Case Study Nokia Segmentation and Targeting Strategy

Nokia has built its success on its ability to target different niches for wireless telephones. Segmentation is so crucial to Nokia that in 2002 it broke its $24 billion mobile phone division into nine business units, each one focusing on different parts of the market. Six months later, Nokia had its first results from the reengineering among the 24 new products planned to be introduced in 2004:

► The Nokia 2100 proposes a functional photo insert cover, animated screensavers, and SMS chats, well as user-changeable color covers. It is the cheapest model at less than $100.

► The Nokia 3100 offers a glow-in-the-dark cover, new games, animated screensavers, MMS, and Java technology.

► The Nokia 3300 features an MP3/AAC player, stereo FM radio and digital recorder, stereo headset, hands-free listening experience, and easy drag-and-drop music transfer from compatible PC.

► The Nokia 810 is a car phone with separate display, Navi wheel, Bluetooth, RS232 connector, and high-speed data transfer.

► The Nokia 5100 comes protected against splashes, dust, and bumps, high-resolution color display, MMS, flashlight, calorie counter, and thermometer.

► The Nokia 6220 introduces a digital camera, EDGE high-speed data connectivity, presence-enhanced contacts, e-mail, and Java applications.

► The Nokia 7250i includes an XHTML browser, integrated digital camera, advanced MMS features, portrait caller ID, designer looks, and innovative keypad layout.

► The Nokia 8910i offers an elegant design, genuine titanium covers in black, color display, Java technology, and MMS.

► The Nokia N-Gage introduces a new category of a game phone. It has a mobile game deck with Bluetooth and GPRS capability, digital music player, stereo FM radio, MMS, e-mail, and XHTML browser.

In mid-2002, Nokia launched a new subsidiary, Vertu Ltd., to offer handcrafted cellular phones, made of silver or platinum with silver or gold headset, a service concierge which locates tickets to the theatre or reserves a table at a top restaurant, a palladium-trimmed case and a leather woven handle. The price for a Vertu phone ranges from $5,000 to $20,000 and more.

Question 1: Who are the different groups of customers Nokia is trying to reach with the nine different models presented here? You can go to

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