...Problem: Vertu is a luxury mobile phone brand operated by Nokia.Vertu is expanding its business into Asia. The CEO is considering how he might use his company’s product and promotion strategy to increase Vertu’s business in the Asian market, particularly China, Hong Kong, and Taiwan. He is considering two options: 1) Leverage the company’s existing marketing strategy to further penetrate the Asian market, or 2) adapt the company’s marketing strategy to better accommodate the cultural differences between Western markets and Asian markets. II. SWOT Analysis Strength: - Vertu concierge services and other Value added services like vertu.me, Vertu Fortress, the Vertu City Brief applications etc. which also accommodate Asian languages to cater to the Asian customers. - Vertu being associated with Nokia which has a strong market presence in the Asian market. - Unique design and handmade craft phones. Weakness: - High production costs. - High cost of value added services. Opportunities: - Asian countries like China and Japan are ranked in the top 5 for the number of HNWI which means that Vertu can have a significant amount of profit if it extends its business to Asia. - Vertu will not be affected by the state of the economy since its target customers are the urban rich. Threats: - Introduction of other luxury mobile phones by new companies like Mobiado. - Market of counterfeit mobile phones increased majorly by 2005 especially in Asian market. - Services similar to...
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...VERTU: NOKIA’S LUXURY MOBILE PHONE FOR THE URBAN RICH Submitted by: Pathikrit Guha UID: 113850578 ENTS632 SEC: 0101 Submitted on: 10/04/2015 HONOR PLEDGE: "I pledge on my honor that I have not given or received any unauthorized assistance on this assignment / examination.” Signature: Pathikrit Guha Date: 10/04/2015 I. Statement of Problem: Vertu is expanding its business in Asia. How to utilize Vertu’s product and promotion strategy to increase its business in the Asian market especially China, Honk Kong and Taiwan is what it’s new CEO Stephen Elop has to decide. Options available to him include either a) capitalize on the existing marketing strategy to further its growth in the Asian market or b) adopt changes to its existing marketing strategy in order to better accommodate cultural differences between Western and Asian markets. II. Summary of the SWOT: Strengths: As a pioneer in the luxury phone business Vertu catered to a niche market creating a demand for its exclusive products. Characterized by its superior craftsmanship, beautiful customizations, Vertu products offered a unique experience in terms of design, performance and service. Value added services like Vertu client suites and Concierge service further added to the overall value of their products. Moreover their promotion and distribution strategy which included famous personalities to promote the brand, exclusive product launches and flagship boutiques hit the right chords...
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...and retail: Asia, Europe, Americas, Japan and Retail. PORTER’S FIVE FORCES Porter’s Five (some may argue 6+) model is an analysis tool that helps “determine industry profitability because they influence the price, cost and required investment of firms in an industry” (M. Porter). Rothaermal further argues that the model reflects the industry’s attractiveness. First image below shows the traditional Porter’s model with the 5 forces, where the image on the latter shows additional factors that may affect the firm’s profitability and attractiveness. Exhibit 1.1 Porter’s Original Five Forces Model (Strategic Management Insight) Exhibit 1.2 Porter’s “Five” Forces Model (Lecture 2, R. Herko) The following analysis is for the Asian region, including: China, Hong Kong, Taiwan, Singapore, Korea, New Zealand and Australia....
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... B) Training focused on the importance of building a relationship. C) Brothers were encouraged to attend some events. D) Las Posadas, a Hispanic Christmas tradition that pays homage to Mary and Joseph's search for an inn, is being conducted by Girl Scout troops in some areas. E) all of the above Answer: E Page: 157 Difficulty: easy 2. A segment of a larger culture whose members share distinguishing values and patterns of behavior is known as a(n) _____. A) market segment B) subculture C) ethnic group D) reference group E) subgroup Answer: B Page: 158 Difficulty: moderate 3. Many companies develop special marketing mixes for a segment of a larger culture whose members share distinguishing values and patterns of behavior. These segments are known as _____. A) subsegments B) subgroups C) secondary markets D) subcultures E) reference groups Answer: D Page: 158 Difficulty: moderate 4. The degree to which an individual behaves in a manner unique to a subculture depends on _____. A) the extent to which the individual identifies with that subculture B) how long the individual has been in this country C) the age of the individual D) the education of the individual E) the extent to which others in that subculture accept that individual ...
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...Introduction In this paper, the reader will be provided an overview of the size, location, purchasing power, and market potential for the three largest minority target markets in the country - Hispanic Americans, African Americans, and Asian Americans. AFRICAN AMERICAN Total Numbers in the US In 2013, the US Census Bureau estimated 45,003,665 African Americans in the United States (BlackDemographics.com). Percent of the Total US Population At an estimated census of 45,003,665, the African American census in regards to total percentage is 14.1% (BlackDemographics.com). Rate of Growth The African American population is expected to increase from 41.2 million in 2012 to 61.8 million in 2060. Its share of the total population would rise slightly, from 13.1 percent in 2012 to 14.7 percent in 2060 (United States Census Bureau). Average Household Size According to the 2010 census, there are 14.1 million African American households. The average household size among African Americans was 2.74, according to the 2000 census, compared with 2.63 in the 2010 census. (Franese) Average Age The average age for African Americans is 32.1 with more than 47% under the age of 35 (Nielsen). Percent with College Degrees In 2013, 83.7% of African Americans 25 and over had a high school diploma or higher, 1.7 million African Americans 25 and over had an advanced degree, and 3 million were enrolled in undergraduate college compared with 2.6 million in 2008, a 17.5% increase...
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...Strengths * Is a major player in the mobile market through its majority possession of Symbian shares? * Nokia has cost advantages compared to other mobile phone companies * The Brand status of Nokia is probably one of the top brands globally (Kwong & Wong, 2011). Weaknesses * The N-Gage is seen as a flop * Being the market principal and its high role in Symbian is giving the company a bad picture, just like Microsoft in the PC sector. * The brand is slow in adopting new ways of thinking. For example in clamshell phones which are favored by many customers. * Leverage its communications to get favor and a stronger status with carriers (Kwong & Wong, 2011). Opportunities * enhance their presence in CDMA industry, which they are * New developing markets where product adoption still has space to go, like India and other countries. * Use its infrastructure strategy to get first choice and a stronger status with carrier (Kwong & Wong, 2011). Threats * Delay in the game in 3G causes a risk to be surpassed by leaders such as Motorola, LG, NEC and others and Asian OEMs who are coming into the market aggressively (Kwong & Wong, 2011). Reference Kwong, K., & Wong, K. (2011). Vertu: Nokia’s luxury mobile phone for the urban rich. Watertown, MA: Harvard Business Publishing. Appendix I SWOT Quadrant Strengths * Is a major player in the mobile market through its majority possession of Symbian...
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...Introduction Nokia is the largest mobile phone company in the world, selling just over 450 million phones in 2010 – which translates to over 22% of the market (Gartner, 2011), but its long-term dominance is now being challenged more than ever (Global Information, 2011). The once seemingly infallible company that innovated to shape much of the modern mobile phone market has been caught off guard in recent years as the competitive landscape evolved and accelerated from being product driven to ecosystem led (SEC, 2011). This change, coupled with inability to quickly launch a credible response to innovative North American rivals such as Apple and Research in Motion (RIM) who have stolen the lead in high-end smart phones has caused Nokia to lose ground and market share. Low cost Asian rivals are also threatening Nokia’s grip on the mass markets (Thomson Reuters, 2011). Revenues have been declining, market share dominance waning and average sales prices tumbling (Financial Times, 2011). All of these factors have been pivotal in forcing Nokia to re-evaluate and focus its corporate strategy, vision and core values. Nokia has not been slow in recognizing the need to re-think and reformulate their strategy; based around three pillars; regaining leadership in the smart phone market, reinforcing their leadership position in mobile phones and investing in future disruptions (SEC, 2011). Execution has been somewhat lackluster (LXNews, 2011). In February 2011 Nokia formed a partnership with...
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...elements of a successful global player. First, it is in a promising market. The wireless phone market is growing rapidly and industry forecasts predict more than half the world’s population will own a cellular phone by the year 2003, a much higher penetration rate than computers. Furthermore, based in Japan, DoCoMo has the advantage over American and European counterparts, like AT&T, Sprint and Vodafone AirTouch, of being closer to the 3.3 billion person Asian market. In addition, DoCoMo is at the leading edge of technology and is expected to be the first mobile operator to launch a 3rd Generation (3G) wireless network by Spring 2001. NTT DoCoMo Background In 1959 Nippon Telegraph and Telephone (NTT) entered the telephone industry in Japan with an offering of maritime telephone service. They added paging services in 1968, car telephone services in 1986, and in-flight public telephone service in 1987. In 1991 NTT established a separate company to provide wireless communication offerings, NTT Mobile Communications Network, Inc. This new company was then spun off by NTT in 1992, ultimately resulting in one of the biggest initial public offerings for the time in 1998, and is now 67.1% owned by NTT with the balance of shares owned by public investors. By 1993 mobile subscribers surpassed the 5 million mark, and consumer growth has been dramatic with more than 20 million subscribers as of 1998. NTT Mobile Communications Network, Inc. officially changed their name to NTT DoCoMo...
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...emerging trend of mobile computing a decade later, HTC should introduce “me-too products” and join the tablet PC bandwagon. My research shows that HTC is likely to remain the major player in smartphone and tablet PC manufacturing if it follow suit. First, tablet PC category is fairly new, HTC does not necessarily need to sustain this “no-me-too” rule as long as its product concepts are no less innovative than the current offerings by competitors. Second, the 3G smartphone market is far from saturated. With HTC’s brand and R&D ability, HTC can vastly improve its market share. Third, Good artists borrow great artists steal--Pablo Picasso To implement and maximize the Me-Too Products strategy, my recommendations are as following: 1. Ensure the originality and creativity of “Me-to Products” • “Learn” from Samsung and “Steal” from Apple • Not necessarily price war involved, stay cool and stay stylish • Disruptive innovation—develop “Textbook” for students and “Solus” for the senior citizens. • Stick to Google Android system 2. Remain the pioneer of mobile computing a decade later • Keep the R&D intensity over 8 • Cooperate with both Google and Microsoft to develop products with Android and Windows systems at a ration of 2:1. 3. Transit from 3G to 4G • Develop the under-developed market, China and India, • Co-brand with China Mobile with a current 500 million subscribers • Emphasize “Quietly Brilliant” in East Asian countries...
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...elements of a successful global player. First, it is in a promising market. The wireless phone market is growing rapidly and industry forecasts predict more than half the world’s population will own a cellular phone by the year 2003, a much higher penetration rate than computers. Furthermore, based in Japan, DoCoMo has the advantage over American and European counterparts, like AT&T, Sprint and Vodafone AirTouch, of being closer to the 3.3 billion person Asian market. In addition, DoCoMo is at the leading edge of technology and is expected to be the first mobile operator to launch a 3rd Generation (3G) wireless network by Spring 2001. NTT DoCoMo Background In 1959 Nippon Telegraph and Telephone (NTT) entered the telephone industry in Japan with an offering of maritime telephone service. They added paging services in 1968, car telephone services in 1986, and in-flight public telephone service in 1987. In 1991 NTT established a separate company to provide wireless communication offerings, NTT Mobile Communications Network, Inc. This new company was then spun off by NTT in 1992, ultimately resulting in one of the biggest initial public offerings for the time in 1998, and is now 67.1% owned by NTT with the balance of shares owned by public investors. By 1993 mobile subscribers surpassed the 5 million mark, and consumer growth has been dramatic with more than 20 million subscribers as of 1998. NTT Mobile Communications Network, Inc. officially changed their name to NTT...
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...elements of a successful global player. First, it is in a promising market. The wireless phone market is growing rapidly and industry forecasts predict more than half the world’s population will own a cellular phone by the year 2003, a much higher penetration rate than computers. Furthermore, based in Japan, DoCoMo has the advantage over American and European counterparts, like AT&T, Sprint and Vodafone AirTouch, of being closer to the 3.3 billion person Asian market. In addition, DoCoMo is at the leading edge of technology and is expected to be the first mobile operator to launch a 3rd Generation (3G) wireless network by Spring 2001. NTT DoCoMo Background In 1959 Nippon Telegraph and Telephone (NTT) entered the telephone industry in Japan with an offering of maritime telephone service. They added paging services in 1968, car telephone services in 1986, and in-flight public telephone service in 1987. In 1991 NTT established a separate company to provide wireless communication offerings, NTT Mobile Communications Network, Inc. This new company was then spun off by NTT in 1992, ultimately resulting in one of the biggest initial public offerings for the time in 1998, and is now 67.1% owned by NTT with the balance of shares owned by public investors. By 1993 mobile subscribers surpassed the 5 million mark, and consumer growth has been dramatic with more than 20 million subscribers as of 1998. NTT Mobile Communications Network, Inc. officially changed their name to NTT...
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...Apple always on their feet striving to develop newer products to compete in the fast competition. Apple having launched their product in Europe saw that the mobile phone industry in Europe was much more advanced than the U.S. People in Europe want their phones to do much more than just make calls and iPhone only capable of running on GSM technology lacked the potential to dominate and further acquire the market share. Thus Apple came up with the newer model of its product, iPhone 3GS to meet the needs of the consumers and stats show that the move helped Apple maintain its growing user base. In the future too Apple needs to lay a lot of focus on working on it's tradition of bringing out something new. Another challenge that Apple faces is the grey market that appears in iPhone, although it has been a successful product still people not having been able to switch to its high cost have the phone unlocked on to the other networks which costs apple. The contract between Apple and the network providers says that network providers will only pay Apple if the phone remains on the same network thus it loses Apple a lot of money. What Apple needs to do now is to develop network locks and codes that don't let people unlock the phone so as to keeping Apple's profits promise. Second, a huge set back Apple has had to face in the Asian world and is getting stronger by the day is the presence and dominance of the fake counterparts of Apple's products. Apple will have to put up with the fact...
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...The Three Largest Minority Target Markets: Hispanic, African and Asian Americans I. Hispanic Americans Population A. Total amount in the U.S.: There is 53 million Hispanic Americans living throughout the U.S. B. Percentage of total U.S. population: The Hispanic population contributes to 17% of the overall U.S. population C. Rate of growth: The growth rate of Hispanic Americans is 2.2%. D. Average household size: The average household size of Hispanics consists of 3.53. E. Average Age: 36.8 (Marketing Chart Staff) F. Percentage with college degrees: There are nearly 13.2% of Hispanic Americans with college degrees. G. Average/Median income level: $38,624 H. Geographic location: California, Florida, and Texas I. Most popular brands that are purchased: “Android, Apple and Blackberry” (Top 10 Hispanics & Mobile Facts – Infographic & Study) J. Specific products that are purchased the most: Mobile devices and tablets 1.) “56% Hispanics vs. 33% Non-Hispanics – shop mobile with a phone” (Glenn Llopis) 2.) “43% Hispanics vs. 25% Non-Hispanics – shop with a tablet” (Glenn Llopis) K. Best media method to use: Advertising through radio, billboards and infomercials that are translated and related to the Hispanic population. II. African Americans Population A. Total amount in the U.S.: The second largest minority group is African Americans; there are nearly 43.9 million individuals. B. Percentage of total U.S. population: African Americans compose 18.4% of the entire...
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...and your own economic knowledge, evaluate the economic case for and against governments attempting to influence how mobile phones are manufactured and used. (25) The government should intervene in the mobile phone market to correct market failure due to the presence of negative externalities. Negative externalities are detrimental third-party effects caused by the production and/or consumption of a good. A public good is a good provided free of charge to the consumer, by the government. A public good is non-excludable and non-rivalrous. A merit good is a good that gives positive externalities upon production and/or consumption. A merit good is non-excludable, yet rivalrous. The negative externalities of mobile phone production stem from the production and consumption of the service broadcasting masts provide. The demand for broadcasting masts is derived from the demand for mobile phones. Broadcasting masts are said to cause negative externalities in the form of health-issues, such as cancer (Extract F, line 7). Negative health effects are a drain on government resources as healthcare is provided as a public good by the government, in the form of the NHS. An increase in cases of ill-health will cause an increase in the demand for the NHS, costing the government and tax payers money which is finite and must be put to its best use. As the demand for mobile phones is highly inelastic (Extract E, Line 9), the demand for broadcasting masts is unlikely to decrease if the government...
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...Minority Research Paper Sharonica White September 8, 2013 MKTG 310 Introduction African, Asian and Hispanic American are the minority target markets in the country. All three of these target market has the own size, location, purchasing power and market potential. This report will evaluate and summarize each target market. 1 AFRICAN AMERICAN Total numbers in the U.S. 44,456,009 (http://www.reachingblackconsumers.com/2012/06/black-households-and-the-opportunities-they-present/) Percent of the total U. S. population 14.1% (www.blackdemographice.com) Rate of growth 9.7% (www.blackdemographice.com) Average household size 2.7 (http://www.reachingblackconsumers.com/2012/06/black-households-and-the-opportunities-they-present/) Average age 30(www.allied-media.com/Publications/african_american_publications_.htm) % with college degrees 18% (http://www.networksolutions.com/smallbusiness/2013/03/target-market-how-to-reach-african-american-consumers/) Average or median income levels $33,460 (http://www.networksolutions.com/smallbusiness/2013/03/target-market-how-to-reach-african-american-consumers/) Geographic location(s) – metro, states, etc. New York City, Los Angeles, Chicago, Philadelphia, Memphis, Detroit and Houston (http://www.networksolutions.com/smallbusiness/2013/03/target-market-how-to-reach-african-american-consumers/) Brands that have higher than average purchase for each group UPS, Tide detergent, Oreo cookies, Ragu...
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