Staying at the top position 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.