Archive for August, 2010


Nokia vs Micromax

Is Nokia losing its ground in India? Or for that matter globally? From the past year’s data it is evident that although Nokia still is a majority seller in the mobile phone segment in India with over 50% market share but this number is plummeting fast. If you look at the figures, this number has been falling constantly over a few years now. This market is being captured by other players like Samsung and LG and local players like Micromax. From zero market share last year this year Micromax’s market share was around 4%. Whats more striking is that the combined share of the indigenous players has increased from around zero percent to  17%.

Is Nokia doing something in this regard? Nokia has had a very strong hold in the Indian market. With over 2 lakh retail outlets it has been catering to the Indian consumer’s need since a long time now. It may be worth noting here that out of these 2 lakh retail outlets, approximately 45% cater to the rural market. It has launched mobile phones in every segment starting from around a thousand rupees to going over 30000 rupees. Its E series phones have been accepted well in the market. Its lower range phones still champion the markets. However it has somehow missed the smartphone league.

Micromax is a new brand. It has been giving a hard time to its competitors. Not only the prices of its cell phones are way cheaper than of its competitors’s but also it has used the right promotion strategy to build its brand’s awareness. Micromax’s Qwerty keyboard phones are available at almost half the price of a Nokia phone having similar features. Apart from this they also provide the same warranty as a Nokia phone does. The warranty factor gives Micromax an edge over its Chinese counterparts as they are without any warranty. Another factor on which they have an advantage is that they provide dual sim phones, a feature Nokia has missed altogether.  Anyway, combining all these factors it is clear that Nokia is going to have a tough time as Micromax’s presence in the market increases.  Micromax is giving a direct challenge it to its medium and higher end phones.

On the lower end side, Nokia is and will remain the market leader for a long time. With such a strong penetration in the market, its hard to even think of challenging Nokia. It would be difficult for Micromax or any other company to challenge Nokia in this segment in terms of price and quality. This is because Nokia is already pricing its lower end products at such a low price that it may not be easy for any company to go further down than this. And beating an already established player in terms of quality is not easy. But the point is that will Nokia be happy catering to this market and being a market leader of this market? By happy I obviously mean in terms of profitability.

Lets wait and watch how Nokia reacts to this change, or if it even does or not.

Mirk

Other Posts:
Cadbury Dairy Milk
Coke’s Nestea
7Up vs Sprite vs Moutain Dew
Britannia vs Kelloggs
Coke vs Apple
Tang vs Fanta
Samsung vs Voltas

My favorite of the month

Coke vs Apple

The latest results of a popular magazine have been shocking for Coke. As per the results, Coke has lost its position as the most valuable brand to Apple. In fact it is not even at second position. One might wonder why did this happen. Coke had retained this position for quite some time they how did this suddenly happened?

In this article I would like to present my views on what might have gone wrong for Coke. And of course what right for Apple. Before that I would just like to add that I present these views as a customer who lists both these brands among his favorites and these results have been as shocking to him as to Coke.

Coke had been its consumer’s favorite brand for so long. In fact it is so valued by its customers that when Coke tried to change it image to New Coke, there was a public outrage.  The people were so upset with this decision and they could not fathom why did Coke change to New Coke when they wanted Coke. This dissent among the public was visible from the fact that New Coke’s sales fell within months and it lost it numerouno position to Diet Coke. On Coke’s part, they were just trying to change with changing times as there is little room for innovation in their business. As a result of the upsurge by the public they had to reintroduce the Classic Coke into the market.

Apple on the other hand has always been a consumer’s delight. The brand lives of innovation. Though there maybe competitors in market that produce the same product but Apple’s image in a consumer’s mind is such that they are the innovators and their best are the best in quality. So the brand has consistently shown innovation and maintained its quality over the years. Slowly and slowly it has climbed the ladder of brands that customer value the most.

The X, Y generation people, in my opinion, have two problems among many other that are relevant here. One is their ever increasing dependence on technology and second is their deteriorating health conditions. As a result the one who innovates in technology and provides better quality to its customers will be valued more. Similarly the one who is worsening the second position will loose its charm over time no matter how much it is valued. But that time is still very far away.

All we can do now is just wait and watch what Coke’s response would be to this shock!

Mirk

Other Posts:
Cadbury Dairy Milk
Coke’s Nestea
Nokia vs Micromax
7Up vs Sprite vs Moutain Dew
Britannia vs Kelloggs
Tang vs Fanta
Samsung vs Voltas

My favorite of the month

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