Introduction to Marketing

Product Observation for E90 Communicator

11-7A

Group Member:

Diana Sari 2007110153

Herni Veryany 2007110376

Ribkha 2007110165

Endy 2007110132

Wincent 2007110162

Lecturer

1

Ms. Miranda Sagala, M.A.

2

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. The central

office of Nokia is located in Espoo city, 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).

First, Nokia corporation is established as a pulp company by Fredrik

Idestam in 1865. A Rubber Company built a factory around the Pulp Company

location in the beginning of 20th century and started to use Nokia brand. After

World War I, the Finland Rubber Company took over the Pulp Company and the

Finland Cable Company ( a producer of telephone cable and telegraph). That

three companies is merged as Nokia Corporation in 1967.

In 1968 until 1991, Nokia corporation moved to mobile. The newly formed

Nokia Corporation is ideally positioned for a pioneering role in the early evolution

of mobile communications. Then in 1992 until 1999, there was a mobile

revolution in all over the world. As mobile phone use booms, Nokia makes the

sector its core business. By the turn of the century, the Nokia Corporation

3

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

that comes with 210 gram in weight, 132 mm in height, 57 mm in width, 20mm in

thickness, and 140 cc in volume. This exclusive mobile phone provides 2 variant

of colors to fulfill 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. This next generation of the communicator series has dual displays

like its previous generation. Its external display uses 240x320 pixels active matrix

display that can shine 16 millions true color whilst its internal display uses

800x352 pixels active matrix display that also can shine 16 millions color.

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. The primary camera has 3.2 megapixels

resolution (2048 x 1536 pixel) with flash and autofocus mode, and the secondary

camera is QCIF camera that can be used for video calling. The flash in the

primary camera is used if you want to capture image in the night or in the dark

place, and the autofocus mode is used if you want to capture object in short

distance. In platform and operating system, Nokia uses S60 third edition and OS

4

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”. This high end phone is integrated with WLAN,

infrared (up to 115 kbps), and Bluetooth 2.0 for wireless data transfer. It is also

support JavaScript 1.3 and 1.5, and flash lite 2.0. With Nokia E90 Communicator,

you can do the voice and video call, save your favorite music up to 2 gigabytes,

watch video streaming, record special moments with video recorder, send Short

Message Services (SMS), Multimedia Message Services (MMS), and email, text

to speech, travelling around the world with built-in GPS, integrated hands free

speaker, push to talk, save your contact with photo, write note with Nokia active

notes application and maximize your mobile phone with application download.

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

5

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.

6

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.

For complete details, you can see Table 1. and Figure 1.

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.

7

This mobile phone is an user friendly product that easy to use because

this product uses the S60 third edition as its platform ad Symbian verse 9.2 as

operating system. 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.

If you buy Nokia E90 Communicator, you will get 1 year official guarantee

from Nokia Corporation, manual book to guide you in learning how to use this

mobile phone and also CD for instruction that can assist you in maximizing this

younger brother of Nokia 9500 communicator. Nokia corporation has so many

service centers which will help consumers when they have a problem or get

difficulty in using this premium phone, such as Nokia Priority, Nokia Hospitality,

Global Teleshop, and Nokia Care. Nokia also provides Nokia Original

Accessories such as leather case and Bluetooth headset to maximize and

personalize this 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

8

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 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.

9

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.

Payment Methods

It is easy if the customers want to get this exclusive mobile phone.

Customers can buy it in two payment methods, by cash or 12 months credit. For

the owner of Visa Card, there is a special offer from Nokia Corporation if

customer wants to buy this mobile phone in 12 months credit. The special offer is

10

customer does not need to pay the credit interest. This special offer does not

valid for the owner of another credit card. They will be charged 3% for the

interest.

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.

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.

11

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 store in Indonesia. But the guarantee does not valid for

exceptional condition like the mobile phone is splashed by water or accidently fall

down from your pocket.

12

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.

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.

13

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

14

mobility. Nokia E90 Communicator is a office mobile phone, with a stylish and

sleek design.

Table 1. Price of The Product

Month Price(in billion rupiahs)

May 15.5June 15July 13.5

August 13Sept 12.75Oct 12Nov 11.7Dec 10.3

Figure 1. Price Figure of Nokia E90 Communicator

Price (in billion Rupiahs)

Month

15

Pictures

Nokia E90 Communicator

Flip open

16

Flip Closed

Hartono Gunawan (middle), the first owner of Nokia E90 Communicator

17