Global Marketing Strategy for Global Marketing Strategy for Mobile Phone Manufacturers :Mobile Phone Manufacturers :

A Comparative Study of Nokia A Comparative Study of Nokia in Korea and Thailandin Korea and Thailand

Chalaporn Siripongwattana10010202 석사 6 학기

연세대학교 대학원 경영학과2002.12.23

Global Marketing Strategy for Mobile Phone Manufacturers2

1. Overview of Mobile Phone Industry* World Mobile Phone Industry* Korea’s Mobile Phone Industry* Thailand’s Mobile Phone Industry

2. Analysis of Nokia* Nokia Korea* Nokia Thailand

3. Marketing Implications

Research Overview

Global Marketing Strategy for Mobile Phone Manufacturers3

World Mobile Phone IndustryWorld Mobile Phone Industry

1. Overview of Mobile Phone Industry

Others25.4%

Nokia35.6%

Motorola15.7%Samsung

9.5%

Siemens8.4%

Sony Ericsson5.4%

The global market share of mobile phone manufacturers(The second quarter of 2002)

Source: Gartner Dataquest (October, 2002

Global Marketing Strategy for Mobile Phone Manufacturers4

Mobile phone market shareMobile phone market share(The third quarter of 2002)(The third quarter of 2002)

Others15.17%

Samsung54.04%

Motorola6.49%

LG24.3%

Source: Advance Info Service Source: GfK Group

Others3%

Nokia55%

Motorola17%

Siemens19%

Sony Ericsson

6%

1. Overview of Mobile Phone Industry

Global Marketing Strategy for Mobile Phone Manufacturers5

Summary of mobile phone industry in Korea and ThailandSummary of mobile phone industry in Korea and Thailand

Technological standard

CDMA GSM

Key player Samsung Nokia

Penetration rate 63% 12%

Replacement cycle 13 months 18 months

Main market High market Low market

Preference Folder type Bar type

1. Overview of Mobile Phone Industry

Global Marketing Strategy for Mobile Phone Manufacturers6

2. Analysis of Nokia

Weaknesses-Weak brand building - Little variety of products- Difficult in localization

Strengths- Global brand image- Stylish design based on cutting-edge technology- Experienced local partner

Opportunities- Growing of global CDMA market- Sizable market- Short replacement cycle- Market opening

Threats- Cutthroat competition- Unique customer needs- Subsidy prohibition

SWOT Analysis of Nokia KoreaSWOT Analysis of Nokia Korea

Global Marketing Strategy for Mobile Phone Manufacturers7

2. Analysis of Nokia

Weaknesses- Low experience in CDMA market - Dropping net sales- High price handsets

Strengths- Strong brand awareness- Sophistication in GSM market- Thai input software- Strong distribution

Opportunities- High market growth- Popularity of SMS- Impact of IMEI code removal

Threats- Growing grey market- Fierce competition- Pressure from PDA market

SWOT Analysis of Nokia ThailandSWOT Analysis of Nokia Thailand

Global Marketing Strategy for Mobile Phone Manufacturers8

2. Analysis of Nokia

Comparison of marketing strategy between Nokia Korea and Nokia Thailand

Entry mode Wholly owned subsidiary

Wholly owned

subsidiary

Operators SKT , KTF and LGT AIS, DTAC and

TA Orange

Business Group

1. Nokia Mobile Phones 1. Nokia Mobile Phones

2. Nokia Networks

Global Marketing Strategy for Mobile Phone Manufacturers9

2. Analysis of Nokia

STP strategy

- Segmentation

- Targeting

- Positioning

No segmentation

Mass market

Premium handsets

5 segments

: Basic phones

: Fashion phones

: Premium phones

: Entertainment phones

: Imaging phones

From low to high end market

Premium handsets

Global Marketing Strategy for Mobile Phone Manufacturers10

2. Analysis of Nokia

Marketing strategy

- Product Complete localization Complete standardization

- Price Complete localization Complete localization

- Place Complete localization Complete localization

- Promotion Low standardization High standardization

Global Marketing Strategy for Mobile Phone Manufacturers11

3. Marketing Implications

Balance between standardization and localization

Stimulating demand for new mobile phonehandsets * Increasing revenues from existing users * Offering new services and advanced handsets

Key success factors* Competitive quality and innovative technologies

* Data collecting * Brand building * Collaborating with key partners

Global Marketing Strategy for Mobile Phone Manufacturers12