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MARKETING MANAGEMENT FINAL PROJECT  NOKIA E 90 COMMUNICATOR AHMAD MUSTAKEEM NADEEM    STUDENT # 1030220
INTRODUCTION Nokia E90 CommunicatorIs a premium business device with high-speed mobile broadband and integrated mobile office that keeps you effective while on the move.  Features at a glance.  The Nokia E90 Communicator features 3G, HSDPA and WLAN for true Broadband connections and global coverage using quad band GSM 850/900/1800/1900 and WCDMA 2100. A QWERTY keypad, active matrix color display with 800 x 352 pixels x 16M colors, and features you typically rely on your PC for, gives the Nokia E90 Communicator "all in one”, laptop, PDA and phone functionality to accomplish any business task. The Nokia E90 Communicator also includes a built-in GPS receiver that works as a stand-alone positioning device using GPS satellites.  Use the Nokia E90 Communicator to navigate and find your location using the built-in maps. Browse the Internet and transfer media-rich files via HSDPA (up to 3.6 Mbit/s enabled) and 3G high-speed mobile broadband. Increase mobile productivity with applications for browsing and editing documents. Talk on every continent with quad-band GSM global roaming. Access voice and data functions quickly and easily with convenient shortcut keys. Be in the right place at the right time with versatile calendar functions and integrated GPS
SPECIFICATIONS
Strength Technology: The Nokia E90 Communicator is compatible with worldwide GSM frequencies which is convenient if you travel overseas frequently.  Talk Time: A talk time of 348 minutes. It is very good  Stand-by Time: A stand-by time of 336 hours. It is excellent  Phone Book: It can store a variable number of phone book entries. This is generally the case of phones with a dynamic memory and it generally allows for a lot of phone numbers to be stored. (score: 20/20) Nokia Threat of entry from new players, Microsoft Siemens Network Memory Expansion Slot: It has a memory expansion slot MicroSD, a convenient way to store more music and pictures or transfer them from and to your laptop computer.  Speakerphone: It has a speakerphone, which will prove useful in a car or in other situations.  Streaming TV: Streaming Video or TV. Streaming TV, provided your carrier offers it, allows you to watch real live TV on your cell phone  but can help kill time in queues, doctor waiting rooms or many other situations.  Wireless Data System: Bluetooth-enabled, which is an interesting plus. Bluetooth is not really necessary but may be handy if you want to use a wireless headset or transfer data to or from your (Bluetooth-enabled) laptop, for instance.  Camera: It has an advanced camera: 3.2 megapixel
Weakness Weight: 7.40 ounces of the Nokia E90 Communicator is a lot of weight. Whether you carry it in your pants pocket or a purse, you could find it heavy.  Third party applications incompatible with the built-in GPS Charges for navigation capabilities Multitasking still not perfect Inadequate battery life No small-size charger like in the N95 No camera lens cover Wired headset with a 2.5mm jack, no volume control on the remote No USB Mass Storage for the phone memory Price
Opportunity Nokia E90 Communicator is a 3G smartphone made by Nokia and the latest model of the Communicator series. It was announced in February 2007 at the 3GSM show in Barcelona. The first Nokia E90 unit was sold in an auction in Jakarta, Indonesia on May 17, 2007 for Rp. 45,000,000 (5,000 US$). Indonesia being one of the largest market share for Nokia's communicator series is cited as a reason for the unit's first launch location. E90 starts the fifth generation of Nokia's communicators, and also introduces a new platform to Nokia's communicator line, Series 60 v3. Previous communicators have been based on either GeOS or Series 80 (old models are shown below). E90 is also the first Nokia communicator to have UMTS/HSDPA connectivity and integrated GPS. It features OSGi and eRCP, Eclipse RCP for embedded systems.
Threats Rivalry is intense among existing players. The differentiation in terms of product features are getting diminished; however players are continuing to differentiate their products in terms of applications and services offered.  Exit barriers have to be evaluated in correlation with value chain analysis. Exit barriers are low for manufacturers that occupy only part of the value chain against the manufacturer that occupy most of the value chain.  Complements are critical for product differentiation and they have a very moderate bargaining power. The power of complementary products (Applications) will be further subsidized with increasing network externalities. We do not see complements gaining more power until all the mobile platforms converge under some common standards. Some complements include: Email Maps & GPS Applications Music & other media related applications which are already provided by the nokia E90 communicator as standard in its feature so it wont be long until other follow suit with all these feature.
Goals A smartphone is a mobile phone offering advanced capabilities, often with PC-like functionality. There is no industry standard definition of a smartphone. For some, a smartphone is a phone that runs complete operating system software providing a standardized interface and platform for application developers. For others, a smartphone is simply a phone with advanced features like e-mail, Internet and e-book reader capabilities, and/or a built-in full keyboard or external USB keyboard and VGA connector. Nokia E90 communicator envisions a world where connecting people to what matters empowers them the most of every moment Nokia E90 is devices and a leader in converging Internet and communications industries. The nokia E90  device targets all major consumer segments and offer Internet services that enable consumers to experience a wide array of services.  Smartphone segment is one of the rapidly growing segments in the mobile handset industry. Smartphones are penetrating into mobile handset market at a very fast rate capturing a larger pie of the overall mobile handset market and hence that segment is more lucrative. Though Nokia is a market leader in the entire mobile industry, its performance in smartphone market is abysmal in comparison with its competitors  If Nokia and its competitors perform at the same rate it will take no more than couple of years for Nokia to lose its market leadership position.
Objectives
Justification Nokia Smartphone portfolio mix E 90 is shown by qwerty key on the graphs and it has gained most in the portfolio mix Nokia E90 Communicator, what more do you want? The PC in your hands!
Marketing Strategy & Tactics Customer group  The First Nokia E90 Communicator Sold The first unit of Nokia E90 Communicator sold in an auction in Jakarta, Indonesia. A businessman, Hartono Gunawan, won the auction by offering the amount of Rp 45,000,000 (US$5,000) and got "the first E90 sold in the world".  Two executives of Nokia Finland, JouniPolonen, Product Program Manager Enterprise Solution and Mika Savolainen, Product Manager, Enterprise Solution, attended the-called Indonesia's Nokia Communicator Community Gathering in Ritz Carlton Hotel, Jakarta. More than 1,000 Communicator users attended the gathering.According to Nokia Indonesia general manager, Hasan Aula, the money got from the auction will donate as charity to UNICEF. Hasan said, in the recent decade, Nokia has always chosen Jakarta as the first city to launch each Communicator series globally. "E90 Communicator will also launch here next month for the first time," he told SlashPhone. The historical journey of the Nokia Communicator began in September 1996 with the launch of the first Nokia Communicator (the Nokia Communicator 9000) which had also resulted in the conception of a community of loyal Nokia Communicator users that are known today as the Communicator Community. Today, the Communicator Community boasts a membership of more than 30,000 and still continues to grow. Nokia Indonesia general manager Hasan Aula (left), Hartono Gunawan with his first E90 (center) and Ferry Salim (Indonesia's UNICEF Ambassador). Benefits sought by this customer group Nokia's Bulky Smart Phones Find Niche Following There As Business Status Symbol. JAKARTA, Indonesia Nokia Corp.'s Communicator smart phone  better known as "the Brick"  was launched in the West a decade ago. It never really took off. Its bulky design has made it look dated compared with a wave of newer, slimmer devices that allow users not only to make calls, but also to browse the Internet and send emails but in Jakarta, the Brick lives on. Here, its ungainly size and heft. It weighs in at a whopping half-pound and doesn't fit easily in a pocket have made it a must-have symbol of wealth and success among models, politicians and multimillionaire businessmen. It even has a fan club: The Nokia Communicator Community, a 30,000 strong gang of aficionados. Last year, Nokia sold a few hundred gold-plated Communicators at $2,500 each. Two years ago in Jakarta, a rush on stocks of the 9500, the old Communicator model, pushed retail prices 50% above the normal selling price of around $600.
Marketing Strategy & Tactics Now, Nokia is hoping to improve the Communicator's global image and take on the BlackBerry in the U.S. and Europe with the E90, which is about half an ounce lighter and a little slimmer than its predecessors although still one of the heaviest smart phones on the market. BlackBerrys, by comparison, typically weigh less than a third of a pound. Just last week, Nokia attracted 1,000 people to the ballroom of the Ritz-Carlton hotel in downtown Jakarta for a presentation of the E90. At the event, an Indonesian businessman paid $5,100 at auction to become the first person in the world to buy one of the handsets. (Nokia plans to launch the phone globally in June for about $1,000.) Nokia argues the E90 has so many new features like fast Internet connectivity and a GPS navigational system that it should be compared to a laptop computer, not other smart phones. Nokia has opted not to tinker too much with the design: The keyboard and screen are still much larger than on other phones. The company has promised Indonesia will be one of the first markets to receive the product. The Communicator has also carved out a niche following in some other countries like India and the United Arab Emirates, for instance butIndonesia is the world's largest market for the device. It also has a big lead here over its new rival, Research In Motion Inc.'s BlackBerry. While BlackBerrys have been increasing in popularity in the U.S., Europe and parts of Asia for many years, they were only introduced in Indonesia in late 2004. Internal theme of the marketing strategy  Industry analysts say Nokia's ability to sell more smart phones like the Communicator is crucial to maintaining profit margins, which are being squeezed by manufacturers such as Motorola Inc. and Samsung Co. Ltd. in the fierce competition to sell simpler, low-cost handsets in fast-growing emerging markets. Nokia, the world's largest cellphone manufacturer with a 36% market share, sold 347 million handsets last year. Only 40 million of those were smart phones. But in the first quarter, Nokia's sales of multimedia devices jumped 28% to $2.3 billion out of total net sales of $9.9 billion. Business phone sales, which include the Communicator, jumped 75% to $326 million a small, but fast-growing segment of Nokia's market. By contrast, sales of standard cellphones dropped 5% to $5.6 billion. Nokia, based in Espoo, Finland, has a head start in emerging markets like Indonesia. Operators such as RIM were slower to roll out their services because they "don't have the global scale and power of brand that Nokia has," says Eva Bakowicz, a telecommunications analyst with Global Insight, a market-data company based in Boston. RIM, which like Nokia doesn't break out individual country sales, is happy with its Indonesia business and is focusing on attracting high-value clients such as multinational companies, says spokeswoman Katie Lee. "Our target is a niche market," she says. Still, loyalty to Nokia has made Indonesia a tough market to crack. ShantiPoesposoetjipto, a prominent local businesswoman, has tried other smart phones for short spells, most recently the Dopod, powered by Microsoft Corp.'s Windows and made by Taiwan-based High Tech Computer Corp. But they all lacked one key ingredient: Nobody else seemed to be using them. "It's in to have a Communicator," she says.
Marketing Strategy & Tactics Fans of Nokia's Communicator smart phone a status symbol in Indonesia hold the bulky devices in the air. Some users take pride in the smallest differences in their devices. AbdoelDjalal, a 75-year-old former lecturer who wears his phone in a pouch on his belt loop, is proud that his Communicator was assembled in Finland. It is no different from a China-manufactured model in terms of quality, but it's considered a status symbol nevertheless. "I'm incredibly loyal to this brand," he says. One factor fueling the rise of the Communicator: It has become a popular gift for Indonesians that want to win influence in the country's Parliament or with a business partners. Its price tag makes it a substantial enough gift, but not a wildly expensive one. "It's considered to be so prestigious, you give it to your most important business partner," says AnttiVasara, a Finland-based senior vice president in Nokia's enterprise-solutions group, which develops the Communicator. Some folks carry two models -- just because they can. "Other politicians have two, so I have to have two," says Zulkieflimansyah, a member of Parliament who alternates between his phones to answer calls and send messages. Nokia was initially surprised by the success of the Communicator in such an unlikely market. "'Wow, why is it selling there?' " was a common response from Nokia executives in Finland, says Mr. Vasara. The buzz around the Communicator is a great marketing tool in Indonesia, which has one of the lowest cellphone penetration rates in Asia. Less than 30% of Indonesia's 230 million citizens currently use cellphones, a much lower proportion than in Malaysia, at 80%, and the Philippines, 40%. Penetration rates have been low in Indonesia because of poverty and a slow introduction of cellphone services. Many people couldn't afford phones until recently; now that the economy is growing again, analysts say the rate should pick up quickly. But in Jakarta, some die-hard Communicator fans don't like attempts to modernize a tried-and-tested model. One problem: The E90's 3G network won't have the capability to send faxes. Although faxes aren't as popular as they once were in the developed world, they are important for doing business in many parts of Asia. Others complain that the trend to slim down the Communicator means a smaller keyboard and more difficulty typing.
Product Company profile  Nokia corporation is the biggest producer of telecommunication tools in the world and it is also known as the biggest company in Finland. This company is well known through its mobile phone products. Nokia corporation produces mobile phone for the whole market and the main protocol, including GSM, CDMA, and W-CDMA (UMTS). As mobile phone use booms, Nokia makes the sector its core business. By the turn of the century, the Nokia Corporation became the world leader. In 2000 until right now, Nokia sells its billionth mobile phone as the third generation of mobile technology emerges.  Characteristics Nokia E90 communicator is the new generation of communicator series. This exclusive mobile phone provides 2 variant of colours to fulfil the customer demand, which is mocha and red. Mocha is specifically created for businessmen who want to look strong and masculine otherwise red is perfectly created for businesswomen who want to look feminine and elegant. Nokia corporation wants to make this premium mobile phone as a full mobile entertainment beside the office mobile phone.  So, Nokia puts dual amazing cameras to this phone. In platform and operating system, Nokia uses S60 third edition and OS Symbian verse 9.2. So, this exclusive mobile phone is user friendly and easy to use. If you like travelling, this smart phone can accompany you travel around the world because it can operate in quad band (850/900/1800/1900 MHz) and the important thing, this new generation of communicator series can operate in UMTS or popular with name “3G. There are a lot of benefits that you can get if you buy this quad band phone. The benefits of Nokia E90 Communicator are you can browse the internet and transfer media files quickly via HSDPA (up to 3.6 megabyte). You can also increase your productivity with mobile Microsoft Office application to see and edit Microsoft Words documents, Microsoft excel documents, and Power Point presentation. So, you can take your office wherever you go. Talking in every continent with GSM quad band and selection among band automatically.  Access voice and data quickly and easily with convenient shortcut keys that you can personalize by your own. Also, searching locate meeting venue, restaurants, banks, hospitals and interest places with integrated GPS (Global Positioning System). Beside that, you can share your favorite images with 3.2 megapixels camera (2048 x 1536 pixel), completed with flash and autofocus mode.
Price Price of The Product  The biggest communicator users in the world is Indonesian people. So, in the first launching, 13 June 2007, Nokia corporation set price of E90 communicator at Rp10.900.000,00 for only 2000 first mobile phone units. But in the mobile phone market, most phone retailers increased the price of this phone from the Nokia standard price to Rp15.000.000,00. Then in the next 2 month, the price of this product decreased up to Rp2.000.000,00. This condition occurred because there was a Black Market (BM) mobile phone that came from Singapore. In Singapore, the price of Nokia E90 Communicator was cheaper than in Indonesia.   Value factors  Nokia E90 Communicator is perfectly designed for premium class, such as professional businessmen or businesswomen who need computer, multimedia, and entertainment in one device. The person who uses this mobile phone usually comes from high social and economy class. It means, Nokia E90 Communicator can represent their status as a professional and active business people in their society.  This mobile phone is an user friendly product that easy to use. Nokia E90 Communicator provides a complete facilities for professional people who are active and have high mobility because this phone has quick office application to see and edit documents, such as Microsoft word documents, Microsoft excel, Power Point presentation and Adobe Reader. It is also easy if you want to install application to personalize or even maximize the function of this mobile phone.  Nokia corporation has so many service centers which will help consumers when they have a problem or get difficulty in using this premium phone. Nokia E90 Communicator is a suitable mobile phone to accompany every professional business people in several years toward before the next generation of communicator series releases. It is a long life high technology mobile phone that will not out of fashion. It is not a big surprise if this mobile phone has a high price. The generations before are also has a high price but high price equals with the value that will be got by the customers if they buy this mobile phone because Nokia E90 communicator is a high value phone that will not disappoint them. This phone can increase mobility and productivity.   Pricing Strategies  In Indonesia, there are a lot of people who are interested in Nokia E90 Communicator. So, Nokia corporation used this opportunity to set high price to this premium mobile phone. In first launching of the product, Nokia sold E90 communicator to people who can buy this phone with the highest price. This event is held on 16 May 2007, at Ritz Carlton Hotel, Jakarta. It is sold to a professional businessman named Hartono Gunawan, and made Hartono Gunawan as the first person who has Nokia E90 Communicator. He bought this mobile phone in Rp.45.000.000,00 ($5100) and its profit was donated to UNICEF.   Price Negotiation  There is always a special offer that is offered by Nokia in promoting each of its mobile phone. For E90 Communicator, Nokia offers to customer to buy this phone in two common ways, by cash or 12 months credit. For the owners of Visa Card, Nokia gives special offer if customers buy Nokia E90 Communicator in 12 months credit. Customers do not need to pay the 3% for the interest. This special offer only valid if customers buy this premium mobile phone in Nokia official store.
Price
Place Form of Distribution  Nokia E90 Communicator is distributed intensively to every province in  Indonesia. The official distributor of Nokia mobile phone in Indonesia is Parastar and Bimasakti. So it is not difficult for customers if they want to get this exclusive  mobile phone. Every Nokia mobile phone customers in Indonesia can buy this  next generation of communicator series in every mobile phone store, started from  the Nokia official store (eg. Nokia Priority, Oke Shop, and Global Teleshop) until  common mobile phone shops. The intensive distribution is effectively done by  Nokia corporation for balancing the customer demand for every Nokia mobile phone like before. So Nokia supplies E90 Communicator for every distributor, then the distributor can distribute this mobile phone to all of phone retailers in Indonesia and the same process is repeated in India, Pakistan, Middle East and Europe.   Service/Repair  Nokia corporation is a big company that cares with customers. It always wants to give the best and satisfying service to its customers. So, if customers get a difficulty in using their mobile phone or have a mechanical problem with their phone, Nokia provides some services center which will help customers to solve their problem. There are some official Nokia service center that can be visited by the customers, such as Nokia Priority, Nokia Hospitality, and Nokia Care. For information, Nokia service center is spread in every province in Indonesia and the rest of the global market. There is no fee for mobile phone repairing if the mobile phone still has official Nokia guarantee, except in exceptional condition, for example, the mobile phone is splashed by water or fall down. Common mobile phone stores also provide repairing service for Nokia mobile phone, but they usually take an expensive fee for phone repairing although the consumers still have an official guarantee.    Guarantee  Nokia corporation provides 1 year official guarantee for E90 communicator. This guarantee is valid if there is a factory damage and valid in all of Nokia official stores. But the guarantee does not valid for exceptional condition like the mobile phone is splashed by water or accidently fall down from your pocket.
Promotion In promoting E90 communicator, Nokia corporation uses some promotion tools.  Public Relations  Holding an event will be effective in promoting this high end phone. So, Nokia held an event to educate people in understanding functions and technology of E90 communicator. The event also included an auction for charity. With auction for charity, Nokia hoped every people will know and realize that Nokia is a corporation that cares with children in Indonesia and around the world.   Advertising  Nokia corporation made an advertisement that can make people pay attention and build interest to this product. Nokia used some mass media in promoting this smart phone. Newspaper was the main media in every communicator series promotion. The product was created for the professional business people, and as every people knows, generally, businessmen and businesswomen usually read newspaper in the morning. So, putting the advertisement in the newspaper was very effective to increase the sale amount of the product. The next mass media that was used by Nokia is television. Nowadays, most people like to watch television, they can spend several hours in watching television, including the business people. So, it was a good way to promote this product through the television. The last mass media was magazine. Most business women love reading magazine. Putting the advertisement in the magazine would make them pay attention to the product.  Other promotion tools  Beside Public Relations and Advertising, Nokia promote its product by using neon box, poster, billboard, brochure, and advertisement through the internet. Nokia also has official website that can be accessed by people if they want to search and get any information about Nokia corporation and its product. In Nokia official website, people can know the new Nokia’s products, the features of every Nokia mobile phone, or even compare each Nokia mobile phone to know which mobile phone that suitable for them. The website is www.Nokia.com.  Positioning By the price, promotion, and the overall outlook of Nokia E90 Communicator, people can see that this mobile phone is regarded by public as a premium, exclusive and smart mobile phone that can assist every professional business people in doing their work. This premium mobile phone is designed for businessmen and businesswomen who are active, productive, and have high mobility. Nokia E90 Communicator is a office mobile phone, with a stylish and sleek design.
Reminder Advertisement
Integration of Strategy (4Ps included)
Integration of Strategy (4Ps included)   Nokia E90 communicator is a technological wonder for business consumers like an office in your pocket but the saga of the E90 Communicator phone in the years to come. By any scale, the sudden demise of the "brick" is a strange story. Although the Communicator is a niche category in terms of volumes sold, it's an important one for the company and one that Nokia has nurtured, protected through patents, and made a great investment in for what really is an eternity in the mobile phone business.
nokia E90 communicator

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nokia E90 communicator

  • 1. MARKETING MANAGEMENT FINAL PROJECT NOKIA E 90 COMMUNICATOR AHMAD MUSTAKEEM NADEEM STUDENT # 1030220
  • 2. INTRODUCTION Nokia E90 CommunicatorIs a premium business device with high-speed mobile broadband and integrated mobile office that keeps you effective while on the move.  Features at a glance. The Nokia E90 Communicator features 3G, HSDPA and WLAN for true Broadband connections and global coverage using quad band GSM 850/900/1800/1900 and WCDMA 2100. A QWERTY keypad, active matrix color display with 800 x 352 pixels x 16M colors, and features you typically rely on your PC for, gives the Nokia E90 Communicator "all in one”, laptop, PDA and phone functionality to accomplish any business task. The Nokia E90 Communicator also includes a built-in GPS receiver that works as a stand-alone positioning device using GPS satellites. Use the Nokia E90 Communicator to navigate and find your location using the built-in maps. Browse the Internet and transfer media-rich files via HSDPA (up to 3.6 Mbit/s enabled) and 3G high-speed mobile broadband. Increase mobile productivity with applications for browsing and editing documents. Talk on every continent with quad-band GSM global roaming. Access voice and data functions quickly and easily with convenient shortcut keys. Be in the right place at the right time with versatile calendar functions and integrated GPS
  • 4. Strength Technology: The Nokia E90 Communicator is compatible with worldwide GSM frequencies which is convenient if you travel overseas frequently. Talk Time: A talk time of 348 minutes. It is very good Stand-by Time: A stand-by time of 336 hours. It is excellent Phone Book: It can store a variable number of phone book entries. This is generally the case of phones with a dynamic memory and it generally allows for a lot of phone numbers to be stored. (score: 20/20) Nokia Threat of entry from new players, Microsoft Siemens Network Memory Expansion Slot: It has a memory expansion slot MicroSD, a convenient way to store more music and pictures or transfer them from and to your laptop computer. Speakerphone: It has a speakerphone, which will prove useful in a car or in other situations. Streaming TV: Streaming Video or TV. Streaming TV, provided your carrier offers it, allows you to watch real live TV on your cell phone but can help kill time in queues, doctor waiting rooms or many other situations. Wireless Data System: Bluetooth-enabled, which is an interesting plus. Bluetooth is not really necessary but may be handy if you want to use a wireless headset or transfer data to or from your (Bluetooth-enabled) laptop, for instance. Camera: It has an advanced camera: 3.2 megapixel
  • 5. Weakness Weight: 7.40 ounces of the Nokia E90 Communicator is a lot of weight. Whether you carry it in your pants pocket or a purse, you could find it heavy. Third party applications incompatible with the built-in GPS Charges for navigation capabilities Multitasking still not perfect Inadequate battery life No small-size charger like in the N95 No camera lens cover Wired headset with a 2.5mm jack, no volume control on the remote No USB Mass Storage for the phone memory Price
  • 6. Opportunity Nokia E90 Communicator is a 3G smartphone made by Nokia and the latest model of the Communicator series. It was announced in February 2007 at the 3GSM show in Barcelona. The first Nokia E90 unit was sold in an auction in Jakarta, Indonesia on May 17, 2007 for Rp. 45,000,000 (5,000 US$). Indonesia being one of the largest market share for Nokia's communicator series is cited as a reason for the unit's first launch location. E90 starts the fifth generation of Nokia's communicators, and also introduces a new platform to Nokia's communicator line, Series 60 v3. Previous communicators have been based on either GeOS or Series 80 (old models are shown below). E90 is also the first Nokia communicator to have UMTS/HSDPA connectivity and integrated GPS. It features OSGi and eRCP, Eclipse RCP for embedded systems.
  • 7. Threats Rivalry is intense among existing players. The differentiation in terms of product features are getting diminished; however players are continuing to differentiate their products in terms of applications and services offered. Exit barriers have to be evaluated in correlation with value chain analysis. Exit barriers are low for manufacturers that occupy only part of the value chain against the manufacturer that occupy most of the value chain. Complements are critical for product differentiation and they have a very moderate bargaining power. The power of complementary products (Applications) will be further subsidized with increasing network externalities. We do not see complements gaining more power until all the mobile platforms converge under some common standards. Some complements include: Email Maps & GPS Applications Music & other media related applications which are already provided by the nokia E90 communicator as standard in its feature so it wont be long until other follow suit with all these feature.
  • 8. Goals A smartphone is a mobile phone offering advanced capabilities, often with PC-like functionality. There is no industry standard definition of a smartphone. For some, a smartphone is a phone that runs complete operating system software providing a standardized interface and platform for application developers. For others, a smartphone is simply a phone with advanced features like e-mail, Internet and e-book reader capabilities, and/or a built-in full keyboard or external USB keyboard and VGA connector. Nokia E90 communicator envisions a world where connecting people to what matters empowers them the most of every moment Nokia E90 is devices and a leader in converging Internet and communications industries. The nokia E90 device targets all major consumer segments and offer Internet services that enable consumers to experience a wide array of services. Smartphone segment is one of the rapidly growing segments in the mobile handset industry. Smartphones are penetrating into mobile handset market at a very fast rate capturing a larger pie of the overall mobile handset market and hence that segment is more lucrative. Though Nokia is a market leader in the entire mobile industry, its performance in smartphone market is abysmal in comparison with its competitors If Nokia and its competitors perform at the same rate it will take no more than couple of years for Nokia to lose its market leadership position.
  • 10. Justification Nokia Smartphone portfolio mix E 90 is shown by qwerty key on the graphs and it has gained most in the portfolio mix Nokia E90 Communicator, what more do you want? The PC in your hands!
  • 11. Marketing Strategy & Tactics Customer group The First Nokia E90 Communicator Sold The first unit of Nokia E90 Communicator sold in an auction in Jakarta, Indonesia. A businessman, Hartono Gunawan, won the auction by offering the amount of Rp 45,000,000 (US$5,000) and got "the first E90 sold in the world". Two executives of Nokia Finland, JouniPolonen, Product Program Manager Enterprise Solution and Mika Savolainen, Product Manager, Enterprise Solution, attended the-called Indonesia's Nokia Communicator Community Gathering in Ritz Carlton Hotel, Jakarta. More than 1,000 Communicator users attended the gathering.According to Nokia Indonesia general manager, Hasan Aula, the money got from the auction will donate as charity to UNICEF. Hasan said, in the recent decade, Nokia has always chosen Jakarta as the first city to launch each Communicator series globally. "E90 Communicator will also launch here next month for the first time," he told SlashPhone. The historical journey of the Nokia Communicator began in September 1996 with the launch of the first Nokia Communicator (the Nokia Communicator 9000) which had also resulted in the conception of a community of loyal Nokia Communicator users that are known today as the Communicator Community. Today, the Communicator Community boasts a membership of more than 30,000 and still continues to grow. Nokia Indonesia general manager Hasan Aula (left), Hartono Gunawan with his first E90 (center) and Ferry Salim (Indonesia's UNICEF Ambassador). Benefits sought by this customer group Nokia's Bulky Smart Phones Find Niche Following There As Business Status Symbol. JAKARTA, Indonesia Nokia Corp.'s Communicator smart phone better known as "the Brick" was launched in the West a decade ago. It never really took off. Its bulky design has made it look dated compared with a wave of newer, slimmer devices that allow users not only to make calls, but also to browse the Internet and send emails but in Jakarta, the Brick lives on. Here, its ungainly size and heft. It weighs in at a whopping half-pound and doesn't fit easily in a pocket have made it a must-have symbol of wealth and success among models, politicians and multimillionaire businessmen. It even has a fan club: The Nokia Communicator Community, a 30,000 strong gang of aficionados. Last year, Nokia sold a few hundred gold-plated Communicators at $2,500 each. Two years ago in Jakarta, a rush on stocks of the 9500, the old Communicator model, pushed retail prices 50% above the normal selling price of around $600.
  • 12. Marketing Strategy & Tactics Now, Nokia is hoping to improve the Communicator's global image and take on the BlackBerry in the U.S. and Europe with the E90, which is about half an ounce lighter and a little slimmer than its predecessors although still one of the heaviest smart phones on the market. BlackBerrys, by comparison, typically weigh less than a third of a pound. Just last week, Nokia attracted 1,000 people to the ballroom of the Ritz-Carlton hotel in downtown Jakarta for a presentation of the E90. At the event, an Indonesian businessman paid $5,100 at auction to become the first person in the world to buy one of the handsets. (Nokia plans to launch the phone globally in June for about $1,000.) Nokia argues the E90 has so many new features like fast Internet connectivity and a GPS navigational system that it should be compared to a laptop computer, not other smart phones. Nokia has opted not to tinker too much with the design: The keyboard and screen are still much larger than on other phones. The company has promised Indonesia will be one of the first markets to receive the product. The Communicator has also carved out a niche following in some other countries like India and the United Arab Emirates, for instance butIndonesia is the world's largest market for the device. It also has a big lead here over its new rival, Research In Motion Inc.'s BlackBerry. While BlackBerrys have been increasing in popularity in the U.S., Europe and parts of Asia for many years, they were only introduced in Indonesia in late 2004. Internal theme of the marketing strategy Industry analysts say Nokia's ability to sell more smart phones like the Communicator is crucial to maintaining profit margins, which are being squeezed by manufacturers such as Motorola Inc. and Samsung Co. Ltd. in the fierce competition to sell simpler, low-cost handsets in fast-growing emerging markets. Nokia, the world's largest cellphone manufacturer with a 36% market share, sold 347 million handsets last year. Only 40 million of those were smart phones. But in the first quarter, Nokia's sales of multimedia devices jumped 28% to $2.3 billion out of total net sales of $9.9 billion. Business phone sales, which include the Communicator, jumped 75% to $326 million a small, but fast-growing segment of Nokia's market. By contrast, sales of standard cellphones dropped 5% to $5.6 billion. Nokia, based in Espoo, Finland, has a head start in emerging markets like Indonesia. Operators such as RIM were slower to roll out their services because they "don't have the global scale and power of brand that Nokia has," says Eva Bakowicz, a telecommunications analyst with Global Insight, a market-data company based in Boston. RIM, which like Nokia doesn't break out individual country sales, is happy with its Indonesia business and is focusing on attracting high-value clients such as multinational companies, says spokeswoman Katie Lee. "Our target is a niche market," she says. Still, loyalty to Nokia has made Indonesia a tough market to crack. ShantiPoesposoetjipto, a prominent local businesswoman, has tried other smart phones for short spells, most recently the Dopod, powered by Microsoft Corp.'s Windows and made by Taiwan-based High Tech Computer Corp. But they all lacked one key ingredient: Nobody else seemed to be using them. "It's in to have a Communicator," she says.
  • 13. Marketing Strategy & Tactics Fans of Nokia's Communicator smart phone a status symbol in Indonesia hold the bulky devices in the air. Some users take pride in the smallest differences in their devices. AbdoelDjalal, a 75-year-old former lecturer who wears his phone in a pouch on his belt loop, is proud that his Communicator was assembled in Finland. It is no different from a China-manufactured model in terms of quality, but it's considered a status symbol nevertheless. "I'm incredibly loyal to this brand," he says. One factor fueling the rise of the Communicator: It has become a popular gift for Indonesians that want to win influence in the country's Parliament or with a business partners. Its price tag makes it a substantial enough gift, but not a wildly expensive one. "It's considered to be so prestigious, you give it to your most important business partner," says AnttiVasara, a Finland-based senior vice president in Nokia's enterprise-solutions group, which develops the Communicator. Some folks carry two models -- just because they can. "Other politicians have two, so I have to have two," says Zulkieflimansyah, a member of Parliament who alternates between his phones to answer calls and send messages. Nokia was initially surprised by the success of the Communicator in such an unlikely market. "'Wow, why is it selling there?' " was a common response from Nokia executives in Finland, says Mr. Vasara. The buzz around the Communicator is a great marketing tool in Indonesia, which has one of the lowest cellphone penetration rates in Asia. Less than 30% of Indonesia's 230 million citizens currently use cellphones, a much lower proportion than in Malaysia, at 80%, and the Philippines, 40%. Penetration rates have been low in Indonesia because of poverty and a slow introduction of cellphone services. Many people couldn't afford phones until recently; now that the economy is growing again, analysts say the rate should pick up quickly. But in Jakarta, some die-hard Communicator fans don't like attempts to modernize a tried-and-tested model. One problem: The E90's 3G network won't have the capability to send faxes. Although faxes aren't as popular as they once were in the developed world, they are important for doing business in many parts of Asia. Others complain that the trend to slim down the Communicator means a smaller keyboard and more difficulty typing.
  • 14. Product Company profile Nokia corporation is the biggest producer of telecommunication tools in the world and it is also known as the biggest company in Finland. This company is well known through its mobile phone products. Nokia corporation produces mobile phone for the whole market and the main protocol, including GSM, CDMA, and W-CDMA (UMTS). As mobile phone use booms, Nokia makes the sector its core business. By the turn of the century, the Nokia Corporation became the world leader. In 2000 until right now, Nokia sells its billionth mobile phone as the third generation of mobile technology emerges. Characteristics Nokia E90 communicator is the new generation of communicator series. This exclusive mobile phone provides 2 variant of colours to fulfil the customer demand, which is mocha and red. Mocha is specifically created for businessmen who want to look strong and masculine otherwise red is perfectly created for businesswomen who want to look feminine and elegant. Nokia corporation wants to make this premium mobile phone as a full mobile entertainment beside the office mobile phone. So, Nokia puts dual amazing cameras to this phone. In platform and operating system, Nokia uses S60 third edition and OS Symbian verse 9.2. So, this exclusive mobile phone is user friendly and easy to use. If you like travelling, this smart phone can accompany you travel around the world because it can operate in quad band (850/900/1800/1900 MHz) and the important thing, this new generation of communicator series can operate in UMTS or popular with name “3G. There are a lot of benefits that you can get if you buy this quad band phone. The benefits of Nokia E90 Communicator are you can browse the internet and transfer media files quickly via HSDPA (up to 3.6 megabyte). You can also increase your productivity with mobile Microsoft Office application to see and edit Microsoft Words documents, Microsoft excel documents, and Power Point presentation. So, you can take your office wherever you go. Talking in every continent with GSM quad band and selection among band automatically. Access voice and data quickly and easily with convenient shortcut keys that you can personalize by your own. Also, searching locate meeting venue, restaurants, banks, hospitals and interest places with integrated GPS (Global Positioning System). Beside that, you can share your favorite images with 3.2 megapixels camera (2048 x 1536 pixel), completed with flash and autofocus mode.
  • 15.
  • 16. Price Price of The Product The biggest communicator users in the world is Indonesian people. So, in the first launching, 13 June 2007, Nokia corporation set price of E90 communicator at Rp10.900.000,00 for only 2000 first mobile phone units. But in the mobile phone market, most phone retailers increased the price of this phone from the Nokia standard price to Rp15.000.000,00. Then in the next 2 month, the price of this product decreased up to Rp2.000.000,00. This condition occurred because there was a Black Market (BM) mobile phone that came from Singapore. In Singapore, the price of Nokia E90 Communicator was cheaper than in Indonesia.  Value factors Nokia E90 Communicator is perfectly designed for premium class, such as professional businessmen or businesswomen who need computer, multimedia, and entertainment in one device. The person who uses this mobile phone usually comes from high social and economy class. It means, Nokia E90 Communicator can represent their status as a professional and active business people in their society. This mobile phone is an user friendly product that easy to use. Nokia E90 Communicator provides a complete facilities for professional people who are active and have high mobility because this phone has quick office application to see and edit documents, such as Microsoft word documents, Microsoft excel, Power Point presentation and Adobe Reader. It is also easy if you want to install application to personalize or even maximize the function of this mobile phone. Nokia corporation has so many service centers which will help consumers when they have a problem or get difficulty in using this premium phone. Nokia E90 Communicator is a suitable mobile phone to accompany every professional business people in several years toward before the next generation of communicator series releases. It is a long life high technology mobile phone that will not out of fashion. It is not a big surprise if this mobile phone has a high price. The generations before are also has a high price but high price equals with the value that will be got by the customers if they buy this mobile phone because Nokia E90 communicator is a high value phone that will not disappoint them. This phone can increase mobility and productivity.  Pricing Strategies In Indonesia, there are a lot of people who are interested in Nokia E90 Communicator. So, Nokia corporation used this opportunity to set high price to this premium mobile phone. In first launching of the product, Nokia sold E90 communicator to people who can buy this phone with the highest price. This event is held on 16 May 2007, at Ritz Carlton Hotel, Jakarta. It is sold to a professional businessman named Hartono Gunawan, and made Hartono Gunawan as the first person who has Nokia E90 Communicator. He bought this mobile phone in Rp.45.000.000,00 ($5100) and its profit was donated to UNICEF.  Price Negotiation There is always a special offer that is offered by Nokia in promoting each of its mobile phone. For E90 Communicator, Nokia offers to customer to buy this phone in two common ways, by cash or 12 months credit. For the owners of Visa Card, Nokia gives special offer if customers buy Nokia E90 Communicator in 12 months credit. Customers do not need to pay the 3% for the interest. This special offer only valid if customers buy this premium mobile phone in Nokia official store.
  • 17. Price
  • 18. Place Form of Distribution Nokia E90 Communicator is distributed intensively to every province in Indonesia. The official distributor of Nokia mobile phone in Indonesia is Parastar and Bimasakti. So it is not difficult for customers if they want to get this exclusive mobile phone. Every Nokia mobile phone customers in Indonesia can buy this next generation of communicator series in every mobile phone store, started from the Nokia official store (eg. Nokia Priority, Oke Shop, and Global Teleshop) until common mobile phone shops. The intensive distribution is effectively done by Nokia corporation for balancing the customer demand for every Nokia mobile phone like before. So Nokia supplies E90 Communicator for every distributor, then the distributor can distribute this mobile phone to all of phone retailers in Indonesia and the same process is repeated in India, Pakistan, Middle East and Europe.   Service/Repair Nokia corporation is a big company that cares with customers. It always wants to give the best and satisfying service to its customers. So, if customers get a difficulty in using their mobile phone or have a mechanical problem with their phone, Nokia provides some services center which will help customers to solve their problem. There are some official Nokia service center that can be visited by the customers, such as Nokia Priority, Nokia Hospitality, and Nokia Care. For information, Nokia service center is spread in every province in Indonesia and the rest of the global market. There is no fee for mobile phone repairing if the mobile phone still has official Nokia guarantee, except in exceptional condition, for example, the mobile phone is splashed by water or fall down. Common mobile phone stores also provide repairing service for Nokia mobile phone, but they usually take an expensive fee for phone repairing although the consumers still have an official guarantee.   Guarantee Nokia corporation provides 1 year official guarantee for E90 communicator. This guarantee is valid if there is a factory damage and valid in all of Nokia official stores. But the guarantee does not valid for exceptional condition like the mobile phone is splashed by water or accidently fall down from your pocket.
  • 19. Promotion In promoting E90 communicator, Nokia corporation uses some promotion tools.  Public Relations Holding an event will be effective in promoting this high end phone. So, Nokia held an event to educate people in understanding functions and technology of E90 communicator. The event also included an auction for charity. With auction for charity, Nokia hoped every people will know and realize that Nokia is a corporation that cares with children in Indonesia and around the world.  Advertising Nokia corporation made an advertisement that can make people pay attention and build interest to this product. Nokia used some mass media in promoting this smart phone. Newspaper was the main media in every communicator series promotion. The product was created for the professional business people, and as every people knows, generally, businessmen and businesswomen usually read newspaper in the morning. So, putting the advertisement in the newspaper was very effective to increase the sale amount of the product. The next mass media that was used by Nokia is television. Nowadays, most people like to watch television, they can spend several hours in watching television, including the business people. So, it was a good way to promote this product through the television. The last mass media was magazine. Most business women love reading magazine. Putting the advertisement in the magazine would make them pay attention to the product. Other promotion tools Beside Public Relations and Advertising, Nokia promote its product by using neon box, poster, billboard, brochure, and advertisement through the internet. Nokia also has official website that can be accessed by people if they want to search and get any information about Nokia corporation and its product. In Nokia official website, people can know the new Nokia’s products, the features of every Nokia mobile phone, or even compare each Nokia mobile phone to know which mobile phone that suitable for them. The website is www.Nokia.com.  Positioning By the price, promotion, and the overall outlook of Nokia E90 Communicator, people can see that this mobile phone is regarded by public as a premium, exclusive and smart mobile phone that can assist every professional business people in doing their work. This premium mobile phone is designed for businessmen and businesswomen who are active, productive, and have high mobility. Nokia E90 Communicator is a office mobile phone, with a stylish and sleek design.
  • 21. Integration of Strategy (4Ps included)
  • 22. Integration of Strategy (4Ps included)   Nokia E90 communicator is a technological wonder for business consumers like an office in your pocket but the saga of the E90 Communicator phone in the years to come. By any scale, the sudden demise of the "brick" is a strange story. Although the Communicator is a niche category in terms of volumes sold, it's an important one for the company and one that Nokia has nurtured, protected through patents, and made a great investment in for what really is an eternity in the mobile phone business.

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