Distinct segmentation to match consumers' needs

Distinct segmentation to match consumers' needs

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