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Review Of STP Marketing Mix - Essay Example

Without a proper combination of inspection and perspiration, it’s not easy to achieve anything. There is always a sense of gratitude, which we express to others for the help and the dyed services they render during the different phases of our lives. We too would like to do it as we really wish to express our gratitude toward all those who have been helpful to us directly or indirectly during the development of this project.

We would like to thank Dry. Reedit Augural who was always there to help and guide us when we needed help. Their perceptive criticism kept us working to make this project more full proof. We are thankful to her for her encouraging and valuable support. Working under her was an extremely knowledgeable and enriching experience for us. We are very thankful to her for all the value addition and enhancement done to us.

No words can adequately express our overriding debt of gratitude to our parents whose support helps us in all the way. Above all we shall thank our friends who constantly encouraged and blessed us so as to enable us to do this work successfully. Parities Kumar Sings Random Bannered Rashness Kumar Sahara Enshrined Karma PAGE (IFS) 2013-2015 Section- D Contents Introduction to MONIKA 4 History of MONIKA 5 Ionians Mission and Vision 6 Awards and Acquisitions MONIKA In Indian Market In INDIA 9

SEGMENTATION TARGETING POSITIONING AND MARKETING MIX OF MONIKA Segmentation 10 Criteria For Segmentation 10 Levels of market segmentation 10 Segment Marketing 10 Niche Marketing 11 Demographic Segmentation 1 1 Cryptographic Segmentation 1 1 Behavioral Segmentation 12 Market Targeting 12 Evaluating Market Segments 12 Monika Target Market Selection 13 Selective Specialization 13 Ionians Pricing Strategy 13 Monika Marketing Strategies 13 Monika Microsoft Partnership 14 Differentiation and Positioning 15 Positioning Map 16 Positioning statement 16 Marketing mix 16 Conclusion 18 Suggestion 19 References 19

Company Profile Introduction to MONIKA 10 As of 2012, Monika employs 101,982 people across 120 countries, conducts sales in more than 150 countries, and reports annual revenues of around в?30 billion. By 2012, it was the world’s second-largest mobile phone maker in terms of unit sales (after Samsung), with a global market share of 18. 0% in the fourth quarter of that year. Now, Monika only has a 3% market share in smartened. They lost 40% of their revenue in mobile phones in SQ 2013.

Monika is a public limited-liability company listed on the Helsinki Stock Exchange and New York Stock Exchange. It is the world’s 27th-largest company measured by 2013 revenues according to the Fortune Global 500. Monika was the world’s largest vendor of mobile phones from 1998 to 2012. However, over the past five years its market share declined as a result of the growing use of touchstones smartness from other vendors-?principally the phone, by Apple, and devices running on Android, an operating system created by Google.

The corporation’s share price fell from a high of IIS$40 in late 2007 to under IIS$2 in mid-2012. In a bid to recover, Monika announced a strategic partnership with Microsoft n February 2011, leading to the replacement of Simian with Microsoft’s Windows Phone operating system in all Monika smartness. Following the replacement of the Simian system, Ionians smartened sales figures, which had previously increased, collapsed dramatically. [13] From the beginning of 2011 until 2013, Monika fell from its position as the world’s largest smartened vendor to assume the status of tenth largest.

On 2 September 2013, Microsoft announced its intent to purchase Ionians mobile phone business unit as part of an overall deal totaling в?5. 44 billion (US$7. 17 billion). Stephen Elope, Ionians former CEO, and several other executives will Join Microsoft as part of the deal History of MONIKA Over the past 150 years, Monika has evolved from a riverside paper mill in south- western Finland to a global telecommunications leader connecting over 1. 3 billion people. During that time, we’ve made rubber boots and car tires. They generated electricity and even manufactured TV’s.

By the asses, Finnish Cable Works – already working closely with Monika ABA and Finnish Rubber Works – starts branching out into electronics. In 1962, it makes its first electronic device in-house: a pulse analyzer for SE in nuclear power plants. In 1963, it starts developing radio telephones for the army and emergency services – Ionians first foray into telecommunications. In time, the company’s Micro Mike becomes the best known computer brand in Finland. And by 1987, Monika is the third largest TV manufacturer in Europe.

Monika sets the ball rolling in 1979, creating radio telephone company Mobility as a Joint venture with leading Finnish TV maker Sailors. 1981 then sees the launch of the Nordic Mobile Telephone (NET) service, the world’s first international cellular network and the first to allow international roaming. The NET standard catches on fast and the mobile phone industry begins to expand rapidly. In 1982, Monika introduces the first car phone – the Mobile Senator – to the network. That same year, the Monika ADDAX, the company’s first digital telephone switch, goes into operation.

On July 1, 1991, Finnish Prime Minister Hair Holier makes the world’s first GSM call, using Monika equipment. And in 1992, Monika launches its first digital handheld GSM phone, the Monika 1011. By 1998, Monika is the world leader in mobile phones. The strategic decision to focus on telecommunications, plus early investment in ISM, has paid off. Between 1996 and 001, Ionians turnover increases almost fivefold from EURO 6. 5 billion to EURO 31 billion. In 1999, Monika launches the Monika 7110, a phone capable of rudimentary web-based functions, including email.

Then in November 2001 Monika launches its first phone with a built-in camera, the Monika 7650, and in September 2002 its first video capture phone, the Monika 3650. Monika launches its first Monika with Windows Phones, the Monika Alumina 800 and the Monika Alumina 710, in October 2011. Fast-forward to 2013 and Monika has a full portfolio of great Windows Phone 8 smartness, from the Aluminum ,Alumina 920 Alumina 625 and flagship Alumina 925. Ionians Mission and Vision Ionians mission is simple: Connecting People.

Their goal is to build great mobile products that enable billions of people worldwide to enjoy more of what life has to offer. Their challenge is to achieve this in an increasingly dynamic and competitive environment. Ideas. Energy. Excitement. Opportunities. In today’s mobile world, it feels like anything is possible – and that’s what inspires Monika to get out of bed every day. Ionians mission in the smartened market is to regain its leadership position. Attachments vision on how it will achieve its mission seems build around the Meany’s strategic alliance with Microsoft.

Monika seems to understand that they’ve lost their brand identity and bets on the partnership with Microsoft to build newcomers, which will compete with and surpass their rivals. Ionians main objectives to regain its lost market share and position itself as market leader. From their vision can see that, they recognize the need of differentiation and innovation in order to achieve these objectives. However from the mission and vision statement it does metronome clear who are Ionians customers. Awards and Acquisition Awards Monika scores top marks on Corporate Equality Index 2013

Monika named as one of world’s most sustainable technology companies in 2011 Superabundant declares Monika the leading brand in China in 2013 2011 Forbes Top 10 World’s Most Sustainable Companies (#4) Top spot in Greenback’s Guide to Greener Electronics 2010 (eight consecutive #1 positions since September 2008) Universe’s Top 50 World’s Most Attractive Employers for Students 2011 Noncom’s Excellence in Gender Inclusively in India 2010 2010 Best Brand Award in Bangladesh (#1 for third consecutive year) 2010 Bloomberg Business Week Top 25 Most Innovative Companies Top 50 Manacle’s Socially

Responsible Companies in Canada 2010 Economic Times Most Trusted Brand in India I-J Nordic Business award for Research and Development 2010 Modern Consumer magazine’s 2010 Brazier’s “Companies that Most Respect the Consumer” (#1) Acquisitions On 22 September 2003, Monika acquired Saga. Com. On 19 June 2006, Monika and Siemens GAG announced the companies would merge their mobile and fixed-line phone network equipment businesses to create one of the world’s largest network firms. On 8 August 2006, Monika and Louder Corp.. Announced that they had signed an agreement for Monika to acquire online music stubborn Louder Corporation for approximately IIS$60 million. In July 2007, Monika acquired all assets of Twangs, the comprehensive media sharing solution for organizing and sharing photos, videos. In September 2007, Monika announced its intention to acquire Unpacked, a supplier of mobile advertising technology and services. In September 2008, Monika acquired OZ Communications. On 1 1 September 2009, Monika announced the acquisition of “certain assets of Plum Ventures.

On 28 March 2010, Monika announced the acquisition of Innovator, the mobile web browser firm from Chicago. MONIKA In India Monika entered the Indian market in 1994. The first ever GSM call in India was made on a Onionskin mobile phone on its own network in 1995. The tariffs levied on importing mobile phones were as high as 27%, usage charges were at RSI. 16 per minute and, at these high rates, consumers did not take to mobile phones. Monika also had to face tough competition from other powerful global players like Motorola, Sony, Siemens and Ericson.

Market In INDIA Initially tariff rates were extremely high in India. Later on, even though the rates were slashed considerably, mobiles were still considered to be a luxury. The biggest roughhouse for mobile phones in India was when incoming calls became free after the launch of Retailer (GSM segment) and the CDMA segment (RIM). When Monika entered India, it concentrated on the high end segment because of the tariff constraints in India. Only the affluent could afford mobile phones.

Increase in purchasing power due to increase in income and standard of living thanks to outsourcing, globalization and the number of educated and skilled people in India presented a good opportunity for Monika and others to expand. Gradually, mobile phones started becoming necessities. The mid and low-income segments also came targets for mobile phone companies. In fact, many in India have made a direct transition that is people who never owned a landlines, went straight to mobile phones.

Therefore, we saw slow growth in the initial few years and a phenomenal growth in the past few years. Monika chose to aim the youth market focusing on students in the range 13-21 as their market research showed that youths were receiving large amounts of pocket money and most have no real commitments to spend it on. A good portion of the youth segment also started earning well thanks to the BOP and call centre explosion in India resulting in disposable income and need or a higher standard of living. Now, Monika is trying to tap the potential of the lower end and rural markets as well.

SEGMENTATION TARGETING POSITIONING AND MARKETING MIX OF MONIKA Segmentation Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs, and then designing and implementing strategies to target their needs and desires using media channels and other touch-points that best allow to reach them. Criteria For Segmentation An ideal market segment meets all of the following criteria: ; It is possible to assure. ; It must be large enough to earn profit. ; It is possible to reach potential customers via the organization’s promotion and distribution channel. It responds consistently to a given market stimulus. It can be reached by market intervention in a cost-effective manner. ; It is useful in deciding on the marketing mix. Levels of market segmentation Monika engages in the following levels of market segment: Segment Marketing Monika offers designs, features and functionality that cater to the demands of the market segment. E. G. Monika Engage (gamers) Niche Marketing Monika also has products for customer groups seeking a distinctive mix of benefits and are ready to pay a premium price for it. E. G. Monika Alumina 925, Alumina 920.

Demographic Segmentation High Income Group Caters to the upper segment of the society with high purchasing power . E. G. Monika Sashays, Aluminum, Aluminum, Aluminum, Aluminum, etc. Medium Income Group Caters to the segments which give more importance to the value for money. Example of phone for this segment are Monika Ash 206, Ash 205, etc. Low Income Group Caters to this segment which have very low income and use mobile phones only for calling purpose. Example of offering for this segment are Monika 106, Monika 11 1, Monika 112, Monika 103, Monika 113, Monika 100, Monika 101 etc.

Cryptographic Segmentation Lifestyle Achievers- Looking for design and style, followers of trends and fashion and have active lifestyle- Monika Illuminate. Strives- Combination of ease of use and elegant looks. Want seamlessly connected and in best possible way Monika 6110 Navigator. Survivors- Smart business people wanting smartest tools for balancing work and life. Monika Monika 111, Monika 112, Monika 103, Monika 113, Monika 100, Monika 101 etc. Explore Customer- Want cutting edge technology for their stylish life-styles – Monika Alumina 520 with 8 KGB chip with multimedia devices, that snap, record, browse and share contents all via internet.

There exists another segment of consumers who rank price and functionality of the phone above the aesthetics and enhanced features. For these segments we have products like Engage (gamers), Express music (music lovers), etc and Ash 305, Ash 210 etc. Behavioral Segmentation Occasions- Monika launches new phones on special occasion like Dial, Christmas and many more regional festivals and special occasion. Benefits- Monika launches various phones for benefit seekers who look for quality and teeter service but within reasonable price. Like phone with good camera, memory and display.

So Monika offers various Ash series phones for this category. Market Targeting After segmentation the firm evaluates various segments and decide how many and which segment to serve. Evaluating Market Segments In evaluating different market segments firm must look at three factors: 1) Segment size and growth 2) Segment structural attractiveness 3) Company’s objective and resources Monika Target Market Selection Selective Specialization Monika has selected a number of segmented has come out with products for chaff hem thereby ensuring its presence in the complete market.

MI MM MM P = Product M = Market Ionians Pricing Strategy Penetration Pricing 1. Used to gain instant market share in a new market. 2. Well know companies like Monika do it with new products that carry new technologies take more market sharecrop competitors. Competitor – Eavesdropping 1. Used when there is a lot of competition in the market. 2. When a company is looking to take another compartment share by offering similar products at a lower price.

Monika Marketing Strategies As a big company Monika is able afford more promoting understating that smaller, less successful companies. Mass marketing by sponsoring events that will be viewed by large amounts of people in their chosen market segment. Effective use of print media : Advertisements for businessperson found in Economic Times. High end vindictiveness’s found in magazines such as Lifestyle. Effective use of television : Advertisements that Indians confidential with. Using Shark Khan as Brand Ambassador.

Differentiated Marketing Monika uses differentiated marketing targeting strategy because they target several market segments and design separate products for each. Monika tries to manufacture products for every “PURSE, PURPOSE and PERSONAL”. Monika Microsoft Partnership The Monika-Microsoft partnership brings together two global businesses with highly complementary sets of assets and competencies. But what will it actually mean for Monika smartened products? First and foremost, Monika is adopting Windows Phone as its primary smartened platform.

Working with Microsoft, we’ll help to drive and define the future of the platform by leveraging our expertise in hardware optimization, software customization, and language support. Monika and Microsoft are also combining services assets to drive innovation. Monika Maps, for example, will soon e at the heart of key Microsoft assets such as Being and Decanter, and Ionians application and content store will be integrated into Microsoft Marketplace. Similarly, Microsoft will provide developer tools, making it easier for application developers to leverage Ionians global scale.

Differentiation and Positioning Beyond deciding which segments of the market it will target, the company must decide on a value proposition- on how it will create differentiated value for targeted segments and what positions it wants to occupy in those segments. A product’s position is the way the product is defined by consumers on important attributes – the lace the product occupies in consumers’ minds relative to competing products. “Products are created in the factory, brands are created in the mind,” says a positing expert.

Monika is clearly using Differentiation strategy, which is a combination of differentiation competitive advantage and broad target scope. Differentiation in timekeeping mix for the Alumina 920 occurs in the Product and Price components of timekeeping mix. Alumina 820 is also differentiated, but only in the product component of the marketing mix. However the price of the 820 is lower and mid- ranged for thematic, it is not differentiated. The smartness are differentiated from its rivals in the Product component of timekeeping mix with their physical and non-physical characteristics.

The physicalcharacteristics of the 920 and 820 are the design of the product as well as the multiprocessors that are available to the customers. The colors offer customization for devices and differentiate the products from rivals such as Samsung and Apple. The two companies often offer their smartness in only two colors. The devices are differentiated in a non-physical way through the company’s partnership with Microsoft. Monika is first to manufacture a marathoner running Windows software, and at present it is offering more Windows phones than any of tsarists.

The Illuminate is also differentiated by its innovative technologies such as discretionary camera. Monika 820 and 920 both offer wireless charging, which is anew and innovative offering for the Indian market. Positioning Map In planning their differentiation and positioning strategies, marketers often prepare perceptual positioning maps, which show consumer perceptions of their brands versus competing products on important buying dimensions. Value for Price Business Performance Family Reliable Positioning statement

A statement that summarizes company or brand positioning – it takes this form: To (target segment and need) our (brand) is (concept) that (point-of-difference). Ionians positioning statement “CONNECTING PEOPLE” Marketing mix In order to understand which strategy Monika has used to achieve its objectives forewarning lost ground in the smartened market, we will look at the marketing mix of the company. As marketing strategy shapes the marketing mix for the products, timekeeping mix will point to the strategic choice of the company.

The marketing mix sis synonym for ups, which is constructed of the four most important monuments forever product’s strategy – Product, Price, Promotion and Place. These compensated the opportunities for the company to differentiate. Product Ionians products vary a lot because the company has a number of series of Smartened such as Monika Alumina, Monika Ash, as well as feature phone series. Product design also varies, the company has touch screen products, classic buttonholes, as well as slide sets. Ionians products have some great features that barroom product to product.

Monika is known for great quality of its devices, and oftenest technologically advanced cameras and great maps for its smartness. Price The prices of the smartened series vary between RSI 5000 and Resorts. There is high price variability of the products, so that the prices meet every social class needs. Promotion Monika makes use of advertising on television, newspapers, radio and billboards. There’s no information on any current or near past promotional campaigns. Place Monika is getting its products to the market through distributors.

It mainly sells its smartness and feature phones trough Mobile operators and retailers, which is common for the industry. The company does not own shops in most of the part of country. According to the marketing mix analysis for Monika, the company mainly focuses unproductive component of the marketing mix. Monika offers great variety of product at different price levels. Given the variability in products and series, at this point it ‘shard to understand the strategic choices of the company. It is even impossible toasters the decisions regarding the new series Monika Alumina.

Conclusion Ionians mission is to regain its leadership position in the smartened market. Thecompany sees greatest potential for achieving its objective in the partnership witchcraft’s. According to the environment analysis the most serious problem for hegemonic is the threat from existing rivals. Monika has built some interesting products in the Alumina series, with very impressionability’s and beautiful designs. However the market success of these products hasn’t been so great and Monika did not achieve its goal of becoming a market leader inlaid.

Monika has introduced its flagship device at a high price with very environmentalists and has position it in the high-end costly Smartened market. The product is introduced by implementing differentiation strategy. According to the analysis the reason for this is wrong implementation of marketing strategy and specifically problems with the consisting of the products. This strategy implementation is correct according to the analysis, as the product is introduced with aggressive marketing mix, targeting the mass market.

Alumina 925 has seen great interest in the Smartened market in India. Suggestion A company has to choose among those market segments and build products suitable for the chosen segments. Customers have to be aware that the products recognize their needs, so positioning is important for the success of such strategic decision. However when analyzing Ionians segmentation strategy, it does not become clear what the segmentation actually is. The products are not positioned well in the market, and customers may have hard time choosing among Alumina series.

This problem could be making customers to turn to one of Ionians rivals such Samsung, which have positioned well their products and are letting their customer’s that their company provides what they need. We believe this is really harmful for the company as the Alumina phones are important strategic point for Monika in outsourcing of regaining its lost ground in the Indian Smartened market. If Monika introduce other products in the Alumina series, it would be useful for the many to follow a simple framework for segmentation strategy formulation.