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Nokia vs. Vertu Essay

            Gaining competitive advantage is one of the objectives of marketing these days. Companies conduct marketing research in order to obtain relevant data for various purposes, such as expanding their client bases or reach, adding value to their company, increasing revenue, etc. This holds true for mobile phone marketers. The fast growing industry of technology is pressuring mobile phone companies to gain, maintain, and continue expanding their position in the corporate arena. Almost every season, new technological advancements are being introduced to society. Mobile phone trends kept on shifting, from infrared to Bluetooth technology, speakerphone to videophone through 3G, or from taking pictures with VGA cameras to mega pixel cameras.

For Nokia, segmentation is the solution in order to cope with technological advancements, and use them in order to appeal to broader customer profiles. The company utilizes the diverse profile of their customers and provides a wide selection of mobile phones and accessories. These mobile phones and accessories come with different features or technologies, styles and formats, and are made available at varying prices. This allows Nokia’s customers to earn the privilege of choosing which mobile to phone purchase, but still end up buying a Nokia mobile phone. Nokia has been

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catering to a diverse client base with a large offering of mobile phones almost every quarter

One of the most recent moves of Nokia was to expand its reach and obtain a greater client base by offering new products to consumers belonging to the higher classes of society. Nokia has established the brand Vertu. Vertu is a luxury brand by Nokia, which offers a limited but highly opulent line of mobile phones specifically priced for high-end consumers to afford. This clearly adheres to the Nokia vision and strategy, which is to establish and expand the business to guarantee the future of the company. (Nokia, 1997) Moreover, Nokia has made it their goal to offer the best quality products in the market in order to go beyond the expectations of their customers. This corporate culture is said to establish a loyal client base, and spell out leadership in mobile phone marketing and excellence in productivity. (Nokia, 1996)

The website designs of Nokia and Vertu creates the defining line that differentiates the image of Nokia and Vertu. It establishes a distinction between the profile of Nokia consumers and Vertu consumers. Vertu mobile phones claim to be specially handcrafted in England, and designed and formed with only the best materials. The Vertu line is supposed to occupy a stance that exemplifies the best of the best technologies, style, and quality in mobile phones. Moreover, Vertu mobile phones are manufactured in a state-of-the-art facility in England where everything that has something to do with Vertu is taken care of. Perhaps, this secures the luxury brand, the production phase, and the components of Vertu, in order to avoid being imitated by other mobile phone companies. It also boasts of security and uniqueness when it comes to the production of the Vertu line. Overall, the Vertu website exuded classy and luxurious appeal. Although it was simply designed, browsing through the website was an interesting experience.

Nokia mobile phones are overrated. With hundreds of models built throughout the years, there is nothing more significant in looking through the Nokia website as compared to the Vertu website. Mobile phone production is simple. Mobile phones are designed and price according to style and functions, and as mobile phones become expensive, they claim to provide more and more services. With mobile phones at equal prices, they just offer something uniquely absent from the other. There is a mobile phone for everyone, either for the lower, middle, or higher classes of society. The Vertu just moved a notch higher by going extreme when it comes to production, standards, and pricing.

The Vertu luxury brand is one marketing strategy for Nokia in order to obtain more consumers, targeting those who belong to the higher classes of society. It creates a particular culture or identity that spells out “high-end,” specially made for those who are luxuriously rich to afford Vertu mobile phones. It creates a distinction between the classes of society as it labels the middle and lower classes who can afford mobile phones along a particular price range, and the higher classes who are presented with a luxury brand that offers mobile phones in platinum or gold that would set them apart from the rest of the mobile phone users. (Vertu, 2008)

I think, however, that although Nokia’s interest and objective in establishing such a brand is to expand their client base, selling a mobile phone worth $5000 is over the top. It leaves individuals in the middle and lower classes to think about the difference in value between Nokia and Vertu mobile phones. With the mobile phones that Nokia offers, consumers are left wondering about what makes Vertu mobile phones so different that it is priced extremely higher than Nokia mobile phones, and what makes Nokia mobile phones valuable even with the price that consumers pay for it now that a bigger brand has redefined mobile phone pricing. It is more of lack in social responsibility and consciousness because Vertu creates a distinction between who can afford what types of products. Although this idea is on the extreme of things, perhaps, Nokia does not intend to exude such image.

Using a different brand name to label its luxury brand is advantageous as the objective is centered on obtaining a client base that belongs to the higher classes of society. As aforementioned, manufacturing mobile phones packed with features and with a stylish design made from expensive material, deserves to be established as a different line of mobile phones in order for Vertu’s target consumers to see what it has to offer. It is clearly different from the mobile phones marketed by Nokia, therefore, naming it a different brand name is just appropriate. Moreover, offering a different brand name creates a distinction between the profile of Nokia consumers and Vertu consumers, which makes it appealing to individuals belonging to the higher classes of society as they are being offered with a new and specialized line of mobile phones just for them.

Nokia brands are being marketed to individuals as the leading technological mobile phones that are designed for individuals from all walks of life. Nokia uses the media, such as appealing and motivating television advertisements and adapts what the marketing world calls “fast fashion” in the realm of fashion industry. Fast fashion is the production of trendy clothes at a faster pace, done almost every two weeks. Nokia operates in the same way, as it is producing mobile phones fast enough by manufacturing mobile phones with different designs and features, and by upgrading previous models making it better and advanced.

For Vertu, I am sure enough, manufacturing new mobile phones and upgrading previous mobile phones is not the way to go. With the price range of Vertu, consumers have to feel that the price they pay for their mobile phones exceed greatest mobile phone quality. It should not be easily replaceable by newer mobile phone models boasting of new features. Since it claims to be the best of the best, as it is handcrafted in England and made especially in a secure facility, individuals should be able to determine what is special in Vertu mobile phones. There should be a distinct reason why Vertu is for individuals in the higher classes of society and why they are sold for extreme amounts. It should not appear too much in television advertisements or other mediums of marketing and advertising in order to establish the image of uniqueness while at the same time providing quality mobile phones that fits the price that consumers pay for them. I believe that marketing Vertu mobile phones should be done directly to consumers who belong to the higher classes of society, since it boasts of high-end mobile phone technology and service.

Nokia has been doing it for years, for their previously high-end mobile phones, prior to their establishment of Vertu. Nokia mobile phones that were designed for high society were introduced through galas, dinner parties, and other exclusive events. Perhaps, Vertu should apply this marketing strategy, distribution and promotional technique in order to directly sell the Vertu line to its rightful costumers.

References

Nokia. (1997). Vision and Strategy. Retrieved May 19, 2008, from Nokia. Website:

            http://www.nokia.com/A4126317.

Nokia. (1996). Quality. Retrieved May 19, 2008, from Nokia. Website:

            http://www.nokia.com/A4126368

Vertu. (2008). Retrieved May 19, 2008, from Vertu. Website: http://vertu.com/en/?.

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