Marketing Strategy For Nokia

MARKETING STRATEGIES OF NOKIA
Marketing Strategy for Nokia

For this project I have been instructed to come up with a marketing
strategy for an existing company/product I have chosen to do Nokia
communications, particularly the mobile phone sector of Nokia's
business. To do this properly I will need to:
* Appropriately identify, collect and use primary and secondary data

that is relevant to the marketing strategy of Nokia.
* Produce a clear analysis of the external influences affecting the

development of a marketing strategy.
* Complete a realistic rationale for the development of a coherent

marketing mix for Nokia communications.
* Show a full understanding of a marketing strategy for Nokia with a

clear understanding of marketing principles.
* Produce a full, well-balanced marketing strategy that reflects

appropriate use of marketing models and tools.
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Introducing the product

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Nokia is a communications based company, which focuses on mobile

telephone technology. When mobile phones first became available on the
market the models were very basic with the best technology being SMS
messaging (sending written "text messages" from one phone to another).
Then the next advance in technology was being able to put different
faces on your phone (different style covers for the front and back of
your mobile device) and after that the technological advances have
come thick and fast, with advances such as:
* MMS
* WAP (internet)
* Polyphonic ringtones
* Predictive SMS (where the phone will finish off a word for you if
it can guess what you are typing)
* Camera phones and
* Video recorders
Competition in the market

-------------------------
With all this technology available in the communications market it is

obvious that Nokia will have lots of competition, they include:
* Sony Ericsson
* Samsung
* Motorola
* Siemens
* Panasonic
* NEG
* Sagem and
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* Toplux
With all of these competitors in the market Nokia must keep ahead of
the game by running successful marketing strategies, to do this Nokia
must focus on the principles of marketing. At the moment Nokia are the
world's best selling phone company (see table below which shows market
share). Nokia strengthened its lead as the No. 1 vendor in the market
during 2000 with shipments growing 66 percent over 1999. Some of the
company's success was attributed to a strong second half in 2000 when
59 percent of sales occurred.
1. Nokia 37.2% (34.7% 1Q02)
2. Motorola 17.3% (15.5%)
3. Samsung 9.8% (9.6%)
4. Siemens 8.5% (8.8%)
5. Sony-Ericsson 5.2% (6.4%)
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Marketing principles
====================
There are many priorities within a business, but in a marketing

orientated company like Nokia, many of the following principles will
be high on the agenda:
1. Customer satisfaction: Market research must be used to find out

whether customers' expectations are being met by current products
or services.
2. Customer perception: this is based on the images consumers have

of the organization and its products, this can be based on; value
for money, product quality, fashion and product reliability.
3. Customer needs and expectations: This is anticipating future

trends and forecasting for future sales. This is vital to any
organization if they wish to keep their entire current market
share and develop more.
4. Generating income or profit: This principle clearly states that

the need of the organization is to be profitable enough to
generate income for growth and to satisfy stakeholders in the
business. Although satisfying the customer is a big part of a
companies plans they also need to take into account their own
needs, such as:
5. Making satisfactory progress: Organizations need to make sure

that their product is developing along with the market, if a
product is developing well, then income should increase, if not
then the marketing strategy should be revised.
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6. Be aware of the environment: An organization should always know

what is happening within their designated market, if it is
changing, saturation, technological advances, slowing down or
rapidly growing, being up to date on this is essential for
companies to survive.
There are also certain external factors that a company should be very
aware of, such as P.E.S.T factors (political, environmental, social
and technological) and also S.W.O.T (strength, weakness, opportunity
and threat). A business must take into account all these constraints
when designing and introducing a marketing strategy.
P.E.S.T:
Political factors- Legal constraints (such as the G3 technology
constraints that Nokia have to take into consideration) must be taken
into account because many businesses aim to make a profit so they may
be tempted to mislead their customers about prices, quality of
products and the availability of their products. They may also try to
cut expenditure by using lesser quality materials in their products
(such as weaker materials for Nokia cases and batteries), also some
companies may also dispose their waste in ways that damage the
environment (pollution) and not ensuring high standards of hygiene and
safety in the workplace and outlet stores, all of these are illegal
and can leave companies in big legal trouble.
The governmental bodies in the U.K have introduced new laws into the
business environment, which ensure that none of these procedures take
place; if a company is to be successful they must follow all of these
laws.
Environmental social and ethical factors- some businesses view profits
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are more valuable then a strong ethical code and this can govern
behaviour and business conduct. Some un-ethical practices are against
the law and companies can not become involved in them (I have
mentioned these above) but there are also some practices that aren't
illegal by law but are considered highly un-ethical by the consuming
public, companies who engage in these practice's can lose a lot of
market share if they are found out. An example of this is cosmetic
testing on animals, it is legal but some of the consuming public are
not happy about it and boycott Certain products because of it,
companies must be very careful about how they conduct themselves.
Nokia have managed to be quite environmentally friendly and have not

done anything that the consuming public have taken huge offence to,
they have been very careful about this and this is one of the reasons
they are such a popular brand of mobile phones.
Technological- In the communications market technology is perhaps the

most important factor that companies like Nokia have to take into
consideration. They have to keep up to date with all the newest
technological advances (like camera and motion capture phones) if they
are going to capture the biggest market share and stay ahead of their
competitors (Sony and Seimens).
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S.W.O.T
SWOT analysis is also another way of deciding on a successful
marketing scheme, we must look at strength, weakness, opportunity and
threat.
Strength (internal factors)- Is looking at the companies current

market share and researching how recognised Nokia is amongst consumers
in the target market. Nokia is currently one of the most popular
Mobile communications companies in the industry, generating over
52,000 sales in 1997, which was a 34% increase from 1996. Nokia's net
sales for the October-December period in 1997 came to a total of FIM
15 857 million (FIM 12 669 million in 1996).
Weakness (internal factors)- This is basically looking at where the

product is failing or not doing as well as it should in the market.
Nokia's problems are that:
1. They are currently aiming their products at a saturated market

segment.
2. Their wage costs are forever rising.
3. Higher import charges have now been put into place.
4. There are some quite high supply chain costs that Nokia are
currently paying.
Opportunity (external factors)- This is the area in which Nokia can

make more profit, or gain more market share. There are 2 ways in which
Nokia can currently do this:
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1. Improve the technology that they are using to make their phones and
use in their products, for example, camera phones and advanced picture
messaging would attract new consumers to purchase phones under the
Nokia brand name.
2. Using innovation to re-invent their products, change and develop

within the market to offer something none of the competitors have.
Also the fact that phone call charges are being forced to fall should
prove to be an opportunity for Nokia to sell to the people, who
previously may have not purchased a phone because of higher call
charges.
Threat (external factors)- This is looking mainly at the competition

that are taking away Nokia's current market share and also government
legislations (the total costs of 3G licensing in Europe is 110 billion
euros) that could hinder Nokia's development as a company.
For an existing product it is often useful to draw up an Ansoff's

matrix, in order for Nokia to grow as a business we must look at:
· Market penetration
· Market development
· Product development and
· Diversification
Market penetration- the aim of market penetration is to sell existing

products to an existing market, to do this Nokia must do a few things:
1. Change the pricing scheme (for example, penetration or competitor

based)
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2. Introduce discounting
3. Start up a different advertising campaign or consider changing an

existing one.
Market development- To complete market development successfully, Nokia

must look into the following:
· Researching and selling to a different market (in case of saturation

or poor market share)
· Change times that television adverts are aired at and alter the
places in which print adverts are being displayed (this can help your
products appeal to a whole new market segmentation)
· Lower current prices to help the products appeal to a wider range of
consumers.
Product development- This area of the Ansoff's matrix involves keeping

up to date with the latest technologies available in your chosen
market and using them to appeal to different people (for example, WAP
phones are aimed at more professional people while Camera phones are
aimed at the youth market)
Diversification- This refers to developing technology that offers

consumers something new or different, this is the most common way of
companies trying to gain greater market share and increase their
profits.
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Market research
A businesses success is based on whether they can give the customer
what they want and when they want it. Market research involves the
collection, collation and analysis of data relating to the consumption
and marketing of relevant goods and services.
The purpose of market research is really to find out whether there is
a gap in the market for your product or service or whether you can
make customers want your product through persuasive adverting. We
already know that there is a market for mobile phones but the current
market gap has become saturated (or if not saturated, almost
saturated) so Nokia need to find a new market segment to aim their
products at. In order to classify the wants and needs of the consuming
population, companies need to gather information on the following:
· Consumer behaviour- How do customers react to advertising? Whether

they are partial to prize give-aways or free gifts? What are their
reactions to new and developed products?
· Buying patterns and sales trends- Organizations need to look at how

buying trends and patterns are affected by class, gender, religion and
region. They also need to understand how buying patterns change over
time and what markets are expanding and are worth trying to enter and
obviously which markets are contracting and companies shouldn't aim to
enter into.
· Consumer preferences- What customers are looking for in a product,

for example, style, colour, technology, amount of outlets, customer
service and promotional styles.
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· Activities of competitors in the market- Nokia need to examine how

their rivals are adapting their prices and products to meet the
consumers need's, how well the rivals are selling and what marketing
strategies they are using.
Market research should supply the company with all the information
they require about consumers preferences, whether they buy certain
products, what design features are preferable and what kind of retail
outfits are most frequently used for purchasing certain products.
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Sources of marketing information

The information that companies collect through market research can be
in one of two forms, either quantitative or qualitative data.
1. Quantitative data refers to data presented in numerical form,

usually figures, for example, Nokia's operating profit in the 4th
quarter of 1997 was 830 million.
2. Qualitative data is the information concerning the motives and

attitudes of consumers; for example, more people buy Nokia phones then
Sony phones because Nokia phones are more reliable.
The two main sources of market research information are primary

research (where the company has gathered the information about the
markets themselves) and secondary research (when researchers use
information that has been discovered by other companies).
Methods of collecting primary data:
· Face to face survey
· Open ended interview
· Telephone survey
· Postal surveys
· Consumer panels
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· Observations
· Experiments
Methods of collecting secondary data:
Internal sources:
· Existing reports
· Distribution data
· Shopkeepers opinions
· Stock records
· Sales records
· Accounting records
External data:
· Government statistics
· Specialist business organization, for example, Mintel or Neilsons

retail audit.
· Consumer databases.
To help decide what market segment to aim at companies can also look
at the buying habits of customers. In order to make decisions about
the type of products to make, what advertising to use, promotional
tactics, pricing and packaging. Nokia will need to know about the
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following:
1. The types of goods customers buy
2. How much they buy
3. How often they buy
There are also certain variables that can affect peoples buying
habits, they include:
1. Age
2. Gender
3. Area they live in
4. Religion
5. Lifestyle
6. Taste
7. Fashion and preferences.
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Market segmentation
In order to plan their product Nokia must look at what area of the
market they want to aim the products at, as the current youth market
is more or less saturated Nokia will have to research into a new
market, I suggest the 55+ market as they will have lots of disposable
income and my research shows that most people aged 55+ do not
currently own a mobile device and could be persuaded to buy one by
certain promotions and a good advertising campaign, also the drop in
call prices should attract a lot of people who may have previously
been hesitant due the high costs.
Below is a table showing the population in terms of social grouping of

the U.K in 1999:
Socio-economic group
% Of population
A-Upper class
2.8%
B- Middle class
18.6%
C1- Lower middle class
27.5%
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C2- Skilled working class
22.1%
D- Working class
17.6%
E-Low income earners
11.4%
I think that Nokia should aim their products at the socio-economic

group B (middle class) event though they aren't the biggest group they
are the group that is most likely to spend their money on a mobile
telephone as my questionnaire results showed.
Investigating consumer trends
As the main aim of market research is to develop an idea of market

opportunities, an important part of this research must be to track
sales in order to identify those products, which are likely to
experience a rise in sales and to look at those in which the sales are
likely to fall.
Changes in customer demand, which continue in the same direction for

more then 2 years, show a long-term trend or saturation is occurring
within the market. This is definitely a bad market for businesses to
be in (the mobile phone market is in the first year of a continuing
trend) and the company must consider changing their market or product
to a market or product that is currently showing a continuing upwards
trend.
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The marketing mix

-----------------
The marketing mix refers to the combination of elements within a

companies marketing strategy, these are designed to give the customer
what they want and in the long term are designed to maximise profits.
The marketing mix is based around the idea of the 4 P's:
Product-The product is the centre of the marketing mix and the other
three P's are based around it. Consumers purchase goods and services
for a variety of individual reasons and a company must be aware of all
of these when selling a product (that is why they conduct market
research).
Price-Is a key factor in the selling of a product, and is usually the

one that is open to the most change based on different pricing
strategies, for example, competitor based, penetration or skimming.
The three main factors affecting the amount charged for a product or
service, are; the cost of production, customer demand and competition.
Place-This refers to the chosen outlets for a product or service, for

a product to be very successful it must be easy to access, Mobile
phones are very easy to access nowadays, they are sold in
supermarkets, specialised outlets (either by network or brand) and all
major department stores.
Promotion-This involves providing information to the customer over a

variety of media platforms, using radio, television and print
advertising as well as using other promotional tools such as "money
off deals" and "free giveaways".
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The stages of marketing

-----------------------
1. Market and product research:
* Finding out what your customers want

* Technical research
2. Product launch
* Test market
* Pricing
* Branding
* Packaging
3. Product promotion
* Advertising
* Merchandising
* Publicity and P.R
* Sales promotion
4. Sales and distribution
* Managing the sales force

* Type and amount of sales outlets
* Local, national or international sales?
* Transportation of goods
5. Monitoring and analysing the sales
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* Meeting customer satisfaction?

* Does the product need modifying or replacing?
* Is a profit being made?
* Is customer service satisfactory?
* Have the sales targets been met?
* Is the promotion and distribution policy effective?
If a company gets to section 5 of the marketing cycle and a

substantial amount of the goals haven't been met then they will have
to consider re-launching the product or taking it out of the market
completely and placing it in a different market or changing it to meet
the needs of the current market.
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Product life cycle- Mobile phones

---------------------------------
Introduction
When mobile phones where first introduced they were low quality
technology (bad reception, poor reliability and had a short battery
life), high priced (around £100 for a basic model) and consumers had
to be persuaded to buy mobile telephones, as they were not yet
established as a necessity. When products are first released,
companies can expect high promotion fee's as the public are probably
not yet familiar with the product.
Also when mobile phones were first released they were bulky and hard
to use, as product design and development are a key figure in success,
Nokia had to design phones that were smaller and simpler for consumers
to use. As people had paid a lot for earlier, more primitive products
they were obviously not going to pay the same high prices for later
products so Nokia had to develop phones that could be sold for less
and would last longer, this is where companies can expect to pay high
production costs.
When Mobile phones were first introduced they were not such a popular
item and there weren't as many competing companies in the market. So
Nokia and a few other companies (Sony and Panasonic) could charge
higher prices then they would in the highly competitive market that
they are in today, as there aren't so many companies competing for
market share.
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Growth
In the growth stage of the product life cycle companies can expect
advertising and promotional costs to be as high as in the introduction
stage as more companies will enter the market and competition for
market share will increase. Advertising is a proven way of promoting
technological advances within a market (as with the new company 3
promoting their new technology that allows people to watch video's on
their handsets) so higher advertising costs can be expected as the
technologies available get better and more advanced.
The growth stage is also the stage that companies will (hopefully)
start to make a profit, based on good market research and a strong
sense of branding and a successful marketing scheme. In the growth
stage profit isn't the only thing that will start to develop, as there
are more companies in the market it is obvious that more technology
will be developed and that will drive prices higher, this is how
companies start to make profits (because consumers have accepted the
product, in Nokia's case, mobile phones, as a necessity they will be
more willing to pay higher prices for new phones that emerge in the
market).
Maturity
When a product enters the maturity stage, advertising and promotional

prices should decrease, as consumers are more aware of the product and
will research new additions to the market instead of being told what
is new (this is because phones have been promoted as fashion items and
will be desired by the consumers). At this point in the product life
cycle the main producers (Nokia, Siemens, Sony etc) should be clear as
they will have the most money to develop and promote their phones
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while the other, less popular producers of phones (Panasonic, Toplux

and NEC) will be struggling to survive and will drop out of the market
either here or they will seriously struggle in the next stage,
decline.
Decline
This is the stage that Mobile phones have entered (Nokia had recorded
their first drop in sales earlier this year), and all the remaining
companies are trying to re-launch their products by either developing
their products or entering new markets. At this point phone sales will
be decreasing and promotion and advertising costs will start to rise
again as companies fight for the remaining market share and struggle
to make a profit.
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Branding
--------
Most forms of promotion are based around the idea of having an image
to go with the product. Brand imaging plays a dominant part in an
organizations marketing strategy. This is because people make a
purchase they aren't just buying a product, they are buying a
lifestyle or an image. If branding can make people believe that the
branded product is better then an un-branded product, more people will
buy it and they will also be willing to pay higher prices for the
"extra quality" and lifestyle they are receiving with the product.
Because a lot of rival products are more or less the same (Pepsi and
Coke) the main way of making your product stand out is through
aggressive branding, This is usually achieved by companies using
slogans, logos and distinctive packaging.
Types of pricing strategies
Cost based pricing
This involves calculating the cost of production for the product and
then adding a mark-up for profit, usually 10% so a company can make
enough profit to re-invest into the business so they can grow.
Marginal cost pricing
This is the addition to total cost resulting from the production of an
additional unit of output. If a decision is made to expand by one or
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more units it will be based on an assumption that the price of each

unit will be least sufficient to cover marginal costs, so that the
profit earned on all previous units is not lower then it previously
was.
Demand based pricing
This is usually pricing products based around the customer demand for
a product, if the demand is high, the prices will rise. This is
usually used when the product is unique, for example, a football match
or concert. To use this strategy companies must carry out detailed
market research to find out what prices the consumers are willing to
pay so they don't over price their product.
Market skimming
This pricing strategy is also known as price creaming and is usually

put into place in markets where the competition is limited. Market
skimming pricing involves charging a high price for new products
because the customer is new and unique so (hopefully) the consumers
will be willing to pay higher prices for them. This is the most common
strategy in the mobile phone market, as consumers will pay the higher
prices for phones that have the newest technology.
Penetration pricing
Firms who are trying to establish themselves in a new market and gain
instant market share usually use this strategy. It is a high-risk,
high cost strategy that is only an available option to the bigger
companies (like Nokia) who supply to mass markets. Penetration pricing
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is based around the idea that a company will set their prices low to
encourage customers to buy their products instead of higher priced,
more established brands.
The organization may also boost sales by lowering prices if demand is
price elastic. One problem with this strategy in the mobile
communications market (or any other highly competitive markets) is
that price wars will often develop with rival companies and this can
limit to the amount of profit that can be made, and also generate
losses due to under-pricing in an attempt to hold onto market share.
Price discrimination
This is where companies can charge different prices in different

markets, because of the consumers they are aiming at, for example,
rail companies charge different prices for peak and off-peak travel
cards and fares. This strategy is only available for use when the
consumers are unable to undercut higher prices by reselling their
products from low priced markets to high priced markets.
Destroyer pricing
This is a more drastic and aggressive form of penetration pricing,

used when a company's objective is to get rid of competition
completely by lowering their prices to levels that other companies
cannot afford to drop to. The down side to this strategy is that
consumers may see the low price as a reflection of the quality of the
product and stick to the higher priced products because they offer a
product of higher quality.
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External factors affecting pricing decisions

--------------------------------------------
Setting a price with regards to only production costs ignores the

influence of external factors, such as:
* Market conditions- how much are the customers willing to pay? Can
advertising increase product image and price? Is the product aimed
at a mass market or a niche market? (a niche market refers to when
a company aims a product at a very small, select segment of the
market)
* Production costs- Prices must cover the costs spent in production

if a profit is to be made. The price must cover variable costs
(for the short term) and fixed costs (for the long term) otherwise
a company will face closing.
* Taxes and subsidies- VAT and customs duties will raise the price
of a product. Government subsidies will allow businesses to charge
lower prices.
* Business objectives- Is the business looking to maximise profits?

Or is the company looking to increase its market share?
* Marketing mix- What stage is the product at in the life cycle?

What forms of promotion are being used? Where is the product being
sold?
* Marketing structure- How much competition is there in the market?

What prices is the competition charging?
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Nokias current marketing strategy

The marketing mix
Price- The phones that Nokia produce are usually sold at high prices
(new phones can be expected to enter the market at around £200+, if
they carry the latest technology). The price of the new phones usually
decreases after an introductory period, which is usually around 2
months long. Nokia's prices are usually competitor based, in such a
way as, they try to keep their prices a bit lower then those of the
closest competitors, but not as low as the "smallest" competition as
consumers do not mind paying the extra money for the "extra quality"
they will receive with a well known brand, such as Nokia.
Place- Nokia phones are generally sold at all established mobile phone
dealerships such as Carphone Warehouse and The Link, although they are
also sold at other retailers such as Dixon's and other electrical
suppliers. The products are only sold in the electrical suppliers and
stores other then dedicated phone dealerships after the introductory
period so the phones can remain limited edition, as this will
encourage younger consumers to buy them.
Promotions- Nokia tend to promote the new technologies and mobile

devices they create using one big advertising campaign that focuses on
a singular technology instead of each individual handset so they can
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appeal to a lot of different markets with one campaign.
Product- Nokia phones tend to include all the latest technology and a
lot of the consumers favourite aspects such as text messaging and
games like Snake and Memory. When the phones came out they were big
and bulky and quite unattractive but now they are all quite sleek and
stylish with phones now getting small enough to fit in the palm of
your hand as standard. Most of the phones produced nowadays have
accessories that consumers must buy with them (carry cases, hands free
kits and in-car chargers) these generate Nokia a lot of profit, as
they are very high priced.
Nokia's marketing mix has worked very well until recently as the
market they are aiming at has become more and more saturated and after
looking at all the mobile phone sales figures, it looks as if the
phone companies can aim at this same youth market for about another 2
years until they need to change, but they should change sooner so they
can start making a bigger profit and get a head start on the
competition who will also have to change the market they are aiming
at. Nokia's current promotional strategy is working very well as they
are able to "talk to" a large number of consumers in different markets
rather then the niche markets the old promotional strategies where
restricted to.
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Nokia logo history
The first Nokia Company logo. What is the story about the fish? Salmon
in the river near the Nokia factory?
Nokia, Finnish Rubber Works Ltd. In addition to footwear and tyres,

Nokia Rubber Works also manufactured rubber bands, industrial parts
and raincoats.
The Nokia "arrows" logo before the Connecting People

logo.
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The Nokia "Connecting People" slogan was invented by Ove

Strandberg.
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Nokia started by making paper – the original communications

technology
The history of Nokia goes back to 1865. That was when Fredrik
Idestam built a wood pulp mill on the banks of the Tammerkoski
rapids, in southern Finland. A few years later, he built a second mill
by the Nokianvirta river – the place that gave Nokia its name.
1898: Finnish Rubber Works founded

Arvid Wickström founds Finnish Rubber Works, which will later
become Nokia's rubber business.
1967: The merger

Nokia Ab, Finnish Rubber Works and Finnish Cable works formally
merge to create Nokia Corporation.
Now
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3.0 Methodology
3.1 Equipment

The equipment requirements of this evaluation can be split into hardware

needs and software needs.
3.1.1 Hardware
Nokia phones running the Series 60 Symbian software were the only
mobile phones that could be used for this evaluation trial. These phones
supported third party applications such as Talks which enabled Blind and
Partially Sighted participants to access all areas of the mobile phone so
that these users could fully contribute to this evaluation. Six Nokia 6681
phones were used and five Nokia 6680 phones were used for this
evaluation. Specific phones were used for the Portuguese trials as the six
Nokia 6681 handsets did not have the Portuguese language on and the
Portuguese participants did not speak English. Although two different
model numbers were used, the phones were identical in design and
software versions. The only difference was that the Nokia 6680 was a 3G
phone and the Nokia 6681 was not. The six Nokia 6681 handsets were
purchased by RNIB (UK) and the five Nokia 6680 handsets were borrowed
from Vodaphone Portugal for a ten-day period.
3.1.2 Software
Each of the six Nokia 6681 phones needed to have the screen reader Talks
installed on them so that blind and partially sighted participants could
participate in this evaluation. The screen reader used was supplied by
Nuance (www.nuance.com). In addition to the screen reader, a screen
magnifier was also supplied as part of the software package.
3.2 Procedure

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This evaluation was broken down into three parts, an expert evaluation, an
end user evaluation and finally a comparison stage which compared the
results obtained in the expert evaluation and the end user evaluation.
3.2.1 Expert Evaluation
This was performed before the end user evaluation. This evaluation
consisted of two evaluators completing three sets of heuristics which
covered the three aspects of the mobile phone. The three aspects are
hardware, software and services. Each heuristic principle within each
aspect had checkpoints which provided greater detail as to what should be
evaluated. The evaluators were experts in the heuristics and mobile
phones completed the evaluation independently.
The three sets of heuristics were completed with the expert going through
them methodically. The results of each heuristic evaluation were discussed
between the two evaluators once completed. This was to check that their
answers were consistent. The heuristics are as follows:
3.2.1.1 Hardware Heuristics
● The product needs to be easy to orientate

● The printed visual information needs to be clear
● The non-printed visual information needs to be clear
● The buttons, switches, dials, and joysticks need to be easy to locate
visually
● The buttons, switches, dials, and joysticks need to be easy to locate
touch
● The connectors, sockets, battery, battery compartment/back cover,
SIM card holder, memory card and memory card holders need to be
easy to locate by sight
● The connectors, sockets, battery, battery compartment/back cover,
SIM card holder, memory cards, memory card slot need to be easy to
locate by touch
● The other tactile information needs to be clear
(texture/size/differences)
● The audible information needs to be clear
● The battery, SIM card and memory card must be easy to use
● The product needs to be physically easy to use
● Compatibility
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● Instructions
● Packaging
3.2.1.2 Software Heuristics
● Allow choice over the input and output method

● Optimise the input method
● Optimise the output method
● Allow personalisation of the input
● Allow personalisation of the output
● Allow personalisation of the alerts
● Promote flexibility
● Promote consistency
● Provide easy to understand menus
● Provide intuitive prompts and informative feedback
● Promote easy to use Softkeys
● Error prevention and error recovery
● Promote Easy Connectivity and Compatibility with other devices
and/or software
● Aid Task Completion
3.2.1.3 Service Heuristics
● Allow flexible access to the service

● Enable user style sheets
● Optimising colour and contrast
● Using text effectively to improve readability
● Consistent page layout
● Provide content that can easily be scanned
● Easy to use navigation
● Provide meaningful links
● Provide accessible forms
● Use JavaScript carefully
● Promote accessible multimedia
● Provide informative feedback and prompts
● Aid recovery and prevent errors
● Aid Task Completion
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3.2.2 End User Evaluation
3.2.2.1 Participants
Thirty-two participants took part in this evaluation and were made up from
four different user groups. There were fourteen Blind and partially sighted
people, five Deaf and Hard of Hearing, eleven people with learning
difficulties and two people with limited dexterity. The participants were
also of different nationality, twelve people were from the UK, eleven
people were from Portugal and nine were from Cyprus.
Of the twelve British participants, seven were blind and partially sighted
and five were deaf or hard of hearing. Of the nine Cypriot participants,
seven were blind and partially sighted and two were people with limited
dexterity. Finally all eleven of the Portuguese participants were people
with learning difficulties.
Of the 32 participants, seven participants were under 21, eight were

between 21 and 30, eight were between 31 and 40, six were between 41
and 50, two were between the age of 51 to 60 and one participant was
between the ages of 61 to 70. Nineteen of the participants were male and
thirteen were female.
To facilitate a successful end user evaluation, the needs of the users had to
be considered and fulfilled. If the needs of the user were not satisfied, a
user or a user group might not have been able to participate fully or at all.
Appendix One highlights the protocol needed to consider the users needs.
Background Information
● All the participants own a mobile phone

● Twenty-nine participants make voice calls and three do not
● Only one of the users did not send and receive texts, however the
blind Cypriot users were not able to read the texts as it was an
inaccessible function of the phone and some of the Portuguese
participants required assistance to read and write text messages
● Only six people used their phone to access the WAP services
● Only fifteen people used their phone to take photographs
● All but four of the participants use their mobile phone to store
contacts.
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● Sixteen of the participants use their phone to store events in the

calendar and sixteen don’t.
3.2.2.2 Focus Group Phase
In order to facilitate an effective group meeting, a plan was written to

direct and stimulate discussion among the participants. This plan
consisted of four sections, which consisted of an ice breaker, barriers to
using mobile phones, the button design, battery and card, and the final
section focused on input/output methods, packaging and instructions,
alerts, making calls and finally the services. Groups consisted of no more
than seven people and lasted approximately two and half hours, including
breaks. Once the focus group work was finished each participant was
given a mobile phone to use for approximately four days as well as a
questionnaire to complete. The focus group plan can be seen in Appendix
Two.
3.2.2.3 Questionnaire Phase
The questionnaire was made up of 48 comprehensive questions about the

mobile phone. The questionnaire was split into four sections; hardware,
software, services and miscellaneous questions. The first two sections
were further divided into sub sections to analyse various parts of the
phone in more detail. Each participant was given a questionnaire and was
asked to complete it whilst they had the phone. The questionnaire can be
seen in Appendix Three.
3.2.2.4 Interview Phase
An interview plan was put together which consisted of up to four initial

questions, ten tasks and three final questions. The initial questions asked
for general comments about the phone and the final questions asked about
the tasks the participant had just performed. The ten tasks were as
follows:
● Inserting a contact,
● Sending a text message (using non-predictive text),
● Sending a text message (using predictive text),
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● Taking a picture and sending it,

● Changing the left and right selection keys (Shortcut keys),
● Changing the ringtone,
● Attaching a wired headset or cable,
● Accessing web services,
● Dismantling the phone
● Assembling the phone.
These tasks were chosen on the basis that people need to do on a mobile
phone. The interview was the last stage of the evaluation for each
participant and was conducted by an evaluator and where appropriate an
interpreter. The interview plan can be seen in Appendix Four.
3.2.3 Comparison stage
The aim of the evaluation was to determine if the heuristics matched the
results of the end user evaluation. In order to do this, a heuristic
evaluation was carried out as well as an end user evaluation. The results
from the questionnaires, focus groups and interviews can be seen in
Appendix Five.
Following the completion of the heuristic evaluation and end user

evaluation the results were cross referenced with each other. Not all
checkpoints could be tested against the results of end user trials due to the
amount of time that would have taken. It was also noticed that not all
checkpoints were applicable to the handset that was used for the
evaluation. Therefore it was necessary to catalogue how many
checkpoints were applicable to this evaluation before the matching process
was performed. Some of the checkpoints would not be applicable as were
dependent on the phone having that functionality (e.g. the checkpoints
which relate to joysticks could not be evaluated if the phone doesn’t have a
joystick). Table 1.0 in Appendix Five shows the number of checkpoints
broken down by each hardware related heuristic principle and table 1.1
shows the number of checkpoints broken down by each software related
heuristic principle.
When the applicable checkpoints had been identified the results from the
heuristic evaluation could be cross referenced with the results from the
end user evaluation. This showed how many of the applicable checkpoints
were tested. The percentages can be seen in Table 1.0 for the hardware
heuristics and table 1.1 for the software heuristics in Appendix Six.
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3.3 Procedure adaptations

The procedure was adapted slightly for the participants with learning
difficulties as it was recognised that this user group may struggle with
completing a questionnaire on their own and may not be able to use a new
mobile unassisted. Therefore for this user group, the questionnaire was
amalgamated with the interview scenarios and both were completed at the
same time. As well as this, the participants were presented with a set of
pictures representing the rating scale. This was done because there was
concern that the participants might not recognise or have the ability to
differentiate from the text based version (“very easy”, “easy”, “neither
easy nor difficult”, “difficult” and “very difficult”).
3.4 Project limitations

There were a number of limitations that had an effect on the project, of

which; the equipment was possibly the most influential factor. At the start
of the project it was hoped that one of the mobile phone operators would
supply the project team with up to twenty handsets. However, this was
not possible so RNIB purchased six. Whilst these handsets were sufficient
it meant that the timing of the evaluations and the time users were
allowed to use the phone was limited.
Another limitation was the languages that were available on the evaluation
phones. The phones only had three languages built in, English, French and
German. As some of the participants were not based in the UK this was an
issue. Linked to this factor was the language of the screen reader needed
for blind and partially sighted users in Cyprus. It was not available in
Greek for the blind Cypriot participants. Therefore the Cypriot participants
were selected on the basis that they spoke English so they could
understand what the screen reader on the mobile was saying. However it
is known that this may have an effect.
The third limitation was the access to participants. The main user groups
that were affected in this instance were the deaf and hard of hearing
participants and the people with limited dexterity. Although a broad
recruitment drive was conducted to obtain participants from all user
groups, only a very small number of deaf and hard of hearing and people
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with limited dexterity responded who could actually take part in the
timescales allocated.
The final major limitation was the timescales. The project had to be
completed inside a six month timeframe and this included a trip to Cyprus
and Portugal to complete the European part of this evaluation.
Financial Times: Nokia looking at new marketing strategy before Windows

Phone 8 launch
If something doesn’t work, the best thing to do is to blow it up and re-build it.
With that in mind, the Financial Times is reporting that Nokia is looking to
change its marketing tactics with the launch of its first Windows Phone 8
smartphone. The new plan is to enter into a partnership to offer a new
smartphone on the network of just one or two European carriers. The
financial newspaper says that Nokia has had secret negotiations with a
number of carriers including France Telecom, but no deal has been agreed to
at this time. Another carrier that could get involved is Deutsche Telekom.
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0
Nokia was happy with the results of using exclusivity with the Nokia Lumia 900 on
AT&T
Nokia’s current marketing strategy calls for the Finnish based handset
manufacturer to flood all distribution channels with phones, getting them into
as many hands as possible. The new plan calls for entering into agreements
with a carrier or two that would support Nokia’s models. Initially, Nokia
would reach a deal with no more than one or two networks in Europe, and
will offer the operators a financial stake in the success of the phone. That
move is expected to give the carriers an incentive to push the new model and
promote it heavily. Nokia used this strategy with the flagship Nokia Lumia
900 model in the U.S. with AT&T and was happy with the results even
though only 330,000 units of the Lumia line were sold in the States. That
figure included sales of the Nokia Lumia 710, sold exclusively in the U.S. by T-
Mobile.
Those familiar with the plan say the idea is to recreate the excitement that
took place prior to the exclusive launch of the OG Apple iPhone in 2007. For
example, in the States the original Apple iPhone model was exclusive to
AT&T which some say led to the heightened demand for the model.
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Case study
NOKIA Strategies to get hold of lost market share with the latest product launch
-Marketing Objectives, Channel, Target Audience and more ( Case Study Nokia )
Today more than ever King Midas lives within each one of us. Midas was a King
who wished that everything he touched changed into gold; he truly symbolized the
POWER of TOUCH. Nokia recreated the famous Midas Touch. It gave the youth
the power to change the music programming of his favorite radio station by a mere
TOUCH.
The power of this MIDAS TOUCH has reached the global platform with this
innovation winning the award of the “best radio innovation” at Cannes Media
Lions 2009
Marketing Objective:
Today, music on mobile phone has been revolutionized from a passive experience

to an active social platform. For youth, music on mobile is an expression of
themselves. Conventional route of passive music experience led to no single player
dominating theMusic phone category.
Nokia’s XpressMusic launch into 2009 was also its first ever touch phone and was
slated to be the “I-Phone killer”. Touch mania had taken over the Indian cellular
phone market with the launch of I-Phone. Research revealed that the TOUCH
experience of an I-Phone was a bigger trigger to purchase than its Music
capability. Though feature to feature, Nokia 5800 was a much better choice; we
had to provide a superior touch experience to be in contention.
The brand wanted to position itself amongst the youth as a premium music device,
with an all new touch interface. The objective was to engage the youth with the
device giving an experience of Touch to Music.
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Target Markets/ Audience:
Nokia 5800 Xpress Music was a part of

the premium/ multimedia mobile phone
segment. The activity was executed in the
6 big metros of India viz. Mumbai, Delhi,
Kolkatta, Chennai, Hyderabad &
Bangalore which contributed to 80% of
the sales in this segment. The target
audience for the brand was the newly
emerging uber cool youth brigade in the metros, aged between 15-34 years, for
whom technology was a way of life.
Innovative Media Solution:
The brands proposition was “Touch, Play, Share your favorite Music with Nokia
5800 XpressMusic. The strategy had to integrate “XpressMusic” on a platform that
transforms an individual passive moment into an active expression of emotions
through music.
Channels:
Research has revealed that 65% of music consumption for youth happens out of
home. Radio has created a revolution in India as a major source of entertainment
linked to music. FM radio has gained popularity amongst the youth of today.
Within the specified target markets 75-80% of the radio listenership happens out of
home making it an apt medium for the amplification of Touch, Play, Share. The
explosion of malls in India had created an effective touch point where youth spent
a considerable portion of their leisure time.
Synergy between out of home activation & radio was created to heighten
participation of youth
Insight:
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The power to change something with a mere TOUCH is what the Youth of today
desires the most. What if I could change the ending of a movie? What if I could
change a song? What if I could change everything around me? Questions that
express this feeling. What if you had the power to change your favorite radio
station, just by a touch?
Idea:
The idea was to let a youth run his favorite station, in his way, where he could play
around with his list of songs & share this feeling of change with millions of other
listeners. For the first time ever, the whole programming of the Radio Station was
loaded onto a huge touch screen replica of the Nokia 5800 XpressMusic instead of
the regular studio. The radio station was transported from the studio to the
fingertips of its listeners. The listeners were asked to come to a mall on a specific
day and time every saturday for five weeks.
They were pleasantly surprised to find that their favorite radio station had
transformed into a touch screen replica of Nokia 5800. The music playlist of the
radio station was touched & altered by the listeners themselves & what they
touched went live on air signifying the POWER of TOUCH. Special programming
was built around this theme.
People who couldn’t make it to the venue would call up the station and ask their
acquaintances to touch a song on their behalf. The phone was also displayed at the
Nokia XpressMusic station and free demos were provided to people who gathered
for this unique experience.
First time ever 10000 RJ’s for a single station:
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Nokia 5800 XpressMusic station had close to 10000 Radio Jockeys (RJ) every
time it went live i.e. every Saturday between 5-9 PM. Conventionally a radio
station has one or two RJ’s but the whole process of experiencing the product
transformed everyone who touched the XpressMusic station into an RJ as he
played his own song.
Along with the whole Touch, Play, Share experience of running the station-THEIR
WAY, they also took a full demo of the product, talked about the brand and its
features. There were 55000 brand demos with 6000 registering to buy it .There
were 10.1 million listeners who were a part of this station. This created a
perfect rendition of the brand proposition of Touch Play Share.
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MARKETING STRATEGIES OF NOKIA

Marketing Strategy for Nokia

* Appropriately identify, collect and use primary and secondary data

* Produce a clear analysis of the external influences affecting the

* Complete a realistic rationale for the development of a coherent

* Show a full understanding of a marketing strategy for Nokia with a

* Produce a full, well-balanced marketing strategy that reflects

Introducing the product

Nokia is a communications based company, which focuses on mobile

Competition in the market

With all this technology available in the communications market it is

1. Nokia 37.2% (34.7% 1Q02)

2. Motorola 17.3% (15.5%)

3. Samsung 9.8% (9.6%)

4. Siemens 8.5% (8.8%)

5. Sony-Ericsson 5.2% (6.4%)

There are many priorities within a business, but in a marketing

1. Customer satisfaction: Market research must be used to find out

2. Customer perception: this is based on the images consumers have

3. Customer needs and expectations: This is anticipating future

4. Generating income or profit: This principle clearly states that

5. Making satisfactory progress: Organizations need to make sure

6. Be aware of the environment: An organization should always know

Environmental social and ethical factors- some businesses view profits

Nokia have managed to be quite environmentally friendly and have not

Technological- In the communications market technology is perhaps the

Strength (internal factors)- Is looking at the companies current

Weakness (internal factors)- This is basically looking at where the

1. They are currently aiming their products at a saturated market

2. Their wage costs are forever rising.

3. Higher import charges have now been put into place.

Opportunity (external factors)- This is the area in which Nokia can

2. Using innovation to re-invent their products, change and develop

Threat (external factors)- This is looking mainly at the competition

For an existing product it is often useful to draw up an Ansoff's

· Product development and

Market penetration- the aim of market penetration is to sell existing

1. Change the pricing scheme (for example, penetration or competitor

3. Start up a different advertising campaign or consider changing an

Market development- To complete market development successfully, Nokia

· Researching and selling to a different market (in case of saturation

Product development- This area of the Ansoff's matrix involves keeping

Diversification- This refers to developing technology that offers

· Consumer behaviour- How do customers react to advertising? Whether

· Buying patterns and sales trends- Organizations need to look at how

· Consumer preferences- What customers are looking for in a product,

· Activities of competitors in the market- Nokia need to examine how

Sources of marketing information

1. Quantitative data refers to data presented in numerical form,

2. Qualitative data is the information concerning the motives and

The two main sources of market research information are primary

Methods of collecting primary data:

· Face to face survey

· Open ended interview

Methods of collecting secondary data:

· Specialist business organization, for example, Mintel or Neilsons

1. The types of goods customers buy

2. How much they buy

3. How often they buy