Tills ringing as cell phone players do battle

Tills ringing as cell phone players do battle

JAKARTA (JP): The domestic mobile telephone market has made
the players involved set new strategies in distributing,
marketing and selling their products and services.

Since the market is growing significantly, both cell phone
manufacturers and service providers have expanded their marketing
operations into retailing.

Nokia, for instance, has opened several outlets, called Nokia
Professional Centers, in big cities in Indonesia.

Nokia's general manager for Indonesia, Shaun Colligan, said
recently that the company had set three major levels in supplying
its products, particularly handsets, in Indonesia.

He said the levels included major dealers, subdealers and
agents.

There were three local firms appointed major dealers which
supplied the products to subdealers and agents, he said.

He added that there were now hundreds of outlets, called Nokia
Priority Dealers, across Indonesia.

"For an integrated service, people using Nokia handsets can go
to the Nokia Professional Centers, which deal with customers'
various needs, including procurement, services and other related
matters," he said.

He said that Nokia had initiated this strategy after studying
the cell phone industry in Indonesia a couple of years ago.

"In general, a retailing is good for customers. They will find
the best quality and support at authorized dealers," he said.

However, Colligan said that the officials outlets only
extended guarantees to Nokia handsets bought in Indonesia.

"We are flexible, though. We can also serve foreigners or
others possessing Nokia handsets bought overseas who want to have
the devices repaired," he said, adding the policy was based
country by country.

He said a major point in running many outlets was customer
service.

Each customer must be treated with good manners, starting from
the greeting and then the handling of their needs or problems, he
added.

"Retailing must involve professionalism," he said.

Nokia is not the only cell phone maker involved in retailing.
There are many similar companies going that way in a bid to gain
a larger share of the market.

Ericsson is another manufacturer retailing its products.

Alino Sugianto, general marketing manager at PT Ericsson
Indonesia consumer products, said that his company had introduced
Griya Ericsson into the retail sector.

"People want to go shopping at nice places, offering not only
the products they're looking for, but also convenience. At the
official outlets, people also want to find original products."

He said that, indirectly, Ericsson wanted to maintain its
brand image through the expansion of the outlets. In most cases,
the company helped the promotion and advertising plans of the
outlets, he added.

Ericsson has four major distributors, dealing with hundreds of
dealers or subdistributors. The company is also collaborating
with other parties to market its products.

Sugianto said Griya Ericsson was aimed at, including other
things, sales and service. It was a one-stop solution, he added.

"We're optimistic that the market will continue to grow. New
players will also take part in the competition. Those with
specific products and the best service will survive."

Growth

Cellular operators have been displaying optimism.

The mobile telephone market has shown constant growth of at
least 50 percent per year. The number of mobile telephone
subscribers has been growing in recent years, even amid the
continuing economic crisis believed to have affected national
purchasing power.

The number of cell phone users is expected to surge by over 50
percent to 3.2 million by the end of this year, from some 2
million last year. The figure is expected to reach 4.5 million
next year.

With such promising growth, players in cell phone markets are
struggling to get as many new customers as possible from some one
million new subscribers who are predicted to sign up for mobile
telephone services in 2001. The number of new subscribers will
likely increase further when new technology in mobile phone
services is introduced.

Currently, there are three GSM operators controlling over 90
percent of the country's total mobile telephone market. One of
those operators is PT Excelcomindo Pratama, which operates ProXL.

A. Putranto, general manager for marketing and program
development at Excelcomindo, said that distribution was the main
key in winning the market.

"We are focusing on ProXL, the only product of Excelcomindo.
ProXL can either be prepaid or postpaid, depending on the
customer's choice. Each ProXL starter pack will start working
with a prepaid card, that's why we are focusing on distribution
as people will need to buy vouchers to refill their cards," he
said.

Therefore, Excelcomindo was cooperating with other parties to
distribute and sell both starter packs and vouchers, he added.

Wardhani Soedjono, general manager for customer service and
channel management at Excelcomindo, said her company had two
types of retailing: direct and indirect systems.

"We run our own outlets, called XL-Shops and XL-Retail
outlets, in our direct retailing operation. Indirectly, the
company collaborates with other parties, such as dealers, banks
and Fuji Image Plazas.

XL-Shops and XL-Retail outlets are aimed at controlling
quality and prices, she added. "The XL-Shops also operate as
service centers, but the XL-Retail outlets are just selling
points."

Retailing is now the preferred way for many companies that
traditionally sell and distribute their products or services in
other ways. The main goal is none other than letting customers
find and buy the products and services easily. (icn)