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Nokia and Its 4Ps Marketing Mix Analysis under Chinese Marketing Environment Nokia is the most famous mobile phone manufacture around the world. Its slogan “Technology Connecting People” has been rooted in consumer’s mind deeply. Nokia House was constructed between 1995 and 1997. Nowadays, it is the working place of more than 1000 Nokia employees. 1 Exterior Factors Analysis of Nokia’S 4Ps Marketing Mix in China 1.1 Economic Factor Analysis The rapid development of economy also brings a good chance for mobile phone market. On the whole, Chinese macro economy has been growing at a steady rate in 2008. The GDP growth rate for the whole year might reach 11.5%. “This provides a good opportunity for the development of domestic mobile phone industry. From January to September of 2007，the output of domestic mobile phone industry Was over 400hm units. which Was 25.4％higher than the same period last year. The number of mobile phone users is increasing at a high speed. We can see that there is stable economic environment for the development of domestic mobile phone industry. 1.2 Political Factor Analysis China government pays much attention to domestic mobile phone industry and carries out new policies to regulate the mobile phone market. All of these provide a good political environment for both domestic and foreign mobile phone makers. China implements a license system in mobile phone industry. On December 31, 1998, Ministry of Information Industry and State Planning Commission enacted “some opinions on quickening the development of mobile telecommunication industry”. In January 1999, General Office of State Council enacted it in terms of No.5 Document. The document was to restrict the project determination, examination and approval strictly and also to bring the mobile phone production into the state guidance plan. This document was a symbol of the beginning of the license system in this industry. By the end of April of 2003，the Ministry of Information Industry had issued 49 mobile phone licenses altogether. Thirteen join-venture enterprises and seventeen domestic enterprises got GSM warrants. 1.3 Consumer Purchase Factor Analysis Chinese consumers’ purchase decisions are influenced by many factors, such as high tech appeal, entertainment, sense of class, user friendliness, quality, sense of fashion, reasonable price, function and some others. Among all these factors, function is the most important factor that consumers need when considering buying a mobile phone “Possess the needed functions” is the topmost factor affecting consumers’ purchase decisions. However, reasonable price is more important to buyers with a low budget. According to relative statistics, 31% of the total consumers would take mobile phones at a price of RMBl501-2000 as their first choice. 29% of the total consumers would consider mobile phones priced between RMB2501-3000 to be high status models, while 40% of the total consumers would consider mobile phones priced between RMB900-1000 to be the 10w status models.#p#分页标题#e# Chinese consumer’s preference for mobile phone design has been one of the most important factors which affect the purchase decision. According to the statistics，slide type phones are the most popular mobile phone design fur consumers. s85%of female consumers consider camera as a fundamental design of a mobile phone, while 82% of the male consumers consider expanding storage by memory card as the foremost design. As the affection of Korean and Japanese culture，Chinese consumers begin to buy Japanese and Korean mobile phone, such as LG, NEC, Panasonic, Samsung, Sharp, and Sony Ericsson. It is reported that 57％consumers would like to buy LG mobile phone because of its attractive design.” 1.4 Main Competition Factor Analysis Motorola In Chinese market，one of Nokia’S main competitors is Motorola．Although Motorola recorded a loss of 28 million U.S. dollars in the second quarter following its first quarter losses, its first back-to-back losses in five years, according to its financial report announced in July 2007, and its weak performance made analysts to say it had slipped to No.3 in thehttp://www.ukassignment.org/daixieAssignment/daixiehelanassignment/ global mobile phone market behind Nokia of Finland and Samsung of the Republic of Korea in the second quarter of 2007,At is still one of the main competitors for Nokia in China. Here are some strength analyses about Motorola: First, Motorola has a strong market position in China. It Was the second largest worldwide supplier of mobile phones before 2007. With a market share of approximately 22% in China Second, Motorola has the strong R&D capability in China. R&D expenditure relating to new product development or product improvement was approximately $80 million in 2006. Samsung: Samsung Company is one of the most popular companies recently and ranks the No.2 in the mobile phone industry around the world. It develops at a fast speed and has strong innovation capability. It is also an important competitor in Chinese mobile phone industry. The main advantage of Samsung is its high speed of product innovation ability. Samsung increases its market share at a high speed of more than 20 new styles innovation ability each year, Samsung has a strong R&D research capability and good mobile phone quality guarantee. The company’ S research and development expenditure is increased annually. Strong R&D operation enables the company to develop innovative products, which can increase revenue and enhance brand image. At the same time, Samsung uses its slogan “Samsung Digital World Welcomes You” to connect its innovation idea with other famous brands. Domestic Mobile Phone Makers As the development of domestic mobile phone industry, some famous local companies appear continuously. This domestic mobile phone companies ale trying their best to compete with foreign companies. Some domestic mobile phone companies have started to develop foreign market. China has owned its famous brands in mobile phone industry，such as Bird, Lenovo and TCL. Compared with foreign companies, domestic mobile phone companies have a strong position in middle and low-end markets in a certain degree. For example, Bird has a strong marketing channel in low-end market, such as some middle and small cities and rural areas. All in a word, domestic mobile phone companies are important competitors in Chinese market.#p#分页标题#e# 2 4Ps Marketing Mix of Nokia in China 2.1 Product Nokia a great brand because it knows that the essence of the brand needs to be reflected by everything the company done, especially those that impact the consumer, Product design is clearly critical to the success of the brand. But how does Nokia manage to inject personality into product design? The answer is that it gives a lot of considerations to how the user of its phones will experience the brand, and how it Call make that experience reflect its brand character. The large display screen, for example, is the “face” of the phone. Nokia designers describe it as the “eye into the soul of the product”. The shape of phones is curvy and easy to hold. The faceplates and their different colors can be changed to fit the personality, lifestyle, and mood of the user. The soft key touch pads also add to the feeling of friendliness, expressing the brand personality. All in a word, the design of product is an important part for Nokia’s development. In 2008, Nokia gained several design awards with four types of mobile phones. There were N95, Nokia N85, Nokia N78 and Nokia E series. From this point, we can fee that Nokia pays much attention to the product design and tries its best to make its design meet consumers’ demands. 2.2 Price Nokia sets a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price. For the consumers, Market skimming makes sense only under certain circumstance. First, the consumers should have strong purchase ability, so they can support the high price. Second, the consumer should be not price sensitive layer. Nokia 88 series, 89 series and 9 series were made for those high end costumers whose mobile phones would not be changed too frequently and those mobile phones used by them could embody their status. These kinds of products would not cut their price easily and have a long life cycle. Nokia often adjusts its basic price to allow for differences in consumers, products, and locations. As the coming of 3G age, diversified products call meet consumers’ different needs. This provides a good opportunity for Nokia to use the segmented pricing strategy. In the meanwhile, Nokia also adopts the psychological pricing and pushes new products with low cost and high performance to improve consumers’ loyalty. For example, the products of Nokia 8 series belong to medium end products. These products are fashionable, and could show the consumers’ personality. They are made for those costumers who favor the fashionable products, have certain purchasing capability, change the mobile phone frequently, pursue new technologies and new products, and pay much attention to their life quality. 2.3 Promotion (1)Innovation of Promotion Method Oriented by Target Consumer “Technology Connecting People” is Nokia’s distinguished brand concept. Through TV advertisements, magazine advertisements and leaflets, the concept has been deeply rooted in consumer’s mind. Except some traditional promotion ways, Nokia adopts some new ways to announce its new products. When selling classical mobile phone Nokia 8810. Nokia sold the products on Internet and became the first firm adopting interactive advertisement in Asia. Nokia held celebrity salon with the theme “the upper life” to push its new product Nokia N95 in 2008. Its target consumer was the top end consumer who paid attention to life quality and adored elegant product design．In order to announce its new product, Nokia cooperated with the famous star Wang Lihong, pushed its new product Nokia 3230 to the youth, Nokia 3230 was a music smart phone, which embodies the demands of the youth at that time. In December 2008, Nokia cooperated with Hunan TV Station, and held a concert named “Music let me feel happy” to push its middle end products. In July 2007, Nokia held a concert named “Nokia’s stylish trend night” to announce its new product Nokia 7500 prism, which was the unique design for Chinese market that month.#p#分页标题#e# (2)Enhancement of Promotion Management In China, Nokia has built a large database, which can collect lots of messages about promotion activities. Nokia knows that the key problem to product promotion is data quality. However, some Chinese companies are not willing to spend the money required for data management to track segment, and communicate special appeals. As a result, Nokia builds a dose relationship with its customers and gains a strong advantage in cross selling. Direct marketing investment is predicated upon a company’s conviction that it will retain its business focus and its customer base will be permanent. Chinese companies are never convinced that they will remain in the same business. Their customer base is fluid. By its database, Nokia improves its promotion management effectively. Furthermore, Nokia make a dose control of terminal promotion activities．Within its whole distribution system．Nokia controls nearly 52%of various terminal sales points. Depending on these short distribution chains, Nokia can control the terminal retailers closely and Call get consumers’ information immediately. By this way, Nokia can enhance its promotion management. 2.4 Place In the new system, Nokia’s province-level branches perform the wholesalers’ function, directly provide products for retailers, there is only one layer in the distribution network. Nokia selects the location and manager of FD platform. By innovation of distribution channels, Nokia owns a reasonable distribution system. With the simplification of distribution layers, Nokia delivers its products to customer’s at a faster speed, reduces distribution cost, makes the whole distribution system easier to management and creates much profit for distributors，retailers, consumers and itself. Because of the fierce market competition and fast changes in customers’ demands, Nokia invested RMB 10 billion in Bering Development Area and set up a world class telecommunication base in 2000. More than 20 partners were involved into Nokia’s supply chain．Now they have a Xing wang (International) Industrial Zone that combines the activities of R&D, supply of raw materials and logistics services. 3 Conclusions Chinese mobile phone manufacturers have gained a remarkable achievement since 1999. And domestic mobile phone industry is being developed towards a right direction. However, there are still many problems in 4Ps Marketing Mix of domestic mobile phone industry. Nokia’s 4Ps Marketing Mix is successful. And all the implications ale helpful for the development of domestic mobile phone industry in the future. Reference Arch Wo Shaw,Some Problems in Marketing Distribution．Harvard University Press. Cambridge．1975 David Faulkner, Cliff Bowman，Competitive Strategy. China Renmin University Press. 2005 E. Jerome, Me. Carthy, Basic Marketing, Eleventh Edition．1990 Fulkerson B, Response to Dynamic Change in the Market Place [J]. 1997#p#分页标题#e# Hooley, Graham J, John Saunders, Competitive Positioning. The Key to Marketing Strategy. New York, NY: Prentice Hall. 1993 Joe Tiddect, Management Innovation，1997 John C. Mowen, Michael S.Miner, Consumer Behavior-A Framework. Tsinghua University Press. 2004 Ralph. Alderson. F. M Surfac. R E Elde and Wroe. Anderson, Marketing. Boston, Jinn. 1980 R. L. Vaile. Marketing Inter American Economy. Ronald Press．1982
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