3- Nokia's marketing Strategy.pdf April, 2014 | Page 3

Introduction
Nokia ruled the smart phone world until the introduction of iPhone in 2007, which changed the current
market trends. With an aim to regain its position as a market leader, Nokia entered in to a partnership
contract with Microsoft. Also, it launched a new series of smart phones called the Nokia Lumia, in order
to regain its competitive position.
However the main objective of Nokia is to regain its lost market share and achieve its number one
position in the smart phone market.

Marketing Mix
The term marketing mix is synonymously used for the companies four P’s – Product, price, place and
Promotion. It is through these components that companies differentiate themselves from the competitors.
Product:
Nokia’s smart phone product line includes series like Nokia Lumia, Nokia Asha and other feature phone
series. These series differ in product designs like touch screen, classis button pad or slide sets. All Nokia
products vary in features and are an extremely user friendly.
Price
Nokia produces mobile phones for all segments to meet every individual’s social need. It uses a push
strategy, where the company promotes its products through retailers to stimulate demand. Another pricing
strategy used by Nokia is price skimming, where the product is launched at a higher price and then th
price is gradually decreased.
Promotion
Nokia promotes its products through advertising on television, newspapers, radio and billboard.
Place
Nokia products are supplied in the market using distributors. Other channels include mobile operators and
retailers in the industry.

Competitor Analysis
Nokia’s biggest competitors are Apple and Samsung. Apple with its iPhone has become the world’s top
brand for smart phones. Similarly, Samsung is appearing to be a big threat as they are all part of the
Android phone family.
Apple Inc.
Apple entered the European market in 2007. Since then it has been very successful, accounting for 25.3
percent market share in Europe. Apple has a diverse target market which caters to kids, adults, working
class and old age. Apple products are extremely user friendly and are currently the most expensive

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