The Finnish Nokia Brand remains the world’s largest mobile phone producer; although its market share has dropped to 23. 9 percent (from 28. 2 percent last year), and Samsung, LG and Apple are showing strong growth. (IBT March 24 2011). Macroenvironment Economic Environment Economic conditions affect the way in which consumers spend.

They also affect the way in which companies spend on such things as product development, range and inventory of stock. The present world economic crisis in Europe has had an influence on both consumers and manufacturers. Global sales of all mobile phones showed a growth rate of 5. 6 percent in the third quarter (2011) compared to 16. 5 percent in the previous quarter. Global sales of Smartphones were also down from 74 percent growth to 42 percent in the third quarter whilst inventories have grown by 20 million phones during the same period. MobiThinking, 2011). Australia has shown better economic performance than that of most other countries, but this too is dependent on factors outside of its’ control. Given that the major manufacturers of mobile technology are multi-nationals, they will feel the effect of any economic downturn, which may also then be seen here. Consumers have shown reluctance worldwide to purchase new phones during the European credit crisis, although this may be mitigated by consumers waiting for new flagship devices to be released. Gartner, 2011). Even if Australia is insulated from the full effects of a major economic downturn in the near future, it is likely to affect the purchasing intentions of the mobile phone market Political Legal Environment The telecommunications market is important to the domestic economy and as such is subject to political and legal constraints. Politics has led to opening the market to competition, and it is maintaining and strengthening competitive forces.

In terms of service providers, they have to operate within a legal framework that is subject to political influence and overseen by such bodies as the Australian Competition and Consumer Council (ACCC) in accordance with Fair Trade and Trade Practices Acts. There is also protection of intellectual property, as well as trademark/design and brand protection in Australia that companies have to consider when marketing their goods and services. Technology Technology has been an essential driver of the mobile phone market for both carriers and handset providers.

The original AMPS (Advanced Mobile Phone System) was launched in 1987 and provided an analogue or 1G service and by 1989 had 100,000 subscribers. In 1992, both Optus and Vodafone were licensed and the number of subscribers reached 500,000. In 1993 Telstra launched its new 2G network, and by 1996 there were over one million digital subscribers and 2. 5 million analogue users. Four years later the AMPS service ceased, however, by 2003 the first 3G network together with the Nokia e606 mobile phone allowed for both video calls and high-speed Internet access.

By 2005 half the Australian population had a mobile phone, and at present (2011) there are more subscribers than people in Australia. (ActewAGL, 2009). In each stage of development carriers and phone manufacturers worked together to increase the range and variety of applications that could be performed by mobile devices, culminating with the issue of the Apple 4 iPhone in 2011. Ongoing development includes Apple’s new battery solution (Hydrogen Cell) that could power the iPhone for ‘weeks’ (AEDT, 2011).

The different architecture or platforms used and being developed for the smartphone market will provide both marketing and technology-related opportunities. Operating Systems (OS) such as Palm and BlackBerry, Symbian and Windows Mobile, are all likely to increase competition and consumer choice in the market. Competitor Analysis: Both carriers and retailers/manufacturers operate in a dynamic and highly competitive market. There is a plethora of “deals” in the marketplace covering both service providers and retailers. Continual new product innovations have put pressure on companies to innovate or lose market share.

For example, the Apple iPhone radically changed the product landscape realising phenomenal growth since its release in 2007. (Australian IT, 2011) The introduction of competing phones and platforms that offer advantages peculiar to an individual system is likely to fuel a continuation of the current technological “war”, which, combined with aggressive marketing from all the major suppliers, makes for an evolving and unpredictable mobile phone market. Mobile phone marketing strategies are aimed at both the business-to-business (B2B) market and the business to consumer market (B2C).

Some of the strategies used include; multiple pricing (B2B) as in supplying all the phones for a specific company (eg. Origon Energy), bundling, where the phone and plan form the purchase and provide value for the bundle for both business and consumer markets, two for one deals, free talk time, (for a specified value above that which is paid for in the mobile phone plan), and many more. Customer/Consumer Analysis Customers can be classified in terms of business and non-business. The business sector is more rational, value driven and information hungry. Business customers will adopt a structured approach to analysing costs and, n the main, make choices based on full information. Consumers as individuals constitute a different market, with different needs and associated motivations. From the very beginning mobile phones were seen as status symbols, owning one increased one’s social standing and position. This still remains a key driver for innovators who will purchase new and improved phones as soon as they are available, and bask in their (perceived) increased social standing or “Street Cred”. Mobile phones have had a symbiotic relationship with social media such as Facebook and Twitter.

One has supplied the other with the means to expand and capture a huge consumer audience. As such there has been considerable research conducted into other motivations, needs, and influences that affect the interface of mobile phones and social media. (Lenhart, 2009). For instance, Telstra has released consumer research showing how Australians use their mobiles to connect. It found:                * 50 percent of Australians feel panic stricken within five minutes when they think they have lost their mobile phone; 25 percent panic after less than a minute. Nearly one third of Generation Y consumers check their mobile phones in the mornings before they use the bathroom, have breakfast, or go online. * Nearly half of Australians rank mobile phones as the innovation they value the most, more than the desktop computer to laptop and the oven to microwave. (SMH, 2011). Mobile phones are an integral part of a consumer’s life affecting the ways in which they conduct business and leisure activities. With the introduction of the Smart Phones, consumers now have the capacity to interact with one another in ways that have completely and radically changed the marketing landscape.

Apart from using applications for shopping online or as a means of supplementing high street purchases) they can now join communities and share opinions about goods and services that are really empowering them in the consumer decision-making process. Internal Environment Sales And Market Share The global mobile phone market is extremely competitive in terms of manufactures. In 2007 Nokia was number one handset manufacture, with a global market share of 38 percent, and estimated sales of €32 billion. Five years later, Nokia finds themselves losing their crown as number one handset anufacture to its long time completive rival, Samsung Electronics. Nokia’s market share has slumped to only 19. 8 percent in the handset market, which works out to be a 52. 1 percent decline from 2007. Nokia has just released its fiscal Q2 2012 financials. It’s reported €7. 5 billion in net sales, a slight increase from the €7. 4 billion last quarter. Net sales are down by five percent, and the operating loss is almost twice the value it was last quarter: €826 million compared to €487 million a year ago. Brand Awareness Nokia has built a reputation on being one of the world’s number one handset manufactures.

Nokia initially targeted low income earners and first time mobile phone owners, but since has grown into a leading and innovating smart phone supplier to the world. The brand’s mission statement is heavily focused around communication. “Everyone has a need to communicate and share. Nokia helps fulfill these needs and we help people feel close to what matters. We focus on consumers by providing very human technology” Nokia’s brand is built around friendship, trust and customer loyalty. Building friendship and trust is at the heart of the brand, and this is visual communicated to customers by two hands shaking.

Promotion And Marketing Currently Nokia is heavily promoting there Lumia family of Windows Phones on a massive global scale. These include 4D projections and live music events. Along with Nokia pushing heavily the Lumia range, Microsoft has jumped on board and pushing hard with carries around the world to promote the Windows based handset, this is done with the “Smoked by Windows Phone” campaign. This camping was based around simply a bet where people would win a $100 if their non-Windows phones is quicker than the Lumia handset running the Windows Phone software.

According to Nokia Australia’s head of marketing, Jolaine Boyd, “This new brand proposition and campaign signals a new Nokia – a company that is thinking and doing things differently. Our aim is to fundamentally shift consumer perceptions and educate them about Nokia’s new smartphone range. We want to put Nokia firmly in the consideration set and make the brand relevant again. ” This current camping focuses, on Nokia’s global brand positioning and promoting “Amazing Everyday” which is heavily focused around portraying the amazing thing we do as humans every day with a massive focus on social media and the youth of today.

There are three core elements within this camping and they are, out of home, TV and digital. Boyd added, Australia has the highest smartphone penetration in the world at 37 per cent. The rise of smartphones is dramatically increasing the use of the internet overall in Australia. With this in mind the “Amazing Everyday” campaign, the current advertisement of the new Lumia range capitalises on these aspects, with bright and bold colours with simple statements. Some of these advertisements are below. SWOT Analysis Strengths Nokia incorporated has a rich history and a wealth of experience which spans well over a 100 years.

The company has one of the largest networks of distribution and selling partners in the world. Currently Nokia has one of the largest R;D departments in the world, which has a strong financial backing with over 1. 4 billion USD which allows Nokia to keep producing new and revolutionary products for its customers. Nokia produces many different handsets for different people for their day to day use and pride themselves on building relationships and sustaining them. The build quality of Nokia handsets are at world class levels, which gives to a much higher resale value than its competitors.

Weakness Nokia is a well-established company with many strengths, but is main strength has also turned out to be its biggest weakness. The handset giant unfortunately did not move along with the technological move that sweep through right after the turn of the millennium. With the introduction of the iPhone, the handset giant was consistently producing the same type of phone but with a different designs and still asking customer to pay premium prices. The handsets that were being produced were overpriced and customers wanted more from their Nokia’s.

Customers became app crazy and with the introduction of social media on the go, Nokia was lagging behind. Bold moves by Nokia gave birth to the NGAGE, a portable gaming console. The handset was designed to make phone calls, send text and surf the web with the added advantage of being able to play your favorite “retro” on the go. The concept was great but unfortunately this radical all in one device was not accepted by the market, customers still prefer the iPhone. This then gave birth to the N97 a poorly created handset which was very clumsy and had outdated software. Opportunities

There are many opportunities at present for Nokia. One of these opportunities is for the company to enter new growing markets, such as the Indian market. “By entering a newly developing market it has an opportunity to increase its sales as well as the overall global market share. As the standard of living in India has increased so has the purchasing power of the people. By targeting the market at the right time Nokia can gain the most out of this situation”( Nokia SWOT Analysis). Nokia has been a leading the way for many years with its well-designed handsets, these designs have gave birth to other handsets such as the iPhone.

With the addition of Cal Zeiss to the portfolio, Nokia now has outstanding cameras on their handsets as well. Threats Nokia has many competitors in the market that it must attach to maintain its position as the market leader. The threats are emerging handset manufactures in the market. Companies like Motorola, Sony, LG mobile, Apple and HTC. The manufactures are providing equal or better products and presenting to be tough competition for Nokia in the global market. These threats can be providing cheap phones, new features, new style/types, and premium after sales service.

So the growing competition has created an uphill battle for Nokia. With global economic downfall Nokia has to produced premium quality handsets at competitive prices, if this issue is not tackled head on it could create greater problems for Nokia in the future. Objectives Mission Statement “Everyone has a need to communicate and share. Nokia helps fulfill these needs and we help people feel close to what matters. We focus on consumers by providing very human technology” * Commitment to deliver outstanding and innovated products to our customers.

We seek to become the number one electronics company throughout the world. * Focused to maintain outstanding relationship with all of customers and distribution partners globally. By maintaining our strong relationship our aim is to become once again the number one handset manufacture globally. Marketing Objectives * Increase sales by 10% within one year. Use innovative technologies, such as Nokia Kinetic a world first flexible LCD, the introduction of WP8 handsets, to increase our target audience’s awareness to illustrate our competitive advantages. Refine current products. Improve current products to reach new markets based on unmet consumer needs. Sales Objectives * To achieve sales on 10,000 units per quarter across every carrier and to have net sales exceed $100,000 per month. * To gain 15 per cent of the total Australian market share with WP7 handsets and to achieve globally 30 per cent. Total marketing budget for WP7 handsets in 20 per cent. Target Market Primary Market 15-22 year old males and females, or better known as generation Z.

Most members of this generation have spent their entire lives on the World Wide Web. Generation Z are a highly connected into technology – they are the trend setter. The generation has spent their whole lives around technology and new forms of communications, such as the World Wide Web, instant messaging, texting, iPods, mobile phones, Facebook, twitter and YouTube, giving them the new name of “digital natives”. These trend setters are no longer using the internet on their PC’s but rather it is on the go and carried in their pockets on their mobile phones.

This generation is trend setting however very lazy; they want something that is easy to use out of the box with no hassles. Market Positioning Nokia’s brand positioning should differentiate itself from the past. In the past Nokia handset was specially designed for low end users, while the N series was aimed at trend setters, it lacked substance and failed to capture the digital natives. With handsets that were out shadowed by the iPhone, Nokia quickly lost its majority market share. Nokia has to aggressively attack the smartphone market by specifically targeting the trend setters of today.

The trend setters of today are driven by technology and want handsets that are easy to use, they are heavily driven by social media, and their social status is of the highest priority. The key strategy is to maintain its leadership and lower prices on smartphones while providing high end products for the masses. Positioning Map Innovation Samsung Samsung Nokia Nokia Future Positioning Future Positioning Apple Apple Sony Sony Nokia Nokia Current Positioningnt Positioning Positioning Current Positioningnt Positioning Positioning High Price High Price Low Price Low Price LG Mobile LG Mobile

Competitiveness Marketing Mix Strategies Product According to O’Connor ,B (2000) A well-thought-out marketing plan can give you the ability to exploit your competitors’ weaknesses, adjust to any new competition, expand your service capabilities, strengthen customer relationships and minimize sales volume fluctuations. It will also help eliminate unproductive promotions and enable you to create and control the specific image you want to project. To have an impact on the market, Nokia needs a blockbuster – a single, stunning smartphone that puts the company back on the map alongside with Windows Phone.

Windows Phone 8 has a lot of interest from various carriers, by taking advantage of all this, the company can get its groove back. The handset must be simple to use, jam packed with technology while upholding two key fundamental features – social media and easy to use. Nokia introduced a whole line accessories free of PVC, keeping in touch with this green aspect already adopted by Nokia, the Lumia 910G will have a specially designed solar panel will built into the back of the handset, as part of the battery cover.

Ten minutes of sun exposure will get you three minutes of talk time and the phone’s casing will be made entirely from recycled plastic water bottles. Other key features are, quad core processing power, 12 mega pixel camera with Carl Zies lens, Nokia flexible AMOLED screen. 4. 7 inch 4. 7 inch Solar Panel Solar Panel Recycled Materials Recycled Materials Place/Distribution Having already established a channel of distribution partners globally, the handset will be available through all major vendors globally as well as to be purchased through online vendors such amazon and Nokia online.

The opportunity exists to expand through existing areas, but with heavy focus on the Nokia online store. This channel present great opportunity as there is no overheads. Price Price for this handset is directly set against competitors like the Apple IPhone 4s and Samsung Galaxy S3. The handsets’ being manufactures offshore in China and allows entry into the market at $350 per unit. The pricing strategy is very aggressive, keeping in line with the market audience the handset is directed at.

This handset will be the first smartphone with high end features for very low costs. Being of all recycled plastic design allows maximum build quality with minimum costs. Promotions The use of viral marketing is the quickest way to get the word out about the new handset, as the use of social networks will spread the message quicker. According to Berkowtiz, D (2010) blogs and social media can be useful for establishing direct communication between marketers and consumers, and they can contribute to establishing a larger share of voice in search engine results.

One such example of this is the ‘Best job in the world campaign’ that involved getting a job in the topical islands of the great barrier reef. The campaign had generated so much interested that the publicity around it was worth well over $150 million and in the process highlighted Queensland as an ideally holiday destination. By heavily promoting the Smoked by Windows Phone” campaign, over social media sites, the word of the Lumia 910G will spread. Evaluation According to Harris, A (2010), there is a lack of strategy for using these new social media tools.

It is often viewed as a technology issue, not a communications tool. Improving brand awareness and exposure involves creating an online presence, delivering key messages to a target audience and then building relationships with potential customers. Social media allows for these behaviors, as well as enhancing a company’s credibility. Social media is fairly new components to marketing, this type of marketing involve a company interested in increasing brand awareness and exposure to new and existing customers.

By gaining the trust and respect of potential customers through frequent, but informal postings public relations teams may then assess the results of the marketing campaign. Although posting cannot be quantitatively measured, it can eventually lead to sales. According to Connor, A (2010) public relations professionals must develop creative strategies for linking online community participation to direct revenue. The interested fans having these conversations may be more inclined to purchase from their online friend than someone else.

The will give an indication into measuring the sales volumes achieved through social media. From here, Nokia can determine if social medial marketing is worth the time that has been invested into. Implementation Conclusion This report sets out the marketing plan for the new Nokia Lumia 910G. The handset is made from recyclable plastic water bottles and sports a solar panel on the back for additional power for the handset. It is a leading and innovating handset with superior features at the fraction of the price of its competitors.

The handset is specifically aimed at the trend setters of today, the ‘digital natives’ The sales objectives is to achieve 10,000 units per quarter and to achieve a sales revenue of $100,000 per month. Back boning on the currently successful promotion ‘Smoked By A Windows Phone’ campaign and the use of social media the aim is to regain the majority of the globally market share and to become the number one handset manufacture in the world. Reference Berkowitz, David Social Marketing Advertising Age 81:8 (Feb 22,2010):54 Connor, Angela. Market With Social Media 21 Dec. 2009: Research Library, ProQuest.

Web. 21 Feb. 2010. Harris, Angela. Does Social WORK? Measuring Community Effectiveness. EContent 1 Jan. 2010: Research Library, ProQuest. Web. 22 Feb. 2010 O’Connor, Bob Motor 193. 3 (Mar 2000): p71-74 http://www. authorstream. com/Presentation/sanju152k-262736-nokia-final-education-ppt-powerpoint/ http://www. campaignbrief. com/2012/03/version10-starthtml0000000149-190. html http://www. informationweek. com/news/mobility/smart_phones/232901759 http://www. marketing91. com/swot-nokia/ http://www. moyeamedia. com/blog/? p=2361 http://techland. time. com/2012/07/20/lets-be-realistic-about-nokias-chances/