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Executive Summary 03
History of NOKIA 04
Company Profile
Vision of NOKIA
Mission Statement of NOKIA 09
Current Market Situation 10
Objectives of NOKIA 11
Market Segmentation 14
Niche Marketing
Target Market 16
Positioning Strategy 16
Marketing Mix 17
Product Mix Strategies
Price determination factors 21
SWOT Analysis
Bibliography 25
Executive Summary:
NOKIA is the Global leader in the mobile phone sector. NOKIA was
founded in 1864 in Finland. The first business of NOKIA was paper
making and selling. Then it switched to rubber works and then to the
most important sector of its life which was telecommunication sector.
Today NOKIA is leading all over the world with a reputable and
recognized image in the mind of people.
The key elements of NOKIA’s vision are reduced mobility, growth and
quality, therefore, NOKIA majorly focuses on these three elements
which serve to be Global leader. Their mission statement is:
"NOKIA, together with its employees, will make a meaningful
contribution to the community in each individual country it operates
There are approximately six to seven competitors of NOKIA in the
market of Pakistan. The major objectives of NOKIA include, marketing
objectives, advertising objectives, financial objectives and societal
objectives. And each and every step is aimed to obtain these
We focus in this research report mainly on it’s marketing that all the
topics of marketing with reference to NOKIA but our major focus is on
the marketing mix of NOKIA which consists of four elements.
These elements of marketing mix are Product, Price, Place and
We have also described the segmentation and target marketing of
NOKIA. This report consists of promotional strategies of NOKIA to
promote its products. There is a SWOT analysis of the firm at the end,
which shows a brief review of the strengths, weaknesses,
opportunities, and threats to the firm in the market from its
In short it is a comprehensive research report on the marketing mix of
NOKIA which describes in detail all the strategies adopted by NOKIA to
be a Global leader.

History of Nokia
Paper was the beginning:
NOKIA was founded in 1864 (1865) near the
NOKIA river in Finland. There were a lot of
forests, rivers and lakes: it was Finland's national
pride, such conditions allowed paper industry to
rise. A Finnish engineer Fredrik Idestam became
one of the businessmen in this industry.
Unfortunately, he didn't have enough experience in this business so he
acquired technology from Germans.
Idestam visited one paper manufacturing plant in Germany. Idestam
saw everything he needed. Idestam came back to Finland, he created
his own paper manufacturing plant.
When his son-in-law Gustaf Fogelholm (who became NOKIA's president
in 1895) decided to start the power generation business, Fredrik
Idestam was the main opponent of this idea. But Gustaf won against
his father-in-law and established the first power plant in 1903 and
second in 1913.
Old logo of NOKIA

Rubber works:
At the end on 19th and at the beginning of 20th centuries, Finnish
Rubber Works (FRW) was the leader of Finland's rubber products. One
day FRW's bosses decided to move the plant outside of Helsinki. They
decided to build a new plant near the same NOKIA River, near NOKIA
plant. So, FRW started buying cheap energy from NOKIA.
At the beginning of the 20's, NOKIA started to look for shareholders.
NOKIA neighbor, FRW, became the largest shareholder. During the Ist
World War NOKIA paper business decreased a lot. But FRW's rubber
business increased. So, NOKIA partner became stronger and acquired
its shares: NOKIA became a part of a big corporation. In 1922 Finnish
Cable Works joined them. It is interesting, but paper, rubber and cables
were sold under the same NOKIA brand.
But the bosses of three companies were against merger of companies.
The merge was made only in 1967. An alliance, which was called
NOKIA Group, stayed in the same business: paper, rubber and cables.
The last one and the most perspective business sector was consumer
Electro sparks:
NOKIA relationships with Russia are quite interesting. After the II World
War, Germany's ally Finland was forced to pay reparations to the USSR
till 1952. Reparations included electro cables, which were produced by
Finnish Cable Works. Company had to make twice the cables than it
was able. But it has done this task just because of patriotism and
enthusiasm. After paying all reparations, the USSR became the main
partner of NOKIA Group.
In the middle of the 60's NOKIA was exporting about 20% of its
production to the USSR. Despite positive opinions about NOKIA partner,
the president Bjorn Westerlund had a bad feeling all the time: "If one
day the Kremlin says "No", we will loose all our business", he
explained. But nobody wanted to hear these pessimistic forecasts.
In 1977 Kari Kairamo became NOKIA’s president. Kairamo
had gained experience by working in the USA, and unlike
his predecessors who leaned towards Soviet Union, he was
strongly western-oriented. He wanted to handle things "off
the record" through unofficial meetings, and considered
personal relationships particularly important. Compared to
his predecessors, Kairamo was also keener on appearing in
public. During Kairamo's era, the emphasis was on electronics and
power generation.
In 1986, Kairamo restructured the corporate governance by
establishing a new internal Board of Directors, in which he became
Consumer electronics became NOKIA main business in 1987. Kairamo
strived to make the company more international and turn its gaze on
Europe. Under Kairamo's leadership, NOKIA made a few large-scale
acquisitions (televisions and computers), which were not without risks,
however, as it turned out.
Kari Kairamo was a charismatic and emphatic leader who liked to
mingle with people. His enormous energy was, however, tragically
exhausted in 1988 when NOKIA was heading to financial doldrums due
to loss-making and businesses that were just too diverse.

Today's leader :

In 1981, by Kairamo's leading, NOKIA created NMT mobile phone

standard, which became very popular in Northern Europe and
Russia. In 1987 NOKIA launched its first NMT phone, Mobira
The next step was to create GSM networks. In 1989 NOKIA
delivered the first GSM network to Finnish company Radiolinja. In
1991 the first GSM call was made by Finland's president. In 1992
NOKIA introduced First GSM phone:
NOKIA 1011.
In 2006, Olli-Pekka Kallasvuo becomes Nokia’s President and CEO; Jorma
Ollila becomes Chairman of Nokia’s board. We don't think that it is
necessary to talk a lot about NOKIA phones: they are the most popular
phones in almost all countries. Only in the US NOKIA takes the second
place, after Motorola. But this isn't a problem, because today NOKIA
takes about 36% of global mobile phone market.
NOKIA doesn't make only mobile phones: all its handsets are equipped
with a range of accessories. NOKIA was the first that offered such
design element as exchangeable covers: only then other makers
added this feature to their handsets.
So NOKIA is the true leader of today's mobile communications and its
market share continues to rise. We can't forecast that this rise won't
stop in the future, but now it looks that NOKIA should gain an even
bigger market share. Unfortunately, nobody knows whether this will
happen or not.


NOKIA is the Global Leader in the production of latest cell phones.

NOKIA is the most successful brand of the world which is leading its
competitors due to providing the best customer value. The NOKIA
phones are recognized in the world due to their distinctive features
which are not found in the competitors’ phones.

In Pakistan, NOKIA is distributing its cell phones to all of the social

classes. It does demographical segmentation to cater all the customers
according to their age, gender, income, occupation, education, race
and generation. They also use psychographic segmentation to better
understand the needs and psychology of their customers. Like it
provides different phones to different social classes. In Pakistan, NOKIA
distributes its cell phones to its customers through the authorized
dealers like Chimera, Mobile Zone and United Mobiles etc. NOKIA cell
phones are also available at every electronics market and at each
electronics shop because of the fastest growing demands of the NOKIA
mobile/cell phones.

NOKIA is leading because it analyzes its customers’ real needs in a

better way, and provides them the advanced cell phones which also
fulfill their unstated needs. NOKIA also fulfills the latent needs of the
customers, which can’t be fulfilled by NOKIA’s current cell phones or by
its competitor’s cell phones.

In this research report, our major focus is on the 4P’s of marketing mix
of NOKIA. We enforce on NOKIA cell phones Product, Price, Place and
the promotion of their products.


NOKIA sees mobile technology as an enabler that can help create a

more sustainable world. Combined with latest technology better
product design, tighter control of production processes, greater reuse
of materials, and proper recycling, mobile communications can help to
reduce the use of scarce natural resources and energy.
Key elements of NOKIA business vision are - mobility, growth, and
• Reduced Mobility
Mobile technology and digital services can often replace the
need for travel or transport, and this in turn reduces the
greenhouse effect caused by the burning of fossil fuels.
Mobile technology can make various transactions easier and
enable greater economic and social activity and industrial
• Efficient use of Natural Resources
We strive to handle the short life of mobile phones and the
related increase in consumption by operating in a sustainable
and responsible manner.
We take part in a wide range of cooperative initiatives and global
organizations to share knowledge and shape effective
environmental policies.
At the same time, we strive to reduce material and energy
consumption in our own activities.
Reduction of waste is an environmental goal closely linked with quality
- quality of design, sourcing, assembly, and end-of-life practices.

Mission Statement 2007:

Our Mission is a world where everyone can be connected

Everyone has a need to communicate and share. Nokia helps people to fulfill this need
and we help people feel close to what matters to them. We focus on providing
consumers with very human technology – technology that is intuitive, a joy to use, and

We are living in an era where connectivity is becoming truly ubiquitous. The

communications industry continues to change and the internet is at the center of this
transformation. Today, the internet is Nokia's quest.

Nokia's strategy relies on growing, transforming, and building the Nokia business to
ensure its future success.

Current Market Situation:

According to an approximate figure, there are more than seven
international brands available in the Pakistani market. They are also
available in almost all cities of the Pakistan. The current market of
Pakistan is a fast growing market because there has been a great
advancement in the education field and in the fastest growing
telecommunication sector. Growth in education, business and mobility
is creating strong need for communication. The local market is
dividing the customers into different segments depending upon their
income levels, social classes and life styles.
The major competitors of NOKIA are :

Objectives of Nokia
Marketing Objectives :
NOKIA wants to differentiate itself from its competitors in a positive
manner. NOKIA wants create a good perception in the minds of
customers about its products. NOKIA main objective is to achieve a
prominent position in the market. NOKIA wants to map its name in the
minds of customer on the behalf of technological improvements,
additional features, quality of product and related services.
Advertising Objectives :
NOKIA main advertising objective is to create the awareness about the
product and differentiated features. Further to convey a message to
customers that how we are giving the value to customers as compared
to competitors. NOKIA wants to establish a positive attitude of
coustomers towards their products through advertising. NOKIA wants
to persuade their target customers to try their products and buy more
of it. NOKIA wants to create good image, personality and unique
position for their product in the market through heavy and effective
Financial Objectives :
To earn an annual rate of return of 20% on total investment over the
next 3 years after paying the tax. As being a leading business concern,
maximization of profits is aimed as well as to sustain growth in earning
in real terms.
Societal Objectives :
NOKIA is making it possible for the people to be more closer and
preserve the memorable moments of their life in the cameras of their
cell phones as claimed in the slogan ”Connecting People”. NOKIA gives
the people opportunity to enjoy sweet preserved memories any time.
NOKIA also gives the opportunity to be seen as savvy customers. It’s
an ethically responsible company and a respected corporate citizen
continuing to play due rolls in the social and environmental sectors.
Company is striving for excellence through commitment, integrity,
honesty, and team work.

Need :
Due to changed scenarios of business, society and work activities,
need of communication in Pakistan are growing rapidly. People require
different ways to fulfill their communication needs.
Want :
To fulfill their communication needs people in Pakistan need cell
phones. Why they want cell phones not other devices? The reason is
that, their communication need is shaped by culture. Use of cell
phones has become our social need and it has also become the part of
our personality. So we can say that our need is backed by our culture.
Backed by buying power wants become our demands. So people in
Pakistan now demand different types of cell phones, according to
technological facilities, additional features, and better quality and
especially according to prices.
People having low income demand economic cell phones with greater
durability. So NOKIA is providing them cell phones according to their
demand like NOKIA 1100, NOKIA 1110, NOKIA 1112,NOKIA 1600 etc.
People with medium income demand cell phones with some other
additional features like high graphics, good sound quality & some other
utilities. So NOKIA is providing them cell phones according to their
demand like NOKIA 3110, NOKIA 6300, NOKIA 6610, NOKIA 7610 etc.
People having high income, demand best quality cell phones with all
new features and high resolution cameras. So NOKIA is providing them
cell phones according to their needs like NOKIA N Series (N73, N95
Marketing & Market Orientation:
Focus on satisfying customer needs and wants. NOKIA identified what
customer wants and tailor all the activities of the company to satisfy
those needs as efficiently as possible by proceeding advanced cell
NOKIA always focus on high quality to provide high customer
satisfaction and to compete with other brands. NOKIA has
internationally accredited research and development system, which
makes a valuable addition to company’s products in Pakistan. It has a
reputation of having lot of emphasis on quality.
And the only reason that why people always prefer NOKIA over other
cell phones is its best quality and durability. Competitors are providing
cell phones with latest features but those are not durable and their
quality decreases over time.
Environment monitoring:
NOKIA, every time has introduced some innovations, which always
gained a lot of encouragement and response from the consumers. It
has the history of making innovations at the right time. Its fact that
most of technologies in the cell phones, first introduced NOKIA,
especially credit goes to NOKIA for introducing Blackberry. Such
innovations are only possible because of effective environmental
monitoring. For such a great success, R & D department of NOKIA
make always unbeatable efforts.
People who like to have high quality, stylish and good looking cell
phones always prefer NOKIA. Because they are willing to buy the new
international lifestyle at a reasonable price.
Latest technology is used the in production of cell phones. R&D has
made it a Star in Pakistani telecommunication sector.
Financial resources:
Financially NOKIA is highly stable and utilizes best human resources to
enhance the efficiency of company. NOKIA has a huge and significant
budget every year for Advertisement, R & D, and especially for the
implementation of new ideas and innovations. NOKIA is investing a lot
for R&D purposes.

Human resources:
NOKIA top-level management is highly qualified, competent and
experienced that’s utilizing best human resources to enhance the
efficiency of company and to work for the goodwill of the company.

Brand value/image:
NOKIA is the leading company all over the world. It has created it’s
positive image by providing better customer satisfaction and maintain
high quality. NOKIA is providing unique offerings and customer value
by the distinctive and inimitable features of its cell phones.

Consumer brings decision process :

Advertising of NOKIA cell phones through electronic media and private
media is basic source of information.

Individual/intra personal Psychological factors:

NOKIA is a leading company in Pakistan and all over the world so that it
has good perception in eyes of its consumers. NOKIA innovative cell
phones and its attractive colorful phones has made impossible to
consumer to ignore it. Individuals are now willing to pay more to buy
not only a cell phone but a totally new life style

Attractive professional consulting:

The efforts and appreciation, which NOKIA has got from professionals
relating to cell phone industry, is adding to buyer confidence to buy
NOKIA cell phone. NOKIA runs effective campaigning to introduce its
high quality products to relating professionals. This strategy has not
made only first choice for all professionals but it has resulted into
greater placing in front of consumers.

Market Segmentation:

Market segmentation is customer oriented and consistent with

marketing concepts. In segmenting our focus is to identify the wants of
customer within a sub market and then decide if it is practical to
develop a marketing mix to satisfy those wants.
Similarly NOKIA also introduces a marketing mix in form of its cell
phones to satisfy the wants of those customers who share a similar set
of needs and wants. Therefore NOKIA attractive cell phones change
customers of split loyals and shifting loyals into hard-core loyals.
NOKIA introduced a range of cell phones * to satisfy the wants of those
customers who are in need of long lasting good looking phones at
affordable prices.

Demographic segmentation :
NOKIA makes the demographic segmentation on the bases of
Occupation &
Young’s from 15 to 24 who study in schools, colleges & universities
need cell phones remain in contact with their families and teachers.
Professionals, jobholders and businessmen with age 25 and above
need cell hones to accomplish their job related tasks.
According to gender population is divided into two groups Males &
Females. First men were in great need for cell phones but now because
the number of Female students has increased rapidly and more women
are working outside so that they also need cell phones according to
their needs.
Income wise Pakistani’s are divided into three groups for the use of cell
phones. People with low income, medium income and with high
income. People having low income demand economic cell phones with
greater durability. People with medium income demand cell phones
with some other additional features like high graphics, good sound
quality & some other utilities. People having high income, demand best
quality cell phones with all new features and high resolution cameras.
Geographic Segmentation:
Geographically, NOKIA divides the customers by two facts
City or Metro size
Almost all people in all the cities and in all Urban, Suburban and Rural
areas need cell phones according to their income, education and
People in the Urban areas with high incomes need high tech luxury

Psychographic Segmentation:
For this type of market segmentation NOKIA consider
Social Classes
Lifestyle &
People belonging to lower class demand economic cell phones with
great durability. People belonging to middle class demand cell phones
with some other additional features like high graphics, good sound
quality & some other utilities because they have better resources.
People belonging to upper class don’t bother about price so they
demand luxury cell phones, with best quality, all new features and high
resolution cameras.
Simple people like simple sets because they just need to make and
listen phone calls.
People with stylish lifestyle need stylish and smart cell phones.

Behavioral Segmentation:
NOKIA divide its buyers into different groups on the basis of
Readiness Stage
Loyalty Status
User Rates &
Readiness means awareness and being informed. So consumers who
are aware of the new technology and the benefits of this technology
are ready to buy superior cell phones like NOKIA.
People, who are brand loyal they always prefer good brand names.
People, who are heavy user of cell phones they always prefer durable
cell phones.
People, who bother about benefits from product, always demand high quality, convenient
and economic cell phones with high speed. Who want to capture their memorable
moments they look for cell phones with cameras.
Target Market:
NOKIA covers the whole market but with differentiated cell phones for
different market segments. So we can say that NOKIA approaches
“Differentiated marketing” to serve all the segments according to
their needs in different segments. As we have mentioned above that
NOKIA divides the market into different segments on the bases of their
income levels, education, profession and social status.
Therefore NOKIA has selected the whole portion of market as their
target market that it serves with differentiated cell phones. NOKIA
have a wide variety of cell phones and other relevant accessories
pricing from low to high. So they are catering almost
All income groups
NOKIA customers are
People from Urban & Rural areas
People belonging to Lower, Middle & Upper Class
New Generation
Quality Conscious Customers.

Positioning Strategy:

NOKIA has positioned itself as a “Global Leader” in comparison to its

In Pakistan NOKIA has mapped itself in the minds of the customers as
New Technology based
With new features
High quality &
Durable cell phones at reasonable prices.
In Pakistan, NOKIA is perceived to some extent more expansive than
other competing brands. But other brands due to their low quality and
low durability are unable to compete. Therefore NOKIA is
understandably positioned as first choice of customers and it justifies
its prices through quality and value that it gives to its customers.
NOKIA image has strengthened much more due to advanced cell
The name, brand image and product quality also make it easy for
NOKIA to position itself in the minds of the customers in the best way.
Marketing Mix:
NOKIA’s marketing objectives are based on the following marketing
mix strategies:
• Product
• Price
• Place
• Promotion.

Product :
NOKIA is providing Cell Phones in different technologies, styles, colors,
shapes, prices with additional features, high quality and durability. Its
core benefits is to provide communication facility as mentioned in its
“Connecting People” as well as some other entertainment features like
internal cameras for capturing precious moments, music & video
player etc.
Nokia is providing cell phones with all accessories like
Extra Batteries
Extra Casings
Hands Free
Data Cable &
Software CD

NOKIA has added many features in its cell phones like
Good display
More functional keys
High resolution cameras like N73 with 3.2 Mega Pixel Camera
WOW music quality
Light weight
Good & soft keypads according to phone sizes
UMTS supports
Designs of cell phones are very attractive these represent the actual
purpose and functionality of these cell phones. Designs are according
to the requirements of the customers like
Light weight &

Quality is at the heart of Nokia’s brand promise. They want their
customers to know that Nokia is the best quality company in the
Their goal is to have the industry’s best products and services, most
loyal customers and most efficient operational mode.
According to Nokia
We believe that quality is about meeting and exceeding customer
expectations. At Nokia, we view quality holistically and as an integral
part of business management. The quality of products and
customer experiences depends on the quality of processes, which
in turn is tied to the quality of management .

Nokia’s key quality targets are:

For Nokia to be number one in customer and consumer loyalty

For Nokia to be number one in product leadership

For Nokia to be number one in operational excellence

The quality and reliability of their products and services are among the
most important factors driving customer satisfaction and loyalty.
Designing good quality products begins with understanding customer
requirements and creating the best user experience. The whole chain,
from suppliers through to R&D, operations, sales and distribution to
customers, impacts the end-result – everybody in the chain has a role
to play in achieving quality.
Their products and customer experiences are the results of our
everyday processes. Process management means finding the simplest
way of operating, in order to create customer value in a lean manner.
Quality in management is vital for leveraging innovations globally and
improving productivity in general. Their approach to this is platform
thinking, process management and combining fact-based management
with values-based leadership. They have developed a key framework
for improvement at Nokia, which we call the 'Self-Regulating
Management System'. It's about management practices that allow us
to run our business in a consistent, effective and fact-based manner.
Product Classification:

Consumer Product:
A product, which is used by ultimate consumer, is a consumer product.
Warid connections are consumer product

Shopping Product:
It’s a Shopping type of consumer product because cell phones are not
purchased very frequently that’s why people always make comparison
while purchasing cell phones among different brands. Consumer
compares Nokia cell phones with those of competitors on following
Warranty &
Brand reputation.
Nokia and the resellers both advertise the Nokia cell phones.

Product Line:
Cell phones are only product that NOKIA offers with all its accessories.
It serves its offerings in the telecommunication sector. Nokia is using
both the line stretching and line filling techniques to enhance its
product lines.
Nokia is adding high quality cell phones with distinctive features at
high prices and at the same time it’s providing different varieties in cell
phones with improved versions within existing price ranges.
So we can say that Nokia is making line extensions on the bases of
styles, features, colors and price etc.

Product Item:
Product item is a specific version of a product that can be designated
as a distinct offer among an organization’s product.
NOKIA cell phones also categorized different product items having
similar physical and distinctive features. NOKIA objective is to induce
up- selling; therefore NOKIA introduced cell phones of “N-SERIES”
with the premium quality of cell phone camera lens. NOKIA introduced
“L-AMOUR Collection” of cell phones and the most distinctive
feature of this series is that they are the most stylish phones in the
market which sharply attract the customers. NOKIA also introduced
“N-GAGE” phones to fulfill the need of video gamers to play quality
games on the NOKIA “N-GAGE” cell phones. The key features of
“N-GAGE” cell phones are:

• Network Multiplayer Game-play

• Unique Global Identity
• Rankings and Tournaments
• Chat & Message Boards
• Friends List
• Player Profile Pages
• Exclusive Downloads
• News Alert System.

Product Mix Strategies:

Product Mix Width:

Number of product lines an organization offer. NOKIA only deals in cell
phones therefore it has only one product line that consists of cell

Product line depth:

Number of product items in a product line. NOKIA has introduced a lot
of different cell phones in the market within the product items like
L-AMOUR Collection
N-GAGE cell phones and many other models.

Product Life Cycle (PLC):

In its product life cycle in Pakistan Nokia is at the stage of “Maturity”
because it has penetrated very well and now it is enjoying higher sales &
profits. Nokia is enjoying higher profits because of
Increased rate of sales
Wider distribution
Stable prices
High quality
Greater reliability &
Adding advances features.

Branding Strategies of NOKIA:

Brand Name:
Today, we know and use the world’s most famous brand name
“NOKIA” in uniform letters. It may appear in different sizes and colors
but the basic shape of the five lettered name is instantly recognizable.
Its easy to say, recognize and remember. NOKIA has positioned its
brand name strongly in the minds of the customers on the bases of
different attributes, benefits and values that it provide to its
customers. That’s why the brand name “NOKIA” has become a
symbol of quality and trust for people. Whenever people look for
reliable cell phones they always call “NOKIA”.
Nokia is packaging its cell phones in more sophisticated way. Its packaging
provide greater safety of cell phones while transportation and displaying in
the stores. All the parts are covered separately in plastic sheets in the box.
The size and shape of boxes is very attractive with its brand logo “NOKIA”
and slogan “Connecting People”. Graphics on the box conveying its message,
make the packaging more attractive & worth able.

NOKIA has descriptive label on its every cell phone box showing product
specification and distinctive features in that cell phone model.

Brand equity:
NOKIA is a global leader and its brand name NOKIA is highly valued. People
are well aware of NOKIA just because of value that it gives to its customers
and differentiate its brand name from those of its competitors. That’s why the
NOKIA customers are very loyal to its brand name and this loyalty creates a
profitable customer relationship for the company.

Branding for market saturation:

Under a uniform global accepted, recognized and well known brand NOKIA is
establishing different values and images in the minds of its customers and
grabbing the market share of its competitors.


Pricing Strategies of NOKIA:

NOKIA is a leading company in cell phone industry, which is setting a
reasonable price for quality. It has created good image in the minds of
customers. The company is setting a brand image by providing cell phones at
reasonable prices with best quality that justifies its prices. Nokia phones are
easily accessible by people with average incomes because it has segmented
the market according to their income levels. Nokia provides cell phones at
different level of prices with different features so that everybody could enjoy
Nokia according to his income level.

Price determination factors:

There are certain factors involved in the price determination of NOKIA cell
phones. These factors are as follows:

• Production cost
• Design cost
• Nature of the market and demand
• Advertising cost.

Value Based Pricing:

Nokia charges the prices based on the buyers perception or we can say
that Nokia charges prices according to market demand.
Value Pricing Strategy:
Nokia is providing best quality cell phones with latest technology and
features at fair prices as compared to its competitors.
Although NOKIA has set high quality standards and charge premium price to
the customers but it is still affordable because it cater customers of all
income levels.
Initial price:
Setting the initial prices so that total revenue is as large as possible relative
to total cost. NOKIA is following the policy of maximization of profits by
charging initially maximum price but affordable price for the customers then
it lower down its prices after some time
Market share:
NOKIA cell phones’ sales as a percentage of total sales for that industry are
more than any competitor’s sales and NOKIA’s sales are more significant
relative to others.

Market Share

Sony Ericsson

NOKIA Faces Very Low Price Elasticity of Demand:

The demand of NOKIA cell phones is less elastic because people are brand
loyal of Nokia further NOKIA prices are stable. Many of the customers are
brand conscious and NOKIA establishes its cell phones prices keeping in mind
all the income levels of its customers. Therefore NOKIA offers a complete
range of cell phones from low to high prices. And still NOKIA makes lot of
price changes to accommodate its customers.

Non-Price Competition:
NOKIA is trying to shift their demand curve to the right by means of product
differentiation. “N-series” and other elements of marketing mix.

Some Other Pricing Strategies:

NOKIA Company competes on price or non price elements of marketing mix.
One price strategy is followed by NOKIA as same price is charged for all
similar customers who buy same product items. It means Nokia don’t use the
concept of Dynamic Prices.

Market entry strategies For New Nokia Cell Phones:

When NOKIA introduced N-series cell phones. They must have decided
whether to adopt a skimming or penetration pricing strategy.

Skimming pricing:
Nokia when introduces any cell phone in N-series or other high quality cell
phones with additional features and high resolution cameras it charges high
prices because it wants to skim the maximum revenues. The prices for such a
type of cell phones are high in relation to the target market’s expected price
range. Only most interested people could pay for N-series cell phones. After
skimming maximum revenues Nokia comes to market penetration.

Differential advantage:
There are a lot of Points of Difference between NOKIA cell phones and
those of competitors. That’s why prices of Nokia cell phones are not much affected by
the competitors.

NOKIA involves dealers and retailers to move product from
producer to consumer. The dealers consist of “Authorized
Dealers” and other retailers. The authorized dealers of NOKIA in
Pakistan are :

• Mobile Zone
• Chimera
• United Mobile Phones.

The NOKIA has an indirect channel of distribution i.e.

Producer -----------wholesaler ---------retailer---------consumers

Conventional Marketing Channel:

NOKIA uses conventional marketing channel which comprises an
independent producer, wholesaler(s) and retailer(s). NOKIA uses
this channel to improve operating efficiency and marketing
Vertical marketing system of NOKIA involves traditional indirect
code i.e.,

Intensive distribution:
In intensive distribution, a producer sells its product through
every available outlet in the market where a consumer could
easily reach. So the strategy of NOKIA is also intensive
distribution with all outlets through specific dealers and

Gross Margin to Motivate Dealers & Retailers:

NOKIA cell phones’ net price is lower than retail price so that it
has high gross Margin for the retailers. It gives specific
importance to its retailers and dealers as it now smooth the
progress of selling NOKIA cell phones by those intermediaries
giving gross margin and advertising by NOKIA and its
Other Intermediaries:
Transportation firms are other channel intermediaries who
perform their functions in the distribution of NOKIA cell phones to
the authorized dealers and retailers.
Inventory Control:
NOKIA follows the inventory control system. It satisfies the order
fulfillment expectations of customer through managing inventory
properly. NOKIA determines the inventory size by balancing costs
and desired level of customer service.

Impersonal, one-way mass communication about a product or
organization that is paid for by an identified marketer.
NOKIA uses the following advertising media to promote its sale
Billboard &
Internet is the most comprehensive collection of all
NOKIA cell phones. It presents different sections including
product information, NOKIA club etc.
Allocation of Budget For Advertisement:
Nokia allocates heavy budget every year for advertisement through TV
channels, Newspapers, Magazines & Billboards.
Use of Pull Strategy For Promotion:
NOKIA uses Pull Strategy which involves NOKIA using advertising and
promotion to persuade customers to ask intermediaries/dealers for the
NOKIA cell phones. This strategy is more appropriate because NOKIA is
the well known leading brand.
Competitive Advertising:
This is a kind of selective demand advertising. It puts one brand
against the rest of the market. NOKIA is competing for market
share with several other brands’ products. NOKIA by using
competitive advertising emphasizes on the special features and
differential advantages of its cell phones, from the cell phones of
other brands.
Indirect-action Advertising:
It is a part of product advertising. It stimulates demand over a longer
period of time. Indirect-Action Advertising is also designed by the
NOKIA to stimulate demand of cell phones over a longer period of time.
This is intended to inform and remind consumers about the existence
of NOKIA and to point out its benefits.
Co Branding With Mobilink & Warid:
Nokia has been doing co-marketing with Mobilink & Warid to promote
its cell phones. First it started with Mobilink that people who will buy
Jazz connection they will get Nokia 3310 on discount price as
compared to the market price. Then It offered Nokia1100 on discount
price with Warid connection. These were co efforts to promote Jazz,
Warid & Nokia. In both the cases the Nokia and the communication
service providing companies were advertising as well as promoting to
each other.

SWORT Analysis:
(Strengths, Weaknesses, Opportunities, Threats):

• NOKIA has an excellent Brand Name
• NOKIA has positioned itself in the minds of customers
very well as compared to the competitors
• Nokia introduces every coming technology in the
market before the competitors.
• NOKIA has captured the whole market according to the
• The cell phones are available in all Price Ranges.
• NOKIA provides all the features that people demand.
• NOKIA provides best Quality & Reliability.
• The cell phones are available in all those retail points
where target customers can easily reach.
• Collective efforts of NOKIA, its dealers & retailers
promote it in the best way.

• NOKIA packing is very safe and attractive for the


• R & D department of NOKIA is very strong. That

provides latest research and development in order to
walk step by step with the market and market changes.

• To some extent the prices of NOKIA cell phones are
relatively higher than those of its competitors.
• Nokia don’t provide some additional features that its
competitors provide regarding multimedia purpose.

• It has the more opportunity to promote its cell phones
very well than its competitors due to the best brand
image factors.
• Nokia can add all the features that its competitors
provide regarding multimedia purposes.
• Nokia can also focus on remote areas; they have an
opportunity to advertise their product properly in the
rural areas.
• Increasing population is a bright opportunity for Nokia
to capture this opportunity in future.
• Pakistani Govt. is now focusing more on telecom sector
and also communication needs are increasing day by
day so Nokia should focus on this perspective.

• There are a large number of international competitors
for NOKIA.
• Customers may purchase other brands due to the high
prices of NOKIA.
• Some companies are providing cell phones in the
market; those are just the copy of NOKIA cell phones
with same logo, but with low quality and low prices that
may affect the brand image of NOKIA.

We took help form the book, and from the students which already have
studied this course
All the data available in this report is either collected from web sites,
books or self-made; and from lectures given by our beloved teacher