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Nokia, its strategies and its wrong Marketing Mix in the case of the N-Gage

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Advanced
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marketing
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Commerce...

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documents in English
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case study
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24 pages
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When approaching this assignment, the second topic attracted us given its interest and the challenges it represents. We wanted to study a successful and well known company, constantly looking for new markets and offering new variants of known devices, to find out what a wrong Marketing-mix consists of for a global company promoting global products. In this way, and without hesitations, Nokia seemed to be relevant in this particular case. Indeed, the example of the famous ?N-Gage? strokes our mind and could be linked with the word ?failure?. The N-Gage began as a concept when Nokia noticed that more gamers were carrying a Nintendo Game Boy and cell phone simultaneously.
In order to argue why the giant mobile phone manufacturer failed to produce a multi-purpose device -encompassing the portable gaming-console and the phone's function- has failed, we decided to contrast it with the success of the mobile phone called the ?N-70?. The Nokia N-series such as the N-70 model has greatly contributed to the success lately as Jormal Ollila points out:

?I am delighted that our strategy to target new mobile communications market segments is working well, as evidenced by the success of the Nokia N-70 multimedia device: the highest revenue generator for Nokia this quarter and the world's number one selling WCDMA device?

However, it is important to introduce in a first part a history of Nokia and point out key numbers dealing with its industry. Finally, in order to illstrate the contrast, the 2 products will mainly be analyzed through the most relevant P's which are the Product and the Price.

[...] Finally, the N-Gage wasn't able to compete in a market where the technology is an important factor and was therefore outdated very quickly in the mobile phone market. In order to save its invention, Nokia tried to adapt itself to the market factors but negative words of mouth and public relation sunk the Finnish new invention. Appendix A. Worldwide Mobile Terminal Sales to End-Users in 2005 (Thousands of Units) Sales Share Ericsson Source : Gartner Dataquest (Feb 2005) B. The N-Gage C. [...]


[...] They did not take into consideration the pricing strategy of its competitors who was rather in the entertainment and video game sector than the mobile phone industry. Given this product is unique and was available at a high standardized global price, it is clear that this is a skimming strategy according to Hollensen (2001). However, potential buyers -the ?early adopters?- had trouble with its price and still saw it as an expensive phone replacement, not a game console. Even if mobile retailers cut prices down, sales have not been affected and still stay under expectations. [...]


[...] Strategic HR Review 22-25, May/June 2002 [Full text in Business Source Premier database] 3G standard (2006) http://www.three-g.net/3g_standards.html [Accessed 2 May 2006] Arstechnica (2005) http://arstechnica.com/news.ars/post/20051125-5627.html [Accessed 14 May 2006] BBC News: growth aids Nokia mobile share? (2006) http://news.bbc.co.uk/1/hi/business/4927506.stm [Accessed 2 May 2006] Business 2.0 Magazine (2004) http://money.cnn.com/magazines/business2/business2_archive/2004/01/01/359630 /index.htm [Accessed 12 May 2006] Business telecommunications equipment in France, UK, Germany, USA (2005) http://www.euromonitor.com/mrm/ [Accessed 30 April 2006] Business week: ?Nokia's Big Leap? (2003) http://www.businessweek.com/magazine/content/03_41/b3853014_mz044.htm [Accessed 2 May 2006] Cellular and wireless telecommunications system in France, UK, Germany, USA (2005) http://euromonitor.com/mrm/ [Accessed 30 April 2006] CNET Asia Reviews (2005) http://asia.cnet.com/reviews/mobilephones/0,39051200,39091282p,00.htm [Accessed 20 May 2006] ComputerWorld http://www.computerworld.com/mobiletopics/mobile/story/0,10801,110739,00.htm l [Accessed 21 May 2006] Datamonitor: Nokia company profile (2005) http://dbic.datamonitor.com [Accessed 2 May 2006] Ferrago (2004) http://www.ferrago.com/story/3092 [Accessed 11 May 2006] Game Matters (2004) http://dukenukem.typepad.com/game_matters/2004/03/not_ngaging.html [Accessed 13 May 2006] Gartner Dataquest: ?Gartner Says Top Six Vendors Drive Worldwide Mobile Phone Sales to 21 Percent Growth in 2005? (2006) http://www.gartner.com/press_releases/asset_145891_11.html [Accessed 2 May 2006] GSMarena (2005) http://www.gsmarena.com/nokia_N-70-review-53.php [Accessed 20 May 2006] Informa UK [Infotrac Database] (2003) http://web1.infotrac.galegroup.com/itw/infomark/348/491/82549781w1/purl=rc1_ GBIM_0_A97091037&dyn=3!xrn_1_0_A97091037?sw_aep=dublinbs [Accessed 15 May 2006] Internet Magazine [Infotrac Database] (2004) http://web2.infotrac.galegroup.com/itw/infomark/387/822/88151816w2/purl=rc1_ GBIM_0_A112592435&dyn=6!xrn_1_0_A112592435?sw_aep=dublinbs [Accessed 14 May 2006] Lexis Nexis: Nokia company profile http://web.lexis-nexis.com/professional [Accessed 2 May 2006] Lordpercy (2006) http://www.lordpercy.com/nokia_N-70_review.htm [Accessd 20 May 2006] Mobile Games Magazine (2003) http://www.midlet-review.com/index?content=pedroscorner&id=5 [Accessed 13 May 2006] Mobile Review (2003) http://www.mobile-review.com/review/nokia-ngage-en.shtml [Accessed 12 May 2006] Mobile Review (2004) http://www.mobile-review.com/review/nokia-N-Gage-qd-en.shtml [Accessed 12 May 2006] Mobile Review (2005) http://www.mobile-review.com/review/nokia-N-70-en.shtml [Accessed 20 May 2006] Nokia in China (2004) http://press.nokia.com/PR/200604/1045813_5.html [Accessed 30 April 2006] Nokia press releases (2006) http://press.nokia.com/PR/200604/1045813_5.html [Accessed 6 May 2006] Spong (2003) http://news.spong.com/article/5661 [Accessed 12 May 2006] Symbian Freak (2005) http://www.symbian-freak.com/news/1105/ngage.htm [Accessed 14 May 2006] TECHDIGEST (2005) http://www.techdigest.tv/2005/03/nokias_ngage_pr.html [Accessed 15 May 2006] The America's Intelligence Wire [Infotrac Database] (2003) http://web6.infotrac.galegroup.com/itw/infomark/344/216/87499106w6/purl=rc1_ GBIM_0_A109890265&dyn=3!xrn_1_0_A109890265?sw_aep=dublinbs [Accessed 13 May 2006] The Daily Gamecock (2005) http://media.www.dailygamecock.com/media/storage/paper247/news/2005/11/28/Th eMix/Fall-Of.The.NGage- 1114030.shtml?sourcedomain=www.dailygamecock.com&MIIHost=media.collegepublis her.com [Accessed 13 May 2006] The Financial Times [Infotrac Database] (2004) http://web6.infotrac.galegroup.com/itw/infomark/683/802/87499148w6/purl=rc1_ GBIM_0_CJ116505122&dyn=4!xrn_1_0_CJ116505122?sw_aep=dublinbs [Accessed 14 May 2006] Vnunet.com (2005) http://www.vnunet.com/vnunet/news/2146487/nokia-holds-fire-mobile-gaming [Accessed 13 May 2006] Wikipedia (2005) http://en.wikipedia.org/wiki/N-Gage [Accessed 12 May 2006] Xin Feng Company (2003) http://www.fixup.net/tips/ngage/index.htm [Accessed 14 May 2006] 30179.jpg [Picture of the N-Gage] [online] http://e-katalog.com.ua/jpg_zoom1/30179.jpg [Accessed 20 May 2006] pic2.jpg [Picture of the ?Sidetalking? issue] [online] http://www.mobile-review.com/review/image/nokia/ngage/pic2.jpg [Accessed 20 May 2006] pic11.jpg [Picture of the Inconvenience of the buttons] [online] http://www.mobile-review.com/review/image/nokia/ngage/pic11.jpg [Accessed 20 May 2006] pic6.jpg [Picture of the the space conflict between the game and the battery] [online] http://www.mobile-review.com/review/image/nokia/ngage/pic6.jpg [Accessed 20 May 2006] pic02.jpg [Picture of the N-Gage QD] [online] http://www.mobile-review.com/review/image/nokia/N-Gage-qd/pic02.jpg [Accessed 20 May 2006] nokia_N-Gage_qd_add_28.jpg [Picture of the N-Gage QD game conflict fixed] http://www.interstar.ua/mobile/img/phones/nokia_N-Gage_qd_add_28.jpg [Accessed 21 May 2006] qdsilver2.jpg [Picture of N-Gage QD Silver Edition] [...]

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