Background On Nokia
The purpose of this project is to develop a marketing strategy that seeks to promote Nokia expanding their product offerings to include tablets with an android operating system.
The company was started 1865 as a paper mill operation, then begun focusing mainly on the telecommunications industry in the 1990’s. Nokia’s current strategy is to focus on creating the industry’s leading global 5G end-to-end portfolio. As a well-known provider of consumer electronics, it is expected that Nokia will continue to provide the loyalty and quality of their brand, along with the right marketing strategies that will allow them to successfully compete with other popular brands such as Apple, which offers the iPads, and Samsung who offers a range of Samsung Galaxy tablets.
Our project will seek to use situation analysis such as CREST & SWOT, STP Strategy and the various marketing plans to exploring success prospects for Nokia to launch the tablet product in CARICOM.
There are various variables that affects Nokia’s industry. It is important for Nokia to conduct a radical analysis on its competitors and the threats affecting their industry before venturing into a new market. Nokia’s competition would primarily come from the threat of new entrants, threat from substitute products and rivalry from existing companies.
New entrants in the telecommunication industry provide modernization and new ways and means of grasping the attention of consumers. By innovating new products, increases the intake of new customers to the industry; however, it may also result in the company’s old customers to view its product as obsolete; which ultimately forces the consumers to gravitate towards a more modernized product.
Tablets have become essential to our everyday lives due to its core functions, surfing the web, and taking pictures and videos, as well features of a personal computer. However, due to technological advancements, tablets can be substituted for a digital camera which eliminates using the camera feature, as well as smartphones, which allows consumers to surf the web, carryout the core functions of the mobile phone as well utilizing the features of a personal computer. For example, on the iPhone XS Max, while utilizing the main functions of a typical cellphone; the smartphone allows consumers to access personal computer features such as Microsoft Office, and Mobile Scanners, in comparison to the Nokia N1 tablet.
Competitors such as Apple and Android (Google), are aggressively taking over the industry. Since the launch of both industries, Nokia’s market share has decreased drastically. (Shaughnessy, 2013) Both competitors created a platform that integrated technology by also developing app stores. Thus, the company’s competition will be against well-established and large companies such Apple, Samsung, Google and HTC.
The adaptation to the required legal rules and regulations, would ensure that the company operates lawfully and minimize risks, resulting from not following specified guidelines. Therefore, the following regulatory acts would need to be adhered to base on the industry:
- • Completion Act
- • Consumer packaging and labelling Act
- • Trades mark Act
- • Personal Information Protection and Electronics Document Act
New entrants will be required to follow regulations set for products sold in the North American Markets. The impact of global laws and regulations play a vital role in conducting business dealings. Individuals with the capacity of leadership roles such as managers, are required to have wide information on legal practices that may affect the character of their business; while also incorporating the practices of international trade to prevent fines and repercussions.
To ensure compliance with International Trade, the company would adhere to Products sold in US, Products Sold in Europe, End of Collection and Treatment, Simplified EC Declaration of Conformity, Products sold in China, and Products sold in South Africa, where sales are being targeted, which are the same regulatory laws used for their Nokia WIFI Beacon; this may be adapted in the production of their tablets.
The company’s economic environment is affected by factors such as internal, external, and operational. The internal and operational factors would include the total cost to produce and market their products globally. It also includes the company’s technological capability, equipment availability and maintenance, its financial management and staff morale. The external factors such as political influences, competition, inflation, recession and the availability of raw materials.
The Caribbean possesses great potential for economic growth and opportunities, as it is one of the world’s largest tourist attraction areas. Economies in the Caribbean, notably the tourism-dependent economies grew within the last three years. “The GDP growth rates in 2017 averaged 1.7 percent in service-oriented economies.”, (The World Bank, 2019). It is also highlighted that the influx of remittances is also increasing as well the per-capita income for some countries.
This creates room for an increase in foreign direct investment within the Caribbean. By doing so, it creates employment opportunities in the form of jobs, which ultimately decreases the economy’s unemployment rate; and it increases human resources, as it provides educational opportunities where individuals are able to advance their personal skill base.
The company thrives based on the extent of the socio-cultural perception of its target audience, to encourage the increase of purchases for their product, from different cultures. The social factors that affect the consumer’s purchasing decision are their age, psychographic factors, perceptions and beliefs, and educational level.
However, based on the trends in the Caribbean presently, social media is developing speedily. (Kimron, 2018). Social media is a great forum for advertising, publicity, sales promotions and direct responses. Customer service is paramount in the development of a brand or company. This allows the customers to provide feedback on the product as well as the service offered by the company. Social Media sites such as Instagram, twitter or Facebook may be used for customer service; where the consumers are able to communicate in real time as well as directly with the company.
The company may also incorporate paid media. This is in the form of paid ads on Instagram or Facebook; which mat also facilitate mass communication. The company will be able to increase its sales by offering sales promotions, brand awareness, and may also encourage brand loyalty.
The technological atmosphere relates to the supply and adoption of existing and rising technologies that enhance productivity. Technological advancement and its success play a vital role in the success in the introduction and marketing of the tablet. The development of the tablet is recommended to be at the highest level of innovation; by enhancing communication, new ways of information exchange, and new ways of generating added value to the consumer’s life.
The Caribbean is considered to be technologically advanced for its region, relatively to other developing countries; this is shown through airports, agricultural industries, the extraction of oil, tourist attraction resorts and leisure activities, online direct marketing through social media and international courier services that encourage online shopping.
Thus, with the distribution of the new tablet being offered; improves technological advancement in the region. With technological advancements being improved within the Caribbean, this will attract more foreign investments, create job opportunities and also result in an increase in tourism for the region.
SWOT Analysis for Nokia
Nokia brand is one of the longest-existing consumer electronic brand and has managed to maintain its dominance in the market. It was among the first innovators of cellphones that offers product durability and extensive battery life. Nokia products are designed to cater to the needs of the various segments of the market. Based on Nokia’s reputation in the market, it is expected that Nokia will do well with their penetration of the CARICOM community.
Nokia has been using price skimming as their pricing strategy for their current market segments. This has been seen to be a weakness of Nokia which they are expected to adjust in their new marketing strategy. Another weakness of Nokia, is their lack of innovation as relates to developing products that have the capacity to consistently compete with their major competitors such as Apple and Samsung. There are features such as the aesthetics and weight of their products, are key areas that Nokia will have to focus on improving, in order to appeal to an ever-changing customer base.
Nokia has a very good brand mark and brand loyalty among their market niche. They have the opportunity to improve their product line through the introduction of new products such as a tablet, that will have the ability to aggressively compete with similar products offered by the major competitors; Samsung and Apple. Nokia will focus on using the Android operating software, but will seek to differentiate itself by taking advantage of an under targeted market segment in the Caribbean known as CARICOM. Nokia can dominate the market through partnership with telecommunications industries such as Digicel and Flow with the expectation to capture and grow their market share over time.
The CARICOM market is an area that has a great potential due to its lack of segmentation. However, there are factors that can be seen as a threat by Nokia, such as social factors due to culture differences as well as possible regulatory factors which may result in persons not adapting to the new product offering. Nokia is positioned to face threats from their major competitors Samsung and Apple who offer the same of a similar products.
CARICOM and the Caribbean by a larger extent remain an untapped market and creates an opportunistic niche to manufacture and market the Nokia tablet. CARICOM consist of third-world countries that are exploring the opportunity of working towards competing with the first-world countries such as the Unites States of America and Canada. Caribbean persons have become very passionate about the various techniques being offered by other first-world countries and have in recent time adapted well to the competitor’s Apple and Samsung. With the introduction of the Nokia Technology, to the android and tablet market, presents a great opportunity for Nokia to target a new market segment.
The Caribbean Region that is focusing on experimenting and implementing new technology. With the large market size being offered, it presents a great opportunity to maximize on sales as well as profits. The warmer climate can also be an attraction to Nokia investors, which provides the individuals with an option to work, as well vacation in a tropical environment.
The objective for Nokia entering the CARICOM Market, is to penetrate a market that has not been adequately targeted. It is expected that Nokia will use pricing and product innovation to attract and dominate this segment of the market in the CARICOM region.
The target age group will be s between 15 to 38, which consist of Generation “y” also known as the millennials and the Teenage market. All genders will be targeted, as Nokia has always been a brand that caters to both. The tablets will be strategically priced to cater to all income levels giving everyone regardless their income, an opportunity to own one of the tablets, which will be priced based on the specifications and features. The Caribbean background has been expending over the years and such it provides an avenue to cater to persons of varying ethnic backgrounds; richly unique in their own culture. The family life cycle of CARICOM presents a favorable opportunity as the core factors such as gender, age and income will be seriously considered in the design and pricing of the of the Nokia tablets.
The culture of the Caribbean people tends to be very social, therefore social media is quickly becoming a norm.
Nokia will focus on using concentrated targeting strategies, to enter the Caribbean, with a focus on the generation “Y” which includes between the ages 14 to 38. This will allow Nokia to better meet the needs of their market segment and be able to position themselves strategically as one the strongest and most competitive brand within CARICOM countries.
Nokia is being positioned as a strong traditional brand that has served consumers for over 150 years. Nokia is known for its durability and user-friendly capabilities. It will be positioned as an affordable high-end brand designed to compete with other dominant competitors in the industry.
Nokia will seek to re-innovate the technological market with the introduction of their new tablet, which offers the android operating system, up to 1000GB of memory and optional keyboard attachment. Each tablet will come with a one-year warranty for manufacturing defects only, and will be packaged using the Nokia brand mark. The box of each tablet will consist of the tablet, charger, headphone, Keyboard – optional (at additional cost) and manual (written in three (3) different languages).
Nokia tablet will be adequately priced, to make it attractive all income levels. Nokia will seek to use the price penetration pricing strategy as the technique for entering the marketing. The tablets will be reasonable priced at US$700 and an optional keyboard for an additional cost of US$100. At the growth level of the product life cycle, Nokia will seek to review and increase the price of the tablets based on the demand for the product after one (1) year.
In addition to price penetration pricing strategy that will be used to enter the market, Nokia will seek to offer various promotional packages upon their introduction to the market. Introduction to the market will be promoted through advertising, social media and info-gaming. Other promotion strategies such as offering introductory discounts prices and free accessories will so be promoted.
Digicel and Flow are two (2) of the major telecommunication providers in the Caribbean; and as such Nokia will be partnering with them to sell their tablet products with optional price bundling strategy of providing internet and tablet price combo. Tablets will also be available through Amazon, Walmart, Best Buy and other sales outlets.
Nokia will also start by opening a store in the major cities in each of the CARICOM countries that will sell their tablets and other Nokia devices and accessories.
Global Marketing Plan
Nokia will seek to adjust their marketing plan in a global manner to ensure that it meets the global requirements that will allow it to place itself strategically and adapt to the social and economic trends of the Caribbean. The standardized marketing that we have developed, where the same product, advertising, distribution channels, will be used be in all the Nokia Companies international market.
The objective of using the standardized marketing mix is to have uniformity of the regions that Nokia operates, as well as to enhance their global image and increase market share through penetration. Nokia chose not to use the adjusted marketing mix as this would be a more costly venture. The standardized marketing mix would be more cost-effective.
We will be using a joint venture with two (2) telecommunications company (Digicel and Flow) to enter the CARICOM market.
Strategic Competitive Advantage
Nokia has always been known for the durability of their products; they will be using this attribute to introduce their tablet to the CARICOM market. Nokia will also use their price penetration strategy to introduce the tablet at an initial lower cost to give them a competitive advantage over their competitors. This is expected to appeal to the emotions of target market for Nokia brand in order to position their tablet in the market which will allow them to get competitive advantage over other brands. The strategic channel alliance with Digicel, which is a global brand that is already established will give Nokia the competitive global advantage.
Based on the marketing research and analysis conducted it is expected that Nokia will be success in CARICOM. The requisite CREST and SWOT analysis has been conducted along with a thorough marketing Plan. CARICOM is an untargeted segment that still requires market penetration by Nokia and it major competitors. Nokia will be successful once it adopts to the CARICOM culture and remains innovative and strategic with is tablet product offering.
- Kimron. (2018, September 30). Kimron Corion. Retrieved from http://www.kimroncorion.com/5-social-media-trends-caribbean-entrepreneurs-need-to-adopt-now-to-grow-their-business-online/
- Nokia.com. (2019). Retrieved from Regulatory and Environmental Information: https://www.nokia.com/wifi/legal/regulatory/
- Shaughnessy, H. (2013, March 8). Forbes. Retrieved from Forbes: https://www.forbes.com/sites/haydnshaughnessy/2013/03/08/apples-rise-and-nokias-fall-highlight-platform-strategy-essentials/#150c50b96e9a
- The World Bank. (2019, April 4). Retrieved from The World Bank In the Caribbean: https://www.worldbank.org/en/country/caribbean/overview