Study On Nokia Products And Its Distribution Channel

It seems that the cell phone market in China is not as optimistic as expected because of the product surplus, profit decrease and the severe technical competition in the market. Along with the coming of the 3G age, more and more cell phone operators will join the industry link to share the market. What kind of influence will happen on both Chinese local and international brands of cell phones in China?Based on the description of Nokia cell phone product development and its channel management, analysing some relevant theories, this paper discusses the application and creativity of cell phone customization and FD mode in the cell phone strategy, it also provides some suggestion on the development of Chinese cell phone products.This paper indicates that there are two ways of FD mode: 1) to decrease the number of distributors scattering in the whole country; 2) to supply products directly to retail terminals. Nokia creates the FD mode in the China market because it exactly matches the above mentioned advantages. Since the distribution layers are simplified, some profit can be moved to the distribution channel - FD and retail terminals. Hence, the phone producers can grab more market shares with a lower cost. FD mode only suits to apply to such distribution mode with huge production and selling quantity as Nokia, but not all cell phone producers in the market. That's because it requires the producers who apply the FD mode should have built up good brand recognition in the market, which can attracts groups of retailers. Further more, FD mode also requires a rich variety of product lines which ensures significant quantity of products in the market. There is no FD advantage without product quantity.Apart from the distribution channel, this paper illustrates that the variety of cell phone product lines and the design management are also important. Nokia's delicate product design well demonstrates the North European's culture and lifestyle. Nokia aims to keep a brilliant design style on the phone products by using personalised elements.Finally, the paper suggests the Chinese cell phone producers should put more efforts on the distribution channels and product design to win the market.