1. 1
Mobile Phones

2. 2
Agenda
 Introduction to the industry
 A few charts
 The market leader
 Marketing strategies
 Future trends
Mobile vulgus 'excitable crowd'. A disorderly or violent crowd.

3. 3
Introduction
 India is the fastest growing mobile phone market
in the world.

4. 4
Growth in Mobile Telephony
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006*
The growth of Indian telephony has skyrocketed in the last 6 years.

5. 5
GSM vis-à-vis CDMA
In a market of 75.94 million phones, there is a 77 % share of GSM
Figures: 2005, Zinnoy

6. 6
Segmentation
 Based on price
 Based on functionalities

7. 7
Price
 Low price (<3500) – rural India, low stratum of the
urban market
 Medium price (3500 to 7000) – specially urban
middle class (parents)
 High price (7000 – 10000) – students, newly working
people, young housewives
 Expensive (>10000) – executives, celebrities, trendy
people

8. 8
Functionalities
 Basic: Phone book, SMS, alarm and date
 Basic multimedia phones: MMS, FM radio,
speakers, polyphonic ring tones and integrated VGA
digital cameras
 High end multimedia phones: High resolution
cameras, music players, infrared ports, and Bluetooth,
tri-band and high resolution mobile games
 Convergence devices/Pocket PC phone: Email,
spreadsheets, word processing applications and WiFi

9. 9
Phony People
 Rural or low income urban – Low price and basic
feature. Larger in size. Easy to hold and operate.
Lasting. Resale value.
 Students – High or medium price. But a few special
features. Preferably slick and small. No problem with
complexity in the mobile phone.
 Young housewives – Medium or high price. Special
features are extra. Easy to hold and operate. Nice
colour and shape.

10. 10
Phony People (Contd.)
 New working people – High price. Special features are
must. Complexities are welcome. Fashionable sets are
preferred. Resale value is considered. Shape should be
slicker and smaller in size.
 Executives – High price or expensive. All the features
should be there. Look should be fashionable. No need for
resale value. Slickest and smallest. Newly launched
mobile with high brand value. Different than others.
 Parents – Medium price. Basic features. Simple look and
operations. Resale value. The most common one.

11. 11
Trends in Mobile Handset Market
 Majority: sub Rs 3000 and Rs 3000-4000
 Colour handset: 49% market share and rising
 Replacement demand is a major driver in class A
cities
 India as manufacturing base
 GSM market – bundling of handset and operator’s
services
 Style, design, hi-end features becoming main criteria
for customers
 Next Big thing – Wi-fi, Bluetooth, internet access

12. 12
Major Players
 Indian market has 6-7 key players. Most important
amongst these is Nokia which has more than 70%
market share.
 The other players are Motorola, Samsung, LG,
Philips, Panasonic, BenQ, Sony Erricsson
 Motorola was the first player in the Indian market but
could not sustain its early mover advantage.

13. 13
Relative Market Share

14. 14
Market Leader – Nokia

15. 15
Products – Nokia
Monochrome Colour Phones Camera Phones

16. 16
Promotions - “GLOCAL” Brand

17. 17
Promotions: Localization of
Communication

18. 18
Promotions: Winning Consumer
Insight

19. 19
Place

20. 20
Style Icon – Samsung

21. 21
Product
 Focus on replacement market
 Advanced features
 Stylish exterior
 High range colour phones

22. 22
Recently Launched Products
 Phone with 10 Mega pixel camera
 World’s slimmest mobile phone –
Ultra Edition

23. 23
Price
 Wide range of price
• From Rs 8000 to Rs 12000
 Stayed away from the low price segment
 Focus on replacement market
• 2nd mobile of customer
 Recent entry into Rs 3000-4000 segment
• To increase in volume

24. 24
Innovator – Motorola

25. 25
Company
 Early entry in 1995
 Failed to grow till recently
 Always focused on high tech offerings
 Till 2003 – very few products launched in India
 Currently present in most of the price segments

26. 26
Product
 Currently wide range of products
 Motofone – sub Rs 2000 segment
• Fewer parts, multifunction chips,
efficient software
 C115 model – manufactured in
India
 Pink Razr – pioneer in bringing
colour to phones

27. 27
Distribution
 Exclusive retailers
 Consumer durable stores
 Electronic dealers
 Strategic alliance with Bharti Teletech
 Consumer financing model through GE finance

28. 28
Marketing Strategy
 Nokia Priority Dealers
• Largest organized chain amongst handset manufacturers
• Presence across 255+ towns
• Superior buying experience to consumers
 Nokia Concept Store
• Launched in Delhi and Bangalore
• Destination for evolved replacement consumer
• Encourages live usages, application downloads and product
experience
• World class standardized design
• Market making and category creation in small towns

29. 29
Marketing Strategy (Contd.)
 Nokia VAN Operations
• A special purpose van –“ Showroom on Wheels” operational
across the country
• Consistent brand experience and full range of products
including live demonstration
• Half a million contacts established

30. 30
 Nokia Care – Delighting the Customers’
• Widest Care Network
­ Presence across 408 cities
­ 560 Nokia Care Centres with 25 Hi­Tech facilities
• 18 X 7 Access to Nokia Care Line
­ From 600 + Cities with single number
­ Multilingual Support – 6 Languages
Marketing Strategy (Contd.)

31. 31
Emerging Trends
 The future of mobile phones is in colour phones and
camera phones. This would move towards multimedia
phones.
 These devices would offer the user more functionality
like mobile phone gaming, mobile web surfing,
mobile data transfer, mobile GPS, mobile imaging.

32. 32
Future Predictions
 Mobile gaming is expected to grow at a CAGR of
118% per annum. As many as 78.6 mn people would
be playing mobile phone games by 2009.
 Mobile industry is expected to be 157 million dollars
next year, bigger than the conventional music
industry.
 Email is expected to be on every fourth phone to be
sold in India in the next 4 years.