Marketing Strategy for Motorola

ABSTRACT

In today's globally competitive world customers expect more, have more choices and they need the best for the amount they spend. So, marketing strategic plan has become so important in this aspect. In this report I have discussed about Motorola and suggested strategic frame work that they could have to implement to have competitive advantage in the market.

Table of Contents

Abstract 1

Table of Contents 2

1. Introduction 3

1.1 Global phone market 3

1.2 Emerging Market China and India 4

2. Company Background 5

3. Situation Analysis 5

3.1 Market Demand 5

3.2 Customer Analysis 6

3.3 Competitive Analysis 6

3.4 Competitive Position 6

3.5 Performance Matrix 6

4. Applying Porters Five Forces 7

5. SWOT Analysis 8

6. Critical Success Factors 8

7. Marketing Problem 9

8. Strategic Marketing Framework 9

8.1 Offensive Strategy 9

8.2 Improve Differentiation Advantage 10

9. Marketing Mix of Motorola 12

10. Conclusion 14

11. References 15-16

1. Introduction:

1.1 Global Mobile Phone Market:

International Mobile phone market is being growing at a tremendous rate. According to IDC , vendors shipped 256.4 million mobile phones, a YTY increase of 10.0% for Q1 2007. However, the shipments were 13.8% lower than the record shipments in Q4 2006; the decline was expected owing to the seasonality of the market. Q1 2007 marks the first quarter of slower growth in the mobile phone market, a significant change from the growth exhibited each quarter during all of 2006. YTY growth during each of those quarters topped 20%, significantly higher than the 10.0% growth posted at the start of 2007. (IT Facts n.d.) Penetration rates for the U.S. cell phone market are greater than 75%, and in Western Europe, Japan and Hong Kong penetration has already exceeded 100 % (multiple cell phones per subscriber). Although there is still significant growth to be found in these markets, much of this growth will take the form of selling increasingly sophisticated services (e.g. video, GPS) to existing customers rather than growing the overall number of subscribers. Emerging markets such as Brazil, India, China, Africa and Latin America have demonstrated blistering cell phone growth in recent years. (Global mobile market n.d.)

Global mobile phone shipments in Q1 2007

Q1 2007 Q1 2006 Growth

Vendor Shipments Share Shipments Share YTY

Nokia 91,100,000 35.5% 75,100,000 32.2% 21.3%

Motorola 45,400,000 17.7% 46,100,000 19.8% -1.5%

Samsung 34,800,000 13.6% 29,000,000 12.4% 20.0%

Sony Ericsson 21,800,000 8.5% 13,300,000 5.7% 63.9%

LG Electronics 15,800,000 6.2% 15,600,000 6.7% 1.3%

Others 47,500,000 18.5% 53,900,000 23.1% -11.9%

Total 256,400,000 100.0% 233,000,000 100.0% 10.0%

Source: IDC

1.2 Emerging Markets: China and India:

In recent years, China and India, the fastest emerging markets, have grown as favourite markets for telecom equipment makers.

China's mobile market grew at the highest and remained the largest in the first half of 2006 according to China Electronics News.

India currently adds nearly 5 million new mobile phone users every month. India's major carriers such as Bharti, CDMA-operator Reliance Communications Ltd. and state-run Bharat Sanchar Nigam Ltd. have annual expansion plans exceeding USD 1 billion each.

Asia Pacific handsets sales reached 67.9 million units in the second quarter of this year, up 5.4 percent from the previous quarter. (SDA India n.d.)

2. Company Background

Motorola was founded in 1928 in the USA and was the market leader till 1998, when Nokia pushed Motorola to 2nd position (Nokia 1998). It has got a strong position in home market as well as in Europe, Asia, Africa and Middle East. Motorola builds and markets products, services and applications enabling connectivity, information and entertainment through broadband, embedded systems and wireless networks. The company operates through three main divisions: mobile devices, network and enterprise and connected home solutions. (DataMonitor, 2007).

2.1 Company Mission and Vision:

"Organization's role, business definition, distinctive competence, and future indications The Mobile Devices segment is focused on profitable and sustainable growth while maintaining a strong commitment to quality and a unrelenting focus on technology and innovation. A central theme to Mobile Devices strategy is our vision of seamless mobility enabling our consumer to experience a simple, rich and compelling experience regardless of environment, device or network." (Motorola Annual Report, 2006)

3. Situation Analysis:

3.1 Market Demand:

The study by Gartner shows that the shipments of mobile phones in general will surpass 1 billion units in 2009. As for the entire Asia/Pacific segment of the mobile phone market, it represents 25 percent of the worldwide