Brand Analysis - Consumer Behavior

Topics: Mobile phone, Nokia, Smartphone Pages: 11 (3985 words) Published: January 30, 2013
The advancement of technology has changed mobile phones to become more interactive and convenient. A new term – “Smart Phone” is used to label the mobile phones of today. A typical smart phone allows the user to customize the functions of the phone to their preferences. Nokia, one of the largest mobile phone companies is now struggling to keep up in this emerging smartphone market. The cause of their struggle was that they did not foresee the emerging threat of smartphones as a revolution and only seek to improve the specifications of their own product (McCray, Gonzalez & Darling 2011). Bloomberg (Diana, 2009) has stated that Nokia’s market share is declining ever since. By the end of Nokia’s Financial Year 2011, they reported a loss of $1.5 billion USD (Jamie, 2012) This report will analyze the brand elements of Nokia as well as to explore on 3 consumer behavior concepts that influence the choices of purchasing mobile phones. The concepts that will be discussed are the Decision making process, the Self-concept and the Attitude-towards-object model History of Nokia

Nokia started out as a pulp mill in 1865, processing wood and paper on the banks of Tammerkoski rapids in the town of Tampere, located at southwestern Finland. In 1871, Fredrik Idestam alongside with his good friend, Leo Mechelin, transformed the company into a share company and named the company as Nokia based on the Nokianvirta river. Thereafter, Nokia has expanded their business to electricity, rubber, cableworks . In 1967, Nokia established a group name Nokia Corporation to pave a new future for Nokia as a global corporation. The new company involved five industries: rubber, cable, forestry, electronics and power generation personal computers, electricity generation machinery, robotics, capacitors, military products(communications and equipments). Nokia foresee a growing potential in the telecommunication industry and thus, in 1990, they decided to sell off their rubber, cable and consumer electronic business to focus on telecommunication products (Nokia, 2012). Since then, Nokia has established itself as one of the household mobile brand that everyone recognized.

Nokia’s Brand Element
Nokia’s Brand Personality
Nokia’s brand personality is based on high levels of trustworthiness and reliability. Their mission statement “Connecting People” is an emphasis of their brand personality. Nokia engaged this type of brand personality to strengthen the confidence level of their clients, customers and investors (Nokia 2012).

Nokia’s Logo
Nokia has been evolving from a wood and paper processing business to manufacturing and delivering telecommunication products today. Over the years, they have been changing their logo to ensure that it can somehow relate an assuring feeling to people, especially to consumers who are engaging their services or purchasing their product (Nokia, 2012). The current Nokia’s logo consists of three features: Using blue as the main font colour, a slogan and the picture of two people almost joining hands with each other. The approach that Nokia used to design the logo was simple, yet it expresses the bold and unique characteristics of the company and its exceptional products. Colour can cause a strong impact on people’s emotion. Nokia chose blue as the default colour to indicate both their brand name and slogan. Several researches has highlighted that blue indicates high quality, trustworthy, sincerity, relaxation, serenity and loyalty, (Paul & John, 2006; Lovelock, Patterson & Wirtz, 2011). These are the type of qualities that they want their consumers to believe when interacting with Nokia (Nokia, 2012).

Nokia’s Slogan
Nokia used their mission statement “Connecting People” as their main slogan and they relate it in their logo which features a perfect portrait of two people almost joining hands with each other. In other words, Nokia is the key to connect people (Nokia, 2012).

Nokia Brand Awareness...
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