The Product And Service Attributes Marketing Essay

Published Date: 23 Mar 2015

Nokia Corporation (Nokia) is founded by Knut Fredrik Idestam. Before the company officially named as Nokia, it went through three parts:

1865 - Nokia Wood Mills that manufactured an advanced form of paper.

1898 -Finnish Rubber Works that manufactured lucrative rubber.

1912 - Finnish Cable Works that worked on the telephone and telegraph wires.

After World War I ended, Finnish Cable Works purchased the other two companies. Until year 1967, the companies combined and came under the banner of the modern Nokia Corporation.

ii) Nature of business

Nokia Corporation (Nokia) is operating in the mobile industry. Nokia Company develops a series of mobile devices with technology that allowed people to experience imaging, music, games, navigation, video, and more. Nokia also provides equipment, services and solutions of networks that enable communications through Nokia Siemens Networks.

iii) Mission and Vision

'Connecting People' is the vision of Nokia Company. This means that by providing them with internet devices which would facilitate connection and communication, it can ensure that all the people in whole world are. Through the internet or through the communication technology over the phone, people can communicate people at any time and everywhere. On the other hand the company's mission is 'Build large mobile products to make billions of people to get connected everywhere'.

iv) Objectives and strategy

The main objective of Nokia Company is to get profit. Second, Nokia Company wants to become the champion in the mobile and electronic industry of the world. Also, Nokia Company wishes to have a good relationship with the public, to build a good reputation for the company. To achieve these objectives, Nokia Company had developed the strategies that can be referred in the mission statement and vision statement. In the mission statement, Nokia Company states that it wishes to create a balance in the compete interest of their stakeholders. Second, it hopes to guide and focus on the decision making. Then, to create the innovation, Nokia Company will motivate and inspire their employees.

v) Target Market

Human are the most important capital of Nokia Company in their way to design the mobile devices, by analysis the needs and wants of them. Thus, Nokia Company actually having all age groups people as their target market such as the teenagers, working men and women, businessman, housewives and old people. They design different features that suitable for the different age of people and thus they are operating globally.

2) The Marketing Mix Strategies

2.1 Product Strategy

Product Background

Nokia 5800 XpressMusic is Nokia's first touchscreen phone in the phone market. It also introduces the Media Bar for entertainment and music such as videos, photos and tracks. The Contacts Bar highlights four favourite contacts on the home screen. The integrated music players includes 8GB memory for up to 6000 tracks, 3.5mm jack, graphic equalizer, and surround sound stereo speakers. The history of recent phone logs, emails, text messages, blog updates and photos consumers can track with a single touch. . It use a 3.2-inch widescreen display capable of 30 frames-per-second recording and playback. It uses a Carl Zeiss lens, built-in 3.2-megapixel camera, videos and photos can be shared via Share on Facwbook, Flickr or Ovi. Users also can use a virtual computer-style, a virtual alphanumeric keypad, QWERTY keyboard, a pen stylus or plectrum to enter text.

Branding

The phrase that Nokia use is "Connecting People". Goal of Nokia is to provide great mobile products that enable billion of people in whole world to enjoy what they have been offer for human life. The company's challenge is to achieve the goal in an increasingly dynamic and competitive environment. Nokia helps to fulfill the basic human needs for social connections and contact. "The meaning has now grow connecting, once the connection is just through SMS text or call, but now was changed," said Andrea Facchini, Marketing Director of Nokia Indonesia. According to him, the Internet connection is became one of the needed of people to build a network of social media to communicate with people without restrictions.

Packaging

Nokia 5800 XpressMusic is packaged in a small compact box as to avoid the wastage of resources. However, the box is designed to several layers as to protect the accessories from external damage and distinguish the accessories. Besides, the front and back of the phone is covered by a protective covering as to protect the screen and the phone body.

Product and Service Attributes

Nokia 5800 XpressMusic is the first touchscreen-equipped S60 device with a touchscreen. It is composed by plastic, and keeps going better than most after a beat. Nokia 5800 XpressMusic has a longer battery life than the other phone, which can supports talk time up to 8 hours 45 minutes for 2G, 5 hours talk time for 3G, and music play up to 35 hours. In addition, Nokia 5800 XpressMusic consists a few buttons for call, menu, power, volume, and screen lock which is finger-friendly. By convince the more customer to purchase the product, Nokia provide warranty claim for the customer who faces the problem of product affected. The affected product will be repaired without any term of charge. The warranty period for Nokia 5800 XpressMusic is twelve months or a year.

Product life cycle

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Introducing Stage: Nokia 5800 XpressMusic is the first touchscreen that equipped S60 introduced on January 2, 2008 and released on April 27, 2008.The profit is negative at this stage.

Growth Stage: Nokia 5800 XpressMusic is one of the smartphone in the world that offer at the low price. Therefore, Nokia 5800 XpressMusic has being successfully beaten up all the strong competitors company in the world such as Apple Company, Samsung Company, and etc. On 16 April 2009, according to Nokia's sale report shown that they had shipped 2.6 million units in 3 months, and the smartphone launch in late April 2008, is more than 3 million units of the cumulative shipments¼Œover 7.5 million units had been sold.

Maturity Stage: Nokia's 5800 XpressMusic had successfully established in the market. Nokia's 5800 XpressMusic has stably in the mobile phone market for nearly one year.

Decline Stage: In 16 August 2010, Nokia 5800 has been finally discontinued. That means there would be no fresh stock arriving from the company to market. Those shopkeepers who have already got stocked themselves with the unsold pieces of Nokia 5800 will continue selling it in the market but there would be no fresh stock arrived. Product life cycle for 5800 ended within two months until 20 October 2010.

2.2 Pricing Strategy

2.2.1 Factors affecting pricing decisions

a) Internal Factors Affecting Price

Nokia company operates in oligopoly market, where the company faces a strong competition with other mobile phone company. To stand out from the strong competition, Nokia 5800 XpressMusic offers a lower price than other mobile phone. The objective of Nokia company offer the lower price for Nokia 5800 XpressMusic is to increase its market share. Thus, by increase the market share, Nokia can enjoy a stable market in future.

b) External Factors Affecting Price

Nokia is a mobile phone company that operates in an oligopoly competition market. Nokia faces a sharp competition with other mobile phone company such as Samsung, Panasonic, Sony Ericsson, Motorola, Siemens, Toplux and Sagem. These company compete with each another by promote the differentiated or homogeneous products with different price. Nokia 5800 XpressMusic provided a good quality performance in music playing rather than other mobile phone.

2.2.2 New Product Pricing Strategies

Just similar with other technology product, Nokia using market skimming for Nokia 5800 XpressMusic new product pricing strategies. For the first time Nokia Company introduces the Nokia 5800 XpressMusic to the market, the price set was higher, which was $299.95. This is because Nokia 5800 XpressMusic did not have to compete with other company for this particular product during that period. At the same time, Nokia wan able to earn a maximum profit in that period. After a few months, the price of Nokia 5800 XpressMusic started to drop as there are more new products had been introduced by other competitor company which have potential to compete with Nokia 5800 XpressMusic.

2.2.3 Product Mix Pricing Strategies

•Product Line Pricing

Nokia is actually active on the entire mobile phone market, and targets high volume sales in all categories, by launching Basic series, XpressMusic series, Business Series, Fashion Series, Premium Series, Communication Series, Mobile Computer Series, Multimedia Series, Mobile Gamming, and so on. For Nokia 5800, it is targeting on mid range young people who are interested in touchscreen, because its price comes cheaper with its competitor that time, such as Apple i-phone and HTC touch. Nokia 5800 has comes out with 5800 Navigation and XpressMusic. For Nokia 5800 Navigation Edition, it based price was $328.46, while the based price for Nokia XpressMusic series was $299.95.

2.2.4 Pricing Adjustment Strategies

In discount and allowances pricing, Nokia 5800 XpressMusic offer the seasonal discount. As we know that, the Nokia 5800 XpressMusic that offer in the market is keep dropping as the time going, this model started to out of season and then the price started to drop. From here, we can see that Nokia Company has applied the seasonal discounts through this product.

International pricing has been applied in Nokia 5800 XpressMusic which that in year 2008, Nokia 5800 XpressMusic at Russia was $350, at Pakistan was $378, and at Vietnam was $385. The prices of this model are different because of the costs that are categories under international pricing. The costs like shipping cost, taxes cost, and transportation cost that had affected the price of Nokia 5800 XpressMusic . All those costs can affect the price whether it is higher or lower in different countries.

In conclusion, Nokia 5800 XpressMusic has uses discount and allowances pricing and international pricing strategies to sell this product.

2.3 Place Strategy

2.3.1 Marketing Channels/Distribution Channels

Wholesaler channel is used by Nokia to deliver the product to consumers. Firstly, the wholesalers will receive the finish goods by manufactured of Nokia. After that, the wholesalers will buy in large quantity of products such as Nokia, Motorola, Sony and others. After buy, wholesalers will distribute these products into a smaller quantity and resell it to the retailers. Finally, the retailers get the products from wholesaler and resell it again to consumers. By using this wholesaler channel to deliver superior value is more efficiently to compare with other ways. All intermediaries included consumers and Nokia can easily simplify their jobs through this channel.

Retailing

In trade market, the retailer buys in huge quantities of products or goods from supplying firms or manufacturers. The goods or products was directly or through by wholesaler and then sells it to the general public or end user customers in form of individual items or small quantities. The supply chain was end by retailers. The marketers notice retailing as part of their whole distribution strategy. Also that, Retailing is a distribution channel function where an organization buys products from supplying manufactures or firms, and then sells to consumers directly.

Nokia have over than 156 Nokia branded retail stores in whole Malaysia and even more than 650,000 retail outlets globally. The retail stores will be a area or place for customers to examination out new Nokia models and study about new technology or service. "Consumer focus is at the heart of our strategy and the Nokia Flagship Stores enable us to increase our focus at the retail level," Cliff Crosbie, Director, Global Retail and Trade Marketing explained." Through the Flagship Stores we want to develop a close one-to-one relationship with consumers, listen to their feedback and find valuable consumer insights." In Malaysia, Nokia mobile phones have being sell in the department stores of the shopping center, hypermarket and supermarket. There also have few retailer shop of Nokia such as Retailer & department shop in Berjaya Times Square, Boulevard Shopping Mall in Sarawak.

Wholesaler

Wholesaler is the channel intermediary that takes title to goods it handles where buy products from supplying firms with the primary intention of redistributing and then distributes these goods to retailers or other distributors. Wholesalers help Nokia to promoting and selling the products like present the latest product to the customers. They functions as batch breaking, the wholesalers of Nokia buy larger quantity of products and distribute into smaller quantity to sell it to their customers. Besides that wholesalers of Nokia also provide market information for their customers.

The product lines of Nokia can be classified as depth and width by wholesalers. But for wholesalers of Nokia it can only be classification as General Merchandise - Wholesalers carrying a very wide line of products fall into the general merchandise wholesaler category. The wholesalers incline to market into smaller general merchandise retailer like general store or smaller convenience such as LowYat Plaza that in Kuala Lumpur established commercial shopping centre specializing in electronics and IT products. The purposes of wholesalers are selling to the retail industry, and in most cases, require a strong long term retailer-wholesaler relationship be set up.

2.4 Promotion Strategy

2.4.1 Advertising

The promotion strategy statement is one of the important elements of the brand's annual marketing plan. Nokia's company have use many advertising to promote or encourage audience to take some action to their product, they advertise their new product through newspapers, internet, radio, magazines, outdoor and television. For example, Nokia used the power of website such as www.nokia.com and though facebook to promote their product. Also that, Nokia's company has sponsored many cultural activities, such as sports events and sport teams to promote their brand. Film stars and player are have been hired for the promotions of Nokia 5800 Xpressmusic.

Though the advertising, customer can easily get the full information of new product of Nokia, and the different types of advertisement also will persuade and attract customer to buy and pay attention to the Nokia product.

2.4.2 Sales Promotion

Nokia's company had used many type of sales promotion to introduce its new product and persuade some potential customer to buy their product such as Nokia 5800 Xpressmusic phone. For example, they will give the sales promotion gift as free shipping 100 pieces fit for Nokia 5800 Xpressmusic phone case plastic protective casing, original new, sharp version. They also promote this product quad band cell phones high quality plus 2GB TF card. Also that, they also promote 100% original mobile phone LCD display screen for this product.

In addition, they give sales promotion to the first 100 buyer a BH604 headsets and also have the chance to win BOSE home theaters for 5 consumers who have preordered on 15 JANUARY 2009.

2.4.3Public relations

Nokia 5800 Xpressmusic is using public relations to promote the newly launched product in worldwide, the management function which assess public attitudes to identify the procedures and policies of an organization or individual with the public interest, and executes some program of action to gain the public acceptance and understanding.

They have used many public relation activities to promote their new product, one of their public relation campaign are launching an official video. For example, on 21 NOVEMBER 2008, a video which take 20 minutes review of Nokia 5800 Xpressmusic was launched. The categories of this video includes, Apps, Reviews, Touch screen and Videos. Also that, they have uploaded some sample photos that taken by camera of Nokia 5800 Xpressmusic on 17 NOVEMBER 2008, to show the quality of this phone's camera.

In addition, Nokia launched some activities in Asia, so that it keep up with the brilliant image of the Nokia's company to enhance the brand equity. For example in Hong Kong on 24 NOVEMBER 2008, Nokia held a launch event featuring three famous Hong Kong celebrities, they are Raymond Lam Fung, William Chan and Charlene Choi from Twins. On 09 JANUARY 2009 in Malaysia, Nokia had launch event that took place at Pavilion, which is the trendiest shopping mall in Kuala Lumpur.

3) Market Opportunities

3.1.1 Android as Nokia operating system

As technology become more advance over the days, different operating system came out with different attractive features. Nokia 5800 XpressMusic is using Symbian Operating System S v9.4, Series 60 rel. 5 since November 2008. In 2012, Nokia came out with its new model Lumia 920 but it has disappointed the markets. Nokia's share has lost 25% of their value in two sessions. They are recovering, but are still below the pre-launce level. The problem of Nokia is not its hardware, but the operating system. The solidness and reliability of Nokia's handsets are the best available these days. However, choosing Microsoft's Windows Phone platform as operating system, replacing its old Symbian platform was a huge risk, as there is no other company that are able to take the platform core.

Nokia should study their market carefully. As the whole smart phones market is being dominated by Google's Android and Apple's IOS, Nokia can come out with smart phones running on Google's Android software for thousands of consumers in the markets who often still choose Nokia's brand. Android is a cheaper operating system but gives its users awesome technology while IOS is a more expensive operating system. Both operating systems are far better than Nokia's operating system, Symbian (W operating system). This is because Symbian is not user friendly. Nokia is also unable to find competitive software for Android and IOS. Hence, the effective way for the company to get out of the problem should be to adopt Android platform.

European carriers said that Nokia handset would be sold off easily if it ran Android. With Android operating system, Nokia may reduce its product price and give more features to attract more customers as Android models cost below $100 while the Windows Phone costs around $200. This may be work as Nokia's quality and customer service are already good. Many people will be quite happy if in face Nokia joins Android camp and starts manufacturing high-end devices. It is said that this could be a wise strategy for Nokia but by concentrating on Android instead would imply admitting battle for Elop's Microsoft strategy.

3.1.2 Prospective market growth of the Nokia-Android

Samsung has India's largest market share, which is once belonged to Nokia. With Android phones, Nokia may be able to recover its lost market share that cause by competition from Android and IOS phones. It also enable Nokia to have the capability to come out with higher quality phones as it just needs a better operating system. On the other side, there is highest growth in markets such as China and Latin America for Android.

Secondly, producers still consider Windows Phone as a distant third choice after Android and iPhone. It did not offer the advantages that iPhone and Android offers. Windows Phone is still just 'copying' Android when it comes to apps. It is said that Microsoft has hundred thousand apps, but it does not has the benefits of its smart phones competitors. Android offers far more flexibility, like playing a keyboard or the home screen. This is really important to Nokia, which has expertise with mobile user interfaces and different markets' culture all around the world. With powerful and awesome apps offered by Android, people will still want to buy Nokia phones.

Nokia might feared of being like Samsung and Motorola, which are also ran to established Android players. But the implication was being number one in a contest that no other else wanted to succeed. Windows phone still remains as a distant third. Developers will continue to develop for Android smart phones. Microsoft's crash and map deal will no able to cover the cost of its losing developers. Hence, by adapting Android, Nokia will not only boost up its market growth but also minimize its cost.

3.2 Malaysian having higher income nowadays

Tan Sri Nor Mohamed Yakcop said Malaysian economy has continued to grow and there is a raising per capita income since 1970 which has gone up significantly. Malaysian is having more income compare to the previous year. Most of the Malaysian having high education, so when they are graduated they can find the job with higher income. The per capita income had increased from RM1, 159 in 1970 to about RM28, 000 annually at the end of 2011.

As we all know, there are many benefits by using smart phone. It can keep us organized as it act as personal organizers, electronic diaries, contact lists and automatic reminders. Besides, we can use it to take notes, review and edit appointment, contacts and documents while you are on the move. Next we can connect internet for e-mail and web access on the move, or connect to computer network to access relevant data to stay in touch with the business. We can segment our customer through psychographic segmentation and demographic segmentation. Nokia 5800 XpressMusic is suitable for all people whether business man, household, student and so on. The price for Nokia 5800 XpressMusic is around RM500.00. It is cheaper comparing to others brand's smart phone.

When Malaysian is having higher income, they can hold a smart phone where can give convenience and efficient function for them. Everyone can have a smart phone with lower price and give a better performance is having Nokia 5800 XpressMusic. Nokia slogan is connecting people. There are many competitors in the market such as Apple, Samsung, Blackberry and so on. Each of the competitors is influence to Nokia customers. By distinguish with them, Nokia is more focusing on the camera. The camera for the latest version is giving 41 Megapixels. This can make Nokia' customers more loyalty to the brand and not buying others brand product.

4) Recommendation

There are several recommendations for Nokia's company to improve their sales or services.

First, is about the pricing strategy. As we all know that Nokia Corporation offer the lower price for the customer to purchase their products. We hope that the company can use promotional strategy by offer promotional to create buying excitement and urgency. For example, the warranty period of the Nokia 5800 just is one year and they can offer the customer longer warranties period such as half a year to attract the customers to purchase this product. In addition, they also can promote 100% original mobile phone LCD for this product or also promote this product quad band cell phones high quality plus 2GB to benefits the customers.

Secondly, is concerning about the place strategy. Nokia uses wholesaler that can easily simplify their jobs to deliver the product to consumers. However improve the place strategy, Nokia can use the distribution channel by establish an internet system deliver the product easily to business or consumer user. With this channel, Nokia will move the services and goods it produces to ultimate users. This can facilitate the exchange process by cutting the number of contacts necessary. The wholesaler, even retailer can mandate Nokia's product easily through internet. By this internet system, retailer no need dictate the product from wholesaler and this can decrease the cost of sales of the product. Manufacturer will substantially improve its income. With this, Nokia phone can be sold all around the world and liable found by customers.

Lastly, Nokia's company should focus on their promotion. They can do more advertising and uses website to attract customers to buy Nokia products because now all the people were using internet. Nokia's company can provide more sales promotion to buyers such as Nokia can recover consumer's old Nokia mobile phone for Rm200 when consumer buy Nokia 5800 XpressMusic; consumer buy 2 or more Nokia 5800 XpressMusic will get a lottery to have a chance win a car or have a trip. Also that, Nokia can uses direct marketing such as use direct-response TV like short commercials, 30-minute-plus infomercials, and home shopping networks that allow customer to respond by contacting the provider with questions or an order. With this system of marketing, Nokia will communicate directly with target customers to generate a response and a transaction.

5) Conclusion

Nokia Corporation is a company which is player in mobile industry that makes a range of mobile devices with services and software. They build large mobile product with internet device to facilitate and communication for people at everywhere.

Nokia 5800 XpressMusic is the first touchscreen series phone in Nokia's company. Although Nokia 5800 XpressMusic are less sales compare with Iphone or Samsung, but it still have a potential market in future because it sell at lower price is suitable for all the people who have lower income. Also that it has some advantages such as solidness hardware and reliability of Nokia's handsets are the best available compare with other brand phone.

The Marketing mix strategies such as product, price, place and promotion strategy are really important to the company which need to develop become a strong company. They can

use the 4 type of strategy to target different kind of people. If Nokia's corporation have a strong strategy based on their new products, get a high sales or profit is not a problem.

In a conclusion, we know that a company which must have innovative or creative strategy or ideas to their new product, only can attract customer buy their product. Because now almost people are enjoy the innovative or creative product, only the differential product can satisfy them.