Friday, January 11, 2013

A lesson taught ...and learnt?

from the ceo to the office boy, from the business tycoon to the paan waala, from urban to rural; mobile handsets have travelled a great distance in india, and so has nokia. but thanks to the latest twists in the tale, nokia may need to adapt quite a bit very soon

The ‘Black & White’ era went into decline mode in India way back in 1982, when the first colour TV sets were introduced on the occasion of the Asiad Games (movies were already in colour, though; interestingly, India’s first indigenously produced colour film was Kishan Kanya; way back in 1937). But the ‘grey’ era continues to be strong till date. Not on your screens, my friend, but in markets. Ask the MNCs and they will recount, in horror, countless stories on how the grey market has, time and again, wreaked havoc with their plans.

And that was just the beginning of Nokia’s quagmires when it entered the Indian market in 1995. It was a market where mobile phones and services were a luxury item. With the prices that these models commanded, you could get a decent second hand Fiat car in those days!

There were a few key planks on which Nokia played its cards, and played them well. Firstly, they developed phones specifically for the Indian market, with durability to withstand Indian conditions and features like torch, vernacular SMS, news feeds, et al. Also, with other players like LG, Sony and Samsung being perceived as diversified consumer electronic companies, Nokia scored heavily on the fact that it had a core focus on mobile phones & developed strong brand equity.

Also, it developed phones for all price points. They backed this up with an intensive distribution strategy and were greatly helped by the tie up with HCL Technologies. “We realised that one of the main challenges was the geographical spread of the consumer and hence we invested extensively towards overcoming this challenge,” reveals Vineet Taneja, Director, Marketing Nokia India.


Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri
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