Nokia market segmentation
The vision of Jorma Ollila, Head of Nokia's Phone Division in 1990 and later Nokia's CEO, was that the mobile phone industry would develop from a business user industry to one focused on consumers. This vision lead to a strategey of market segmentation, making different products for different kinds of users. After Nokia successfully gambled on the Worldwide dominance of GSM segmention assured its eventual dominance of the industry.
Segmentation lead to Nokia's constantly evolving and growing product range which expanded as more consumers came into the market.
Nokia product categories
Premium
The premium class phones were the top of Nokia's range, though they were as much about status and style as technology. The premium class proper started with the chrome look 8810. Nokia's 8110 designed in 1996 pointed the way to this class of phone. It was the first Nokia slide phone and set new standards in design, but was more about good design than bling.
| Year | Phone | Remarks |
|---|---|---|
| 1998 | Nokia 8810 | Frank Nuovo's original slide phone with chrome look case |
| 1999 | Nokia 8850 | Update on the 8850 with aluminium slider case |
| 2002 | Nokia 8890 | Titanium cased updated version of the 8850 |
| 2003 | Nokia 8890i | Revision of the 8890 |
| 2005 | Nokia 8800/8801 | The ultimate luxury phone using watch making techniques |
Fashion
The fashion category emphasised style and design. Initially the fashion phones targeted young professionals. These phones were Nokia's premium consumer offering. The premium category targeted premium business users. They were small light and in the beginning ergonomic.
| Year | Phone | Remarks |
|---|---|---|
| 1999 | Nokia 8210 | The smallest and lightest Nokia to date |
| 2001 | Nokia 8310 | Restyled model with 3 way customisation |
| 2002 | Nokia 7210 | Stylish case and colour screen |
| 2003 | Nokia 7250/7250i | Fashion phone with camera |
| 2004 | Nokia 7260/7270/7280 | Three differently styled fashion phones, including the famous lipstick phone |
| 2006 | Nokia 7360/7370/7380/7390 | Four differently styled fashion phones |
Nokia's segmentation stategy was initially quite simple. Users were devided into
- Trendsetters - mainly mail technology lovers wanting the latest features
- High flyers - top executives concerned about time and efficiency
- Social contact seekers - mainly female, interested in personal contact with friends and family, personal rather than business users
- Posers - mainly male, wanted to keep up with the latest trends and impress others
By 2000 Nokia had refined these segments to the more subtle:
- Experiencers
- Impressors
- Maintainers
- Balancers
- Sharers
The segments did not reflect directly onto the phones themselves but influenced a number of product categories:
- Premium - Impressors
- Fashion - Experiencers/Impressors
- Classic - Controllers
- Expression - Balancers
- Entry
