an imc plan for nokia 8800: playing strategic marcom...

AN IMC PLAN FOR NOKIA 8800: PLAYING STRATEGIC MARCOM SYMPHONY

Xu Manhang

A Report Submitted

In Partial Fulfillment of the Requirements for the Degree of

Master of Arts in Communication

Supervisor: Prof. Leonard Chu

School of Communication Hong Kong Baptist University

Hong Kong August 2005

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MA Graduation Project

PLAGIARISM DECLARATION FORM

Student Name: Xu Manhang Student Number: 04404815 Name of Project: AN IMC PLAN FOR NOKIA 8800: PLAYING STRATEGIC MARCOM SYMPHONY Submission Date: 3 July 2005 Declaration: I have read the relevant sections on Plagiarism provided in the Handbook for Graduation Project and observed the standards of conduct. I am fully aware of the consequences in the event of plagiarism. I declare that, to the best of my knowledge, this project represents my own work and all sources have been properly acknowledged, and the Project contains no elements of plagiarism. I further declare that the Project has not been previously included in a thesis, dissertation or report submitted to this University or to any other institution for a degree, diploma or other qualification. Students Signature: Date: 3 July 2005

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Acknowledgements

The author is grateful to Professor Leonard Chu for his advice and support in the preparation of this project. He also owes him special thanks for sharing with him on how Australian government used the strategic integrated marketing communication to promote its immigration policy in the 1950s effectively and efficiently. He also wants to thank Dr. Steve Guo for his fresh intellectual ideas on how to prepare a graduation project. Finally, his thanks go to Ms Sheila Wong, who does much about our graduation project administration. At Hong Kong Baptist University, the School of Communication and the Library helped me a lot. He thanks them.

_________________________ Xu Manhang M.A. in Communication School of Communication Hong Kong Baptist University

Date: 1 August 2005

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Abstract

This report presents a new integrated marketing communication campaign for the

launch of Nokia 8800. It is an attempt in employing the effective and excellent

marketing communication theories to the real practices. Having been with Ketchum

Newscan Public Relations Worldwide for more than seven years, the author is trying

to employ public relations to take the lead to integrate with advertising, sales

promotion, direct response marketing, event marketing and interaction/internet to

achieve the relationship marketing goals and objectives. This IMC Symphony

reflects the effective interaction, interrelation and cohesion among the key marketing

communication tools. It can deliver a single-minded/one voice to the target audience

and help stimulate sales effectively and efficiently. The IMC campaign theme is The

Prestigious King Of Steel Nokia 8800: Move Hong Kong and Move You! The

launch period will last until October 2005 starting from July 2005. The key events

include advertising campaign, press conference for Environmental Program kick-off

and donation ceremony, media in-depth interviews, co-operation with Nokia 8800s

spokesperson Guo Jingjing(Chinese Olympic champion diver), golf contest, quiz on

Who is Guo Jingjings boyfriend? and tidbit, Disneyland opening ceremony

(September 12, 2005), and firework display at Victoria Harbor on National Day.

More than just a business plan or a communication campaign, the report also gives

the authors critical views on current integrated marketing communication theories.

Key Concepts

Nokia, Nokia 8800 mobile phone, integrated marketing communication, launch,

relationship marketing, total customer experience, client-centered integration,

horizontal communication systems, 3-D integrated communication model

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Table of Contents Plagiarism Declaration Form.1 Acknowledgements2 Abstract..........3 Table of Contents...4 I. IMC and IMC Campaign for Nokia 8800..6

1. Brief introduction6 2. Literature review on IMC7 3. Research methodology13 4. Result and discussion..14 5. Design of IMC Campaign...18 6. Conclusion...19

II. Executive Summary on IMC Campaign...19 III. Situation Analysis and SWOT Analysis. 20

1. Company analysis: Nokia as a mobile phone brand... 20 2. Consumer analysis...23 3. Market analysis29 4. Product analysis...31 5. Competitive analysis33 6. SWOT analysis41

IV. Target Market Profile....42 V. Objectives...43 VI. Budget...43 VII. Marketing Communication Strategy Overview..44 VIII. Public Relations & Event Marketing Strategy.. 46 VIIII. Advertising Strategy.59 X. Sales Promotion Strategy...70 XI. Direct Response Marketing Strategy72 XII. Interaction/Internet Strategy73 XIII. Campaign Evaluation and Conclusion...73 References...75 Appendixes.76

1. Research questionnaire 2. Table 7. 2005 Annual Media Plan for Nokia 8800

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List of Tables

1. Table 1 Respondents perception towards Nokia and its mobile phone

2. Table 2 Respondents attitude/impression towards Nokia and its mobile phone

3. Table 3 Comparison of brand/product, retail price and distribution channel

4. Table 4 Comparison of marketing communication mix

5. Table 5 SWOT Analysis

6. Table 6 Grand total budget for Nokia 8800 launch

7. Table 7 2005 annual media plan for Nokia 8800

8. Table 8 Major Events

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I. Integrated Marketing Communication (IMC) and IMC Campaign for Nokia 8800 1. Brief introduction

This author is not a musician but he is trying to play symphony. He is not

good at playing real symphony but he is striving to take advantage of the knowledge

he learned at Hong Kong Baptist University (HKBU) and from his own working

experience to play IMC Symphony for the upcoming mobile phone model Nokia

8800. IMC concepts, definitions and theories have been developed, discussed and

explored for more than twenty years although IMC as a topic seems to be hot only

among scholars and experts on campus. Why? Why no market in practice? Is it

possible to employ IMC approach to achieve the relationship marketing goals? This

author will attempt to answer the above questions through creating a new IMC plan

and further discussion about it.

According to this authors interviews with the consumers and the recent

consumer questionnaire survey, more than 40% of the respondents did not know if

Nokia used IMC approach. About 53% expressed that Nokia used IMC approach to

develop, implement and manage the communication campaign. More than 62%

indicated that Nokias marketing communication strategy through television

commercial (TVC) and print media advertisement could move them. The survey

shows that very often Nokia employed TVC, print media, sales promotion, MTR and

bus or tram body to promote their mobile phones. This author did not see any

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successful story on IMC created by Nokia. Many consumers did not understand how

Nokia integrated the various communication elements. He is trying to develop an

IMC campaign to promote Nokias new model Nokia 8800 and at the same time he

wishes to research and discuss about how Nokia can achieve its relationship

marketing objectives and goals by using effective and strategic IMC approach.

2. Literature review on IMC

Many concepts and definitions about IMC have been developed by scholars and

professionals. This author thinks the most important thing is how you understand the

key term integration. You can create different definitions from different angles. A

brief dip into the history of IMC shall inform us. According to Don E. Shultz, Stanley

I. Tannenbaum and Robert F. Lauterborn (1993), the four Ps theory (the four Ps

stands for product, price, place and promotion) was very hot in 1960. In 1972, Jack

Trout and Al Reies created the positioning theory. But by 1990, scholars found out

that they could not continue to apply the theories of four Ps and positioning to the

real marketplace because of the rapid change of the environments. Lauterborn

articulated four Cs to focus on consumer wants and needs, consumers cost,

convenience to buy and communication. It is a consumer focus concept and the key

term in 1990 is communication. Don E. Schultz developed an IMC planning model,

saying that they wanted to change all kinds of marketing into communication and all

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kinds of communication into marketing. What they are trying to do is to integrate

their messages and their goals to build a seamless stream of communication with the

customer. However, one may wonder whether it is real integration if one just

integrates the messages and goals. This author agrees that good IMC approach can

help us achieve the win-win relationship marketing goals. George E. Belch and

Michael A. Belch (2004) described the evolution of IMC. During 1980s many

marketing practitioners realized the value of the integration of their promotional tools

and showed much interest in the process of IMC and the coordination of all

promotional elements. Belchs discussing of the concept of the process and the

coordination is important because IMC is not just the integration of messages but also

the integration of process and coordination. The American Association of Advertising

Agencies (the 4As) gave one of the first definitions of IMC: a concept of

marketing communications planning that recognizes the added value of a

comprehensive plan that evaluates the strategic roles of a variety of communication

disciplines for example, general advertising, direct response, sales promotion and

public relations and combines these disciplines to provide clarity, consistency, and

maximum communications impact (the 4As, 1989). This definition focused on the

process of IMC. Belch pointed out that Don Shultz considered all sources of brand or

company contact points. It means that the process of IMC needs a broader perspective

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or big-picture when you plan and coordinate your marketing communication

program. You need a centralized messaging function so that everything a company

says and does communicate a common theme and positioning (George Belch &

Michael Belch, 2004). Belch pointed out that many marketing practitioners knew

IMC could give them more than just ideas. IMC can help them build up effective and

reliable relationships with their customers and other stakeholders.

According to George E. Belch and Michael A. Belch (2004), Tom Duncan and

Sandra Moriarty (1992) stated that messages could be developed by three levels

including corporate, marketing and marketing communications since all levels are

related to communication dimensions. They emphasized that practitioners need to

create coherent perceptions among customers and other stakeholders and that it

requires integration of all marcoms messages and the functions of ad agencies, public

relations firms, sales promotion specialists, package design firms, direct-response

specialists and interactive agencies. This author thinks that it is not easy to coordinate

the functions of various promotional facilitators because they come from different

companies and each of them is good at own area only. Who can take the lead to

integrate the message, process, coordination and function effectively? It is a big

question.

Tom Brannan (1995, 1998) described that you need to develop a single-minded

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message and apply it to each matter with best creative ideas. That is what IMC means.

Brannan asked a good question: is integration always necessary? His answer is yes

and no. This author agrees with him. Normally you are required to develop a

marketing plan based on your goals and objectives, budget, problems and

opportunities. It all depends on the situation when you consider IMC approach.

Esther Thorson and Jeri Moore (1996) pointed out several questions about IMC. It

needs to know the interrelation among various media (communication tools) and it is

important to know which tool should take the lead. The last question is about the

target audience. They argued if target audience is extremely important.

Non-consumers such as salesperson, distributor and government officials are

also important. They said that many successful IMC cases showed that IMC approach

could achieve its goal effectively through the interaction between the consumers and

the non-consumers. Maybe these two scholars are right but consumer focus is the

basic and important element for IMC.

According to Esther Thorson and Jeri Moore (1996), Tom Duncan and Clake

Caywood (1992) shared their ideas on IMC. This author is very interested in their

opinions. Some people say that IMC means the different media mix. Some people

think that IMC means single message/one voice. These two scholars pointed out the

IMC with seven stages including awareness integration, image integration, function

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integration, coordination integration, consumer focus integration, stakeholder focus

integration and relationship management integration. This author thinks that

relationship integration is the ultimate goal.

Larry Percy (1997) pointed that it is important to develop a centralized strategic

plan when considering IMC approach. He told us that we need to consider the

decision stage, communication task, target audience and communication tools. Tony

Yeshin (1998) stated that IMC aims to ensure cohesion and the delivery of a

single-minded message to the target audience. He embraced the end user focus

approach. PR Smith and J Taylor (1993, 1998, 2002) described that they need to

develop a consistent unified message. But, is unified message the same as cohesive

message? Scholars have had different opinions.

Don Shultz and Heidi Schultz (2004) pointed out that the next generation IMC

will develop from communication tactic to profit-building strategy. The drivers of

IMC include technology, branding, globalization and new challenges. They discussed

about the five major changes a move to brands and branding, a five-step

implementation process, a focus on individuals, not market segments, a move toward

measurement and accountability and a global approach. They continued to stress the

customer-centric approach and the Total Customer Experience. But they have

developed his idea this time because they realized it is also extremely important to

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develop good horizontal communication systems and to work together with external

communication groups.

Finally, this author wishes to note Anders Gronstedts (2000) own definition:

Integrated communications is the strategic management process of facilitating a

desired meaning of the company and its brands by creating unity of effort at every

point of contact with key customers and stakeholders for the purpose of building

profitable relationships with them. Probably that is why he developed integrated

communications in 3-D. The first dimension is integrated external communications,

the second dimension is integrated vertical communications and the third dimension is

integrated horizontal communications. It is a good 3-D and guideline for IMC but it is

hard to implement and manage this kind of ideal model in reality. Sometimes the

model or definition is ideal or perfect but it is not realistic. Sometimes all means

nothing. You want to gain everything but probably you will fail. This author embraces

the idea of customer focus and relationship marketing strategy.

For instance, back to the case of Nokia 8800 launch, this author is trying to

develop a new IMC plan for Nokia 8800. The public relations and event marketing

take the lead to integrate with other marcom tools based on the customer focus

approach. It also helps to build excellent relationship with consumer because the

author is trying to integrate the message, awareness, image, function, coordination,

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consumer focus, stakeholders and relationship management. That is what all IMC is

about. This authors IMC campaign for Nokia 8800 will incorporate these elements.

3. Research methodology

What is real IMC? Why do people fail to employ IMC approach properly? Is

IMC approach workable? Could you design an effective IMC campaign? How about

the future development of IMC? This author will attempt to seek answers or solutions

to the questions through this research and the campaign design.

This report is prepared on data collected by direct observations, interviews,

questionnaire survey, database, document analysis (books and periodicals), HK SAR

government websites, and so forth. A questionnaire for interviews was conducted at

retailers/shops on the streets in Mong Kok, Wanchai, Central and Causeway Bay,

Hong Kong during May 2005. That is because the mobile-phone business in Hong

Kong has always been a street fight (LaMoshi, 2003). Out of the 112 questionnaires

distributed, a total of 93 reliable and valid interviews were conducted. A total 93

shoppers (aged 18 46 and with a monthly income of HK$8,000 to HK$25,000 and

above) were interviewed for information concerning their attitudes and behaviors

towards using mobile phone, IMC campaign, IMC strategies and tactics, purpose of

mobile phone purchase, price, distribution, communication mix, consumer contact

points, sales promotion, Nokia competitive advantages, competitors, and so forth.

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4. Result and discussion

Don E. Schultz (1993) pointed out that IMC means the integration of messages

and goals. This author thinks that you can not achieve your integrated goals based on

your integrated messages if you just plan to deliver the same messages to your target

audience in your plans of advertising, public relations, event marketing, sales

promotion, direct response marketing and interactive/internet marketing, that is not

real IMC. This author sees no interaction, interrelation among the marketing

communication tools. This author wishes to take an IMC campaign for Nokia 8800 as

an example. The theme of the IMC campaign is Prestigious King of Steel Nokia

8800: Move Hong Kong and Move You. He not only integrates the messages and

goals but also integrates the process, coordination, function, consumer focus, image

and awareness. More importantly, all marcom elements are interacted and interrelated.

George Belch and Michael Belch (2004) said that IMC is the integration of

process and coordination. The definition written by The American Association of

Advertising Agencies (4As) also reflected the process of integration. This author

thinks that it is just one part of IMC. In reality, practitioners only specialize in their

own area such as advertising, PR or sales promotion. It is a hard job for practitioners

to coordinate various marcom tools. Can they coordinate various marcom tools

successfully? Which tool should take the lead to integrate other tools? How

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practitioners manage the process of integration? Obviously well trained and qualified

professionals are required to gain insight of all marcom tools and establish effective

communication systems. Otherwise, you can not make it a great success while

implementing an IMC campaign. In the authors proposed IMC plan for Nokia 8800,

the major events comprise quiz and lucky draw, press conference, in-depth media

interviews, celebrity appearances (Guo Jingjing, Chinese Olympic champion diver,

acts as spokesperson for Nokia 8800), donation ceremony for Environmental Program,

golf tournament, Disneyland opening ceremony, firework displays at Victoria Harbor

on National Day, etc. Various marcom tools are coordinated well. Traditionally,

advertising takes the lead to integrate other tools. This author employs public relations

and event marketing to take the lead to integrate other marcom tools. This IMC

campaign helps achieve sales goals through clarity, consistency and maximum

communications impact, interaction and interrelation among the marcom tools.

Tony Yeshin (1998) stressed that IMC aims to ensure cohesion and the

delivery of a single-minded message to the target audience. Yeshin stated that IMC

means a centralized messaging function to communicate a common theme and

positioning. It is good to focus on cohesion and function of a single-minded message.

But, it is far more from enough in terms of integration. PR Smith and J Taylor (1993,

1998, 2002) described that practitioners need to develop a consistent unified message

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when considering IMC plan. Tom Brannan (1995, 1998) raised one question on IMC

planning. Is integration always necessary? His answer is yes and no. This author

agrees with him. Definitely you should make a wise decision based on your business

objectives and goals, positioning, strategies and budgets. Not each marketing

communication plan needs to be developed into IMC plans. But, you need to know

when, why and how to develop, implement, manage and evaluate your IMC campaign.

For instance, this author is trying to use IMC campaign to promote Nokia 8800 and

stimulate sales. He will share with you how he designs an IMC campaign for Nokia

8800 later.

Esther Thorson and Jeri Moore (1996) emphasized that it is necessary to

understand the interrelation among various communication tools and the interaction

between consumers and non-consumers (non-consumers stands for salespersons,

distributors and government officials, etc.). This author shows much interest in their

ideas and opinions. What they said is real IMC! He is trying to develop and

implement his IMC plan for Nokia 8800 based on their theories. For example,

according to his proposed IMC plan, public relations program is the first wave. Public

relations and event marketing take the lead to integrate with other marcom elements.

The key message and theme is the prestigious King of Steel Nokia 8800: Move

Hong Kong and Move You! The IMC programs include press conference (11 July

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2005) for the prestigious King of Steel Nokia 8800: move Hong Kong and move

You! and environmental program signing ceremony, press release distribution (19

August 2005) about the result announcement of the quiz on who will be Guo

Jingjings boy friend? and tidbit (interrelated with advertising, sales promotion and

direct marketing), golf contest (30 July 2005), Disneyland Hong Kong opening

ceremony and Guo Jingjing marriage(12 Sept. 2005), press conference and

environmental program donation ceremony (6 October 2005), National Day firework

displays at Victoria Harbor(1 October 2005), television commercial (from July to

August 2005), sales promotions (POP, Nokia 8800 x Guo Jingjing quiz, premiums,

July 2005), direct response marketing (July 2005) and interaction/internet. All

programs are interacted and interrelated through the different stages of the IMC

campaign. This IMC campaign makes good use of the key consumer contact points to

move consumers and their senses. Target consumers can read the extensive coverage

from the key media about Nokia 8800 launch, donation for environmental program,

tidbit about the relationship between Nokia 8800 and Guo Jingjing, golf contest

together with Guo Jingjing, Disneyland opening ceremony and Guo Jingjing

marriage and National Day firework displays at Victoria Harbor (have fun together

with Guo Jingjing). Consumers can get the information from TVC,

interaction/internet and sale promotional events about Nokia 8800 and Guo Jingjing

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and definitely the target consumers will go to purchase Nokia 8800 in order to attend

the events abovementioned. You may imagine the ideal sales and marketing

environment for Nokia 8800 can be created and the sales goals can be achieved

smoothly.

No matter it is communication in 3-D, horizontal communication systems or

Total Customer Experiences, the purpose of IMC is to realize business objectives and

goals through effective relationship marketing. He embraces the idea of customer

focus or customer-centric approach that is the core of IMC. Besides that, it is also

imperative to develop close relationship with stakeholders. That is one of the reasons

why public relations take the lead to integrate other communication elements in his

IMC campaign for Nokia 8800.

5. Design of IMC Campaign

Nokia 8800 is designed for senses. This author wishes to employ IMC strategy

to move the target consumers senses. This symphony theme is The Prestigious

King of Steel Nokia 8800: Move Hong Kong and Move you! The launch period

will last until October 2005 starting from July 2005. Celebrity appearances strategy is

an important decision. Guo Jingjing, the Olympic gold medallist, is invited to act as

the spokesperson for Nokia 8800. Consumers can win the opportunities through lucky

draw to have fun together with Guo Jingjing if they purchase Nokia 8800. How to

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move Hong Kong and consumers? How can consumers get the feel of prestige,

elegance and taste generated from Nokia 8800? How to stimulate sales? How to

attract the target consumers to the events? How to achieve the best sales volume at the

lowest cost? This author wishes to use IMC strategy to solve the above questions.

6. Conclusion

This author thinks that relationship marketing is ultimate goal. Public relations

will play a more active role in developing consumer relationship and relationship

marketing. He also thinks that each communication tool has the opportunity to take

the lead to integrate other marcom tools in future. He agrees that it is imperative to

employ customer focus approach. In addition, it is also extremely important to

establish close relationship with stakeholders. In future, public relations will make

greater contribution in developing creative and effective IMC campaign to tackle the

fierce and sophisticated competitive market environments. Putting marcom tools

together does not make sense and it is just waste of money, time and energy. In the

coming chapters, this author will bring you to enjoy this prestigious and elegant IMC

symphony.

II. Executive Summary on IMC Campaign

What a symphony played by Nokia! This report employs the integrated

marketing communication approach to launch Nokia 8800. It aims to stimulate sales

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during the launch period, especially the first two months. Public relations and event

marketing will take the lead to integrate with other marcom tools such as advertising,

sales promotion, direct response and interactive marketing. Guo Jingjing will act as

the spokesperson for Nokia 8800 to interact with consumers throughout this IMC

campaign. The target consumers are Hong Kongs male aged 28-46 with monthly

income HK$21,000 and above. The total budget for this campaign will be HK$8.35

million. The strategic focal point is that consumers can associate prestige, elegance

and taste with Nokia 8800, which is the King of Steel. This focus can help Nokia

8800 stand out from its rivals. The theme of the campaign is Prestigious King of

Steel Nokia 8800 moves Hong Kong and moves you. It implies that consumers can

experience the senses from Nokia with prestige, elegance, taste and gracefulness.

They like the look Nokia 8800 has. The planner designs a good media mix including

TVB Jade, ATV Home, Oriental Daily News, Sun, Apple Daily, Next Magazine,

Yahoo.com.hk, etc. The journey will last several months from July through October,

2005.

III. Situation Analysis and SWOT

1. Company analysis: Nokia as a mobile phone brand

The story of Nokia indicates that word of mouth is one of the most powerful

and effective marketing communication tactics. Many consumers love Nokia and

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like to give Nokia very high score in terms of creation, innovation, product quality,

capabilities and service. Nokia means mobile phone and mobile life as well on their

mind. Word of mouth helps Nokia build, maintain and reinforce image. It also helps

with Nokias profits, reaching the worlds fifth most valuable brand by 2000. Maybe

many stakeholders or consumers know Nokias mobile phone and mobile usability,

maybe they know how to enjoy Nokias mobile and fun life, maybe they know how to

connect and communicate with family members, friends and clients through Nokias

mobile phone, but many of them know little or nothing about the history of Nokia.

This paper will begin with a brief history of Nokias development so as to inform you

on how Nokia changed the face of the mobile phone (Christian Lindholm, Turkka

Keinonen, Harri Kiljandeer, 2003) and how Nokia created an extraordinary company

that transformed in industry (Dan Steinbock, 2001).

According to Dan Steinbock (2001), Jorma Ollila, President and CEO of Nokia

(1997) said that until the 1980s, Nokia was a Finnish company, in the 1980s Nokia

was a Nordic company and in the beginning of 1990s a European company. Now we

are a global company. According to Ollila (1999), Nokia is aiming to play a leading

role in developing and creating the Mobile Information Society by combing

mobility, the Internet and the creative new services.

According to Dan Steinbock (2001), Nokia has been a pioneer in mobile

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Internet since the end of the 1990s with its market capitalization more than tripled

from almost US$73 billion (HK$562.1 billion) to $250 billion (HK$1,925 billion)

from the end of 1998 through April 2000. Nowadays Nokia is highly respected and

recognized as a global leader, a pioneer of the mobile Internet and one of the cellular

giants of the 1990s. Nokia is the worlds leading mobile phone maker located in

Finland but Nokias achievement is global. Stenbock (2001) noted that by 2000, half

of Nokias 55,000 employees were Finnish, but only 2.4 percent of its revenues came

from Finland.

Why Nokia? Why can Nokia emerge as a global powerhouse in mobile

communications? It is because Nokia can successfully build bridges between people,

i.e., it bridges the gap between people and the information they need (Nokia).

Action speaks louder than words. Nokia continues to take a key role in the

development of third-generation wireless services, or 3G1 that allows one to use and

enjoy multimedia under 3GPP (Third-Generation Partnership Protocol). As Steinbock

(2001) described 3G as really a big thing that is the convergence of mobile phones

and the Internet, high-speed wireless data access, intelligent networks, and pervasive

computing.

_____________________________________________________________________

1. 1G means first generation (1G) systems that are analog and were designed for voice transfer. 2G means second generation (2G) systems that are digital and can offer voice/data/fax transfer and a series of other value-added services. 2.5G means that it can evolve 2G systems via new technologies like HSCSD (High Speed Circuit Switched Data) and GPRS (General Packet Radio Service).

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It can definitely change the way you work, shop, pay bills, make appointments, and

even conduct wars. That is why Nokia would like to invest much in 3G systems.

Being a leader is not easy. Nokia has made great contributions to mobile

communications with regards to the application like general-purpose terminal, SMS,

chat rooms, mobile portals, mobile vending, mobile commerce, mobile banking, WAP

and WAP-based applications. Nokia introduced its first GSM hand-portable phone in

1992 and was the first manufacturer to launch hand-portable phones for all existing

digital systems in 1993. In 1996, Nokia became the first maker to introduce the

all-in-one communicator, the Nokia 9000 Communicator. From 1997 to 1999, Nokia

focused on mobile Internet to build a mobile information society. Today Nokia is

more than just a mobile phone. It doesn't use a cellular network. It's a gadget for the

home that takes the Finnish company into a new -- and risky -- area of the

consumer-electronics business (Olga Kharif, Business Week, May 25, 2005). Nokias

vision and mission statements have said it well:

Vision: Life Goes Mobile!(Ten years ago, Nokias vision was Voice Goes

Mobile!)(Nokia)

Mission: By connecting people, Nokia helps fulfill a fundamental human need for

social connections and contact. (Nokia)

2. Consumer analysis

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According to this authors questionnaire survey (note: some questions ask for

multiple answers), most of the respondents were secondary school and matriculation

graduates. Hong Kong has a population of 6.8 million and 46.2 % are secondary

school graduates (info.gov.hk/Hong Kong Government , Population Census).

It is important to gain insight of this target group regarding its attitude, motivation,

life style and consumer behavior. It is also extremely important to know the attitude,

values and behavior of the degree holders who have high income.

The survey indicated that 52% of the respondents considered the function of

voice and SMS as the basic purpose of choosing mobile phone. About 40% liked to

use camera, album and video, 10% preferred sending e-mails, MV and Office, 10%

were interested in games, about 8% liked the radio function, 10% showed interest in

multimedia messaging service (MMS) and about 40% chose MP3. About 28% and

30% liked to purchase their new mobile phone priced at HK$2,500-3,000 and

HK$3,000-HK$4,000 respectively. 20% decided to get a new one priced at HK$4,000

above, 12% embraced their new handset priced at HK$1,500-2,000 and only about

10% wanted to pay HK$1000 below for their new handset. 50% felt that Nokia is

their top-of-mind brand handset. Sony Ericsson and Motorola each had about 20%,

10% went to Sharp due to its superb camera function. On the top-three handset brands,

the survey showed that about 80% went to Nokia, 62% went to Sony Ericsson, 48%

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went to Motorola and Samsung gained 40%. Obviously Sony Ericsson and Motorola

are Nokias major competitors. 69% of the respondents expressed that their

motivation to use mobile phone was to communicate. About 11% showed much

interest in MP3 (music downloads) and camera. Another 11% just wanted to show off

for status. On intention to buy, 53% had a plan to purchase new mobile phones in the

near future, 30% did not and about 20% never thought about it.

On where to purchase their mobile phones, the survey showed that 51% did it at

the authorized mobile phone store, 30% at the well-known chain stores and 19% at

the department stores. On mobile phone information, 72% of the respondents learned

from watching TV, 60% from reading print media advertisement (newspaper and

magazine), 20% from accessing internet and news coverage/publicity, 8% from

families, colleagues and friends, about 10% from outdoor advertisement and 10%

from MTR and bus. Regarding communication mix, 33% liked television, 20% liked

print media (newspaper and magazine), 30% liked to get involved with outdoor

promotional events, 10% liked news coverage/publicity and 7% wanted to choose

outdoor advertisement. More than 50% were fond of price-off deals/discount, 30%

liked in-store display, 11% wanted to receive premiums and 9% wanted to be a lucky

star of lucky draw events.

Table 1 shows respondents perception towards Nokia and its mobile phone

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Table 1 Respondents perception towards Nokia and its mobile phone

Know a lot (%) Know (%) Do not know (%) Nokias development history 22 28 50 Nokia mobile phone 21 69 10 Nokia 3G mobile phone 10 50 40 Brand positioning/ Personality/proposition 22 40 38

The survey shows that half of the respondents/interviewees did not know

Nokias development history. Some of them did not know Nokia is from Finland.38%

did not know about Nokias positioning, and personality. More than 90% said that

they knew Nokia mobile phone very much. 50% expressed that they did not know

Nokias development history. 28% knew it, 22% knew a lot. On the product, 69% said

that they knew Nokias mobile phone, 21% knew much about it. 10% said that they

did not understand Nokias mobile phone. On 3 G, 40% did not understand Nokias

3G mobile phone, 50% said that they knew what it was, and only 10% were experts

of Nokias 3G mobile phone. Almost 38% did not understand Nokias positioning,

personality and proposition, about 40% knew it, and 22% knew it very much.

How did the interviewees rate Nokia? Table 2 shows respondents

attitudes/impression towards Nokia and its mobile phone.

27

Table 2 Respondents attitudes/impression towards Nokia and its mobile phone

Very good/ good (%) Neutral (%) Poor (%) Nokia branding 90 10 Nokia mobile phone quality 90 10 Word of mouth on phone 100 General impression on Nokia 80 20

The survey indicated that most of respondents/interviewees embraced Nokia

and its mobile phone. Word of mouth got a high score (100%). On Nokia branding, 90

% said Nokia was very good or good, and another 10% chose the neutral answer.

On Nokia mobile phone quality, 90% said that Nokia was very good or good, and

another 10% said Nokias performance was not as satisfied as they expected and they

chose the neutral answer. Concerning Nokias mobile phone quality, 41% of the

respondents expressed that it was very reliable, 49% said it was reliable and 10%

chose the average answer. On word of mouth comments, 100% said Nokia was

very good or good. On the general impression on Nokia, 80% said Nokia was very

good or good and another 10% chose the neutral answer.

On how to market Nokia, 60% went to television, about 20% went to print

media (newspaper and magazine), MTR/Bus and in-store promotion each obtained

10%. Regarding competition, 82% said that Sony Ericsson was Nokias key

competitor. 58% expressed that Nokias key competitor was Motorola. Only 10% said

Samsung was also a competitor. Why is Nokia wonderful? The answers are as follows:

about 60%, quality, 40%, easy-to-use, 30%, good signal, 50%, word of mouth, 30%,

28

after sales service, 20% battery, 10%, status and 20%, fashion. 53% expressed that

Nokia used integrated marketing communications (IMC). 7% said that Nokia did not

use IMC approach. About 40% did not know about it. 62% of respondents agreed that

Nokias communication campaign could move them. 10% chose the negative answer,

20% chose the average answer and 8% did not know. About 40% of the respondents

wanted to buy a new mobile phone due to its design and new feature. About 10% took

action due to the change of brand and discount. 40% liked to go to the store direct if

they want to buy a new mobile phone but about 60% wanted to take a look at

advertisement. The author asked them the last two questions. One is what their

favorite feature is when using Nokia phone. 40% chose voice and SMS, 30% liked

camera, album and video, 10% liked to send emails, 10% wanted to play games and

10% showed interest in MP3. The last question is about the impression of Nokia on

their mind. 27% said extremely good, 53% said good and 20% chose average.

This survey indicated that currently most of respondents do not need the

advanced and sophisticated function when considering purchasing mobile phone.

They like to use the function of voice and SMS. More and more mobile phone

consumers show much interest in camera. Only 20% of the respondents decided to

buy a new phone priced at HK$4,000 above. It may show that it is hard to promote

high price product. This survey also indicated that the major consumer contact points

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are television, print media and retailers/shops. It is imperative to take advantage of

TVC, print media coverage and advertisement and in-store display and promotions

when developing IMC campaign for Nokia 8800. The phone body/cover design is

important. 40% of the respondents just liked the phone look when considering buying

a new phone. Nokia 8800 has a good look. Nokia and its products have good word of

mouth. The proposed IMC Nokia campaign will be developed based on these survey

findings, Nokias competitive advantages, market environments and Nokia 8800s

strategic focal point.

3. Market analysis

According to the Office of the Telecommunications Authority of Hong Kong

Special Administration Region, in Hong Kong there are six mobile network operators

and nine wireline-based local fixed telecommunications network services (FTNS)

operators. The six mobile operators are CSL, Hutchison, Smartone, Sunday, Peoples

and New World Mobility. Perhaps the subscriber fees in Hong Kong are the cheapest

in the world due to fierce competition among the six operators. The fact is that the

operators are striving to make profit through providing non-voice Value-Added

Services (VAS). By the end of March 2005, the mobile subscriber penetration per

population is 119.1% reflecting the level of market saturation. That means that some

of Hong Kong people use more than two mobile phones. There are 8,213,959 mobile

30

subscribers in Hong Kong. Wireless Internet services will increase beyond 100%

penetration. Many figures indicate that Hong Kong is a market with the worlds

highest market penetrations for handsets and telephone services. There had been a

slight decline in fixed line subscribers while mobile phone subscribers increased.

(Source: buyusainfo.net).

In Hong Kong, there is an adult population of 5.9 million. It is not easy for the market

to grow significantly due to the market saturation. The operators face the fierce

competition due to the introduction of number portability in 1999. Hopefully it will

help the market grow with its roll out of 3G services (Source: budde.com.au). Nothing

is impossible. Hong Kong people have always embraced new things, and ideas and

they are eager to catch up with the times. They love the trend of new technology and

want to try it. But Dow Jones indicated that it seems that 3G could not win the heart

of the fans almost one year after its Hong Kong launch. Hutchison Whampoa is facing

competition from other two competitors.

A recent report from livingroom.org.au (2004) indicates that 95% of Hong

Kong consumers purchased camera phones in the first quarter of 2005. It may remind

the handset makers to introduce more phone models with camera function because

the share of camera phones reached 97% during Golden Week (GfK). The sales

figures indicated that the best sellers were camera phones in 2004. According to GfK

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Asia (GfK.com, 2005), three times as many camera phones were sold in the fourth

quarter of 2004 comparing to the same period of 2003. In China, camera phones

account for 33% of total sales for the time being. In Hong Kong, it is 75%.

A report from Gartner Inc (Gartner.com, 2005) showed that 674 million mobile

phone units in 2004 were sold worldwide, up 30% comparing with 2003. Nokia sold

out 207 million units capturing the market share of 30.7%, Motorola occupied 15.4%

market share selling out 104 million units and Samsung gained 12.6% market share

selling out 85 million units. In 2003, Nokia gained 34.8% market share, Motorola,

14.5%, Samsung, 10.5%.

How about the sales in Asia last year? GfK Asia (GfK.com, 2005) reported that

mobile phone sales increased by 19% in Asia last year and that it is expected to

increase by 12% this year. China has a huge market recording 61% of all units sold.

Gartner reported mobile phone sales volume in Asia Pacific was 164 million in 2004,

up 24.1 compared with the previous year. Nokia achieved satisfactory business results

and its total annual sales reached 50.6 million in Asia Pacific, up 28% compared with

the previous year. The credits should go to the mid and low-tier models such as the

2300, 2650, 3200, 3315 and 6100. Finally, it should be noted that in Hong Kong sales

of mobile phones to tourists from Mainland China outstripped local replacement sales.

4. Product analysis

According to Nokia Corporation, Nokia 8800 is designed for the senses.

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Undoubtedly you have heard of the concept of the sixth sense. That is exactly what

Nokia 8800 means and implies. You may feel the attraction and charm of the sleek,

luxurious and elegant design. This creative and innovative elegant design and model

can express your desire for senses to match up with the expectation of your seeing

with a new eye, hearing music, tasting, smelling, touching and thinking. First

impression is extremely important. Nokia 8800 will leave you a lasting impression

and can help you stand out from others due to its bright brain, inner emotions, its

laser-cut curves of its stainless steel-clad body, its state-of-art slide mechanism and

fine-pitched scratch-resistant screen for striking clarity with reinforced glass. In Hong

Kongs media coverage, you can see the article entitling King of Steel, welcome

back. You look smart and feel good when you experience the experience of the

elegant Nokia 8800 because of its graceful looks and seemless functions. Nokia 8800

will bring you ultimate pleasure.

What a masterpiece! What an epitome of style and elegance! What a pantheon!

Nokia 8800 is the vivacity of life and is passionate, dramatic and compelling(Nokia

Corp.). You can enjoy the exquisitely composed ringing tones by a popular Japanese

composer, Oscar winner, Ryuichi Sakamoto. You can glide open to reveal cleverly

hidden SVGA camera(Nokia Corp.). You can use video player, digital music player,

SMS and email services. It seamlessly synchronizes with Bluetooth connectivity.

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The result and impact is that you couldnt help saying that I love you, Nokia 8800!

Key Features

-Durable stainless steel covers -Fine-pitched screen protected by scratch-resistant

glass window -Integrated SVGA camera

-Video recording and streaming -Digital music player

Size

Weight: 134 g Dimensions: 107 x 45 x 15.0-16.5 mm, 67 cc

Messaging

-SMS (containing text, an audio clip, and an image or video clip to other compatible

devices)

-Email: supports SMTP, POP3, and IMAP4 protocols

Price (estimated quotation and need to be confirmed)

750 EUR (before tax; equivalent to approximately HK$7,033; 1 EUR=9.38 HK$)

5. Competitive analysis

According to the authors field research, in Mong Kok, Causeway Bay,

Wanchai and Central, Hong Kong, the author found out that 50% of the respondents

would buy Nokia mobile phone if they plan to buy new mobile phone right now. 20%

of the respondents will choose Sony Ericsson mobile phone and the same percentage

will buy Motorola mobile phone. 10% of the respondents will choose Sharp (due to its

34

superb camera function) and other brands. Over 50% of the respondents think that the

top-three brands are Nokia (80%), Sony Ericsson (62%) and Motorola (48%) on their

mind and about 40% of them think Samsung is one of the top-three mobile phone

brands in the mobile communication market. As for who is Nokias key competitor,

82% of the respondents answered Sony Ericsson and 58% chose Motorola as Nokias

key enemy. Hence, the author will focus on the comparison among Nokia, Sony

Ericsson and Motorola. Such other players in the market as Samsung, Philips,

Siemens, LG, VK, NEC, Sharp, Panasonic, XERA, Alcatel, Mitsubishi, Innostream,

GEO, PANTECH, Toplux, ASUS, BenQ, EZIO, Ikomo, O2 XDA IIs and so forth do

not seem to be Nokias key competitors.

Nokia, Sony Ericsson and Motorola choose the similar media mix for

advertisement placement such as the mix of television (TVB Jade and ATV Home,

etc.), print media (Oriental Daily News, The Sun, Apple Daily, Metropolis Daily,

Ming Pao Daily, Sing Tao Daily, Easy Finder, East Touch, Weekend Weekly,

Eastweek, Express Weekly, Next Magazine, Sudden Weekly, Milk, Yes, Hi-Tech

Weekly, Z-Zone, PC Market, PC Weekly, etc.), MTR(Train Cards, Info Panels, large

size light box, Pillars, poster on Wall, trackside motion), Bus Shelter, Tram shelters,

Tram Body Panel, Wall, Roadshow, Commercial Radio 1&2, Metro Showbiz 997,

etc. ).

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According to the corporate website and the promotional information, Nokia has

established business relationship with 28 operators, authorized distributors and

authorized retailers but Sony Ericsson and Motorola has 20 and 14 operators,

authorized distributors and authorized retailers respectively. You may have a clear

picture through the comparison among Nokia, Sony Ericsson and Motorola in terms

of product, price, distribution channel and promotion.

A. Direct competitors

Table 3 and Table 4 compare brand/product, retail price distribution channel and

promotions.

Table 3 Comparison of brand/product, retail price and distribution channel Brand Product / Retail Price (HKD)/Distribution Nokia

Product/Retail Price Hot items/latest models: Nokia 9500($5,680), 9300($5,380), 7710($4,880), 7280($4,560), Distribution Nokia Professional Centre/Care Center (Causeway Bay Shop, Jordan Shop, Mong Kok Shop), 2C, BROADWAY, CM Concept, Circle Shop, Digital Station, Fortress, Wilson , CSL, MC, FOUNDER, New World Mobility, One2Free, PEOPLES, SmarTone, SUNDAY, CHUNG YUEN, CITICALL, CMK, 1010, CITYLINK, Cyber Telecom, GOME, BEST, PCCW, PRECISION, SOGO (28 operators, authorized distributors and authorized retailers)

Sony Ericsson

Product/Retail Price Hot items/latest models: K750i, Z800i, P910i ($4,980), S700i ($4,180) Distribution 1010, New World Mobility, One2Free, PEOPLES, SmartTones, SUNDAY, BROADWAY, CHUNG YUEN, CITICALL, CITILINK, EASYTONE, FORTRESS, GOME, New Tower, PCCW,

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PRECISION, SOUND & VISION, Tailin, Telecom Digital, WILSON (20)

Motorola Product/Retail Price Hot items/latest models: E680i, V3 ($3,680), MPx220 ($3,180), A668 Distribution SmartTone, BROADWAY, FORTRESS, CHUNG YUEN, CITICALL, CITYLINK, CM CONCEPT, Cyber Telecom, GOME, PCCW, PRECISION, SOUND & VISION, Telecom Digital, WILSON (14)

Sources: www.admango.com; www.nokia.com.hk; www.sonyericsson.com.hk; www.motorola.com.hk; Wilson Remarks: According to Sony Ericsson, Sony Ericsson, a 50:50 joint venture owned by Sony Corporation and Ericsson AB was established in October 2001 and announced its first joint products in March 2002. Its mission is to establish Sony Ericsson as the most attractive, creative and innovative global brand in the mobile communications industry. In 1967 Motorola opened its office in Hong Kong and in 1980s Motorola introduced its first mobile handsets to Hong Kong. Currently Motorola offers products and service regarding broadband, personal communication devices, public service and safety, wireless network infrastructure, and wireless accessories. Motorola has a presence in Hong Kong over the past 36 years and has employed approximately 800 staff. Table 4 Comparison of marketing communication mix Brand Nokia Sony Ericsson Motorola Product

Hot items/latest models: Nokia 9500, 9300,7710, 7280, 8800

Hot items/latest models: K750i, Z800i, P910i, S700i,

Hot items/latest models: E680i, V3, MPx220, A668

Target audience

Nokia 8800: between 28 and 46 years old with monthly income HK$21,000 and above

Key users aged 16-45. Different models have various target audiences.

Key users aged 16 45. Different models have various target audiences.

Positioning/ personality

Nokia is positioning Nokia 8800 as a prestigious,

No similar model like Nokia 8800

No similar model

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elegant and taste phone. like Nokia 8800

Advertising

slogan/

headline

Hot items/latest models: 9300(Headline: Business Class; Smart Stylish;

; ; ), 7710 (; Nokia 7710 PMP ; ; Nokia 7710 3.5 PMP), 7280 ( Nokia 7280 ; Distinctly Bold (NOKIA7280 ), 7270 (Nokia 7270 )

Hot items/latest models: K750i (Headline: ), Z800i(See The Possibilities Of 3G; The New Z800i. Unleash The Power of 3G ; ), S700i()

Hot items/latest models: E680i (Headline:! ; Motorola

;() < Wall>; The ultimate multimedia PDA - Motorola E680i ), V3 ( V3;

Ad media/

Media plan/

Advertising

spending(ad

spend

analysis)

Media Plan 2002 Media: TV, print, MTR, bus shelter, Wall, Commercial Radio 2 No. of Ins.: 4711 Total Cost HK$: 79,441,358(increased by 195% comparing with that of Sony Ericsson; Motorolas media purchase cost increased by 60% compared with that Nokia) 2003 Media: TV, print, MTR, Bus shelter, Wall,

Media Plan 2002 Media: TV, print, Tram Body Panel, Tram shelters, Wall, Commercial Radio 1 & 2 No. of Ins.: 1218 Total Cost HK$: 26,908,007 2003 Media: TV, print, MTR, Bus shelter, Tram shelters, Wall, Roadshow, Commercial

Media Plan 2002 Media: TV, print, MTR, Bus shelter, Tram shelters, Commercial Radio 2 No. of Ins.: 23056 Total Cost HK$: 127,388,341 2003 Media: TV, print, MTR, Bus shelter, Tram Shelters, Commercial Radio 1 & 2,

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Commercial Radio 1 & 2, Metro Showbiz 997 No. of Ins.: 6597 Total Cost HK$: 109,168,057(increased by 102% and 64% comparing with that of Sony Ericsson and Motorola respectively0 2004 Media: TV, print, MTR, Bus shelter, Wall, Commercial Radio 1&2, Metro Showbiz 997 No. of Ins.: 8937 Total Cost HK$: 116,549,767(increased by 11% and 26% comparing with that of Sony Ericsson and Motorola respectively)2005(Jan-May) Media: TV, print, MTR, Bus shelter, Wall No. of Ins.: 6114 Total Cost HK$: 58,628.9149(increased by 52% and 28% comparing with that of Sony Ericsson and Motorola respectively)Ad Spend Analysis(HKD) Grand Total(Jan. 2002 Dec. 2004): 275,025,279 (increased by 65% and 2.6% comparing with that of Sony Ericsson and Motorola respectively) 2002:

Radio 1 & 2, Metro Finance 104 No. of Ins.: 3668 Total Cost HK$: 54,087,994 2004 Media: TV, print, MTR, Bus shelter, Tram shelters, Wall, Roadshow, Commercial Radio 1&2, Metro Finance 104 No. of Ins.: 6160 Total Cost HK$: 105,445,232 2005(Jan-May) Media: TV, print, MTR, Bus shelter, Tram shelters, Roadshow, Commercial Radio 2 No. of Ins.: 1647 Total Cost HK$: 38,682.143 Ad Spend Analysis(HKD) Grand Total(Jan. 2002 Dec. 2004): 166,854,747 2002: 26,246,491

No. of Ins.: 6503Total Cost HK$: 66,522.181 2004 Media: TV, print, MTR, Bus shelter, Trams Shelters, Wall, Roadshow, First Vision, Commercial Radio 2 No. of Ins.: 2585 Total Cost HK$: 92,769.344 2005(Jan-May) Media: TV, print, MTR, Bus shelter, Tram Shelters, Wall, Roadshow, Commercial Radio 1 & 2 No. of Ins.: 4006Total Cost HK$: 81,302,604 Ad Spend Analysis(HKD) Grand Total(Jan. 2002 Dec. 2004): 268,160,491 2002: 116,321,228 2003: 63,557,765 2004: 88,281,498 2005(Jan.-May): 62,677,748

39

74,853,191(increased by 185% compared with that of Sony Ericsson; Motorolas ad spend increased by 55% compared with that of Nokia 2003: 98,274,529(increased by 96% and 55% comparing with that of Sony Ericsson and Motorola respectively)2004: 101,897,559(increased by 13% and 15% comparing with that of Sony Ericsson and Motorola respectively)2005(Jan.-May): 38,787,849(increased by 28% comparing with that Sony Ericsson; Motorolas ad spend increased by 62% comparing with that of Nokia)

2003: 50,094,810 2004: 90,513,446 2005(Jan.-May): 30,241,123

Accessories Headsets, music devices, video call stand, antennas, car kits, mobile chargers, headrest handsfree, holders, covers(Xpress-on Fun Shells), cables, memory cards, GPS modules, imagewear, camera flash, camera headset, image album, image frames, image viewer, observation camera, Nokia digital pen SU-1B, wireless keyboard

Batteries, USB cable DCU-60, music cable MMC-60, ROB-1, stereo FM radio handsfree HPR-20, desk stand CDS-60, standard charger CST-60, Bluetooth media centre MMV-200, flash MXE-60, handsfree,

Bluetooth, wireless helmet, wireless headset, clip-in speaker, easy install car kit, USB adaptor, battery, desktop charger with clock, charger, mini USB connector, vehicle power adaptor, camera accessory, data cable RS232, etc.

40

SU-8W, batteries, chargers, etc.

cigarette lighter adapter, Akono headset HBH-300 with CLA 11 and holder, etc.

Sales Promotion /direct marketing/PR/ event marketing

Joint promotion campaign together with other brands such us Hang Seng Bank, One2Free, CSL, Kodak Easy Share system; direct marketing (direct mail); a gift with purchase promotion/premiums; Europe tour; event sponsorship, photography contest; in-store display; promoters, PR (product launch, media interviews), etc.

Promoters, in-store display, free movie ticket as a gift with purchase promotion, premiums, coupon, event sponsorship, joint promotion with other brands, PR(product launch, press conference, media interviews, etc.

Promoters, 3 G joint promotion together with Hutchison, in-store display, premiums, coupon, event sponsorship, joint promotion with other brands, PR (product launch and media briefing), etc.

Source: www.admango.com

B. Indirect competitors

As said, there are other players in the market such as Samsung, Philips,

Siemens, LG, VK, NEC, Sharp, Panasonic, XERA, Alcatel, Mitsubishi, Innostream,

GEO, PANTECH, Toplux, ASUS, BenQ, EZIO, Ikomo, O2 XDA IIs and so

forth (information from this authors field research) but they are not Nokias key

competitors for the time being. The author of this paper does not make a comparison

between Nokia and those so-called indirect competitors but it does not mean that

Nokia does not need to be aware of their marketing moves and strategies. Nokia is

41

required to keep its eye on what all players are doing. More important, it is wise for

Nokia to focus on its resources, time, money and energy on the competition with its

key competitors such as Sony Ericsson, Motorola.

6. SWOT analysis

According to this authors survey, Nokia enjoys superb word of mouth, good

image and reputation. Nokia is top-of mind of many consumers because of its quality,

services and human-oriented and human-center culture. But Nokia is facing fierce

competition from Sony Ericsson, Motorola and Samsung. Some of the

respondents/interviewees complained that Nokias battery life is not long and that the

shape design is not very attractive as they expect. They could not accept that fact why

their new phone lacks some functions of the previous or out-of fashion models. And

many consumers do not know Nokias development history, brand positioning,

personality and proposition. Table 5 is a SWOT analysis of Nokia.

Table 5 SWOT analysis

Strengths Weaknesses

-Market leader -Top-of-mind brand in consumers mind/brand popularity -Good word of mouth/good reputation -Superb quality/sophisticated technology-Easy-to-use/good signal/PC Suite -Provide various models for different segments

-Battery life is not long. -Shape design is lower than consumers expectation. -Consumers do not know Nokias development history and positioning well. -Poor crisis management (battery explosion incident, etc.)

42

-Excellent after-sale services/one-hour express maintenance service in Hong Kong and the Mainland China -Online training program -Life goes mobile!/human-center approach -Close relationship with operators, distributors and retailers

-Some marcom strategies are not successful.

-IMC approach is not used effectively.

Opportunities Threats

-Upturn of Hong Kongs economic development -29% of Hong Kong children aged 6-15 have a mobile phone (TNS report). -More and more mainland Chinese visit Hong Kong and like to buy mobile phone here. -3G market potential is huge. -Re Nokia 8800 launch, the absence of any rivals in the from factor

-Market saturation/high level of penetration -Fierce competition from direct and indirect competitors(please refer to Table 2 and Table 3) -3G outlook is not optimistic at early stage. -Fake battery issue

IV. Target Market Profile

The target consumers of Nokia 8800 are Hong Kongs male aged 28-46 with

monthly income HK$21,000 and above. Their occupations are related to design,

entertainment, fashion, finance, etc. They are degree holders, secondary and

matriculation graduates. Some of them enjoy prestige and some of them are eager to

gain prestige. They have natural grace and elegance. They are fond of fashion and the

vivacity of life and are passionate. They enjoy the balance of life and career. They like

to get updated information through the consumer contact points such as television,

43

print media and Internet.

V. Communication Objectives

Advertising objective: launch and stimulate awareness of Nokia 8800 among 65% of

the Hong Kongs male aged 28-46 with high monthly income HK$21,000 and above

and encourage them to buy Nokia 8800 during July to October 2005.

Creative objective: to establish in the minds of the target market an association

between Nokia 8800 and prestige, elegance and taste.

Media objective: to reach 75% of the target market during July to October 2005.

Sales promotion objective: to get 8% of the target market to get involved with the

promotional events during July to October 2005.

Public relations objective: to deliver the key message to 55% of the target market

during July to October 2005.

Direct response marketing/E-marketing objective: to interact with 5-8% of the target

market and stimulate sales during July and August 2005.

Event marketing objective: to attract the potential consumers to the event and

stimulate interest in buying.

VI. Budget for Nokia 8800 IMC Campaign

Table 6 is the total budgets for Nokia 8800 launch.

44

Table 6 grand total budgets for Nokia 8800 launch Tools Budget (HK$) % PR/Event marketing 3,813,000 45 Advertising 3,840,000 46 Sales promotion 515,000 6.17 Direct response 100,000 1.2 Interaction/Internet 80,000 0.96 Grand Total: $8,348,000.00

VII. Marketing Communication Strategy Overview

In Hong Kong and even worldwide, many marketing professionals or

practitioners like to research integrated marketing communication (IMC) strategy and

approach but seldom employ integrated marketing communication strategy and tactics

to create, develop, implement and manage their marketing communication programs.

In our realistic world, only few IMC cases are successful. Hence, this project tries to

develop a new integrated marketing communication program for Nokias coming

Nokia 8800 model. It will review and discuss the new generation of IMC and IMC 3D

Approach. Probably this new IMC program is the first paper/case that is created by a

student of Hong Kong Baptist University in Hong Kong (this authors subjective

judgment based on his recent library research).

The author will share with you how he plays IMC Symphony for the coming

Nokia 8800 model launch. It is assumed that Nokia 8800 is available in Hong Kong in

45

July 2005. This IMC Symphony reflects the effective interaction, interrelation and

cohesion among the marketing communication tools such as advertising, public

relations, sales promotion, direct response marketing/internet/interaction and event

marketing. It can deliver a single-minded message/one voice to the target audience

and help stimulate sales effectively and efficiently. The IMC campaign theme is The

Prestigious King of Steel Nokia 8800: Move Hong Kong and Move You! The

launch period will last until October 2005 starting from July 2005. The key events

include advertising campaign, press conference for Environmental Program kick-off

and donation ceremony, media in-depth interviews, co-operation with Nokia 8800s

spokesperson Guo Jingjing(Chinese Olympic champion diver), golf contest, quiz on

Who is Guo Jingjings boyfriend? and tidbit, Disneyland opening

ceremony(September 12, 2005), and firework display at Victoria Harbor on National

Day. Traditionally advertising dominates the marketing communication market

comparing with other marketing communication tools. This time the project is trying

to employ public relations that will take the lead to integrate with other tools

including advertising because the researcher knows much about public relations after

more than seven years with Ketchum-Newscan Public Relations Worldwide. That

means that other communication tools will support public relations program under the

umbrella of the campaign theme named The Prestigious King of Steel Nokia 8800:

46

Move Hong Kong and Move You!

VIII. Public Relations Strategy (including Event Marketing Strategy)

According to the situation analysis and the SWOT analysis, it is necessary to

use IMC approach to tackle the challenges from the internal and external

environments. Below are the major public relations events proposed for

implementation during the launch of Nokia 8800.

The Theme

The Prestigious King of Steel Nokia 8800: Move Hong Kong and Move You!

(Nokia 8800)

Nokia 8800 is especially designed for the senses. Nokia 8800 can meet the

needs of your six senses. From today on you see this world with a new eye after you

have a Nokia 8800. You can enjoy sound melody, you can taste in a different manner

and you can smell, touch and think differently. Nokia 8800 can bring you prestige,

elegance, graceful look, ultimate pleasure, passion and the vivacity of life and more

importantly she helps Hong Kong and you create a good environment. That is why

she can move Hong Kong and Hong Kong people!

Public Relations Programs

1. Press Conference for The Prestigious King of Steel Nokia 8800: Move Hong

Kong and Move You! and Environmental Program Signing Ceremony

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Date/Time: 10:30 am 14:00am, 11 July 2005 (Monday)

Venue: Salisbury Rooms 1, 2 & 3 (combined), Peninsula Hotel, Salisbury Road,

Kowloon, Hong Kong

Objective:

To announce how Nokia 8800 helps protect Hong Kongs environment

through donation and the cooperation with Hong Kong SAR government. To

announce that Guo Jingjing will serve as spokesperson for Nokia 8800. To

announce that Hong consumers can have the opportunity to become Guo Jingjings

boy friend if they buy Nokia 8800( of course it is just a game for fun).

Target audiences:

They include Hong Kongs male aged 28-46 with monthly income HK$21,000 and

above, media, government officials and retailers.

Key message:

(1)Nokia 8800(Nokia Corp.) would like to donate HK$500,000 to Hong Kong SAR

Government and helps Hong Kong create a good environment. Nokia 8800(Nokia

Corp. ) will make donation of up to HK$1.5 million to Hong Kong Government by

the end of the launch of Nokia 8800 in October 2005. Total donation is HK$2

million.

(2) Guo Jingjing, Chinese Olympic champion diver will serve as spokesperson for

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Nokia 8800 and Hong Kong consumers can have the opportunity to win her

heart and be her boy friend(It will be clearly stated that it is just a kind of

game for fun. It is assumed that the sponsor has persuaded Guo Jingjing to

interact with consumers. Obviously it is a kind of commercial event. Guo

Jingjing is very popular in Hong Kong.).

Strategies & Tactics

(1) To create healthy noise during the launch of Nokia 8800 and build good

market environment for Nokia 8800 through Environmental Program and the

cooperation with Guo Jingjing

(2) To interact and interrelate with other communication tools so as to create a

topic of the town during the launch of Nokia 8800

(3) To gain extensive and quality news coverage on Nokia 8800 launch, its

contribution to environmental protection and the cooperation with Guo Jingjing

(4) To arrange in-depth interviews with key media (TVB, Oriental Daily, Next

Magazine, etc.) on Nokia 8800 and its coming campaigns

(5) To provide tidbit on Guo Jingjing and her new boy friend (Nokia 8800s

mobile phone consumer) that can be the hot topic of the town (Hong Kong

consumers may have a chance to become Guo Jingjings new boy friend if

they buy Nokia 8800.)

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Program rundown

10:30 am 11:00 am Registration and press kit/souvenir distribution

11:00 am 12:00 noon Keynote speech/donation/ introduction to Guo Jingjing

12:00 am 12:30 pm Media interview with key selected media

12:30 am 2:00 pm Lunch and program ends

Backdrop wording

The Prestigious King of Steel Nokia 8800 and Guo Jingjing Heart to Heart:


Press Conference and Environmental Program Donation Signing Ceremony

Hong Kong 11 July 2005

Media list

TVB Jade & Pearl and ATV Home and World, Cable TV, Associate Press, Xinhua

News Agency, Oriental Daily News, The Sun, Apple Daily, Metropolis Daily, Ming

Pao Daily, Sing Tao Daily, Easy Finder, East Touch, Weekend Weekly, Eastweek,

Express Weekly, Next Magazine, Sudden Weekly, Milk, Yes, Hi-Tech Weekly,

Z-Zone, PC Market, PC Weekly, Commercial Radio 1&2, Metro Showbiz 997,

etc. .

Guo Jingjing Profile

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Name: Guo Jingjing Gender: Female Date of birth: 15/10/81

Place of birth: Baoding, Hebei Province Height: 163cm Weight: 48kg

Education: University Hobby: Music Sport: Diving

2003 World Championships - 1st 3m springboard/synchronized springboard

2004 World Cup - 1st 3m synchronized springboard; 2nd 3m springboard

2004 Olympic Games - 1st 3m springboard & synchronized springboard(Gold

Medalist/Olympic champion diver)

Budget (cost estimated and to be confirmed)

(1) Venue: HK$15,000

(2) Backdrop design and production: HK$22,000

(3) Overhead projector: HK$18,000

(4) Photography and video service: HK$30,000

(5) Food & beverage: HK$30,000

(6) PR agency fee: HK$50,000

(7) Donation: HK$500,000

(8) Guo Jingjng: HK$1 million (including starting fee)

(9) Others (transportation, telephone, fax, postage, fee for receptionists, souvenirs,

tent cards, contingency, etc.): HK$50,000

Grand Total: HK$1,715,000

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2. Press release distribution

Date: 19 August, 2005 (Friday)

Topic: Result announcement of the quiz on Who will be boyfriend of Guo

Jingjing Guo Jingjing? and tidbit (interrelated with advertising, sales promotion

and direct marketing )

Media list:


News Agency, Oriental Daily News, The Sun, Apple Daily, Metropolis Daily,

Ming Pao Daily, Sing Tao Daily, Easy Finder, East Touch, Weekend Weekly,

Eastweek, Express Weekly, Next Magazine, Sudden Weekly, Milk, Yes, Hi-Tech

Weekly, Z-Zone, PC Market, PC Weekly, Commercial Radio 1&2, Metro Showbiz

997, etc.

3. Golf contest

Date/Time: 10:30 am 16:00am, 30 July 2005 (Tuesday)

Venue: Mission Hills, Shenzhen, China

Present: A total of 10 selected consumers based on lucky draw will play golf

together with Guo Jingjing. Media representatives will be invited to cover the

event.

Objective:

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It aims to stimulate sales during launch period and interact with consumers actively

and it is closely interacted and interrelated with sales promotion, advertising and

direct marketing.

Media list for publicity:





Z-Zone, PC Market, PC Weekly, Commercial Radio 1&2, Metro Showbiz 997, etc.


(1) Golf course: HK$10,000







Grand Total: HK$90,000

4. Disney Opening Ceremony and Guo Jingjing Marriage (It is assumed that it is a

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joint promotion with Disney Hong Kong)

Date/Time: 10:30 am 13:00am, 12 September 2005 (Monday)

Venue: Disneyland, Hong Kong

Objective

To continue to take advantage of the momentum to stimulate sales

Key message

One Hong Kong Nokia 8899 fan, the lucky star will marry Guo Jingjing and

the marriage will be held at Disneyland, Hong Kong.

Note: It is just a game for fun. It aims to attract media attention and coverage and

interact with consumers.


To design a joint promotion program with Disney Hong Kong and provide tidbit on

Guo Jingjing and her new boy friend(Nokia 8800s mobile phone consumer) that

can be the hot topic of the town.

Program rundown


10:30 am 12:00 noon Keynote speech/ Guo Jingjings wedding ceremony

12:00 am 12:30 pm Interview with key selected media


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Backdrop wording



Guo Jingjings Wedding Ceremony

Hong Kong 12 September 2005

Media list







(1) Venue: free of charge (it is because it is joint promotion program with

Disney)







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5. Press Conference for The Prestigious King of Steel Nokia 8800: Move Hong

Kong and Move You! and Environmental Program Donation Ceremony

Date/Time: 10:30 am 14:00am, 6 October 2005 (Thursday)

Venue: Salisbury Rooms 1, 2 & 3 (combined), Peninsula Hotel, Salisbury Road,

Kowloon, Hong Kong

Objective:

To announce Nokia 8800(Nokia Corp.) helps protect Hong Kongs environment

and donates HK$1 million to Hong Kong SAR government.

Target audiences:

They include Hong Kongs male aged 28-46 with monthly income HK$21,000 and

above, media, government officials and retailers.

Key message:

(1)Nokia 8800(Nokia Corp.) would like to donate HK$150,000 to Hong Kong SAR

government and helps Hong Kong create a good environment.

(2) Guo Jingjing, Chinese Olympic champion diver who acts as spokesperson for

Nokia 8800, is happy to cooperate with Nokia in Environmental Program.


(1) Continue to create healthy noise for Nokia 8800 and build good market

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environment for Nokia 8800 through Environmental Program and the cooperation

with Guo Jingjing

(2) To gain extensive and quality news coverage on Nokia 8800 and its contribution

to environmental protection and the cooperation with Guo Jingjing

(6) To arrange in-depth interviews with key media (TVB, Oriental Daily, Next

Magazine, etc.) on Nokia 8800 and this environmental project

(7) To provide tidbit on Guo Jingjing and her new husband (Nokia 8800s mobile

phone consumer) that can be the hot topic of the town

(8) Program rundown


10:30 am 12:00 noon Keynote speech/donation

12:00 am 12:30 pm Interview with key selected media


Backdrop wording



Press Conference and Environmental Program Donation Ceremony

Hong Kong 6 October 2005

Media list


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(1) Venue: HK$15,000


(3) Overhead projector: HK$18,000

(4)Photography and video service: HK$30,000

(5)Food & beverage: HK$30,000

(6)PR agency fee: HK$50,000

(7)Donation: HK$1,500,000

(8)Others (transportation, telephone, fax, postage, fee for receptionists,

souvenirs, tent cards, contingency, etc.): HK$50,000

Grand Total: HK$1,715,000

6. National Day Firework Displays at Victoria Harbor

Date: 1 October 2005 (Saturday)

Time: to be confirmed

Venue: Victoria Harbor, Hong Kong

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Objective: to invite selected consumers and their girl friends to spend National Day

and enjoy firework display together with Guo Jingjing; gain excellent publicity

Target audiences: consumers and media

Key message: Guo Jingjing, Chinese Olympic champion diver who serves as

spokesperson for Nokia 8800, spends National Day and enjoys firework displays

together with the selected consumers and their girlfriends.

Strategies & Tactics:

(1) To interact and interrelate with other communication tools so as to create a

topic of the town

(2) To gain extensive and quality news coverage on Nokia 8800

(3) To provide tidbit on Guo Jingjing and the consumers (Nokia 8800s mobile

phone consumers) on how they spend happy hour on cabin cruiser. It can be the

hot topic of the town.

Media list:







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(1) Tickets for Cabin-cruiser: HK$50,000





VIIII. Advertising Strategy

Key problem

-Market saturation/high level of penetration

-Fierce competition

-Nokia 8800 is a new model/no or low awareness and perception

Opportunity

-Upturn of Hong Kongs economic development

-Hong Kong Walkers from Mainland China

-Superb word of mouth/top-of-mind brand

-Prestige and elegance/graceful look (Nokia 8800)

Description of target audience: demographic / psychographic

The target consumers are Hong Kongs male aged 28-46 with monthly income

HK$21,000 and above. Their occupations are related to design, entertainment, fashion,

finance, etc. They are degree holders, secondary and matriculation graduates. Some of

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them enjoy prestige and some of them are eager to gain prestige. They have natural

grace and elegance. They are fond of fashion and the vivacity of life and are

passionate. They enjoy the balance of life and career. They like to get updated

information through the consumer contact points such as television, print media and

Internet.

Communication objective

Launch and stimulate awareness of Nokia 8800 among 65% of the Hong Kongs male

aged 28-46 with high monthly income HK$21,000 and above and encourage them to

buy Nokia 8800 during July to October 2005.

Creative objective

To establish in the minds of the target market an association between Nokia 8800 and

prestige, elegance and taste.

TVC Story outline

It is an interesting story. The key message is the prestigious King of Steel Nokia

8800 helps your beautiful dream come true. The key frame is the scene on how Guo

Jingjing kisses and embraces Nokia 8800.The interesting part is Guo Jingjing regards

Nokia 8800 as her sweetheart/lover in her senses and mind. It may remind the

consumers that probably they can be Guo Jingjings boy friend if he buys one Nokia

8800 now. This advertisement employs a slice-of-life execution style to illustrate how

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Guo Jingjing(spokesperson of Nokia 8800) loves Nokia 8800 and how she wants to

give a kiss to Nokia 8800.

At the beginning of the story, Guo Jingjing checks into a hotel (Peninsula Hotel in

Hong Kong). In her luxurious hotel room, she feels the senses and prestige, elegance

and graceful look from Nokia 8800. She is using Nokia 8800 and suddenly she hears

from Nokia 8800(a virtual persons voice) saying that Can I be your boy friend?

Guo Jingjing is very surprised and excited. Then, ANNCR(VOICEOVER, males VO )

tells the audience that probably you will be Guo Jingjings boy friend if you have a

prestigious King of Steel Nokia 8860. The ANNCE(VO) continues to deliver the

message saying that from now on if you buy one Nokia 8860 you will have the

opportunity to be Guo Jingjings boy friend, to play Golf with Guojingjing, to enjoy

firework displays on National Day together with Guo Jingjing and even to hold a

virtual wedding ceremony together with Guo Jingjing during the Disneyland Hong

Kong opening ceremony on 12 September 2005. Do you know Guo Jingjing is

waiting for you?

TVC Script

Guo Jingjing checks in at Peninsula Hotel, Hong Kong.

She feels the senses from Nokia 8800 in her room. She sees Nokia with a new eye.

She hears the melody from Nokia 8800. She is thinking how to touch Nokia 8800.

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She wants to give a kiss to Nokia 8800. She smiles at Nokia 8800. Finally she

embraces Nokia 8800.

Guo Jingjing is using Nokia 8800

Nokia 8800(virtual males voice): May I be your boy friend?

Guo Jingjing feels surprised and excited. She does not say anything and just kisses

Nokia 8860

ANNCR(VOICEOVER):

You will be Guo Jingjings boyfriend if you have a

an imc plan for nokia 8800: playing strategic marcom...

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