Tuesday, January 06, 2009

Who’ll win the finals?


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Given the stakes, honchos at Nokia immediately pre-poned the launch of their N96 here – and are confident that at least in terms of features (where Nokia has an edge – see table) their smart phone will give Apple tough competition. Even the pricing of N96 is expected to be in the same range (maybe even a tad higher) as of iPhone. The strategy is clear. Both players want to first capture the innovative consumers and then opt for the late-movers and laggards, finally tapping the entire potential of the Indian mobile-scape.

As Anshul Gupta, Principal Research Analyst, Gartner India states, “The pricing is strategically high to get the cream first and then you will see major price cuts in both these handsets.” Speaking on the same lines, Sougat Chatterjee, Chief Marketing Officer, Fly Mobile India avers, “The market potential of phones like iPhone and N96 will never be more than 2-2.5% as they are targeted at niche audiences.”

To let the brand remain connected to its now-famous international success legacy, all iPhone marketing communications are based on their global campaign – typically basic and minimal. Agrees Sanjay Kapoor, President-Mobile Services, Bharti Airtel: “We have kept iPhone more or less the same device as in the other countries other than offering free download packs.” In other words, there is no tearing hysteria to ‘tease’ the consumer and get him out to sample the product, at least just yet. On the other hand, Nokia is expected to go the whole hog with its marketing blitz for the N96. The Finnish giant has already hired special buses (painted black with N96 splashed boldly in white) for its teaser messages.

What could still clinch the finals for Apple in India is the fact that the iPhone has exclusive tie-ups with both Airtel and Vodafone (India’s biggest GSM players – giving Apple a huge distribution strength), while Nokia has had to settle for a similar (though not exclusive) arrangement with Idea. When it comes to choosing between the two, going by features alone Nokia’s N96 holds the edge, although iPhone’s Operating System is reputed to be the most reliable in the industry. But Jobs’ marketing prowess can spring a surprise anytime. After all, if he has been able to crack markets world over, what’s to say that he will hate to lose in the most lucrative telecom market of them all? Yes bro, India!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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