The tech world is talking, but not excitedly, about the tough call Nokia has made to re-enter the smart phone market. A Nokia phone is an iconic leader in unbreakable products and the one item that the older generation of mobile phone users swear by.
We are talking about a brand whose company once had a market cap equal to a fifth of Finland’s GDP and topped the market’s bestselling model for 10 straight years, right up until when the iPhone was released. (The Telegraph, [Titcomb] May 2016).
In the meantime, the Nokia brand was acquired by Microsoft and has not existed due to non-compete requirements of the acquisition. A license agreement has been reached with a Finnish start up (HMD) led by former Nokians (or maybe tragics). “HMD has now purchased the rights to use the Nokia Trademark on feature phones until 2024…” (The Telegraph [Williams] May 2016).
The technology sector has looked on disbelief at the meteoric fall of the Nokia brand. Was the market dominance more of a case of good luck than good management?
Which metrics would the new licensees turn the clock back on when releasing the new products to the market? Will the metrics used by Samsung and Apple to take over Nokia’s market share, then dominate it, be the lesson learnt that propels Nokia back to number one?
Customer Profile and Memory Metrics
A consumer’s market research will uncover some extraordinary reading like this hot article from Rich Woods. Nokia would need to now benefit from the big data to see who is reading with interest on Nokia’s triumphant return. It may reveal what profound impact the brand had on consumers and measure the memory metric of Brand Awareness, Brand Image, Attitude, Customer Satisfaction. Remember their dominance was a generation of buyers ago.
Financial and Behavioural Metrics
Knowing that the leaders of ex-Nokia fame will supposedly have a good understanding of the winning financial formula in production at the top, it will be task in itself to understand what it will take to maintain the customer for a greater lifecycle. What will be apparent are behavioural patterns to get an understanding of what the market has been like without one of its major players for the last 8-9 years.
Physical Availability Metrics
It could be suggested that with a once loyal consumer base would exist a once loyal distributor base. If marketed correctly Nokia’s targeting and positioning will benefit from the existence of known agencies that have grown with the technology and leverage of their success in moving the top brands to the consumer.
Just a thought
The metrics must have been difficult to gauge when Nokia was top of the game by the very top player itself? There is a lot to know about technology, and from the naked eye, it is hard to keep up.
Other big names have not been able to trade on the back of their legacies but can the once biggest name of them all be able to use the numbers to their advantage.
Has the downfall been a deliberate marketing strategy?
Now with the benefit more data than we could ever imagined was available to us, a respected name like Nokia can re-enter this innovative but ruthless marketplace. The telling feature will be the tactical plan or the actions that the firm will define to meet the strategic goals. The actions must be measurable and not vague. “You can’t manage what you can’t measure” (James, Inc. 2013)
Geoffrey James also Wrote “A strategic goal should be achievable through the tactics that support it, rather than dependent upon uncontrollable outside forces” Does Nokia have the answer this time?
The old school wishes you well.
Matthew Copeland Student ID 214225603
Nunan, D. and Di Domenico (2013) Market research and the ethics of big data International Journal of Market Research, 55 (4), 2-13.