Microsoft Lumia - Situational Recap + Marketing Mix

4.1 Situational Recap

The Microsoft Lumia has a broad price range. The Lumia 550 and 650 are the budget range, and the Lumia 950 is the top-tier model. The Lumia 950 is loaded with Windows 10 operating system, 20MP camera and a device-pairing function called Continuum. Continuum can turn the Lumia into a desktop, and when paired with the increasing trend of cloud storage subscriptions, is beneficial to the portable lifestyle of the modern consumer. The Lumia 950 also comes with a unique system called Windows Hello, which scans your iris as a password substitute. An aspect like this is part of Microsoft’s unique selling proposition regarding the product. Statistics vary, but it is said between 79-89% of Australians own a smartphone, and 8% of that figure are using Windows phones. This can be considered an opportunity for Microsoft since it is projected that with each year more Australian’s will buy a smartphone. Microsoft’s two main competitors are Apple and Samsung, who collectively control 73% of the market share. Other lesser known competitors include Chinese brands Huawei and Xiaomi.

4.2 Marketing Mix

Product Lumia is a smartphone Unique operating system, Windows 10	Promotion Point-of-sales through retailers Advertising Social media
Price Affordable budget models – Lumia 550 and 650 High priced model – Lumia 950 and 950XL	Place Social media Online and magazine reviews Mobile phone retailers

4.3 SWOT

Strengths Strong grasp over businesses and educational institutions Windows is the primary operating system taught in schools Windows holds the majority of the market share for the most popular desktop operating system	Opportunities Appealing to a younger demographic, targeting ages 18-44 Point-of-sales commissions schemes to encourage retailers Emphasis on new features and use of own operating system Emphasis on interconnectivity via the Windows 10 OS. Appeal to price-sensitive consumers
Weaknesses Significantly low number of Windows            phone users in comparison to Google            Android and Apple’s iOS. Weak innovativeness in the smartphone field, not attracting customers.	Threats Losing more market share to competitors (Apple and Samsung) Competitors copying and potentially expanding on Microsoft’s ideas Negative reviews and press regarding the Lumia smartphone range