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A Presentation on
K.K. Parekh Institute of Management Studies
(Amreli)
PLC of Nokia & Samsung
Prepared by:-
Mehul Rasadiya
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
Growth
Maturity
Decline
Introduction
Sales curve
The Concept Phones
Nokia E- series
Nokia Symbian
& N- Series
Nokia Windows &
Symbian phones
PRODUCT LIFE CYCLE OF NOKIA
Stages Time Duration
Introduction 1995 - 2002
Growth 2002 - 2009
Maturity 2009 - 2011
Decline 2011 to till now
INTRODUCTION STAGE ( 1995 – 2002)
NOKIA 2110
PRODUCT
1. Entered India in 1995
2. Launched very few models due to
lesser demand & innovation
3. Sold both GSM & CDMA phones
4. Launched 1st model Nokia 2110 with
Nokia tune
5. 2110 was 1st model capable of
sending/receiving sms
6.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
a
China/Chennai
Gurgaon’s
mother
warehouse
HCL India
warehouse
Sub-
distributors
(BSB
Marketing-
South Delhi)
Nokia Priority
Dealers/Organised
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
a
Growth rate 1120%
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
a
PRICE
a
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
China/Chennai
Gurgaon’s
mother
warehouse
HCL India
warehouse
Sub-distributors
(BSB Marketing-
South Delhi)
Nokia Priority
Dealers/Organ
ised retail
Customers
PLACE
a
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
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
PACKAGING
a
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
China/Chennai
Gurgaon’s
mother
warehouse
HCL India
warehouse
Sub-distributors
(BSB Marketing-
South Delhi)
Nokia Priority
Dealers/
Organised retail
Customers
PLACE
a
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
Growth rate - 62%
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
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
China/Chennai
Gurgaon’s
mother
warehouse
HCL India
warehouse
Sub-distributors
(BSB Marketing-
South Delhi)
Nokia Priority
Dealers/Organ
ised retail
Customers
PLACE
a
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
Growth
Maturity
Introduction
The Concept Phones
Touch screen &
Dual Series
Smart Android Phone
& Galaxy series
PRODUCT LIFE CYCLE OF SAMSUNG
Stages Time Duration
Introduction 2001 - 2006
Growth 2006 - 2011
Maturity 2011 – till now
INTRODUCTION STAGE ( 2001 – 2006)
SAMSUNG R220
PRODUCT
1. Entered India in 2001
2. Launched very few models due to
lesser demand & innovation
4. Launched 1st model Samsung R220
with Simple blue display.
6.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
a
Koria
mother
warehouse
(Delhi)
Sub-distributors
(All the State)
Samsung
Dealers/
Organised
retail
Customers
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
a
GROWTH STAGE ( 2006 – 2011 )
a
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
a
PRICE
a
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)
Koria
mother
warehouse
(Delhi)
Sub-
distributors
(All the State)
Samsung
Dealers/
Organised
retail
Customers
PLACE
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,
PROMOTION
a
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
a
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
Koria
mother
warehouse
(Delhi)
Sub-
distributors
(All the State)
Samsung
Dealers/
Organised retail/
Smart Galleries
Customers
PLACE
PROMOTION
1. Special Offers on Credit card
payment for above price of Rs.
20000
2. TVC for Galaxy Series
3. Discount Coupons
4. Print Media ( Business Magazines)
Comparison of Growth rate
0%
1120%
45% -65%
0%
1480%
67%
-200%
0%
200%
400%
600%
800%
1000%
1200%
1400%
1600%
Introduction Growth Maturity Decline
Growth Rate
Nokia
Samsung
1995 1998 01 04 07 10 13 16
Intro. Intro.
Maturity
Maturity
 Nokia
 Samsung
Year
Growth
PLC Comparison
PLC analysis of Nokia and Samsung

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