Target customers and Products: The product I want to discuss this week is the phone of Nokia. Nokia is a mobile communication products multinational company, headquartered in Finland. Nokia occupied the world first of share of cell phone sales position by several years. There are 12 different series of phones are designed and produced by Nokia. Each series are for different targeted customers. For example, 3-series phone is more suited for young people. It designs move of feeling, and price cheaper; E-series phone is designed for business people. It designs as a smart phone and works for business customers. Fashionable and successful customers are more preferred to N-series phone because it combines of fashion, multi-function and business. Price: The price of Nokia mobile phone, according to the difference of the price level, divided into high, middle and low three grades. The low end of the market is pricing in below $150; the second level of prices is between $150 and $500; and then more than $500 for the high-end market. Each Nokia cell phone has its brief life cycle. Seven hundred kinds of cell phone sell in the Chinese market, but its life cycle is only half a year. The pricing strategy of Nokia is in production and marketing costs allow the psychological pricing. It maximum avoids price competition. Placement： Before the year 2000, the sales channel strategy of Nokia is to find a national distribution agent, the manufacturer to the market by general agent shop goods. After the 2000 year, the mobile phone sales channels appeared in cell phone supermarkets, professional chain stores, and home appliance of chain enterprise. Nowadays, customers also can purchase online. These emerging sales channels avoid the intermediate distributors so that they can save much more purchase cost. Promotion:
As the one of the most popular slogans, Nokia slogan is "Connecting people", which lead multi-function mobile phone market for many years. It use the following several ways to promote: Firstly, sign contracts with the movie business to show Nokia’s mobile phones in “friends", "the matrix" in the movie; Secondly, using famous movie star effectiveness, cooperate with the domestic and international stars; And, Nokia art expression of advertisement, mainly in its originality, and have the large international brand unique style.
One of the four P’s that most needs to be changed today is product. Nokia need change the system of their products. Because now is the era of smart phones, the competition of mobile phone manufacturer is the operating system and the application number, the ecosystem and developers interested in. Now the most two popular cell phone systems are Android and IOS, but Nokia still use the old SYBANG system. The using of SYBANG system is uninteresting that compared with Android and IOS. Mobile phone system includes not only the software and hardware of the equipment, also including developers, application, electronic business, advertising, search, social application, geographical location services, etc. Now apple and Google will undoubtedly have more of advantages. Nokia and Microsoft WP7 in this filed lags behind its rivals. (c)
Changing the product’s system of Nokia cell phone will change the other 3 elements of the marketing mix strategy more or less. Price of Nokia cell phone should compete with other cell phone brands such as Apple and Samsung. We also should improve the promotion of Nokia phone. The company should let their customers know its new system, and cooperate with those applications and software developers to design new programs for Nokia. In addition, through the advertising change its image of make it becomes a smart phone. For placement strategy, the company can sell their new smart phones in which stores also sell other brand of smart phones such as iphone.
As a whole, I agree with your recommendation about changing the price promotion of LINING. Their prices of products decrease very soon. This would reduce the value of the products in customers' mind. There is a good example LINING can learn from it. COACH is a well-known bag brand in USA. It is very popular recently even in China. As we known, COACH has their own outlet store in which sell their discounted products. The price is very lower than their original price. However, COACH also has their retail stores in which sell their new products without discount eto sell their out of season products. So I think LINING can learn from these cases. Open factory stores to sell old products and keep the original price in retail stores. Separation shop can separate the different customers. Customers who have more purchasing power will choose to shop in new and fashionable products with original price. It will not hurt the brand value because high value products will not decrease price at least in few seasons.
Thank you for reply and comment my essay. We chose the similar topic in cell phone market. And I also agreed your recommendation about changing the system of blackberry mobile phone. I ever had one blackberry phone. The speed of that phone is too slow, and it is inconvenient to download application through its online store. In addition, their keyboard is too small. My father like my Blackberry but his finger is too big to text using the keyboard so that he gave up buy it. So another thing Blackberry product should change is the keyboard.
Good job dalibor,