Free Sample: Contemporary Marketing NOKIA paper example for writing essay

Contemporary Marketing NOKIA - Essay Example

In 2006, Monika acquired Gates and NAIVETÉ in 2008 to build its digital mapping and navigational software. In 2007, Monika combined its telecoms infrastructure operations with Siemens to form Monika Siemens Networks. In 2011, Monika Joined forces with Microsoft and adopted the Windows Phone operating system for its smart phones. Monika offers leading location services through the HERE maps, which was launched in 2012. In 2013, Monika reinvented itself by first buying Siemens’ stake in NUNS and second was the announcement of the sale of Ionians Devices & Services business to Microsoft.

The Microsoft transaction was completed on April 25, 2014. Following the transaction, Monika announced its new vision and strategy. Monika Networks, HERE, and Monika Technologies (Monika, 2014). 2. Ionians Marketing Strategy: Ever since Stephen Elope became Ionians CEO in September 2010, Ionians stock price has nosedived. Ionians stock was going up steadily at that time. 3. 1. 1 . Ionians Value Proposition (or lack of it): Monika needs to know what their value proposition is. In short, it describes why Ionians products and services are the best choice for it’s target customers.

If they don’t have a strong value proposition, people have no reason to buy. Phones are often considered the most prestigious. Samsung Android phones are seen as the most versatile and are said to be more user friendly than Phones. But Ionians phones aren’t connected to anything special. Monika have now tried to create an idea of superior phone cameras. But that’s too little too late. It seems there’s hardly anything that would make them better than their competitors. Monika simply hasn’t created a compelling value proposition for it’s smartness (Peter Sandmen, 2014). 3. 1. 2.

Ionians Marketing Strategy: Ionians marketing strategy is good, or at least they’re doing all the right things. But Ionians marketing “message” is all over the place. The lack of consistency guarantees that people have no idea what makes Monika products better than others. Their marketing won’t work until they understand what the message should be that the marketing delivers. For example, TV advertising can be a great marketing method, but when your marketing is as unfocused as Ionians, TV ads are only good at draining your marketing budget; Monika needs to be consistent with its “message” for it to work.

When Monika is clear about what it’s value proposition is, Monika can focus all it’s marketing efforts to it. Everything Monika does then can revolve around Just the key ideas that make the biggest difference to its target customers and success (Peter Sandmen, 2014). 3. 2. Marketing Mix or APS of Marketing: 3. 2. 1. Product: Monika has a wide range of mobile phone series, Monika Alumni, Ash & basic devices, which is currently sold by Microsoft (Microsoft, 2014). Monika is also well known for it’s HERE maps (Monika, 2014). After the Monika-Microsoft deal, Monika has started to concentrate more on Monika Networks and Monika Technology (Monika, 2014).

Monika has launched its new Tablet, names Monika IN (Monika, 2104). 3. 2. 2. Place: Ionians production facilities are located in China, Mexico, Brazil and Vietnam Microsoft, 2014). Monika mostly used an indirect distribution method. It had a huge distribution network around the world, ensuring its products were available everywhere. The distribution chain made the most contribution for Monika, as it controlled almost half of the market in 2007. Monika soon restructured its strategy and reduced its distributors (Mobile Today, 2011).

Monika also had its own stores in some countries called ” Monika Priority’ outlets for direct sales. 3. 2. 3. Price: The prices of the Monika phones vary has they have a wide range of products, as the target the lower, middle and high end segments of the customer base (Microsoft, 014). Monika followed a strategy of simple market segmentation by introducing small subsets in the large target customer market. 3. 2. 4. Promotion: Firstly, Monika tries to create awareness among people (U. S. Pro Cycling News, 2013). By increasing public relations by holding various promotional events (Telecommuter, 2013).

Monika also spends a huge amount of money on advertisements on Journals, Newspapers, TV or the Internet to attract its ideal target customer (Spin, 2013). Monika also used strategies like combining its phones with various mobile service providers (U. S. Pro cycling News, 2013). 4. Ionians Marketing Audit: . 1 . Porter’s Five Forces: 4. 1 . 1. Barriers to Entry: High The smartened market is very risky and also requires a very high capital investment and high standards of research, as manufactures must evaluate flexible operating patterns to compete with other companies, to remain in the market.

Monika commands a high reputation for its brand image and value. Every new manufacturer trying to enter the market by using different orientations methods is described as threat. With every country having complex distribution channels, it is highly impossible for a new entrant to penetrate through the market. 4. 1. 2. Power of Buyers: High With the differentiation of products being very low and the competition getting complex. In order to cater to the increasing buyer and consumer volume, Monika offers more features on their devices at a lower price.

According to the marketing point of view every finished products has similar features compared to others, so it’s up to companies to market their product better, to the customer. Due to the high price sensitivity, customers do not switch easily to other products and brand loyalty should keep their customer satisfaction positive and guarantee that they will choose the same brand in the future. Monika is facing difficulties, as their devices do not cover most customer needs ([email protected], 2012). 4. 1. 3.

Power of Suppliers: Moderate The competition amongst the suppliers is very high, as they have less or no power to bargain with a company as big as Monika. For a company like Monika, it is not possible for suppliers to have a negative impact on its Brand loyalty. Monika fulfils its characteristics of being active while negotiating with its suppliers. The partnership with Microsoft provides new opportunities for Ionians phones. The Microsoft – Monika partnership might help Monika to compete and evaluate its software on other devices, increasing the potential for failure if something goes wrong (BBC News, 2012). . 1. 4. Threat of Substitutes: LOW Mobile phones are now an important part of our lives and it’s near to impossible to be replaced it with other products. And also, Smart phones have many functions depending on the need, so the cost of a substitute would require the purchasing of a specific product to cover the customers’ need (like radio, TV, Desktop, Magazine etc). 4. 1. 5. Rivalry amongst Competitors: HIGH The rivalry among competitors is very high as the features of mobile phones are almost the same. Many a times, issues related to copyright or potency has been reported.

This is the primary reason for rivalry among competitors offering similar products but following different methods to market its products. For instance, even though Monika offers similar or advanced features than Apple, they still face difficulties to evaluate their marketing strategies to enter people’s life (BBC News, 2012). 4. 2. PESTLE: 4. 2. 1. Political Factors: A factor that can be explained as most crucial one to do business in any country is the first to cover up. A government runs a country and to do business there, you must imply with the rules of the particular government.

Monika enjoys good relations with its home government as well as foreign governments also. The company strictly follows the rules for minimum wage, working hours and working environment (Monika, 2011). 4. 2. 2. Economic Factors: Monika is a company that is very vital to the economy of its home country Finland. When the market power of Monika fell down steeply, there was a recession in the country. As the company operates in many foreign countries it should be always aware of the foreign currency exchange rates. It do affects the shares of company ere much (Monika, 2011). 4. . 3. Social Factors: Now a days Smartness are considered to be a social status. Owning an innovation makes people proud and enjoys technology. No one uses a standard phone nowadays. Keeping this factor in mind Microsoft should come up with desirable products in the market (Monika, 2011). 4. 2. 4. Technological Factors: An era of operating software for mobile phones is going on. To compete in the market, Company needs to focus on technology and innovations. It should come in the market with a never thought before thing to regain its valuable image (Monika, 2011). 4. . 5.

Environmental Factors: As the technology has progressed, the world understands the need to protect the environment. One cannot come up with such a product that is hazardous to our health and environment. In a product like mobile phones, Recycling of mobile batteries is a big concern. Even the company cares much about this issue and has claimed its next products to be completely recyclable (Monika, 2011). 4. 2. 6. Legal Factors: In a market field like mobile phones, Companies need to keep an eagle on legal issues. Patents, Copyrights, trademarks and design are prone to be stolen or copied.