HISTORY OF NOKIA

Nokia is a leading player in mobile communication all over the world. Nokia first started operations in the early 1980s. Nokia is a Finland based company, incorporated in 1967. Nokia started off as a pulp, rubber & cable manufacturing company by Knut Fredrik Ides tam in 1865. After some time Finnish Rubber Works acquired Nokia Wood Mills Telephone & Telegraph cables. Nokia Corporation created a variety of products in 1967 like paper products, car tires and personal computers cables. Nokia began developing the digital switch (Nokia DX 200) which became a very big success at that time. Nokia continued doing its business. In 1970, Nokia started taking an active interest in the power & electronics businesses. In this department it also made its good will to a great extent. In 1987, consumer electronic became Nokias major business and it worked seriously hard in this era. 1991 Nokia made an agreement to supply GSM networks in nine different European countries. Between 1992 & 1996, the company exited from the rubber and cable businesses. In August 1997 Nokia provided GSM systems to 59 operators in 31 countries. Its the leading manufacturer of mobile devices. Nokia offers a wide range of mobile devices with the experience in music, video, imaging, gaming and a lot more. They were targeting the youth which were interested in these kinds of qualities.

MARKETING MIX

PRODUCT:

Variety:

Nokia has a very vast variety of products which are available in the market. In every series of Nokia there is large number of sets thus large variety. E.g. entry level include 1200, 1208, 1100, 1110, 1110i, 1112 etc. these are the models by which Nokia targeted mediocre level customers. Nokia has launched a number of products because of mediocre level customers. Quality:

Nokia gain brand personality and market shares because of its quality. Its quality is one of the best among all competitors. Customers are attracted toward the Nokia brand because people have a perception in their minds that this brand is the best.

Design:

Nokia sets are of various designs such as Flip sets, Flat sets, Slide sets, Sets with rotating camera etc. They have launched a number of mobiles because of people minds perception that every one has its own perspective. Features: Each set of Nokia has its own features. The models of Nokia are based on features. Nokia is providing almost every type of feature which the others are providing like camera, Bluetooth and WIFFI 5

Brand Name:

Brand name is written on each set. This is because when a customer buys a product, the others sees and say that this is the best phone NOKIA.

Packaging:

On packaging of Nokia set detail information about the set is given and packing is made attractive by picture. Each set has its own booklet with information about its features. Packaging is important because it shows the good customers value.

PRICE

Price targeting both the ends. Price range from Rs1999 to RS 62700 keeping in mind the rich and the poor peoples. Pricing strategy is also important in this firm because Nokia has a clear threat from

their competitors. Nokia also offer cash allowances. It gives gifts to its customers.

PROMOTION

Advertising:

Nokia is doing advertisement though TV, Sign boards, Bill boards, Radio and Newspaper. Nokia selects its medium after a long research. It also does the practice of sending Broachers to the customers, displaying Posters, Dummies and display stands

Personal selling:By product training to Distributor. They are signing agreements

with their distributors and going to places to places for the selling of their product.

Public Relations (PR) Nokia has strong PR. They keep on doing some or the other new events, programs and publicity, so as to keep up with the brilliant image of the company and also to enhance the brand equity. They have good relations with politicians they often send them complementary mobiles to them.

Direct Marketing : Nokia does not perform Direct Sales activities it is confirmed from its official website

www.nokia.com. Nokia use DEMO style of Direct Marketing. Nokia does not use Direct Mail or Telemarketing styles of Direct Marketing.

PLACE

Channels: Nokia > Distributor > Whole seller > Retailer > Customer

Nokia gives its product to the distributors then wholesaler buy their products in a bulk, after that retailer purchase it from wholesalers for resale purpose to the customers.

Coverage:

Nokia is widely available all over PAKISTAN. It has reached almost all the parts of Pakistan and currently its product can be bought from any where all around the globe.

Distributor:

Nokia main distributors are: United mobiles, Mobile zone and Advance telecom. Nokia mobiles are mostly available through every mobile outlet. They have given their distribution to many companies because their product has a very large Demand in the market.

MACRO ENVIRONMENT OF NOKIA These are some macro environmental factors of nokia POLITICAL FACTOR ECONOMIC FACTOR SOCIAL FACTOR TECHNOLOGICAL FACTOR

 ENVIRONMENTAL FACTOR

POLITICAL FACTOR Nokia reported spending $5.4 million on lobbying in the U.S. in 2007 and $2 million on lobbying in 2008 because government in U.S was creating many hurdles due to which Nokia started investing less as compare to earlier situation. As per the situation in Pakistan no political factor is involved till now. ECONOMIC FACTOR Nokia had to change its functions from single market to global market due to collapse of Russian Federation because when Russian federation was collapsed Nokia took the best advantage of it and changed its functions from a single market to the global market . Nokia manufactures a variety of products which are offered to each and every class of the society.

SOCIAL FACTOR Nokia has been a member of the United Nations Global Compact since 2001. Every Nokia employee has influence over Nokias performance and reputation in issues of health, safety, security, employee relations, corporate citizenship and human rights

TECHNOLOGICAL FACTOR Technology is one of the most important Macro environmental factor which plays an important role in case of In the communications market technology is perhaps the most important factor that companies like Nokia have to take into consideration. They have to keep up to date with all the newest technological advances (like camera and motion capture phones) if they

are going to capture the biggest market share and stay ahead of their competitors (Sony and Seimens). ENVIRONMENTAL FACTOR As we know that Nokia is a friendly user handsets so it is not harming the environment as compare to other mobile manufacturers. Nokia have managed to be quite environmentally friendly and have not done anything that the consuming public have taken huge offence to, they have been very careful about this and this is one of the reasons they are such a popular brand of mobile phones

TARGET MARKET NOKIA is the world leader in mobile communications backed by its experience, innovation, user-friendliness and secure solutions.It is a very well knowned company having its vast offices world wide. Their specialized product is cellular phones. They have many house hold items as well. Target market for the Nokia mobile phone is between ages 20-40. Who want to use Something Special International Students Teenager and Business class POSITIONING OF NOKIA Nokia has made its position as the world's leading mobile-phone brand by the simple

understanding that when basic technology questions are solved, communication leaves the aspect of voice quality for the aspect of design relations. Design will always be as much a language as any spoken word with a conversation individually as well as socially. Now, this is of course not the full truth behind the success and just moves the subject towards the eternal discussion on design, but to understand Nokian success you cannot close your eyes to this. Please take note of how Siemens have started to work with a complete design focus the last year which will make it an interesting company to study. However what could happen is of course that the premises change (e-mail in your mobile is not one, but ponder that you connect a pair of projecting goggles/glasses with existing 3G-technology. That kind of shift could drastically change the mobile scene of today).

COMPETITORS There are many competitors of nokia. The major ones are samsung, sony ericsson, LG and many others.

These are rising day by day and making business hard for nokia by the passage of time. the main problem with nokia is the loss of market share to other products which have nokia as their bentch mark. They compete with nokia like samsung in styling of their products, sony ericsson is providing camera resolution because their major advantage is from the joint merger of two companies that is sony and ericsson. Tthen LG gives the latest technology then nokia. The other uprising companies are htc and dell which target the windows and android system for cell phones.

STRATEGIES Price Strategy They have kept every price range in their products they have prices starting from 2000 and going to 200000. They have tried to compete with all the companies that are present just to keep them in the minds of people. Market Strategy Push: they organize functions and they have joint ventures in every things. Pull: they have created their demand in the market by opening retailing chains and providing incentives to suppliers.

THE BATTERY ISSUES

Battery occupies a very important place in the cellular industry, and, therefore, Nokia has laid a great focus on its battery issue. Three types of batteries which are currently available for consumers in the market: They are as follows: Original Nokia batteries. Batteries manufactured by third parties sold under own brand or no-brand Counterfeit batteries. There are 30-40 cases every day of exploding non-original batteries around the globe. The primary root cause of non-original battery failure is internal short circuit in the cell. Vast majority of short circuits are caused by traumatic event (i.e., dropping the phone) which jeopardizes integrity of poorly manufactured batteries. In each and every case, the battery in question has proved to be a non-original battery (either third-party or counterfeit) which did not include industry standard safety measures. Nokia batteries have got the specialty because they are able to meet the requirements of all and are according to the international safety standards. There is a continuous control of the production with intensive product testing. Original Nokia batteries comply with all international standards, such as UL2054, UL1642, IEC60950, etc. These batteries are manufactured with a standard safety circuit, highest quality material and possess a correctly designed safety vent, and in a clean, stable manufacturing process AQs far as Nokias response to faulty and illegal batteries is concerned Nokia took all possible actions against the counterfeiters to ensure customer safety and security. They launched customer service programs to help consumers and retailers recognize non-original batteries. Nokia took a pro-active position in this regard and replaced the batteries that were manufactured during that period with original one and that too free of cost.

SWOT ANALYSIS

STRENGTHS Nokia enjoys a relish able position in its relevant sphere of the cellular industry, because it is the Leader in the Industry. It is because its phones are user-friendly. Nokia has got a high quality professional team in the HRD Department. A very strong R&D Unit. They have a strong financial backing. Nokia stands unbeaten regarding its great handsets features. Last but not the least is its strong customers relationship.

WEAKNESSES Nothing can be termed as perfect. So is the case with Nokia as well. There are some weaknesses which may be referred to Nokia. The first one is that most models of Nokia are heavier in weight. Then they are comparatively more expensive than other competitors. Their big sizes are very difficult to handling. OPPORTUNITIES Nokia is focusing on the philosophy of hitting the nail aright. They are targeting right customers at the right time. They intend to increase their presence in the CDMA market, which they are just entering, as well as 3G and Edge. Moreover, among a lot of other opportunities, Nokia can increase their growth rate by reducing their profit ratios and by tax reduction.

THREATS Nokia is faced by a strong competition from Samsung, LG, and so on. One more threat is that of saturation in current market. With the advent of modern technologies, challenges of continuous technological development are also threatening Nokia.

CORPORATE SOCIAL RESPONSIBILITY Environment: Nokia has never turned a deaf ear to the environmental issues but has always tried to be environment-friendly. They have carried out extensive work on recycling. Their packaging is also up to the mark. They are helping people in transportation.

Nokia Helping Hands: They are carrying out donation activities all round the globe. They are raising funds for the deserving people. They are volunteering different activities at hospitals and are arranging activities for the under privileged. Corporate Giving: Nokia has established a Disaster Relief Agency which has helped millions of people during the drought in Ethiopia, Sichuan earthquake in China, Cyclone Nargis in Myanmar, Southeast Asian Tsunami and above all during the earthquake in Pakistan Nokia was at the forefront.

CONCLUSION Gaining and maintain consumer preference is a battle that is never really won. Continued and consistent branding initiatives that re enforce the consumer purchase decision will, over time, land the product in consumer preference set.

Attaining and sustain preference is an important step on the road to gaining brand loyalty. Most of the consumers prefer Nokia mobiles in Pakistan, due to its strong brand image, and the main factor forcing the consumers to buy Nokia mobiles is advertisements through the print and electronic media.