Nokia Case Study

EXECUTIVE SUMMARY

Nokia is known for their durable, high quality phones that last “forever.” They have been the leader in the mobile phone industry for fourteen years, losing their title at the beginning of 2012 to Samsung. Although Nokia is doing fairly well around the world, they’ve had extreme difficulties selling their phones in the United States (we will refer to the United States in its abbreviated form: U.S. from here on out). The purpose of this report is to examine the causes behind Nokia’s unpopularity in the U.S., their marketing strategy, consumer analysis and to offer recommendations to improve Nokia’s sales.

To be a leader in the mobile phone industry, keeping up with innovation is necessary. Nokia has failed to keep up with its competitors, which are proven in their mobile phone sales. Nokia’s smartphones are globally known for their reliance and high-quality; however, many American’s are bored by their uninspiring modernisms. They have failed to stimulate the imaginations of many American consumers; therefore Nokia must “step-up” their innovation. The merge between Microsoft and Nokia will hopefully spark a new interest in the American consumer to increase Nokia’s popularity.

With Nokia’s market share at a whopping .3 % in the U.S., many wonder what happened to the former mobile giant. In an effort to increase promotions and certainty about their products, Nokia is using direct and niche marketing to promote their newest smartphone. Emphasis on events or lack thereof, that lead to their declining market share, will be highlighted in detail further on in this report.

Recommendations for Nokia include focusing on promoting their smartphones through buzz marketing to increase sales. Nokia’s competitor, Apple, is known for creating a buzz for their IPhone’s well before the phone is released. This strategy builds anticipation for their product which, in turn, increases demand. Promoting the high-quality aspect of Nokia smartphones will enhance consumer confidence. A relationship between Nokia and U.S. telephone carriers must be established to meet