Annual Marketing Plan Nokia Essay Example | Topics and Well Written Essays - 750 words

Annual Marketing Plan Nokia - Essay Example It is evident from the study that the cell phone industry is becoming increasingly competitive as different competitors are coming up with newer products with the aim of taking more and more market share. The needs of the customers have also become sophisticated and now they are demanding better features. In the midst of all this, Nokia is constantly losing market share to rival companies. Apple, Google, HTC, and Samsung are all making inroads into the cell phone industry. These companies have challenged the market leadership of Nokia and in turn have reduced the sales of the company significantly. The situation demands that Nokia acts immediately if the company wants to remain active in the market for a long period. Analysts have suggested lower pricing as the main reason behind company’s low profits. Nokia, in the wake of all the new, had to lower prices in order to compete. This had a toll on the profits of the company. On the other hand Apple and Google are already shrinki ng the market by targeting the youth. The overall situation is developing to be disastrous for the company. Nokia was once the 5th most valuable brand of the world, but now it has plummeted to 79th. This is evidence of the declining situation of the company. Nokia has to invest in its marketing campaign vigorously in order to retain its position in the market. The problem is lower pricing and that can be solved by creating a brand value. Nokia has to create a sense of value for the customers and only then it can justify its higher prices. The product line of the company is the widest in the industry so the problem is not with the products; rather it is with the marketing strategy of the company. The main marketing objective must be to enhance the brand image of the company in the eyes of the users. The main concern for the company should be the emerging markets of Asia where population is growing. The younger population of Asian markets should be targeted by Nokia through marketing campaigns and features of different cell phones should be communicated to the youth. The main aim of the company should be to do away with price based competition with smaller brands. Pricing should be higher than smaller brands and lower than Apple and Google. This pricing can attract major chunk of the market and Nokia should attempt to cash in this market. The strategy of Nokia should be to provide value to the customers beyond lower pricing. People buy Apple even though it is highly priced just because they expect greater value in return. Nokia is also developing cell phones that are of superior quality but it is essential to communicate this to the customers. The company is currently lowering its prices in India as compared to the prices of similar models in other countries (Daga, 2007). Actually the strategy should be to create a sense of higher quality and then charge a premium for that superior quality from the customers. A total of change in company’s marketing dynam ics is needed. Nokia should adopt a more youth oriented approach in its marketing campaigns. The company has very recently announced smart phones with Windows. The company is also changing its marketing appeal with more focus on the younger population (O’Reilly, 2011). Similar tactics should be used to gain more market share all around the world. Nokia should design similar specific campaigns for different models. Customers should know that Nokia is also a valuable brand like Apple and Google. The new Windows smart phones of Nokia are also not being sold for at least a couple of months outside United States (Velazco, 2011). This is a good step that will enable Nokia to focus on US markets. The company can also gain valuable customer insights before going to international markets. Nokia will have to invest heavily in its marketing campaigns. The products should be advertised heavily using social networking