Mktg plan of Nokia - Phase 1 (4)

CUSTOMER ANALYSIS

At present, almost everyone uses cell phone. Therefore, the target segment for this market cannot be specific. Nokia needs to target population according to their usage by providing customize service plans so that the customer can select the plan which meets their requirements. They can also segment customers regionally as the usage is much more in urban market. 

SWOT ANALYSIS

Strengths:

Huge market share: Nokia has huge market share in the cell phone sector and therefore can use its image to be successful in the service provider market. World-class technology: Nokia can make use of its world class research and development team to design better network coverage for its sim-cards.

Geographical Reach: As Nokia is one of the renowned brands globally, its presence in the market is very high and can use this to provide its sim-cards service to majority of population.

Weakness:

New in the market: As Nokia is new in the service provider market, it will be difficult to attract customers towards its sim-cards and service plans.

High customer churn rate: Due to many competitors in the market and less margin to differentiate the service from competitors, customers switch from one service provider to other if they are not satisfied with its service.

Opportunities:

Untapped Market: Nokia is new to the service provider market and has an opportunity to explore the market.

High market growth rate: As the number of people using mobile phones is increasing rapidly. There is high growth rate in the market.

Increase Market Share: Nokia can increase its market share by untapping the service provider market and increasing its customer base.

Threats:

Competitors threat: Nokia face competitors threat from market leaders such as Airtel, Vodafone and also from new entrant Aircel which has been successful to gain market share within a short period.

Global recession: It led to less amount of disposable income with the customers. Hence, customers think twice before investing his money.

Market Saturation: It poses as another threat if the service provider market saturates due to financial crisis caused by recession.

CONCLUSION

Nokia’s strategy to diversify from cell phone manufacture to Nokia mobile network will be a great success. Moreover, it can use its goodwill and loyalty of people towards Nokia cell phone to use its sim-cards. As majority of service provider’s focus on urban areas, Nokia can use its geographical reach to untap the rural market.