FOR MARKETING PERSPECTIVE --- March 23

FOR MARKETING PERSPECTIVE --- March 23

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Celluar-branding-strategy

Staying at the top is a serious lifetime task

Burhanuddin Abe
Contributor
Jakarta

In the past few years numerous technological advancements have
occurred in the telecommunications industry, including, of
course, the gadgets themselves.

This year newer equipment, both in terms of hardware and
software, will flood the market. One long-awaited type of
cellular phone is called the Third Generation (3G).

One aspect that attracted Sony Ericsson's country manager for
Indonesia, Alino Sugianto, to move to the company are the rapid
and innovative changes in the cellular phone industry.

"Compared to developments occurring in the cigarette industry,
it is really phenomenal when one refers to the innovations and
enhancements that seem to take place all the time in cell
phones," said the 33-year-old executive who used to work for PT
British American Tobacco, Johnson & Johnson Medical and Citibank
here.

"Today, mobile phones have become an essential device for many
people, while for some they are part of their lifestyle. Thus
manufacturers see this as an opportunity to further develop the
capabilities, functions and features of cellulars," he said.

What Alino said is a reflection of what is taking place in the
cellular phone industry: every single manufacturer is racing to
come up with their latest variants.

While Nokia still dominates the world market, Ericsson is also
seen by many of its competitors as a brand that cannot be
disregarded.

In its efforts to stay ahead in the race, Nokia recently
launched in Hannover, Germany, its latest product: the Nokia 9500
Communicator. For the Asian market, the launch of this new
product is planned by March 2004. True to the product's name, the
Communicator, it incorporates a wide range of capabilities and
features, including a digital camera, Bluetooth, Wireless
Fidelity (WiFi) as well as EDGE/GPRS to deliver a 3G
communications system.

One of the companies often regarded as a pioneer in the
cellular phone industry, Motorola Inc., famous for its Star Tac
series, is now offering a number of new products with futuristic
design, such as the MPx200 and A760. Like the Star Tac, both come
in clamshell bodies with the ringpad safely covered. Digital
multimedia is also included in the phones' features.

Since their introduction, digital cameras have become an
integral part of many mobile phones. Due to the increased use of
digital cameras in cellular phones for a multitude of purposes,
be it personal or professional, even phones with lower price tags
also carry this capability.

This feature, first introduced by the major players like Nokia
and Ericsson, is now incorporated in various brands, including
Samsung's SGH-X600. Multimedia Message Service (MMS) is another
feature that many customers demand. Hence, it is also another
"must have" feature in most mobile phones.

Just like the tough competition among cell phone
manufacturers, the story is not too different with providers. The
four major providers here in Indonesia have no other option but
to provide the widest range of services to their customers. To
increase awareness and maintain loyalty, next to various cuts in
rates and enhanced service features, they have to grab what is
referred to in advertising lingo as a "share of the mind".
Obviously, their promotions and advertising budgets are not
small. However, with predictions by market analysts of a surge in
cell phone users -- 25 million this year (a hefty increase of
nine million from last year) -- they reckon it is money well
spent.

With all the clamor of numerous advertising themes "entering"
consumers' minds, these companies, with the help of their
agencies, naturally have to decide on the most effective "tune"
to woo customers. While some seriously concentrate on the
advantages of products or features, as well as corporate image,
one or two are surprisingly resorting to ridiculous slapstick
themes. They probably think that their targeted segments will
identify with such creative positioning.

For one of the giants, Nokia, which came up with one of the
world's first mobile phones, the Mobira, weighing 10 kilograms,
branding and one of the marketing tools, advertising, are handled
with the utmost care and astuteness.

For digital cameras featured in cellular phones, Nokia was
again a pioneer with its Nokia 7650 launched here around June
2002. Soon after the launch, the digitalized cell phone proved to
be a success as the sales figure in European countries reached
five million in a relatively short time. Taking and saving
pictures as well as e-mailing them -- another current craze among
Indonesians -- are now hassle-free, mostly thanks to the
capabilities of the Nokia 7650.

Realizing that consumers are not homogeneous, Nokia also
produces cellulars that fit the requirements of each market
segment: new users, trendsetters, executives, professionals,
housewives and so forth. The Finland-based company now also
includes entertainment in its cell phones.

Nokia's handset with game capability -- N-Gage -- was launched
on Oct. 7, 2003, and reached here early this year. N-Gage
features a superior gaming device with high-speed three-
dimensional pictures and stereo audio output. This item, sold for
US$300, has other features like an FM stereo radio and digital
music player.

Catching up with the fever of games in cellulars, other
companies have jumped on the bandwagon. Sony Ericsson is
marketing its T 310, Z 600 and T 610, while Siemens is offering
the M 50, SL 45i, C 55 and S 57. The South Korean electronics
giant Samsung does not intend to be left behind and has launched
its SGH-P400. The Dutch company, Philips, likewise has come up
with its 530.

While the world of games have been dominated by a number of
major names like Sega, Nintendo, Play Station, Game Boy, Eidos
and several others, mobile phone manufacturers have a legitimate
reason to enter this market. It is none other than that games
have for years now been a part of the daily activities for many
people. Indeed, this is a huge market to be tapped into by the
cell phone giants.

One of Indonesia's noted marketing experts, Rhenald Kasali,
said that branding and strengthening brand image is only one
among numerous marketing strategies. Many corporations are
trapped into brand building exercises that require big budgets,
but they sometimes do not realize that developing and maintaining
customer loyalty are not done solely through promotional methods,
he said. To survive and, better still, to be durable, a company
has to have a core of highly loyal customers as its base.

Unlike owners of Harley Davidson motorcycles or perhaps
Volkswagen cars, cell phone owners are not as fanatic. There may
be one or two such customers, but most important to remember is
that it is a market with various layers and segments, from the
novices up to the professionals and the trendsetters. Each
segment has to be treated differently with a marketing strategy
that matches the "personality" of each niche.

Otherwise, look-alike themes will only add to the confusion.
Time has proven that a truly integrated marketing strategy will
come out as the winner. Lasting brands from reputable companies
that have longevity by remaining in consumers' minds for decades
are proof of this.