Distinct segmentation needed to match consumers' demands
Hasan Aula, Contributor, Jakarta
Compared with Singapore or Malaysia, the market for mobile phones in Indonesia is far less developed. However, with its huge population -- over 200 million -- the Indonesian mobile phone market has great potential and opportunities for further growth. It is no wonder, then, that many of the world's major mobile phone manufacturers and service providers have put Indonesian consumers on their priority list.
One indication of just how promising this market is, is the availability of almost all top mobile phone brands here. Another is the huge number of retail outlets opening in every city and even small towns in the archipelago. Large shopping complexes, like ITC Roxy Mas and ITC Cempaka Mas in Jakarta, with numerous outlets that specialize in the sales of mobiles can be found in most major cities.
First available here in 1993, the number of mobile phones by the end of 2003 is estimated at almost double that of fixed telephones, which now numbers 7.5 million. This robust growth can be attributed to increasing demands for mobile communication.
From its basic function, like voice telecommunications, mobile phones have now evolved into a lifestyle statement or a kind of self-actualization, and some purchase this gadget just to be more trendy. A number of consumers also depend on mobile phones for its various information and entertainment features, like stock exchange reports, horoscopes, games and so forth.
Rapid advancements have been made in mobile phone technology. From a basic gadget for voice telecommunications, mobile phones now incorporate various capabilities, such as data communication through the Wireless Application Protocol (WAP), GPRS (General Packet Radio Services) and the recent Third Generation (3G), not to mention the Short Message Service (SMS) and Multi-Media Service (MMS). Some of these technological advancements are ahead of the times, and were available before consumers even needed them.
To match their consumers' wide-ranging needs, makers of mobile phones have no option but to segment their products. Nokia Mobile Phone Indonesia, for example, makes a clear-cut segmentation of its products based on technology, features and design, and divides its customers into eight main segments.
The first segment is called the basic segment. This type of segment refers to customers with simple and basic needs, like voice telecommunications and SMS capabilities. For these customers -- a large number of them being "beginners" -- user- friendly phones are preferred.
Second is the expression segment. Customers in this segment prefer to personalize the features on their phones. Obviously, they are more creative in communication, and they like to do it in style. Various superior features are made available to match their needs, like MMS as well as GPRS.
Segment number three is business. As the name implies, the phones include features to fulfill the requirements of business executives, like organizers to keep their hectic schedules straight.
In the fourth segment -- fashion -- are customers who prefer stylish accessories. "Cute and smart" is a must for their mobile phone designs.
Premium is the fifth segment, which is a special cluster of elite and well-established customers with enormous purchasing power. Although they are the select few, they form a special niche for the limited edition or premium product. High-caliber executives, professionals, celebrities and the like fall into this segment.
Segment six comprises active people who love outdoor activities and require sturdy and durable mobile phones.
The seventh segment focuses on communicators -- mostly executives on the move -- who prefer phones with sophisticated telecommunications technology, such as Personal Digital Assistant (PDA).
The final segment is the image or visually oriented customer, who makes full use of visual communication features available on their phones, such as MMS with unlimited memory.
For Nokia, distinct segmentation is only one part of its marketing strategy. Along with quality products, the company ensures reliable after-sales service with centers located not only in the country's major cities, but also in capitals of regencies throughout Indonesia. -- The writer is general manager of Nokia Mobile Phone Indonesia