The document discusses marketing strategies for mobile handsets in the telecom industry. It covers the 4 P's of marketing - product types and classifications, pricing approaches, placement through distribution channels, and promotion through advertising. The summary focuses on key aspects: 1) Mobile phones are classified based on price (economy to premium products) and purpose (communication and connectivity). 2) Pricing approaches include cost-based, competition-based, and value-conscious strategies to target different consumer types. 3) Distribution channels include exclusive showrooms, retail outlets, and local vendors for nationwide availability. 4) Promotion utilizes print, electronic, and mass media to create brand awareness and target youth audiences.

1. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved MS Marketing (Session 2007-2009) Telecom Industry – Mobile Handsets Submitted To: Prof. Jagan Mohan Submitted by: Samir Anand (0911)

2. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved CELL PHONES

3. Marketing Mix 4 P’s .. Product-> Cell Phones Price-> Lower End segment to Super Premium End. Place-> Exclusive Showroom, Shopping Mall, Chain Store (Next, Hotspot, The Mobile Store, Big C), Local Venders. Promotion-> Print Media, Mass Media & Electronic Media. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

4. Product Strategy Product is anything that satisfies human needs and wants. Cell phones today have become basic requirement of human (just like food, shelter and cloth). So many companies are going through various factors to be salable among consumers. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

5. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved What I write What I hear Where I am What we say USES AND NEED FOR MOBILE PHONES Mobile device – Recording everything

6. Product classification Product classification is based on ... Tangibility -> Yes, cell phones are tangible. Seperability -> Yes, cell phones are easily separable. Ownership -> Of course, we get the ownership when we purchase the cell phones. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

7. Contd... Purpose of use.. Purpose-> Consumed basically for communication and connectivity. Type ->Consumer Good. User-> Almost people of all age groups even including children. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

8. Contd.. Based on functional life cycle of product.. Type -> Durable Nature of use -> It changes with time, technology, trends. But one can use it for life time also . Functional life period -> For long period. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

9. Contd.. Based on shopping habits.. Cell phones basically are type of SHOPPING and up to an extent SPECIALITY GOODS. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

10. Contd.. Based on the Price and Quality.. Cell Phones are.. ECONOMY PRODUCTS . Ex.. Nokia 1100,1110,1208, Reliance (Classic handsets), Motorola C-180,Samsung C-130, etc. As well as PREMIUM PRODUCTS . Ex.. Nokia Communicator, E-series, N-series, Sony Ericssion W & P-series, HTC phones, I-mate phones, Apple I-phones, Blackberry, Virtue fashioned jewelry phones, etc. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

11. Contd.. Based on product development.. Innovations -> 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. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

12. Contd.. Based on Brand Hierarchy Level.. In context with our country cell phones present here are all GLOBAL BRANDS (such as Nokia, Sony Ericssion, Motorola, Samsung, etc.) and up to some extent UNBRADED BRANDS (basically Chinese mobiles) are present in the market. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

13. Product Mix Length Extension -> 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. Depth Extension -> 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 mega pixel of cameras, etc. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

14. Line Stretching Cell phone companies pay a lot of attention towards line stretching.. As for low end usage customers it goes for DOWNWARD 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 UPWARD 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 BOTHWAYS 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 – rs.20000.A company has the largest collection of various models in this range. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

15. Line Pruning Traffic Builders -> 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. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

16. New Product Development It is important ... Easy to Use . Are aesthetic and provide value for money . Use the R&D , Physical , Financial , Human Resource . To Compete with Competitors and differentiating from their products. To get more market share . New Technology Innovation. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

17. New Products In Market Sony Ericssion -> Newly launched CYBER SHOT (3.2 mega pixel) camera phone and also new Walkman Series ( such as W-850i) . Nokia ->N- 81,93i,95i; and Music Edition of various models. Virtue ->New fashioned phones with jewels embedded. Apple I-phones with I-tunes sound format. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

18. Stages In New Product Development Idea Generation Idea Screening Concept Testing & Analysis Product Development Test Marketing Commercialization 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

19. Branding 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved Brand Brand Sponsoring Name What Name How NOKIA Global Individual Brand Easy to Use-Short, Simple, Easy to Pronounce SONY ERICSSION International Individual Brand Easy to Use-Short, Simple, Easy to Pronounce MOTOROLA Global Individual Brand Easy to Distinguish SAMSUNG International Individual Brand Easy to pronounce, Read and Remember

20. Branding: Why It Is Necessary Brand identity helps processing. Brand image gives competitive advantage. Brand personality convinces consumer. Brand equity enhance value. Brand Sponsoring Manufacturer brand-> Nokia N-series, Motorola Motorazar, Sony Ericssion Walky series , Samsung Metallic, Lg Chocolate. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

21. Brand Extension In past some mobile phone companies has gone for Brand Extension such 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. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

22. Brand Equity Some companies have a good name in the market due to their certain aspects. For Ex.. Nokia is basically known for its DURABILITY & EASY HANDLING Sony Ericssion is known for its richness of SOUND QUALITY Blackberry & I-mate is known as WINDOWS mobile. Brand Personality 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. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

23. Pricing Strategy Concept Of Pricing .. Determinants of consumption/uses(4A’s) Affordability Availability Awareness Acceptability 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

24. 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. Market Fragmentation -> 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. Market Saturation - > For rural and low end market companies like Reliance & Nokia have come up lower priced models. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

25. Contd.. 3. Inter-Category Competition-> 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.Value Conscious Consumption-> Today a consumer is getting the benefits in terms of money. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

26. Pricing Objectives It is important for .. Profit Sales Competition Development 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

27. Factors Influencing Pricing Decisions Internal-> Cost, Product Line, Marketing Strategy. External-> Demand, Competition, Channel, Politico-Legal. Internal/External-> Management Judgmental Factor. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

28. Right Approaches For Pricing Cost Based Approach -> Companies like Nokia and Sony Ericssion follow.. Marginal Cost/Contribution & Pay Back Period -> 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. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

29. Contd.. Competition Based Approach -> Almost companies follow this approach. But Nokia is the Leader Pricing company with lowest range mobile phones in the market. Also other companies are reacting with each other with the Competitive Pricing Approach . For Ex.. Nokia’1208,1110i models are ranging from 999 – 1100 whereas Motorola’s C-180 model too is priced at 1100 with Airtel connection. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

30. Price In Other Marketing Mix Quality Conscious Consumers -> 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). Value Conscious Consumers -> 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) Price Conscious consumers -> These type of consumers look for basic utility function of mobile phone. (For Ex.. Reliance low end mobile-Classic ZTE, Nokia 1600,1110i,1208, Sony Ericssion J230i, Motorola C180, etc). 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

31. Price War Why it is Important? To capture the customers (due to it companies are gaining customers, ex.. Nokia and reliance are gaining customers in their respective handsets). To fight against competition & competitors (basically Nokia, Sony Ericssion and Motorola are fighting with each other to get an edge) . To gain the market share. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

32. 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. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

33. Marketing Channels Distribution or Trade-Trends Time-> No specific time or Occasion to buy. Place-> Excusive Showrooms, Retail Outlets, Local venders. Selling Who?-> Companies, Consumers. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

34. Nature Of Marketing Channels Geographic Distribution-> No such specific geographic area instead of, it is nationwide. Channel Size-> Cell Phone companies uses all type of channel sizes (short, long and intermediary). Characteristics of Intermediary -> Retail Outlets, Malls, Hyper Markets like Big Bazar & Subhikhsha. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

35. 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 more profit. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

36. Marketing Logistics (Physical Distribution) Getting Right Goods to Right Place at Right Time.. Physical Distribution Efficient Delivery JIT 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

37. Communication/Promotion Mix In Marketing… Nature of Product-> Tangible, Emotional & Rational (up to an extent), Durable. No of Buyers-> Large. Nature of Buying-> Basically Cognitive and up to some extent Impulsive also sometimes (due to the presence of plastic money). 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

38. Uses Of Communication Mix.. To Create Awareness-> Companies create awareness, a desire , need among consumers through various sources. Enhance Company’s Reputation-> Companies improve their position among consumers and win their faith. For Ex.. Nokia replaced the batteries. Publicize Information on Products-> By good and various packaging and advertisements companies do provide certain information about the product. For Ex.. On the box of mobile phones the contents inside the box are mentioned and as well the attributes & features of them. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

39. To develop Communication, cell phone companies target basically the Youth Audience. They take the help of media for this. Print media ->Ex.. Magazine called Mobile World, Newspapers, Billboards, etc. Electronic Media ->Ex.. Internet. Mass Media- >Ex.. Television. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

40. 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. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

41. 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 centers present in nation. 02/05/11 copyright www.brainybetty.com 2006 All Rights Reserved

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