Branding Siemens mobile in India: a study on the branding approach of Siemens mobile in India

Abstract

Mobile telecommunications industry is currently one of the fastest growing industries in India. On a global scale too while the situation is nearing saturation in developed countries, India leads the pack with China in the regions that continue to show promising growth. Modi Telstra in Kolkata provided the first cellular service in August 1995. The telecom service areas are divided into four metros (New Delhi, Mumbai, Chennai and Kolkata) and 20 circles (A, B and C). Thirty four licenses for GSM900 cellular services were auctioned to 22 firms in 1995 and only two firms were allowed to bid for any circle. The different regions in the A and B circles already have four mobile operators and there are talks of introducing a fifth operator in some of these. The mobile subscriber base has more than doubled in a year's time to nearly 21 m at the end of 2003. The futuristic outlook is bright with various estimates pegging the CAGR (Compounded Annual Growth Rate) in the vicinity of 36-40%. All these are clear indications of an existing opportunity which is only likely to grow. Siemens mobile as a brand is not yet well entrenched in the minds of the customer. Korean brands that came into the India market have been successful in gaining market share rapidly. Samsung currently has about 14% and LG hold about 3-4% of the market share in the GSM handsets market. Siemens mobile which has had it's presence in the Indian market for nearly a decade currently has a measly 1.4% of the market share The success in the mobile handsets market in India will depend on all the marketing efforts and branding forms a very essential part of it. The efforts at branding effectively undertaken now will decide what kind of a foothold Siemens establishes in the developing Asian countries. Given the diversity and a range of consumer behaviour and experiences it is a great challenge for Siemens mobile to prove its mettle in the Indian market. These set of thoughts have been the motivation for undertaking this project. The key findings of this study indicate some gaps that need to be filled up. The brand personality and brand identity portrayed by Siemens mobile has been compared with the market leader Nokia in an effort of establishing some benchmarks. It is very essential to build a unique brand presence by improving on the brand personality and the brand identity. Siemens mobile needs to build a compelling brand strategy by mapping the consumer landscape and then working on the 3-D benefits that can be offered to the distinct set of consumers. There is a need to deliver a distinctive consumer experience by consistent brand delivery across the key touch-points. To gain the maximum mileage in the future it is also essential to leverage the brand for growth by having a strong coupling between the brand and corporate strategy.