Case in Marketing Strategy- Nokia to change marketing strategy, to launch cheaper handsets


Nokia is in a Catch 22 situation wherein it is struggling to catch up with Apple and Samsung in the smartphone market and as well as defend its market share in the cheaper handset category. The company is said to change gear in the days to come by changing its marketing strategy by focusing on introducing cheaper handsets and thereby regain domination in that segment. According to sources, Nokia is going to shift its focus from its turnaround strategy and introduce more basic phones to take on Huawei and ZTE in the global market. Nokia would be launching a lower price model of its Lumia series smartphones as well.

Nokia which has its bulk of sales coming from the low end market has been struggling in the recent years as sales of basic phones has fell over 20 per cent in 2012. Smartphones market has seen saturation in the U.S. and Europe market as customers are just upgrading or changing their broken phones so it is just not a growth market for Nokia.

According to experts, Nokia should try to defend its market share by concentrating more on the low end phones where it gets it volumes from, continue to come out with smartphones. Offering a lower priced Lumia is another strategy which will boost up its mid-tier offering especially in the developing markets where there is tremendous demand for such type of phones for social networking needs. Nokia will have to get its act right in coming months especially because of its falling cash position and decreasing sales and it is a never like before situation for the company.



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