Tuesday, December 14, 2010

Mktg plan of Nokia - Phase 1 (2)


A marketing plan is a written document that outlines the marketers’ knowledge about the market place and point out how the company plans to achieve its marketing objectives. Kotler (1991) states that marketing plan is one of the most important output of marketing process.


I have selected Nokia sim-cards as their new product extension. As they are not in the service provider market, it will help them to diversify and gain market share through the goodwill they have created over decades.


In order to enter in to the sim card market, Nokia will have to face competition from already existing service providers such as Bharti Airtel which is the market leader with over 93.92 million subscribers and market share of 21.73%. Followed by this is reliance and Vodafone with market share of 17.49% and 17.46% respectively. Whereas, new entrant Aircel has bagged 18.48 million subscribers and market share of 6.40% within a short span of time. This indicates there is increasing demand in this market.
Hence, Airtel, Vodafone, Reliance, and Aircel are major competitors which can dissuade
the growth of Nokia.


It is a tool that helps organization to better understand the environment in which they function (Kress, Webb, and Synder, 1994). It is critically assessing the market in which the organization is launching a product. And is a vital step in development of marketing plan. One of the methods used in market analysis is Porter’s five forces framework. It implements five forces that show competitive force and attractiveness of the market.

Bargaining power of Buyers (Customers): The customers in the service provider market have high bargaining power because of following reasons:
·  Availability of many service providers.
·  The service is undifferentiated as most of the service providers provide same service.

Bargaining power of Suppliers (Service Providers): The service providers have limited bargaining power due to following reasons:
· Existence of many service providers.
· Fewer margins to differentiate service from other service providers. 

Threat of New Entrants:
As there is significant growth in this market for the past few years, which results in increasing threat from new entrants.
· Growing interdependence between service provider and cell phone manufacturer.
·  Low entry barrier.

Threat of Substitutes:
There is much threat from substitutes due to availability of many service providers and also due to less scope to differentiate from the competitors.

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