SAMIR ANAND 0911 Sem-2 (Marketing Telecom)

MS Marketing
(Session 2007-2009)
Telecom Industry – Mobile Handsets
Submitted To:
Prof. Jagan Mohan
Submitted by:
Samir Anand (0911)
07/06/09 copyright 1
www.brainybetty.com 2006 All
N E S
P H O
L L
CE
Marketing Mix
4 P ’s ..
• Prod uct- > Cell Phones
• Price -> Lower End segment to
Super Premium End.
• Plac e-> Exclusive Showroom,
Shopping Mall, Chain Store
(Next, Hotspot, The Mobile
Store, Big C), Local Venders.
• Prom oti on-> Print Media,
Mass Media & Electronic
Media.
Product Strategy
• Prod uct is a nything that
satisfie s h uman
needs and want s.
• Cell phones today have
become basic requirement
of human (just like food,
shelter and cloth).
• So many companies are going
through various factors to
07/06/09
be salable among
copyright
4
USES AND NEED FOR MOBILE PHONES
Mobile device – Recording everything
What we say
Where I am
What I hear
What I write
Product classification
• Product classification is
based on ...
• Tang ibili ty-> Yes, cell
phones are tangible.
• Seperab ility-> Yes,
cell phones are easily
separable.
• Ownership -> Of course,
we get the ownership when
07/06/09 we purchase the cell
copyright 6
Contd...
Pu rpose of u se. .
• Purp ose-> Consumed

basically for communication
and connectivity.
• Type ->Consumer Good.
• User-> Almost people of all
age groups even including
07/06/09
children. copyright 7
Contd..
• Based o n fun ctional
life cy cle of produ ct..
• Type -> Durable
• Natur e of use -> It
changes with time,
technology, trends. But one
can use it for life time
also.
• Func tional life period -
> For long period.
Contd..
• Based o n shopp ing
habit s..
• Cell phones basically are

type of SHOPPI NG and up to
an extent SP ECIALIT Y
GOODS.
Contd..
• Ba se d o n t he Pr ic e a nd
Qu ali ty ..
• Cell Phones are..
• EC ON OMY P ROD UC TS . Ex.. Nokia
1100,1110,1208, Reliance (Classic
handsets), Motorola C-180,Samsung C-
130, etc.
• As well as PR EM IU M P RO DUC TS . Ex..

Nokia Communicator, E-series, N-
series, Sony Ericssion W & P-
series, HTC phones, I-mate
phones, Apple I-phones, Blackberry,
07/06/09 Virtue fashioned jewelry phones,
copyright 10
etc. www.brainybetty.com 2006 All
Contd..
• Base d on pro duct
deve lo pme nt..
• Inno vations -> Cell phones
world is being more n more
innovative day by day. Whether
its urban or rural market no one
is untouched by it.
• Imitations -> Many Chinese
cell phones have come in the
market which are indeed
affecting the main market
whereas Gray Market is
gaining more profit.
Contd..
• Based o n Bra nd Hierar chy
Level..
• In context with our country
cell phones present here
are all GLOBAL BR ANDS
(such as Nokia, Sony
Ericssion, Motorola,
Samsung, etc.) and up to
some extent UNBRAD ED
BRAND S (basically
07/06/09 Chinese mobiles) copyright are 12
present in the market.

Product Mix
• Le ng th Ext en si on -> There are
several phone models present in a
product line. Ex.. Nokia-1110,1208,N-
series; Sony Ericssion-
J230i,Walky-series; Motorola-
C180,Razor,Crazor;etc.
• De pt h E xt ens io n-> Addition of

many attributes and features to cell
phones. Ex.. Cell phones with Radio,
Mp3 & Media players, video
conferencing facility, Internet &
windows enabled, different mega
pixels of cameras such as 1.3 to 5
07/06/09 mega pixel of cameras,
copyright etc. 13
Line Stretching
Cel l p ho ne co mp ani es pa y a l ot of at te nti on
tow ar ds li ne st ret ch in g..
As for low end usage customers it goes for DOW NWA RD

stretching by adding low end items. Ex.. Lower
priced mobile phones with only basic features and
facilities such as Reliance phones range starting
from rs.777, Nokia’s 1208 model priced at rs999 only,
etc;
For high end customers it goes for UPW ARD stretching

by adding high end items and whereas for customers
of middle level it goes for both ways stretching of
their product line. Ex.. Higher priced cell phones
such as I-mate, Apple I-phone, Htc, Nokia communicator,
Sony Ericssion P-series price ranging from
rs.20000 onwards.
For customer of middle level it goes for BOTH WA YS of

stretching of the line. Targeting at potential
customers whose market constitutes of the biggest
market for any cell phone manufacturer. Here at this
stage mobile phones are ranged between rs.5000 –
07/06/09 copyright
rs.20000.A company has the largest collection of 14
www.brainybetty.com
various models in this 2006 Allrange.
Line Pruning
• Traf fi c Bui lde rs -> Some
higher end and attractive cell
phones such as Nokia N-
80&81,Virtue,Sony Ericssion P-
series, etc.
• Bread Winners ->Models of
middle level (in price &
features, etc) such as Nokia
3110,5300,6300; SonyEricssion
W200,W550; Motorola Motorazar,
L7i, etc.
New Product
Development
It is important ...
• Easy to Use .
• Are ae stheti c and pro vi de
valu e fo r mo ne y.
• Use the R&D , Phys ical ,
Financial , Human Re sourc e.
• To Com pe te with Competitors
and differe nti at ing from
their products.
• To get more market share.
• New Technology Innovat ion.
New Products In
Market
• Sony Erics si on -> Newly
launched CYBE R SHOT (3 .2 m ega
pixe l) camera phone and also
new Walkm an S eri es ( such as
W-85 0i ).
• Noki a->N - 81,9 3i,9 5i; and
Musi c Edi tion of var ious
models.
• Virtue ->N ew fa shioned
phon es wi th jewe ls
embe dd ed.
• Appl e I- phon es
07/06/09 copyright
with I-tu ne s 17
sound format.
Stages In
New Product
Development
1. Idea Generation
2. Idea Screening
3. Con cept T esting &
Ana lysis
4. Pro duct Development
5. Test Ma rketing
6. Com mercializat ion
Branding
Brand Brand Name Name How
Sponsoring What
NOKIA Global Individu Easy to
al Brand Use-Short,
Simple,
Easy to
Pronounce
Easy to
SONY Internat Individu
ERICSSIO ional al Brand Use-Short,
Simple,
N Easy to
Pronounce
Easy to
MOTOR Global Individu
al Brand Distingu
OLA
ish
SAMSUNG Internat Individu Easy to
ional al Brand pronounce,
Read and
07/06/09 copyright Remember 19
Branding: Why It Is
Necessary
1. Bra nd ide nt ity he lp s
pro ce ss ing.
2. Bra nd image gi ves
com pe titi ve ad vanta ge .
3. Bra nd pers onality
con vi nc es consume r.
4. Bra nd equi ty e nhance
val ue .
Brand S ponsori ng
Man ufact ure r bra nd-> Nokia N-
seri es , Motor ola
Mot oraza r, So ny Er icss ion
07/06/09
Wal ky se rie s , Sam sung
copyright 20
Metallic, Lg Ch 2006
www.brainybetty.com ocola
All te .
Brand Extension
In p ast s om e m ob ile p hon e
co mpa ni es ha s gon e f or B ran d
Ex te nsi on su ch as ..
.
• Nokia->From Paper Stationary
business – Cable Wires – Software
Development – Cell Phones.
• Samsung->From Electronic Goods – Cell
Phones.
• LG->From Electronic Goods – Cell
Phones.
• Siemens->From Electrical &
Electronic Goods – Cell Phones.
Brand Equity
Some companies have a good name in the market
due to their certain aspects. For Ex..
• Nokia is basically known for its

DUR AB IL IT Y & E AS Y H ANDL ING
• Sony Ericssion is known for its
richness of SOUN D QUA LI TY
• Blackberry & I-mate is known as WI ND OWS
mobile.
Br an d Per son alit y

Basically Youth is the brand personality of
cell phones among which Sony Ericssion
(Hrithik Roshan) & Motorola (Abhishek
Bachhan) are at the top in targeting the
youth.
Pricing Strategy
Co ncept Of P ricing ..
Determinants of
consumption/uses(4A’s)
• Af for da bi lit y
• Av ai lab ili ty
• Aw are ne ss
• Ac ce pta bil it y
Recent Trends
As per today’s situation our income
& standard of living is
increasing consistently and
while talking about mobile phone no
one is untouched with its
presence.
• Ma rk et Fr ag men tat io n-> Mobile
phone companies has fragmented
the market on various aspects. For
Ex.. Nokia came up with model 1100
basically for rural areas with torch
in low price.
• Ma rk et Sa tu rat ion - > For rural and low
end market companies like
Reliancewww.brainybetty.com
& Nokia have
2006 All come up
Contd..
3. Inter-Cat egor y
Com pe titi on-> Companies
like Reliance has come up
with low price cell phone and
air time (rs.777 onwards)
with the validity of 1 or 2
year which have given a tough
competition to Dot or Basic
landline phones.
4.V alue Consci ous

Con sump ti on -> Today a
consumer is getting
www.brainybetty.com 2006 All the
Pricing Objectives
It is important for ..
• Prof it
• Sales
• Comp etition
• Develop ment
Factors Influencing
Pricing Decisions
• Inter nal-> Cost, Product
Line, Marketing Strategy.
• Exter nal-> Demand,

Competition, Channel,
Politico-Legal.
• Inter nal/E xternal -

07/06/09
>Management Judgmental
copyright 27
Factor. www.brainybetty.com 2006 All
Right Approaches For
Pricing
Cos t Base d A pproa ch ->
Companies like Nokia and
Sony Ericssion follow..
• Mar gi na l Cost/Co ntribution
& P ay Ba ck Peri od-> As at the
time of the launch of any new
model they are priced at
their maximum cost to meet
the profit on fixed cost and
after a certain period of the
price gets down.
Contd..
Competi tion B as ed App roach ->
Almost companies follow this
approach. But Nokia is the
Leader Prici ng company with
lowest range mobile phones
in the market. Also other
companies are reacting with
each other with the
Com pe titi ve Pr icing
App roach . For Ex..
Nokia’1208,1110i models are
ranging from 999 – 1100 whereas
Motorola’s C-180 model too is
priced at 1100 with Airtel
07/06/09
connection. copyright
29
Price In Other
•
Marketing Mix
Qu al ity C on sci ous C on sum ers ->
These consumers are quality and
new and different features
conscious. (For Ex.. I-mate,
Blackberry, Nokia series 60
mobiles, Sony Ericssion Walkman &
P-series, etc).
• Va lu e C on sci ou s C on sum er s->
These consumers look the quality
and features of the cell phones
and give value to money. (For Ex..
Nokia 6283,3110,5610; Samsung Metal
series, etc)
• Pr ic e C ons ci ou s c ons um er s->
These type of consumers look for
basic utility function of mobile
phone. (For Ex.. Reliance low end
07/06/09 mobile-Classic ZTE, Nokia
copyright 30
1600,1110i,1208, Sony Ericssion
Price War
Why i t is Impor tant?
• To c aptu re t he c us to me rs
(due to it companies are
gaining customers, ex..
Nokia and reliance are
gaining customers in their
respective handsets).
• To f ight aga ins t
comp etiti on & co mpe titor s
(basically Nokia, Sony
Ericssion and Motorola are
fighting with each other to
get an edge) .
• To g ai n www.brainybetty.com
07/06/09 the copyright
mark et share.
2006 All
31
Basically in price war Nokia and
Sony Ericssion are fighting
with each other as both the
companies are trying to give
their best quality at the
offered price. In CDMA handsets
ZTE is giving competition to
all of its category (by providing
colour screen handsets at a
price of rs.999 only).
Motorola, Samsung and LG too are

pacing their speed to be in
the real rat race.
Marketing Channels
Distribut ion or Trade-
Trend s
Time-> No specific time
or Occasion to buy.
Pl ace-> Excusive Showrooms,
Retail Outlets, Local
venders.
Sell ing Who? -> Companies,
Consumers.
Nature Of Marketing
Channels
• Geograph ic D istri buti on->
No such specific geographic
area instead of, it is
nationwide.
• Chan ne l Si ze-> Cell Phone
companies uses all type of
channel sizes (short, long and
intermediary).
• Char acteri sti cs of
Intermedi ary -> Retail
07/06/09
Outlets, Malls, copyright
Hyper Markets 34
like Bigwww.brainybetty.com
Bazar & Subhikhsha.
2006 All
Benefits From Channel
Intermediaries..
Channel intermediaries like
Big Bazar, Subhiksha, etc give
their own discounts on price
and even more they provide
several gifts also. These
channels for purchasing the
mobile phones have become
more popular among customers and
also they promote the phones
on their own expenses.
So these all indeed help
companies to sell and earn
07/06/09
more profit. copyright
35
Marketing Logistics
(Physical Distribution)
Gett ing Right Goods t o
Right Plac e at Righ t
Time..
• Physica l Distribution
• Effic ient Delivery
• JIT
Communication/Promoti
on Mix In Marketing…
• Natur e of Pr oduct ->
Tangible, Emotional &
Rational (up to an extent),
Durable.
• No of Buyers-> Large.
• Natur e of Bu ying-
>Basically Cognitive and up
to some extent Impulsive
also sometimes (due to
07/06/09
the presence copyright
of plastic
37
Uses Of
• Communication
To Mix..
Cr ea te Aw ar ene ss -> Companies
create awareness, a desire ,
need among consumers through various
sources.
• En han ce C omp an y’s R epu ta tio n->
Companies improve their position
among consumers and win their faith.
For Ex.. Nokia replaced the
batteries.
• Pu bli ci ze In for ma ti on on
Pr odu ct s- > By good and various
packaging and advertisements
companies do provide certain
information about the product. For Ex..
On the box of mobile phones the
07/06/09 contents inside the box are
copyright 38
To develop Communication,
cell phone companies
target basically the Yo uth
Audienc e.
They take the help of media
for this.
Pr int media ->Ex.. Magazine
called Mobile World,
Newspapers, Billboards,
etc.
El ectronic M edia ->Ex..
Internet.
Ma ss Media-
07/06/09
>Ex..
copyright
39
As Promotion & Advertising are
the most important aspect of
marketing, companies strongly
pay attention on it.
For Ex.. Hrithik Roshan is the
Brand Ambassador of Sony
Ericssion India whereas for
Motorola Abhishek Bachhan is
there.
So these two youth icons drags
the attention of the people
which of course helps in
selling of the mobiles.
The Selling Process…
• Companies try to see the demand of
the product. For Ex.. Earlier there
were only basic featured mobile
phones but now with lots of features
they are trying to find prospects
with their everyday improving or
new product.
• For selling a mobile phone a
salesman should be well trained
with all the features so that he can
give a satisfied demonstration.
• There should be a good facility of
POST SALES SERVICE. Nokia in this
regard is ahead of other companies
as there are ample of service
07/06/09
centers present in nation.
copyright 41
THANK
YOU…

SAMIR ANAND 0911 Sem-2 (Marketing Telecom)

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MS Marketing

Telecom Industry – Mobile Handsets

• Purp ose-> Consumed

• Cell phones basically are

• As well as PR EM IU M P RO DUC TS . Ex..

present in the market.

• De pt h E xt ens io n-> Addition of

As for low end usage customers it goes for DOW NWA RD

For high end customers it goes for UPW ARD stretching

For customer of middle level it goes for BOTH WA YS of

• Nokia is basically known for its

Br an d Per son alit y

4.V alue Consci ous

• Exter nal-> Demand,

• Inter nal/E xternal -

Motorola, Samsung and LG too are

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