INTRODUCTION Nokia Corporation is a Finnish multinational communications corporation that is headquartered in Keilaniemi, Espoo, a city neighbouring Finland's capital

Helsinki. Nokia is engaged in the manufacturing of mobile devices and in converging Internet and communications industries, with over 132,000 employees in 120 countries, sales in more than 150 countries and global annual revenue of over 42 billion and operating profit of 2 billion as of 2010. It is the world's largest manufacturer of mobile phones: its global device market share was 23% in the second quarter 2011. Nokia's estimated share of the converged mobile device market was 31% in the fourth quarter, compared with 38% in the third quarter 2010. Nokia produces mobile devices for every major market segment and protocol, including GSM, CDMA, and W-CDMA (UMTS). Nokia offers Internet services such as applications, games, music, maps, media and messaging through its Ovi platform. Nokia's joint venture with Siemens, Nokia Siemens Networks produces telecommunications network equipment, solutions and services. Nokia is also engaged in providing free digital map information and navigation services through its wholly owned subsidiary Navteq. Nokia has sites for research and development, manufacture and sales in several countries; as of December 2010, Nokia had R&D presence in 16 countries and employed 35,870 people in research and development, representing approximately 27% of the group's total workforce. The Nokia Research Center, founded in 1986, is Nokia's industrial research unit consisting of about 500 researchers, engineers and scientists; it has sites in seven countries: Finland, China, India, Kenya, Switzerland, the United Kingdom and the United States. Besides its research centers, in 2001 Nokia founded (and owns) INdT Nokia Institute of Technology, a R&D institute located in Brazil. Nokia operates a total of 9 manufacturing facilities located at Salo, Finland; Manaus, Brazil; Cluj, Romania; Beijing and Dongguan, China; Komrom, Hungary; Chennai, India; Reynosa, Mexico; and Masan, South Korea. Nokia's factory in Cluj was seized by the Romanian government in November 2011 to prevent a sale of the assets, after Nokia had accumulated a tax liability of US$ 10 million. Nokia's industrial design department is headquartered in Soho in London, UK with significant satellite offices in Helsinki, Finland and Calabasas, California in the US. Nokia is a public limited-liability company listed on the Helsinki, Frankfurt, and New York stock exchanges. Nokia plays a very large role in the economy of Finland; it is by far the largest Finnish company, accounting for about a third of the market capitalization of the Helsinki Stock Exchange (OMX Helsinki) as of 2007, a unique situation for an industrialized country. It is an important employer in Finland and several small companies have grown into large ones as its partners and subcontractors. In 2009, Nokia contributed 1.6% to Finland's GDP, and accounted for about 16% of Finland's exports in 2006.

The Nokia brand, valued at $25 billion, is listed as the 14th most valuable global brand in the Interbrand/BusinessWeek Best Global Brands list of 2011.It is the 14th ranked brand corporation in Europe (as of 2011), the 8th most admirable Network and Other Communications Equipment company worldwide in Fortune's World's Most Admired Companies list of 2011 and the world's 143th largest company as measured by revenue in Fortune Global 500 list of 2011. In July 2010, Nokia reported a drop in profits by 40%, which turned into an operating loss of EUR 487 million in Q2 2011.In the global smartphone rivalry, Nokia held the 3rd place in 2Q2011, trailing behind Samsung and Apple. On 11 February 2011, Nokia announced a partnership with Microsoft where all future Nokia smartphones will be powered by the Windows Phone 7 (WP7) operating system. On 26 October 2011, Nokia unveiled its first WP7.5 powered handsets Lumia 710 and 800.

History
Pre-telecommunications era

Fredrik Idestam, Statesman Leo founder of Nokia. Mechelin, cofounder of Nokia. The predecessors of the modern Nokia were the Nokia Company (Nokia Aktiebolag), Finnish Rubber Works Ltd (Suomen Gummitehdas Oy) and Finnish Cable Works Ltd (Suomen Kaapelitehdas Oy). Nokia's history starts in 1865 when mining engineer Fredrik Idestam established a groundwood pulp mill on the banks of the Tammerkoski rapids in the town of Tampere, in southwestern Finland in Russian Empire and started manufacturing paper. In 1868, Idestam built a second mill near the town of Nokia, fifteen kilometres (nine miles) west of Tampere by the Nokianvirta river, which had better resources for hydropower production. In 1871, Idestam, with the help of his close friend statesman Leo Mechelin, renamed and transformed his firm into a share company, thereby founding the Nokia Company, the name it is still known by today.

Toward the end of the 19th century, Mechelin's wishes to expand into the electricity business were at first thwarted by Idestam's opposition. However, Idestam's retirement from the management of the company in 1896 allowed Mechelin to become the company's chairman (from 1898 until 1914) and sell most shareholders on his plans, thus realizing his vision. In 1902, Nokia added electricity generation to its business activities.[

[edit] Industrial conglomerate

In 1898, Eduard Poln founded Finnish Rubber Works, manufacturer of galoshes and other rubber products, which later became Nokia's rubber business. At the beginning of the 20th century, Finnish Rubber Works established its factories near the town of Nokia and they began using Nokia as its product brand. In 1912, Arvid Wickstrm founded Finnish Cable Works, producer of telephone, telegraph and electrical cables and the foundation of Nokia's cable and electronics businesses. At the end of the 1910s, shortly after World War I, the Nokia Company was nearing bankruptcy. To ensure the continuation of electricity supply from Nokia's generators, Finnish Rubber Works acquired the business of the insolvent company. In 1922, Finnish Rubber Works acquired Finnish Cable Works. In 1937, Verner Weckman, a sport wrestler and Finland's first Olympic Gold medalist, became President of Finnish Cable Works, after 16 years as its Technical Director. After World War II, Finnish Cable Works supplied cables to the Soviet Union as part of Finland's war reparations. This gave the company a good foothold for later trade. The three companies, which had been jointly owned since 1922, were merged to form a new industrial conglomerate, Nokia Corporation in 1967 and paved the way for Nokia's future as a global corporation. The new company was involved in many industries, producing at one time or another paper products, car and bicycle tires, footwear (including rubber boots), communications cables, televisions and other consumer electronics, personal computers, electricity generation machinery, robotics, capacitors, military communications and equipment (such as the SANLA M/90 device and the M61 gas mask for the Finnish Army), plastics, aluminium and chemicals. Each business unit had its own director who reported to the first Nokia Corporation President, Bjrn Westerlund. As the president of the Finnish Cable Works, he had been responsible for setting up the companys first electronics department in 1960, sowing the seeds of Nokias future in telecommunications. Eventually, the company decided to leave consumer electronics behind in the 1990s and focused solely on the fastest growing segments in telecommunications. Nokian Tyres, manufacturer of tires, split from Nokia Corporation to form its own company in 1988 and two years later Nokian Footwear, manufacturer of rubber boots, was founded During the rest of the 1990s, Nokia divested itself of all of its non-telecommunications businesses.

Telecommunications era
The seeds of the current incarnation of Nokia were planted with the founding of the electronics section of the cable division in 1960 and the production of its first electronic

device in 1962: a pulse analyzer designed for use in nuclear power plants. In the 1967 fusion, that section was separated into its own division, and began manufacturing telecommunications equipment. A key CEO and subsequent Chairman of the Board was vuorineuvos Bjrn "Nalle" Westerlund (19122009), who founded the electronics department and let it run at a loss for 15 years.

Networking equipment
In the 1970s, Nokia became more involved in the telecommunications industry by developing the Nokia DX 200, a digital switch for telephone exchanges. The DX 200 became the workhorse of the network equipment division. Its modular and flexible architecture enabled it to be developed into various switching products. In 1984, development of a version of the exchange for the Nordic Mobile Telephony network was started. For a while in the 1970s, Nokia's network equipment production was separated into Telefenno, a company jointly owned by the parent corporation and by a company owned by the Finnish state. In 1987, the state sold its shares to Nokia and in 1992 the name was changed to Nokia Telecommunications. In the 1970s and 1980s, Nokia developed the Sanomalaitejrjestelm ("Message device system"), a digital, portable and encrypted text-based communications device for the Finnish Defence Forces. The current main unit used by the Defence Forces is the Sanomalaite M/90 (SANLA M/90).

First mobile phones

The Mobira Cityman 150, Nokia's NMT-900 mobile phone from 1989 (left), compared to the Nokia 1100 from 2003.The Mobira Cityman line was launched in 1987.

The technologies that preceded modern cellular mobile telephony systems were the various "0G" pre-cellular mobile radio telephony standards. Nokia had been producing commercial and some military mobile radio communications technology since the 1960s, although this part of the company was sold some time before the later company rationalization. Since 1964, Nokia had developed VHF radio simultaneously with Salora Oy. In 1966, Nokia and Salora started developing the ARP standard (which stands for Autoradiopuhelin, or car radio phone in English), a car-based mobile radio telephony system and the first commercially operated public mobile phone network in Finland. It went online in 1971 and offered 100% coverage in 1978. In 1979, the merger of Nokia and Salora resulted in the establishment of Mobira Oy. Mobira began developing mobile phones for the NMT (Nordic Mobile Telephony) network standard, the first-generation, first fully automatic cellular phone system that went online in 1981. In 1982, Mobira introduced its first car phone, the Mobira Senator for NMT-450 networks. Nokia bought Salora Oy in 1984 and now owning 100% of the company, changed the company's telecommunications branch name to Nokia-Mobira Oy. The Mobira Talkman, launched in 1984, was one of the world's first transportable phones. In 1987, Nokia introduced one of the world's first handheld phones, the Mobira Cityman 900 for NMT900 networks (which, compared to NMT-450, offered a better signal, yet a shorter roam). While the Mobira Senator of 1982 had weighed 9.8 kg (22 lb) and the Talkman just under 5 kg (11 lb), the Mobira Cityman weighed only 800 g (28 oz) with the battery and had a price tag of 24,000 Finnish marks (approximately 4,560).Despite the high price, the first phones were almost snatched from the sales assistants hands. Initially, the mobile phone was a "yuppie" product and a status symbol. Nokia's mobile phones got a big publicity boost in 1987, when Soviet leader Mikhail Gorbachev was pictured using a Mobira Cityman to make a call from Helsinki to his communications minister in Moscow. This led to the phone's nickname of the "Gorba". In 1988, Jorma Nieminen, resigning from the post of CEO of the mobile phone unit, along with two other employees from the unit, started a notable mobile phone company of their own, Benefon Oy (since renamed to GeoSentric). One year later, Nokia-Mobira Oy became Nokia Mobile Phones.

Involvement in GSM
Nokia was one of the key developers of GSM (Global System for Mobile Communications), the second-generation mobile technology which could carry data as well as voice traffic. NMT (Nordic Mobile Telephony), the world's first mobile telephony standard that enabled international roaming, provided valuable experience for Nokia for its close participation in developing GSM, which was adopted in 1987 as the new European standard for digital mobile technology.

Nokia delivered its first GSM network to the Finnish operator Radiolinja in 1989. The world's first commercial GSM call was made on July 1, 1991 in Helsinki, Finland over a Nokia-supplied network, by then Prime Minister of Finland Harri Holkeri, using a prototype Nokia GSM phone. In 1992, the first GSM phone, the Nokia 1011, was launched. The model number refers to its launch date, 10 November.The Nokia 1011 did not yet employ Nokia's characteristic ringtone, the Nokia tune. It was introduced as a ringtone in 1994 with the Nokia 2100 series. GSM's high-quality voice calls, easy international roaming and support for new services like text messaging (SMS) laid the foundations for a worldwide boom in mobile phone use.GSM came to dominate the world of mobile telephony in the 1990s, in mid-2008 accounting for about three billion mobile telephone subscribers in the world, with more than 700 mobile operators across 218 countries and territories. New connections are added at the rate of 15 per second, or 1.3 million per day.

Recent history

Product releases

Reduction in size of Nokia mobile phones

Evolution of the Nokia Communicator. Models 9000, 9110, 9210, 9300 and 9500 shown. Nokia released its first touch screen phone, the Nokia 7710, which was a huge success. In May 2007, Nokia announced that its Nokia 1100 handset, launched in 2003, with over 200 million units shipped, was the best-selling mobile phone of all time and the world's top-selling consumer electronics product. In November 2007, Nokia announced and released the Nokia N82, its first Nseries phone with Xenon flash. At the Nokia World conference in December 2007, Nokia announced their "Comes With Music" program:

Nokia device buyers are to receive a year of complimentary access to music downloads. The service became commercially available in the second half of 2008. Nokia Productions was the first ever mobile filmmaking project directed by Spike Lee. Work began in April 2008, and the film premiered in October 2008. In 2008, Nokia released the Nokia E71 which was marketed to directly compete with the other BlackBerry-type devices offering a full "qwerty" keyboard and cheaper prices. Nokia announced in August 2009 that they will be selling a high-end Windows-based mini laptop called the Nokia Booklet 3G. On September 2, 2009, Nokia launched two new music and social networking phones, the X6 and X3. The Nokia X6 features 32GB of on-board memory with a 3.2" finger touch interface and comes with a music playback time of 35 hours. The Nokia X3 is a first series 40 Ovi Store-enabled device. The X3 is a music device that comes with stereo speakers, built-in FM radio, and a 3.2 megapixel camera. On September 10, 2009, Nokia unveiled a new handset, the 7705 Twist, a phone with a sports square shape that swivels open to reveal a full QWERTY keypad.The new mobile, which will be available exclusively through Verizon Wireless, features a 3 megapixel camera, web browsing, voice commands and weighs around 3.44 ounces (98 g).

Plant movements
Nokia opened its Komrom, Hungary mobile phone factory on May 5, 2000. In March 2007, Nokia signed a memorandum with Cluj County Council, Romania to open a new plant near the city in Jucu commune. Moving the production from the Bochum, Germany factory to a low wage country created an uproar in Germany.[78][79] Nokia recently moved its North American Headquarters to Sunnyvale.

[edit] Reorganizations
In April 2003, the troubles of the networks equipment division caused the corporation to resort to similar streamlining practices on that side, including layoffs and organizational restructuring. This diminished Nokia's public image in Finland, and produced a number of court cases and an episode of a documentary television show critical of Nokia. On February 2006, Nokia and Sanyo announced a memorandum of understanding to create a joint venture addressing the CDMA handset business. But in June, they announced ending negotiations without agreement. Nokia also stated its decision to pull out of CDMA research and development, to continue CDMA business in selected markets. In June 2006, Jorma Ollila left his position as CEO to become the chairman of Royal Dutch Shell and to give way for Olli-Pekka Kallasvuo.

In May 2008, Nokia announced on their annual stockholder meeting that they want to shift to the Internet business as a whole. Nokia no longer wants to be seen as the telephone company. Google, Apple and Microsoft are not seen as natural competition for their new image but they are considered as major important players to deal with. In November 2008, Nokia announced it was ceasing mobile phone distribution in Japan. Following early December, distribution of Nokia E71 is cancelled, both from NTT docomo and SoftBank Mobile. Nokia Japan retains global research & development programs, sourcing business, and an MVNO venture of Vertu luxury phones, using docomo's telecommunications network.

Acquisitions
For a more comprehensive list, see List of acquisitions by Nokia.

The Nokia E55 from the business segment of the Eseries range On September 22, 2003, Nokia acquired Sega.com, a branch of Sega which became the major basis to develop the Nokia N-Gage device On November 16, 2005, Nokia and Intellisync Corporation, a provider of data and PIM synchronization software, signed a definitive agreement for Nokia to acquire Intellisync. Nokia completed the acquisition on February 10, 2006. On June 19, 2006, Nokia and Siemens AG announced the companies would merge their mobile and fixed-line phone network equipment businesses to create one of the world's largest network firms, Nokia Siemens Networks.Each company has a 50% stake in the infrastructure company, and it is headquartered in Espoo, Finland. The companies predicted annual sales of 16 bn and cost savings of 1.5 bn a year by 2010. About 20,000 Nokia employees were transferred to this new company.

On August 8, 2006, Nokia and Loudeye Corp. announced that they had signed an agreement for Nokia to acquire online music distributor Loudeye Corporation for approximately US $60 million. The company has been developing this into an online music service in the hope of using it to generate handset sales. The service, launched on August 29, 2007, is aimed to rival iTunes. Nokia completed the acquisition on October 16, 2006. In July 2007, Nokia acquired all assets of Twango, the comprehensive media sharing solution for organizing and sharing photos, videos and other personal media.[98][99] In September 2007, Nokia announced its intention to acquire Enpocket, a supplier of mobile advertising technology and services. In October 2007, pending shareholder and regulatory approval, Nokia bought Navteq, a U.S.-based supplier of digital mapping data, for a price of $8.1 billion.Nokia finalized the acquisition on July 10, 2008. In September, 2008, Nokia acquired OZ Communications, a privately held company with approximately 220 employees headquartered in Montreal, Canada. On July 24, 2009, Nokia announced that it will acquire certain assets of cellity, a privately owned mobile software company which employs 14 people in Hamburg, Germany. The acquisition of cellity was completed on August 5, 2009. On September 11, 2009, Nokia announced the acquisition of "certain assets of Plum Ventures, Inc, a privately held company which employed approximately 10 people with main offices in Boston, Massachusetts. Plum will complement Nokias Social Location services".[ On March 28, 2010, Nokia announced the acquisition of Novarra, the mobile web browser firm from Chicago. Terms of the deal were not disclosed.Novarra is a privately held company based in Chicago, IL and provider of a mobile browser and service platform and has more than 100 employees. On April 10, 2010, Nokia announced its acquisition of MetaCarta, whose technology was planned to be used in the area of local search, particularly involving location and other services.

Operating systems

Photograph taken using Nokia N82 The Nokia N8 smartphone is the world's first Symbian^3 device, and the first camera phone to ever feature a 12 megapixel autofocus lens. The first Nseries device, the N90, utilised the older Symbian OS 8.1 mobile operating system, as did the N70. Subsequently Nokia switched to using SymbianOS 9 for all later Nseries devices (except the N72, which was based on the N70). Newer Nseries devices incorporate newer revisions of SymbianOS 9 that include Feature Packs. The N800, N810 and N900 are as of July 2010 the only Nseries devices to not use Symbian OS. They use the Linux-based Maemo. Nokia stated that Maemo would be developed alongside Symbian.Maemo has since (Maemo "6" and beyond) merged with Intel's Moblin, and become MeeGo, which will continue to be developed for mobile devices. The Nokia N8 is the first device to function on the Symbian^3 mobile operating system.Nokia revealed that the N8 will be the last device in its flagship N-series devices to ship with Symbian OS.[111][112] Instead, Nokia will use Microsoft Windows Phone 7 for its high-end flagship devices, and revealed the Nokia N9 will function on the MeeGo mobile operating system.

"Alliance" with Microsoft

On 11 February 2011, Nokia's CEO Stephen Elop, a former Microsoft employee, unveiled a new strategic alliance with Microsoft, and announced it would replace Symbian and MeeGo with Windows Phone 7. Nokia will, however, retain Symbian for use in mid-to-low-end devices. It will also invest into the Series 40 platform and release a single MeeGo product in 2011.[ This news has not been well-received by consumers, and has contributed to the decline in the stock price by 11%. As part of the restructuring plan, Nokia plan to reduce spending on research and development, instead refocusing on customising and enhancing the software line for Windows Phone 7. Nokia's "applications and content store" (Ovi) will be integrated into the Windows Phone Marketplace, while Nokia Maps will be at the heart of Microsoft's Bing and AdCenter. Microsoft will provide developer tools to Nokia, to replace the Qt framework which will not be supported by Windows Phone 7 devices. Symbian is now described as a "franchise platform" with Nokia planning to sell 150 million Symbian devices into the future. MeeGo emphasis will be on longer-term exploration with plans to ship "a MeeGo-related product" later this year. Microsoft's search engine, Bing, will be the search engine for all Nokia phones. Nokia also will get some level of customisation on WP7.[ After this announcement, Nokia's share price fell about 14%, its biggest drop since July 2009. As Nokia is the largest mobile phone manufacturer worldwide it is suggested the alliance will make Microsoft's Windows Phone 7 a stronger contender against Android and iOS. In June 2011, Nokia was overtaken by Apple as the world's biggest smartphone maker by volume. In August 2011, Chris Weber, head of Nokia's subsidiary in the U.S., stated "The reality is if we are not successful with Windows Phone, it doesnt matter what we do (elsewhere)." He further added "North America is a priority for Nokia (...) because it is a key market for Microsoft."

The term marketing mix was coined in the early 1950s by Neil Borden in his American Marketing Association presidential address. This is one of the preliminary knowledge every marketer must have and is considered to be the basics of every marketing theory, which emerged henceforth. The basic major marketing management decisions can be classified in one of the following four categories, namely Product, Price, Place (distribution) and Promotion. Product: It is the tangible object or an intangible service that is getting marketed through the program. Tangible products may be items like consumer goods (Toothpaste, Soaps, Shampoos) or consumer durables (Watches, IPods). Intangible products are service based like the tourism industry and information technology based services or codes-based products like cellphone load and credits. Product design which leads to the product attributes is the most important factor. However packaging also needs to be taken into consideration while deciding this factor. Every product is subject to a life-cycle including a growth phase followed by an eventual period of decline as the product approaches market saturation. To retain its competitiveness in the market, continuous product extensions though innovation and thus differentiation is required and is one of the strategies to differentiate a product from its competitors.

Price: The price is the simply amount a customer pays for the product. If the price outweigh the perceived benefits for an individual, the perceived value of the offering will be low and it will be unlikely to be adopted, but if the benefits are perceived as greater than their costs, chances of trial and adoption of the product is much greater. Place: Place represents the location where a product can be purchased. It is often referred to as the distribution channel. This may include any physical store (supermarket, departmental stores) as well as virtual stores (e-markets and e-malls) on the Internet. This is crucial as this provides the place utility to the consumer, which often becomes a deciding factor for the purchase of many products across multiple product categories. Promotion: This represents all of the communications that a marketer may use in the marketplace to increase awareness about the product and its benefits to the target segment. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of crossover occurs when promotion uses the four principal elements together (e.g. in film promotion). Sales staff often play a major role in promotion of a product.

4 Ps of NOKIA

PRICE: The price is the simply amount a customer pays for the product. If the price outweigh the perceived benefits for an individual, the perceived value of the offering will be low and it will be unlikely to be adopted, but if the benefits are perceived as greater than their costs, chances of trial and adoption of the product is much greater. By assessing what people can spend for some products, analyzing the buying patterns, and knowing the trends NOKIA intelligently set a price that will be attractive enough to the customer and yet bring it profits. If a product is in demand and the current price is not justifying the cost then NOKIA by testing pricing, discounts, and doing in-depth research on the competitions bottom-line. The end goal of every campaign is to increase profitability, which reducing costs, while the main motive is to increase its decrease market share. PRICING TREND IN INDIA On the basis of incomes, people are classified into segments such as: Below poverty line Poor Lower middle class Middle class Upper middle class Affluent / rich NOKIA by keeping this in their business policy they sets the price of their handsets that it will touch all classification according to income segments in India. A wide range of products for all these segment NOKIA stays on top from past 10 years in INDIA because the main reason behind this is CUSTOMER VALUE and SATISFACTION. As VALUE increases as QUALITY,SERVICE increases and decreases as PRICE decreases. The lowest price mobile available in the market is Nokia 1203.

PRICE: Rs. 800 With a good talk time, standby and best quality Nokia 1203 in a price segment mainly for low income level peoples presented by NOKIA. Similarly with the variety of mobile handsets in INDIA, Nokia targeting all the segment in India on the income level.

Nokia E7 Rs.25510 Nokia N900 Rs.22495 Nokia N8 Rs.21523 Nokia X7-00 Rs.20864 Nokia N97 Mini Rs.18225 Nokia E6-00 Rs.17378 Nokia C7 Rs.16714 Nokia X6 16GB Rs.15695 Nokia E72 Rs.15168 Nokia X6 8GB Rs.14043 Nokia C6-01 Rs.12934 Nokia E71 Rs.12901 Nokia C6 Rs.11058 Nokia E52 Rs.10036 Nokia 5530 XpressMusic Rs.9750 Nokia 6700 Slide Rs.9697 Nokia X5-01 Rs.9242 Nokia E5 Rs.9137 Nokia 5235 Comes With Music Rs.8715 Nokia C5-03 Rs.8497 Nokia C3-01 Rs.8208 Nokia E63 Rs.7954 Nokia X3-02 Rs.7719 Nokia 5250 Rs.7433 Nokia C5 Rs.7396 Nokia 5230 Rs.7295 Nokia 3710 Fold Rs.7150 Nokia X3 Rs.6700 Nokia 5233 Rs.5999 Nokia 6303i Classic Rs.5886 Nokia C3 Rs.5853

Nokia 7230 Rs.5822 Nokia C2-06 Rs.4999 Nokia C2-02 Rs.4999 Nokia C2-03 Rs.4999 Nokia 7020 Rs.4613 Nokia X2 Rs.4352 Nokia C2-01 Rs.3919 Nokia 5130 XpressMusic Rs.3880 Nokia 2730 Classic Rs.3653 Nokia X2-01 Rs.3479 Nokia 2700 Classic Rs.3474 Nokia 2720 Fold Rs.2899 Nokia C2-00 Rs.2767 Nokia 2690 Rs.2550 Nokia 2220 Slide Rs.2325 Nokia C1-01 Rs.2195 Nokia C1-02 Rs.1847 Nokia X1-01 Rs.1839 Nokia 5030 XpressRadio Rs.1597 Nokia C1-00 Rs.1508 Nokia 1800 Rs.1497 Nokia 1616 Rs.1176 Nokia 1280 Rs.986 Nokia 1203 Rs.800 Where as some costly handsets for the rich is arriving with a heavy price India are LUMIA 800 and N9 with price 29000 and 35000 respectively. So a company that think about every standard of living.

In 2008 when the other mobile local and international companies entered in market, Nokia had made unexpected move to give a tough competition to other mobile titans in the market. Nokia had slashed down its price by 10 %. This step had taken under the price strategy of Nokia as maintain its position to rule over the mobile market of the world.

NOKIA SLASHED DOWN ITS PRICE BY 10 % IN 2008 Under the price of marketing mix Nokia analysis point on these: Prices start from mere Rs.1200 to more than Rs.50, 000 to suit all class of people. Nokia also offer cash allowances. It uses skimming price strategy.

Price skimming strategy of Nokia

Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time. It is a temporal version of price discrimination/yield management. It allows the firm to recover its sunk costs quickly before competition steps in and lowers the market price. Price skimming is sometimes referred to as riding down the demand curve. The objective of a price skimming strategy is to capture the consumer surplus. If this is done

successfully, then theoretically no customer will pay less for the product than the maximum they are willing to pay. In practice, it is almost impossible for a firm to capture all of this surplus.

Reasons for price skimming

Price skimming occurs in mostly technological markets as firms set a high price during the first stage of the product life cycle. The top segment of the market which are willing to pay the highest price are skimmed of first. When the product enters maturity the price is lowered.

SWOT Nokia

Strengths

Experience 142 year of history Strong financial support for R & D (1.4 billion USD) Largest network of selling & distribution Strong customer relation Wide range of products for all class High Resale value compared to other competitors Durability Long battery life User friendly Global Expansion

Weakness

N Gage is a flop. Low camera, music quality in comparison with others Less stylish in low priced products Heavy sets Market skimming prices of high sets Unlike I phone apple, Nokia N97 is complex, tough and not user friendly

Opportunities

New growth markets Other hand held devices Well designed and styled sets Increase their presence in 3G & edge market Improvise on quality of camera Mini notebooks

Threats

China mobiles It has made exact copy of Nokia N96 Cheap & wide range models from Motorola Sales may decline due to global economic downturn I phone apple A fierce competitor for Nokia N9