1. How do you think the marketing task for Nokia is different in developing markets (versus in developed countries)?
Nokia has conducted a customer-driven marketing strategy. They segment the market by income and they have divided their target group into developing markets and developed ones. They sell phones to over 150 countries and among them European countries contributes to 39 percent of its total net sales while Asia, Latin America, and other developing markets account for 56 percent. It is shown from the numbers that developing markets are essential for Nokia.
Nokia takes over the market shares in a way similar to Honda. It started by focusing on developing ...view middle of the document...
They positioned themselves as an innovative company. And they have developed new technology such as nanotechnology and flexible materials to differentiate themselves.
Different position and differentiation in the market leads to different marketing mix of Nokia, one being providing cheap, multi-user and simple functions phone toward developing markets; another being making innovative, high-tech with customise functions phone to developed countries.
2. Comment on the Corporate Social Responsibility (CSR). To what extent do you think it attains its objectives?
As for Corporate Social Responsibility, Nokia has put an effort in sponsoring preschool care and education in rural China. They founded SEK 60 million in the Heart to Heart, Hand to Hand project of Plan to develop preschool care throughout China. Nokia committed SEK 62 million to the 2008 earthquake areas including a SEK 12 million project to help entrepreneurs launch their business. For a huge market as China, these kind of actions allows Nokia to have a more sustainable relationship with Chinese customers. Setting the ultimate purpose of all these sponsorships aside, there’s no denied that Nokia has been committed into their corporate social responsibility works. And they do hold a top ranking of Greenpeace guide to greener electronics. I would say that overall Nokia has fit its strategy of “doing things that matter the most”.
3. How does the competitive position of Nokia differ in developing markets (from those in developed markets)?
The competitive environment of Nokia differs greatly from developing markets to developed markets. In developing markets Nokia is the market leader and has most of the market shares. They competitors would be those cheap-phones providing companies but clearly Nokia is the major company in this market segment. In developed markets, however, Nokia has much more competitors such as Apple, Samsung, Sony and LG. Nokia’s leading position in developing markets provides them with more resources to develop and transform their products in developed markets to attain competitive advantage. And because of the marketing strategy, Nokia has a solid customer loyalty in most of the markets. This is hard to copy because their customer loyalty is gained from a long period of time. In one word, Nokia’s competitive advantage in developed markets is not as strong as that in developing markets but they still have a pretty good market share. Being a market leader in developing markets, what Nokia needs to do is to protect and expand its market shares. And being more of a market challenger in developed markets, Nokia...