Creating the right marketing mix
A Motorola case study

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Page 2: Product

Motorola's principle businessesThe first element in the marketing mix is the product itself. If you create products that customers want, the other parts of the mix can be designed to meet customer needs.

Motorola is a global leader in wireless and broadband communications technologies and related electronic products. It has significant operations in the UK employing approximately 2,400 people.  It covers a number of businesses.

Mobile phones are among the most familiar products to consumers and the mobile phone is seen by many as an essential item. It can perform a number of functions, including being:

  • an essential means of communication
  • a fashion statement
  • a source of entertainment such as music and video games
  • a safety precaution (e.g. to tell people where you are).

The mobile phone market has risen dramatically in size. In April 2005, the market research company Mintel produced figures which showed that 80% of the youth market in the UK has a mobile phone, and that over 61 million people subscribed to an airtime contract.

The market is a very competitive one with a range of companies competing to provide mobile phone services. With a 3G or WAP-enabled phone, customers can browse special Internet sites, which means they can look at football scores, search cinema movie times, or live-chat with friends. Motorola has partners such as MTV, with high quality sites providing diverse and entertaining content. 3G (third generation) phones offer much more effective access to music and video downloads, because the networks they work on provide faster connections for downloading content than previous generations of phones.

Text, Picture and Video messaging is phenomenally popular and is likely to become more so. Motorola mobile phones are increasingly being used to capture and share experiences, in addition to making arrangements, tell jokes, and flirt without the personal nature of a face-to-face or voice-to-voice contact.

In creating products, Motorola concentrates on:

  • attractive design
  • excellent call-quality
  • ease of use
  • value-added features including music player, games, camera, and video features
  • high quality, reliable products.

In order to remain competitive, the company continually seeks to innovate - for example by building phones that are slim and well designed. This is particularly important for one group or segment of the mobile market. An example of this is the Motorola RAZR phone.

The Motorola RAZR V3i is the thinnest clam-shell phone currently available (as at January 2006), just 13.9mm thin. The casing is made from aircraftgrade alloy, and the outer screen from glass, as no conventional plastic materials were strong enough.

It has a built-in camera with 4X zoom and quick exposure controls. This also lets you watch and record video clips in full colour. You can also enjoy your favourite ring tones, music clips and games with a state-of-the-art polyphonic speaker sound and an integrated 3D graphics engine.

Motorola | Creating the right marketing mix