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)