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1. Why should Nokia focus on
youth now?
There are signs that Nokia can turn things around for the better. During the
fourth quarter 2012, Nokia was able to generate a profit of 202 million euros
($269 million), a massive gain over the 1 billion euros the company lost
during the same period in 2011.
Nokia is losing customers but keeping Fans
Despite a decline in market share, Nokia’s customer recommendation and
loyalty levels have increased. Most likely scenario is that Nokia is losing
customers (a segment that includes detractors and the unengaged) while
retaining its true Fans (the Beachhead that are already sold on the product).
Find the most relevant insights on youth mobile marketing: http://www.mobileYouth.org

2. Between September and December 2012 the number of Nokia customers
that would recommend it rose by 13% to 45%. In the same period, its
detractors fell from 37% to 33%.
During the same period, Nokia saw a 12% improvement in the number of
customers saying they’d get a Nokia the next time they buy a phone (an
increase from 30% in September 2012 to 42% in December 2012). Nokia
Fans are already upgrading to Lumia. Back in 2009, only 1% of Nokia
customers had a Lumia handset. By end of 2012, 40% of Nokia customers
owned a Lumia handset.
Why are youth key to Nokia’s future?
While Nokia has a position of strength, it still has a long way to go. Increased
loyalty is good, but put into context, Apple retains the highest loyalty ratings,
with 80% of its customers saying their next phone would be from the same
company. If Nokia is to compete with Samsung and Apple effectively and not
be confined to the “others” category by 2015, it needs to get real with its
market position and build on its existing Beachhead - the youth market.
1. Youth are the influencers:
Youth are the most influential customer segment. Their influence affects
today’s market and the future market (adults, executives etc). Brands are
defined by what youth say, not what the advertising agencies say.
CEO Elop recently revealed in the media how he had the opportunity on
Sunday to visit telco stores in various parts of Sydney's CBD, "going in a bit
undercover at times," to ask store representatives what phones they
recommend and asking them for demonstrations. While buyers are influenced
by other people in making purchase decisions, store reps are not the main
source of influence. Industry data showed that only 32% of customers
referred to store employees to make a purchase decision compared to 69%
customers who turn to friends and family.
Nokia needs to focus on winning over young influencers, not store
employees.
Find the most relevant insights on youth mobile marketing: http://www.mobileYouth.org

3. 2. Youth are the future enterprise market
Microsoft’s Windows OS already rules the PCs of the enterprise market.
Among Windows smartphones, Nokia is the clear leader with 78% market
share ahead of HTC (14%) and Samsung (6%) – the latter two are heavily
invested in Android.
Nokia’s future prospects in the enterprise market rely on winning over the
young professionals of today. The growth in the Bring Your Own Device
(BYOD) movement within enterprises has shifted the decision from corporate
IT departments to influential young employees.
3. Youth help define the brand’s wider social benefit
Facebook, SMS and file sharing are all technologies that began with the
student segment moving on to the wider mass market. Why? Because youth
understand how to maximize the social benefit from any given device.
Youth are the most sensitive to Total Cost of Device Ownership. Youth have a
limited budget of which 36% is allocated to mobile. Spending more on mobile
means fewer opportunities to spend with friends. That means, it is youth who
will first discover the social benefit of Lumia because their premium for
discovery is the highest. They will be the ones to communicate this social
benefit to the rest of the market. If Nokia wants to position itself as a device
that offers cost control to individuals and enterprise, it has to evolve its
proposition first with the help of young Fans.
4. Nokia already has a youth beachhead
Nokia has a position of strength - a Beachhead - in the youth market. Fans in
their late teens and early twenties gravitate towards specific aspects of the
Nokia heritage (reliability, simplicity and ease of use). This is visible in the
Indestructible Nokia memes.
Find the most relevant insights on youth mobile marketing: http://www.mobileYouth.org

4. The urgency of the youth market
By ignoring their younger customers and focusing on higher end users Nokia
has already set itself up as an aging brand. In time, their customer base will
age into irrelevance. Nokia needs to reengage the young influentials to
reinvigorate the brand and secure a future lineage.
Nokia Fans won’t stick around forever
Fans who are already using Nokia Lumia may desert the brand. If Nokia
continues to ignore this existing Fan base by focusing on wooing Apple and
Samsung Fans, it exposes its Beachhead to erosion by competitors. Nokia
needs to find its own space in this market with the help of existing Fans.
Nokia’s brand strength relies on claiming the space it already has as opposed
to expanding to Samsung and Apple’s home turf. Achieving the company’s
goal of double digit market share relies on engaging the Fans they already
have, not in getting customers of other brands to switch.
Find out how Nokia reach the youth market:
The 2013 mobileYouth Report
Find the most relevant insights on youth mobile marketing: http://www.mobileYouth.org