Nokia’s market share in India is ~60% especially in rural India,of the estimated 79,000 retail outlets in India selling mobile phones, Nokia had a presence in 72,000 of them.
Cell phone is the fastest-selling consumer electronics in the history of retail in Africa.Approx 16 million phone where sold in Africa in 2006, 45 million units are expected to be sold in 2010.
A rising number of Middle East people are using mobile devices to access the internet, while fewer are using computers,the percentage who regularly logged in to the web with their mobiles increased from 33.5% in February 2007 to 40% last month.
Let us have a look at different factors which needs to be taken care of when trying to capture mobile market in rural regions of developing countries:::::
1>AgricultureWhat would a small-scale farmer in India or China or Africa or Middle East want with a mobile phone?
>Market information.
>Timely knowledge about who is buying potatoes today, what the buyers are willing to pay and where they are located.
Some creative campaign and product being used to capture this market:A>Mobile phone to the countryside, a successful campaign started by China Unicom on January 16th 2009 in twelve provinces of china, during this campaign "if the farmers buy certain mobile phones they can enjoy "free call" of China Unicom as well as value added services which are customized for rural subscribers.
Mobile phone to the countryside is really a innovative way of capturing a bigger market cake of mobile phone which is in rural areas.
This a clever way of increasing ARPU and making people in rural area aware of VAS.B>Nokia Life Tools,An innovative tool developed by Nokia providing information to India's farmers and farming communities,Life Tools provides an easy interface to Reuters Market Light which delivers information on crop prices.
It's important to remember that this is about money: Nokia wants to sell handsets to this growing rural market.
Providing services to farmers in rural area may prove as lucrative as selling applications and content through Apples App store in urban areas. 2>Tradition & LanguageThe combination of oral tradition and mobile telephony gives word of mouth an extremely powerful and strategic connotation in the context of India, China, Africa and Middle East, especially for marketing campaign in these regions.
Some creative campaign and product being used to capture this market:A>Nokia 1110 and Nokia 1600 has a feature: Speaking Clock with Alarm, which announces the time in the user's local language.
B>Nokia in a tie up with Malayala Manorama (news publisher) launched a first of its kind a ‘Vernacular’ online news portal that will be available exclusively on Nokia handsets.I think it’s a great way to catch the locals of any country.
C>Hindustan Lever started a unique campaign in rural villages in India:Use of video vans .These vans screen movies in there local dialect at no cost to villagers and the commercial breaks in these movies are advertisements of HLL’s products.
3>PriceLow-income people are the fastest growing group of cell phone owners because of the low density of fixed line phones in rural areas of Africa/india/china/middle east, cell phones are the only means through which the locals can communicate with each other.
Some creative product being used to capture this market:A>Nokia launched Nokia 1110 and Nokia 1600 in Kenya ,entry level phones which emphasize ease-of-use, reliability and affordability, and contain technological features which reduce the total cost of mobile ownership for consumers. And these phones have very strong demand in East Africa.
B>In India Reliance and Nokia are the providers of low cost phone.
4>Engagement with the CommunityCompanies must be actively involved in the community in some way. This gives an impression to customers that the company is not just taking money from their customers but giving out to customers.
Some creative campaign being used to capture this market:A>Zain(lebanon) offered 3 luxurious cars during its summer campaign.
B>Globacom(africa) 'Win and Rule Promo' in which Globacom gave away 500 brand new cars to its loyal subscribers.
5>EntrepreneurshipThe importance of local partnerships: reaching the users in this region also calls for innovative thinking to overcome the difficulties of isolation and of setting up a retail infrastructure. A>The Village Phone concept started by GrameenPhone is now working with MTN to empower the women operators, spur economic activities and promote entrepreneurialism.
B>The Community payphone,are owned and operated by entrepreneurs who buy airtime from the network and subsequently sell it to local people who don’t own phones themselves.
A recent survey reported that 97% of Tanzanians now have access to a mobile phone thanks to the community payphone model.6>Mobile Health Over million of patients die each year as a result of not having access to a proper healthcare.A>mHealth Alliance where Qualcomm also plays a major role, formed with goal to improve healthcare delivery in the Africa/Middle east.
B>Map of Medicine a joint project between Cisco and the hospital was launched in Kenya in 2006 to address information access problems for doctors at the institution.
C>Some other products/projects are EpiSurveyor, SIMpill project etc.
7>Mobile BankingThe banking industry is very suspicious of the cell-phone industry, because they suspect that cell phones will make them obsolete. The cell-phone companies think the banks are like dinosaurs.
But these players have to work together seamlessly for cell-phone-based banking to work.A>Some of the famous mobile banking solutions in Middle East/Africa/India:Wizzit, MPESA ,CELPAY, Fundamo
Obopay Mobile Technology India Pvt. Ltd, Jigrahak Mobility Solutions Pvt. Ltd, Eko India Financial Services Pvt. Ltd and Mchek India Payment Systems Pvt. Ltd.
8>ReligionA mobile phone that gives you access to your belief wherever you are....Some creative product being used to capture this market:A>LG-G5300 Qiblah phone comes with an in built compass and location-tracking software which shows the direction of Mecca especially for Middle East market.
Conclusion:There are certain other areas which requires a significant rethinking of managerial practices.
Main point is that urban and rural marketing strategies are totally different.In short, customized and affordable products, effective distribution, and focused marketing initiatives are essential factors in building credibility for a brand in India,China,Middle East,Africa.
For Promotion or brand-building in rural region of developing countries we need to use Non conventional media – Conventional forms of media have made their way to the rural hinterland but they don’t have the desired effects on the consumer. Other forms that can be used use are puppetry, folk theatre etc.
Given the literacy ratio of rural Africa/Middle East/India/China, it is important to connect to rural consumers in their dialects to inform them of available product offerings.Rural folks think of a purchase in terms of how it serves their needs and how well its suits the family, rather than the individual. Products must be affordable and immensely practical.As it’s rightly said, Nokia is to "phone“ in India what Kleenex is to "tissue“ in USA. This is because they think small. May be this the reason why in North America, despite a marketing blitz Nokia's market share has slid to just 8% from 15% two years ago…. Just joking…!