NOKIA LUMIA MARKETING PLAN ESSAY

NOKIA LUMIA MARKETING PLAN ESSAY

EXECUTIVE SUMMARY

The Nokia Lumia is a well-known smart phone brand that only rivals the iPhone and the Samsung Galaxy range of smartphones. This paper is a detailed report on the marketing plan behind the development of the Nokia Lumia.
It provides the past, present and future analysis of the prospects of the Lumia brand with respect to the achievements it has been able to attain.

The paper has four sections. The first provides background information on the topic while the second section details an analysis of the strengths, weakness, opportunities and threats to the Lumia. Subsequently, the third section of the report reviews the strategic focus plan for the Nokia Lumia brand of phones it details the vision and mission statements behind the success of the brand. Later the report details the marketing plan of the brand drawing a line between dos and don’ts in the smartphone marketing business.

The results of this report indicate that the Nokia Lumia served as a comeback strategy for Nokia after its sales plummeted due to competitors’ introduction of smartphones into the market. Nonetheless, the Lumia proves a successful brand as it has carved a niche in the smartphone industry.

Moreover, it has reclaimed Nokia’s lost glory despite that fact that Nokia’s acquisition by Microsoft means the end of production of the Nokia Lumia line of phones. Henceforth, the Nokia Lumia will appear as the Microsoft Lumia brand. Likewise, the report also finds it optimistic that the future of the Lumia bases on innovation and technological advancements which are the building block of its success. This paper is divided into various sections, the structure of the paper is as illustrated below:

The first part of the paper is a background establishment of the plan development on the Lumia brand of products. It details the features of the brand and how it came to be established giving the reasons behind the motivation for the partnership between Microsoft and Nokia for the development of the Lumia brand. The section also details the review on the competitiveness of the Lumia in regards to the development of smartphones in the market. As a matter of fact it brings into focus the relationship between competitors’ brands and the Lumia and discusses the motivations behind the development of the Lumia.

The review finds that Nokia’s dominance was toppled by the likes of iPhone and Samsung Galaxy brands which revolutionized the mobile telephony market. The competition also reviews the differences in software and smartphone capabilities between the Lumia and its competitors. To this end, weaknesses, strengths, opportunities and threats presented by the competition on the Lumia are reviewed as well.

Subsequently, the paper advances its analysis into discussing the strategic focus plan on for the Lumia brand. It presents the mission and vision of the companies that formulated a merger for the sole purpose of development of the Lumia. Further, the goals and objectives of the company are found to be reminiscent of the vision and mission that unites both firms in regards to the development of the Lumia brand of smartphones.

Moreover, the section details input from Nokia and from Microsoft that have served to sustain the development of a partnership which successfully brings the Lumia into production. Finally, the paper delves into the marketing strategy behind the marketing plan for the Lumia detailing issues regarding the annual budget, action programs, controls, product promotional approaches, distribution, marketing research, and the marketing mix for the Lumia. Essentially, the paper is a detailed review of the marketing plan for the Nokia Lumia brand of smartphones.

CURRENT MARKETING SITUATION

This section of the report presents an introductory analysis of the case of Nokia Lumia’s transition to Microsoft Lumia. It describes the background of the two companies with respect to the Lumia line of products. First, it details the description of the market in which the Nokia Lumia line of phones draws a customer base and a review of the product’s appeal to the market. Subsequently, it also details a review on the competitiveness of the Lumia brand of phones in the smart phones market in general drawing analysis from market performance of the Lumia in comparison to competitor brands. This section culminates in an analysis of the distribution mechanism that is used by Microsoft and Nokia to deliver the Lumia smartphone to its clientele (Microsoft, 2014).

MARKET DESCRIPTION

The Nokia brand of phones has dominated the mobile phones market the world over since the late 1980s up to the mid-2000s. For a long period, the Nokia brand have dominated the mobile phones market the world over until the year 2007 when smartphones were produced presenting a formidable challenge to the Nokia line of mobile phones. The transformation followed introduction of the iPhone that revolutionized mobile phone technology enhancing capabilities that mobile phones could achieve. The popularity of the smartphone served to hurt the performance of the Nokia brand of phones mainly because Nokia was increasingly becoming old-fashioned. Some also regard it to be backward leaning in terms of trendiness and technological advancement (Singh, 2014).

The situation was reminiscent of the dwindling market share of the mobile devices that Nokia served. Resultantly, the company ran into losses owing to stiff competition in the market from an array of smartphones produced by competitors following the lead of the iPhone, and Android operated mobile phones.

The company had no choice but to adopt the current dynamics in the industry in order to sustain its relevance in the mobile telephony production and manufacturing industry. Adopting required that Nokia merges with software company Microsoft to produce the Nokia Lumia brand of phones. The strategy worked out quite well in that the firm was able to produce smartphones that could compete favorably with the likes of the iPhone.

Nokia had regained its market through the development of the Nokia Lumia brand which is a smartphone that runs on Microsoft windows software with additional features such as high megapixel camera and expandable storage capacity. Essentially, the Nokia Lumia served to edge Nokia closer to regaining its market lost during the introduction of the iPhone and followed by Android operated phones in the market (Singh, 2014).

PRODUCT REVIEW

The Lumia brand of phones is built to compete with the likes of Android operated phones developed by Samsung and apple among other competing brands. The strengths of the Nokia Lumia lies in its capacity to provide the user with a multiplicity of usability in terms of experience with the product. To this end, the Lumia is built to have features that rival the Android operated systems and the iPhone operating system. The Lumia runs on windows 8.1 software or operating system which allows it to have smartphone capabilities pitting it competitively against the likes of the iPhone. The phone also has features such as a camera with high-resolution capabilities that allows the user to take high definition photos (Singh, 2014).

However, the windows 8.1 operating system was not the first attempt that Nokia made on the development of smart phones. Prior to the development of the Lumia, Nokia had developed Symbian operated brands that did not perform well in the market; the poor performance owing to difficulties that the Symbian based operating system developed which frustrated users.

The introduction of the iPhone did not make matters better for Nokia because sales soon plummeted leaving the company grappling to hold on to its market share. A comeback strategy development which encompassed the introduction of the Lumia range of phones that proved the wiser move. The Windows 8.1 operated Lumia had smartphone capabilities meeting expected standards in the smartphone market (Marian, 2013).

COMPETITIVE REVIEW

As earlier mentioned the main competitors for the Lumia are the iPhone and Samsung mobile which largely develop functionality on Google’s Android platform or operating system. The intention of the development of the Lumia stems from the need to counter the competition that was present in the market as a result of development of the iPhone and Samsung smartphones. In the case of the former i.e., the iPhone that is currently selling its sixth generation in the line of its products since inception in 2007.

The iPhone appeals to a variety of age groups from children, teenager to adults; the usability of the iPhone across clientele of all ages is driven by its capability to install android application. The feature that allows for a multiplicity of application makes the iPhone appeal to different age groups due to its flexibility. Hence, individual users can be able to customize their iPhones by installing applications that they use or that appeal to them.

For instance, children will install more game apps on their iPhones while teenagers would install social media apps such as Facebook and the likes. On the other hand, adults can install other features work related such as diary or calendar reminder which best suits their individual needs. The iPhone has appeal on the mobile telephone market due to the buzz it created at its first release back in 2007 which has served as its main marketing plan. As a result, the product promotional approach employed by the company is majorly word of mouth. Word of mouth has enhanced its profitability because little to no funds are spent on advertising (Marian, 2013).

Samsung smartphones also present formidable challenge for the Lumia range of smartphones in the market. Similar to the iPhone, Samsung smartphones also run on Google’s operating system Android which makes it a formidable challenger to the Windows 8.1 operating system installed in Lumia phones. Moreover, customization is the main strategy that Samsung employs to gain a customer base and meet the needs of the clientele. In this regard, Samsung smartphones come in a range of different sizes and prices to meet the varied needs of different customer segments. Furthermore, customization includes android applications such as the Samsung Galaxy music that allows users to create and save their playlist.

Recently, Samsung has considered the development of windows run smartphones having produced the first Samsung windows operating system phone in 2012. This move to incorporate windows software in its devices in observers’ views is a strategy to tap into Lumia’s market share in line with its goals in customization to meet customer needs. Essentially, the Samsung Android operated smartphone serves effective in meeting the needs of its clientele by addressing issues regarding customization that enhances customer satisfaction (Marian, 2013).

DISTRIBUTION REVIEW

In order to develop a system through which the company Nokia can reach out to potential clientele, the company has entered into partnerships with local distributors to strengthen its presence in foreign markets. Whereas its operations in regards to manufacturing and production are based in Europe, the Lumia is a worldwide brand and thus sells everywhere across the world.

For this reason, Nokia has chosen to work closely with network providers in regional markets where the company has been able to provide clients with data bundles upon purchasing a Lumia phone. The plan aims at ensuring that customers have a holistic customer experience when interacting with the Lumia. Hence, the provision of data bundles allows users to explore the features of the Lumia phones to gauge whether they meet their expectations.

Close coordination with regional distributors is the strategy that Nokia has used to ensure that its products have presence in regional markets. In addition, the company has employed advertising in conventional media such as TV and newspapers as a product promotional means to enhance distribution. Hence, combined with the partnerships developed between Nokia and regional network providers to give free packages to customers; the advertising strategy adopted by the company serves to place the Lumia competitively in the market (Marian, 2013).

SITUATION ANALYSIS

This section details a review of the general situation of the Lumia product pitting all variables in the marketplace to gauge its success and or failure in the marketplace. Consequently, it discusses the strengths, weaknesses, opportunities and threats that the company faces. Subsequently, an analysis of the Lumia’s internal and external environmental soundness is evaluated based on Porter’s generic strategies to provide an overview of the soundness of the Lumia brand in the smartphone market segment.

SWOT ANALYSIS

Strengths. Nokia Lumia’s strength is said to lie in its brand name which is synonymous with sturdiness, accountability and distinct design. Customers of Nokia phones can attest to the durability that they associate the brand with while others have known Nokia to be the most popular brand of phones the world over due to its domination of the mobile phone industry since its inception in 1865 leading up to its downfall in 2007. In fact, Nokia brand name was dominant in the mobile telephony industry until the introduction of the iPhone in 2007 which revolutionized the mobile manufacturing sector forcing Nokia to adapt in line with the current trends. Moreover, Nokia’s success can be attributable to the brand loyalty that it has enjoyed over the years stemming from customers who have remained dedicated clientele.

However, the introduction of Android smartphones toppled Nokia’s dominance which made it necessary for Nokia to develop its own range of smartphones in order to regain relevance. To this end, and as far as the introduction of the Nokia Lumia is concerned, Nokia can regain its influence on the market to reclaim its brand name as a strength and driver for its success (Mata, 2012).
Weaknesses. The weakness that Nokia is largely known to have can be said to be historical in the sense that it has for a long time been struggling to overcome the challenge of software development. In this regard, Nokia finds it difficult to keep up with the current trends as pertains to the development applications that are characteristic of competitors design. For instance, in the past Nokia’s attempt to develop smartphones operated on the Symbian platform or software backfired due to operational difficulties of the phones by users. Resultantly, this places the competitiveness of the company’s products at an unfavorable position.

Nonetheless, Nokia has moved to correct this anomaly by entering into a partnership with Microsoft to develop the Lumia range of smartphones. In the partnership Nokia is tasked with the responsibility of developing the phones hardware while Microsoft is tasked with the development of attributes such as internet capabilities and software. Evidence to the fact that Nokia is incapable of effectively handling software development can be drawn from the fact that the company recently sold out its production rights to Microsoft. Effective to the sale the Nokia brand will be replaced by the brand name Microsoft. Hence, production of Lumia phones in the future will be branded Microsoft Lumia. In this respect, the greatest challenge for Nokia remains software development since it has not effectively mastered the development of software for its smartphones which explains its acquisition by Microsoft (Marian, 2013).

Opportunities. Nokia’s partnership with Microsoft remains its greatest chance to reclaiming the mobile phone market segment’s domination that it has experienced in the past. To achieve this, the company’s investments in product development on the windows 8 and windows 8.1 platforms provides optimism in future advancement of products. The reason for projected success lies in the fact that Nokia is the first to enter into a partnership with Microsoft to develop a product i.e. the Lumia. Since the commencement of the partnership, Nokia Lumia brand production is continuously gaining experience with windows software. Hence, the future can only promise that the Nokia Lumia can be a pace setter in the mobile telephony industry in line with the development of windows 8 operated mobile phones. Therefore, imitators such as Samsung and HTC which are beginning to develop their own brands of windows phones can only be compared against the capabilities of the Lumia. Thus, Nokia can maintain the lead and dominance over windows software operated mobile phones due to the experience it has collected in the development of windows phones (Singh, 2014).

Threats. The success of the Lumia brand is largely dependent on the dynamics in the smartphone mobile telephony market. In this sense, the level of competition that the Lumia is pitted against serves to be its greatest challenge with respect to the threats in the industry. The likes of the Blackberry, iPhone and HTC are increasingly developing their brands to be appealing to clientele.

Hence, the plan adopted by Lumia’s competitors is such that the phones capabilities in terms of usability and multiplicity of applications becomes the drive for innovation in the smart phone industry. Thus it is important for Lumia to cut a niche into the windows software operating system platform in order to give the phone a competitive edge in the market place (Marian, 2013). According to Sing (2014), hope for the Lumia in countering the threat of competition in the market lies in its capacity to enhance its technical efficiency as well as making improvements in its innovative performance.

On the former, the merger between Microsoft and Nokia and later the acquisition of Nokia by Microsoft is regarded as a move towards the right direction since it will enhance technical efficiency of the Lumia windows 8 software. The latter on innovation and performance lies in the capacity of the Lumia to invest in research and development that will continuously improve the operating system as well as the functionalities of th…………………..

NOKIA LUMIA MARKETING PLAN ESSAY

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