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A Presentation on
PLC of Nokia & Samsung
Product Life Cycle
Product life cycle describe the changes in consumer demand over time. No product can be in demand forever. Trends, technology and lifestyles change, which affects consumer demand.
a
1.Focused on handset manufacture only
2.Enhanced product portfolio
3.Large distribution channels
4.Adjust preferences for specific markets
5.Customer satisfaction
6.Focused on replacement (Recycling)
MARKETING STRATEGIES OF NOKIA
Time
Sale
s or
Pr
ofit s
Growth
Maturity
Decline
Introduction
Sales curve
The Concept Phones
Nokia E- series
Nokia Symbian & N- Series
Nokia Windows & Symbian phones
PRODUCT LIFE CYCLE OF NOKIAStages Time DurationIntroduction 1995 - 2002Growth 2002 - 2009Maturity 2009 - 2011Decline 2011 to till now
INTRODUCTION STAGE ( 1995 – 2002)
NOKIA 2110
PRODUCT
1. Entered India in 19952. Launched very few models due to lesser demand & innovation3. Sold both GSM & CDMA phones4. Launched 1st model Nokia 2110 with Nokia tune5. 2110 was 1st model capable of sending/receiving sms6.Competed with the then market leader ‘Motorola’
1. Followed ‘Price Skimming’ strategy
2. Launched Nokia 2110 at Rs. 22000 (approx.)
3.Launched phones in the range of Rs. 15000 to 25000
PRICE
China/ChennaiGurgaon’s
mother warehouse
HCL India warehouse
Sub-distributors (Marketing-South
Delhi)
Nokia Priority Dealers/Organis
ed retail
Customers
PLACE
1. Rarely followed any discounting policy
2. Offered a good amount of backend profit to retailers
3. Mobility factor of mobiles attracted customers without any promotional scheme
PROMOTION
a
Growth rate 120%
GROWTH STAGE ( 2002 – 2009 )
Launched phones without external antenna
Had better features like games, alarm, ergonomic keypad, display etc.
Models like Nokia 3310/3315 marked beginning of growth stage
Launched models like N95 to compete with Apple’s i-phone
PRODUCT
PRICEa
1. Followed ‘Price skimming’ strategy in beginning of ‘growth stage’
2. Launch price of 3310 was approx. Rs. 21000/-
3. As profits & popularity increased prices were slashed to Rs. 5000/- in 2003 for popular models like 3310
4. Later-on in coming years, Nokia adopted ‘Price penetration’ strategy
1. Post-paid connections were given free with select Nokia models
2. Person owning ‘pager’, who purchased Nokia phones were given discount on post-paid tariffs
3.Dealers & retailers got a large amount of ‘backend profit’ to increase the sales & drive growth
PROMOTION
a
MATURITY STAGE ( 2009 – 2011 )
Growth rate 45%
Launched a lot of touch screen models
Launched 1st Maemo 5 OS phone N-900
Launched Qwerty+touch model N-97
Focussed on E-series phones to compete with Blackberry
PRODUCT a
1.During 2007, 15,000 ton packaging material has been saved by using smaller packaging
2. Nokia have reduced amount of printed material inside the box
3. In 2007 Nokia began to increase level of recycled content
Packaging is important because it protects products as they make their way from factory to customers
Attractive, Good & Secure packing
PACKAGINGa
Followed ‘Price penetration’ strategy to sustain growing competition
Launched models ranging from Rs. 1000 to Rs. 30000
Frequently reduced prices of popular & low end models to compete with Micromax, Samsung, LG, etc.
PRICE
PROMOTION
1. Offered combo discount on purchase of Nokia bluetooth stereo headset with N8.
2. Offered Sennheiser music headset free with select models
3. During festive occasions Reebok wrist watches, sunglasses, t-shirts & sling bag were also given as gift with select models
4. Scratch cards were given to customers to make them avail instant discount
q
DECLINE STAGE ( 2011 – till now )
Upgraded its Symbian OS with ‘3’ & ‘Belle’
Shifted focus on Windows as its main OS
Launched 1st Windows phone, Lumia 800
Used Symbian only in low end models
PRODUCT
a
PRICE
1. Price penetration strategy was continued as company’s profits declined due to cut-throat competition from Samsung & local players like Micromax
2. Had phones ranging from Rs. 1000 to Rs. 30000
3. Reduction in price also lead to deterioration in quality
PROMOTION
1. Companies distributed freebies like wrist watches & t-shirts with Lumia logo engrossed
2. During festive occasions Reebok wrist watches, sunglasses, t-shirts & sling bag were also given as gift with select models
3. Top 3 performing stores from each zone were selected for foreign trip organized by Nokia free of cost
4. Retailers were encouraged to sell Lumia phones by offering them more incentives on sale
1.Focused on all the electronics manufacture
2.Enhanced product portfolio
3.wide distribution channels
4.Adjust preferences for specific markets
5.Taeget all the segments.
6.Focused on Competition
7.Increased commitment to emerging market
8. Provide more than extra.
MARKETING STRATEGIES OF SAMSUNG
Time
Sale
s or
Pr
ofit s
Growth
Maturity
Introduction
The Concept Phones
Touch screen &Dual Series
Smart Android Phone& Galaxy series
PRODUCT LIFE CYCLE OF SAMSUNGStages Time Duration
Introduction 2001 - 2006Growth 2006 - 2011Maturity 2011 – till now
INTRODUCTION STAGE ( 2001 – 2006)
SAMSUNG R220
PRODUCT
1. Entered India in 20012. Launched very few models due to lesser demand & innovation3. Launched 1st model Samsung R220 with Simple blue display.4. Competed with the then market leader ‘Motorola’ and Nokia.
1. Followed ‘Penetration Pricing’ strategy
2. Launched Samsung R220 of Rs.9000/- (apx.)
3.Launched phones in the range of Rs. 8000 to 20000
PRICE
Koriamother
warehouse (Delhi)
Sub-distributors (All the State)
Samsung Dealers/
Organised retailCustomers
PLACE
1. Samsung follow discounting policy. (as par mobile phone)
2. Offered a good amount of backend profit to retailers
3. Advertisement in Print Media
PROMOTION
GROWTH STAGE ( 2006 – 2011 )
Growth rate 1480%
Launched phones without external antenna
Had better features like games, alarm, ergonomic keypad, color display etc.
Wide range of simple or Dual sim mobile marked beginning of growth stage (GURU)
Launched wide range of touch screen mobile phones to compete nokia
PRODUCT
PRICE
1. Followed ‘Price penetration’ strategy in beginning of ‘growth stage’
2. Launch simple mobiles with price of Rs. 2000 – 4000
3. Touch screen ( 9000 – 22000)
1. pre-paid connections(Idea,airtel,vdafone) were given free with select any samsung models
2. Gifts (kitchen ware).
3.Dealers & retailers got a large amount of ‘backend profit’ to increase the sales & drive growth,
PROMOTIONa
4. TVC, Sales promotion , Print media
a
Growth rate 67%
MATURITY STAGE ( 2011 – till now )
Launched Smart phones with android
Galaxy series
Launched Windows phones to compete Nokia Windows mobile
Focussed on Galaxy S series phones to compete with All the competitors
PRODUCT
Followed ‘Price penetration’ strategy to sustain growing competition
Launched models ranging from Rs. 6000 to Rs. 60000
Frequently reduced prices of popular & low end models to compete with Micromax, Sony, LG, etc.
PRICE
PROMOTION
1. Special Offers on Credit card payment for above price of Rs. 20000
2. TVC for Galaxy Series 3. Discount Coupons4. Print Media ( Business Magazines)
Comparison of Growth rate
Introduction Growth Maturity Decline-200%
0%
200%
400%
600%
800%
1000%
1200%
1400%
1600%
0%
1120%
45% -65%0%
1480%
67%
Growth Rate
NokiaSamsung
1995 1998 01 04 07 10 13 16
Intro. Intro.
Growth
Maturity
DeclineMaturity
Growth
Nokia Samsung
Year
Gro
wth
PLC Comparison
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