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Monday, June 25, 2007

Nokia awakens from a deep slumber...


...launches low-cost handsets, but success is still far!
In the 4Ps B&M issue dated 8-26 December, our cover feature titled Nokia – Disconnecting People, had talked about how Nokia’s over emphasis on hi-end models in the Indian market would not bear fruit and that the company should focus on the entry-level market. With competitors like Motorola and Sony Ericsson belligerently charging ahead on one hand and Nokia’s market share witnessing further dilution, on the other, the Finnish handset-maker seems to have realized the wisdom in our words. On May 3, Nokia launched not one, but seven new entry-level mobile handsets. Of these, Nokia 1200 & 1208 are aimed at first-time consumers, whereas, Nokia 1650, 2660 & 2505 are CDMA-based handsets. The balance two are Nokia 2630 and 2760. All these handsets will cost anywhere between Rs.2,200 to Rs.5,000 and are expected to see the light of the day by the third quarter of 2007. Soren Petersen, Senior VP-Mobile Phones, Nokia avers, “Innovative phone sharing technology, contemporary design and easy to use features combine in these products.”

Soren also sang paeans about the importance of the Indian market to Nokia, underlining the need for the mobile giant to put into motions some urgent strategies to somehow stop the decline in market shares. From a high of 78.8% in February 2006 to about 67% at present, Nokia’s market share has fallen considerably since the launch of Motorola’s stylish, yet low-cost handsets. Unveiling these 7 new babies seems a last ditch rescue operation by the Finnish giant. But it is an uphill task. While close competitors have roped in Bollywood hunks Hrithik and Abhishek to entice consumers, Nokia’s marketing blitz still lacks the requisite Indian punch. Is Helsinki listening?

4Ps B&M Research: Surbhi Chawla

Source : IIPM Editorial, 2007

IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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