Monday, July 07, 2008

Hello Moto... watch your back!


Nokia rules indisputably; but every other player is trying to snatch the No.2 slot!

WhoNokia rules indisputably; but every other player is trying to snatch the No.2 slot! had thought that voodoo inspiring numbers (1100 or a 6300) would become brands in their own right. But, Finnish handset manufacturer, Nokia, through its irresistible prices and marketing blitzkrieg ensured that it is numbers that matter more in the ‘dialled numbers’ game! And Nokia continues to rule hearts in the Indian terrain, still controlling nearly two thirds of the market. What’s more, this is despite other players – Motorola, Samsung, Sony Ericsson and LG – eroding away some market share from the leader in recent times. Considering that Nokia (still!) corners a large chunk of the market and remains the unbeatable No.1, all other players in the segment are engaged in a similar (agonising?) struggle, to snatch away market share from Nokia. Since the 2nd slot is occupied by Motorola (with a much smaller market share by comparison - 12%), all players in the segment are vying for a larger share to dominate the number two slot, with a respectable margin that is.

Nevertheless, in the past year, Nokia’s position has somewhat weakened, with some of its market pie being sucked up by Motorola and Sony Ericsson. With its range of stylish phones like RAZR, SLVR, KRZR and lately MotoROKRamong others, Motorola has been able to divert some attention from Nokia toward itself. What has helped Motorola sustain and retain its second position has been the aggressive marketing and great positioning that the American major continues to indulge in. With Bachchan Jr. as brand ambassador, Motorola is indeed finding it easy to attract attention. The American major is also consolidating its position in the burgeoning PDA segment, with the latest addition to the portfolio being the MotoQ.

TheWe are not bothered about being number 3, butabout delivering superior products actual number three slot among handset makers in India is with Sony Ericsson, which despite witnessing bouts of success (both in the country and globally); remains stuck as an also-ran in the Indian market with a mere 9% market share. But Sony Ericsson has the advantage of having brands in its portfolio that are already legends the world over. Aidedwith great campaigns and attractive features, its Walkman and Cyber-shot series have become a huge hit, helping Sony Ericsson to consolidate its No.3 position in India. While it’s Q2 results show an upswing of 59% year-on-year basis on the Indian turf, they have piled up a descent market share vis-à-vis Motorola. “We expect the market to remain competitive, but with products such as Walkman, we aim to grow faster than the market,” says Miles Flint, President, Sony Ericsson.

Sudhin Mathur, GM, Sony Ericsson Mobile Communications (India) adds: “We are not bothered about being number 3, but about delivering products that are technologically superior and meet customer demand.” Better watch out Moto, this one’s on track to snatch the No. 2 slot from you, the anguish of Nokia’s lead notwithstanding...

Edit bureau: Karan Mehrishi

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Source : IIPM Editorial, 2008

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

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