As the maker of one in three of all handsets sold, Nokia is counting on staying ahead of the pack by differentiating its product range as part of its overall brand strategy.
Having made its name through snazzy designs and product innovations, Nokia has gone a step further, unveiling new product categories - entertainment, imaging, and active and spontaneous - to sharpen its global edge.
The accompanying marketing drive reportedly exudes attitude, style and luxury. John Ogier, director of marketing services at Nokia Mobile Phones Asia-Pacific, says the company launched its brand campaign - Connect to life - across Asia-Pacific markets to showcase its vision that its products give consumers a passion for life. The campaign launched in the second half of last year.
Pointing to the growing trend towards convergence of devices and enhanced personal communications, Nokia says the campaign had been created to inspire people to live life to the fullest.
The campaign represents the brand's biggest push towards reaching members of what it terms as the 'mobile information society', while also marking a shift from its four-year 'Human Technology' brand positioning. The previous campaign had focused more on products and design.
Freedom, mobility and convenience are the corner-stones of the television campaign now running across Asia-Pacific. The execution ends with the invitation, "So why don't you
to challenge people to connect to life.
"The central theme behind the TVC portrays how one, amid the hustle and bustle of life, can have the inspiration to live life to the fullest.
The campaign enjoyed a relatively high cut-through. The music was particularly well received; we received a lot of accolades for the choice of the music.
"More recently, Nokia launched the Nokia 8310 regional TV campaign across Asia-Pacific markets with a bold execution and again catchy music,
says Ogier.
But with Asia boasting already high mobile phone penetration rates and new subscriptions projected to remain sluggish, analysts are eagerly awaiting feature-rich GPRS handsets to spur sales in mobile services.
Nokia, meanwhile, is banking on the replacement market. It expects sales of replacement phones to rise to as much as 80 per cent of the market as demand grows for features such as pictures and audio. Ogier says Nokia is looking to double its share of the replacement market.
But sluggish market conditions, he adds, are forcing device makers to operate according to a new paradigm in the once-booming handset sales market. "New market conditions call for the creation of flexible and more personalised products and services to meet changing consumer needs and provide enriching experiences for them."
Indeed, Nokia's latest models demonstrate how it aims to do just that.
The company will introduce handsets for its new entertainment and active and spontaneous categories in the first quarter of this year.
These models will be targeted at consumers who fit the category's description, offering features such as a stopwatch and entertainment. Launches in these categories include the 5210 and the 5510, its first entertainment phone aimed at the lucrative youth market.
"The youth segment is clearly an important market for Nokia as it is a growing market with great potential. Youths are tech-savvy, keen to try new devices and are early adopters,
says Ogier.
A key Nokia promotion targeted at the youth market is its current tieup with record company EMI for integrated marketing initiatives across Asia-Pacific. Its first joint promotion reached the youth through the latest release of British band Blue. The link-up allows Nokia handset users to put Blue tunes, ringing tones and graphics on their mobile phones.
"So far this promotion has been well-received as the entertainment theme has a strong appeal with the youth market,
says Ogier.
Nokia also collaborated with EMI to run a contest on MTV and Channel V where its 5510 models were given away as prizes.
Its other focus is building customer loyalty at both regional and country levels through Club Nokia - an online community for Nokia users, available in Hong Kong, Singapore and Australia.
But Nokia's rivals have not been sitting still. Motorola, its closest competitor in the world market, embarked on an aggressive cost-cutting plan late last year and pledged a renewed focus on design.
Meanwhile, a deal between Sony and Swedish company Ericsson is pitting Nokia's product designers against their Japanese counterparts who have long dominated the market with their sense of style. There is also increased competition from Asian players, such as Samsung, but here the battle has been more price-driven.
According to Ogier, Nokia will continue to invest in its brand as well as provide appealing marketing campaign support for new products. "We will also be focusing on media activity that appeals directly to targeted consumer segments to establish a closer emotional bond between Nokia and our customers."
Nokia's game plan to beat the mobile sales blues
Like computer manufacturers, mobile phone makers are caught in a bind - they've built cheap but long-lasting products, minimising the need for consumers to replace handsets.
To woo replacement buyers and the gadget-loving youth market, Nokia has taken the lead by creating and putting its mark on new product categories.
Nokia has identified entertainment, imaging and active and spontaneous as key categories in which to launch its new range of feature-laden products.
Among them are handsets with an in-built stopwatch for the active and sporty user. And it can also make calls.
