In order to define the objectives and sales strategies for two main channels, it is necessary to understand the objectives of Nokia Viet Nam:
1. Mission and Objectives of Nokia Viet Nam in year 2007:
• Mission: In a world where everyone can be connected, Nokia take a very human approach to technology “ Lead in Mobility”
• Objective: Viet Nam will consume nearly 4.7million mobile phones this year, and roughly 6.3 million units next year (noted as a source local newspaper Investment Wednesday quoted estimation of a market research firm as saying). Moreover, Viet Nam is expected to have 36 million mobile phone subscribers by 2010, up from some 16 million currently, according to the state- owned Viet Nam Posts and Telecommunication Group and the country with a population of 83.1 million has set targets of having 32-42 fixed and mobile phones, 10 personal computers, and 8-12 Internet subscribers for every 100 residents by 2010. Capturing with the great opportunities, Nokia set the objective:
Achieve Market Share 60% in next 3 years ( 2007 – 2009 )
• Key challenges & Key Success Factors:
o The competitors (Motorola, Samsung) are very strong in new product launch with price range $50/unit and Chinese brands are coming at 50%
price cheaper with the same specifications. Moreover, the potentiality of Nokia in next few years the “low” products estimate sales growth from 53% to 65%, whereas Mid range down from 39% to 30% and high range
down from 8% to 5%. It leads Nokia to focus “LOW” products, especially Mobile marts is the MAIN channel to sell a lot of “LOW” products.
Based on the analysis of sales evolution (please see appendix page 31)
o In order to increase sales volume, all competitors are focusing to run promotions to Mobile mart stores aggressively. The pricing war is happening everyday and consumers try to get the mobile devices with a cheapest price. So, it affects the margin of mobile marts especially Nokia and foresee the harder of competition and there are more players in the mobile phone market.
o The number of mobile phones has definitely increased and it has required the better AFTER SALES SERVICE, called “ Nokia Care” so Nokia care centers are required more professional and satisfy with consumers’ needs. Actually, the half of NS is installed Nokia care center together so How many Nokia care centers will open in all Nokia Store and what the budget is and what plan for Mobile marts?
o With the current status, the training only supported to channels through FPT and this has not delivered good results. Nokia Academy provides trainers and focus to train in two main channels (MM&NS).
o The service of distributors is key link between Nokia with retailers but distributors still have not performed well in delivery and service so it is important to set KPIs to distributors in term of inventory, orders, time delivery, credit, price protection.
There are more key challenges when the quantitative research run by advised following the theory of Marketing Research, it is very crucial to understand the attitude and the behavior of consumers to NS and MM and TCO before
proposing the marketing plan for two main channels. ( please see the appendix page 32-35)
o End users are aware of NS where they can experience Nokia live demo before deciding to buy Nokia or other brands. It showed that Nokia Stores have achieved by providing the best service to end users and push them to decide to buy Nokia NOT other brands even they will go to buy Nokia anywhere in the market.
o End users are satisfied the service in Nokia stores such as live demo, demonstration people, load music, testing phones, good merchandising,
…However, TCO from NS and other channels is not much different so consumers like to buy Nokia phone in MM where have the cheapest price.
o Most of end users come to Nokia stores to buy High and Middle end.
They are rich, achieved, own car, Intellectual. As for mobile marts, mostly low end and mid products are sold a lot.
o Especially, end user price in MM is so cheap and lower than 3% - 7%
comparing in NS, even 10% in some products. So, NS will gradually loose the customers and become showrooms. The owners will loose the profit and will close the stores.
Detailed to Channel after understanding clearly the objectives and strategic focus areas so please see below the objective and strategies for NS and MM:
2. Objectives and Strategies for Key Retail Channels
Based on the Key Success Factors and the result of the research, following with the objective of Nokia Viet Nam 2007 it is clear for sales objectives and strategies of Nokia channels ( NS & MM ) as follows:
It has emphasized that there are two program to run for NS and MM:
o Nokia Club Program: to keep the loyal customers in Nokia stores o Key Account Partnership: to make relationship with MM’s management
• Sales Strategies are proposed:
Following with the promising objective, the strategic focus areas to develop channels are proposed:
o Focus product range: To focus entry range (low range – category Connect) by joining marketing funds programs with Operators such as consumer promotion offering simcard free, premium gift, fee free,…
Nokia Stores: Build up the benchmark Nokia standard of service, Look & Feel and delivery TCO experience to consumers
Mobile marts: Achieve market share 60%
• Maintain “NS of the month” program – set KPIs by quarterly review
• Monthly promotion
• Build image of Nokia store by creating logo Nokia
• Road show
• Mini launch
• Hero corner, Nseries
Focus Area #3 Nokia Store
Club
• Membership card to customers who buy phone in NS
• Forum for member
• Monthly meeting
• Activities: provide free training to optimize the benefit from phone
• Discount for member in some life activities:
sport, shopping…
• Training plan from Nokia Academy
• Refreshing training monthly and ad-hoc to support new staff and improve selling skills to push sales out
• Nokia care set up in all NS
Focus Area #2 Improve Look &
Feel andService to achieve score 95 in all NSs Focus Area #1
Nokia Academy
& Nokia Care
Focus Area#4 Key Account
Partnership Program
• Select top 5 chain
• Sales Plan
• RPP
• Nokia Care
• Nokia Academy
• Agree in the meeting
• Monitor/Measu re KPIs
o Build branding: invest BTL budget in Nokia stores and Mobile-marts about furniture, equipments, live demo, signage, …
o Maintain NS: run Nokia Club program to keep the loyal of customers o Volume driven: focus BTL budget to Mobile marts channel that drive volume increasing and market share 60% such as apply Key Account Partnership program, run in-store promotions, road-show …
o Nokia Care: expand more Nokia care centers in all Nokia stores and collecting points in Mobile marts
o In store program: expand live demo via TPO corner at the Nokia stores and Mobile marts to promote new products ( Explore and Live )
o Nokia Academy: training plan is to run 100% of all NS and all MM.
3. Key Activities for two main channels
• Nokia Club program:
• Objective: to recruit and retain 500 customers to join Nokia Club in year 2007. Execute successful and monitor the improvement of program with aggressing activities.
• People
Nokia club strongly require the support by functional department: ASM (after sales market- Nokia care), Nokia Academy (training), Marketing, Sales, Financial controller, IT, HR. Externally, Nokia Club program strongly need the good collaboration with NS managers and Nokia distributors.
Selection third party: important task for Nokia club in term of providing promoter girls. Other requirements: work out job description, salary structure and incentive scheme…
• Technology:
There are some steps need to follow up in technology strategy as follows:
o Collecting the information of customers and invite them to join seminar and record in computerized data
o Updating the data of customers frequently and keep in touch with them by phone call or direct mail
o Create website Nokia Viet Nam www.nokia.com.vn and then add in folder Nokia store and Nokia club
o Fill in the data: sales revenue, sales volume by model, information of customer, winner in programs, incentive results, how many customers log in website Nokia store and Nokia Club…so that we can analyze it later
• Marketing plan:
• Membership card regulation:
o Target customer: customers who come to NS buy the phone will receive one year membership card (below example picture)
o The membership card have the name “Club NOKIA” in the one side of card with the code customers, the other side is the regulation and the benefit of customers, and photo of member.
PR: seminar customers of
NS
Q 1
POSM: banner promotion in NS to hang in good location;
POSM ( standee poster ) for NS Club Print ad for new product will add one line the information of Nokia store. Print ad for NS club introduction
Magazines 2 weeks/month
Q2 Q3
Website Nokia store Create website folder NS VN in web Nokia www.nokia.com.vn
Launch Party and I n store Games contest, Hero
BTL