e71 report

8/7/2019 E71 report

1/13

Report of Marketing MixSep 11, 2010

A. INTRODUCTION OF NOKIA CORPORATION

Picture A.1 - Nokia Corporation

Nokia Corporation is a Finnishmultinational communications corporation headquartered in

Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki. Nokia is engaged in the

manufacturing of mobile devices and in converging Internet and communications industries,

with over 123,000 employees in 120 countries, sales in more than 150 countries and global

annual revenue ofEUR41 billion and operating profit of 1.2 billion as of 2009. It is the

world's largest manufacturer ofmobile telephones. Nokia produces mobile devices for every

majormarket segment and protocol. Nokia offers Internet services and provide free digital

map information and navigation services.

Nokia has sites for research and development, manufacture and sales in many countries

throughout the world. As of December 2009, Nokia had R&D presence in 16 countries and

employed 37,020 people in research and development, representing approximately 30% of

the group's total workforce. The Nokia Research Center, founded in 1986, is Nokia's

industrial research unit consisting of about 500 researchers, engineers and scientists. It has

sites in seven countries: Finland, China, India, Kenya, Switzerland, the United Kingdom and

the United States.

In recent years, Finns have consistently ranked Nokia as one of the best Finnish brands. In

2008, it was the 27th most respected brand among Finns, down from sixth place in 2007. The

Nokia brand, valued at $34.9 billion, is listed as the fifth most valuable global brand in the

Interbrand/BusinessWeekBest Global Brands list of 2009 (first non-US company). It is the

~ 1 ~
http://en.wikipedia.org/wiki/Finlandhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Keilaniemihttp://en.wikipedia.org/wiki/Espoohttp://en.wikipedia.org/wiki/Helsinkihttp://en.wikipedia.org/wiki/Eurohttp://en.wikipedia.org/wiki/1000000000_(number)http://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Market_segmenthttp://en.wikipedia.org/wiki/Communications_protocolhttp://en.wikipedia.org/wiki/Research_and_developmenthttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Workforcehttp://en.wikipedia.org/wiki/Finnshttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Interbrandhttp://en.wikipedia.org/wiki/BusinessWeekhttp://en.wikipedia.org/wiki/Finlandhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Keilaniemihttp://en.wikipedia.org/wiki/Espoohttp://en.wikipedia.org/wiki/Helsinkihttp://en.wikipedia.org/wiki/Eurohttp://en.wikipedia.org/wiki/1000000000_(number)http://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Market_segmenthttp://en.wikipedia.org/wiki/Communications_protocolhttp://en.wikipedia.org/wiki/Research_and_developmenthttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Workforcehttp://en.wikipedia.org/wiki/Finnshttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Interbrandhttp://en.wikipedia.org/wiki/BusinessWeek

8/7/2019 E71 report

2/13


number one brand in Asia (as of 2007) and Europe (as of 2009), the 41st most admirable

company worldwide in Fortune's World's Most Admired Companies list of 2010 (third in

Network and Other Communications Equipment, seventh non-US company), and the world's

85th largest company as measured by revenue in Fortune Global 500 list of 2009, up from

88th the previous year. As of 2010, AMR Research ranks Nokia's global supply chain

number nineteen in the world.

LeoMechelin Fredrik Idestam

Picture A.2 - FounderofNokia

~ 2 ~
http://en.wikipedia.org/wiki/Fortune_(magazine)http://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Fortune_Global_500http://en.wikipedia.org/wiki/AMR_Researchhttp://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Fortune_(magazine)http://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Fortune_Global_500http://en.wikipedia.org/wiki/AMR_Researchhttp://en.wikipedia.org/wiki/Supply_chain

8/7/2019 E71 report

3/13


http://en.wikipedia.org/wiki/Nokia

B. MARKETING MIX ANALYSIS

I. PRODUCT:

The product that we would like to analyze in this report is a handphone Nokia E71 in

Nokia Eseries.

Picture B.I.1 Nokia E71

1. STP Segmentation, Targeting and Positioning

At the beginning, we will mention briefly about STP ofthe Nokia E71.

- Segmentation:

In the case of the Nokia E71, the Nokia firm has segmented into the retail market by

psychological factors of customers having strong personalities. Company aimed at

those customers who preferred smartphones slim and compact, stylish and

personality. Of this, the Nokia E71 is a smartphone having slim and compact style. It

is stylish and easy to hold tight but not least luxurious. This is a prominent point in the

~ 3 ~
http://en.wikipedia.org/wiki/Nokiahttp://en.wikipedia.org/wiki/Nokia

8/7/2019 E71 report

4/13


exterior shape and structure which make a strong impression and hit strongly the

psychology of choice of customers preferring it.

- Targeting:

The Nokia E71 smartphone is designed to target forbusiness people, with high-speed

download, faster messaging and email. The Nokia E71 smartphone is the Eseries

Nokia range with a QWERTY keyboard targeting business users worldwide with

Symbian operating system. The key features of this Nokia E72 mobile device include

optimized mobile email and messaging experience with full QWERTY keyboard and

pocket-size for one-handed typing.

- Positioning:

http://www.oppapers.com/essays/Nokia-Brand-Positioning/290730

Nokia has been successful in differentiating itself in the crowed and highly

competitive mobile communication industry and its newly targeted battle of internet

industry. Nokia emphasizes technology innovation, fun spirit, design, and ease of use

to build a trusted relationship with customers. Nokias strategy can be easily spotted

on companys corporate website: Nokias strategy is to build trusted consumer

relationships by offering compelling and valued consumer solutions that combine

beautiful devices with context enriched services . Example would be Nokia phones

faceplates and different colors that suit users personality, mood and lifestyle. By

owing the human dimension of mobile communications, Nokia has taken the best

position for itself, leaving its competitors behind pondering what to own to position

themselves.

2. Three components of the product:

In this part, we start to make clear three components of Nokia E71.

According to levels of product, you can see the handphone added features and options

to the basic product from Nokia, therefore Nokia E71 is the enhanced product.

Nokia E71 is also created by some basic components, such as basic product, features,

packaging, support services, brand and image.

~ 4 ~
http://www.oppapers.com/essays/Nokia-Brand-Positioning/290730http://www.oppapers.com/essays/Nokia-Brand-Positioning/290730

8/7/2019 E71 report

5/13


http://www.knowthis.com/principles-of-marketing-tutorials/product-decisions/product-

components-core-benefits/

For this report, we would like to divide it down into the following fields:

- The core benefit

- Actual product

- Augmented product

a. The core benefit:

With Nokia E71, this is a handphone that makes specialize for business person,

particularly for person who dont always stay at the office. They have needs to

check the email all times, type the documents, and search web. But they cant bring

the PC belong them, or open the laptop, it is very difficult and take time.

Understanding this, Nokia launched the Nokia Eseries with model Nokia E71. The

phone with features is like a mini laptop. It helps the users check mail, search web

or deal the jobs with office tools.

Exteriorly, the cover of the E71 is made from stainless steel, white or gray two

carved and painted, hand stamp bearing craft. Designed for use with both hands and

one hand should pay phones this business is quite ergonomic shape, with narrow

and the keyboard is specially designed. Those who use Microsoft Outlook at work

have access to the e-mail over mobile using mobile email client Mail for Exchange

pre-loaded in the machine. With the Nokia E-series device, users can access real-

time trust in e-mail, calendar, contacts and tasks, as well as download and edit

attachments like Word , Excel, Powerpoint or .pdf directly on the machine. In

addition, both these phones support the Nokia Intellisync Wireless solutions as well

as other e-mail solutions. In addition, the E71 supports the latest Ovi services

Nokia, including maps, music and media sharing. Along with these are advanced

interconnect technology such as HSDPA, wireless LAN and 3G. Additionally, the

E71 also built a music player and 3.2 megapixel camera with autofocus capability,

with support for external memory card maximum capacity up to 8 GB.

~ 5 ~
http://www.knowthis.com/principles-of-marketing-tutorials/product-decisions/product-components-core-benefits/http://www.knowthis.com/principles-of-marketing-tutorials/product-decisions/product-components-core-benefits/http://www.knowthis.com/principles-of-marketing-tutorials/product-decisions/product-components-core-benefits/http://www.knowthis.com/principles-of-marketing-tutorials/product-decisions/product-components-core-benefits/

8/7/2019 E71 report

6/13


b. Actual product:

This part will pay more attention with Nokia E71 product through its design,

features and brand name, Nokia the famous manufacturer of hand phone.

As the first, you can see the design of product is very professional. It is showed the

level of the user with 3 colors: black, silver and white. It is a luxuriously and

elegantly product, with a nice design.

To be designed for business people, this product have the special characteristics

making sure to bring user benefits as well as convenience in life activities:

Full keyboards QWERTY can make flexing your thumbs to create

email on the move fast and accurate.

Email: Eseries devices run Nokia Messaging, which will give you

access to all the POP and IMAP you can throw at it. Its also happy to talk using

Mobile VPN, Nokia Intellisync Mobile.

Full Capacity: The latest Eseries devices might be slim enough to slide

inside a suit pocket. The Nokia E71 will take MicroSD cards up to 8GB for your

complete MP3 collection.

Office Tools: Theres no point having a mobile office if you cant look

at office docs on the move. Eseries with QuickOffice on board enabling you to

open and edit Word, PowerPoint and Excel docs and theres Microsoft Mobile

Office in the pipeline.

Entertainment: The phone will let you relax after a busy day with avideo camera, a music player and radio. Nokia E71 is a good example of mixing

business with pleasure.

Furthermore, the E71 is made up of many key features which can meet customers

needs by its attributes, such as:

Quad-band GSM support

3G with HSDPA 3.6Mbps support

Landscape 2.36" 16M color display of QVGA resolution

~ 6 ~
http://www.businessdictionary.com/definition/design.htmlhttp://www.businessdictionary.com/definition/feature.htmlhttp://conversations.nokia.com/almanac/introducing-nokia-messaging/http://conversations.nokia.com/2009/08/18/video-microsoft-and-nokia-form-global-alliance-to-design-develop-and-market-mobile-productivity-solutions/http://conversations.nokia.com/almanac/introducing-nokia-e71/http://www.businessdictionary.com/definition/design.htmlhttp://www.businessdictionary.com/definition/feature.htmlhttp://conversations.nokia.com/almanac/introducing-nokia-messaging/http://conversations.nokia.com/2009/08/18/video-microsoft-and-nokia-form-global-alliance-to-design-develop-and-market-mobile-productivity-solutions/http://conversations.nokia.com/almanac/introducing-nokia-e71/

8/7/2019 E71 report

7/13


Comfortable full QWERTY keypad

110 MB of internal memory, microSD expansion, ships with a 2GB

card

Slimmest smartphone to-date, slimmest Wi-Fi and/or GPS handset

to-date

Bluetooth v2.0 with A2DP support

MicroUSB v2.0

Office document editor

(http://www.gsmarena.com/nokia_e71-review-266.php)

Besides that, the design and construction make it unique without the same with any

other phones. The first impression when you see the Nokia E71 is the "body" is

extremely uncertain. Inherited metal casing with a black two-tone light of E71

looks very fashionable. The design of the machine are very high scoring: make sure

the metal frame out thousands of times a user's fingerprint.

Size of the computer screen of the line was reduced from 2.8 inches down to 2.36

inches, but the difference only shows when the phone is placed next to each other.

Left, the whole "body" of E71 have been improved from E61i. QVGA screen

supports 16 million colors.

On the left side of the handset are the infrared port (a technology that's seemingly

obsolete), the microSD card slot and the microUSB port. Both apertures are

covered with plastic lids to hold off dirt and dust, and keep the contour of the

handset intact. The right side of Nokia E71 hosts the 2.5 mm standard audio jack

and the two volume controls. The bottom of Nokia's newest messenger features the

lanyard eyelet and the charger plug.

The brand Nokia E71 is printed with a bold outline clearly together with a big

image of the product outside the box. In the box of product, you can receive a set of

product, accessories and some documents. With the package, the phone is

protected from damage and customers can get the information from it, so that theycan use it with all applied.

~ 7 ~

8/7/2019 E71 report

8/13


c. Augmented product:

After-sales service, delivery terms will be different, belonging to location and

wholesalers or retailers on over the world in convenience. Besides that, when

customers buy the E71 at any store, they will receive a full installment of programs

for the E71 from the seller. Manufacturer warranty is usually one year after sales

for the E71. During the warranty period, customers E71 will be fixed or renewed if

any incident happens.

3. Product life cycle:

a. Introduction:

In 2008 Nokia launched the E71 into market. While this takes time and costs for

the product to penetrate into the market. During this period, sales and revenue

growth were low due to products not yet widely known or consumers not to give

up the habit of using existing products so they would explore to decide to buy or

not buy products. This required that Nokia needed to step up promotion activities

to inform and increase levels of customer awareness about E71, to impact on the

group of customers willing to buy products in the early stages in order to create

favorable conditions for implementation of promotional strategies noisily to help

E71 quickly enter the market at the highest level.

b. Growth:

During this consumption period of E71 went up by the market acceptance of new

products; however, competition in the market started increasing. Nokia has

expanded the market and attacked on new market segments in the current market

and considered the sale price (it was down from the beginning), developed

distribution channels to promote promotion activities in the channel. It is important

that promotion activities should focus on building reputation and promote E71 to

~ 8 ~

8/7/2019 E71 report

9/13


create customers confidence and encourage customers to use it. During this period

with over ten million E71 phones were sold within six of 2008.

c. Maturity:

The consumption outputs and the revenue reach a maximum level; however due to

very slow growth and the market demand in saturation, its sales is slow leading to

compete strongly in this stage. So Nokia has reviewed issues such as:

Market: To maintain the consumption in the current market and exploit new

markets.

Marketing activities: To improve the product and consolidate distribution

channels and develop new channels, increase promotion activities, reduce sales

price.

d. Decline:

Product volume and profitability declined so seriously, therefore it needed to be

researched and new products were launched to market while the current product

was in business. Now Nokia has launched a new product line is E72.

~ 9 ~

8/7/2019 E71 report

10/13


Figure A.I.3 E71 life cycle

II. PRICE:

On August 2008, Nokia E71 was launched to the Vietnam market, aiming to the target

market of luxury hand phone. Its price in this period is VND 8,9 million. And now, in the

first six months of 2010, the price of Nokia E71 is about VND 6 million. In the first time,

Nokia used market-skimming pricing strategy for pricing. This is the strategy that setting a

high price for a new product to skim maximum revenues layer by layer from the segments

willing to pay the high price. With the big brand name, E71 is aimed to the high class, and

this is the reason why the price is high. It encourages the customer in the target market

willing to buy the product. And then, step by step, the demand of customers is decreased.

Nokia used another strategy to attract customer. The pricing would decrease slightly to

encourage customer in lower class to purchase the product. This is called market-

~ 10 ~

Matu

rity

Grow

th

Sales

Profit

Dec

line

Introduct

ion

8/7/2019 E71 report

11/13


penetration pricing strategy. It is setting a low price for a new product in order to attract a

large number of new buyers and a large market share.

Of course, with the grant brand name of Nokia and the guaranteed quality, the pricing

strategy of Nokia was successful when they reduced price of product, and it has made the

demand of customers increased.

III. PLACE:

In US and Europe, Nokia mainly use some of mobile service suppliers to sell hand

phones to customers.

But in Asia, the retailer market is 40%, and in Vietnam is 60%. It is a big market to the

giant brand like Nokia.

Base on the purchase habit of Vietnamese, Nokia use the suitable strategy for distribution

channel. They use some big suppliers as merchant wholesaler who are independently

owned business that takes title to the merchandise it handles. They have a system of

chain retailer stores like superstore in the country. It makes everyone easily access with

this product and feel very comfortable when they want to buy a new product.

The customers can easy to find out some product of Nokia in any Mobile Shop, in all the

country.

With this system, it not only easy to buy, but also it is become an effective system of

guarantee in after sales.

Besides, you can easy to buy this kind of Nokia through the Internet. And pay online. The

product will be delivery in the door.

In general, you can buy a product of Nokia in Vietnam by various ways. It suitable with

the Vietnameses buying habit that want to end the business very fast and not want to go

so far to have the product. So this strategy is so success in Vietnam market.

IV. PROMOTION:

1. Promotion plan of Nokia:

~ 11 ~

8/7/2019 E71 report

12/13


Nowadays, Nokia has a new planning for promotion which save about 50% promotion

budget. They do not advertise widely, but they focus on some media. Advertisements

are posted on website, on some magazines and on television in Gold Hour. These

methods have brought a success to Nokia.

Besides, they also have another way to contact and attract customers for the E-series.

They designed the video situation about a young businessman who is very difficult to

check his email when he works outside the office. The video will receive any ideas

from customer to solve this problem. This humor video is introduced in a lot of

websites, social webs like youtube.com, zing.vn, clip.vn It is focused on young

people in Vietnam who access the Internet a lot.

2. Promotion program of Nokia:

For Nokia E71, you can find its information in a lot of media. Nokia uses many ways

in marketing promotion for their product including advertising (on newspaper,

magazine, and television), Internet marketing, sales promotion and personal selling.

With all these methods, they inform customer very well about Nokia E71 with its

design, functions, characteristic and price.

And when customers enter the store, they can receive the advice from sales person

(personal selling), so they can make the best choice. After purchasing, they also have

the good service for warranty. It is the reason why the trust of customer with the brand

name of Nokia is very good.

http://www.tin247.com/nokia_manh_ve_ban_le_tai_chau_a_thai_binh_duong-19-

146867.html

C. CONCLUSION:

Through the research of marketing mix analysis of Nokia on E71, we will understand some

general concepts about the product and the strategy Nokia has used to popularize their

product very well. Every elements was considered and applied carefully as well as the

strategy for each of them conducted rather successfully. Nokia is a big telecommunication

group so this success of E71 is also obvious. As the result of these, E71 quickly is

~ 12 ~
http://www.tin247.com/nokia_manh_ve_ban_le_tai_chau_a_thai_binh_duong-19-146867.htmlhttp://www.tin247.com/nokia_manh_ve_ban_le_tai_chau_a_thai_binh_duong-19-146867.htmlhttp://www.tin247.com/nokia_manh_ve_ban_le_tai_chau_a_thai_binh_duong-19-146867.htmlhttp://www.tin247.com/nokia_manh_ve_ban_le_tai_chau_a_thai_binh_duong-19-146867.html

8/7/2019 E71 report

13/13


acknowledged and used widely and popularly on over the world, contributing to bring more

value to Nokia as well as its competition position.

~ 13 ~

e71 report

Documents