DIFFERENTIATION AND
POSITIONING IN TELECOM
PRESENTED AS GUEST SPEAKER
AT DTU IN MARCH, 2012.

Contents
 Introduction
 Events
 Supply Side
 Demand Side
 Differentiation Strategies
 Digital Marketing

Introduction

What is inside a mobile phone?
 The core technology inside a mobile phone is typically based on a chipset existing of three or
more main components (Integrated Circuits) designed to collectively provide a complete
functionality for communication and running applications.
 The Radio Frequency Circuit (RF) sends and receives voice or data signals to the mobile phone,
 The Mixed Signal Circuit converts the signals from digital to analog and vice versa so that the
information can be managed by the Baseband Circuit (BB).
 The BB can be seen as the phone processor where both the application software and the communication
software is managed.
 Operating Systems
 Electronic Components- LCD, Processor, Memory
 Mechanical- Keypad, Tooling, CMF- Color, Material and Finish

2005…
 “As was the case with the earliest PCs, software
components, hardware components and operating
systems were produced in-house, and assembled
together in interdependent product architectures. The
resources required to enter the fledgling mobile
phone industry were beyond the means of most small
and medium sized players.”
The Mobile Handset Industry in Transition- 2005

Events

Mediatek
 “… There has been the emergence of reference design houses
that integrate software components, hardware components
and an operating system into a tested and verified system
solution that can be used to build a mobile phone…”
 One such Reference Design House was Mediatek- A
Taiwanese Company
 “Hsinchu, Taiwan based MediaTek is a fabless semiconductor
company that unleashed a white box market in mobile phone
handsets by offering an innovative "complete solution" for
2.5G and 2.7G handset manufacturers, dramatically lowering
the barriers to entry into the business.”

Result…

The Android Revolution
 The unveiling of the Android distribution in 2007
was announced with the founding of the Open
Handset Alliance, a consortium of 86 hardware,
software, and telecommunication companies
devoted to advancing open standards for mobile
devices
 Android was listed as the best-selling smartphone
platform worldwide in Q4 2010 with over 300
million Android devices in use by February 2012

The Result…

Supply Side

The Supply Side
 Platforms- Android, Windows, iOS, BB
 OEMs- Indian, MNC
 Chipsets- Mediatek, ARM, Intel
 Carriers/Operators- Airtel, Vodafone
 Form Factors- Touch, Touch n Type, Qwerty

Demand Side

Demand Side
 The Young- 18-24,SEC A/B,
 The Upgradable- 1st Time Smartphone Buyer
 The Restless- 18-35, SEC A,
 Fast Replacer
 Rural- The 1st Time Phone Buyer
 Women- The Micromax Bling, Lava A 16

Problem of Plenty

Too Many Suppliers
Too Many Segments
Positioning and Differentiation
is the Key Question !!

Differentiation
Strategies in Android

Brand Building
 Building a Brand- LG Optimus, Sony Xperia,
Samsung Galaxy

Technology Ladders
 Processor- DUAL, Quad Core
 Screen Type and Size- Bigger and Brighter-
AMOLED, SUPER AMOLED

User Interfaces
 OEMs investing in Unique User Interfaces to create
differentiation

Changing the Game
 Intel Launching Partnerships with Lenovo, Lava and
Motorola for Android Handsets Based on their
chipsets

New Segment
Strategies

New Device Segments
 The Tablet
 Apple iPad
 Huge number of Android
Tab Makers
 BB Playbook
 Windows 8 Tabs- To be
launched soon
 The Samsung Galaxy Note
and the S Pen

The Operator Perspective- Enterprise
 Targeting Enterprise Customers with Devices as a solution
 Bangalore Traffic Police:
 Bharti Airtel, Asia’s has successfully completed the deployment of
the “Traffic Police Enforcement Automation” system by providing
BlackBerry® smartphones to all the officers of the Bangalore
Traffic Police
 The solution involves vigilance through video cameras, set up at
different traffic signals and equipping every Bangalore traffic
police officer with a BlackBerry smartphone and Bluetooth®
printer, which gives them access to the history of the driver and
the vehicle and allows the officer to issue challans on the spot
with the click of a button.

The Operator Perspective- Mobility
 Targeting Consumers with Data Hungry Devices with
Bundled Plans

The Form Factor Revolution
 Touch n Type- Nokia C2-03

The Form Factor Revolution
 BB Goes Touch

The Dual SIM Revolution
 Mediatek Starts the Trend- 30% of The Indian
Handset Market
 Nokia and Samsung Go Dual

Rural Focus
 Case of Lava KKT 34+, Karbonn K9 and Zen M 72- Combined
5 Lakh Units/Month Sales
 Big Battery, Big Screen (2.4in) , Loud Sound

Creating an App Eco System
 Handsets + Apps- Apple and Android

…And Creating a Parallel Ecosystem
 Nokia+ Microsoft

On Ground Differentiation
 Service is the Biggest Pain Point for Indian Brands
 Service- Lava’s SSD Model- Differentiating over other Indian and MNC Brand
 Most brand rely on 3rd Party Service Centers like TVS-E
 Lava Created the SSD Model- Sales and Service Distribution Model by which:
 Each DB was mandated and given incentives to run a Service Center
 Each has to maintain a Minimum Quantity of Spare Parts
 800 DBs= 800 Service Centers

Reaching the Consumer
Through Digital
Marketing

Information most searched on the Internet during the decision making process
of buying a Mobile Device:
 Offers
 Prices
 Comparisons
 Reviews
 Features
Informational Needs

Importance given to the sources for finding information about a Mobile Device
1. Company Websites
2. Mobiles Related Websites
3. Blogs/ Forums
4. Social Networking Sites
Informational Sources

 Search engine optimization
 Search engine marketing
 Promotions: Banner ads and e-mail campaigns
 Micro sites of Devices During Launch
 Special Device Pages on SNS
 PR: Presence on Blogs/ Forums
 Linking website with SNS like FB
 Options to “like” content on the website and share it socially on
 Reputation Management
How to be there?

…To End it All..

Steve Jobs
 On Focus:
‘’And it comes from saying no to 1,000 things to make sure
we don't get on the wrong track or try to do too much.
We're always thinking about new markets we could enter,
but it's only by saying no that you can concentrate on the
things that are really important.”

Steve Jobs
To the Class of 2012- Think Different.. And Change the World
“Here’s to the crazy ones, the misfits, the rebels, the
troublemakers, the round pegs in the square holes… the ones
who see things differently — they’re not fond of rules… You
can quote them, disagree with them, glorify or vilify them, but
the only thing you can’t do is ignore them because they change
things… they push the human race forward, and while some
may see them as the crazy ones, we see genius, because the
ones who are crazy enough to think that they can change the
world, are the ones who do.” – Think Different

thank you