Supervisor: Livia Marian

Department of Business Administration

Examination number: 402966
Number of !ara"ters: ##$2%2



Is Nokias performance in the
Smartphone market afected
negatively by marketing strategy
decisions?
Ana&'sis of mar(etin) strate)' "!oi"e and imp&ementation for
No(ia Lumia in Europe
Aar!us S"!oo& of Business and So"ia& S"ien"es
Apri& 20*+
2 of
34
Table of Contents
Abstract ...............................................................................
.................................................. 4
1. Introduction
............................................................................................
........................ 6
1.1 Problem statement
...................................................................................................
..........7
1.2 Scope/Delimitations
...................................................................................................
........8
1.3 Terminolo!
...................................................................................................
.......................8
1.4
"et#odolo!...............................................................................
...........................................$
2. %o&ia's "ission and (ision
........................................................................................ $
3. Internal anal!sis
............................................................................................
............. 11
3.1 )*er*ie+ o, %o&ia
...................................................................................................
......... 11
3.2 "ar&etin
mi-.............................................................................................
....................... 11
3.2. !rod"ct
...................................................................................................................
........................
3.2.2 !rice
...................................................................................................................
.............................. 2
3.2.3 !romotion
....................................................................................................................
................. 2
3.2.4 !lace
...................................................................................................................
.............................. 2
4. .ompetition Anal!sis
............................................................................................
.... 12
4.1 )*er*ie+ o, %o&ia's competitors
................................................................................ 12
4.. #pple Inc
...................................................................................................................
..................... 2
4..2 Sams"ng
...................................................................................................................
...................... 3
4.2 Porter's ,i*e ,orces
...................................................................................................
3 of
34
........ 14
4.2. $hreat of entry
....................................................................................................................
........ 4
4.2.2 $he po%er of s"ppliers and b"yers
................................................................................... 4
4.2.3 $hreat of
s"bstit"te...................................................................................................
................ 4
4.2.4 &ivalry among e'isting competitors
.................................................................................. 4
/. S0)T anal!sis
............................................................................................
................. 1/
/.1 Strent#s
...................................................................................................
.......................... 1/
/.2 0ea&nesses
...................................................................................................
..................... 1/
/.3
)pportunities..............................................................................
....................................... 16
/.4 T#reats
...................................................................................................
.............................. 16
6. Product 1i,e
.!cle.....................................................................................
.................. 17
6.1 Introduction
Stae..........................................................................................
.................. 17
6.2 2ro+t# Stae
...................................................................................................
................... 18
6.3 "aturit!
Stae..........................................................................................
.......................... 18
6.4 Decline Stae
...................................................................................................
................... 18
7. Introduction Stae "ar&etin "i- o, 1umia $23 and
823............................ 18
7.1
Product......................................................................................
........................................... 1$
7.2 Price
...................................................................................................
................................... 23
7.3 Promotion
...................................................................................................
........................ 23
7.4 Place
...................................................................................................
................................... 21
8. Strate! Anal!sis o, 1umia 823 and $23
............................................................ 21
4 of
34
8.1 Porter's 2eneric
Strateies...................................................................................
......... 22
(.. )o%er cost
....................................................................................................................
................. 22
(..2 *iferentiation
....................................................................................................................
......... 22
(..3 +road
target.........................................................................................................
......................... 23
(..4 Narro% target
....................................................................................................................
.......... 23
(.., !orters -eneric Strategies criti."e
................................................................................... 23
(../ Nokias strategic
decisions.....................................................................................................
23
8.2 Smit#'s Di4erentiation and Sementation Strateies
.......................................... 24
(.2. Segmentation strategy
............................................................................................................. 2,
(.2.2 *iferentiation strategy
........................................................................................................... 2,
(.2.3 Nokias Strategic *ecisions
.................................................................................................... 2,
8.3 .onclusion o, t#e strate! anal!sis section
............................................................. 26
$. So +#ic# strate! #as %o&ia
used5....................................................................... 27
13. %o&ia's Strateic Problems 67 Summar! and Ad*ice
..................................... 28
11.
.onclusion...........................................................................
....................................... 2$
8e,erence 1ist
............................................................................................
...................... 31














Abstract
No(ia,s mar(et s!are in t!e European smartp!one mar(et !as s!o-n a !u)e de"&ine in
t!e past "oup&e of 'ears$ .!e prob&em be)an -it! t!e introdu"tion of t!e /p!one in
200%0 -!i"! set a ne- trend in t!e mar(et$ /n order to return to t!e mar(et &eaders!ip
position0 No(ia entered into partners!ip -it! Mi"rosoft$ .!reatened b' t!e rapid &ost
of mar(et s!are to riva&s0 No(ia "reated series of Smartp!ones "a&&ed No(ia Lumia$
No(ia bet on t!ese produ"ts to re)ain its &ost mar(et s!are$ 1o-ever t-o 'ears after
t!e partners!ip0 -it! 9 Lumia produ"ts out in t!e European mar(et0 t!e "ompan' !as
not a"!ieved its )oa&$
.!is t!esis &oo(s at t!e mar(etin) strate)' t!at No(ia !as "!osen to imp&ement for
some of t!e Lumia devi"es$ .!e t!esis ana&'ses produ"ts introdu"ed -it!in t-o 'ears
after t!e partners!ip$ .!e approa"! seems reasonab&e due to t!e fast de"&ine of mar(et
s!are for No(ia and t!e need of ta(in) 2ui"( a"tions to reverse t!e situation$ .!e
ana&'sis finds some eviden"e t!at t!e present situation of t!e "ompan' ma' be
affe"ted b' -ron) strate)' imp&ementation$
.!e resear"! be)ins b' understandin) t!e )oa&s of t!e "ompan' in t!e smartp!one
mar(et$ 3rom t!is ana&'sis it be"omes "&ear t!at one of t!e main ob4e"tives for No(ia
is to re)ain its &ost mar(et s!are0 and return to t!e &eaders!ip position in t!e
Smartp!one mar(et$ .!e "ompan' main&' "ounts on t!e partners!ip -it! Mi"rosoft0
and on its Lumia smartp!ones to a"!ieve t!is )oa&$ .!e ana&'sis moves on to
exp&orin) t!e externa& and interna& environment of t!e "ompan'$ No(ia !as its main
stren)t! in its brand and &o'a& "ustomers0 and it !as opportunities in "reatin)
innovative e"os'stem -it! Mi"rosoft$ .!e "ompan' main t!reat "omes from t!e
existin) riva&s in t!e industr'$
.!e paper t!en presents t!e produ"t &ife "'"&e "on"ept0 and t!e mar(etin) mix of t-o
No(ia Lumia devi"es in t!eir introdu"tion sta)e$ Lumia 520 and 920 are t!e
smartp!ones0 -!i"! are t!e fo"us of t!e ana&'sis$ .!e t-o smart devi"es are 2uite
different0 su"! t!at Lumia 920 is a !i)!6end "ost&' smartp!one and 520 is a "!eaper
produ"t -it! &ess impressive features$ .!e 520 a&so serve as an examp&e for t!e rest of
t!e Lumia produ"ts$ .!ese produ"ts0 ex"ept for t!e 920 seem to !ave t!e same
introdu"tion strate)'$
3rom t!e ana&'ses it be"omes "&ear t!at for t!e introdu"tion of Lumia 9200 No(ia !as
imp&emented differentiation strate)'$ No(ia tar)ets t!e mass mar(et -it!
differentiated mar(etin) mix$ .!is strate)' is su""essfu& as t!e produ"t is ver'
differentiated in t!e produ"t and pri"e "omponents of t!e mar(etin) mix$ .!e mar(et
&eader in Europe6Samsun) a&so uses t!is strate)' -it! its f&a)s!ip devi"e$
1o-ever "ompared to Samsun) No(ia !as not done so -e&& -it! its mid pri"e ran)e
devi"es$ Lumia 520 and t!e rest of t!e No(ia Lumia produ"ts seem to use t!e same
introdu"tion mar(etin) strate)'$ 3or t!ese produ"ts No(ia !as de"ided to use
se)mentation strate)'$ .!is strate)' imp&ies t!at t!e "ompan' tar)ets sma&&er mar(et
se)ments0 b' re"o)ni7in) t!e needs of t!ese )roups of "ustomers$ 1o-ever b'
&oo(in) at t!e mar(etin) mix it does not be"ome "&ear0 -!i"! mar(et se)ments are t!e
different produ"ts tar)etin)$ No(ia !as not positioned its produ"ts -e&& and "ustomers
ma' not be ab&e to re"o)ni7e0 -!i"! produ"t suits t!em best$







1. Introduction
/n 200% t!e &aun"!in) of t!e /p!one b' App&e /n" "reated t!e Smartp!one mar(et for
t!e avera)e person0 before t!at t!e produ"t -as tar)etin) on&' business users$ Sin"e
t!en App&e,s /p!ones and Android p!ones0 -!i"! !ave been offered b' Motoro&a0
Samsun)0 1. and ot!ers !ave tried !ard to "ompete in t!is fast )ro-in) mar(et and
!ave su""eeded to be t!e bi) p&a'ers in t!e industr'$ .!is environment of fier"e
"ompetition0 !as for"ed t!e "ompanies to "ome up -it! uni2ue te"!no&o)' and
"reative ideas as -e&& as -innin) mar(etin) strate)ies$
No(ia0 -!i"! !as been one of t!e most popu&ar brands for mobi&e p!ones0 some!o-
faded out -it! t!e "reation of t!e massive Smartp!one mar(et in Europe0 as A&ison
Donne&&' 820059 points out t!e situation is a&read' "!an)ed in &ate 2005$ S!e stresses
t!e fa"t t!at not so &on) a)o it -as ver' popu&ar to o-n No(ia0 but at t!is time t!e
"ompan' -as &oosin) "ustomers to riva&s$ .!e 3innis! "ompan' !ad troub&es
adaptin) to t!e mar(et "!an)es0 it did not re"o)ni7e t!at t!e /p!one re&ease in 200%
-ou&d "reate a ne- era into t!e mobi&e -or&d$
No(ia offered smartp!ones runnin) t!eir o-n soft-are :S'mbian; &on) before t!e
/p!one re&ease0 !o-ever t!e p&atform -as not ver' su""essfu& and No(ia,s sa&es start
de"&inin) to App&e,s /p!one and Android runnin) smartp!ones$ .!e S'mbian
operatin) s'stem did not su""eed in "reatin) an e"os'stem and did not provide
enou)! app&i"ation for t!e "ustomers to use$ .!is is be"ause S'mbian deve&opers did
not a"tua&&' understood t!at t!e basi" fun"tions -ere not enou)! in t!e )ro-in)
smartp!one mar(et0 as -e&& as te"!ni"a& prob&ems -it! t!e operatin) s'stem s&o-ed
do-n app&i"ation deve&opers$ <it! t!e )ro-in) su""ess of App&e,s /p!one and t!eir
App Store as -e&& as =oo)&e,s Android e"os'stem0 S'mbian started to &oose
popu&arit'$ 8:<!' does S'mbian; 20*+9$ No(ia -as &oosin) rapid&' its "ustomer
base$ A""ordin) to resear"! firm /D in BB t!e "ompan',s mar(et s!are fe&& from
+5> in 2009 to 25> b' t!e end of 20*0 8:No(ia at "risis: 20**9$ Step!en E&op0 E?
of No(ia "orporation0 referred to t!e S'mbian as @burnin) p&atform@ in a memo to !is
staff in t!e be)innin) of 20**0 and points out t!at t!e "ompan' is far be!ind App&e,s
/p!one0 and t!at No(ia is &oosin) its &eaders!ip position in smartp!one vo&umes to
Android runnin) smartp!ones 8:No(ia at "risis: 20**9$
Anderstandin) t!is t!e "ompan' (ne- it !ad to ma(e a differen"e0 so rus!ed into
"reatin) ne- identit' b' enterin) into partners!ip -it! Mi"rosoft in 3ebruar' 20**$
?n t!e announ"ement of t!e partners!ip Step!en E&op mentions t!at t!e t-o
"ompanies -ou&d "reate t!ird innovative e"os'stem in t!e smartp!one mar(et0 -!i"!
-i&& surpass App&e,s /B!one and =oo)&e,s Android e"os'stems 8:No(ia and
Mi"rosoft; 20**9$ 1avin) &ost some of its &o'a& "ustomers0 No(ia !ad to bui&d )reat
produ"ts -it! distin"tive mar(etin) strate)' in order to "ompete -it! its riva&s and
re)ain its &ost mar(et s!are$
.!e produ"ts t!at t!e "ompan' bet on to bui&d its ima)e in t!e smartp!one industr'
and re)ain its "ustomers are Lumia smartp!ones0 t!ese devi"es are runnin) <indo-s
soft-are$ .!e produ"ts -ere introdu"ed to t!e European mar(et for t!e first time in
November 20**0 *0 mont!s after t!e partners!ip -as announ"ed 8<eber0 20**9$ ?n
t!e )&oba& s"ene Lumia smartp!ones "ou&d a"!ieve on&' +> mar(et s!are bet-een
Apri& and Cune 20*2 a""ordin) to a stud' b' ana&'s 8:ABDA.E *6Samsun); 20**9$
At t!e end of 20*2 No(ia mar(et s!are in t!e smartp!one mar(et -as around *6>
ma(in) it t!e t!ird smartp!one manufa"turer in Europe after Samsun) and App&e
8:Samsun) dominates European; 20*+9$ .-o 'ears after t!e partners!ip0 No(ia did
not re)ain its &ost )round in t!e smartp!one mar(et$
/n a fast )ro-in) industr'0 time is a ver' expensive asset0 as ever' "ompan' -ants to
possess t!e most innovative te"!no&o)ies and produ"ts before its riva&s$ No(ia -anted
to enter t!e mar(et as soon as possib&e -it! its ne- produ"ts in order to re)ain some
of its "ustomers$ 1o-ever t!is ma' !ave &ed to -ron) deve&opin) and imp&ementation
of mar(etin) strate)'$ /n Apri& 20*2 for t!e topi" .imo Dot!ovius0 !airman of t!e
3innis! S!are!o&ders Anion0 sa's for Douters AS:
"At the moment it seems that the strategic decisions were not correct" 8Eir(i0 20*29
1.1 Problem statement
.!is t!esis !as t!e purpose of exp&orin) t!e mar(etin) strate)' of No(ia0 and more
spe"ifi"a&&' t!e introdu"tion strate)i" "!oi"es of t!e "ompan' -!en mar(etin) its
Lumia produ"ts$ .!e purpose of t!is ana&'sis is to understand -!et!er t!ere is
eviden"e to "on"&ude t!at No(ia,s performan"e in t!e smartp!one mar(et !as been
affe"ted ne)ative&' b' t!e mar(etin) strate)' "!oi"es of t!e "ompan'$ .!is paper -i&&
"on"entrate on findin) prob&ems -it! t!e mar(etin) strate)' "!oi"e and
imp&ementation$
.!e resear"! 2uestion of m' t!esis is:
<!at is t!e prob&em -it! t!e mar(etin) strate)' of No(ia Lumia0 -!i"! ma' !ave
s&o-ed do-n t!e re"over' of t!e "ompan'F
/n order to ans-er t!e resear"! 2uestion / !ave "ome up -it! sma&&er 2uestions to
)uide m' ana&'sis:
<!at is t!e )oa& of No(ia in t!e smartp!one mar(et0 and !o- does it -ant to a"!ieve
itF
<!i"! mar(etin) strate)' t!e "ompan' "!ooses to trans&ate its vision into rea&it'F
/s t!e strate)' "!oi"e proper and imp&emented "orre"t&'F
<!at "ourse of a"tion s!ou&d t!e "ompan' underta(e to fix t!e prob&emF
1.2 Scope/Delimitations
No(ia,s situation ma' be affe"ted b' fa"tors outside t!e s"ope of mar(etin) strate)'0
t!ose ma' be dis"ussed brief&' but t!e' are not in"&uded in t!e s"ope of t!is t!esis$
.!is ana&'sis is ta(in) into "onsideration on&' t!e mar(etin) strate)' fa"tors0
affe"tin) No(ia,s performan"e in t!e European mar(et$ .!e paper is man&' dis"ussin)
t!e mar(etin) de"isions of t!e "ompan' in t!e Smartp!one mar(et and t!e mobi&e
p!one mar(et is i)nored0 as t!e produ"t is side&ined due to "!an)in) "ustomer needs$
More spe"ifi"a&&' t!e ana&'sis fo"us on&' on No(ia Lumia series0 as t!is produ"ts
seem to be mar(eted in order for No(ia to a"!ieve its main )oa&s in t!e smartp!one
mar(et$
1.3 Terminology
Smartp!one 6 Mobi&e0 bui&d on mobi&e operatin) s'stem0 addressin) man' features
su"! as "ameras0 media p&a'ers0 /nternet0 =BS t!at form a devi"e -it! mu&tip&e
usa)es$
Apps G Defer to app&i"ation soft-are for mobi&e p!one$ Apps are t!e pro)rams t!at
Smartp!one users "an do-n&oad0 for t!eir soft-are$ Apps are ver' important as b'
do-n&oadin) t!ese0 t!e users "an "ustomi7e t!eir produ"ts a""ordin) to t!eir needs$
1. !et"odology
/n m' ana&'sis / !ave per"eived as re&evant to exp&ore t!e "ompetitive situation in t!e
Smartp!one industr'$ 3or t!is ana&'sis / !ave "!osen to use Borter,s 3ive 3or"es$ /
find t!e met!od suitab&e as it exposes ever' aspe"t of t!e "ompetition in an industr'$
/t is important t!at No(ia is a-are of t!e dan)ers of t!e various sour"es of
"ompetition0 so it bui&ds its mar(etin) strate)' prote"tin) from t!ose$
/ "!oose to use S<?. ana&'sis to map t!e environment of No(ia$ .!e met!od is a
-a' to better exp&ore t!e stren)t!s0 -ea(ness0 opportunities and t!reats for No(ia$
S<?. ana&'sis -i&& !e&p me understand -!et!er No(ia !as bui&d its strate)' uti&i7in)
its stren)t!s and prote"tin) from t!e t!reats in t!e mar(et0 and -!et!er it !as -or(ed
to offset its -ea(nesses$
/ !ave used t!e produ"t &ife "'"&e "on"ept0 as No(ia is manufa"turin) p!'si"a& )oods
and t!e met!od -i&& !e&p me understand0 -!i"! strate)ies are appropriate for t!e
introdu"tion sta)e of t!e Lumia Smartp!ones$ 3or t!e strate)' ana&'sis / !ave "!osen
to exp&ore t-o strate)' mode&s0 -!i"! / find suitab&e for t!e introdu"tion sta)e of a
smartp!one$ .!ese are Smit!,s differentiation and se)mentation strate)ies and
Borter,s =eneri" strate)ies$ / !ave "!osen to use t!is t-o strate)' mode&s0 as t!e'
seem to fit t!e strate)i" possibi&ities in t!e smartp!one mar(et$
2. #o$ia%s !ission and &ision
/n order to understand better -!at No(ia -ants to a"!ieve in t!e smartp!one mar(et
and !o-0 / -i&& ana&'7e t!e "ompan',s mission and vision statements$ .!is step is
important in order to understand t!e under&'in) drivers for No(ia,s strate)' "!oi"e in
t!e smartp!one mar(et$ A""ordin) to B$ Dru"(er 8*9%+9 t!e mission statement is t!e
startin) point for t!e strate)ies and p&ans$ 1e a&so ar)ues t!at strate)' formu&ation
re2uires ans-er to t!e 2uestion :-!at our business is and -!at it s!ou&d be$;
8Dru"(er0 *9%+0 p$#%90 and t!is ans-er is to be found in t!e mission statement$
A""ordin) to Dru"(er 8*9%+9 a "ompan' needs to ans-er five 2uestions to define its
mission statement$ A "ompan' !as to understand0 -!i"! business t!e' are in and -!o
is t!e "ustomer and -!at t!is "ustomer va&ue0 as -e&& as -!at -i&& t!e business be and
!o- t!e business s!ou&d be$ Ans-erin) t!ese 2uestions -i&& determine t!e "!oi"e of
strate)' so t!at it &eads to a""omp&is!in) t!e )oa&s set in t!e mission statement$ / -i&&
ana&'7e No(ia,s mission and t!e vision of !o- it -i&& a"!ieve its )oa&s in t!e
smartp!one mar(et in order to understand -!i"! are No(ia,s "ustomers0 and -!ere it
-ants to stand in t!e smartp!one mar(et$
Nokias mission is simple: Connecting People. Our goal is to build great mobile
products that enable billions of people worldwide to eno! more of what life has to
offer. Our challenge is to achie"e this in an increasingl! d!namic and competiti"e
en"ironment.# $Nokia% about us&
No(ia,s mission seems fo"used on bui&din) its brand -or&d-ide0 it &oo(s &i(e No(ia
-ou&d &i(e to a"!ieve a)ain t!e "redibi&it' and t!e position as a mar(et &eader0 -!i"!
it on"e !ad$ .!e "ompan' -ants to tar)et t!e mass mar(et and it a&so understands t!at
t!e produ"ts it !as to offer must be :more; t!an -!at a&read' exist in t!e mar(et$ .!e
mission statement is re"o)ni7in) t!e "ompetitive environment t!at No(ia fa"es no-$
No(ia is &a"(in) t!e positionin) and t!e brand identit' of its "ompetitors$
/ -i&& &oo( no- at one of t!e (e' e&ements of No(ia strate)'0 -!i"! is fo"usin) on t!e
smartp!one mar(et:
'egaining leadership in the (martphone space
)o help us achie"e our mission% Nokia has formed a strategic partnership with
*icrosoft that will% we hope% see us regain lost ground in the (martphone market.
)ogether% we intend to build a global ecos!stem that surpasses an!thing currentl! in
e+istence. )he Nokia,*icrosoft ecos!stem will deli"er differentiated and inno"ati"e
products with unri"alled scale in terms of product breadth% geographical reach and
brand identit!.# $Nokia% about us&
No(ia,s mission in t!e smartp!one mar(et is to re)ain its &eaders!ip position$ .!e
"ompan',s vision on !o- it -i&& a"!ieve its mission seems bui&d around t!e
"ompan',s strate)i" a&&ian"e -it! Mi"rosoft$ No(ia seems to understand t!at t!e'
!ave &ost t!eir brand identit' and bets on t!e partners!ip -it! Mi"rosoft to bui&d ne-
e"os'stem0 -!i"! -i&& "ompete -it! and surpass t!eir riva&s$ No(ia,s main ob4e"tive
is to re)ain its &ost mar(et s!are and position itse&f as mar(et &eader$ 3rom t!eir vision
-e "an see t!at0 t!e' re"o)ni7e t!e need of differentiation and innovation in order to
a"!ieve t!ese ob4e"tives$ 1o-ever from t!e mission and vision statement it does not
be"ome "&ear -!o are No(ia,s "ustomers$ .!e "ompan' is tar)etin) t!e mass
smartp!one mar(et$
3. Internal analysis
3.1 '(er(ie) of #o$ia
.!e "ompan' -as founded in *56# in 3in&and and -as named No(ia in *5%* 8No(ia0
stor'9$ Bresident and E? of No(ia orporation at t!e moment is Step!en E&op$ 1e
4oined No(ia in 20*00 after -or(in) t-o 'ears for Mi"rosoft as Bresident of Business
Division and member of t!e senior members!ip team of Mi"rosoft orporation
8No(ia0 &eaders!ip team9$ No(ia serves -or&d-ide demand for its produ"ts0 -!i"! are
feature p!ones and Smartp!ones$ .!e "ompan' offers a&so servi"es su"! as maps0
navi)ation and musi"$ No(ia !as about *+9 000 emp&o'ees around t!e -or&d$ 8No(ia0
peop&e and "u&ture9
3.2 !ar$eting mi*
/n order to understand -!i"! strate)' No(ia !as used to a"!ieve its ob4e"tives of
re)ainin) &ost )round in t!e smartp!one mar(et0 / -i&& &oo( at t!e mar(etin) mix of
t!e "ompan'$ As mar(etin) strate)' s!apes t!e mar(etin) mix for t!e produ"ts0 t!e
mar(etin) mix -i&& point to t!e strate)i" "!oi"e of t!e "ompan'$ .!e mar(etin) mix is
a s'non'm for 4ps0 -!i"! is "onstru"ted of t!e four most important "omponents of
ever' produ"t,s strate)' 6 Brodu"t0 Bri"e0 Bromotion and B&a"e$ .!ese "omponents
!o&d t!e opportunities for t!e "ompan' to differentiate$
3.2.1 Product
No(ia,s produ"ts var' a &ot be"ause t!e "ompan' !as a number of series of
Smartp!one su"! as No(ia Lumia0 No(ia As!a0 as -e&& as feature p!one series$
Brodu"t desi)n a&so varies0 t!e "ompan' !as tou"! s"reen produ"ts0 "&assi" button
p!ones0 as -e&& as s&ide sets$ No(ia,s produ"ts !ave some )reat features t!at var'
from produ"t to produ"t$ No(ia is (no-n for )reat 2ua&it' of its devi"es0 and often
offers te"!no&o)i"a&&' advan"ed "ameras and )reat maps for its smartp!ones$
3.2.2 Price
.!e pri"es of t!e smartp!one series var' bet-een 2000DHH and 6#00DHH$ .!ere is
!i)! pri"e variabi&it' of t!e produ"ts0 so t!at t!e pri"es meet ever' so"ia& "&ass needs$
3.2.3 Promotion
No(ia ma(es use of advertisin) on te&evision0 ne-spapers0 radio and bi&&boards$ .!ere
is no information on an' "urrent or near past promotiona& "ampai)ns$
3.2.4 Place
No(ia is )ettin) its produ"ts to t!e mar(et trou)! distributors$ /t main&' se&&s its
smartp!ones and feature p!ones trou)! Mobi&e operators and retai&ers0 -!i"! is
"ommon for t!e industr'$ .!e "ompan' does not o-n s!ops in most of Europe0
ex"eption ma(e AH$
A""ordin) to t!e mar(etin) mix ana&'sis for No(ia0 t!e "ompan' main&' fo"uses on
produ"t "omponent of t!e mar(etin) mix$ No(ia offers )reat variet' of produ"t at a
different pri"e &eve&s$ =iven t!e variabi&it' in produ"ts and series0 at t!is point it is
!ard to understand t!e strate)i" "!oi"es of t!e "ompan'$ /t is even impossib&e to
assess t!e de"isions re)ardin) t!e ne- series No(ia Lumia0 -!i"! are of interest for
m' ana&'sis$
. Competition Analysis
.1 '(er(ie) of #o$ia%s competitors
/ -i&& start "ompetition ana&'sis b' presentin) some of No(ia Lumia existin) riva&s$ /
find most important to ta&( about App&e,s /p!one and Samsun)0 -!i"! is part of
=oo)&e,s Android e"os'stem$ / find t!ese t-o "ompanies t!e most important0 be"ause
Samsun) and App&e are t!e mar(et &eaders in Europe$ / -i&& fo"us on t!e mar(et
&eaders0 be"ause No(ia a""ordin) to t!e mission and vision statement ana&'sis -ants
to re)ain its &eaders!ip position$ /f No(ia -ants to a"!ieve t!e &eaders!ip position it
!as to dea& -it! t!is t-o "ompanies$ Even Mr E&op -as frustrated b' t!eir su""ess
a""ordin) to an intervie- for BB 8:No(ia at "risis: 20**9$
4.1.1 Apple Inc
App&e /n" entered t!e European smartp!one mar(et for first time in November 200%
-it! its /p!one$ .!e smartp!one !as been )reat su""ess and b' no- t!ere is 6
)enerations of t!e produ"t$ urrent&' t!e /p!one !as 2#$+ > mar(et s!are in Europe
8Iaro&0 20*+9$ App&e !as a ver' diversified "ustomer base su"! t!at some of t!e
/p!one users are "!i&dren0 students0 avera)e adu&ts0 and businessmen and -omen$
.!e produ"t !as differentiated desi)n "ompared to its riva&sJ it is ver' simp&e and
"&assi"$ .!e simp&e desi)n a&&o-s it to tar)et t!e mass mar(et and to be "!osen b'
different peop&e -!o "an "ustomi7e it -it! "overs a""ordin) to t!eir st'&e$ .!e
produ"t is offered in t-o "o&ours and it !as some of t!e &atest te"!no&o)ies avai&ab&e
on t!e mar(et$ .!e soft-are is a&so ver' user friend&' and simp&ified$ .!e e"os'stem
offers )reat variet' of apps fo&&o-ed "&ose&' b' Android operatin) s'stem$ Apps are
ver' important0 be"ause t!e users "an "ustomi7e t!e smartp!one a""ordin) to t!eir
needs 8Desmarais0 $ 20*+9$ /p!one is one of t!e most expensive produ"ts in t!e
smartp!one mar(et in Europe$ App&e does not ma(e so mu"! use of advertisin) on
.E and bi&&boardsJ it is main&' usin) -ord of mout! advertisin)$ .!e "ompan' !as its
o-n s!ops in a&most a&& Europe -!ere it se&&s its produ"ts$ App&e is ver' differentiated
in terms of a&most a&& 4 dimensions of t!e mar(etin) mix "ompared to its riva&s$
4.1.2 Samsung
Samsun) is t!e mar(et &eader -it! +2$+> of t!e mar(et s!are in t!e European
smartp!one mar(et 8:Ste&&ar )ro-t! sees; 20*29$ /n t!e se"ond 2uarter of 20**
Samsun) overtoo( No(ia -it! 29> mar(et s!are in t!e <estern European mar(et$ /n
t!is re)ion No(ia !as been t!e mar(et &eader sin"e *990 8:ABDA.E *6Samsun);
20**9$
.!e smartp!ones t!at Samsun) offers run =oo)&e,s operatin) s'stem6 Android$ /n
20*2 Samsun) introdu"ed its first <indo-s p!one$ .!e "ompan' offers a )reat variet'
of produ"ts tar)etin) a&most ever' "ustomer se)ment in t!e mar(et$ 3or examp&e for
musi" &overs Samsun) offers =a&ax' musi"0 -!i"! !as features su"! as surround
sound and eas' a""ess to musi"$ 3or peop&e -!o appre"iate innovative te"!no&o)' t!e
"ompan' offer t!e =a&ax' S+0 a&so it offers a mini version for t!e peop&e -!o find t!e
S+ too bi)$ .!e )a&ax' note series offer its users to -rite do-n as t!e' -rite on rea&
pen and paper 8Samsun)0 mobi&e devi"es9$ .!e pri"e of t!e produ"ts a&so varies a &ot
to meet a&most ever' need$ Samsun) does not differentiate itse&f in
t!e p&a"e and promotion of t!e mar(etin) mix$
.2 Porter%s fi(e forces
/n order to map t!e "ompetitive situation and t!reats in t!e European smartp!one
mar(et0 / -i&& use Borter,s five for"es$ Borter 820059 ar)ues t!at t!e mode& brin)s out
t!e under&'in) stru"ture of t!e industr' b' mappin) out t!e "ompetitive for"es and
revea&in) t!e roots of industr',s "urrent profitabi&it' and provides frame-or( for
)ettin) a!ead of "ompetition$ Borter 820059 re"o)ni7es # for"es t!at s!ape
"ompetition t!ese are t!reat of entr'0 t!e po-er of supp&iers and bu'ers0 t!reat of
substitutes and riva&r' amon) existin) "ompetitors$
4.2.1 Threat of entry
.!e t!reat of entr' in t!e smartp!one industr' is &o-$ .!e smartp!one business
re2uires !i)! "apita& investments and !i)! sun( "osts and t!is ma' dis"oura)e ne-
entrants$ A&so t!ere is "ompetition bet-een existin) "ompanies -it! estab&is!ed and
respe"ted brands$ ustomers tend to be &o'a& to t!e brand t!e' "!oose$ .!e existin)
"ompetitors possess te"!no&o)ies and patents0 -!i"! )ive t!em "ompetitive
advanta)e0 t!ese ma' be "ost&' or impossib&e to a"2uire$ Stron) distribution net-or(
is a&so important so it is anot!er barrier to entr'$
4.2.2 The power of suppliers and buyers
.!e po-er of supp&iers is &o- t!is is due to t!e !i)! "ompetition bet-een supp&iers
and substitute inputs avai&ab&e$ .!e po-er of bu'ers is &o- as -e&&0 be"ause t!ere is
&ar)e number of bu'ers$
4.2.3 Threat of substitute
.!reat of substitutes is &o- in t!e smartp!one industr'$ As t!e smartp!one is man'
devi"es in one0 t!ere is no one produ"t t!at "an substitute t!e smartp!one$ /t -i&& be
too "ost&' to a"2uire substitute$
4.2.4 i!alry among e"isting competitors
.!e Smartp!one is !i)!&' peris!ab&e produ"t t!is ma' "reate !i)! riva&r' amon)
"ompetitors$ A""ordin) to Borter 820059 !i)!&' peris!ab&e produ"ts need to be so&d
fast0 t!at is -!' "ompanies are often tempted to "ut pri"es and in"rease "ompetition$
Exit barriers are &o- so unprofitab&e "ompanies are not for"ed to stru))&e and
"ompete0 but "an &eave t!e industr' easi&' and ma(e room for t!e !ea&t!' "ompanies$
.!e industr' !as a fast )ro-t! rate t!is avoids fi)!ts for mar(et s!are$
/n "on"&usion t!e t!reat in t!e smartp!one industr' "omes main&' from existin)
"ompetitors$
+. S,'T analysis
A""ordin) to Hot&er and He&&er 82009 p$*0*9 S<?. ana&'sis is a -a' to monitor
"ompan',s interna& and externa& environment0 it is t!e overa&& eva&uation of t!e
stren)t!s0 -ea(nesses0 opportunities and t!reats$ /f a "ompan' ta(es under
"onsideration its stren)t!s0 and bui&ds its strate)' exposin) and uti&isin) t!em t!is -i&&
"reate a "ompetitive advanta)e$ <ea(nesses and t!reats are t!ose fa"tors t!at "an
affe"t t!e "ompan' in ne)ative -a'$ No(ia s!ou&d be a-are of t!ese0 so t!at t!e
strate)' it deve&ops "an offset its -ea(nesses and prote"t from t!e t!reats$
?pportunities are t!e "!an"es for t!e "ompan' to expand and )ro- in t!e mar(et$
+.1 Strengt"s
?ne of No(ia,s main stren)t!s is in its brand$ Before t!e mobi&e p!one mar(et -as
side&ined due to "!an)in) mar(et trends0 No(ia !as been one of t!e most respe"ted
and -e&&6(no-n "ompanies in t!e mobi&e p!one mar(et$ .!eir produ"ts are asso"iated
-it! distin"t desi)n0 a""ountabi&it' and sturdiness$ .!e "ompan' !as !eaded t!e sa&es
in mobi&e p!one mar(et sin"e *995 unti& t!e &ast "oup&e of 'ears 8:Samsun) overta(es
No(ia;0 20*29$
No(ia !as deve&oped brand a-areness and t!e "ompan' brand !as been asso"iated
-it! t!e best produ"ts in t!e industr'$ A&t!ou)! No(ia is !avin) !ard times "at"!in)
up -it! t!e Smartp!one mar(et0 t!eir brand and &o'a& "ustomers "an !e&p t!e
"ompan' to re)ain its mar(et s!are$ .!e "ompan' !as been &on) time in t!e
smartp!one mar(et and !as )reat and experien"ed personne&$
+.2 ,ea$nesses
No(ia is !avin) diffi"u&ties "at"!in) up -it! t!e "!an)in) "ustomer trendsJ it is
&a))in) -it! introdu"in) innovative produ"ts$ .!e main eviden"e for t!is is t!e
inabi&it' of t!e "ompan' to meet mar(et trends after t!e /p!one re&ease0 and t!e
fai&ure of its S'mbian p&atform$ No(ia p&a's t!e ro&e of p!one manufa"turer so
/nternet0 soft-are and servi"es are not its stren)t!s$ 1o-ever t!is -ea(ness is no-
offset b' t!e Bartners!ip -it! Mi"rosoft$
+.3 'pportunities
.!e main opportunit' for No(ia is in its partners!ip -it! Mi"rosoft$ No(ia is one of
t!e first "ompanies to provide <indo-s p!one0 it "ou&d use t!is as "ompetitive
advanta)e0 and deve&op ne- and innovative produ"ts$ Samsun) and 1. !ave a&so
re&eased <indo-s B!one 5 mode&s after t!e first Lumia Smartp!ones -ere introdu"ed
in Europe$ 1o-ever Samsun) !as on&' one -indo-s p!one and No(ia b' no- !as
re&eased ei)!t$ .!is means t!at No(ia is more experien"ed into deve&opin) 4oint
produ"ts -it! Mi"rosoft$ .!e "ompan' "an expand its Lumia series offerin) devi"es
from different pri"e ran)e and features to serve mu&tip&e "ustomer demands$
+. T"reats
No(ia is fa"in) a !u)e "ompetition in t!e Smartp!one mar(et from Samsun)0 1.
and Motoro&a$ /n t!e !i)! end "ost&' mobi&e se)ment t!e "ompan' is fa"in) App&e,s
/p!one and D/M,s B&a"(berr'$ No(ia !as p&a'ed t!e ro&e of a mar(et fo&&o-er and !as
&ost time in t!e Smartp!one mar(et -it! deve&opin) and repairin) its strate)'$ No(ia
!as s-it"!ed from S'mbian soft-are to <indo-s p!one0 -!i"! "onfused "ustomers
and made it !ard for t!e "ompan' to de&iver its messa)e and bui&d a-areness in t!e
mar(et$
/t -i&& be ver' !ard for t!e "ompan' to "ome ba"( to t!e top a)ain as Smartp!one
s-it"! from t!e "ustomer,s perspe"tive is !ard$ .!e !andset is more t!an 4ust a p!one0
it be"omes part of peop&e,s &ives (eepin) t!eir important and persona& information0 it
ad4usts to t!eir persona& preferen"es$ Due to t!e different soft-are it is !ard for t!e
users to transfer t!eir information from one soft-are as Android to ot!er as App&e,s
/?S$ .!is s-it"! ma' "ost users to &oose important information$ =iven a&& t!is
"ustomers need a ver' )ood reason to "!an)e t!eir operatin) s'stem$ /n order for
No(ia to )ain ba"( its &ost mar(et s!are0 t!e "ompan' !as to "ome up -it! ver' )ood
te"!no&o)'0 and "onvin"e t!e "ustomers t!at t!eir produ"ts are t!e best "!oi"e in t!e
mar(et$
3rom t!e S<?. ana&'sis it be"omes "&ear t!at No(ia !as its main stren)t! in its
brand and its &o'a& "ustomers$ .!e "ompan' s!ou&d use t!is to re)ain its reputation as
one of t!e top brands in t!e mar(et$ No(ia is t!reatened b' !u)e "ompetition from its
existin) riva&s$ .!e "ompan' s!ou&d use its partners!ip -it! Mi"rosoft to bui&d )reat
produ"ts and re)ain its &ost mar(et s!are$
-. Product .ife Cycle
3or m' ana&'sis it -i&& be usefu& to understand !o- No(ia !as introdu"ed its Lumia
Smartp!ones$ .!e introdu"tion sta)e of a produ"t is one of t!e most important0
be"ause in t!is sta)e a "ompan' positions its produ"ts in t!e mar(et$ /n order examine
t!e strate)i" "!oi"e of t!e "ompan' / need to understand t!e strate)i" possibi&ities in
t!e introdu"tion sta)e of a produ"t$ A""ordin) to Hot&er and He&&er 82009 p$ 49090
"ompan',s positionin) and differentiation strate)' must "!an)e t!rou)!out t!e &ife of
its produ"ts$ / -i&& )ive a brief des"ription of t!e sta)es of t!e produ"t &ife "'"&e and
strate)i" possibi&ities in ea"! of t!ese sta)es$
A""ordin) to Hot&er and He&&er 82009 p$ 4909 to be app&i"ab&e to a produ"t t!e
assumptions be!ind t!e &ife6"'"&e are t!at t!e produ"t must !ave &imited &ifeJ sa&es )o
trou)! different sta)es0 -it! different "!a&&en)es0 opportunities and prob&emsJ profits
"!an)e at different sta)esJ produ"ts re2uire different manufa"turin)0 finan"ia&0
mar(etin)0 pur"!asin) and !uman resour"e strate)ies in ea"! &ife "'"&e sta)e$ .!e
Smartp!one produ"ts fu&fi&& t!ese assumptions$ Hot&er and He&&er 82009 p$4909
re"o)ni7e 4 different Life6"'"&e sta)es for a produ"t$
-.1 Introduction Stage
/ntrodu"tion is a period of s&o- sa&es )ro-t! as t!e produ"t is 4ust introdu"ed$ /t is
a&so re"o)ni7ed -it! !eav' advertisin)$ 8Hot&er and He&&er0 20090 p$4909$
A""ordin) to S!a- 820*29 in t!e introdu"tion sta)e a "ompan' "an "!oose b'
penetration strate)' or ni"!e strate)'$ A penetration strate)' invo&ves a))ressive
mar(etin) mix and produ"t for t!e mass mar(et offered at a &o- pri"e$ A ni"!e
strate)' a""ordin) to S!a- 820*29 invo&ves a narro- mar(et se)ment and a !i)!er
pri"e$
/n t!is sta)e S!a- 820*29 re"o)ni7es on&' t-o possibi&ities tar)etin) t!e mass mar(et
-it! &o- pri"e and a ni"!e strate)' invo&vin) !i)!er pri"e$ Loo(in) at t!e smartp!one
mar(et it is possib&e for t!e "ompanies to tar)et mass mar(et -it! !i)!er pri"e as for
instan"e /p!one does$ .!is is a&so due to t!e affordab&e terms of t!e mobi&e operators
-!ere peop&e "an bu' t!e smartp!one on &easin)$
-.2 /ro)t" Stage
.!is is a period of rapid )ro-t! and mar(et a""eptan"e$ 1ere t!e profits are !i)!er$
A""ordin) to S!a- 820*29 in t!e )ro-t! sta)e "ompanies "an "!oose bet-een t-o
strate)i" options t!ese are se)ment expansion and brand expansion$ /n se)ment
expansion0 t!e "ompan' "an add ne- tar)et se)ments0 -it! t!eir o-n mar(etin)
mixes$ Strate)i" a&ternative to se)ment expansion mi)!t be brand expansion$ .!is
strate)' adds ne- produ"ts or variations to t!e existin) &ine$ .!e strate)' de&ivers to
t!e "ustomer se)ment bi))er "!oi"e0 or )reater va&ue$ Some of t!ese strate)' ideas
mi)!t be de&iver'0 )ift6-rappin) 8S!a-0 20*29$
-.3 !aturity Stage
/n maturit' sta)e t!e sa&es are &o-er as t!e produ"t is a&read' bou)!t from most of t!e
potentia& bu'ers 8Hot&er and He&&er 2009 p$4909$ A""ordin) to S!a- 820*29 in
maturit' sta)e it is "ommon for a "ompan' to emp&o' s stab&e mar(etin) mix$ As t!e
produ"t moves furt!er on t!e "urve !arvestin) strate)' be"omes ne"essit'$
-. Decline Stage
1ere sa&es de"&ine and profits erode 8Hot&er and He&&er 2009 p$4909$ /n t!is sta)e
S!a- 820*29 re"o)ni7e on&' divestin) strate)' as an option$
0. Introduction Stage !ar$eting !i* of .umia 122 and 322
A""ordin) to S!a- 820*29 t!e mar(etin) strate)' of a produ"t s!ou&d "!an)e in t!e
different sta)es of t!e produ"t &ife"'"&e$ / be&ieve in No(ia,s "ase t!e introdu"tion
sta)e of No(ia Lumia s!ort&' after t!e partners!ip is "ru"ia& due to t!e de&i"ate
situation of t!e "ompan' and t!e need of re)ainin) mar(et s!are$ A&so )iven t!e
partners!ip -it! Mi"rosoft and t!e &aun"! of No(ia Lumia series0 t!e "ompan' !as
"!an)ed its strate)i" approa"!0 so t!e overa&& mar(etin) mix of No(ia in t!e
be)innin) of m' ana&'sis is not !e&pfu& in en"ounterin) t!e ne- strate)i" de"isions of
No(ia in t!e smartp!one mar(et$
/ !ave se&e"ted t-o smartp!ones from No(ia Lumia,s series0 and / -i&& ana&'7e t!em
in t!e introdu"tion sta)e of t!e produ"ts$ / !ave "!osen to &oo( at t!e 4ps for Lumia
920 and 520$ .!e produ"ts !ave been introdu"ed in an important time period for
No(ia6 &ess t!an 2 'ears after t!e partners!ip -it! Mi"rosoft -as announ"ed$ /n m'
opinion t!is time frame -as "ru"ia&0 as t!is produ"ts -ou&d set t!e "ustomer
per"eption for t!e future of t!e series$
Lumia 920 is an interestin) produ"t be"ause it is a f&a)s!ip devi"e0 and it is one of t!e
most te"!no&o)i"a&&' advan"ed produ"ts in t!e Lumia series$ Lumia 920 !as a"!ieved
!i)! user interest and demand 8Hin)0 20*29$ A&so t!e produ"t is important be"ause it
is at t!e same pri"e &eve& as /p!one and Samsun) =a&ax' S+ t!is -i&& provide me -it!
some perspe"tive for "omparison$ / -i&& a&so in"&ude ana&'sis of Lumia 5200 -!i"! is
a "!eaper devi"e$ 1o-ever t!is devi"e !as not a"!ieved su"! a !u)e su""ess0 as -e&&
as t!e rest of t!e Lumia series0 -!i"! are not in"&uded in t!e ana&'sis$ ombinin) t!e
t-o produ"ts -i&& )ive me overa&& pi"ture of t!e strate)i" "!oi"es of t!e "ompan' in
t!e smartp!one mar(et -it! its Lumia series$
.!e ana&'sis of t!e mar(etin) mix of No(ia Lumia 520 and 920 at t!eir introdu"tion
-i&& !e&p me understand0 -!i"! mar(etin) strate)' No(ia !as imp&emented for t!e
introdu"tion sta)e of its produ"ts$ .!e produ"ts !ave been introdu"ed in 20*2 so / -i&&
fo"us on t!e pri"es0 promotions and ot!er re&evant information for t!at past period$
0.1 Product
?n # September 20*20 BB reports t!at Lumia 9200 -!i"! is t!e f&a)s!ip devi"e in
Europe0 features -ire&ess "!ar)in) as -e&& as its revo&utionar' "amera purevie-0
-!i"! a&&o-s 'ou to ta(e pi"tures at ni)!t$ No(ia ar)ues t!at it "an "apture *0 times
t!e amount of &i)!t0 "ompared to t!e rest of t!e Smartp!ones in t!e mar(et 8:No(ia
unvei&s t-o; 20*29$ .!is feature "reates "ompetitive advanta)e for t!e "ompan' as
-e&& as te"!no&o)i"a& &eaders!ip$ .!e 520 mode& featured a&so -ire&ess "!ar)in)
!o-ever &ess impressive te"!no&o)' and a s&i)!t&' sma&&er disp&a' 8Stevenson0 20*29
ustomers !ave en"ountered prob&ems -it! t!e p!one soft-are$ Su"! as0 Lumia 9000
-!i"! is t!e f&a)s!ip devi"e for AS0 !as been introdu"ed -it! soft-are bu)0 -!i"!
prevents users from "onne"tin) to t!e /nternet 8:Bu) !its ne-;0 20*29$ .!is !as sure&'
"aused ne)ative -ord of mout! for t!e devi"es0 as -e&& as disappointment for t!e
o-ners of t!e <indo-s p!one0 it !as sure&' affe"ted European "ustomer base as -e&&$
Apps t!at run on <indo-s p!one are mu"! &ess t!an t!ose t!at Android and /?S offer
for t!eir "ustomers$ .!is is a !u)e prob&em for No(ia0 as apps are rea&&' important for
t!e Smartp!one user$ No(ia,s devi"es are offered in different "o&ours su"! as )reen0
red and 'e&&o- so t!e "ustomers "an "ustomi7e t!e p!one b' t!eir preferen"es$
.!e devi"es are differentiated in t!e produ"t part of t!e mar(etin) mix$ 1o-ever it
does not be"ome "&ear -!et!er t!e produ"ts are tar)etin) an' parti"u&ar "ustomer
)roup from t!e p!'si"a& or non6p!'si"a& features$
0.2 Price
/n Europe ear&ier in September No(ia &aun"!ed its Lumia 920 and its "!eaper devi"e
520$ .!e &aun"! pri"es are about 4#00DHH for t!e 920 and +#00D(( for t!e 520
8Stevenson0 20*29$
Loo(in) at t!e pri"es of No(ia,s f&a)s!ip devi"e 9200 t!e produ"t is se&&in) "!eaper
t!an t!e /p!one #0 -!i"! -as &aun"!ed in September a&so$ Lumia 920 is se&&in) for t!e
same pri"e0 or in some p&a"es "!eaper t!an Samsun) =a&ax' S +0 -!i"! is t!e f&a)s!ip
devi"e for Samsun)$ =a&ax' S+ -ent on sa&e0 t!ree mont!s before t!e Lumia and it
"ou&d be ar)ued t!at t!e pri"e for t!e Lumia is too !i)!0 be"ause peop&e are not
fami&iar -it! t!e produ"t and t!e' ma' not be -i&&in) to ta(e a ris( for t!e !i)! pri"e$
0.3 Promotion
No(ia advertises !eavi&'0 promotin) its <indo-s p!ones$ /t ma(es use of advertisin)
on .E0 bi&&boards and t!e /nternet$
Cust before t!e &un"!in) of its f&a)s!ip devi"e 6 Lumia 9200 No(ia -as "au)!t
"!eatin) on an advert featurin) a ne- te"!no&o)'$ .!e video -as promotin) t!e ne-
feature of t!e Smartp!one "amera opti"a& ima)e stabi&i7ation6?/S$ .!e advert
intended to support t!e firm,s "&aim t!at t!e te"!no&o)' !e&ped redu"e b&ur0 but &ater
from t!e video it be"ame "&ear t!at it -as fi&med -it! professiona& "amera 8No(ia@s
bet on0 20*29$ .!is is a rea&&' bad start for No(ia,s f&a)s!ip devi"e$ .!e &aun"!in) of
t!e devi"e is rea&&' important strate)i" moment for t!e No(ia and t!is is a serious
mista(e$ .!e ne- <indo-s p!one !ad most opportunit' to position t!e "ompan' and
"reate "ompetitive advanta)e0 as t!e te"!no&o)' is ne- to t!e mar(et$ .!e "!eatin) on
t!at advert -i&& "ause disappointment and mistrust into "ustomers$
/n its promotion part of t!e mar(etin) mix t!e "ompan' does not position t!e produ"ts
in an' parti"u&ar "ustomer se)ments nor does it differentiate itse&f from its
"ompetitors$
0. Place
No(ia is )ettin) its produ"ts to t!e mar(et trou)! distributors$ /t main&' se&&s its
Smartp!one trou)! Mobi&e operators$ .!e "ompan' does not o-n s!ops in most of
Europe0 ex"eption ma(e AH$ No(ia does not differentiate itse&f in t!is "omponent of
t!e mar(etin) mix$
3. Strategy Analysis of .umia 322 and 122
1avin) understood t!e mar(etin) mix of t!e produ"t0 / "an pro"eed in fittin) it into
mar(etin) strate)'$ .!is ana&'sis -i&& !e&p me to determine -!et!er t!e "!oi"e of
strate)' is "orre"t and -!et!er it is imp&emented proper&'$ A""ordin) to S!a- 820*29
in t!e introdu"tion sta)e of a produ"t a "ompan' "an "!oose bet-een penetration
strate)' and ni"!e strate)'$ 1e a&so ar)ues t!at penetration strate)' s!ou&d use
a))ressive mar(etin) mix su"! as &o- pri"e0 &o- servi"e0 and !i)! promotiona&
expenditures$ A""ordin) to !im t!e ot!er option is a ni"!e strate)'0 -!i"! is best for
sma&& "ompanies and invo&ves !i)! pri"e and a produ"t suited for a ni"!e mar(et$
1o-ever &oo(in) at t!e smartp!one industr' as -!o&e and ta(in) into "onsideration
t!at pri"e is 4ust one fa"tor t!at "ustomers "onsider in t!e mar(et0 / am "!oosin)
different approa"!$ / ar)ue t!at in t!e introdu"tion sta)e of a smartp!one0 a "ompan'
"an "!oose bet-een ni"!e strate)'0 -it! mar(etin) mix suited for "ertain mar(et
se)ment0 it "ou&d in"&ude a &o- or a !i)! pri"e0 as -e&& it "ou&d be emp&o'ed b' bi) or
sma&& "ompan'$ A&so / "onsider appropriate to use differentiation strate)' instead of
!is penetration strate)' a&so suitab&e for different pri"e &eve&s0 and "ompan' si7es$
1o-ever / re"o)ni7e t!e need in t!e smartp!one mar(et t!at a "ompan' s!ou&d
emp&o' a Differentiation strate)' -it! a))ressive mar(etin) mix$ .!is is due to t!e
!i)! "ompetition in t!e mar(et and ver' stron) trend for "opin) -it!in t!e industr'$
1o-ever t!is mar(etin) mix s!ou&d not be "on"entrated on penetratin) t!e mar(et b'
&o- pri"e and &o- servi"e as S!a- 820*29 su))ests0 be"ause / be&ieve t!is is not -!at
"reates va&ue in t!e smartp!one industr'$ .!e mar(etin) mix s!ou&d fo"us on
differentiation in most of t!e "omponents of t!e 4ps$
1avin) resear"!ed t!e strate)' mode&s avai&ab&e for m' ana&'ses / !ave re"o)ni7ed
t-o mode&s0 -!i"! best suit m' ana&'ses$ / !ave "!osen to -or( -it!: Borter,s
=eneri" strate)ies and Smit!,s differentiation and se)mentation strate)ies$ /n m'
opinion and b' &oo(in) at t!e situation in t!e smartp!one industr'0 t!ese t-o mode&s
seems to fit best m' understandin) of strate)i" options in t!e introdu"tion sta)e of a
produ"t in t!e smartp!one mar(et$ / !ave a&so "!osen t!e t-o mode&s be"ause t!e' are
simi&ar and t!is -i&& provide me -it! stron)er eviden"e for m' findin)s$
3.1 Porter%s /eneric Strategies
A""ordin) to S!a- 820*20 p$ 4+9 Borter,s )eneri" strate)ies is t-o b' t-o matrix0
-!i"! :4uxtaposes &o- "ost and uni2ueness -it! industr'6-ide and narro- tar)et
se)ments;$
3i)ure *: Borter,s =eneri" Strate)ies
Sour"e: B'ron S!arp 8*99*9
#.1.1 $ower cost
Lo- "ost "ompetitive advanta)e is fo"used on a"!ievin) t!e &o-est "ost possib&e
-it!in an industr'$ As t!e strate)' imp&ies &o- "ost a mar(eter -ou&d on&' appre"iate0
if t!e &o-er "ost &eads to &o-er pri"e$ A""ordin) to B'ron S!arp 8*99*9 &o- "ost
"ompetitive advanta)e "ombined -it! broad tar)et s"ope emp!asi7es produ"tion of
standardi7ed produ"ts0 at &o- per unit "ost for t!e pri"e6sensitive bu'ers$
#.1.2 %ifferentiation
Differentiation "ompetitive advanta)e promotes a produ"t t!at is per"eived b' t!e
"ustomer to differ on an' p!'si"a& or nonp!'si"a& produ"t "!ara"teristi"$
Differentiation in nonp!'si"a& produ"t "!ara"teristi" mi)!t be "reated b' usa)e
experien"e0 -ord of mout! and promotion$ B!'si"a& differen"e is "reated b' t!e
produ"t "!ara"teristi"s$ 8Di"(son0 *95%9
#.1.3 &road target
Broad tar)et s"ope is offerin)s for t!e mass mar(et$ /t is most "ommon&' app&ied
-it! &o-er "ost "ompetitive advanta)e0 for bi) "ompanies offerin) a standardi7ed
produ"t 8S!a-0 20*29$ 1o-ever it "ou&d a&so be app&ied -it! differentiation0 offerin)
a ver' differentiated produ"t to t!e mass mar(et$ ompanies "!oosin) t!is s"ope0
often use one mar(etin) mix for t!eir business 8S!a-0 20*29$
#.1.4 'arrow target
Borter,s narro- tar)et is a&so (no-n as mar(et se)mentation or ni"!e s"ope$ /t is
suitab&e for sma&&er "ompanies -it! not so stron) finan"ia& resour"es
8S!a-0 20*29$ /t invo&ves dividin) t!e mar(et into sma&&er or ni"!e mar(ets and
tar)etin) t!ose -it! produ"ts suitab&e for t!at mar(et se)ment$ /t "ou&d a&so be used
for bi) "ompanies0 tar)etin) mu&tip&e ni"!e mar(ets$
#.1.( Porter)s *eneric Strategies criti+ue
Borter,s matrix ex"&udes "ost as a differentiation strate)'$ .!is is not ver' rea&isti"
be"ause if -e &oo( at &o- "ost0 as &o-er pri"e for t!e bu'er "ompared to t!e ot!er
produ"ts on t!e mar(et0 t!is "ou&d a&so be a differentiation strate)' 8S!a- 20*29$
Bri"e is a&so part of t!e mar(etin) mix and ever' part of t!e mar(etin) mix "an be
differentiated in order for t!e "ompan' to )ain "ompetitive advanta)e$
#.1., 'o-ia)s strategic decisions
No(ia is "&ear&' usin) Differentiation strate)'0 -!i"! is a "ombination of
differentiation "ompetitive advanta)e and broad tar)et s"ope$ Differentiation in t!e
mar(etin) mix for t!e Lumia 920 o""urs in t!e Brodu"t and Bri"e "omponents of t!e
mar(etin) mix$ Lumia 520 is a&so differentiated0 but on&' in t!e produ"t "omponent of
t!e mar(etin) mix$ 1o-ever t!e pri"e of t!e 520 is &o-er and mid6ran)ed for t!e
mar(et0 it is not differentiated$
.!e smartp!ones are differentiated from its riva&s in t!e Brodu"t "omponent of t!e
mar(etin) mix -it! t!eir p!'si"a& and non6p!'si"a& "!ara"teristi"s$ .!e p!'si"a&
"!ara"teristi"s of t!e 920 and 520 are t!e desi)n of t!e produ"t as -e&& as t!e mu&tip&e
"o&ors t!at are avai&ab&e to t!e "ustomers$ .!e "o&ors offer "ustomi7ation for t!e
devi"es and differentiate t!e produ"ts from riva&s su"! as Samsun) and App&e$ .!e
t-o "ompanies often offer t!eir smartp!ones in on&' t-o "o&ors$
.!e devi"es are differentiated in a non6p!'si"a& -a' trou)! t!e "ompan',s
partners!ip -it! Mi"rosoft$ No(ia is first to manufa"ture a smartp!one runnin)
<indo-s soft-are0 and at present it is offerin) more <indo-s p!ones t!an an' of its
riva&s$ .!e Lumia 920 is a&so differentiated b' its innovative te"!no&o)ies su"! as its
revo&utionar' "amera$ No(ia 520 and 920 bot! offer -ire&ess "!ar)in)0 -!i"! is a
ne- and innovative offerin) for t!e European mar(et$
/ -i&& move on to Smit!,s differentiation and se)mentation strate)' and "!e"(
-!et!er / -i&& arrive at t!e same "on"&usion as in t!e previous ana&'sis
3.2 Smit"%s Differentiation and Segmentation Strategies
A""ordin) to S!a- 820*29 a&& variation of Borter,s )eneri" strate)ies ma' a&so be
derived from Smit!,s differentiation and se)mentation strate)ies$ An&i(e Borter,s
=eneri" Strate)ies0 Smit! is re"o)ni7in) pri"e as a differentiation strate)'$
A""ordin) to Smit! 8*9#69 Brodu"t differentiation and mar(et se)mentation are bot!
app&i"ab&e -it!in t!e frame-or( of imperfe"t "ompetition$ .!e strate)ies aim to s!ift
or "!an)e t!e demand "urve s&ope for t!e mar(et offerin) of individua& supp&ier
3i)ure 2: Smit!,s Differentiation and se)mentation
Sour"e: S!a- 820*29
#.2.1 Segmentation strategy
A""ordin) to Smit! 8*9#69 Se)mentation at t!e ri)!t side of 3i)ure 2 is fo"used
around t!e demand side of t!e mar(et$ /t is a more pre"ise ad4ustment of t!e
mar(etin) mix to "onsumer and user re2uirements$ .!e strate)' brin)s re"o)nition of
severa& demand s"!edu&es "ompared to one re"o)ni7ed -!en tar)etin) t!e mass
mar(et or broad mar(et$ Mar(et se)mentation vie-s one !etero)eneous mar(et as
"oup&e of !omo)enous mar(et se)ments 8Smit!0 *9#69$ /t offers a better re"o)nition
of t!e "ustomer,s desires and !i)!er satisfa"tion of t!e se)ment 8S!a-0 20*29$ Asin)
a se)mentation strate)' means re"o)ni7in) sma&&er mar(et se)ments and tar)etin)
t!ose -it! produ"ts suitab&e for t!at spe"ifi" "ustomer )roup$
#.2.2 %ifferentiation strategy
Mar(et differentiation in t!e &eft of 3i)ure 2 aims to se"ure s!are of broad and
)enera&i7ed mar(et$ Differentiation strate)' is a&so re"o)ni7ed as se"urin) a measure
of "ontro& over t!e demand for a produ"t0 trou)! !eav' advertisin) 8Smit!0 *9#69$
.!e idea be!ind t!is strate)' is to position t!e brand in t!e mar(et as different from
"ompetitors in t!e "ustomer,s perspe"tive$ onsistent -it! Borter,s =eneri" strate)ies
t!e differentiation "an be p!'si"a& or non6p!'si"a&$ B!'si"a& ma' be desi)n0 pa"(a)e0
and pri"e or not rea& based on per"eived va&ue su"! as presti)e ima)e0 or &o)o 8S!a-0
20*29$
#.2.3 'o-ia)s Strategic %ecisions
onsistent -it! m' previous ana&'sis of No(ia usin) Borter,s matrix0 !ere / arrive at
t!e same "on"&usion$ No(ia is usin) differentiation strate)' -it! its Lumia
smartp!ones$ .!e differentiation is p!'si"a& and non6p!'si"a&$ B!'si"a& is observed
-it! t!e p!one,s desi)n and "ustomi7ation possibi&ities trou)! t!e different "o&or
offerin)$ .!e Smartp!one,s innovative te"!no&o)' and features -e "an re"o)ni7e as
non6p!'si"a& differentiation$
/t "ou&d a&so be ar)ued t!at t!e "ompan' is usin) se)mentation strate)' ta(in) into
"onsideration t!e t-o mode&s0 -!i"! are differentiated from ea"! ot!er b' pri"e and
features$ /t "ou&d be ar)ued t!at t!e "ompan' is tar)etin) t-o mar(ets: !i)!er to
midd&e so"ia& "&ass "ustomers -i&&in) to pa' more mone' for !i)!er 2ua&it' and a
midd&e to &o-er "&ass "ustomers interested in t!e "!eaper version$ 1o-ever even if
some se)mentation exist it is sti&& too broad$ Di"!er "ustomers ma' bu' t!e "!eaper
p!one if t!e' are not interested in t!e innovative te"!no&o)' of t!e 920 and vi"e versa
for t!e &o-er "&ass$ .!e produ"t does not seem to offer a )reat understandin) of an'
"onsumer )roup,s needs and desires$
3.3 Conclusion of t"e strategy analysis section
.!is se"tion fo"used on presentin) some strate)' met!ods0 and fittin) t!e mar(etin)
mix of No(ia Lumia into some of t!e strate)i" options$ .!e "ompan' !as "!osen to
use for &aun"!in) of its Lumia produ"ts differentiation strate)' tar)etin) a broad
mar(et se)ment$ .!e Smartp!ones are ver' -e&& differentiated from its riva&s in t!e
produ"t "omponent of t!e 4ps$ 1o-ever to use differentiation strate)' in introdu"tion
sta)e a "ompan' is to use a))ressive mar(etin) mix$ /t -i&& not be possib&e for No(ia
to a"!ieve )reat su""ess in t!e smartp!one industr' b' tar)etin) t!e mass mar(et and
differentiatin) on&' one "omponent of its mar(etin) mix$ .!is is true for t!e No(ia
520 it ma' be a better idea if No(ia -as usin) se)mentation strate)' for t!is produ"t$
.o ba"( up m' findin)s / -i&& point to t!e "ompetition ana&'sis ear&ier in m' t!esis
-!ere / made a brief des"ription of App&e,s mar(etin) mix$ App&e /n" possesses t!e
se"ond p&a"e b' mar(et s!are in t!e European smartp!one mar(et$ 1o-ever t!e
"ompan' !as differentiated itse&f in a&most ever' "omponent of t!e mar(etin) mix$
App&e is usin) differentiation strate)' b' positionin) its produ"t as different from its
riva&s in t!e mar(et$
/f -e &oo( from anot!er perspe"tive -e ma' "on"&ude t!at No(ia mi)!t be usin)
se)mentation strate)' b' tar)etin) different mar(et se)ments$ 1o-ever t!e
se)mentation is ver' -ea( and broad$ /f -e ta(e into a""ount t!e Lumia 920 and t!e
"!eaper version 520 t!e differen"e bet-een t!e produ"ts is in pri"e and 2ua&it'0 -!i"!
-i&& tar)et different so"ia& "&asses$ 1o-ever / find t!is not so )ood "!oi"e of
se)mentation be"ause t!e tar)et )roup is not -e&& defined for ea"! produ"t$
.o ba"( up t!is statement / -i&& point to t!e su""ess of t!e mar(et &eader in Europe6
Samsun)$ /n t!e "ompetition ana&'sis / pointed out !o- Samsun) re"o)ni7es ever'
need in t!e mar(et and offers produ"t for different "ustomer se)ments$ Samsun)
offers produ"ts for a&most ever' taste and po"(et and it is sure&' usin) se)mentation
strate)'$
1. So )"ic" strategy "as #o$ia used4
At t!is sta)e of m' ana&'sis0 it does not be"ome ver' "&ear -!at No(ia is a"tua&&'
doin) in t!e smartp!one mar(et$ .o )et a bi))er pi"ture of t!e situation / -i&& ta(e a
brief &oo( at t!e rest of t!e Lumia smartp!ones0 -!i"! are "urrent&' offered in t!e
European mar(et$ .!e produ"ts are mid ran)e pri"ed and t!eir mar(etin) mix is
simi&ar to Lumia 520$
.!e pri"es are mid6 ran)e for t!e industr' and t!e produ"t "omponent of t!e 4ps is
2uite differentiated$ .!e smartp!ones offer some ver' interestin) features su"! as
-ire&ess "!ar)in)0 )reat "ameras and ot!ers$ Bromotion and t!e B&a"e "omponents of
t!e mar(etin) mix are t!e same as in t!e 4ps ana&'sis of Lumia 520 and 920$ So t!e
mar(etin) mix of most of Lumia Smartp!ones0 ex"ept for t!e Lumia 920 is one$
1o-ever t!is mar(etin) mix does not seem to fit into an' of t!e strate)i" options
avai&ab&e for t!e introdu"tion sta)e of a produ"t$ .!ese Lumia produ"ts are not
positioned in t!e mar(et$ .!e' do not seem to tar)et different mar(et se)ments$ /t
seems &i(e t!ese produ"ts are tar)etin) t!e mass mar(et !o-ever t!e' don,t !ave t!e
mar(etin) mix 2ua&ities for doin) t!at$
1ere / arrive at t!e "on"&usion t!at No(ia !as &ost its vision of a tar)et "ustomer$ .!e
strate)i" "!oi"e of t!e "ompan' -it! t!eir Lumia Smartp!ones seems 2uite simi&ar to
-!at Samsun) is doin)$ .!is is &o)i"a& as No(ia -ants its &eaders!ip position ba"(0
and Samsun) is t!e mar(et &eader at t!e moment$ / arrive at t!is "on"&usion b'
ma(in) a simp&e "omparison bet-een No(ia and Samsun)$
Samsun) offers =a&ax' S+0 -!i"! is positioned in t!e !i)!6end "ost&' Smartp!one$
No(ia offer its Lumia 920 and su""eeds in positionin) it in t!e same mar(et$ .!ese
t-o produ"ts are mar(eted -it! differentiation strate)'$ .!e' !ave differentiated
mar(etin) mix in t!e produ"t and pri"e "omponent and are 2uite innovative0 -!i"!
position t!em as ;different;$
Samsun) is usin) se)mentation strate)' -it! its ot!er produ"ts$ .!e "ompan' tar)ets
different mar(et se)ments0 as it be"ame "&ear in t!e "ompetition ana&'sis$ Samsun)
!as positioned its produ"ts -e&&0 and &ets t!e "ustomers (no- t!at t!e' are offerin)
somet!in) for ever'bod'$ 1o-ever No(ia !are !as not su""eeded in positionin) t!e
rest of t!e Lumia devi"es$
12. #o$ia%s Strategic Problems 5 Summary and Ad(ice
=iven t!e ana&'sis of No(ia 520 and 920 introdu"tion strate)ies0 and ta(in) into
"onsideration t!e rest of t!e Lumia series Smartp!one out in t!e mar(et0 / arrive at t!e
"on"&usion t!at No(ia !as &ost its vision of a tar)et "ustomer$ .!e "ompan' a&so uses
different mar(etin) strate)ies for its f&a)s!ip devi"e and for t!e rest of t!e series$
No(ia !as done -e&& positionin) its Lumia 920$ .!e produ"t is a f&a)s!ip devi"e and
possesses ver' innovative te"!no&o)'$ /t is suitab&e for differentiation strate)'0
meanin) tar)etin) t!e mass mar(et -it! differentiated mar(etin) mix$ .!e produ"t
"omponent of t!e mar(etin) mix is ver' -e&& differentiated as t!e produ"t offers
innovative te"!no&o)ies and desi)n 2ua&ities$ .!e pri"e is a&so 2uite !i)!0 -!i"!
differentiates it from t!e rest of t!e produ"ts in t!e mar(et and position it in t!e !i)!6
end "ost&' smartp!one mar(et0 -!ere =a&ax' S+ and /p!one are "ompetin)$ .!at is
-!' t!e produ"t !as a"!ieved )reat interest in t!e smartp!one mar(et$ <e "an a&so
see t!is t'pe of strate)' in t!e mar(etin) of =a&ax' S+ b' Samsun)$ .!is smart devi"e
a&so possesses ver' innovative te"!no&o)' and it is so&d at a ver' !i)! pri"e$ .!e
produ"t be"ame bestse&&er in t!e -or&d for t!e +
rd
2uarter of 20*2 8:Samsun) =a&ax'
S+;0 20*29$ A""ordin) to t!e ana&'sis and )iven t!e mar(et situation t!is strate)'
de"ision of No(ia is su""essfu&$
1o-ever No(ia !as not 'et a"!ieved its &eaders!ip position0 and t!e reason for t!is /
find in t!e mar(etin) strate)' used to mar(et its mid6pri"e ran)e produ"ts$ /n m'
ana&'sis / !ave &oo(ed at t!e mar(etin) mix in t!e introdu"tion sta)e of one of t!ese
smartp!ones 6 Lumia 520$ .!e produ"t did not seem to enter into an' mar(etin)
strate)' option$ .!at is -!' / arrive at t!e "on"&usion t!at No(ia did not su""eed in
positionin) its produ"t$ .!is "an a&so be seen in t!e rest of t!e No(ia Lumia mode&s$
No(ia !as % more Lumia devi"es$ Loo(in) at t!e mar(et situation / assume t!at No(ia
!as tried to use se)mentation strate)'$ 1o-ever t!e "ompan' did not position its
smartp!ones -e&& into an' mar(et se)ments$ .!ese Smartp!ones !ave )reat features
but t!e users ma' !ave !ard time distin)uis!in) bet-een t!e Lumia produ"ts and
findin) t!e one suitab&e for t!em$
/ -ou&d advi"e No(ia to reexamine t!e introdu"tion mar(etin) strate)' it is usin) for
its mid pri"e ran)e produ"ts$ /f No(ia -ou&d &i(e to use se)mentation strate)' -!en
introdu"in) its next smartp!ones0 t!e "ompan' s!ou&d be more "arefu& -!en
formu&atin) and imp&ementin) its strate)i" "!oi"es$ ?ne -a' of "reatin) a -innin)
se)mentation strate)' for t!e "ompan' -ou&d be to use t!e fo&&o-in) frame-or($
A""ordin) to E&6Ansar' 820069 mar(etin) strate)' formu&ation invo&ves a number of
steps$ .!e pro"ess s!ou&d be)in -it! understandin) "ustomer be!avior$ .!e se"ond
step is to divide t!e mar(et into sma&&er mar(et se)ments0 and de"ide -!i"! of t!ese
se)ments t!ere is )reater "!an"e of su""ess$ No(ia s!ou&d bui&d produ"ts suitab&e for
t!e "!osen mar(et se)ments0 and position itse&f "&ear&' so t!at "ustomers are a-are
t!at No(ia re"o)ni7es t!eir needs$ .!e "ompan' ma' se)ment t!e mar(et based on
demo)rap!i"s0 ps'"!o)rap!i"s0 so"io)rap!i"s0 )eo)rap!i" and be!aviora&
"!ara"teristi"s 8Eri" 1$ S!a-0 20*290 -!i"!ever sour"e of mar(et se)mentation
No(ia "!ooses t!e "ompan' s!ou&d -or( to position its produ"ts in t!e minds of
"onsumers usin) t!e promotion part of t!e mar(etin) mix$
11. Conclusion
No(ia,s mission is to re)ain its &eaders!ip position in t!e smartp!one mar(et$ .!e
"ompan' sees )reatest potentia& for a"!ievin) its ob4e"tive in t!e partners!ip -it!
Mi"rosoft$ A""ordin) to t!e environment ana&'sis t!e most serious prob&em for t!e
"ompan' is t!e t!reat from existin) riva&s$ App&e /n" and Samsun) are t!e mar(et
&eaders0 "ompanies -it! innovative produ"ts and )reat mar(etin) strate)ies$ App&e is
usin) differentiation strate)' -!en introdu"in) its produ"ts0 and Samsun) is usin)
se)mentation strate)' for t!e ma4orit' of its produ"ts ex"ept for its f&a)s!ip devi"e$
No(ia !as bui&t some interestin) produ"ts in t!e Lumia series0 -it! ver' impressive
te"!no&o)ies and beautifu& desi)ns$ 1o-ever t!e mar(et su""ess of t!ese produ"ts !as
not been so )reat and No(ia did not a"!ieve its )oa& of be"omin) a mar(et &eader in
Europe$ A""ordin) to t!e ana&'sis t!e reason for t!is is -ron) imp&ementation of
mar(etin) strate)' and spe"ifi"a&&' prob&ems -it! t!e positionin) of t!e produ"ts$
No(ia !as introdu"ed its f&a)s!ip devi"e at a !i)! pri"e -it! ver' innovative
te"!no&o)' and !as position it in t!e !i)!6end "ost&' Smartp!one mar(et$ .!e produ"t
is introdu"ed b' imp&ementin) differentiation strate)'$ .!is strate)' imp&ementation
is "orre"t a""ordin) to t!e ana&'sis0 as t!e produ"t is introdu"ed -it! a))ressive
mar(etin) mix0 tar)etin) t!e mass mar(et$ Lumia 920 !as seen )reat interest in t!e
Smartp!one mar(et in Europe$ 1o-ever t!is produ"t is on&' one of t!e nine Lumia
devi"es0 -!i"! !ave been introdu"ed in t!e past "oup&e of 'ears$
A""ordin) to t!e ana&'sis No(ia !as tried to use se)mentation strate)'0 -!en
mar(etin) t!e rest of t!e Lumia produ"ts$ Se)mentation strate)' invo&ves dividin) t!e
mar(et into sma&&er mar(et se)ments based on different "!ara"teristi"s of t!e
"ustomer )roup$ A "ompan' !as to "!oose amon) t!ose mar(et se)ments and bui&d
produ"ts suitab&e for t!e "!osen se)ments$ ustomers !ave to be a-are t!at t!e
produ"ts re"o)ni7e t!eir needs0 so positionin) is important for t!e su""ess of su"!
strate)i" de"ision$ 1o-ever -!en ana&'7in) No(ia,s se)mentation strate)'0 it does
not be"ome "&ear -!at t!e se)mentation a"tua&&' is$ .!e produ"ts are not positioned
-e&& in t!e mar(et0 and "ustomers ma' !ave !ard time "!oosin) amon) Lumia series$
.!is prob&em "ou&d be ma(in) "ustomers to turn to one of No(ia,s riva&s su"! as
Samsun)0 -!i"! !ave positioned -e&& t!eir produ"ts and are &ettin) t!eir "ustomers
(no- t!at t!eir "ompan' provides -!at t!e' need$ / be&ieve t!is is rea&&' !armfu& for
t!e "ompan' as t!e Lumia p!ones are important strate)i" point for No(ia in its
4ourne' of re)ainin) its &ost )round in t!e Smartp!one mar(et$ No(ia0 as pointed out
in t!e vision of t!e "ompan'0 main&' "ounts on its partners!ip -it! Mi"rosoft to
a"!ieve its ob4e"tives$ .!is mar(etin) strate)' mista(e ma' !arm t!e future su""ess
of t!e "ompan' )iven t!e !i)! s-it"!in) "osts for "onsumers bet-een different
operatin) s'stems$
/f No(ia introdu"e ot!er produ"ts in t!e Lumia series0 it -ou&d be usefu& for t!e
"ompan' to fo&&o- a simp&e frame-or( for se)mentation strate)' formu&ation$ .!e
"ompan' s!ou&d tr' to fo"us more on t!e "ustomer0 and bui&d produ"ts for t!e mar(et
se)ments it -ou&d &i(e to tar)et$ A&so it s!ou&d use t!e promotion part of t!e
mar(etin) mix to position its produ"ts0 and inform t!e "ustomer of -!at No(ia offers
and for -!om$


6eference .ist
Bu) !its ne- No(ia Lumia 900 smartp!one$ 820*20 Apri& **9$ Detrieved on 3ebruar'
*00 20*+0 from: !ttp:KK---$bb"$"o$u(Kne-sKte"!no&o)'6*%6%#+*9
Desmarais0 $ 820*+9$ =oo)&e0 App&e0 Mi"rosoft app number -ars !eat up$ Detrieved
3ebruar' *00 20*+0 from: !ttp:KK---$p"-or&d$"omKarti"&eK202+%5+K)oo)&e6app&e6
mi"rosoft6app6number6-ars6!eat6up$!tm&
Di"(son0 B$ D$0 L =inter0 C$ L$ 8*95%9$ Mar(et Se)mentation0 Brodu"t Differentiation0
and Mar(etin) Strate)'$ -ournal Of *arketing0 ./8290 *6*0$
Donne&&'0 A$ 820050 ?"t 0*9$ No(ia$ Mar(etin)0 *56*5$ Detrieved on 3ebruar' 6t!0
20*+ from: !ttp:KKsear"!$pro2uest$"omKdo"vie-K2*496*929FM*4465
Dru"(er0 B$ 8*9%+9 *anagement: )ask% 'esponsibilities and Practices0 Ne- Ior(:
1arper and Do-$
E&6Ansar'0 A$ 820069$ Mar(etin) strate)': .axonom' and frame-or(s$ European
Business Devie-0 *58490 2666266
Hin)0 A$ 820*29$ Lumia 920 pre6orders doin) -e&& in Europe$ Detrieved on 3ebruar'
*00 20*+ from: !ttp:KK-insour"e$"omK20*2K*0K*%K&umia69206pre6orders6doin)6-e&&6in6
europeK
Hot&er0 B$0 He&&er0 H$ L$0 Brad'0 M$0 =oodman0 M$ and 1ansen0 .$ 820099 *arketing
*anagement0 *st ed$0 Bearson Edu"ation Limited$
No(ia0 about us$ Detrieved Mar"! *00 20*+ from:!ttp:KK---$no(ia$"omK)&oba&Kabout6
no(iaKabout6usKabout6usK
No(ia and Mi"rosoft form partners!ip$ 820**0 3ebruar' **9$ Detrieved 3ebruar' *00
20*+0 from: !ttp:KK---$bb"$"o$u(Kne-sKbusiness6*242%650
No(ia at "risis point0 -arns ne- boss Step!en E&op$ 820**0 3ebruar' 99$ Detrieved
Mar"! 20 20*+ from: !ttp:KK---$bb"$"o$u(Kne-sKte"!no&o)'6*240+466
No(ia0 &eaders!ip team$ Detrieved Mar"! *00 20*+ from:
!ttp:KK---$no(ia$"omK)&oba&Kabout6no(iaK)overnan"eK&eaders!ipKno(ia6&eaders!ip6
teamK
No(ia mar(et s!are fa&&s but Mi"rosoft dea& "onfirmed$ 820**0 Apri& 2*9$ Detrieved
Apri& *%0 20*+0 from: !ttp:KK---$bb"$"o$u(Kne-sKbusiness6*+*#4%94
No(ia0 our peop&e and "u&ture$ Detrieved Mar"! *00 20*+ from:
!ttp:KK---$no(ia$"omK)&oba&Kabout6no(iaKabout6usK"u&tureKour6peop&e6and6"u&tureK
No(ia@s bet on <indo-s B!one 5: Expert opinions$ 820*20 September 49$ Detrieved
Mar"! 20 20*+0 from: !ttp:KK---$bb"$"o$u(Kne-sKte"!no&o)'6*94%965#
No(ia0 stor'$ Detrieved Mar"! *00 20*+ from: !ttp:KK---$no(ia$"omK)&oba&Kabout6
no(iaKabout6usKt!e6no(ia6stor'K
No(ia unvei&s t-o <indo-s B!one 5 !andsets$ 8September #0 20*29$ Detrieved +
Mar"! 20*+ from: !ttp:KK---$bb"$"o$u(Kne-sKte"!no&o)'6*949*42*
Borter0 M$ E$ 820059$ .1E 3/EE ?MBE././EE 3?DES .1A. S1ABE
S.DA.E=I$ 0ar"ard 1usiness 'e"iew% 238*90 %569+$
Samsun) dominates European smartp!one mar(et$ 820*+0 Mar"! 049$ Detrieved
3ebruar' *00 from: !ttp:KK---$mandm)&oba&$"omKne-sK0460+6*+Ksamsun)6
dominates6european6smartp!one6mar(et$aspx
Samsun) =a&ax' S+ Be"omes <or&d@s Best6Se&&in) Smartp!one Mode& in N+ 20*2$
820*20 November 59$ Detrieved Apri& *90 20*+0 from:
!ttp:KK---$strate)'ana&'ti"s$"omKdefau&t$aspxFMpressre&easevie-erLa0M#+0*
Samsun) Leads European Smartp!one Mar(et A!ead of App&e$ 820*+0 3ebruar' 2%9$
Detrieved Mar"! **0 20*+ from:
!ttp:KK---$"oms"oredatamine$"omK20*+K02Ksamsun)6&eads6european6smartp!one6
mar(et6a!ead6of6app&eK
Samsun)0 mobi&e devi"es$ Detrieved Mar"! *20 20*+ from:
!ttp:KK---$samsun)$"omKu(K"onsumerKmobi&e6devi"esKsmartp!onesKandroidK
Samsun) overta(es No(ia in mobi&e p!one s!ipments$ 820*20 Apri& 2%9$ Detrieved
Mar"! +0 20*+0 from: !ttp:KK---$bb"$"o$u(Kne-sKbusiness6*%56#**%
S!arp0 B$0 *99*Oompetitive Mar(etin) Strate)': Borter DevisitedO0 *arketing
4ntelligence 5 Planning% 68*90 4G*0
S!a-0 E$ 1$ 820*29 Mar(etin) strate)': 3rom t!e ori)in of t!e "on"ept to t!e
deve&opment of a "on"eptua& frame-or(% -ournal of 0istorical 'esearch in
*arketing% 78*90 +0G##
Smit!0 <$ D$ 8*99#9$ Brodu"t Differentiation and Mar(et Se)mentation As
A&ternative Mar(etin) Strate)ies$ *arketing *anagement% 78+90 6+66#$
Ste&&ar )ro-t! sees !ina ta(e 2%> of )&oba& smart p!one s!ipments0 po-ered b'
domesti" vendors$ 820*20 Au)ust 29$ Detrieved 3ebruar' 90 20*+ from:
!ttp:KK---$"ana&'s$"omKne-sroomKste&&ar6)ro-t!6sees6"!ina6ta(e62%6)&oba&6smart6
p!one6s!ipments6po-ered6domesti"6vendors
Stevenson0 A$ 820*29$ No(ia Lumia 920 and 520 smartp!ones to !it Europe in
November$ Detrieved on Mar"! +0 20*+ from: !ttp:KK---$v+$"o$u(Kv+6
u(Kne-sK2205%44Kno(ia6&umia69206and65206smartp!ones6to6!it6europe6in6november
ABDA.E *6Samsun) overta(es No(ia in <estern Europe G /D$ 820**0 Ma' #9$
Detrieved Apri& *90 20*+ from: !ttp:KK---$reuters$"omKarti"&eK20**K0#K0#Ksamsun)6
europe6idASLDE%442BB20**0#0#
Eir(i0 .$ 820*29$ /nvestors &osin) fait! t!at No(ia "an stop t!e rot$ Detrieved Mar"! +0
20*+0 from: !ttp:KK---$reuters$"omKarti"&eK20*2K04K*2Kus6no(ia6
idASBDE5+B0P#20*204*2
<eber0 .$ 820**9$ No(ia bets on <indo-s B!one future$ Detrieved Mar"! 20 20*+0
from: !ttp:KK---$bb"$"o$u(Kne-sKbusiness6*#4#9**5
<!' does S'mbian "o&&apseF 820*+0 Canuar' 259$ Detrieved 3ebruar' *90 20*+0 from:
!ttp:KKpixe&ste"!$netKarti"&eK*+#9+6+945Q<!'QdoesQS'mbianQ"o&&apseQ
Iaro&0 C$ 820*+9$ <!' t!e /B!one /s Sudden&' <innin) /n .!e AS$ Detrieved Apri&
*90 20*+ from: !ttp:KK---$businessinsider$"omKapp&es6smartp!one6mar(et6s!are6
20*+6*