Suggested Product strategy Essay
The three core benefits that customers want are multi-functions, stylish design and professional look. Therefore, Nokia has to put resources on these aspects in order to improve its image on the product quality and distinct itself from its competitors. At the moment Nokia has provide customers with technologies like 3G, Bluetooth, dual camera, GPRS, music player, WiFi, but not all functions are the what the customers want. Different target customer may have different requirement over the functions. Some of them may only need the basic ones, while some of them may want to follow the trend and desire for the most advanced technologies.
For the stylish design and professional look, different people have different definition and taste on these terms. It also depends on the current trend. It is very difficult to tell what is really stylish and which mobile phones have professional looks. Hence, Nokia has to adapt suitable strategies on its existing and new products. In the aspect of developing and launching new projects, Nokia has to carry out target market research and find out what the most important attributes in customers’ mind. It has to know the judging criterion of the customer on each benefits and integrate these benefits into
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For the existing product, they can carry out sales analysis and perform appropriate actions on the product. For example, they can carry out extension for the popular and profitable models, contraction for the less profit ones, and repositioning for the products that are have wrong and inappropriate target markets. Meanwhile, they can also study the popular models and get information about customers’ preference and acceptance of the various functions, stylish and professional design.
Pricing Strategies Mobile Phone industry is an oligopoly market in a mature stage of 2G mobile phone with a status quo pricing. Reducing the price not only can’t help to promote Nokia’s phone, but would only lead to price war. Also, from the factor-loading table, we can see that the attribute of reasonable price is not the most important factor to affect customers’ purchase decision. As a result, we suggest Nokia to keep its existing pricing strategy.
Promotion Strategies From the factor-loading table (Fig 12), we can see that our target customers perceive the factor of ‘widely advertised’ to be an important one. This is reasonable since there are always new models available and customers can only get the most updated product information through different advertising methods. From the perceptual map, it shows clearly that Nokia is already a market leading player in terms of Factor 2- Marketing Activities. In customers’ mind, Nokia has already heavily promoted for its mobile phone. Though, we can get important insights for the promotion strategy.